Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 02, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | MERCER INTERNATIONAL INC. | |
Entity Central Index Key | 0001333274 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Trading Symbol | MERC | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,524,866 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity File Number | 000-51826 | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 47-0956945 | |
Entity Address, Address Line One | Suite 1120 | |
Entity Address, Address Line Two | 700 West Pender Street | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V6C 1G8 | |
City Area Code | 604 | |
Local Phone Number | 684-1099 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 529,863 | $ 572,326 | $ 1,052,529 | $ 1,165,067 |
Costs and expenses | ||||
Cost of sales, excluding depreciation and amortization | 566,200 | 403,671 | 1,027,538 | 819,766 |
Cost of sales depreciation and amortization | 40,103 | 31,004 | 87,601 | 63,101 |
Selling, general and administrative expenses | 32,392 | 23,620 | 66,343 | 45,818 |
Operating income (loss) | (108,832) | 114,031 | (128,953) | 236,382 |
Other income (expenses) | ||||
Interest expense | (20,091) | (17,332) | (39,138) | (34,796) |
Other income | 3,138 | 8,799 | 6,372 | 17,045 |
Total other expenses, net | (16,953) | (8,533) | (32,766) | (17,751) |
Income (loss) before income taxes | (125,785) | 105,498 | (161,719) | 218,631 |
Income tax recovery (provision) | 27,479 | (34,126) | 32,835 | (58,362) |
Net income (loss) | $ (98,306) | $ 71,372 | $ (128,884) | $ 160,269 |
Net income (loss) per common share | ||||
Basic | $ (1.48) | $ 1.08 | $ (1.94) | $ 2.43 |
Diluted | (1.48) | 1.07 | (1.94) | 2.41 |
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.15 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (98,306) | $ 71,372 | $ (128,884) | $ 160,269 |
Other comprehensive income (loss) | ||||
Gain (loss) related to defined benefit pension plans | 268 | (119) | 41 | (235) |
Income tax recovery | 0 | 0 | 0 | 62 |
Gain (loss) related to defined benefit pension plans, net of tax | 268 | (119) | 41 | (173) |
Foreign currency translation adjustments | 12,236 | (84,020) | 30,886 | (94,542) |
Other comprehensive income (loss), net of taxes | 12,504 | (84,139) | 30,927 | (94,715) |
Total comprehensive income (loss) | $ (85,802) | $ (12,767) | $ (97,957) | $ 65,554 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 213,338 | $ 354,032 |
Accounts receivable, net | 335,402 | 351,993 |
Inventories | 429,873 | 450,470 |
Prepaid expenses and other | 20,732 | 21,680 |
Total current assets | 999,345 | 1,178,175 |
Property, plant and equipment, net | 1,431,017 | 1,341,322 |
Investment in joint ventures | 49,223 | 45,635 |
Amortizable intangible assets, net | 52,115 | 61,497 |
Goodwill | 34,792 | 30,937 |
Operating lease right-of-use assets | 17,794 | 15,049 |
Pension asset | 3,832 | 4,397 |
Other long-term assets | 45,251 | 48,025 |
Total assets | 2,633,369 | 2,725,037 |
Current liabilities | ||
Accounts payable and other | 369,851 | 377,306 |
Pension and other post-retirement benefit obligations | 613 | 755 |
Total current liabilities | 370,464 | 378,061 |
Long-term debt | 1,403,857 | 1,346,508 |
Pension and other post-retirement benefit obligations | 11,222 | 12,178 |
Operating lease liabilities | 11,670 | 9,475 |
Other long-term liabilities | 14,431 | 14,072 |
Deferred income tax | 88,256 | 125,959 |
Total liabilities | 1,899,900 | 1,886,253 |
Shareholders’ equity | ||
Common shares $1 par value; 200,000,000 authorized; 66,525,000 issued and outstanding (2022 - 66,167,000) | 66,471 | 66,132 |
Additional paid-in capital | 356,769 | 354,495 |
Retained earnings | 459,264 | 598,119 |
Accumulated other comprehensive loss | (149,035) | (179,962) |
Total shareholders’ equity | 733,469 | 838,784 |
Total liabilities and shareholders’ equity | 2,633,369 | 2,725,037 |
Commitments and contingencies (Note 15) |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares, Issued | 66,525,000 | 66,167,000 |
Common Stock, Shares, Outstanding | 66,525,000 | 66,167,000 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2021 | $ 694,024 | $ 65,988 | $ 347,902 | $ 370,927 | $ (90,793) |
Balance (in shares) at Dec. 31, 2021 | 66,037,000 | ||||
Shares issued on grants of restricted shares | $ 49 | (49) | |||
Shares issued on grants of restricted shares (in shares) | 35,000 | ||||
Shares issued on grants of performance share units | $ 95 | (95) | |||
Shares issued on grants of performance share units (in shares) | 95,000 | ||||
Stock compensation expense | 2,466 | 2,466 | |||
Net income (loss) | 160,269 | 160,269 | |||
Dividends declared | (9,922) | (9,922) | |||
Other comprehensive income (loss) | (94,715) | (94,715) | |||
Balance at Jun. 30, 2022 | 752,122 | $ 66,132 | 350,224 | 521,274 | (185,508) |
Balance (in shares) at Jun. 30, 2022 | 66,167,000 | ||||
Balance at Mar. 31, 2022 | 768,334 | $ 66,083 | 348,756 | 454,864 | (101,369) |
Balance (in shares) at Mar. 31, 2022 | 66,132,000 | ||||
Shares issued on grants of restricted shares | $ 49 | (49) | |||
Shares issued on grants of restricted shares (in shares) | 35,000 | ||||
Stock compensation expense | 1,517 | 1,517 | |||
Net income (loss) | 71,372 | 71,372 | |||
Dividends declared | (4,962) | (4,962) | |||
Other comprehensive income (loss) | (84,139) | (84,139) | |||
Balance at Jun. 30, 2022 | 752,122 | $ 66,132 | 350,224 | 521,274 | (185,508) |
Balance (in shares) at Jun. 30, 2022 | 66,167,000 | ||||
Balance at Dec. 31, 2022 | $ 838,784 | $ 66,132 | 354,495 | 598,119 | (179,962) |
Balance (in shares) at Dec. 31, 2022 | 66,167,000 | 66,167,000 | |||
Dividends declared | $ (4,982) | ||||
Balance at Mar. 31, 2023 | 822,873 | $ 66,386 | 355,467 | 562,559 | (161,539) |
Balance (in shares) at Mar. 31, 2023 | 66,421,000 | ||||
Balance at Dec. 31, 2022 | $ 838,784 | $ 66,132 | 354,495 | 598,119 | (179,962) |
Balance (in shares) at Dec. 31, 2022 | 66,167,000 | 66,167,000 | |||
Shares issued on grants of restricted shares | $ 35 | (35) | |||
Shares issued on grants of restricted shares (in shares) | 54,000 | ||||
Shares issued on grants of restricted share units | $ 50 | (50) | |||
Shares issued on grants of restricted share units (in shares) | 50,000 | ||||
Shares issued on grants of performance share units | $ 254 | (254) | |||
Shares issued on grants of performance share units (in shares) | 254,000 | ||||
Stock compensation expense | $ 2,613 | 2,613 | |||
Net income (loss) | (128,884) | (128,884) | |||
Dividends declared | (9,971) | (9,971) | |||
Other comprehensive income (loss) | 30,927 | 30,927 | |||
Balance at Jun. 30, 2023 | $ 733,469 | $ 66,471 | 356,769 | 459,264 | (149,035) |
Balance (in shares) at Jun. 30, 2023 | 66,525,000 | 66,525,000 | |||
Balance at Mar. 31, 2023 | $ 822,873 | $ 66,386 | 355,467 | 562,559 | (161,539) |
Balance (in shares) at Mar. 31, 2023 | 66,421,000 | ||||
Shares issued on grants of restricted shares | $ 35 | (35) | |||
Shares issued on grants of restricted shares (in shares) | 54,000 | ||||
Shares issued on grants of restricted share units | $ 50 | (50) | |||
Shares issued on grants of restricted share units (in shares) | 50,000 | ||||
Stock compensation expense | 1,387 | 1,387 | |||
Net income (loss) | (98,306) | (98,306) | |||
Dividends declared | (4,989) | (4,989) | |||
Other comprehensive income (loss) | 12,504 | 12,504 | |||
Balance at Jun. 30, 2023 | $ 733,469 | $ 66,471 | $ 356,769 | $ 459,264 | $ (149,035) |
Balance (in shares) at Jun. 30, 2023 | 66,525,000 | 66,525,000 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash flows from (used in) operating activities | |||||
Net income (loss) | $ (98,306,000) | $ 71,372,000 | $ (128,884,000) | $ 160,269,000 | |
Adjustments to reconcile net income (loss) to cash flows from operating activities | |||||
Depreciation and amortization | 40,152,000 | 31,028,000 | 87,743,000 | 63,144,000 | |
Deferred income tax provision (recovery) | (34,105,000) | 6,624,000 | (44,049,000) | 15,007,000 | |
Inventory impairment | 51,400,000 | 0 | 66,600,000 | 0 | $ 0 |
Defined benefit pension plans and other post-retirement benefit plan expense | 451,000 | 439,000 | 897,000 | 877,000 | |
Stock compensation expense | 1,387,000 | 1,517,000 | 2,613,000 | 2,466,000 | |
Foreign exchange transaction losses (gains) | 224,000 | (9,591,000) | 494,000 | (13,419,000) | |
Other | (5,452,000) | 30,000 | (6,601,000) | (771,000) | |
Defined benefit pension plans and other post-retirement benefit plan contributions | (1,318,000) | (1,200,000) | (1,565,000) | (2,394,000) | |
Changes in working capital | |||||
Accounts receivable | 12,168,000 | 65,509,000 | 23,510,000 | 13,382,000 | |
Inventories | 58,880,000 | (13,342,000) | (27,554,000) | (15,067,000) | |
Accounts payable and accrued expenses | (7,490,000) | 3,813,000 | (7,181,000) | 3,246,000 | |
Other | (3,293,000) | (1,658,000) | (975,000) | (3,389,000) | |
Net cash from (used in) operating activities | 14,698,000 | 154,541,000 | (34,952,000) | 223,351,000 | |
Cash flows from (used in) investing activities | |||||
Purchase of property, plant and equipment | (39,482,000) | (47,028,000) | (72,911,000) | (80,321,000) | |
Acquisition (Note 2) | (82,100,000) | 0 | (82,100,000) | 0 | |
Property insurance proceeds | 2,710,000 | 0 | 2,710,000 | 6,410,000 | |
Purchase of term deposit | 0 | (75,000,000) | 0 | (75,000,000) | |
Other | 1,120,000 | 474,000 | 1,925,000 | 567,000 | |
Net cash from (used in) investing activities | (117,752,000) | (121,554,000) | (150,376,000) | (148,344,000) | |
Cash flows from (used in) financing activities | |||||
Proceeds from (repayment of) revolving credit facilities, net | 24,305,000 | (13,066,000) | 54,407,000 | 17,438,000 | |
Dividend payments | (4,982,000) | (4,960,000) | (4,982,000) | (4,960,000) | |
Payment of debt issuance costs | 0 | 0 | 0 | (1,184,000) | |
Proceeds from government grants | 0 | 0 | 0 | 1,067,000 | |
Payment of finance lease obligations | (1,898,000) | (1,671,000) | (3,787,000) | (6,606,000) | |
Other | (115,000) | 277,000 | (229,000) | (566,000) | |
Net cash from (used in) financing activities | 17,310,000 | (19,420,000) | 45,409,000 | 5,189,000 | |
Effect of exchange rate changes on cash and cash equivalents | (1,478,000) | (4,411,000) | (775,000) | (5,945,000) | |
Net increase (decrease) in cash and cash equivalents | (87,222,000) | 9,156,000 | (140,694,000) | 74,251,000 | |
Cash and cash equivalents, beginning of period | 300,560,000 | 410,705,000 | 354,032,000 | 345,610,000 | 345,610,000 |
Cash and cash equivalents, end of period | 213,338,000 | 419,861,000 | 213,338,000 | 419,861,000 | $ 354,032,000 |
Supplemental cash flow disclosure: | |||||
Cash paid for interest | 3,621,000 | 1,164,000 | 36,861,000 | 33,237,000 | |
Cash paid for income taxes | $ 1,461,000 | $ 41,593,000 | $ 3,234,000 | $ 60,493,000 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation The Interim Consolidated Financial Statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). Mercer Inc. owns 100 % of its subsidiaries with the exception of the 50 % joint venture interest in the Cariboo mill with West Fraser Mills Ltd., which is accounted for using the equity method. The Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The consolidated balance sheet information as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements, but does not contain all of the footnote disclosures from the annual Consolidated Financial Statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2022. In the opinion of the Company, the unaudited Interim Consolidated Financial Statements contained herein have been prepared on a consistent basis with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2022 and contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol "€" refers to euros and the symbol "C$" refers to Canadian dollars. Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions 2023 Asset Acquisition Structurlam On June 15, 2023 , the Company acquired substantially all of the assets of Structurlam Mass Timber Corporation and its subsidiaries (“Structurlam”), including a mass timber production facility located in Conway, Arkansas (the “Conway Facility”) and mass timber production facilities in British Columbia, Canada, for cash consideration of $ 82,100 , net of a $ 2,400 break fee and expense reimbursement and including $ 1,000 of acquisition costs. The transaction is accounted for as an acquisition of a group of assets as management determined it does not qualify as an acquisition of a business under GAAP. Substantially all of the fair value of the gross assets acquired was concentrated in a group of similar identifiable assets, being the land, building and production equipment at the Conway Facility. 2022 Business Acquisition Torgau On September 30, 2022 , the Company acquired all of the issued and outstanding shares of Wood Holdco GmbH, which is the parent company of Holzindustrie Torgau KG ("Torgau") for consideration of € 270.0 million ($ 263,196 ) cash. The acquisition results in 100 % ownership of a timber processing and value-add pallet production facility in Torgau, Germany and a wood processing facility in Dahlen, Germany that produces garden products. The acquisition of Torgau expands the Company’s solid wood business and further diversifies the Company’s product offerings. The Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed on the acquisition date was finalized during the six month period ended June 30, 2023. The following table summarizes the purchase price allocation: Purchase Price Cash $ 6,592 Accounts receivable 13,202 Inventories 50,900 Other current assets 2,548 Property, plant and equipment 205,450 Amortizable intangible assets (a) 25,141 Goodwill (b) 31,213 Other long-term assets 3,934 Total assets acquired 338,980 Accounts payable and other current liabilities ( 43,905 ) Deferred income tax ( 29,390 ) Other long-term liabilities ( 2,489 ) Total liabilities assumed ( 75,784 ) Net assets acquired $ 263,196 (a) Amortizable intangible assets include an order backlog, which has an estimated fair value of $ 15,243 and was amortized on a straight-line basis over six months and an energy sales agreement, which has an estimated fair value of $ 9,898 and is being amortized on a straight-line basis over 12 years. (b) The goodwill is primarily for expected synergies from combining the operations of Torgau with the Company’s existing German operations. The goodwill is no t deductible for tax purposes. |
Business Interruption Insurance
Business Interruption Insurance | 6 Months Ended |
Jun. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Business Interruption Insurance | Note 3. Business Interruption Insurance In 2021, the Rosenthal mill turbine was taken down to complete extensive repair work. In June 2023, the Company settled the business interruption portion of the insurance claim for € 15.2 million ($ 16,553 ). In July 2022, a fire occurred in the woodyard of the Stendal mill. In September 2022, the Company received written confirmation from the insurance provider that the business interruption insurance claim related to the fire is covered. In the three and six month periods ended June 30, 2023, the insurance provider paid nonrefundable business interruption insurance payments of € 2.5 million ($ 2,710 ) and € 9.5 million ($ 10,221 ), respectively. The Company also received € 2.5 million ($ 2,710 ) for property insurance related to the fire. The business interruption and property insurance proceeds for the three and six month periods ended June 30, 2023 of € 20.2 million ($ 21,973 ) and € 27.2 million ($ 29,484 ), respectively, were recorded in “Cost of sales, excluding depreciation and amortization” in the Interim Consolidated Statements of Operations. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Inventories | Note 4. Inventories Inventories as of June 30, 2023 and December 31, 2022, were comprised of the following: June 30, December 31, 2023 2022 Raw materials $ 136,897 $ 160,442 Finished goods 149,117 158,082 Spare parts and other 143,859 131,946 $ 429,873 $ 450,470 For the three and six month periods ended June 30, 2023, as a result of low pulp prices and high per unit fiber costs for the Canadian mills, the Company recorded inventory impairment charges of $ 51,400 and $ 66,600 , respectively, (2022 – $ nil ) in "Cost of sales, excluding depreciation and amortization" in the Interim Consolidated Statements of Operations. As of June 30, 2023, $ 37,200 of the write-down was recorded against raw materials inventory and $ 14,200 was recorded against finished goods inventory. As of December 31, 2022, there were no inventory write-downs. |
Accounts Payable and Other
Accounts Payable and Other | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Note 5. Accounts Payable and Other Accounts payable and other as of June 30, 2023 and December 31, 2022, were comprised of the following: June 30, December 31, 2023 2022 Trade payables $ 88,107 $ 92,848 Accrued expenses 99,261 96,979 Interest payable 26,856 26,756 Income tax payable 82,737 99,827 Payroll-related accruals 31,895 34,353 Deposits for mass timber sales contracts 8,797 — Wastewater fee (a) 7,710 8,614 Finance lease liability 7,432 7,368 Operating lease liability 5,776 5,255 Other 11,280 5,306 $ 369,851 $ 377,306 (a) The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt Debt as of June 30, 2023 and December 31, 2022, was comprised of the following: June 30, December 31, Maturity 2023 2022 Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 300 million German joint revolving credit facility (b) 2027 127,132 109,326 C$ 160 million Canadian joint revolving credit facility (c) 2027 71,752 31,749 € 2.6 million demand loan (d) — — Finance lease liability 49,445 51,129 1,423,329 1,367,204 Less: unamortized senior note issuance costs ( 12,040 ) ( 13,328 ) Less: finance lease liability due within one year ( 7,432 ) ( 7,368 ) $ 1,403,857 $ 1,346,508 The maturities of the principal portion of the senior notes and credit arrangements as of June 30, 2023 were as follows: Senior Notes and Credit Arrangements 2023 $ — 2024 — 2025 — 2026 300,000 2027 198,884 Thereafter 875,000 $ 1,373,884 Certain of the Company's debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As of June 30, 2023, the Company was in compliance with the terms of its debt agreements. (a) The senior notes which mature on February 1, 2029 (the "2029 Senior Notes") and the senior notes which mature on January 15, 2026 (the “2026 Senior Notes” and collectively with the 2029 Senior Notes, the “Senior Notes”) are general unsecured senior obligations of the Company. The Company may redeem all or a part of the Senior Notes upon not less than 10 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2026 Senior Notes redemption price is 100.000 % of the principal amount. The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the 2029 Senior Notes: 2029 Senior Notes 12 Month Period Beginning Percentage February 1, 2024 102.563 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % Note 6. Debt (continued) (b) A € 300.0 million joint revolving credit facility for the German mills that matures in September 2027. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.30 % to 2.25 % dependent on conditions including but not limited to a prescribed leverage ratio. The facility is sustainability linked whereby the interest rate margin is subject to upward or downward adjustments of up to 0.05 % per annum if the Company achieves, or fails to achieve, certain specified sustainability targets. As of June 30, 2023, approximately € 117.0 million ($ 127,132 ) of this facility was drawn and accruing interest at a rate of 4.556 %, a pproximately € 13.5 million ($ 14,682 ) was supporting bank guarantees and approximately € 169.5 million ($ 184,166 ) was available. (c) A C$ 160.0 million joint revolving credit facility for the Celgar mill, Peace River mill and certain other Canadian subsidiaries that matures in January 2027. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.20 % to 1.45 % per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50 %, an Adjusted Term SOFR for a one month tenor plus 1.00 % and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of June 30, 2023, approximately C$ 95.0 million ($ 71,752 ) of this facility was drawn and accruing interest at a rate of 6.548 % , approximately C$ 1.3 million ($ 953 ) was supporting letters of credit and approximately C$ 63.7 million ($ 48,140 ) was available. (d) A € 2.6 million demand loan for Rosenthal that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of June 30, 2023, approximately € 2.6 million ($ 2,773 ) of this facility was supporting bank guarantees and approximately $ nil was available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefit Obligations | Note 7. Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Pension benefits are based on employees' earnings and years of service. The defined benefit plans are funded by contributions from the Company based on actuarial estimates and statutory requirements. The components of the net benefit costs for the Celgar and Peace River defined benefit plans, in aggregate for the three and six month periods ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, 2023 2022 Pension Other Post- Pension Other Post- Service cost $ 602 $ 30 $ 905 $ 49 Interest cost 1,174 125 957 105 Expected return on plan assets ( 1,634 ) — ( 1,458 ) — Amortization of unrecognized items 396 ( 242 ) 57 ( 176 ) Net benefit costs (gains) $ 538 $ ( 87 ) $ 461 $ ( 22 ) Six Months Ended June 30, 2023 2022 Pension Other Post- Pension Other Post- Service cost $ 1,200 $ 59 $ 1,818 $ 98 Interest cost 2,340 248 1,922 210 Expected return on plan assets ( 2,991 ) — ( 2,936 ) — Amortization of unrecognized items 524 ( 483 ) 119 ( 354 ) Net benefit costs (gains) $ 1,073 $ ( 176 ) $ 923 $ ( 46 ) The components of the net benefit costs other than service cost are recorded in "Other income" in the Interim Consolidated Statements of Operations. The amortization of unrecognized items relates to actuarial losses (gains) and prior service costs. Defined Contribution Plan Effective December 31, 2008, the defined benefit plans at the Celgar mill were closed to new members and the service accrual ceased. Effective January 1, 2009, the members began to receive pension benefits, at a fixed contractual rate, under a new defined contribution plan. During the three and six month periods ended June 30, 2023, the Company made contributions of $ 81 and $ 333 , respectively, to this plan (2022 – $ 395 and $ 661 ). Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. During the three and six month periods ended June 30, 2023, the Company made contributions of $ 391 and $ 914 , respectively, to this plan (2022 – $ 1,091 and $ 1,649 ). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes Differences between the U.S. Federal statutory and the Company's effective tax rates for the three and six month periods ended June 30, 2023 and 2022, were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 U.S. Federal statutory rate 21 % 21 % 21 % 21 % Income tax recovery (provision) using U.S. Federal statutory rate on income (loss) before income taxes $ 26,413 $ ( 22,155 ) $ 33,959 $ ( 45,915 ) Tax differential on foreign income (loss) 4,957 ( 10,271 ) 6,275 ( 20,050 ) Effect of foreign earnings (a) 525 ( 1,107 ) — ( 2,103 ) Valuation allowance (b) ( 9,556 ) ( 5,741 ) ( 14,119 ) 448 Foreign exchange on settlement of debt — ( 77 ) — 3,024 Tax benefit of partnership structure 783 783 1,566 1,566 Non-taxable foreign subsidies 1,350 663 2,044 1,361 True-up of prior year taxes ( 409 ) ( 68 ) 4,477 1,594 Annual effective tax rate adjustment 5,000 5,000 ( 4,000 ) 5,000 Other, net ( 1,584 ) ( 1,153 ) 2,633 ( 3,287 ) Income tax recovery (provision) $ 27,479 $ ( 34,126 ) $ 32,835 $ ( 58,362 ) Comprised of: Current income tax provision $ (6,626 ) $ ( 27,502 ) $ ( 11,214 ) $ ( 43,355 ) Deferred income tax recovery (provision) 34,105 ( 6,624 ) 44,049 ( 15,007 ) Income tax recovery (provision) $ 27,479 $ ( 34,126 ) $ 32,835 $ ( 58,362 ) (a) Primarily relates to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. (b) Primarily relates to taxable losses and denied interest expense. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Note 9. Shareholders' Equity Dividends During the six month period ended June 30, 2023, the Company's board of directors declared the following quarterly dividends: Date Declared Dividend Per Amount February 16, 2023 $ 0.075 $ 4,982 May 4, 2023 0.075 4,989 $ 0.150 $ 9,971 On August 3, 2023, the Company's board of directors declared a quarterly dividend of $ 0.075 per common share. Payment of the dividend will be made on October 4, 2023 to all shareholders of record on September 27, 2023 . Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Note 9. Shareholders' Equity (continued) Stock Based Compensation The Company has a stock incentive plan which provides for stock options, restricted stock units (“RSUs”), deferred stock units (“DSUs”), restricted shares, performance shares, performance share units (“PSUs”), and stock appreciation rights to be awarded to employees, consultants and non-employee directors. During the three and six month periods ended June 30, 2 0 23, there were no issued and outstanding stock options, performance shares or stock appreciation rights. As of June 30, 2023, after factoring in all allocated shares, there remain approximately 2.1 million common shares available for grant. In May 2023, the board of directors adopted the 2023 Non-Employee Director Compensation Plan (the “Director’s Plan”) which allows non-employee directors to elect on an annual basis to receive, in lieu of cash fees, either restricted stock or DSUs. The board of directors receive equity compensation of restricted stock unless they elect to receive DSUs. The non-employee directors may elect on an annual basis to receive DSUs which settle in cash (“Cash Only DSUs”). The DSUs are redeemable by the non-employee director at their option following their separation from the board of directors. The value of the Cash Only DSUs redeemed is the fair market value on the redemption date. The Cash Only DSUs are accounted for as a liability and the other equity awards are accounted for as equity. The following table summarizes PSU activity during the period: Number of PSUs Outstanding as of January 1, 2023 3,484,154 Granted 1,562,632 Vested and issued ( 253,508 ) Forfeited ( 1,013,972 ) Outstanding as of June 30, 2023 3,779,306 The following table summarizes restricted share, RSU and DSU activity during the period: Equity Based Awards Liability Based Awards Number of Restricted Shares Number of RSUs Number of DSUs Number of DSUs Outstanding as of January 1, 2023 34,699 50,000 11,554 — Granted 54,227 — 27,815 90,864 Vested ( 34,699 ) ( 50,000 ) ( 11,778 ) ( 31,187 ) Outstanding as of June 30, 2023 54,227 — 27,591 59,677 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 10. Net Income (Loss) Per Common Share The reconciliation of basic and diluted net income (loss) per common share for the three and six month periods ended June 30, 2023 and 2022 was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income (loss) Basic and diluted $ ( 98,306 ) $ 71,372 $ ( 128,884 ) $ 160,269 Net income (loss) per common share Basic $ ( 1.48 ) $ 1.08 $ ( 1.94 ) $ 2.43 Diluted $ ( 1.48 ) $ 1.07 $ ( 1.94 ) $ 2.41 Weighted average number of common shares outstanding: Basic (a) 66,425,479 66,098,975 66,342,807 66,067,051 Effect of dilutive instruments: PSUs — 457,599 — 407,656 Restricted shares — 21,149 — 26,906 RSUs — 11,209 — 5,605 Diluted 66,425,479 66,588,932 66,342,807 66,507,218 (a) For the three and six month periods ended June 30, 2023, the weighted average number of common shares outstanding excludes 54,227 restricted shares which have been granted, but have not vested as of June 30, 2023 (2022 – 34,699 restricted shares). The calculation of diluted net income (loss) per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per common share. Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the three and six month periods ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 PSUs 3,779,306 — 3,779,306 — Restricted shares 54,227 — 54,227 — DSUs 39,369 — 39,369 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11. Accumulated Other Comprehensive Loss The change in the accumulated other comprehensive loss by component (net of tax) for the three and six month periods ended June 30, 2023 and 2022 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Three months Ended June 30: Balance as of March 31, 2023 $ ( 176,435 ) $ 14,896 $ ( 161,539 ) Other comprehensive income before reclassifications 12,236 114 12,350 Amounts reclassified — 154 154 Other comprehensive income 12,236 268 12,504 Balance as of June 30, 2023 $ ( 164,199 ) $ 15,164 $ ( 149,035 ) Balance as of March 31, 2022 $ ( 108,039 ) $ 6,670 $ ( 101,369 ) Other comprehensive loss before reclassifications ( 84,020 ) — ( 84,020 ) Amounts reclassified — ( 119 ) ( 119 ) Other comprehensive loss ( 84,020 ) ( 119 ) ( 84,139 ) Balance as of June 30, 2022 $ ( 192,059 ) $ 6,551 $ ( 185,508 ) Six months Ended June 30: Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) Other comprehensive income before reclassifications 30,886 — 30,886 Amounts reclassified — 41 41 Other comprehensive income 30,886 41 30,927 Balance as of June 30, 2023 $ ( 164,199 ) $ 15,164 $ ( 149,035 ) Balance as of December 31, 2021 $ ( 97,517 ) $ 6,724 $ ( 90,793 ) Other comprehensive income (loss) before reclassifications ( 94,542 ) 62 ( 94,480 ) Amounts reclassified — ( 235 ) ( 235 ) Other comprehensive loss ( 94,542 ) ( 173 ) ( 94,715 ) Balance as of June 30, 2022 $ ( 192,059 ) $ 6,551 $ ( 185,508 ) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions The Company enters into related party transactions with its joint ventures. For the three and six month periods ended June 30, 2023, pulp purchases from the Company's 50 % owned Cariboo mill, which are transacted at the Cariboo mill's cost, were $ 22,598 and $ 49,395 , respectively, (2022 – $ 30,616 and $ 51,267 ) and as of June 30, 2023, the Company had a payable balance to the Cariboo mill of $ 5,599 (December 31, 2022 – payable of $ 4,409 ). For the three and six month periods ended June 30, 2023, services from the Company's 50 % owned logging and chipping operation, which are transacted at arm's length negotiated prices, were $ 4,423 and $ 8,439 , respectively, (2022 – $ 2,596 and $ 7,256 ) and as of June 30, 2023, the Company had a receivable balance from the operation of $ 2,851 (December 31, 2022 – receivable of $ 522 ). |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13. Segment Information The Company is managed based on the primary products it manufactures: pulp and solid wood. Accordingly, the Company's four pulp mills and its 50 % interest in the Cariboo pulp mill are aggregated into the pulp segment. The Friesau sawmill, the Torgau facility and the mass timber facilities are aggregated into the solid wood segment. Commencing in the third quarter of 2022, after our acquisition of the Torgau facility, the Company reorganized its operating and management structure which included having the chief operating decision maker review the mass timber results with the results of the Friesau sawmill and Torgau facility. This classification of the mass timber results within the solid wood segment has been reflected retrospectively. Previously they were included in our corporate and other segment. The Company's sandalwood business is included in corporate and other as it does not meet the criteria to be reported as a separate reportable segment. None of the income or loss items following operating income (loss) in the Company's Interim Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management. Information about certain segment data for the three and six month periods ended June 30, 2023 and 2022, was as follows: Three Months Ended June 30, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 402,694 $ 126,050 $ 1,119 $ 529,863 Operating loss $ ( 83,459 ) $ ( 22,493 ) $ ( 2,880 ) $ ( 108,832 ) Depreciation and amortization $ 27,783 $ 12,126 $ 243 $ 40,152 Revenues by major products Pulp $ 374,175 $ — $ — $ 374,175 Lumber — 59,264 — 59,264 Energy and chemicals 28,519 5,360 1,119 34,998 Manufactured products (a) — 15,989 — 15,989 Pallets — 32,675 — 32,675 Biofuels (b) — 10,242 — 10,242 Wood residuals — 2,520 — 2,520 Total revenues $ 402,694 $ 126,050 $ 1,119 $ 529,863 Revenues by geographical markets (c) U.S. $ 29,087 $ 48,164 $ 292 $ 77,543 Foreign countries Germany 80,696 58,676 12 139,384 China 164,070 790 — 164,860 Other countries 128,841 18,420 815 148,076 373,607 77,886 827 452,320 Total revenues $ 402,694 $ 126,050 $ 1,119 $ 529,863 (a) Manufactured products primarily includes cross-laminated timber and finger joint lumber. (b) Biofuels includes pellets and briquettes. (c) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Three Months Ended June 30, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 460,304 $ 110,985 $ 1,037 $ 572,326 Operating income (loss) $ 75,471 $ 43,726 $ ( 5,166 ) $ 114,031 Depreciation and amortization $ 27,001 $ 3,792 $ 235 $ 31,028 Revenues by major products Pulp $ 418,579 $ — $ — $ 418,579 Lumber — 96,268 — 96,268 Energy and chemicals 41,725 5,055 1,037 47,817 Manufactured products (a) — 6,295 — 6,295 Wood residuals — 3,367 — 3,367 Total revenues $ 460,304 $ 110,985 $ 1,037 $ 572,326 Revenues by geographical markets (b) U.S. $ 58,953 $ 62,603 $ 218 $ 121,774 Foreign countries Germany 146,608 24,711 — 171,319 China 94,357 170 — 94,527 Other countries 160,386 23,501 819 184,706 401,351 48,382 819 450,552 Total revenues $ 460,304 $ 110,985 $ 1,037 $ 572,326 (a) Manufactured products primarily includes finger joint lumber. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Six Months Ended June 30, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 Operating loss $ ( 70,688 ) $ ( 49,562 ) $ ( 8,703 ) $ ( 128,953 ) Depreciation and amortization $ 55,182 $ 32,024 $ 537 $ 87,743 Total assets (a) $ 1,726,689 $ 679,497 $ 227,183 $ 2,633,369 Revenues by major products Pulp $ 743,831 $ — $ — $ 743,831 Lumber — 119,303 — 119,303 Energy and chemicals 59,264 11,055 2,370 72,689 Manufactured products (b) — 21,793 — 21,793 Pallets — 68,850 — 68,850 Biofuels (c) — 18,377 — 18,377 Wood residuals — 7,686 — 7,686 Total revenues $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 Revenues by geographical markets (d) U.S. $ 72,642 $ 83,220 $ 574 $ 156,436 Foreign countries Germany 183,689 124,284 230 308,203 China 271,192 2,004 — 273,196 Other countries 275,572 37,556 1,566 314,694 730,453 163,844 1,796 896,093 Total revenues $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 (a) Total assets for the pulp segment includes the Company's $ 49,223 investment in joint ventures, primarily for the Cariboo mill. Total assets for the solid wood segment includes $ 34,792 of goodwill from the acquisition of Torgau. (b) Manufactured products primarily includes cross-laminated timber and finger joint lumber. (c) Biofuels includes pellets and briquettes. (d) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Six Months Ended June 30, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 Operating income (loss) $ 161,707 $ 82,027 $ ( 7,352 ) $ 236,382 Depreciation and amortization $ 54,685 $ 7,986 $ 473 $ 63,144 Revenues by major products Pulp $ 865,490 $ — $ — $ 865,490 Lumber — 188,634 — 188,634 Energy and chemicals 80,745 10,232 3,050 94,027 Manufactured products (a) — 10,059 — 10,059 Wood residuals — 6,857 — 6,857 Total revenues $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 Revenues by geographical markets (b) U.S. $ 107,115 $ 120,467 $ 446 $ 228,028 Foreign countries Germany 286,662 46,419 — 333,081 China 240,355 352 — 240,707 Other countries 312,103 48,544 2,604 363,251 839,120 95,315 2,604 937,039 Total revenues $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 (a) Manufactured products primarily includes finger joint lumber. (b) Sales are attributed to countries based on the ship-to location provided by the customer. As of December 31, 2022, the Company had total assets of $ 1,768,628 in the pulp segment, $ 613,171 in the solid wood segment and $ 343,238 in corporate and other. Total assets for the pulp segment includes the Company's $ 45,635 investment in joint ventures, primarily for the Cariboo mill. Total assets for the solid wood segment includes $ 30,937 of goodwill from the acquisition of Torgau. Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the solid wood segment to the pulp segment for use in pulp production and from the sale of residual fuel from the pulp segment to the solid wood segment for use in energy production. For the three and six month periods ended June 30, 2023, the pulp segment sold $ 170 and $ 544 , respectively, of residual fuel to the solid wood segment (2022 – $ nil ) and the solid wood segment sold $ 10,986 and $ 22,141, respectively, of residual fiber to the pulp segment (2022 – $ 6,530 and $ 13,381 ). |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Note 14. Financial Instruments and Fair Value Measurement Due to their short-term maturity, the carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and other approximates their fair value. The estimated fair values of the Company's outstanding debt under the fair value hierarchy as of June 30, 2023 and December 31, 2022 were as follows: Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 198,884 $ — $ 198,884 Senior Notes — 961,785 — 961,785 $ — $ 1,160,669 $ — $ 1,160,669 Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 141,075 $ — $ 141,075 Senior Notes — 1,015,633 — 1,015,633 $ — $ 1,156,708 $ — $ 1,156,708 The carrying value of the revolving credit facilities classified as Level 2 approximates the fair value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities. The fair value of the Senior Notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company's Senior Notes are not carried at fair value in the Interim Consolidated Balance Sheets as of June 30, 2023 or December 31, 2022. However, fair value disclosure is required. The carrying value of the Company's Senior Notes, net of unamortized note issuance costs, was $ 1,162,960 as of June 30, 2023 (December 31, 2022 – $ 1,161,672 ). Credit Risk The Company’s credit risk is primarily attributable to cash held in bank accounts and accounts receivable. The Company maintains cash balances in foreign financial institutions in excess of insured limits. The Company limits its credit exposure on cash held in bank accounts by periodically investing cash in excess of short-term operating requirements and debt obligations in low risk government bonds, or similar debt instruments. The Company’s credit risk associated with its sales is managed through setting credit limits, the purchase of credit insurance and for certain customers a letter of credit is received prior to shipping the product. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. Concentrations of credit risk are with customers and agents based primarily in Germany, China and the U.S. The Company’s exposure to credit losses may increase if its customers' production and other costs are adversely affected by inflation. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables if the cash flows of the Company’s customers are adversely impacted by inflation. As of June 30, 2023, the Company has not had significant credit losses. As of June 30, 2023, the carrying amount of cash and cash equivalents of $ 213,338 and accounts receivable of $ 335,402 recorded in the Interim Consolidated Balance Sheet, net of any allowances for losses, represent the Company’s maximum exposure to credit risk. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies (a) The Company is involved in legal actions and claims arising in the ordinary course of business. While the outcome of any legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claims which are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company. (b) The Company is subject to regulations that require the handling and disposal of asbestos in a prescribed manner if a property undergoes a major renovation or demolition. Otherwise, the Company is not required to remove asbestos from its facilities. Generally asbestos is found on steam and condensate piping systems as well as certain cladding on buildings and in building insulation throughout older facilities. The Company’s obligation for the proper removal and disposal of asbestos products from the Company’s mills is a conditional asset retirement obligation. As a result of the longevity of the Company’s mills, due in part to the maintenance procedures and the fact that the Company does not have plans for major changes that require the removal of asbestos, the timing of the asbestos removal is indeterminate. As a result, the Company is currently unable to reasonably estimate the fair value of its asbestos removal and disposal obligation. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. On June 15, 2023, the European Commission announced that it has closed its two-year cartel investigation into the wood pulp sector in Europe after it concluded that there was insufficient ground to further pursue the investigation. The investigation was started in 2021 to investigate if there was an infringement of European Union competition law. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation The Interim Consolidated Financial Statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). Mercer Inc. owns 100 % of its subsidiaries with the exception of the 50 % joint venture interest in the Cariboo mill with West Fraser Mills Ltd., which is accounted for using the equity method. The Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Select Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The consolidated balance sheet information as of December 31, 2022 was derived from the Company’s audited Consolidated Financial Statements, but does not contain all of the footnote disclosures from the annual Consolidated Financial Statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2022. In the opinion of the Company, the unaudited Interim Consolidated Financial Statements contained herein have been prepared on a consistent basis with the audited Consolidated Financial Statements and accompanying notes included in the Company's latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2022 and contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol "€" refers to euros and the symbol "C$" refers to Canadian dollars. |
Use of Estimates | Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed | The Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed on the acquisition date was finalized during the six month period ended June 30, 2023. The following table summarizes the purchase price allocation: Purchase Price Cash $ 6,592 Accounts receivable 13,202 Inventories 50,900 Other current assets 2,548 Property, plant and equipment 205,450 Amortizable intangible assets (a) 25,141 Goodwill (b) 31,213 Other long-term assets 3,934 Total assets acquired 338,980 Accounts payable and other current liabilities ( 43,905 ) Deferred income tax ( 29,390 ) Other long-term liabilities ( 2,489 ) Total liabilities assumed ( 75,784 ) Net assets acquired $ 263,196 (a) Amortizable intangible assets include an order backlog, which has an estimated fair value of $ 15,243 and was amortized on a straight-line basis over six months and an energy sales agreement, which has an estimated fair value of $ 9,898 and is being amortized on a straight-line basis over 12 years. (b) The goodwill is primarily for expected synergies from combining the operations of Torgau with the Company’s existing German operations. The goodwill is no t deductible for tax purposes. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories as of June 30, 2023 and December 31, 2022, were comprised of the following: June 30, December 31, 2023 2022 Raw materials $ 136,897 $ 160,442 Finished goods 149,117 158,082 Spare parts and other 143,859 131,946 $ 429,873 $ 450,470 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of June 30, 2023 and December 31, 2022, were comprised of the following: June 30, December 31, 2023 2022 Trade payables $ 88,107 $ 92,848 Accrued expenses 99,261 96,979 Interest payable 26,856 26,756 Income tax payable 82,737 99,827 Payroll-related accruals 31,895 34,353 Deposits for mass timber sales contracts 8,797 — Wastewater fee (a) 7,710 8,614 Finance lease liability 7,432 7,368 Operating lease liability 5,776 5,255 Other 11,280 5,306 $ 369,851 $ 377,306 (a) The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of June 30, 2023 and December 31, 2022, was comprised of the following: June 30, December 31, Maturity 2023 2022 Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 300 million German joint revolving credit facility (b) 2027 127,132 109,326 C$ 160 million Canadian joint revolving credit facility (c) 2027 71,752 31,749 € 2.6 million demand loan (d) — — Finance lease liability 49,445 51,129 1,423,329 1,367,204 Less: unamortized senior note issuance costs ( 12,040 ) ( 13,328 ) Less: finance lease liability due within one year ( 7,432 ) ( 7,368 ) $ 1,403,857 $ 1,346,508 (a) The senior notes which mature on February 1, 2029 (the "2029 Senior Notes") and the senior notes which mature on January 15, 2026 (the “2026 Senior Notes” and collectively with the 2029 Senior Notes, the “Senior Notes”) are general unsecured senior obligations of the Company. The Company may redeem all or a part of the Senior Notes upon not less than 10 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2026 Senior Notes redemption price is 100.000 % of the principal amount. The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the 2029 Senior Notes: 2029 Senior Notes 12 Month Period Beginning Percentage February 1, 2024 102.563 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % Note 6. Debt (continued) (b) A € 300.0 million joint revolving credit facility for the German mills that matures in September 2027. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.30 % to 2.25 % dependent on conditions including but not limited to a prescribed leverage ratio. The facility is sustainability linked whereby the interest rate margin is subject to upward or downward adjustments of up to 0.05 % per annum if the Company achieves, or fails to achieve, certain specified sustainability targets. As of June 30, 2023, approximately € 117.0 million ($ 127,132 ) of this facility was drawn and accruing interest at a rate of 4.556 %, a pproximately € 13.5 million ($ 14,682 ) was supporting bank guarantees and approximately € 169.5 million ($ 184,166 ) was available. (c) A C$ 160.0 million joint revolving credit facility for the Celgar mill, Peace River mill and certain other Canadian subsidiaries that matures in January 2027. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.20 % to 1.45 % per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50 %, an Adjusted Term SOFR for a one month tenor plus 1.00 % and the bank’s applicable reference rate for U.S. dollar loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of June 30, 2023, approximately C$ 95.0 million ($ 71,752 ) of this facility was drawn and accruing interest at a rate of 6.548 % , approximately C$ 1.3 million ($ 953 ) was supporting letters of credit and approximately C$ 63.7 million ($ 48,140 ) was available. (d) A € 2.6 million demand loan for Rosenthal that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of June 30, 2023, approximately € 2.6 million ($ 2,773 ) of this facility was supporting bank guarantees and approximately $ nil was available. |
Debt Redemption Period for Outstanding Senior Notes | The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the 2029 Senior Notes: 2029 Senior Notes 12 Month Period Beginning Percentage February 1, 2024 102.563 % February 1, 2025 101.281 % February 1, 2026 and thereafter 100.000 % |
Principal Maturities of Debt | The maturities of the principal portion of the senior notes and credit arrangements as of June 30, 2023 were as follows: Senior Notes and Credit Arrangements 2023 $ — 2024 — 2025 — 2026 300,000 2027 198,884 Thereafter 875,000 $ 1,373,884 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Obligations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net benefit costs for the Celgar and Peace River defined benefit plans, in aggregate for the three and six month periods ended June 30, 2023 and 2022 were as follows: Three Months Ended June 30, 2023 2022 Pension Other Post- Pension Other Post- Service cost $ 602 $ 30 $ 905 $ 49 Interest cost 1,174 125 957 105 Expected return on plan assets ( 1,634 ) — ( 1,458 ) — Amortization of unrecognized items 396 ( 242 ) 57 ( 176 ) Net benefit costs (gains) $ 538 $ ( 87 ) $ 461 $ ( 22 ) Six Months Ended June 30, 2023 2022 Pension Other Post- Pension Other Post- Service cost $ 1,200 $ 59 $ 1,818 $ 98 Interest cost 2,340 248 1,922 210 Expected return on plan assets ( 2,991 ) — ( 2,936 ) — Amortization of unrecognized items 524 ( 483 ) 119 ( 354 ) Net benefit costs (gains) $ 1,073 $ ( 176 ) $ 923 $ ( 46 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal statutory and the Company's effective tax rates for the three and six month periods ended June 30, 2023 and 2022, were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 U.S. Federal statutory rate 21 % 21 % 21 % 21 % Income tax recovery (provision) using U.S. Federal statutory rate on income (loss) before income taxes $ 26,413 $ ( 22,155 ) $ 33,959 $ ( 45,915 ) Tax differential on foreign income (loss) 4,957 ( 10,271 ) 6,275 ( 20,050 ) Effect of foreign earnings (a) 525 ( 1,107 ) — ( 2,103 ) Valuation allowance (b) ( 9,556 ) ( 5,741 ) ( 14,119 ) 448 Foreign exchange on settlement of debt — ( 77 ) — 3,024 Tax benefit of partnership structure 783 783 1,566 1,566 Non-taxable foreign subsidies 1,350 663 2,044 1,361 True-up of prior year taxes ( 409 ) ( 68 ) 4,477 1,594 Annual effective tax rate adjustment 5,000 5,000 ( 4,000 ) 5,000 Other, net ( 1,584 ) ( 1,153 ) 2,633 ( 3,287 ) Income tax recovery (provision) $ 27,479 $ ( 34,126 ) $ 32,835 $ ( 58,362 ) Comprised of: Current income tax provision $ (6,626 ) $ ( 27,502 ) $ ( 11,214 ) $ ( 43,355 ) Deferred income tax recovery (provision) 34,105 ( 6,624 ) 44,049 ( 15,007 ) Income tax recovery (provision) $ 27,479 $ ( 34,126 ) $ 32,835 $ ( 58,362 ) (a) Primarily relates to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. (b) Primarily relates to taxable losses and denied interest expense. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders Equity [Line Items] | |
Summary of Dividends Declared | During the six month period ended June 30, 2023, the Company's board of directors declared the following quarterly dividends: Date Declared Dividend Per Amount February 16, 2023 $ 0.075 $ 4,982 May 4, 2023 0.075 4,989 $ 0.150 $ 9,971 |
Performance Share Units | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | The following table summarizes PSU activity during the period: Number of PSUs Outstanding as of January 1, 2023 3,484,154 Granted 1,562,632 Vested and issued ( 253,508 ) Forfeited ( 1,013,972 ) Outstanding as of June 30, 2023 3,779,306 |
Restricted Stock Restricted Stock Units and Deferred Stock Units [Member] | |
Stockholders Equity [Line Items] | |
Summary of Share Activity | The following table summarizes restricted share, RSU and DSU activity during the period: Equity Based Awards Liability Based Awards Number of Restricted Shares Number of RSUs Number of DSUs Number of DSUs Outstanding as of January 1, 2023 34,699 50,000 11,554 — Granted 54,227 — 27,815 90,864 Vested ( 34,699 ) ( 50,000 ) ( 11,778 ) ( 31,187 ) Outstanding as of June 30, 2023 54,227 — 27,591 59,677 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share | The reconciliation of basic and diluted net income (loss) per common share for the three and six month periods ended June 30, 2023 and 2022 was as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income (loss) Basic and diluted $ ( 98,306 ) $ 71,372 $ ( 128,884 ) $ 160,269 Net income (loss) per common share Basic $ ( 1.48 ) $ 1.08 $ ( 1.94 ) $ 2.43 Diluted $ ( 1.48 ) $ 1.07 $ ( 1.94 ) $ 2.41 Weighted average number of common shares outstanding: Basic (a) 66,425,479 66,098,975 66,342,807 66,067,051 Effect of dilutive instruments: PSUs — 457,599 — 407,656 Restricted shares — 21,149 — 26,906 RSUs — 11,209 — 5,605 Diluted 66,425,479 66,588,932 66,342,807 66,507,218 (a) For the three and six month periods ended June 30, 2023, the weighted average number of common shares outstanding excludes 54,227 restricted shares which have been granted, but have not vested as of June 30, 2023 (2022 – 34,699 restricted shares). |
Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share | Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the three and six month periods ended June 30, 2023 and 2022 were as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 PSUs 3,779,306 — 3,779,306 — Restricted shares 54,227 — 54,227 — DSUs 39,369 — 39,369 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Change in Accumulated Other Comprehensive Loss by Components | The change in the accumulated other comprehensive loss by component (net of tax) for the three and six month periods ended June 30, 2023 and 2022 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Three months Ended June 30: Balance as of March 31, 2023 $ ( 176,435 ) $ 14,896 $ ( 161,539 ) Other comprehensive income before reclassifications 12,236 114 12,350 Amounts reclassified — 154 154 Other comprehensive income 12,236 268 12,504 Balance as of June 30, 2023 $ ( 164,199 ) $ 15,164 $ ( 149,035 ) Balance as of March 31, 2022 $ ( 108,039 ) $ 6,670 $ ( 101,369 ) Other comprehensive loss before reclassifications ( 84,020 ) — ( 84,020 ) Amounts reclassified — ( 119 ) ( 119 ) Other comprehensive loss ( 84,020 ) ( 119 ) ( 84,139 ) Balance as of June 30, 2022 $ ( 192,059 ) $ 6,551 $ ( 185,508 ) Six months Ended June 30: Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) Other comprehensive income before reclassifications 30,886 — 30,886 Amounts reclassified — 41 41 Other comprehensive income 30,886 41 30,927 Balance as of June 30, 2023 $ ( 164,199 ) $ 15,164 $ ( 149,035 ) Balance as of December 31, 2021 $ ( 97,517 ) $ 6,724 $ ( 90,793 ) Other comprehensive income (loss) before reclassifications ( 94,542 ) 62 ( 94,480 ) Amounts reclassified — ( 235 ) ( 235 ) Other comprehensive loss ( 94,542 ) ( 173 ) ( 94,715 ) Balance as of June 30, 2022 $ ( 192,059 ) $ 6,551 $ ( 185,508 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the three and six month periods ended June 30, 2023 and 2022, was as follows: Three Months Ended June 30, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 402,694 $ 126,050 $ 1,119 $ 529,863 Operating loss $ ( 83,459 ) $ ( 22,493 ) $ ( 2,880 ) $ ( 108,832 ) Depreciation and amortization $ 27,783 $ 12,126 $ 243 $ 40,152 Revenues by major products Pulp $ 374,175 $ — $ — $ 374,175 Lumber — 59,264 — 59,264 Energy and chemicals 28,519 5,360 1,119 34,998 Manufactured products (a) — 15,989 — 15,989 Pallets — 32,675 — 32,675 Biofuels (b) — 10,242 — 10,242 Wood residuals — 2,520 — 2,520 Total revenues $ 402,694 $ 126,050 $ 1,119 $ 529,863 Revenues by geographical markets (c) U.S. $ 29,087 $ 48,164 $ 292 $ 77,543 Foreign countries Germany 80,696 58,676 12 139,384 China 164,070 790 — 164,860 Other countries 128,841 18,420 815 148,076 373,607 77,886 827 452,320 Total revenues $ 402,694 $ 126,050 $ 1,119 $ 529,863 (a) Manufactured products primarily includes cross-laminated timber and finger joint lumber. (b) Biofuels includes pellets and briquettes. (c) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Three Months Ended June 30, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 460,304 $ 110,985 $ 1,037 $ 572,326 Operating income (loss) $ 75,471 $ 43,726 $ ( 5,166 ) $ 114,031 Depreciation and amortization $ 27,001 $ 3,792 $ 235 $ 31,028 Revenues by major products Pulp $ 418,579 $ — $ — $ 418,579 Lumber — 96,268 — 96,268 Energy and chemicals 41,725 5,055 1,037 47,817 Manufactured products (a) — 6,295 — 6,295 Wood residuals — 3,367 — 3,367 Total revenues $ 460,304 $ 110,985 $ 1,037 $ 572,326 Revenues by geographical markets (b) U.S. $ 58,953 $ 62,603 $ 218 $ 121,774 Foreign countries Germany 146,608 24,711 — 171,319 China 94,357 170 — 94,527 Other countries 160,386 23,501 819 184,706 401,351 48,382 819 450,552 Total revenues $ 460,304 $ 110,985 $ 1,037 $ 572,326 (a) Manufactured products primarily includes finger joint lumber. (b) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Six Months Ended June 30, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 Operating loss $ ( 70,688 ) $ ( 49,562 ) $ ( 8,703 ) $ ( 128,953 ) Depreciation and amortization $ 55,182 $ 32,024 $ 537 $ 87,743 Total assets (a) $ 1,726,689 $ 679,497 $ 227,183 $ 2,633,369 Revenues by major products Pulp $ 743,831 $ — $ — $ 743,831 Lumber — 119,303 — 119,303 Energy and chemicals 59,264 11,055 2,370 72,689 Manufactured products (b) — 21,793 — 21,793 Pallets — 68,850 — 68,850 Biofuels (c) — 18,377 — 18,377 Wood residuals — 7,686 — 7,686 Total revenues $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 Revenues by geographical markets (d) U.S. $ 72,642 $ 83,220 $ 574 $ 156,436 Foreign countries Germany 183,689 124,284 230 308,203 China 271,192 2,004 — 273,196 Other countries 275,572 37,556 1,566 314,694 730,453 163,844 1,796 896,093 Total revenues $ 803,095 $ 247,064 $ 2,370 $ 1,052,529 (a) Total assets for the pulp segment includes the Company's $ 49,223 investment in joint ventures, primarily for the Cariboo mill. Total assets for the solid wood segment includes $ 34,792 of goodwill from the acquisition of Torgau. (b) Manufactured products primarily includes cross-laminated timber and finger joint lumber. (c) Biofuels includes pellets and briquettes. (d) Sales are attributed to countries based on the ship-to location provided by the customer. Note 13. Segment Information (continued) Six Months Ended June 30, 2022 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 Operating income (loss) $ 161,707 $ 82,027 $ ( 7,352 ) $ 236,382 Depreciation and amortization $ 54,685 $ 7,986 $ 473 $ 63,144 Revenues by major products Pulp $ 865,490 $ — $ — $ 865,490 Lumber — 188,634 — 188,634 Energy and chemicals 80,745 10,232 3,050 94,027 Manufactured products (a) — 10,059 — 10,059 Wood residuals — 6,857 — 6,857 Total revenues $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 Revenues by geographical markets (b) U.S. $ 107,115 $ 120,467 $ 446 $ 228,028 Foreign countries Germany 286,662 46,419 — 333,081 China 240,355 352 — 240,707 Other countries 312,103 48,544 2,604 363,251 839,120 95,315 2,604 937,039 Total revenues $ 946,235 $ 215,782 $ 3,050 $ 1,165,067 (a) Manufactured products primarily includes finger joint lumber. (b) Sales are attributed to countries based on the ship-to location provided by the customer. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of the Outstanding Debt | The estimated fair values of the Company's outstanding debt under the fair value hierarchy as of June 30, 2023 and December 31, 2022 were as follows: Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 198,884 $ — $ 198,884 Senior Notes — 961,785 — 961,785 $ — $ 1,160,669 $ — $ 1,160,669 Fair value measurements as of Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 141,075 $ — $ 141,075 Senior Notes — 1,015,633 — 1,015,633 $ — $ 1,156,708 $ — $ 1,156,708 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Additional Information (Details) | Jun. 30, 2023 |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage in subsidiaries | 100% |
MPR - Cariboo Mill | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage | 50% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 15, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||
Payments to acquire asset for cash | $ 82,100 | $ 0 | $ 82,100 | $ 0 | |||
Torgau Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition date | Sep. 30, 2022 | Sep. 30, 2022 | |||||
Payments to acquire business for cash | $ 263,196 | € 270 | |||||
Business acquisition ownership interest | 100% | 100% | |||||
Structurlam Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Asset acquisition date | Jun. 15, 2023 | ||||||
Payments to acquire asset for cash | $ 82,100 | ||||||
Break fee and expense reimbursement | 2,400 | ||||||
Acquisition costs | $ 1,000 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Purchase Price Allocation | ||
Goodwill | $ 34,792 | $ 30,937 |
Torgau Acquisition | ||
Purchase Price Allocation | ||
Cash | 6,592 | |
Accounts receivable | 13,202 | |
Inventories | 50,900 | |
Other current assets | 2,548 | |
Property, plant and equipment | 205,450 | |
Amortizable intangible assets | 25,141 | |
Goodwill | 31,213 | |
Other long-term assets | 3,934 | |
Total assets acquired | 338,980 | |
Accounts payable and other current liabilities | (43,905) | |
Deferred income tax | (29,390) | |
Other long-term liabilities | (2,489) | |
Total liabilities assumed | (75,784) | |
Net assets acquired | $ 263,196 |
Acquisitions - Summary of Pre_2
Acquisitions - Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) - Torgau Acquisition | Jun. 30, 2023 USD ($) |
Business Acquisition [Line Items] | |
Goodwill not deductible for tax purposes | $ 0 |
Order Backlog | |
Business Acquisition [Line Items] | |
Year of acquisition realized | 6 months |
Fair value of intangible assets | $ 15,243,000 |
Energy Sales Agreement | |
Business Acquisition [Line Items] | |
Year of acquisition realized | 12 years |
Fair value of intangible assets | $ 9,898,000 |
Business Interruption Insuran_2
Business Interruption Insurance - Additional Information (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2022 USD ($) | |
Unusual Or Infrequent Item [Line Items] | ||||||
Property insurance proceeds | $ 2,710 | $ 0 | $ 2,710 | $ 6,410 | ||
Cost of Sales, Excluding Depreciation and Amortization | ||||||
Unusual Or Infrequent Item [Line Items] | ||||||
Proceeds from business interruption and property insurance | 21,973 | € 20.2 | 29,484 | € 27.2 | ||
Cost of Sales, Excluding Depreciation and Amortization | Rosenthal Mill Turbine | ||||||
Unusual Or Infrequent Item [Line Items] | ||||||
Business interruption insurance claim settlement amount | 16,553 | 15.2 | 16,553 | 15.2 | ||
Cost of Sales, Excluding Depreciation and Amortization | Stendal Fire | ||||||
Unusual Or Infrequent Item [Line Items] | ||||||
Business interruption insurance claim settlement amount | 2,710 | 2.5 | 10,221 | 9.5 | ||
Property insurance proceeds | $ 2,710 | € 2.5 | $ 2,710 | € 2.5 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 136,897 | $ 160,442 |
Finished goods | 149,117 | 158,082 |
Spare parts and other | 143,859 | 131,946 |
Inventories | $ 429,873 | $ 450,470 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Inventory [Line Items] | |||||
Inventory impairment | $ 51,400,000 | $ 0 | $ 66,600,000 | $ 0 | $ 0 |
Raw materials inventory | |||||
Inventory [Line Items] | |||||
Inventory impairment | 37,200,000 | ||||
Finished goods inventory | |||||
Inventory [Line Items] | |||||
Inventory impairment | $ 14,200,000 |
Accounts Payable and Other - Sc
Accounts Payable and Other - Schedule of Accounts Payable and Other (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 88,107 | $ 92,848 |
Accrued expenses | 99,261 | 96,979 |
Interest payable | 26,856 | 26,756 |
Income tax payable | 82,737 | 99,827 |
Payroll-related accruals | 31,895 | 34,353 |
Deposits for mass timber sales contracts | 8,797 | 0 |
Wastewater fee | 7,710 | 8,614 |
Finance lease liability | 7,432 | 7,368 |
Operating lease liability | 5,776 | 5,255 |
Other | 11,280 | 5,306 |
Accounts payable and other | $ 369,851 | $ 377,306 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | $ 1,423,329 | $ 1,367,204 |
Less: unamortized senior note issuance costs | (12,040) | (13,328) |
Less: finance lease liability due within one year | (7,432) | (7,368) |
Long-term debt, net | $ 1,403,857 | 1,346,508 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2026 | |
Long-term debt and finance lease obligations, gross | $ 300,000 | 300,000 |
2029 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2029 | |
Long-term debt and finance lease obligations, gross | $ 875,000 | 875,000 |
German Joint RCF - EUR 300 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 127,132 | 109,326 |
Canadian Joint RCF - C$160 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 71,752 | 31,749 |
Rosenthal Credit Facility - EUR 2.6 Million | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | 0 | 0 |
Finance Lease Liability | ||
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | $ 49,445 | $ 51,129 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Jun. 30, 2023 CAD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 1,403,857,000 | $ 1,346,508,000 | ||
Long-term Debt | $ 1,373,884,000 | |||
Senior Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, redemption notice days | 10 days | |||
Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, redemption notice days | 60 days | |||
2026 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt, interest rate | 5.50% | 5.50% | 5.50% | |
Debt, maturity date | Jan. 15, 2026 | |||
Debt Instrument, Redemption Price, Percentage | 100% | |||
2029 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt, interest rate | 5.125% | 5.125% | 5.125% | |
Canadian Joint RCF - C$160 Million | ||||
Debt Instrument [Line Items] | ||||
Debt, interest rate | 6.548% | 6.548% | 6.548% | |
Line of credit, maximum borrowing capacity | $ 160,000,000 | |||
Long-term Debt | $ 71,752,000 | 95,000,000 | ||
Line of credit facility, remaining borrowing capacity | 48,140,000 | 63,700,000 | ||
Line of credit, letters of credit outstanding, amount | $ 953,000 | $ 1,300,000 | ||
Canadian Joint RCF - C$160 Million | Canadian Dollar Borrowings Rate Option 2 | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | designated prime rate | |||
Canadian Joint RCF - C$160 Million | Canadian Dollar Borrowings Rate Option 1 | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | banker’s acceptance | |||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1a | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | federal funds rate | |||
Debt, variable basis spread | 0.50% | |||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1b | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | Adjusted Term SOFR for a one month tenor | |||
Debt, variable basis spread | 1% | |||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 1c | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | bank’s applicable reference rate for U.S. dollar loans | |||
Canadian Joint RCF - C$160 Million | US Dollar Borrowings Rate Option 2 | ||||
Debt Instrument [Line Items] | ||||
Debt, description of variable basis spread | Adjusted Term SOFR | |||
Canadian Joint RCF - C$160 Million | Minimum | Canadian Dollar Borrowings Rate Option 1 | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 1.20% | |||
Canadian Joint RCF - C$160 Million | Minimum | US Dollar Borrowings Rate Option 2 | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 1.20% | |||
Canadian Joint RCF - C$160 Million | Maximum | Canadian Dollar Borrowings Rate Option 1 | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 1.45% | |||
Canadian Joint RCF - C$160 Million | Maximum | US Dollar Borrowings Rate Option 2 | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 1.45% | |||
German Joint RCF - EUR 300 Million | ||||
Debt Instrument [Line Items] | ||||
Debt, interest rate | 4.556% | 4.556% | 4.556% | |
Line of credit, maximum borrowing capacity | € | € 300,000,000 | |||
Debt, description of variable basis spread | Euribor | |||
Long-term Debt | $ 127,132,000 | 117,000,000 | ||
Debt, amount of debt supporting bank guarantees | 14,682,000 | 13,500,000 | ||
Line of credit facility, remaining borrowing capacity | $ 184,166,000 | 169,500,000 | ||
German Joint RCF - EUR 300 Million | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 1.30% | |||
German Joint RCF - EUR 300 Million | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt, variable basis spread | 2.25% | |||
Interest rate margin subject to upward or downward adjustments | 0.05% | |||
Rosenthal Credit Facility - EUR 2.6 Million | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | € | 2,600,000 | |||
Debt, description of variable basis spread | three-month Euribor | |||
Debt, variable basis spread | 2.50% | |||
Debt, amount of debt supporting bank guarantees | $ 2,773,000 | € 2,600,000 | ||
Line of credit facility, remaining borrowing capacity | $ 0 |
Debt - Principal Maturities of
Debt - Principal Maturities of Senior Notes and Credit Arrangements (Details) | Jun. 30, 2023 USD ($) |
Senior Notes and Credit Arrangements | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 300,000,000 |
2027 | 198,884,000 |
Thereafter | 875,000,000 |
Total payments | $ 1,373,884,000 |
Debt - Debt Redemption Period f
Debt - Debt Redemption Period for Senior Notes (Details) | 6 Months Ended |
Jun. 30, 2023 | |
2026 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
2029 Senior Notes | February 1, 2024 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.563% |
2029 Senior Notes | February 1, 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.281% |
2029 Senior Notes | February 1, 2026 and thereafter | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Obligations - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 602 | $ 905 | $ 1,200 | $ 1,818 |
Interest cost | $ 1,174 | $ 957 | $ 2,340 | $ 1,922 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ (1,634) | $ (1,458) | $ (2,991) | $ (2,936) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of unrecognized items | $ 396 | $ 57 | $ 524 | $ 119 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net benefit costs (gains) | $ 538 | $ 461 | $ 1,073 | $ 923 |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 30 | 49 | 59 | 98 |
Interest cost | $ 125 | $ 105 | $ 248 | $ 210 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Expected return on plan assets | $ 0 | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of unrecognized items | $ (242) | $ (176) | $ (483) | $ (354) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net benefit costs (gains) | $ (87) | $ (22) | $ (176) | $ (46) |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan, employer discretionary contribution amount | $ 81 | $ 395 | $ 333 | $ 661 |
Multiemployer plan, contributions by employer | $ 391 | $ 1,091 | $ 914 | $ 1,649 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
U.S. Federal statutory rate | 21% | 21% | 21% | 21% |
Income tax recovery (provision) using U.S. Federal statutory rate on income (loss) before income taxes | $ 26,413 | $ (22,155) | $ 33,959 | $ (45,915) |
Tax differential on foreign income (loss) | 4,957 | (10,271) | 6,275 | (20,050) |
Effect of foreign earnings | 525 | (1,107) | 0 | (2,103) |
Valuation allowance | (9,556) | (5,741) | (14,119) | 448 |
Foreign exchange on settlement of debt | 0 | (77) | 0 | 3,024 |
Tax benefit of partnership structure | 783 | 783 | 1,566 | 1,566 |
Non-taxable foreign subsidies | 1,350 | 663 | 2,044 | 1,361 |
True-up of prior year taxes | (409) | (68) | 4,477 | 1,594 |
Annual effective tax rate adjustment | 5,000 | 5,000 | (4,000) | 5,000 |
Other, net | (1,584) | (1,153) | 2,633 | (3,287) |
Income tax recovery (provision) | 27,479 | (34,126) | 32,835 | (58,362) |
Current income tax provision | (6,626) | (27,502) | (11,214) | (43,355) |
Deferred income tax recovery (provision) | $ 34,105 | $ (6,624) | $ 44,049 | $ (15,007) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||||
Aug. 03, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.15 | ||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 0 | 0 | |||||
Shares outstanding, options | 0 | 0 | |||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 0 | 0 | |||||
Shares outstanding | 0 | 0 | |||||
Stock Appreciation Rights (SARs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 0 | 0 | |||||
Shares outstanding | 0 | 0 | |||||
Performance Share Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 1,562,632 | ||||||
Shares outstanding | 3,779,306 | 3,779,306 | 3,484,154 | ||||
DSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 27,815 | ||||||
Shares outstanding | 27,591 | 27,591 | 11,554 | ||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted | 54,227 | ||||||
Shares outstanding | 54,227 | 54,227 | 34,699 | ||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares outstanding | 50,000 | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares available for grant | 2,100,000 | 2,100,000 | |||||
Dividend Declared | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends declared per common share | $ 0.075 | ||||||
Dividends Payable, Date to be Paid | Oct. 04, 2023 | ||||||
Dividends Payable, Date of Record | Sep. 27, 2023 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | |||||
Date Declared | May 04, 2023 | Feb. 16, 2023 | |||
Dividends declared per common share | $ 0.075 | $ 0.075 | $ 0.075 | $ 0.15 | $ 0.15 |
Amount | $ 4,989 | $ 4,982 | $ 4,962 | $ 9,971 | $ 9,922 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Share Activity - PSU's (Details) - Performance Share Units | 6 Months Ended |
Jun. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 3,484,154 |
Granted | 1,562,632 |
Vested and issued (in shares) | (253,508) |
Forfeited (in shares) | (1,013,972) |
Outstanding - Ending | 3,779,306 |
Shareholders' Equity - Summariz
Shareholders' Equity - Summarized Restricted Share Activity (Details) | 6 Months Ended |
Jun. 30, 2023 shares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 34,699 |
Granted | 54,227 |
Vested | (34,699) |
Outstanding - Ending | 54,227 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 50,000 |
Vested | (50,000) |
DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 11,554 |
Granted | 27,815 |
Vested | (11,778) |
Outstanding - Ending | 27,591 |
Share Based Compensation Arrangement by Share Based Payments Award Liability Instruments Other than Options [Abstract] | |
Granted | 90,864 |
Vested | (31,187) |
Outstanding - Ending | 59,677 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Net income (loss) - basic and diluted | $ (98,306) | $ 71,372 | $ (128,884) | $ 160,269 |
Net income (loss) per common share, basic | $ (1.48) | $ 1.08 | $ (1.94) | $ 2.43 |
Net income (loss) per common share, diluted | $ (1.48) | $ 1.07 | $ (1.94) | $ 2.41 |
Basic, Weighted average number of common shares outstanding | 66,425,479 | 66,098,975 | 66,342,807 | 66,067,051 |
Diluted, Weighted average number of common shares outstanding | 66,425,479 | 66,588,932 | 66,342,807 | 66,507,218 |
Performance Share Units | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments (in shares) | 0 | 457,599 | 0 | 407,656 |
Restricted Stock | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments (in shares) | 0 | 21,149 | 0 | 26,906 |
RSUs | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments (in shares) | 0 | 11,209 | 0 | 5,605 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Common Share (Parenthetical) (Details) - shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restricted Stock | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Antidilutive securities excluded from computation of basic earnings per share amount | 54,227 | 54,227 | 34,699 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Performance Share Units | ||||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per common share | 3,779,306 | 0 | 3,779,306 | 0 |
Restricted Stock | ||||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per common share | 54,227 | 0 | 54,227 | 0 |
DSUs | ||||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per common share | 39,369 | 0 | 39,369 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Change in Accumulated Other Comprehensive Loss by Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | $ 822,873 | $ 768,334 | $ 838,784 | $ 694,024 |
Other comprehensive income (loss), net of taxes | 12,504 | (84,139) | 30,927 | (94,715) |
Balance | 733,469 | 752,122 | 733,469 | 752,122 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (176,435) | (108,039) | (195,085) | (97,517) |
Other comprehensive income (loss) before reclassifications | 12,236 | (84,020) | 30,886 | (94,542) |
Amounts reclassified | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of taxes | 12,236 | (84,020) | 30,886 | (94,542) |
Balance | (164,199) | (192,059) | (164,199) | (192,059) |
Defined Benefit Pension and Other Post-Retirement Benefit Items | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | 14,896 | 6,670 | 15,123 | 6,724 |
Other comprehensive income (loss) before reclassifications | 114 | 0 | 0 | 62 |
Amounts reclassified | 154 | (119) | 41 | (235) |
Other comprehensive income (loss), net of taxes | 268 | (119) | 41 | (173) |
Balance | 15,164 | 6,551 | 15,164 | 6,551 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (161,539) | (101,369) | (179,962) | (90,793) |
Other comprehensive income (loss) before reclassifications | 12,350 | (84,020) | 30,886 | (94,480) |
Amounts reclassified | 154 | (119) | 41 | (235) |
Other comprehensive income (loss), net of taxes | 12,504 | (84,139) | 30,927 | (94,715) |
Balance | $ (149,035) | $ (185,508) | $ (149,035) | $ (185,508) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Other Liability, Current, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | ||
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | ||
MPR - Cariboo Mill | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50% | 50% | |||
Related party transaction, purchases from related party | $ 22,598 | $ 30,616 | $ 49,395 | $ 51,267 | |
Payable balance to related party | $ 5,599 | $ 5,599 | $ 4,409 | ||
MPR - logging JV | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50% | 50% | |||
Related party transaction, purchases from related party | $ 4,423 | $ 2,596 | $ 8,439 | $ 7,256 | |
Related party receivable (Payable) balance | $ 2,851 | $ 2,851 | $ 522 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) Mill | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Mill | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of pulp mills | Mill | 4 | 4 | |||
Assets | $ 2,633,369 | $ 2,633,369 | $ 2,725,037 | ||
Investment in joint ventures | 49,223 | 49,223 | 45,635 | ||
Revenues | 529,863 | $ 572,326 | 1,052,529 | $ 1,165,067 | |
Goodwill | 34,792 | 34,792 | 30,937 | ||
Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 1,726,689 | 1,726,689 | 1,768,628 | ||
Revenues | 402,694 | 460,304 | 803,095 | 946,235 | |
Operating Segments | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 679,497 | 679,497 | 613,171 | ||
Revenues | 126,050 | 110,985 | 247,064 | 215,782 | |
Goodwill | 30,937 | ||||
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 227,183 | 227,183 | $ 343,238 | ||
Revenues | 1,119 | 1,037 | 2,370 | 3,050 | |
Intersegment Eliminations | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 170 | 0 | 544 | 0 | |
Intersegment Eliminations | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 10,986 | $ 6,530 | $ 22,141 | $ 13,381 | |
MPR - Cariboo Pulp Mill | |||||
Segment Reporting Information [Line Items] | |||||
Ownership percentage | 50% | 50% |
Segment Information - Schedule
Segment Information - Schedule of Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 529,863 | $ 572,326 | $ 1,052,529 | $ 1,165,067 | |
Operating income (loss) | (108,832) | 114,031 | (128,953) | 236,382 | |
Depreciation and amortization | 40,152 | 31,028 | 87,743 | 63,144 | |
Total assets | 2,633,369 | 2,633,369 | $ 2,725,037 | ||
Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 374,175 | 418,579 | 743,831 | 865,490 | |
Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 59,264 | 96,268 | 119,303 | 188,634 | |
Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 34,998 | 47,817 | 72,689 | 94,027 | |
Manufactured Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 15,989 | 6,295 | 21,793 | 10,059 | |
Pallets | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 32,675 | 68,850 | |||
Biofuels | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 10,242 | 18,377 | |||
Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,520 | 3,367 | 7,686 | 6,857 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 77,543 | 121,774 | 156,436 | 228,028 | |
Germany | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 139,384 | 171,319 | 308,203 | 333,081 | |
China | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 164,860 | 94,527 | 273,196 | 240,707 | |
Other Countries | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 148,076 | 184,706 | 314,694 | 363,251 | |
Foreign Countries | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 452,320 | 450,552 | 896,093 | 937,039 | |
Operating Segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 402,694 | 460,304 | 803,095 | 946,235 | |
Operating income (loss) | (83,459) | 75,471 | (70,688) | 161,707 | |
Depreciation and amortization | 27,783 | 27,001 | 55,182 | 54,685 | |
Total assets | 1,726,689 | 1,726,689 | 1,768,628 | ||
Operating Segments | Market Pulp | Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 374,175 | 418,579 | 743,831 | 865,490 | |
Operating Segments | Market Pulp | Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Market Pulp | Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 28,519 | 41,725 | 59,264 | 80,745 | |
Operating Segments | Market Pulp | Manufactured Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Market Pulp | Pallets | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | |||
Operating Segments | Market Pulp | Biofuels | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | |||
Operating Segments | Market Pulp | Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 126,050 | 110,985 | 247,064 | 215,782 | |
Operating income (loss) | (22,493) | 43,726 | (49,562) | 82,027 | |
Depreciation and amortization | 12,126 | 3,792 | 32,024 | 7,986 | |
Total assets | 679,497 | 679,497 | 613,171 | ||
Operating Segments | Solid Wood | Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Operating Segments | Solid Wood | Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 59,264 | 96,268 | 119,303 | 188,634 | |
Operating Segments | Solid Wood | Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 5,360 | 5,055 | 11,055 | 10,232 | |
Operating Segments | Solid Wood | Manufactured Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 15,989 | 6,295 | 21,793 | 10,059 | |
Operating Segments | Solid Wood | Pallets | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 32,675 | 68,850 | |||
Operating Segments | Solid Wood | Biofuels | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 10,242 | 18,377 | |||
Operating Segments | Solid Wood | Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,520 | 3,367 | 7,686 | 6,857 | |
Operating Segments | United States | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 29,087 | 58,953 | 72,642 | 107,115 | |
Operating Segments | United States | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 48,164 | 62,603 | 83,220 | 120,467 | |
Operating Segments | Germany | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 80,696 | 146,608 | 183,689 | 286,662 | |
Operating Segments | Germany | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 58,676 | 24,711 | 124,284 | 46,419 | |
Operating Segments | China | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 164,070 | 94,357 | 271,192 | 240,355 | |
Operating Segments | China | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 790 | 170 | 2,004 | 352 | |
Operating Segments | Other Countries | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 128,841 | 160,386 | 275,572 | 312,103 | |
Operating Segments | Other Countries | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 18,420 | 23,501 | 37,556 | 48,544 | |
Operating Segments | Foreign Countries | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 373,607 | 401,351 | 730,453 | 839,120 | |
Operating Segments | Foreign Countries | Solid Wood | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 77,886 | 48,382 | 163,844 | 95,315 | |
Corporate, Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,119 | 1,037 | 2,370 | 3,050 | |
Operating income (loss) | (2,880) | (5,166) | (8,703) | (7,352) | |
Depreciation and amortization | 243 | 235 | 537 | 473 | |
Total assets | 227,183 | 227,183 | $ 343,238 | ||
Corporate, Non-Segment | Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Lumber | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Energy and Chemicals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,119 | 1,037 | 2,370 | 3,050 | |
Corporate, Non-Segment | Manufactured Products | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Pallets | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | |||
Corporate, Non-Segment | Biofuels | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | |||
Corporate, Non-Segment | Wood Residuals | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 292 | 218 | 574 | 446 | |
Corporate, Non-Segment | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 12 | 0 | 230 | 0 | |
Corporate, Non-Segment | China | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment | Other Countries | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 815 | 819 | 1,566 | 2,604 | |
Corporate, Non-Segment | Foreign Countries | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 827 | $ 819 | $ 1,796 | $ 2,604 |
Segment Information - Schedul_2
Segment Information - Schedule of Results by Segment (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Investment in joint ventures | $ 49,223 | $ 45,635 |
Goodwill | 34,792 | $ 30,937 |
Solid Wood | Torgau | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 34,792 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,160,669 | $ 1,156,708 |
Revolving credit facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 198,884 | 141,075 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 961,785 | 1,015,633 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Revolving credit facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,160,669 | 1,156,708 |
Fair Value, Significant Other Observable Inputs (Level 2) | Revolving credit facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 198,884 | 141,075 |
Fair Value, Significant Other Observable Inputs (Level 2) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 961,785 | 1,015,633 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant unobservable inputs (Level 3) | Revolving credit facilities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant unobservable inputs (Level 3) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Accounts receivable | $ 335,402 | $ 351,993 |
Cash and cash equivalents | 213,338 | 354,032 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Long Term Debt | $ 1,162,960 | $ 1,161,672 |