Financial Performance - As of December 31, 2024, the company reported long-lived assets of 1,304.5million,withdepreciationandamortizationrecordedat170.8 million for the year [451]. - The company recognized an impairment against all of the goodwill in 2024 due to the fair value of the Torgau facility being less than its carrying value, primarily influenced by weakness in the lumber, pallet, and biofuels markets in Europe [450]. - The company’s net periodic pension and other post-retirement benefit cost for 2024 was 1.3million,reflectingvariousactuarialestimates[458].−Thecompanyhasrevenuesfromlong−termcontractsrecognizedoverthecontractterm,withrevenueandcostestimatesreviewedquarterly[466][467].−Thecompanyrecognizesrevenueascostsareincurredforlong−termcontracts,whichmaysignificantlyimpactreportedrevenue[466].AssetsandLiabilities−Thecompany’spensionandotherpost−retirementbenefitobligationstotaled91.6 million as of December 31, 2024, with accumulated pension plan assets valued at 89.1million[458].−AsofDecember31,2024,thecompanyreportedanetdeferredincometaxliabilityof57.0 million, with deferred income tax assets net of a 81.8millionvaluationallowance[463].−Aone−percentagepointincreaseinthediscountratewoulddecreasethe2024netperiodicbenefitcostby292, while a decrease would increase it by 351[462].−Contingentliabilitiesaredisclosedwhenthereisareasonablepossibilityofloss,withassessmentsbasedonhistoricalexperienceandlegalcounselrecommendations[471][472].MarketConditions−Thedollarwasapproximately61.0817, while the average for the Canadian dollar was $0.7412 [19]. - Changes in market conditions or tax planning opportunities may lead to adjustments in the valuation allowance for deferred income tax assets [465]. Accounting and Estimates - The company’s financial statements are prepared in accordance with GAAP, requiring management to make subjective judgments and estimates that could materially affect reported results [445]. - The company has incorporated information from various sources regarding market share and industry data, although the accuracy of this information is not guaranteed [14]. - The valuation of inventories is based on the lower of cost or net realizable value, requiring judgment on current and expected selling prices [468]. - Assets classified as held for sale are measured at the lower of carrying amount and fair value less cost to sell, with fair value estimates sensitive to market conditions [470]. - The company assesses the realizability of deferred income tax assets at each reporting period, considering both positive and negative evidence [463]. - The company applies judgment in estimating costs to complete long-term contracts, influenced by various economic factors [466]. - The company’s management estimates production capacity based on historical levels and maintenance downtime, which may affect future operational results [15].
Mercer(MERC)2025-02-20 21:34