Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | MERCER INTERNATIONAL INC. | ||
Entity Central Index Key | 0001333274 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Trading Symbol | MERC | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 65,629,582 | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity File Number | 000-51826 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 47-0956945 | ||
Entity Address, Address Line One | Suite 1120 | ||
Entity Address, Address Line Two | 700 West Pender Street | ||
Entity Address, City or Town | Vancouver | ||
Entity Address, State or Province | BC | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | V6C 1G8 | ||
City Area Code | 604 | ||
Local Phone Number | 684-1099 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 981.2 | ||
Documents Incorporated by Reference | Certain information that will be contained in the definitive proxy statement for the Registrant’s annual meeting to be held in 2020 is incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,624,411 | $ 1,457,718 | $ 1,169,145 |
Costs and expenses | |||
Cost of sales, excluding depreciation and amortization | 1,340,380 | 1,032,101 | 866,019 |
Cost of sales depreciation and amortization | 125,801 | 96,288 | 84,893 |
Selling, general and administrative expenses | 74,227 | 61,462 | 49,679 |
Operating income | 84,003 | 267,867 | 168,554 |
Other income (expenses) | |||
Interest expense | (75,750) | (51,464) | (54,796) |
Loss on settlement of debt (Note 9(a)) | (4,750) | (21,515) | (10,696) |
Legal cost award | 0 | (6,951) | 0 |
Acquisition commitment fee (Note 2) | 0 | (5,250) | 0 |
Other income (expenses) | 6,084 | (5,417) | 873 |
Total other expenses, net | (74,416) | (90,597) | (64,619) |
Income before provision for income taxes | 9,587 | 177,270 | 103,935 |
Provision for income taxes | (19,226) | (48,681) | (33,452) |
Net income (loss) | $ (9,639) | $ 128,589 | $ 70,483 |
Net income (loss) per common share | |||
Basic | $ (0.15) | $ 1.97 | $ 1.09 |
Diluted | (0.15) | 1.96 | 1.08 |
Dividends declared per common share | $ 0.5375 | $ 0.5000 | $ 0.4700 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ (9,639) | $ 128,589 | $ 70,483 |
Other comprehensive income (loss), net of taxes | |||
Foreign currency translation adjustment | 12,291 | (76,899) | 120,505 |
Change in unrecognized losses and prior service costs related to defined benefit pension plans, net of tax of $901 (2018 – $424 and 2017 – $nil) | (681) | 7,730 | 5,763 |
Other comprehensive income (loss), net of taxes | 11,610 | (69,169) | 126,268 |
Total comprehensive income | $ 1,971 | $ 59,420 | $ 196,751 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Change in unrecognized losses and prior service costs related to defined benefit plan, tax effect | $ 901 | $ 424 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 351,085 | $ 240,491 |
Accounts receivable | 208,740 | 252,692 |
Inventories | 272,599 | 303,813 |
Prepaid expenses and other | 12,273 | 13,703 |
Total current assets | 844,697 | 810,699 |
Property, plant and equipment, net | 1,074,242 | 1,029,257 |
Investment in joint ventures | 53,122 | 62,574 |
Amortizable intangible assets, net | 53,371 | 53,927 |
Operating lease right-of-use assets | 13,004 | |
Other long-term assets | 26,038 | 17,904 |
Deferred income tax | 1,246 | 1,374 |
Total assets | 2,065,720 | 1,975,735 |
Current liabilities | ||
Accounts payable and other | 255,544 | 194,484 |
Pension and other post-retirement benefit obligations | 768 | 904 |
Total current liabilities | 256,312 | 195,388 |
Debt | 1,087,932 | 1,041,389 |
Pension and other post-retirement benefit obligations | 25,489 | 25,829 |
Finance lease liabilities | 31,103 | 24,669 |
Operating lease liabilities | 10,520 | |
Other long-term liabilities | 14,114 | 13,924 |
Deferred income tax | 89,847 | 93,107 |
Total liabilities | 1,515,317 | 1,394,306 |
Shareholders’ equity | ||
Common shares $1 par value; 200,000,000 authorized; 65,629,000 issued and outstanding (2018 – 65,202,000) | 65,598 | 65,171 |
Additional paid-in capital | 344,994 | 342,438 |
Retained earnings | 256,371 | 301,990 |
Accumulated other comprehensive loss | (116,560) | (128,170) |
Total shareholders’ equity | 550,403 | 581,429 |
Total liabilities and shareholders’ equity | 2,065,720 | 1,975,735 |
Commitments and contingencies (Note 18,19) |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 65,629,000 | 65,202,000 |
Common Stock, Shares, Outstanding | 65,629,000 | 65,202,000 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Total shareholders' equity at Dec. 31, 2016 | $ 379,128 | $ 64,656 | $ 333,673 | $ 166,068 | $ (185,269) |
Balance (in shares) at Dec. 31, 2016 | 64,694 | ||||
Shares issued on grants of restricted shares | $ 38 | (38) | |||
Shares issued on grants of restricted shares (in shares) | 43 | ||||
Shares issued on grants of performance share units | $ 280 | (280) | |||
Shares issued on grants of performance share units (in shares) | 280 | ||||
Stock compensation expense | 2,890 | 2,890 | |||
Net income (loss) | 70,483 | 70,483 | |||
Dividends declared | (30,553) | (30,553) | |||
Settlement of short-swing trade profit claim | 2,450 | 2,450 | |||
Other comprehensive income (loss) | 126,268 | 126,268 | |||
Total shareholders' equity at Dec. 31, 2017 | 550,666 | $ 64,974 | 338,695 | 205,998 | (59,001) |
Balance (in shares) at Dec. 31, 2017 | 65,017 | ||||
Shares issued on grants of restricted shares | $ 43 | (43) | |||
Shares issued on grants of restricted shares (in shares) | 31 | ||||
Shares issued on grants of performance share units | $ 154 | (154) | |||
Shares issued on grants of performance share units (in shares) | 154 | ||||
Stock compensation expense | 3,940 | 3,940 | |||
Net income (loss) | 128,589 | 128,589 | |||
Dividends declared | (32,597) | (32,597) | |||
Other comprehensive income (loss) | (69,169) | (69,169) | |||
Total shareholders' equity at Dec. 31, 2018 | $ 581,429 | $ 65,171 | 342,438 | 301,990 | (128,170) |
Balance (in shares) at Dec. 31, 2018 | 65,202 | 65,202 | |||
Shares issued on grants of restricted shares | $ 31 | (31) | |||
Shares issued on grants of restricted shares (in shares) | 31 | ||||
Shares issued on grants of performance share units | $ 449 | (449) | |||
Shares issued on grants of performance share units (in shares) | 449 | ||||
Stock compensation expense | $ 3,036 | 3,036 | |||
Net income (loss) | (9,639) | (9,639) | |||
Dividends declared | (35,279) | (35,279) | |||
Repurchase of common shares | (754) | $ (53) | (701) | ||
Repurchase of common shares (in shares) | (53) | ||||
Other comprehensive income (loss) | 11,610 | 11,610 | |||
Total shareholders' equity at Dec. 31, 2019 | $ 550,403 | $ 65,598 | $ 344,994 | $ 256,371 | $ (116,560) |
Balance (in shares) at Dec. 31, 2019 | 65,629 | 65,629 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from (used in) operating activities | |||
Net income (loss) | $ (9,639) | $ 128,589 | $ 70,483 |
Adjustments to reconcile net income (loss) to cash flows from operating activities | |||
Depreciation and amortization | 126,394 | 96,729 | 85,294 |
Deferred income tax provision (benefit) | (7,873) | 16,596 | 22,056 |
Inventory impairment | 9,200 | ||
Loss on settlement of debt | 4,750 | 21,515 | 10,696 |
Defined benefit pension plans and other post-retirement benefit plan expense | 3,449 | 1,868 | 2,179 |
Stock compensation expense | 3,036 | 3,940 | 2,890 |
Foreign exchange transaction losses (gains) | 7,116 | 746 | (875) |
Other | 5,834 | 2,419 | 3,372 |
Defined benefit pension plans and other post-retirement benefit plan contributions | (4,467) | (1,133) | (2,031) |
Changes in working capital | |||
Accounts receivable | 41,369 | (10,370) | (64,949) |
Inventories | 24,683 | (58,082) | (19,994) |
Accounts payable and accrued expenses | 45,256 | 37,959 | 37,170 |
Other | (4,825) | (4,108) | (4,365) |
Net cash from (used in) operating activities | 244,283 | 236,668 | 141,926 |
Cash flows from (used in) investing activities | |||
Purchase of property, plant and equipment | (132,034) | (87,012) | (57,915) |
Purchase of amortizable intangible assets | (623) | (600) | (1,777) |
Acquisitions (Note 2) | (6,380) | (380,312) | (61,627) |
Other | (321) | 445 | (232) |
Net cash from (used in) investing activities | (139,358) | (467,479) | (121,551) |
Cash flows from (used in) financing activities | |||
Redemption of senior notes | (103,875) | (317,439) | (234,945) |
Proceeds from issuance of senior notes | 205,500 | 350,000 | 550,000 |
Proceeds from (repayment of) revolving credit facilities, net | (58,404) | 36,560 | 22,281 |
Dividend payments | (35,279) | (40,724) | (29,866) |
Payment of interest rate derivative liability | (6,887) | ||
Repurchase of common shares | (754) | ||
Payment of debt issuance costs | (4,213) | (10,074) | (11,620) |
Proceeds from government grants | 6,467 | 600 | |
Other | (3,344) | (3,462) | (812) |
Net cash from (used in) financing activities | 6,098 | 14,861 | 288,751 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (429) | (4,297) | 10,716 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 110,594 | (220,247) | 319,842 |
Cash, cash equivalents and restricted cash, beginning of year | 240,491 | 460,738 | 140,896 |
Cash, cash equivalents and restricted cash, end of year | 351,085 | 240,491 | 460,738 |
Supplemental cash flow disclosure | |||
Cash paid for interest | 59,707 | 40,278 | 45,908 |
Cash paid for income taxes | 52,877 | 16,149 | 10,866 |
Supplemental schedule of non-cash investing and financing activities: | |||
Leased production equipment | $ 8,739 | $ 12,145 | $ 145 |
The Company And Summary Of Sign
The Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company And Summary Of Significant Accounting Policies | Note 1. The Company and Summary of Significant Accounting Policies Background Mercer International Inc. (“Mercer Inc.”) is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Market. Since acquiring Mercer Peace River Pulp Ltd. (“MPR”) in December 2018 it now owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50% joint venture interest in a northern bleached softwood kraft (“NBSK”) pulp mill in Canada and owns one sawmill in Germany. In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars (“$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its subsidiaries (collectively, the “Company”). The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany balances and transactions have been eliminated upon consolidation. The Company owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in an NBSK pulp mill with West Fraser Mills Ltd., which is accounted for using the equity method. 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. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. Note 1. The Company and Summary of Significant Accounting Policies (continued) Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. The Company reviews the collectability of accounts receivable at each reporting date. The Company maintains an allowance for doubtful accounts at an amount estimated to cover the potential losses on certain uninsured accounts receivable. Any amounts that are determined to be uncollectible and uninsured are offset against the allowance. The allowance is based on the Company’s evaluation of numerous factors, including the payment history and financial position of the debtors. For certain customers, the Company receives a letter of credit prior to shipping its product. Inventories Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value. Spare parts and other materials are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include pulp logs, sawlogs and wood chips. These inventories are located both at the mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of pulp logs, sawlogs and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. The amortization periods have been provided in the Property, Plant and Equipment Note. The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is recognized as an expense in the Consolidated Statements of Operations as incurred. The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit adjusted risk-free interest rate. Impairment of Long-Lived Assets Long-lived assets include property, plant and equipment, net and amortizable intangible assets, net. The unit of accounting for impairment testing for long-lived assets is its “Asset Group”, which includes property, plant and equipment, net, amortizable intangible assets, net and liabilities directly related to those assets. The Company evaluates an Asset Group for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as continuing operating losses. When an indicator that the carrying value of an Asset Group may not be recoverable is triggered, the Company compares the carrying value of the Asset Group to its forecasted undiscounted future cash flows. If the carrying value of the Asset Group is greater than the undiscounted future cash flows an impairment charge is recorded based on the excess of the Asset Group’s carrying value over its fair value. Note 1. The Company and Summary of Significant Accounting Policies (continued) Leases The Company determines if a contract contains a lease at inception. Leases are classified as either operating or finance leases. Operating leases are included in “Operating lease right-of-use assets”, “Accounts payable and other”, and “Operating lease liabilities” in the Consolidated Balance Sheets. Finance leases are included in “Property, plant and equipment, net”, “Accounts payable and other”, and “Finance lease liabilities” in the Consolidated Balance Sheets. Leases with a term of less than 12 months are not recorded in the Consolidated Balance Sheets, and are expensed over the term of the lease in the Consolidated Statements of Operations. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the term of the lease, and the related liabilities represent the Company’s obligation to make the lease payments arising from the lease. Operating lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the lease payments over the term of the lease. Renewal and termination options are included in the lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, the Company uses the implicit rate when readily determinable, or the Company’s estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in the Consolidated Statements of Operations on a straight-line basis over the term of the lease. Government Grants The Company records investment grants from federal and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the cost of the assets in the Consolidated Balance Sheets. Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company’s normal business operations, and are reported as a reduction of related expenses in the Consolidated Statements of Operations. The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. Amortizable Intangible Assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. The amortization periods have been provided in the Amortizable Intangible Assets Note. Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost, which includes both direct and indirect costs of growing and harvesting the sandalwood trees, and net realizable value. The cost of the sandalwood plantations is recorded in “Other long-term assets” and the cost of the harvested sandalwood is recorded in “Inventories” in the Consolidated Balance Sheets. Note 1. The Company and Summary of Significant Accounting Policies (continued) The sandalwood tree plantations are carried at historical cost and are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may be higher than the net realizable value, such as a sustained drop in sales price. Pension Plans The Company maintains defined benefit pension plans for its MPR employees and its salaried employees at the Celgar mill which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected unit credit benefit method prorated on years of service. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of: (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10% of the greater of the accrued benefit obligation and the fair value of plan assets as at the beginning of the year. The Company recognizes the net funded status of the plan. In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are expensed in the Consolidated Statements of Operations. Foreign Operations and Currency Translation The Company determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within “Accumulated other comprehensive loss” in shareholders’ equity. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions related to operating activities are included in “Cost of sales, excluding depreciation and amortization” while those related to non-operating activities are included in “Other income (expenses)” in the Consolidated Statements of Operations. Where intercompany loans are of a long-term investment nature, exchange rate changes are included as a foreign currency translation adjustment within “Accumulated other comprehensive loss” in shareholders’ equity. 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 is due, and a receivable is recognized after control has transferred to the customer and revenue is recognized. Payment terms are defined in the contract as typically due within three months after control has transferred to the customer, and as such, 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. Note 1. The Company and Summary of Significant Accounting Policies (continued) 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 ship’s 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. The Company is the principal in all of the arrangements with 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 from the German mills are sold into the European market direct to the customer and have shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized in “Revenues” in the Consolidated Statements of Operations. Shipping and handling costs incurred by the Company are included in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations at the time the related revenue is recognized. Stock-Based Compensation The Company recognizes stock-based compensation expense over an award’s requisite service period based on the award’s fair value in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units (“PSUs”) which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management’s best estimate. The final determination of the number of shares to be granted is made by the Company’s board of directors. The Company estimates forfeitures of PSUs based on management’s expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. The fair value of restricted shares is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. Note 1. The Company and Summary of Significant Accounting Policies (continued) Deferred Income Taxes Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all deferred tax liabilities and assets are offset and presented as a single net amount. Derivative Financial Instruments The Company occasionally enters into derivative financial instruments to manage certain market risks. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value in the Consolidated Balance Sheets with the changes in fair value recognized in “Other income (expenses)” in the Consolidated Statements of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuations based on observable inputs in active markets for similar assets and liabilities, other than Level 1 prices, such as quoted commodity prices or interest or currency exchange rates. Level 3 – Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding in the period. Diluted net income (loss) per common share is calculated to give effect to all potentially dilutive common shares outstanding by applying the “Treasury Stock” and “If-Converted” methods. Instruments that could have a potentially dilutive effect on the Company’s weighted average shares outstanding include all or a portion of outstanding stock options, restricted shares, restricted share units, performance shares and PSUs. Business Combinations The Company uses the acquisition method in accounting for a business combination that meets the definition of a business. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. In developing estimates of fair market values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, discount rates, estimated replacement costs and depreciation and obsolescence factors. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Acquisition costs, as well as costs to integrate acquired companies, are expensed as incurred in the Consolidated Statements of Operations. Note 1. The Company and Summary of Significant Accounting Policies (continued) New Accounting Pronouncements Accounting Pronouncements Adopted In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) 2016-02, Leases, which requires lessees to recognize virtually all leases on the balance sheet, by recording a right-of-use asset and corresponding liability. Additionally, the update also requires additional disclosures in regards to the nature, timing and uncertainty of cash flows arising from leases. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, Codification Improvements to Topic 842, Leases; and ASU 2018-11, Leases: Targeted Improvements. These updates were effective for financial statements issued for fiscal years beginning after December 15, 2018. The Company adopted these updates on January 1, 2019 using the modified retrospective method with no restatement of comparative financial information. The new standard provides a number of optional practical expedients in transition and the Company elected to use all of them on adoption. Adoption of the standard resulted in recognition of right-of-use assets and lease liabilities for operating leases of $14,700 as of January 1, 2019. The standard did not impact the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. The Company’s lease disclosure has been included in the Lease Commitments Note. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the current incurred loss impairment method with a method that reflects expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which provides entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. These updates are effective for financial statements issued after December 15, 2019, with early adoption permitted. This guidance should be applied using the modified-retrospective approach. The Company will adopt these updates on January 1, 2020. The Company is currently evaluating the provisions of this guidance but believes the adoption of these updates will not have a significant impact on the consolidated financial statements as the Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, letters of credit and setting credit limits prior to the sale. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this update but believes it will not have a significant impact on the consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2. Acquisitions Mercer Forestry Services On October 31, 2019, the Company acquired a log harvesting, road building and trucking services business for $6,938 cash. The acquired business will be called Mercer Forestry Services Ltd. (“MFS”). Significantly all of the purchase price was allocated to the fair value of logging equipment. MFS qualifies as a business under GAAP and accordingly, the Company began consolidating its results of operations, financial position and cash flows in the consolidated financial statements as of the acquisition date. In the year ended December 31, 2019, $265 of acquisition related costs were recognized in “Selling, general and administrative expenses” in the Consolidated Statements of Operations. Pro forma information related to the acquisition of MFS has not been provided as it does not have a material effect on the Company’s Consolidated Statements of Operations. MPR On December 10, 2018, the Company acquired all of the issued and outstanding shares of MPR. The purchase price was cash consideration of $344,030, after certain customary working capital adjustments. The acquisition resulted in 100% ownership of a bleached kraft pulp mill in Peace River, Alberta, a 50% joint venture interest in the Cariboo Pulp & Paper Company (“CPP”) (being an NBSK pulp mill, in Quesnel, British Columbia) and a 50% interest in a logging and chipping operation for the areas underlying MPR’s forest management agreements and timber allocations. The acquisition of MPR expands the Company’s sales presence in Asia and adds northern bleached hardwood kraft to its product mix. The following table summarizes the Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed at the acquisition date: Purchase Price Allocation Current assets $ 134,748 Property, plant and equipment 214,260 Investment in joint ventures 55,325 Amortizable intangible assets, timber cutting rights (a) 37,634 Other long term-assets 392 Total assets acquired 442,359 Current liabilities 35,578 Pension obligations 9,747 Deferred income tax 49,907 Other long-term liabilities 3,097 Total liabilities assumed 98,329 Net assets acquired $ 344,030 (a) The timber cutting rights are being amortized on a straight-line basis over 30 years. The fair value of the timber cutting rights was determined through the market approach utilizing comparable market data. The values were then discounted at a rate of 12% for 30 years to arrive at the fair value. Note 2. Acquisitions (continued) During 2019, immaterial adjustments were made to the purchase price allocation to reflect the final valuation of the assets acquired and liabilities assumed. MPR meets the definition of a business under GAAP and accordingly, the Company began consolidating its results of operations, financial position and cash flows in the consolidated financial statements as of the acquisition date. The amounts of MPR’s revenues and net loss included in the Consolidated Statements of Operations for the year ended December 31, 2018 were $29,907 and $978, respectively. In the year ended December 31, 2018, $1,871 of acquisition related costs were recognized in “Selling, general and administrative expenses” in the Consolidated Statements of Operations. The Company also incurred an acquisition commitment fee of $5,250 for a senior unsecured bridge facility to ensure financing was in place for the acquisition. However, the bridge facility was not used as the Company issued senior notes due 2025. The following unaudited pro forma information represents the Company’s results of operations as if the acquisition of MPR had occurred on January 1, 2017. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. For the Year Ended December 31, 2018 2017 Revenues $ 1,906,697 $ 1,503,446 Net income $ 189,431 $ 42,267 The unaudited pro forma information includes additional interest expense related to debt issued to finance the acquisition of $25,190 and $26,989 for the years ended December 31, 2018 and December 31, 2017, respectively and additional depreciation expense of $11,679 and $9,776 for the years ended December 31, 2018 and December 31, 2017, respectively. Other adjustments also include those related to increasing the December 31, 2018 net income and decreasing the December 31, 2017 net income by the non-recurring acquisition commitment fee of $5,250 and acquisition costs of $1,871. Mercer Sandalwood On October 18, 2018, the Company acquired Mercer Sandalwood Pty Ltd (“Mercer Sandalwood”) (formerly Santanol) for $35,724 cash. Mercer Sandalwood 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 and marketing of solid wood chemical extractives. The following table summarizes the Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Mercer Sandalwood at the acquisition date: Purchase Price Allocation Net working capital $ 5,111 Property, plant and equipment 18,490 Sandalwood tree plantations (a) 14,587 Deferred income tax liability (2,464 ) Net assets acquired $ 35,724 ( a ) The fair value of the sandalwood tree plantations was determined using the discounted cash flows method using a rate of 10.5%. During 2019, immaterial adjustments were made to the purchase price allocation to reflect the final valuation of the assets acquired and liabilities assumed. Note 2. Acquisitions (continued) Mercer Sandalwood meets the definition of a business under GAAP and accordingly, the Company began consolidating its results of operations, financial position and cash flows in the consolidated financial statements as of the acquisition date. The amount of Mercer Sandalwood’s revenues and net loss included in the Consolidated Statements of Operations for the year ended December 31, 2018 was $478 and $907, respectively. In the year ended December 31, 2018, $777 of acquisition related costs were recognized in “Selling, general and administrative expenses” in the Consolidated Statements of Operations. Pro forma information related to the acquisition of Santanol has not been provided as it does not have a material effect on the Company’s Consolidated Statements of Operations. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Note 3. Accounts Receivable Accounts receivable as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 Trade, net of allowance of $164 (2018 – $nil) $ 172,626 $ 230,426 Other 36,114 22,266 $ 208,740 $ 252,692 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Net [Abstract] | |
Inventories | Note 4. Inventories Inventories as of December 31, 2019 and December 31, 2018, were comprised of the following: December 31, 2019 2018 Raw materials $ 99,754 $ 103,983 Finished goods 77,815 114,304 Spare parts and other 95,030 85,526 $ 272,599 $ 303,813 In the second half of 2019, as a result of the decline in pulp prices and increased fiber costs for the Canadian mills, the Company recorded inventory impairment charges of $23,000 at the Canadian mills. These charges were recorded in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations. As of December 31, 2019, $3,500 of the write-down was recorded in raw materials inventory and $5,700 of the write-down was recorded in finished goods inventory. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment as of December 31, 2019 and December 31, 2018, was comprised of the following: Estimated Useful Lives December 31, (Years) 2019 2018 Land $ 54,385 $ 54,832 Buildings 10 - 50 255,233 251,408 Production and other equipment 5 - 25 1,850,377 1,698,132 2,159,995 2,004,372 Less: accumulated depreciation (1,085,753 ) (975,115 ) $ 1,074,242 $ 1,029,257 Note 5. Property, Plant and Equipment (continued) As of December 31, 2019, property, plant and equipment was net of $190,571 of unamortized government grants (2018 – $211,532). As a result of the sustained decline in pulp prices and increased fiber costs for the Canadian mills in 2019, the Company performed impairment tests, as of December 31, 2019 on the long-lived assets of the Canadian pulp mills which had a combined carrying value of $447,510. The Company compared the carrying values of the Canadian mills’ long-lived assets to their estimated future undiscounted cash flows. An impairment assessment requires management to apply judgement in estimating the future cash flows. The significant estimates in the future cash flows include periods of operation, projections of product pricing, production levels, fiber and other production costs, market supply and demand, foreign exchange rates and maintenance spending. The Company maintains industrial landfills on its premises for the disposal of waste, primarily from the mills’ pulp processing activities. The mills have obligations under their landfill permits to decommission these disposal facilities pursuant to certain regulations. As of December 31, 2019, the Company had recorded $9,516 (2018 – $8,752) of asset retirement obligations in “Other long-term liabilities” in the Consolidated Balance Sheets. |
Amortizable Intangible Assets
Amortizable Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortizable Intangible Assets | Note 6. Amortizable Intangible Assets Amortizable intangible assets as of December 31, 2019 and December 31, 2018, were comprised of the following: Estimated December 31, 2019 December 31, 2018 Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Energy sales agreement 11 $ 16,909 $ (4,182 ) $ 12,727 $ 17,234 $ (1,977 ) $ 15,257 Timber cutting rights 30 38,767 (1,369 ) 37,398 34,139 — 34,139 Software and other intangible assets 5 24,999 (21,753 ) 3,246 23,731 (19,200 ) 4,531 $ 80,675 $ (27,304 ) $ 53,371 $ 75,104 $ (21,177 ) $ 53,927 Amortization expense related to intangible assets for the year ended December 31, 2019 was $5,930 (2018 – $5,022; 2017 – 4,030). Amortization expense for the next five years related to intangible assets as of December 31, 2019 is expected to be as follows: 2020 2021 2022 2023 2024 Amortization expense $ 4,284 $ 4,007 $ 3,272 $ 2,919 $ 2,907 |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Long-Term Assets | Note 7. Other Long-Term Assets Other long-term assets as of December 31, 2019 and December 31, 2018, were comprised of the following: December 31, 2019 2018 Sandalwood tree plantations $ 21,603 $ 13,258 Other 4,435 4,646 $ 26,038 $ 17,904 |
Accounts Payable and Other
Accounts Payable and Other | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Other | Note 8. Accounts Payable and Other Accounts payable and other as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 Trade payables $ 73,721 $ 36,333 Accrued expenses 111,696 95,936 Interest payable 33,198 16,861 Income tax payable 28,080 29,818 Legal cost award payable — 6,951 Other 8,849 8,585 $ 255,544 $ 194,484 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 9. Debt Debt as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 2022 Senior Notes, principal amount $100,000 (a) $ — $ 98,918 2024 Senior Notes, principal amount $250,000 (a) 246,911 246,154 2025 Senior Notes, principal amount $550,000 (a) 545,665 342,761 2026 Senior Notes, principal amount $300,000 (a) 295,356 294,588 Credit arrangements €200 million joint revolving credit facility (b) — 58,968 C$60 million revolving credit facility (c) — C$40 million revolving credit facility (d) — — €2.6 million demand loan (e) — — $ 1,087,932 $ 1,041,389 The maturities of the principal portion of debt as of December 31, 2019 were as follows: 2020 $ — 2021 — 2022 — 2023 — 2024 250,000 Thereafter 850,000 $ 1,100,000 Note 9. Debt (continued) Certain of the Company’s debt instruments were issued under agreements which, among other things, may limit its ability and the ability of its subsidiaries to make certain payments, including dividends. These limitations are subject to specific exceptions. As of December 31, 2019, the Company was in compliance with the terms of its debt agreements. (a) In 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 (the “2025 Senior Notes”). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $342,682 after deducting the underwriter’s discount and offering expenses. The net proceeds together with cash on hand were used to finance the acquisition of MPR. In October 2019, the Company issued an additional $200,000 in aggregate principal amount of 2025 Senior Notes at a price of 102.75% of their principal amount for a yield to worst of 6.435%. In 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $293,795 after deducting the underwriter’s discount and offering expenses. In 2018, the net proceeds, together with cash on hand, were used to redeem $300,000 in aggregate principal amount of the 2022 Senior Notes. In connection with this redemption, the Company recorded a loss on settlement of debt of $21,515 in the Consolidated Statements of Operations. In 2017, the Company issued $250,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (the “2024 Senior Notes” and collectively with the 2025 Senior Notes and 2026 Senior Notes, the “Senior Notes”). The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $244,711 after deducting the underwriter’s discount and offering expenses. The net proceeds, 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 the Friesau mill and for general working capital purposes. In connection with this redemption, the Company recorded a loss on settlement of debt of $10,696 in the Consolidated Statements of Operations. 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 2025 Senior Notes or 2026 Senior Notes, upon not less than 10 days’ or more than 60 days’ notice and the Company may redeem all or a part of the 2024 Senior Notes, upon not less than 30 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. Note 9. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % (b) A €200.0 million joint revolving credit facility with all of the Company’s German mills that matures in December 2023. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.05% to 2.00% dependent on conditions including but not limited to a prescribed leverage ratio. As of December 31, 2019, approximately €11.0 million ($12,410) of this facility was supporting bank guarantees leaving approximately €189.0 million ($212,270) available. (c) A C$60.0 million revolving credit facility for MPR that matures in February 2024. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.25% to 1.50% per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50%, a designated LIBOR rate plus 1.00% and the bank’s applicable reference rate for U.S. dollar loans; and (iv) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.50% per annum. Borrowings under the facility are collateralized by, among other things, the mill’s inventories and accounts receivable. As of December 31, 2019, approximately C$1.0 million ($754) was supporting letters of credit leaving approximately C$59.0 million ($45,440) available. (d) A C$40.0 million revolving credit facility for 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 inventories 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 of December 31, 2019, approximately C$1.7 million ($1,308) was supporting letters of credit leaving approximately C$38.3 million ($29,488) available. (e) A €2.6 million demand loan at the Rosenthal mill that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50%. As of December 31, 2019, approximately €2.6 million ($2,867) of this facility was supporting bank guarantees leaving approximately $nil available. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Other Post-Retirement Benefit Obligations | Note 10. Pension and Other Post-Retirement Benefit Obligations Defined Benefit Plans Pension benefits are based on employees’ earnings and years of service. The defined benefit plans are funded by contributions from the Company based on actuarial estimates and statutory requirements. Information about the Celgar and MPR defined benefit plans, in aggregate for the year ended December 31, 2019 was as follows: 2019 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2018 $ 95,996 $ 14,859 $ 110,855 Service cost 2,868 271 3,139 Interest cost 3,516 548 4,064 Benefit payments (3,703 ) (647 ) (4,350 ) Actuarial losses (gains) 9,228 (2,477 ) 6,751 Foreign currency exchange rate changes 5,091 698 5,789 Benefit obligation, December 31, 2019 112,996 13,252 126,248 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2018 84,122 — 84,122 Actual returns 11,269 — 11,269 Contributions 3,820 647 4,467 Benefit payments (3,703 ) (647 ) (4,350 ) Foreign currency exchange rate changes 4,483 — 4,483 Fair value of plan assets, December 31, 2019 99,991 — 99,991 Funded status, December 31, 2019 $ (13,005 ) $ (13,252 ) $ (26,257 ) Components of the net benefit cost recognized Service cost $ 2,868 $ 271 $ 3,139 Interest cost 3,516 548 4,064 Expected return on plan assets (4,017 ) — (4,017 ) Amortization of unrecognized items 941 (678 ) 263 Net benefit cost $ 3,308 $ 141 $ 3,449 Note 10 . Pension and Other Post-Retirement Benefit Obligations (continued) Information about the Celgar and, from the date of acquisition, MPR defined benefit plans, in aggregate for the year ended December 31, 2018 was as follows: 2018 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2017 $ 38,330 $ 20,788 $ 59,118 Benefit obligation transferred, MPR 62,545 — 62,545 Service cost 269 467 736 Interest cost 1,409 709 2,118 Benefit payments (2,346 ) (594 ) (2,940 ) Actuarial losses (gains) 456 (5,065 ) (4,609 ) Foreign currency exchange rate changes (4,667 ) (1,446 ) (6,113 ) Benefit obligation, December 31, 2018 95,996 14,859 110,855 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2017 37,057 — 37,057 Fair value plan assets transferred, MPR 52,740 — 52,740 Actual returns 378 — 378 Contributions 539 594 1,133 Benefit payments (2,346 ) (594 ) (2,940 ) Foreign currency exchange rate changes (4,246 ) — (4,246 ) Fair value of plan assets, December 31, 2018 84,122 — 84,122 Funded status, December 31, 2018 $ (11,874 ) $ (14,859 ) $ (26,733 ) Components of the net benefit cost recognized Service cost $ 269 $ 467 $ 736 Interest cost 1,409 709 2,118 Expected return on plan assets (1,694 ) — (1,694 ) Amortization of unrecognized items 915 (207 ) 708 Net benefit cost $ 899 $ 969 $ 1,868 The components of the net benefit cost other than service cost are recorded in “Other income (expenses)” in the Consolidated Statements of Operations. The amortization of unrecognized items relates to net actuarial losses and prior service costs. The Company anticipates that it will make contributions to the defined benefit plans of approximately $3,715 in 2020. Estimated future benefit p ayments Pension Other Post-Retirement Benefits 2020 $ 4,355 $ 516 2021 $ 4,510 $ 544 2022 $ 4,696 $ 568 2023 $ 4,844 $ 593 2024 $ 5,052 $ 618 2025-2029 $ 28,198 $ 3,450 Note 10 . Pension and Other Post-Retirement Benefit Obligations (continued) Weighted Average Assumptions The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2019, 2018 and 2017 were as follows for Celgar’s defined benefit plan: December 31, 2019 2018 2017 Benefit obligations Discount rate 3.00 % 3.14 % 3.50 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.14 % 3.50 % 3.80 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 3.90 % 4.40 % 6.00 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2019 and 2018 were as follows for MPR’s defined benefit plan: December 31, 2019 2018 Benefit obligations Discount rate 3.20 % 3.90 % Rate of compensation increase 2.75 % 2.75 % Net benefit cost for year ended Discount rate 3.90 % 3.95 % Rate of compensation increase 2.75 % 3.25 % Expected rate of return on plan assets 5.12 % 5.15 % The discount rate assumption is adjusted annually to reflect the rates available on high-quality debt instruments, with a duration that is expected to match the timing of expected pension and other post-retirement benefit obligations. High-quality debt instruments are corporate bonds with a rating of “AA” or better. The expected rate of return on plan assets is a management estimate based on, among other factors, historical long-term returns, expected asset mix and active management premium. The expected rate of compensation increase is a management estimate based on, among other factors, historical compensation increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with employees and the outlook for the industry. The assumed health care cost trend rates used to determine the other post-retirement benefit obligations as of December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 2018 Health care cost trend rate assumed for next year 5.00% 5.50% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2021 2021 Note 10. Pension and Other Post-Retirement Benefit Obligations (continued) The expected health care cost trend rates are based on historical trends for these costs, as well as recently enacted health care legislation. The Company also compares health care cost trend rates to those of the industry. Investment Objective and Asset Allocation The investment objective for the defined benefit pension plan is to sufficiently diversify invested plan assets to maintain a reasonable level of risk without imprudently sacrificing the return on the invested funds, and ultimately to achieve a long-term total rate of return, net of fees and expenses, at least equal to the long-term interest rate assumptions used for funding actuarial valuations. To achieve this objective, the Company’s overall investment strategy is to maintain an investment allocation mix of long-term growth investments (equities) and fixed income investments (debt securities). Investment allocation targets have been established by asset class after considering the nature of the liabilities, long-term return expectations, the risks associated with key asset classes, funded position, inflation and interest rates and related management fees and expenses. In addition, the defined benefit pension plan’s investment strategy seeks to minimize risk beyond legislated requirements by constraining the investment managers’ investment options. There are a number of specific constraints based on investment type, but they all have the general purpose of ensuring that the investments are fully diversified and that risk is appropriately managed. For example, there are constraints on the book value of assets that can be invested in any one entity or group, and all equity holdings must be listed on a public exchange. Reviews of the investment objectives, key assumptions and the independent investment managers are performed periodically. Pension De-Risking Actions During 2017, the Company initiated a pension de-risking strategy for Celgar’s defined benefit plan. The first step of the strategy resulted in changing the target investment mix to 80% debt securities, to more effectively hedge the plan liabilities for inactive members, and 20% equity securities, to consider the inflationary effect of future salary increases for the remaining active members. In 2018, the Company used the debt security investments in Celgar’s defined benefit plan to purchase buy-in annuities for all inactive members. This transaction fully hedges the plan liabilities for inactive members. Concentrations of Risk in the Defined Benefit Pension Plan’s Assets The Company has reviewed the defined benefit pension plan’s equity investments and determined that they are allocated based on the specific investment managers’ stated investment strategies with only slight over- or under-weightings within any specific category, and that those investments are within the constraints that have been set by the Company. Those constraints include a limitation on the value that can be invested in any one entity or investment category. The Company has concluded that there are no significant concentrations of risk. The following table presents the Celgar and MPR defined benefit pension plans’ assets fair value measurements as of December 31, 2019 under the fair value hierarchy: Fair value measurements as of December 31, 2019 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 43,800 $ — $ — $ 43,800 Debt securities 55,757 — — 55,757 Cash 69 — — 69 Other 365 — — 365 Total assets $ 99,991 $ — $ — $ 99,991 Note 10. Pension and Other Post-Retirement Benefit Obligations (continued) The following table presents the Celgar and MPR defined benefit pension plans’ assets fair value measurements as of December 31, 2018 under the fair value hierarchy: Fair value measurements as of December 31, 2018 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 31,230 $ — $ — $ 31,230 Debt securities, including buy-in annuities 49,724 — — 49,724 Cash 2,054 — — 2,054 Other 1,114 — — 1,114 Total assets $ 84,122 $ — $ — $ 84,122 Defined Contribution Plan Effective December 31, 2008, the defined benefit plans at the Celgar mill were closed to new members. In addition, the related defined benefit service accrual ceased on December 31, 2008, and members began to receive pension benefits, at a fixed contractual rate, under a new defined contribution plan effective January 1, 2009. During the year ended December 31, 2019, the Company made contributions of $1,400 (2018 – $1,024; 2017 – $959). Multiemployer Plan The Company participates in a multiemployer plan for the hourly-paid employees at the Celgar mill. The contributions to the plan are determined based on a percentage of pensionable earnings pursuant to a collective bargaining agreement. The Company has no current or future contribution obligations in excess of the contractual contributions. Contributions during the year ended December 31, 2019 totaled $2,203 (2018 – $2,218; 2017 – $1,969). Plan details for the years ended December 31, 2019, 2018 and 2017 were as follows: Provincially Registered Plan Expiration Date of Collective Bargaining Are the Company’s Contributions Greater Than 5% of Total Contributions Legal name Number Agreement 2019 2018 2017 The Pulp and Paper Industry Pension Plan P085324 April 30, 2021 Yes No No |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Income (loss) before provision for income taxes by taxing jurisdiction for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 U.S. $ (43,408 ) $ (69,202 ) $ (41,635 ) Foreign 52,995 246,472 145,570 $ 9,587 $ 177,270 $ 103,935 Note 11. Income Taxes (continued) Provision for income taxes recognized in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 was comprised of the following: Year Ended December 31, 2019 2018 2017 U.S. Federal and State current income tax provision $ 342 $ — $ — Foreign current income tax provision 26,757 32,085 11,396 Total current income tax provision 27,099 32,085 11,396 Foreign deferred income tax provision (benefit) (7,873 ) 16,596 22,056 Total income tax provision $ 19,226 $ 48,681 $ 33,452 During the year ended December 31, 2019, the foreign current income tax provision is primarily for the German entities. The Company’s effective income tax rate can be affected by many factors, including but not limited to, changes in the mix of earnings in tax jurisdictions with differing statutory rates, changes in corporate structure, changes in the valuation of deferred tax assets and liabilities, the result of audit examinations of previously filed tax returns and changes in tax laws and rates. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The Company and/or one or more of its subsidiaries file income tax returns in the U.S., Germany, Canada and Australia. Currently, the Company does not anticipate that the expiration of the statute of limitations or the completion of audits in the next fiscal year will result in liabilities for uncertain income tax positions that are materially different than the amounts accrued or disclosed as of December 31, 2019. However, this could change as tax years are examined by taxing authorities, the timing of which are uncertain at this time. The German tax authorities have completed examinations up to and including the 2015 tax year for all but three German entities. For these three entities the German tax authorities have completed examinations up to and including the 2013 tax year. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2016 and 2015, respectively. The Company believes that it has adequately provided for any reasonable foreseeable outcomes related to its tax audits and that any settlement will not have a material adverse effect on its consolidated results. The liability in the Consolidated Balance Sheets related to unrecognized tax benefits was $nil as of December 31, 2019 (2018 – $nil). The Company recognizes interest and penalties related to unrecognized tax benefits in “Provision for income taxes” in the Consolidated Statements of Operations. During the years ended December 31, 2019, 2018 and 2017 the Company did not record any The Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law making significant changes to the Internal Revenue Code. Changes included, but were not limited to, a corporate tax rate decrease from 35% to 21% effective January 1, 2018, a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017, and a minimum tax on certain foreign earnings. As a result of the reduction of the corporate tax rate, the Company revalued its U.S. net deferred tax asset balance, excluding after tax credits, as of December 31, 2017. Based on this revaluation, the net deferred tax asset was reduced by $27,445 and the Company recorded an offsetting reduction to the valuation allowance as the Company had a full valuation allowance against its U.S. deferred tax assets. The amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings was $3,473 based on cumulative foreign earnings of $22,398. The Company had loss carryforwards which were used to offset the tax. Note 11. Income Taxes (continued) The minimum tax on certain foreign earnings includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries. 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 the GILTI inclusions as a period cost. Differences between the U.S. Federal statutory and the Company’s effective rates for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 U.S. Federal statutory rate 21% 21% 35% U.S. Federal statutory rate on income before provision for income taxes $ (2,013 ) $ (37,227 ) $ (36,377 ) Tax differential on foreign income (5,368 ) (17,511 ) 10,398 Effect of foreign earnings (a) (13,747 ) (51,639 ) (3,584 ) Change in undistributed earnings — — 13,297 Change in tax rate — — (26,627 ) Valuation allowance (11,643 ) 64,573 5,750 Tax benefit of partnership structure 3,841 4,208 4,937 Non-taxable foreign subsidies 3,200 2,908 2,735 True-up of prior year taxes 6,031 (9,877 ) (3,685 ) Foreign exchange on valuation allowance 356 (878 ) 1,953 Foreign exchange on settlement of debt — 879 1,342 Other 117 (4,117 ) (3,591 ) Provision for income taxes $ (19,226 ) $ (48,681 ) $ (33,452 ) (a) Primarily due to the impact of the GILTI provision . Deferred income tax assets and liabilities as of December 31, 2019 and December 31, 2018 were comprised of the following: December 31, 2019 2018 German tax loss carryforwards $ 31,317 $ 35,364 U.S. tax loss carryforwards and credits 4,671 8,982 Canadian tax loss carryforwards 16,392 — Basis difference between income tax and financial reporting with respect to operating pulp mills (132,100 ) (138,541 ) Long-term debt (7,388 ) (7,232 ) Payable and accrued expenses 577 4,582 Deferred pension liability 11,270 9,657 Finance leases 10,072 8,269 Research and development expense pool 3,397 3,150 Other (4,050 ) (4,848 ) (65,842 ) (80,617 ) Valuation allowance (22,759 ) (11,116 ) Net deferred income tax liability $ (88,601 ) $ (91,733 ) Comprised of: Deferred income tax asset $ 1,246 $ 1,374 Deferred income tax liability (89,847 ) (93,107 ) Net deferred income tax liability $ (88,601 ) $ (91,733 ) Note 11. Income Taxes (continued) The following table details the scheduled expiration dates of the Company’s net operating loss, interest and income tax credit carryforwards as of December 31, 2019: Amount Expiration U.S. Interest $ 21,800 Indefinite Germany Net operating loss $ 69,300 Indefinite Interest $ 82,000 Indefinite Canada Net operating loss $ 60,700 2036 – 2039 Scientific research and experimental development tax credit $ 4,700 2030 – 2037 Australia Net operating loss $ 11,100 Indefinite At each reporting period, the Company assesses whether it is more likely than not that the deferred tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results and prudent and feasible tax planning strategies. The carrying value of the Company’s deferred tax assets reflects its expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. Significant judgment is required when evaluating this positive and negative evidence. Changes in valuation allowances related to net deferred tax assets for the years ended December 31, 2019 and 2018 were as follows: December 31, 2019 2018 Balance as of January 1 $ 11,116 $ 75,689 Additions (reversals) U.S. (4,503 ) (37,709 ) Canada 16,188 (26,384 ) Australia (398 ) 398 The impact of changes in foreign exchange rates 356 (878 ) Balance as of December 31 $ 22,759 $ 11,116 As of December 31, 2019, the Company has recognized the deferred tax assets of its German entities and has a full valuation allowance against the deferred tax assets of its U.S., Canadian and Australian entities. The Company has not recognized a tax liability on the undistributed earnings of foreign subsidiaries as of December 31, 2019 because these earnings are expected to be permanently reinvested outside the U.S. or repatriated without incurring a tax liability. As of December 31, 2019, the cumulative amount of undistributed earnings upon which U.S. income taxes have not been provided was approximately $284,745. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Note 12. Shareholders’ Equity Dividends The Company’s board of directors declared quarterly dividends during the years ended December 31, 2019 and 2018 as follows: Date Declared Dividend Per Common Share Amount February 14, 2019 $ 0.1250 $ 8,204 May 2, 2019 0.1375 9,025 August 1, 2019 0.1375 9,025 October 31, 2019 0.1375 9,025 $ 0.5375 $ 35,279 Date Declared Dividend Per Common Share Amount February 15, 2018 $ 0.1250 $ 8,147 May 3, 2018 0.1250 8,150 July 26, 2018 0.1250 8,150 October 25, 2018 0.1250 8,150 $ 0.5000 $ 32,597 In February 2020, the Company’s board of directors declared a quarterly dividend of $0.1375 per common share. Payment of the dividend will be made on April 1, 2020 to all shareholders of record on March 25, 2020. Future dividends are subject to approval by the board of directors and may be adjusted as business and industry conditions warrant. Share Capital Preferred shares The Company has authorized 50,000,000 preferred shares (2018 – 50,000,000) with $1 par value issuable in series, of which 2,000,000 shares have been designated as Series A. The preferred shares may be issued in one or more series. Designations and preferences for each series shall be stated in the resolutions providing for the designation and issuance of each such series adopted by the Company’s board of directors. The board of directors is authorized by the Company’s articles of incorporation to determine the voting, dividend, redemption and liquidation preferences pertaining to each such series. As of December 31, 2019, no preferred shares had been issued by the Company. Share Repurchase Program In May 2019, the Company’s board of directors authorized a common stock repurchase program under which the Company may repurchase up to $50,000 of its shares until May 2020. For the year ended December 31, 2019, the Company paid $754 to acquire 52,879 common shares at an average repurchase price of $14.25. The shares were retired upon repurchase. Note 12. Shareholders’ Equity (continued) 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 year ended December 31, 2019, there were no issued and outstanding options, restricted stock rights, performance shares or stock appreciation rights. As of December 31, 2019, after factoring in all allocated shares, there remain approximately 2.6 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 year ended December 31, 2019, the Company recognized an expense of $2,557 related to PSUs (2018 –$3,422; 2017 – $2,437). PSU activity during the year ended December 31, 2019 was as follows: Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding as of January 1, 2019 2,036,008 $ 9.59 Granted 641,206 15.34 Vested and issued (449,395 ) 6.02 Forfeited (462,843 ) 6.20 Outstanding as of December 31, 2019 1,764,976 $ 13.48 The weighted-average grant date fair value per unit of all PSUs granted in 2018 and 2017 was $12.75 and $12.00, respectively. The total fair value of PSUs vested and issued in 2019, 2018 and 2017 was $6,754, $1,992 and $3,445, respectively. Restricted Shares Restricted shares generally vest at the end of one year. Expense recognized for the year ended December 31, 2019 was $479 (2018 – $518; 2017 – $453). As of December 31, 2019, the total remaining unrecognized compensation cost related to restricted shares amounted to approximately $188 which will be amortized over the remaining vesting periods. Restricted share activity during the year ended December 31, 2019 was as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of January 1, 2019 31,130 $ 16.70 Granted 31,405 14.33 Vested (31,130 ) 16.70 Outstanding as of December 31, 2019 31,405 $ 14.33 Note 12. Shareholders’ Equity (continued) The weighted-average grant date fair value per share of all restricted shares granted in 2018 and 2017 was $16.70 and $11.80, respectively. The total fair value of restricted shares vested and issued in 2019, 2018 and 2017 was $466, $703 and $437, respectively. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 13. Net Income (Loss) Per Common Share The reconciliation of basic and diluted net income (loss) per share for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Net income (loss) Basic and diluted $ (9,639 ) $ 128,589 $ 70,483 Net income (loss) per common share Basic $ (0.15 ) $ 1.97 $ 1.09 Diluted $ (0.15 ) $ 1.96 $ 1.08 Weighted average number of common shares outstanding: Basic (a) 65,553,196 65,133,467 64,915,955 Effect of dilutive shares: PSUs — 619,411 458,236 Restricted shares — 17,962 18,914 Diluted 65,553,196 65,770,840 65,393,105 (a) For the year ended December 31, 2019, the basic weighted average number of common shares outstanding excludes 31,405 restricted shares which have been issued, but have not vested as of December 31, 2019 (2018 – 31,130 restricted shares; 2017 – 43,635 restricted shares). The calculation of diluted net income (loss) per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net income (loss) per common share. Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 PSUs 1,764,976 — — Restricted shares 31,405 — — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 14. Accumulated Other Comprehensive Loss The change in accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2019 and 2018 was as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post- Retirement Benefit Items Total Balance as of December 31, 2017 $ (50,101 ) $ (8,900 ) $ (59,001 ) Other comprehensive income (loss) before reclassifications (76,899 ) 7,022 (69,877 ) Amounts reclassified from accumulated other comprehensive loss — 708 708 Other comprehensive income (loss), net of taxes (76,899 ) 7,730 (69,169 ) Balance as of December 31, 2018 (127,000 ) (1,170 ) (128,170 ) Other comprehensive income (loss) before reclassifications 12,291 (944 ) 11,347 Amounts reclassified from accumulated other comprehensive loss — 263 263 Other comprehensive income (loss), net of taxes 12,291 (681 ) 11,610 Balance as of December 31, 2019 $ (114,709 ) $ (1,851 ) $ (116,560 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15. Related Party Transactions The Company enters into related party transactions with its joint ventures. For the year ended December 31, 2019, pulp purchases from the Company’s 50% owned CPP mill, which are transacted at the CPP mill’s cost, were $96,763 (2018 – – – – – |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 16. Business Segment Information The Company is managed based on the primary products it manufactures: pulp and wood products. Accordingly, the Company’s four pulp mills and its 50% interest in the CPP mill are aggregated into the pulp business segment, and the Friesau mill is a separate reportable business segment, wood products. The Company’s sandalwood business is included in Corporate and Other as it does not meet the criteria to be reported as a separate segment. None of the income or loss items following operating income in the Company’s Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management. Note 1 6 . Business Segment Information (continued) Information about certain segment data for the years ended December 31, 2019, 2018 and 2017, was as follows: December 31, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 Operating income (loss) $ 90,583 $ 7,349 $ (13,929 ) $ 84,003 Depreciation and amortization $ 117,108 $ 7,966 $ 1,320 $ 126,394 Purchase of property, plant and equipment $ 103,066 $ 28,425 $ 543 $ 132,034 Total assets (a) $ 1,782,105 $ 83,102 $ 200,513 $ 2,065,720 Revenues by major products Pulp $ 1,370,742 $ — $ — $ 1,370,742 Lumber — 142,243 — 142,243 Energy and chemicals 86,381 9,721 7,351 103,453 Wood residuals — 7,973 — 7,973 Total revenues $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 Revenues by geographical markets (b) U.S. $ 168,197 $ 54,098 $ — $ 222,295 Germany 419,472 53,734 — 473,206 China 430,508 — — 430,508 Other countries 438,946 52,105 7,351 498,402 Total revenues $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 (a) Total assets for the pulp segment includes the Company’s $53,122 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. December 31, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Operating income (loss) $ 274,356 $ 6,203 $ (12,692 ) $ 267,867 Depreciation and amortization $ 87,628 $ 8,485 $ 616 $ 96,729 Purchase of property, plant and equipment $ 66,207 $ 20,682 $ 123 $ 87,012 Total assets (a) $ 1,698,071 $ 131,754 $ 145,910 $ 1,975,735 Revenues by major products Pulp $ 1,190,588 $ — $ — $ 1,190,588 Lumber — 168,663 — 168,663 Energy and chemicals 77,616 10,831 478 88,925 Wood residuals — 9,542 — 9,542 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Revenues by geographical markets (b) U.S. $ 55,692 $ 52,770 $ — $ 108,462 Germany 499,620 73,854 — 573,474 China 291,657 — — 291,657 Other countries 421,235 62,412 478 484,125 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 (a) Total assets for the pulp segment includes the Company’s $62,574 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship – Note 16. Business Segment Information (continued) December 31, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,071,715 $ 97,430 $ — $ 1,169,145 Operating income (loss) $ 171,279 $ 5,610 $ (8,335 ) $ 168,554 Depreciation and amortization $ 80,833 $ 4,060 $ 401 $ 85,294 Purchase of property, plant and equipment $ 54,534 $ 3,197 $ 184 $ 57,915 Total assets $ 1,253,545 $ 116,320 $ 354,845 $ 1,724,710 Revenues by major products Pulp $ 979,645 $ — $ — $ 979,645 Lumber — 82,176 — 82,176 Energy and chemicals 92,070 8,872 — 100,942 Wood residuals — 6,382 — 6,382 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 Revenues by geographical markets (a) U.S. $ 23,572 $ 20,060 $ — $ 43,632 Germany 421,895 47,146 — 469,041 China 292,231 — — 292,231 Other countries 334,017 30,224 — 364,241 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 (a) Sales are attributed to countries based on the ship-to location provided by the customer. 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 year ended December 31, 2019, the pulp segment sold $531 of residual fuel to the wood products segment (2018 – $1,343; 2017 – – The Company’s long-lived assets by geographic area based on location of the asset as of December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 2018 Germany $ 646,101 $ 655,260 Canada 410,468 355,817 Australia 17,673 18,180 $ 1,074,242 $ 1,029,257 In 2019, |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Note 17. Financial Instruments and Fair Value Measurement Due to their short-term maturity, the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable and other, approximates their fair value. The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of December 31, 2019 and December 31, 2018 were as follows: Fair value measurements as of December 31, 2019 using: Description Level 1 Level 2 Level 3 Total Senior notes $ — $ 1,156,673 $ — $ 1,156,673 Fair value measurements as of December 31, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 58,968 $ — $ 58,968 Senior notes — 965,000 — 965,000 $ — $ 1,023,968 $ — $ 1,023,968 The carrying value of the revolving credit facility classified as Level 2 approximates its fair value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities. The fair value of the Senior Notes classified as Level 2 was determined using quoted prices in a dealer market, or using recent market transactions. The Company’s Senior Notes are not carried at fair value on the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018. However, fair value disclosure is required. The carrying value of the Company’s Senior Notes, net of note issuance costs is $1,087,932 as of December 31, 2019 (December 31, 2018 – 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, the U.S. and Italy. The carrying amount of cash and cash equivalents of $351,085 and accounts receivable of $208,740, net of any allowances for losses, as of December 31, 2019, represents the Company’s maximum exposure to credit risk. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Commitments | Note 1 8 . Lease Commitments The Company has finance leases primarily for rail cars and production equipment. The rail cars primarily have a remaining lease term of nine to 12 years with annual renewal options thereafter. The production equipment has a weighted average remaining lease term of nine years. The Company has operating leases primarily for land to support the sandalwood tree plantations and for offices. The land leases have remaining terms of five to 12 years with options to renew for up to six years. The office leases have remaining terms of four to eight years with options to renew primarily for an additional five years. A majority of the operating leases are subject to annual changes to the Consumer Price Index (“CPI”). Changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. A 100-basis-point increase in CPI would not have a material impact on lease costs. The components of lease expense for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Lease cost: Operating lease cost $ 3,322 $ 2,655 $ 2,994 Finance lease cost: Amortization of right-of-use assets 3,768 3,595 3,435 Interest on lease liabilities 1,370 1,299 934 Total lease cost $ 8,460 $ 7,549 $ 7,363 Supplemental cash flow information related to leases for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,322 $ 2,655 $ 2,994 Operating cash flows from finance leases $ 1,370 $ 1,299 $ 934 Financing cash flows from finance leases $ 3,344 $ 3,462 $ 3,262 Note 1 8 . Lease Commitments (continued) Other information related to leases for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Weighted average remaining lease term: Operating leases 7 years 7 years 8 years Finance leases 10 years 9 years 9 years Weighted average discount rate: Operating leases 7 % Finance leases 4 % 6 % 4 % The discount rate used to calculate the present value of the minimum lease payments is the incremental borrowing rate that the subsidiary entering into the lease would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Supplemental balance sheet information related to leases as of December 31, 2019 and December 31, 2018 was as follows: December 31, 2019 2018 Operating Leases Operating lease right-of-use assets $ 13,004 Other current liabilities $ 2,484 Operating lease liabilities 10,520 Total operating lease liabilities $ 13,004 Finance Leases Property and equipment, gross $ 49,393 $ 44,756 Accumulated depreciation (16,571 ) (15,963 ) Property and equipment, net $ 32,822 $ 28,793 Other current liabilities $ 3,382 $ 4,911 Finance lease liabilities 31,103 24,669 Total finance lease liabilities $ 34,485 $ 29,580 As of December 31, 2019, maturities of lease liabilities were as follows: Finance Leases Operating Leases 2020 $ 4,472 $ 3,218 2021 4,343 3,071 2022 4,169 2,809 2023 4,288 2,087 2024 4,184 1,378 Thereafter 19,142 3,410 Total lease payments 40,598 15,973 Less: imputed interest (6,113 ) (2,969 ) Total lease liability $ 34,485 $ 13,004 Note 1 8 . Lease Commitments (continued) As of December 31, 2018, minimum lease payments under non-cancellable finance and operating leases were as follows: Finance Leases Operating Leases 2019 $ 6,302 $ 3,309 2020 3,601 2,963 2021 3,441 2,717 2022 3,278 2,557 2023 3,410 2,057 Thereafter 17,025 5,360 Total lease payments 37,057 $ 18,963 Less: imputed interest (7,477 ) Total lease liability $ 29,580 As of December 31, 2019, the Company has additional finance leases for rail cars that have not yet commenced. The leases have a term of 12 years with annual renewal options thereafter. The total payments over the term of the leases will be approximately $31,200. The leases will commence in 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 19. Commitments and Contingencies (a) The Company has purchase obligations relating to take-or-pay contracts, primarily for purchases of fiber, made in the ordinary course of business. As of December 31, 2019, commitments under these contracts was approximately $209,533. (b) 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. (c) The Company is subject to regulations that require the handling and disposal of asbestos in a prescribed manner if a property undergoes a major renovation or demolition. Otherwise, the Company is not required to remove asbestos from its facilities. Generally asbestos is found on steam and condensate piping systems as well as certain cladding on buildings and in building insulation throughout older facilities. The Company’s obligation for the proper removal and disposal of asbestos products from the Company’s mills is a conditional asset retirement obligation. As a result of the longevity of the Company’s mills, due in part to the maintenance procedures and the fact that the Company does not have plans for major changes that require the removal of asbestos, the timing of the asbestos removal is indeterminate. As a result, the Company is currently unable to reasonably estimate the fair value of its asbestos removal and disposal obligation. The Company will recognize a liability in the period in which sufficient information is available to reasonably estimate its fair value. |
The Company And Summary Of Si_2
The Company And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Background | Background Mercer International Inc. (“Mercer Inc.”) is a Washington corporation and its shares of common stock are quoted and listed for trading on the NASDAQ Global Market. Since acquiring Mercer Peace River Pulp Ltd. (“MPR”) in December 2018 it now owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50% joint venture interest in a northern bleached softwood kraft (“NBSK”) pulp mill in Canada and owns one sawmill in Germany. In these consolidated financial statements, unless otherwise indicated, all amounts are expressed in U.S. dollars (“$”). The symbol “€” refers to euros and the symbol “C$” refers to Canadian dollars. |
Basis of Presentation | Basis of Presentation These consolidated financial statements contained herein include the accounts of Mercer Inc. and all of its subsidiaries (collectively, the “Company”). The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant intercompany balances and transactions have been eliminated upon consolidation. The Company owns 100% of the economic interest in its subsidiaries with the exception of the 50% joint venture interest in an NBSK pulp mill with West Fraser Mills Ltd., which is accounted for using the equity method. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in bank accounts and highly liquid investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts. The Company reviews the collectability of accounts receivable at each reporting date. The Company maintains an allowance for doubtful accounts at an amount estimated to cover the potential losses on certain uninsured accounts receivable. Any amounts that are determined to be uncollectible and uninsured are offset against the allowance. The allowance is based on the Company’s evaluation of numerous factors, including the payment history and financial position of the debtors. For certain customers, the Company receives a letter of credit prior to shipping its product. |
Inventories | Inventories Inventories of raw materials, finished goods and work in progress are valued at the lower of cost, using the weighted-average cost method, or net realizable value. Spare parts and other materials are valued at the lower of cost and replacement cost. Cost includes labor, materials and production overhead and is determined by using the weighted average cost method. Raw materials inventories include pulp logs, sawlogs and wood chips. These inventories are located both at the mills and at various offsite locations. In accordance with industry practice, physical inventory counts utilize standardized techniques to estimate quantities of pulp logs, sawlogs and wood chip inventory volumes. These techniques historically have provided reasonable estimates of such inventories. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation of buildings and production equipment is based on the estimated useful lives of the assets and is computed using the straight-line method. The amortization periods have been provided in the Property, Plant and Equipment Note. The costs of major rebuilds, replacements and those expenditures that substantially increase the useful lives of existing property, plant and equipment are capitalized, as well as interest costs associated with major capital projects until ready for their intended use. The cost of repairs and maintenance as well as planned shutdown maintenance performed on manufacturing facilities, composed of labor, materials and other incremental costs, is recognized as an expense in the Consolidated Statements of Operations as incurred. The Company provides for asset retirement obligations when there is a legislated or contractual basis for those obligations. An obligation is recorded as a liability at fair value in the period in which the Company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit adjusted risk-free interest rate. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include property, plant and equipment, net and amortizable intangible assets, net. The unit of accounting for impairment testing for long-lived assets is its “Asset Group”, which includes property, plant and equipment, net, amortizable intangible assets, net and liabilities directly related to those assets. The Company evaluates an Asset Group for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as continuing operating losses. When an indicator that the carrying value of an Asset Group may not be recoverable is triggered, the Company compares the carrying value of the Asset Group to its forecasted undiscounted future cash flows. If the carrying value of the Asset Group is greater than the undiscounted future cash flows an impairment charge is recorded based on the excess of the Asset Group’s carrying value over its fair value. |
Leases | Leases The Company determines if a contract contains a lease at inception. Leases are classified as either operating or finance leases. Operating leases are included in “Operating lease right-of-use assets”, “Accounts payable and other”, and “Operating lease liabilities” in the Consolidated Balance Sheets. Finance leases are included in “Property, plant and equipment, net”, “Accounts payable and other”, and “Finance lease liabilities” in the Consolidated Balance Sheets. Leases with a term of less than 12 months are not recorded in the Consolidated Balance Sheets, and are expensed over the term of the lease in the Consolidated Statements of Operations. Operating lease right-of-use assets represent the Company’s right to use an underlying asset for the term of the lease, and the related liabilities represent the Company’s obligation to make the lease payments arising from the lease. Operating lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the lease payments over the term of the lease. Renewal and termination options are included in the lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, the Company uses the implicit rate when readily determinable, or the Company’s estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in the Consolidated Statements of Operations on a straight-line basis over the term of the lease. |
Government Grants | Government Grants The Company records investment grants from federal and state governments when the conditions of their receipt are complied with and there is reasonable assurance that the grants will be received. Grants related to assets are government grants whose primary condition is that the company qualifying for them should purchase, construct or otherwise acquire long-term assets. Secondary conditions may also be attached, including restricting the type or location of the assets and/or other conditions that must be met. Grants related to assets are deducted from the cost of the assets in the Consolidated Balance Sheets. Grants related to income are government grants which are either unconditional, related to reduced environmental emissions or related to the Company’s normal business operations, and are reported as a reduction of related expenses in the Consolidated Statements of Operations. The Company is required to pay certain fees based on wastewater emissions at its German mills. Accrued fees can be reduced upon the mills’ demonstration of reduced wastewater emissions. The fees are expensed as incurred and the fee reduction is recognized once the Company has reasonable assurance that the German regulators will accept the reduced level of wastewater emissions. There may be a significant period of time between recognition of the wastewater expense and recognition of the wastewater fee reduction. |
Amortizable Intangible Assets | Amortizable Intangible Assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. The amortization periods have been provided in the Amortizable Intangible Assets Note. |
Sandalwood Tree Plantations | Sandalwood Tree Plantations Sandalwood tree plantations are measured at the lower of cost, which includes both direct and indirect costs of growing and harvesting the sandalwood trees, and net realizable value. The cost of the sandalwood plantations is recorded in “Other long-term assets” and the cost of the harvested sandalwood is recorded in “Inventories” in the Consolidated Balance Sheets. Note 1. The Company and Summary of Significant Accounting Policies (continued) The sandalwood tree plantations are carried at historical cost and are evaluated for impairment whenever events or changes in circumstances indicate the carrying value may be higher than the net realizable value, such as a sustained drop in sales price. |
Pension Plans | Pension Plans The Company maintains defined benefit pension plans for its MPR employees and its salaried employees at the Celgar mill which are funded and non-contributory. The cost of the benefits earned by the employees is determined using the projected unit credit benefit method prorated on years of service. The pension expense reflects the current service cost, the interest on the unfunded liability and the amortization over the estimated average remaining service life of the employees of: (i) prior service costs, and (ii) the net actuarial gain or loss that exceeds 10% of the greater of the accrued benefit obligation and the fair value of plan assets as at the beginning of the year. The Company recognizes the net funded status of the plan. In addition, hourly-paid employees at the Celgar mill are covered by a multiemployer pension plan for which contributions are expensed in the Consolidated Statements of Operations. |
Foreign Operations and Currency Translation | Foreign Operations and Currency Translation The Company determines its foreign subsidiaries’ functional currency by reviewing the currency of the primary economic environment in which the foreign subsidiaries operate, which is normally the currency of the environment in which the foreign subsidiaries generate and expend cash. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average rate of exchange throughout the period. Foreign currency translation gains and losses are recognized within “Accumulated other comprehensive loss” in shareholders’ equity. Transactions in foreign currencies are translated to the respective functional currencies of each operation using exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency using the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using historical exchange rates. Gains and losses resulting from foreign currency transactions related to operating activities are included in “Cost of sales, excluding depreciation and amortization” while those related to non-operating activities are included in “Other income (expenses)” in the Consolidated Statements of Operations. Where intercompany loans are of a long-term investment nature, exchange rate changes are included as a foreign currency translation adjustment within “Accumulated other comprehensive loss” in shareholders’ equity. |
Revenue Recognition | 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 is due, and a receivable is recognized after control has transferred to the customer and revenue is recognized. Payment terms are defined in the contract as typically due within three months after control has transferred to the customer, and as such, 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. Note 1. The Company and Summary of Significant Accounting Policies (continued) 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 ship’s 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. The Company is the principal in all of the arrangements with 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 from the German mills are sold into the European market direct to the customer and have shipping terms where control transfers once the chemicals or wood residuals are loaded onto the truck at the mill. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers for shipping and handling costs are recognized in “Revenues” in the Consolidated Statements of Operations. Shipping and handling costs incurred by the Company are included in “Cost of sales, excluding depreciation and amortization” in the Consolidated Statements of Operations at the time the related revenue is recognized. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense over an award’s requisite service period based on the award’s fair value in “Selling, general, and administrative expenses” in the Consolidated Statements of Operations. The Company issues new shares upon the exercise of stock-based compensation awards. For performance share units (“PSUs”) which have the same grant and service inception date, the fair value is based upon the targeted number of shares to be awarded and the quoted market price of the Company’s shares at that date. For PSUs where the service inception date precedes the grant date, the fair value is based upon the targeted number of shares awarded and the quoted price of the Company’s shares at each reporting date up to the grant date. The target number of shares is determined using management’s best estimate. The final determination of the number of shares to be granted is made by the Company’s board of directors. The Company estimates forfeitures of PSUs based on management’s expectations and recognizes compensation cost only for those awards expected to vest. Estimated forfeitures are adjusted to actual experience at each balance sheet date. The fair value of restricted shares is determined based upon the number of shares granted and the quoted price of the Company’s shares on the date of grant. |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes are recognized using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, and operating loss and tax credit carryforwards. Valuation allowances are provided if, after considering both positive and negative available evidence, it is more likely than not that some or all of the net deferred tax assets will not be realized. Deferred income taxes are determined separately for each tax-paying component of the Company. For each tax-paying component, all deferred tax liabilities and assets are offset and presented as a single net amount. |
Derivative Financial Instruments | Derivative Financial Instruments The Company occasionally enters into derivative financial instruments to manage certain market risks. These derivative instruments are not designated as hedging instruments and accordingly, are recorded at fair value in the Consolidated Balance Sheets with the changes in fair value recognized in “Other income (expenses)” in the Consolidated Statements of Operations. Periodically, the Company enters into derivative contracts to supply materials for its own use and as such are exempt from mark-to-market accounting. |
Fair Value Measurements | Fair Value Measurements The fair value methodologies and, as a result, the fair value of the Company’s financial instruments are determined based on the fair value hierarchy provided in the Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, and are as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuations based on observable inputs in active markets for similar assets and liabilities, other than Level 1 prices, such as quoted commodity prices or interest or currency exchange rates. Level 3 – Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The financial instrument’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding in the period. Diluted net income (loss) per common share is calculated to give effect to all potentially dilutive common shares outstanding by applying the “Treasury Stock” and “If-Converted” methods. Instruments that could have a potentially dilutive effect on the Company’s weighted average shares outstanding include all or a portion of outstanding stock options, restricted shares, restricted share units, performance shares and PSUs. |
Business Combinations | Business Combinations The Company uses the acquisition method in accounting for a business combination that meets the definition of a business. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. In developing estimates of fair market values for long-lived assets, including identifiable intangible assets, the Company utilizes a variety of inputs including forecasted cash flows, discount rates, estimated replacement costs and depreciation and obsolescence factors. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Acquisition costs, as well as costs to integrate acquired companies, are expensed as incurred in the Consolidated Statements of Operations. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) 2016-02, Leases, which requires lessees to recognize virtually all leases on the balance sheet, by recording a right-of-use asset and corresponding liability. Additionally, the update also requires additional disclosures in regards to the nature, timing and uncertainty of cash flows arising from leases. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, Codification Improvements to Topic 842, Leases; and ASU 2018-11, Leases: Targeted Improvements. These updates were effective for financial statements issued for fiscal years beginning after December 15, 2018. The Company adopted these updates on January 1, 2019 using the modified retrospective method with no restatement of comparative financial information. The new standard provides a number of optional practical expedients in transition and the Company elected to use all of them on adoption. Adoption of the standard resulted in recognition of right-of-use assets and lease liabilities for operating leases of $14,700 as of January 1, 2019. The standard did not impact the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. The Company’s lease disclosure has been included in the Lease Commitments Note. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the current incurred loss impairment method with a method that reflects expected credit losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief, which provides entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. These updates are effective for financial statements issued after December 15, 2019, with early adoption permitted. This guidance should be applied using the modified-retrospective approach. The Company will adopt these updates on January 1, 2020. The Company is currently evaluating the provisions of this guidance but believes the adoption of these updates will not have a significant impact on the consolidated financial statements as the Company’s credit risk associated with its sales is currently managed through the purchase of credit insurance, letters of credit and setting credit limits prior to the sale. The Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod tax allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. This update is effective for financial statements issued for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this update but believes it will not have a significant impact on the consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Proforma Information | The following unaudited pro forma information represents the Company’s results of operations as if the acquisition of MPR had occurred on January 1, 2017. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. For the Year Ended December 31, 2018 2017 Revenues $ 1,906,697 $ 1,503,446 Net income $ 189,431 $ 42,267 |
MPR | |
Business Acquisition [Line Items] | |
Schedule of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed at the acquisition date: Purchase Price Allocation Current assets $ 134,748 Property, plant and equipment 214,260 Investment in joint ventures 55,325 Amortizable intangible assets, timber cutting rights (a) 37,634 Other long term-assets 392 Total assets acquired 442,359 Current liabilities 35,578 Pension obligations 9,747 Deferred income tax 49,907 Other long-term liabilities 3,097 Total liabilities assumed 98,329 Net assets acquired $ 344,030 (a) The timber cutting rights are being amortized on a straight-line basis over 30 years. The fair value of the timber cutting rights was determined through the market approach utilizing comparable market data. The values were then discounted at a rate of 12% for 30 years to arrive at the fair value. |
Mercer Sandalwood | |
Business Acquisition [Line Items] | |
Schedule of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s allocation of the purchase price to the fair value of the assets acquired and liabilities assumed from Mercer Sandalwood at the acquisition date: Purchase Price Allocation Net working capital $ 5,111 Property, plant and equipment 18,490 Sandalwood tree plantations (a) 14,587 Deferred income tax liability (2,464 ) Net assets acquired $ 35,724 ( a ) The fair value of the sandalwood tree plantations was determined using the discounted cash flows method using a rate of 10.5%. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 Trade, net of allowance of $164 (2018 – $nil) $ 172,626 $ 230,426 Other 36,114 22,266 $ 208,740 $ 252,692 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Net [Abstract] | |
Components of Inventories | Inventories as of December 31, 2019 and December 31, 2018, were comprised of the following: December 31, 2019 2018 Raw materials $ 99,754 $ 103,983 Finished goods 77,815 114,304 Spare parts and other 95,030 85,526 $ 272,599 $ 303,813 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2019 and December 31, 2018, was comprised of the following: Estimated Useful Lives December 31, (Years) 2019 2018 Land $ 54,385 $ 54,832 Buildings 10 - 50 255,233 251,408 Production and other equipment 5 - 25 1,850,377 1,698,132 2,159,995 2,004,372 Less: accumulated depreciation (1,085,753 ) (975,115 ) $ 1,074,242 $ 1,029,257 |
Amortizable Intangible Assets (
Amortizable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Amortizable Intangible Assets | Amortizable intangible assets as of December 31, 2019 and December 31, 2018, were comprised of the following: Estimated December 31, 2019 December 31, 2018 Useful Lives (Years) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Energy sales agreement 11 $ 16,909 $ (4,182 ) $ 12,727 $ 17,234 $ (1,977 ) $ 15,257 Timber cutting rights 30 38,767 (1,369 ) 37,398 34,139 — 34,139 Software and other intangible assets 5 24,999 (21,753 ) 3,246 23,731 (19,200 ) 4,531 $ 80,675 $ (27,304 ) $ 53,371 $ 75,104 $ (21,177 ) $ 53,927 |
Schedule of Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets as of December 31, 2019 is expected to be as follows: 2020 2021 2022 2023 2024 Amortization expense $ 4,284 $ 4,007 $ 3,272 $ 2,919 $ 2,907 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Long-Term Assets | Other long-term assets as of December 31, 2019 and December 31, 2018, were comprised of the following: December 31, 2019 2018 Sandalwood tree plantations $ 21,603 $ 13,258 Other 4,435 4,646 $ 26,038 $ 17,904 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 Trade payables $ 73,721 $ 36,333 Accrued expenses 111,696 95,936 Interest payable 33,198 16,861 Income tax payable 28,080 29,818 Legal cost award payable — 6,951 Other 8,849 8,585 $ 255,544 $ 194,484 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of December 31, 2019 and December 31, 2018, was comprised of the following: December 31, 2019 2018 2022 Senior Notes, principal amount $100,000 (a) $ — $ 98,918 2024 Senior Notes, principal amount $250,000 (a) 246,911 246,154 2025 Senior Notes, principal amount $550,000 (a) 545,665 342,761 2026 Senior Notes, principal amount $300,000 (a) 295,356 294,588 Credit arrangements €200 million joint revolving credit facility (b) — 58,968 C$60 million revolving credit facility (c) — C$40 million revolving credit facility (d) — — €2.6 million demand loan (e) — — $ 1,087,932 $ 1,041,389 (a) In 2018, the Company issued $350,000 in aggregate principal amount of 7.375% senior notes which mature on January 15, 2025 (the “2025 Senior Notes”). The 2025 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $342,682 after deducting the underwriter’s discount and offering expenses. The net proceeds together with cash on hand were used to finance the acquisition of MPR. In October 2019, the Company issued an additional $200,000 in aggregate principal amount of 2025 Senior Notes at a price of 102.75% of their principal amount for a yield to worst of 6.435%. In 2017, the Company issued $300,000 in aggregate principal amount of 5.50% senior notes which mature on January 15, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $293,795 after deducting the underwriter’s discount and offering expenses. In 2018, the net proceeds, together with cash on hand, were used to redeem $300,000 in aggregate principal amount of the 2022 Senior Notes. In connection with this redemption, the Company recorded a loss on settlement of debt of $21,515 in the Consolidated Statements of Operations. In 2017, the Company issued $250,000 in aggregate principal amount of 6.50% senior notes which mature on February 1, 2024 (the “2024 Senior Notes” and collectively with the 2025 Senior Notes and 2026 Senior Notes, the “Senior Notes”). The 2024 Senior Notes were issued at a price of 100% of their principal amount. The net proceeds of the offering were $244,711 after deducting the underwriter’s discount and offering expenses. The net proceeds, 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 the Friesau mill and for general working capital purposes. In connection with this redemption, the Company recorded a loss on settlement of debt of $10,696 in the Consolidated Statements of Operations. 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 2025 Senior Notes or 2026 Senior Notes, upon not less than 10 days’ or more than 60 days’ notice and the Company may redeem all or a part of the 2024 Senior Notes, upon not less than 30 days’ or more than 60 days’ notice at the redemption price plus accrued and unpaid interest to (but not including) the applicable redemption date. Note 9. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % (b) A €200.0 million joint revolving credit facility with all of the Company’s German mills that matures in December 2023. Borrowings under the facility are unsecured and bear interest at Euribor plus a variable margin ranging from 1.05% to 2.00% dependent on conditions including but not limited to a prescribed leverage ratio. As of December 31, 2019, approximately €11.0 million ($12,410) of this facility was supporting bank guarantees leaving approximately €189.0 million ($212,270) available. (c) A C$60.0 million revolving credit facility for MPR that matures in February 2024. The facility is available by way of: (i) Canadian denominated advances, which bear interest at a designated prime rate per annum; (ii) banker’s acceptance equivalent loans, which bear interest at the applicable Canadian dollar banker’s acceptance plus 1.25% to 1.50% per annum; (iii) dollar denominated base rate advances at the greater of the federal funds rate plus 0.50%, a designated LIBOR rate plus 1.00% and the bank’s applicable reference rate for U.S. dollar loans; and (iv) dollar LIBOR advances, which bear interest at LIBOR plus 1.25% to 1.50% per annum. Borrowings under the facility are collateralized by, among other things, the mill’s inventories and accounts receivable. As of December 31, 2019, approximately C$1.0 million ($754) was supporting letters of credit leaving approximately C$59.0 million ($45,440) available. (d) A C$40.0 million revolving credit facility for 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 inventories 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 of December 31, 2019, approximately C$1.7 million ($1,308) was supporting letters of credit leaving approximately C$38.3 million ($29,488) available. (e) A €2.6 million demand loan at the Rosenthal mill that does not have a maturity date. Borrowings under this facility are unsecured and bear interest at the rate of the three-month Euribor plus 2.50%. As of December 31, 2019, approximately €2.6 million ($2,867) of this facility was supporting bank guarantees leaving approximately $nil available. |
Principal Maturities of Debt | The maturities of the principal portion of debt as of December 31, 2019 were as follows: 2020 $ — 2021 — 2022 — 2023 — 2024 250,000 Thereafter 850,000 $ 1,100,000 |
Debt Redemption Period for Outstanding Senior Notes | Note 9. Debt (continued) The following table presents the redemption prices (expressed as percentages of principal amount) and the redemption periods of the outstanding Senior Notes: 2024 Senior Notes 2025 Senior Notes 2026 Senior Notes 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage 12 Month Period Beginning Percentage February 1, 2020 103.250 % January 15, 2021 103.688 % January 15, 2021 102.750 % February 1, 2021 101.625 % January 15, 2022 101.844 % January 15, 2022 101.375 % February 1, 2022 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % January 15, 2023 and thereafter 100.000 % |
Pension And Other Post-Retire_2
Pension And Other Post-Retirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | Information about the Celgar and MPR defined benefit plans, in aggregate for the year ended December 31, 2019 was as follows: 2019 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2018 $ 95,996 $ 14,859 $ 110,855 Service cost 2,868 271 3,139 Interest cost 3,516 548 4,064 Benefit payments (3,703 ) (647 ) (4,350 ) Actuarial losses (gains) 9,228 (2,477 ) 6,751 Foreign currency exchange rate changes 5,091 698 5,789 Benefit obligation, December 31, 2019 112,996 13,252 126,248 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2018 84,122 — 84,122 Actual returns 11,269 — 11,269 Contributions 3,820 647 4,467 Benefit payments (3,703 ) (647 ) (4,350 ) Foreign currency exchange rate changes 4,483 — 4,483 Fair value of plan assets, December 31, 2019 99,991 — 99,991 Funded status, December 31, 2019 $ (13,005 ) $ (13,252 ) $ (26,257 ) Components of the net benefit cost recognized Service cost $ 2,868 $ 271 $ 3,139 Interest cost 3,516 548 4,064 Expected return on plan assets (4,017 ) — (4,017 ) Amortization of unrecognized items 941 (678 ) 263 Net benefit cost $ 3,308 $ 141 $ 3,449 Information about the Celgar and, from the date of acquisition, MPR defined benefit plans, in aggregate for the year ended December 31, 2018 was as follows: 2018 Pension Other Post- Retirement Benefits Total Change in benefit obligation Benefit obligation, December 31, 2017 $ 38,330 $ 20,788 $ 59,118 Benefit obligation transferred, MPR 62,545 — 62,545 Service cost 269 467 736 Interest cost 1,409 709 2,118 Benefit payments (2,346 ) (594 ) (2,940 ) Actuarial losses (gains) 456 (5,065 ) (4,609 ) Foreign currency exchange rate changes (4,667 ) (1,446 ) (6,113 ) Benefit obligation, December 31, 2018 95,996 14,859 110,855 Reconciliation of fair value of plan assets Fair value of plan assets, December 31, 2017 37,057 — 37,057 Fair value plan assets transferred, MPR 52,740 — 52,740 Actual returns 378 — 378 Contributions 539 594 1,133 Benefit payments (2,346 ) (594 ) (2,940 ) Foreign currency exchange rate changes (4,246 ) — (4,246 ) Fair value of plan assets, December 31, 2018 84,122 — 84,122 Funded status, December 31, 2018 $ (11,874 ) $ (14,859 ) $ (26,733 ) Components of the net benefit cost recognized Service cost $ 269 $ 467 $ 736 Interest cost 1,409 709 2,118 Expected return on plan assets (1,694 ) — (1,694 ) Amortization of unrecognized items 915 (207 ) 708 Net benefit cost $ 899 $ 969 $ 1,868 |
Estimated Future Benefit Payments | Estimated future benefit p ayments Pension Other Post-Retirement Benefits 2020 $ 4,355 $ 516 2021 $ 4,510 $ 544 2022 $ 4,696 $ 568 2023 $ 4,844 $ 593 2024 $ 5,052 $ 618 2025-2029 $ 28,198 $ 3,450 |
Summary of Key Assumptions | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2019, 2018 and 2017 were as follows for Celgar’s defined benefit plan: December 31, 2019 2018 2017 Benefit obligations Discount rate 3.00 % 3.14 % 3.50 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Net benefit cost for year ended Discount rate 3.14 % 3.50 % 3.80 % Rate of compensation increase 2.50 % 2.50 % 2.50 % Expected rate of return on plan assets 3.90 % 4.40 % 6.00 % The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net benefit costs for the years ended December 31, 2019 and 2018 were as follows for MPR’s defined benefit plan: December 31, 2019 2018 Benefit obligations Discount rate 3.20 % 3.90 % Rate of compensation increase 2.75 % 2.75 % Net benefit cost for year ended Discount rate 3.90 % 3.95 % Rate of compensation increase 2.75 % 3.25 % Expected rate of return on plan assets 5.12 % 5.15 % |
Schedule of Assumed Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the other post-retirement benefit obligations as of December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 2018 Health care cost trend rate assumed for next year 5.00% 5.50% Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2021 2021 |
Schedule of Defined Benefit Pension Plans' Assets Fair Value Measurements | The following table presents the Celgar and MPR defined benefit pension plans’ assets fair value measurements as of December 31, 2019 under the fair value hierarchy: Fair value measurements as of December 31, 2019 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 43,800 $ — $ — $ 43,800 Debt securities 55,757 — — 55,757 Cash 69 — — 69 Other 365 — — 365 Total assets $ 99,991 $ — $ — $ 99,991 The following table presents the Celgar and MPR defined benefit pension plans’ assets fair value measurements as of December 31, 2018 under the fair value hierarchy: Fair value measurements as of December 31, 2018 using: Asset Category Level 1 Level 2 Level 3 Total Equity securities $ 31,230 $ — $ — $ 31,230 Debt securities, including buy-in annuities 49,724 — — 49,724 Cash 2,054 — — 2,054 Other 1,114 — — 1,114 Total assets $ 84,122 $ — $ — $ 84,122 |
Schedule of Multiemployer Plan | Plan details for the years ended December 31, 2019, 2018 and 2017 were as follows: Provincially Registered Plan Expiration Date of Collective Bargaining Are the Company’s Contributions Greater Than 5% of Total Contributions Legal name Number Agreement 2019 2018 2017 The Pulp and Paper Industry Pension Plan P085324 April 30, 2021 Yes No No |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income (Loss) Before Provision for Income Taxes By Taxing Jurisdiction | Income (loss) before provision for income taxes by taxing jurisdiction for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 U.S. $ (43,408 ) $ (69,202 ) $ (41,635 ) Foreign 52,995 246,472 145,570 $ 9,587 $ 177,270 $ 103,935 |
Schedule of Provision for Income Taxes Recognized in Consolidated Statements of Operations | Note 11. Income Taxes (continued) Provision for income taxes recognized in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 was comprised of the following: Year Ended December 31, 2019 2018 2017 U.S. Federal and State current income tax provision $ 342 $ — $ — Foreign current income tax provision 26,757 32,085 11,396 Total current income tax provision 27,099 32,085 11,396 Foreign deferred income tax provision (benefit) (7,873 ) 16,596 22,056 Total income tax provision $ 19,226 $ 48,681 $ 33,452 |
Reconciliation of Effective Tax Rate | Differences between the U.S. Federal statutory and the Company’s effective rates for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 U.S. Federal statutory rate 21% 21% 35% U.S. Federal statutory rate on income before provision for income taxes $ (2,013 ) $ (37,227 ) $ (36,377 ) Tax differential on foreign income (5,368 ) (17,511 ) 10,398 Effect of foreign earnings (a) (13,747 ) (51,639 ) (3,584 ) Change in undistributed earnings — — 13,297 Change in tax rate — — (26,627 ) Valuation allowance (11,643 ) 64,573 5,750 Tax benefit of partnership structure 3,841 4,208 4,937 Non-taxable foreign subsidies 3,200 2,908 2,735 True-up of prior year taxes 6,031 (9,877 ) (3,685 ) Foreign exchange on valuation allowance 356 (878 ) 1,953 Foreign exchange on settlement of debt — 879 1,342 Other 117 (4,117 ) (3,591 ) Provision for income taxes $ (19,226 ) $ (48,681 ) $ (33,452 ) (a) Primarily due to the impact of the GILTI provision . |
Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities as of December 31, 2019 and December 31, 2018 were comprised of the following: December 31, 2019 2018 German tax loss carryforwards $ 31,317 $ 35,364 U.S. tax loss carryforwards and credits 4,671 8,982 Canadian tax loss carryforwards 16,392 — Basis difference between income tax and financial reporting with respect to operating pulp mills (132,100 ) (138,541 ) Long-term debt (7,388 ) (7,232 ) Payable and accrued expenses 577 4,582 Deferred pension liability 11,270 9,657 Finance leases 10,072 8,269 Research and development expense pool 3,397 3,150 Other (4,050 ) (4,848 ) (65,842 ) (80,617 ) Valuation allowance (22,759 ) (11,116 ) Net deferred income tax liability $ (88,601 ) $ (91,733 ) Comprised of: Deferred income tax asset $ 1,246 $ 1,374 Deferred income tax liability (89,847 ) (93,107 ) Net deferred income tax liability $ (88,601 ) $ (91,733 ) |
Summary of Tax Carryforwards | Note 11. Income Taxes (continued) The following table details the scheduled expiration dates of the Company’s net operating loss, interest and income tax credit carryforwards as of December 31, 2019: Amount Expiration U.S. Interest $ 21,800 Indefinite Germany Net operating loss $ 69,300 Indefinite Interest $ 82,000 Indefinite Canada Net operating loss $ 60,700 2036 – 2039 Scientific research and experimental development tax credit $ 4,700 2030 – 2037 Australia Net operating loss $ 11,100 Indefinite |
Summary of Changes in Valuation Allowance | Changes in valuation allowances related to net deferred tax assets for the years ended December 31, 2019 and 2018 were as follows: December 31, 2019 2018 Balance as of January 1 $ 11,116 $ 75,689 Additions (reversals) U.S. (4,503 ) (37,709 ) Canada 16,188 (26,384 ) Australia (398 ) 398 The impact of changes in foreign exchange rates 356 (878 ) Balance as of December 31 $ 22,759 $ 11,116 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity [Line Items] | |
Summary of Dividends Declared | The Company’s board of directors declared quarterly dividends during the years ended December 31, 2019 and 2018 as follows: Date Declared Dividend Per Common Share Amount February 14, 2019 $ 0.1250 $ 8,204 May 2, 2019 0.1375 9,025 August 1, 2019 0.1375 9,025 October 31, 2019 0.1375 9,025 $ 0.5375 $ 35,279 Date Declared Dividend Per Common Share Amount February 15, 2018 $ 0.1250 $ 8,147 May 3, 2018 0.1250 8,150 July 26, 2018 0.1250 8,150 October 25, 2018 0.1250 8,150 $ 0.5000 $ 32,597 |
Performance Share Units | |
Stockholders' Equity [Line Items] | |
Summary of Share Activity | PSU activity during the year ended December 31, 2019 was as follows: Number of PSUs Weighted Average Grant Date Fair Value Per Unit Outstanding as of January 1, 2019 2,036,008 $ 9.59 Granted 641,206 15.34 Vested and issued (449,395 ) 6.02 Forfeited (462,843 ) 6.20 Outstanding as of December 31, 2019 1,764,976 $ 13.48 |
Restricted Stock | |
Stockholders' Equity [Line Items] | |
Summary of Share Activity | Restricted share activity during the year ended December 31, 2019 was as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of January 1, 2019 31,130 $ 16.70 Granted 31,405 14.33 Vested (31,130 ) 16.70 Outstanding as of December 31, 2019 31,405 $ 14.33 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income (Loss) Per Share | The reconciliation of basic and diluted net income (loss) per share for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Net income (loss) Basic and diluted $ (9,639 ) $ 128,589 $ 70,483 Net income (loss) per common share Basic $ (0.15 ) $ 1.97 $ 1.09 Diluted $ (0.15 ) $ 1.96 $ 1.08 Weighted average number of common shares outstanding: Basic (a) 65,553,196 65,133,467 64,915,955 Effect of dilutive shares: PSUs — 619,411 458,236 Restricted shares — 17,962 18,914 Diluted 65,553,196 65,770,840 65,393,105 (a) For the year ended December 31, 2019, the basic weighted average number of common shares outstanding excludes 31,405 restricted shares which have been issued, but have not vested as of December 31, 2019 (2018 – 31,130 restricted shares; 2017 – 43,635 restricted shares). |
Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share | Instruments excluded from the calculation of net income (loss) per common share because they were anti-dilutive for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 PSUs 1,764,976 — — Restricted shares 31,405 — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Change in Accumulated Other Comprehensive Loss by Components | The change in accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2019 and 2018 was as follows: Foreign Currency Translation Adjustment Defined Benefit Pension and Other Post- Retirement Benefit Items Total Balance as of December 31, 2017 $ (50,101 ) $ (8,900 ) $ (59,001 ) Other comprehensive income (loss) before reclassifications (76,899 ) 7,022 (69,877 ) Amounts reclassified from accumulated other comprehensive loss — 708 708 Other comprehensive income (loss), net of taxes (76,899 ) 7,730 (69,169 ) Balance as of December 31, 2018 (127,000 ) (1,170 ) (128,170 ) Other comprehensive income (loss) before reclassifications 12,291 (944 ) 11,347 Amounts reclassified from accumulated other comprehensive loss — 263 263 Other comprehensive income (loss), net of taxes 12,291 (681 ) 11,610 Balance as of December 31, 2019 $ (114,709 ) $ (1,851 ) $ (116,560 ) |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about certain segment data for the years ended December 31, 2019, 2018 and 2017, was as follows: December 31, 2019 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 Operating income (loss) $ 90,583 $ 7,349 $ (13,929 ) $ 84,003 Depreciation and amortization $ 117,108 $ 7,966 $ 1,320 $ 126,394 Purchase of property, plant and equipment $ 103,066 $ 28,425 $ 543 $ 132,034 Total assets (a) $ 1,782,105 $ 83,102 $ 200,513 $ 2,065,720 Revenues by major products Pulp $ 1,370,742 $ — $ — $ 1,370,742 Lumber — 142,243 — 142,243 Energy and chemicals 86,381 9,721 7,351 103,453 Wood residuals — 7,973 — 7,973 Total revenues $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 Revenues by geographical markets (b) U.S. $ 168,197 $ 54,098 $ — $ 222,295 Germany 419,472 53,734 — 473,206 China 430,508 — — 430,508 Other countries 438,946 52,105 7,351 498,402 Total revenues $ 1,457,123 $ 159,937 $ 7,351 $ 1,624,411 (a) Total assets for the pulp segment includes the Company’s $53,122 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship-to location provided by the customer. December 31, 2018 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Operating income (loss) $ 274,356 $ 6,203 $ (12,692 ) $ 267,867 Depreciation and amortization $ 87,628 $ 8,485 $ 616 $ 96,729 Purchase of property, plant and equipment $ 66,207 $ 20,682 $ 123 $ 87,012 Total assets (a) $ 1,698,071 $ 131,754 $ 145,910 $ 1,975,735 Revenues by major products Pulp $ 1,190,588 $ — $ — $ 1,190,588 Lumber — 168,663 — 168,663 Energy and chemicals 77,616 10,831 478 88,925 Wood residuals — 9,542 — 9,542 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 Revenues by geographical markets (b) U.S. $ 55,692 $ 52,770 $ — $ 108,462 Germany 499,620 73,854 — 573,474 China 291,657 — — 291,657 Other countries 421,235 62,412 478 484,125 Total revenues $ 1,268,204 $ 189,036 $ 478 $ 1,457,718 (a) Total assets for the pulp segment includes the Company’s $62,574 investment in joint ventures, primarily for the CPP mill. (b) Sales are attributed to countries based on the ship – Note 16. Business Segment Information (continued) December 31, 2017 Pulp Wood Products Corporate and Other Consolidated Revenues from external customers $ 1,071,715 $ 97,430 $ — $ 1,169,145 Operating income (loss) $ 171,279 $ 5,610 $ (8,335 ) $ 168,554 Depreciation and amortization $ 80,833 $ 4,060 $ 401 $ 85,294 Purchase of property, plant and equipment $ 54,534 $ 3,197 $ 184 $ 57,915 Total assets $ 1,253,545 $ 116,320 $ 354,845 $ 1,724,710 Revenues by major products Pulp $ 979,645 $ — $ — $ 979,645 Lumber — 82,176 — 82,176 Energy and chemicals 92,070 8,872 — 100,942 Wood residuals — 6,382 — 6,382 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 Revenues by geographical markets (a) U.S. $ 23,572 $ 20,060 $ — $ 43,632 Germany 421,895 47,146 — 469,041 China 292,231 — — 292,231 Other countries 334,017 30,224 — 364,241 Total revenues $ 1,071,715 $ 97,430 $ — $ 1,169,145 (a) Sales are attributed to countries based on the ship-to location provided by the customer. |
Schedule of Long Lived Assets by Geographic Area | The Company’s long-lived assets by geographic area based on location of the asset as of December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 2018 Germany $ 646,101 $ 655,260 Canada 410,468 355,817 Australia 17,673 18,180 $ 1,074,242 $ 1,029,257 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of the Outstanding Debt | The estimated fair values of the Company’s outstanding debt under the fair value hierarchy as of December 31, 2019 and December 31, 2018 were as follows: Fair value measurements as of December 31, 2019 using: Description Level 1 Level 2 Level 3 Total Senior notes $ — $ 1,156,673 $ — $ 1,156,673 Fair value measurements as of December 31, 2018 using: Description Level 1 Level 2 Level 3 Total Revolving credit facility $ — $ 58,968 $ — $ 58,968 Senior notes — 965,000 — 965,000 $ — $ 1,023,968 $ — $ 1,023,968 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Lease cost: Operating lease cost $ 3,322 $ 2,655 $ 2,994 Finance lease cost: Amortization of right-of-use assets 3,768 3,595 3,435 Interest on lease liabilities 1,370 1,299 934 Total lease cost $ 8,460 $ 7,549 $ 7,363 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the years ended December 31, 2019, 2018 and 2017 were as follows: Year Ended December 31, 2019 2018 2017 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,322 $ 2,655 $ 2,994 Operating cash flows from finance leases $ 1,370 $ 1,299 $ 934 Financing cash flows from finance leases $ 3,344 $ 3,462 $ 3,262 |
Other Information Related to Leases | Other information related to leases for the years ended December 31, 2019, 2018 and 2017 was as follows: Year Ended December 31, 2019 2018 2017 Weighted average remaining lease term: Operating leases 7 years 7 years 8 years Finance leases 10 years 9 years 9 years Weighted average discount rate: Operating leases 7 % Finance leases 4 % 6 % 4 % |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of December 31, 2019 and December 31, 2018 was as follows: December 31, 2019 2018 Operating Leases Operating lease right-of-use assets $ 13,004 Other current liabilities $ 2,484 Operating lease liabilities 10,520 Total operating lease liabilities $ 13,004 Finance Leases Property and equipment, gross $ 49,393 $ 44,756 Accumulated depreciation (16,571 ) (15,963 ) Property and equipment, net $ 32,822 $ 28,793 Other current liabilities $ 3,382 $ 4,911 Finance lease liabilities 31,103 24,669 Total finance lease liabilities $ 34,485 $ 29,580 |
Schedule of Maturities of Lease Liabilities | As of December 31, 2019, maturities of lease liabilities were as follows: Finance Leases Operating Leases 2020 $ 4,472 $ 3,218 2021 4,343 3,071 2022 4,169 2,809 2023 4,288 2,087 2024 4,184 1,378 Thereafter 19,142 3,410 Total lease payments 40,598 15,973 Less: imputed interest (6,113 ) (2,969 ) Total lease liability $ 34,485 $ 13,004 |
Minimum Lease Payments Under Non-cancellable Finance and Operating Leases | As of December 31, 2018, minimum lease payments under non-cancellable finance and operating leases were as follows: Finance Leases Operating Leases 2019 $ 6,302 $ 3,309 2020 3,601 2,963 2021 3,441 2,717 2022 3,278 2,557 2023 3,410 2,057 Thereafter 17,025 5,360 Total lease payments 37,057 $ 18,963 Less: imputed interest (7,477 ) Total lease liability $ 29,580 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)mill | Jan. 01, 2019USD ($) | Dec. 31, 2018mill | Dec. 10, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of pulp mills | 4 | 4 | ||
Net actuarial gain (loss) percent that is exceeded for amortization | 10.00% | |||
Right-of-use assets for operating leases | $ | $ 13,004 | $ 14,700 | ||
Lease liabilities for operating leases | $ | $ 13,004 | $ 14,700 | ||
MPR - CPP | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |
MPR - Peace River | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership percentage | 100.00% | 100.00% | ||
Canada | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of pulp mills | 2 | |||
Germany | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of pulp mills | 2 | |||
Number of sawmills | 1 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 10, 2018 | Oct. 18, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Payments to acquire business for cash | $ 6,380 | $ 380,312 | $ 61,627 | |||
Acquisition commitment fee | $ 0 | $ 5,250 | 0 | |||
MPR - Peace River | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 100.00% | 100.00% | ||||
MPR - CPP | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |||
MPR - PRLLP | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 50.00% | |||||
Mercer Forestry Services Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire business for cash | $ 6,938 | |||||
Acquisition related costs | $ 265 | |||||
MPR | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 1,871 | |||||
Acquisitions, Consideration Transferred | $ 344,030 | |||||
Revenues | 29,907 | |||||
Net loss | 978 | |||||
Acquisition commitment fee | 5,250 | |||||
Additional interest expense related to debt issued to finance acquisition | 25,190 | 26,989 | ||||
Additional depreciation expense | 11,679 | $ 9,776 | ||||
Mercer Sandalwood | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 777 | |||||
Acquisitions, Consideration Transferred | $ 35,724 | |||||
Revenues | 478 | |||||
Net loss | $ 907 |
Acquisitions - Schedule of Allo
Acquisitions - Schedule of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed - (Details) - USD ($) $ in Thousands | Dec. 10, 2018 | Oct. 18, 2018 |
MPR | ||
Business Acquisition [Line Items] | ||
Current assets | $ 134,748 | |
Property, plant and equipment | 214,260 | |
Investment in joint ventures | 55,325 | |
Amortizable intangible assets, timber cutting rights | 37,634 | |
Other long term-assets | 392 | |
Total assets acquired | 442,359 | |
Current liabilities | 35,578 | |
Pension obligations | 9,747 | |
Deferred income tax | 49,907 | |
Other long-term liabilities | 3,097 | |
Total liabilities assumed | 98,329 | |
Net assets acquired | 344,030 | |
Deferred income tax liability | $ (49,907) | |
Mercer Sandalwood | ||
Business Acquisition [Line Items] | ||
Property, plant and equipment | $ 18,490 | |
Deferred income tax | 2,464 | |
Net assets acquired | 35,724 | |
Net working capital | 5,111 | |
Sandalwood tree plantations | 14,587 | |
Deferred income tax liability | $ (2,464) |
Acquisitions - Schedule of Al_2
Acquisitions - Schedule of Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) | Dec. 10, 2018 | Dec. 31, 2019 | Oct. 18, 2018 |
Business Acquisition [Line Items] | |||
Time period timber cutting rights discounted | 30 years | ||
Measurement Input, Discount Rate | |||
Business Acquisition [Line Items] | |||
Sandalwood tree plantations, measurement input | 10.50% | ||
MPR | |||
Business Acquisition [Line Items] | |||
Discount rate used to value timber cutting rights | 12.00% | ||
Timber cutting rights | |||
Business Acquisition [Line Items] | |||
Intangible assets, useful life | 30 years | 30 years |
Acquisitions - Schedule of Unau
Acquisitions - Schedule of Unaudited Proforma Information (Details) - MPR - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,906,697 | $ 1,503,446 |
Net income | $ 189,431 | $ 42,267 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable [Line Items] | ||
Accounts receivable | $ 208,740 | $ 252,692 |
Trade accounts receivable | ||
Accounts Receivable [Line Items] | ||
Accounts receivable | 172,626 | 230,426 |
Other non-trade receivables | ||
Accounts Receivable [Line Items] | ||
Accounts receivable | $ 36,114 | $ 22,266 |
Accounts Receivable - Schedul_2
Accounts Receivable - Schedule of Accounts Receivable (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade accounts receivable | ||
Accounts Receivable [Line Items] | ||
Allowance | $ 164 | $ 0 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Net [Abstract] | ||
Raw materials | $ 99,754 | $ 103,983 |
Finished goods | 77,815 | 114,304 |
Spare parts and other | 95,030 | 85,526 |
Inventories | $ 272,599 | $ 303,813 |
Inventories - Additional Inform
Inventories - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Inventory [Line Items] | |
Inventory impairment | $ 9,200 |
Raw Materials | |
Inventory [Line Items] | |
Inventory write-down | 3,500 |
Finished Goods Inventory | |
Inventory [Line Items] | |
Inventory write-down | 5,700 |
Canadian Pulp Mills | |
Inventory [Line Items] | |
Inventory impairment | $ 23,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,159,995 | $ 2,004,372 |
Less: accumulated depreciation | (1,085,753) | (975,115) |
Property, plant and equipment, net | 1,074,242 | 1,029,257 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 54,385 | 54,832 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 255,233 | 251,408 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 50 years | |
Production and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,850,377 | $ 1,698,132 |
Production and other equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 5 years | |
Production and other equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Useful Life | 25 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Unamortized government grants | $ 190,571 | $ 211,532 |
Long-lived assets carrying value | 1,074,242 | 1,029,257 |
Asset retirement obligation | 9,516 | $ 8,752 |
Canadian Pulp Mills | ||
Property, Plant and Equipment [Line Items] | ||
Long-lived assets carrying value | $ 447,510 |
Amortizable Intangible Assets -
Amortizable Intangible Assets - Schedule of Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 10, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible assets [Line Items] | |||
Gross Carrying Amount | $ 80,675 | $ 75,104 | |
Accumulated Amortization | (27,304) | (21,177) | |
Net | 53,371 | 53,927 | |
Energy Sales Agreement | |||
Intangible assets [Line Items] | |||
Gross Carrying Amount | 16,909 | 17,234 | |
Accumulated Amortization | (4,182) | (1,977) | |
Net | $ 12,727 | 15,257 | |
Intangible assets, useful life | 11 years | ||
Timber cutting rights | |||
Intangible assets [Line Items] | |||
Gross Carrying Amount | $ 38,767 | 34,139 | |
Accumulated Amortization | (1,369) | ||
Net | $ 37,398 | 34,139 | |
Intangible assets, useful life | 30 years | 30 years | |
Software and Other Intangible Assets | |||
Intangible assets [Line Items] | |||
Gross Carrying Amount | $ 24,999 | 23,731 | |
Accumulated Amortization | (21,753) | (19,200) | |
Net | $ 3,246 | $ 4,531 | |
Intangible assets, useful life | 5 years |
Amortizable Intangible Assets_2
Amortizable Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to intangible assets | $ 5,930 | $ 5,022 | $ 4,030 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets - Schedule of Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 4,284 |
2021 | 4,007 |
2022 | 3,272 |
2023 | 2,919 |
2024 | $ 2,907 |
Other Long-Term Assets - Schedu
Other Long-Term Assets - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Sandalwood tree plantations | $ 21,603 | $ 13,258 |
Other | 4,435 | 4,646 |
Other long-term assets | $ 26,038 | $ 17,904 |
Accounts Payable and Other - Sc
Accounts Payable and Other - Schedule of Accounts Payable and Other (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 73,721 | $ 36,333 |
Accrued expenses | 111,696 | 95,936 |
Interest payable | 33,198 | 16,861 |
Income tax payable | 28,080 | 29,818 |
Legal cost award payable | 0 | 6,951 |
Other | 8,849 | 8,585 |
Accounts payable and other | $ 255,544 | $ 194,484 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,087,932 | $ 1,041,389 |
Senior Notes 2022 | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 98,918 |
2024 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 246,911 | 246,154 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 545,665 | 342,761 |
2026 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 295,356 | 294,588 |
German Joint RCF - EUR 200 Million | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 58,968 |
MPR Credit Facility - C$60 Million | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | |
Celgar Credit Facility - C$40.0 Million | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 0 |
Rosenthal Credit Facility - EUR 2.6 Million | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 0 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Details) | Oct. 31, 2019USD ($) | Dec. 20, 2017USD ($) | Feb. 03, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019CAD ($) | Mar. 16, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 1,087,932,000 | $ 1,041,389,000 | |||||||
Loss on settlement of debt | 4,750,000 | 21,515,000 | $ 10,696,000 | ||||||
Senior Notes 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | 100,000,000 | ||||||||
Debt, redemption value | $ 100,000,000 | 300,000,000 | |||||||
Loss on settlement of debt | 4,750,000 | 21,515,000 | |||||||
2024 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 250,000,000 | ||||||||
Debt, maturity date | Feb. 1, 2024 | ||||||||
2024 Senior Notes | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, redemption notice days | 30 days | ||||||||
2024 Senior Notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, redemption notice days | 60 days | ||||||||
2025 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 200,000,000 | $ 550,000,000 | $ 350,000,000 | ||||||
Debt, maturity date | Jan. 15, 2025 | Jan. 15, 2025 | |||||||
Debt, interest rate | 7.375% | ||||||||
Debt, issued price percentage of principal amount | 102.75% | 100.00% | |||||||
Long-term Debt | $ 202,063,000 | $ 342,682,000 | |||||||
Debt instrument, yield to worst percentage | 6.435% | ||||||||
2026 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 300,000,000 | $ 300,000,000 | |||||||
Debt, maturity date | Jan. 15, 2026 | Jan. 15, 2026 | |||||||
Debt, interest rate | 5.50% | ||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||
Long-term Debt | $ 293,795,000 | ||||||||
German Joint RCF - EUR 200 Million | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | € | € 200,000,000 | ||||||||
Long-term Debt | $ 0 | 58,968,000 | |||||||
Debt, description of variable basis spread | Euribor | ||||||||
Debt, amount of debt supporting bank guarantees | $ 12,410,000 | 11,000,000 | |||||||
Line of credit facility, remaining borrowing capacity | $ 212,270,000 | 189,000,000 | |||||||
German Joint RCF - EUR 200 Million | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 1.05% | ||||||||
German Joint RCF - EUR 200 Million | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 2.00% | ||||||||
MPR Credit Facility - C$60 Million | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 60,000,000 | ||||||||
Long-term Debt | $ 0 | ||||||||
Line of credit facility, remaining borrowing capacity | 45,440,000 | 59,000,000 | |||||||
Line of credit, letters of credit outstanding, amount | $ 754,000 | 1,000,000 | |||||||
MPR Credit Facility - C$60 Million | Canadian Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | designated prime rate | ||||||||
MPR Credit Facility - C$60 Million | Canadian Dollar Borrowings Rate Option 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | banker’s acceptance | ||||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1a | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | federal funds rate | ||||||||
Debt, variable basis spread | 0.50% | ||||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1b | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | LIBOR | ||||||||
Debt, variable basis spread | 1.00% | ||||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 1c | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | bank’s applicable reference rate for U.S. dollar loans | ||||||||
MPR Credit Facility - C$60 Million | US Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | LIBOR | ||||||||
MPR Credit Facility - C$60 Million | Minimum | Canadian Dollar Borrowings Rate Option 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 1.25% | ||||||||
MPR Credit Facility - C$60 Million | Minimum | US Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 1.25% | ||||||||
MPR Credit Facility - C$60 Million | Maximum | Canadian Dollar Borrowings Rate Option 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 1.50% | ||||||||
MPR Credit Facility - C$60 Million | Maximum | US Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, variable basis spread | 1.50% | ||||||||
Celgar Credit Facility - C$40.0 Million | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | 40,000,000 | ||||||||
Long-term Debt | $ 0 | 0 | |||||||
Line of credit facility, remaining borrowing capacity | 29,488,000 | 38,300,000 | |||||||
Line of credit, letters of credit outstanding, amount | $ 1,308,000 | $ 1,700,000 | |||||||
Required available borrowing capacity | 25.00% | ||||||||
Celgar Credit Facility - C$40.0 Million | Canadian Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | Canadian prime | ||||||||
Celgar Credit Facility - C$40.0 Million | Canadian Dollar Borrowings Rate Option 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | bankers acceptance | ||||||||
Debt, variable basis spread | 1.50% | ||||||||
Celgar Credit Facility - C$40.0 Million | US Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | U.S. base | ||||||||
Celgar Credit Facility - C$40.0 Million | U S Dollar Borrowings Rate Option1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, description of variable basis spread | LIBOR | ||||||||
Debt, variable basis spread | 1.50% | ||||||||
Celgar Credit Facility - C$40.0 Million | Canadian U S Dollar Borrowings Rate Option1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.25% | ||||||||
Celgar Credit Facility - C$40.0 Million | Canadian & US Dollar Borrowings Rate Option 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.125% | ||||||||
Rosenthal Credit Facility - EUR 2.6 Million | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | € | 2,600,000 | ||||||||
Long-term Debt | $ 0 | $ 0 | |||||||
Debt, description of variable basis spread | three-month Euribor | ||||||||
Debt, variable basis spread | 2.50% | ||||||||
Debt, amount of debt supporting bank guarantees | $ 2,867,000 | € 2,600,000 | |||||||
Line of credit facility, remaining borrowing capacity | $ 0 | ||||||||
Senior Notes 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, face amount | $ 250,000,000 | ||||||||
Debt, maturity date | Feb. 1, 2024 | ||||||||
Debt, interest rate | 6.50% | ||||||||
Debt, issued price percentage of principal amount | 100.00% | ||||||||
Long-term Debt | $ 244,711,000 | ||||||||
2019 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on settlement of debt | $ 10,696,000 | ||||||||
Debt, repurchase amount | $ 227,000,000 | ||||||||
Senior Notes 2025 and 2026 | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, redemption notice days | 10 days | ||||||||
Senior Notes 2025 and 2026 | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Notes, redemption notice days | 60 days |
Debt - Principal Maturities of
Debt - Principal Maturities of Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 250,000 |
Thereafter | 850,000 |
Total debt | $ 1,100,000 |
Debt Redemption Period for Seni
Debt Redemption Period for Senior Notes (Details) | 12 Months Ended |
Dec. 31, 2019 | |
2024 Senior Notes | Debt Instrument, Redemption, Period Four | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.25% |
2024 Senior Notes | Debt Instrument, Redemption, Period Five | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.625% |
2024 Senior Notes | Debt Instrument, Redemption, Period Six | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2025 Senior Notes | Debt Instrument Redemption Period Seven | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 103.688% |
2025 Senior Notes | Debt Instrument Redemption Period Eight | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.844% |
2025 Senior Notes | Debt Instrument Redemption Period Nine | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
2026 Senior Notes | Debt Instrument Redemption Period Ten | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 102.75% |
2026 Senior Notes | Debt Instrument, Redemption, Period Eleven | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 101.375% |
2026 Senior Notes | Debt Instrument, Redemption, Period Twelve | |
Debt Instrument [Line Items] | |
Debt Instrument, Redemption Price, Percentage | 100.00% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Obligations - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | $ 110,855 | |
Service cost | 3,139 | |
Interest cost | 4,064 | |
Benefit payments | (4,350) | |
Actuarial losses (gains) | 6,751 | |
Foreign currency exchange rate changes | 5,789 | |
Benefit obligation, ending balance | 126,248 | $ 110,855 |
Fair value of plan assets, beginning balance | 84,122 | |
Actual returns | 11,269 | |
Contributions | 4,467 | |
Foreign currency exchange rate changes | 4,483 | |
Fair value of plan assets, ending balance | 99,991 | 84,122 |
Funded status | (26,257) | |
Expected return on plan assets | (4,017) | |
Amortization of unrecognized items | 263 | |
Net benefit cost | 3,449 | |
Celgar and MPR | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 110,855 | 59,118 |
Benefit obligation transferred, MPR | 62,545 | |
Service cost | 736 | |
Interest cost | 2,118 | |
Benefit payments | (2,940) | |
Actuarial losses (gains) | (4,609) | |
Foreign currency exchange rate changes | (6,113) | |
Benefit obligation, ending balance | 110,855 | |
Fair value of plan assets, beginning balance | 84,122 | 37,057 |
Fair value plan assets transferred, MPR | 52,740 | |
Actual returns | 378 | |
Contributions | 1,133 | |
Foreign currency exchange rate changes | (4,246) | |
Fair value of plan assets, ending balance | 84,122 | |
Funded status | (26,733) | |
Expected return on plan assets | (1,694) | |
Amortization of unrecognized items | 708 | |
Net benefit cost | 1,868 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 95,996 | |
Service cost | 2,868 | |
Interest cost | 3,516 | |
Benefit payments | (3,703) | |
Actuarial losses (gains) | 9,228 | |
Foreign currency exchange rate changes | 5,091 | |
Benefit obligation, ending balance | 112,996 | 95,996 |
Fair value of plan assets, beginning balance | 84,122 | |
Actual returns | 11,269 | |
Contributions | 3,820 | |
Foreign currency exchange rate changes | 4,483 | |
Fair value of plan assets, ending balance | 99,991 | 84,122 |
Funded status | (13,005) | |
Expected return on plan assets | (4,017) | |
Amortization of unrecognized items | 941 | |
Net benefit cost | 3,308 | |
Pension Plan | Celgar and MPR | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 95,996 | 38,330 |
Benefit obligation transferred, MPR | 62,545 | |
Service cost | 269 | |
Interest cost | 1,409 | |
Benefit payments | (2,346) | |
Actuarial losses (gains) | 456 | |
Foreign currency exchange rate changes | (4,667) | |
Benefit obligation, ending balance | 95,996 | |
Fair value of plan assets, beginning balance | 84,122 | 37,057 |
Fair value plan assets transferred, MPR | 52,740 | |
Actual returns | 378 | |
Contributions | 539 | |
Foreign currency exchange rate changes | (4,246) | |
Fair value of plan assets, ending balance | 84,122 | |
Funded status | (11,874) | |
Expected return on plan assets | (1,694) | |
Amortization of unrecognized items | 915 | |
Net benefit cost | 899 | |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | 14,859 | |
Service cost | 271 | |
Interest cost | 548 | |
Benefit payments | (647) | |
Actuarial losses (gains) | (2,477) | |
Foreign currency exchange rate changes | 698 | |
Benefit obligation, ending balance | 13,252 | 14,859 |
Contributions | 647 | |
Funded status | (13,252) | |
Amortization of unrecognized items | (678) | |
Net benefit cost | 141 | |
Other Postretirement Benefits Plan | Celgar and MPR | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation, beginning balance | $ 14,859 | 20,788 |
Service cost | 467 | |
Interest cost | 709 | |
Benefit payments | (594) | |
Actuarial losses (gains) | (5,065) | |
Foreign currency exchange rate changes | (1,446) | |
Benefit obligation, ending balance | 14,859 | |
Contributions | 594 | |
Funded status | (14,859) | |
Amortization of unrecognized items | (207) | |
Net benefit cost | $ 969 |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Obligations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 3,715 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 1,400 | $ 1,024 | $ 959 |
Multiemployer Plan, Contributions by Employer | $ 2,203 | $ 2,218 | $ 1,969 |
Celgar [Member] | Debt securities [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 80.00% | ||
Celgar [Member] | Equity securities [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined benefit plan, plan assets, target allocation, percentage | 20.00% |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Obligations - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 4,355 |
2021 | 4,510 |
2022 | 4,696 |
2023 | 4,844 |
2024 | 5,052 |
2025-2029 | 28,198 |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 516 |
2021 | 544 |
2022 | 568 |
2023 | 593 |
2024 | 618 |
2025-2029 | $ 3,450 |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Obligations - Summary of Key Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Celgar [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 3.00% | 3.14% | 3.50% |
Benefit obligations, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Discount rate | 3.14% | 3.50% | 3.80% |
Net benefit cost, Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Net benefit cost, Expected rate of return on plan assets | 3.90% | 4.40% | 6.00% |
MPR | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, Discount rate | 3.20% | 3.90% | |
Benefit obligations, Rate of compensation increase | 2.75% | 2.75% | |
Net benefit cost, Discount rate | 3.90% | 3.95% | |
Net benefit cost, Rate of compensation increase | 2.75% | 3.25% | |
Net benefit cost, Expected rate of return on plan assets | 5.12% | 5.15% |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefit Obligations - Schedule of Assumed Health Care Cost Trend Rates (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for next year | 5.00% | 5.50% |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2021 | 2021 |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Obligations - Schedule of Defined Benefit Pension Plans' Assets Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | $ 99,991 | $ 84,122 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 99,991 | 84,122 |
Fair Value, Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 43,800 | 31,230 |
Equity securities [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 43,800 | 31,230 |
Equity securities [Member] | Fair Value, Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Equity securities [Member] | Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 55,757 | 49,724 |
Debt securities [Member] | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 55,757 | 49,724 |
Debt securities [Member] | Fair Value, Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Debt securities [Member] | Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 69 | 2,054 |
Cash | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 69 | 2,054 |
Cash | Fair Value, Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Cash | Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 365 | 1,114 |
Other | Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 365 | 1,114 |
Other | Fair Value, Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | 0 | 0 |
Other | Fair Value, Significant unobservable inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value measurements | $ 0 | $ 0 |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Obligations - Schedule of Multiemployer Plan (Details) - The Pulp and Paper Industry Pension Plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Multiemployer Plans [Line Items] | |||
Provincially Registered Plan Number | P085324 | ||
Expiration Date of Collective Bargaining Agreement | Apr. 30, 2021 | ||
Are the Company's contributions greater than 5% of total contributions | true | false | false |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income (Loss) Before Provision for Income Taxes By Taxing Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income from Continuing Operations before Income Taxes, U.S. | $ (43,408) | $ (69,202) | $ (41,635) |
Income from Continuing Operations before Income Taxes, Foreign | 52,995 | 246,472 | 145,570 |
Income before income taxes | $ 9,587 | $ 177,270 | $ 103,935 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes Recognized in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State current income tax provision | $ 342 | ||
Foreign current income tax provision | 26,757 | $ 32,085 | $ 11,396 |
Total current income tax provision | 27,099 | 32,085 | 11,396 |
Foreign deferred income tax provision (benefit) | (7,873) | 16,596 | 22,056 |
Total income tax provision | $ 19,226 | $ 48,681 | $ 33,452 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Entity | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income ax examination, description | The German tax authorities have completed examinations up to and including the 2015 tax year for all but three German entities. For these three entities the German tax authorities have completed examinations up to and including the 2013 tax year. The Company is generally not subject to U.S. or Canadian income tax examinations for tax years before 2016 and 2015, respectively | ||
Unrecognized Tax Benefits | $ 0 | $ 0 | |
Recognized interest and penalties related to unrecognized tax benefit | $ 0 | $ 0 | $ 0 |
U.S. Federal statutory rate | 21.00% | 21.00% | 35.00% |
Deferred asset reduction from change in tax rate | $ 27,445,000 | ||
Cumulative undistributed earnings of foreign subsidiaries | 22,398,000 | ||
Foreign Earnings Repatriated | $ 3,473,000 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 284,745,000 | ||
German Tax Authorities | Foreign Country | |||
Income tax examination not started, number of entities | Entity | 3 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
U.S. Federal statutory rate | 21.00% | 21.00% | 35.00% |
U.S. Federal statutory rate on income before provision for income taxes | $ (2,013) | $ (37,227) | $ (36,377) |
Tax differential on foreign income | (5,368) | (17,511) | 10,398 |
Effect of foreign earnings | (13,747) | (51,639) | (3,584) |
Change in undistributed earnings | 13,297 | ||
Change in tax rate | (26,627) | ||
Valuation allowance | (11,643) | 64,573 | 5,750 |
Tax benefit of partnership structure | 3,841 | 4,208 | 4,937 |
Non-taxable foreign subsidies | 3,200 | 2,908 | 2,735 |
True-up of prior year taxes | 6,031 | (9,877) | (3,685) |
Foreign exchange on valuation allowance | 356 | (878) | 1,953 |
Foreign exchange on settlement of debt | 879 | 1,342 | |
Other | 117 | (4,117) | (3,591) |
Total income tax provision | $ (19,226) | $ (48,681) | $ (33,452) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. tax loss carryforwards and credits | $ 4,671 | $ 8,982 | |
Basis difference between income tax and financial reporting with respect to operating pulp mills | (132,100) | (138,541) | |
Long-term debt | (7,388) | (7,232) | |
Payable and accrued expenses | 577 | 4,582 | |
Deferred pension liability | 11,270 | 9,657 | |
Finance leases | 10,072 | 8,269 | |
Research and development expense pool | 3,397 | 3,150 | |
Other (deferred tax liabilities) | (4,050) | (4,848) | |
Total gross deferred tax liability | (65,842) | (80,617) | |
Valuation allowance | (22,759) | (11,116) | $ (75,689) |
Net deferred income tax liability | (88,601) | (91,733) | |
Deferred income tax asset | 1,246 | 1,374 | |
Deferred income tax liability | (89,847) | (93,107) | |
Federal Ministry of Finance, Germany | |||
Foreign tax loss carryforwards | 31,317 | 35,364 | |
Canada Revenue Agency | |||
Foreign tax loss carryforwards | $ 16,392 | $ 0 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
United States | |
Income Taxes Disclosures [Line Items] | |
Interest carryforwards | $ 21,800 |
Other Tax Carryforward, Expiration Year | Indefinite |
Federal Ministry of Finance, Germany | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 69,300 |
Interest carryforwards | $ 82,000 |
Tax Loss Carryforwards, Expiration Year | Indefinite |
Other Tax Carryforward, Expiration Year | Indefinite |
Canada Revenue Agency | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 60,700 |
Scientific research and experimental development tax credit carryforwards | $ 4,700 |
Tax Loss Carryforwards, Expiration Year | 2036 – 2039 |
Tax Credits Carryforward, Expiration Year | 2030 – 2037 |
Australian Taxation Office | |
Income Taxes Disclosures [Line Items] | |
Net operating loss carryforwards | $ 11,100 |
Tax Loss Carryforwards, Expiration Year | Indefinite |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | ||
Valuation allowance, beginning of period | $ 11,116 | $ 75,689 |
Valuation allowance - the impact of changes in foreign exchange rates | 356 | (878) |
Valuation allowance, end of period | 22,759 | 11,116 |
United States | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | (4,503) | (37,709) |
Canada | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | 16,188 | (26,384) |
Australia | ||
Valuation Allowance [Line Items] | ||
Valuation Allowance - increase (decrease) amount | $ (398) | $ 398 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||||||||||
Date Declared | Oct. 31, 2019 | Aug. 1, 2019 | May 2, 2019 | Feb. 14, 2019 | Oct. 25, 2018 | Jul. 26, 2018 | May 3, 2018 | Feb. 15, 2018 | |||
Dividends declared per common share | $ 0.1375 | $ 0.1375 | $ 0.1375 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.5375 | $ 0.5000 | $ 0.4700 |
Dividends, Common Stock, Cash | $ 9,025 | $ 9,025 | $ 9,025 | $ 8,204 | $ 8,150 | $ 8,150 | $ 8,150 | $ 8,147 | $ 35,279 | $ 32,597 | $ 30,553 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 13, 2020 | May 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per common share | $ 0.1375 | $ 0.1375 | $ 0.1375 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.1250 | $ 0.5375 | $ 0.5000 | $ 0.4700 | ||
Preferred shares, authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred shares, par value | $ 1 | $ 1 | |||||||||||
Preferred shares, issued | 0 | 0 | |||||||||||
Payments for repurchase of common stock | $ 754 | ||||||||||||
Common shares available for grant | 2,600,000 | 2,600,000 | |||||||||||
Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Restricted Stock Rights | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Stock Appreciation Rights (SARs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 0 | ||||||||||||
Shares outstanding | 0 | 0 | |||||||||||
Performance Share Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 641,206 | ||||||||||||
Shares outstanding | 1,764,976 | 2,036,008 | 1,764,976 | 2,036,008 | |||||||||
Vesting period | 3 years | ||||||||||||
Expense recognized | $ 2,557 | $ 3,422 | $ 2,437 | ||||||||||
Weighted-average grant date fair value of awards granted | $ 15.34 | $ 12.75 | $ 12 | ||||||||||
Fair value of vested and issued shares or units | $ 6,754 | $ 1,992 | $ 3,445 | ||||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Shares granted | 31,405 | ||||||||||||
Shares outstanding | 31,405 | 31,130 | 31,405 | 31,130 | |||||||||
Vesting period | 1 year | ||||||||||||
Expense recognized | $ 479 | $ 518 | $ 453 | ||||||||||
Weighted-average grant date fair value of awards granted | $ 14.33 | $ 16.70 | $ 11.80 | ||||||||||
Fair value of vested and issued shares or units | $ 466 | $ 703 | $ 437 | ||||||||||
Unrecognized compensation cost | $ 188 | 188 | |||||||||||
Share Repurchase Program | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Maximum Amount Of Stock Which Can Be Repurchased, Value | $ 50,000 | ||||||||||||
Payments for repurchase of common stock | $ 754 | ||||||||||||
Stock repurchased during period, shares | 52,879 | ||||||||||||
Average repurchase price per share | $ 14.25 | ||||||||||||
Series A | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Preferred shares, authorized | 2,000,000 | 2,000,000 | |||||||||||
Dividend Declared | Subsequent Event | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Dividends declared per common share | $ 0.1375 | ||||||||||||
Dividends Payable, Date to be Paid | Apr. 1, 2020 | ||||||||||||
Dividends Payable, Date of Record | Mar. 25, 2020 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Share Activity - PSU's (Details) - Performance Share Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 2,036,008 | ||
Granted | 641,206 | ||
Vested and issued (in shares) | (449,395) | ||
Forfeited (in shares) | (462,843) | ||
Outstanding - Ending | 1,764,976 | 2,036,008 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 9.59 | ||
Granted | 15.34 | $ 12.75 | $ 12 |
Vested and issued | 6.02 | ||
Forfeited | 6.20 | ||
Outstanding - Ending | $ 13.48 | $ 9.59 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Share Activity - Restricted Shares (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - Beginning | 31,130 | ||
Granted | 31,405 | ||
Vested | (31,130) | ||
Outstanding - Ending | 31,405 | 31,130 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - Beginning | $ 16.70 | ||
Granted | 14.33 | $ 16.70 | $ 11.80 |
Vested and issued | 16.70 | ||
Outstanding - Ending | $ 14.33 | $ 16.70 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Net income (loss) - basic and diluted | $ (9,639) | $ 128,589 | $ 70,483 |
Net income (loss) per common share, basic | $ (0.15) | $ 1.97 | $ 1.09 |
Net income (loss) per common share, diluted | $ (0.15) | $ 1.96 | $ 1.08 |
Basic, Weighted average number of common shares outstanding | 65,553,196 | 65,133,467 | 64,915,955 |
Diluted, Weighted average number of common shares outstanding | 65,553,196 | 65,770,840 | 65,393,105 |
Performance Share Units | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 619,411 | 458,236 | |
Restricted Stock | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Effect of dilutive instruments (in shares) | 17,962 | 18,914 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Reconciliation of Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Stock | |||
Net Income Per Common Share Basic And Diluted [Line Items] | |||
Contingently issuable shares excluded from the basic weighted average shares outstanding | 31,405 | 31,130 | 43,635 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Anti-Dilutive Instruments Excluded from Calculation of Net Income (Loss) Per Common Share (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Performance Share Units | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 1,764,976 |
Restricted Stock | |
Net Income Per Common Share Basic And Diluted [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 31,405 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Change in Accumulated Other Comprehensive Loss by Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total shareholders' equity | $ 581,429 | $ 550,666 | $ 379,128 |
Other comprehensive income (loss) before reclassifications | 11,347 | (69,877) | |
Amounts reclassified from accumulated other comprehensive loss | 263 | 708 | |
Other comprehensive income (loss), net of taxes | 11,610 | (69,169) | 126,268 |
Total shareholders' equity | 550,403 | 581,429 | 550,666 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total shareholders' equity | (127,000) | (50,101) | |
Other comprehensive income (loss) before reclassifications | 12,291 | (76,899) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income (loss), net of taxes | 12,291 | (76,899) | |
Total shareholders' equity | (114,709) | (127,000) | (50,101) |
Defined Benefit Pension and Other Post-Retirement Benefit Items | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total shareholders' equity | (1,170) | (8,900) | |
Other comprehensive income (loss) before reclassifications | (944) | 7,022 | |
Amounts reclassified from accumulated other comprehensive loss | 263 | 708 | |
Other comprehensive income (loss), net of taxes | (681) | 7,730 | |
Total shareholders' equity | (1,851) | (1,170) | (8,900) |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total shareholders' equity | (128,170) | (59,001) | (185,269) |
Other comprehensive income (loss), net of taxes | 11,610 | (69,169) | 126,268 |
Total shareholders' equity | $ (116,560) | $ (128,170) | $ (59,001) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 10, 2018 | |
MPR - CPP | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | 50.00% | |
Related party transaction, purchases from related party | $ 96,763 | $ 6,044 | $ 0 | |
Receivable balance from related party | $ 3,462 | 1,167 | ||
MPR - logging JV | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 50.00% | |||
Related party transaction, purchases from related party | $ 16,681 | 2,232 | $ 0 | |
Accounts payable, related parties | $ 1,151 | $ 2,343 |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)millcustomer | Dec. 31, 2018USD ($)millcustomer | Dec. 31, 2017USD ($)customer | Dec. 10, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of pulp mills | mill | 4 | 4 | ||
Revenues | $ 1,624,411 | $ 1,457,718 | $ 1,169,145 | |
Number of customers accounting for 10% or more of sales | customer | 0 | 1 | 1 | |
Revenue from Contract with Customer | Customer Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Revenue major customer percentage | 13.00% | 13.00% | ||
Revenue from Contract with Customer | Customer Concentration Risk | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue major customer percentage | 10.00% | |||
Intersegment Eliminations | Market Pulp | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 531 | $ 1,343 | $ 1,350 | |
Intersegment Eliminations | Wood Products | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 15,190 | $ 18,537 | $ 12,697 | |
MPR - CPP | ||||
Segment Reporting Information [Line Items] | ||||
Ownership percentage | 50.00% | 50.00% | 50.00% |
Business Segment Information _2
Business Segment Information - Schedule of Results by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 1,624,411 | $ 1,457,718 | $ 1,169,145 |
Operating income (loss) | 84,003 | 267,867 | 168,554 |
Depreciation and amortization | 126,394 | 96,729 | 85,294 |
Purchase of property, plant and equipment | 132,034 | 87,012 | 57,915 |
Total assets | 2,065,720 | 1,975,735 | 1,724,710 |
Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,370,742 | 1,190,588 | 979,645 |
Lumber | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 142,243 | 168,663 | 82,176 |
Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 103,453 | 88,925 | 100,942 |
Wood Residuals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 7,973 | 9,542 | 6,382 |
Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,457,123 | 1,268,204 | 1,071,715 |
Operating income (loss) | 90,583 | 274,356 | 171,279 |
Depreciation and amortization | 117,108 | 87,628 | 80,833 |
Purchase of property, plant and equipment | 103,066 | 66,207 | 54,534 |
Total assets | 1,782,105 | 1,698,071 | 1,253,545 |
Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 159,937 | 189,036 | 97,430 |
Operating income (loss) | 7,349 | 6,203 | 5,610 |
Depreciation and amortization | 7,966 | 8,485 | 4,060 |
Purchase of property, plant and equipment | 28,425 | 20,682 | 3,197 |
Total assets | 83,102 | 131,754 | 116,320 |
Operating Segments | Pulp | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 1,370,742 | 1,190,588 | 979,645 |
Operating Segments | Pulp | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating Segments | Lumber | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating Segments | Lumber | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 142,243 | 168,663 | 82,176 |
Operating Segments | Energy and Chemicals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 86,381 | 77,616 | 92,070 |
Operating Segments | Energy and Chemicals | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 9,721 | 10,831 | 8,872 |
Operating Segments | Wood Residuals | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Operating Segments | Wood Residuals | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 7,973 | 9,542 | 6,382 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 7,351 | 478 | 0 |
Operating income (loss) | (13,929) | (12,692) | (8,335) |
Depreciation and amortization | 1,320 | 616 | 401 |
Purchase of property, plant and equipment | 543 | 123 | 184 |
Total assets | 200,513 | 145,910 | 354,845 |
Corporate, Non-Segment | Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, Non-Segment | Lumber | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Corporate, Non-Segment | Energy and Chemicals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 7,351 | 478 | 0 |
Corporate, Non-Segment | Wood Residuals | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 222,295 | 108,462 | 43,632 |
United States | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 168,197 | 55,692 | 23,572 |
United States | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 54,098 | 52,770 | 20,060 |
United States | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 473,206 | 573,474 | 469,041 |
Germany | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 419,472 | 499,620 | 421,895 |
Germany | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 53,734 | 73,854 | 47,146 |
Germany | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
China | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 430,508 | 291,657 | 292,231 |
China | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 430,508 | 291,657 | 292,231 |
China | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
China | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Other Countries | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 498,402 | 484,125 | 364,241 |
Other Countries | Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 438,946 | 421,235 | 334,017 |
Other Countries | Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 52,105 | 62,412 | 30,224 |
Other Countries | Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 7,351 | $ 478 | $ 0 |
Business Segment Information _3
Business Segment Information - Schedule of Results by Segment (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting [Abstract] | ||
Investment in joint ventures | $ 53,122 | $ 62,574 |
Business Segment Information _4
Business Segment Information - Schedule Of Long Lived Assets By Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,074,242 | $ 1,029,257 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 646,101 | 655,260 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 410,468 | 355,817 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 17,673 | $ 18,180 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Estimated Fair Values of Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,023,968 | |
Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 58,968 | |
Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,156,673 | 965,000 |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Quoted Prices In Active Markets For Identical Assets (Level 1) | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Fair Value, Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,023,968 | |
Fair Value, Significant Other Observable Inputs (Level 2) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 58,968 | |
Fair Value, Significant Other Observable Inputs (Level 2) | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 1,156,673 | 965,000 |
Fair Value, Significant unobservable inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Significant unobservable inputs (Level 3) | Revolving credit facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | |
Fair Value, Significant unobservable inputs (Level 3) | Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value of senior notes, net of note issuance costs | $ 1,087,932 | $ 1,041,389 |
Accounts receivable | 208,740 | 252,692 |
Cash and cash equivalents | 351,085 | 240,491 |
Senior notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Carrying value of senior notes, net of note issuance costs | $ 1,087,932 | $ 982,421 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Weighted Average Remaining Lease Term | 10 years | 9 years | 9 years |
Consumer Price Index Basis Point Change | 1.00% | ||
Lessee, Finance Lease, Lease Not yet Commenced, Term of Contract | 12 years | ||
Unrecorded Unconditional Purchase Obligation | $ 31,200 | ||
Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 6 years | ||
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Weighted Average Remaining Lease Term | 9 years | ||
Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Maximum | Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 12 years | ||
Maximum | Railroad Transportation Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 12 years | ||
Maximum | Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 8 years | ||
Minimum | Land | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Minimum | Railroad Transportation Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 9 years | ||
Minimum | Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 4 years |
Lease Commitments - Components
Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 3,322 | $ 2,655 | $ 2,994 |
Finance lease, amortization of right-of-use assets | 3,768 | 3,595 | 3,435 |
Finance lease, interest on lease liabilities | 1,370 | 1,299 | 934 |
Total lease cost | $ 8,460 | $ 7,549 | $ 7,363 |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 3,322 | $ 2,655 | $ 2,994 |
Operating cash flows from finance leases | 1,370 | 1,299 | 934 |
Financing cash flows from finance leases | $ 3,344 | $ 3,462 | $ 3,262 |
Lease Commitments - Other Infor
Lease Commitments - Other Information Related To Leases (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Leases [Abstract] | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years | 7 years | 8 years |
Finance Lease, Weighted Average Remaining Lease Term | 10 years | 9 years | 9 years |
Operating Lease, Weighted Average Discount Rate, Percent | 7.00% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 4.00% | 6.00% | 4.00% |
Lease Commitments - Supplemen_2
Lease Commitments - Supplemental Balance Sheet Information Related To Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 13,004 | $ 14,700 | |
Operating Lease, other current liabilities | $ 2,484 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | ||
Operating lease liabilities | $ 10,520 | ||
Operating lease liabilities, total | 13,004 | $ 14,700 | |
Property and equipment, gross | 49,393 | $ 44,756 | |
Less: accumulated depreciation | (16,571) | (15,963) | |
Finance Lease, property, plant and equipment | $ 32,822 | $ 28,793 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet | |
Other current liabilities | $ 3,382 | $ 4,911 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | us-gaap:OtherCurrentLiabilitiesMember | |
Finance lease liabilities | $ 31,103 | $ 24,669 | |
Total finance lease liabilities | $ 34,485 | $ 29,580 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Finance Lease Liabilities, Payments, Due [Abstract] | |||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 4,472 | ||
Finance Lease, Liability, Payments, Due Year Two | 4,343 | ||
Finance Lease, Liability, Payments, Due Year Three | 4,169 | ||
Finance Lease, Liability, Payments, Due Year Four | 4,288 | ||
Finance Lease, Liability, Payments, Due Year Five | 4,184 | ||
Finance Lease, Liability, Payments, Due after Year Five | 19,142 | ||
Finance Lease, Liability, Payments, Due | 40,598 | ||
Finance Lease, Liability, Undiscounted Excess Amount | (6,113) | ||
Finance Lease, Liability | 34,485 | $ 29,580 | |
Operating Lease Liabilities, Payments Due [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 3,218 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 3,071 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 2,809 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2,087 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,378 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 3,410 | ||
Lessee, Operating Lease, Liability, Payments, Due | 15,973 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (2,969) | ||
Operating lease liabilities, total | $ 13,004 | $ 14,700 |
Lease Commitments - Minimum Lea
Lease Commitments - Minimum Lease Payments Under Non-cancellable Finance and Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Finance Leases | |
2019 | $ 6,302 |
2020 | 3,601 |
2021 | 3,441 |
2022 | 3,278 |
2023 | 3,410 |
Thereafter | 17,025 |
Total lease payments | 37,057 |
Less: imputed interest | (7,477) |
Total lease liability | 29,580 |
Operating Leases | |
2019 | 3,309 |
2020 | 2,963 |
2021 | 2,717 |
2022 | 2,557 |
2023 | 2,057 |
Thereafter | 5,360 |
Total lease payments | $ 18,963 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Take-or-Pay Contracts | |
Recorded Unconditional Purchase Obligation [Line Items] | |
Purchase obligation | $ 209,533 |