Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Note 13. Segment Information

The Company is managed based on the primary products it manufactures: pulp and solid wood. Accordingly, the Company's four pulp mills and its 50% interest in the Cariboo pulp mill are aggregated into the pulp segment. The Friesau sawmill, the Torgau facility and the Mercer Mass Timber facility are aggregated into the solid wood segment. Historically the Mercer Mass Timber facility was included in corporate and other, but concurrent with the acquisition of Torgau on September 30, 2022, the Company reorganized its operating and management structure which included having the Mercer Mass Timber facility now being overseen by the same chief operating decision maker as the Friesau sawmill and Torgau facility. The classification of the Mercer Mass Timber facility within the solid wood segment has been reflected retrospectively. The Company's sandalwood business is included in corporate and other as it does not meet the criteria to be reported as separate reportable segment.

None of the income or loss items following operating income (loss) in the Company's Interim Consolidated Statements of Operations are allocated to the segments, as those items are reviewed separately by management.

Note 13. Segment Information (continued)

Information about certain segment data for the three month periods ended March 31, 2023 and 2022, was as follows:

Three Months Ended March 31, 2023	Pulp		Solid Wood			Corporate and Other			Consolidated
Revenues from external customers	$	400,401	$	121,014		$	1,251		$	522,666
Operating income (loss)	$	12,771	$	(27,069	)	$	(5,823	)	$	(20,121	)
Depreciation and amortization	$	27,399	$	19,898		$	294		$	47,591
Total assets (a)	$	1,797,961	$	628,469		$	314,045		$	2,740,475
Revenues by major products
Pulp	$	369,656	$	—		$	—		$	369,656
Lumber		—		60,039			—			60,039
Energy and chemicals		30,745		5,695			1,251			37,691
Manufactured products (b)		—		5,804			—			5,804
Pallets		—		36,175			—			36,175
Biofuels (c)		—		8,135			—			8,135
Wood residuals		—		5,166			—			5,166
Total revenues	$	400,401	$	121,014		$	1,251		$	522,666
Revenues by geographical markets (d)
U.S.	$	43,555	$	35,056		$	282		$	78,893
Foreign countries
Germany		102,993		65,608			218			168,819
China		107,122		1,214			—			108,336
Other countries		146,731		19,136			751			166,618
		356,846		85,958			969			443,773
Total revenues	$	400,401	$	121,014		$	1,251		$	522,666

(a)Total assets for the pulp segment includes the Company's $45,466 investment in joint ventures, primarily for the Cariboo mill. Total assets for the solid wood segment includes $34,821 of goodwill from the acquisition of Torgau.

(b)Manufactured products primarily includes cross-laminated timber and finger joint lumber.

(c)Biofuels includes pellets and briquettes.

(d)Sales are attributed to countries based on the ship-to location provided by the customer.

Note 13. Segment Information (continued)

Three Months Ended March 31, 2022	Pulp		Solid Wood		Corporate  and Other			Consolidated
Revenues from external customers	$	485,931	$	104,797	$	2,013		$	592,741
Operating income (loss)	$	86,236	$	38,301	$	(2,186	)	$	122,351
Depreciation and amortization	$	27,684	$	4,194	$	238		$	32,116
Revenues by major products
Pulp	$	446,911	$	—	$	—		$	446,911
Lumber		—		92,366		—			92,366
Energy and chemicals		39,020		5,177		2,013			46,210
Manufactured products (a)		—		3,764		—			3,764
Wood residuals		—		3,490		—			3,490
Total revenues	$	485,931	$	104,797	$	2,013		$	592,741
Revenues by geographical markets (b)
U.S.	$	48,162	$	57,864	$	228		$	106,254
Foreign countries
Germany		140,054		21,708		—			161,762
China		145,998		182		—			146,180
Other countries		151,717		25,043		1,785			178,545
		437,769		46,933		1,785			486,487
Total revenues	$	485,931	$	104,797	$	2,013		$	592,741

(a)Manufactured products primarily includes finger joint lumber.

(b)Sales are attributed to countries based on the ship-to location provided by the customer.

As of December 31, 2022, the Company had total assets of $1,768,628 in the pulp segment, $613,171 in the solid wood segment and $343,238 in corporate and other. Total assets for the pulp segment includes the Company's $45,635 investment in joint ventures, primarily for the Cariboo mill. Total assets for the solid wood segment includes $30,937 of goodwill from the acquisition of Torgau.

Revenues between segments are accounted for at prices that approximate fair value. These include revenues from the sale of residual fiber from the solid wood segment to the pulp segment for use in pulp production and from the sale of residual fuel from the pulp segment to the solid wood segment for use in energy production. For the three month period ended March 31, 2023, the pulp segment sold $374 of residual fuel to the solid wood segment (2022 – $nil) and the solid wood segment sold $11,155 of residual fiber to the pulp segment (2022 – $6,851).