Mercer International (MERC) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 27, 2016
Document and Entity Information
Entity Registrant Name	MERCER INTERNATIONAL INC.
Entity Central Index Key	1,333,274
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Trading Symbol	merc
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		64,694,138

INTERIM CONSOLIDATED STATEMENTS

INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Pulp	$ 198,055	$ 246,126	$ 428,684	$ 480,783
Energy and chemicals	20,090	20,810	43,304	43,700
Total revenues	218,145	266,936	471,988	524,483
Costs and expenses
Operating costs, excluding depreciation and amortization	173,227	205,293	370,169	390,241
Operating depreciation and amortization	17,855	16,393	34,887	33,697
Selling, general and administrative expenses	10,286	11,701	22,055	23,065
Operating income	16,777	33,549	44,877	77,480
Other income (expenses)
Interest expense	(12,736)	(13,476)	(25,927)	(27,360)
Foreign exchange gain (loss) on intercompany debt	(272)	2,198	283	(4,412)
Other income (expenses)	(137)	68	(633)	(470)
Total other expenses	(13,145)	(11,210)	(26,277)	(32,242)
Income before provision for income taxes	3,632	22,339	18,600	45,238
Current income tax provision (Note 6)	(3,372)	(3,149)	(5,125)	(6,501)
Deferred income tax provision (Note 6)	(4,501)	(2,778)	(8,947)	(8,691)
Net income (loss)	$ (4,241)	$ 16,412	$ 4,528	$ 30,046
Net income (loss) per common share (Note 8)
Net income (loss) per common share, basic	$ (0.07)	$ 0.25	$ 0.07	$ 0.47
Net income (loss) per common share, diluted	(0.07)	0.25	0.07	0.46
Cash dividends declared per common share (Note 7)	$ 0.115	$ 0	$ 0.23	$ 0

INTERIM CONSOLIDATED STATEMENT3

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (4,241)	$ 16,412	$ 4,528	$ 30,046
Other comprehensive income (loss), net of taxes
Foreign currency translation adjustment (net of tax effect of $nil in all periods)	(26,981)	31,045	25,355	(80,760)
Change in unrecognized losses and prior service costs related to defined benefit plans (net of tax effect of $nil in all periods)	289	211	579	459
Change in unrealized gains/losses on marketable securities (net of tax effect of $nil in all periods)	4	(7)	2	(78)
Other comprehensive income (loss), net of taxes	(26,688)	31,249	25,936	(80,379)
Comprehensive income (loss)	$ (30,929)	$ 47,661	$ 30,464	$ (50,333)

INTERIM CONSOLIDATED STATEMENT4

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax effect	$ 0	$ 0	$ 0	$ 0
Changes in unrecognized losses and prior service costs related to defined benefit plans, tax effect	0	0	0	0
Change in unrealized gains/losses on marketable securities, tax effect	$ 0	$ 0	$ 0	$ 0

INTERIM CONSOLIDATED BALANCE SH

INTERIM CONSOLIDATED BALANCE SHEETS $ in Thousands, € in Millions	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Current assets
Cash and cash equivalents	$ 112,651	$ 99,629
Restricted cash (Note 10)	7,834	9,230
Accounts receivable	125,384	134,254
Inventories (Note 2)	134,847	141,001
Prepaid expenses and other	5,048	4,697
Total current assets	385,764	388,811
Property, plant and equipment, net	767,014	762,391
Intangible and other assets	8,603	8,461
Deferred income tax	18,888	23,154
Total assets	1,180,269	1,182,817
Current liabilities
Accounts payable and other (Note 3)	103,495	103,450
Pension and other post-retirement benefit obligations (Note 5)	1,033	971
Total current liabilities	104,528	104,421
Debt (Note 4)	616,492	638,043
Interest rate derivative liability (Note 10)	2,898	6,533
Pension and other post-retirement benefit obligations (Note 5)	26,562	25,374
Capital leases and other	11,981	12,299
Deferred income tax	17,588	13,171
Total liabilities	780,049	799,841
Shareholders’ equity
Common shares $1 par value; 200,000,000 authorized; 64,694,000 issued and outstanding (2015 – 64,502,000)	64,656	64,424
Additional paid-in capital	330,669	329,246
Retained earnings (Note 7)	150,533	160,880
Accumulated other comprehensive loss (Note 9)	(145,638)	(171,574)
Total shareholders’ equity	400,220	382,976
Total liabilities and shareholders’ equity	1,180,269	1,182,817
Commitments and contingencies (Note 12)

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common Stock, Shares Authorized (in shares)	200,000,000	200,000,000
Common Stock, Shares, Issued (in shares)	64,694,000	64,502,000
Common Stock, Shares, Outstanding (in shares)	64,694,000	64,502,000
Common Stock, Par or Stated Value Per Share (in usd per share)	$ 1	$ 1

INTERIM CONSOLIDATED STATEMENT7

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Cash flows from (used in) operating activities
Net income (loss)	$ (4,241)	$ 16,412	$ 4,528	$ 30,046
Adjustments to reconcile net income (loss) to cash flows from operating activities
Depreciation and amortization	17,962	16,483	35,181	33,870
Deferred income taxes	4,501	2,778	8,947	8,691
Foreign exchange (gain) loss on intercompany debt	272	(2,198)	(283)	4,412
Defined benefit pension plan and other post-retirement benefit plan expense	398	385	874	1,094
Stock compensation expense	764	728	1,655	1,358
Other	33	288	1,259	1,268
Defined benefit pension plan and other post-retirement benefit plan contributions	(458)	(438)	(884)	(913)
Changes in working capital
Accounts receivable	8,548	(13,061)	12,501	(22,682)
Inventories	(3,648)	(727)	10,988	(5,648)
Accounts payable and accrued expenses	(13,313)	(9,702)	(103)	18,071
Other	459	(514)	80	712
Net cash from (used in) operating activities	11,277	10,434	74,743	70,279
Cash flows from (used in) investing activities
Purchase of property, plant and equipment	(13,479)	(11,707)	(20,415)	(18,771)
Purchase of intangible assets	(416)	(1,017)	(936)	(1,890)
Decrease in restricted cash	1,595	0	1,595	0
Other	849	75	747	297
Net cash from (used in) investing activities	(11,451)	(12,649)	(19,009)	(20,364)
Cash flows from (used in) financing activities
Repurchase of notes and repayment of debt	0	(10,763)	(23,079)	(10,763)
Dividend payments	(7,435)	0	(14,853)	0
Proceeds from (repayment of) revolving credit facilities, net	0	8,570	0	9,523
Payments of interest rate derivative liability	(5,852)	(7,015)	(5,852)	(7,015)
Other	(517)	(403)	(1,003)	(621)
Net cash from (used in) financing activities	(13,804)	(9,611)	(44,787)	(8,876)
Effect of exchange rate changes on cash and cash equivalents	(3,240)	2,850	2,075	(3,344)
Net increase (decrease) in cash and cash equivalents	(17,218)	(8,976)	13,022	37,695
Cash and cash equivalents, beginning of period	129,869	99,843	99,629	53,172
Cash and cash equivalents, end of period	112,651	90,867	112,651	90,867
Supplemental cash flow disclosure
Cash paid for interest	24,036	25,779	24,635	25,905
Cash paid for income taxes	$ 4,681	$ 402	$ 9,311	$ 815

The Company And Summary Of Sign

The Company And Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
The Company And Summary Of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation The interim consolidated financial statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). The Company’s shares of common stock are quoted and listed for trading on both the NASDAQ Global Market and the Toronto Stock Exchange. The interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The year-end Consolidated Balance Sheet data was derived from audited financial statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The interim consolidated financial statements should be read together with the audited consolidated financial statements and accompanying notes included in the Company’s latest annual report on Form 10‑K for the fiscal year ended December 31, 2015. In the opinion of the Company, the unaudited interim consolidated financial statements contained herein contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. The Company has three pulp mills that are aggregated into one reportable business segment, market pulp. Accordingly, the results presented are those of the reportable business segment. In these interim consolidated financial statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol “€” refers to euros and the symbol "C$" refers to Canadian dollars. Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-9, Revenue Recognition – Revenue from Contracts with Customers (“ASU 2014-9”) 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 2014-9 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. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-2, Leases (“ASU 2016-2”) which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and liability. This update is effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact the adoption of ASU 2016-2 will have on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-9, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”) which simplifies several aspects of accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures. This update is effective for financial statements issued for fiscal years beginning after December 15, 2016. The Company is currently assessing the impact, if any, the adoption of ASU 2016-9 will have on its consolidated financial statements.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventory, Net [Abstract]
Inventories	Inventories June 30, December 31, 2016 2015 Raw materials $ 50,796 $ 57,592 Finished goods 33,859 36,829 Spare parts and other 50,192 46,580 $ 134,847 $ 141,001

Accounts Payable and Other

Accounts Payable and Other	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Accounts Payable and Other	Accounts Payable and Other June 30, December 31, 2016 2015 Trade payables $ 26,293 $ 20,637 Accrued expenses 51,321 55,648 Accrued interest payable 4,040 4,050 Interest rate derivative liability, current portion (Note 10) 8,882 10,380 Dividend payable (Note 7) 7,440 7,418 Other 5,519 5,317 $ 103,495 $ 103,450

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt	Debt June 30, December 31, 2016 2015 2019 Senior Notes, unsecured, $227,000 face value (a) $ 223,586 $ 245,689 2022 Senior Notes, unsecured, $400,000 face value (a) 392,906 392,354 Revolving credit facilities €75.0 million (b) — — C$40.0 million (c) — — €25.0 million (d) — — €5.0 million (e) — — $ 616,492 $ 638,043 As at June 30, 2016 , the maturities of the principal portion of debt are as follows: 2016 $ — 2017 — 2018 — 2019 227,000 2020 — Thereafter 400,000 $ 627,000 Note 4. Debt (continued) 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 June 30, 2016 , the Company is in compliance with the terms of its debt agreements. (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. In March 2016 , the Company purchased $23,000 in aggregate principal amount of its 2019 Senior Notes. In connection with this purchase the Company recorded a loss on extinguishment of debt of $454 in other income (expenses) in the Interim Consolidated Statement of Operations which included the write-off of unamortized debt issuance costs. (b) 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 June 30, 2016 , approximately €75.0 million ( $82,755 ) was available. (c) 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 June 30, 2016 , approximately C$1.7 million ( $1,308 ) was supporting letters of credit and approximately C$38.3 million ( $29,440 ) was available. (d) A €25.0 million revolving credit facility at the Rosenthal 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 2.95% . As at June 30, 2016 , approximately €3.1 million ( $3,378 ) of this facility was supporting bank guarantees leaving approximately €21.9 million ( $24,207 ) available. (e) 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 June 30, 2016 , approximately €3.8 million ( $4,174 ) of this facility was supporting bank guarantees leaving approximately €1.2 million ( $1,343 ) available.

Pension and Other Post-Retireme

Pension and Other Post-Retirement Benefit Obligations	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Pension and Other Post-Retirement Benefit Obligations	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 mills. The largest component of these obligations 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 statutory requirements. The components of the net periodic benefit costs relating to the Celgar Defined Benefit Plans for the three and six month periods ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 2015 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 23 $ 124 $ 32 $ 208 Interest cost 236 220 276 172 Expected return on plan assets (494 ) — (534 ) — Amortization of unrecognized items 333 (44 ) 229 2 Net periodic benefit cost $ 98 $ 300 $ 3 $ 382 Six Months Ended June 30, 2016 2015 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 45 $ 241 $ 63 $ 413 Interest cost 497 471 724 498 Expected return on plan assets (959 ) — (1,063 ) — Amortization of unrecognized items 667 (88 ) 455 4 Net periodic benefit cost $ 250 $ 624 $ 179 $ 915 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 three and six month periods ended June 30, 2016 , the Company made contributions of $146 and $309 , respectively ( 2015 – $179 and $348 ), to this plan. Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. Contributions during the three and six month periods ended June 30, 2016 totaled $407 and $783 , respectively ( 2015 – $399 and $850 ).

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax provision attributable to income before provision for income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the three and six month periods ended June 30, 2016 and 2015 as a result of the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 U.S. Federal statutory rate 35 % 35 % 35 % 35 % U.S. Federal statutory rate on income before income taxes $ (1,271 ) $ (7,819 ) $ (6,510 ) $ (15,833 ) Tax differential on foreign income 149 1,899 1,634 3,925 Effect of foreign earnings — (5,290 ) (3,500 ) (5,290 ) Valuation allowance (9,942 ) (1,440 ) (9,742 ) (6,401 ) Tax benefit of partnership structure 1,364 1,303 2,563 2,592 Non-taxable foreign subsidies 545 566 1,118 1,145 True-up of prior year taxes 558 4,610 (60 ) 4,603 Other 724 244 425 67 $ (7,873 ) $ (5,927 ) $ (14,072 ) $ (15,192 ) Comprised of: Current $ (3,372 ) $ (3,149 ) $ (5,125 ) $ (6,501 ) Deferred (4,501 ) (2,778 ) (8,947 ) (8,691 ) $ (7,873 ) $ (5,927 ) $ (14,072 ) $ (15,192 ) For the three and six month periods ended June 30, 2016 , the Company recorded an increase in its valuation allowance of $ 9,942 and $9,742 respectively ( 2015 – $1,440 and $6,401 ), related to its U.S. and Canadian entities where a full valuation allowance was recognized against net deferred income tax assets.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Dividends During the six month period ended June 30, 2016 , the Company's Board of Directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 11, 2016 $ 0.115 $ 7,435 April 28, 2016 $ 0.115 $ 7,440 $ 0.230 $ 14,875 Dividends are paid in the quarter subsequent to the quarter in which they were declared. In July 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 October 4, 2016 to all shareholders of record on September 26, 2016 . Future dividends are subject to approval by the Board of Directors and may be adjusted as business and industry conditions warrant. Note 7. Shareholders’ Equity (continued) Stock Based Compensation In June 2010, the Company adopted 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 six months ended June 30, 2016 , there were no issued and outstanding stock options, restricted stock rights, performance shares or stock appreciation rights. As at June 30, 2016 , after factoring in all allocated shares, there remain approximately 1,013,112 common shares 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 three and six month periods ended June 30, 2016 , the Company recognized an expense of $649 and $1,386 , respectively, related to PSUs ( 2015 – $596 and $1,097 ). The following table summarizes PSU activity during the period: Number of PSUs Outstanding at January 1, 2016 1,255,919 Granted 997,863 Vested and issued (154,242 ) Outstanding at June 30, 2016 2,099,540 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 vested in equal amounts over a five -year period commencing in 2012. For the three and six month periods ended June 30, 2016 , the Company recognized an expense of $115 and $269 , respectively, related to restricted shares ( 2015 – $132 and $261 ). As at June 30, 2016 , the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $333 which will be amortized over the remaining vesting periods. The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding at January 1, 2016 78,000 Granted 38,000 Vested and issued (78,000 ) Outstanding at June 30, 2016 38,000 Retained Earnings The following table summarizes the changes in retained earnings during the period: 2016 Retained earnings, January 1, 2016 $ 160,880 Net income 4,528 Cash dividends declared ($0.23 per common share) (14,875 ) Retained earnings, June 30, 2016 $ 150,533

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income (Loss) Per Common Share Three Months Ended Six Months Ended 2016 2015 2016 2015 Net income (loss) Basic and diluted $ (4,241 ) $ 16,412 $ 4,528 $ 30,046 Net income (loss) per common share Basic $ (0.07 ) $ 0.25 $ 0.07 $ 0.47 Diluted $ (0.07 ) $ 0.25 $ 0.07 $ 0.46 Weighted average number of common shares outstanding: Basic (1) 64,628,160 64,395,918 64,606,572 64,336,515 Effect of dilutive shares: PSUs — 329,943 348,339 335,729 Restricted shares — 55,111 28,862 71,736 Diluted 64,628,160 64,780,972 64,983,773 64,743,980 (1) For the three and six month periods ended June 30, 2016 , the basic weighted average number of common shares outstanding excludes 38,000 restricted shares which have been issued, but have not vested as at June 30, 2016 ( 2015 – 78,000 restricted shares). The calculation of diluted net income (loss) per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per common share. The following table summarizes the instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive: Three Months Ended Six Months Ended 2016 2015 2016 2015 PSUs 2,099,540 — — — Restricted shares 38,000 — — —

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Unrecognized Losses and Prior Service Costs Related to Defined Benefit Plan Unrealized Gains (Losses) on Marketable Securities Total Balance December 31, 2015 $ (156,223 ) $ (15,338 ) $ (13 ) $ (171,574 ) Other comprehensive income (loss) before reclassifications 25,355 — 2 25,357 Amounts reclassified from accumulated other comprehensive income (loss) — 579 — 579 Other comprehensive income (loss), net of taxes 25,355 579 2 25,936 Balance June 30, 2016 $ (130,868 ) $ (14,759 ) $ (11 ) $ (145,638 )

Derivative Transactions

Derivative Transactions	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Transactions	Note 10. 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 other income (expenses) in the Interim Consolidated Statement of Operations. Interest Rate Swaps 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 June 30, 2016 , the contract has a fair value of €10.7 million ( $11,780 ; 2015 – $16,913 ) of which €8.1 million ( $8,882 ; 2015 – $10,380 ) is classified as current within accounts payable and other and €2.6 million ( $2,898 ; 2015 – $6,533 ) is classified as a long-term liability in the Interim Consolidated Balance Sheet. The contract has an aggregate notional amount of €161.0 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 swaps 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 June 30, 2016 , the collateral was €7.1 million ( $7,834 ; 2015 – $9,230 ). This cash has been classified as restricted cash in the Interim Consolidated Balance Sheet. During the three and six month periods ended June 30, 2016 the Company recorded a loss on the interest rate swaps of $55 and $265 , respectively ( 2015 – gain of $167 and loss of $357 ), in other income (expenses) in the Interim Statement of Operations. The counterparty to the interest rate swaps is a bank that is a member of a banking syndicate that holds the Stendal €75.0 million revolving credit facility and the Company does not anticipate non-performance by the bank.

Fair Value Measurement and Disc

Fair Value Measurement and Disclosure	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement and Disclosure	Fair Value Measurement and Disclosure Due to their short-term maturity, the carrying amounts of cash and cash equivalents, restricted 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 uses 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 the Senior Notes debt classified as Level 2 is determined using quoted prices in a dealer market, or using recent market transactions. The following tables present a summary of the Company’s outstanding financial instruments and their estimated fair values under the fair value hierarchy: Fair value measurements as at June 30, 2016 using: Description Level 1 Level 2 Level 3 Total Interest rate derivative liability $ — $ 11,780 $ — $ 11,780 Senior Notes debt — 629,270 — 629,270 $ — $ 641,050 $ — $ 641,050 Note 11. Fair Value Measurement and Disclosure (continued) Fair value measurements as at December 31, 2015 using: Description Level 1 Level 2 Level 3 Total Interest rate derivative liability $ — $ 16,913 $ — $ 16,913 Senior Notes debt — 654,625 — 654,625 $ — $ 671,538 $ — $ 671,538

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) The Company is involved in legal actions and claims arising in the ordinary course of business. While the outcome of any legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claims which are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company. (b) 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 public authorities. In March 2016, the German public authorities closed its investigation of the past managers of the mill, with no action taken against them or 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 Si20

The Company And Summary Of Significant Accounting Policies (Policy)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Nature of Operations and Basis of Presentation The interim consolidated financial statements contained herein include the accounts of Mercer International Inc. ("Mercer Inc.") and all of its subsidiaries (collectively the "Company"). The Company’s shares of common stock are quoted and listed for trading on both the NASDAQ Global Market and the Toronto Stock Exchange. The interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). The year-end Consolidated Balance Sheet data was derived from audited financial statements. The footnote disclosure included herein has been prepared in accordance with accounting principles generally accepted for interim financial statements in the United States ("GAAP"). The interim consolidated financial statements should be read together with the audited consolidated financial statements and accompanying notes included in the Company’s latest annual report on Form 10‑K for the fiscal year ended December 31, 2015. In the opinion of the Company, the unaudited interim consolidated financial statements contained herein contain all adjustments necessary for a fair statement of the results of the interim periods included. The results for the periods included herein may not be indicative of the results for the entire year. The Company has three pulp mills that are aggregated into one reportable business segment, market pulp. Accordingly, the results presented are those of the reportable business segment. In these interim consolidated financial statements, unless otherwise indicated, all amounts are expressed in United States dollars ("U.S. dollars" or "$"). The symbol “€” refers to euros and the symbol "C$" refers to Canadian dollars.
Use of Estimates	Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-9, Revenue Recognition – Revenue from Contracts with Customers (“ASU 2014-9”) 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 2014-9 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. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-2, Leases (“ASU 2016-2”) which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and liability. This update is effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the impact the adoption of ASU 2016-2 will have on its consolidated financial statements. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-9, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-9”) which simplifies several aspects of accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures. This update is effective for financial statements issued for fiscal years beginning after December 15, 2016. The Company is currently assessing the impact, if any, the adoption of ASU 2016-9 will have on its consolidated financial statements.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory, Net [Abstract]
Components of Inventory	June 30, December 31, 2016 2015 Raw materials $ 50,796 $ 57,592 Finished goods 33,859 36,829 Spare parts and other 50,192 46,580 $ 134,847 $ 141,001

Accounts Payable and Other (Tab

Accounts Payable and Other (Tables)	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Other	June 30, December 31, 2016 2015 Trade payables $ 26,293 $ 20,637 Accrued expenses 51,321 55,648 Accrued interest payable 4,040 4,050 Interest rate derivative liability, current portion (Note 10) 8,882 10,380 Dividend payable (Note 7) 7,440 7,418 Other 5,519 5,317 $ 103,495 $ 103,450

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule Of Debt	June 30, December 31, 2016 2015 2019 Senior Notes, unsecured, $227,000 face value (a) $ 223,586 $ 245,689 2022 Senior Notes, unsecured, $400,000 face value (a) 392,906 392,354 Revolving credit facilities €75.0 million (b) — — C$40.0 million (c) — — €25.0 million (d) — — €5.0 million (e) — — $ 616,492 $ 638,043 (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. In March 2016, the Company purchased $23,000 in aggregate principal amount of its 2019 Senior Notes. In connection with this purchase the Company recorded a loss on extinguishment of debt of $454 in other income (expenses) in the Interim Consolidated Statement of Operations which included the write-off of unamortized debt issuance costs. (b) 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 June 30, 2016, approximately €75.0 million ($82,755) was available. (c) 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 June 30, 2016, approximately C$1.7 million ($1,308) was supporting letters of credit and approximately C$38.3 million ($29,440) was available. (d) A €25.0 million revolving credit facility at the Rosenthal 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 2.95%. As at June 30, 2016, approximately €3.1 million ($3,378) of this facility was supporting bank guarantees leaving approximately €21.9 million ($24,207) available. (e) 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 June 30, 2016, approximately €3.8 million ($4,174) of this facility was supporting bank guarantees leaving approximately €1.2 million ($1,343) available.
Principal Maturities Of Debt	As at June 30, 2016 , the maturities of the principal portion of debt are as follows: 2016 $ — 2017 — 2018 — 2019 227,000 2020 — Thereafter 400,000 $ 627,000

Pension And Other Post-Retire24

Pension And Other Post-Retirement Benefit Obligations (Tables)	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
Components of the Net Periodic Benefit Costs	The components of the net periodic benefit costs relating to the Celgar Defined Benefit Plans for the three and six month periods ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 2015 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 23 $ 124 $ 32 $ 208 Interest cost 236 220 276 172 Expected return on plan assets (494 ) — (534 ) — Amortization of unrecognized items 333 (44 ) 229 2 Net periodic benefit cost $ 98 $ 300 $ 3 $ 382 Six Months Ended June 30, 2016 2015 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 45 $ 241 $ 63 $ 413 Interest cost 497 471 724 498 Expected return on plan assets (959 ) — (1,063 ) — Amortization of unrecognized items 667 (88 ) 455 4 Net periodic benefit cost $ 250 $ 624 $ 179 $ 915

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Reconciliation Of Effective Tax Rate	Three Months Ended Six Months Ended 2016 2015 2016 2015 U.S. Federal statutory rate 35 % 35 % 35 % 35 % U.S. Federal statutory rate on income before income taxes $ (1,271 ) $ (7,819 ) $ (6,510 ) $ (15,833 ) Tax differential on foreign income 149 1,899 1,634 3,925 Effect of foreign earnings — (5,290 ) (3,500 ) (5,290 ) Valuation allowance (9,942 ) (1,440 ) (9,742 ) (6,401 ) Tax benefit of partnership structure 1,364 1,303 2,563 2,592 Non-taxable foreign subsidies 545 566 1,118 1,145 True-up of prior year taxes 558 4,610 (60 ) 4,603 Other 724 244 425 67 $ (7,873 ) $ (5,927 ) $ (14,072 ) $ (15,192 ) Comprised of: Current $ (3,372 ) $ (3,149 ) $ (5,125 ) $ (6,501 ) Deferred (4,501 ) (2,778 ) (8,947 ) (8,691 ) $ (7,873 ) $ (5,927 ) $ (14,072 ) $ (15,192 )

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Dividends Declared [Table Text Block]	During the six month period ended June 30, 2016 , the Company's Board of Directors declared the following quarterly dividends: Date Declared Dividend Per Common Share Amount February 11, 2016 $ 0.115 $ 7,435 April 28, 2016 $ 0.115 $ 7,440 $ 0.230 $ 14,875
Summary Of Performance Stock Units Activity	The following table summarizes PSU activity during the period: Number of PSUs Outstanding at January 1, 2016 1,255,919 Granted 997,863 Vested and issued (154,242 ) Outstanding at June 30, 2016 2,099,540
Summary of Restricted Shares Activity	The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding at January 1, 2016 78,000 Granted 38,000 Vested and issued (78,000 ) Outstanding at June 30, 2016 38,000
Schedule of Retained Earnings [Table Text Block]	The following table summarizes the changes in retained earnings during the period: 2016 Retained earnings, January 1, 2016 $ 160,880 Net income 4,528 Cash dividends declared ($0.23 per common share) (14,875 ) Retained earnings, June 30, 2016 $ 150,533

Net Income (Loss) Per Common 27

Net Income (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule Of Net Income Per Common Share	Three Months Ended Six Months Ended 2016 2015 2016 2015 Net income (loss) Basic and diluted $ (4,241 ) $ 16,412 $ 4,528 $ 30,046 Net income (loss) per common share Basic $ (0.07 ) $ 0.25 $ 0.07 $ 0.47 Diluted $ (0.07 ) $ 0.25 $ 0.07 $ 0.46 Weighted average number of common shares outstanding: Basic (1) 64,628,160 64,395,918 64,606,572 64,336,515 Effect of dilutive shares: PSUs — 329,943 348,339 335,729 Restricted shares — 55,111 28,862 71,736 Diluted 64,628,160 64,780,972 64,983,773 64,743,980 (1) For the three and six month periods ended June 30, 2016 , the basic weighted average number of common shares outstanding excludes 38,000 restricted shares which have been issued, but have not vested as at June 30, 2016 ( 2015 – 78,000 restricted shares).
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following table summarizes the instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive: Three Months Ended Six Months Ended 2016 2015 2016 2015 PSUs 2,099,540 — — — Restricted shares 38,000 — — —

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Unrecognized Losses and Prior Service Costs Related to Defined Benefit Plan Unrealized Gains (Losses) on Marketable Securities Total Balance December 31, 2015 $ (156,223 ) $ (15,338 ) $ (13 ) $ (171,574 ) Other comprehensive income (loss) before reclassifications 25,355 — 2 25,357 Amounts reclassified from accumulated other comprehensive income (loss) — 579 — 579 Other comprehensive income (loss), net of taxes 25,355 579 2 25,936 Balance June 30, 2016 $ (130,868 ) $ (14,759 ) $ (11 ) $ (145,638 )

Fair Value Measurement and Di29

Fair Value Measurement and Disclosure (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Outstanding Financial Instruments And Estimated Fair Values	The following tables present a summary of the Company’s outstanding financial instruments and their estimated fair values under the fair value hierarchy: Fair value measurements as at June 30, 2016 using: Description Level 1 Level 2 Level 3 Total Interest rate derivative liability $ — $ 11,780 $ — $ 11,780 Senior Notes debt — 629,270 — 629,270 $ — $ 641,050 $ — $ 641,050 Fair value measurements at December 31, 2015 using: Description Level 1 Level 2 Level 3 Total Interest rate derivative liability $ — $ 16,913 $ — $ 16,913 Senior Notes debt — 654,625 — 654,625 $ — $ 671,538 $ — $ 671,538

The Company And Summary Of Si30

The Company And Summary Of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2016itemmill
Accounting Policies [Abstract]
Number of pulp mills | mill	3
Number of Reportable Segments | item	1

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 50,796	$ 57,592
Finished goods	33,859	36,829
Spare parts and other	50,192	46,580
Inventories	$ 134,847	$ 141,001

Accounts Payable and Other (Det

Accounts Payable and Other (Details) $ in Thousands, € in Millions	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Payables and Accruals [Abstract]
Trade payables		$ 26,293	$ 20,637
Accrued expenses		51,321	55,648
Accrued interest payable		4,040	4,050
Interest rate derivative liability, current portion (Note 10)	€ 8.1	8,882	10,380
Dividends payable (Note 7)		7,440	7,418
Other		5,519	5,317
Accounts payable and other		$ 103,495	$ 103,450

Debt (Schedule Of Debt) (Detail

Debt (Schedule Of Debt) (Details) $ in Thousands	Jun. 30, 2016CAD	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Nov. 26, 2014USD ($)
Debt Instrument [Line Items]
Debt			$ 616,492	$ 638,043
2019 Senior Notes
Debt Instrument [Line Items]
Debt			223,586	245,689
Debt, face amount			227,000		$ 250,000
2022 Senior Notes
Debt Instrument [Line Items]
Debt			392,906	392,354
Debt, face amount			400,000		$ 400,000
Stendal Credit Facility - EUR 75.0 Million
Debt Instrument [Line Items]
Debt			0	0
Maximum borrowing capacity | €		€ 75,000,000
Celgar Credit Facility - C$40.0 Million
Debt Instrument [Line Items]
Debt			0	0
Maximum borrowing capacity | CAD	CAD 40,000,000
Rosenthal Credit Facility - EUR 25.0 Million
Debt Instrument [Line Items]
Debt			0	0
Maximum borrowing capacity | €		25,000,000
Rosenthal Credit Facility - EUR 5.0 Million
Debt Instrument [Line Items]
Debt			$ 0	$ 0
Maximum borrowing capacity | €		€ 5,000,000

Debt (Principal Maturities Of D

Debt (Principal Maturities Of Debt) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Debt Disclosure [Abstract]
2,016	$ 0
2,017	0
2,018	0
2,019	227,000
2,020	0
Thereafter	400,000
Total debt	$ 627,000

Debt (Narrative) (Details)

Debt (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2016CAD	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Nov. 26, 2014USD ($)
Debt Instrument [Line Items]
Debt				$ 616,492	$ 638,043
Senior Notes
Debt Instrument [Line Items]
Debt, offering date	Nov. 26, 2014
Debt, face amount						$ 650,000
Issued price percentage of principal amount						100.00%
Debt						$ 635,949
Debt Issuance Cost						14,051
Senior note redemption notice minimum days	30 days
Senior note redemption notice maximum days	60 days
2019 Senior Notes
Debt Instrument [Line Items]
Debt, face amount				227,000		$ 250,000
Debt instrument interest rate						7.00%
Debt, maturity date	Dec. 1, 2019
Debt				223,586	245,689
Debt instrument, repurchased aggregate principal amount				23,000
Loss on extinguishment of debt	$ 454
2019 Senior Notes | Twelve month period beginning on December 1, 2016
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	103.50%
2019 Senior Notes | Twelve month period beginning on December 1, 2017
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.75%
2019 Senior Notes | Twelve month period beginning on December 1, 2018 and thereafter
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
2022 Senior Notes
Debt Instrument [Line Items]
Debt, face amount				400,000		$ 400,000
Debt instrument interest rate						7.75%
Debt, maturity date	Dec. 1, 2022
Debt				392,906	392,354
2022 Senior Notes | Twelve month period beginning on December 1, 2017
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	105.813%
2022 Senior Notes | Twelve month period beginning on December 1, 2018
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	103.875%
2022 Senior Notes | Twelve month period beginning on December 31, 2019
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	101.938%
2022 Senior Notes | Twelve month period beginning on December 1, 2020 and thereafter
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
Stendal Credit Facility - EUR 75.0 Million
Debt Instrument [Line Items]
Debt, maturity date	Oct. 1, 2019
Debt				0	0
Maximum borrowing capacity | €			€ 75,000,000
Description of variable basis spread	Euribor
Varying basis spread	3.50%
Remaining borrowing capacity			75,000,000	82,755
Celgar Credit Facility - C$40.0 Million
Debt Instrument [Line Items]
Debt, maturity date	May 1, 2019
Debt				0	0
Maximum borrowing capacity | CAD		CAD 40,000,000
Remaining borrowing capacity		38,300,000		29,440
Letters of credit outstanding, amount		CAD 1,700,000		1,308
Celgar Credit Facility - C$40.0 Million | Canadian Dollar Borrowings Rate Option 1
Debt Instrument [Line Items]
Description of variable basis spread	bankers acceptance
Varying basis spread	1.50%
Celgar Credit Facility - C$40.0 Million | Canadian Dollar Borrowings Rate Option 2
Debt Instrument [Line Items]
Description of variable basis spread	Canadian prime
Celgar Credit Facility - C$40.0 Million | US Dollar Borrowings Rate Option 1
Debt Instrument [Line Items]
Description of variable basis spread	LIBOR
Varying basis spread	1.50%
Celgar Credit Facility - C$40.0 Million | US Dollar Borrowings Rate Option 2
Debt Instrument [Line Items]
Description of variable basis spread	U.S. base
Rosenthal Credit Facility - EUR 25.0 Million
Debt Instrument [Line Items]
Debt, maturity date	Oct. 1, 2019
Debt				0	0
Maximum borrowing capacity | €			25,000,000
Description of variable basis spread	Euribor
Varying basis spread	2.95%
Remaining borrowing capacity			21,900,000	24,207
Debt instrument, amount of debt supporting bank guarantees			3,100,000	3,378
Rosenthal Credit Facility - EUR 5.0 Million
Debt Instrument [Line Items]
Debt, maturity date	Dec. 1, 2018
Debt				0	$ 0
Maximum borrowing capacity | €			5,000,000
Description of variable basis spread	three-month Euribor
Varying basis spread	2.50%
Remaining borrowing capacity			1,200,000	1,343
Debt instrument, amount of debt supporting bank guarantees			€ 3,800,000	$ 4,174

Pension And Other Post-Retire36

Pension And Other Post-Retirement Benefit Obligations (Plan Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 23	$ 32	$ 45	$ 63
Interest cost	236	276	497	724
Expected return on plan assets	(494)	(534)	(959)	(1,063)
Amortization of unrecognized items	333	229	667	455
Net periodic benefit cost	98	3	250	179
Other Post-Retirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	124	208	241	413
Interest cost	220	172	471	498
Expected return on plan assets	0	0	0	0
Amortization of unrecognized items	(44)	2	(88)	4
Net periodic benefit cost	$ 300	$ 382	$ 624	$ 915

Pension And Other Post-Retire37

Pension And Other Post-Retirement Benefit Obligations (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Multiemployer Plan
Defined Benefit Plan Disclosure [Line Items]
Multiemployer contributions	$ 407	$ 399	$ 783	$ 850
Defined Contribution Plan Jan 1, 2009
Defined Benefit Plan Disclosure [Line Items]
Pension contributions	$ 146	$ 179	$ 309	$ 348

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Change in valuation allowance	$ (9,942)	$ (1,440)	$ (9,742)	$ (6,401)

Income Taxes (Reconciliation Of

Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
U.S. Federal statutory rate	35.00%	35.00%	35.00%	35.00%
U.S. Federal statutory rate on income before income taxes and noncontrolling interest	$ (1,271)	$ (7,819)	$ (6,510)	$ (15,833)
Tax differential on foreign income	149	1,899	1,634	3,925
Effect of foreign earnings	0	(5,290)	(3,500)	(5,290)
Valuation allowance	(9,942)	(1,440)	(9,742)	(6,401)
Tax benefit of partnership structure	1,364	1,303	2,563	2,592
Non-taxable foreign subsidies	545	566	1,118	1,145
True-up of prior year taxes	558	4,610	(60)	4,603
Other	724	244	425	67
Total income tax provision	(7,873)	(5,927)	(14,072)	(15,192)
Current income tax provision	(3,372)	(3,149)	(5,125)	(6,501)
Deferred income tax provision	$ (4,501)	$ (2,778)	$ (8,947)	$ (8,691)

Shareholders' Equity (Narrative

Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2011	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends declared per common share		$ 0.115	$ 0	$ 0.23	$ 0
Common shares available for grant (in shares)		1,013,112		1,013,112
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Expense recognized		$ 649	$ 596	$ 1,386	$ 1,097
Shares granted (in shares)				997,863
Shares outstanding (in shares)		2,099,540		2,099,540			1,255,919
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Expense recognized		$ 115	$ 132	$ 269	$ 261
Shares granted (in shares)				38,000
Shares outstanding (in shares)		38,000		38,000			78,000
Unrecognized compensation cost		$ 333		$ 333
Restricted Shares, 2011 Grant To Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						5 years
Shares granted (in shares)						200,000
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)				0
Shares outstanding (in shares)		0		0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)				0
Shares outstanding (in shares)		0		0
Restricted Stock Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)				0
Shares outstanding (in shares)		0		0
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)				0
Shares outstanding (in shares)		0		0
Subsequent Event | Dividend Declared, October 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends payable, date declared	Jul. 28, 2016
Cash dividends declared per common share	$ 0.115
Dividends payable, date to be paid	Oct. 4, 2016
Dividends payable, date of record	Sep. 26, 2016

Shareholders' Equity Shareholde

Shareholders' Equity Shareholders' Equity (Schedule of Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Dividends Payable [Line Items]
Cash dividends declared per common share		$ 0.115	$ 0	$ 0.23	$ 0
Dividend payments		$ 7,435	$ 0	$ 14,853	$ 0
Dividends Payable, Current		7,440		7,440		$ 7,418
Dividends declared				$ 14,875
Dividend Declared
Dividends Payable [Line Items]
Dividends payable, date declared				Apr. 28, 2016
Cash dividends declared per common share				$ 0.115
Dividends Payable, Current		$ 7,440		$ 7,440
Dividend Paid [Member]
Dividends Payable [Line Items]
Dividends payable, date declared				Feb. 11, 2016
Cash dividends declared per common share				$ 0.115
Dividend payments				$ 7,435
Subsequent Event | Dividend Declared, October 2016
Dividends Payable [Line Items]
Dividends payable, date declared	Jul. 28, 2016
Cash dividends declared per common share	$ 0.115
Dividends payable, date to be paid	Oct. 4, 2016
Dividends payable, date of record	Sep. 26, 2016

Shareholders' Equity (Summary O

Shareholders' Equity (Summary Of Share Activity - PSU's) (Details) - Performance Share Units	6 Months Ended
	Jun. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding - Beginning (in shares)	1,255,919
Shares granted (in shares)	997,863
Vested and issued (in shares)	(154,242)
Outstanding - Ending (in shares)	2,099,540

Shareholders' Equity (Summary43

Shareholders' Equity (Summary Of Share Activity - Restricted Shares) (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding - Beginning (in shares)	78,000
Shares granted (in shares)	38,000
Vested and issued (in shares)	(78,000)
Outstanding - Ending (in shares)	38,000

Shareholders' Equity Sharehol44

Shareholders' Equity Shareholders' Equity (Retained Earnings Roll Forward) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Retained Earnings [Roll Forward]
Retained earnings, January 1, 2016			$ 160,880
Net income (loss)	$ (4,241)	$ 16,412	4,528	$ 30,046
Cash dividends declared ($0.23 per common share)			(14,875)
Retained earnings, June 30, 2016	$ 150,533		$ 150,533
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends declared per common share	$ 0.115	$ 0	$ 0.23	$ 0
Dividend Declared
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends declared per common share			$ 0.115

Net Income (Loss) Per Common 45

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items]
Net income (loss) - basic and diluted	$ (4,241)	$ 16,412	$ 4,528	$ 30,046
Net income (loss) per common share, basic	$ (0.07)	$ 0.25	$ 0.07	$ 0.47
Net income (loss) per common share, diluted	$ (0.07)	$ 0.25	$ 0.07	$ 0.46
Weighted average number of common shares outstanding, basic (in shares)	64,628,160	64,395,918	64,606,572	64,336,515
Weighted average number of common shares outstanding, diluted (in shares)	64,628,160	64,780,972	64,983,773	64,743,980
Performance Share Units
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items]
Effect of dilutive instruments (in shares)	0	329,943	348,339	335,729
Anti-dilutive securities excluded from EPS computation	2,099,540	0	0	0
Restricted Stock
Net Income Per Share Attributable To Common Shareholders Basic And Diluted [Line Items]
Effect of dilutive instruments (in shares)	0	55,111	28,862	71,736
Contingently issuable shares excluded from the basic weighted average shares outstanding (in shares)	38,000	78,000	38,000	78,000
Anti-dilutive securities excluded from EPS computation	38,000	0	0	0

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	$ 382,976
Accumulated other comprehensive income, ending balance	400,220
Foreign Currency Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(156,223)
Other comprehensive income (loss) before reclassifications	25,355
Amounts reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss), net of taxes	25,355
Accumulated other comprehensive income, ending balance	(130,868)
Unrecognized Losses and Prior Service Costs Related to Defined Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(15,338)
Other comprehensive income (loss) before reclassifications	0
Amounts reclassified from accumulated other comprehensive income (loss)	579
Other comprehensive income (loss), net of taxes	579
Accumulated other comprehensive income, ending balance	(14,759)
Unrealized Gains (Losses) on Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(13)
Other comprehensive income (loss) before reclassifications	2
Amounts reclassified from accumulated other comprehensive income (loss)	0
Other comprehensive income (loss), net of taxes	2
Accumulated other comprehensive income, ending balance	(11)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive income, beginning balance	(171,574)
Other comprehensive income (loss) before reclassifications	25,357
Amounts reclassified from accumulated other comprehensive income (loss)	579
Other comprehensive income (loss), net of taxes	25,936
Accumulated other comprehensive income, ending balance	$ (145,638)

Derivative Transactions (Narrat

Derivative Transactions (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 01, 2002EUR (€)
Derivative [Line Items]
Interest rate derivative liability, total					€ 10,700,000	$ 11,780	$ 16,913
Interest rate derivative liability, current					8,100,000	8,882	10,380
Interest rate derivative liability, noncurrent					2,600,000	2,898	6,533
Restricted cash, at carrying value					7,100,000	$ 7,834	$ 9,230
Gain (loss) on derivative instruments | $	$ (55)	$ 167	$ (265)	$ (357)
Stendal Credit Facility - EUR 75.0 Million
Derivative [Line Items]
Maximum borrowing capacity					75,000,000
Interest Rate Swap
Derivative [Line Items]
Aggregate notional amount of interest rate swap					€ 161,000,000
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					€ 8,500,000
Interest Rate Swap | Stendal Credit Facility - EUR 75.0 Million
Derivative [Line Items]
Aggregate maximum principal amount of the Stendal loan facility covered by interest rate swaps								€ 612,600,000

Fair Value Measurement and Di48

Fair Value Measurement and Disclosure (Outstanding Financial Instruments and Estimated Fair Value) (Details) $ in Thousands, € in Millions	Jun. 30, 2016EUR (€)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate derivative liability, fair value	€ 10.7	$ 11,780	$ 16,913
Total financial liabilities, fair value		641,050	671,538
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate derivative liability, fair value		0	0
Total financial liabilities, fair value		0	0
Fair Value, Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate derivative liability, fair value		11,780	16,913
Total financial liabilities, fair value		641,050	671,538
Fair Value, Significant unobservable inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate derivative liability, fair value		0	0
Total financial liabilities, fair value		0	0
Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes debt, fair value		629,270	654,625
Senior Notes | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes debt, fair value		0	0
Senior Notes | Fair Value, Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes debt, fair value		629,270	654,625
Senior Notes | Fair Value, Significant unobservable inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior Notes debt, fair value		$ 0	$ 0