Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PotlatchDeltic Corporation | |
Entity Central Index Key | 0001338749 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 69,372,304 | |
Entity Shell Company | false | |
Entity File Number | 1-32729 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-0156045 | |
Entity Address, Address Line One | 601 West First Avenue | |
Entity Address, Address Line Two | Suite 1600 | |
Entity Address, City or Town | Spokane | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 99201 | |
City Area Code | (509) | |
Local Phone Number | 835-1500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock ($1 par value) | |
Trading symbol(s) | PCH | |
Name of each exchange on which registered | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Revenues | $ 411,350 | $ 354,193 | |
Costs and expenses: | |||
Cost of goods sold | 179,847 | 169,302 | |
Selling, general and administrative expenses | 16,294 | 16,758 | |
Net loss on fire damage | 276 | ||
Total costs and expenses | 196,417 | 186,060 | |
Operating income | 214,933 | 168,133 | |
Interest expense, net | [1] | (2,894) | (3,574) |
Pension settlement charge | (14,165) | ||
Non-operating pension and other postretirement employee benefit costs | (1,929) | (3,414) | |
Income before income taxes | 195,945 | 161,145 | |
Income taxes | (32,065) | (30,039) | |
Net income | $ 163,880 | $ 131,106 | |
Net income per share: | |||
Basic | $ 2.36 | $ 1.95 | |
Diluted | 2.35 | 1.94 | |
Dividends per share | $ 0.44 | $ 0.41 | |
Weighted-average shares outstanding (in thousands) | |||
Basic | 69,419 | 67,207 | |
Diluted | 69,623 | 67,607 | |
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 163,880 | $ 131,106 |
Other comprehensive income (loss), net of tax: | ||
Net loss arising during the period, net of tax benefit of $1,570 and $0 | (4,587) | 0 |
Effect of pension settlement, net of tax expense of $3,612 and $0 | 10,553 | 0 |
Amortization of actuarial loss included in net income, net of tax expense of $475 and $1,109 | 1,384 | 3,157 |
Amortization of prior service cost (credit) included in net income, net of tax expense (benefit) of $44 and $(73) | 130 | (204) |
Cash flow hedges, net of tax expense of $2,249 and $4,031 | 43,276 | 64,107 |
Other comprehensive income, net of tax | 50,756 | 67,060 |
Comprehensive income | $ 214,636 | $ 198,166 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss arising during the period, tax benefit | $ 1,570 | $ 0 |
Effect of pension settlement, tax expense | 3,612 | 0 |
Amortization of actuarial loss included in net income, tax expense | 475 | 1,109 |
Amortization of prior service credit included in net income, tax expense (benefit) | 44 | (73) |
Cash flow hedge, tax expense | $ 2,249 | $ 4,031 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 470,918 | $ 296,151 |
Customer receivables, net | 40,094 | 31,028 |
Inventories, net | 67,673 | 72,369 |
Other current assets | 21,938 | 21,630 |
Total current assets | 600,623 | 421,178 |
Property, plant and equipment, net | 297,710 | 292,320 |
Investment in real estate held for development and sale | 61,562 | 65,604 |
Timber and timberlands, net | 1,671,330 | 1,682,671 |
Intangible assets, net | 15,296 | 15,491 |
Other long-term assets | 87,095 | 57,951 |
Total assets | 2,733,616 | 2,535,215 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 101,589 | 78,209 |
Current portion of long-term debt | 39,983 | 42,977 |
Current portion of pension and other postretirement employee benefits | 4,993 | 4,993 |
Total current liabilities | 146,565 | 126,179 |
Long-term debt | 715,499 | 715,279 |
Pension and other postretirement employee benefits | 90,359 | 83,674 |
Deferred tax liabilities, net | 37,642 | 34,874 |
Other long-term obligations | 31,353 | 49,076 |
Total liabilities | 1,021,418 | 1,009,082 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, authorized 4,000 shares, no shares issued | ||
Common stock, $1 par value, authorized 100,000 shares, issued and outstanding 69,372 and 69,064 shares | 69,372 | 69,064 |
Additional paid-in capital | 1,782,940 | 1,781,217 |
Accumulated deficit | (147,632) | (280,910) |
Accumulated other comprehensive income (loss) | 7,518 | (43,238) |
Total stockholders’ equity | 1,712,198 | 1,526,133 |
Total liabilities and stockholders' equity | $ 2,733,616 | $ 2,535,215 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 4,000,000 | 4,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 69,372,000 | 69,064,000 |
Common stock, outstanding | 69,372,000 | 69,064,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 163,880 | $ 131,106 | |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation, depletion and amortization | 19,874 | 18,399 | |
Basis of real estate sold | 10,854 | 8,823 | |
Change in deferred taxes | (2,123) | 1,490 | |
Pension and other postretirement employee benefits | 3,857 | 5,627 | |
Pension settlement charge | 14,165 | ||
Equity-based compensation expense | 2,056 | 1,930 | |
Net loss on fire damage | 276 | ||
Other, net | (291) | (387) | |
Change in working capital and operating-related activities, net | 21,208 | 6,713 | |
Real estate development expenditures | (2,161) | (2,315) | |
Funding of pension and other postretirement employee benefits | (1,296) | (1,421) | |
Net cash from operating activities | 230,299 | 169,965 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Property, plant and equipment additions | (12,566) | (7,762) | |
Timberlands reforestation and roads | (4,648) | (3,956) | |
Other, net | 92 | 189 | |
Net cash from investing activities | (17,122) | (11,529) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Distributions to common stockholders | (30,524) | (27,484) | |
Repayments of long term debt | (3,000) | ||
Other, net | (1,071) | (591) | |
Net cash from financing activities | (34,595) | (28,075) | |
Change in cash, cash equivalents and restricted cash | 178,582 | 130,361 | |
Cash, cash equivalents and restricted cash at beginning of period | 296,772 | 252,340 | |
Cash, cash equivalents and restricted cash at end of period | 475,354 | 382,701 | |
NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accrued property, plant and equipment additions | 1,516 | 2,263 | |
Accrued timberlands reforestation and roads | 98 | 813 | |
Cash and cash equivalents | 470,918 | 382,032 | |
Restricted cash included in other long-term assets | [1] | $ 4,436 | $ 669 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | us-gaap:OtherAssetsMember | |
Total cash, cash equivalents, and restricted cash | $ 475,354 | $ 382,701 | |
[1] | Amounts included in restricted cash represent proceeds held by a qualified intermediary that are intended to be reinvested in timber and timberlands. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance, beginning of period at Dec. 31, 2020 | $ 1,304,953 | $ 66,876 | $ 1,674,576 | $ (315,510) | $ (120,989) |
Balance, beginning of period (shares) at Dec. 31, 2020 | 66,876,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 131,106 | 131,106 | |||
Shares issued for stock compensation | $ 166 | (166) | |||
Shares issued for stock compensation (shares) | 166,000 | ||||
Equity-based compensation expense | 1,930 | 1,930 | |||
Pension plans and OPEB obligations, net of tax | 2,953 | 2,953 | |||
Cash flow hedges, net of tax | 64,107 | 64,107 | |||
Dividends on common stock | (27,484) | (27,484) | |||
Other transactions, net | (16) | 81 | (97) | ||
Balance, end of period at Mar. 31, 2021 | 1,477,549 | $ 67,042 | 1,676,421 | (211,985) | (53,929) |
Balance, end of period (shares) at Mar. 31, 2021 | 67,042,000 | ||||
Balance, beginning of period at Dec. 31, 2021 | $ 1,526,133 | $ 69,064 | 1,781,217 | (280,910) | (43,238) |
Balance, beginning of period (shares) at Dec. 31, 2021 | 69,064,000 | 69,064,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 163,880 | 163,880 | |||
Shares issued for stock compensation | $ 308 | (308) | |||
Shares issued for stock compensation (shares) | 308,000 | ||||
Equity-based compensation expense | 2,056 | 2,056 | |||
Pension plans and OPEB obligations, net of tax | 7,480 | 7,480 | |||
Cash flow hedges, net of tax | 43,276 | 43,276 | |||
Dividends on common stock | (30,524) | (30,524) | |||
Other transactions, net | (103) | (25) | (78) | ||
Balance, end of period at Mar. 31, 2022 | $ 1,712,198 | $ 69,372 | $ 1,782,940 | $ (147,632) | $ 7,518 |
Balance, end of period (shares) at Mar. 31, 2022 | 69,372,000 | 69,372,000 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock, per share | $ 0.44 | $ 0.41 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NO TE 1. BASIS OF PRESENTATION General PotlatchDeltic Corporation and its subsidiaries (collectively referred to in this report as the company, us, we or our) is a leading timberland Real Estate Investment Trust (REIT) with operations in seven states. We are engaged in activities associated with timberland management, including the sale of timber, the management of approximately 1.8 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacturing and sale of wood products and the development of real estate. Our timberlands, real estate development projects and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a REIT effective January 1, 2006. Condensed Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements provide an overall view of our results and financial condition and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Condensed Consolidated Financial Statements , such adjustments are of a normal, recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain disclosures normally provided in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on February 17, 2022. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year. Use of Estimates The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and requires judgments affecting the amounts reported in the financial statements and the accompanying notes. Actual results may differ materially from our estimates. Commitments and Contingencies At any given time, we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a material adverse effect on our consolidated financial position, operating results or net cash flow. New Accounting Standards Being Evaluated 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 . ASU 2020-04 contains practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued as a result of reference rate reform. The guidance in ASU 2020-04, which can be applied immediately, is optional and may be elected over time as referen ce rate reform activities occur. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity was expected to be completed. Our credit agreement, variable rate term loans with $ 403.5 million in principal, and interest rate derivative agreements have an interest rate tied to LIBOR. We continue to evaluate the impact of th e guidance, are monitoring the developments regarding the alternative rates, will work with our lenders and counterparties to identify a suitable replacement rate, may amend certain debt and interest rate derivative agreements to accommodate those rates, and may apply elections allowed under the standard as applicable as additional changes in the market occur. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | NO TE 2. SEGMENT INFORMATION Our operations are organized into three reportable segments: Timberlands, Wood Products and Real Estate. Management activities in the Timberlands segment include planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights contracts, oil and gas royalties and carbon sequestration. The Wood Products segment manufactures and markets lumber and plywood. Activities in the Real Estate segment include our rural timberland-holdings sales program, master planned community development and a country club. Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizeable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation. The reportable segments follow the same accounting policies used for our Condensed Consolidated Financial Statements , with the exception of the valuation of inventories, which are reported using the average cost method for purposes of reporting segment results. The following table presents our revenues by major product: Three Months Ended March 31, (in thousands) 2022 2021 Timberlands Northern region Sawlogs $ 81,504 $ 76,181 Pulpwood 392 499 Other 303 300 Total Northern revenues 82,199 76,980 Southern region Sawlogs 23,381 22,416 Pulpwood 11,627 9,161 Stumpage 3,358 764 Other 3,092 2,595 Total Southern revenues 41,458 34,936 Total Timberlands revenues 123,657 111,916 Wood Products Lumber 250,764 229,682 Residuals and Panels 44,978 39,614 Total Wood Products revenues 295,742 269,296 Real Estate Rural real estate 21,646 10,025 Development real estate 10,278 8,053 Other 2,141 2,235 Total Real Estate revenues 34,065 20,313 Total segment revenues 453,464 401,525 Intersegment Timberlands revenues 1 ( 42,114 ) ( 47,332 ) Total consolidated revenues $ 411,350 $ 354,193 1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. Management uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies. EBITDDA is calculated as net income before interest expense, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies. The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements . Three Months Ended March 31, (in thousands) 2022 2021 Adjusted EBITDDA: Timberlands $ 76,434 $ 67,858 Wood Products 149,951 125,555 Real Estate 30,124 16,593 Corporate ( 9,584 ) ( 10,710 ) Eliminations and adjustments ( 1,363 ) ( 4,310 ) Total Adjusted EBITDDA 245,562 194,986 Interest expense, net 1 ( 2,894 ) ( 3,574 ) Depreciation, depletion and amortization ( 19,502 ) ( 17,996 ) Basis of real estate sold ( 10,854 ) ( 8,823 ) Net loss on fire damage ( 276 ) — Pension settlement charge ( 14,165 ) — Non-operating pension and other postretirement employee benefits ( 1,929 ) ( 3,414 ) Gain (loss) on disposal of fixed assets 3 ( 34 ) Income before income taxes $ 195,945 $ 161,145 Depreciation, depletion and amortization: Timberlands $ 12,161 $ 11,417 Wood Products 7,021 6,203 Real Estate 170 155 Corporate 150 221 19,502 17,996 Bond discounts and deferred loan fees 1 372 403 Total depreciation, depletion and amortization $ 19,874 $ 18,399 Basis of real estate sold: Real Estate $ 10,860 $ 8,829 Eliminations and adjustments ( 6 ) ( 6 ) Total basis of real estate sold $ 10,854 $ 8,823 1 Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NO TE 3. EARNINGS PER SHARE The following table reconciles the number of shares used in calculating basic and diluted earnings per share: Three Months Ended March 31, (in thousands) 2022 2021 Basic weighted-average shares outstanding 69,419 67,207 Incremental shares due to: Performance shares 140 326 Restricted stock units 64 74 Diluted weighted-average shares outstanding 69,623 67,607 For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award. For the three months ended March 31, 2022 and 2021, there were approximately 114,400 and 63,000 stock-based awards, respectively, that were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Anti-dilutive stock-based awards could be dilutive in future periods. Share Repurchase Program On August 30, 2018, our board of directors authorized management to repurchase up to $ 100.0 million of common stock with no time limit set for the repurchase (the Repurchase Program). Shares may be repurchased under the Repurchase Program in open market transactions, including pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934 (the Trading Plan). The timing, manner, price and amount of repurchases will be determined according to, and subject to, the terms of the Trading Plan, and, subject to the terms of the Trading Plan, the Repurchase Program may be suspended, terminated or modified at any time for any reason. We did no t repurchase any shares during the three months ended March 31, 2022 or 2021. At March 31, 2022, we had remaining authorization of $ 59.5 million for future stock repurchases under the Repurchase Program. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit. |
Certain Balance Sheet Component
Certain Balance Sheet Components | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Certain Balance Sheet Components | NO TE 4. CERTAIN BALANCE SHEET COMPONENTS Inventories (in thousands) March 31, 2022 December 31, 2021 Logs $ 32,794 $ 41,199 Lumber, panels and veneer 37,539 34,528 Materials and supplies 18,478 17,780 Total inventories 88,811 93,507 Less: LIFO reserve ( 21,138 ) ( 21,138 ) Total inventories, net $ 67,673 $ 72,369 Property, plant and equipment (in thousands) March 31, 2022 December 31, 2021 Property, plant and equipment $ 545,163 $ 532,324 Less: accumulated depreciation ( 247,453 ) ( 240,004 ) Total property, plant and equipment, net $ 297,710 $ 292,320 Ola, Arkansas sawmill fire On June 13, 2021, a fire occurred at our Ola, Arkansas sawmill. There were no injuries or environmental issues from the fire. The damage was principally limited to the large log primary breakdown area of the mill. The planer mill, kiln, and shipping department were not affected. We have adequate property damage and business interruption insurance and expect to be reimbursed for both property damage and business interruption losses by our insurance carriers, subject to an applicable deductible. We recognized a total of $ 15.0 million in initial insurance recoveries for property damage associated with the fire at the sawmill during the third quarter of 2021. No insurance recoveries for property damage or business interruption losses for the fire at the sawmill were recorded during the three months ended March 31, 2022 as discussions with the insurance carriers are ongoing. Insurance recoveries will be recorded when deemed probable and reasonably estimable. Timber and timberlands (in thousands) March 31, 2022 December 31, 2021 Timber and timberlands $ 1,586,628 $ 1,597,011 Logging roads 84,702 85,660 Total timber and timberlands, net $ 1,671,330 $ 1,682,671 Accounts payable and accrued liabilities (in thousands) March 31, 2022 December 31, 2021 Income taxes payable $ 35,421 $ 1,134 Accrued payroll and benefits 19,084 28,944 Accounts payable 10,419 12,749 Deferred revenue 1 9,671 8,392 Other accrued taxes 7,310 5,714 Accrued interest 4,468 6,046 Other current liabilities 15,216 15,230 Total accounts payable and accrued liabilities $ 101,589 $ 78,209 1 Deferred revenue predominately relates to hunting and other access rights on our timberlands, payments received for lumber shipments where control of goods has not transferred, member-related activities at an owned country club and certain post-close obligations for real estate sales. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except for country club initiation fees which are recognized over the average life of club membership. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | NO TE 5. DEBT At March 31, 2022, our total outstanding long-term debt included $ 693.5 million of term loans under our Second Amended and Restated Term Loan Agreement (Amended Term Loan Agreement) with our primary lender. Included in the Amended Term Loan Agreement is a $ 40.0 million term loan that we expect to refinance upon its maturity in December 2022 . Certain borrowings under the Amended Term Loan Agreement are at variable rates of one or three-month LIBOR plus a spread between 1.68 % and 2.10 %. We have entered into interest rate swaps for these variable rate term loans to fix the interest rate. See Note: 6 Derivative Instruments for additional information. At March 31, 2022, there were no borrowings under our $ 300.0 million revolving line of credit and approximately $ 1.0 million of our revolving line of credit was utilized for outstanding letters of credit. As provided in the revolving line of credit agreement, borrowings may be increased by up to an additional $ 500.0 million. The revolving line of credit agreement also includes a sublimit of $ 75.0 million for the issuance of standby letters of credit and a sublimit of $ 25.0 million for swing line loans. Usage under either or both subfacilities reduces availability under the revolving line of credit. We may utilize borrowings under the credit facility to, among other things, refinance existing indebtedness and provide funding for working capital requirements, capital projects, acquisitions and other general corporate expenditures. We were in compliance with all debt and credit agreement covenants at March 31, 2022. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instrument Detail [Abstract] | |
Derivative Instruments | NO TE 6. DERIVATIVE INSTRUMENTS From time to time, we enter into derivative financial instruments to manage certain cash flow and fair value risks. Derivatives designated and qualifying as a hedge of the exposure to variability in the cash flows of a specific asset or liability that is attributable to a particular risk, such as interest rate risk, are considered cash flow hedges. As of March 31, 2022, we have interest rate swaps associated with $ 403.5 million of term loan debt. These swaps are cash flow hedges that convert variable rates ranging from one-month and three-month LIBOR plus 1.68 % to 2.10 %, to fixed rates ranging from 3.04 % to 4.75 %. Our cash flow hedges are expected to be highly effective in achieving offsetting cash flows attributable to the hedged interest rate risk through the term of the hedges. At March 31, 2022, the amount of net losses expected to be reclassified into earnings in the next 12 months is approximately $ 1.4 million. However, this expected amount to be reclassified into earnings is subject to volatility as the ultimate amount recognized in earnings is based on the LIBOR rate at the time of net swap cash payments. As of March 31, 2022, we have $ 567.5 million of forward starting interest rate swaps designated as cash flow hedges. These forward starting interest rate swaps effectively hedge the variability in future benchmark interest payments attributable to changes in interest rates on $ 567.5 million of future debt refinances th rough January 2029 b y converting the benchmark interest rates to fixed interest rates. In addition, the cash flow hedges for future debt refinances require settlement on the stated maturity date. The gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets are as follows: Asset Derivatives Liability Derivatives (in thousands) Location March 31, 2022 December 31, 2021 Location March 31, 2022 December 31, 2021 Derivatives designated in cash flow hedging relationships: Interest rate contracts Other assets, current 1 $ 4,673 $ 2,191 Accounts payable and accrued liabilities 1 $ — $ — Interest rate contracts Other assets, non-current 57,487 31,306 Other long-term obligations 7,197 24,060 $ 62,160 $ 33,497 $ 7,197 $ 24,060 1 Derivative instruments that mature within one year, as a whole, are classified as current. The following table details the effect of derivatives on our Condensed Consolidated Statements of Operations : Three Months Ended March 31, (in thousands) Location 2022 2021 Derivatives designated in cash flow hedging relationships: Interest rate contracts Income recognized in other comprehensive income, net of tax $ 41,243 $ 61,875 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1 Interest expense $ ( 2,033 ) $ ( 2,232 ) Interest expense, net $ 2,894 $ 3,574 1 Realized losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Condensed Consolidated Statements of Cash Flows . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instrument Detail [Abstract] | |
Fair Value Measurements | NO TE 7. FAIR VALUE MEASUREMENTS The following table presents the estimated fair values of our financial instruments: March 31, 2022 December 31, 2021 (in thousands) Carrying Fair Carrying Fair Derivative assets related to interest rate swaps (Level 2) $ 62,160 $ 62,160 $ 33,497 $ 33,497 Derivative liabilities related to interest rate swaps (Level 2) $ ( 7,197 ) $ ( 7,197 ) $ ( 24,060 ) $ ( 24,060 ) Long-term debt, including current portion (Level 2): Term loans $ ( 691,282 ) $ ( 694,353 ) $ ( 691,119 ) $ ( 705,135 ) Revenue bonds ( 65,735 ) ( 66,754 ) ( 65,735 ) ( 69,278 ) Medium-term notes — — ( 3,000 ) ( 3,007 ) Total long-term debt 1 $ ( 757,017 ) $ ( 761,107 ) $ ( 759,854 ) $ ( 777,420 ) Company owned life insurance asset (COLI) (Level 3) $ 4,002 $ 4,002 $ 3,923 $ 3,923 1 The carrying amount of long-term debt includes principal and unamortized discounts. The fair value of interest rate swaps are determined using a discounted cash flow analysis, based on third party sources, on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity and uses observable market-based inputs, including interest rate forward curves. The fair value of our long-term debt is estimated based upon quoted market prices for similar debt issues or estimated based on average market prices for comparable debt when there is no quoted market price. The contract value of our company owned life insurance is based on the amount at which it could be redeemed and, accordingly, approximates fair value. We believe that our other financial instruments, including cash and cash equivalents, restricted cash, receivables and payables have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Equity-Based Compensation | NO TE 8. EQUITY-BASED COMPENSATION At March 31, 2022, approximately 0.7 million shares are available for future use under our long-term incentive plans. Share-based compensation activity during the three months ended March 31, 2022 included the following: (Shares in thousands) Granted Vested Forfeited Performance Share Awards (PSAs) 92,490 — 971 Restricted Stock Units (RSUs) 34,324 500 1,323 Approximately 0.3 million shares of common stock were issued to employees during the three months ended March 31, 2022 as a result of PSA and RSU vesting during 2021 and 2022. The following table details equity-based compensation expense and the related income tax benefit: Three Months Ended March 31, (in thousands) 2022 2021 Equity-based compensation expense: Performance share awards $ 1,298 $ 1,224 Restricted stock units 709 665 Deferred compensation stock equivalent units expense 49 41 Total equity-based compensation expense $ 2,056 $ 1,930 Total tax benefit recognized for equity-based expense $ 100 $ 89 Performance Share Awards The weighted average grant date fair value of PSAs granted in 2022 was $ 76.18 per share. PSAs granted under the stock incentive plans have a three-year performance period and shares are issued at the end of the period if the performance measures are met. The number of shares actually issued, as a percentage of the amount subject to the PSA, could range from 0 % to 200 %. PSAs granted under the stock incentive plans do not have voting rights unless and until shares are issued upon settlement. If shares are issued at the end of the performance measurement period, the recipients will receive dividend equivalents in the form of additional shares at the time of payment equal to the dividends that would have been paid on the shares earned had the recipients owned the shares during the three-year period. Therefore, the shares are not considered participating securities. The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2022: Stock price as of valuation date $ 55.02 Risk-free rate 1.79 % Expected volatility 45.69 % Expected dividend yield 1 — Expected term (years) 3.00 1 Full dividend reinvestment assumed. Restricted Stock Units The weighted average fair value of all RSUs granted during the three months ended March 31, 2022 was $ 54.79 per share. The fair value of RSUs granted equaled our common share price on the date of grant factoring in any required post-vesting holding periods. The RSU awards granted accrue dividend equivalents based on dividends paid during the RSU vesting period. Recipients will receive dividend equivalents in the form of additional shares of common stock at the date the vested RSUs are settled. Any forfeited RSUs will not receive dividends. Therefore, the shares are not considered participating securities. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NO TE 9. INCOME TAXES As a REIT, we generally are not subject to federal and state corporate income taxes on income from investments in real estate, including our timberlands, that we distribute to our shareholders. We conduct certain activities through our PotlatchDeltic taxable REIT subsidiaries (TRS) which are subject to corporate level federal and state income taxes. These activities are principally comprised of our wood products manufacturing operations and certain real estate investments. Therefore, income tax expense or benefit is primarily due to pre-tax book income or loss of the TRS, as well as permanent book versus tax differences. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | NO TE 10. LEASES We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The following table presents supplemental balance sheet information related to lease assets and liabilities: (in thousands) Classification March 31, 2022 December 31, 2021 Assets Operating lease assets Other long-term assets $ 7,794 $ 8,514 Finance lease assets 1 Property, plant and equipment, net 10,012 10,663 Total lease assets $ 17,806 $ 19,177 Liabilities Current: Operating lease liabilities Accounts payable and accrued liabilities $ 2,845 $ 3,021 Finance lease liabilities Accounts payable and accrued liabilitie s 3,550 3,577 Noncurrent: Operating lease liabilities Other long-term obligations 5,013 5,598 Finance lease liabilities Other long-term obligations 6,342 6,972 Total lease liabilities $ 17,750 $ 19,168 1 Finance lease assets are presented net of accumulated amortization of $ 5.5 million and $ 4.5 million as of March 31, 2022 and December 31, 2021, respectively. The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2022 2021 Operating lease costs 1 $ 947 $ 1,328 Finance lease costs: Amortization of leased assets 929 589 Interest on lease liabilities 67 51 Net lease costs $ 1,943 $ 1,968 1 Excludes short-term leases and variable lease costs, which are immaterial. The following table presents supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 994 $ 1,368 Operating cash flows for finance leases $ 67 $ 51 Financing cash flows for finance leases $ 938 $ 577 Leased assets exchanged for new lease liabilities: Operating leases $ 154 $ 124 Finance leases $ 281 $ 801 |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Employee Benefits | NO TE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS In March 2022 we transferred $ 75.6 million of our qualified pension plan (the Plan) assets to an insurance company for the purchase of a group annuity contract. As a result of the transaction, the insurance company assumed responsibility for annuity administration and benefit payments to select retirees and terminated vested participants, with no change to participants' pension benefits. In connection with this transaction we recorded a non-cash pretax settlement charge of $ 14.2 million as a result of accelerating the recognition of actuarial losses included in Accumulated Other Comprehensive Income (Loss) that would have been recognized in future periods. The settlement triggered a remeasurement of the Plan's assets and liabilities. We updated the discount rate used to measure our projected benefit obligation for the Plan as of March 31, 2022, and to calculate the related net periodic benefit cost for the remainder of 2022 to 3.95 % from 3.00 %. All other pension assumptions remain unchanged. The net effect of the remeasurement was a $ 6.2 million reduction in the funded status of the Plan, primarily driven by lower returns on Plan assets. This change in funded status was reflected in our Condensed Consolidated Balance Sheets as of March 31, 2022. The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB): Three Months Ended March 31, Pension OPEB (in thousands) 2022 2021 2022 2021 Service cost $ 1,849 $ 2,045 $ 79 $ 168 Interest cost 2,812 2,633 229 317 Expected return on plan assets ( 3,145 ) ( 3,382 ) — — Amortization of prior service cost (credit) 18 21 156 ( 298 ) Amortization of actuarial loss (gain) 1,954 3,578 ( 95 ) 545 Net periodic cost before pension settlement charge 3,488 4,895 369 732 Pension settlement charge 14,165 — — — Total net periodic cost $ 17,653 $ 4,895 $ 369 $ 732 During the three months ended March 31, 2022 and 2021, funding of pension and other postretirement employee benefit plans was $ 1.3 million and $ 1.4 million, respectively. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | NO TE 12. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table details changes in amounts included in our Accumulated Other Comprehensive Income (Loss) (AOCI) by component on our Condensed Consolidated Balance Sheets , net of tax: Three Months Ended March 31, (in thousands) 2022 2021 Pension Plans Balance at beginning of period $ 49,579 $ 79,025 Net loss arising during the period 4,587 — Effect of pension settlement ( 10,553 ) — Amounts reclassified from AOCI to earnings ( 1,469 ) ( 2,770 ) Balance at end of period 42,144 76,255 Other Postretirement Benefit Plans Balance at beginning of period 1,790 14,783 Amounts reclassified from AOCI to earnings ( 45 ) ( 183 ) Balance at end of period 1,745 14,600 Cash Flow Hedges Balance at beginning of period ( 8,131 ) 27,181 Amounts arising during the period ( 41,243 ) ( 61,875 ) Amounts reclassified from AOCI to earnings ( 2,033 ) ( 2,232 ) Balance at end of period ( 51,407 ) ( 36,926 ) Accumulated other comprehensive (income) loss, end of period $ ( 7,518 ) $ 53,929 See Note 11: Pension and Other Postretirement Employee Benefits and Note 6: Derivative Instruments for additional information. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
General | General PotlatchDeltic Corporation and its subsidiaries (collectively referred to in this report as the company, us, we or our) is a leading timberland Real Estate Investment Trust (REIT) with operations in seven states. We are engaged in activities associated with timberland management, including the sale of timber, the management of approximately 1.8 million acres of timberlands and the purchase and sale of timberlands. We are also engaged in the manufacturing and sale of wood products and the development of real estate. Our timberlands, real estate development projects and all of our wood products facilities are located within the continental United States. The primary market for our products is the United States. We converted to a REIT effective January 1, 2006. |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements provide an overall view of our results and financial condition and reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Condensed Consolidated Financial Statements , such adjustments are of a normal, recurring nature. Intercompany transactions and accounts have been eliminated in consolidation. The Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain disclosures normally provided in accordance with accounting principles generally accepted in the United States (GAAP) have been omitted. This Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on February 17, 2022. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year. |
Use of Estimates | Use of Estimates The preparation of our Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and requires judgments affecting the amounts reported in the financial statements and the accompanying notes. Actual results may differ materially from our estimates. |
Commitments and Contingencies | Commitments and Contingencies At any given time, we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a material adverse effect on our consolidated financial position, operating results or net cash flow. |
New Accounting Standards Being Evaluated | New Accounting Standards Being Evaluated 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 . ASU 2020-04 contains practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued as a result of reference rate reform. The guidance in ASU 2020-04, which can be applied immediately, is optional and may be elected over time as referen ce rate reform activities occur. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity was expected to be completed. Our credit agreement, variable rate term loans with $ 403.5 million in principal, and interest rate derivative agreements have an interest rate tied to LIBOR. We continue to evaluate the impact of th e guidance, are monitoring the developments regarding the alternative rates, will work with our lenders and counterparties to identify a suitable replacement rate, may amend certain debt and interest rate derivative agreements to accommodate those rates, and may apply elections allowed under the standard as applicable as additional changes in the market occur. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenues by Major Product | The following table presents our revenues by major product: Three Months Ended March 31, (in thousands) 2022 2021 Timberlands Northern region Sawlogs $ 81,504 $ 76,181 Pulpwood 392 499 Other 303 300 Total Northern revenues 82,199 76,980 Southern region Sawlogs 23,381 22,416 Pulpwood 11,627 9,161 Stumpage 3,358 764 Other 3,092 2,595 Total Southern revenues 41,458 34,936 Total Timberlands revenues 123,657 111,916 Wood Products Lumber 250,764 229,682 Residuals and Panels 44,978 39,614 Total Wood Products revenues 295,742 269,296 Real Estate Rural real estate 21,646 10,025 Development real estate 10,278 8,053 Other 2,141 2,235 Total Real Estate revenues 34,065 20,313 Total segment revenues 453,464 401,525 Intersegment Timberlands revenues 1 ( 42,114 ) ( 47,332 ) Total consolidated revenues $ 411,350 $ 354,193 1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
Summary of Information by Business Segment | The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements . Three Months Ended March 31, (in thousands) 2022 2021 Adjusted EBITDDA: Timberlands $ 76,434 $ 67,858 Wood Products 149,951 125,555 Real Estate 30,124 16,593 Corporate ( 9,584 ) ( 10,710 ) Eliminations and adjustments ( 1,363 ) ( 4,310 ) Total Adjusted EBITDDA 245,562 194,986 Interest expense, net 1 ( 2,894 ) ( 3,574 ) Depreciation, depletion and amortization ( 19,502 ) ( 17,996 ) Basis of real estate sold ( 10,854 ) ( 8,823 ) Net loss on fire damage ( 276 ) — Pension settlement charge ( 14,165 ) — Non-operating pension and other postretirement employee benefits ( 1,929 ) ( 3,414 ) Gain (loss) on disposal of fixed assets 3 ( 34 ) Income before income taxes $ 195,945 $ 161,145 Depreciation, depletion and amortization: Timberlands $ 12,161 $ 11,417 Wood Products 7,021 6,203 Real Estate 170 155 Corporate 150 221 19,502 17,996 Bond discounts and deferred loan fees 1 372 403 Total depreciation, depletion and amortization $ 19,874 $ 18,399 Basis of real estate sold: Real Estate $ 10,860 $ 8,829 Eliminations and adjustments ( 6 ) ( 6 ) Total basis of real estate sold $ 10,854 $ 8,823 1 Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share | The following table reconciles the number of shares used in calculating basic and diluted earnings per share: Three Months Ended March 31, (in thousands) 2022 2021 Basic weighted-average shares outstanding 69,419 67,207 Incremental shares due to: Performance shares 140 326 Restricted stock units 64 74 Diluted weighted-average shares outstanding 69,623 67,607 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventories | Inventories (in thousands) March 31, 2022 December 31, 2021 Logs $ 32,794 $ 41,199 Lumber, panels and veneer 37,539 34,528 Materials and supplies 18,478 17,780 Total inventories 88,811 93,507 Less: LIFO reserve ( 21,138 ) ( 21,138 ) Total inventories, net $ 67,673 $ 72,369 |
Schedule of Property, Plant and Equipment | Property, plant and equipment (in thousands) March 31, 2022 December 31, 2021 Property, plant and equipment $ 545,163 $ 532,324 Less: accumulated depreciation ( 247,453 ) ( 240,004 ) Total property, plant and equipment, net $ 297,710 $ 292,320 |
Schedule of Timber and Timberlands | Timber and timberlands (in thousands) March 31, 2022 December 31, 2021 Timber and timberlands $ 1,586,628 $ 1,597,011 Logging roads 84,702 85,660 Total timber and timberlands, net $ 1,671,330 $ 1,682,671 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities (in thousands) March 31, 2022 December 31, 2021 Income taxes payable $ 35,421 $ 1,134 Accrued payroll and benefits 19,084 28,944 Accounts payable 10,419 12,749 Deferred revenue 1 9,671 8,392 Other accrued taxes 7,310 5,714 Accrued interest 4,468 6,046 Other current liabilities 15,216 15,230 Total accounts payable and accrued liabilities $ 101,589 $ 78,209 1 Deferred revenue predominately relates to hunting and other access rights on our timberlands, payments received for lumber shipments where control of goods has not transferred, member-related activities at an owned country club and certain post-close obligations for real estate sales. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except for country club initiation fees which are recognized over the average life of club membership. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instrument Detail [Abstract] | |
Gross Fair Values of Derivative Instruments | The gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets are as follows: Asset Derivatives Liability Derivatives (in thousands) Location March 31, 2022 December 31, 2021 Location March 31, 2022 December 31, 2021 Derivatives designated in cash flow hedging relationships: Interest rate contracts Other assets, current 1 $ 4,673 $ 2,191 Accounts payable and accrued liabilities 1 $ — $ — Interest rate contracts Other assets, non-current 57,487 31,306 Other long-term obligations 7,197 24,060 $ 62,160 $ 33,497 $ 7,197 $ 24,060 1 Derivative instruments that mature within one year, as a whole, are classified as current. |
Effect of Derivatives on Condensed Consolidated Statements of Operations | The following table details the effect of derivatives on our Condensed Consolidated Statements of Operations : Three Months Ended March 31, (in thousands) Location 2022 2021 Derivatives designated in cash flow hedging relationships: Interest rate contracts Income recognized in other comprehensive income, net of tax $ 41,243 $ 61,875 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1 Interest expense $ ( 2,033 ) $ ( 2,232 ) Interest expense, net $ 2,894 $ 3,574 1 Realized losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Condensed Consolidated Statements of Cash Flows . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instrument Detail [Abstract] | |
Estimated Fair Value of Financial Instruments | The following table presents the estimated fair values of our financial instruments: March 31, 2022 December 31, 2021 (in thousands) Carrying Fair Carrying Fair Derivative assets related to interest rate swaps (Level 2) $ 62,160 $ 62,160 $ 33,497 $ 33,497 Derivative liabilities related to interest rate swaps (Level 2) $ ( 7,197 ) $ ( 7,197 ) $ ( 24,060 ) $ ( 24,060 ) Long-term debt, including current portion (Level 2): Term loans $ ( 691,282 ) $ ( 694,353 ) $ ( 691,119 ) $ ( 705,135 ) Revenue bonds ( 65,735 ) ( 66,754 ) ( 65,735 ) ( 69,278 ) Medium-term notes — — ( 3,000 ) ( 3,007 ) Total long-term debt 1 $ ( 757,017 ) $ ( 761,107 ) $ ( 759,854 ) $ ( 777,420 ) Company owned life insurance asset (COLI) (Level 3) $ 4,002 $ 4,002 $ 3,923 $ 3,923 1 The carrying amount of long-term debt includes principal and unamortized discounts. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation Activity | Share-based compensation activity during the three months ended March 31, 2022 included the following: (Shares in thousands) Granted Vested Forfeited Performance Share Awards (PSAs) 92,490 — 971 Restricted Stock Units (RSUs) 34,324 500 1,323 |
Details of Equity-Based Compensation Expense and Related Income Tax Benefit | The following table details equity-based compensation expense and the related income tax benefit: Three Months Ended March 31, (in thousands) 2022 2021 Equity-based compensation expense: Performance share awards $ 1,298 $ 1,224 Restricted stock units 709 665 Deferred compensation stock equivalent units expense 49 41 Total equity-based compensation expense $ 2,056 $ 1,930 Total tax benefit recognized for equity-based expense $ 100 $ 89 |
Fair Value of Performance Share Awards Granted | The following table presents the key inputs used in the Monte Carlo simulation to calculate the fair value of the performance share awards granted in 2022: Stock price as of valuation date $ 55.02 Risk-free rate 1.79 % Expected volatility 45.69 % Expected dividend yield 1 — Expected term (years) 3.00 1 Full dividend reinvestment assumed. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities | The following table presents supplemental balance sheet information related to lease assets and liabilities: (in thousands) Classification March 31, 2022 December 31, 2021 Assets Operating lease assets Other long-term assets $ 7,794 $ 8,514 Finance lease assets 1 Property, plant and equipment, net 10,012 10,663 Total lease assets $ 17,806 $ 19,177 Liabilities Current: Operating lease liabilities Accounts payable and accrued liabilities $ 2,845 $ 3,021 Finance lease liabilities Accounts payable and accrued liabilitie s 3,550 3,577 Noncurrent: Operating lease liabilities Other long-term obligations 5,013 5,598 Finance lease liabilities Other long-term obligations 6,342 6,972 Total lease liabilities $ 17,750 $ 19,168 1 Finance lease assets are presented net of accumulated amortization of $ 5.5 million and $ 4.5 million as of March 31, 2022 and December 31, 2021, respectively. |
Schedule of Components of Lease Expense | The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2022 2021 Operating lease costs 1 $ 947 $ 1,328 Finance lease costs: Amortization of leased assets 929 589 Interest on lease liabilities 67 51 Net lease costs $ 1,943 $ 1,968 1 Excludes short-term leases and variable lease costs, which are immaterial. |
Schedule of Supplemental Cash Flow Information Related Leases | The following table presents supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 994 $ 1,368 Operating cash flows for finance leases $ 67 $ 51 Financing cash flows for finance leases $ 938 $ 577 Leased assets exchanged for new lease liabilities: Operating leases $ 154 $ 124 Finance leases $ 281 $ 801 |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits, Description [Abstract] | |
Components of Net Periodic Cost (Benefit) | The following table details the components of net periodic cost (benefit) of our pension plans and other postretirement employee benefits (OPEB): Three Months Ended March 31, Pension OPEB (in thousands) 2022 2021 2022 2021 Service cost $ 1,849 $ 2,045 $ 79 $ 168 Interest cost 2,812 2,633 229 317 Expected return on plan assets ( 3,145 ) ( 3,382 ) — — Amortization of prior service cost (credit) 18 21 156 ( 298 ) Amortization of actuarial loss (gain) 1,954 3,578 ( 95 ) 545 Net periodic cost before pension settlement charge 3,488 4,895 369 732 Pension settlement charge 14,165 — — — Total net periodic cost $ 17,653 $ 4,895 $ 369 $ 732 |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table details changes in amounts included in our Accumulated Other Comprehensive Income (Loss) (AOCI) by component on our Condensed Consolidated Balance Sheets , net of tax: Three Months Ended March 31, (in thousands) 2022 2021 Pension Plans Balance at beginning of period $ 49,579 $ 79,025 Net loss arising during the period 4,587 — Effect of pension settlement ( 10,553 ) — Amounts reclassified from AOCI to earnings ( 1,469 ) ( 2,770 ) Balance at end of period 42,144 76,255 Other Postretirement Benefit Plans Balance at beginning of period 1,790 14,783 Amounts reclassified from AOCI to earnings ( 45 ) ( 183 ) Balance at end of period 1,745 14,600 Cash Flow Hedges Balance at beginning of period ( 8,131 ) 27,181 Amounts arising during the period ( 41,243 ) ( 61,875 ) Amounts reclassified from AOCI to earnings ( 2,033 ) ( 2,232 ) Balance at end of period ( 51,407 ) ( 36,926 ) Accumulated other comprehensive (income) loss, end of period $ ( 7,518 ) $ 53,929 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) a in Millions, $ in Millions | Mar. 31, 2022USD ($)a |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Timber And Timberlands Acres Owned | a | 1.8 |
Term loans | $ | $ 403.5 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information (Summary of
Segment Information (Summary of Revenues by Major Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 411,350 | $ 354,193 | |
Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 453,464 | 401,525 | |
Intersegment Eliminations [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | [1] | (42,114) | (47,332) |
Timberlands [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 123,657 | 111,916 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 82,199 | 76,980 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 81,504 | 76,181 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 392 | 499 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 303 | 300 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 41,458 | 34,936 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 23,381 | 22,416 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 11,627 | 9,161 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Stumpage [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 3,358 | 764 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 3,092 | 2,595 | |
Wood Products [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 295,742 | 269,296 | |
Wood Products [Member] | Operating Segments [Member] | Lumber [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 250,764 | 229,682 | |
Wood Products [Member] | Operating Segments [Member] | Residuals and Panels [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 44,978 | 39,614 | |
Real Estate Segment [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 34,065 | 20,313 | |
Real Estate Segment [Member] | Operating Segments [Member] | Rural Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 21,646 | 10,025 | |
Real Estate Segment [Member] | Operating Segments [Member] | Development Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 10,278 | 8,053 | |
Real Estate Segment [Member] | Operating Segments [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 2,141 | $ 2,235 | |
[1] | Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment. |
Segment Information (Summary _2
Segment Information (Summary of Information by Business Segment) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | $ 245,562 | $ 194,986 | ||
Interest expense, net | [1] | (2,894) | (3,574) | |
Depreciation, depletion and amortization | (19,502) | (17,996) | ||
Basis of real estate sold | 10,854 | 8,823 | ||
Net loss on fire damage | (276) | |||
Pension settlement charge | $ (14,165) | (14,165) | ||
Non-operating pension and other postretirement employee benefits | (1,929) | (3,414) | ||
Gain (loss) on disposal of fixed assets | (3) | 34 | ||
Income before income taxes | 195,945 | 161,145 | ||
Bond discounts and deferred loan fees | [1] | 372 | 403 | |
Total depreciation, depletion and amortization | 19,874 | 18,399 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion and amortization | 19,502 | 17,996 | ||
Operating Segments [Member] | Timberlands [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | 76,434 | 67,858 | ||
Depreciation, depletion and amortization | 12,161 | 11,417 | ||
Operating Segments [Member] | Wood Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | 149,951 | 125,555 | ||
Depreciation, depletion and amortization | 7,021 | 6,203 | ||
Operating Segments [Member] | Real Estate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | 30,124 | 16,593 | ||
Depreciation, depletion and amortization | 170 | 155 | ||
Basis of real estate sold | 10,860 | 8,829 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | (9,584) | (10,710) | ||
Depreciation, depletion and amortization | 150 | 221 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDDA | 1,363 | (4,310) | ||
Basis of real estate sold | $ (6) | $ (6) | ||
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . |
Earnings per Share (Reconciliat
Earnings per Share (Reconciliation of Number of Shares Used in Calculating Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings per Share [Line Items] | ||
Basic weighted-average shares outstanding | 69,419 | 67,207 |
Diluted weighted-average shares outstanding | 69,623 | 67,607 |
Performance shares [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 140 | 326 |
Restricted stock units [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 64 | 74 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Aug. 30, 2018 | |
Earnings per Share [Line Items] | |||
Total anti-dilutive shares excluded from the calculation (in shares) | 114,400 | 63,000 | |
Number of shares repurchased | 0 | 0 | |
Stock repurchase program, remaining amount | $ 59.5 | ||
Maximum [Member] | |||
Earnings per Share [Line Items] | |||
Stock repurchase program, authorized amount | $ 100 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Logs | $ 32,794 | $ 41,199 |
Lumber, panels and veneer | 37,539 | 34,528 |
Materials and supplies | 18,478 | 17,780 |
Inventories gross | 88,811 | 93,507 |
Less: LIFO reserve | (21,138) | (21,138) |
Total inventories | $ 67,673 | $ 72,369 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 545,163 | $ 532,324 |
Less: accumulated depreciation | (247,453) | (240,004) |
Total property, plant and equipment, net | $ 297,710 | $ 292,320 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Gain on insurance recoveries on destroyed property | $ (276,000) | |
Ola, Arkansas Sawmill [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gain on insurance recoveries on destroyed property | 0 | |
Business interruption recoveries | $ 0 | |
Proceeds From Insurance Recoveries For Property Loss | $ 15,000,000 |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components (Schedule of Timber and Timberlands) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Timber And Timberlands [Abstract] | ||
Timber and timberlands | $ 1,586,628 | $ 1,597,011 |
Logging roads | 84,702 | 85,660 |
Total timber and timberlands, net | $ 1,671,330 | $ 1,682,671 |
Certain Balance Sheet Compone_7
Certain Balance Sheet Components (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |||
Income taxes payable | $ 35,421 | $ 1,134 | |
Accrued payroll and benefits | 19,084 | 28,944 | |
Accounts payable | 10,419 | 12,749 | |
Deferred revenue | [1] | 9,671 | 8,392 |
Other accrued taxes | 7,310 | 5,714 | |
Accrued interest | 4,468 | 6,046 | |
Other current liabilities | 15,216 | 15,230 | |
Total accounts payable and accrued liabilities | $ 101,589 | $ 78,209 | |
[1] | Deferred revenue predominately relates to hunting and other access rights on our timberlands, payments received for lumber shipments where control of goods has not transferred, member-related activities at an owned country club and certain post-close obligations for real estate sales. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except for country club initiation fees which are recognized over the average life of club membership. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2019 | Mar. 31, 2022 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 1 | |
Maximum borrowing capacity | 75 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 300 | |
Amount available to increase borrowing capacity | 500 | |
Swing Line Loans [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 25 | |
Amended Term Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | 693.5 | |
Outstanding long-term debt, current | $ 40 | |
Term loan maturity period | 2022-12 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.68% | 2.10% |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivatives Fair Value [Line Items] | |
Term loan debt | $ 403,500,000 |
Net losses expected to be reclassified into earnings in the next 12 months | $ 1,400,000 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Minimum [Member] | |
Derivatives Fair Value [Line Items] | |
Swaps fixed interest rate | 1.68% |
LIBOR variable interest rate | 3.04% |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Maximum [Member] | |
Derivatives Fair Value [Line Items] | |
Swaps fixed interest rate | 2.10% |
LIBOR variable interest rate | 4.75% |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans [Member] | |
Derivatives Fair Value [Line Items] | |
Term loan debt | $ 403,500 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans Maturing in December 2020 through January 2029 [Member] | |
Derivatives Fair Value [Line Items] | |
Term loan debt | $ 567,500 |
Term loan maturity period | 2029-01 |
Derivative Instruments (Gross F
Derivative Instruments (Gross Fair Value of Derivative Instruments) (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Derivatives Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | $ 62,160 | $ 33,497 | |
Liability Derivatives, Fair Value | 7,197 | 24,060 | |
Interest rate contracts [Member] | Other Noncurrent Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | 57,487 | 31,306 | |
Interest rate contracts [Member] | Other Assets Current [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives, Fair Value | [1] | 4,673 | 2,191 |
Interest rate contracts [Member] | Other Long-term Obligations [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | 7,197 | 24,060 | |
Interest rate contracts [Member] | Accounts Payable and Accrued Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives, Fair Value | [1] | $ 0 | |
[1] | Derivative instruments that mature within one year, as a whole, are classified as current. |
Derivative Instruments (Effect
Derivative Instruments (Effect of Derivatives on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, net of tax | $ 43,276 | $ 64,107 | |
Interest expense, net | [1] | 2,894 | 3,574 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, net of tax | 41,243 | 61,875 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate contracts [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | [2] | $ (2,033) | $ (2,232) |
[1] | Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . | ||
[2] | Realized losses on interest rate contracts consist of net cash received or paid and interest accruals on the interest rate swaps during the periods. Net cash received or paid is included in the supplemental cash flow information within interest, net of amounts capitalized in the Condensed Consolidated Statements of Cash Flows . |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Carrying Amount [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ (757,017) | $ (759,854) |
Carrying Amount [Member] | Level 2 [Member] | Interest rate contracts [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative assets related to interest rate swaps | 62,160 | 33,497 | |
Derivative liabilities related to interest rate swaps | (7,197) | (24,060) | |
Carrying Amount [Member] | Level 2 [Member] | Term Loans [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (691,282) | (691,119) | |
Carrying Amount [Member] | Level 2 [Member] | Revenue bonds [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (65,735) | (65,735) | |
Carrying Amount [Member] | Level 2 [Member] | Medium-term notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (3,000) | ||
Carrying Amount [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | 4,002 | 3,923 | |
Fair Value [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | (761,107) | (777,420) |
Fair Value [Member] | Level 2 [Member] | Interest rate contracts [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative assets related to interest rate swaps | 62,160 | 33,497 | |
Derivative liabilities related to interest rate swaps | (7,197) | (24,060) | |
Fair Value [Member] | Level 2 [Member] | Term Loans [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (694,353) | (705,135) | |
Fair Value [Member] | Level 2 [Member] | Revenue bonds [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (66,754) | (69,278) | |
Fair Value [Member] | Level 2 [Member] | Medium-term notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | (3,007) | ||
Fair Value [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | $ 4,002 | $ 3,923 | |
[1] | The carrying amount of long-term debt includes principal and unamortized discounts. |
Equity-Based Compensation (Narr
Equity-Based Compensation (Narrative) (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
PSA and RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued for stock compensation (shares) | shares | 0.3 |
Performance Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $ / shares | $ 76.18 |
Performance share award granted under stock incentive plan, performance period | 3 years |
Performance Share Awards [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 0.00% |
Performance Share Awards [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Actually Issued, as a Percent of the Amount Subject to the Performance Share Award | 200.00% |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $ / shares | $ 54.79 |
Long-Term Incentive Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future use | shares | 0.7 |
Equity-Based Compensation (Shar
Equity-Based Compensation (Share-Based Compensation Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2022shares | |
Performance Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 92,490 |
Forfeited | 971 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 34,324 |
Vested | 500 |
Forfeited | 1,323 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details of Equity-Based Compensation Expense and Related Income Tax Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 2,056 | $ 1,930 |
Deferred compensation stock equivalent units expense | 49 | 41 |
Total tax benefit recognized for equity-based expense | 100 | 89 |
Performance Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 1,298 | 1,224 |
Restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 709 | $ 665 |
Equity-Based Compensation (Fair
Equity-Based Compensation (Fair Value of Performance Share Awards Granted) (Details) - Performance Share Awards [Member] | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock price as of valuation date | $ 55.02 |
Risk-free rate | 1.79% |
Expected volatility | 45.69% |
Expected term (years) | 3 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Operating lease assets | $ 7,794 | $ 8,514 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets | Other long-term assets | |
Finance lease assets | [1] | $ 10,012 | $ 10,663 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net | |
Total lease assets | $ 17,806 | $ 19,177 | |
Current liabilities: | |||
Operating lease liabilities | $ 2,845 | $ 3,021 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Finance lease liabilities | $ 3,550 | $ 3,577 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Noncurrent: | |||
Operating lease liabilities | $ 5,013 | $ 5,598 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | |
Finance lease liabilities | $ 6,342 | $ 6,972 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | |
Total lease liabilities | $ 17,750 | $ 19,168 | |
[1] | Finance lease assets are presented net of accumulated amortization of $ 5.5 million and $ 4.5 million as of March 31, 2022 and December 31, 2021, respectively. |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities (Parentheticals) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Accumulated amortization of finance lease assets | $ 5.5 | $ 4.5 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Leases [Abstract] | |||
Operating lease costs | [1] | $ 947 | $ 1,328 |
Finance lease costs: | |||
Amortization of leased assets | 929 | 589 | |
Interest on lease liabilities | 67 | 51 | |
Net lease costs | $ 1,943 | $ 1,968 | |
[1] | Excludes short-term leases and variable lease costs, which are immaterial. |
Leases - Schedule of Suppleme_3
Leases - Schedule of Supplemental Cash Flow Information Related Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 994 | $ 1,368 |
Operating cash flows for finance leases | 67 | 51 |
Financing cash flows for finance leases | 938 | 577 |
Leased assets exchanged for new lease liabilities: | ||
Operating leases | 154 | 124 |
Finance leases | $ 281 | $ 801 |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefits (Components Of Net Periodic Cost (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,849 | $ 2,045 |
Interest cost | 2,812 | 2,633 |
Expected return on plan assets | (3,145) | (3,382) |
Amortization of prior service cost (credit) | 18 | 21 |
Amortization of actuarial loss (gain) | 1,954 | 3,578 |
Net periodic cost before pension settlement charge | 3,488 | 4,895 |
Pension settlement charge | 14,165 | |
Total net periodic cost | 17,653 | 4,895 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 79 | 168 |
Interest cost | 229 | 317 |
Amortization of prior service cost (credit) | 156 | (298) |
Amortization of actuarial loss (gain) | (95) | 545 |
Net periodic cost before pension settlement charge | 369 | 732 |
Total net periodic cost | $ 369 | $ 732 |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Funding of pension and other postretirement benefit plans | $ 1,296,000 | $ 1,421,000 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Change in participants pension benefits | 0 | ||
Non-cash pretax settlement charge | $ 14,200,000 | ||
Qualified Plan [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to measure projected benefit obligations for plan | 3.95% | 3.00% | |
Qualified Plan [Member] | Pension Plans [Member] | Funded with Plan Assets [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Transfer of outstanding pension benefit obligation related to qualified pension plans to insurance company | $ 75,600,000 | ||
Reduction in funded status of qualified pension plans | $ 6,200,000 |
Components of Accumulated Oth_3
Components of Accumulated Other Comprehensive Loss (Changes in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ (1,526,133) | $ (1,304,953) |
Effect of pension settlement | (10,553) | 0 |
Balance at end of period | (1,712,198) | (1,477,549) |
Pension Plans [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 49,579 | 79,025 |
Net (gain) loss arising during the period | 4,587 | |
Effect of pension settlement | (10,553) | |
Amounts reclassified from AOCI to earnings | (1,469) | (2,770) |
Balance at end of period | 42,144 | 76,255 |
Other Postretirement Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 1,790 | 14,783 |
Amounts reclassified from AOCI to earnings | (45) | (183) |
Balance at end of period | 1,745 | 14,600 |
Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (8,131) | 27,181 |
Net (gain) loss arising during the period | (41,243) | (61,875) |
Amounts reclassified from AOCI to earnings | (2,033) | (2,232) |
Balance at end of period | (51,407) | (36,926) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 43,238 | 120,989 |
Balance at end of period | $ (7,518) | $ 53,929 |