Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 24, 2018 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | merc | |
Entity Registrant Name | MERCER INTERNATIONAL INC. | |
Entity Central Index Key | 1,333,274 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 65,201,661 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | $ 331,058 | $ 305,498 | $ 1,045,493 | $ 831,459 |
Costs and Expenses [Abstract] | ||||
Operating costs, excluding depreciation and amortization | 230,009 | 228,941 | 755,428 | 632,071 |
Operating depreciation and amortization | 23,197 | 22,568 | 69,312 | 62,205 |
Selling, general and administrative expenses | 14,506 | 12,327 | 43,883 | 35,312 |
Operating income | 63,346 | 41,662 | 176,870 | 101,871 |
Other income (expenses) | ||||
Interest expense | (11,729) | (13,513) | (35,972) | (40,712) |
Loss on settlement of debt (Note 4(a)) | 0 | 0 | (21,515) | (10,696) |
Legal cost award (Note 11(c)) | 0 | 0 | (6,951) | 0 |
Other income (expenses) | (259) | (374) | (628) | 199 |
Total other expenses | (11,988) | (13,887) | (65,066) | (51,209) |
Income before provision for income taxes | 51,358 | 27,775 | 111,804 | 50,662 |
Provision for income taxes | (10,182) | (6,632) | (28,224) | (21,897) |
Net income | $ 41,176 | $ 21,143 | $ 83,580 | $ 28,765 |
Net income per common share | ||||
Net income per common share, basic | $ 0.63 | $ 0.33 | $ 1.28 | $ 0.44 |
Net income per common share, diluted | 0.63 | 0.32 | 1.27 | 0.44 |
Dividends declared per common share | $ 0.125 | $ 0.115 | $ 0.375 | $ 0.345 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 41,176 | $ 21,143 | $ 83,580 | $ 28,765 |
Other comprehensive income (loss), net of taxes | ||||
Foreign currency translation adjustment (net of tax effect of $nil in all years) | (1,981) | 37,957 | (41,503) | 107,597 |
Change in unrecognized losses and prior service costs related to defined benefit plan (net of tax effect of $nil in all years) | (574) | 302 | (1,302) | 904 |
Change in unrealized gains/losses on marketable securities (net of tax effect of $nil in all years) | (1) | 53 | 26 | 58 |
Other comprehensive income (loss), net of taxes | (2,556) | 38,312 | (42,779) | 108,559 |
Total comprehensive income | $ 38,620 | $ 59,455 | $ 40,801 | $ 137,324 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax effect | $ 0 | $ 0 | $ 0 | $ 0 |
Change in unrecognized losses and prior service costs related to defined benefit plan, 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 - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 242,185 | $ 143,299 |
Restricted cash to redeem senior notes (Note 4(a)) | 0 | 317,439 |
Accounts receivable | 193,648 | 206,027 |
Inventories | 229,784 | 176,601 |
Prepaid expenses and other | 12,417 | 8,973 |
Total current assets | 678,034 | 852,339 |
Property, plant and equipment, net | 834,347 | 844,848 |
Intangible and other assets | 24,274 | 26,147 |
Deferred income tax | 4,641 | 1,376 |
Total assets | 1,541,296 | 1,724,710 |
Current liabilities | ||
Accounts payable and other | 173,784 | 133,557 |
Pension and other post-retirement benefit obligations | 955 | 985 |
Senior notes to be redeemed with restricted cash (Note 4(a)) | 0 | 295,924 |
Total current liabilities | 174,739 | 430,466 |
Debt | 696,519 | 662,997 |
Pension and other post-retirement benefit obligations | 22,705 | 21,156 |
Capital leases and other | 36,239 | 27,464 |
Deferred income tax | 41,152 | 31,961 |
Total liabilities | 971,354 | 1,174,044 |
Shareholders' equity | ||
Common shares | 65,171 | 64,974 |
Additional paid-in capital | 341,420 | 338,695 |
Retained earnings | 265,131 | 205,998 |
Accumulated other comprehensive loss | (101,780) | (59,001) |
Total shareholders' equity | 569,942 | 550,666 |
Total liabilities and shareholders' equity | 1,541,296 | 1,724,710 |
Commitments and contingencies (Note 11) |
INTERIM CONSOLIDATED BALANCE _2
INTERIM CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 65,202,000 | 65,017,000 |
Common Stock, Shares, Outstanding | 65,202,000 | 65,017,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from (used in) operating activities | ||||
Net income | $ 41,176 | $ 21,143 | $ 83,580 | $ 28,765 |
Adjustments to reconcile net income to cash flows from operating activities | ||||
Depreciation and amortization | 23,310 | 22,673 | 69,643 | 62,519 |
Deferred income tax provision | 1,314 | 4,184 | 7,330 | 12,589 |
Loss on settlement of debt | 0 | 0 | 21,515 | 10,696 |
Defined benefit pension plan and other post-retirement benefit plan expense | 423 | 549 | 1,294 | 1,615 |
Stock compensation expense | 970 | 774 | 2,922 | 1,525 |
Other | 884 | 783 | 3,015 | 1,308 |
Defined benefit pension plan and other post-retirement benefit plan contributions | (19) | (458) | (124) | (1,309) |
Changes in working capital | ||||
Accounts receivable | (150) | 1,584 | 8,193 | (42,130) |
Inventories | (41,084) | (14,043) | (60,127) | (9,912) |
Accounts payable and accrued expenses | (10,803) | (1,906) | 44,130 | 41,929 |
Other | (5,252) | (1,496) | (8,480) | (4,338) |
Net cash from (used in) operating activities | 10,769 | 33,787 | 172,891 | 103,257 |
Cash flows from (used in) investing activities | ||||
Purchase of property, plant and equipment | (26,744) | (14,342) | (71,583) | (42,249) |
Purchase of intangible assets | (163) | (394) | (483) | (799) |
Acquisition of Friesau Facility | 0 | 0 | 0 | (61,627) |
Other | 211 | (381) | 278 | (304) |
Net cash from (used in) investing activities | (26,696) | (15,117) | (71,788) | (104,979) |
Cash flows from (used in) financing activities | ||||
Redemption of senior notes | 0 | 0 | (317,439) | (234,945) |
Proceeds from issuance of senior notes | 0 | 0 | 0 | 250,000 |
Proceeds from (repayment of) revolving credit facilities, net | (3,443) | 0 | 34,293 | 26,525 |
Dividend payments | (8,150) | (7,477) | (24,424) | (22,389) |
Payment of interest rate derivative liability | 0 | 0 | 0 | (3,789) |
Payment of debt issuance costs | 0 | 0 | (1,390) | (6,132) |
Other | (944) | (389) | (2,563) | 569 |
Net cash from (used in) financing activities | (12,537) | (7,866) | (311,523) | 9,839 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,167 | 3,895 | (8,133) | 10,329 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (27,297) | 14,699 | (218,553) | 18,446 |
Cash, cash equivalents and restricted cash, beginning of period | 269,482 | 144,643 | 460,738 | 140,896 |
Cash, cash equivalents and restricted cash, end of period | 242,185 | 159,342 | 242,185 | 159,342 |
Cash paid during the period for | ||||
Cash paid for interest | 19,591 | 8,430 | 35,287 | 29,311 |
Cash paid for income taxes | 2,192 | 2,797 | 6,412 | 8,001 |
Noncash Investing and Financing Items [Abstract] | ||||
Leased production equipment | $ 0 | $ 4 | $ 12,126 | $ 143 |
The Company And Summary Of Sign
The Company And Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 the NASDAQ Global Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The 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 unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company’s latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2017. 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. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars (“U.S. dollars” or “$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. New Accounting Pronouncements Accounting Pronouncements Implemented In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue Recognition – Revenue from Contracts with Customers 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. Additionally, the update provides presentation and disclosure requirements which are more detailed in regards to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted ASU 2014-09 as at January 1, 2018 using the modified retrospective method. This update does not change the timing of when the Company recognizes revenue as the majority of the Company's revenue arises from contracts with customers in which the sale of goods is the main performance obligation. The Company's revised revenue recognition disclosure has been included in the Significant Accounting Policies and the Business Segment Information Note. In March 2017, the FASB issued Accounting Standards Update 2017-07 ("ASU 2017-07"), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 as at January 1, 2018. For the three and nine month periods ended September 30, 2018, $282 and $864 of the net benefit cost, respectively, has been recorded in other income (expenses) in the Interim Consolidated Statement of Operations. For the three and nine month periods ended September 30, 2017, $373 and $1,109 , respectively, has been reclassified from operating costs, excluding depreciation and amortization to other income (expenses) in the Interim Consolidated Statement of Operations. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has elected to treat any potential GILTI inclusions as a period cost. Accounting Pronouncements Not Yet Implemented In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases ("ASU 2016-02") which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and liability. In July 2018 the FASB issued Accounting Standards Update 2018-10 , Codification Improvements to Topic 842, Leases as well as Accounting Standards Update 2018-11, Leases: Targeted Improvements which further affect the guidance of ASU 2016-02. These updates are effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted at the beginning of an interim or annual reporting period. The Company will adopt these updates on January 1, 2019. Currently, the Company believes these updates will not have a material impact on its consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This update is effective for fiscal years beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. The Company believes this update will not have an impact on its consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting which both clarifies and modifies accounting requirements relating to nonemployee share based payment transactions. The Company believes this update will not have an impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement ("ASU 2018-13") which both modifies and clarifies the disclosure requirements for fair value measurement. This update is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2018-13 will have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General ("ASU 2018-14") which both modifies and clarifies certain disclosure requirements for defined benefit pension and post-retirement plans. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2018-14 will have on its consolidated financial statements. Significant Accounting Policies Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally this occurs with the transfer of control of the products sold. Transfer of control to the customer is based on the standardized shipping terms in the contract as this determines when the Company has the right to payment, the customer has legal title to the asset and the customer has the risks of ownership. Payment terms are defined in the contract and payment is typically due within three months after control has transferred to the customer. The contracts do not have a significant financing component. The Company has elected to exclude value added, sales and other taxes it collects concurrent with revenue-producing activities from revenues. The Company may arrange shipping and handling activities as part of the sale of its products. The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than as an additional promised service. The following is a description of the principal activities from which the Company generates its revenues. For a breakdown of revenues by product and geographic location see the Business Segment Information Note. Pulp and Lumber Revenues For European sales sent by truck or train from the mills directly to the customer, the contracted sales terms are such that control transfers once the truck or train leaves the mill. For orders sent by ocean freighter, the contract terms state that control transfers at the time the product passes the ships rail. For North American sales shipped by truck or train, the contracts state that control transfers once the truck or train has arrived at the customer’s specified location. The transaction price is included in the sales contract and is net of customer discounts, rebates and other selling concessions. The Company’s pulp sales are to tissue and paper producers and the Company’s lumber sales are to manufacturers and retailers. The Company’s sales to Europe and North America are direct to the customer. The Company's pulp sales to overseas customers are primarily through third party sales agents and the Company's lumber sales to overseas customers are either direct to the customer or through third party sales agents. By-Product Revenues Energy sales are to utility companies in Canada and Germany. Sales of energy are recognized as the electricity is consumed by the customer and is based on contractual usage rates and meter readings that measure electricity consumption. Chemicals and wood residuals are sold into the European market direct to the customer and hav e shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Subsequent Events Disclosure [Text Block] | Subsequent Events Santanol Group ("Santanol") On October 18, 2018, the Company acquired Santanol for approximately $33,000 cash. Santanol owns and leases existing Indian sandalwood plantations and a processing extraction plant in Australia. The acquisition presents the opportunity to expand the Company’s operations to include plantation harvesting as well as production of solid wood chemical extractives. The Company is in the process of evaluating the business combination accounting considerations, including the initial purchase price allocation. Daishowa-Marubeni International Ltd. ("DMI") On October 3, 2018, the Company announced that it has entered into an agreement (the “Purchase Agreement”) to acquire all of the issued and outstanding shares of DMI for consideration of $359,200 cash, which includes a minimum working capital of $85,700 (the “Transaction”). The acquisition would result in 100% ownership of a bleached kraft pulp mill in Peace River, Alberta as well as 50% joint venture interest in a bleached kraft pulp mill in Quesnel, British Columbia. The acquisition would expand the Company's presence in Asia and add northern bleached hardwood kraft to its product mix. The acquisition is subject to certain customary closing conditions. The Company currently expects the acquisition to close in the fourth quarter of 2018. Pursuant to the Purchase Agreement, the completion of the Transaction is subject to customary closing conditions, including the receipt of requisite regulatory anti-trust approvals. The Company and the vendors may each terminate the agreement if closing of the Transaction does not occur as of the date that is within 120 days of the Purchase Agreement unless such date is extended in certain circumstances as provided in the Purchase Agreement. In connection with entering into the Purchase Agreement, on October 3, 2018, the Company accepted and entered into a Commitment Letter by and among the Company, Credit Suisse Loan Funding LLC and Credit Suisse AG (the "Commitment Letter") dated September 30, 2018, pursuant to which Credit Suisse AG has agreed to provide the Company with a senior unsecured bridge facility in the principal amount of up to $350,000 in order to finance the purchase price under the Transaction. The facility is anticipated to be replaced or refinanced by the Company as provided in the Commitment Letter. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories September 30, December 31, 2018 2017 Raw materials $ 98,623 $ 49,137 Finished goods 63,054 58,364 Spare parts and other 68,107 69,100 $ 229,784 $ 176,601 |
Accounts Payable and Other
Accounts Payable and Other | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Accounts Payable and Other September 30, December 31, 2018 2017 Trade payables $ 46,529 $ 36,151 Accrued expenses 81,502 67,528 Interest payable 9,025 10,093 Income tax payable 14,864 4,324 Legal cost award payable (Note 11(c)) 6,951 — Dividends payable 8,150 8,126 Other 6,763 7,335 $ 173,784 $ 133,557 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt September 30, December 31, 2018 2017 2022 Senior Notes, principal amount, $100,000 (a) $ 98,849 $ 394,565 2024 Senior Notes, principal amount, $250,000 (a) 245,965 245,398 2026 Senior Notes, principal amount, $300,000 (a) 294,395 293,773 Revolving credit facilities €75.0 million (b) — — C$40.0 million (c) — — €70.0 million (d) 42,252 25,185 €5.0 million (e) — — €25.0 million (f) 15,058 — $ 696,519 $ 958,921 As at September 30, 2018 , the maturities of the principal portion of debt are as follows: 2018 $ — 2019 — 2020 15,058 2021 — 2022 142,252 Thereafter 550,000 $ 707,310 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 September 30, 2018 , the Company is in compliance with the terms of its debt agreements. (a) On December 20, 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 ("2026 Senior Notes"). The 2026 Senior Notes were issued at a price of 100.00% of their principal amount. The net proceeds of the offering were $293,795 , after deducting the underwriter's discount and offering expenses. In January 2018, the Company used the net proceeds, together with cash on hand, to redeem $300,000 in aggregate principal amount of 2022 Senior Notes (herein defined below). In connection with this redemption the Company recorded a loss on settlement of debt of $21,515 in the Interim Consolidated Statement of Operations. As at December 31, 2017, the total cash used to redeem the 2022 Senior Notes was classified as restricted cash and the carrying value of the 2022 Senior Notes was classified as a current liability in the Consolidated Balance Sheet. On February 3, 2017, the Company issued $225,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (“2024 Senior Notes”) and on March 16, 2017, the Company issued an additional $25,000 in aggregate principal amount of its 2024 Senior Notes. The 2024 Senior Notes were issued at a price of 100.00% of their principal amount. The net proceeds of the offerings were $244,711 , after deducting the underwriter's discount and offering expenses. The net proceeds from the 2024 Senior Notes, together with cash on hand, were used to redeem $227,000 of remaining aggregate principal amount of outstanding senior notes due 2019, to finance the acquisition of a German sawmill and bio-mass power plant near Friesau Germany (the "Friesau Facility") and for general working capital purposes. In connection with the redemption the Company recorded a loss on settlement of debt of $10,696 in the Interim Consolidated Statement of Operations. On November 26, 2014, the Company issued $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 (“2022 Senior Notes” and collectively with the 2024 Senior Notes and 2026 Senior Notes, the “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 2026 Senior Notes, upon not less than 10 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 Company may redeem all or a part of the 2024 Senior Notes or 2022 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 2026 Senior Notes redemption prices are equal to 102.750% for the twelve month period beginning on January 15, 2021, 101.375% for the twelve month period beginning on January 15, 2022, and 100.000% beginning on January 15, 2023 and at any time thereafter. The 2024 Senior Notes redemption prices are equal to 103.250% for the twelve month period beginning on February 1, 2020, 101.625% for the twelve month period beginning on February 1, 2021, and 100.000% beginning on February 1, 2022 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 100.000% beginning on December 1, 2020 and at any time thereafter. (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 September 30, 2018 , approximately €0.1 million ( $151 ) of this facility was supporting bank guarantees leaving approximately €74.9 million ( $86,669 ) available. (c) A C$40.0 million revolving credit facility at the Celgar mill that matures in July 2023. Borrowings under the facility are collateralized by the mill’s inventory, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill’s inventory and accounts receivable. When the borrowing capacity is less than 25% of the total facility the Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime and the U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . When the borrowing capacity is greater than or equal to 25% of the total facility, the respective bankers acceptance or LIBOR margins are reduced by 0.25% and the Canadian Prime or U.S. base margins are reduced by 0.125% . As at September 30, 2018 , approximately C$1.7 million ( $1,312 ) was supporting letters of credit and approximately C$38.3 million ( $29,587 ) was available. (d) A €70.0 million joint revolving credit facility that matures in April 2022. The Rosenthal mill has full access to the available amount under the facility and the Company's wholly owned subsidiary, Mercer Timber Products GmbH has access to a maximum of €45.0 million . Borrowings under the facility are collateralized by the borrowers' inventory and accounts receivable and bear interest at Euribor plus 2.95% . As at September 30, 2018 , approximately €36.5 million ( $42,252 ) of this facility was drawn and accruing interest at a rate of 2.95% and approximately €11.4 million ( $13,210 ) of this facility was supporting bank guarantees leaving approximately €22.1 million ( $25,570 ) 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 September 30, 2018 approximately €2.6 million ( $2,954 ) of this facility was supporting bank guarantees leaving approximately €2.4 million ( $2,834 ) available. (f) A €25.0 million revolving credit facility for the Company's wholly owned German subsidiary, Mercer Holz GmbH (“Mercer Holz”), that matures in February 2020. Borrowings under this facility bear interest at Euribor plus 3.30% and are secured by Mercer Holz's inventory and accounts receivable. As at September 30, 2018 , approximately €13.0 million ( $15,058 ) of this facility was drawn and accruing interest at a rate of 3.30% and approximately €0.3 million ( $370 ) of this facility was supporting bank guarantees leaving approximately €11.7 million ( $13,512 ) available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure | 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 benefit costs relating to the Celgar Defined Benefit Plans for the three and nine month periods ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 2017 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 26 $ 115 $ 25 $ 151 Interest cost 312 175 346 245 Expected return on plan assets (380 ) — (520 ) — Amortization of unrecognized items 226 (51 ) 265 37 Net benefit costs $ 184 $ 239 $ 116 $ 433 Nine Months Ended September 30, 2018 2017 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 78 $ 352 $ 71 $ 435 Interest cost 952 535 998 706 Expected return on plan assets (1,157 ) — (1,499 ) — Amortization of unrecognized items 690 (156 ) 792 112 Net benefit costs $ 563 $ 731 $ 362 $ 1,253 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 nine month periods ended September 30, 2018 , the Company made contributions of $215 and $650 , respectively ( 2017 – $213 and $672 ), 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. During the three and nine month periods ended September 30, 2018 , the Company made contributions of $529 and $1,674 , respectively ( 2017 – $493 and $1,539 ), to this plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision attributable to income before provision for income taxes in the Interim Consolidated Statements of Operations differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% (2017 - 35%) for the three and nine month periods ended September 30, 2018 and 2017 as a result of the following: Three Months Ended Nine Months Ended 2018 2017 2018 2017 U.S. federal statutory rate 21% 35% 21% 35% U.S. federal statutory rate on income before provision for income taxes $ (10,785 ) $ (9,722 ) $ (23,479 ) $ (17,732 ) Tax differential on foreign income (4,265 ) 2,701 (11,493 ) 5,668 Effect of foreign earnings (19,983 ) — (28,440 ) — Change in undistributed earnings — (450 ) — (5,915 ) Valuation allowance 23,492 (1,823 ) 45,510 (11,177 ) Tax benefit of partnership structure 965 1,246 3,242 3,692 Non-taxable foreign subsidies 716 608 2,204 1,717 True-up of prior year taxes 109 (169 ) (14,384 ) (279 ) Foreign exchange on valuation allowance (30 ) 1,241 (704 ) 2,404 Foreign exchange on settlement of debt — — — 550 Other (401 ) (264 ) (680 ) (825 ) $ (10,182 ) $ (6,632 ) $ (28,224 ) $ (21,897 ) Comprised of: Current income tax provision $ (8,868 ) $ (2,448 ) $ (20,894 ) $ (9,308 ) Deferred income tax provision (1,314 ) (4,184 ) (7,330 ) (12,589 ) $ (10,182 ) $ (6,632 ) $ (28,224 ) $ (21,897 ) The Act enacted on December 22, 2017 resulted in substantial changes including reducing the U.S. federal corporate income tax rate from 35% to 21% and requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. The Company applied the guidance in Staff Accounting Bulletin No. 118 and at December 31, 2017 calculated its best estimate of the impact of the Act in its year end income tax provision. Subsequent to the completion and filing of the 2017 tax return in the third quarter of 2018 it was determined that no significant measurement period adjustments to the provisional estimates recorded at December 31, 2017 were necessary. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income Basic and diluted $ 41,176 $ 21,143 $ 83,580 $ 28,765 Net income per common share Basic $ 0.63 $ 0.33 $ 1.28 $ 0.44 Diluted $ 0.63 $ 0.32 $ 1.27 $ 0.44 Weighted average number of common shares outstanding: Basic (1) 65,170,531 64,973,653 65,120,976 64,896,511 Effect of dilutive shares: Performance Share Units (“PSUs”) 639,998 412,995 550,983 429,801 Restricted shares 7,510 7,268 20,328 17,447 Diluted 65,818,039 65,393,916 65,692,287 65,343,759 (1) For the three and nine month periods ended September 30, 2018 , the basic weighted average number of common shares outstanding excludes 31,130 restricted shares which have been issued, but have not vested as at September 30, 2018 ( 2017 – 43,635 restricted shares). The calculation of diluted net income per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income per common share. There were no anti-dilutive instruments for the three and nine month periods ended September 30, 2018 and 2017. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividends During the nine month period ended September 30, 2018, the Company's Board of Directors declared the following quarterly dividends: Date Declared Dividend Per Amount February 15, 2018 $ 0.125 $ 8,147 May 3, 2018 0.125 8,150 July 26, 2018 0.125 8,150 $ 0.375 $ 24,447 In October 2018, the Company’s Board of Directors declared a quarterly dividend of $0.125 per common share. Payment of the dividend will be made on December 20, 2018 to all shareholders of record on December 13, 2018 . Future dividends are subject to approval by the Board of Directors and may be adjusted as business and industry conditions warrant. Stock Based Compensation In June 2010, the Company adopted a stock incentive plan which provides for options, restricted stock rights, restricted shares, performance shares, PSUs and stock appreciation rights to be awarded to employees, consultants and non-employee directors. During the nine month period ended September 30, 2018 , there were no issued and outstanding options, restricted stock rights, performance shares or stock appreciation rights. As at September 30, 2018 , after factoring in all allocated shares, there remain approximately 2.8 million 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 nine month periods ended September 30, 2018 , the Company recognized an expense of $840 and $2,534 , respectively related to PSUs ( 2017 – $646 and $1,201 ). The following table summarizes PSU activity during the period: Number of PSUs Outstanding as at January 1, 2018 1,867,158 Granted 652,548 Vested and issued (153,243 ) Forfeited (330,455 ) Outstanding as at September 30, 2018 2,036,008 Restricted Shares Restricted shares generally vest at the end of one year . Expense recognized for the three and nine month periods ended September 30, 2018 was $130 and $388 ( 2017 – $128 and $324 ). As at September 30, 2018 , the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $347 which will be amortized over the remaining vesting periods. The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding as at January 1, 2018 43,635 Granted 31,130 Vested (43,635 ) Outstanding as at September 30, 2018 31,130 Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post-Retirement Benefit Items Unrealized Gains / Losses on Marketable Securities Total Balance as at January 1, 2018 $ (50,083 ) $ (8,900 ) $ (18 ) $ (59,001 ) Other comprehensive income (loss) before reclassifications (41,503 ) (1,836 ) 26 (43,313 ) Amounts reclassified from accumulated other comprehensive loss — 534 — 534 Other comprehensive income (loss) (41,503 ) (1,302 ) 26 (42,779 ) Balance as at September 30, 2018 $ (91,586 ) $ (10,202 ) $ 8 $ (101,780 ) |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Business Segment Information The Company is managed based on the primary products it manufactures: pulp and wood products. Accordingly, the Company's three pulp mills are aggregated into the pulp business segment and the Friesau Facility from its acquisition date of April 12, 2017 is a separate reportable business segment, wood products. None of the income or loss items following operating income in the Company's Interim Consolidated Statement of Operations are allocated to the segments, since those items are reviewed separately by management. The following tables shows information by reportable business segments for the three and nine month periods ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 292,969 $ 38,089 $ — $ 331,058 Operating income (loss) $ 68,794 $ (1,770 ) $ (3,678 ) $ 63,346 Depreciation and amortization $ 20,802 $ 2,395 $ 113 $ 23,310 Revenues by major products Pulp $ 274,970 $ — $ — $ 274,970 Lumber — 34,270 — 34,270 Energy and chemicals 17,999 1,978 — 19,977 Wood residuals — 1,841 — 1,841 Total revenues $ 292,969 $ 38,089 $ — $ 331,058 Revenues by geographical markets U.S. $ 7,148 $ 10,857 $ — $ 18,005 Germany 132,233 14,771 — 147,004 China 44,981 — — 44,981 Other countries 108,607 12,461 — 121,068 Total revenues $ 292,969 $ 38,089 $ — $ 331,058 Three Months Ended September 30, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 272,358 $ 33,140 $ — $ 305,498 Operating income (loss) $ 40,982 $ 2,983 $ (2,303 ) $ 41,662 Depreciation and amortization $ 21,149 $ 1,419 $ 105 $ 22,673 Revenues by major products Pulp $ 247,314 $ — $ — $ 247,314 Lumber — 27,851 — 27,851 Energy and chemicals 25,044 3,116 — 28,160 Wood residuals — 2,173 — 2,173 Total revenues $ 272,358 $ 33,140 $ — $ 305,498 Revenues by geographical markets U.S. $ 12,276 $ 3,458 $ — $ 15,734 Germany 112,267 18,676 — 130,943 China 60,604 — — 60,604 Other countries 87,211 11,006 — 98,217 Total revenues $ 272,358 $ 33,140 $ — $ 305,498 Nine Months Ended September 30, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 898,836 $ 146,657 $ — $ 1,045,493 Operating income (loss) $ 179,824 $ 5,534 $ (8,488 ) $ 176,870 Depreciation and amortization $ 63,452 $ 5,860 $ 331 $ 69,643 Total assets $ 1,343,035 $ 133,215 $ 65,046 $ 1,541,296 Revenues by major products Pulp $ 845,460 $ — $ — $ 845,460 Lumber — 131,429 — 131,429 Energy and chemicals 53,376 8,014 — 61,390 Wood residuals — 7,214 — 7,214 Total revenues $ 898,836 $ 146,657 $ — $ 1,045,493 Revenues by geographical markets U.S. $ 18,451 $ 42,511 $ — $ 60,962 Germany 373,176 58,631 — 431,807 China 204,818 — — 204,818 Other countries 302,391 45,515 — 347,906 Total revenues $ 898,836 $ 146,657 $ — $ 1,045,493 Nine Months Ended September 30, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 781,028 $ 50,431 $ — $ 831,459 Operating income (loss) $ 104,411 $ 3,064 $ (5,604 ) $ 101,871 Depreciation and amortization $ 59,652 $ 2,553 $ 314 $ 62,519 Revenues by major products Pulp $ 712,810 $ — $ — $ 712,810 Lumber — 41,444 — 41,444 Energy and chemicals 68,218 5,761 — 73,979 Wood residuals — 3,226 — 3,226 Total revenues $ 781,028 $ 50,431 $ — $ 831,459 Revenues by geographical markets U.S. $ 23,394 $ 3,458 $ — $ 26,852 Germany 313,730 30,312 — 344,042 China 194,280 — — 194,280 Other countries 249,624 16,661 — 266,285 Total revenues $ 781,028 $ 50,431 $ — $ 831,459 Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the wood products segment to the pulp segment for use in the pulp production process and from the sale of residual fuel from the pulp segment to the wood products segment for use in energy production. For the three and nine month periods ended September 30, 2018, the pulp segment sold $163 and $1,073 , respectively of residual fuel to the wood products segment (2017 - $1,056 and $1,056 ) and the wood products segment sold $3,764 and $13,809 , respectively of residual fiber to the pulp segment (2017 - $5,753 and $8,739 ). As at December 31, 2017, the Company had total assets of $1,253,545 in the pulp segment, $116,320 in the wood products segment and $354,845 in corporate and other. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Financial Instruments and Fair Value Measurement 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 senior notes classified as Level 2 was 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 September 30, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 57,310 $ — $ 57,310 Senior notes — 653,656 — 653,656 $ — $ 710,966 $ — $ 710,966 Fair value measurements as at December 31, 2017 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 25,185 $ — $ 25,185 Senior notes — 989,125 — 989,125 $ — $ 1,014,310 $ — $ 1,014,310 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, lumber and other wood residuals is managed through setting credit limits, the purchase of credit insurance and for certain customers a letter of credit is received prior to shipping the product. Concentrations of credit risk on the sale of pulp, lumber and other wood residuals are with customers and agents based primarily in Germany, China and Italy. The carrying amount of cash and cash equivalents of $242,185 and accounts receivable of $193,648 recorded in the Interim Consolidated Balance Sheet, net of any allowances for losses, represents the Company’s maximum exposure to credit risk. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies (a) The Company is involved in legal actions and claims arising in the ordinary course of business. While the outcome of any legal actions and claims cannot be predicted with certainty, it is the opinion of management that the outcome of any such claims which are pending or threatened, either individually or on a combined basis, will not have a material adverse effect on the consolidated financial condition, results of operations or liquidity of the Company. (b) The Company is subject to regulations that require the handling and disposal of asbestos in a prescribed manner if a property undergoes a major renovation or demolition. Otherwise, the Company is not required to remove asbestos from its facilities. Generally asbestos is found on steam and condensate piping systems as well as certain cladding on buildings and in building insulation throughout older facilities. The Company’s obligation for the proper removal and disposal of asbestos products from the Company’s mills is a conditional asset retirement obligation. As a result of the longevity of the Company’s mills, due in part to the maintenance procedures and the fact that the Company does not have plans for major changes that require the removal of asbestos, the timing of the asbestos removal is indeterminate. As a result, the Company is currently unable to reasonably estimate the fair value of its asbestos removal and disposal obligation. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. (c) In March 2018, the Company announced it had received the decision of the tribunal in respect of its previously initiated claim in January 2012 against the Government of Canada under the North American Free Trade Agreement (“NAFTA”). The basis of the claim was that the Celgar mill had received discriminatory treatment regarding its ability to purchase and sell energy compared to other pulp mills and entities that generate and sell electricity within the Province of British Columbia. The tribunal ruled that there was no violation of NAFTA and as is customary in these matters, the tribunal awarded costs to the Government of Canada of approximately $6,951 . |
The Company And Summary Of Si_2
The Company And Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally this occurs with the transfer of control of the products sold. Transfer of control to the customer is based on the standardized shipping terms in the contract as this determines when the Company has the right to payment, the customer has legal title to the asset and the customer has the risks of ownership. Payment terms are defined in the contract and payment is typically due within three months after control has transferred to the customer. The contracts do not have a significant financing component. The Company has elected to exclude value added, sales and other taxes it collects concurrent with revenue-producing activities from revenues. The Company may arrange shipping and handling activities as part of the sale of its products. The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the product as a fulfillment cost rather than as an additional promised service. The following is a description of the principal activities from which the Company generates its revenues. For a breakdown of revenues by product and geographic location see the Business Segment Information Note. Pulp and Lumber Revenues For European sales sent by truck or train from the mills directly to the customer, the contracted sales terms are such that control transfers once the truck or train leaves the mill. For orders sent by ocean freighter, the contract terms state that control transfers at the time the product passes the ships rail. For North American sales shipped by truck or train, the contracts state that control transfers once the truck or train has arrived at the customer’s specified location. The transaction price is included in the sales contract and is net of customer discounts, rebates and other selling concessions. The Company’s pulp sales are to tissue and paper producers and the Company’s lumber sales are to manufacturers and retailers. The Company’s sales to Europe and North America are direct to the customer. The Company's pulp sales to overseas customers are primarily through third party sales agents and the Company's lumber sales to overseas customers are either direct to the customer or through third party sales agents. By-Product Revenues Energy sales are to utility companies in Canada and Germany. Sales of energy are recognized as the electricity is consumed by the customer and is based on contractual usage rates and meter readings that measure electricity consumption. Chemicals and wood residuals are sold into the European market direct to the customer and hav e shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. |
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 the NASDAQ Global Market. The Interim Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The 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 unaudited Interim Consolidated Financial Statements should be read together with the audited Consolidated Financial Statements and accompanying notes included in the Company’s latest Annual Report on Form 10‑K for the fiscal year ended December 31, 2017. 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. In these Interim Consolidated Financial Statements, unless otherwise indicated, all amounts are expressed in United States dollars (“U.S. dollars” or “$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars |
Use of Estimates | Use of Estimates Preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant management judgment is required in determining the accounting for, among other things, pension and other post-retirement benefit obligations, deferred income taxes (valuation allowance and permanent reinvestment), depreciation and amortization, future cash flows associated with impairment testing for long-lived assets, the allocation of the purchase price in a business combination to the assets acquired and liabilities assumed, legal liabilities and contingencies. Actual results could differ materially from these estimates, and changes in these estimates are recorded when known. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Implemented In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue Recognition – Revenue from Contracts with Customers 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. Additionally, the update provides presentation and disclosure requirements which are more detailed in regards to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted ASU 2014-09 as at January 1, 2018 using the modified retrospective method. This update does not change the timing of when the Company recognizes revenue as the majority of the Company's revenue arises from contracts with customers in which the sale of goods is the main performance obligation. The Company's revised revenue recognition disclosure has been included in the Significant Accounting Policies and the Business Segment Information Note. In March 2017, the FASB issued Accounting Standards Update 2017-07 ("ASU 2017-07"), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 as at January 1, 2018. For the three and nine month periods ended September 30, 2018, $282 and $864 of the net benefit cost, respectively, has been recorded in other income (expenses) in the Interim Consolidated Statement of Operations. For the three and nine month periods ended September 30, 2017, $373 and $1,109 , respectively, has been reclassified from operating costs, excluding depreciation and amortization to other income (expenses) in the Interim Consolidated Statement of Operations. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (the “Act”). The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company has elected to treat any potential GILTI inclusions as a period cost. Accounting Pronouncements Not Yet Implemented In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases ("ASU 2016-02") which requires lessees to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and liability. In July 2018 the FASB issued Accounting Standards Update 2018-10 , Codification Improvements to Topic 842, Leases as well as Accounting Standards Update 2018-11, Leases: Targeted Improvements which further affect the guidance of ASU 2016-02. These updates are effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted at the beginning of an interim or annual reporting period. The Company will adopt these updates on January 1, 2019. Currently, the Company believes these updates will not have a material impact on its consolidated financial statements. In February 2018, the FASB issued Accounting Standards Update 2018-02, Income Statement - Reporting Comprehensive Income which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Act. This update is effective for fiscal years beginning after December 15, 2018, and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Act is recognized. The Company believes this update will not have an impact on its consolidated financial statements. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting which both clarifies and modifies accounting requirements relating to nonemployee share based payment transactions. The Company believes this update will not have an impact on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement ("ASU 2018-13") which both modifies and clarifies the disclosure requirements for fair value measurement. This update is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2018-13 will have on its consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General ("ASU 2018-14") which both modifies and clarifies certain disclosure requirements for defined benefit pension and post-retirement plans. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact the adoption of ASU 2018-14 will have on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Components of Inventory | September 30, December 31, 2018 2017 Raw materials $ 98,623 $ 49,137 Finished goods 63,054 58,364 Spare parts and other 68,107 69,100 $ 229,784 $ 176,601 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | September 30, December 31, 2018 2017 Trade payables $ 46,529 $ 36,151 Accrued expenses 81,502 67,528 Interest payable 9,025 10,093 Income tax payable 14,864 4,324 Legal cost award payable (Note 11(c)) 6,951 — Dividends payable 8,150 8,126 Other 6,763 7,335 $ 173,784 $ 133,557 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | September 30, December 31, 2018 2017 2022 Senior Notes, principal amount, $100,000 (a) $ 98,849 $ 394,565 2024 Senior Notes, principal amount, $250,000 (a) 245,965 245,398 2026 Senior Notes, principal amount, $300,000 (a) 294,395 293,773 Revolving credit facilities €75.0 million (b) — — C$40.0 million (c) — — €70.0 million (d) 42,252 25,185 €5.0 million (e) — — €25.0 million (f) 15,058 — $ 696,519 $ 958,921 (a) On December 20, 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 ("2026 Senior Notes"). The 2026 Senior Notes were issued at a price of 100.00% of their principal amount. The net proceeds of the offering were $293,795 , after deducting the underwriter's discount and offering expenses. In January 2018, the Company used the net proceeds, together with cash on hand, to redeem $300,000 in aggregate principal amount of 2022 Senior Notes (herein defined below). In connection with this redemption the Company recorded a loss on settlement of debt of $21,515 in the Interim Consolidated Statement of Operations. As at December 31, 2017, the total cash used to redeem the 2022 Senior Notes was classified as restricted cash and the carrying value of the 2022 Senior Notes was classified as a current liability in the Consolidated Balance Sheet. On February 3, 2017, the Company issued $225,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (“2024 Senior Notes”) and on March 16, 2017, the Company issued an additional $25,000 in aggregate principal amount of its 2024 Senior Notes. The 2024 Senior Notes were issued at a price of 100.00% of their principal amount. The net proceeds of the offerings were $244,711 , after deducting the underwriter's discount and offering expenses. The net proceeds from the 2024 Senior Notes, together with cash on hand, were used to redeem $227,000 of remaining aggregate principal amount of outstanding senior notes due 2019, to finance the acquisition of a German sawmill and bio-mass power plant near Friesau Germany (the "Friesau Facility") and for general working capital purposes. In connection with the redemption the Company recorded a loss on settlement of debt of $10,696 in the Interim Consolidated Statement of Operations. On November 26, 2014, the Company issued $400,000 in aggregate principal amount of 7.75% senior notes which mature on December 1, 2022 (“2022 Senior Notes” and collectively with the 2024 Senior Notes and 2026 Senior Notes, the “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 2026 Senior Notes, upon not less than 10 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 Company may redeem all or a part of the 2024 Senior Notes or 2022 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 2026 Senior Notes redemption prices are equal to 102.750% for the twelve month period beginning on January 15, 2021, 101.375% for the twelve month period beginning on January 15, 2022, and 100.000% beginning on January 15, 2023 and at any time thereafter. The 2024 Senior Notes redemption prices are equal to 103.250% for the twelve month period beginning on February 1, 2020, 101.625% for the twelve month period beginning on February 1, 2021, and 100.000% beginning on February 1, 2022 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 100.000% beginning on December 1, 2020 and at any time thereafter. (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 September 30, 2018 , approximately €0.1 million ( $151 ) of this facility was supporting bank guarantees leaving approximately €74.9 million ( $86,669 ) available. (c) A C$40.0 million revolving credit facility at the Celgar mill that matures in July 2023. Borrowings under the facility are collateralized by the mill’s inventory, accounts receivable, general intangibles and capital assets and are restricted by a borrowing base calculated on the mill’s inventory and accounts receivable. When the borrowing capacity is less than 25% of the total facility the Canadian dollar denominated amounts bear interest at bankers acceptance plus 1.50% or Canadian prime and the U.S. dollar denominated amounts bear interest at LIBOR plus 1.50% or U.S. base . When the borrowing capacity is greater than or equal to 25% of the total facility, the respective bankers acceptance or LIBOR margins are reduced by 0.25% and the Canadian Prime or U.S. base margins are reduced by 0.125% . As at September 30, 2018 , approximately C$1.7 million ( $1,312 ) was supporting letters of credit and approximately C$38.3 million ( $29,587 ) was available. (d) A €70.0 million joint revolving credit facility that matures in April 2022. The Rosenthal mill has full access to the available amount under the facility and the Company's wholly owned subsidiary, Mercer Timber Products GmbH has access to a maximum of €45.0 million . Borrowings under the facility are collateralized by the borrowers' inventory and accounts receivable and bear interest at Euribor plus 2.95% . As at September 30, 2018 , approximately €36.5 million ( $42,252 ) of this facility was drawn and accruing interest at a rate of 2.95% and approximately €11.4 million ( $13,210 ) of this facility was supporting bank guarantees leaving approximately €22.1 million ( $25,570 ) 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 September 30, 2018 approximately €2.6 million ( $2,954 ) of this facility was supporting bank guarantees leaving approximately €2.4 million ( $2,834 ) available. (f) A €25.0 million revolving credit facility for the Company's wholly owned German subsidiary, Mercer Holz GmbH (“Mercer Holz”), that matures in February 2020. Borrowings under this facility bear interest at Euribor plus 3.30% and are secured by Mercer Holz's inventory and accounts receivable. As at September 30, 2018 , approximately €13.0 million ( $15,058 ) of this facility was drawn and accruing interest at a rate of 3.30% and approximately €0.3 million ( $370 ) of this facility was supporting bank guarantees leaving approximately €11.7 million ( $13,512 ) available. |
Principal Maturities Of Debt | As at September 30, 2018 , the maturities of the principal portion of debt are as follows: 2018 $ — 2019 — 2020 15,058 2021 — 2022 142,252 Thereafter 550,000 $ 707,310 |
Pension And Other Post-Retire_2
Pension And Other Post-Retirement Benefit Obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of the net benefit costs relating to the Celgar Defined Benefit Plans for the three and nine month periods ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 2017 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 26 $ 115 $ 25 $ 151 Interest cost 312 175 346 245 Expected return on plan assets (380 ) — (520 ) — Amortization of unrecognized items 226 (51 ) 265 37 Net benefit costs $ 184 $ 239 $ 116 $ 433 Nine Months Ended September 30, 2018 2017 Pension Other Post-Retirement Benefits Pension Other Post-Retirement Benefits Service cost $ 78 $ 352 $ 71 $ 435 Interest cost 952 535 998 706 Expected return on plan assets (1,157 ) — (1,499 ) — Amortization of unrecognized items 690 (156 ) 792 112 Net benefit costs $ 563 $ 731 $ 362 $ 1,253 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Effective Tax Rate | The income tax provision attributable to income before provision for income taxes in the Interim Consolidated Statements of Operations differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% (2017 - 35%) for the three and nine month periods ended September 30, 2018 and 2017 as a result of the following: Three Months Ended Nine Months Ended 2018 2017 2018 2017 U.S. federal statutory rate 21% 35% 21% 35% U.S. federal statutory rate on income before provision for income taxes $ (10,785 ) $ (9,722 ) $ (23,479 ) $ (17,732 ) Tax differential on foreign income (4,265 ) 2,701 (11,493 ) 5,668 Effect of foreign earnings (19,983 ) — (28,440 ) — Change in undistributed earnings — (450 ) — (5,915 ) Valuation allowance 23,492 (1,823 ) 45,510 (11,177 ) Tax benefit of partnership structure 965 1,246 3,242 3,692 Non-taxable foreign subsidies 716 608 2,204 1,717 True-up of prior year taxes 109 (169 ) (14,384 ) (279 ) Foreign exchange on valuation allowance (30 ) 1,241 (704 ) 2,404 Foreign exchange on settlement of debt — — — 550 Other (401 ) (264 ) (680 ) (825 ) $ (10,182 ) $ (6,632 ) $ (28,224 ) $ (21,897 ) Comprised of: Current income tax provision $ (8,868 ) $ (2,448 ) $ (20,894 ) $ (9,308 ) Deferred income tax provision (1,314 ) (4,184 ) (7,330 ) (12,589 ) $ (10,182 ) $ (6,632 ) $ (28,224 ) $ (21,897 ) |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income Basic and diluted $ 41,176 $ 21,143 $ 83,580 $ 28,765 Net income per common share Basic $ 0.63 $ 0.33 $ 1.28 $ 0.44 Diluted $ 0.63 $ 0.32 $ 1.27 $ 0.44 Weighted average number of common shares outstanding: Basic (1) 65,170,531 64,973,653 65,120,976 64,896,511 Effect of dilutive shares: Performance Share Units (“PSUs”) 639,998 412,995 550,983 429,801 Restricted shares 7,510 7,268 20,328 17,447 Diluted 65,818,039 65,393,916 65,692,287 65,343,759 (1) For the three and nine month periods ended September 30, 2018 , the basic weighted average number of common shares outstanding excludes 31,130 restricted shares which have been issued, but have not vested as at September 30, 2018 ( 2017 – 43,635 restricted shares). |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post-Retirement Benefit Items Unrealized Gains / Losses on Marketable Securities Total Balance as at January 1, 2018 $ (50,083 ) $ (8,900 ) $ (18 ) $ (59,001 ) Other comprehensive income (loss) before reclassifications (41,503 ) (1,836 ) 26 (43,313 ) Amounts reclassified from accumulated other comprehensive loss — 534 — 534 Other comprehensive income (loss) (41,503 ) (1,302 ) 26 (42,779 ) Balance as at September 30, 2018 $ (91,586 ) $ (10,202 ) $ 8 $ (101,780 ) |
Summary of Dividends Declared | During the nine month period ended September 30, 2018, the Company's Board of Directors declared the following quarterly dividends: Date Declared Dividend Per Amount February 15, 2018 $ 0.125 $ 8,147 May 3, 2018 0.125 8,150 July 26, 2018 0.125 8,150 $ 0.375 $ 24,447 |
Performance Share Units [Member] | |
Stockholders' Equity Note [Abstract] | |
Summary Of Share Based Compensation Arrangement Activity | The following table summarizes PSU activity during the period: Number of PSUs Outstanding as at January 1, 2018 1,867,158 Granted 652,548 Vested and issued (153,243 ) Forfeited (330,455 ) Outstanding as at September 30, 2018 2,036,008 |
Restricted Stock [Member] | |
Stockholders' Equity Note [Abstract] | |
Summary Of Share Based Compensation Arrangement Activity | The following table summarizes restricted share activity during the period: Number of Restricted Shares Outstanding as at January 1, 2018 43,635 Granted 31,130 Vested (43,635 ) Outstanding as at September 30, 2018 31,130 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables shows information by reportable business segments for the three and nine month periods ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 292,969 $ 38,089 $ — $ 331,058 Operating income (loss) $ 68,794 $ (1,770 ) $ (3,678 ) $ 63,346 Depreciation and amortization $ 20,802 $ 2,395 $ 113 $ 23,310 Revenues by major products Pulp $ 274,970 $ — $ — $ 274,970 Lumber — 34,270 — 34,270 Energy and chemicals 17,999 1,978 — 19,977 Wood residuals — 1,841 — 1,841 Total revenues $ 292,969 $ 38,089 $ — $ 331,058 Revenues by geographical markets U.S. $ 7,148 $ 10,857 $ — $ 18,005 Germany 132,233 14,771 — 147,004 China 44,981 — — 44,981 Other countries 108,607 12,461 — 121,068 Total revenues $ 292,969 $ 38,089 $ — $ 331,058 Three Months Ended September 30, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 272,358 $ 33,140 $ — $ 305,498 Operating income (loss) $ 40,982 $ 2,983 $ (2,303 ) $ 41,662 Depreciation and amortization $ 21,149 $ 1,419 $ 105 $ 22,673 Revenues by major products Pulp $ 247,314 $ — $ — $ 247,314 Lumber — 27,851 — 27,851 Energy and chemicals 25,044 3,116 — 28,160 Wood residuals — 2,173 — 2,173 Total revenues $ 272,358 $ 33,140 $ — $ 305,498 Revenues by geographical markets U.S. $ 12,276 $ 3,458 $ — $ 15,734 Germany 112,267 18,676 — 130,943 China 60,604 — — 60,604 Other countries 87,211 11,006 — 98,217 Total revenues $ 272,358 $ 33,140 $ — $ 305,498 Nine Months Ended September 30, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 898,836 $ 146,657 $ — $ 1,045,493 Operating income (loss) $ 179,824 $ 5,534 $ (8,488 ) $ 176,870 Depreciation and amortization $ 63,452 $ 5,860 $ 331 $ 69,643 Total assets $ 1,343,035 $ 133,215 $ 65,046 $ 1,541,296 Revenues by major products Pulp $ 845,460 $ — $ — $ 845,460 Lumber — 131,429 — 131,429 Energy and chemicals 53,376 8,014 — 61,390 Wood residuals — 7,214 — 7,214 Total revenues $ 898,836 $ 146,657 $ — $ 1,045,493 Revenues by geographical markets U.S. $ 18,451 $ 42,511 $ — $ 60,962 Germany 373,176 58,631 — 431,807 China 204,818 — — 204,818 Other countries 302,391 45,515 — 347,906 Total revenues $ 898,836 $ 146,657 $ — $ 1,045,493 Nine Months Ended September 30, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 781,028 $ 50,431 $ — $ 831,459 Operating income (loss) $ 104,411 $ 3,064 $ (5,604 ) $ 101,871 Depreciation and amortization $ 59,652 $ 2,553 $ 314 $ 62,519 Revenues by major products Pulp $ 712,810 $ — $ — $ 712,810 Lumber — 41,444 — 41,444 Energy and chemicals 68,218 5,761 — 73,979 Wood residuals — 3,226 — 3,226 Total revenues $ 781,028 $ 50,431 $ — $ 831,459 Revenues by geographical markets U.S. $ 23,394 $ 3,458 $ — $ 26,852 Germany 313,730 30,312 — 344,042 China 194,280 — — 194,280 Other countries 249,624 16,661 — 266,285 Total revenues $ 781,028 $ 50,431 $ — $ 831,459 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 57,310 $ — $ 57,310 Senior notes — 653,656 — 653,656 $ — $ 710,966 $ — $ 710,966 Fair value measurements as at December 31, 2017 using: Description Level 1 Level 2 Level 3 Total Revolving credit facilities $ — $ 25,185 $ — $ 25,185 Senior notes — 989,125 — 989,125 $ — $ 1,014,310 $ — $ 1,014,310 |
The Company And Summary Of Si_3
The Company And Summary Of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Line Items] | ||||
ASU2017-07 Reclassification to other income | $ 282 | $ 373 | $ 864 | $ 1,109 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Oct. 18, 2018 | Oct. 03, 2018 |
DMI [Domain] | ||
Subsequent Events [Line Items] | ||
Business Combination, Consideration Transferred | $ 359,200,000 | |
Period After Which Termination of Purchase Agreement Is Allowable | 120 days | |
Potential financing available per commitment letter | $ 350,000,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Working Capital | $ 85,700,000 | |
DMI - Peace River [Domain] | ||
Subsequent Events [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |
DMI - Quesnel [Domain] | ||
Subsequent Events [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |
Santanol Group [Member] | ||
Subsequent Events [Line Items] | ||
Business Combination, Consideration Transferred | $ 33,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 98,623 | $ 49,137 |
Finished goods | 63,054 | 58,364 |
Spare parts and other | 68,107 | 69,100 |
Inventories | $ 229,784 | $ 176,601 |
Accounts Payable and Other (Det
Accounts Payable and Other (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 46,529 | $ 36,151 |
Accrued expenses | 81,502 | 67,528 |
Interest payable | 9,025 | 10,093 |
Income tax payable | 14,864 | 4,324 |
Legal cost award payable (Note 11(c)) | 6,951 | 0 |
Dividends payable | 8,150 | 8,126 |
Other | 6,763 | 7,335 |
Accounts payable and other | $ 173,784 | $ 133,557 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) | Sep. 30, 2018CAD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 20, 2017USD ($) | Nov. 26, 2014USD ($) |
Debt Instrument [Line Items] | ||||||
Total debt | $ 696,519,000 | $ 958,921,000 | ||||
2022 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 98,849,000 | 394,565,000 | ||||
Debt, face amount | 100,000,000 | $ 400,000,000 | ||||
2024 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 245,965,000 | 245,398,000 | ||||
Debt, face amount | 250,000,000 | |||||
2026 Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 294,395,000 | 293,773,000 | $ 293,795,000 | |||
Debt, face amount | 300,000,000 | $ 300,000,000 | ||||
Stendal Credit Facility - EUR 75.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 0 | 0 | ||||
Line of credit, maximum borrowing capacity | € | € 75,000,000 | |||||
Celgar Credit Facility - C$40.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 0 | 0 | ||||
Line of credit, maximum borrowing capacity | $ 40,000,000 | |||||
Rosenthal Credit Facility - EUR 70.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 36,500,000 | 42,252,000 | 25,185,000 | |||
Line of credit, maximum borrowing capacity | € | 70,000,000 | |||||
Rosenthal Credit Facility - EUR 5.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 0 | 0 | ||||
Line of credit, maximum borrowing capacity | € | 5,000,000 | |||||
Wood Procurement - EUR 25.0 Million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Total debt | 13,000,000 | $ 15,058,000 | $ 0 | |||
Line of credit, maximum borrowing capacity | € | € 25,000,000 |
Debt (Schedule of Debt Footnote
Debt (Schedule of Debt Footnotes) (Details) | Jan. 05, 2018USD ($) | Dec. 20, 2017USD ($) | Feb. 03, 2017USD ($) | Nov. 26, 2014USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018CAD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 16, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Debt | $ 696,519,000 | $ 958,921,000 | |||||||||||
Loss on settlement of debt | $ 0 | $ 0 | $ 21,515,000 | $ 10,696,000 | |||||||||
2019 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, repurchase amount | $ 227,000,000 | ||||||||||||
Loss on settlement of debt | $ 10,696,000 | ||||||||||||
2022 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Maturity Date | Dec. 1, 2022 | ||||||||||||
Debt, face amount | $ 400,000,000 | 100,000,000 | |||||||||||
Debt, interest rate | 7.75% | ||||||||||||
Debt | 98,849,000 | 394,565,000 | |||||||||||
Debt, repurchase amount | $ 300,000,000 | ||||||||||||
Loss on settlement of debt | $ 21,515,000 | ||||||||||||
2024 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Maturity Date | Feb. 1, 2024 | ||||||||||||
Debt, face amount | $ 225,000,000 | $ 25,000,000 | |||||||||||
Debt, interest rate | 6.50% | ||||||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||||||
Debt | $ 244,711,000 | ||||||||||||
2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Maturity Date | Jan. 15, 2026 | ||||||||||||
Debt, face amount | $ 300,000,000 | 300,000,000 | |||||||||||
Debt, interest rate | 5.50% | ||||||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||||||
Debt | $ 293,795,000 | 294,395,000 | 293,773,000 | ||||||||||
Senior Notes, redemption notice minimum days | 10 days | ||||||||||||
Senior Notes, redemption notice maximum days | 60 days | ||||||||||||
Senior Notes 2022 and 2024 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior Notes, redemption notice minimum days | 30 days | ||||||||||||
Senior Notes, redemption notice maximum days | 60 days | ||||||||||||
Stendal Credit Facility - EUR 75.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | 0 | 0 | |||||||||||
Debt, variable basis spread | 3.50% | ||||||||||||
Line of credit, maximum borrowing capacity | € | € 75,000,000 | ||||||||||||
Line of credit, remaining borrowing capacity | 74,869,210 | 86,669,000 | |||||||||||
Debt, description of variable basis spread | Euribor | ||||||||||||
Debt, amount of debt supporting bank guarantees | 100,000 | 151,000 | |||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Required available borrowing capacity | 25.00% | ||||||||||||
Debt | 0 | 0 | |||||||||||
Line of credit, maximum borrowing capacity | $ 40,000,000 | ||||||||||||
Line of credit, letters of credit outstanding, amount | 1,700,000 | 1,312,000 | |||||||||||
Line of credit, remaining borrowing capacity | $ 38,300,000 | 29,587,000 | |||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Debt, description of variable basis spread | bankers acceptance | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | Canadian prime | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | US Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, variable basis spread | 1.50% | ||||||||||||
Debt, description of variable basis spread | LIBOR | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | US Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, description of variable basis spread | U.S. base | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian & US Dollar Borrowings Rate Option 1 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | ||||||||||||
Celgar Credit Facility - C$40.0 Million [Member] | Canadian & US Dollar Borrowings Rate Option 2 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.125% | ||||||||||||
Rosenthal Credit Facility - EUR 5.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt | 0 | 0 | |||||||||||
Debt, variable basis spread | 2.50% | ||||||||||||
Line of credit, maximum borrowing capacity | € | 5,000,000 | ||||||||||||
Line of credit, remaining borrowing capacity | 2,400,000 | 2,834,000 | |||||||||||
Debt, description of variable basis spread | three-month Euribor | ||||||||||||
Debt, amount of debt supporting bank guarantees | € 2,600,000 | $ 2,954,000 | |||||||||||
Rosenthal Credit Facility - EUR 70.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 2.95% | 2.95% | 2.95% | ||||||||||
Debt | € 36,500,000 | $ 42,252,000 | 25,185,000 | ||||||||||
Debt, variable basis spread | 2.95% | ||||||||||||
Line of credit, maximum borrowing capacity | € | 70,000,000 | ||||||||||||
Line of credit, remaining borrowing capacity | 22,100,000 | 25,570,000 | |||||||||||
Debt, description of variable basis spread | Euribor | ||||||||||||
Debt, amount of debt supporting bank guarantees | € 11,400,000 | $ 13,210,000 | |||||||||||
Wood Procurement - EUR 25.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, interest rate | 3.30% | 3.30% | 3.30% | ||||||||||
Debt | € 13,000,000 | $ 15,058,000 | $ 0 | ||||||||||
Debt, variable basis spread | 3.30% | ||||||||||||
Line of credit, maximum borrowing capacity | € | 25,000,000 | ||||||||||||
Line of credit, remaining borrowing capacity | 11,700,000 | 13,512,000 | |||||||||||
Debt, description of variable basis spread | Euribor | ||||||||||||
Debt, amount of debt supporting bank guarantees | 300,000 | $ 370,000 | |||||||||||
Twelve month period beginning December 1, 2017 [Member] | 2022 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 105.813% | ||||||||||||
Twelve month period beginning December 1, 2018 [Member] | 2022 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 103.875% | ||||||||||||
Twelve month period beginning December 1, 2019 [Member] | 2022 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 101.938% | ||||||||||||
Twelve month period beginning December 1, 2020 and at any time thereafter [Member] | 2022 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 100.00% | ||||||||||||
Twelve month period beginning February 1, 2020 [Member] | 2024 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 103.25% | ||||||||||||
Twelve month period beginning February 1, 2021 [Member] | 2024 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 101.625% | ||||||||||||
Twelve month period beginning February 1, 2022 [Member] | 2024 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 100.00% | ||||||||||||
Twelve month period beginning January 15, 2021 [Member] | 2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 102.75% | ||||||||||||
Twelve month period beginning January 15, 2022 [Member] | 2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 101.375% | ||||||||||||
Twelve month period beginning January 15, 2023 [Member] | 2026 Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, redemption price, percentage | 100.00% | ||||||||||||
Mercer Timber [Member] | Rosenthal Credit Facility - EUR 70.0 Million [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, maximum borrowing capacity | € | € 45,000,000 |
Debt (Principal Maturities Of D
Debt (Principal Maturities Of Debt) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 0 |
2,019 | 0 |
2,020 | 15,058 |
2,021 | 0 |
2,022 | 142,252 |
Thereafter | 550,000 |
Total debt | $ 707,310 |
Pension And Other Post-Retire_3
Pension And Other Post-Retirement Benefit Obligations (Plan Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 26 | $ 25 | $ 78 | $ 71 |
Interest cost | 312 | 346 | 952 | 998 |
Expected return on plan assets | (380) | (520) | (1,157) | (1,499) |
Amortization of unrecognized items | 226 | 265 | 690 | 792 |
Net benefit costs | 184 | 116 | 563 | 362 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 115 | 151 | 352 | 435 |
Interest cost | 175 | 245 | 535 | 706 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized items | (51) | 37 | (156) | 112 |
Net benefit costs | $ 239 | $ 433 | $ 731 | $ 1,253 |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations Pension and Other Post-Retirement Benefit Obligations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Contributions | $ 215 | $ 213 | $ 650 | $ 672 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Multiemployer Plan, Contributions by Employer | $ 529 | $ 493 | $ 1,674 | $ 1,539 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
U.S. Federal statutory rate | 21.00% | 35.00% | 21.00% | 35.00% |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal statutory rate | 21.00% | 35.00% | 21.00% | 35.00% |
U.S. Federal statutory rate on income before provision for income taxes | $ (10,785) | $ (9,722) | $ (23,479) | $ (17,732) |
Tax differential on foreign income | (4,265) | 2,701 | (11,493) | 5,668 |
Effect of foreign earnings | (19,983) | 0 | (28,440) | 0 |
Change in undistributed earnings | 0 | (450) | 0 | (5,915) |
Valuation Allowance | 23,492 | (1,823) | 45,510 | (11,177) |
Tax benefit of partnership structure | 965 | 1,246 | 3,242 | 3,692 |
Non-taxable foreign subsidies | 716 | 608 | 2,204 | 1,717 |
True-up of prior year taxes | 109 | (169) | (14,384) | (279) |
Foreign exchange on valuation allowance | 30 | (1,241) | 704 | (2,404) |
Foreign exchange on settlement of debt | 0 | 0 | 0 | (550) |
Other | (401) | (264) | (680) | (825) |
Provision for income taxes | (10,182) | (6,632) | (28,224) | (21,897) |
Current income tax provision | (8,868) | (2,448) | (20,894) | (9,308) |
Deferred income tax provision | $ (1,314) | $ (4,184) | $ (7,330) | $ (12,589) |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Net income - basic and diluted | $ 41,176 | $ 21,143 | $ 83,580 | $ 28,765 |
Net income per common share, basic | $ 0.63 | $ 0.33 | $ 1.28 | $ 0.44 |
Net income per common share, diluted | $ 0.63 | $ 0.32 | $ 1.27 | $ 0.44 |
Weighted Average Number of Shares Outstanding, Basic | 65,170,531 | 64,973,653 | 65,120,976 | 64,896,511 |
Weighted Average Number of Shares Outstanding, Diluted | 65,818,039 | 65,393,916 | 65,692,287 | 65,343,759 |
Performance Share Units [Member] | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments | 639,998 | 412,995 | 550,983 | 429,801 |
Restricted Stock [Member] | ||||
Net Income Per Common Share Basic And Diluted [Line Items] | ||||
Effect of dilutive instruments | 7,510 | 7,268 | 20,328 | 17,447 |
Contingently issuable shares excluded from the basic weighted average shares outstanding | 31,130 | 43,635 | 31,130 | 43,635 |
Net Income Per Share Attributab
Net Income Per Share Attributable to Common Shareholders (Anti-dilutive Instruments) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares available for grant | 2,800,000 | 2,800,000 | |||
Restricted Stock Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | ||||
Shares outstanding | 0 | 0 | |||
Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 652,548 | ||||
Shares outstanding | 2,036,008 | 2,036,008 | 1,867,158 | ||
Vesting period | 3 years | ||||
Expense recognized | $ 840 | $ 646 | $ 2,534 | $ 1,201 | |
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | ||||
Shares outstanding | 0 | 0 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 31,130 | ||||
Shares outstanding | 31,130 | 31,130 | 43,635 | ||
Vesting period | 1 year | ||||
Expense recognized | $ 130 | $ 128 | $ 388 | $ 324 | |
Unrecognized compensation cost | $ 347 | $ 347 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | ||||
Shares outstanding | 0 | 0 | |||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | ||||
Shares outstanding | 0 | 0 |
Shareholders' Equity (Summary o
Shareholders' Equity (Summary of Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 25, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Dividends Payable [Line Items] | |||||||
Dividends declared per common share | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.115 | $ 0.375 | $ 0.345 | |
Dividends Payable, Date Declared | Jul. 26, 2018 | May 3, 2018 | Feb. 15, 2018 | ||||
Dividends, Common Stock, Cash | $ 8,150 | $ 8,150 | $ 8,147 | $ 24,447 | |||
Dividend Declared [Member] | Subsequent Event [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividends declared per common share | $ 0.125 | ||||||
Dividends Payable, Date of Record | Dec. 13, 2018 | ||||||
Dividends Payable, Date to be Paid | Dec. 20, 2018 |
Shareholders' Equity (Summary_2
Shareholders' Equity (Summary Of Share Activity - PSU's) (Details) - Performance Share Units [Member] | 9 Months Ended |
Sep. 30, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding - Beginning | 1,867,158 |
Granted | 652,548 |
Vested and issued | (153,243) |
Forfeited | (330,455) |
Outstanding - Ending | 2,036,008 |
Shareholders' Equity (Summary_3
Shareholders' Equity (Summary Of Share Activity - Restricted Shares) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding - Beginning | 43,635 |
Granted | 31,130 |
Vested | (43,635) |
Outstanding - Ending | 31,130 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity (Accumulated Other Comprehensive Income) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of period | $ (59,001) |
Other comprehensive income (loss) before reclassifications | (43,313) |
Amounts reclassified from accumulated other comprehensive loss | 534 |
Other comprehensive income (loss), net of taxes | (42,779) |
Balance, end of period | (101,780) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of period | (8,900) |
Other comprehensive income (loss) before reclassifications | (1,836) |
Amounts reclassified from accumulated other comprehensive loss | 534 |
Other comprehensive income (loss), net of taxes | (1,302) |
Balance, end of period | (10,202) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of period | (50,083) |
Other comprehensive income (loss) before reclassifications | (41,503) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive income (loss), net of taxes | (41,503) |
Balance, end of period | (91,586) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance, beginning of period | (18) |
Other comprehensive income (loss) before reclassifications | 26 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive income (loss), net of taxes | 26 |
Balance, end of period | $ 8 |
Business Segment Information (S
Business Segment Information (Schedule of Results by Segment) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 331,058,000 | $ 305,498,000 | $ 1,045,493,000 | $ 831,459,000 | |
Operating income (loss) | 63,346,000 | 41,662,000 | 176,870,000 | 101,871,000 | |
Depreciation and amortization | 23,310,000 | 22,673,000 | 69,643,000 | 62,519,000 | |
Purchase of property, plant and equipment | 26,744,000 | 14,342,000 | 71,583,000 | 42,249,000 | |
Assets | 1,541,296,000 | 1,541,296,000 | $ 1,724,710,000 | ||
UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 18,005,000 | 15,734,000 | 60,962,000 | 26,852,000 | |
Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 147,004,000 | 130,943,000 | 431,807,000 | 344,042,000 | |
China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 44,981,000 | 60,604,000 | 204,818,000 | 194,280,000 | |
Other Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 121,068,000 | 98,217,000 | 347,906,000 | 266,285,000 | |
Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 34,270,000 | 27,851,000 | 131,429,000 | 41,444,000 | |
Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,841,000 | 2,173,000 | 7,214,000 | 3,226,000 | |
Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 274,970,000 | 247,314,000 | 845,460,000 | 712,810,000 | |
Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 19,977,000 | 28,160,000 | 61,390,000 | 73,979,000 | |
Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 1,343,035,000 | 1,343,035,000 | |||
Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 133,215,000 | 133,215,000 | |||
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 65,046,000 | 65,046,000 | |||
Operating Segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 292,969,000 | 272,358,000 | 898,836,000 | 781,028,000 | |
Operating income (loss) | 68,794,000 | 40,982,000 | 179,824,000 | 104,411,000 | |
Depreciation and amortization | 20,802,000 | 21,149,000 | 63,452,000 | 59,652,000 | |
Assets | 1,253,545,000 | ||||
Operating Segments [Member] | Market Pulp [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,148,000 | 12,276,000 | 18,451,000 | 23,394,000 | |
Operating Segments [Member] | Market Pulp [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 132,233,000 | 112,267,000 | 373,176,000 | 313,730,000 | |
Operating Segments [Member] | Market Pulp [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 44,981,000 | 60,604,000 | 204,818,000 | 194,280,000 | |
Operating Segments [Member] | Market Pulp [Member] | Other Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 108,607,000 | 87,211,000 | 302,391,000 | 249,624,000 | |
Operating Segments [Member] | Market Pulp [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Market Pulp [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Market Pulp [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 274,970,000 | 247,314,000 | 845,460,000 | 712,810,000 | |
Operating Segments [Member] | Market Pulp [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 17,999,000 | 25,044,000 | 53,376,000 | 68,218,000 | |
Operating Segments [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 38,089,000 | 33,140,000 | 146,657,000 | 50,431,000 | |
Operating income (loss) | (1,770,000) | 2,983,000 | 5,534,000 | 3,064,000 | |
Depreciation and amortization | 2,395,000 | 1,419,000 | 5,860,000 | 2,553,000 | |
Assets | 116,320,000 | ||||
Operating Segments [Member] | Wood Products [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 10,857,000 | 3,458,000 | 42,511,000 | 3,458,000 | |
Operating Segments [Member] | Wood Products [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,771,000 | 18,676,000 | 58,631,000 | 30,312,000 | |
Operating Segments [Member] | Wood Products [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Wood Products [Member] | Other Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,461,000 | 11,006,000 | 45,515,000 | 16,661,000 | |
Operating Segments [Member] | Wood Products [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 34,270,000 | 27,851,000 | 131,429,000 | 41,444,000 | |
Operating Segments [Member] | Wood Products [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,841,000 | 2,173,000 | 7,214,000 | 3,226,000 | |
Operating Segments [Member] | Wood Products [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Wood Products [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,978,000 | 3,116,000 | 8,014,000 | 5,761,000 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Operating income (loss) | (3,678,000) | (2,303,000) | (8,488,000) | (5,604,000) | |
Depreciation and amortization | 113,000 | 105,000 | 331,000 | 314,000 | |
Assets | $ 354,845,000 | ||||
Corporate, Non-Segment [Member] | UNITED STATES | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Germany | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | China | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Other Countries [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Lumber [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Wood residuals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Corporate, Non-Segment [Member] | Energy and chemicals [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)mill | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)mill | Sep. 30, 2017USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number Of Pulp Mills | mill | 3 | 3 | ||
Intersegment Eliminations [Member] | Market Pulp [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Intersegment Sales | $ 163 | $ 1,056 | $ 1,073 | $ 1,056 |
Intersegment Eliminations [Member] | Wood Products [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Intersegment Sales | $ 3,764 | $ 5,753 | $ 13,809 | $ 8,739 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 710,966 | $ 1,014,310 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial and Nonfinancial 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] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 710,966 | 1,014,310 |
Fair Value, Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Revolving Credit Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt fair value | 57,310 | 25,185 |
Revolving Credit Facility [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 |
Revolving Credit Facility [Member] | Fair Value, Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt fair value | 57,310 | 25,185 |
Revolving Credit Facility [Member] | Fair Value, Significant unobservable inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt fair value | 0 | 0 |
Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt fair value | 653,656 | 989,125 |
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 | 653,656 | 989,125 |
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 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement Financial Instruments and Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Accounts receivable | $ 193,648 | $ 206,027 |
Cash and Cash Equivalents, at Carrying Value | $ 242,185 | $ 143,299 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies Legal Settlement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Legal cost award | $ 0 | $ 0 | $ 6,951 | $ 0 |