Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 11, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | merc | ||
Entity Registrant Name | MERCER INTERNATIONAL INC. | ||
Entity Central Index Key | 1,333,274 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 64,656,138 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 882,385,937 | ||
Entity Well-known Seasoned Issuer | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS € in Thousands, $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Current assets | ||
Cash and cash equivalents | $ 99,629 | $ 53,172 |
Restricted cash (Note 14) | 9,230 | 10,286 |
Accounts receivables (Note 2) | 134,254 | 141,088 |
Inventories (Note 3) | 141,001 | 146,576 |
Prepaid expenses and other | 4,697 | 6,745 |
Total current assets | 388,811 | 357,867 |
Property, plant and equipment, net (Note 4) | 762,391 | 883,150 |
Intangible and other assets | 8,461 | 8,925 |
Deferred income tax (Note 8) | 23,154 | 56,287 |
Total assets | 1,182,817 | 1,306,229 |
Current liabilities | ||
Accounts payable and other (Note 5) | 96,032 | 102,225 |
Dividends payable (Note 9) | 7,418 | 0 |
Pension and other post-retirement benefit obligations (Note 7) | 971 | 1,177 |
Debt (Note 6) | 0 | 12,101 |
Total current liabilities | 104,421 | 115,503 |
Debt (Note 6) | 638,043 | 661,570 |
Interest rate derivative liability (Note 14) | 6,533 | 17,962 |
Pension and other post-retirement benefit obligations (Note 7) | 25,374 | 34,837 |
Capital leases and other (Note 16) | 12,299 | 15,321 |
Deferred income tax (Note 8) | 13,171 | 22,156 |
Total liabilities | 799,841 | 867,349 |
Shareholders' equity | ||
Common shares | 64,424 | 64,156 |
Additional paid-in capital | 329,246 | 326,951 |
Retained earnings | 160,880 | 100,214 |
Accumulated other comprehensive loss (Note 11) | (171,574) | (52,441) |
Total shareholders' equity | 382,976 | 438,880 |
Total liabilities and shareholders' equity | $ 1,182,817 | $ 1,306,229 |
Commitments and contingencies (Note 17) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 64,502,000 | 64,274,000 |
Common Stock, Shares, Outstanding | 64,502,000 | 64,274,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Pulp | $ 946,237 | $ 1,073,632 | $ 996,187 |
Energy and chemicals | 86,967 | 101,480 | 92,198 |
Total revenues | 1,033,204 | 1,175,112 | 1,088,385 |
Costs and expenses | |||
Operating costs, excluding depreciation and amortization | 753,523 | 887,712 | 920,832 |
Operating depreciation and amortization | 67,761 | 77,675 | 78,309 |
Selling, general and administrative expenses | 46,236 | 47,927 | 51,169 |
Restructuring expenses | 0 | 0 | 6,415 |
Operating income | 165,684 | 161,798 | 31,660 |
Other income (expense) | |||
Interest expense | (53,891) | (67,516) | (69,156) |
Gain on settlement of debt | 0 | 3,357 | 0 |
Foreign exchange gain (loss) on intercompany debt | (5,306) | (4,777) | 904 |
Gain (loss) on derivative instruments (Note 14) | (935) | 11,501 | 19,709 |
Other income (expense) | (601) | (171) | 311 |
Total other expense | (60,733) | (57,606) | (48,232) |
Income (loss) before income taxes | 104,951 | 104,192 | (16,572) |
Income tax benefit (provision) (Note 8) | |||
Income tax benefit (provision) - current | (11,934) | (5,242) | 2,286 |
Income tax benefit (provision) - deferred | (17,515) | 22,016 | (11,482) |
Net income (loss) | 75,502 | 120,966 | (25,768) |
Less: net income attributable to noncontrolling interest | 0 | (7,812) | (607) |
Net income (loss) attributable to common shareholders | $ 75,502 | $ 113,154 | $ (26,375) |
Net income (loss) per share attributable to common shareholders (Note 10) | |||
Basic | $ 1.17 | $ 1.82 | $ (0.47) |
Diluted | 1.17 | 1.81 | (0.47) |
Cash dividends declared per common share (Note 9) | $ 0.230 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ 75,502 | $ 120,966 | $ (25,768) |
Other comprehensive income (loss), net of taxes | |||
Foreign currency translation adjustment (net of tax effect of $nil in all periods) | (122,955) | (81,024) | (1,733) |
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all periods) | 3,949 | (2,873) | 4,636 |
Change in unrealized gains/losses on marketable securities (net of tax effect of $nil in all periods) | (127) | (14) | (10) |
Other comprehensive income (loss), net of taxes | (119,133) | (83,911) | 2,893 |
Total comprehensive income (loss) | (43,631) | 37,055 | (22,875) |
Comprehensive income attributable to noncontrolling interest | 0 | (7,812) | (607) |
Comprehensive income (loss) attributable to common shareholders | $ (43,631) | $ 29,243 | $ (23,482) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 |
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 CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Parent [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest (Deficit) [Member] | Total |
Balance at Dec. 31, 2012 | $ 389,104 | $ 55,619 | $ 267,718 | $ 37,190 | $ 28,577 | $ (21,342) | $ 367,762 |
Balance (in shares) at Dec. 31, 2012 | 55,816,000 | ||||||
Shares issued on grants of restricted shares | 0 | $ 77 | (77) | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 38,000 | ||||||
Stock compensation expense | 3,574 | $ 0 | 3,574 | 0 | 0 | 0 | 3,574 |
Net income (loss) | (26,375) | 0 | 0 | (26,375) | 0 | 607 | (25,768) |
Noncontrolling interest decrease from purchase of interest | 0 | 0 | 0 | 9,974 | |||
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | (10,118) | (10,118) | |||||
Net Change In Equity Purchase of Noncontrolling Interest | (144) | ||||||
Other comprehensive income (loss) | 2,893 | 0 | 0 | 0 | 2,893 | 0 | 2,893 |
Balance at Dec. 31, 2013 | 359,078 | $ 55,696 | 261,097 | 10,815 | 31,470 | (10,761) | 348,317 |
Balance (in shares) at Dec. 31, 2013 | 55,854,000 | ||||||
Shares issued through public share offering | 53,859 | $ 8,050 | 45,809 | 0 | 0 | 0 | $ 53,859 |
Shares issued through public share offering (in shares) | 8,050,000 | 8,050,000 | |||||
Shares issued on grants of restricted shares | 0 | $ 78 | (78) | 0 | 0 | 0 | $ 0 |
Shares issued on grants of restricted shares (in shares) | 38,000 | ||||||
Shares issued on grants of performance shares | 0 | $ 332 | (332) | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 332,000 | ||||||
Stock compensation expense | 1,470 | $ 0 | 1,470 | 0 | 0 | 0 | 1,470 |
Net income (loss) | 113,154 | 0 | 0 | 113,154 | 0 | 7,812 | 120,966 |
Noncontrolling interest decrease from purchase of interest | 0 | 0 | (2,949) | ||||
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | (4,770) | 18,985 | (23,755) | ||||
Net Change In Equity Purchase of Noncontrolling Interest | (1,821) | ||||||
Other comprehensive income (loss) | (83,911) | 0 | 0 | 0 | (83,911) | 0 | (83,911) |
Balance at Dec. 31, 2014 | 438,880 | $ 64,156 | 326,951 | 100,214 | (52,441) | 0 | $ 438,880 |
Balance (in shares) at Dec. 31, 2014 | 64,274,000 | 64,274,000 | |||||
Shares issued on grants of restricted shares | 0 | $ 78 | (78) | 0 | 0 | 0 | $ 0 |
Shares issued on grants of restricted shares (in shares) | 38,000 | ||||||
Shares issued on grants of performance shares | 0 | $ 160 | (160) | 0 | 0 | 0 | 0 |
Shares issued on grants of restricted shares (in shares) | 160,000 | ||||||
Shares issued on exercise of stock options | 0 | $ 30 | (30) | 0 | 0 | 0 | 0 |
Shares issued on exercise of stock options (in shares) | 30,000 | ||||||
Stock compensation expense | 2,563 | $ 0 | 2,563 | 0 | 0 | 0 | 2,563 |
Net income (loss) | 75,502 | 0 | 0 | 75,502 | 0 | 0 | 75,502 |
Dividends declared | (14,836) | 0 | 0 | (14,836) | 0 | 0 | (14,836) |
Other comprehensive income (loss) | (119,133) | 0 | 0 | 0 | (119,133) | 0 | (119,133) |
Balance at Dec. 31, 2015 | $ 382,976 | $ 64,424 | $ 329,246 | $ 160,880 | $ (171,574) | $ 0 | $ 382,976 |
Balance (in shares) at Dec. 31, 2015 | 64,502,000 | 64,502,000 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2012 | |
Consolidated Statements Of Cash Flows [Abstract] | |
Noncontrolling interest change in ownership parent | 8.10% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from (used in) operating activities | |||
Net income (loss) | $ 75,502 | $ 120,966 | $ (25,768) |
Adjustments to reconcile net income to cash flows from operating activities | |||
Gain on settlement of debt | 0 | (3,357) | 0 |
Unrealized (gain) loss on derivative instruments | 573 | (11,501) | (21,494) |
Depreciation and amortization | 68,333 | 78,012 | 78,645 |
Deferred income taxes | 17,515 | (22,016) | 11,482 |
Foreign exchange (gain) loss on intercompany debt | 5,306 | 4,777 | (904) |
Defined benefit pension plan and other post-retirement benefit plan expense | 2,162 | 2,475 | 3,526 |
Stock compensation expense | 2,409 | 1,586 | 3,574 |
Other | 2,756 | 2,076 | 4,073 |
Defined benefit pension plan and other post-retirement benefit plan contributions | (2,349) | (2,951) | (2,878) |
Changes in working capital | |||
Accounts receivables | (11,256) | (25,113) | 13,993 |
Inventories | (13,235) | 6,445 | (14,563) |
Accounts payable and accrued expenses | 9,665 | (5,382) | (11,569) |
Other | 1,839 | (1,429) | (1,792) |
Net cash from (used in) operating activities | 159,220 | 144,588 | 36,325 |
Cash flows from (used in) investing activities | |||
Purchase of property, plant and equipment | (46,536) | (34,612) | (45,707) |
Purchase of intangible assets | (3,809) | (4,776) | 0 |
Restricted cash | 0 | (10,627) | 0 |
Other | 528 | 910 | 739 |
Net cash from (used in) investing activities | (49,817) | (49,105) | (44,968) |
Cash flows from (used in) financing activities | |||
Repayment of debt and repurchase of notes | (10,763) | (891,019) | (56,416) |
Proceeds from issuance of notes and borrowings of debt | 0 | 650,000 | 74,472 |
Proceeds from issuance of shares | 0 | 53,859 | 0 |
Dividend payment | (7,418) | 0 | 0 |
Proceeds from (repayment of) revolving credit facilities, net | (23,058) | 26,254 | (5,640) |
Payment of interest rate derivative liability | (13,530) | 0 | 0 |
Repayment of capital lease obligations | (2,412) | (2,465) | (2,593) |
Proceeds from sale and lease-back transactions | 466 | 1,533 | 0 |
Payment of note issuance costs | (326) | (20,169) | (3,855) |
Proceeds from government grants | 158 | 6,699 | 9,265 |
Other | 219 | (444) | 0 |
Net cash from (used in) financing activities | (56,664) | (175,752) | 15,233 |
Effect of exchange rate changes on cash and cash equivalents | (6,282) | (14,287) | 3,699 |
Net increase (decrease) in cash and cash equivalents | 46,457 | (94,556) | 10,289 |
Cash and cash equivalents, beginning of year | 53,172 | 147,728 | 137,439 |
Cash and cash equivalents, end of year | 99,629 | 53,172 | 147,728 |
Cash paid during the year for | |||
Interest | 51,975 | 65,013 | 65,747 |
Income taxes | 8,784 | 3,718 | 7,307 |
Supplemental schedule of non-cash investing and financing activities | |||
Payment-in-kind note issued to acquire noncontrolling interest | $ 0 | $ 12,101 | $ 0 |
The Company And Summary Of Sign
The Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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.”) i s a Washington corporation and its 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 (“U.S. dollars” or “$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its 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. 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, pensions and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. Significant Accounting Policies Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Restricted cash is comprised of cash deposits that cannot be withdrawn without prior notice or penalty. Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. 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 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. Note 1. The Company and Summary of Significant Accounting Policies (continued) 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 recognized as an expense in the Consolidated Statement of 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. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. 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 the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received . 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. Note 1. The Company and Summary of Significant Accounting Policies (continued) 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 year. 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 determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. T he Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within accumulated other comprehensive income (loss) in shareholders’ equity. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions 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 Recognition The Company recognizes revenue from pulp and chemical 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. The Company reports revenue from sales of surplus electricity and the sale of chemicals as “energy and chemicals” revenue 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 period but billed subsequent to period-end. Customer bills are based on agreed upon rates and meter readings that indicate electricity consumption. Shipping and Handling Costs Amounts charged to customers for shipping and handling costs 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. Note 1. The Company and Summary of Significant Accounting Policies (continued) Stock-Based Compensation The Company recognizes stock-based compensation expense over an award ’ s requisite service period based on the award’s fair value in selling, general, and administrative expenses within the Consolidated Statement of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units (“PSUs”) which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management ’ s best estimate. The final determination of the number of shares to be granted is made by the Company’s Board of Directors . The Company estimates forfeitures of PSUs 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 shares is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. 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 deferred tax liabilities and assets are offset and presented as a single net amount. Derivative Financial Instruments The Company occasionally enters into derivative financial instruments, including interest rate swaps and pulp price swaps to limit exposures to changes in interest rates and pulp prices. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value on the Consolidated Balance Sheet with the changes in fair value 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. Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: 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 financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Note 1. The Company and Summary of Significant Accounting Policies (continued) 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 and PSUs represent the only potentially dilutive effects on the Company’s weighted average shares. New Accounting Pronouncements Accounting Pronouncements Implemented In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ( “ ASU 2015-03 ” ) which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. Amortization of debt issuance costs shall continue to be reported as interest expense over the term of the related debt instrument. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015 and should be applied retrospectively to all periods presented . Early application is permitted for all entities at the beginning of an interim or annual reporting period. The Company has elected to early adopt ASU 2015-03 and as at December 31, 2015 $11,957 (2014 – $13,842 ) has been reclassified from intangible and other assets to long-term debt on the Consolidated Balance Sheets. The Company has not reclassified commitment fees related to revolving credit facilities due to their variable outstanding balances, and will continue to amortize these fees to interest expense over the term of the related revolving credit facility. In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes ( “ ASU 2015-17 ” ) which requires deferred tax liabilities and assets to be presented as long-term in the balance sheet. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company has elected to early adopt ASU 2015-17 and as at December 31, 2015 $19,473 (2014 – $19,968 ) has been reclassified from current deferred income tax assets wit h $12,595 (2014 – $13,232 ) being reclassified to long-term deferred income tax assets and $6,878 (2 014 – $6,736 ) being reclassified to long-term deferred income tax liabilities on the Consolidated Balance Sheets. Accounting Pronouncements Not Yet Implemented In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09 , Revenue Recognition – Revenue from Contracts with Customers ( “ ASU 2014-09 ” ) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. The Company is currently assessing the impact, if any, the adoption of ASU 2014-09 will have on its consolidated financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory ( “ ASU 2015-11 ” ) which requires that inventory within the scope of this update, including inventory stated at average cost, be measured at the lower of cost and net realizable value. This update is effective for financial statements issued for fiscal years beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact the Company’s financial position. |
Accounts Receivables
Accounts Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivables [Abstract] | |
Accounts Receivables | Note 2 . Accounts Receivable December 31, 2015 2014 Sale of pulp, energy and chemicals, net of allowance of $15 (2014 – $29 ) $ 119,359 $ 133,586 Other non-trade receivables 14,895 7,502 $ 134,254 $ 141,088 Included within other non-trade receivables is approximately C$8.5 million ( $6,109 ) related to a settlement with a utility provider in connection to a fee structure dispute . The settlement was approved by a governing utilities regulatory agency in December 2015 and payment was received in January 2016. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | Note 3 . Inventories December 31, 2015 2014 Raw materials $ 57,592 $ 52,877 Finished goods 36,829 45,090 Spare parts and other 46,580 48,609 $ 141,001 $ 146,576 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment December 31, 2015 2014 Land $ 27,625 $ 30,803 Buildings 154,047 172,626 Production and other equipment 1,299,076 1,422,828 1,480,748 1,626,257 Less: accumulated depreciation (718,357) (743,107) $ 762,391 $ 883,150 As at December 31, 2015 , property, plant and equipment was net of $253,178 of unam ortized government investment grants ( 2014 – $305,045 ). As at December 31, 2015 , included in production and other equipment is equipment under capital leases which had gross amounts of $16,233 ( 2014 – $20,325 ), and accumulated depreciation of $8,395 ( 2014 – $6,218 ). During the year, production and other equ ipment totalling $70 was acquired under capital lease obligations ( 2014 – $2,960 ; 2013 – $2,112 ). The Com pany 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, 2015 , the Company had recorde d $4,620 ( 20 14 – $4,798 ) 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, 2015 | |
Accounts Payable and Other [Abstract] | |
Accounts Payable and Other | Note 5 . Accounts Payable and Other December 31, 2015 2014 Trade payables $ 20,637 $ 22,729 Accrued expenses 55,648 52,968 Interest rate derivative liability, current portion (Note 14) 10,380 14,832 Other 9,367 11,696 $ 96,032 $ 102,225 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Debt | Note 6 . Debt Debt consists of the following: December 31, 2015 2014 2019 Senior Notes, unsecured, $250,000 face value (a) $ 245,689 $ 244,711 2022 Senior Notes, unsecured, $400,000 face value (a) 392,354 391,447 Payment-in-kind note (b) - 12,101 Revolving credit facilities €75.0 million (c) - 25,412 C$40.0 million (d) - - €25.0 million (e) - - €5.0 million (f) - - 638,043 673,671 Less: current portion - (12,101) Debt, less current portion $ 638,043 $ 661,570 As at December 31 , 2015, the maturities of the principal portion of debt are as follows: Matures Amount 2016 $ - 2017 - 2018 - 2019 250,000 2020 - Thereafter 400,000 $ 650,000 Certain of the Company’s debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As at December 31, 2015 , the Company is in compliance with the terms of its debt agreements. Note 6. Debt (continued) (a) On November 26, 2014 , the Company issued $650,000 of senior notes consisting of $250,000 in aggregate principal amount of 7.00% senior notes which mature on December 1, 2019 ( “ 2019 Senior Notes ” ) and $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ( “ 2022 Senior Notes ” and collectively with the 2019 Senior Notes, the “ Senior Notes ” ). The Senior Notes were issued at a price of 100% of their principal amount. Upon their issuance the Senior Notes were recorded at $635,949 which included debt issuance costs of $14,051 . These costs were proportionally allocated to the 2019 Senior Notes and the 2022 Senior Notes. The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are 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 existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company’s 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) discussed below, plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2019 Senior Notes redemption prices are equal to 103.50% for the twelve month period beginning on December 1, 2016 , 101.75% for the twelve month period beginning on December 1, 2017 , and 100.00% beginning on December 1, 2018 and at any time thereafter. The 2022 Senior Notes redemption prices are equal to 105.813% for the twelve month period beginning on December 1, 2017 , 103.875% for the twelve month period beginning on December 1, 2018 , 101.938% for the twelve month period beginning on December 1, 2019 , and 100.00% beginning on December 1, 2020 and at any time thereafter. (b) A €10.0 million payment-in-kind note due to the former noncontrolling shareholder of the Stendal mill which the Company redeemed on April 20, 2015 for a cash payment of €10.0 million ( $10,763 ). (c) A €75.0 million revolving credit facility at the Stendal mill that matures in October 2019 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and bear interest at Euribor plus 3.50% . As at December 31, 2015, approximately €75.0 million ( $81,443 ) was available. (d) A C$40.0 million revolving credit facility at the Celgar mill that matures in May 2019 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and are restricted by a borrowing base calculated on the mill ’ s inventory and accounts receivable . Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime . U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . As at December 31, 2015, approximately C$1.7 million ( $1,228 ) was supporting letters of credit and approximately C$38.3 million ( $27,674 ) was avail able. (e) A €25.0 million revolving credit facility at the Rosenthal mill that matures in October 2016 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and bear interest at Euribor plus 3.50% . As at December 31, 2015 , approximatel y € 3.1 million ( $3,324 ) of this facility was supporting bank guarantees leaving approximately € 21. 9 million ( $23,823 ) available. In February 2016 , the Company amended the facility, including extending its maturity date to October 2019 and reducing the applicable margin on borrowings from 3.50% to 2.95% . (f) A €5.0 million revolving credit facility at the Rosenthal mill that matures in December 2018 . Borrowings under this facility bear interest at the rate of the three -month Euribor plus 2.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2015 approximately € 1.3 million ( $1,358 ) of this facility was supporting bank guarantees leaving approximately € 3.7 million ( $4,071 ) avail able . |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | |
Pension and Other Post-Retirement Benefit Obligations | Note 7 . Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Included in pension and other post-retirement benefit obligations are amounts related to the Company’s Celgar and Rosenthal mil ls. The largest component of the s e obligation s is with respect to the Celgar mill which maintains a defined benefit pension plan and other post-retirement benefit plans for certain employees (the “ Celgar Defined Benefit Plans” ). Pension benefits are based on employees ’ earnings and years of service. The Celgar Defined Benefit Plans are funded by contributions from the Company based on actuarial estimates and s tatutory requirements. Information about the Celgar Defined Benefit Plans , in aggregate for the year ended December 31, 2015 is as follows: 2015 Pension Other Post-Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2014 $ 43,073 $ 28,465 $ 71,538 Service cost 121 798 919 Interest cost 1,427 984 2,411 Benefit payments (2,345) (587) (2,932) Actuarial gains (1,021) (3,988) (5,009) Foreign currency exchange rate changes (6,829) (4,394) (11,223) Benefit obligation, December 31, 2015 34,426 21,278 55,704 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2014 35,653 - 35,653 Actual returns 107 - 107 Contributions 1,762 587 2,349 Benefit payments (2,345) (587) (2,932) Foreign currency exchange rate changes (5,731) - (5,731) Fair value of plan assets, December 31, 2015 29,446 - 29,446 Funded status, December 31, 2015 (1) $ (4,980) $ (21,278) $ (26,258) Components of the net benefit cost recognized Service cost $ 121 $ 798 $ 919 Interest cost 1,427 984 2,411 Expected return on plan assets (2,054) - (2,054) Amortization of unrecognized items 878 8 886 Net benefit costs $ 372 $ 1,790 $ 2,162 (1) The total of $26,345 on the Consolidated Balance Sheet also includes the pension liabilities of $87 relating to employees at the Company’s Rosenthal mill. Note 7 . Pension and Other Post-Retirement Benefit Obligations (continued) Information about the Celgar Defined Benefit Plans , in aggregate for the year ended December 31, 2014 is as follows: 2014 Pension Other Post-Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2013 $ 43,566 $ 28,458 $ 72,024 Service cost 121 724 845 Interest cost 1,836 1,244 3,080 Benefit payments (2,571) (825) (3,396) Actuarial losses 3,901 1,350 5,251 Foreign currency exchange rate changes (3,780) (2,486) (6,266) Benefit obligation, December 31, 2014 43,073 28,465 71,538 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2013 35,372 - 35,372 Actual returns 3,829 - 3,829 Contributions 2,126 825 2,951 Benefit payments (2,571) (825) (3,396) Foreign currency exchange rate changes (3,103) - (3,103) Fair value of plan assets, December 31, 2014 35,653 - 35,653 Funded status, December 31, 2014 (1) $ (7,420) $ (28,465) $ (35,885) Components of the net benefit cost recognized Service cost $ 121 $ 724 $ 845 Interest cost 1,836 1,244 3,080 Expected return on plan assets (2,225) - (2,225) Amortization of unrecognized items 787 (12) 775 Net benefit costs $ 519 $ 1,956 $ 2,475 (1) The total of $36,014 on the Consolidated Balance Sheet also includes the pension liabilities of $129 relating to employees at the Company’s Rosenthal mill. The amortization of unrecognized items primarily relates to net actuarial losses. The Company expects to recognize approximately $781 of net actuarial losses in 2016. The Celgar Defined Benefit Plans do not have any net transition asset or obligation recognized as a reclassification adjustment of other comprehensive income. There are no plan assets that are expected to be returned to the Company in 2016. The Company anticipates that it will make contributions to the Celgar Defined Benefit Plans of app roximately $667 in 2016. Estimated future benefit payments under the Celgar Defined Benefit Plans are as follows: Pension Other Post-Retirement Benefits 2016 $ 2,223 $ 707 2017 2,220 749 2018 2,224 795 2019 2,232 840 2020 2,228 884 2021 – 2025 10,957 5,106 Note 7 . Pension and Other Post-Retirement Benefit Obligations (continued) Weighted Average Assumptions The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit costs were as follows: December 31, 2015 2014 2013 Benefit obligations Discount rate 4.00% 3.75% 4.50% Rate of compensation increase 2.50% 2.50% 2.75% Net benefit cost for year ended Discount rate 3.75% 4.50% 4.00% Rate of compensation increase 2.50% 2.75% 2.75% Expected rate of return on plan assets 6.40% 6.60% 6.60% 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. 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 expected rate of compensation increase is a management estimate based on, among other factors, historical compensation increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with employees and the outlook for the industry. The assumed health care cost trend rates used to determine the other post-retirement benefit obligations were as follows: December 31, 2015 2014 Health care cost trend rate assumed for next year 6.50% 7.00% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2020 2020 The expected health care cost trend rates are based on historical trends for these costs, as well as recently enacted health care legislation. The Company also compares health care cost trend rates to those of the industry. A on e-percentage point change in assumed health care cost trend rate would h ave the following effect on other post-retirement benefit obligations: December 31, 2015 December 31, 2014 1% 1% 1% 1% Increase Decrease Increase Decrease Effect on total service and interest rate components $ 36 $ (39) $ 54 $ (56) Effect on other post-retirement benefit obligations $ 613 $ (598) $ 830 $ (806) Note 7. Pension and Other Post-Retirement Benefit Obligations (continued) Investment Objective and Asset Allocation The investment objective for the Celgar Defined Benefit 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 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 Defined Benefit 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. The target asset allocation of the Celgar Defined Benefit Plans’ assets, based on the fair value of the assets held, is 60% equity securities and 40% debt securities. The following table presents the Celgar Defined Benefit Plans ’ assets fair value measurements at December 31, 2015: Asset Category Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities $ 17,772 $ - $ - $ 17,772 Debt securities 11,602 - - 11,602 Cash 72 - - 72 Total assets $ 29,446 $ - $ - $ 29,446 Concentrations of Risk in the Celgar Defined Benefit Plan s’ Assets The Company has reviewed the Celgar Defined Benefit 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 three independent investment managers. The Company has concluded that there are no significant concentrations of risk. Defined Contribution Plan Effective December 31, 2008, the Celgar Defined Benefit Plans were 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, 2015 , the Company made co ntributions o f $ 646 ( 2014 – $759 ; 2 013 – $773 ), to this plan. Note 7. Pension and Other Post-Retirement Benefit Obligations (continued) Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining ag reement. The Company has no current or future contribution obligations in excess of the contractual contributions. Contributions during the year ended December 31, 2015 tota led $1,390 ( 2014 – $2,085 ; 2013 – $2,635 ). 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 2015 2014 2013 April 30, The Pulp and Paper Industry Pension Plan P085324 2017 Yes Yes Yes |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Income Taxes Income (loss) before income taxes by taxing jurisdiction was as follows: Year Ended December 31, 2015 2014 2013 United States $ (27,788) $ (55,089) $ (31,032) Foreign 132,739 159,281 14,460 $ 104,951 $ 104,192 $ (16,572) The income tax benefit (provision) recognized in the Consolidated Statement of Operations for the years ended December 31, 2015, 2014 and 2013 is related to foreign tax jurisdictions. 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 (“U.S.”), 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, 2015. However, this could change as tax years are examined by taxing authorities, the timing of those examinations, are uncertain at this time. The German tax authorities have completed examinations up to an d including the 2013 tax year for all but two German entities. For one of the German entities, 2008 to 2014 tax years are being examined and for the other entity, 2011 to 2014 tax years are being examined. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2012 and 2011, respectively. 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. The liability in the Consolidated Balance Sheet related to unrecognized tax benefits was $nil as at December 31, 2015 (2014 – $nil ). 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, 2015, the Company recognized $nil in int erest and penalties (2014 – $nil ; 2013 – $nil ). Note 8. Income Taxes (continued) Differences between the U.S. Federal Statutory and the Company’s effective rates are as follows: Year Ended December 31, 2015 2014 2013 U.S. Federal statutory rate 35% 35% 35% U.S. Federal statutory rate on (income) loss before income taxes and noncontrolling interest $ (36,972) $ (36,467) $ 5,797 Tax differential on foreign income 9,330 11,295 736 Effect of foreign earnings (5,290) (9,998) (945) Valuation allowance (2,765) 52,906 (17,040) Tax benefit of partnership structure 5,217 5,987 5,942 Non-taxable foreign subsidies 2,281 1,263 1,696 True-up of prior year taxes 5,073 - (5,749) Foreign exchange on valuation allowance (5,005) (7,146) 254 Other (1,318) (1,066) 113 $ (29,449) $ 16,774 $ (9,196) Comprised of: Current $ (11,934) $ (5,242) $ 2,286 Deferred (17,515) 22,016 (11,482) $ (29,449) $ 16,774 $ (9,196) The amount included as true-up of prior year taxes primarily includes adjustments that have been offset with a change in valuation allowance. Deferred income tax assets and liabilities are composed of the following: December 31, 2015 2014 German tax loss carryforwards $ 75,668 $ 99,948 U.S. tax loss carryforwards and credits 65,957 54,892 Canadian tax loss carryforwards 217 1,661 Basis difference between income tax and financial reporting with respect to operating pulp mills (58,047) (61,205) Derivative financial instruments 1,862 5,043 Long-term debt (6,253) (3,889) Payable and accrued expenses 7,328 6,304 Deferred pension liability 6,911 9,413 Capital leases 1,146 2,450 Research and development expense pool 3,539 4,193 Other 2,282 3,183 100,610 121,993 Valuation allowance (90,627) (87,862) Net deferred tax asset $ 9,983 $ 34,131 Comprised of: Deferred income tax asset $ 23,154 $ 56,287 Deferred income tax liability (13,171) (22,156) Net deferred tax asset $ 9,983 $ 34,131 Note 8. Income Taxes (continued) The following table details the scheduled expiration dates of the Company’s net operating loss, interest and income tax credit carryforwards as at December 31, 2015: Amount Expiration Date Germany Operating loss $ 261,800 Indefinite Interest $ 127,300 Indefinite U.S. Operating loss $ 181,300 2018 – 2035 Tax credits $ 2,500 2020 – 2025 Canada Operating loss $ 800 2015 – 2035 Scientific research and experimental development tax credit $ 3,500 2030 – 2033 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. The following table summarizes the changes in valuation allowances related to net deferred tax assets: 2015 2014 Balance at January 1 $ 87,862 $ 140,768 Additions (reversals) U.S. 11,571 9,433 Canada (3,801) (3,660) Germany - (51,533) The impact of changes in foreign exchange rates (5,005) (7,146) Balance at December 31 $ 90,627 $ 87,862 As at December 31, 2015, the Company has recognized all deferred tax assets for its German entities and has not recognized deferred tax assets for its U.S. or Canadian entities. The Company has not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as at December 31, 2015 because it intends to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. In addition, the Company has loss carryforwards which may be used to offset any current tax liability. As of December 31, 2015, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approxim ately $299,100 . It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 9 . Shareholders’ Equity Dividends During the year ended December 31, 2015, the Company’s Board of Directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount July 30, 2015 $ 0.115 $ 7,418 October 29, 2015 0.115 7,418 $ 0.230 $ 14,836 Dividends are paid in the quarter subsequent to the quarter in which they were declared. In F ebruary 2016 , the Company’ s Board of Directors declared a quarterly dividend of $0.115 per common share. Payment of the dividend will be made on April 5, 2016 to all shareholders of record on March 28, 2016 . Future dividends are subject to approval by the Board of Directors and may be adjusted as business and industry conditions warrant. Share Capital Common shares On April 2, 2014 , the Company issued an aggregate of 8,050,000 common shares by way of public offering at a price of $7.15 per share for net proceeds of $53,859 after deducting the underwriters’ discounts and offering expenses. In September 2014 , the Company contributed $20,000 of the net proceeds to further capitalize the Stendal mill. The Company used the balance of the net proceeds for capital expenditures, including expansion of our wood procurement and logistics operations in Germany, and for general corporate purposes. Preferred shares The Company has authorized 50,000,000 preferred shares (2014 – 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, 2015, no preferred shares had been issued by the Company. Stock Based Compensation In June 2010, the Company adopt ed a 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 year ended December 31, 2015 , there were no issued and outstanding restricted stock rights, performance shares or stock appreciation rights. As at December 31, 2015 , after factoring in all allo cated shares, there remain approximately 2 ,049,000 common sha res available for grant. PSUs 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. For the year ended December 31, 2015, the Company recognized an expense of $1,819 rela ted to PSUs (2014 – $1,023 ; 2013 – $2,882 ) . Note 9 . Shareholders’ Equity (continued) The following table summarizes PSU activity during the year : Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding at January 1, 2015 969,544 $ 10.64 Granted 471,488 $ 12.95 Vested and issued (160,608) $ 12.96 Forfeited (24,505) $ 10.54 Outstanding at December 31, 2015 1,255,919 $ 11.21 The weighted-average grant date fair value per unit of all PSUs granted in 2014 and 2013 was $9.50 and $7.30 , respectively. The total fair value of PSUs vested and issued in 2015, 2014 and 2013 was $2,031 , $3,046 and $nil , respectively. Restricted Shares Restricted shares generally vest at the end of 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. Expense recognized for the year ended December 31, 2015 was $59 0 (2014 – $563 ; 2013 – $692 ). As at December 31, 2015, the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $244 w hich will be amortized over the remaining vesting periods . T he following table summarizes restricted share activity during the year : Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2015 118,000 $ 11.58 Granted 38,000 $ 14.48 Vested and issued (78,000) $ 10.91 Outstanding at December 31, 2015 78,000 $ 13.65 The weighted-average grant date fair value per share of all restricted shares granted in 2014 and 2013 was $8.85 and $7.00 , respectively. The total fair value of restricted shares vested and issued in 2015, 2014 and 2013 was $1,096 , $670 and $532 , respectively. Stock Options During the year ended December 31, 2015 , no options were granted, no options expired , 30,000 stock options were exercised for proceeds of $219 and 25,000 stock options were cancelled in exchange for $1 54 . The Company has no stock options outstanding as at December 31, 2015 . Expense recognized for the year ended December 31, 2015 related to stock options was $nil (2014 – $nil ; 2013 – $nil ) . |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable To Common Shareholders | 12 Months Ended |
Dec. 31, 2015 | |
Net Income (Loss) Per Share Attributable To Common Shareholders [Abstract] | |
Net Income (Loss) Per Share Attributable To Common Shareholders | Note 10 . Net Income (Loss) Per Share Attributable to Common Shareholders Year Ended December 31, 2015 2014 2013 Net income (loss) attributable to common shareholders Basic and diluted $ 75,502 $ 113,154 $ (26,375) Net income (loss) per share attributable to common shareholders Basic $ 1.17 $ 1.82 $ (0.47) Diluted $ 1.17 $ 1.81 $ (0.47) Weighted average number of common shares outstanding: Basic (1) 64,380,565 62,012,947 55,673,838 Effect of dilutive shares: PSUs 335,922 406,922 - Restricted shares 56,453 79,889 - Stock options 3,852 15,112 - Diluted 64,776,792 62,514,870 55,673,838 (1) For the year ended December 31, 2015, t he basic weighted average number of shares excludes 78,000 restricted shares which have been issued, but have not vested as at December 31, 2015 (2014 – 118,000 restricted shares; 2013 – 158,000 restricted shares). The calculation of diluted net income (loss) per share attributable to common shareholders does not assume the exercise of an y instruments that would have an anti-dilutive effect on net income 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, 2015 2014 2013 PSUs - - 791,432 Restricted shares - - 158,000 Stock Options - - 75,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | Note 1 1 . Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: Year Ended December 31, 2015 2014 Foreign currency translation adjustments $ (156,223) $ (33,268) Unrecognized losses and prior service costs related to defined benefit plans (15,338) (19,287) Unrealized gains (losses) on marketable securities (13) 114 Accumulated other comprehensive loss $ (171,574) $ (52,441) |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest (Deficit) [Abstract] | |
Noncontrolling Interest (Deficit) | Note 1 2 . Noncontrolling Interest In September 2014 , concurrent with the settlement of all outstanding loans payable to the noncontrolling shareholder of the Stendal mill, the Company paid $444 ( €0.35 million) to acquire substantially all of the remaining shares of the noncontrolling interest and other rights in the Stendal mill. Accordingly, the Company included the noncontrolling interest in its consolidated results subsequent to this transaction. The increase in ownership was accounted for as an equity transaction and as a result, the noncontrolling interest was reduced by $2,949 and retained earnings, which includes legal fees of approximately $200 associated with the transaction, was reduced by $4,770 . In addition, the Company reclassified to retained earnings $18,985 of negative paid-in capital concurrent with the buyout of the noncontrolling interest in the Stendal mill. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment Information [Abstract] | |
Business Segment Information | Note 13 . Business Segment Information The Company has three operating segments, the individual pulp mills that are aggregated into one reportable business segment, market pulp, due to the similar economic characteristics of the mills. Accordingly, the results presented are those of the one reportable business segment. The following table presents net sales to external customers by product and by geographic area based on location of the customer: Year Ended December 31, 2015 2014 2013 Pulp revenues Germany $ 344,843 $ 346,879 $ 321,711 China 266,632 276,848 300,827 Other European Union countries (1) 210,218 250,952 224,988 Italy 53,919 80,730 65,654 Other Asia 43,981 69,711 49,855 U.S. 15,453 39,146 30,404 Other countries 11,191 9,366 2,748 946,237 1,073,632 996,187 Energy and chemical revenues Germany 75,776 91,375 79,948 Canada 11,191 10,105 12,250 $ 1,033,204 $ 1,175,112 $ 1,088,385 (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, 2015 2014 Germany $ 623,932 $ 711,368 Canada 138,459 171,782 $ 762,391 $ 883,150 In 2015 , one customer through several of its operations accounted for 1 6 % of the Company’s total pulp sales (2014 – one customer through several of its operations accounted for 13% ; 2013 – two customers through several of their operations accounted for 1 0 % and 11% , respectively). |
Derivative Transactions
Derivative Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Transactions [Abstract] | |
Derivative Transactions | Note 14 . 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 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. 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, 2015 2014 2013 Interest rate derivative contract $ (935) $ 11,501 $ 22,476 Pulp price derivative contracts - - (2,767) $ (935) $ 11,501 $ 19,709 Interest Rate Derivative During 2002, 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 mill ’ s senior project finance facility, which was settled in November 2014. Under the remaining interest rate swaps, the Company pays a fixed rate and receives a floating rate with the derivative payments being calculated on a notional amount. As at December 31, 2015, the contract has a fair value of €1 5.6 million ( $1 6 ,9 13 ; 2014 – $32,794 ) of which €9 . 6 million ( $1 0 , 380 ; 2014 – $14,832 ) is classified as current w ithin accounts payable and other and €6. 0 million ( $6, 533 ; 2014 – $17,962 ) i s classified as a long-term liability in the Consolidated Balance Sheet. The contract has an aggregate notional amoun t of € 192.4 million , a fixed interest rate of 5.28 % and matures in October 2017 . The Company has pledged as collateral cash in the amount of 67% of the fair value of the interest rate swap up to €8.5 million to the derivative counterparty. The calculation to determine the collateral is performed semi-annually, with the final calculation in October 2017. As at December 31, 2015 , the collateral was €8.5 million ( $9,230 ; 2014 – $10,286 ). This cash has been classified as restricted cash in the Consolidated Balance Sheet. The counterparty to the interest rate derivative is a bank that is a member of a banking syndicate that holds the Stend al €75.0 mi llion revolving credit facility and the Company does not anticipate non-performance by the bank. Credit Risk The Company’s credit risk is primarily attributable to cash held in bank accounts and accounts receivable. The Company maintains cash balances in foreign financial institutions in excess of insured limits. The Company limits its credit exposure on cash held in bank accounts by periodically investing cash in excess of short-term operating requirements and debt obligations in low risk government bonds, or similar debt instruments. The Company’s credit risk associated with the sale of pulp products is managed through 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 primarily in Germany, China and Italy. The carrying amount of cash and cash equivale nts of $99,629 , rest ricted cash of $9,230 and a ccounts receivable of $134,254 recorde d in the Consolidated Balance Sheet, net of any allowances for losses, represents the Company’s maximum exposure to credit risk. |
Fair Value Measurement and Disc
Fair Value Measurement and Disclosure | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement and Disclosure [Abstract] | |
Fair Value Measurement and Disclosure | Note 15 . Fair Value Measurement and Disclosure Due to their short-term maturity, the carrying amounts of cash and cash equivalents, restr icted cash, accounts receivable and accounts payable and other approximates their fair value. The fair value of the interest rate derivative liability classified as Level 2 is determined using a discounted cash flow model that use s as its basis readily observable market inputs, such as forward interest rates and yield curves observable at specified intervals. The observable inputs reflect market data obtained from independent sources , including the Euribor rate provided by the counterparty to the interest rate derivative . The fair value of debt classified as Level 2 is determined using quoted prices in a dealer market, or using recent market transactions. The fair value of debt classified as Level 3 was valued using a discounted cash flow model. The follo wing table presents a summary of the Company’s outstanding financial instruments and their estimated fair values under the fair value hierarchy: Fair value measurements at December 31, 2015 using: Description Level 1 Level 2 Level 3 Total Liabilities Interest rate derivative $ - $ 16,913 $ - $ 16,913 Debt Senior Notes - 654,625 - 654,625 $ - $ 671,538 $ - $ 671,538 Fair value measurements at December 31, 2014 using: Description Level 1 Level 2 Level 3 Total Liabilities Interest rate derivative $ - $ 32,794 $ - $ 32,794 Debt Senior Notes - 657,500 - 657,500 Revolving credit facilities - 25,412 - 25,412 Payment-in-kind note - - 12,101 12,101 $ - $ 715,706 $ 12,101 $ 727,807 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Lease Commitments [Abstract] | |
Lease Commitments | Note 1 6 . 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, 2015 are as follows: Capital Operating Leases Leases 2016 $ 2,532 $ 1,380 2017 1,957 1,266 2018 1,327 1,261 2019 2,344 772 2020 240 - Thereafter 244 - Total 8,644 $ 4,679 Less: imputed interest 344 Total present value of minimum capitalized payments 8,300 Less: current portion of capital lease obligations 2,433 Long-term capital lease obligations $ 5,867 Note 1 6 . Lease Commitments (continued) In June 2015, the Company entered into certain non-cancellable capital leases for transportation vehicles that will be delivered in 2016, with total minimum lease payments of $12,656 over the 12 year term of the leases. 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. Rent expense under operating leases was $2,271 for the year ended December 31, 2015 (2014 – $2,978 ; 2013 – $3,497 ). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | Note 17 . Commitments and Contingencies (a) The Company is involved in legal actions and claims arising in the ordinary course of business. While the outcome of any legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such 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. (b) In 2012, as a result of a regular tax field audit for the Stendal mill, German public authorities commenced a preliminary investigation into past 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 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. The amounts under review aggregate approximately €8.3 million ( $9,013 ) . 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. (c) The Company is subject to regulations that require the handling and disposal of asbestos in a prescribed manner if a property undergoes a major renovation or demolition. Otherwise, the Company is not required to remove asbestos from its facilities. Generally asbestos is found on steam and condensate piping systems as well as certain cladding on buildings and in building insulation throughout older facilities. The Company’s obligation for the proper removal and disposal of asbestos products from the Company’s mills is a conditional asset retirement obligation. As a result of the longevity of the Company’s mills, due in part to the maintenance procedures and the fact that the Company does not have plans for major changes that require the removal of asbestos, the timing of the asbestos removal is indeterminate. As a result, the Company is currently unable to reasonably estimate the fair value of its asbestos removal and disposal obligation. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. |
The Company And Summary Of Si27
The Company And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
The Company And Summary Of Significant Accounting Policies [Abstract] | |
Background | Background Mercer International Inc. (“Mercer Inc.”) i s a Washington corporation and its 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 (“U.S. dollars” or “$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. |
Basis of Presentation | Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its 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. |
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, pensions and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Restricted cash is comprised of cash deposits that cannot be withdrawn without prior notice or penalty. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. 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 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 recognized as an expense in the Consolidated Statement of 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. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. 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 the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received . 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. |
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 year. 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 determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. T he Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within accumulated other comprehensive income (loss) in shareholders’ equity. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions 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 Recognition | Revenue Recognition The Company recognizes revenue from pulp and chemical 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. The Company reports revenue from sales of surplus electricity and the sale of chemicals as “energy and chemicals” revenue 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 period but billed subsequent to period-end. Customer bills are based on agreed upon rates and meter readings that indicate electricity consumption. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling costs 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. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense over an award ’ s requisite service period based on the award’s fair value in selling, general, and administrative expenses within the Consolidated Statement of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units (“PSUs”) which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management ’ s best estimate. The final determination of the number of shares to be granted is made by the Company’s Board of Directors . The Company estimates forfeitures of PSUs 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 shares is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. |
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 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 interest rate swaps and pulp price swaps to limit exposures to changes in interest rates and pulp prices. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value on the Consolidated Balance Sheet with the changes in fair value 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. |
Fair Value Measurements | Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: 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 financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
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 and PSUs represent the only potentially dilutive effects on the Company’s weighted average shares. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Implemented In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs ( “ ASU 2015-03 ” ) which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt, consistent with the presentation of a debt discount. Amortization of debt issuance costs shall continue to be reported as interest expense over the term of the related debt instrument. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015 and should be applied retrospectively to all periods presented . Early application is permitted for all entities at the beginning of an interim or annual reporting period. The Company has elected to early adopt ASU 2015-03 and as at December 31, 2015 $11,957 (2014 – $13,842 ) has been reclassified from intangible and other assets to long-term debt on the Consolidated Balance Sheets. The Company has not reclassified commitment fees related to revolving credit facilities due to their variable outstanding balances, and will continue to amortize these fees to interest expense over the term of the related revolving credit facility. In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes ( “ ASU 2015-17 ” ) which requires deferred tax liabilities and assets to be presented as long-term in the balance sheet. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2016 and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early application is permitted for all entities as of the beginning of an interim or annual reporting period. The Company has elected to early adopt ASU 2015-17 and as at December 31, 2015 $19,473 (2014 – $19,968 ) has been reclassified from current deferred income tax assets wit h $12,595 (2014 – $13,232 ) being reclassified to long-term deferred income tax assets and $6,878 (2 014 – $6,736 ) being reclassified to long-term deferred income tax liabilities on the Consolidated Balance Sheets. Accounting Pronouncements Not Yet Implemented In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09 , Revenue Recognition – Revenue from Contracts with Customers ( “ ASU 2014-09 ” ) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. The Company is currently assessing the impact, if any, the adoption of ASU 2014-09 will have on its consolidated financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-11, Simplifying the Measurement of Inventory ( “ ASU 2015-11 ” ) which requires that inventory within the scope of this update, including inventory stated at average cost, be measured at the lower of cost and net realizable value. This update is effective for financial statements issued for fiscal years beginning after December 15, 2016, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact the Company’s financial position. |
Accounts Receivables (Tables)
Accounts Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Receivables [Abstract] | |
Schedule of Accounts Receivables | December 31, 2015 2014 Sale of pulp, energy and chemicals, net of allowance of $15 (2014 – $29 ) $ 119,359 $ 133,586 Other non-trade receivables 14,895 7,502 $ 134,254 $ 141,088 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Components of Inventory | December 31, 2015 2014 Raw materials $ 57,592 $ 52,877 Finished goods 36,829 45,090 Spare parts and other 46,580 48,609 $ 141,001 $ 146,576 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Land $ 27,625 $ 30,803 Buildings 154,047 172,626 Production and other equipment 1,299,076 1,422,828 1,480,748 1,626,257 Less: accumulated depreciation (718,357) (743,107) $ 762,391 $ 883,150 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts Payable and Other [Abstract] | |
Schedule of Accounts Payable and Other | December 31, 2015 2014 Trade payables $ 20,637 $ 22,729 Accrued expenses 55,648 52,968 Interest rate derivative liability, current portion (Note 14) 10,380 14,832 Other 9,367 11,696 $ 96,032 $ 102,225 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt [Abstract] | |
Schedule Of Debt | December 31, 2015 2014 2019 Senior Notes, unsecured, $250,000 face value (a) $ 245,689 $ 244,711 2022 Senior Notes, unsecured, $400,000 face value (a) 392,354 391,447 Payment-in-kind note (b) - 12,101 Revolving credit facilities €75.0 million (c) - 25,412 C$40.0 million (d) - - €25.0 million (e) - - €5.0 million (f) - - 638,043 673,671 Less: current portion - (12,101) Debt, less current portion $ 638,043 $ 661,570 (a) On November 26, 2014 , the Company issued $650,000 of senior notes consisting of $250,000 in aggregate principal amount of 7.00% senior notes which mature on December 1, 2019 ( “ 2019 Senior Notes ” ) and $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ( “ 2022 Senior Notes ” and collectively with the 2019 Senior Notes, the “ Senior Notes ” ). The Senior Notes were issued at a price of 100% of their principal amount. Upon their issuance the Senior Notes were recorded at $635,949 which included debt issuance costs of $14,051 . These costs were proportionally allocated to the 2019 Senior Notes and the 2022 Senior Notes. The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are 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 existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company’s 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) discussed below, plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2019 Senior Notes redemption prices are equal to 103.50% for the twelve month period beginning on December 1, 2016, 101.75% for the twelve month period beginning on December 1, 2017, and 100.00% beginning on December 1, 2018 and at any time thereafter. The 2022 Senior Notes redemption prices are equal to 105.813% for the twelve month period beginning on December 1, 2017, 103.875% for the twelve month period beginning on December 1, 2018, 101.938% for the twelve month period beginning on December 1, 2019, and 100.00% beginning on December 1, 2020 and at any time thereafter. (b) A €10.0 million payment-in-kind note due to the former noncontrolling shareholder of the Stendal mill which the Company redeemed on April 20, 2015 for a cash payment of €10.0 million ( $10,763 ). (c) A €75.0 million revolving credit facility at the Stendal mill that matures in October 2019 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and bear interest at Euribor plus 3.50% . As at December 31, 2015, approximately €75.0 million ( $81,443 ) was available. (d) A C$40.0 million revolving credit facility at the Celgar mill that matures in May 2019 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and are restricted by a borrowing base calculated on the mill ’ s inventory and accounts receivable . Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime . U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . As at December 31, 2015, approximately C$1.7 million ( $1,228 ) was supporting letters of credit and approximately C$38.3 million ( $27,674 ) was avail able. (e) A €25.0 million revolving credit facility at the Rosenthal mill that matures in October 2016 . Borrowings under the facility are collateralized by the mill ’ s inventory and accounts receivable and bear interest at Euribor plus 3.50% . As at December 31, 2015 , approximatel y € 3.1 million ( $3,324 ) of this facility was supporting bank guarantees leaving approximately € 21. 9 million ( $23,823 ) available. In February 2016, the Company amended the facility, including extending its maturity date to October 2019 and reducing the applicable margin on borrowings from 3.50% to 2.95%. A €5.0 million revolving credit facility at the Rosenthal mill that matures in December 2018. Borrowings under this facility bear interest at the rate of the three-month Euribor plus 2.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2015 approximately € 1.3 million ($1,358) of this facility was supporting bank guarantees leaving approximately € 3.7 million ($4,071) available . |
Principal Maturities Of Debt | Matures Amount 2016 $ - 2017 - 2018 - 2019 250,000 2020 - Thereafter 400,000 $ 650,000 |
Pension And Other Post-Retire33
Pension And Other Post-Retirement Benefit Obligations (Tables) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 2015 Pension Other Post-Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2014 $ 43,073 $ 28,465 $ 71,538 Service cost 121 798 919 Interest cost 1,427 984 2,411 Benefit payments (2,345) (587) (2,932) Actuarial gains (1,021) (3,988) (5,009) Foreign currency exchange rate changes (6,829) (4,394) (11,223) Benefit obligation, December 31, 2015 34,426 21,278 55,704 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2014 35,653 - 35,653 Actual returns 107 - 107 Contributions 1,762 587 2,349 Benefit payments (2,345) (587) (2,932) Foreign currency exchange rate changes (5,731) - (5,731) Fair value of plan assets, December 31, 2015 29,446 - 29,446 Funded status, December 31, 2015 (1) $ (4,980) $ (21,278) $ (26,258) Components of the net benefit cost recognized Service cost $ 121 $ 798 $ 919 Interest cost 1,427 984 2,411 Expected return on plan assets (2,054) - (2,054) Amortization of unrecognized items 878 8 886 Net benefit costs $ 372 $ 1,790 $ 2,162 (1) The total of $26,345 on the Consolidated Balance Sheet also includes the pension liabilities of $87 relating to employees at the Company’s Rosenthal mill. | 2014 Pension Other Post-Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2013 $ 43,566 $ 28,458 $ 72,024 Service cost 121 724 845 Interest cost 1,836 1,244 3,080 Benefit payments (2,571) (825) (3,396) Actuarial losses 3,901 1,350 5,251 Foreign currency exchange rate changes (3,780) (2,486) (6,266) Benefit obligation, December 31, 2014 43,073 28,465 71,538 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2013 35,372 - 35,372 Actual returns 3,829 - 3,829 Contributions 2,126 825 2,951 Benefit payments (2,571) (825) (3,396) Foreign currency exchange rate changes (3,103) - (3,103) Fair value of plan assets, December 31, 2014 35,653 - 35,653 Funded status, December 31, 2014 (1) $ (7,420) $ (28,465) $ (35,885) Components of the net benefit cost recognized Service cost $ 121 $ 724 $ 845 Interest cost 1,836 1,244 3,080 Expected return on plan assets (2,225) - (2,225) Amortization of unrecognized items 787 (12) 775 Net benefit costs $ 519 $ 1,956 $ 2,475 (1) The total of $36,014 on the Consolidated Balance Sheet also includes the pension liabilities of $129 relating to employees at the Company’s Rosenthal mill. |
Estimated future benefit payments | Pension Other Post-Retirement Benefits 2016 $ 2,223 $ 707 2017 2,220 749 2018 2,224 795 2019 2,232 840 2020 2,228 884 2021 – 2025 10,957 5,106 | |
Summary of Key Assumptions | December 31, 2015 2014 2013 Benefit obligations Discount rate 4.00% 3.75% 4.50% Rate of compensation increase 2.50% 2.50% 2.75% Net benefit cost for year ended Discount rate 3.75% 4.50% 4.00% Rate of compensation increase 2.50% 2.75% 2.75% Expected rate of return on plan assets 6.40% 6.60% 6.60% | |
Assumed Health Care Cost Trend Rates | December 31, 2015 2014 Health care cost trend rate assumed for next year 6.50% 7.00% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2020 2020 | |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | December 31, 2015 December 31, 2014 1% 1% 1% 1% Increase Decrease Increase Decrease Effect on total service and interest rate components $ 36 $ (39) $ 54 $ (56) Effect on other post-retirement benefit obligations $ 613 $ (598) $ 830 $ (806) | |
Schedule of Allocation of Plan Assets | Asset Category Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Equity securities $ 17,772 $ - $ - $ 17,772 Debt securities 11,602 - - 11,602 Cash 72 - - 72 Total assets $ 29,446 $ - $ - $ 29,446 | |
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 2015 2014 2013 April 30, The Pulp and Paper Industry Pension Plan P085324 2017 Yes Yes Yes |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Year Ended December 31, 2015 2014 2013 United States $ (27,788) $ (55,089) $ (31,032) Foreign 132,739 159,281 14,460 $ 104,951 $ 104,192 $ (16,572) |
Reconciliation Of Effective Tax Rate | Year Ended December 31, 2015 2014 2013 U.S. Federal statutory rate 35% 35% 35% U.S. Federal statutory rate on (income) loss before income taxes and noncontrolling interest $ (36,972) $ (36,467) $ 5,797 Tax differential on foreign income 9,330 11,295 736 Effect of foreign earnings (5,290) (9,998) (945) Valuation allowance (2,765) 52,906 (17,040) Tax benefit of partnership structure 5,217 5,987 5,942 Non-taxable foreign subsidies 2,281 1,263 1,696 True-up of prior year taxes 5,073 - (5,749) Foreign exchange on valuation allowance (5,005) (7,146) 254 Other (1,318) (1,066) 113 $ (29,449) $ 16,774 $ (9,196) Comprised of: Current $ (11,934) $ (5,242) $ 2,286 Deferred (17,515) 22,016 (11,482) $ (29,449) $ 16,774 $ (9,196) |
Deferred Tax Assets And Liabilities | December 31, 2015 2014 German tax loss carryforwards $ 75,668 $ 99,948 U.S. tax loss carryforwards and credits 65,957 54,892 Canadian tax loss carryforwards 217 1,661 Basis difference between income tax and financial reporting with respect to operating pulp mills (58,047) (61,205) Derivative financial instruments 1,862 5,043 Long-term debt (6,253) (3,889) Payable and accrued expenses 7,328 6,304 Deferred pension liability 6,911 9,413 Capital leases 1,146 2,450 Research and development expense pool 3,539 4,193 Other 2,282 3,183 100,610 121,993 Valuation allowance (90,627) (87,862) Net deferred tax asset $ 9,983 $ 34,131 Comprised of: Deferred income tax asset $ 23,154 $ 56,287 Deferred income tax liability (13,171) (22,156) Net deferred tax asset $ 9,983 $ 34,131 |
Summary of valuation allowance | 2015 2014 Balance at January 1 $ 87,862 $ 140,768 Additions (reversals) U.S. 11,571 9,433 Canada (3,801) (3,660) Germany - (51,533) The impact of changes in foreign exchange rates (5,005) (7,146) Balance at December 31 $ 90,627 $ 87,862 |
Summary Of Tax Carryforwards | Amount Expiration Date Germany Operating loss $ 261,800 Indefinite Interest $ 127,300 Indefinite U.S. Operating loss $ 181,300 2018 – 2035 Tax credits $ 2,500 2020 – 2025 Canada Operating loss $ 800 2015 – 2035 Scientific research and experimental development tax credit $ 3,500 2030 – 2033 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Line Items] | |
Summary of Dividends Declared | Date Declared Dividend Per Common Share Amount July 30, 2015 $ 0.115 $ 7,418 October 29, 2015 0.115 7,418 $ 0.230 $ 14,836 |
Performance Share Units [Member] | |
Shareholders' Equity [Line Items] | |
Summary Of Share Based Compensation Arrangement Activity | Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding at January 1, 2015 969,544 $ 10.64 Granted 471,488 $ 12.95 Vested and issued (160,608) $ 12.96 Forfeited (24,505) $ 10.54 Outstanding at December 31, 2015 1,255,919 $ 11.21 |
Restricted Stock [Member] | |
Shareholders' Equity [Line Items] | |
Summary Of Share Based Compensation Arrangement Activity | Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding at January 1, 2015 118,000 $ 11.58 Granted 38,000 $ 14.48 Vested and issued (78,000) $ 10.91 Outstanding at December 31, 2015 78,000 $ 13.65 |
Net Income (Loss) Per Share A36
Net Income (Loss) Per Share Attributable To Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Net income (loss) attributable to common shareholders Basic and diluted $ 75,502 $ 113,154 $ (26,375) Net income (loss) per share attributable to common shareholders Basic $ 1.17 $ 1.82 $ (0.47) Diluted $ 1.17 $ 1.81 $ (0.47) Weighted average number of common shares outstanding: Basic (1) 64,380,565 62,012,947 55,673,838 Effect of dilutive shares: PSUs 335,922 406,922 - Restricted shares 56,453 79,889 - Stock options 3,852 15,112 - Diluted 64,776,792 62,514,870 55,673,838 (1) For the year ended December 31, 2015, t he basic weighted average number of shares excludes 78,000 restricted shares which have been issued, but have not vested as at December 31, 2015 (2014 – 118,000 restricted shares; 2013 – 158,000 restricted shares). |
Schedule of Antidilutive Instruments Excluded from Computation of Net Income Per Share | Year Ended December 31, 2015 2014 2013 PSUs - - 791,432 Restricted shares - - 158,000 Stock Options - - 75,000 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Year Ended December 31, 2015 2014 Foreign currency translation adjustments $ (156,223) $ (33,268) Unrecognized losses and prior service costs related to defined benefit plans (15,338) (19,287) Unrealized gains (losses) on marketable securities (13) 114 Accumulated other comprehensive loss $ (171,574) $ (52,441) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Segment Information [Abstract] | |
Schedule Of Net Sales To External Customers By Geographic Area Based On Location Of The Customer | Year Ended December 31, 2015 2014 2013 Pulp revenues Germany $ 344,843 $ 346,879 $ 321,711 China 266,632 276,848 300,827 Other European Union countries (1) 210,218 250,952 224,988 Italy 53,919 80,730 65,654 Other Asia 43,981 69,711 49,855 U.S. 15,453 39,146 30,404 Other countries 11,191 9,366 2,748 946,237 1,073,632 996,187 Energy and chemical revenues Germany 75,776 91,375 79,948 Canada 11,191 10,105 12,250 $ 1,033,204 $ 1,175,112 $ 1,088,385 (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, 2015 2014 Germany $ 623,932 $ 711,368 Canada 138,459 171,782 $ 762,391 $ 883,150 |
Derivative Transactions (Tables
Derivative Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Interest rate derivative contract $ (935) $ 11,501 $ 22,476 Pulp price derivative contracts - - (2,767) $ (935) $ 11,501 $ 19,709 |
Fair Value Measurement and Di40
Fair Value Measurement and Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement and Disclosure [Abstract] | |
Outstanding Financial Instruments And Estimated Fair Values | Fair value measurements at December 31, 2015 using: Description Level 1 Level 2 Level 3 Total Liabilities Interest rate derivative $ - $ 16,913 $ - $ 16,913 Debt Senior Notes - 654,625 - 654,625 $ - $ 671,538 $ - $ 671,538 Fair value measurements at December 31, 2014 using: Description Level 1 Level 2 Level 3 Total Liabilities Interest rate derivative $ - $ 32,794 $ - $ 32,794 Debt Senior Notes - 657,500 - 657,500 Revolving credit facilities - 25,412 - 25,412 Payment-in-kind note - - 12,101 12,101 $ - $ 715,706 $ 12,101 $ 727,807 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Lease Commitments [Abstract] | |
Schedule Of Minimum Future Payments Under Leases | Capital Operating Leases Leases 2016 $ 2,532 $ 1,380 2017 1,957 1,266 2018 1,327 1,261 2019 2,344 772 2020 240 - Thereafter 244 - Total 8,644 $ 4,679 Less: imputed interest 344 Total present value of minimum capitalized payments 8,300 Less: current portion of capital lease obligations 2,433 Long-term capital lease obligations $ 5,867 |
The Company And Summary Of Si42
The Company And Summary Of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||
Number of pulp mills | item | 3 | |
Cash And Cash Equivalents Maturity Period | 3 months | |
Net actuarial gain (loss) percent that is exceeded for amortization | 10.00% | |
Early adoption impact - deferred income tax assets, noncurrent | $ 23,154 | $ 56,287 |
Early adoption impact - deferred income tax liabilities, noncurrent | 13,171 | 22,156 |
Accounting Standards Update 2015-03 [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Early adoption impact - deferred note issuance costs | 11,957 | 13,842 |
Accounting Standards Update 2015-17 [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Early adoption impact - deferred income tax assets, current | 19,473 | 19,968 |
Early adoption impact - deferred income tax assets, noncurrent | 12,595 | 13,232 |
Early adoption impact - deferred income tax liabilities, noncurrent | $ 6,878 | $ 6,736 |
Production and other equipment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 25 years | |
Minimum [Member] | Land and Building [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Maximum [Member] | Land and Building [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 | item | 2 | |
Canada | ||
Summary of Significant Accounting Policies [Line Items] | ||
Number of pulp mills | item | 1 |
Accounts Receivables (Details)
Accounts Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance | $ 15 | $ 29 |
Accounts receivables | 134,254 | 141,088 |
Sale of pulp, energy and chemicals [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivables | 119,359 | 133,586 |
Other non-trade receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivables | $ 14,895 | $ 7,502 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - 12 months ended Dec. 31, 2015 $ in Thousands, CAD in Millions | CAD | USD ($) |
Subsequent Event [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gain related to utiltiies dispute settlement | CAD 8.5 | $ 6,109 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 57,592 | $ 52,877 |
Finished goods | 36,829 | 45,090 |
Spare parts and other | 46,580 | 48,609 |
Inventories | $ 141,001 | $ 146,576 |
Property, Plant And Equipment46
Property, Plant And Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,480,748 | $ 1,626,257 |
Less: Accumulated Depreciation | (718,357) | (743,107) |
Property, plant and equipment, net | 762,391 | 883,150 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27,625 | 30,803 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 154,047 | 172,626 |
Production and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,299,076 | $ 1,422,828 |
Property, Plant And Equipment47
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Unamortized government investment grants | $ 253,178 | $ 305,045 | |
Capital leases, gross amounts | 16,233 | 20,325 | |
Capital leases, accumulated depreciation | 8,395 | 6,218 | |
Acquisition of production and other equipment under capital lease obligations | 70 | 2,960 | $ 2,112 |
Asset retirement obligation | $ 4,620 | $ 4,798 |
Accounts Payable and Other (Det
Accounts Payable and Other (Details) $ in Thousands, € in Millions | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Accounts Payable and Other [Abstract] | |||
Trade payables | $ 20,637 | $ 22,729 | |
Accrued expenses | 55,648 | 52,968 | |
Interest rate derivative liability, current portion (Note 14) | € 9.6 | 10,380 | 14,832 |
Other | 9,367 | 11,696 | |
Accounts payable and other | $ 96,032 | $ 102,225 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) $ in Thousands, € in Millions, CAD in Millions | Dec. 31, 2015CAD | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014CAD | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Nov. 26, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||||
Total debt | $ 638,043 | $ 673,671 | ||||||
Less: current portion | 0 | (12,101) | ||||||
Debt, less current portion | 638,043 | 661,570 | ||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | $ 635,949 | |||||||
Debt, face amount | 650,000 | |||||||
Payment-in-kind note [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [1] | 0 | 12,101 | |||||
Debt, face amount | € | € 10 | |||||||
2019 Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [2] | 245,689 | 244,711 | |||||
Debt, face amount | 250,000 | 250,000 | ||||||
2022 Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [2] | 392,354 | 391,447 | |||||
Debt, face amount | 400,000 | 400,000 | ||||||
Stendal Credit Facility - EUR 75.0 Million [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [3] | 0 | 25,412 | |||||
Maximum borrowing capacity | € | 75 | € 75 | ||||||
Celgar Credit Facility - C$40.0 Million [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [4] | 0 | 0 | |||||
Maximum borrowing capacity | CAD | CAD 40 | CAD 40 | ||||||
Rosenthal Credit Facility - EUR 25.0 Million [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [5] | 0 | 0 | |||||
Maximum borrowing capacity | € | 25 | 25 | ||||||
Rosenthal Credit Facility - EUR 5.0 Million [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt | [6] | $ 0 | $ 0 | |||||
Maximum borrowing capacity | € | € 5 | € 5 | ||||||
[1] | A €10.0 million payment-in-kind note due to the former noncontrolling shareholder of the Stendal mill which the Company redeemed on April 20, 2015 for a cash payment of €10.0 million ($10,763). | |||||||
[2] | On November 26, 2014, the Company issued $650,000 of senior notes consisting of $250,000 in aggregate principal amount of 7.00% senior notes which mature on December 1, 2019 ("2019 Senior Notes") and $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ("2022 Senior Notes" and collectively with the 2019 Senior Notes, the "Senior Notes"). The Senior Notes were issued at a price of 100% of their principal amount. Upon their issuance the Senior Notes were recorded at $635,949 which included debt issuance costs of $14,051. These costs were proportionally allocated to the 2019 Senior Notes and the 2022 Senior Notes. The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are 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 existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company's 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) discussed below, plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2019 Senior Notes redemption prices are equal to 103.50% for the twelve month period beginning on December 1, 2016, 101.75% for the twelve month period beginning on December 1, 2017, and 100.00% beginning on December 1, 2018 and at any time thereafter. The 2022 Senior Notes redemption prices are equal to 105.813% for the twelve month period beginning on December 1, 2017, 103.875% for the twelve month period beginning on December 1, 2018, 101.938% for the twelve month period beginning on December 1, 2019, and 100.00% beginning on December 1, 2020 and at any time thereafter. | |||||||
[3] | A €75.0 million revolving credit facility at the Stendal mill that matures in October 2019. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and bear interest at Euribor plus 3.50%. As at December 31, 2015, approximately €75.0 million ($81,443) was available. | |||||||
[4] | A C$40.0 million revolving credit facility at the Celgar mill that matures in May 2019. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and are restricted by a borrowing base calculated on the mill's inventory and accounts receivable. Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime. U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base. As at December 31, 2015, approximately C$1.7 million ($1,228) was supporting letters of credit and approximately C$38.3 million ($27,674) was available. | |||||||
[5] | A €25.0 million revolving credit facility at the Rosenthal mill that matures in October 2016. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and bear interest at Euribor plus 3.50%. As at December 31, 2015, approximately €3.1 million ($3,324) of this facility was supporting bank guarantees leaving approximately €21.9 million ($23,823) available. | |||||||
[6] | A €5.0 million revolving credit facility at the Rosenthal mill that matures in December 2018. Borrowings under this facility bear interest at the rate of the three-month Euribor plus 2.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2015 approximately €1.3 million ($1,358) of this facility was supporting bank guarantees leaving approximately €3.7 million ($4,071) available. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Thousands, € in Millions, CAD in Millions | Feb. 01, 2016 | Nov. 26, 2014USD ($) | Dec. 31, 2015CAD | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014CAD | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||||
Debt | $ 638,043 | $ 673,671 | |||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, offering date | Nov. 26, 2014 | ||||||||
Debt, face amount | $ 650,000 | ||||||||
Issued price percentage of principal amount | 100.00% | 100.00% | 100.00% | ||||||
Debt | $ 635,949 | ||||||||
Debt Issuance Cost | $ 14,051 | ||||||||
Senior Note Redemption Notice Minimum Days | 30 | ||||||||
Senior Note Redemption Notice Maximum Days | 60 | ||||||||
Payment-in-kind note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | € | € 10 | ||||||||
Debt | [1] | $ 0 | 12,101 | ||||||
Debt Instrument Repurchase Date | Apr. 20, 2015 | ||||||||
Debt Instrument, Repurchase Amount | € 10 | 10,763 | |||||||
2019 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Dec. 1, 2019 | ||||||||
Debt, face amount | $ 250,000 | 250,000 | |||||||
Debt instrument interest rate | 7.00% | 7.00% | 7.00% | ||||||
Debt | [2] | $ 245,689 | 244,711 | ||||||
2022 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Dec. 1, 2022 | ||||||||
Debt, face amount | $ 400,000 | 400,000 | |||||||
Debt instrument interest rate | 7.75% | 7.75% | 7.75% | ||||||
Debt | [2] | $ 392,354 | 391,447 | ||||||
Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | May 1, 2019 | ||||||||
Debt | [3] | 0 | 0 | ||||||
Maximum borrowing capacity | CAD | CAD 40 | CAD 40 | |||||||
Letters of Credit Outstanding, Amount | 1.7 | 1,228 | |||||||
Remaining borrowing capacity | CAD 38.3 | 27,674 | |||||||
Stendal Credit Facility - EUR 75.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Oct. 1, 2019 | ||||||||
Debt | [4] | 0 | 25,412 | ||||||
Description of variable basis spread | Euribor | ||||||||
Varying basis spread | 3.50% | ||||||||
Maximum borrowing capacity | € | € 75 | € 75 | |||||||
Remaining borrowing capacity | 75 | 81,443 | |||||||
Rosenthal Credit Facility - EUR 25.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Oct. 1, 2016 | ||||||||
Debt | [5] | 0 | 0 | ||||||
Description of variable basis spread | Euribor | ||||||||
Varying basis spread | 3.50% | ||||||||
Debt Instrument, Amount Of Debt Supporting Bank Guarantees | 3.1 | 3,324 | |||||||
Maximum borrowing capacity | € | 25 | 25 | |||||||
Remaining borrowing capacity | 21.9 | 23,823 | |||||||
Rosenthal Credit Facility - EUR 25.0 Million [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Oct. 1, 2019 | ||||||||
Varying basis spread | 2.95% | ||||||||
Rosenthal Credit Facility - EUR 5.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, maturity date | Dec. 1, 2018 | ||||||||
Debt | [6] | 0 | $ 0 | ||||||
Description of variable basis spread | three-month Euribor | ||||||||
Varying basis spread | 2.50% | ||||||||
Debt Instrument, Amount Of Debt Supporting Bank Guarantees | 1.3 | 1,358 | |||||||
Maximum borrowing capacity | € | 5 | € 5 | |||||||
Remaining borrowing capacity | € 3.7 | $ 4,071 | |||||||
Canadian Dollar Borrowings Rate Option 1 [Member] | Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of variable basis spread | bankers acceptance | ||||||||
Varying basis spread | 1.50% | ||||||||
Canadian Dollar Borrowings Rate Option 2 [Member] | Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of variable basis spread | Canadian prime | ||||||||
US Dollar Borrowings Rate Option 1 [Member] | Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of variable basis spread | LIBOR | ||||||||
Varying basis spread | 1.50% | ||||||||
US Dollar Borrowings Rate Option 2 [Member] | Celgar Credit Facility - C$40.0 Million [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Description of variable basis spread | U.S. base | ||||||||
Twelve month period beginning Dec 1, 2016 [Member] | 2019 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 103.50% | ||||||||
Twelve month period beginning Dec 1, 2017 [Member] | 2019 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 101.75% | ||||||||
Twelve month period beginning Dec 1, 2017 [Member] | 2022 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 105.813% | ||||||||
Twelve month period beginning Dec 1, 2018 and thereafter [Member] | 2019 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 100.00% | ||||||||
Twelve month period beginning Dec 1, 2018 [Member] | 2022 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 103.875% | ||||||||
Twelve month period beginning Dec 1, 2019 [Member] | 2022 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 101.938% | ||||||||
Twelve month period beginning Dec 1, 2020 and thereafter [Member] | 2022 Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Redemption Price Percentage | 100.00% | ||||||||
[1] | A €10.0 million payment-in-kind note due to the former noncontrolling shareholder of the Stendal mill which the Company redeemed on April 20, 2015 for a cash payment of €10.0 million ($10,763). | ||||||||
[2] | On November 26, 2014, the Company issued $650,000 of senior notes consisting of $250,000 in aggregate principal amount of 7.00% senior notes which mature on December 1, 2019 ("2019 Senior Notes") and $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 ("2022 Senior Notes" and collectively with the 2019 Senior Notes, the "Senior Notes"). The Senior Notes were issued at a price of 100% of their principal amount. Upon their issuance the Senior Notes were recorded at $635,949 which included debt issuance costs of $14,051. These costs were proportionally allocated to the 2019 Senior Notes and the 2022 Senior Notes. The Senior Notes are general unsecured senior obligations of the Company. They rank equal in right of payment with all existing and future unsecured senior indebtedness of the Company and are 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 existing and future secured indebtedness, to the extent of the assets securing such indebtedness, and all indebtedness and liabilities of the Company's 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) discussed below, plus accrued and unpaid interest to (but not including) the applicable redemption date. The 2019 Senior Notes redemption prices are equal to 103.50% for the twelve month period beginning on December 1, 2016, 101.75% for the twelve month period beginning on December 1, 2017, and 100.00% beginning on December 1, 2018 and at any time thereafter. The 2022 Senior Notes redemption prices are equal to 105.813% for the twelve month period beginning on December 1, 2017, 103.875% for the twelve month period beginning on December 1, 2018, 101.938% for the twelve month period beginning on December 1, 2019, and 100.00% beginning on December 1, 2020 and at any time thereafter. | ||||||||
[3] | A C$40.0 million revolving credit facility at the Celgar mill that matures in May 2019. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and are restricted by a borrowing base calculated on the mill's inventory and accounts receivable. Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime. U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base. As at December 31, 2015, approximately C$1.7 million ($1,228) was supporting letters of credit and approximately C$38.3 million ($27,674) was available. | ||||||||
[4] | A €75.0 million revolving credit facility at the Stendal mill that matures in October 2019. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and bear interest at Euribor plus 3.50%. As at December 31, 2015, approximately €75.0 million ($81,443) was available. | ||||||||
[5] | A €25.0 million revolving credit facility at the Rosenthal mill that matures in October 2016. Borrowings under the facility are collateralized by the mill's inventory and accounts receivable and bear interest at Euribor plus 3.50%. As at December 31, 2015, approximately €3.1 million ($3,324) of this facility was supporting bank guarantees leaving approximately €21.9 million ($23,823) available. | ||||||||
[6] | A €5.0 million revolving credit facility at the Rosenthal mill that matures in December 2018. Borrowings under this facility bear interest at the rate of the three-month Euribor plus 2.50% and are secured by certain land at the Rosenthal mill. As at December 31, 2015 approximately €1.3 million ($1,358) of this facility was supporting bank guarantees leaving approximately €3.7 million ($4,071) available. |
Debt (Principal Maturities Of D
Debt (Principal Maturities Of Debt) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt [Abstract] | |
2,016 | $ 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 250,000 |
2,020 | 0 |
Thereafter | 400,000 |
Total debt | $ 650,000 |
Pension And Other Post-Retire52
Pension And Other Post-Retirement Benefit Obligations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans, Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 1,390 | $ 2,085 | $ 2,635 |
Celgar Defined Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contribution in the next fiscal year | 667 | ||
Amount included in other comprehensive income which is expected to be recognized in the next fiscal year | $ 781 | ||
Plan assets that are expected to be returned to the Company in the next fiscal year | no | ||
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% | ||
Celgar Defined Benefit Plans [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 60.00% | ||
Celgar Defined Benefit Plans [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 40.00% | ||
Defined Contribution Plan Jan 1, 2009 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | $ 646 | $ 759 | $ 773 |
Pension And Other Post-Retire53
Pension And Other Post-Retirement Benefit Obligations (Plan Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | $ 71,538 | $ 72,024 |
Service cost | 919 | 845 |
Interest cost | 2,411 | 3,080 |
Benefits payments | (2,932) | (3,396) |
Actuarial (gains) losses | (5,009) | 5,251 |
Foreign currency exchange rate changes | (11,223) | (6,266) |
Benefit obligation, ending balance | 55,704 | 71,538 |
Fair value of plan assets, beginning balance | 35,653 | 35,372 |
Actual returns | 107 | 3,829 |
Contributions | 2,349 | 2,951 |
Foreign currency exchange rate changes | (5,731) | (3,103) |
Fair value of plan assets, ending balance | 29,446 | 35,653 |
Funded status | (26,258) | (35,885) |
Expected return on plan assets | (2,054) | (2,225) |
Amortization of unrecognized items | 886 | 775 |
Net periodic benefit costs | 2,162 | 2,475 |
Pension liabilities | 26,345 | 36,014 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 43,073 | 43,566 |
Service cost | 121 | 121 |
Interest cost | 1,427 | 1,836 |
Benefits payments | (2,345) | (2,571) |
Actuarial (gains) losses | (1,021) | 3,901 |
Foreign currency exchange rate changes | (6,829) | (3,780) |
Benefit obligation, ending balance | 34,426 | 43,073 |
Fair value of plan assets, beginning balance | 35,653 | 35,372 |
Actual returns | 107 | 3,829 |
Contributions | 1,762 | 2,126 |
Foreign currency exchange rate changes | (5,731) | (3,103) |
Fair value of plan assets, ending balance | 29,446 | 35,653 |
Funded status | (4,980) | (7,420) |
Expected return on plan assets | (2,054) | (2,225) |
Amortization of unrecognized items | 878 | 787 |
Net periodic benefit costs | 372 | 519 |
Post-Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 28,465 | 28,458 |
Service cost | 798 | 724 |
Interest cost | 984 | 1,244 |
Benefits payments | (587) | (825) |
Actuarial (gains) losses | (3,988) | 1,350 |
Foreign currency exchange rate changes | (4,394) | (2,486) |
Benefit obligation, ending balance | 21,278 | 28,465 |
Fair value of plan assets, beginning balance | 0 | 0 |
Actual returns | 0 | 0 |
Contributions | 587 | 825 |
Foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets, ending balance | 0 | 0 |
Funded status | (21,278) | (28,465) |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized items | 8 | (12) |
Net periodic benefit costs | 1,790 | 1,956 |
Rosenthal [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension liabilities | $ 87 | $ 129 |
Pension and Other Post-Retire54
Pension and Other Post-Retirement Benefit Obligations (Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Benefits [Member] | |
Pension and Other Post-Retirement Benefit Obligations [Line Items] | |
2,016 | $ 2,223 |
2,017 | 2,220 |
2,018 | 2,224 |
2,019 | 2,232 |
2,020 | 2,228 |
2021 - 2025 | 10,957 |
Post-Retirement Benefits [Member] | |
Pension and Other Post-Retirement Benefit Obligations [Line Items] | |
2,016 | 707 |
2,017 | 749 |
2,018 | 795 |
2,019 | 840 |
2,020 | 884 |
2021 - 2025 | $ 5,106 |
Pension and Other Post-Retire55
Pension and Other Post-Retirement Benefit Obligations (Summary Of Key Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | |||
Benefit obligations, discount rate | 4.00% | 3.75% | 4.50% |
Benefit obligations, rate of compensation increase | 2.50% | 2.50% | 2.75% |
Net benefit cost, discount rate | 3.75% | 4.50% | 4.00% |
Net benefit cost, rate of compensation increase | 2.50% | 2.75% | 2.75% |
Net benefit cost, expected rate of return on plan assets | 6.40% | 6.60% | 6.60% |
Pension and Other Post-Retire56
Pension and Other Post-Retirement Benefit Obligations (Assumed Health Care Cost Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 6.50% | 7.00% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,020 | 2,020 |
Pension And Other Post-Retire57
Pension And Other Post-Retirement Benefit Obligations (A One Percentage Point Change in Assumed Health Cost Trend Effect) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension And Other Post-Retirement Benefit Obligations [Abstract] | ||
Effect on total service and interest rate components, 1% increase | $ 36 | $ 54 |
Effect on total service and interest rate components, 1% decrease | (39) | (56) |
Effect on post-retirement benefit obligation, 1% increase | 613 | 830 |
Effect on post-retirement benefit obligation, 1% decrease | $ (598) | $ (806) |
Pension And Other Post-Retire58
Pension And Other Post-Retirement Benefit Obligations (Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 29,446 | $ 35,653 | $ 35,372 |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 17,772 | ||
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 11,602 | ||
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 72 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 29,446 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 17,772 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | 11,602 | ||
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value measurements | $ 72 |
Pension and Other Post-Retire59
Pension and Other Post-Retirement Benefit Obligations (Multiemployer Plan Details) (Details) - The Pulp and Paper Industry Pension Plan [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Provincially registered plan number | P085324 | ||
Expiration date of collective bargaining agreement | Apr. 30, 2017 | ||
Are the Company's contributions greater than 5% of total contributions | true | true | true |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Liability for Uncertain Tax Positions, Current | $ 0 | $ 0 | |
Recognized interest and penalties related to unrecognized tax benefit | 0 | $ 0 | $ 0 |
Undistributed Earnings of Foreign Subsidiaries | $ 299,100 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Taxes By Taxing Jurisdiction) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, U.S. | $ (27,788) | $ (55,089) | $ (31,032) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 132,739 | 159,281 | 14,460 |
Income before income taxes | $ 104,951 | $ 104,192 | $ (16,572) |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [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 | $ (36,972) | $ (36,467) | $ 5,797 |
Tax differential on foreign income | 9,330 | 11,295 | 736 |
Effect of foreign earnings | (5,290) | (9,998) | (945) |
Valuation Allowance | (2,765) | 52,906 | (17,040) |
Tax benefit of partnership structure | 5,217 | 5,987 | 5,942 |
Non-taxable foreign subsidies | 2,281 | 1,263 | 1,696 |
True-up of prior year taxes | 5,073 | 0 | (5,749) |
Foreign exchange on valuation allowance | (5,005) | (7,146) | 254 |
Other | (1,318) | (1,066) | 113 |
Total income tax benefit (provision) | (29,449) | 16,774 | (9,196) |
Income tax benefit (provision) - current | (11,934) | (5,242) | 2,286 |
Income tax benefit (provision) - deferred | $ (17,515) | $ 22,016 | $ (11,482) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Abstract] | |||
German tax loss carryforwards | $ 75,668 | $ 99,948 | |
U.S. tax loss carryforwards and credits | 65,957 | 54,892 | |
Canadian tax loss carryfowards | 217 | 1,661 | |
Basis difference between income tax and financial reporting with respect to operating pulp mills | (58,047) | (61,205) | |
Derivative financial instruments | 1,862 | 5,043 | |
Deferred tax liability, long term debt | (6,253) | (3,889) | |
Payable and accrued expenses | 7,328 | 6,304 | |
Deferred pension liability | 6,911 | 9,413 | |
Capital leases | 1,146 | 2,450 | |
Research and development expense pool | 3,539 | 4,193 | |
Other | 2,282 | 3,183 | |
Total gross deferred tax asset | 100,610 | 121,993 | |
Valuation allowance | (90,627) | (87,862) | $ (140,768) |
Net deferred tax asset | 9,983 | 34,131 | |
Deferred income tax asset | 23,154 | 56,287 | |
Deferred income tax liability | $ (13,171) | $ (22,156) |
Income Taxes (Tax Carryforwards
Income Taxes (Tax Carryforwards) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Germany | |
Income Taxes Disclosures [Line Items] | |
Operating loss carryforwards | $ 261,800 |
Interest carryforwards | $ 127,300 |
Tax Loss Carryforwards, Expiration Year | Indefinite |
Other Tax Carryforward, Expiration Year | Indefinite |
United States | |
Income Taxes Disclosures [Line Items] | |
Operating loss carryforwards | $ 181,300 |
Tax credits carryforwards | $ 2,500 |
Tax Loss Carryforwards, Expiration Year | 2018 – 2035 |
Tax Credits Carryforward, Expiration Year | 2020 – 2025 |
Canada | |
Income Taxes Disclosures [Line Items] | |
Operating loss carryforwards | $ 800 |
Scientific research and experimental development tax credits carryforwards | $ 3,500 |
Tax Loss Carryforwards, Expiration Year | 2015 – 2035 |
Tax Credits Carryforward, Expiration Year | 2030 – 2033 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | ||
Valuation allowance, beginning of period | $ 87,862 | $ 140,768 |
Valuation Allowance - United States | 11,571 | 9,433 |
Valuation Allowance - Canada | (3,801) | (3,660) |
Valuation Allowance - Germany | 0 | (51,533) |
Valuation Allowance - Change Due To Foreign Exchange | (5,005) | (7,146) |
Valuation allowance, end of period | $ 90,627 | $ 87,862 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Public Offering Issuance Date | Apr. 2, 2014 | |||
Shares issued through public share offering (in shares) | 8,050,000 | |||
Shares Issued Price Per Share | $ 7.15 | |||
Proceeds from issuance of shares | $ 0 | $ 53,859 | $ 0 | |
Date Of Investment In Subsidiary | Sep. 1, 2014 | |||
Investment In Subsidiary | $ 20,000 | |||
Preferred shares, authorized | 50,000,000 | 50,000,000 | ||
Preferred shares, par value | $ 1 | $ 1 | ||
Preferred shares, issued | 0 | |||
Common shares available for grant | 2,049,000 | |||
Series A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred shares, authorized | 2,000,000 | |||
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 471,488 | |||
Shares outstanding | 1,255,919 | 969,544 | ||
Vesting period | 3 years | |||
Expense recognized | $ 1,819 | $ 1,023 | $ 2,882 | |
Weighted-average grant date fair value of awards granted | $ 12.95 | $ 9.50 | $ 7.30 | |
Fair value of vested and issued shares or units | $ 2,031 | $ 3,046 | $ 0 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 38,000 | 200,000 | ||
Shares outstanding | 78,000 | 118,000 | ||
Vesting period | 1 year | |||
Expense recognized | $ 590 | $ 563 | $ 692 | |
Weighted-average grant date fair value of awards granted | $ 14.48 | $ 8.85 | $ 7 | |
Fair value of vested and issued shares or units | $ 1,096 | $ 670 | $ 532 | |
Unrecognized compensation cost | 244 | |||
Restricted Shares, 2011 Grant To Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
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 exercised | 30,000 | |||
Stock options expired | 0 | |||
Stock options cancelled | 25,000 | |||
Stock options outstanding | 0 | |||
Proceeds from Stock Options Exercised | $ 219 | |||
Instrinsic Value of Option Paid In Cash During Period | $ 154 | |||
Restricted Stock Rights [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 0 | |||
Shares outstanding | 0 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 0 | |||
Shares outstanding | 0 | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 0 | |||
Shares outstanding | 0 |
Shareholders' Equity (Summary o
Shareholders' Equity (Summary of Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends Payable [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.230 | $ 0 | $ 0 | |
Dividends declared | $ 14,836 | |||
Dividends Payable, Current | $ 7,418 | $ 0 | ||
Dividend Declared [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends Payable, Date Declared | Oct. 29, 2015 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.115 | |||
Dividends Payable, Current | $ 7,418 | |||
Dividend Declared [Member] | Subsequent Event [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends Payable, Date Declared | Feb. 1, 2016 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.115 | |||
Dividends Payable, Date of Record | Mar. 28, 2016 | |||
Dividends Payable, Date to be Paid | Apr. 5, 2016 | |||
Dividend Paid [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends Payable, Date Declared | Jul. 30, 2015 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.115 | |||
Payments of Dividends | $ 7,418 |
Shareholders' Equity (Summary68
Shareholders' Equity (Summary Of Share Activity - PSU's) (Details) - Performance Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding - Beginning | 969,544 | ||
Granted | 471,488 | ||
Vested and issued | (160,608) | ||
Forfeited | (24,505) | ||
Outstanding - Ending | 1,255,919 | 969,544 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 10.64 | ||
Granted | 12.95 | $ 9.50 | $ 7.30 |
Vested and issued | 12.96 | ||
Forfeited | 10.54 | ||
Outstanding - Ending | $ 11.21 | $ 10.64 |
Shareholders' Equity (Summary69
Shareholders' Equity (Summary Of Share Activity - Restricted Shares) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding - Beginning | 118,000 | |||
Granted | 38,000 | 200,000 | ||
Vested | (78,000) | |||
Outstanding - Ending | 78,000 | 118,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding - Beginning | $ 11.58 | |||
Granted | 14.48 | $ 8.85 | $ 7 | |
Vested and issued | 10.91 | |||
Outstanding - Ending | $ 13.65 | $ 11.58 |
Net Income (Loss) Per Share A70
Net Income (Loss) Per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | |||
Net income (loss) attributable to common shareholders - basic and diluted | $ 75,502 | $ 113,154 | $ (26,375) |
Net income (loss) per share attributable to common shareholders, Basic | $ 1.17 | $ 1.82 | $ (0.47) |
Net income (loss) per share attributable to common shareholders, Diluted | $ 1.17 | $ 1.81 | $ (0.47) |
Weighted Average Number of Shares Outstanding, Basic | 64,380,565 | 62,012,947 | 55,673,838 |
Weighted Average Number of Shares Outstanding, Diluted | 64,776,792 | 62,514,870 | 55,673,838 |
Performance Share Units [Member] | |||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | |||
Effect of dilutive instruments | 335,922 | 406,922 | 0 |
Restricted Stock [Member] | |||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | |||
Effect of dilutive instruments | 56,453 | 79,889 | 0 |
Contingently issuable shares excluded from the basic weighted average shares outstanding | 78,000 | 118,000 | 158,000 |
Stock Options [Member] | |||
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items] | |||
Effect of dilutive instruments | 3,852 | 15,112 | 0 |
Net Income (Loss) Per Share A71
Net Income (Loss) Per Share Attributable to Common Shareholders (Anti-dilutive Instruments) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Share Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from EPS computation | 0 | 0 | 791,432 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from EPS computation | 0 | 0 | 158,000 |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from EPS computation | 0 | 0 | 75,000 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Foreign currency translation adjustments | $ (156,223) | $ (33,268) |
Unrecognized losses and prior service costs related to defined benefit plans | (15,338) | (19,287) |
Unrealized gains (losses) on marketable securities | (13) | 114 |
Accumulated other comprehensive loss | $ (171,574) | $ (52,441) |
Noncontrolling Interest (Defici
Noncontrolling Interest (Deficit) (Details) € in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Noncontrolling Interest [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | € 350 | $ 444 | |
Business Combination, Acquisition Related Costs | $ 200 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Date | Sep. 1, 2014 | Sep. 1, 2014 | |
Parent [Member] | |||
Noncontrolling Interest [Line Items] | |||
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | $ 4,770 | $ 10,118 | |
Additional Paid-in Capital [Member] | |||
Noncontrolling Interest [Line Items] | |||
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | (18,985) | 10,118 | |
Retained Earnings (Deficit) [Member] | |||
Noncontrolling Interest [Line Items] | |||
Loss on acquisition of a portion of the noncontrolling interest in a subsidiary | 23,755 | ||
Noncontrolling interest decrease from purchase of interest | 0 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest decrease from purchase of interest | 0 | 0 | |
Noncontrolling Interest (Deficit) [Member] | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest decrease from purchase of interest | $ (2,949) | $ 9,974 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015segmentcustomer | Dec. 31, 2014customer | Dec. 31, 2013customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | 3 | ||
Number of reportable segments | 1 | ||
Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of customers accounting for 10% or more of pulp sales | customer | 1 | 1 | 2 |
Customer 1 [Member] | Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue major customer percentage | 16.00% | 13.00% | 10.00% |
Customer 2 [Member] | Sales Revenue, Net [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue major customer percentage | 11.00% |
Business Segment Information (S
Business Segment Information (Schedule Of Net Sales To External Customers By Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 1,033,204 | $ 1,175,112 | $ 1,088,385 |
Pulp revenues | 946,237 | 1,073,632 | 996,187 |
Energy and chemicals | 86,967 | 101,480 | 92,198 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 266,632 | 276,848 | 300,827 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 344,843 | 346,879 | 321,711 |
Energy and chemicals | 75,776 | 91,375 | 79,948 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Energy and chemicals | 11,191 | 10,105 | 12,250 |
Other European Union Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 210,218 | 250,952 | 224,988 |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 15,453 | 39,146 | 30,404 |
Italy | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 53,919 | 80,730 | 65,654 |
Other Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | 43,981 | 69,711 | 49,855 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Pulp revenues | $ 11,191 | $ 9,366 | $ 2,748 |
Business Segment Information 76
Business Segment Information (Schedule Of Long Lived Assets By Geographic Area) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 762,391 | $ 883,150 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 623,932 | 711,368 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 138,459 | $ 171,782 |
Derivative Transactions (Narrat
Derivative Transactions (Narrative) (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Derivative [Line Items] | ||||||
Interest rate derivative liability, total | € 15,600 | $ 16,913 | $ 32,794 | |||
Interest rate derivative liability, noncurrent | 6,000 | 6,533 | 17,962 | |||
Interest rate derivative liability, current | 9,600 | 10,380 | 14,832 | |||
Restricted cash, at carrying value | 8,500 | 9,230 | 10,286 | |||
Cash and cash equivalents, at carrying value | $ | 99,629 | 53,172 | $ 147,728 | $ 137,439 | ||
Restricted cash, at carrying value | 8,500 | 9,230 | 10,286 | |||
Accounts receivables, at carrying value | $ | $ 134,254 | $ 141,088 | ||||
Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Aggregate maximum principal amount of the Stendal loan facility covered by interest rate swaps | 612,600 | |||||
Aggregate notional amount of interest rate swap | € 192,400 | |||||
Derivative fixed interest rate | 5.28% | 5.28% | ||||
Derivative maturity date | Oct. 1, 2017 | |||||
Percentage Of Fair Value Of Interest Rate Swap Collaterized | 67.00% | 67.00% | ||||
Maximum Amount Of Collateral For Interest Rate Swap | € 8,500 | |||||
Stendal Credit Facility - EUR 75.0 Million [Member] | ||||||
Derivative [Line Items] | ||||||
Maximum borrowing capacity | € 75,000 | € 75,000 |
Derivative Transactions (Schedu
Derivative Transactions (Schedule of Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Transactions [Abstract] | |||
Gain (loss) on interest rate derivative contract | $ (935) | $ 11,501 | $ 22,476 |
Gain (loss) on pulp price derivative contracts | 0 | 0 | (2,767) |
Gain (loss) on derivative instruments total | $ (935) | $ 11,501 | $ 19,709 |
Fair Value Measurement and Di79
Fair Value Measurement and Disclosure (Outstanding Financial Instruments and Estimated Fair Value) (Details) $ in Thousands, € in Millions | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate derivative, Fair Value | € 15.6 | $ 16,913 | $ 32,794 |
Liabilities Fair Value Disclosure | 671,538 | 727,807 | |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate derivative, Fair Value | 0 | 0 | |
Liabilities Fair Value Disclosure | 0 | 0 | |
Fair Value, Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate derivative, Fair Value | 16,913 | 32,794 | |
Liabilities Fair Value Disclosure | 671,538 | 715,706 | |
Fair Value, Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate derivative, Fair Value | 0 | 0 | |
Liabilities Fair Value Disclosure | 0 | 12,101 | |
Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 654,625 | 657,500 | |
Senior Notes [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 0 | 0 | |
Senior Notes [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 654,625 | 657,500 | |
Senior Notes [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | $ 0 | 0 | |
Revolving credit facilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 25,412 | ||
Revolving credit facilities [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 0 | ||
Revolving credit facilities [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 25,412 | ||
Revolving credit facilities [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 0 | ||
Payment-in-kind note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 12,101 | ||
Payment-in-kind note [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 0 | ||
Payment-in-kind note [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | 0 | ||
Payment-in-kind note [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Fair Value | $ 12,101 |
Lease Commitments (Details)
Lease Commitments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Lease Commitments [Abstract] | |
Capital lease, 2016 | $ 2,532 |
Capital lease, 2017 | 1,957 |
Capital lease, 2018 | 1,327 |
Capital lease, 2019 | 2,344 |
Capital lease, 2020 | 240 |
Capital lease, Thereafter | 244 |
Capital Leases, Total | 8,644 |
Less: imputed interest | 344 |
Total present value of minimum capitalized payments | 8,300 |
Less: current portion of capital lease obligations | 2,433 |
Long-term capital lease obligations | 5,867 |
Operating leases, 2016 | 1,380 |
Operating leases, 2017 | 1,266 |
Operating leases, 2018 | 1,261 |
Operating leases, 2019 | 772 |
Operating leases, 2020 | 0 |
Operating leases, Thereafter | 0 |
Operating leases, Total | $ 4,679 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Lease Commitments [Abstract] | |||
Rent expense | $ 2,271 | $ 2,978 | $ 3,497 |
Rail cars minimum lease obligation | $ 12,656 | ||
Rail cars minimum lease term | 12 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - 12 months ended Dec. 31, 2015 $ in Thousands, € in Millions | EUR (€) | USD ($) |
Commitments And Contingencies [Abstract] | ||
German government grants under review | € 8.3 | $ 9,013 |