Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 19, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'merc | ' | ' |
Entity Registrant Name | 'MERCER INTERNATIONAL INC. | ' | ' |
Entity Central Index Key | '0001333274 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 55,853,704 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $364,166,150 |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents (Note 2) | $147,728 | $137,439 |
Receivables (Note 3) | 135,893 | 145,150 |
Inventories (Note 4) | 170,908 | 155,979 |
Prepaid expenses and other | 10,918 | 10,425 |
Deferred income tax (Note 9) | 6,326 | 5,887 |
Total current assets | 471,773 | 454,880 |
Long-term assets | ' | ' |
Property, plant and equipment (Note 5) | 1,038,631 | 1,066,506 |
Deferred note issuance and other | 20,998 | 16,036 |
Deferred income tax (Note 9) | 17,157 | 23,159 |
Total noncurrent assets | 1,076,786 | 1,105,701 |
Total assets | 1,548,559 | 1,560,581 |
Current liabilities | ' | ' |
Accounts payable and other (Note 6) | 103,814 | 118,599 |
Pension and other post-retirement benefit obligations (Note 8) | 1,330 | 1,072 |
Debt (Note 7) | 60,355 | 60,205 |
Total current liabilities | 165,499 | 179,876 |
Long-term liabilities | ' | ' |
Debt (Note 7) | 919,017 | 877,780 |
Interest rate derivative liability (Note17) | 46,517 | 66,819 |
Pension and other post-retirement benefit obligations (Note 8) | 35,466 | 42,378 |
Capital leases and other (Note 19) | 19,293 | 18,375 |
Deferred income tax (Note 9) | 14,450 | 7,591 |
Total long-term liabilities | 1,034,743 | 1,012,943 |
Total liabilities | 1,200,242 | 1,192,819 |
Shareholders' equity | ' | ' |
Share capital (Note 10) | 328,549 | 327,818 |
Paid-in capital | -11,756 | -4,481 |
Retained earnings | 10,815 | 37,190 |
Accumulated other comprehensive income (Note 14) | 31,470 | 28,577 |
Total shareholders' equity | 359,078 | 389,104 |
Noncontrolling interest (deficit) (Note 15) | -10,761 | -21,342 |
Total equity | 348,317 | 367,762 |
Total liabilities and equity | 1,548,559 | 1,560,581 |
Commitments and contingencies (Note 20) | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Pulp | $996,187 | $979,770 | $1,157,206 |
Energy and chemicals | 92,198 | 92,966 | 94,758 |
Total revenues | 1,088,385 | 1,072,736 | 1,251,964 |
Costs and expenses | ' | ' | ' |
Operating costs | 920,832 | 886,144 | 965,723 |
Operating depreciation and amortization | 78,309 | 74,302 | 77,611 |
Gross profit | 89,244 | 112,290 | 208,630 |
Selling, general and administrative expenses | 51,169 | 49,268 | 53,965 |
Restructuring expenses (Note 13) | 6,415 | 0 | 0 |
Operating income | 31,660 | 63,022 | 154,665 |
Other income (expense) | ' | ' | ' |
Interest expense | -69,156 | -71,767 | -82,114 |
Gain (loss) on derivative instruments (Note 17) | 19,709 | 4,812 | -1,974 |
Other income (expense) | 1,215 | -179 | 3,625 |
Total other income (expense) | -48,232 | -67,134 | -80,463 |
Income (loss) before income taxes | -16,572 | -4,112 | 74,202 |
Income tax benefit (provision) - current | 2,286 | -9,531 | -2,341 |
Income tax benefit (provision) - deferred | -11,482 | 152 | 3,309 |
Net income (loss) | -25,768 | -13,491 | 75,170 |
Less: net income attributable to noncontrolling interest | -607 | -2,179 | -5,471 |
Net income (loss) attributable to common shareholders | ($26,375) | ($15,670) | $69,699 |
Net income (loss) per share attributable to common shareholders (Note 12) | ' | ' | ' |
Basic | ($0.47) | ($0.28) | $1.39 |
Diluted | ($0.47) | ($0.28) | $1.24 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Net income (loss) | ($25,768) | ($13,491) | $75,170 |
Other comprehensive income (loss), net of taxes | ' | ' | ' |
Foreign currency translation adjustment (net of tax effect of ($1,002), ($454), $951) | -1,733 | 11,635 | -19,394 |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | 4,636 | -808 | -11,203 |
Change in unrealized gains (losses) on marketable securities (net of tax effect of $nil in all years) | -10 | -1 | -17 |
Other comprehensive income (loss), net of taxes | 2,893 | 10,826 | -30,614 |
Total comprehensive income (loss) | -22,875 | -2,665 | 44,556 |
Comprehensive income attributable to noncontrolling interest | -607 | -2,179 | -5,471 |
Comprehensive income (loss) attributable to common shareholders | ($23,482) | ($4,844) | $39,085 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Foreign currency translation adjustment, tax effect | ($1,002) | ($454) | $951 |
Change in unrecognized losses and prior service costs related to defined benefit plans, tax effect | 0 | 0 | 0 |
Change in unrealized gains (losses) on marketable securities, tax effect | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Parent [Member] | Common Shares [Member] | Par Value [Member] | Amount Paid In Excess Of Par Value [Member] | Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest (Deficit) [Member] | Total |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2010 | $314,974 | ' | $42,785 | $242,840 | ($4,550) | ($14,466) | $48,365 | ($28,992) | $285,982 |
Balance (in shares) at Dec. 31, 2010 | ' | 42,999,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued on grants of restricted shares | 0 | ' | 98 | 386 | -484 | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | ' | 238,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued on grants of performance shares | 0 | ' | 358 | 5,315 | -5,673 | 0 | 0 | 0 | 0 |
Shares issued on grants of performance shares (in shares) | ' | 358,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued on conversion of convertible notes | 43,289 | ' | 13,447 | 29,842 | 0 | 0 | 0 | 0 | 43,289 |
Shares issued on conversion of convertible notes (in shares) | ' | 13,447,000 | ' | ' | ' | ' | ' | ' | ' |
Treasury shares retired | -10,623 | ' | -1,263 | -6,987 | 0 | -2,373 | 0 | 0 | -10,623 |
Treasury shares retired (in shares) | ' | -1,263,000 | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 4,607 | ' | 0 | 0 | 4,607 | 0 | 0 | 0 | 4,607 |
Net income (loss) | 69,699 | ' | 0 | 0 | 0 | 69,699 | 0 | 5,471 | 75,170 |
Foreign currency translation adjustments | -19,394 | ' | 0 | 0 | 0 | 0 | -19,394 | 0 | -19,394 |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | -11,203 | ' | 0 | 0 | 0 | 0 | -11,203 | 0 | -11,203 |
Change in unrealized losses on marketable securities | -17 | ' | 0 | 0 | 0 | 0 | -17 | 0 | -17 |
Balance at Dec. 31, 2011 | 391,332 | ' | 55,425 | 271,396 | -6,100 | 52,860 | 17,751 | -23,521 | 367,811 |
Balance (in shares) at Dec. 31, 2011 | ' | 55,779,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issued on grants of restricted shares | 0 | ' | 78 | 919 | -997 | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | ' | 37,000 | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 2,616 | ' | 0 | 0 | 2,616 | 0 | 0 | 0 | 2,616 |
Net income (loss) | -15,670 | ' | 0 | 0 | 0 | -15,670 | 0 | 2,179 | -13,491 |
Foreign currency translation adjustments | 11,635 | ' | 0 | 0 | 0 | 0 | 11,635 | 0 | 11,635 |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | -808 | ' | 0 | 0 | 0 | 0 | -808 | 0 | -808 |
Change in unrealized losses on marketable securities | -1 | ' | 0 | 0 | 0 | 0 | -1 | 0 | -1 |
Balance at Dec. 31, 2012 | 389,104 | ' | 55,503 | 272,315 | -4,481 | 37,190 | 28,577 | -21,342 | 367,762 |
Balance (in shares) at Dec. 31, 2012 | ' | 55,816,000 | ' | ' | ' | ' | ' | ' | 55,815,704 |
Shares issued on grants of restricted shares | 0 | ' | 77 | 654 | -731 | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | ' | 38,000 | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | 3,574 | ' | 0 | 0 | 3,574 | 0 | 0 | 0 | 3,574 |
Net income (loss) | -26,375 | ' | 0 | 0 | 0 | -26,375 | 0 | 607 | -25,768 |
Foreign currency translation adjustments | -1,733 | ' | 0 | 0 | 0 | 0 | -1,733 | 0 | -1,733 |
Noncontrolling interest decrease from purchase of interest | ' | ' | 0 | 0 | ' | 0 | 0 | 9,974 | 9,974 |
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | -10,118 | ' | ' | ' | -10,118 | ' | ' | ' | 10,118 |
Net Change In Equity Purchase of Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | -144 |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | 4,636 | ' | 0 | 0 | 0 | 0 | 4,636 | 0 | 4,636 |
Change in unrealized losses on marketable securities | -10 | ' | 0 | 0 | 0 | 0 | -10 | 0 | -10 |
Balance at Dec. 31, 2013 | $359,078 | ' | $55,580 | $272,969 | ($11,756) | $10,815 | $31,470 | ($10,761) | $348,317 |
Balance (in shares) at Dec. 31, 2013 | ' | 55,854,000 | ' | ' | ' | ' | ' | ' | 55,853,704 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' |
Noncontrolling interest change in ownership parent | 8.10% |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from (used in) operating activities | ' | ' | ' |
Net income (loss) | ($25,768) | ($13,491) | $75,170 |
Adjustments to reconcile net income (loss) to cash flows from operating activities | ' | ' | ' |
Unrealized loss (gain) on derivative instruments | -21,494 | -3,186 | 1,974 |
Depreciation and amortization | 78,645 | 74,657 | 77,952 |
Deferred income taxes | 11,482 | -152 | -3,309 |
Stock compensation expense | 3,574 | 2,616 | 4,607 |
Pension and other post-retirement expense, net of funding | 648 | 365 | -374 |
Other | 3,169 | 4,991 | 1,116 |
Changes in working capital | ' | ' | ' |
Receivables | 13,993 | 10,795 | -2,233 |
Inventories | -14,563 | 1,726 | -24,654 |
Accounts payable and accrued expenses | -11,569 | -17,992 | 19,837 |
Other | -1,792 | -1,214 | 4,490 |
Net cash from (used in) operating activities | 36,325 | 59,115 | 154,576 |
Cash flows from (used in) investing activities | ' | ' | ' |
Purchase of property, plant and equipment | -45,707 | -47,203 | -52,626 |
Proceeds on sale of property, plant and equipment | 739 | 840 | 1,132 |
Purchase of marketable securities | 0 | 0 | -16,343 |
Proceeds on maturity of marketable securities | 0 | 15,753 | 0 |
Note receivable | 0 | 0 | 3,988 |
Net cash from (used in) investing activities | -44,968 | -30,610 | -63,849 |
Cash flows from (used in) financing activities | ' | ' | ' |
Repayment of debt and purchase of notes | -56,416 | -35,440 | -67,702 |
Proceeds from issuance of notes and borrowings of debt | 74,472 | 0 | 0 |
Repayment of capital lease obligations | -2,593 | -2,733 | -4,095 |
Proceeds from (repayment of) credit facilities, net | -5,640 | 6,031 | -20,491 |
Payment of note issuance costs | -3,855 | -2,570 | 0 |
Proceeds from government grants | 9,265 | 5,045 | 20,049 |
Purchase of treasury shares | 0 | 0 | -10,623 |
Net cash from (used in) financing activities | 15,233 | -29,667 | -82,862 |
Effect of exchange rate changes on cash and cash equivalents | 3,699 | 2,302 | -4,166 |
Net increase (decrease) in cash and cash equivalents | 10,289 | 1,140 | 3,699 |
Cash and cash equivalents, beginning of period | 137,439 | 136,299 | 132,600 |
Cash and cash equivalents, end of period | 147,728 | 137,439 | 136,299 |
Cash paid during the period for | ' | ' | ' |
Interest | 65,747 | 66,673 | 80,347 |
Income taxes | 7,307 | 5,003 | 4,450 |
Supplemental schedule of non-cash investing and financing activities | ' | ' | ' |
Acquisition of production and other equipment under capital lease obligations | 2,112 | 2,648 | 3,872 |
Increase (decrease) in accounts payable and accrued purchases for property, plant and equipment | -5,712 | 7,986 | 451 |
Increase (decrease) in receivables of government grants for long-term assets | $2,871 | ($3,291) | ($9,514) |
The_Company_And_Summary_Of_Sig
The Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
The Company And Summary Of Significant Accounting Policies [Abstract] | ' |
The Company And Summary Of Significant Accounting Policies | ' |
Note 1. The Company and Summary of Significant Accounting Policies | |
Background | |
Mercer International Inc. ("Mercer Inc." or the "Company") is a Washington corporation and the Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Market and the Toronto Stock Exchange. | |
Mercer Inc. operates three pulp manufacturing facilities, one in Canada and two in Germany, and is one of the largest producers of market northern bleached softwood kraft ("NBSK") pulp in the world. | |
In these Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("$" or "U.S. dollar"). The symbol "€" refers to the Euro and the symbol "C$" refers to Canadian dollars. | |
Basis of Presentation | |
These Consolidated Financial Statements contained herein include the accounts of the Company and its wholly-owned and majority-owned subsidiaries (collectively, the "Company"). The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant inter-company balances and transactions have been eliminated upon consolidation. | |
Effective October 1, 2013, the Company changed its reporting currency from the Euro to the U.S. dollar, to enhance communication and understanding with its shareholders, analysts and other stakeholders and improve comparability of the Company's financial information with its competitors and peer group companies. With the change in reporting currency, all comparative financial information has been restated from Euros to U.S. dollars to reflect the Company's consolidated financial statements as if it had been historically reported in U.S. dollars, consistent with the Company's currency translation policy described below in Foreign Operations and Currency Translation. | |
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, doubtful accounts and reserves, depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, derivative financial instruments, legal liabilities, asset retirement obligations, pensions and post-retirement benefit obligations, income taxes, contingencies and inventory obsolescence and provisions. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. | |
Investments | |
Investments in debt securities and equity investments in publicly traded companies in which the Company does not exercise significant influence are classified as available-for-sale securities. These securities are reported at fair values; based upon quoted market prices, with the unrealized gains or losses included in accumulated other comprehensive income as a separate component of shareholders' equity, until realized. If a loss in value in available-for-sale securities is considered to be other than temporary, the loss is recognized in the determination of net income. The cost of all securities sold is based on the specific identification method to determine realized gains or losses. | |
Note 1. The Company and Summary of Significant Accounting Policies (continued) | |
Inventories | |
Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value. Other materials and spare parts are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include both roundwood (logs) and wood chips. These inventories are located both at the pulp mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of roundwood and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. | |
Property, Plant and Equipment | |
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. Buildings are depreciated over 10 to 50 years and production equipment and other primarily over 25 years. | |
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. To determine recoverability, the Company compares the carrying value of the assets to the estimated future undiscounted cash flows. Measurement of an impairment loss for long-lived assets held for use is based on the fair value of the asset. | |
The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant, and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is charged to operations as incurred. | |
Leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item are capitalized at the present value of the minimum lease payments. Capital leases are depreciated over the lease term. Operating lease payments are recognized as an expense in the Consolidated Statement of Operations on a straight-line basis over the lease term. | |
The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. Obligations are recorded as a liability at fair value, with a corresponding increase to property, plant, and equipment, and are amortized over the remaining useful life of the related assets. The liability is accreted using a risk-free interest rate. | |
Government Grants | |
The Company records investment grants from federal and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the asset costs in the Consolidated Balance Sheet. | |
Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company's normal business operations, and are reported as a reduction of related expenses in the Consolidated Statement of Operations when received. | |
Note 1. The Company and Summary of Significant Accounting Policies (continued) | |
The Company is required to pay certain fees based on water consumption levels at its German mills. Accrued fees can be reduced upon the mills' demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. | |
To the extent that government grants have been received and not applied, these grants are recorded in cash with a corresponding adjustment to accounts payable and other in the Consolidated Balance Sheet due to the short-term nature of the related payments. | |
Deferred Note Issuance Costs | |
Note issuance costs are deferred and amortized as a component of interest expense in the Consolidated Statement of Operations over the term of the related debt instrument. | |
Pensions | |
The Company maintains a defined benefit pension plan for its salaried employees at its Celgar mill which is funded and non-contributory. The cost of the benefits earned by the salaried employees is determined using the projected benefit method prorated on services. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10% of the greater of the accrued benefit obligation and the fair value of plan assets as of the beginning of the period. The Company recognizes the net funded status of the plan. | |
In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are charged against earnings in the Consolidated Statement of Operations. | |
Foreign Operations and Currency Translation | |
The Company translates foreign assets and liabilities of its subsidiaries, other than those denominated in U.S. dollars, at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the year. Transaction gains and losses related to net assets primarily located in Canada and Germany are recognized as unrealized foreign currency translation adjustments within accumulated other comprehensive income in shareholders' equity, until all of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax when the Company expects earnings of the foreign subsidiary to be indefinitely reinvested. The income tax effect on currency translation adjustments related to foreign subsidiaries that are not considered indefinitely reinvested is recorded as a component of deferred taxes in the Consolidated Balance Sheet with an offset to other comprehensive income. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in costs and expenses in the Consolidated Statement of Operations. Where inter-company loans are of a long-term investment nature, the after-tax effect of exchange rate changes are included as an unrealized foreign currency translation adjustment within accumulated other comprehensive income in shareholders' equity. | |
Note 1. The Company and Summary of Significant Accounting Policies (continued) | |
Revenue and Related Cost Recognition | |
The Company recognizes revenue from product, transportation, chemical and other sales when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, title of ownership and risk of loss have passed to the customer and collectability is reasonably assured. Sales are reported net of discounts and allowances. | |
Amounts charged to customers for shipping and handling are recognized as revenue in the Consolidated Statement of Operations. Shipping and handling costs incurred by the Company are included in operating costs in the Consolidated Statement of Operations. | |
The Company reports revenue from sales of surplus electricity and the sale of chemicals as energy and chemical revenues in the Consolidated Statement of Operations. Energy revenues are recognized as the electricity is consumed by customers and when collection is reasonably assured. These revenues include an estimate of the value of electricity transferred to customers in the year but billed subsequent to year-end. Customer bills are based on agreed upon rates and meter readings that indicate electricity consumption. | |
Stock-Based Compensation | |
The Company recognizes stock-based compensation expense over an award's vesting period based on the award's fair value in selling, general, and administrative expenses within the Consolidated Statement of Operations. | |
The fair value of performance share units is re-measured at each balance sheet date by multiplying the market price of a share of Mercer Inc. common shares by the expected number of common shares to be awarded. The cumulative effect of the change in fair value is recognized in the period of the change as an adjustment to compensation cost. The Company estimates forfeitures of performance share units based on management's expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. | |
The fair value of restricted share awards is determined by multiplying the market price of a share of Mercer Inc. common shares on the grant date by the number of units granted. | |
Income Taxes | |
Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. | |
Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all current deferred tax liabilities and assets are offset and presented as a single net amount and all noncurrent deferred tax liabilities and assets are offset and presented as a single net amount. | |
Note 1. The Company and Summary of Significant Accounting Policies (continued) | |
Derivative Financial Instruments | |
The Company occasionally enters into derivative financial instruments, including foreign currency forward contracts, electricity forward contracts, interest rate swaps, and pulp price swaps to limit exposures to changes in foreign currency exchange rates, energy prices, interest rates, and pulp prices. These derivative instruments are not designated as hedging instruments. The change in fair value of electricity derivative contracts is included in operating costs in the Consolidated Statement of Operations and any changes in the fair value of foreign currency, interest rate, and pulp price derivative contracts are recognized in gain (loss) on derivative instruments in the Consolidated Statement of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. | |
Net Income (Loss) Per Share Attributable to Common Shareholders | |
Basic net income (loss) per share attributable to common shareholders ("EPS") is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted income (loss) per share attributable to common shareholders is calculated to give effect to all potentially dilutive common shares outstanding by applying the "Treasury Stock" and "If-Converted" methods. Outstanding stock options, restricted shares, performance shares, performance share units, and convertible notes represent the only potentially dilutive effects on the Company's weighted average shares. | |
New Accounting Standards | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent's investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a step acquisition for a foreign entity. The update does not change the requirement to release a pro-rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. The amendments are effective for interim and annual periods beginning after December 15, 2013 and will not have an impact on the Company's consolidated financial statements unless one or more of the derecognition events stated above occur after the effective date. | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss ("NOL") carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The amendments are effective for interim and annual periods beginning after December 15, 2013. The Company has determined these changes will not have a material impact on the consolidated financial statements. | |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Cash and Cash Equivalents [Abstract] | ' | |||||
Cash and Cash Equivalents | ' | |||||
Note 2. Cash and Cash Equivalents | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Cash and cash equivalents | $ | 147,728 | $ | 137,439 | ||
Cash and cash equivalents includes cash allocated for debt service reserves and for a capital project as required under certain debt agreements (see Note 7(a)(d) – Debt). | ||||||
Receivables
Receivables | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Receivables [Abstract] | ' | |||||
Receivables | ' | |||||
Note 3. Receivables | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Sale of pulp, energy and chemicals, net of allowance | ||||||
of $178 (2012 – $148) | $ | 124,579 | $ | 133,764 | ||
Value added tax | 4,545 | 5,656 | ||||
Other non-trade receivables | 6,769 | 5,730 | ||||
$ | 135,893 | $ | 145,150 | |||
The Company reviews the collectability of receivables at each reporting date. The Company maintains an allowance for doubtful accounts at an amount estimated to cover the potential losses on certain uninsured receivables. Any amounts that are determined to be uncollectible and uninsured are offset against the allowance. The allowance is based on the Company's evaluation of numerous factors, including the payment history and financial position of the debtors. For certain customers the Company receives a letter of credit prior to shipping its product. | ||||||
Inventories
Inventories | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Inventories [Abstract] | ' | |||||
Inventories | ' | |||||
Note 4. Inventories | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Raw materials | $ | 66,356 | $ | 60,688 | ||
Finished goods | 54,982 | 50,326 | ||||
Spare parts and other | 49,570 | 44,965 | ||||
$ | 170,908 | $ | 155,979 | |||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment | ' | |||||
Note 5. Property, Plant and Equipment | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Land | $ | 34,421 | $ | 33,210 | ||
Buildings | 194,676 | 177,198 | ||||
Production equipment and other | 1,570,196 | 1,536,415 | ||||
1,799,293 | 1,746,823 | |||||
Less: accumulated depreciation | -760,662 | -680,317 | ||||
$ | 1,038,631 | $ | 1,066,506 | |||
As at December 31, 2013, property, plant and equipment was net of $365,359 of unamortized government investment grants (2012 – $364,849). | ||||||
As at December 31, 2013, included in production equipment and other is equipment under capital leases which had gross amounts of $20,550 (2012 – $21,710), and accumulated depreciation of $9,447 (2012 – $11,042). During the year, production equipment and other totalling $2,112 was acquired under capital lease obligations (2012 – $2,648; 2011 – $3,872). | ||||||
The Company maintains industrial landfills on its premises for the disposal of waste, primarily from the mills' pulp processing activities. The mills have obligations under their landfill permits to decommission these disposal facilities pursuant to certain regulations. As at December 31, 2013, the Company had recorded $5,549 (2012 – $5,605) of asset retirement obligations in capital leases and other in the Consolidated Balance Sheet. | ||||||
Accounts_Payable_and_Other
Accounts Payable and Other | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Accounts Payable and Other [Abstract] | ' | |||||
Accounts Payable and Other | ' | |||||
Note 6. Accounts Payable and Other | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Trade payables | $ | 44,289 | $ | 39,896 | ||
Accrued expenses | 39,060 | 47,271 | ||||
Accrued interest | 10,697 | 11,522 | ||||
Capital leases, current portion (Note 19) | 2,254 | 2,582 | ||||
Current taxes payable (Note 9) | 1,132 | 9,516 | ||||
Other | 6,382 | 7,812 | ||||
$ | 103,814 | $ | 118,599 | |||
Debt
Debt | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Debt [Abstract] | ' | |||||
Debt | ' | |||||
Note 7. Debt | ||||||
Debt consists of the following: | ||||||
December 31, | ||||||
2013 | 2012 | |||||
Note payable to bank, included in a total loan credit facility of €828.0 | ||||||
million to finance the construction related to the Stendal mill (a) | $ | 568,945 | $ | 597,158 | ||
Senior notes, interest at 9.50% accrued and payable semi-annually, | ||||||
unsecured (b) | 336,382 | 284,361 | ||||
Credit agreement with a lender with respect to a revolving credit facility | ||||||
of C$40.0 million (c) | - | 6,031 | ||||
Term bank facility for a project at the Stendal mill of €17.0 million (d) | 21,179 | - | ||||
Loans payable to the noncontrolling shareholder of the Stendal mill (e) | 52,117 | 48,283 | ||||
Investment loan agreement with a lender with respect to a project at | ||||||
the Rosenthal mill of €4.4 million (f) | 749 | 2,152 | ||||
Credit agreement with a bank with respect to a revolving credit facility | ||||||
of €25.0 million (g) | - | - | ||||
Credit agreement with a bank with respect to a revolving credit facility | ||||||
of €5.0 million (h) | - | - | ||||
979,372 | 937,985 | |||||
Less: current portion | -60,355 | -60,205 | ||||
Debt, less current portion | $ | 919,017 | $ | 877,780 | ||
As of December 31, 2013, the maturities of debt are as follows: | ||||||
Matures | Amount | |||||
2014 | $ | 60,355 | ||||
2015 | 65,566 | |||||
2016 | 65,566 | |||||
2017 | 787,885 | |||||
2018 | - | |||||
Thereafter | - | |||||
$ | 979,372 | |||||
Certain of the Company's debt instruments were issued under an indenture which, among other things, restricts its ability and the ability of its restricted subsidiaries to make certain payments. These limitations are subject to specific exceptions. As at December 31, 2013, the Company was in compliance with the terms of the indenture. | ||||||
(a)Note payable to bank, included in a total loan facility of €828.0 million to finance the construction related to the Stendal mill ("Stendal Loan Facility"), interest at rates varying from Euribor plus 0.90% to Euribor plus 1.80% (rates on amounts of borrowing at December 31, 2013 range from 1.39% to 2.14%), principal due in required installments beginning September 30, 2006 until September 30, 2017, collateralized by the gross assets of the Stendal mill, with 48% and 32% guaranteed by the Federal Republic of Germany and the State of Saxony-Anhalt, respectively, of up to €352.9 million of the outstanding principal, subject to a debt service reserve account ("DSRA") for purposes of paying amounts due in the following 12 months under the terms of the Stendal Loan Facility; payment of dividends is only permitted if certain cash flow requirements are met. See Note 17 – Derivative Transactions for a discussion of the Company's variable-to-fixed interest rate swap that was put in place to effectively fix the interest rate on the Stendal Loan Facility. | ||||||
Note 7. Debt (continued) | ||||||
On March 13, 2009, the Company finalized an agreement with its lenders to amend its Stendal Loan Facility. The amendment deferred approximately €164.0 million of scheduled principal payments until the maturity date, September 30, 2017. The amendment also provided for a 100% cash sweep, referred to as the "Cash Sweep", of any cash, in excess of a €15.0 million working capital reserve and the Guarantee Amount, as discussed in Note 20(b) – Commitments and Contingencies, and other amounts as contemplated in the amendment, held by Stendal which will be used first to fund the DSRA to a level sufficient to service the amounts due and payable under the Stendal Loan Facility during the then following 12 months, which means the DSRA is "Fully Funded", and second to prepay the deferred principal amounts. As at December 31, 2013, the DSRA balance was €33.0 million and was not Fully Funded. | ||||||
On September 30, 2013, the Company amended the terms of the Stendal Loan Facility and Project Blue Mill facility (the "Facilities") (Note 7(d)). The amendment included waiving compliance with the annual debt service cover ratio and the senior debt cover ratio under the Facilities until and including December 31, 2013; amending the senior debt cover ratio so that it now deducts the DSRA and other specified cash above a stipulated threshold in the calculation of senior debt; providing that a failure to satisfy the annual debt service cover ratio under the Facilities would only be an event of default when amounts in the DSRA plus certain cash reserves are below a specified threshold; and revising the calculation of amounts required to cure a senior debt cover ratio default. Pursuant to the amended agreement the Company made a capital investment of $20,000 in Stendal. See Note 15 – Noncontrolling Interest for details of the investment. | ||||||
(b)On November 17, 2010, the Company completed a private offering of $300,000 in aggregate principal amount of senior notes due 2017 ("Senior Notes"). The Senior Notes were issued at a price of 100% of their principal amount. The Senior Notes will mature on December 1, 2017 and bear interest at 9.50% which is accrued and payable semi-annually. | ||||||
In July 2013, the Company issued $50,000 in aggregate principal amount of its Senior Notes. The additional notes were priced at 104.50% plus accrued interest from June 1, 2013. The net proceeds from the offering were $50,500, after deducting the underwriter's discounts, offering expenses and accrued interest. The Company used the net proceeds from the offering to repay the revolving credit facilities of the Rosenthal and Celgar mills and for general corporate purposes. | ||||||
The Senior Notes are general unsecured senior obligations of the Company. The Senior Notes rank equal in right of payment with all existing and future senior unsecured indebtedness of the Company and senior in right of payment to any current or future subordinated indebtedness of the Company. The Senior Notes are effectively junior in right of payment to all borrowings of the Company's restricted subsidiaries, including borrowings under the Company's credit agreements which are secured by certain assets of its restricted subsidiaries. | ||||||
The Company may redeem all or a part of the Senior Notes, upon not less than 30 days' or more than 60 days' notice, at the redemption prices (expressed as percentages of principal amount) equal to 104.75% for the twelve month period beginning on December 1, 2014, 102.38% for the twelve month period beginning on December 1, 2015, and 100.00% beginning on December 1, 2016 and at any time thereafter, plus accrued and unpaid interest. | ||||||
(c)Credit agreement with respect to a revolving credit facility of up to C$40.0 million for the Celgar mill. The credit facility matures May 2016. Borrowings under the credit facility are collateralized by the mill's inventory and receivables and are restricted by a borrowing base calculated on the mill's inventory and receivables. Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.75% or Canadian prime plus 0.25%. U.S. dollar denominated amounts bear interest at LIBOR plus 1.75% or U.S. base plus 0.25%. As at December 31, 2013, C$1.7 million of this facility was supporting letters of credit and approximately C$33.3 million was available. | ||||||
Note 7. Debt (continued) | ||||||
(d)A €17.0 million amortizing term facility to partially finance a project, referred to as "Project Blue Mill". The facility, 80% of which is guaranteed by the State of Saxony-Anhalt, bears interest at a rate of Euribor plus 3.5% per annum. The interest period for the facility, at the choice of the Company, will be of one, three or six months duration and interest is paid on the last day of the interest period selected. The facility, together with accrued interest, is scheduled to mature in September 2017. The facility will be repaid semi-annually, commencing September 30, 2013, is collateralized by the gross assets of the Stendal mill, and will be non-recourse to Mercer Inc. As at December 31, 2013, the facility was accruing interest at a rate of 3.84%. | ||||||
As part of this term facility, the Company was required to open an investment account with the lender for the purpose of managing project costs and is required to deposit all funding associated with Project Blue Mill in this account. As at December 31, 2013, the balance in the investment account was $2,618. | ||||||
(e)Loans of €26.8 million payable by the Stendal mill to its noncontrolling shareholder bear interest at a rate of 1.00% per annum and are due in 2017, provided that the Project Blue Mill facility (Note 7(d)) and the Stendal Loan Facility (Note 7(a)) have been fully repaid on such date. The loans are unsecured, subordinated to all liabilities of the Stendal mill, non-recourse to the Company and its restricted subsidiaries. One of the loans, which has a principal amount of €0.4 million, may be repaid prior to October 1, 2017 if the DSRA has been Fully Funded for the first time and this loan is subordinated to all liabilities of the Stendal mill only until such time as the DSRA is Fully Funded for the first time. | ||||||
As at December 31, 2013, accrued interest on these loans was €11.1 million (2012 – €9.9 million). | ||||||
(f)A four-year amortizing investment loan agreement with a lender relating to the wash press project at the Rosenthal mill with a total facility of €4.4 million bearing interest at the rate of Euribor plus 2.75% that matures February 2014. Borrowings under this agreement are secured by the wash press equipment. As at December 31, 2013, the balance outstanding was accruing interest at a rate of 3.09%. | ||||||
(g)A €25.0 million working capital facility at the Rosenthal mill that matures in October 2016. Borrowings under the facility are collateralized by the mill's inventory and receivables and bear interest at Euribor plus 3.50%. As at December 31, 2013, approximately €0.6 million of this facility was supporting bank guarantees leaving approximately €24.4 million available. | ||||||
(h) | A €5.0 million facility at the Rosenthal mill that matures in December 2015. Borrowings under this facility bear interest at the rate of the three-month Euribor plus 3.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2013 approximately €1.1 million of this facility was supporting bank guarantees leaving approximately €3.9 million available. | |||||
Pension_and_Other_PostRetireme
Pension and Other Post-Retirement Benefit Obligations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ' | |||||||||||
Pension and Other Post-Retirement Benefit Obligations | ' | |||||||||||
Note 8. Pension and Other Post-Retirement Benefit Obligations | ||||||||||||
Included in pension and other post-retirement benefit obligations are amounts related to the Company's Celgar and Rosenthal mills. The largest component of this obligation is with respect to the Celgar mill which maintains a defined benefit pension plan and post-retirement benefit plans for certain employees ("Celgar Plans"). | ||||||||||||
Pension benefits are based on employees' earnings and years of service. The Celgar Plans are funded by contributions from the Company based on actuarial estimates and statutory requirements. Pension contributions during the year ended December 31, 2013 totaled $2,878 (2012 – $2,941). | ||||||||||||
Effective December 31, 2008, the defined benefit plan was closed to new members. In addition, the defined benefit service accrual ceased on December 31, 2008, and members began to receive pension benefits, at a fixed contractual rate, under a new defined contribution plan effective January 1, 2009. During the year ended December 31, 2013, the Company made contributions of $773 (2012 – $795) to this plan. | ||||||||||||
Information about the Celgar Plans, in aggregate for the year ended December 31, 2013 is as follows: | ||||||||||||
2013 | ||||||||||||
Pension | Other Post-Retirement Benefit Obligations | Total | ||||||||||
Change in benefit obligation | ||||||||||||
Benefit obligation, December 31, 2012 | $ | 48,639 | $ | 28,314 | $ | 76,953 | ||||||
Service cost | 137 | 753 | 890 | |||||||||
Interest cost | 1,836 | 1,108 | 2,944 | |||||||||
Benefit payments | -2,772 | -767 | -3,539 | |||||||||
Special termination benefits | 277 | - | 277 | |||||||||
Actuarial losses (gains) | -1,472 | 943 | -529 | |||||||||
Foreign currency exchange rate changes | -3,079 | -1,893 | -4,972 | |||||||||
Benefit obligation, December 31, 2013 | 43,566 | 28,458 | 72,024 | |||||||||
Reconciliation of fair value of plan assets | ||||||||||||
Fair value of plan assets, December 31, 2012 | 33,647 | - | 33,647 | |||||||||
Actual returns | 4,686 | - | 4,686 | |||||||||
Contributions | 2,111 | 767 | 2,878 | |||||||||
Benefit payments | -2,772 | -767 | -3,539 | |||||||||
Foreign currency exchange rate changes | -2,300 | - | -2,300 | |||||||||
Fair value of plan assets, December 31, 2013 | 35,372 | - | 35,372 | |||||||||
Funded status, December 31, 2013 (1) | $ | -8,194 | $ | -28,458 | $ | -36,652 | ||||||
Components of the net benefit cost recognized | ||||||||||||
Service cost | $ | 137 | $ | 753 | $ | 890 | ||||||
Interest cost | 1,836 | 1,108 | 2,944 | |||||||||
Expected return on plan assets | -2,133 | - | -2,133 | |||||||||
Special termination benefits | 277 | - | 277 | |||||||||
Amortization of unrecognized items | 1,439 | 116 | 1,555 | |||||||||
Net benefit costs | $ | 1,556 | $ | 1,977 | $ | 3,533 | ||||||
(1)The total of $36,796 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation. | ||||||||||||
Note 8. Pension and Other Post-Retirement Benefit Obligations (continued) | ||||||||||||
Information about the Celgar Plans, in aggregate for the year ended December 31, 2012 is as follows: | ||||||||||||
2012 | ||||||||||||
Pension | Other Post-Retirement Benefit Obligations | Total | ||||||||||
Change in benefit obligation | ||||||||||||
Benefit obligation, December 31, 2011 | $ | 46,413 | $ | 25,681 | $ | 72,094 | ||||||
Service cost | 144 | 725 | 869 | |||||||||
Interest cost | 1,961 | 1,126 | 3,087 | |||||||||
Benefit payments | -2,449 | -777 | -3,226 | |||||||||
Actuarial losses (gains) | 1,534 | 980 | 2,514 | |||||||||
Foreign currency exchange rate changes | 1,036 | 579 | 1,615 | |||||||||
Benefit obligation, December 31, 2012 | 48,639 | 28,314 | 76,953 | |||||||||
Reconciliation of fair value of plan assets | ||||||||||||
Fair value of plan assets, December 31, 2011 | 30,789 | - | 30,789 | |||||||||
Actual returns | 2,449 | - | 2,449 | |||||||||
Contributions | 2,164 | 777 | 2,941 | |||||||||
Benefit payments | -2,449 | -777 | -3,226 | |||||||||
Foreign currency exchange rate changes | 694 | - | 694 | |||||||||
Fair value of plan assets, December 31, 2012 | 33,647 | - | 33,647 | |||||||||
Funded status, December 31, 2012 (1) | $ | -14,992 | $ | -28,314 | $ | -43,306 | ||||||
Components of the net benefit cost recognized | ||||||||||||
Service cost | $ | 144 | $ | 725 | $ | 869 | ||||||
Interest cost | 1,961 | 1,126 | 3,087 | |||||||||
Expected return on plan assets | -2,105 | - | -2,105 | |||||||||
Amortization of unrecognized items | 1,453 | 7 | 1,460 | |||||||||
Net benefit costs | $ | 1,453 | $ | 1,858 | $ | 3,311 | ||||||
(1)The total of $43,450 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation. | ||||||||||||
The Company anticipates that it will make contributions to the Celgar Plans of approximately $1,606 in 2014. Estimated future benefit payments under the Celgar Plans are as follows: | ||||||||||||
Amount | ||||||||||||
2014 | $ | 3,656 | ||||||||||
2015 | 3,824 | |||||||||||
2016 | 3,943 | |||||||||||
2017 | 4,052 | |||||||||||
2018 | 4,173 | |||||||||||
2019 – 2023 | 22,311 | |||||||||||
Note 8. Pension and Other Post-Retirement Benefit Obligations (continued) | ||||||||||||
During the year ended December 31, 2013, the Company recognized income, net of tax of $4,636 in other comprehensive income (2012 – loss of $808; 2011 – loss of $11,203). As at December 31, 2013, the pension related accumulated other comprehensive income balance of $16,414 (2012 – $21,050) is primarily a result of net actuarial losses. These amounts have been stated net of tax. The Celgar Plans do not have any net transition asset or obligation recognized as a reclassification adjustment of other comprehensive income. The amount included in accumulated other comprehensive income which is expected to be recognized in 2014 is approximately $805 of net actuarial losses. There are no plan assets that are expected to be returned to the Company in 2014. | ||||||||||||
Summary of key assumptions: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Benefit obligations | ||||||||||||
Discount rate | 4.50% | 4.00% | ||||||||||
Rate of compensation increase | 2.75% | 2.75% | ||||||||||
Net benefit cost for year ended | ||||||||||||
Discount rate | 4.00% | 4.25% | ||||||||||
Rate of compensation increase | 2.75% | 2.75% | ||||||||||
Expected rate of return on plan assets | 6.60% | 6.75% | ||||||||||
Assumed health care cost trend rate at | ||||||||||||
Initial health care cost trend rate | 8.00% | 8.50% | ||||||||||
Annual rate of decline in trend rate | 0.50% | 0.50% | ||||||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | ||||||||||
Medical services plan premiums trend rate | 4.50% | 6.00% | ||||||||||
The expected rate of return on plan assets is a management estimate based on, among other factors, historical long-term returns, expected asset mix and active management premium. | ||||||||||||
The discount rate assumption is adjusted annually to reflect the rates available on high-quality debt instruments, with a duration that is expected to match the timing of expected pension and other post-retirement benefit obligations. High-quality debt instruments are corporate bonds with a rating of "AA" or better. | ||||||||||||
A one-percentage point change in assumed health care cost trend rate would have the following effect on the post-retirement benefit obligations: | ||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||
1% | 1% | 1% | 1% | |||||||||
Increase | Decrease | Increase | Decrease | |||||||||
Effect on total service and interest rate components | $ | 51 | $ | -53 | $ | 50 | $ | -53 | ||||
Effect on post-retirement benefit obligation | $ | 927 | $ | -896 | $ | 957 | $ | -921 | ||||
Asset allocation of funded plans: | ||||||||||||
Target | 2013 | 2012 | ||||||||||
Equity securities | 60% | 64% | 58% | |||||||||
Debt securities | 40% | 36% | 42% | |||||||||
Cash and cash equivalents | 0% | 0% | 0% | |||||||||
100% | 100% | |||||||||||
Note 8. Pension and Other Post-Retirement Benefit Obligations (continued) | ||||||||||||
Investment Objective | ||||||||||||
The investment objective for the Celgar Plans is to sufficiently diversify invested plan assets to maintain a reasonable level of risk without imprudently sacrificing the return on the invested funds, and ultimately to achieve a long-term total rate of return, net of fees and expenses, at least equal to the long-term interest rate assumptions used for funding actuarial valuations. To achieve this objective, the Company's overall investment strategy is to maintain an investment allocation mix of long-term growth investments (equities) and fixed income investments (debt securities). Investment allocation targets have been established by asset class as summarized above. The asset allocation targets are set after considering the nature of the liabilities, long-term return expectations, the risks associated with key asset classes, inflation and interest rates and related management fees and expenses. In addition, the Celgar Plans' investment strategy seeks to minimize risk beyond legislated requirements by constraining the investment managers' investment options. There are a number of specific constraints based on investment type, but they all have the general purpose of ensuring that the investments are fully diversified and that risk is appropriately managed. For example, no more than 10% of the book value of the assets can be invested in any one entity or group, investments in any one entity cannot exceed 30% of the voting shares and all equity holdings must be listed on a public exchange. Reviews of the investment objectives, key assumptions and the independent investment managers are performed periodically. | ||||||||||||
Celgar Plans' asset fair value measurements at December 31, 2013: | ||||||||||||
Asset category | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||
Leith Wheeler Diversified Funds | $ | 22,458 | $ | - | $ | - | $ | 22,458 | ||||
Phillips, Hagar and North Bond Fund | 12,821 | - | - | 12,821 | ||||||||
Cash | 93 | - | - | 93 | ||||||||
Total assets | $ | 35,372 | $ | - | $ | - | $ | 35,372 | ||||
Concentrations of Risk in the Celgar Plans' Assets | ||||||||||||
The Company has reviewed the Celgar Plans' investments and determined that they are allocated based on the specific investment manager's stated investment strategy with only slight over- or under-weightings within any specific category, and that those investments are within the constraints that have been set by the Company. Those constraints include a limitation on the value that can be invested in any one entity or group and the investment category targets noted above. In addition, we have two independent investment managers. The Company has concluded that there are no significant concentrations of risk. | ||||||||||||
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 an amount per hour worked pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. The contributions during the year ended December 31, 2013 totaled $2,635 (2012 – $2,644; 2011 – $2,450). Plan details are included in the following table: | ||||||||||||
Expiration | ||||||||||||
Date of | Are the Company's | |||||||||||
Provincially | Collective | Contributions Greater Than | ||||||||||
Registered | Bargaining | 5% of Total Contributions | ||||||||||
Legal name | Plan Number | Agreement | 2013 | 2012 | ||||||||
April 30, | ||||||||||||
The Pulp and Paper Industry Pension Plan | P085324 | 2017 | Yes | Yes | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 9. Income Taxes | |||||||||
The Company's effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in tax jurisdictions with differing statutory rates, changes in corporate structure, changes in the valuation of deferred tax assets and liabilities, the result of audit examinations of previously filed tax returns and changes in tax laws. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. | |||||||||
The Company and/or one or more of its subsidiaries file income tax returns in the United States, Germany and Canada. Currently, the Company does not anticipate that the expiration of the statute of limitations or the completion of audits in the next fiscal year will result in liabilities for uncertain income tax positions that are materially different than the amounts accrued or disclosed as of December 31, 2013. However, this belief could change as tax years are examined by taxing authorities, the timing of those examinations, if any, are uncertain at this time. During 2013, the German tax authorities completed examinations of 2011 for all but two entities. For one of the entities 2008, 2009, and 2010 tax years are still being reviewed and the review is expected to be completed in 2014. For the other entity the 2010 examination is complete. The Company believes that it has adequately provided for any reasonable foreseeable outcomes related to its tax audits and that any settlement will not have a material adverse effect on its consolidated results. However, there can be no assurances as to the possible outcomes. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2010 and 2008, respectively. | |||||||||
A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits is as follows: | |||||||||
2013 | 2012 | ||||||||
Balance at January 1 | $ | 82,934 | $ | 1,427 | |||||
Reduction prior year tax positions | -82,934 | -1,427 | |||||||
Addition of current year tax positions | - | 82,934 | |||||||
Balance at December 31 | $ | - | $ | 82,934 | |||||
The liability in the Consolidated Balance Sheet related to unrecognized tax benefits was $nil as at December 31, 2013 (2012 - $8,605). The Company recognizes interest and penalties related to unrecognized tax benefits in income tax benefit (provision) in the Consolidated Statement of Operations. During the year ended December 31, 2013, the Company recognized approximately $nil in interest and penalties (2012 – $134). | |||||||||
During the year ended December 31, 2013, the Company resolved an outstanding issue with the German tax authorities. As a result, the Company reduced its unrecognized tax benefit from $8,605 to $nil and recorded a current tax expense of $4,270. Additionally, the Company increased its valuation allowance by $4,137, thereby reducing the deferred tax asset and increasing the deferred tax expense by this amount. | |||||||||
The provision for current income taxes consists primarily of non-U.S. taxes for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Note 9. Income Taxes (continued) | |||||||||
Differences between the U.S. Federal Statutory and the Company's effective rates are as follows: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
U.S. Federal statutory rate | 35% | 35% | 35% | ||||||
U.S. Federal statutory rate on (income) loss before income | |||||||||
taxes and noncontrolling interest | $ | 5,797 | $ | 1,439 | $ | -25,971 | |||
Tax differential on foreign income | 736 | 874 | 7,892 | ||||||
Effect of foreign earnings | -945 | -8,382 | -13,788 | ||||||
Valuation allowance | -17,040 | -17,529 | 12,897 | ||||||
Tax benefit of partnership structure | 5,942 | 6,785 | 7,285 | ||||||
Pension adjustment | -1,206 | 174 | 2,595 | ||||||
Non-taxable foreign subsidiaries | 1,696 | 1,897 | 5,601 | ||||||
Research and development expense | 1,319 | 3,436 | - | ||||||
Prior year adjustments | -5,749 | - | - | ||||||
Other | 254 | 1,927 | 4,457 | ||||||
$ | -9,196 | $ | -9,379 | $ | 968 | ||||
Comprised of: | |||||||||
Current | $ | 2,286 | $ | -9,531 | $ | -2,341 | |||
Deferred | -11,482 | 152 | 3,309 | ||||||
$ | -9,196 | $ | -9,379 | $ | 968 | ||||
Deferred income tax assets and liabilities are composed of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
German tax loss carryforwards | $ | 123,735 | $ | 100,251 | |||||
U.S. tax loss carryforwards | 44,718 | 36,090 | |||||||
Canadian tax loss carryforwards | 11,606 | 40,992 | |||||||
Basis difference between income tax and financial reporting with | |||||||||
respect to operating pulp mills | -64,252 | -71,191 | |||||||
Derivative financial instruments | 13,060 | 18,760 | |||||||
Long-term debt | 2,204 | 2,066 | |||||||
Payable and accrued expenses | 578 | -257 | |||||||
Deferred pension liability | 9,605 | 10,810 | |||||||
Capital leases | 2,574 | 2,816 | |||||||
Research and development expense pool | 4,573 | 3,523 | |||||||
Other | 1,400 | 1,323 | |||||||
149,801 | 145,183 | ||||||||
Valuation allowance | -140,768 | -123,728 | |||||||
Net deferred tax asset | $ | 9,033 | $ | 21,455 | |||||
Comprised of: | |||||||||
Deferred income tax asset – current | $ | 6,326 | $ | 5,887 | |||||
Deferred income tax asset – non-current | 17,157 | 23,159 | |||||||
Deferred income tax liability – non-current | -14,450 | -7,591 | |||||||
Net deferred tax asset | $ | 9,033 | $ | 21,455 | |||||
Note 9. Income Taxes (continued) | |||||||||
The Company's German tax loss carryforward amount includes corporate and trade tax losses totalling approximately $528,700 at December 31, 2013 which have no expiration date. In addition, the Company has approximately $162,700 of German interest carryforwards which have no expiration date and can be used to reduce taxable income, with certain limitations. The Company's U.S. loss carryforwards and tax credits amount is approximately $125,700 at December 31, 2013, of which approximately $6,200 and $119,500, if not used, will expire in the tax years ending 2019 to 2023 and 2024 to 2033, respectively. The Company has U.S. foreign tax credits of approximately $700 which begin to expire in 2030. The Company's Canadian tax loss carryforward amount is approximately $43,800 at December 31, 2013 of which approximately $12,300 will expire in 2015 and approximately $31,500 will begin to expire in the tax year ending 2029, if not used. The Company has Canadian investment tax credits for scientific research and experimental development of approximately $4,600 which begin to expire in the taxation year 2030. | |||||||||
At each reporting period, the Company assesses whether it is more likely than not that the deferred tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results and prudent and feasible tax planning strategies. The carrying value of our deferred tax assets reflects our expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. Significant judgment is required when evaluating this positive and negative evidence, specifically the Company’s estimates of future taxable income. For example, the relative impact of negative and positive evidence of profitability where a company has cumulative losses in recent years. The weight given to negative and positive evidence is commensurate with the extent to which it can be objectively verified. Operating results during the most recent three-year period are generally given more weight than expectations of future profitability, which are inherently uncertain. | |||||||||
The following table summarizes the changes in valuation allowances related to net deferred tax assets: | |||||||||
2013 | 2012 | ||||||||
Balance at January 1 | $ | 123,728 | $ | 106,199 | |||||
Additions (reversals) | |||||||||
United States | 10,134 | 477 | |||||||
Canada | 12,324 | 15,844 | |||||||
Germany | -5,681 | -71 | |||||||
The impact of changes in foreign exchange rates | 263 | 1,279 | |||||||
Balance at December 31 | $ | 140,768 | $ | 123,728 | |||||
For the year ended December 31, 2013, the Company increased its valuation allowance for certain Canadian and U.S. entities and decreased its valuation allowance for a German entity as after weighing all available evidence it concluded that it was more likely than not that the deferred tax assets for the Canadian and U.S. entities will not be realized and the deferred tax assets for the German entity will be realized. These assessments were based on historical and forecast taxable income, income tax strategies, and the best estimates of the timing of movements in temporary differences. The Company's accounting for the German deferred tax assets represents its current best estimate. It is reasonably possible that changes in the Company's current estimates could have a material effect on the Company's financial statements and results of operations in the near term. | |||||||||
The Company's policy is to indefinitely reinvest undistributed earnings of Mercer Inc.'s foreign subsidiaries. Accordingly, no provision for U.S. income taxes has been made for such undistributed earnings. | |||||||||
Share_Capital
Share Capital | 12 Months Ended |
Dec. 31, 2013 | |
Share Capital [Abstract] | ' |
Share Capital | ' |
Note 10. Share Capital | |
Common shares | |
The Company has authorized 200,000,000 common shares (2012 – 200,000,000) with a par value of $1 per share. | |
As at December 31, 2013, the Company had 55,853,704 common shares (2012 – 55,815,704) issued and outstanding. During the year ended December 31, 2013, the Company issued 38,000 restricted shares to directors of the Company. | |
Preferred shares | |
The Company has authorized 50,000,000 preferred shares (2012 – 50,000,000) with $1 par value issuable in series, of which 2,000,000 shares have been designated as Series A. The preferred shares may be issued in one or more series and with such designations and preferences for each series as shall be stated in the resolutions providing for the designation and issue of each such series adopted by the Board of Directors of the Company. The Board of Directors is authorized by the Company's articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. As at December 31, 2013, no preferred shares had been issued by the Company. | |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Note 11. Stock-Based Compensation | ||||||||||||||
In June 2010, the Company adopted a new stock incentive plan (the "2010 Plan") which provides for options, restricted stock rights, restricted shares, performance shares, performance share units ("PSUs") and stock appreciation rights to be awarded to employees, consultants and non-employee directors. During the years ended December 31, 2013 and December 31, 2012, there were no issued and outstanding restricted stock rights or stock appreciation rights. As at December 31, 2013, after factoring in all allocated shares, there remain approximately 1.1 million common shares available for grant pursuant to the 2010 Plan. | ||||||||||||||
Performance Shares and PSUs | ||||||||||||||
Performance shares are common shares granted to an employee which have restrictive conditions, such as the ability to sell the shares, until the Company and the grantee achieve certain performance objectives. PSUs comprise rights to receive common shares at a future date that are contingent on the Company and the grantee achieving certain performance objectives. The performance objective period is generally three years or less. | ||||||||||||||
The fair value of the performance shares and PSUs is recorded as compensation expense over the vesting period. The fair value is determined based upon the targeted number of shares awarded and the quoted price of the Company's shares at the reporting date. The target number of shares is determined using management's best estimate. The final determination of the number of shares to be granted or unrestricted will be made by the Company's Board of Directors. For the year ended December 31, 2013, the Company recognized an expense of $2,882 related to the PSUs (2012 – $1,546; 2011 – $1,274). As at December 31, 2013, there are no performance shares outstanding. | ||||||||||||||
The following table summarizes PSU activity during the year: | ||||||||||||||
Number of PSUs | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Outstanding at January 1 | 786,129 | 795,312 | 534,783 | |||||||||||
Granted | 40,499 | 55,478 | 812,575 | |||||||||||
Vested and issued | - | - | -474,728 | |||||||||||
Cancelled | - | - | -60,055 | |||||||||||
Forfeited | -35,196 | -64,661 | -17,263 | |||||||||||
Outstanding at December 31 | 791,432 | 786,129 | 795,312 | |||||||||||
Note 11. Stock-Based Compensation (continued) | ||||||||||||||
Restricted Shares | ||||||||||||||
The fair value of restricted shares is determined based upon the number of shares granted and the quoted price of the Company's shares on the date of grant. Restricted shares generally vest over one year; however, 200,000 restricted shares granted during the year ended December 31, 2011 vest in equal amounts over a five-year period commencing in 2012. The fair value of the restricted shares is recorded as compensation expense on a straight-line basis over the vesting period. | ||||||||||||||
Expense recognized for the year ended December 31, 2013 was $692 (2012 – $1,070; 2011 – $1,389). As at December 31, 2013, the total remaining unrecognized compensation cost related to restricted stock amounted to approximately $511 (2012 – $937), which will be amortized over the remaining vesting periods. | ||||||||||||||
The following table summarizes restricted share activity during the year: | ||||||||||||||
Number of Restricted Shares | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Outstanding at January 1 | 196,500 | 238,000 | 56,000 | |||||||||||
Granted | 38,000 | 36,500 | 238,000 | |||||||||||
Vested | -76,500 | -78,000 | -56,000 | |||||||||||
Outstanding at December 31 | 158,000 | 196,500 | 238,000 | |||||||||||
Stock Options | ||||||||||||||
The following table summarizes the status of options outstanding at December 31, 2013: | ||||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Exercise Price | Number | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number | Weighted Average Exercise Price | |||||||||
(U.S. dollars) | (U.S. dollars) | (U.S. dollars) | ||||||||||||
$ | 7.30 | 30,000 | 1.57 | $ | 7.30 | 30,000 | $ | 7.30 | ||||||
$ | 7.92 | 45,000 | 1.69 | $ | 7.92 | 45,000 | $ | 7.92 | ||||||
During the years ended December 31, 2013 and December 31, 2012, no options were granted, exercised or cancelled. During the year ended December 31, 2013, 100,000 options expired (2012 – nil; 2011 – 15,000). The aggregate intrinsic value of options is calculated as the difference between the quoted market price for the Company's common stock as at December 31, 2013, and the exercise price of the stock options for those options where the exercise price is below the quoted market price. As at December 31, 2013, the Company had 75,000 options (2012 – 100,000; 2011 – 100,000) with an exercise price below the quoted market price resulting in an aggregate intrinsic value of $172 (2012 – $151; 2011 – $45). The Company issues new shares upon the exercise of stock options. | ||||||||||||||
Stock compensation expense recognized for the year ended December 31, 2013 was $nil (2012 – $nil; 2011 – $nil). | ||||||||||||||
Net_Income_Loss_Per_Share_Attr
Net Income (Loss) Per Share Attributable To Common Shareholders | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Net Income (Loss) Per Share Attributable To Common Shareholders [Abstract] | ' | ||||||||
Net Income (Loss) Per Share Attributable To Common Shareholders | ' | ||||||||
Note 12. Net Income (Loss) Per Share Attributable to Common Shareholders | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Net income (loss) attributable to common shareholders | |||||||||
– basic | $ | -26,375 | $ | -15,670 | $ | 69,699 | |||
Interest on convertible notes, net of tax | - | - | 1,110 | ||||||
Net income (loss) attributable to common shareholders | |||||||||
– diluted | $ | -26,375 | $ | -15,670 | $ | 70,809 | |||
Net income (loss) per share attributable to common | |||||||||
shareholders | |||||||||
Basic | $ | -0.47 | $ | -0.28 | $ | 1.39 | |||
Diluted | $ | -0.47 | $ | -0.28 | $ | 1.24 | |||
Weighted average number of common shares outstanding: | |||||||||
Basic(1) | 55,673,838 | 55,596,761 | 50,116,982 | ||||||
Effect of dilutive shares: | |||||||||
Performance shares and PSUs | - | - | 544,853 | ||||||
Restricted shares | - | - | 87,923 | ||||||
Stock options and awards | - | - | 57,483 | ||||||
Convertible notes | - | - | 6,178,778 | ||||||
Diluted | 55,673,838 | 55,596,761 | 56,986,019 | ||||||
________ | |||||||||
(1) The basic weighted average number of shares excludes 158,000 restricted shares which have been issued, but have not vested as at December 31, 2013 (2012 – 196,500 restricted shares; 2011 – 238,000 restricted shares). | |||||||||
The calculation of diluted net income (loss) per share attributable to common shareholders does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per share. The following table summarizes the instruments excluded from the calculation of net income (loss) per share attributable to common shareholders because they were anti-dilutive. | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Stock options and awards | 75,000 | 175,000 | - | ||||||
PSUs | 791,432 | 786,129 | - | ||||||
Restricted shares | 158,000 | 196,500 | - | ||||||
Restructuring_Expenses
Restructuring Expenses | 12 Months Ended |
Dec. 31, 2013 | |
[RestructuringChargesAbstract] | ' |
Restructuring charges | ' |
Note 13. Restructuring Expenses | |
In July 2013, the Company announced a workforce reduction at the Celgar mill. The planned reduction will affect both hourly and salaried employees and will reduce the workforce by approximately 85 employees over the next five years, with the majority of employees affected in 2013 and over the next six months. In connection with implementing this workforce reduction, during the year ended December 31, 2013, the Company recorded restructuring expenses of $5,029 for severance and other personnel expenses, such as termination benefits. The Company expects to incur approximately $600 of additional expenses in 2014. As at December 31, 2013, the Company had a liability for these restructuring expenses of $2,898 in accounts payable and other. | |
In 2013, the Company restructured the management team at the Stendal mill. In connection with this restructuring, the Company recorded expenses of $1,386 for severance and other personnel expenses, such as termination benefits. As at December 31, 2013, the Company had a liability for these restructuring expenses of $1,096 in accounts payable and other. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Accumulated Other Comprehensive Income, Net of Tax [Abstract] | ' | |||||
Comprehensive Income (Loss) Note [Text Block] | ' | |||||
Note 14. Accumulated Other Comprehensive Income | ||||||
The components of accumulated other comprehensive income are as follows: | ||||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Foreign currency translation adjustments | $ | 47,756 | $ | 49,489 | ||
Unrecognized losses and prior service costs | ||||||
related to defined benefit plans | -16,414 | -21,050 | ||||
Unrealized gains on marketable securities | 128 | 138 | ||||
Accumulated other comprehensive income | $ | 31,470 | $ | 28,577 | ||
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2013 | |
[NoncontrollingInterestAbstract] | ' |
Noncontrolling Interest | ' |
Note 15. Noncontrolling Interest | |
In September 2013, the Company made a $20,000 capital investment in the Stendal mill, resulting in an 8.1% increase in the Company's equity ownership in the mill as it went from 74.9% to 83.0%. The increase in equity ownership was accounted for as an equity transaction and as a result, the noncontrolling deficit was reduced by $9,974, and the paid-in capital, which includes legal fees associated with the transaction, was reduced by $10,118. | |
Business_Segment_Information
Business Segment Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Segment Information [Abstract] | ' | ||||||||
Business Segment Information | ' | ||||||||
Note 16. Business Segment Information | |||||||||
The Company has three operating segments, the individual pulp mills that are aggregated into one reportable business segment, market pulp. Accordingly, the results presented are those of the one reportable business segment. | |||||||||
The following table presents net sales to external customers by geographic area based on location of the customer: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Germany | $ | 309,399 | $ | 293,733 | $ | 357,106 | |||
China | 300,827 | 295,797 | 326,610 | ||||||
Other European Union countries (1) | 224,988 | 216,846 | 244,884 | ||||||
Italy | 65,654 | 55,443 | 71,695 | ||||||
Other Asia | 49,855 | 42,692 | 42,970 | ||||||
North America | 30,404 | 61,103 | 96,520 | ||||||
Other countries | 2,748 | 2,099 | 1,146 | ||||||
983,875 | 967,713 | 1,140,931 | |||||||
Energy and chemical revenues | 92,198 | 92,966 | 94,758 | ||||||
Third party transportation revenues | 12,312 | 12,057 | 16,275 | ||||||
$ | 1,088,385 | $ | 1,072,736 | $ | 1,251,964 | ||||
________ | |||||||||
(1)Not including Germany or Italy; includes new entrant countries to the European Union from their time of admission. | |||||||||
The following table presents total long-lived assets by geographic area based on location of the asset: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Germany | $ | 843,777 | $ | 839,535 | |||||
Canada | 194,854 | 226,971 | |||||||
$ | 1,038,631 | $ | 1,066,506 | ||||||
In 2013, two customers at a number of their individual mills accounted for 10% and 11%, respectively of the Company's total pulp sales (2012 – one customer at a number of its individual mills accounted for 11%; 2011 – no single customer accounted for 10% or more). | |||||||||
Derivative_Transactions
Derivative Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Derivative Transactions [Abstract] | ' | ||||||||
Derivative Transactions | ' | ||||||||
Note 17. Derivative Transactions | |||||||||
The Company is exposed to certain market risks relating to its ongoing business. The Company seeks to manage these risks through internal risk management policies as well as, from time to time, the use of derivatives. The Company currently manages its interest rate risk with the use of a derivative instrument. The derivatives are measured at fair value with changes in fair value immediately recognized in gain (loss) on derivative instruments in the Consolidated Statement of Operations. | |||||||||
Derivative assets are presented in prepaid expenses and other, and derivative liabilities are presented in interest rate derivative liability in the Consolidated Balance Sheet. | |||||||||
Interest Rate Derivative | |||||||||
During 2004, the Company entered into certain variable-to-fixed interest rate swaps in connection with the Stendal mill with respect to an aggregate maximum amount of approximately €612.6 million of the principal amount of the indebtedness under the Stendal Loan Facility. Under the remaining interest rate swap, the Company pays a fixed rate and receives a floating rate with the interest payments being calculated on a notional amount. Currently, the contract has an aggregate notional amount of €306.8 million at a fixed interest rate of 5.28% and it matures in October 2017 (which for the most part matches the maturity of the Stendal Loan Facility). | |||||||||
The interest rate derivative contract is with a bank that is part of a banking syndicate that holds the Stendal Loan Facility and the Company does not anticipate non-performance by the bank. | |||||||||
Pulp Price Derivatives | |||||||||
In May 2012, the Company entered into a fixed price pulp swap contract with a bank. Under the terms of the contract, 5,000 metric tonnes ("MT") of pulp per month was fixed at a price of 915 U.S. dollars per MT. The contract matured in December 2012. In November 2012, the Company entered into two additional contracts. Under the terms of the contracts, 3,000 MT of pulp per month is fixed at prices which range from 880 U.S. dollars to 890 U.S. dollars per MT. The contracts matured in December 2013. | |||||||||
Energy Derivatives | |||||||||
The Company is also subject to price risk for electricity used in its manufacturing operations. The Company enters into electricity forward sales contracts when it sees an opportunity to sell forward electricity at opportunistic rates. No electricity forward sales contracts were entered into in 2013, 2012 or 2011. Although the Company does not currently have plans to enter into such transactions, the Company may enter into similar electricity derivative contracts in the future. | |||||||||
Foreign Exchange Derivatives | |||||||||
Many of the Company's transactions are denominated in foreign currencies, primarily the Euro and Canadian dollar. As a result of these transactions the Company and its subsidiaries have financial risk that the value of the Company's financial instruments will vary due to fluctuations in foreign exchange rates. | |||||||||
The Company did not enter into foreign exchange derivatives in 2013, 2012 and 2011. | |||||||||
Note 17. Derivative Transactions (continued) | |||||||||
Credit Risk | |||||||||
The Company's credit risk is primarily attributable to cash held in bank accounts and receivables. The Company maintains cash balances in foreign financial institutions in excess of insured limits. The Company limits its credit exposure on cash held in bank accounts by periodically investing cash in excess of short-term operating requirements and debt obligations in low risk government bonds, or similar debt instruments. The Company's credit risk associated with the sale of pulp products is managed through establishing long-term contractual relationships with its customers, setting credit limits, the purchase of credit insurance and for certain customers a letter of credit is received prior to shipping its product. Concentrations of credit risk on the sale of pulp products are with customers and agents based in Germany, China, Italy and the United States. | |||||||||
The carrying amount of cash and cash equivalents of $147,728 and receivables of $135,893 recorded in the Consolidated Balance Sheet, net of any allowances for losses, represents the Company's maximum exposure to credit risk. | |||||||||
The following table shows the derivative gains and losses by instrument type as they are recognized in gain (loss) on derivative instruments in the Consolidated Statement of Operations: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Interest rate derivative contract | $ | 22,476 | $ | 2,204 | $ | -1,974 | |||
Pulp price derivative contracts | -2,767 | 2,608 | - | ||||||
$ | 19,709 | $ | 4,812 | $ | -1,974 | ||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Financial Instruments | ' | |||||||||||
Note 18. Financial Instruments | ||||||||||||
The fair value of financial instruments as at December 31 is summarized as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Cash and cash equivalents | $ | 147,728 | $ | 147,728 | $ | 137,439 | $ | 137,439 | ||||
Marketable securities | $ | 217 | $ | 217 | $ | 243 | $ | 243 | ||||
Receivables | $ | 135,893 | $ | 135,893 | $ | 145,150 | $ | 145,150 | ||||
Pulp price derivative contracts – asset | $ | - | $ | - | $ | 982 | $ | 982 | ||||
Accounts payable and other | $ | 103,814 | $ | 103,814 | $ | 118,599 | $ | 118,599 | ||||
Debt | $ | 979,372 | $ | 980,982 | $ | 937,985 | $ | 922,951 | ||||
Interest rate derivative contract – liability | $ | 46,517 | $ | 46,517 | $ | 66,819 | $ | 66,819 | ||||
The carrying value of cash and cash equivalents and accounts payable and other approximates the fair value due to the immediate or short-term maturity of these financial instruments. The carrying value of receivables approximates the fair value due to their short-term nature and historical collectability. Marketable securities are recorded at fair value based on recent transactions. See the Fair Value Measurement and Disclosure section below for details on how the fair value of the pulp price derivative contracts, interest rate derivative contract and debt was determined. | ||||||||||||
Fair Value Measurement and Disclosure | ||||||||||||
The fair value methodologies and, as a result, the fair value of the Company's marketable securities, debt and derivative instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the FASB Accounting Standards Codification, and are as follows: | ||||||||||||
Note 18. Financial Instruments (continued) | ||||||||||||
Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities. | ||||||||||||
Level 2 – Valuations based on observable inputs in active markets for similar assets and liabilities, other than Level 1 prices, such as quoted commodity prices or interest or currency exchange rates. | ||||||||||||
Level 3 – Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. | ||||||||||||
The Company classified its marketable securities within Level 1 of the valuation hierarchy because quoted prices are available in an active market for the exchange-traded equities. | ||||||||||||
The Company's interest rate and pulp price derivatives are classified within Level 2 of the valuation hierarchy, as they are valued using internal models that use as their basis readily observable market inputs, such as forward interest rates, yield curves observable at specified intervals and commodity price curves. The observable inputs reflect market data obtained from independent sources. In addition, the Company considered the risk of non-performance of the obligor, which in some cases reflects the Company's own credit risk. The counterparty to its interest rate and pulp price derivatives are multi-national financial institutions. | ||||||||||||
The Company's debt is recognized at amortized cost. The fair value of debt classified as Level 2 reflects recent market transactions and discounted cash flow estimates. Discounted cash flow models use observable market inputs taking into consideration variables such as interest rate changes, comparative securities, subordination discount and credit rating changes. The fair value of debt classified as Level 3 is valued using discounted cash flow models or select comparable transactions, which require significant management estimates. These estimates are developed using available market, historical, and forecast data, including taking into account variables such as recent financing activities, the capital structure, and the lack of marketability of such debt. | ||||||||||||
The following table presents a summary of the Company's outstanding financial instruments and their estimated fair values under the hierarchy defined in Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification: | ||||||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets | ||||||||||||
Marketable securities | $ | 217 | $ | - | $ | - | $ | 217 | ||||
Liabilities | ||||||||||||
Interest rate derivative contract | $ | - | $ | 46,517 | $ | - | $ | 46,517 | ||||
Debt | - | 367,405 | 613,577 | 980,982 | ||||||||
$ | - | $ | 413,922 | $ | 613,577 | $ | 1,027,499 | |||||
Fair value measurements at December 31, 2012 using: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets | ||||||||||||
Marketable securities | $ | 243 | $ | - | $ | - | $ | 243 | ||||
Pulp price derivative contracts | - | 982 | - | 982 | ||||||||
$ | 243 | $ | 982 | $ | - | $ | 1,225 | |||||
Liabilities | ||||||||||||
Interest rate derivative contract | $ | - | $ | 66,819 | $ | - | $ | 66,819 | ||||
Debt | - | 308,894 | 614,057 | 922,951 | ||||||||
$ | - | $ | 375,713 | $ | 614,057 | $ | 989,770 | |||||
Lease_Commitments
Lease Commitments | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Lease Commitments [Abstract] | ' | |||||
Lease Commitments | ' | |||||
Note 19. Lease Commitments | ||||||
Minimum lease payments, primarily for various vehicles, and plant and equipment under capital and non-cancellable operating leases and the present value of net minimum payments at December 31, 2013 is as follows: | ||||||
Capital | Operating | |||||
Leases | Leases | |||||
2014 | $ | 2,406 | $ | 2,280 | ||
2015 | 2,414 | 2,076 | ||||
2016 | 2,263 | 1,295 | ||||
2017 | 1,511 | 1,239 | ||||
2018 | 880 | 1,237 | ||||
Thereafter | 3,111 | 929 | ||||
Total | 12,585 | $ | 9,056 | |||
Less: imputed interest | 1,771 | |||||
Total present value of minimum capitalized payments | 10,814 | |||||
Less: current portion of capital lease obligations | 2,254 | |||||
Long-term capital lease obligations | $ | 8,560 | ||||
Rent expense under operating leases was $3,497 for the year ended December 31, 2013 (2012 – $3,866; 2011 – $4,611). The current portion of the capital lease obligations is included in accounts payable and other and the long-term portion is included in capital leases and other in the Consolidated Balance Sheet. | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments And Contingencies [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Note 20. Commitments and Contingencies | ||||
(a) | At December 31, 2013, the Company has liabilities for environmental conservation expenditures which include asset retirement obligations of $5,549 (2012 - $5,605) and wastewater fees of $6,929 (2012 - $8,765). Management believes the accrued amounts recorded are sufficient. | |||
(b) | Pursuant to an arbitration proceeding with the general construction contractor (the noncontrolling shareholder) of the Stendal mill regarding certain warranty claims, the Company acted upon a bank guarantee for defect liability on civil works that was about to expire as provided in the engineering, procurement, and construction contract. On January 28, 2011, the Company received approximately €10.0 million ($13,606) (the "Guarantee Amount"), which is intended to compensate the Company for remediation work that is required at the Stendal mill, but it was less than the amount claimed by the Company under the arbitration. Most of the claims have been settled; however, the arbitration proceeding is ongoing, and there is no certainty that the Company will be successful with its remaining claim. | |||
The €10.0 million ($13,606) was initially recognized as an increase in cash and a corresponding increase in accounts payable and other. As civil works remediation steps are agreed to with the noncontrolling shareholder an agreed to portion of the payable is reversed with the offset recorded in operating costs to offset the remediation expenditures. As at December 31, 2013, the Company had Guarantee Amount proceeds of $2,437 remaining in accounts payable and other. | ||||
Note 20. Commitments and Contingencies (continued) | ||||
(c) | The Company is involved in a property transfer tax dispute with respect to the Celgar mill and certain other legal actions and claims arising in the ordinary course of business. Celgar had previously paid the property transfer tax assessment of approximately C$4.5 million ($4,200). During the second quarter of 2013, the Company lost its Supreme Court of British Columbia appeal of the property transfer tax assessment and as a result the Company filed an application to seek leave to appeal to the British Columbia Court of Appeal. In September 2013, the leave to appeal was granted to the Company and a hearing date with the Court of Appeal is expected in the first half of 2014. 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 claim which is 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. | |||
(d) | In 2012, as a result of a regular tax field audit for the Stendal mill, German public authorities commenced a preliminary investigation into a past and then current managers of the mill relating to whether certain settlement amounts received by the Stendal mill in 2007, 2010 and 2011 from the main contractor under the Engineering, Procurement and Construction Contract for the construction of the Stendal mill should have reduced the assessment base for the original investment subsidies granted to the mill by German authorities. The payments were made by the contractor to the Stendal mill to settle certain warranty, performance and remediation claims that the Stendal mill made against the contractor after completion of mill construction in 2004. The amounts currently under review aggregate approximately €8.3 million ($11,400). Investment subsidies received by the Stendal mill were generally based upon a percentage of the assessment base for subsidies of the mill. If the settlement payments received by the Stendal mill result in a reduction of the assessment base for subsidies under applicable German rules there could be a proportionate reduction in the investment subsidies and the difference could be repayable by the Stendal mill. The Stendal mill believes that it has properly recorded the settlement amounts received from the contractor and that the same do not reduce the assessment base for subsidies of the mill. While it is not reasonably possible to predict the outcome of the legal action and claim, it is the opinion of management that the outcome will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company. | |||
(e) | 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. | |||
(f) | The Company entered into certain minimum or fixed purchase commitments primarily related to the purchase of raw materials that extend beyond 2014, none of which are individually or together material. | |||
Restricted_Group_Supplemental_
Restricted Group Supplemental Disclosure | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restricted Group Supplemental Disclosure [Abstract] | ' | |||||||||||
Restricted Group Supplemental Disclosure | ' | |||||||||||
Note 21. Restricted Group Supplemental Disclosure | ||||||||||||
The terms of the indenture governing the Company's Senior Notes require that it provides the results of operations and financial condition of Mercer International Inc. and the restricted subsidiaries under the indenture, collectively referred to as the "Restricted Group". As at and during the years ended December 31, 2013 and 2012, the Restricted Group was comprised of Mercer International Inc., certain holding subsidiaries and its Rosenthal and Celgar mills. The Restricted Group excludes the Stendal mill. | ||||||||||||
Combined Condensed Balance Sheets | ||||||||||||
31-Dec-13 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 82,910 | $ | 64,818 | $ | - | $ | 147,728 | ||||
Receivables | 75,987 | 59,906 | - | 135,893 | ||||||||
Inventories | 93,807 | 77,101 | - | 170,908 | ||||||||
Prepaid expenses and other | 7,742 | 3,176 | - | 10,918 | ||||||||
Deferred income tax | 3,273 | 3,053 | - | 6,326 | ||||||||
Total current assets | 263,719 | 208,054 | - | 471,773 | ||||||||
Long-term assets | ||||||||||||
Property, plant and equipment | 420,373 | 618,258 | - | 1,038,631 | ||||||||
Deferred note issuance costs and other | 10,987 | 10,011 | - | 20,998 | ||||||||
Deferred income tax | 9,894 | 7,263 | - | 17,157 | ||||||||
Due from unrestricted group | 153,851 | - | -153,851 | - | ||||||||
Total assets | $ | 858,824 | $ | 843,586 | $ | -153,851 | $ | 1,548,559 | ||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable and other | $ | 49,891 | $ | 53,923 | $ | - | $ | 103,814 | ||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 1,330 | - | - | 1,330 | ||||||||
Debt | 749 | 59,606 | - | 60,355 | ||||||||
Total current liabilities | 51,970 | 113,529 | - | 165,499 | ||||||||
Long-term liabilities | ||||||||||||
Debt | 336,382 | 582,635 | - | 919,017 | ||||||||
Due to restricted group | - | 153,851 | -153,851 | - | ||||||||
Interest rate derivative liability | - | 46,517 | - | 46,517 | ||||||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 35,466 | - | - | 35,466 | ||||||||
Capital leases and other | 8,523 | 10,770 | - | 19,293 | ||||||||
Deferred income tax | 14,450 | - | - | 14,450 | ||||||||
Total liabilities | 446,791 | 907,302 | -153,851 | 1,200,242 | ||||||||
EQUITY | ||||||||||||
Total shareholders' equity (deficit) | 412,033 | -52,955 | - | 359,078 | ||||||||
Noncontrolling interest (deficit) | - | -10,761 | - | -10,761 | ||||||||
Total liabilities and equity | $ | 858,824 | $ | 843,586 | $ | -153,851 | $ | 1,548,559 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Balance Sheets | ||||||||||||
31-Dec-12 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 48,407 | $ | 89,032 | $ | - | $ | 137,439 | ||||
Receivables | 80,708 | 64,442 | - | 145,150 | ||||||||
Inventories | 98,606 | 57,373 | - | 155,979 | ||||||||
Prepaid expenses and other | 7,661 | 2,764 | - | 10,425 | ||||||||
Deferred income tax | 2,885 | 3,002 | - | 5,887 | ||||||||
Total current assets | 238,267 | 216,613 | - | 454,880 | ||||||||
Long-term assets | ||||||||||||
Property, plant and equipment | 455,293 | 611,213 | - | 1,066,506 | ||||||||
Deferred note issuance costs and other | 8,712 | 7,324 | - | 16,036 | ||||||||
Deferred income tax | 12,102 | 11,057 | - | 23,159 | ||||||||
Due from unrestricted group | 134,897 | - | -134,897 | - | ||||||||
Total assets | $ | 849,271 | $ | 846,207 | $ | -134,897 | $ | 1,560,581 | ||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable and other | $ | 55,517 | $ | 63,082 | $ | - | $ | 118,599 | ||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 1,072 | - | - | 1,072 | ||||||||
Debt | 7,465 | 52,740 | - | 60,205 | ||||||||
Total current liabilities | 64,054 | 115,822 | - | 179,876 | ||||||||
Long-term liabilities | ||||||||||||
Debt | 285,079 | 592,701 | - | 877,780 | ||||||||
Due to restricted group | - | 134,897 | -134,897 | - | ||||||||
Interest rate derivative liability | - | 66,819 | - | 66,819 | ||||||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 42,378 | - | - | 42,378 | ||||||||
Capital leases and other | 8,008 | 10,367 | - | 18,375 | ||||||||
Deferred income tax | 7,591 | - | - | 7,591 | ||||||||
Total liabilities | 407,110 | 920,606 | -134,897 | 1,192,819 | ||||||||
EQUITY | ||||||||||||
Total shareholders' equity (deficit) | 442,161 | -53,057 | - | 389,104 | ||||||||
Noncontrolling interest (deficit) | - | -21,342 | - | -21,342 | ||||||||
Total liabilities and equity | $ | 849,271 | $ | 846,207 | $ | -134,897 | $ | 1,560,581 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 561,350 | $ | 434,837 | $ | - | $ | 996,187 | ||||
Energy and chemicals | 33,783 | 58,415 | - | 92,198 | ||||||||
595,133 | 493,252 | - | 1,088,385 | |||||||||
Operating costs | 498,952 | 421,880 | - | 920,832 | ||||||||
Operating depreciation and amortization | 43,498 | 34,811 | - | 78,309 | ||||||||
Selling, general and administrative expenses | 31,943 | 19,226 | - | 51,169 | ||||||||
Restructuring expenses | 5,029 | 1,386 | - | 6,415 | ||||||||
579,422 | 477,303 | - | 1,056,725 | |||||||||
Operating income | 15,711 | 15,949 | - | 31,660 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -32,321 | -45,011 | 8,176 | -69,156 | ||||||||
Gain (loss) on derivative instruments | -2,767 | 22,476 | - | 19,709 | ||||||||
Other income (expense) | 9,217 | 174 | -8,176 | 1,215 | ||||||||
Total other income (expense) | -25,871 | -22,361 | - | -48,232 | ||||||||
Income (loss) before income taxes | -10,160 | -6,412 | - | -16,572 | ||||||||
Income tax benefit (provision) | -9,365 | 169 | - | -9,196 | ||||||||
Net income (loss) | -19,525 | -6,243 | - | -25,768 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -607 | - | -607 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | -19,525 | $ | -6,850 | $ | - | $ | -26,375 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 545,205 | $ | 434,565 | $ | - | $ | 979,770 | ||||
Energy and chemicals | 36,638 | 56,328 | - | 92,966 | ||||||||
581,843 | 490,893 | - | 1,072,736 | |||||||||
Operating costs | 500,223 | 385,921 | - | 886,144 | ||||||||
Operating depreciation and amortization | 40,118 | 34,184 | - | 74,302 | ||||||||
Selling, general and administrative expenses | 31,688 | 17,580 | - | 49,268 | ||||||||
572,029 | 437,685 | - | 1,009,714 | |||||||||
Operating income | 9,814 | 53,208 | - | 63,022 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -30,125 | -48,934 | 7,292 | -71,767 | ||||||||
Gain (loss) on derivative instruments | 2,609 | 2,203 | - | 4,812 | ||||||||
Other income (expense) | 6,465 | 648 | -7,292 | -179 | ||||||||
Total other income (expense) | -21,051 | -46,083 | - | -67,134 | ||||||||
Income (loss) before income taxes | -11,237 | 7,125 | - | -4,112 | ||||||||
Income tax benefit (provision) | -7,050 | -2,329 | - | -9,379 | ||||||||
Net income (loss) | -18,287 | 4,796 | - | -13,491 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -2,179 | - | -2,179 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | -18,287 | $ | 2,617 | $ | - | $ | -15,670 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2011 | ||||||||||||
Restricted Group | Unrestricted Subsidiaries | Eliminations | Consolidated Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 659,741 | $ | 497,465 | $ | - | $ | 1,157,206 | ||||
Energy and chemicals | 35,455 | 59,303 | - | 94,758 | ||||||||
695,196 | 556,768 | - | 1,251,964 | |||||||||
Operating costs | 532,471 | 433,252 | - | 965,723 | ||||||||
Operating depreciation and amortization | 41,535 | 36,076 | - | 77,611 | ||||||||
Selling, general and administrative expenses | 33,581 | 20,384 | - | 53,965 | ||||||||
607,587 | 489,712 | - | 1,097,299 | |||||||||
Operating income | 87,609 | 67,056 | - | 154,665 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -34,639 | -54,386 | 6,911 | -82,114 | ||||||||
Gain (loss) on derivative instruments | - | -1,974 | - | -1,974 | ||||||||
Other income (expense) | 8,860 | 1,676 | -6,911 | 3,625 | ||||||||
Total other income (expense) | -25,779 | -54,684 | - | -80,463 | ||||||||
Income (loss) before income taxes | 61,830 | 12,372 | - | 74,202 | ||||||||
Income tax benefit (provision) | -6,422 | 7,390 | - | 968 | ||||||||
Net income (loss) | 55,408 | 19,762 | - | 75,170 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -5,471 | - | -5,471 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | 55,408 | $ | 14,291 | $ | - | $ | 69,699 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | -19,525 | $ | -6,243 | $ | -25,768 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | 982 | -22,476 | -21,494 | |||||||||
Depreciation and amortization | 43,833 | 34,812 | 78,645 | |||||||||
Deferred income taxes | 7,263 | 4,219 | 11,482 | |||||||||
Stock compensation expense | 3,574 | - | 3,574 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | 648 | - | 648 | |||||||||
Other | -360 | 3,529 | 3,169 | |||||||||
Changes in working capital | ||||||||||||
Receivables | 4,780 | 9,213 | 13,993 | |||||||||
Inventories | 1,965 | -16,528 | -14,563 | |||||||||
Accounts payable and accrued expenses | -6,026 | -5,543 | -11,569 | |||||||||
Other(1) | -13,621 | 11,829 | -1,792 | |||||||||
Net cash from (used in) operating activities | 23,513 | 12,812 | 36,325 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -13,183 | -32,524 | -45,707 | |||||||||
Acquisition of noncontrolling interest (Note 15) | -20,000 | 20,000 | - | |||||||||
Proceeds on sale of property, plant and equipment | 581 | 158 | 739 | |||||||||
Net cash from (used in) investing activities | -32,602 | -12,366 | -44,968 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -1,459 | -54,957 | -56,416 | |||||||||
Proceeds from issuance of notes and borrowings of debt | 52,250 | 22,222 | 74,472 | |||||||||
Repayment of capital lease obligations | -725 | -1,868 | -2,593 | |||||||||
Proceeds from (repayment of) credit facilities, net | -5,640 | - | -5,640 | |||||||||
Payment of note issuance costs | -1,829 | -2,026 | -3,855 | |||||||||
Proceeds from government grants | - | 9,265 | 9,265 | |||||||||
Net cash from (used in) financing activities | 42,597 | -27,364 | 15,233 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | 995 | 2,704 | 3,699 | |||||||||
Net increase (decrease) in cash and cash equivalents | 34,503 | -24,214 | 10,289 | |||||||||
Cash and cash equivalents, beginning of year | 48,407 | 89,032 | 137,439 | |||||||||
Cash and cash equivalents, end of year | $ | 82,910 | $ | 64,818 | $ | 147,728 | ||||||
_________________________ | ||||||||||||
-1 | Includes intercompany working capital related transactions. | |||||||||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | -18,287 | $ | 4,796 | $ | -13,491 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | -983 | -2,203 | -3,186 | |||||||||
Depreciation and amortization | 40,474 | 34,183 | 74,657 | |||||||||
Deferred income taxes | 6,660 | -6,812 | -152 | |||||||||
Stock compensation expense | 2,616 | - | 2,616 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | 365 | - | 365 | |||||||||
Other | 1,574 | 3,417 | 4,991 | |||||||||
Changes in working capital | ||||||||||||
Receivables | -755 | 11,550 | 10,795 | |||||||||
Inventories | -5,132 | 6,858 | 1,726 | |||||||||
Accounts payable and accrued expenses | -9,576 | -8,416 | -17,992 | |||||||||
Other(1) | -20,292 | 19,078 | -1,214 | |||||||||
Net cash from (used in) operating activities | -3,336 | 62,451 | 59,115 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -28,213 | -18,990 | -47,203 | |||||||||
Proceeds on sale of property, plant and equipment | 470 | 370 | 840 | |||||||||
Proceeds on maturity of marketable securities | 15,753 | - | 15,753 | |||||||||
Net cash from (used in) investing activities | -11,990 | -18,620 | -30,610 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -3,378 | -32,062 | -35,440 | |||||||||
Repayment of capital lease obligations | -945 | -1,788 | -2,733 | |||||||||
Proceeds from (repayment of) credit facilities, net | 6,031 | - | 6,031 | |||||||||
Payment of note issuance costs | -409 | -2,161 | -2,570 | |||||||||
Proceeds from government grants | 4,061 | 984 | 5,045 | |||||||||
Net cash from (used in) financing activities | 5,360 | -35,027 | -29,667 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | 221 | 2,081 | 2,302 | |||||||||
Net increase (decrease) in cash and cash equivalents | -9,745 | 10,885 | 1,140 | |||||||||
Cash and cash equivalents, beginning of year | 58,152 | 78,147 | 136,299 | |||||||||
Cash and cash equivalents, end of year | $ | 48,407 | $ | 89,032 | $ | 137,439 | ||||||
___________________________ | ||||||||||||
-1 | Includes intercompany working capital related transactions. | |||||||||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2011 | ||||||||||||
Restricted Group | Unrestricted Subsidiaries | Consolidated Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | 55,408 | $ | 19,762 | $ | 75,170 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | - | 1,974 | 1,974 | |||||||||
Depreciation and amortization | 41,875 | 36,077 | 77,952 | |||||||||
Deferred income taxes | 4,160 | -7,469 | -3,309 | |||||||||
Stock compensation expense | 4,607 | - | 4,607 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | -374 | - | -374 | |||||||||
Other | 431 | 685 | 1,116 | |||||||||
Changes in working capital | ||||||||||||
Receivables | 4,530 | -6,763 | -2,233 | |||||||||
Inventories | -14,162 | -10,492 | -24,654 | |||||||||
Accounts payable and accrued expenses | 8,167 | 11,670 | 19,837 | |||||||||
Other(1) | -11,836 | 16,326 | 4,490 | |||||||||
Net cash from (used in) operating activities | 92,806 | 61,770 | 154,576 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -41,079 | -11,547 | -52,626 | |||||||||
Proceeds on sale of property, plant and equipment | 456 | 676 | 1,132 | |||||||||
Purchase of marketable securities | -16,343 | - | -16,343 | |||||||||
Note receivable | 3,988 | - | 3,988 | |||||||||
Net cash from (used in) investing activities | -52,978 | -10,871 | -63,849 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -35,477 | -32,225 | -67,702 | |||||||||
Repayment of capital lease obligations | -1,823 | -2,272 | -4,095 | |||||||||
Proceeds from (repayment of) credit facilities, net | -20,491 | - | -20,491 | |||||||||
Proceeds from government grants | 19,898 | 151 | 20,049 | |||||||||
Purchase of treasury shares | -10,623 | - | -10,623 | |||||||||
Net cash from (used in) financing activities | -48,516 | -34,346 | -82,862 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | -990 | -3,176 | -4,166 | |||||||||
Net increase (decrease) in cash and cash equivalents | -9,678 | 13,377 | 3,699 | |||||||||
Cash and cash equivalents, beginning of year | 67,830 | 64,770 | 132,600 | |||||||||
Cash and cash equivalents, end of year | $ | 58,152 | $ | 78,147 | $ | 136,299 | ||||||
___________________________ | ||||||||||||
-1 | Includes intercompany working capital related transactions. | |||||||||||
The_Company_And_Summary_Of_Sig1
The Company And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
The Company And Summary Of Significant Accounting Policies [Abstract] | ' |
Background | ' |
Background | |
Mercer International Inc. ("Mercer Inc." or the "Company") is a Washington corporation and the Company's shares of common stock are quoted and listed for trading on the NASDAQ Global Market and the Toronto Stock Exchange. | |
Mercer Inc. operates three pulp manufacturing facilities, one in Canada and two in Germany, and is one of the largest producers of market northern bleached softwood kraft ("NBSK") pulp in the world. | |
In these Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars ("$" or "U.S. dollar"). The symbol "€" refers to the Euro and the symbol "C$" refers to Canadian dollars. | |
Basis of Presentation | ' |
Basis of Presentation | |
These Consolidated Financial Statements contained herein include the accounts of the Company and its wholly-owned and majority-owned subsidiaries (collectively, the "Company"). The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). All significant inter-company balances and transactions have been eliminated upon consolidation. | |
Effective October 1, 2013, the Company changed its reporting currency from the Euro to the U.S. dollar, to enhance communication and understanding with its shareholders, analysts and other stakeholders and improve comparability of the Company's financial information with its competitors and peer group companies. With the change in reporting currency, all comparative financial information has been restated from Euros to U.S. dollars to reflect the Company's consolidated financial statements as if it had been historically reported in U.S. dollars, consistent with the Company's currency translation policy described below in Foreign Operations and Currency Translation. | |
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, doubtful accounts and reserves, depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, derivative financial instruments, legal liabilities, asset retirement obligations, pensions and post-retirement benefit obligations, income taxes, contingencies and inventory obsolescence and provisions. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. | |
Investments | ' |
Investments | |
Investments in debt securities and equity investments in publicly traded companies in which the Company does not exercise significant influence are classified as available-for-sale securities. These securities are reported at fair values; based upon quoted market prices, with the unrealized gains or losses included in accumulated other comprehensive income as a separate component of shareholders' equity, until realized. If a loss in value in available-for-sale securities is considered to be other than temporary, the loss is recognized in the determination of net income. The cost of all securities sold is based on the specific identification method to determine realized gains or losses. | |
Inventories | ' |
Inventories | |
Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value. Other materials and spare parts are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include both roundwood (logs) and wood chips. These inventories are located both at the pulp mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of roundwood and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. Buildings are depreciated over 10 to 50 years and production equipment and other primarily over 25 years. | |
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. To determine recoverability, the Company compares the carrying value of the assets to the estimated future undiscounted cash flows. Measurement of an impairment loss for long-lived assets held for use is based on the fair value of the asset. | |
The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant, and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is charged to operations as incurred. | |
Leases | ' |
Leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item are capitalized at the present value of the minimum lease payments. Capital leases are depreciated over the lease term. Operating lease payments are recognized as an expense in the Consolidated Statement of Operations on a straight-line basis over the lease term. | |
Asset Retirement Obligation | ' |
The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. Obligations are recorded as a liability at fair value, with a corresponding increase to property, plant, and equipment, and are amortized over the remaining useful life of the related assets. The liability is accreted using a risk-free interest rate. | |
Government Grants | ' |
Government Grants | |
The Company records investment grants from federal and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the asset costs in the Consolidated Balance Sheet. | |
Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company's normal business operations, and are reported as a reduction of related expenses in the Consolidated Statement of Operations when received. | |
Note 1. The Company and Summary of Significant Accounting Policies (continued) | |
The Company is required to pay certain fees based on water consumption levels at its German mills. Accrued fees can be reduced upon the mills' demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. | |
To the extent that government grants have been received and not applied, these grants are recorded in cash with a corresponding adjustment to accounts payable and other in the Consolidated Balance Sheet due to the short-term nature of the related payments. | |
Deferred Note Issuance Costs | ' |
Deferred Note Issuance Costs | |
Note issuance costs are deferred and amortized as a component of interest expense in the Consolidated Statement of Operations over the term of the related debt instrument. | |
Pensions | ' |
Pensions | |
The Company maintains a defined benefit pension plan for its salaried employees at its Celgar mill which is funded and non-contributory. The cost of the benefits earned by the salaried employees is determined using the projected benefit method prorated on services. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10% of the greater of the accrued benefit obligation and the fair value of plan assets as of the beginning of the period. The Company recognizes the net funded status of the plan. | |
In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are charged against earnings in the Consolidated Statement of Operations. | |
Foreign Operations and Currency Translation | ' |
Foreign Operations and Currency Translation | |
The Company translates foreign assets and liabilities of its subsidiaries, other than those denominated in U.S. dollars, at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the average rate of exchange throughout the year. Transaction gains and losses related to net assets primarily located in Canada and Germany are recognized as unrealized foreign currency translation adjustments within accumulated other comprehensive income in shareholders' equity, until all of the investment in the subsidiaries is sold or liquidated. The translation adjustments do not recognize the effect of income tax when the Company expects earnings of the foreign subsidiary to be indefinitely reinvested. The income tax effect on currency translation adjustments related to foreign subsidiaries that are not considered indefinitely reinvested is recorded as a component of deferred taxes in the Consolidated Balance Sheet with an offset to other comprehensive income. Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are included in costs and expenses in the Consolidated Statement of Operations. Where inter-company loans are of a long-term investment nature, the after-tax effect of exchange rate changes are included as an unrealized foreign currency translation adjustment within accumulated other comprehensive income in shareholders' equity. | |
Revenue and Related Cost Recognition | ' |
Revenue and Related Cost Recognition | |
The Company recognizes revenue from product, transportation, chemical and other sales when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, title of ownership and risk of loss have passed to the customer and collectability is reasonably assured. Sales are reported net of discounts and allowances. | |
Amounts charged to customers for shipping and handling are recognized as revenue in the Consolidated Statement of Operations. Shipping and handling costs incurred by the Company are included in operating costs in the Consolidated Statement of Operations. | |
The Company reports revenue from sales of surplus electricity and the sale of chemicals as energy and chemical revenues in the Consolidated Statement of Operations. Energy revenues are recognized as the electricity is consumed by customers and when collection is reasonably assured. These revenues include an estimate of the value of electricity transferred to customers in the year but billed subsequent to year-end. Customer bills are based on agreed upon rates and meter readings that indicate electricity consumption. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company recognizes stock-based compensation expense over an award's vesting period based on the award's fair value in selling, general, and administrative expenses within the Consolidated Statement of Operations. | |
The fair value of performance share units is re-measured at each balance sheet date by multiplying the market price of a share of Mercer Inc. common shares by the expected number of common shares to be awarded. The cumulative effect of the change in fair value is recognized in the period of the change as an adjustment to compensation cost. The Company estimates forfeitures of performance share units based on management's expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. | |
The fair value of restricted share awards is determined by multiplying the market price of a share of Mercer Inc. common shares on the grant date by the number of units granted. | |
Income Taxes | ' |
Income Taxes | |
Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. | |
Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all current deferred tax liabilities and assets are offset and presented as a single net amount and all noncurrent deferred tax liabilities and assets are offset and presented as a single net amount. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
The Company occasionally enters into derivative financial instruments, including foreign currency forward contracts, electricity forward contracts, interest rate swaps, and pulp price swaps to limit exposures to changes in foreign currency exchange rates, energy prices, interest rates, and pulp prices. These derivative instruments are not designated as hedging instruments. The change in fair value of electricity derivative contracts is included in operating costs in the Consolidated Statement of Operations and any changes in the fair value of foreign currency, interest rate, and pulp price derivative contracts are recognized in gain (loss) on derivative instruments in the Consolidated Statement of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. | |
Net Income (Loss) Per Share Attributable To Common Shareholders | ' |
Net Income (Loss) Per Share Attributable to Common Shareholders | |
Basic net income (loss) per share attributable to common shareholders ("EPS") is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted income (loss) per share attributable to common shareholders is calculated to give effect to all potentially dilutive common shares outstanding by applying the "Treasury Stock" and "If-Converted" methods. Outstanding stock options, restricted shares, performance shares, performance share units, and convertible notes represent the only potentially dilutive effects on the Company's weighted average shares. | |
New Accounting Standards | ' |
New Accounting Standards | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent's investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a step acquisition for a foreign entity. The update does not change the requirement to release a pro-rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. The amendments are effective for interim and annual periods beginning after December 15, 2013 and will not have an impact on the Company's consolidated financial statements unless one or more of the derecognition events stated above occur after the effective date. | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss ("NOL") carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The amendments are effective for interim and annual periods beginning after December 15, 2013. The Company has determined these changes will not have a material impact on the consolidated financial statements. | |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Cash and Cash Equivalents [Abstract] | ' | |||||
Schedule of Cash and Cash Equivalents | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Cash and cash equivalents | $ | 147,728 | $ | 137,439 | ||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Receivables [Abstract] | ' | |||||
Schedule of Receivables | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Sale of pulp, energy and chemicals, net of allowance | ||||||
of $178 (2012 – $148) | $ | 124,579 | $ | 133,764 | ||
Value added tax | 4,545 | 5,656 | ||||
Other non-trade receivables | 6,769 | 5,730 | ||||
$ | 135,893 | $ | 145,150 | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Inventories [Abstract] | ' | |||||
Components of Inventory | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Raw materials | $ | 66,356 | $ | 60,688 | ||
Finished goods | 54,982 | 50,326 | ||||
Spare parts and other | 49,570 | 44,965 | ||||
$ | 170,908 | $ | 155,979 | |||
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Schedule Of Property, Plant And Equipment | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Land | $ | 34,421 | $ | 33,210 | ||
Buildings | 194,676 | 177,198 | ||||
Production equipment and other | 1,570,196 | 1,536,415 | ||||
1,799,293 | 1,746,823 | |||||
Less: accumulated depreciation | -760,662 | -680,317 | ||||
$ | 1,038,631 | $ | 1,066,506 | |||
Accounts_Payable_and_Other_Tab
Accounts Payable and Other (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Accounts Payable and Other [Abstract] | ' | |||||
Schedule of Accounts Payable and Other | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Trade payables | $ | 44,289 | $ | 39,896 | ||
Accrued expenses | 39,060 | 47,271 | ||||
Accrued interest | 10,697 | 11,522 | ||||
Capital leases, current portion (Note 19) | 2,254 | 2,582 | ||||
Current taxes payable (Note 9) | 1,132 | 9,516 | ||||
Other | 6,382 | 7,812 | ||||
$ | 103,814 | $ | 118,599 | |||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Debt [Abstract] | ' | |||||
Schedule Of Debt | ' | |||||
December 31, | ||||||
2013 | 2012 | |||||
Note payable to bank, included in a total loan credit facility of €828.0 | ||||||
million to finance the construction related to the Stendal mill (a) | $ | 568,945 | $ | 597,158 | ||
Senior notes, interest at 9.50% accrued and payable semi-annually, | ||||||
unsecured (b) | 336,382 | 284,361 | ||||
Credit agreement with a lender with respect to a revolving credit facility | ||||||
of C$40.0 million (c) | - | 6,031 | ||||
Term bank facility for a project at the Stendal mill of €17.0 million (d) | 21,179 | - | ||||
Loans payable to the noncontrolling shareholder of the Stendal mill (e) | 52,117 | 48,283 | ||||
Investment loan agreement with a lender with respect to a project at | ||||||
the Rosenthal mill of €4.4 million (f) | 749 | 2,152 | ||||
Credit agreement with a bank with respect to a revolving credit facility | ||||||
of €25.0 million (g) | - | - | ||||
Credit agreement with a bank with respect to a revolving credit facility | ||||||
of €5.0 million (h) | - | - | ||||
979,372 | 937,985 | |||||
Less: current portion | -60,355 | -60,205 | ||||
Debt, less current portion | $ | 919,017 | $ | 877,780 | ||
Principal Maturities Of Debt | ' | |||||
Matures | Amount | |||||
2014 | $ | 60,355 | ||||
2015 | 65,566 | |||||
2016 | 65,566 | |||||
2017 | 787,885 | |||||
2018 | - | |||||
Thereafter | - | |||||
$ | 979,372 | |||||
Recovered_Sheet1
Pension And Other Post-Retirement Benefit Obligations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ' | |||||||||||
Schedule of Changes in Projected Benefit Obligations, Reconciliation of Fair Value of Plan Assets, and Components of Net Benefit Costs | ' | |||||||||||
Information about the Celgar Plans, in aggregate for the year ended December 31, 2013 is as follows: | ||||||||||||
2013 | ||||||||||||
Pension | Other Post-Retirement Benefit Obligations | Total | ||||||||||
Change in benefit obligation | ||||||||||||
Benefit obligation, December 31, 2012 | $ | 48,639 | $ | 28,314 | $ | 76,953 | ||||||
Service cost | 137 | 753 | 890 | |||||||||
Interest cost | 1,836 | 1,108 | 2,944 | |||||||||
Benefit payments | -2,772 | -767 | -3,539 | |||||||||
Special termination benefits | 277 | - | 277 | |||||||||
Actuarial losses (gains) | -1,472 | 943 | -529 | |||||||||
Foreign currency exchange rate changes | -3,079 | -1,893 | -4,972 | |||||||||
Benefit obligation, December 31, 2013 | 43,566 | 28,458 | 72,024 | |||||||||
Reconciliation of fair value of plan assets | ||||||||||||
Fair value of plan assets, December 31, 2012 | 33,647 | - | 33,647 | |||||||||
Actual returns | 4,686 | - | 4,686 | |||||||||
Contributions | 2,111 | 767 | 2,878 | |||||||||
Benefit payments | -2,772 | -767 | -3,539 | |||||||||
Foreign currency exchange rate changes | -2,300 | - | -2,300 | |||||||||
Fair value of plan assets, December 31, 2013 | 35,372 | - | 35,372 | |||||||||
Funded status, December 31, 2013 (1) | $ | -8,194 | $ | -28,458 | $ | -36,652 | ||||||
Components of the net benefit cost recognized | ||||||||||||
Service cost | $ | 137 | $ | 753 | $ | 890 | ||||||
Interest cost | 1,836 | 1,108 | 2,944 | |||||||||
Expected return on plan assets | -2,133 | - | -2,133 | |||||||||
Special termination benefits | 277 | - | 277 | |||||||||
Amortization of unrecognized items | 1,439 | 116 | 1,555 | |||||||||
Net benefit costs | $ | 1,556 | $ | 1,977 | $ | 3,533 | ||||||
(1)The total of $36,796 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation. | ||||||||||||
Note 8. Pension and Other Post-Retirement Benefit Obligations (continued) | ||||||||||||
Information about the Celgar Plans, in aggregate for the year ended December 31, 2012 is as follows: | ||||||||||||
2012 | ||||||||||||
Pension | Other Post-Retirement Benefit Obligations | Total | ||||||||||
Change in benefit obligation | ||||||||||||
Benefit obligation, December 31, 2011 | $ | 46,413 | $ | 25,681 | $ | 72,094 | ||||||
Service cost | 144 | 725 | 869 | |||||||||
Interest cost | 1,961 | 1,126 | 3,087 | |||||||||
Benefit payments | -2,449 | -777 | -3,226 | |||||||||
Actuarial losses (gains) | 1,534 | 980 | 2,514 | |||||||||
Foreign currency exchange rate changes | 1,036 | 579 | 1,615 | |||||||||
Benefit obligation, December 31, 2012 | 48,639 | 28,314 | 76,953 | |||||||||
Reconciliation of fair value of plan assets | ||||||||||||
Fair value of plan assets, December 31, 2011 | 30,789 | - | 30,789 | |||||||||
Actual returns | 2,449 | - | 2,449 | |||||||||
Contributions | 2,164 | 777 | 2,941 | |||||||||
Benefit payments | -2,449 | -777 | -3,226 | |||||||||
Foreign currency exchange rate changes | 694 | - | 694 | |||||||||
Fair value of plan assets, December 31, 2012 | 33,647 | - | 33,647 | |||||||||
Funded status, December 31, 2012 (1) | $ | -14,992 | $ | -28,314 | $ | -43,306 | ||||||
Components of the net benefit cost recognized | ||||||||||||
Service cost | $ | 144 | $ | 725 | $ | 869 | ||||||
Interest cost | 1,961 | 1,126 | 3,087 | |||||||||
Expected return on plan assets | -2,105 | - | -2,105 | |||||||||
Amortization of unrecognized items | 1,453 | 7 | 1,460 | |||||||||
Net benefit costs | $ | 1,453 | $ | 1,858 | $ | 3,311 | ||||||
(1)The total of $43,450 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation. | ||||||||||||
Estimated future benefit payments | ' | |||||||||||
Amount | ||||||||||||
2014 | $ | 3,656 | ||||||||||
2015 | 3,824 | |||||||||||
2016 | 3,943 | |||||||||||
2017 | 4,052 | |||||||||||
2018 | 4,173 | |||||||||||
2019 – 2023 | 22,311 | |||||||||||
Summary of Key Assumptions | ' | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Benefit obligations | ||||||||||||
Discount rate | 4.50% | 4.00% | ||||||||||
Rate of compensation increase | 2.75% | 2.75% | ||||||||||
Net benefit cost for year ended | ||||||||||||
Discount rate | 4.00% | 4.25% | ||||||||||
Rate of compensation increase | 2.75% | 2.75% | ||||||||||
Expected rate of return on plan assets | 6.60% | 6.75% | ||||||||||
Assumed health care cost trend rate at | ||||||||||||
Initial health care cost trend rate | 8.00% | 8.50% | ||||||||||
Annual rate of decline in trend rate | 0.50% | 0.50% | ||||||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | ||||||||||
Medical services plan premiums trend rate | 4.50% | 6.00% | ||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ' | |||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||
1% | 1% | 1% | 1% | |||||||||
Increase | Decrease | Increase | Decrease | |||||||||
Effect on total service and interest rate components | $ | 51 | $ | -53 | $ | 50 | $ | -53 | ||||
Effect on post-retirement benefit obligation | $ | 927 | $ | -896 | $ | 957 | $ | -921 | ||||
Schedule of Asset Allocation of Funded Plans | ' | |||||||||||
Target | 2013 | 2012 | ||||||||||
Equity securities | 60% | 64% | 58% | |||||||||
Debt securities | 40% | 36% | 42% | |||||||||
Cash and cash equivalents | 0% | 0% | 0% | |||||||||
100% | 100% | |||||||||||
Pension Plan Asset Fair Value Measurements | ' | |||||||||||
Asset category | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | ||||||||
Leith Wheeler Diversified Funds | $ | 22,458 | $ | - | $ | - | $ | 22,458 | ||||
Phillips, Hagar and North Bond Fund | 12,821 | - | - | 12,821 | ||||||||
Cash | 93 | - | - | 93 | ||||||||
Total assets | $ | 35,372 | $ | - | $ | - | $ | 35,372 | ||||
Schedule of Multiemployer Plan | ' | |||||||||||
Expiration | ||||||||||||
Date of | Are the Company's | |||||||||||
Provincially | Collective | Contributions Greater Than | ||||||||||
Registered | Bargaining | 5% of Total Contributions | ||||||||||
Legal name | Plan Number | Agreement | 2013 | 2012 | ||||||||
April 30, | ||||||||||||
The Pulp and Paper Industry Pension Plan | P085324 | 2017 | Yes | Yes | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule Of Unrecognized Tax Benefits Roll Forward | ' | ||||||||
2013 | 2012 | ||||||||
Balance at January 1 | $ | 82,934 | $ | 1,427 | |||||
Reduction prior year tax positions | -82,934 | -1,427 | |||||||
Addition of current year tax positions | - | 82,934 | |||||||
Balance at December 31 | $ | - | $ | 82,934 | |||||
Reconciliation Of Effective Tax Rate | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
U.S. Federal statutory rate | 35% | 35% | 35% | ||||||
U.S. Federal statutory rate on (income) loss before income | |||||||||
taxes and noncontrolling interest | $ | 5,797 | $ | 1,439 | $ | -25,971 | |||
Tax differential on foreign income | 736 | 874 | 7,892 | ||||||
Effect of foreign earnings | -945 | -8,382 | -13,788 | ||||||
Valuation allowance | -17,040 | -17,529 | 12,897 | ||||||
Tax benefit of partnership structure | 5,942 | 6,785 | 7,285 | ||||||
Pension adjustment | -1,206 | 174 | 2,595 | ||||||
Non-taxable foreign subsidiaries | 1,696 | 1,897 | 5,601 | ||||||
Research and development expense | 1,319 | 3,436 | - | ||||||
Prior year adjustments | -5,749 | - | - | ||||||
Other | 254 | 1,927 | 4,457 | ||||||
$ | -9,196 | $ | -9,379 | $ | 968 | ||||
Comprised of: | |||||||||
Current | $ | 2,286 | $ | -9,531 | $ | -2,341 | |||
Deferred | -11,482 | 152 | 3,309 | ||||||
$ | -9,196 | $ | -9,379 | $ | 968 | ||||
Deferred Tax Assets And Liabilities | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
German tax loss carryforwards | $ | 123,735 | $ | 100,251 | |||||
U.S. tax loss carryforwards | 44,718 | 36,090 | |||||||
Canadian tax loss carryforwards | 11,606 | 40,992 | |||||||
Basis difference between income tax and financial reporting with | |||||||||
respect to operating pulp mills | -64,252 | -71,191 | |||||||
Derivative financial instruments | 13,060 | 18,760 | |||||||
Long-term debt | 2,204 | 2,066 | |||||||
Payable and accrued expenses | 578 | -257 | |||||||
Deferred pension liability | 9,605 | 10,810 | |||||||
Capital leases | 2,574 | 2,816 | |||||||
Research and development expense pool | 4,573 | 3,523 | |||||||
Other | 1,400 | 1,323 | |||||||
149,801 | 145,183 | ||||||||
Valuation allowance | -140,768 | -123,728 | |||||||
Net deferred tax asset | $ | 9,033 | $ | 21,455 | |||||
Comprised of: | |||||||||
Deferred income tax asset – current | $ | 6,326 | $ | 5,887 | |||||
Deferred income tax asset – non-current | 17,157 | 23,159 | |||||||
Deferred income tax liability – non-current | -14,450 | -7,591 | |||||||
Net deferred tax asset | $ | 9,033 | $ | 21,455 | |||||
Summary of valuation allowance | ' | ||||||||
2013 | 2012 | ||||||||
Balance at January 1 | $ | 123,728 | $ | 106,199 | |||||
Additions (reversals) | |||||||||
United States | 10,134 | 477 | |||||||
Canada | 12,324 | 15,844 | |||||||
Germany | -5,681 | -71 | |||||||
The impact of changes in foreign exchange rates | 263 | 1,279 | |||||||
Balance at December 31 | $ | 140,768 | $ | 123,728 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | ' | |||||||||||||
Outstanding Options | Exercisable Options | |||||||||||||
Exercise Price | Number | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number | Weighted Average Exercise Price | |||||||||
(U.S. dollars) | (U.S. dollars) | (U.S. dollars) | ||||||||||||
$ | 7.30 | 30,000 | 1.57 | $ | 7.30 | 30,000 | $ | 7.30 | ||||||
$ | 7.92 | 45,000 | 1.69 | $ | 7.92 | 45,000 | $ | 7.92 | ||||||
Performance Share Units [Member] | ' | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||
Summary Of Share Based Compensation Arrangement Activity | ' | |||||||||||||
Number of PSUs | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Outstanding at January 1 | 786,129 | 795,312 | 534,783 | |||||||||||
Granted | 40,499 | 55,478 | 812,575 | |||||||||||
Vested and issued | - | - | -474,728 | |||||||||||
Cancelled | - | - | -60,055 | |||||||||||
Forfeited | -35,196 | -64,661 | -17,263 | |||||||||||
Outstanding at December 31 | 791,432 | 786,129 | 795,312 | |||||||||||
Restricted Stock [Member] | ' | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||||||||||||
Summary Of Share Based Compensation Arrangement Activity | ' | |||||||||||||
Number of Restricted Shares | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Outstanding at January 1 | 196,500 | 238,000 | 56,000 | |||||||||||
Granted | 38,000 | 36,500 | 238,000 | |||||||||||
Vested | -76,500 | -78,000 | -56,000 | |||||||||||
Outstanding at December 31 | 158,000 | 196,500 | 238,000 | |||||||||||
Net_Income_Loss_Per_Share_Attr1
Net Income (Loss) Per Share Attributable To Common Shareholders (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Net Income (Loss) Per Share Attributable To Common Shareholders [Abstract] | ' | ||||||||
Schedule Of Net Income (Loss) Per Share Attributable To Common Shareholders | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Net income (loss) attributable to common shareholders | |||||||||
– basic | $ | -26,375 | $ | -15,670 | $ | 69,699 | |||
Interest on convertible notes, net of tax | - | - | 1,110 | ||||||
Net income (loss) attributable to common shareholders | |||||||||
– diluted | $ | -26,375 | $ | -15,670 | $ | 70,809 | |||
Net income (loss) per share attributable to common | |||||||||
shareholders | |||||||||
Basic | $ | -0.47 | $ | -0.28 | $ | 1.39 | |||
Diluted | $ | -0.47 | $ | -0.28 | $ | 1.24 | |||
Weighted average number of common shares outstanding: | |||||||||
Basic(1) | 55,673,838 | 55,596,761 | 50,116,982 | ||||||
Effect of dilutive shares: | |||||||||
Performance shares and PSUs | - | - | 544,853 | ||||||
Restricted shares | - | - | 87,923 | ||||||
Stock options and awards | - | - | 57,483 | ||||||
Convertible notes | - | - | 6,178,778 | ||||||
Diluted | 55,673,838 | 55,596,761 | 56,986,019 | ||||||
________ | |||||||||
(1) The basic weighted average number of shares excludes 158,000 restricted shares which have been issued, but have not vested as at December 31, 2013 (2012 – 196,500 restricted shares; 2011 – 238,000 restricted shares). | |||||||||
Schedule of Antidilutive Instruments Excluded from Computation of Net Income (Loss) Per Share | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Stock options and awards | 75,000 | 175,000 | - | ||||||
PSUs | 791,432 | 786,129 | - | ||||||
Restricted shares | 158,000 | 196,500 | - | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Accumulated Other Comprehensive Income, Net of Tax [Abstract] | ' | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Foreign currency translation adjustments | $ | 47,756 | $ | 49,489 | ||
Unrecognized losses and prior service costs | ||||||
related to defined benefit plans | -16,414 | -21,050 | ||||
Unrealized gains on marketable securities | 128 | 138 | ||||
Accumulated other comprehensive income | $ | 31,470 | $ | 28,577 | ||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Segment Information [Abstract] | ' | ||||||||
Schedule Of Net Sales To External Customers By Geographic Area Based On Location Of The Customer | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Germany | $ | 309,399 | $ | 293,733 | $ | 357,106 | |||
China | 300,827 | 295,797 | 326,610 | ||||||
Other European Union countries (1) | 224,988 | 216,846 | 244,884 | ||||||
Italy | 65,654 | 55,443 | 71,695 | ||||||
Other Asia | 49,855 | 42,692 | 42,970 | ||||||
North America | 30,404 | 61,103 | 96,520 | ||||||
Other countries | 2,748 | 2,099 | 1,146 | ||||||
983,875 | 967,713 | 1,140,931 | |||||||
Energy and chemical revenues | 92,198 | 92,966 | 94,758 | ||||||
Third party transportation revenues | 12,312 | 12,057 | 16,275 | ||||||
$ | 1,088,385 | $ | 1,072,736 | $ | 1,251,964 | ||||
________ | |||||||||
(1)Not including Germany or Italy; includes new entrant countries to the European Union from their time of admission. | |||||||||
Schedule Of Total Long-Lived Assets By Geographic Area Based On Location Of The Asset | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Germany | $ | 843,777 | $ | 839,535 | |||||
Canada | 194,854 | 226,971 | |||||||
$ | 1,038,631 | $ | 1,066,506 | ||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Derivative Transactions [Abstract] | ' | ||||||||
Schedule of gains and losses by type of derivative recognized in gain (loss) on derivative instruments in the Consolidated Statement of Operations | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Interest rate derivative contract | $ | 22,476 | $ | 2,204 | $ | -1,974 | |||
Pulp price derivative contracts | -2,767 | 2,608 | - | ||||||
$ | 19,709 | $ | 4,812 | $ | -1,974 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Fair Value Of Financial Instruments | ' | |||||||||||
2013 | 2012 | |||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Cash and cash equivalents | $ | 147,728 | $ | 147,728 | $ | 137,439 | $ | 137,439 | ||||
Marketable securities | $ | 217 | $ | 217 | $ | 243 | $ | 243 | ||||
Receivables | $ | 135,893 | $ | 135,893 | $ | 145,150 | $ | 145,150 | ||||
Pulp price derivative contracts – asset | $ | - | $ | - | $ | 982 | $ | 982 | ||||
Accounts payable and other | $ | 103,814 | $ | 103,814 | $ | 118,599 | $ | 118,599 | ||||
Debt | $ | 979,372 | $ | 980,982 | $ | 937,985 | $ | 922,951 | ||||
Interest rate derivative contract – liability | $ | 46,517 | $ | 46,517 | $ | 66,819 | $ | 66,819 | ||||
Outstanding Financial Instruments And Estimated Fair Values | ' | |||||||||||
Fair value measurements at December 31, 2013 using: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets | ||||||||||||
Marketable securities | $ | 217 | $ | - | $ | - | $ | 217 | ||||
Liabilities | ||||||||||||
Interest rate derivative contract | $ | - | $ | 46,517 | $ | - | $ | 46,517 | ||||
Debt | - | 367,405 | 613,577 | 980,982 | ||||||||
$ | - | $ | 413,922 | $ | 613,577 | $ | 1,027,499 | |||||
Fair value measurements at December 31, 2012 using: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets | ||||||||||||
Marketable securities | $ | 243 | $ | - | $ | - | $ | 243 | ||||
Pulp price derivative contracts | - | 982 | - | 982 | ||||||||
$ | 243 | $ | 982 | $ | - | $ | 1,225 | |||||
Liabilities | ||||||||||||
Interest rate derivative contract | $ | - | $ | 66,819 | $ | - | $ | 66,819 | ||||
Debt | - | 308,894 | 614,057 | 922,951 | ||||||||
$ | - | $ | 375,713 | $ | 614,057 | $ | 989,770 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Lease Commitments [Abstract] | ' | |||||
Schedule Of Minimum Lease Payment | ' | |||||
Capital | Operating | |||||
Leases | Leases | |||||
2014 | $ | 2,406 | $ | 2,280 | ||
2015 | 2,414 | 2,076 | ||||
2016 | 2,263 | 1,295 | ||||
2017 | 1,511 | 1,239 | ||||
2018 | 880 | 1,237 | ||||
Thereafter | 3,111 | 929 | ||||
Total | 12,585 | $ | 9,056 | |||
Less: imputed interest | 1,771 | |||||
Total present value of minimum capitalized payments | 10,814 | |||||
Less: current portion of capital lease obligations | 2,254 | |||||
Long-term capital lease obligations | $ | 8,560 | ||||
Restricted_Group_Supplemental_1
Restricted Group Supplemental Disclosure (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restricted Group Supplemental Disclosure [Abstract] | ' | |||||||||||
Combined Condensed Balance Sheets | ' | |||||||||||
Combined Condensed Balance Sheets | ||||||||||||
31-Dec-13 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 82,910 | $ | 64,818 | $ | - | $ | 147,728 | ||||
Receivables | 75,987 | 59,906 | - | 135,893 | ||||||||
Inventories | 93,807 | 77,101 | - | 170,908 | ||||||||
Prepaid expenses and other | 7,742 | 3,176 | - | 10,918 | ||||||||
Deferred income tax | 3,273 | 3,053 | - | 6,326 | ||||||||
Total current assets | 263,719 | 208,054 | - | 471,773 | ||||||||
Long-term assets | ||||||||||||
Property, plant and equipment | 420,373 | 618,258 | - | 1,038,631 | ||||||||
Deferred note issuance costs and other | 10,987 | 10,011 | - | 20,998 | ||||||||
Deferred income tax | 9,894 | 7,263 | - | 17,157 | ||||||||
Due from unrestricted group | 153,851 | - | -153,851 | - | ||||||||
Total assets | $ | 858,824 | $ | 843,586 | $ | -153,851 | $ | 1,548,559 | ||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable and other | $ | 49,891 | $ | 53,923 | $ | - | $ | 103,814 | ||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 1,330 | - | - | 1,330 | ||||||||
Debt | 749 | 59,606 | - | 60,355 | ||||||||
Total current liabilities | 51,970 | 113,529 | - | 165,499 | ||||||||
Long-term liabilities | ||||||||||||
Debt | 336,382 | 582,635 | - | 919,017 | ||||||||
Due to restricted group | - | 153,851 | -153,851 | - | ||||||||
Interest rate derivative liability | - | 46,517 | - | 46,517 | ||||||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 35,466 | - | - | 35,466 | ||||||||
Capital leases and other | 8,523 | 10,770 | - | 19,293 | ||||||||
Deferred income tax | 14,450 | - | - | 14,450 | ||||||||
Total liabilities | 446,791 | 907,302 | -153,851 | 1,200,242 | ||||||||
EQUITY | ||||||||||||
Total shareholders' equity (deficit) | 412,033 | -52,955 | - | 359,078 | ||||||||
Noncontrolling interest (deficit) | - | -10,761 | - | -10,761 | ||||||||
Total liabilities and equity | $ | 858,824 | $ | 843,586 | $ | -153,851 | $ | 1,548,559 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Balance Sheets | ||||||||||||
31-Dec-12 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 48,407 | $ | 89,032 | $ | - | $ | 137,439 | ||||
Receivables | 80,708 | 64,442 | - | 145,150 | ||||||||
Inventories | 98,606 | 57,373 | - | 155,979 | ||||||||
Prepaid expenses and other | 7,661 | 2,764 | - | 10,425 | ||||||||
Deferred income tax | 2,885 | 3,002 | - | 5,887 | ||||||||
Total current assets | 238,267 | 216,613 | - | 454,880 | ||||||||
Long-term assets | ||||||||||||
Property, plant and equipment | 455,293 | 611,213 | - | 1,066,506 | ||||||||
Deferred note issuance costs and other | 8,712 | 7,324 | - | 16,036 | ||||||||
Deferred income tax | 12,102 | 11,057 | - | 23,159 | ||||||||
Due from unrestricted group | 134,897 | - | -134,897 | - | ||||||||
Total assets | $ | 849,271 | $ | 846,207 | $ | -134,897 | $ | 1,560,581 | ||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable and other | $ | 55,517 | $ | 63,082 | $ | - | $ | 118,599 | ||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 1,072 | - | - | 1,072 | ||||||||
Debt | 7,465 | 52,740 | - | 60,205 | ||||||||
Total current liabilities | 64,054 | 115,822 | - | 179,876 | ||||||||
Long-term liabilities | ||||||||||||
Debt | 285,079 | 592,701 | - | 877,780 | ||||||||
Due to restricted group | - | 134,897 | -134,897 | - | ||||||||
Interest rate derivative liability | - | 66,819 | - | 66,819 | ||||||||
Pension and other post-retirement benefit | ||||||||||||
obligations | 42,378 | - | - | 42,378 | ||||||||
Capital leases and other | 8,008 | 10,367 | - | 18,375 | ||||||||
Deferred income tax | 7,591 | - | - | 7,591 | ||||||||
Total liabilities | 407,110 | 920,606 | -134,897 | 1,192,819 | ||||||||
EQUITY | ||||||||||||
Total shareholders' equity (deficit) | 442,161 | -53,057 | - | 389,104 | ||||||||
Noncontrolling interest (deficit) | - | -21,342 | - | -21,342 | ||||||||
Total liabilities and equity | $ | 849,271 | $ | 846,207 | $ | -134,897 | $ | 1,560,581 | ||||
Combined Condensed Statements Of Operations | ' | |||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 561,350 | $ | 434,837 | $ | - | $ | 996,187 | ||||
Energy and chemicals | 33,783 | 58,415 | - | 92,198 | ||||||||
595,133 | 493,252 | - | 1,088,385 | |||||||||
Operating costs | 498,952 | 421,880 | - | 920,832 | ||||||||
Operating depreciation and amortization | 43,498 | 34,811 | - | 78,309 | ||||||||
Selling, general and administrative expenses | 31,943 | 19,226 | - | 51,169 | ||||||||
Restructuring expenses | 5,029 | 1,386 | - | 6,415 | ||||||||
579,422 | 477,303 | - | 1,056,725 | |||||||||
Operating income | 15,711 | 15,949 | - | 31,660 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -32,321 | -45,011 | 8,176 | -69,156 | ||||||||
Gain (loss) on derivative instruments | -2,767 | 22,476 | - | 19,709 | ||||||||
Other income (expense) | 9,217 | 174 | -8,176 | 1,215 | ||||||||
Total other income (expense) | -25,871 | -22,361 | - | -48,232 | ||||||||
Income (loss) before income taxes | -10,160 | -6,412 | - | -16,572 | ||||||||
Income tax benefit (provision) | -9,365 | 169 | - | -9,196 | ||||||||
Net income (loss) | -19,525 | -6,243 | - | -25,768 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -607 | - | -607 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | -19,525 | $ | -6,850 | $ | - | $ | -26,375 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Eliminations | Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 545,205 | $ | 434,565 | $ | - | $ | 979,770 | ||||
Energy and chemicals | 36,638 | 56,328 | - | 92,966 | ||||||||
581,843 | 490,893 | - | 1,072,736 | |||||||||
Operating costs | 500,223 | 385,921 | - | 886,144 | ||||||||
Operating depreciation and amortization | 40,118 | 34,184 | - | 74,302 | ||||||||
Selling, general and administrative expenses | 31,688 | 17,580 | - | 49,268 | ||||||||
572,029 | 437,685 | - | 1,009,714 | |||||||||
Operating income | 9,814 | 53,208 | - | 63,022 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -30,125 | -48,934 | 7,292 | -71,767 | ||||||||
Gain (loss) on derivative instruments | 2,609 | 2,203 | - | 4,812 | ||||||||
Other income (expense) | 6,465 | 648 | -7,292 | -179 | ||||||||
Total other income (expense) | -21,051 | -46,083 | - | -67,134 | ||||||||
Income (loss) before income taxes | -11,237 | 7,125 | - | -4,112 | ||||||||
Income tax benefit (provision) | -7,050 | -2,329 | - | -9,379 | ||||||||
Net income (loss) | -18,287 | 4,796 | - | -13,491 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -2,179 | - | -2,179 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | -18,287 | $ | 2,617 | $ | - | $ | -15,670 | ||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Operations | ||||||||||||
Year Ended December 31, 2011 | ||||||||||||
Restricted Group | Unrestricted Subsidiaries | Eliminations | Consolidated Group | |||||||||
Revenues | ||||||||||||
Pulp | $ | 659,741 | $ | 497,465 | $ | - | $ | 1,157,206 | ||||
Energy and chemicals | 35,455 | 59,303 | - | 94,758 | ||||||||
695,196 | 556,768 | - | 1,251,964 | |||||||||
Operating costs | 532,471 | 433,252 | - | 965,723 | ||||||||
Operating depreciation and amortization | 41,535 | 36,076 | - | 77,611 | ||||||||
Selling, general and administrative expenses | 33,581 | 20,384 | - | 53,965 | ||||||||
607,587 | 489,712 | - | 1,097,299 | |||||||||
Operating income | 87,609 | 67,056 | - | 154,665 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | -34,639 | -54,386 | 6,911 | -82,114 | ||||||||
Gain (loss) on derivative instruments | - | -1,974 | - | -1,974 | ||||||||
Other income (expense) | 8,860 | 1,676 | -6,911 | 3,625 | ||||||||
Total other income (expense) | -25,779 | -54,684 | - | -80,463 | ||||||||
Income (loss) before income taxes | 61,830 | 12,372 | - | 74,202 | ||||||||
Income tax benefit (provision) | -6,422 | 7,390 | - | 968 | ||||||||
Net income (loss) | 55,408 | 19,762 | - | 75,170 | ||||||||
Less: net income attributable to noncontrolling | ||||||||||||
interest | - | -5,471 | - | -5,471 | ||||||||
Net income (loss) attributable to common | ||||||||||||
shareholders | $ | 55,408 | $ | 14,291 | $ | - | $ | 69,699 | ||||
Combined Condensed Statements Of Cash Flows | ' | |||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | -19,525 | $ | -6,243 | $ | -25,768 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | 982 | -22,476 | -21,494 | |||||||||
Depreciation and amortization | 43,833 | 34,812 | 78,645 | |||||||||
Deferred income taxes | 7,263 | 4,219 | 11,482 | |||||||||
Stock compensation expense | 3,574 | - | 3,574 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | 648 | - | 648 | |||||||||
Other | -360 | 3,529 | 3,169 | |||||||||
Changes in working capital | ||||||||||||
Receivables | 4,780 | 9,213 | 13,993 | |||||||||
Inventories | 1,965 | -16,528 | -14,563 | |||||||||
Accounts payable and accrued expenses | -6,026 | -5,543 | -11,569 | |||||||||
Other(1) | -13,621 | 11,829 | -1,792 | |||||||||
Net cash from (used in) operating activities | 23,513 | 12,812 | 36,325 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -13,183 | -32,524 | -45,707 | |||||||||
Acquisition of noncontrolling interest (Note 15) | -20,000 | 20,000 | - | |||||||||
Proceeds on sale of property, plant and equipment | 581 | 158 | 739 | |||||||||
Net cash from (used in) investing activities | -32,602 | -12,366 | -44,968 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -1,459 | -54,957 | -56,416 | |||||||||
Proceeds from issuance of notes and borrowings of debt | 52,250 | 22,222 | 74,472 | |||||||||
Repayment of capital lease obligations | -725 | -1,868 | -2,593 | |||||||||
Proceeds from (repayment of) credit facilities, net | -5,640 | - | -5,640 | |||||||||
Payment of note issuance costs | -1,829 | -2,026 | -3,855 | |||||||||
Proceeds from government grants | - | 9,265 | 9,265 | |||||||||
Net cash from (used in) financing activities | 42,597 | -27,364 | 15,233 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | 995 | 2,704 | 3,699 | |||||||||
Net increase (decrease) in cash and cash equivalents | 34,503 | -24,214 | 10,289 | |||||||||
Cash and cash equivalents, beginning of year | 48,407 | 89,032 | 137,439 | |||||||||
Cash and cash equivalents, end of year | $ | 82,910 | $ | 64,818 | $ | 147,728 | ||||||
_________________________ | ||||||||||||
-1 | Includes intercompany working capital related transactions. | |||||||||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
Restricted | Unrestricted | Consolidated | ||||||||||
Group | Subsidiaries | Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | -18,287 | $ | 4,796 | $ | -13,491 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | -983 | -2,203 | -3,186 | |||||||||
Depreciation and amortization | 40,474 | 34,183 | 74,657 | |||||||||
Deferred income taxes | 6,660 | -6,812 | -152 | |||||||||
Stock compensation expense | 2,616 | - | 2,616 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | 365 | - | 365 | |||||||||
Other | 1,574 | 3,417 | 4,991 | |||||||||
Changes in working capital | ||||||||||||
Receivables | -755 | 11,550 | 10,795 | |||||||||
Inventories | -5,132 | 6,858 | 1,726 | |||||||||
Accounts payable and accrued expenses | -9,576 | -8,416 | -17,992 | |||||||||
Other(1) | -20,292 | 19,078 | -1,214 | |||||||||
Net cash from (used in) operating activities | -3,336 | 62,451 | 59,115 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -28,213 | -18,990 | -47,203 | |||||||||
Proceeds on sale of property, plant and equipment | 470 | 370 | 840 | |||||||||
Proceeds on maturity of marketable securities | 15,753 | - | 15,753 | |||||||||
Net cash from (used in) investing activities | -11,990 | -18,620 | -30,610 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -3,378 | -32,062 | -35,440 | |||||||||
Repayment of capital lease obligations | -945 | -1,788 | -2,733 | |||||||||
Proceeds from (repayment of) credit facilities, net | 6,031 | - | 6,031 | |||||||||
Payment of note issuance costs | -409 | -2,161 | -2,570 | |||||||||
Proceeds from government grants | 4,061 | 984 | 5,045 | |||||||||
Net cash from (used in) financing activities | 5,360 | -35,027 | -29,667 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | 221 | 2,081 | 2,302 | |||||||||
Net increase (decrease) in cash and cash equivalents | -9,745 | 10,885 | 1,140 | |||||||||
Cash and cash equivalents, beginning of year | 58,152 | 78,147 | 136,299 | |||||||||
Cash and cash equivalents, end of year | $ | 48,407 | $ | 89,032 | $ | 137,439 | ||||||
___________________________ | ||||||||||||
-1 | Includes intercompany working capital related transactions. | |||||||||||
Note 21. Restricted Group Supplemental Disclosure (continued) | ||||||||||||
Combined Condensed Statements of Cash Flows | ||||||||||||
Year Ended December 31, 2011 | ||||||||||||
Restricted Group | Unrestricted Subsidiaries | Consolidated Group | ||||||||||
Cash flows from (used in) operating activities | ||||||||||||
Net income (loss) | $ | 55,408 | $ | 19,762 | $ | 75,170 | ||||||
Adjustments to reconcile net income (loss) to cash flows | ||||||||||||
from operating activities | ||||||||||||
Unrealized loss (gain) on derivative instruments | - | 1,974 | 1,974 | |||||||||
Depreciation and amortization | 41,875 | 36,077 | 77,952 | |||||||||
Deferred income taxes | 4,160 | -7,469 | -3,309 | |||||||||
Stock compensation expense | 4,607 | - | 4,607 | |||||||||
Pension and other post-retirement expense, net of | ||||||||||||
funding | -374 | - | -374 | |||||||||
Other | 431 | 685 | 1,116 | |||||||||
Changes in working capital | ||||||||||||
Receivables | 4,530 | -6,763 | -2,233 | |||||||||
Inventories | -14,162 | -10,492 | -24,654 | |||||||||
Accounts payable and accrued expenses | 8,167 | 11,670 | 19,837 | |||||||||
Other(1) | -11,836 | 16,326 | 4,490 | |||||||||
Net cash from (used in) operating activities | 92,806 | 61,770 | 154,576 | |||||||||
Cash flows from (used in) investing activities | ||||||||||||
Purchase of property, plant and equipment | -41,079 | -11,547 | -52,626 | |||||||||
Proceeds on sale of property, plant and equipment | 456 | 676 | 1,132 | |||||||||
Purchase of marketable securities | -16,343 | - | -16,343 | |||||||||
Note receivable | 3,988 | - | 3,988 | |||||||||
Net cash from (used in) investing activities | -52,978 | -10,871 | -63,849 | |||||||||
Cash flows from (used in) financing activities | ||||||||||||
Repayment of debt and purchase of notes | -35,477 | -32,225 | -67,702 | |||||||||
Repayment of capital lease obligations | -1,823 | -2,272 | -4,095 | |||||||||
Proceeds from (repayment of) credit facilities, net | -20,491 | - | -20,491 | |||||||||
Proceeds from government grants | 19,898 | 151 | 20,049 | |||||||||
Purchase of treasury shares | -10,623 | - | -10,623 | |||||||||
Net cash from (used in) financing activities | -48,516 | -34,346 | -82,862 | |||||||||
Effect of exchange rate changes on cash and cash | ||||||||||||
equivalents | -990 | -3,176 | -4,166 | |||||||||
Net increase (decrease) in cash and cash equivalents | -9,678 | 13,377 | 3,699 | |||||||||
Cash and cash equivalents, beginning of year | 67,830 | 64,770 | 132,600 | |||||||||
Cash and cash equivalents, end of year | $ | 58,152 | $ | 78,147 | $ | 136,299 | ||||||
___________________________ | ||||||||||||
Includes intercompany working capital related transactions. | ||||||||||||
The_Company_And_Summary_Of_Sig2
The Company And Summary Of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Summary of Significant Accounting Policies [Line Items] | ' |
Number of pulp mills | 3 |
Net actuarial gain (loss) percent that is exceeded for amortization | 10.00% |
Production equipment and other [Member] | ' |
Summary of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life | '25 years |
Minimum [Member] | Buildings [Member] | ' |
Summary of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life | '10 years |
Maximum [Member] | Buildings [Member] | ' |
Summary of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life | '50 years |
Germany | ' |
Summary of Significant Accounting Policies [Line Items] | ' |
Number of pulp mills | 2 |
Canada | ' |
Summary of Significant Accounting Policies [Line Items] | ' |
Number of pulp mills | 1 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | $147,728 | $137,439 | $136,299 | $132,600 |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance | $178 | $148 |
Receivables | 135,893 | 145,150 |
Sale of pulp, energy and chemicals [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Receivables | 124,579 | 133,764 |
Value added tax [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Receivables | 4,545 | 5,656 |
Other non-trade receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Receivables | $6,769 | $5,730 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $66,356 | $60,688 |
Finished goods | 54,982 | 50,326 |
Spare parts and other | 49,570 | 44,965 |
Inventories | $170,908 | $155,979 |
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Unamortized government investment grants | $365,359 | $364,849 | ' |
Acquisition of production and other equipment under capital lease obligations | 2,112 | 2,648 | 3,872 |
Asset retirement obligation | 5,549 | 5,605 | ' |
Production equipment and other [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Capital leases, gross amounts | 20,550 | 21,710 | ' |
Capital leases, accumulated depreciation | 9,447 | 11,042 | ' |
Acquisition of production and other equipment under capital lease obligations | $2,112 | $2,648 | $3,872 |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Schedule of Property, Plant and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $1,799,293 | $1,746,823 |
Accumulated Depreciation | -760,662 | -680,317 |
Property, plant and equipment, net | 1,038,631 | 1,066,506 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 34,421 | 33,210 |
Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 194,676 | 177,198 |
Production equipment and other [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $1,570,196 | $1,536,415 |
Accounts_Payable_and_Other_Det
Accounts Payable and Other (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Other [Abstract] | ' | ' |
Trade payables | $44,289 | $39,896 |
Accrued expenses | 39,060 | 47,271 |
Accrued interest | 10,697 | 11,522 |
Capital leases, current portion (Note 19) | 2,254 | 2,582 |
Current taxes payable (Note 9) | 1,132 | 9,516 |
Other | 6,382 | 7,812 |
Accounts payable and other, total | $103,814 | $118,599 |
Debt_Narrative_Details
Debt (Narrative) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Nov. 17, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | Stendal Loan Facility [Member] | Stendal Loan Facility [Member] | Stendal Loan Facility [Member] | Stendal Loan Facility [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Credit Agreement For Celgar Mill [Member] | Project Blue Mill [Member] | Loans Payable To The Noncontrolling Shareholder[Member] | Loans Payable To The Noncontrolling Shareholder[Member] | Loan Payable To The Noncontrolling Shareholder 2 [Member] | Loan Agreement At The Rosenthal Mill [Member] | Rosenthal Credit Facility - 25 Million [Member] | Rosenthal Credit Facility - 5.0 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | Canadian Dollar Borrowings Rate Option 2 [Member] | US Dollar Borrowings Rate Option 1 [Member] | US Dollar Borrowings Rate Option 2 [Member] | Twelve Month Period Beginning Dec 1, 2014 [Member] | Twelve Month Period Beginning Dec 1, 2015 [Member] | Beginning Dec 1, 2016 And Thereafter [Member] | |
USD ($) | EUR (€) | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | CAD | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | Credit Agreement For Celgar Mill [Member] | Credit Agreement For Celgar Mill [Member] | Credit Agreement For Celgar Mill [Member] | Credit Agreement For Celgar Mill [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, face amount | ' | ' | € 828,000,000 | ' | ' | $50,000,000 | ' | $300,000,000 | ' | ' | € 26,800,000 | ' | € 400,000 | € 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Varying basis spread | ' | ' | ' | 0.90% | 1.80% | ' | ' | ' | ' | 3.50% | ' | ' | ' | 2.75% | 3.50% | 3.50% | 1.75% | 0.25% | 1.75% | 0.25% | ' | ' | ' |
Description of variable basis spread | 'three-month Euribor | 'Euribor | ' | ' | ' | ' | ' | ' | ' | 'Euribor | ' | ' | ' | 'Euribor | 'Euribor | ' | 'bankers acceptance | 'Canadian prime | 'LIBOR | 'U.S. base | ' | ' | ' |
Interest rate at period | ' | ' | ' | 1.39% | 2.14% | ' | ' | ' | ' | ' | 1.00% | ' | ' | 3.09% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument interest rate | ' | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Debt Guaranteed By The Federal Republic Of Germany | ' | ' | 48.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Debt Guaranteed By The State Of Saxony-Anhalt | ' | ' | 32.00% | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Amount Of Principal Debt Guaranteed By the German Government | ' | ' | 352,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Amount Of Debt Supporting Bank Guarantees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred Scheduled Principal Payment To Debt Maturity Date | ' | ' | 164,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, maturity date | ' | 30-Sep-17 | ' | ' | ' | ' | 1-Dec-17 | ' | 1-May-16 | 1-Sep-17 | ' | ' | ' | 1-Feb-14 | 1-Oct-16 | 1-Dec-15 | ' | ' | ' | ' | ' | ' | ' |
Debt, offering date | ' | ' | ' | ' | ' | ' | 17-Nov-10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash sweep, percent | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital reserve | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DSRA balance | ' | ' | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued price percentage of principal amount | ' | ' | ' | ' | ' | 104.50% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Note Redemption Notice Minimum Days | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Note Redemption Notice Maximum Days | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption prices expressed as percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104.75% | 102.38% | 100.00% |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 17,000,000 | ' | ' | ' | ' | 25,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' |
Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,100,000 | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility interest rate at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.84% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 33,300,000 | ' | ' | ' | ' | ' | 24,400,000 | 3,900,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | ' | ' | ' | ' | ' | 50,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance in investment account used to fund Project Blue Mill | 2,618,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Parent capital contribution to subsidiary | $20,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Schedule_Of_Debt_Details
Debt (Schedule Of Debt) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||
USD ($) | USD ($) | Stendal Loan Facility [Member] | Stendal Loan Facility [Member] | Stendal Loan Facility [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Credit Agreement For Celgar Mill [Member] | Credit Agreement For Celgar Mill [Member] | Credit Agreement For Celgar Mill [Member] | Project Blue Mill [Member] | Project Blue Mill [Member] | Project Blue Mill [Member] | Loans Payable To The Noncontrolling Shareholder[Member] | Loans Payable To The Noncontrolling Shareholder[Member] | Loans Payable To The Noncontrolling Shareholder[Member] | Loan Agreement At The Rosenthal Mill [Member] | Loan Agreement At The Rosenthal Mill [Member] | Loan Agreement At The Rosenthal Mill [Member] | Rosenthal Credit Facility - 25 Million [Member] | Rosenthal Credit Facility - 25 Million [Member] | Rosenthal Credit Facility - 25 Million [Member] | Rosenthal Credit Facility - 5.0 Million [Member] | Rosenthal Credit Facility - 5.0 Million [Member] | Rosenthal Credit Facility - 5.0 Million [Member] | |||||||||||||||||
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Total debt | $979,372,000 | $937,985,000 | $568,945,000 | [1] | ' | $597,158,000 | [1] | $336,382,000 | [2] | ' | $284,361,000 | [2] | ' | $0 | [3] | ' | $6,031,000 | [3] | $21,179,000 | [4] | ' | $0 | [4] | $52,117,000 | [5] | ' | $48,283,000 | [5] | $749,000 | [6] | ' | $2,152,000 | [6] | $0 | [7] | ' | $0 | [7] | $0 | [8] | ' | $0 | [8] |
Less: current portion | -60,355,000 | -60,205,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Debt, less current portion | 919,017,000 | 877,780,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Debt, face amount | ' | ' | ' | 828,000,000 | ' | ' | 50,000,000 | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | 26,800,000 | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | € 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | € 25,000,000 | ' | ' | € 5,000,000 | ' | ||||||||||||||||
Debt, stated interest rate | ' | ' | ' | ' | ' | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
[1] | Note payable to bank, included in a total loan facility of €828.0 million to finance the construction related to the Stendal mill ("Stendal Loan Facility"), interest at rates varying from Euribor plus 0.90% to Euribor plus 1.80% (rates on amounts of borrowing at December 31, 2013 range from 1.39% to 2.14%), principal due in required installments beginning September 30, 2006 until September 30, 2017, collateralized by the gross assets of the Stendal mill, with 48% and 32% guaranteed by the Federal Republic of Germany and the State of Saxony-Anhalt, respectively, of up to €352.9 million of the outstanding principal, subject to a debt service reserve account ("DSRA") for purposes of paying amounts due in the following 12 months under the terms of the Stendal Loan Facility; payment of dividends is only permitted if certain cash flow requirements are met. See Note 17 - Derivative Transactions for a discussion of the Company's variable-to-fixed interest rate swap that was put in place to effectively fix the interest rate on the Stendal Loan Facility.Note 7. Debt (continued)On March 13, 2009, the Company finalized an agreement with its lenders to amend its Stendal Loan Facility.B The amendment deferred approximately €164.0 million of scheduled principal payments until the maturity date, September 30, 2017. The amendment also provided for a 100% cash sweep, referred to as the "Cash Sweep", of any cash, in excess of a €15.0 million working capital reserve and the Guarantee Amount, as discussed in Note 20(b) - Commitments and Contingencies, and other amounts as contemplated in the amendment, held by Stendal which will be used first to fund the DSRA to a level sufficient to service the amounts due and payable under the Stendal Loan Facility during the then following 12 months, which means the DSRA is "Fully Funded", and second to prepay the deferred principal amounts. As at December 31, 2013, the DSRA balance was €33.0 million and was not Fully Funded. On September 30, 2013, the Company amended the terms of the Stendal Loan Facility and Project Blue Mill facility (the "Facilities") (Note 7(d)). The amendment included waiving compliance with the annual debt service cover ratio and the senior debt cover ratio under the Facilities until and including December 31, 2013; amending the senior debt cover ratio so that it now deducts the DSRA and other specified cash above a stipulated threshold in the calculation of senior debt; providing that a failure to satisfy the annual debt service cover ratio under the Facilities would only be an event of default when amounts in the DSRA plus certain cash reserves are below a specified threshold; and revising the calculation of amounts required to cure a senior debt cover ratio default. Pursuant to the amended agreement the Company made a capital investment of $20,000 in Stendal. See Note 15 - Noncontrolling Interest for details of the investment. | ||||||||||||||||||||||||||||||||||||||||||
[2] | On November 17, 2010, the Company completed a private offering of $300,000 in aggregate principal amount of senior notes due 2017 ("Senior Notes"). The Senior Notes were issued at a price of 100% of their principal amount. The Senior Notes will mature on December 1, 2017 and bear interest at 9.50% which is accrued and payable semi-annually. In July 2013, the Company issued $50,000 in aggregate principal amount of its Senior Notes. The additional notes were priced at 104.50% plus accrued interest from June 1, 2013. The net proceeds from the offering were $50,500, after deducting the underwriter's discounts, offering expenses and accrued interest. The Company used the net proceeds from the offering to repay the revolving credit facilities of the Rosenthal and Celgar mills and for general corporate purposes. The Senior Notes are general unsecured senior obligations of the Company. The Senior Notes rank equal in right of payment with all existing and future senior unsecured indebtedness of the Company and senior in right of payment to any current or future subordinated indebtedness of the Company. The Senior Notes are effectively junior in right of payment to all borrowings of the Company's restricted subsidiaries, including borrowings under the Company's credit agreements which are secured by certain assets of its restricted subsidiaries.The Company may redeem all or a part of the Senior Notes, upon not less than 30 days' or more than 60 days' notice, at the redemption prices (expressed as percentages of principal amount) equal to 104.75% for the twelve month period beginning on December 1, 2014, 102.38% for the twelve month period beginning on December 1, 2015, and 100.00% beginning on December 1, 2016 and at any time thereafter, plus accrued and unpaid interest. | ||||||||||||||||||||||||||||||||||||||||||
[3] | Credit agreement with respect to a revolving credit facility of up to C$40.0 million for the Celgar mill. The credit facility matures May 2016. Borrowings under the credit facility are collateralized by the mill's inventory and receivables and are restricted by a borrowing base calculated on the mill's inventory and receivables. Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.75% or Canadian prime plus 0.25%. U.S. dollar denominated amounts bear interest at LIBOR plus 1.75% or U.S. base plus 0.25%. As at December 31, 2013, C$1.7 million of this facility was supporting letters of credit and approximately C$33.3 million was available. | ||||||||||||||||||||||||||||||||||||||||||
[4] | A €17.0 million amortizing term facility to partially finance a project, referred to as "Project Blue Mill". The facility, 80% of which is guaranteed by the State of Saxony-Anhalt, bears interest at a rate of Euribor plus 3.5% per annum. The interest period for the facility, at the choice of the Company, will be of one, three or six months duration and interest is paid on the last day of the interest period selected. The facility, together with accrued interest, is scheduled to mature in September 2017. The facility will be repaid semi-annually, commencing September 30, 2013, is collateralized by the gross assets of the Stendal mill, and will be non-recourse to Mercer Inc. As at December 31, 2013, the facility was accruing interest at a rate of 3.84%. | ||||||||||||||||||||||||||||||||||||||||||
[5] | Loans of €26.8 million payable by the Stendal mill to its noncontrolling shareholder bear interest at a rate of 1.00% per annum and are due in 2017, provided that the Project Blue Mill facility (Note 7(d)) and the Stendal Loan Facility (Note 7(a)) have been fully repaid on such date. The loans are unsecured, subordinated to all liabilities of the Stendal mill, non-recourse to the Company and its restricted subsidiaries. One of the loans, which has a principal amount of €0.4 million, may be repaid prior to October 1, 2017 if the DSRA has been Fully Funded for the first time and this loan is subordinated to all liabilities of the Stendal mill only until such time as the DSRA is Fully Funded for the first time.As at December 31, 2013, accrued interest on these loans was €11.1 million (2012 - €9.9 million). | ||||||||||||||||||||||||||||||||||||||||||
[6] | A four-year amortizing investment loan agreement with a lender relating to the wash press project at the Rosenthal mill with a total facility of €4.4 million bearing interest at the rate of Euribor plus 2.75% that matures February 2014. Borrowings under this agreement are secured by the wash press equipment. As at December 31, 2013, the balance outstanding was accruing interest at a rate of 3.09%. | ||||||||||||||||||||||||||||||||||||||||||
[7] | A €25.0 million working capital facility at the Rosenthal mill that matures in October 2016. Borrowings under the facility are collateralized by the mill's inventory and receivables and bear interest at Euribor plus 3.50%. As at December 31, 2013, approximately €0.6 million of this facility was supporting bank guarantees leaving approximately €24.4 million available. | ||||||||||||||||||||||||||||||||||||||||||
[8] | A €5.0 million facility at the Rosenthal mill that matures in December 2015. Borrowings under this facility bear interest at the rate of the three-month Euribor plus 3.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2013 approximately €1.1 million of this facility was supporting bank guarantees leaving approximately €3.9 million available. |
Debt_Principal_Maturities_Of_D
Debt (Principal Maturities Of Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt [Abstract] | ' | ' |
2014 | $60,355 | ' |
2015 | 65,566 | ' |
2016 | 65,566 | ' |
2017 | 787,885 | ' |
2018 | 0 | ' |
Thereafter | 0 | ' |
Total debt | $979,372 | $937,985 |
Pension_And_Other_PostRetireme1
Pension And Other Post-Retirement Benefit Obligations (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retirement Benefits [Line Items] | ' | ' | ' |
Company contributions | $2,635,000 | $2,644,000 | $2,450,000 |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | 4,636,000 | -808,000 | -11,203,000 |
Pension related accumulated other comprehensive (income) loss | 16,414,000 | 21,050,000 | ' |
Celgar Defined Benefit Plans [Member] | ' | ' | ' |
Retirement Benefits [Line Items] | ' | ' | ' |
Pension and other postretirement benefit contributions | 2,878,000 | 2,941,000 | ' |
Company contribution in the next fiscal year | 1,606,000 | ' | ' |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all years) | -4,636,000 | 808,000 | 11,203,000 |
Net transition asset or obligation recognized as a reclassification adjustment of other comprehensive income | 0 | ' | ' |
Amount included in other comprehensive income which is expected to be recognized in the next fiscal year | 805,000 | ' | ' |
Plan assets that are expected to be returned to the Company in the next fiscal year | '0 | ' | ' |
Maximum percentage of book value that can be invested in any one entity or group | 10.00% | ' | ' |
Maximum percentage of voting shares in any one entity | 30.00% | ' | ' |
Defined Contribution Plan Jan 1, 2009 [Member] | ' | ' | ' |
Retirement Benefits [Line Items] | ' | ' | ' |
Pension contributions | $773,000 | $795,000 | ' |
Pension_And_Other_PostRetireme2
Pension And Other Post-Retirement Benefit Obligations (Plan Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Benefit obligation, beginning balance | $76,953 | $72,094 | ||
Service cost | 890 | 869 | ||
Interest cost | 2,944 | 3,087 | ||
Benefits payments | -3,539 | -3,226 | ||
Special termination benefits | 277 | ' | ||
Actuarial losses | -529 | 2,514 | ||
Foreign currency exchange rate changes | -4,972 | 1,615 | ||
Benefit obligation, ending balance | 72,024 | 76,953 | ||
Fair value of plan assets, beginning balance | 33,647 | 30,789 | ||
Actual returns | 4,686 | 2,449 | ||
Contributions | 2,878 | 2,941 | ||
Foreign currency exchange rate changes | -2,300 | 694 | ||
Fair value of plan assets, ending balance | 35,372 | 33,647 | ||
Funded status | -36,652 | [1] | -43,306 | [2] |
Pension liabilities | 36,796 | 43,450 | ||
Service cost | 890 | 869 | ||
Interest cost | 2,944 | 3,087 | ||
Expected return on plan assets | -2,133 | -2,105 | ||
Amortization of unrecognized items | 1,555 | 1,460 | ||
Net benefit costs | 3,533 | 3,311 | ||
Pension Benefits [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Benefit obligation, beginning balance | 48,639 | 46,413 | ||
Service cost | 137 | 144 | ||
Interest cost | 1,836 | 1,961 | ||
Benefits payments | -2,772 | -2,449 | ||
Special termination benefits | 277 | ' | ||
Actuarial losses | -1,472 | 1,534 | ||
Foreign currency exchange rate changes | -3,079 | 1,036 | ||
Benefit obligation, ending balance | 43,566 | 48,639 | ||
Fair value of plan assets, beginning balance | 33,647 | 30,789 | ||
Actual returns | 4,686 | 2,449 | ||
Contributions | 2,111 | 2,164 | ||
Foreign currency exchange rate changes | -2,300 | 694 | ||
Fair value of plan assets, ending balance | 35,372 | 33,647 | ||
Funded status | -8,194 | [1] | -14,992 | [2] |
Service cost | 137 | 144 | ||
Interest cost | 1,836 | 1,961 | ||
Expected return on plan assets | -2,133 | -2,105 | ||
Amortization of unrecognized items | 1,439 | 1,453 | ||
Net benefit costs | 1,556 | 1,453 | ||
Post-Retirement Benefits [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Benefit obligation, beginning balance | 28,314 | 25,681 | ||
Service cost | 753 | 725 | ||
Interest cost | 1,108 | 1,126 | ||
Benefits payments | -767 | -777 | ||
Special termination benefits | 0 | ' | ||
Actuarial losses | 943 | 980 | ||
Foreign currency exchange rate changes | -1,893 | 579 | ||
Benefit obligation, ending balance | 28,458 | 28,314 | ||
Fair value of plan assets, beginning balance | 0 | 0 | ||
Actual returns | 0 | 0 | ||
Contributions | 767 | 777 | ||
Foreign currency exchange rate changes | 0 | 0 | ||
Fair value of plan assets, ending balance | 0 | 0 | ||
Funded status | -28,458 | [1] | -28,314 | [2] |
Service cost | 753 | 725 | ||
Interest cost | 1,108 | 1,126 | ||
Expected return on plan assets | 0 | 0 | ||
Amortization of unrecognized items | 116 | 7 | ||
Net benefit costs | 1,977 | 1,858 | ||
Rosenthal [Member] | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Pension liabilities | $144 | $144 | ||
[1] | The total of $36,796 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation. | |||
[2] | The total of $43,450 on the Consolidated Balance Sheet also includes the pension liabilities of $144 relating to employees at the Company's Rosenthal operation |
Recovered_Sheet2
Pension and Other Post-Retirement Benefit Obligations (Estimated Future Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ' |
2014 | $3,656 |
2015 | 3,824 |
2016 | 3,943 |
2017 | 4,052 |
2018 | 4,173 |
2019 - 2023 | $22,311 |
Recovered_Sheet3
Pension and Other Post-Retirement Benefit Obligations (Summary Of Key Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ' | ' |
Benefit obligations, discount rate | 4.50% | 4.00% |
Benefit obligations, rate of compensation increase | 2.75% | 2.75% |
Net benefit cost, discount rate | 4.00% | 4.25% |
Net benefit cost, rate of compensation increase | 2.75% | 2.75% |
Net benefit cost, expected rate of return on plan assets | 6.60% | 6.75% |
Assumed health care cost trend rate at, initial health care cost trend rate | 8.00% | 8.50% |
Assumed health care cost trend rate at, annual rate of decline in trend rate | 0.50% | 0.50% |
Assumed health care cost trend rate at, ultimate health care cost trend rate | 4.50% | 4.50% |
Assumed health care cost trend rate at, medical services plan premiums trend rate | 4.50% | 6.00% |
Pension_And_Other_PostRetireme3
Pension And Other Post-Retirement Benefit Obligations (A One Percentage Point Change in Assumed Health Cost Trend Effect) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ' | ' |
Effect on total service and interest rate components, 1% increase | $51 | $50 |
Effect on total service and interest rate components, 1% decrease | -53 | -53 |
Effect on post-retirement benefit obligation, 1% increase | 927 | 957 |
Effect on post-retirement benefit obligation, 1% decrease | ($896) | ($921) |
Pension_And_Other_PostRetireme4
Pension And Other Post-Retirement Benefit Obligations (Asset Allocation Of Funded Plans) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual plan asset allocations | 100.00% | 100.00% |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target plan asset allocations | 60.00% | ' |
Actual plan asset allocations | 64.00% | 58.00% |
Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target plan asset allocations | 40.00% | ' |
Actual plan asset allocations | 36.00% | 42.00% |
Cash and Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target plan asset allocations | 0.00% | ' |
Actual plan asset allocations | 0.00% | 0.00% |
Pension_And_Other_PostRetireme5
Pension And Other Post-Retirement Benefit Obligations (Fair Value Measurements) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | $35,372 | $33,647 | $30,789 |
Leith Wheeler Diversified Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 22,458 | ' | ' |
Phillips, Hagar and North Bond Fund [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 12,821 | ' | ' |
Cash [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 93 | ' | ' |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 35,372 | ' | ' |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Leith Wheeler Diversified Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 22,458 | ' | ' |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Phillips, Hagar and North Bond Fund [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 12,821 | ' | ' |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Cash [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 93 | ' | ' |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Leith Wheeler Diversified Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Phillips, Hagar and North Bond Fund [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | Cash [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant unobservable inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant unobservable inputs (Level 3) [Member] | Leith Wheeler Diversified Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant unobservable inputs (Level 3) [Member] | Phillips, Hagar and North Bond Fund [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | 0 | ' | ' |
Fair Value, Significant unobservable inputs (Level 3) [Member] | Cash [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value measurements | $0 | ' | ' |
Recovered_Sheet4
Pension and Other Post-Retirement Benefit Obligations (Multiemployer Plan Details) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Multiemployer Plans [Line Items] | ' | ' | ' |
Company contributions | $2,635 | $2,644 | $2,450 |
The Pulp and Paper Industry Pension Plan [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Provincially registered plan number | 'P085324 | ' | ' |
Expiration date of collective bargaining agreement | 30-Apr-17 | ' | ' |
Are the company's contributions greater than 5% of total contributions | 'true | 'true | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefit | ' | ' | $82,934 | $1,427 |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | ' | -82,934 | -1,427 | ' |
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | ' | ' | 82,934 | ' |
Liability for Uncertain Tax Positions, Current | 0 | 0 | 8,605 | ' |
Recognized interest and penalties related to unrecognized tax benefit | ' | 0 | 134 | ' |
Valuation allowance | 4,137 | -140,768 | -123,728 | -106,199 |
Increase In Current Income Tax Expense Due To Settlements With Taxing Authorities Subsequent To Period End | 4,270 | ' | ' | ' |
Germany | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 528,700 | ' | ' |
Interest carryforward | ' | 162,700 | ' | ' |
Tax loss carryforwards, expiration dates | ' | 'no expiration date | ' | ' |
Interest carryforward, expiration dates | ' | 'no expiration date | ' | ' |
United States | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 125,700 | ' | ' |
United States | Expiration Date 2019 To 2023 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 6,200 | ' | ' |
Tax loss carryforwards, expiration dates | ' | '2019 to 2023 | ' | ' |
United States | Expiration Date 2024 to 2033 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 119,500 | ' | ' |
Tax loss carryforwards, expiration dates | ' | '2024 to 2033 | ' | ' |
Canada | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 43,800 | ' | ' |
Canada | Expiration Date 2015 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 12,300 | ' | ' |
Tax loss carryforwards, expiration dates | ' | '2015 | ' | ' |
Canada | Start of Expiration Date 2029 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax loss carryforwards | ' | 31,500 | ' | ' |
Tax loss carryforwards, expiration dates | ' | 'begin to expire in the tax year ending 2029 | ' | ' |
Scientific Research And Experimental Development [Member] | Canada | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Interest carryforward, expiration dates | ' | 'begin to expire in the taxation year 2030 | ' | ' |
Other Tax Carryforward, Description | ' | 'Canadian investment tax credits for scientific research and experimental development | ' | ' |
Scientific Research And Experimental Development [Member] | Canada | Start of Expiration Date 2030 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax credit carryforward | ' | 4,600 | ' | ' |
Foreign Tax Credit [Member] | United States | Start of Expiration Date 2030 [Member] | ' | ' | ' | ' |
Income Taxes Disclosures [Line Items] | ' | ' | ' | ' |
Tax credit carryforward | ' | $700 | ' | ' |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. Federal statutory rate | 35.00% | 35.00% | 35.00% |
U.S. Federal statutory rate on (income) loss before income taxes and noncontrolling interest | $5,797 | $1,439 | ($25,971) |
Tax differential on foreign income | 736 | 874 | 7,892 |
Effect of foreign earnings | -945 | -8,382 | -13,788 |
Valuation Allowance | -17,040 | -17,529 | 12,897 |
Tax benefit of partnership structure | 5,942 | 6,785 | 7,285 |
Pension adjustment | -1,206 | 174 | 2,595 |
Non-taxable foreign subsidiaries | 1,696 | 1,897 | 5,601 |
Research and development expense | 1,319 | 3,436 | 0 |
Prior year true-ups | -5,749 | 0 | 0 |
Other | 254 | 1,927 | 4,457 |
Total income tax benefit (provision) | -9,196 | -9,379 | 968 |
Income tax benefit (provision) - current | 2,286 | -9,531 | -2,341 |
Income tax benefit (provision) - deferred | ($11,482) | $152 | $3,309 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
German tax loss carryforwards | $123,735 | $100,251 |
U.S. tax loss carryforwards | 44,718 | 36,090 |
Canadian tax loss carryfowards | 11,606 | 40,992 |
Basis difference between income tax and financial reporting with respect to operating pulp mills | -64,252 | -71,191 |
Derivative financial instruments | 13,060 | 18,760 |
Long-term debt | 2,204 | 2,066 |
Payable and accrued expenses | 578 | -257 |
Deferred pension liability | 9,605 | 10,810 |
Capital leases | 2,574 | 2,816 |
Research and development expense pool | 4,573 | 3,523 |
Other | 1,400 | 1,323 |
Total gross deferred tax asset | 149,801 | 145,183 |
Valuation allowance | -140,768 | -123,728 |
Net deferred tax asset | 9,033 | 21,455 |
Deferred income tax asset - current | 6,326 | 5,887 |
Deferred income tax asset - non-current | 17,157 | 23,159 |
Deferred income tax liability - non-current | ($14,450) | ($7,591) |
Income_Taxes_Valuation_Allowan
Income Taxes (Valuation Allowance) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Valuation allowance, beginning of period | ($4,137) | $140,768 | $123,728 | $106,199 |
Valuation Allowance - United States | ' | 10,134 | 477 | ' |
Valuation Allowance - Canada | ' | 12,324 | 15,844 | ' |
Valuation Allowance - Germany | ' | -5,681 | -71 | ' |
Valuation Allowance - Change Due To Foreign Exchange | ' | 263 | 1,279 | ' |
Valuation allowance, end of period | ($4,137) | $140,768 | $123,728 | $106,199 |
Share_Capital_Details
Share Capital (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Capital [Line Items] | ' | ' | ' |
Common shares, authorized | 200,000,000 | 200,000,000 | ' |
Common shares, par value | 1 | ' | ' |
Common shares, issued | 55,853,704 | 55,815,704 | ' |
Common shares, outstanding | 55,853,704 | 55,815,704 | ' |
Preferred shares, authorized | 50,000,000 | 50,000,000 | ' |
Preferred shares, par value | 1 | ' | ' |
Preferred shares, issued | 0 | ' | ' |
Series A [Member] | ' | ' | ' |
Share Capital [Line Items] | ' | ' | ' |
Preferred shares, authorized | 2,000,000 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share Capital [Line Items] | ' | ' | ' |
Shares granted | 38,000 | 36,500 | 238,000 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common shares available for grant | 1,100,000 | ' | ' | ' |
Performance Share Units [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expense recognized | $2,882 | $1,546 | $1,274 | ' |
Performance Shares [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Outstanding shares | 0 | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expense recognized | 692 | 1,070 | 1,389 | ' |
Shares granted | 38,000 | 36,500 | 238,000 | ' |
Vesting period | '1 year | ' | ' | ' |
Unrecognized compensation cost | 511 | 937 | ' | ' |
Outstanding shares | 158,000 | 196,500 | 238,000 | 56,000 |
Restricted Shares, 2011 Grant To Chief Executive Officer [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares granted | ' | 200,000 | ' | ' |
Vesting period | ' | '5 years | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expense recognized | 0 | 0 | 0 | ' |
Stock options granted | 0 | 0 | 0 | ' |
Stock options exercised | 0 | 0 | 0 | ' |
Stock options expired | 100,000 | 0 | 15,000 | ' |
Stock options cancelled | 0 | 0 | 0 | ' |
Stock options with an exercise price below the Company's quoted market price | 75,000 | 100,000 | 100,000 | ' |
Stock options outstanding intrinsic value | $172 | $151 | $45 | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Share Activity - PSU's) (Details) (Performance Share Units [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Performance Share Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding - Beginning | 786,129 | 795,312 | 534,783 |
Granted | 40,499 | 55,478 | 812,575 |
Vested and issued | 0 | 0 | -474,728 |
Cancelled | 0 | 0 | -60,055 |
Forfeited | -35,196 | -64,661 | -17,263 |
Outstanding - Ending | 791,432 | 786,129 | 795,312 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of Share Activity - Restricted Shares) (Details) (Restricted Stock [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding - Beginning | 196,500 | 238,000 | 56,000 |
Granted | 38,000 | 36,500 | 238,000 |
Vested | -76,500 | -78,000 | -56,000 |
Outstanding - Ending | 158,000 | 196,500 | 238,000 |
StockBased_Compensation_Status
Stock-Based Compensation (Status of Options Outstanding) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Outstanding options, exercise price | $7.30 |
Outstanding options, number | 30,000 |
Outstanding options, weighted average years of remaining contractual life (years) | '1 year 6 months 27 days |
Outstanding options, weighted average exercise price | $7.30 |
Exercise options, Number | 30,000 |
Exercise options, weighted average exercise price | $7.30 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Outstanding options, exercise price | $7.92 |
Outstanding options, number | 45,000 |
Outstanding options, weighted average years of remaining contractual life (years) | '1 year 8 months 9 days |
Outstanding options, weighted average exercise price | $7.92 |
Exercise options, Number | 45,000 |
Exercise options, weighted average exercise price | $7.92 |
Net_Income_Loss_Per_Share_Attr2
Net Income (Loss) Per Share Attributable To Common Shareholders (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earnings Per Share Effect Of Dilutive Instruments [Line Items] | ' | ' | ' | |||
Net income (loss) attributable to common shareholders - basic | ($26,375) | ($15,670) | $69,699 | |||
Interest on convertible notes, net of tax | 0 | 0 | 1,110 | |||
Net income (loss) attributable to common shareholders - diluted | ($26,375) | ($15,670) | $70,809 | |||
Net income (loss) per share attributable to common shareholders, Basic | ($0.47) | ($0.28) | $1.39 | |||
Net income (loss) per share attributable to common shareholders, Diluted | ($0.47) | ($0.28) | $1.24 | |||
Weighted average number of common shares outstanding, Basic | 55,673,838 | [1] | 55,596,761 | [1] | 50,116,982 | [1] |
Weighted average of number of common shares outstanding, Diluted | 55,673,838 | 55,596,761 | 56,986,019 | |||
Performance Shares And PSUs [Member] | ' | ' | ' | |||
Earnings Per Share Effect Of Dilutive Instruments [Line Items] | ' | ' | ' | |||
Effect of dilutive instruments | 0 | 0 | 544,853 | |||
Restricted Stock [Member] | ' | ' | ' | |||
Earnings Per Share Effect Of Dilutive Instruments [Line Items] | ' | ' | ' | |||
Effect of dilutive instruments | 0 | 0 | 87,923 | |||
Contingently issuable shares excluded from the basic weighted average shares outstanding | 158,000 | 196,500 | 238,000 | |||
Stock Options [Member] | ' | ' | ' | |||
Earnings Per Share Effect Of Dilutive Instruments [Line Items] | ' | ' | ' | |||
Effect of dilutive instruments | 0 | 0 | 57,483 | |||
Convertible Debt Securities [Member] | ' | ' | ' | |||
Earnings Per Share Effect Of Dilutive Instruments [Line Items] | ' | ' | ' | |||
Incremental common shares attributable to conversion of convertible notes | 0 | 0 | 6,178,778 | |||
[1] | The basic weighted average number of shares excludes 158,000 restricted shares which have been issued, but have not vested as at December 31, 2013 (2012 - 196,500 restricted shares; 2011 - 238,000 restricted shares). |
Net_Income_Loss_Per_Share_Attr3
Net Income (Loss) Per Share Attributable To Common Shareholders (Anti-dilutive Instruments) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Performance Share Units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from EPS computation | 791,432 | 786,129 | 0 |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from EPS computation | 158,000 | 196,500 | 0 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities excluded from EPS computation | 75,000 | 175,000 | 0 |
Restructuring_Expenses_Details
Restructuring Expenses (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 |
Stendal Pulp Mill [Member] | Celgar Pulp Mill [Member] | Celgar Pulp Mill [Member] | ||||
employee | ||||||
Expected workforce reduction | ' | ' | ' | ' | 85 | ' |
Restructuring expenses | $6,415 | $0 | $0 | $1,386 | ' | $5,029 |
Restructuring reserve current | ' | ' | ' | 1,096 | ' | 2,898 |
Restructuring expenses effect on future earnings, amount | ' | ' | ' | ' | ' | $600 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income, Net of Tax [Abstract] | ' | ' |
Foreign currency translation adjustments | $47,756 | $49,489 |
Unrecognized losses and prior service costs related to defined benefit plans | -16,414 | -21,050 |
Unrealized gains on marketable securities | 128 | 138 |
Accumulated other comprehensive income | $31,470 | $28,577 |
Noncontrolling_Interest_Detail
Noncontrolling Interest (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
[NoncontrollingInterestAbstract] | ' | ' |
Noncontrolling interest decrease from purchase of interest | $9,974 | ' |
Minority interest ownership percentage by parent | 83.00% | 74.90% |
Parent capital contribution to subsidiary | 20,000 | ' |
Noncontrolling interest change in ownership parent | 8.10% | ' |
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | $10,118 | ' |
Business_Segment_Information_S
Business Segment Information (Schedule Of Net Sales To External Customers By Geographic Area) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
segment | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $1,088,385 | $1,072,736 | $1,251,964 | |||
Number of operating segments | 3 | ' | ' | |||
Number of reportable segments | 1 | ' | ' | |||
Pulp Revenues [Member] | CHINA | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 300,827 | 295,797 | 326,610 | |||
Pulp Revenues [Member] | Germany | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 309,399 | 293,733 | 357,106 | |||
Pulp Revenues [Member] | Other European Union Countries [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 224,988 | [1] | 216,846 | [1] | 244,884 | [1] |
Pulp Revenues [Member] | North America [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 30,404 | 61,103 | 96,520 | |||
Pulp Revenues [Member] | ITALY | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 65,654 | 55,443 | 71,695 | |||
Pulp Revenues [Member] | Other Asia [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 49,855 | 42,692 | 42,970 | |||
Pulp Revenues [Member] | Other Countries [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 2,748 | 2,099 | 1,146 | |||
Pulp Revenues [Member] | Total Geographical Revenue [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 983,875 | 967,713 | 1,140,931 | |||
Energy And Chemical Revenues [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | 92,198 | 92,966 | 94,758 | |||
Third Party Transportation Revenues [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Revenues | $12,312 | $12,057 | $16,275 | |||
[1] | Not including Germany or Italy; includes new entrant countries to the European Union from their time of admission. |
Business_Segment_Information_S1
Business Segment Information (Schedule Of Long Lived Assets By Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
customer | customer | customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-lived assets | $1,038,631 | $1,066,506 | ' |
Number of customers accounting for 10% or more of pulp sales | 2 | 1 | 0 |
Revenue major customer percentage | ' | 11.00% | ' |
Customer 1 [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenue major customer percentage | 10.00% | ' | ' |
Customer 2 [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenue major customer percentage | 11.00% | ' | ' |
Germany | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-lived assets | 843,777 | 839,535 | ' |
Canada | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Long-lived assets | $194,854 | $226,971 | ' |
Derivative_Transactions_Narrat
Derivative Transactions (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2004 | Nov. 30, 2012 | 31-May-12 | Nov. 30, 2012 | Nov. 30, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Pulp Price Swap Contract [Member] | Pulp Price Swap Contract [Member] | Pulp Price Swap Contract [Member] | Pulp Price Swap Contract [Member] | |
EUR (€) | EUR (€) | t | USD ($) | Minimum [Member] | Maximum [Member] | |||||
t | USD ($) | USD ($) | ||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate maximum principal amount of the Stendal loan facility covered by interest rate swaps | ' | ' | ' | ' | ' | € 612,600,000 | ' | ' | ' | ' |
Aggregate notional amount of interest rate swap | ' | ' | ' | ' | 306,800,000 | ' | ' | ' | ' | ' |
Derivative fixed interest rate | ' | ' | ' | ' | 5.28% | ' | ' | ' | ' | ' |
Derivative maturity date | ' | ' | ' | ' | 1-Oct-17 | ' | 1-Dec-13 | 1-Dec-12 | ' | ' |
Metric tonnes of pulp hedged per month | ' | ' | ' | ' | ' | ' | 3,000 | 5,000 | ' | ' |
Swap contract fixed price of pulp per metric tonne | ' | ' | ' | ' | ' | ' | ' | 915 | 880 | 890 |
Cash and cash equivalents | 147,728,000 | 137,439,000 | 136,299,000 | 132,600,000 | ' | ' | ' | ' | ' | ' |
Receivables | $135,893,000 | $145,150,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Transactions_Schedu
Derivative Transactions (Schedule of Derivatives) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Transactions [Abstract] | ' | ' | ' |
Gain (loss) on interest rate derivative contract | $22,476 | $2,204 | ($1,974) |
Gain (loss) on pulp price derivative contracts | -2,767 | 2,608 | 0 |
Gain (loss) on derivative instruments total | $19,709 | $4,812 | ($1,974) |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Value Of Financial Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financial Instruments [Abstract] | ' | ' | ' | ' |
Cash and cash equivalents | $147,728 | $137,439 | $136,299 | $132,600 |
Marketable securities | 217 | 243 | ' | ' |
Receivables | 135,893 | 145,150 | ' | ' |
Pulp price derivative contracts - asset, carrying value and fair value | 0 | 982 | ' | ' |
Accounts payable and other | 103,814 | 118,599 | ' | ' |
Debt | 979,372 | 937,985 | ' | ' |
Interest rate derivative contract - liability, carrying value and fair value | 46,517 | 66,819 | ' | ' |
Cash and cash equivalents, Fair Value | 147,728 | 137,439 | ' | ' |
Marketable securities, Fair Value | 217 | 243 | ' | ' |
Receivables, Fair Value | 135,893 | 145,150 | ' | ' |
Pulp price derivative contracts - asset, Fair Value and Carrying Value | 0 | 982 | ' | ' |
Accounts payable and other excluding derivatives, Fair Value | 103,814 | 118,599 | ' | ' |
Debt, Fair Value | $980,982 | $922,951 | ' | ' |
Financial_Instruments_Outstand
Financial Instruments (Outstanding Financial Instruments And Estimated Fair Values) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Marketable securities, Fair Value | $217 | $243 |
Derivative - pulp price derivative contracts | 0 | 982 |
Fair value measurements - Assets | ' | 1,225 |
Derivative - interest rate derivative contract | 46,517 | 66,819 |
Debt, Fair Value | 980,982 | 922,951 |
Fair value measurements - Liabilities | 1,027,499 | 989,770 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Marketable securities, Fair Value | 217 | 243 |
Derivative - pulp price derivative contracts | ' | 0 |
Fair value measurements - Assets | ' | 243 |
Derivative - interest rate derivative contract | 0 | 0 |
Debt, Fair Value | 0 | 0 |
Fair value measurements - Liabilities | 0 | 0 |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Marketable securities, Fair Value | 0 | 0 |
Derivative - pulp price derivative contracts | ' | 982 |
Fair value measurements - Assets | ' | 982 |
Derivative - interest rate derivative contract | 46,517 | 66,819 |
Debt, Fair Value | 367,405 | 308,894 |
Fair value measurements - Liabilities | 413,922 | 375,713 |
Fair Value, Significant unobservable inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Marketable securities, Fair Value | 0 | 0 |
Derivative - pulp price derivative contracts | ' | 0 |
Fair value measurements - Assets | ' | 0 |
Derivative - interest rate derivative contract | 0 | 0 |
Debt, Fair Value | 613,577 | 614,057 |
Fair value measurements - Liabilities | $613,577 | $614,057 |
Lease_Commitments_Details
Lease Commitments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Lease Commitments [Abstract] | ' | ' | ' |
Capital lease, 2014 | $2,406 | ' | ' |
Capital lease, 2015 | 2,414 | ' | ' |
Capital lease, 2016 | 2,263 | ' | ' |
Capital lease, 2017 | 1,511 | ' | ' |
Capital lease, 2018 | 880 | ' | ' |
Capital lease, Thereafter | 3,111 | ' | ' |
Capital Leases, Total | 12,585 | ' | ' |
Less: imputed interest | 1,771 | ' | ' |
Total present value of minimum capitalized payments | 10,814 | ' | ' |
Less: current portion of capital lease obligations | 2,254 | 2,582 | ' |
Long-term capital lease obligations | 8,560 | ' | ' |
Operating leases, 2014 | 2,280 | ' | ' |
Operating leases, 2015 | 2,076 | ' | ' |
Operating leases, 2016 | 1,295 | ' | ' |
Operating leases, 2017 | 1,239 | ' | ' |
Operating leases, 2018 | 1,237 | ' | ' |
Operating leases, Thereafter | 929 | ' | ' |
Operating leases, Total | 9,056 | ' | ' |
Rent expense | $3,497 | $3,866 | $4,611 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 28, 2011 | Jan. 28, 2011 |
USD ($) | CAD | EUR (€) | USD ($) | USD ($) | EUR (€) | |
Commitments And Contingencies [Abstract] | ' | ' | ' | ' | ' | ' |
Waste water fees liability | $6,929 | ' | ' | $8,765 | ' | ' |
Asset retirement obligation | 5,549 | ' | ' | 5,605 | ' | ' |
Compensation For Remediation Work | ' | ' | ' | ' | 13,606 | 10,000 |
Compensation For Remediation Work In Accounts Payable And Other | 2,437 | ' | ' | ' | 13,606 | 10,000 |
Property tansfer tax assessment in dispute | 4,200 | 4,500 | ' | ' | ' | ' |
German government grants under review | $11,400 | ' | € 8,300 | ' | ' | ' |
Restricted_Group_Supplemental_2
Restricted Group Supplemental Disclosure (Combined Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $147,728 | $137,439 | $136,299 | $132,600 |
Receivables | 135,893 | 145,150 | ' | ' |
Inventories | 170,908 | 155,979 | ' | ' |
Prepaid expenses and other | 10,918 | 10,425 | ' | ' |
Deferred income tax | 6,326 | 5,887 | ' | ' |
Total current assets | 471,773 | 454,880 | ' | ' |
Property, plant and equipment | 1,038,631 | 1,066,506 | ' | ' |
Deferred note issuance and other | 20,998 | 16,036 | ' | ' |
Deferred income tax | 17,157 | 23,159 | ' | ' |
Due from unrestricted group | 0 | 0 | ' | ' |
Total assets | 1,548,559 | 1,560,581 | ' | ' |
Accounts payable and other | 103,814 | 118,599 | ' | ' |
Pension and other post-retirement benefit obligations | 1,330 | 1,072 | ' | ' |
Debt | 60,355 | 60,205 | ' | ' |
Total current liabilities | 165,499 | 179,876 | ' | ' |
Debt, Long Term | 919,017 | 877,780 | ' | ' |
Due to restricted group | 0 | 0 | ' | ' |
Interest rate derivative liability | 46,517 | 66,819 | ' | ' |
Pension and other post-retirement benefit obligations | 35,466 | 42,378 | ' | ' |
Capital leases and other | 19,293 | 18,375 | ' | ' |
Deferred income tax | 14,450 | 7,591 | ' | ' |
Total liabilities | 1,200,242 | 1,192,819 | ' | ' |
Total shareholders' equity (deficit) | 359,078 | 389,104 | ' | ' |
Noncontrolling interest (deficit) | -10,761 | -21,342 | ' | ' |
Total liabilities and equity | 1,548,559 | 1,560,581 | ' | ' |
Restricted Group [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 82,910 | 48,407 | 58,152 | 67,830 |
Receivables | 75,987 | 80,708 | ' | ' |
Inventories | 93,807 | 98,606 | ' | ' |
Prepaid expenses and other | 7,742 | 7,661 | ' | ' |
Deferred income tax | 3,273 | 2,885 | ' | ' |
Total current assets | 263,719 | 238,267 | ' | ' |
Property, plant and equipment | 420,373 | 455,293 | ' | ' |
Deferred note issuance and other | 10,987 | 8,712 | ' | ' |
Deferred income tax | 9,894 | 12,102 | ' | ' |
Due from unrestricted group | 153,851 | 134,897 | ' | ' |
Total assets | 858,824 | 849,271 | ' | ' |
Accounts payable and other | 49,891 | 55,517 | ' | ' |
Pension and other post-retirement benefit obligations | 1,330 | 1,072 | ' | ' |
Debt | 749 | 7,465 | ' | ' |
Total current liabilities | 51,970 | 64,054 | ' | ' |
Debt, Long Term | 336,382 | 285,079 | ' | ' |
Due to restricted group | 0 | 0 | ' | ' |
Interest rate derivative liability | 0 | 0 | ' | ' |
Pension and other post-retirement benefit obligations | 35,466 | 42,378 | ' | ' |
Capital leases and other | 8,523 | 8,008 | ' | ' |
Deferred income tax | 14,450 | 7,591 | ' | ' |
Total liabilities | 446,791 | 407,110 | ' | ' |
Total shareholders' equity (deficit) | 412,033 | 442,161 | ' | ' |
Noncontrolling interest (deficit) | 0 | 0 | ' | ' |
Total liabilities and equity | 858,824 | 849,271 | ' | ' |
Unrestricted Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 64,818 | 89,032 | 78,147 | 64,770 |
Receivables | 59,906 | 64,442 | ' | ' |
Inventories | 77,101 | 57,373 | ' | ' |
Prepaid expenses and other | 3,176 | 2,764 | ' | ' |
Deferred income tax | 3,053 | 3,002 | ' | ' |
Total current assets | 208,054 | 216,613 | ' | ' |
Property, plant and equipment | 618,258 | 611,213 | ' | ' |
Deferred note issuance and other | 10,011 | 7,324 | ' | ' |
Deferred income tax | 7,263 | 11,057 | ' | ' |
Due from unrestricted group | 0 | 0 | ' | ' |
Total assets | 843,586 | 846,207 | ' | ' |
Accounts payable and other | 53,923 | 63,082 | ' | ' |
Pension and other post-retirement benefit obligations | 0 | 0 | ' | ' |
Debt | 59,606 | 52,740 | ' | ' |
Total current liabilities | 113,529 | 115,822 | ' | ' |
Debt, Long Term | 582,635 | 592,701 | ' | ' |
Due to restricted group | 153,851 | 134,897 | ' | ' |
Interest rate derivative liability | 46,517 | 66,819 | ' | ' |
Pension and other post-retirement benefit obligations | 0 | 0 | ' | ' |
Capital leases and other | 10,770 | 10,367 | ' | ' |
Deferred income tax | 0 | 0 | ' | ' |
Total liabilities | 907,302 | 920,606 | ' | ' |
Total shareholders' equity (deficit) | -52,955 | -53,057 | ' | ' |
Noncontrolling interest (deficit) | -10,761 | -21,342 | ' | ' |
Total liabilities and equity | 843,586 | 846,207 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' | ' |
Receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other | 0 | 0 | ' | ' |
Deferred income tax | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property, plant and equipment | 0 | 0 | ' | ' |
Deferred note issuance and other | 0 | 0 | ' | ' |
Deferred income tax | 0 | 0 | ' | ' |
Due from unrestricted group | -153,851 | -134,897 | ' | ' |
Total assets | -153,851 | -134,897 | ' | ' |
Accounts payable and other | 0 | 0 | ' | ' |
Pension and other post-retirement benefit obligations | 0 | 0 | ' | ' |
Debt | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Debt, Long Term | 0 | 0 | ' | ' |
Due to restricted group | -153,851 | -134,897 | ' | ' |
Interest rate derivative liability | 0 | 0 | ' | ' |
Pension and other post-retirement benefit obligations | 0 | 0 | ' | ' |
Capital leases and other | 0 | 0 | ' | ' |
Deferred income tax | 0 | 0 | ' | ' |
Total liabilities | -153,851 | -134,897 | ' | ' |
Total shareholders' equity (deficit) | 0 | 0 | ' | ' |
Noncontrolling interest (deficit) | 0 | 0 | ' | ' |
Total liabilities and equity | ($153,851) | ($134,897) | ' | ' |
Restricted_Group_Supplemental_3
Restricted Group Supplemental Disclosure (Combined Condensed Statements Of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Pulp | $996,187 | $979,770 | $1,157,206 |
Energy and chemicals | 92,198 | 92,966 | 94,758 |
Total revenues | 1,088,385 | 1,072,736 | 1,251,964 |
Operating costs | 920,832 | 886,144 | 965,723 |
Operating depreciation and amortization | 78,309 | 74,302 | 77,611 |
Selling, general and administrative expenses | 51,169 | 49,268 | 53,965 |
Restructuring expenses | 6,415 | 0 | 0 |
Operating expenses | 1,056,725 | 1,009,714 | 1,097,299 |
Operating income | 31,660 | 63,022 | 154,665 |
Interest expense | -69,156 | -71,767 | -82,114 |
Gain (loss) on derivative instruments | 19,709 | 4,812 | -1,974 |
Other income (expense) | 1,215 | -179 | 3,625 |
Total other income (expense) | -48,232 | -67,134 | -80,463 |
Income (loss) before income taxes | -16,572 | -4,112 | 74,202 |
Income tax benefit (provision) | -9,196 | -9,379 | 968 |
Net income (loss) | -25,768 | -13,491 | 75,170 |
Less: net income attributable to noncontrolling interest | -607 | -2,179 | -5,471 |
Net income (loss) attributable to common shareholders | -26,375 | -15,670 | 69,699 |
Restricted Group [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Pulp | 561,350 | 545,205 | 659,741 |
Energy and chemicals | 33,783 | 36,638 | 35,455 |
Total revenues | 595,133 | 581,843 | 695,196 |
Operating costs | 498,952 | 500,223 | 532,471 |
Operating depreciation and amortization | 43,498 | 40,118 | 41,535 |
Selling, general and administrative expenses | 31,943 | 31,688 | 33,581 |
Restructuring expenses | 5,029 | ' | ' |
Operating expenses | 579,422 | 572,029 | 607,587 |
Operating income | 15,711 | 9,814 | 87,609 |
Interest expense | -32,321 | -30,125 | -34,639 |
Gain (loss) on derivative instruments | -2,767 | 2,609 | 0 |
Other income (expense) | 9,217 | 6,465 | 8,860 |
Total other income (expense) | -25,871 | -21,051 | -25,779 |
Income (loss) before income taxes | -10,160 | -11,237 | 61,830 |
Income tax benefit (provision) | -9,365 | -7,050 | -6,422 |
Net income (loss) | -19,525 | -18,287 | 55,408 |
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders | -19,525 | -18,287 | 55,408 |
Unrestricted Subsidiaries [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Pulp | 434,837 | 434,565 | 497,465 |
Energy and chemicals | 58,415 | 56,328 | 59,303 |
Total revenues | 493,252 | 490,893 | 556,768 |
Operating costs | 421,880 | 385,921 | 433,252 |
Operating depreciation and amortization | 34,811 | 34,184 | 36,076 |
Selling, general and administrative expenses | 19,226 | 17,580 | 20,384 |
Restructuring expenses | 1,386 | ' | ' |
Operating expenses | 477,303 | 437,685 | 489,712 |
Operating income | 15,949 | 53,208 | 67,056 |
Interest expense | -45,011 | -48,934 | -54,386 |
Gain (loss) on derivative instruments | 22,476 | 2,203 | -1,974 |
Other income (expense) | 174 | 648 | 1,676 |
Total other income (expense) | -22,361 | -46,083 | -54,684 |
Income (loss) before income taxes | -6,412 | 7,125 | 12,372 |
Income tax benefit (provision) | 169 | -2,329 | 7,390 |
Net income (loss) | -6,243 | 4,796 | 19,762 |
Less: net income attributable to noncontrolling interest | -607 | -2,179 | -5,471 |
Net income (loss) attributable to common shareholders | -6,850 | 2,617 | 14,291 |
Eliminations [Member] | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' |
Pulp | 0 | 0 | 0 |
Energy and chemicals | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 |
Operating costs | 0 | 0 | 0 |
Operating depreciation and amortization | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Restructuring expenses | 0 | ' | ' |
Operating expenses | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 |
Interest expense | 8,176 | 7,292 | 6,911 |
Gain (loss) on derivative instruments | 0 | 0 | 0 |
Other income (expense) | -8,176 | -7,292 | -6,911 |
Total other income (expense) | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Income tax benefit (provision) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Less: net income attributable to noncontrolling interest | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders | $0 | $0 | $0 |
Restricted_Group_Supplemental_4
Restricted Group Supplemental Disclosure (Combined Condensed Statements Of Cash Flows) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Net income (loss) | ($25,768) | ($13,491) | $75,170 | |||
Unrealized loss (gain) on derivative instruments | -21,494 | -3,186 | 1,974 | |||
Depreciation and amortization | 78,645 | 74,657 | 77,952 | |||
Deferred income taxes | 11,482 | -152 | -3,309 | |||
Stock compensation expense | 3,574 | 2,616 | 4,607 | |||
Pension and other post-retirement expense, net of funding | 648 | 365 | -374 | |||
Other | 3,169 | 4,991 | 1,116 | |||
Receivables | 13,993 | 10,795 | -2,233 | |||
Inventories | -14,563 | 1,726 | -24,654 | |||
Accounts payable and accrued expenses | -11,569 | -17,992 | 19,837 | |||
Other | -1,792 | [1] | -1,214 | [1] | 4,490 | [1] |
Net cash from (used in) operating activities | 36,325 | 59,115 | 154,576 | |||
Purchase of property, plant and equipment | -45,707 | -47,203 | -52,626 | |||
Acquisition of noncontrolling interest (Note 15) | 0 | ' | ' | |||
Proceeds on sale of property, plant and equipment | 739 | 840 | 1,132 | |||
Note receivable | 0 | 0 | 3,988 | |||
Proceeds on maturity of marketable securities | 0 | 15,753 | 0 | |||
Purchase of marketable securities | 0 | 0 | -16,343 | |||
Net cash from (used in) investing activities | -44,968 | -30,610 | -63,849 | |||
Repayment of debt and purchase of notes | -56,416 | -35,440 | -67,702 | |||
Proceeds from issuance of notes and borrowings of debt | 74,472 | 0 | 0 | |||
Repayment of capital lease obligations | -2,593 | -2,733 | -4,095 | |||
Proceeds from (repayment of) credit facilities, net | -5,640 | 6,031 | -20,491 | |||
Payment of note issuance costs | -3,855 | -2,570 | 0 | |||
Proceeds from government grants | 9,265 | 5,045 | 20,049 | |||
Purchase of treasury shares | 0 | 0 | -10,623 | |||
Net cash from (used in) financing activities | 15,233 | -29,667 | -82,862 | |||
Effect of exchange rate changes on cash and cash equivalents | 3,699 | 2,302 | -4,166 | |||
Net increase (decrease) in cash and cash equivalents | 10,289 | 1,140 | 3,699 | |||
Cash and cash equivalents, beginning of period | 137,439 | 136,299 | 132,600 | |||
Cash and cash equivalents, end of period | 147,728 | 137,439 | 136,299 | |||
Restricted Group [Member] | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Net income (loss) | -19,525 | -18,287 | 55,408 | |||
Unrealized loss (gain) on derivative instruments | 982 | -983 | 0 | |||
Depreciation and amortization | 43,833 | 40,474 | 41,875 | |||
Deferred income taxes | 7,263 | 6,660 | 4,160 | |||
Stock compensation expense | 3,574 | 2,616 | 4,607 | |||
Pension and other post-retirement expense, net of funding | 648 | 365 | -374 | |||
Other | -360 | 1,574 | 431 | |||
Receivables | 4,780 | -755 | 4,530 | |||
Inventories | 1,965 | -5,132 | -14,162 | |||
Accounts payable and accrued expenses | -6,026 | -9,576 | 8,167 | |||
Other | -13,621 | [1] | -20,292 | [1] | -11,836 | [1] |
Net cash from (used in) operating activities | 23,513 | -3,336 | 92,806 | |||
Purchase of property, plant and equipment | -13,183 | -28,213 | -41,079 | |||
Acquisition of noncontrolling interest (Note 15) | -20,000 | ' | ' | |||
Proceeds on sale of property, plant and equipment | 581 | 470 | 456 | |||
Note receivable | ' | ' | 3,988 | |||
Proceeds on maturity of marketable securities | ' | 15,753 | ' | |||
Purchase of marketable securities | ' | ' | -16,343 | |||
Net cash from (used in) investing activities | -32,602 | -11,990 | -52,978 | |||
Repayment of debt and purchase of notes | -1,459 | -3,378 | -35,477 | |||
Proceeds from issuance of notes and borrowings of debt | 52,250 | ' | ' | |||
Repayment of capital lease obligations | -725 | -945 | -1,823 | |||
Proceeds from (repayment of) credit facilities, net | -5,640 | 6,031 | -20,491 | |||
Payment of note issuance costs | -1,829 | -409 | ' | |||
Proceeds from government grants | 0 | 4,061 | 19,898 | |||
Purchase of treasury shares | ' | ' | -10,623 | |||
Net cash from (used in) financing activities | 42,597 | 5,360 | -48,516 | |||
Effect of exchange rate changes on cash and cash equivalents | 995 | 221 | -990 | |||
Net increase (decrease) in cash and cash equivalents | 34,503 | -9,745 | -9,678 | |||
Cash and cash equivalents, beginning of period | 48,407 | 58,152 | 67,830 | |||
Cash and cash equivalents, end of period | 82,910 | 48,407 | 58,152 | |||
Unrestricted Subsidiaries [Member] | ' | ' | ' | |||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | |||
Net income (loss) | -6,243 | 4,796 | 19,762 | |||
Unrealized loss (gain) on derivative instruments | -22,476 | -2,203 | 1,974 | |||
Depreciation and amortization | 34,812 | 34,183 | 36,077 | |||
Deferred income taxes | 4,219 | -6,812 | -7,469 | |||
Stock compensation expense | 0 | 0 | 0 | |||
Pension and other post-retirement expense, net of funding | 0 | 0 | 0 | |||
Other | 3,529 | 3,417 | 685 | |||
Receivables | 9,213 | 11,550 | -6,763 | |||
Inventories | -16,528 | 6,858 | -10,492 | |||
Accounts payable and accrued expenses | -5,543 | -8,416 | 11,670 | |||
Other | 11,829 | [1] | 19,078 | [1] | 16,326 | [1] |
Net cash from (used in) operating activities | 12,812 | 62,451 | 61,770 | |||
Purchase of property, plant and equipment | -32,524 | -18,990 | -11,547 | |||
Acquisition of noncontrolling interest (Note 15) | 20,000 | ' | ' | |||
Proceeds on sale of property, plant and equipment | 158 | 370 | 676 | |||
Note receivable | ' | ' | 0 | |||
Proceeds on maturity of marketable securities | ' | 0 | ' | |||
Purchase of marketable securities | ' | ' | 0 | |||
Net cash from (used in) investing activities | -12,366 | -18,620 | -10,871 | |||
Repayment of debt and purchase of notes | -54,957 | -32,062 | -32,225 | |||
Proceeds from issuance of notes and borrowings of debt | 22,222 | ' | ' | |||
Repayment of capital lease obligations | -1,868 | -1,788 | -2,272 | |||
Proceeds from (repayment of) credit facilities, net | 0 | 0 | 0 | |||
Payment of note issuance costs | -2,026 | -2,161 | ' | |||
Proceeds from government grants | 9,265 | 984 | 151 | |||
Purchase of treasury shares | ' | ' | 0 | |||
Net cash from (used in) financing activities | -27,364 | -35,027 | -34,346 | |||
Effect of exchange rate changes on cash and cash equivalents | 2,704 | 2,081 | -3,176 | |||
Net increase (decrease) in cash and cash equivalents | -24,214 | 10,885 | 13,377 | |||
Cash and cash equivalents, beginning of period | 89,032 | 78,147 | 64,770 | |||
Cash and cash equivalents, end of period | $64,818 | $89,032 | $78,147 | |||
[1] | Includes intercompany working capital related transactions. |