Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | MERCER INTERNATIONAL INC. | |
Entity Central Index Key | 0001333274 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2024 | |
Trading Symbol | MERC | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,849,720 | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | $ 553,430 | $ 522,666 |
Costs and expenses | ||
Cost of sales, excluding depreciation and amortization | 458,182 | 461,338 |
Cost of sales depreciation and amortization | 40,350 | 47,498 |
Selling, general and administrative expenses | 31,701 | 33,951 |
Loss on disposal of investment in joint venture | 23,645 | 0 |
Operating loss | (448) | (20,121) |
Other income (expenses) | ||
Interest expense | (27,559) | (19,047) |
Other income | 4,939 | 3,234 |
Total other expenses, net | (22,620) | (15,813) |
Loss before income taxes | (23,068) | (35,934) |
Income tax recovery | 6,365 | 5,356 |
Net loss | $ (16,703) | $ (30,578) |
Net loss per common share | ||
Basic | $ (0.25) | $ (0.46) |
Diluted | (0.25) | (0.46) |
Dividends declared per common share | $ 0.075 | $ 0.075 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (16,703) | $ (30,578) |
Other comprehensive income (loss) | ||
Loss related to defined benefit pension plans | (83) | (227) |
Income tax provision | (90) | 0 |
Loss related to defined benefit pension plans, net of tax | (173) | (227) |
Foreign currency translation adjustments | (37,469) | 18,650 |
Other comprehensive income (loss), net of tax | (37,642) | 18,423 |
Total comprehensive loss | $ (54,345) | $ (12,155) |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 274,272 | $ 313,992 |
Accounts receivable, net | 368,466 | 306,166 |
Inventories | 408,326 | 414,161 |
Prepaid expenses and other | 42,241 | 23,461 |
Assets classified as held for sale | 33,597 | 35,125 |
Total current assets | 1,126,902 | 1,092,905 |
Property, plant and equipment, net | 1,361,975 | 1,409,937 |
Investment in joint ventures | 4,455 | 41,665 |
Amortizable intangible assets, net | 51,113 | 52,641 |
Goodwill | 34,616 | 35,381 |
Operating lease right-of-use assets | 10,623 | 11,725 |
Pension asset | 5,513 | 5,588 |
Other long-term assets | 10,158 | 12,736 |
Total assets | 2,605,355 | 2,662,578 |
Current liabilities | ||
Accounts payable and other | 294,289 | 278,986 |
Pension and other post-retirement benefit obligations | 806 | 826 |
Liabilities associated with assets held for sale | 6,443 | 6,625 |
Total current liabilities | 301,538 | 286,437 |
Long-term debt | 1,615,173 | 1,609,425 |
Pension and other post-retirement benefit obligations | 12,349 | 12,483 |
Operating lease liabilities | 6,797 | 7,755 |
Other long-term liabilities | 13,448 | 13,744 |
Deferred income tax | 82,411 | 97,324 |
Total liabilities | 2,031,716 | 2,027,168 |
Shareholders’ equity | ||
Common shares $1 par value; 200,000,000 authorized; 66,850,000 issued and outstanding (2023 - 66,525,000) | 66,796 | 66,471 |
Additional paid-in capital | 360,941 | 359,497 |
Retained earnings | 314,396 | 336,113 |
Accumulated other comprehensive loss | (168,494) | (126,671) |
Total shareholders’ equity | 573,639 | 635,410 |
Total liabilities and shareholders’ equity | 2,605,355 | 2,662,578 |
Commitments and contingencies (Note 15) |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 66,850,000 | 66,525,000 |
Common Stock, Shares, Outstanding | 66,850,000 | 66,525,000 |
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, 2022 | $ 838,784 | $ 66,132 | $ 354,495 | $ 598,119 | $ (179,962) |
Balance (in shares) at Dec. 31, 2022 | 66,167,000 | ||||
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 | 1,226 | 1,226 | |||
Net loss | (30,578) | (30,578) | |||
Dividends declared | (4,982) | (4,982) | |||
Other comprehensive income (loss) | 18,423 | 18,423 | |||
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, 2023 | $ 635,410 | $ 66,471 | 359,497 | 336,113 | (126,671) |
Balance (in shares) at Dec. 31, 2023 | 66,525,000 | 66,525,000 | |||
Shares issued on grants of performance share units | $ 325 | (325) | |||
Shares issued on grants of performance share units (in shares) | 325,000 | ||||
Stock compensation expense | $ 1,769 | 1,769 | |||
Net loss | (16,703) | (16,703) | |||
Dividends declared | (5,014) | (5,014) | |||
Disposal of investment in joint venture | (4,181) | (4,181) | |||
Other comprehensive income (loss) | (37,642) | (37,642) | |||
Balance at Mar. 31, 2024 | $ 573,639 | $ 66,796 | $ 360,941 | $ 314,396 | $ (168,494) |
Balance (in shares) at Mar. 31, 2024 | 66,850,000 | 66,850,000 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from (used in) operating activities | ||
Net loss | $ (16,703) | $ (30,578) |
Adjustments to reconcile net loss to cash flows from operating activities | ||
Depreciation and amortization | 40,404 | 47,591 |
Deferred income tax recovery | (13,426) | (9,944) |
Inventory impairment | 0 | 15,200 |
Loss on disposal of investment in joint venture | 23,645 | 0 |
Defined benefit pension plans and other post-retirement benefit plan expense | 210 | 446 |
Stock compensation expense | 2,029 | 1,226 |
Foreign exchange transaction losses (gains) | (3,449) | 270 |
Other | 727 | (1,149) |
Defined benefit pension plans and other post-retirement benefit plan contributions | (329) | (247) |
Changes in working capital | ||
Accounts receivable | (63,729) | 11,342 |
Inventories | 89 | (86,434) |
Accounts payable and accrued expenses | 2,390 | 309 |
Other | (1,052) | 2,318 |
Net cash from (used in) operating activities | (29,194) | (49,650) |
Cash flows from (used in) investing activities | ||
Purchase of property, plant and equipment | (18,461) | (33,429) |
Proceeds from government grants | 787 | 0 |
Other | 190 | 805 |
Net cash from (used in) investing activities | (17,484) | (32,624) |
Cash flows from (used in) financing activities | ||
Proceeds from revolving credit facilities, net | 9,125 | 30,102 |
Payment of finance lease obligations | (2,189) | (1,889) |
Other | (115) | (114) |
Net cash from (used in) financing activities | 6,821 | 28,099 |
Effect of exchange rate changes on cash and cash equivalents | 137 | 703 |
Net decrease in cash and cash equivalents | (39,720) | (53,472) |
Cash and cash equivalents, beginning of period | 313,992 | 354,032 |
Cash and cash equivalents, end of period | 274,272 | 300,560 |
Supplemental cash flow disclosure: | ||
Cash paid for interest | 34,716 | 33,240 |
Cash paid for income taxes | $ 8,173 | $ 1,773 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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. In the first quarter of 2024, the Company disposed of its 50 % joint venture interest in the Cariboo Pulp & Paper Company (“CPP”) with West Fraser Mills Ltd. (“West Fraser”) which prior to the disposal was 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, 2023 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, 2023. 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, 2023 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, future cash flows associated with impairment testing for goodwill and long-lived assets, depreciation and amortization, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, revenues under long-term contracts, inventory impairment, assets and liabilities classified as held for sale and the fair value of disposal groups, legal liabilities and contingencies. Actual results could differ materially from these estimates and changes in these estimates are recorded when known. New Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, which requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that disclosure requirements are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024 with early adoption permitted. The Company currently does not expect the adoption of ASU 2023-07 to have a material impact to the Company's financial position or results of operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which requires additional disaggregation of the reconciliation between the statutory and effective tax rate for an entity and of income taxes paid. The amendments improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company currently does not expect the adoption of ASU 2023-09 to have a material impact to the Company's financial position or results of operations. |
Disposal of Investment in Joint
Disposal of Investment in Joint Venture | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Disposal of Investment in Joint Venture | Note 2. Disposal of Investment in Joint Venture In the first quarter of 2024, the Company entered into an agreement with West Fraser to dissolve the CPP joint venture and effectively relinquished its contractual sharing of control over the joint venture. For the three months ended March 31, 2024 , a non-cash loss in the Interim Consolidated Statements of Operations of $ 23,645 was recognized as the estimated proceeds, comprised of inventory, were less than the net carrying amount of the disposal group. The disposal group includes the equity investment and the actuarial gains related to a defined benefit pension plan recognized in accumulated other comprehensive loss. The estimated fair value of the proceeds was determined using Level 2 inputs based on the market value of inventory. |
Assets and Liabilities Classifi
Assets and Liabilities Classified as Held for Sale | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Classified as Held for Sale | Note 3. Assets and Liabilities Classified as Held for Sale In the fourth quarter of 2023, the Company committed to a plan to sell the sandalwood business. Efforts to sell the business have started and a sale is expected to occur within the next 12 months. Accordingly, the disposal group, comprised of the assets and associated liabilities of the business, was classified as held for sale. Concurrently with this classification, a non-cash impairment charge of $ 33,734 was recognized in the Consolidated Statements of Operations for the year ended December 31, 2023. The disposal group’s estimated fair value was determined using Level 3 inputs based on preliminary indicative offers from third parties. The following summarizes the major classes of assets and liabilities classified as held for sale as of March 31, 2024. March 31, Cash and cash equivalent $ 786 Accounts receivable, net 710 Inventories 14,085 Prepaid expenses 68 Property, plant and equipment, net 14,221 Operating lease right-of-use-assets 4,200 Sandalwood tree plantations 31,817 Loss recognized on classification as held for sale ( 33,734 ) Impact of changes in foreign exchange rate 1,444 Assets held for sale $ 33,597 Accounts payable and other $ 2,570 Operating lease liabilities 3,873 Liabilities associated with assets held for sale $ 6,443 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net [Abstract] | |
Inventories | Note 4. Inventories Inventories as of March 31, 2024 and December 31, 2023, were comprised of the following: March 31, December 31, Raw materials $ 141,350 $ 127,126 Finished goods 121,118 144,407 Spare parts and other 145,858 142,628 $ 408,326 $ 414,161 For the three months ended March 31, 2024 , there were no inventory impairment charges recorded. For the three months ended March 31, 2023 , primarily as a result of low hardwood pulp prices and high production and logistics costs for the Peace River mill, the Company recorded an inventory impairment charge of $ 15,200 in “Cost of sales, excluding depreciation and amortization” in the Interim Consolidated Statements of Operations. |
Accounts Payable and Other
Accounts Payable and Other | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Note 5. Accounts Payable and Other Accounts payable and other as of March 31, 2024 and December 31, 2023, were comprised of the following: March 31, December 31, Trade payables $ 63,471 $ 61,099 Accrued expenses 98,375 87,413 Interest payable 25,435 34,542 Income tax payable 19,963 21,807 Payroll-related accruals 27,496 27,512 Deposits for mass timber sales contracts 23,523 15,262 Wastewater fee (a) 7,123 6,721 Finance lease liability 8,660 7,664 Operating lease liability 3,900 4,043 Other 16,343 12,923 $ 294,289 $ 278,986 (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 | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt Debt as of March 31, 2024 and December 31, 2023, was comprised of the following: Maturity March 31, December 31, Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 12.875 % senior notes 2028 200,000 200,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 370.1 million German joint revolving credit facility (b) 2027 163,246 161,330 C$ 160.0 million Canadian joint revolving credit facility (c) 2027 49,815 47,255 € 2.6 million demand loan (d) — — Finance lease liability 49,603 48,349 1,637,664 1,631,934 Less: unamortized senior note issuance costs ( 13,831 ) ( 14,845 ) Less: finance lease liability due within one year ( 8,660 ) ( 7,664 ) $ 1,615,173 $ 1,609,425 The maturities of the principal portion of the senior notes and credit arrangements as of March 31, 2024 were as follows: Senior Notes and Credit Arrangements 2025 $ — 2026 300,000 2027 213,061 2028 200,000 2029 875,00 0 Thereafter — $ 1,588,061 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 March 31, 2024, the Company was in compliance with the terms of its debt agreements. (a) In September 2023, the Company issued $ 200,000 in aggregate principal amount of 12.875 % senior notes which mature on October 1, 2028 (the “2028 Senior Notes”). The net proceeds from the 2028 Senior Notes issuance was $ 195,668 after deducting the underwriter’s discount and offering expenses. The senior notes which mature on February 1, 2029 (the “2029 Senior Notes”) and on January 15, 2026 (the “2026 Senior Notes” and collectively with the 2029 Senior Notes and 2028 Senior Notes, the “Senior Notes”) and the 2028 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. Note 6. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the 2028 Senior Notes and the 2029 Senior Notes: 2028 Senior Notes 2029 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage October 1, 2025 106.438 % February 1, 2024 102.563 % October 1, 2026 103.219 % February 1, 2025 101.281 % October 1, 2027 and thereafter 100.000 % February 1, 2026 and thereafter 100.000 % (b) A € 370.1 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 1.40 % to 2.35 % 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 March 31, 2024, approximately € 151.0 million ( $ 163,246 ) of this facility was drawn and accruing interest at a rate of 5.318 % , approximately € 13.6 million ( $ 14,662 ) was supporting bank guarantees and approximately € 205.5 million ( $ 222,234 ) 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 dollar 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 Secured Overnight Financing Rate (“ SOFR”) for a one month tenor plus 1.00 % and the bank’s applicable reference rate for dollar denominated loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of March 31, 2024, approximately C$ 67.5 million ( $ 49,815 ) of this facility was drawn and accruing interest at a rate of 6.629 % , approximately C$ 1.4 million ( $ 1,013 ) was supporting letters of credit and approximately C$ 79.1 million ( $ 58,397 ) was available. (d) A € 2.6 million demand loan for the Rosenthal mill that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of March 31, 2024, approximately € 2.6 million ( $ 2,759 ) of this facility was supporting bank guarantees and approximately $ nil was available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Pension Other Post- Pension Other Post- Service cost $ 697 $ 32 $ 598 $ 29 Interest cost 980 117 1,166 123 Expected return on plan assets ( 1,533 ) — ( 1,357 ) — Amortization of unrecognized items 124 ( 207 ) 128 ( 241 ) Net benefit costs (gains) $ 268 $ ( 58 ) $ 535 $ ( 89 ) Note 7 . Pension and Other Post-Retirement Benefit Obligations (continued) The components of the net benefit costs (gains) 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 months ended March 31, 2024, the Company made contributions of $ 320 to this plan (2023 – $ 252 ). 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 months ended March 31, 2024, the Company made contributions of $ 521 to this plan (2023 – $ 523 ). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes Differences between the U.S. Federal statutory rate and the Company's effective tax rate for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 U.S. Federal statutory rate 21 % 21 % Income tax recovery using U.S. Federal statutory rate on loss before income taxes $ 4,844 $ 7,546 Tax differential on foreign income (loss) ( 587 ) 1,318 Effect of foreign earnings (a) — ( 525 ) Valuation allowance ( 2,608 ) ( 4,563 ) Tax benefit of partnership structure — 783 Non-taxable foreign subsidies 590 694 True-up of prior year taxes 1,236 4,886 Annual effective tax rate adjustment 1,700 ( 9,000 ) Non-taxable portion of capital gain 1,460 — Other, net ( 270 ) 4,217 Income tax recovery $ 6,365 $ 5,356 Comprised of: Current income tax provision $ ( 7,061 ) $ ( 4,588 ) Deferred income tax recovery 13,426 9,944 Income tax recovery $ 6,365 $ 5,356 (a) Primarily relates to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Note 9. Shareholders' Equity Dividends During the three months ended March 31, 2024, the Company's board of directors declared the following quarterly dividend: Date Declared Dividend Per Amount February 15, 2024 $ 0.075 $ 5,014 On May 9, 2024 , the Company's board of directors declared a quarterly dividend of $ 0.075 per common share. Payment of the dividend will be made on July 3, 2024 to all shareholders of record on June 26, 2024 . Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Stock Based Compensation The Company's stock incentive plan consists of stock options, restricted stock units (“RSUs”), deferred stock units (“DSUs”), restricted shares, performance shares, performance share units (“PSUs”) and stock appreciation rights. During the three months ended March 31, 2024 , there were no issued and outstanding stock options, RSUs, performance shares or stock appreciation rights. As of March 31, 2024, after factoring in all allocated shares, there remain approximately 0.7 million common shares available for grant. DSUs are comprised of grants which are settled in shares (“Equity DSUs”) and grants which are settled in cash based on the quoted price of the Company's common shares on the redemption date (“Cash Only DSUs”). The following table summarizes PSU activity during the period: Number of PSUs Outstanding as of January 1, 2024 3,672,227 Granted 2,312,098 Vested and issued ( 324,854 ) Forfeited ( 807,974 ) Outstanding as of March 31, 2024 4,851,497 |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Note 10. Net loss Per Common Share The reconciliation of basic and diluted net loss per common share for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, 2024 2023 Net loss Basic and diluted $ ( 16,703 ) $ ( 30,578 ) Net loss per common share Basic $ ( 0.25 ) $ ( 0.46 ) Diluted $ ( 0.25 ) $ ( 0.46 ) Weighted average number of common shares outstanding: Basic (a) 66,641,990 66,259,216 Diluted 66,641,990 66,259,216 (a) For the three months ended March 31, 2024, the weighted average number of common shares outstanding excludes 54,227 restricted shares which have been granted, but have not vested as of March 31, 2024 (2023 – 34,699 restricted shares). The calculation of diluted net loss per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net loss per common share. Instruments excluded from the calculation of net loss per common share because they were anti-dilutive for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 PSUs 4,851,497 3,843,552 Restricted shares 54,227 34,699 RSUs — 50,000 Equity DSUs 44,914 11,554 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Three Months Ended March 31: Balance as of December 31, 2023 $ ( 145,605 ) $ 18,934 $ ( 126,671 ) Other comprehensive loss before reclassifications ( 37,469 ) ( 90 ) ( 37,559 ) Amounts reclassified — ( 83 ) ( 83 ) Other comprehensive loss ( 37,469 ) ( 173 ) ( 37,642 ) Disposal of investment in joint venture — ( 4,181 ) ( 4,181 ) Balance as of March 31, 2024 $ ( 183,074 ) $ 14,580 $ ( 168,494 ) Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) Other comprehensive income (loss) before reclassifications 18,650 ( 114 ) 18,536 Amounts reclassified — ( 113 ) ( 113 ) Other comprehensive income (loss) 18,650 ( 227 ) 18,423 Balance as of March 31, 2023 $ ( 176,435 ) $ 14,896 $ ( 161,539 ) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and prior to the disposal of the investment in the CPP joint venture, pulp purchases from the CPP mill, which were transacted at the CPP mill's cost, were $ 19,707 (2023 – $ 26,797 ). For the three months ended March 31, 2024 , services from the Company's 50 % owned logging and chipping operation, which are transacted at arm's length negotiated prices, were $ 3,124 (2023 – $ 4,016 ) and as of March 31, 2024 , the Company had a receivable balance from the operation of $ 495 (December 31, 2023 – receivable of $ 1,912 ). |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13. Segment Information The Company is managed based on the primary products it manufactures: pulp and solid wood, whose operating results are regularly reviewed by the Company’s chief operating decision maker to assess segment performance and to make decisions about resource allocation. Accordingly, the Company's four pulp mills are aggregated into the pulp segment. The Friesau sawmill, the Torgau facility and the mass timber facilities are aggregated into the solid wood 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. In the first quarter of 2024, the Company disposed of its investment in the CPP joint venture. Prior to the disposal the investment was included in the pulp segment. None of the income or loss items following operating loss in the Company's Interim Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management. Note 13. Segment Information (continued) Information about certain segment data for the three months ended March 31, 2024 and 2023, was as follows: Three Months Ended March 31, 2024 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 432,404 $ 119,023 $ 2,003 $ 553,430 Operating income (loss) $ 17,447 $ ( 13,706 ) $ ( 4,189 ) $ ( 448 ) Depreciation and amortization $ 27,373 $ 12,811 $ 220 $ 40,404 Total assets (a) $ 1,678,375 $ 698,812 $ 228,168 $ 2,605,355 Revenues by major products Pulp $ 408,295 $ — $ — $ 408,295 Lumber — 55,882 — 55,882 Energy and chemicals 24,109 4,838 2,003 30,950 Manufactured products (b) — 16,713 — 16,713 Pallets — 28,020 — 28,020 Biofuels (c) — 11,254 — 11,254 Wood residuals — 2,316 — 2,316 Total revenues $ 432,404 $ 119,023 $ 2,003 $ 553,430 Revenues by geographical markets (d) U.S. $ 37,589 $ 44,195 $ 908 $ 82,692 Foreign countries Germany 79,524 54,076 141 133,741 China 182,799 809 — 183,608 Other countries 132,492 19,943 954 153,389 394,815 74,828 1,095 470,738 Total revenues $ 432,404 $ 119,023 $ 2,003 $ 553,430 (a) Total assets for the solid wood segment includes $ 34,616 of goodwill from the acquisition of all the issued and outstanding shares of Wood Holdco GmbH, which is the parent company of Holzindustrie Torgau KG ("Torgau"). (b) Manufactured products primarily includes cross-laminated timber, glulam 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) Three Months Ended March 31, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 400,401 $ 121,014 $ 1,251 $ 522,666 Operating income (loss) $ 12,771 $ ( 27,069 ) $ ( 5,823 ) $ ( 20,121 ) Depreciation and amortization $ 27,399 $ 19,898 $ 294 $ 47,591 Revenues by major products Pulp $ 369,656 $ — $ — $ 369,656 Lumber — 60,039 — 60,039 Energy and chemicals 30,745 5,695 1,251 37,691 Manufactured products (a) — 5,804 — 5,804 Pallets — 36,175 — 36,175 Biofuels (b) — 8,135 — 8,135 Wood residuals — 5,166 — 5,166 Total revenues $ 400,401 $ 121,014 $ 1,251 $ 522,666 Revenues by geographical markets (c) U.S. $ 43,555 $ 35,056 $ 282 $ 78,893 Foreign countries Germany 102,993 65,608 218 168,819 China 107,122 1,214 — 108,336 Other countries 146,731 19,136 751 166,618 356,846 85,958 969 443,773 Total revenues $ 400,401 $ 121,014 $ 1,251 $ 522,666 (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. As of December 31, 2023 , the Company had total assets of $ 1,727,851 in the pulp segment, $ 696,551 in the solid wood segment and $ 238,176 in corporate and other. Total assets for the pulp segment included the Company's $ 41,665 investment in joint ventures, primarily for the CPP mill. Total assets for the solid wood segment included $ 35,381 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 months ended March 31, 2024, the pulp segment sold $ 160 of residual fuel to the solid wood segment (2023 – $ 374 ) and the solid wood segment sold $ 9,722 of residual fiber to the pulp segment (2023 – $ 11,155 ). |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 were as follows: Fair value measurements as of March 31, 2024 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 213,061 $ — $ 213,061 Senior notes — 1,279,237 — 1,279,237 $ — $ 1,492,298 $ — $ 1,492,298 Note 14. Financial Instruments and Fair Value Measurement (continued) Fair value measurements as of December 31, 2023 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 208,585 $ — $ 208,585 Senior notes — 1,257,426 — 1,257,426 $ — $ 1,466,011 $ — $ 1,466,011 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 March 31, 2024 or December 31, 2023. However, fair value disclosure is required. The carrying value of the Company's senior notes, net of unamortized note issuance costs, was $ 1,361,169 as of March 31, 2024 (December 31, 2023 – $ 1,360,155 ). 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. Concentrations of credit risk on its sales 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 and interest rate levels. As of March 31, 2024, the Company has not had significant credit losses. As of March 31, 2024, the carrying amount of cash and cash equivalents of $ 274,272 and accounts receivable of $ 368,466 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 | 3 Months Ended |
Mar. 31, 2024 | |
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. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. In the first quarter of 2024, the Company disposed of its 50 % joint venture interest in the Cariboo Pulp & Paper Company (“CPP”) with West Fraser Mills Ltd. (“West Fraser”) which prior to the disposal was 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, 2023 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, 2023. 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, 2023 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, future cash flows associated with impairment testing for goodwill and long-lived assets, depreciation and amortization, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, revenues under long-term contracts, inventory impairment, assets and liabilities classified as held for sale and the fair value of disposal groups, legal liabilities and contingencies. Actual results could differ materially from these estimates and changes in these estimates are recorded when known. |
New Accounting Pronouncements | New Accounting Pronouncements Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2023-07, which requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that disclosure requirements are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024 with early adoption permitted. The Company currently does not expect the adoption of ASU 2023-07 to have a material impact to the Company's financial position or results of operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which requires additional disaggregation of the reconciliation between the statutory and effective tax rate for an entity and of income taxes paid. The amendments improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company currently does not expect the adoption of ASU 2023-09 to have a material impact to the Company's financial position or results of operations. |
Assets and Liabilities Classi_2
Assets and Liabilities Classified as Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Major Classes of Assets and Liabilities Held For Sale | The following summarizes the major classes of assets and liabilities classified as held for sale as of March 31, 2024. March 31, Cash and cash equivalent $ 786 Accounts receivable, net 710 Inventories 14,085 Prepaid expenses 68 Property, plant and equipment, net 14,221 Operating lease right-of-use-assets 4,200 Sandalwood tree plantations 31,817 Loss recognized on classification as held for sale ( 33,734 ) Impact of changes in foreign exchange rate 1,444 Assets held for sale $ 33,597 Accounts payable and other $ 2,570 Operating lease liabilities 3,873 Liabilities associated with assets held for sale $ 6,443 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net [Abstract] | |
Components of Inventories | Inventories as of March 31, 2024 and December 31, 2023, were comprised of the following: March 31, December 31, Raw materials $ 141,350 $ 127,126 Finished goods 121,118 144,407 Spare parts and other 145,858 142,628 $ 408,326 $ 414,161 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of March 31, 2024 and December 31, 2023, were comprised of the following: March 31, December 31, Trade payables $ 63,471 $ 61,099 Accrued expenses 98,375 87,413 Interest payable 25,435 34,542 Income tax payable 19,963 21,807 Payroll-related accruals 27,496 27,512 Deposits for mass timber sales contracts 23,523 15,262 Wastewater fee (a) 7,123 6,721 Finance lease liability 8,660 7,664 Operating lease liability 3,900 4,043 Other 16,343 12,923 $ 294,289 $ 278,986 (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) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of March 31, 2024 and December 31, 2023, was comprised of the following: Maturity March 31, December 31, Senior notes (a) 5.500 % senior notes 2026 $ 300,000 $ 300,000 12.875 % senior notes 2028 200,000 200,000 5.125 % senior notes 2029 875,000 875,000 Credit arrangements € 370.1 million German joint revolving credit facility (b) 2027 163,246 161,330 C$ 160.0 million Canadian joint revolving credit facility (c) 2027 49,815 47,255 € 2.6 million demand loan (d) — — Finance lease liability 49,603 48,349 1,637,664 1,631,934 Less: unamortized senior note issuance costs ( 13,831 ) ( 14,845 ) Less: finance lease liability due within one year ( 8,660 ) ( 7,664 ) $ 1,615,173 $ 1,609,425 . As of March 31, 2024, the Company was in compliance with the terms of its debt agreements. (a) In September 2023, the Company issued $ 200,000 in aggregate principal amount of 12.875 % senior notes which mature on October 1, 2028 (the “2028 Senior Notes”). The net proceeds from the 2028 Senior Notes issuance was $ 195,668 after deducting the underwriter’s discount and offering expenses. (b) A € 370.1 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 1.40 % to 2.35 % 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 March 31, 2024, approximately € 151.0 million ( $ 163,246 ) of this facility was drawn and accruing interest at a rate of 5.318 % , approximately € 13.6 million ( $ 14,662 ) was supporting bank guarantees and approximately € 205.5 million ( $ 222,234 ) 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 dollar 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 Secured Overnight Financing Rate (“ SOFR”) for a one month tenor plus 1.00 % and the bank’s applicable reference rate for dollar denominated loans ; and (iv) dollar SOFR advances, which bear interest at Adjusted Term SOFR plus 1.20 % to 1.45 % per annum. As of March 31, 2024, approximately C$ 67.5 million ( $ 49,815 ) of this facility was drawn and accruing interest at a rate of 6.629 % , approximately C$ 1.4 million ( $ 1,013 ) was supporting letters of credit and approximately C$ 79.1 million ( $ 58,397 ) was available. (d) A € 2.6 million demand loan for the Rosenthal mill that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50 %. As of March 31, 2024, approximately € 2.6 million ( $ 2,759 ) 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 2028 Senior Notes and the 2029 Senior Notes: 2028 Senior Notes 2029 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage October 1, 2025 106.438 % February 1, 2024 102.563 % October 1, 2026 103.219 % February 1, 2025 101.281 % October 1, 2027 and thereafter 100.000 % 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 March 31, 2024 were as follows: Senior Notes and Credit Arrangements 2025 $ — 2026 300,000 2027 213,061 2028 200,000 2029 875,00 0 Thereafter — $ 1,588,061 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 Pension Other Post- Pension Other Post- Service cost $ 697 $ 32 $ 598 $ 29 Interest cost 980 117 1,166 123 Expected return on plan assets ( 1,533 ) — ( 1,357 ) — Amortization of unrecognized items 124 ( 207 ) 128 ( 241 ) Net benefit costs (gains) $ 268 $ ( 58 ) $ 535 $ ( 89 ) Note 7 . Pension and Other Post-Retirement Benefit Obligations (continued) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal statutory rate and the Company's effective tax rate for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 U.S. Federal statutory rate 21 % 21 % Income tax recovery using U.S. Federal statutory rate on loss before income taxes $ 4,844 $ 7,546 Tax differential on foreign income (loss) ( 587 ) 1,318 Effect of foreign earnings (a) — ( 525 ) Valuation allowance ( 2,608 ) ( 4,563 ) Tax benefit of partnership structure — 783 Non-taxable foreign subsidies 590 694 True-up of prior year taxes 1,236 4,886 Annual effective tax rate adjustment 1,700 ( 9,000 ) Non-taxable portion of capital gain 1,460 — Other, net ( 270 ) 4,217 Income tax recovery $ 6,365 $ 5,356 Comprised of: Current income tax provision $ ( 7,061 ) $ ( 4,588 ) Deferred income tax recovery 13,426 9,944 Income tax recovery $ 6,365 $ 5,356 (a) Primarily relates to the impact of the global intangible low-taxed income provision in the Tax Cuts and Jobs Act of 2017. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders Equity [Line Items] | |
Summary of Dividends Declared | During the three months ended March 31, 2024, the Company's board of directors declared the following quarterly dividend: Date Declared Dividend Per Amount February 15, 2024 $ 0.075 $ 5,014 |
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, 2024 3,672,227 Granted 2,312,098 Vested and issued ( 324,854 ) Forfeited ( 807,974 ) Outstanding as of March 31, 2024 4,851,497 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Loss Per Common Share | The reconciliation of basic and diluted net loss per common share for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, 2024 2023 Net loss Basic and diluted $ ( 16,703 ) $ ( 30,578 ) Net loss per common share Basic $ ( 0.25 ) $ ( 0.46 ) Diluted $ ( 0.25 ) $ ( 0.46 ) Weighted average number of common shares outstanding: Basic (a) 66,641,990 66,259,216 Diluted 66,641,990 66,259,216 (a) For the three months ended March 31, 2024, the weighted average number of common shares outstanding excludes 54,227 restricted shares which have been granted, but have not vested as of March 31, 2024 (2023 – 34,699 restricted shares). |
Anti-Dilutive Instruments Excluded from Calculation of Net Loss Per Common Share | Instruments excluded from the calculation of net loss per common share because they were anti-dilutive for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, 2024 2023 PSUs 4,851,497 3,843,552 Restricted shares 54,227 34,699 RSUs — 50,000 Equity DSUs 44,914 11,554 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 was as follows: Foreign Currency Translation Adjustments Defined Benefit Pension and Other Post-Retirement Benefit Items Total Three Months Ended March 31: Balance as of December 31, 2023 $ ( 145,605 ) $ 18,934 $ ( 126,671 ) Other comprehensive loss before reclassifications ( 37,469 ) ( 90 ) ( 37,559 ) Amounts reclassified — ( 83 ) ( 83 ) Other comprehensive loss ( 37,469 ) ( 173 ) ( 37,642 ) Disposal of investment in joint venture — ( 4,181 ) ( 4,181 ) Balance as of March 31, 2024 $ ( 183,074 ) $ 14,580 $ ( 168,494 ) Balance as of December 31, 2022 $ ( 195,085 ) $ 15,123 $ ( 179,962 ) Other comprehensive income (loss) before reclassifications 18,650 ( 114 ) 18,536 Amounts reclassified — ( 113 ) ( 113 ) Other comprehensive income (loss) 18,650 ( 227 ) 18,423 Balance as of March 31, 2023 $ ( 176,435 ) $ 14,896 $ ( 161,539 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the three months ended March 31, 2024 and 2023, was as follows: Three Months Ended March 31, 2024 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 432,404 $ 119,023 $ 2,003 $ 553,430 Operating income (loss) $ 17,447 $ ( 13,706 ) $ ( 4,189 ) $ ( 448 ) Depreciation and amortization $ 27,373 $ 12,811 $ 220 $ 40,404 Total assets (a) $ 1,678,375 $ 698,812 $ 228,168 $ 2,605,355 Revenues by major products Pulp $ 408,295 $ — $ — $ 408,295 Lumber — 55,882 — 55,882 Energy and chemicals 24,109 4,838 2,003 30,950 Manufactured products (b) — 16,713 — 16,713 Pallets — 28,020 — 28,020 Biofuels (c) — 11,254 — 11,254 Wood residuals — 2,316 — 2,316 Total revenues $ 432,404 $ 119,023 $ 2,003 $ 553,430 Revenues by geographical markets (d) U.S. $ 37,589 $ 44,195 $ 908 $ 82,692 Foreign countries Germany 79,524 54,076 141 133,741 China 182,799 809 — 183,608 Other countries 132,492 19,943 954 153,389 394,815 74,828 1,095 470,738 Total revenues $ 432,404 $ 119,023 $ 2,003 $ 553,430 (a) Total assets for the solid wood segment includes $ 34,616 of goodwill from the acquisition of all the issued and outstanding shares of Wood Holdco GmbH, which is the parent company of Holzindustrie Torgau KG ("Torgau"). (b) Manufactured products primarily includes cross-laminated timber, glulam 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) Three Months Ended March 31, 2023 Pulp Solid Wood Corporate Consolidated Revenues from external customers $ 400,401 $ 121,014 $ 1,251 $ 522,666 Operating income (loss) $ 12,771 $ ( 27,069 ) $ ( 5,823 ) $ ( 20,121 ) Depreciation and amortization $ 27,399 $ 19,898 $ 294 $ 47,591 Revenues by major products Pulp $ 369,656 $ — $ — $ 369,656 Lumber — 60,039 — 60,039 Energy and chemicals 30,745 5,695 1,251 37,691 Manufactured products (a) — 5,804 — 5,804 Pallets — 36,175 — 36,175 Biofuels (b) — 8,135 — 8,135 Wood residuals — 5,166 — 5,166 Total revenues $ 400,401 $ 121,014 $ 1,251 $ 522,666 Revenues by geographical markets (c) U.S. $ 43,555 $ 35,056 $ 282 $ 78,893 Foreign countries Germany 102,993 65,608 218 168,819 China 107,122 1,214 — 108,336 Other countries 146,731 19,136 751 166,618 356,846 85,958 969 443,773 Total revenues $ 400,401 $ 121,014 $ 1,251 $ 522,666 (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. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 were as follows: Fair value measurements as of March 31, 2024 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 213,061 $ — $ 213,061 Senior notes — 1,279,237 — 1,279,237 $ — $ 1,492,298 $ — $ 1,492,298 Note 14. Financial Instruments and Fair Value Measurement (continued) Fair value measurements as of December 31, 2023 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 208,585 $ — $ 208,585 Senior notes — 1,257,426 — 1,257,426 $ — $ 1,466,011 $ — $ 1,466,011 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 31, 2024 |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage in subsidiaries | 100% |
MPR - CPP | West Fraser | |
Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage disposed | 50% |
Disposal of Investment in Joi_2
Disposal of Investment in Joint Venture - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Non-cash loss | $ 23,645 | $ 0 |
MPR - CPP | ||
Schedule of Equity Method Investments [Line Items] | ||
Non-cash loss | $ 23,645 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Purchase Price Allocation | ||
Goodwill | $ 34,616 | $ 35,381 |
Assets and Liabilities Classi_3
Assets and Liabilities Classified as Held for Sale - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Sandalwood | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Non-cash impairment charge | $ 33,734 |
Assets and Liabilities Classi_4
Assets and Liabilities Classified as Held for Sale - Schedule of Major Classes of Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Liabilities associated with assets held for sale | $ 6,443 | $ 6,625 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Cash and cash equivalent | 786 | |
Accounts receivable, net | 710 | |
Inventories | 14,085 | |
Prepaid expenses | 68 | |
Property, plant and equipment, net | 14,221 | |
Operating lease right-of-use-assets | 4,200 | |
Sandalwood tree plantations | 31,817 | |
Loss recognized on classification as held for sale | (33,734) | |
Impact of changes in foreign exchange rate | 1,444 | |
Assets held for sale | 33,597 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable and other | 2,570 | |
Operating lease liabilities | 3,873 | |
Liabilities associated with assets held for sale | $ 6,443 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory, Net [Abstract] | ||
Raw materials | $ 141,350 | $ 127,126 |
Finished goods | 121,118 | 144,407 |
Spare parts and other | 145,858 | 142,628 |
Inventories | $ 408,326 | $ 414,161 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Inventory [Line Items] | ||
Inventory impairment charges | $ 0 | |
Inventory write-down | $ 0 | $ 15,200,000 |
Accounts Payable and Other - Sc
Accounts Payable and Other - Schedule of Accounts Payable and Other (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 63,471 | $ 61,099 |
Accrued expenses | 98,375 | 87,413 |
Interest payable | 25,435 | 34,542 |
Income tax payable | 19,963 | 21,807 |
Payroll-related accruals | 27,496 | 27,512 |
Deposits for mass timber sales contracts | 23,523 | 15,262 |
Wastewater fee | 7,123 | 6,721 |
Finance lease liability | 8,660 | 7,664 |
Operating lease liability | 3,900 | 4,043 |
Other | 16,343 | 12,923 |
Accounts payable and other | $ 294,289 | $ 278,986 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Long-term debt and finance lease obligations, gross | $ 1,637,664 | $ 1,631,934 |
Less: unamortized senior note issuance costs | (13,831) | (14,845) |
Less: finance lease liability due within one year | (8,660) | (7,664) |
Long-term debt, net | $ 1,615,173 | 1,609,425 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2026 | |
Long-term debt and finance lease obligations, gross | $ 300,000 | 300,000 |
2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Maturity | 2028 | |
Long-term debt and finance lease obligations, gross | $ 200,000 | 200,000 |
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 370.1 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 163,246 | 161,330 |
Canadian Joint RCF - C$160 Million | ||
Debt Instrument [Line Items] | ||
Maturity | 2027 | |
Long-term debt and finance lease obligations, gross | $ 49,815 | 47,255 |
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 | $ 49,603 | $ 48,349 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Mar. 31, 2024 CAD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,615,173,000 | $ 1,609,425,000 | |||
Long-term Debt | $ 1,588,061,000 | ||||
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% | ||||
2028 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 12.875% | 12.875% | 12.875% | 12.875% | |
Debt, face amount | $ 200,000,000 | ||||
Debt, maturity date | Oct. 01, 2028 | ||||
Net proceeds from issuance costs | $ 195,668,000 | ||||
2029 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 5.125% | 5.125% | 5.125% | ||
Debt, maturity date | Feb. 01, 2029 | ||||
German Joint RCF - EUR 370.1 Million | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 5.318% | 5.318% | 5.318% | ||
Line of credit, maximum borrowing capacity | € | € 370.1 | ||||
Debt, description of variable basis spread | Euribor | ||||
Long-term Debt | $ 163,246,000 | 151 | |||
Debt, amount of debt supporting bank guarantees | 14,662,000 | 13.6 | |||
Line of credit facility, remaining borrowing capacity | $ 222,234,000 | € 205.5 | |||
German Joint RCF - EUR 370.1 Million | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt, variable basis spread | 1.40% | ||||
German Joint RCF - EUR 370.1 Million | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt, variable basis spread | 2.35% | ||||
Interest rate margin subject to upward or downward adjustments | 0.05% | ||||
Canadian Joint RCF - C$160 Million | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 6.629% | 6.629% | 6.629% | ||
Line of credit, maximum borrowing capacity | $ 160 | ||||
Long-term Debt | $ 49,815,000 | 67.5 | |||
Line of credit facility, remaining borrowing capacity | 58,397,000 | 79.1 | |||
Line of credit, letters of credit outstanding, amount | $ 1,013,000 | $ 1.4 | |||
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 Secured Overnight Financing Rate (“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 dollar denominated 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% | ||||
Rosenthal Credit Facility - EUR 2.6 Million | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | € | € 2.6 | ||||
Debt, description of variable basis spread | three-month Euribor | ||||
Debt, variable basis spread | 2.50% | ||||
Debt, amount of debt supporting bank guarantees | $ 2,759,000 | € 2.6 | |||
Line of credit facility, remaining borrowing capacity | $ 0 |
Debt - Principal Maturities of
Debt - Principal Maturities of Senior Notes and Credit Arrangements (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Senior Notes and Credit Arrangements | |
2025 | $ 0 |
2026 | 300,000 |
2027 | 213,061 |
2028 | 200,000 |
2029 | 87,500 |
Thereafter | 0 |
Total payments | $ 1,588,061 |
Debt - Debt Redemption Period f
Debt - Debt Redemption Period for Senior Notes (Details) | 3 Months Ended |
Mar. 31, 2024 | |
2026 Senior Notes | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100% |
2028 Senior Notes | October 1, 2025 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 106.438% |
2028 Senior Notes | October 1, 2026 | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.219% |
2028 Senior Notes | October 1, 2027 and thereafter | |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 697 | $ 598 |
Interest cost | $ 980 | $ 1,166 |
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) |
Expected return on plan assets | $ (1,533) | $ (1,357) |
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) |
Amortization of unrecognized items | $ 124 | $ 128 |
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) |
Net benefit costs (gains) | $ 268 | $ 535 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 32 | 29 |
Interest cost | $ 117 | $ 123 |
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) |
Expected return on plan assets | $ 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) |
Amortization of unrecognized items | $ (207) | $ (241) |
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) |
Net benefit costs (gains) | $ (58) | $ (89) |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, employer discretionary contribution amount | $ 320 | $ 252 |
Multiemployer plan, contributions by employer | $ 521 | $ 523 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
U.S. Federal statutory rate | 21% | 21% |
Income tax recovery using U.S. Federal statutory rate on loss before income taxes | $ 4,844 | $ 7,546 |
Tax differential on foreign income (loss) | (587) | 1,318 |
Effect of foreign earnings | 0 | (525) |
Valuation allowance | (2,608) | (4,563) |
Tax benefit of partnership structure | 0 | 783 |
Non-taxable foreign subsidies | 590 | 694 |
True-up of prior year taxes | 1,236 | 4,886 |
Annual effective tax rate adjustment | 1,700 | (9,000) |
Non-taxable portion of capital gain | 1,460 | 0 |
Other, net | (270) | 4,217 |
Income tax recovery | 6,365 | 5,356 |
Current income tax provision | (7,061) | (4,588) |
Deferred income tax recovery | $ 13,426 | $ 9,944 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - $ / shares | 3 Months Ended | ||
May 09, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends Payable, Date Declared | Feb. 15, 2024 | ||
Dividends declared per common share | $ 0.075 | $ 0.075 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | ||
Shares outstanding | 0 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares available for grant | 700,000 | ||
Dividend Declared | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends Payable, Date Declared | May 09, 2024 | ||
Dividends declared per common share | $ 0.075 | ||
Dividends Payable, Date to be Paid | Jul. 03, 2024 | ||
Dividends Payable, Date of Record | Jun. 26, 2024 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Date Declared | Feb. 15, 2024 | |
Dividends declared per common share | $ 0.075 | $ 0.075 |
Amount | $ 5,014 | $ 4,982 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Share Activity - PSU's (Details) - Performance Share Units | 3 Months Ended |
Mar. 31, 2024 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding - Beginning | 3,672,227 |
Granted | 2,312,098 |
Vested and issued (in shares) | (324,854) |
Forfeited (in shares) | (807,974) |
Outstanding - Ending | 4,851,497 |
Net loss Per Common Share - Rec
Net loss Per Common Share - Reconciliation of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Net loss - basic and diluted | $ (16,703) | $ (30,578) |
Net loss per common share, basic | $ (0.25) | $ (0.46) |
Net loss per common share, diluted | $ (0.25) | $ (0.46) |
Basic, Weighted average number of common shares outstanding | 66,641,990 | 66,259,216 |
Diluted, Weighted average number of common shares outstanding | 66,641,990 | 66,259,216 |
Net Loss Per Common Share - R_2
Net Loss Per Common Share - Reconciliation of Basic and Diluted Net Loss Per Common Share (Parenthetical) (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | 34,699 |
Net Loss Per Common Share - Ant
Net Loss Per Common Share - Anti-Dilutive Instruments Excluded from Calculation of Net Loss Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Performance Share Units | ||
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per common share | 4,851,497 | 3,843,552 |
Restricted Stock | ||
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per common share | 54,227 | 34,699 |
RSUs | ||
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per common share | 0 | 50,000 |
Equity DSUs | ||
Net Income Per Common Share Basic And Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per common share | 44,914 | 11,554 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | $ 635,410 | $ 838,784 |
Other comprehensive income (loss), net of tax | (37,642) | 18,423 |
Disposal of investment in joint venture | (4,181) | |
Balance | 573,639 | 822,873 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (145,605) | (195,085) |
Other comprehensive income (loss) before reclassifications | (37,469) | 18,650 |
Amounts reclassified | 0 | 0 |
Other comprehensive income (loss), net of tax | (37,469) | 18,650 |
Balance | (183,074) | (176,435) |
Defined Benefit Pension and Other Post-Retirement Benefit Items | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | 18,934 | 15,123 |
Other comprehensive income (loss) before reclassifications | (90) | (114) |
Amounts reclassified | (83) | (113) |
Other comprehensive income (loss), net of tax | (173) | (227) |
Disposal of investment in joint venture | (4,181) | |
Balance | 14,580 | 14,896 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (126,671) | (179,962) |
Other comprehensive income (loss) before reclassifications | (37,559) | 18,536 |
Amounts reclassified | (83) | (113) |
Other comprehensive income (loss), net of tax | (37,642) | 18,423 |
Disposal of investment in joint venture | (4,181) | |
Balance | $ (168,494) | $ (161,539) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Other Receivable, after Allowance for Credit Loss, Related Party, Type [Extensible Enumeration] | us-gaap:RelatedPartyMember | us-gaap:RelatedPartyMember | |
MPR - CPP | |||
Related Party Transaction [Line Items] | |||
Related party transaction, purchases from related party | $ 19,707 | $ 26,797 | |
MPR - logging JV | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 50% | ||
Related party transaction, purchases from related party | $ 3,124 | $ 4,016 | |
Related party receivable (Payable) balance | $ 495 | $ 1,912 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) Mill | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of pulp mills | Mill | 4 | ||
Assets | $ 2,605,355 | $ 2,662,578 | |
Investment in joint ventures | 4,455 | 41,665 | |
Revenues | 553,430 | $ 522,666 | |
Goodwill | 34,616 | 35,381 | |
Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,678,375 | 1,727,851 | |
Revenues | 432,404 | 400,401 | |
Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Assets | 698,812 | 696,551 | |
Revenues | 119,023 | 121,014 | |
Goodwill | 35,381 | ||
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Assets | 228,168 | $ 238,176 | |
Revenues | 2,003 | 1,251 | |
Intersegment Eliminations | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Revenues | 160 | 374 | |
Intersegment Eliminations | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 9,722 | $ 11,155 |
Segment Information - Schedule
Segment Information - Schedule of Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 553,430 | $ 522,666 | |
Operating income (loss) | (448) | (20,121) | |
Depreciation and amortization | 40,404 | 47,591 | |
Total assets | 2,605,355 | $ 2,662,578 | |
Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 408,295 | 369,656 | |
Lumber | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 55,882 | 60,039 | |
Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 30,950 | 37,691 | |
Manufactured Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 16,713 | 5,804 | |
Pallets | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 28,020 | 36,175 | |
Biofuels | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 11,254 | 8,135 | |
Wood Residuals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,316 | 5,166 | |
Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 432,404 | 400,401 | |
Operating income (loss) | 17,447 | 12,771 | |
Depreciation and amortization | 27,373 | 27,399 | |
Total assets | 1,678,375 | 1,727,851 | |
Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 119,023 | 121,014 | |
Operating income (loss) | (13,706) | (27,069) | |
Depreciation and amortization | 12,811 | 19,898 | |
Total assets | 698,812 | 696,551 | |
Operating Segments | Pulp | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 408,295 | 369,656 | |
Operating Segments | Pulp | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Lumber | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Lumber | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 55,882 | 60,039 | |
Operating Segments | Energy and Chemicals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 24,109 | 30,745 | |
Operating Segments | Energy and Chemicals | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 4,838 | 5,695 | |
Operating Segments | Manufactured Products | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Manufactured Products | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 16,713 | 5,804 | |
Operating Segments | Pallets | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Pallets | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 28,020 | 36,175 | |
Operating Segments | Biofuels | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Biofuels | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 11,254 | 8,135 | |
Operating Segments | Wood Residuals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Operating Segments | Wood Residuals | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,316 | 5,166 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,003 | 1,251 | |
Operating income (loss) | (4,189) | (5,823) | |
Depreciation and amortization | 220 | 294 | |
Total assets | 228,168 | $ 238,176 | |
Corporate, Non-Segment | Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Corporate, Non-Segment | Lumber | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Corporate, Non-Segment | Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,003 | 1,251 | |
Corporate, Non-Segment | Manufactured Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 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 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 82,692 | 78,893 | |
United States | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 37,589 | 43,555 | |
United States | Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 44,195 | 35,056 | |
United States | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 908 | 282 | |
Germany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 133,741 | 168,819 | |
Germany | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 79,524 | 102,993 | |
Germany | Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 54,076 | 65,608 | |
Germany | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 141 | 218 | |
China | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 183,608 | 108,336 | |
China | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 182,799 | 107,122 | |
China | Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 809 | 1,214 | |
China | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 153,389 | 166,618 | |
Other Countries | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 132,492 | 146,731 | |
Other Countries | Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 19,943 | 19,136 | |
Other Countries | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 954 | 751 | |
Foreign Countries | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 470,738 | 443,773 | |
Foreign Countries | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 394,815 | 356,846 | |
Foreign Countries | Operating Segments | Solid Wood | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 74,828 | 85,958 | |
Foreign Countries | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 1,095 | $ 969 |
Segment Information - Schedul_2
Segment Information - Schedule of Results by Segment (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 34,616 | $ 35,381 |
Solid Wood | Wood Holdco GmbH | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 34,616 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,492,298 | $ 1,466,011 |
Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 213,061 | 208,585 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,279,237 | 1,257,426 |
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 Facility | ||
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 | 1,492,298 | 1,466,011 |
Fair Value, Significant Other Observable Inputs (Level 2) | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 213,061 | 208,585 |
Fair Value, Significant Other Observable Inputs (Level 2) | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,279,237 | 1,257,426 |
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 Facility | ||
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Accounts receivable | $ 368,466 | $ 306,166 |
Cash and cash equivalents | 274,272 | 313,992 |
Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value of senior notes, net of unamortized note issuance costs | $ 1,361,169 | $ 1,360,155 |