Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | 79,915,922 | |
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, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | |||
Revenues | $ 257,962 | $ 411,350 | |
Costs and expenses: | |||
Cost of goods sold | 224,350 | 179,847 | |
Selling, general and administrative expenses | 18,230 | 16,294 | |
CatchMark merger-related expenses | 2,209 | 0 | |
Loss on fire damage | 0 | 276 | |
Total costs and expenses | 244,789 | 196,417 | |
Operating income | 13,173 | 214,933 | |
Interest expense, net | [1] | (199) | (2,894) |
Pension settlement charge | 0 | (14,165) | |
Non-operating pension and other postretirement employee benefit costs | (228) | (1,929) | |
Other | 10 | 0 | |
Income before income taxes | 12,756 | 195,945 | |
Income taxes | 3,504 | (32,065) | |
Net income | $ 16,260 | $ 163,880 | |
Net income per share: | |||
Basic | $ 0.20 | $ 2.36 | |
Diluted | 0.20 | 2.35 | |
Dividends per share | $ 0.45 | $ 0.44 | |
Weighted-average shares outstanding | |||
Basic | 80,027 | 69,419 | |
Diluted | 80,167 | 69,623 | |
[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 (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,260 | $ 163,880 |
Other comprehensive (loss) income, net of tax: | ||
Pension and other postretirement employee benefits | (131) | 7,480 |
Cash flow hedges | (17,335) | 43,276 |
Other comprehensive (loss) income, net of tax | (17,466) | 50,756 |
Comprehensive (loss) income | $ (1,206) | $ 214,636 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 325,632 | $ 343,809 |
Customer receivables, net | 29,565 | 22,813 |
Inventories, net | 66,189 | 67,958 |
Other current assets | 44,698 | 36,955 |
Total current assets | 466,084 | 471,535 |
Property, plant and equipment, net | 312,791 | 318,184 |
Investment in real estate held for development and sale | 54,945 | 55,490 |
Timber and timberlands, net | 2,488,956 | 2,508,372 |
Intangible assets, net | 16,975 | 17,420 |
Other long-term assets | 160,019 | 179,554 |
Total assets | 3,499,770 | 3,550,555 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 78,268 | 94,861 |
Current portion of long-term debt | 39,985 | 39,979 |
Current portion of pension and other postretirement employee benefits | 4,926 | 4,926 |
Total current liabilities | 123,179 | 139,766 |
Long-term debt | 992,988 | 992,701 |
Pension and other postretirement employee benefits | 78,096 | 77,396 |
Deferred tax liabilities, net | 41,756 | 41,790 |
Other long-term obligations | 35,488 | 35,749 |
Total liabilities | 1,271,507 | 1,287,402 |
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 79,916 and 79,683 shares | 79,916 | 79,683 |
Additional paid-in capital | 2,296,927 | 2,294,797 |
Accumulated deficit | (228,766) | (208,979) |
Accumulated other comprehensive income | 80,186 | 97,652 |
Total stockholders’ equity | 2,228,263 | 2,263,153 |
Total liabilities and stockholders' equity | $ 3,499,770 | $ 3,550,555 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 79,916,000 | 79,683,000 |
Common stock, outstanding | 79,916,000 | 79,683,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 16,260 | $ 163,880 | |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation, depletion and amortization | 32,173 | 19,874 | |
Basis of real estate sold | 10,631 | 10,854 | |
Change in deferred taxes | 394 | (2,123) | |
Pension and other postretirement employee benefits | 1,611 | 3,857 | |
Pension settlement charge | 0 | 14,165 | |
Equity-based compensation expense | 2,279 | 2,056 | |
Loss on fire damage | 0 | 276 | |
Other, net | (3,509) | (291) | |
Change in working capital and operating-related activities, net | (17,205) | (21,208) | |
Real estate development expenditures | (2,408) | (2,161) | |
Funding of pension and other postretirement employee benefits | (1,087) | (1,296) | |
Net cash from operating activities | 39,139 | 230,299 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Property, plant and equipment additions | (4,255) | (12,566) | |
Timberlands reforestation and roads | (6,118) | (4,648) | |
Interest received under swaps with other-than-insignificant financing element | 5,055 | 0 | |
Other, net | 422 | 92 | |
Net cash from investing activities | (4,896) | (17,122) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Distributions to common stockholders | (35,962) | (30,524) | |
Repayments of long term debt | 0 | (3,000) | |
Other, net | (838) | (1,071) | |
Net cash from financing activities | (36,800) | (34,595) | |
Change in cash, cash equivalents and restricted cash | (2,557) | 178,582 | |
Cash, cash equivalents and restricted cash at beginning of period | 345,591 | 296,772 | |
Cash, cash equivalents and restricted cash at end of period | 343,034 | 475,354 | |
NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Accrued property, plant and equipment additions | 1,835 | 1,516 | |
Accrued timberlands reforestation and roads | 1,041 | 98 | |
Cash and cash equivalents | 325,632 | 470,918 | |
Restricted cash included in other long-term assets | [1] | $ 17,402 | $ 4,436 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other long-term assets | Other long-term assets | |
Total cash, cash equivalents, and restricted cash | $ 343,034 | $ 475,354 | |
[1] 1 Amounts included in restricted cash represent proceeds held by a qualified intermediary that were or are intended to be reinvested in timber and timberlands. At March 31, 2023 and 2022, $ 14.0 million and $ 0 , respectively, was classified in Other current assets . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Restricted Cash, Current | $ 14 | $ 0 |
Restricted Cash, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
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 Income (Loss) [Member] |
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 | ||||
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 | ||||
Balance, beginning of period at Dec. 31, 2022 | $ 2,263,153 | $ 79,683 | 2,294,797 | (208,979) | 97,652 |
Balance, beginning of period (shares) at Dec. 31, 2022 | 79,683,000 | 79,683,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 16,260 | 16,260 | |||
Shares issued for stock compensation | $ 233 | (233) | |||
Shares issued for stock compensation (shares) | 233,000 | ||||
Equity-based compensation expense | 2,279 | 2,279 | |||
Pension plans and OPEB obligations, net of tax | 131 | (131) | |||
Cash flow hedges, net of tax | (17,335) | (17,335) | |||
Dividends on common stock | (35,962) | (35,962) | |||
Other transactions, net | (1) | 84 | (85) | ||
Balance, end of period at Mar. 31, 2023 | $ 2,228,263 | $ 79,916 | $ 2,296,927 | $ (228,766) | $ 80,186 |
Balance, end of period (shares) at Mar. 31, 2023 | 79,916,000 | 79,916,000 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Common dividends, per share | $ 0.45 | $ 0.44 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 nine states. We are engaged in activities associated with timberland management, including the sale of timber, the management of nearly 2.2 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, 2022, as filed with the Securities and Exchange Commission on February 16, 2023. 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. Recent Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and are adopted by the company as of the specified effectiv e date. For the three months ended March 31, 2023, there were no new accounting pronouncements that management believes materially affect the company’s present or future results of operations, overall financial condition, liquidity or disclosures. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
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. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, a 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) 2023 2022 Timberlands Northern region Sawlogs $ 53,325 $ 81,504 Pulpwood 403 392 Other 261 303 Total Northern revenues 53,989 82,199 Southern region Sawlogs 31,754 23,381 Pulpwood 16,132 11,627 Stumpage 9,233 3,358 Other 4,130 3,092 Total Southern revenues 61,249 41,458 Total Timberlands revenues 115,238 123,657 Wood Products Lumber 113,798 250,764 Residuals and Panels 38,997 44,978 Total Wood Products revenues 152,795 295,742 Real Estate Rural real estate 17,819 21,646 Development real estate 2,800 10,278 Other 3,244 2,141 Total Real Estate revenues 23,863 34,065 Total segment revenues 291,896 453,464 Intersegment Timberlands revenues 1 ( 33,934 ) ( 42,114 ) Total consolidated revenues $ 257,962 $ 411,350 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. 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) 2023 2022 Adjusted EBITDDA: Timberlands $ 46,639 $ 76,434 Wood Products ( 31 ) 149,951 Real Estate 19,465 30,124 Corporate ( 10,741 ) ( 9,584 ) Eliminations and adjustments 2,445 ( 1,363 ) Total Adjusted EBITDDA 57,777 245,562 Interest expense, net 1 ( 199 ) ( 2,894 ) Depreciation, depletion and amortization ( 31,764 ) ( 19,502 ) Basis of real estate sold ( 10,631 ) ( 10,854 ) CatchMark merger-related expenses ( 2,209 ) — Loss on fire damage — ( 276 ) Pension settlement charge — ( 14,165 ) Non-operating pension and other postretirement employee benefit costs ( 228 ) ( 1,929 ) Gain on disposal of fixed assets — 3 Other 10 — Income before income taxes $ 12,756 $ 195,945 Depreciation, depletion and amortization: Timberlands $ 20,461 $ 12,161 Wood Products 11,035 7,021 Real Estate 156 170 Corporate 112 150 31,764 19,502 Bond discounts and deferred loan fees 1 409 372 Total depreciation, depletion and amortization $ 32,173 $ 19,874 Basis of real estate sold: Real Estate $ 10,631 $ 10,860 Eliminations and adjustments — ( 6 ) Total basis of real estate sold $ 10,631 $ 10,854 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, 2023 | |
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) 2023 2022 Basic weighted-average shares outstanding 80,027 69,419 Incremental shares due to: Performance shares 97 140 Restricted stock units 43 64 Diluted weighted-average shares outstanding 80,167 69,623 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, 2023 and 2022, there were approximately 134,000 and 114,400 stock-based awards, respectively, that were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Share Repurchase Program On August 31, 2022, our board of directors authorized management to repurchase up to $ 200.0 million of our common stock with no set time limit for the repurchase (the 2022 Repurchase Program). Concurrently, the board of directors terminated the remaining repurchase authorization under a previously approved share repurchase plan. Shares under the 2022 Repurchase Program may be repurchased 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, t he 2022 Repurchase Program may be suspended, terminated or modified at any time for any reason. No sh ares were repurchased during the three months ended March 31, 2023 and 2022. At March 31, 2023, we had remaining authorization of $ 150.0 million for future stock repurchases under the 2022 Repurchase Program. Transaction costs are not counted against authorized funds. 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, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Certain Balance Sheet Components | NO TE 4. CERTAIN BALANCE SHEET COMPONENTS Inventories (in thousands) March 31, 2023 December 31, 2022 Logs $ 24,428 $ 30,586 Lumber, panels and veneer 38,526 35,888 Materials and supplies 23,013 21,262 Total inventories 85,967 87,736 Less: LIFO reserve ( 19,778 ) ( 19,778 ) Total inventories, net $ 66,189 $ 67,958 Property, plant and equipment (in thousands) March 31, 2023 December 31, 2022 Property, plant and equipment $ 594,574 $ 588,935 Less: accumulated depreciation ( 281,783 ) ( 270,751 ) Total property, plant and equipment, net $ 312,791 $ 318,184 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. The new equipment has been installed and the large log line restarted in September 2022. We have adequate property damage and business interruption insurance and expect to be reimbursed for both property damage and b usiness interruption losses by our insurance carriers, subject to a $ 2.0 million deductible, under which we filed a claim with the insurance carriers. Through December 31, 2022, we received a total of $ 50.0 million from the insurance carriers for both property damage and business interruption proceeds at the Ola sawmill. No insurance proceeds were received for the claim during the three months ended March 31, 2023. We are in the process of finalizing our insurance claim and expect to receive the remaining insurance proceeds in 2023. Insurance recoveries are recorded when deemed probable and reasonably estimable. Timber and timberlands (in thousands) March 31, 2023 December 31, 2022 Timber and timberlands $ 2,397,681 $ 2,416,134 Logging roads 91,275 92,238 Total timber and timberlands, net $ 2,488,956 $ 2,508,372 Accounts payable and accrued liabilities (in thousands) March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 15,920 $ 29,051 Accounts payable 11,510 12,241 Deferred revenue 1 8,606 10,860 Accrued interest 6,603 7,778 Accrued taxes 8,629 7,161 Other current liabilities 27,000 27,770 Total accounts payable and accrued liabilities $ 78,268 $ 94,861 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, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NO TE 5. DEBT TERM LOANS At March 31, 2023, our total outstanding principal on our long-term debt of $ 1.0 billion included $ 971.0 million of term loans under our Second Amended and Restated Term Loan Agreement (Amended Term Loan Agreement) with our primary lender. Certain borrowings under the Amended Term Loan Agreement are at one-month SOFR-indexed variable rates, plus a spread between 1.66 % and 2.30 %. We have entered into SOFR-indexed interest rate swaps to fix the interest rate on these variable rate term loans. See Note: 6 Derivative Instruments for additional information. CREDIT AGREEMENT At March 31, 2023, there were no borrowings under our $ 300.0 million revolving line of credit and approximately $ 0.9 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 sub facilities 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, 2023. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2023 | |
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. All 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, 2023 , we have interest rate swaps associated with $ 721.0 million of SOFR-indexed term loan debt. These cash flow hedges convert variable rates ranging from one-month SOFR plus 1.66 % to 2.30 %, to fixed rates ranging from 2.19 % to 4.79 % before patronage credits from lenders. At March 31, 2023, we also have $ 250.0 million of forward-starting interest rate swaps designated as cash flow hedges for expected future debt refinances that require settlement on the stated maturity date. The gross fair values of derivative instruments at March 31, 2023 and December 31, 2022, were $ 124.3 million and $ 144.6 million, respectively, all of which were classified in Other assets, non-current on our Condensed Consolidated Balance Sheets . 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 2023 2022 Derivatives designated in cash flow hedging relationships: Interest rate contracts (Loss) income recognized in other comprehensive (loss) income, net of tax $ ( 13,591 ) $ 41,330 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1 Interest expense, net $ 3,744 $ ( 1,946 ) Interest expense, net $ 199 $ 2,894 1 Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive (loss) income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges. Net cash received or paid is included within Interest expense, net in the Condensed Consolidated Statements of Operations . At March 31, 2023, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $ 15.6 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 SOFR rates at the time of net swap cash payments. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 (in thousands) Carrying Fair Carrying Fair Derivative assets related to interest rate swaps (Level 2) $ 124,328 $ 124,328 $ 144,583 $ 144,583 Long-term debt, including current portion (Level 2): Term loans $ ( 969,432 ) $ ( 963,277 ) $ ( 969,269 ) $ ( 961,632 ) Revenue bonds ( 65,735 ) ( 64,788 ) ( 65,735 ) ( 64,602 ) Total long-term debt 1 $ ( 1,035,167 ) $ ( 1,028,065 ) $ ( 1,035,004 ) $ ( 1,026,234 ) Company owned life insurance asset (COLI) (Level 3) $ 4,512 $ 4,512 $ 4,311 $ 4,311 1 The carrying amount of long-term debt includes principal and unamortized discounts. The fair value of interest rate swaps is 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, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Equity-Based Compensation | NO TE 8. EQUITY-BASED COMPENSATION We issue new shares of common stock to settle performance stock awards (PSAs), restricted stock units (RSUs) and deferred compensation stock equivalent units. At March 31, 2023, approximately 1.9 million shares are available for future use under our long-term incentive plans. Share-based compensation activity during the three months ended March 31, 2023, included the following: Granted Vested Forfeited Performance Share Awards (PSAs) 106,342 — 751 Restricted Stock Units (RSUs) 70,901 — 250 Approximately 0.2 million shares of common stock as a result of PSA and RSU vesting during 2022 were issued to employees during the three months ended March 31, 2023. The following details compensation expense and the related income tax benefit for company specific equity-based awards: Three Months Ended March 31, (in thousands) 2023 2022 Equity-based compensation expense: Performance share awards $ 1,421 $ 1,298 Restricted stock units 809 709 Deferred compensation stock equivalent units expense 49 49 Total equity-based compensation expense $ 2,279 $ 2,056 Total tax benefit recognized for equity-based expense $ 122 $ 100 Performance Share Awards The weighted average grant date fair value of PSAs granted in 2023 was $ 61.21 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 of common stock at the date of settlement 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 2023: Stock price as of valuation date $ 47.55 Risk-free rate 4.14 % Expected volatility 36.24 % 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, 2023, was $ 47.55 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, 2023 | |
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 and discrete items. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 Assets Operating lease assets Other long-term assets $ 8,497 $ 9,306 Finance lease assets 1 Property, plant and equipment, net 12,416 13,213 Total lease assets $ 20,913 $ 22,519 Liabilities Current: Operating lease liabilities Accounts payable and accrued liabilities $ 2,293 $ 2,570 Finance lease liabilities Accounts payable and accrued liabilitie s 4,559 4,834 Noncurrent: Operating lease liabilities Other long-term obligations 6,199 6,716 Finance lease liabilities Other long-term obligations 7,626 8,179 Total lease liabilities $ 20,677 $ 22,299 1 Finance lease assets are presented net of accumulated amortization of $ 9.0 million and $ 7.9 million as of March 31, 2023 and December 31, 2022, respectively. The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease costs 1 $ 886 $ 947 Finance lease costs: Amortization of leased assets 1,231 929 Interest expense 111 67 Net lease costs $ 2,228 $ 1,943 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) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 891 $ 994 Operating cash flows for finance leases $ 111 $ 67 Financing cash flows for finance leases $ 1,237 $ 938 Leased assets exchanged for new lease liabilities: Operating leases $ — $ 154 Finance leases $ 526 $ 281 |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits, Description [Abstract] | |
Pension and Other Postretirement Employee Benefits | NO TE 11. PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS 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) 2023 2022 2023 2022 Service cost $ 1,356 $ 1,849 $ 27 $ 79 Interest cost 3,138 2,812 294 229 Expected return on plan assets ( 3,028 ) ( 3,145 ) — — Amortization of prior service cost 11 18 — 156 Amortization of actuarial (gain) loss ( 21 ) 1,954 ( 166 ) ( 95 ) Net periodic cost before pension settlement charge 1,456 3,488 155 369 Pension settlement charge — 14,165 — — Total net periodic cost $ 1,456 $ 17,653 $ 155 $ 369 During the three months ended March 31, 2023 and 2022, funding of pension and other postretirement employee benefit plans was $ 1.1 million and $ 1.3 million, respectively. Pension Annuitization 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. We recorded a non-cash pretax settlement charge of $ 14.2 million in non-operating expense, net, 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 plan assets and liabilities resulting in a reduction in the funded status of the Plan of approximately $ 6.2 million during the first quarter of 2022. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income | NO TE 12. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME 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) 2023 2022 Pension and Other Postretirement Employee Benefits Balance at beginning of period $ ( 28,494 ) $ ( 51,369 ) Unrecognized (losses) gains arising in AOCI during the period: Gross — ( 6,157 ) Tax effect — 1,570 Reclassifications from AOCI to earnings: Pension settlement 1 — 14,165 Other 1 ( 176 ) 2,033 Tax effect 45 ( 4,131 ) Net of tax amount ( 131 ) 7,480 Balance at end of period ( 28,625 ) ( 43,889 ) Cash Flow Hedges Balance at beginning of period 126,146 8,131 Unrecognized (losses) gains arising in AOCI during the period: Gross ( 13,881 ) 43,492 Tax effect 290 ( 2,162 ) Reclassifications from AOCI to earnings: Gross 2 ( 3,837 ) 2,033 Tax effect 93 ( 87 ) Net of tax amount ( 17,335 ) 43,276 Balance at end of period 108,811 51,407 Accumulated other comprehensive income, end of period $ 80,186 $ 7,518 1 Included in the computation of net periodic pension costs. 2 Included in Interest expense, net on the Condensed Consolidated Statement of Operations . See Note 11: Pension and Other Postretirement Employee Benefits and Note 6: Derivative Instruments for additional information. |
CatchMark Merger
CatchMark Merger | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
CatchMark Merger | NOTE 13. CATCHMARK MERGER On September 14, 2022, CatchMark Timber Trust, Inc. (CatchMark) and CatchMark Timber Operating Partnership, L.P. (the Partnership) merged into a wholly owned subsidiary (Merger Sub) of PotlatchDeltic, pursuant to the terms of a merger agreement dated May 29, 2022, with the Merger Sub surviving the mergers. CatchMark owned approximately 348,000 acres of superior site index timberlands located in Alabama, Georgia and South Carolina. The CatchMark timber and timberlands assets and operations are included in our Timberlands segment within the Southern region. As a result of the merger, we issued approximately 11.5 million shares of PotlatchDeltic common stock, including: (i) 11.3 million shares in exchange for the outstanding shares of CatchMark common stock, which included unvested CatchMark share-based awards that fully vested upon closing of the merger; and (ii) 0.2 million shares in exchange for the Partnership OP Units. We capitalized transaction costs of $ 9.3 million for items such as investment banking fees, legal services, and other professional fees directly attributable to the merger. We accounted for the transaction as an asset acquisition as substantially all the value of the acquisition was concentrated in the acquired timber and timberlands. We allocated the cost of the acquisition to the net assets acquired based on their relative estimated fair value on the acquisition date. This resulted in an allocation of $ 782.3 million to timber and timberlands, $ 3.0 million to intangible assets, $ 32.0 million to other assets and $ 23.6 million for cash acquired in the merger. Additionally, we assumed $ 323.1 million of liabilities including $ 300.0 million of outstanding long-term debt. Immediately following the merger, we refinanced $ 277.5 million of the long-term debt assumed in the merger and repaid the remaining $ 22.5 million with cash on hand. We also entered into $ 277.5 million of interest rate swaps to fix the interest rates on the refinanced long-term debt. During the three months ended March 31, 2023, we incurred non-capitalizable merger costs in connection with the CatchMark merger of approximately $ 2.2 million. These fees consisted primarily of post-merger period fees for professional services and are included in CatchMark merger-related expenses in our Condensed Consolidated Statements of Operations . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. 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 materially adverse effect on our consolidated financial position, operating results or net cash flow. ENVIRONMENTAL MATTER Pursuant to the 2002 Asset Purchase Agreement under which Sappi Cloquet LLC (Sappi) purchased our Cloquet, Minnesota pulp and paper mill (the Plant), we agreed to indemnify Sappi from certain environmental liabilities accruing from the pre-sale operations of the Plant. In February 2021, we were notified by Sappi that the Environmental Protection Agency (EPA) contacted Sappi about the opportunity to participate with the Minnesota Pollution Control Agency (MPCA) and the EPA in a voluntary federal sediment remediation program under the Great Lakes Legacy Act (GLLA) for a project in the St. Louis River Area of Concern, which runs from Cloquet, Minnesota to Lake Superior. The GLLA is a sediment remediation program administered by EPA that provides up to 65 % federal funding for the remediation of contaminated sediments in the Great Lakes region. The GLLA program requires at least 35 % cash or in-kind contributions from non-federal sponsors (NFS). The EPA’s invitation to Sappi made no demands on or claims against Sappi, nor have EPA or MPCA made any demands or claims against PotlatchDeltic. The identified sediment remediation project at Thomson Reservoir is downstream from the Plant. The Plant was identified for potential partnership with EPA and MPCA on this project based on the Plant’s historic direct discharges of wastewater and leachate from the Plant’s landfill into the St. Louis River prior to the re-routing of the discharges in 1979 to a public wastewater treatment facility. After multiple discussions with the MPCA and completion of our extensive due diligence on this matter, we informed the MPCA in January 2023 that we were interested in voluntarily participating in the program, subject to an equitable division with the MPCA of the NFS share of the costs. In March 2023, we reached an agreement in principle with MPCA on the division of NFS share of costs. We accrued $ 5.6 million at December 31, 2022, for our estimated contribution to the remediation project. The project is still pending EPA approval and, if approved, negotiation of a Project Agreement between the EPA, the MPCA, and us will be required. While it is reasonably possible that we may incur an additional liability as this project develops, we are unable to estimate at this time the amount of additional charges, if any, which may be required for this matter in the future. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 nine states. We are engaged in activities associated with timberland management, including the sale of timber, the management of nearly 2.2 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, 2022, as filed with the Securities and Exchange Commission on February 16, 2023. 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. |
Recent Accounting Standards | Recent Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies and are adopted by the company as of the specified effectiv e date. For the three months ended March 31, 2023, there were no new accounting pronouncements that management believes materially affect the company’s present or future results of operations, overall financial condition, liquidity or disclosures. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) 2023 2022 Timberlands Northern region Sawlogs $ 53,325 $ 81,504 Pulpwood 403 392 Other 261 303 Total Northern revenues 53,989 82,199 Southern region Sawlogs 31,754 23,381 Pulpwood 16,132 11,627 Stumpage 9,233 3,358 Other 4,130 3,092 Total Southern revenues 61,249 41,458 Total Timberlands revenues 115,238 123,657 Wood Products Lumber 113,798 250,764 Residuals and Panels 38,997 44,978 Total Wood Products revenues 152,795 295,742 Real Estate Rural real estate 17,819 21,646 Development real estate 2,800 10,278 Other 3,244 2,141 Total Real Estate revenues 23,863 34,065 Total segment revenues 291,896 453,464 Intersegment Timberlands revenues 1 ( 33,934 ) ( 42,114 ) Total consolidated revenues $ 257,962 $ 411,350 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) 2023 2022 Adjusted EBITDDA: Timberlands $ 46,639 $ 76,434 Wood Products ( 31 ) 149,951 Real Estate 19,465 30,124 Corporate ( 10,741 ) ( 9,584 ) Eliminations and adjustments 2,445 ( 1,363 ) Total Adjusted EBITDDA 57,777 245,562 Interest expense, net 1 ( 199 ) ( 2,894 ) Depreciation, depletion and amortization ( 31,764 ) ( 19,502 ) Basis of real estate sold ( 10,631 ) ( 10,854 ) CatchMark merger-related expenses ( 2,209 ) — Loss on fire damage — ( 276 ) Pension settlement charge — ( 14,165 ) Non-operating pension and other postretirement employee benefit costs ( 228 ) ( 1,929 ) Gain on disposal of fixed assets — 3 Other 10 — Income before income taxes $ 12,756 $ 195,945 Depreciation, depletion and amortization: Timberlands $ 20,461 $ 12,161 Wood Products 11,035 7,021 Real Estate 156 170 Corporate 112 150 31,764 19,502 Bond discounts and deferred loan fees 1 409 372 Total depreciation, depletion and amortization $ 32,173 $ 19,874 Basis of real estate sold: Real Estate $ 10,631 $ 10,860 Eliminations and adjustments — ( 6 ) Total basis of real estate sold $ 10,631 $ 10,854 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, 2023 | |
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) 2023 2022 Basic weighted-average shares outstanding 80,027 69,419 Incremental shares due to: Performance shares 97 140 Restricted stock units 43 64 Diluted weighted-average shares outstanding 80,167 69,623 |
Certain Balance Sheet Compone_2
Certain Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventories | Inventories (in thousands) March 31, 2023 December 31, 2022 Logs $ 24,428 $ 30,586 Lumber, panels and veneer 38,526 35,888 Materials and supplies 23,013 21,262 Total inventories 85,967 87,736 Less: LIFO reserve ( 19,778 ) ( 19,778 ) Total inventories, net $ 66,189 $ 67,958 |
Schedule of Property, Plant and Equipment | Property, plant and equipment (in thousands) March 31, 2023 December 31, 2022 Property, plant and equipment $ 594,574 $ 588,935 Less: accumulated depreciation ( 281,783 ) ( 270,751 ) Total property, plant and equipment, net $ 312,791 $ 318,184 |
Schedule of Timber and Timberlands | Timber and timberlands (in thousands) March 31, 2023 December 31, 2022 Timber and timberlands $ 2,397,681 $ 2,416,134 Logging roads 91,275 92,238 Total timber and timberlands, net $ 2,488,956 $ 2,508,372 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities (in thousands) March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 15,920 $ 29,051 Accounts payable 11,510 12,241 Deferred revenue 1 8,606 10,860 Accrued interest 6,603 7,778 Accrued taxes 8,629 7,161 Other current liabilities 27,000 27,770 Total accounts payable and accrued liabilities $ 78,268 $ 94,861 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, 2023 | |
Derivative Instrument Detail [Abstract] | |
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 2023 2022 Derivatives designated in cash flow hedging relationships: Interest rate contracts (Loss) income recognized in other comprehensive (loss) income, net of tax $ ( 13,591 ) $ 41,330 Amounts reclassified from accumulated other comprehensive income (loss), net of tax 1 Interest expense, net $ 3,744 $ ( 1,946 ) Interest expense, net $ 199 $ 2,894 1 Realized gains and losses on interest rate contracts consist of realized net cash received or paid and interest accruals on the interest rate swaps during the periods in addition to amortization of amounts out of other comprehensive (loss) income related to certain terminated hedges and adjustments to interest expense resulting from amortization of inception value of certain off-market designated hedges. Net cash received or paid is included within Interest expense, net in the Condensed Consolidated Statements of Operations . At March 31, 2023, the amount of net gains expected to be reclassified into earnings in the next 12 months is approximately $ 15.6 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 SOFR rates at the time of net swap cash payments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instrument Detail [Abstract] | |
Estimated Fair Value of Financial Instruments | The following table presents the estimated fair values of our financial instruments: March 31, 2023 December 31, 2022 (in thousands) Carrying Fair Carrying Fair Derivative assets related to interest rate swaps (Level 2) $ 124,328 $ 124,328 $ 144,583 $ 144,583 Long-term debt, including current portion (Level 2): Term loans $ ( 969,432 ) $ ( 963,277 ) $ ( 969,269 ) $ ( 961,632 ) Revenue bonds ( 65,735 ) ( 64,788 ) ( 65,735 ) ( 64,602 ) Total long-term debt 1 $ ( 1,035,167 ) $ ( 1,028,065 ) $ ( 1,035,004 ) $ ( 1,026,234 ) Company owned life insurance asset (COLI) (Level 3) $ 4,512 $ 4,512 $ 4,311 $ 4,311 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, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation Activity | Share-based compensation activity during the three months ended March 31, 2023, included the following: Granted Vested Forfeited Performance Share Awards (PSAs) 106,342 — 751 Restricted Stock Units (RSUs) 70,901 — 250 |
Details of Compensation Expense and Related Income Tax Benefit for Specific Equity-Based Awards | The following details compensation expense and the related income tax benefit for company specific equity-based awards: Three Months Ended March 31, (in thousands) 2023 2022 Equity-based compensation expense: Performance share awards $ 1,421 $ 1,298 Restricted stock units 809 709 Deferred compensation stock equivalent units expense 49 49 Total equity-based compensation expense $ 2,279 $ 2,056 Total tax benefit recognized for equity-based expense $ 122 $ 100 |
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 2023: Stock price as of valuation date $ 47.55 Risk-free rate 4.14 % Expected volatility 36.24 % Expected dividend yield 1 — Expected term (years) 3.00 1 Full dividend reinvestment assumed. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 Assets Operating lease assets Other long-term assets $ 8,497 $ 9,306 Finance lease assets 1 Property, plant and equipment, net 12,416 13,213 Total lease assets $ 20,913 $ 22,519 Liabilities Current: Operating lease liabilities Accounts payable and accrued liabilities $ 2,293 $ 2,570 Finance lease liabilities Accounts payable and accrued liabilitie s 4,559 4,834 Noncurrent: Operating lease liabilities Other long-term obligations 6,199 6,716 Finance lease liabilities Other long-term obligations 7,626 8,179 Total lease liabilities $ 20,677 $ 22,299 1 Finance lease assets are presented net of accumulated amortization of $ 9.0 million and $ 7.9 million as of March 31, 2023 and December 31, 2022, respectively. |
Schedule of Components of Lease Expense | The following table presents the components of lease expense: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease costs 1 $ 886 $ 947 Finance lease costs: Amortization of leased assets 1,231 929 Interest expense 111 67 Net lease costs $ 2,228 $ 1,943 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) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 891 $ 994 Operating cash flows for finance leases $ 111 $ 67 Financing cash flows for finance leases $ 1,237 $ 938 Leased assets exchanged for new lease liabilities: Operating leases $ — $ 154 Finance leases $ 526 $ 281 |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) 2023 2022 2023 2022 Service cost $ 1,356 $ 1,849 $ 27 $ 79 Interest cost 3,138 2,812 294 229 Expected return on plan assets ( 3,028 ) ( 3,145 ) — — Amortization of prior service cost 11 18 — 156 Amortization of actuarial (gain) loss ( 21 ) 1,954 ( 166 ) ( 95 ) Net periodic cost before pension settlement charge 1,456 3,488 155 369 Pension settlement charge — 14,165 — — Total net periodic cost $ 1,456 $ 17,653 $ 155 $ 369 |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | 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) 2023 2022 Pension and Other Postretirement Employee Benefits Balance at beginning of period $ ( 28,494 ) $ ( 51,369 ) Unrecognized (losses) gains arising in AOCI during the period: Gross — ( 6,157 ) Tax effect — 1,570 Reclassifications from AOCI to earnings: Pension settlement 1 — 14,165 Other 1 ( 176 ) 2,033 Tax effect 45 ( 4,131 ) Net of tax amount ( 131 ) 7,480 Balance at end of period ( 28,625 ) ( 43,889 ) Cash Flow Hedges Balance at beginning of period 126,146 8,131 Unrecognized (losses) gains arising in AOCI during the period: Gross ( 13,881 ) 43,492 Tax effect 290 ( 2,162 ) Reclassifications from AOCI to earnings: Gross 2 ( 3,837 ) 2,033 Tax effect 93 ( 87 ) Net of tax amount ( 17,335 ) 43,276 Balance at end of period 108,811 51,407 Accumulated other comprehensive income, end of period $ 80,186 $ 7,518 1 Included in the computation of net periodic pension costs. 2 Included in Interest expense, net on the Condensed Consolidated Statement of Operations . |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) a in Millions | Mar. 31, 2023 a |
Derivatives, Fair Value [Line Items] | |
Timber and timberlands acres owned | 2.2 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
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, 2023 | Mar. 31, 2022 | ||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 257,962 | $ 411,350 | |
Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 291,896 | 453,464 | |
Intersegment Eliminations [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | [1] | (33,934) | (42,114) |
Timberlands [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 115,238 | 123,657 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 53,989 | 82,199 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 53,325 | 81,504 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 16,132 | 11,627 | |
Timberlands [Member] | Operating Segments [Member] | Northern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 261 | 303 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 61,249 | 41,458 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Sawlogs [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 31,754 | 23,381 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Pulpwood [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 403 | 392 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Stumpage [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 9,233 | 3,358 | |
Timberlands [Member] | Operating Segments [Member] | Southern Region [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 4,130 | 3,092 | |
Wood Products [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 152,795 | 295,742 | |
Wood Products [Member] | Operating Segments [Member] | Lumber [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 113,798 | 250,764 | |
Wood Products [Member] | Operating Segments [Member] | Residuals and Panels [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 38,997 | 44,978 | |
Real Estate Segment [Member] | Operating Segments [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 23,863 | 34,065 | |
Real Estate Segment [Member] | Operating Segments [Member] | Rural Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 17,819 | 21,646 | |
Real Estate Segment [Member] | Operating Segments [Member] | Development Real Estate [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | 2,800 | 10,278 | |
Real Estate Segment [Member] | Operating Segments [Member] | Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues | $ 3,244 | $ 2,141 | |
[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 | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | $ 57,777 | $ 245,562 | |
Interest expense, net | [1] | (199) | (2,894) |
Depreciation, depletion and amortization | (31,764) | (19,502) | |
Basis of real estate sold | (10,631) | (10,854) | |
CatchMark merger-related expenses | (2,209) | 0 | |
Loss on fire damage | 0 | (276) | |
Pension settlement charge | 0 | (14,165) | |
Non-operating pension and other postretirement employee benefit costs | (228) | (1,929) | |
Gain on disposal of fixed assets | 0 | 3 | |
Other | 10 | 0 | |
Income before income taxes | 12,756 | 195,945 | |
Bond discounts and deferred loan fees | [1] | 409 | 372 |
Total depreciation, depletion and amortization | 32,173 | 19,874 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion and amortization | 31,764 | 19,502 | |
Operating Segments [Member] | Timberlands [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | 46,639 | 76,434 | |
Depreciation, depletion and amortization | 20,461 | 12,161 | |
Operating Segments [Member] | Wood Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | 11,035 | 7,021 | |
Depreciation, depletion and amortization | (31) | 149,951 | |
Operating Segments [Member] | Real Estate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | 19,465 | 30,124 | |
Depreciation, depletion and amortization | 156 | 170 | |
Basis of real estate sold | 10,631 | 10,860 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | (10,741) | (9,584) | |
Depreciation, depletion and amortization | 112 | 150 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDDA | 2,445 | (1,363) | |
Basis of real estate sold | $ 0 | $ (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, 2023 | Mar. 31, 2022 | |
Earnings per Share [Line Items] | ||
Basic weighted-average shares outstanding | 80,027 | 69,419 |
Diluted weighted-average shares outstanding | 80,167 | 69,623 |
Performance shares [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 97 | 140 |
Restricted stock units [Member] | ||
Earnings per Share [Line Items] | ||
Incremental shares | 43 | 64 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Aug. 31, 2022 | |
Earnings per Share [Line Items] | |||
Total anti-dilutive shares excluded from the calculation (in shares) | 134,000 | 114,400 | |
2022 Repurchase Program [Member] | |||
Earnings per Share [Line Items] | |||
Number of shares repurchased | 0 | 0 | |
Stock repurchase program, remaining amount | $ 150 | ||
Maximum [Member] | 2022 Repurchase Program [Member] | |||
Earnings per Share [Line Items] | |||
Stock repurchase program, authorized amount | $ 200 |
Certain Balance Sheet Compone_3
Certain Balance Sheet Components (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Logs | $ 24,428 | $ 30,586 |
Lumber, panels and veneer | 38,526 | 35,888 |
Materials and supplies | 23,013 | 21,262 |
Inventories gross | 85,967 | 87,736 |
Less: LIFO reserve | (19,778) | (19,778) |
Total inventories | $ 66,189 | $ 67,958 |
Certain Balance Sheet Compone_4
Certain Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 594,574 | $ 588,935 |
Less: accumulated depreciation | (281,783) | (270,751) |
Total property, plant and equipment, net | $ 312,791 | $ 318,184 |
Certain Balance Sheet Compone_5
Certain Balance Sheet Components - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Proceeds from insurance of claim received | $ 0 | $ 50,000 |
Ola, Arkansas Sawmill [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Deductible amount of property damage and business interruption losses | $ 2,000 |
Certain Balance Sheet Compone_6
Certain Balance Sheet Components (Schedule of Timber and Timberlands) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Timber And Timberlands [Abstract] | ||
Timber and timberlands | $ 2,397,681 | $ 2,416,134 |
Logging roads | 91,275 | 92,238 |
Total timber and timberlands, net | $ 2,488,956 | $ 2,508,372 |
Certain Balance Sheet Compone_7
Certain Balance Sheet Components (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |||
Accrued payroll and benefits | $ 15,920 | $ 29,051 | |
Accounts payable | 11,510 | 12,241 | |
Deferred revenue | [1] | 8,606 | 10,860 |
Accrued interest | 6,603 | 7,778 | |
Accrued taxes | 8,629 | 7,161 | |
Other current liabilities | 27,000 | 27,770 | |
Total accounts payable and accrued liabilities | $ 78,268 | $ 94,861 | |
[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) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Long-term principal | $ 1,000,000,000 |
Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, amount outstanding | 900,000 |
Maximum borrowing capacity | 75,000,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Revolving line of credit borrowings | 0 |
Maximum borrowing capacity | 300,000,000 |
Amount available to increase borrowing capacity | 500,000,000 |
Swing Line Loans [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | 25,000,000 |
Amended Term Loan Agreement [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, amount outstanding | $ 971,000,000 |
Secured Overnight Financing Rate (SOFR) [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.66% |
Secured Overnight Financing Rate (SOFR) [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.30% |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivatives Fair Value [Line Items] | ||
Net gains expected to be reclassified into earnings in the next 12 months | $ 15.6 | |
Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets related to interest rate swaps | 124.3 | $ 144.6 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
Derivatives Fair Value [Line Items] | ||
Term loan debt | $ 250 | |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Minimum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 1.66% | |
LIBOR variable interest rate | 2.19% | |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Maximum [Member] | ||
Derivatives Fair Value [Line Items] | ||
Swaps fixed interest rate | 2.30% | |
LIBOR variable interest rate | 4.79% | |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | Term Loans [Member] | ||
Derivatives Fair Value [Line Items] | ||
Term loan debt | $ 721 |
Derivative Instruments (Gross F
Derivative Instruments (Gross Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 124.3 | $ 144.6 |
Derivative Instruments (Effect
Derivative Instruments (Effect of Derivatives on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash flow hedges, net of tax | $ (17,335) | $ 43,276 | |
Interest expense, net | [1] | 199 | 2,894 |
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 | 13,591 | 41,330 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | [2] | $ 3,744 | $ (1,946) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense, net | Interest expense, net | |
[1] Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations . Net cash received or paid is included within Interest expense, net in the Condensed Consolidated Statements of Operations . |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Carrying Amount [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ (1,035,167) | $ (1,035,004) |
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 | 124,328 | 144,583 | |
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 | (969,432) | (969,269) | |
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 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | 4,512 | 4,311 | |
Fair Value [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | (1,028,065) | (1,026,234) |
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 | 124,328 | 144,583 | |
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 | (963,277) | (961,632) | |
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 | (64,788) | (64,602) | |
Fair Value [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Company owned life insurance asset (COLI) | $ 4,512 | $ 4,311 | |
[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, 2023 $ / shares shares | |
PSA and RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares issued for stock compensation (shares) | shares | 0.2 |
Performance Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $ / shares | $ 61.21 |
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% |
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% |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of shares granted | $ / shares | $ 47.55 |
Long-Term Incentive Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future use | shares | 1.9 |
Equity-Based Compensation (Shar
Equity-Based Compensation (Share-Based Compensation Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2023 shares | |
Performance Share Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 106,342 |
Vested | 0 |
Forfeited | 751 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | 70,901 |
Vested | 0 |
Forfeited | 250 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details of Compensation Expense and Related Income Tax Benefit for Specific Equity-Based Awards) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 2,279 | $ 2,056 |
Deferred compensation stock equivalent units expense | 49 | 49 |
Total tax benefit recognized for equity-based expense | 122 | 100 |
Performance Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | 1,421 | 1,298 |
Restricted stock units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity-based compensation expense | $ 809 | $ 709 |
Equity-Based Compensation (Fair
Equity-Based Compensation (Fair Value of Performance Share Awards Granted) (Details) - Performance Share Awards [Member] | 3 Months Ended | |
Mar. 31, 2023 $ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price as of valuation date | $ 47.55 | |
Risk-free rate | 4.14% | |
Expected volatility | 36.24% | |
Expected dividend yield | 0% | [1] |
Expected term (years) | 3 years | |
[1] 1 Full dividend reinvestment assumed. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related Leases Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Operating lease assets | $ 8,497 | $ 9,306 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other long-term assets | Other long-term assets | |
Finance lease assets | [1] | $ 12,416 | $ 13,213 |
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 | $ 20,913 | $ 22,519 | |
Current liabilities: | |||
Operating lease liabilities | $ 2,293 | $ 2,570 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Finance lease liabilities | $ 4,559 | $ 4,834 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | |
Noncurrent: | |||
Operating lease liabilities | $ 6,199 | $ 6,716 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | |
Finance lease liabilities | $ 7,626 | $ 8,179 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term obligations | Other long-term obligations | |
Total lease liabilities | $ 20,677 | $ 22,299 | |
[1] 1 Finance lease assets are presented net of accumulated amortization of $ 9.0 million and $ 7.9 million as of March 31, 2023 and December 31, 2022, 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, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Accumulated amortization of finance lease assets | $ 9 | $ 7.9 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Leases [Abstract] | |||
Operating lease costs | [1] | $ 886 | $ 947 |
Finance lease costs: | |||
Amortization of leased assets | 1,231 | 929 | |
Interest expense | 111 | 67 | |
Net lease costs | $ 2,228 | $ 1,943 | |
[1] 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, 2023 | Mar. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 891 | $ 994 |
Operating cash flows for finance leases | 111 | 67 |
Financing cash flows for finance leases | 1,237 | 938 |
Leased assets exchanged for new lease liabilities: | ||
Operating leases | 154 | |
Finance leases | $ 526 | $ 281 |
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, 2023 | Mar. 31, 2022 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,356 | $ 1,849 |
Interest cost | 3,138 | 2,812 |
Expected return on plan assets | (3,028) | (3,145) |
Amortization of prior service cost | 11 | 18 |
Amortization of actuarial (gain) loss | (21) | 1,954 |
Net periodic cost before pension settlement charge | 1,456 | 3,488 |
Pension settlement charge | 0 | 14,165 |
Total net periodic cost | 1,456 | 17,653 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 27 | 79 |
Interest cost | 294 | 229 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 156 |
Amortization of actuarial (gain) loss | (166) | (95) |
Net periodic cost before pension settlement charge | 155 | 369 |
Pension settlement charge | 0 | 0 |
Total net periodic cost | $ 155 | $ 369 |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Funding of pension and other postretirement benefit plans | $ 1,087,000 | $ 1,296,000 |
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] | 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) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, beginning of period | $ 2,263,153 | $ 1,526,133 | |
Reclassifications from AOCI to earnings: | |||
Balance, end of period | 2,228,263 | 1,712,198 | |
Pension and Other Postretirement Employee Benefits | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, beginning of period | (28,494) | (51,369) | |
Unrecognized (losses) gains arising in AOCI during the period: | |||
Gross | 0 | (6,157) | |
Tax effect | 0 | 1,570 | |
Reclassifications from AOCI to earnings: | |||
Pension settlement | [1] | 0 | 14,165 |
Other | [1] | (176) | 2,033 |
Tax effect | 45 | (4,131) | |
Net of tax amount | (131) | 7,480 | |
Balance, end of period | (28,625) | (43,889) | |
Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, beginning of period | 126,146 | 8,131 | |
Unrecognized (losses) gains arising in AOCI during the period: | |||
Gross | (13,881) | 43,492 | |
Tax effect | 290 | (2,162) | |
Reclassifications from AOCI to earnings: | |||
Gross | [2] | (3,837) | 2,033 |
Tax effect | 93 | (87) | |
Net of tax amount | 17,335 | 43,276 | |
Balance, end of period | 108,811 | 51,407 | |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance, beginning of period | 97,652 | (43,238) | |
Reclassifications from AOCI to earnings: | |||
Balance, end of period | $ 80,186 | $ 7,518 | |
[1] Included in the computation of net periodic pension costs. Included in Interest expense, net on the Condensed Consolidated Statement of Operations . |
CatchMark Merger - Additional I
CatchMark Merger - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Sep. 14, 2022 USD ($) a shares | Mar. 31, 2023 USD ($) a shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 shares | |
Business Acquisition [Line Items] | ||||
Timber and timberlands acres owned | a | 2,200,000 | |||
Common stock, issued | shares | 79,916,000 | 79,683,000 | ||
CatchMark merger-related expenses | $ 2,209 | $ 0 | ||
CatchMark and CatchMark Timber Operating Partnership, LP [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, issued | shares | 11,500,000 | |||
Transaction costs capitalized | $ 9,300 | |||
CatchMark [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, issued | shares | 11,300,000 | |||
Proceeds from Issuance of debt | $ 277,500 | |||
Outstanding long-term debt | 300,000 | |||
Repayments of Debt | 22,500 | |||
Fair Value of Assets Acquired | 23,600 | |||
CatchMark merger-related expenses | $ 2,200 | |||
Liabilities assumed in merger | 323,100 | |||
CatchMark [Member] | Intangible Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value of Assets Acquired | $ 3,000 | |||
CatchMark Timber Operating Partnership, LP [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, issued | shares | 200,000 | |||
Timber and Timberlands [Member] | CatchMark and CatchMark Timber Operating Partnership, LP [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value of Assets Acquired | $ 782,300 | |||
Other Assets [Member] | CatchMark [Member] | ||||
Business Acquisition [Line Items] | ||||
Fair Value of Assets Acquired | 32,000 | |||
Interest Rate Swaps [Member] | CatchMark [Member] | ||||
Business Acquisition [Line Items] | ||||
Term loan debt | $ 277,500 | |||
CatchMark Timber Trust, Inc [Member] | Alabama, Georgia and South Carolina [Member] | ||||
Business Acquisition [Line Items] | ||||
Timber and timberlands acres owned | a | 348,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 28, 2021 | Dec. 31, 2022 | |
Thomson Reservoir Sediment Remediation Project [Member] | ||
Site Contingency [Line Items] | ||
Accrued amount | $ 5.6 | |
Great Lakes Legacy Act [Member] | ||
Site Contingency [Line Items] | ||
Percentage of federal funding for remediation of contaminated sediments | 65% | |
Required percentage of cash or in-kind contributions from non-federal sponsors | 35% |