☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-0526415 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
111 Robert-Bourassa Boulevard | Suite 5000 | Montreal | Quebec | Canada | H3C 2M1 | ||||||||||||
(Address of principal executive offices) (Zip Code) |
(Registrant’s telephone number, including area code) |
(Former name, former address and former fiscal year, if changed since last report) |
Common Stock, par value $0.001 per share | RFP | New York Stock Exchange | ||||||
Toronto Stock Exchange | ||||||||
(Title of class) | (Trading Symbol) | (Name of exchange on which registered) |
Large Accelerated Filer | ☐ | Accelerated Filer | ☒ | Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | Emerging Growth Company | ☐ |
Page Number | |||||||||
PART I. FINANCIAL INFORMATION | |||||||||
Item 1. Financial Statements: | |||||||||
PART II. OTHER INFORMATION | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 612 | $ | 755 | $ | 1,301 | $ | 1,550 | Sales | $ | 873 | $ | 689 | |||||||||||||||||||||||||||||||||||||||||||||
Costs and expenses: | Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 464 | 536 | 988 | 1,090 | Cost of sales, excluding depreciation, amortization and distribution costs | 522 | 524 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 40 | 42 | 82 | 82 | Depreciation and amortization | 41 | 42 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution costs | 79 | 101 | 178 | 201 | Distribution costs | 84 | 99 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 32 | 36 | 66 | 73 | Selling, general and administrative expenses | 46 | 34 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | — | — | (2 | ) | — | Closure costs, impairment and other related charges | 3 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain on disposition of assets | (9 | ) | — | (9 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 6 | 40 | (2 | ) | 104 | Operating income (loss) | 177 | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (9 | ) | (7 | ) | (18 | ) | (16 | ) | Interest expense | (6) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | 4 | 12 | 19 | 24 | Non-operating pension and other postretirement benefit credits | 2 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | 10 | (1 | ) | 38 | (5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (expense) income, net | Other (expense) income, net | (45) | 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 11 | 44 | 37 | 107 | Income before income taxes | 128 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | (5 | ) | (19 | ) | (32 | ) | (40 | ) | Income tax provision | (40) | (27) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income including noncontrolling interest | 6 | 25 | 5 | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interest | Net income (loss) including noncontrolling interest | 88 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | Net income attributable to noncontrolling interest | (1) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 6 | $ | 25 | $ | 5 | $ | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per share attributable to Resolute Forest Products Inc. common shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | Net income (loss) attributable to Resolute Forest Products Inc. | $ | 87 | $ | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.73 | Basic | $ | 1.07 | $ | (0.01) | |||||||||||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.71 | Diluted | $ | 1.06 | $ | (0.01) | |||||||||||||||||||||||||||||||||||||||||||||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 88.1 | 92.4 | 88.1 | 92.4 | Basic | 81.2 | 88.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | 88.2 | 93.6 | 88.2 | 93.8 | Diluted | 81.9 | 88.1 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income including noncontrolling interest | $ | 6 | $ | 25 | $ | 5 | $ | 67 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interest | Net income (loss) including noncontrolling interest | $ | 88 | $ | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized prior service credits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized prior service credits | (1 | ) | (4 | ) | (16 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized prior service costs or credits | Unamortized prior service costs or credits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized prior service costs or credits | Change in unamortized prior service costs or credits | (1) | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | — | — | — | — | Income tax provision | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized prior service credits, net of tax | (1 | ) | (4 | ) | (16 | ) | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized prior service costs or credits, net of tax | Change in unamortized prior service costs or credits, net of tax | (1) | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized actuarial losses | Unamortized actuarial losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized actuarial losses | 15 | 3 | 32 | 11 | Change in unamortized actuarial losses | 49 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision | (4 | ) | — | (7 | ) | (2 | ) | Income tax provision | (12) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in unamortized actuarial losses, net of tax | 11 | 3 | 25 | 9 | Change in unamortized actuarial losses, net of tax | 37 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | — | — | (1 | ) | — | Foreign currency translation | 0 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 10 | (1 | ) | 8 | 2 | Other comprehensive income (loss), net of tax | 36 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income including noncontrolling interest | 16 | 24 | 13 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) including noncontrolling interest | Comprehensive income (loss) including noncontrolling interest | 124 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | — | — | Comprehensive income attributable to noncontrolling interest | (1) | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Resolute Forest Products Inc. | $ | 16 | $ | 24 | $ | 13 | $ | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ | 123 | $ | (3) |
June 30, 2020 | December 31, 2019 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 27 | $ | 3 | Cash and cash equivalents | $ | 33 | $ | 113 | |||||||||||||||||||
Accounts receivable, net: | Accounts receivable, net: | |||||||||||||||||||||||||||
Trade | 239 | 273 | Trade | 292 | 230 | |||||||||||||||||||||||
Other | 65 | 76 | Other | 41 | 48 | |||||||||||||||||||||||
Inventories, net | 506 | 522 | Inventories, net | 512 | 462 | |||||||||||||||||||||||
Other current assets | 45 | 33 | Other current assets | 64 | 47 | |||||||||||||||||||||||
Total current assets | 882 | 907 | Total current assets | 942 | 900 | |||||||||||||||||||||||
Fixed assets, less accumulated depreciation of $1,503 and $1,658 as of June 30, 2020 and December 31, 2019, respectively | 1,524 | 1,459 | ||||||||||||||||||||||||||
Amortizable intangible assets, less accumulated amortization of $30 and $27 as of June 30, 2020 and December 31, 2019, respectively | 66 | 48 | ||||||||||||||||||||||||||
Fixed assets, less accumulated depreciation of $1,642 and $1,604 as of March 31, 2021 and December 31, 2020, respectively | Fixed assets, less accumulated depreciation of $1,642 and $1,604 as of March 31, 2021 and December 31, 2020, respectively | 1,412 | 1,441 | |||||||||||||||||||||||||
Amortizable intangible assets, less accumulated amortization of $34 and $33 as of March 31, 2021 and December 31, 2020, respectively | Amortizable intangible assets, less accumulated amortization of $34 and $33 as of March 31, 2021 and December 31, 2020, respectively | 61 | 63 | |||||||||||||||||||||||||
Goodwill | 31 | — | Goodwill | 31 | 31 | |||||||||||||||||||||||
Deferred income tax assets | 837 | 915 | Deferred income tax assets | 874 | 915 | |||||||||||||||||||||||
Operating lease right-of-use assets | 59 | 61 | Operating lease right-of-use assets | 56 | 60 | |||||||||||||||||||||||
Other assets | 268 | 236 | Other assets | 352 | 320 | |||||||||||||||||||||||
Total assets | $ | 3,667 | $ | 3,626 | Total assets | $ | 3,728 | $ | 3,730 | |||||||||||||||||||
Liabilities and equity | Liabilities and equity | |||||||||||||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 300 | $ | 342 | ||||||||||||||||||||||||
Accounts payable and other | Accounts payable and other | $ | 398 | $ | 369 | |||||||||||||||||||||||
Current portion of long-term debt | 2 | 1 | Current portion of long-term debt | 2 | 2 | |||||||||||||||||||||||
Current portion of operating lease liabilities | 8 | 8 | Current portion of operating lease liabilities | 9 | 9 | |||||||||||||||||||||||
Total current liabilities | 310 | 351 | Total current liabilities | 409 | 380 | |||||||||||||||||||||||
Long-term debt, net of current portion | 628 | 448 | Long-term debt, net of current portion | 480 | 559 | |||||||||||||||||||||||
Pension and other postretirement benefit obligations | 1,349 | 1,460 | Pension and other postretirement benefit obligations | 1,507 | 1,562 | |||||||||||||||||||||||
Operating lease liabilities, net of current portion | 53 | 57 | Operating lease liabilities, net of current portion | 51 | 55 | |||||||||||||||||||||||
Other liabilities | 77 | 75 | Other liabilities | 94 | 92 | |||||||||||||||||||||||
Total liabilities | 2,417 | 2,391 | Total liabilities | 2,541 | 2,648 | |||||||||||||||||||||||
Commitments and contingencies | Commitments and contingencies | 0 | 0 | |||||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||||||||
Resolute Forest Products Inc. shareholders’ equity: | Resolute Forest Products Inc. shareholders’ equity: | |||||||||||||||||||||||||||
Common stock, $0.001 par value. 120.2 shares issued and 87.1 shares outstanding as of June 30, 2020; 119.5 shares issued and 86.7 shares outstanding as of December 31, 2019 | — | — | ||||||||||||||||||||||||||
Common stock, $0.001 par value. 121.0 million shares issued and 79.5 million shares outstanding as of March 31, 2021; 120.6 million shares issued and 80.8 million shares outstanding as of December 31, 2020 | Common stock, $0.001 par value. 121.0 million shares issued and 79.5 million shares outstanding as of March 31, 2021; 120.6 million shares issued and 80.8 million shares outstanding as of December 31, 2020 | 0 | 0 | |||||||||||||||||||||||||
Additional paid-in capital | 3,805 | 3,802 | Additional paid-in capital | 3,802 | 3,804 | |||||||||||||||||||||||
Deficit | (1,240 | ) | (1,245 | ) | Deficit | (1,148) | (1,235) | |||||||||||||||||||||
Accumulated other comprehensive loss | (1,171 | ) | (1,179 | ) | Accumulated other comprehensive loss | (1,278) | (1,314) | |||||||||||||||||||||
Treasury stock at cost, 33.1 shares and 32.8 shares as of June 30, 2020 and December 31, 2019, respectively | (145 | ) | (144 | ) | ||||||||||||||||||||||||
Treasury stock at cost, 41.5 million shares and 39.8 million shares as of March 31, 2021 and December 31, 2020, respectively | Treasury stock at cost, 41.5 million shares and 39.8 million shares as of March 31, 2021 and December 31, 2020, respectively | (191) | (174) | |||||||||||||||||||||||||
Total Resolute Forest Products Inc. shareholders’ equity | 1,249 | 1,234 | Total Resolute Forest Products Inc. shareholders’ equity | 1,185 | 1,081 | |||||||||||||||||||||||
Noncontrolling interest | 1 | 1 | Noncontrolling interest | 2 | 1 | |||||||||||||||||||||||
Total equity | 1,250 | 1,235 | Total equity | 1,187 | 1,082 | |||||||||||||||||||||||
Total liabilities and equity | $ | 3,667 | $ | 3,626 | Total liabilities and equity | $ | 3,728 | $ | 3,730 |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 0 | $ | 3,804 | $ | (1,235) | $ | (1,314) | $ | (174) | $ | 1 | $ | 1,082 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net of withholding taxes | — | (2) | — | — | — | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | 87 | — | — | 1 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock (1.7 million shares) (Note 12) | — | — | — | — | (17) | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock unit awards vested (0.4 million shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 36 | — | 0 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | 0 | $ | 3,802 | $ | (1,148) | $ | (1,278) | $ | (191) | $ | 2 | $ | 1,187 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interest | Total Equity | ||||||||||||||||||||||
Balance as of March 31, 2020 | $ | — | $ | 3,804 | $ | (1,246 | ) | $ | (1,181 | ) | $ | (144 | ) | $ | 1 | $ | 1,234 | |||||||||||
Share-based compensation, net of withholding taxes | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||
Net income | — | — | 6 | — | — | — | 6 | |||||||||||||||||||||
Purchases of treasury stock (0.3 shares) (Note 12) | — | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 10 | — | — | 10 | |||||||||||||||||||||
Balance as of June 30, 2020 | $ | — | $ | 3,805 | $ | (1,240 | ) | $ | (1,171 | ) | $ | (145 | ) | $ | 1 | $ | 1,250 |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interest | Total Equity | ||||||||||||||||||||||
Balance as of December 31, 2019 | $ | — | $ | 3,802 | $ | (1,245 | ) | $ | (1,179 | ) | $ | (144 | ) | $ | 1 | $ | 1,235 | |||||||||||
Share-based compensation, net of withholding taxes | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||
Net income | — | — | 5 | — | — | — | 5 | |||||||||||||||||||||
Purchases of treasury stock (0.3 shares) (Note 12) | — | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Stock unit awards vested (0.7 shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 8 | — | — | 8 | |||||||||||||||||||||
Balance as of June 30, 2020 | $ | — | $ | 3,805 | $ | (1,240 | ) | $ | (1,171 | ) | $ | (145 | ) | $ | 1 | $ | 1,250 |
Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non- controlling Interest | Total Equity | ||||||||||||||||||||||
Balance as of March 31, 2019 | $ | — | $ | 3,802 | $ | (1,156 | ) | $ | (947 | ) | $ | (120 | ) | $ | 1 | $ | 1,580 | |||||||||||
Share-based compensation, net of withholding taxes | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||
Net income | — | — | 25 | — | — | — | 25 | |||||||||||||||||||||
Purchases of treasury stock (0.7 shares) (Note 12) | — | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||
Balance as of June 30, 2019 | $ | — | $ | 3,803 | $ | (1,131 | ) | $ | (948 | ) | $ | (125 | ) | $ | 1 | $ | 1,600 |
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non- controlling Interest | Total Equity | ||||||||||||||||||||||
Balance as of December 31, 2018 | $ | — | $ | 3,802 | $ | (1,198 | ) | $ | (950 | ) | $ | (120 | ) | $ | 1 | $ | 1,535 | |||||||||||
Share-based compensation, net of withholding taxes | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||
Net income | — | — | 67 | — | — | — | 67 | |||||||||||||||||||||
Purchases of treasury stock (0.7 shares) (Note 12) | — | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||||||
Stock unit awards vested (0.3 shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | — | |||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||
Balance as of June 30, 2019 | $ | — | $ | 3,803 | $ | (1,131 | ) | $ | (948 | ) | $ | (125 | ) | $ | 1 | $ | 1,600 |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Resolute Forest Products Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non- controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 0 | $ | 3,802 | $ | (1,245) | $ | (1,179) | $ | (144) | $ | 1 | $ | 1,235 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation, net of withholding taxes | — | 2 | — | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | (1) | — | — | 0 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock unit awards vested (0.7 million shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (2) | — | 0 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | 0 | $ | 3,804 | $ | (1,246) | $ | (1,181) | $ | (144) | $ | 1 | $ | 1,234 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||||||||
Net income (loss) including noncontrolling interest | Net income (loss) including noncontrolling interest | $ | 88 | $ | (1) | |||||||||||||||||||||||
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by (used in) operating activities: | Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | 2 | 3 | |||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 41 | 42 | |||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 40 | 27 | |||||||||||||||||||||||||
Net pension contributions and other postretirement benefit payments | Net pension contributions and other postretirement benefit payments | (23) | (33) | |||||||||||||||||||||||||
(Gain) loss on translation of foreign currency denominated deferred income taxes | (Gain) loss on translation of foreign currency denominated deferred income taxes | (12) | 69 | |||||||||||||||||||||||||
Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | 16 | (82) | |||||||||||||||||||||||||
Loss on commodity contracts | Loss on commodity contracts | 14 | 0 | |||||||||||||||||||||||||
Net planned major maintenance (payments) amortization | Net planned major maintenance (payments) amortization | (3) | 6 | |||||||||||||||||||||||||
Changes in working capital: | Changes in working capital: | |||||||||||||||||||||||||||
Accounts receivable | Accounts receivable | (51) | (20) | |||||||||||||||||||||||||
Inventories | Inventories | (50) | (29) | |||||||||||||||||||||||||
Other current assets | Other current assets | 0 | (6) | |||||||||||||||||||||||||
Accounts payable and other | Accounts payable and other | 2 | (18) | |||||||||||||||||||||||||
Other, net | Other, net | 10 | (7) | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | 74 | (49) | |||||||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||
Cash invested in fixed assets | Cash invested in fixed assets | (14) | (21) | |||||||||||||||||||||||||
Acquisition of business, net of cash acquired | Acquisition of business, net of cash acquired | 0 | (174) | |||||||||||||||||||||||||
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (32) | (15) | |||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||
Net income including noncontrolling interest | $ | 5 | $ | 67 | ||||||||||||||||||||||||
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||||||||||||||||||||||||||||
Share-based compensation | 4 | 3 | ||||||||||||||||||||||||||
Depreciation and amortization | 82 | 82 | ||||||||||||||||||||||||||
Deferred income taxes | 32 | 40 | ||||||||||||||||||||||||||
Net pension contributions and other postretirement benefit payments | (48 | ) | (57 | ) | ||||||||||||||||||||||||
Net gain on disposition of assets | (9 | ) | — | |||||||||||||||||||||||||
Loss (gain) on translation of foreign currency denominated deferred income taxes | 39 | (35 | ) | |||||||||||||||||||||||||
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | (47 | ) | 37 | |||||||||||||||||||||||||
Net planned major maintenance (payments) amortization | (2 | ) | 7 | |||||||||||||||||||||||||
Changes in working capital: | ||||||||||||||||||||||||||||
Accounts receivable | 50 | 38 | ||||||||||||||||||||||||||
Inventories | 25 | (21 | ) | |||||||||||||||||||||||||
Other current assets | (7 | ) | (3 | ) | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | (49 | ) | (64 | ) | ||||||||||||||||||||||||
Other, net | 1 | 1 | ||||||||||||||||||||||||||
Net cash provided by operating activities | 76 | 95 | ||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Cash invested in fixed assets | (37 | ) | (45 | ) | ||||||||||||||||||||||||
Acquisition of business, net of cash acquired | (172 | ) | — | |||||||||||||||||||||||||
Disposition of assets | 9 | 2 | ||||||||||||||||||||||||||
Decrease in countervailing duty cash deposits on supercalendered paper | — | 1 | ||||||||||||||||||||||||||
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (32 | ) | (33 | ) | ||||||||||||||||||||||||
Decrease in countervailing duty cash deposits on uncoated groundwood paper | — | 6 | ||||||||||||||||||||||||||
Other investing activities, net | 5 | — | Other investing activities, net | 3 | 4 | |||||||||||||||||||||||
Net cash used in investing activities | (227 | ) | (69 | ) | Net cash used in investing activities | (43) | (206) | |||||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||||||||
Net repayments under revolving credit facilities | (2 | ) | — | |||||||||||||||||||||||||
Net borrowings under revolving credit facilities | Net borrowings under revolving credit facilities | 0 | 189 | |||||||||||||||||||||||||
Issuance of long-term debt | Issuance of long-term debt | 300 | 0 | |||||||||||||||||||||||||
Proceeds from long-term debt | 180 | — | Proceeds from long-term debt | 0 | 180 | |||||||||||||||||||||||
Repayments of debt | (1 | ) | (225 | ) | Repayments of debt | (376) | (1) | |||||||||||||||||||||
Purchases of treasury stock | (1 | ) | (5 | ) | Purchases of treasury stock | (17) | 0 | |||||||||||||||||||||
Payments of financing and credit facility fees | — | (2 | ) | |||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 176 | (232 | ) | |||||||||||||||||||||||||
Payments of financing fees | Payments of financing fees | (6) | 0 | |||||||||||||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (99) | 368 | |||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1 | ) | 1 | Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | (3) | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | $ | 24 | $ | (205 | ) | |||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash | Net (decrease) increase in cash and cash equivalents, and restricted cash | $ | (68) | $ | 110 | |||||||||||||||||||||||
Cash and cash equivalents, and restricted cash: | Cash and cash equivalents, and restricted cash: | |||||||||||||||||||||||||||
Beginning of period | $ | 42 | $ | 345 | Beginning of period | $ | 159 | $ | 42 | |||||||||||||||||||
End of period | $ | 66 | $ | 140 | End of period | $ | 91 | $ | 152 | |||||||||||||||||||
Cash and cash equivalents, and restricted cash at end of period: | Cash and cash equivalents, and restricted cash at end of period: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 27 | $ | 98 | Cash and cash equivalents | $ | 33 | $ | 116 | |||||||||||||||||||
Restricted cash (included in “Other current assets”) | Restricted cash (included in “Other current assets”) | $ | 18 | $ | 0 | |||||||||||||||||||||||
Restricted cash (included in “Other assets”) | $ | 39 | $ | 42 | Restricted cash (included in “Other assets”) | $ | 40 | $ | 36 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Foreign exchange (loss) gain | $ | (5) | $ | 23 | |||||||||||||||||||||||||||||||||||||
(Loss) gain on commodity contracts (1) | (37) | 4 | |||||||||||||||||||||||||||||||||||||||
Miscellaneous (expense) income | (3) | 1 | |||||||||||||||||||||||||||||||||||||||
$ | (45) | $ | 28 |
(Unaudited, in millions) | |||
Current assets (1) | $ | 19 | |
Fixed assets (2) | 114 | ||
Amortizable intangible assets (3) | 21 | ||
Operating lease right-of-use assets | 2 | ||
Goodwill (4) | 31 | ||
Total assets acquired and goodwill | $ | 187 | |
Current liabilities | $ | 11 | |
Long-term debt, net of current portion | 2 | ||
Operating lease liabilities, net of current portion | 1 | ||
Total liabilities assumed | $ | 14 | |
Net assets acquired | $ | 173 | |
Fair value of consideration transferred | $ | 173 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 612 | $ | 781 | $ | 1,309 | $ | 1,597 | |||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 6 | $ | 25 | $ | 5 | $ | 67 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Foreign exchange (loss) gain | $ | (9 | ) | $ | (6 | ) | $ | 14 | $ | (10 | ) | ||||||
Insurance recovery (1) | 15 | — | 15 | — | |||||||||||||
Miscellaneous income | 4 | 5 | 9 | 5 | |||||||||||||
$ | 10 | $ | (1 | ) | $ | 38 | $ | (5 | ) |
(Unaudited, in millions) | Unamortized Prior Service Cost | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | (1) | $ | (1,307) | $ | (6) | $ | (1,314) | ||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications (1) | 0 | 22 | 0 | 22 | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (1) | 15 | 0 | 14 | ||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income | (1) | 37 | 0 | 36 | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | $ | (2) | $ | (1,270) | $ | (6) | $ | (1,278) | ||||||||||||||||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||
Balance as of March 31, 2020 | $ | 1 | $ | (1,175 | ) | $ | (7 | ) | $ | (1,181 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss | (1 | ) | 11 | — | 10 | |||||||||||
Balance as of June 30, 2020 | $ | — | $ | (1,164 | ) | $ | (7 | ) | $ | (1,171 | ) |
(Unaudited, in millions) | Unamortized Prior Service Credit | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 16 | $ | (1,189) | $ | (6) | $ | (1,179) | ||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | 0 | 0 | (1) | (1) | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (15) | 14 | 0 | (1) | ||||||||||||||||||||||||||||||||||
Net current period other comprehensive (loss) income | (15) | 14 | (1) | (2) | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | $ | 1 | $ | (1,175) | $ | (7) | $ | (1,181) | ||||||||||||||||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||
Balance as of December 31, 2019 | $ | 16 | $ | (1,189 | ) | $ | (6 | ) | $ | (1,179 | ) | |||||
Other comprehensive loss before reclassifications | — | — | (1 | ) | (1 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (16 | ) | 25 | — | 9 | |||||||||||
Net current period other comprehensive (loss) income | (16 | ) | 25 | (1 | ) | 8 | ||||||||||
Balance as of June 30, 2020 | $ | — | $ | (1,164 | ) | $ | (7 | ) | $ | (1,171 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | Affected Line in the Consolidated Statements of Operations | ||||||||||||||||||||||||||||||||||||||
Unamortized Prior Service Costs or Credits | |||||||||||||||||||||||||||||||||||||||||
Amortization of prior service costs or credits | $ | 0 | $ | (1) | Non-operating pension and other postretirement benefit credits (1) | ||||||||||||||||||||||||||||||||||||
Curtailment gain | (1) | (14) | Non-operating pension and other postretirement benefit credits (1) | ||||||||||||||||||||||||||||||||||||||
0 | 0 | Income tax provision | |||||||||||||||||||||||||||||||||||||||
Net of tax | (1) | (15) | |||||||||||||||||||||||||||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses | 19 | 14 | Non-operating pension and other postretirement benefit credits (1) | ||||||||||||||||||||||||||||||||||||||
Other items | 0 | 3 | |||||||||||||||||||||||||||||||||||||||
(4) | (3) | Income tax provision | |||||||||||||||||||||||||||||||||||||||
Net of tax | 15 | 14 | |||||||||||||||||||||||||||||||||||||||
Total Reclassifications | $ | 14 | $ | (1) |
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||
Balance as of March 31, 2019 | $ | 25 | $ | (965 | ) | $ | (7 | ) | $ | (947 | ) | |||||
Other comprehensive loss before reclassifications | — | (3 | ) | — | (3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (4 | ) | 6 | — | 2 | |||||||||||
Net current period other comprehensive (loss) income | (4 | ) | 3 | — | (1 | ) | ||||||||||
Balance as of June 30, 2019 | $ | 21 | $ | (962 | ) | $ | (7 | ) | $ | (948 | ) |
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | ||||||||||||
Balance as of December 31, 2018 | $ | 28 | $ | (971 | ) | $ | (7 | ) | $ | (950 | ) | |||||
Other comprehensive loss before reclassifications | — | (3 | ) | — | (3 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (7 | ) | 12 | — | 5 | |||||||||||
Net current period other comprehensive (loss) income | (7 | ) | 9 | — | 2 | |||||||||||
Balance as of June 30, 2019 | $ | 21 | $ | (962 | ) | $ | (7 | ) | $ | (948 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | Affected Line in the Consolidated Statements of Operations | ||||||||||||
Unamortized Prior Service Credits | |||||||||||||||||
Amortization of prior service credits | $ | (1 | ) | $ | (3 | ) | $ | (2 | ) | $ | (6 | ) | Non-operating pension and other postretirement benefit credits (1) | ||||
Other items | — | (1 | ) | (14 | ) | (1 | ) | ||||||||||
— | — | — | — | Income tax provision | |||||||||||||
Net of tax | (1 | ) | (4 | ) | (16 | ) | (7 | ) | |||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | 15 | 7 | 29 | 15 | Non-operating pension and other postretirement benefit credits (1) | ||||||||||||
Other items | — | — | 3 | — | |||||||||||||
(4 | ) | (1 | ) | (7 | ) | (3 | ) | Income tax provision | |||||||||
Net of tax | 11 | 6 | 25 | 12 | |||||||||||||
Total Reclassifications | $ | 10 | $ | 2 | $ | 9 | $ | 5 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | |||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 6 | $ | 25 | $ | 5 | $ | 67 | |||||||||
Denominator: | |||||||||||||||||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding | 88.1 | 92.4 | 88.1 | 92.4 | |||||||||||||
Dilutive impact of nonvested stock unit awards | 0.1 | 1.2 | 0.1 | 1.4 | |||||||||||||
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 88.2 | 93.6 | 88.2 | 93.8 | |||||||||||||
Net income per share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||||||||
Basic | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.73 | |||||||||
Diluted | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.71 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ | 87 | $ | (1) | |||||||||||||||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||||||||||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding | 81.2 | 88.1 | |||||||||||||||||||||||||||||||||||||||
Dilutive impact of nonvested stock unit awards | 0.7 | 0 | |||||||||||||||||||||||||||||||||||||||
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 81.9 | 88.1 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.07 | $ | (0.01) | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.06 | $ | (0.01) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||
Stock options | 0.9 | 1.0 | 0.9 | 1.0 | |||||||||
Stock unit awards | 0.9 | — | 0.9 | — |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||
Stock options | 0.8 | 1.0 | |||||||||||||||||||||||||||
Stock unit awards | 0 | 1.5 |
(Unaudited, in millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
Raw materials | $ | 157 | $ | 132 | ||||||||||||||||
Work in process | 53 | 46 | ||||||||||||||||||
Finished goods | 137 | 120 | ||||||||||||||||||
Mill stores and other supplies | 165 | 164 | ||||||||||||||||||
$ | 512 | $ | 462 |
(Unaudited, in millions) | June 30, 2020 | December 31, 2019 | ||||||
Raw materials | $ | 107 | $ | 128 | ||||
Work in process | 52 | 46 | ||||||
Finished goods | 155 | 164 | ||||||
Mill stores and other supplies | 192 | 184 | ||||||
$ | 506 | $ | 522 |
(Unaudited, in millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
Trade accounts payable | $ | 275 | $ | 251 | ||||||||||||||||
Accrued compensation | 63 | 76 | ||||||||||||||||||
Accrued interest | 3 | 4 | ||||||||||||||||||
Pension and other postretirement benefit obligations | 15 | 14 | ||||||||||||||||||
Income and other taxes payable | 3 | 5 | ||||||||||||||||||
Derivative financial instruments (1) | 14 | 0 | ||||||||||||||||||
Other | 25 | 19 | ||||||||||||||||||
$ | 398 | $ | 369 |
(Unaudited, in millions) | June 30, 2020 | December 31, 2019 | ||||||
Trade accounts payable | $ | 226 | $ | 255 | ||||
Accrued compensation | 42 | 52 | ||||||
Accrued interest | 4 | 3 | ||||||
Pension and other postretirement benefit obligations | 14 | 15 | ||||||
Income and other taxes payable | 4 | 4 | ||||||
Other | 10 | 13 | ||||||
$ | 300 | $ | 342 |
(Unaudited, in millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
4.875% senior unsecured notes due 2026: | ||||||||||||||||||||
Principal amount | $ | 300 | $ | 0 | ||||||||||||||||
Deferred financing costs | (6) | 0 | ||||||||||||||||||
Total 4.875% senior unsecured notes due 2026 | 294 | 0 | ||||||||||||||||||
5.875% senior unsecured notes due 2023: | ||||||||||||||||||||
Principal amount | 0 | 375 | ||||||||||||||||||
Deferred financing costs | 0 | (2) | ||||||||||||||||||
Unamortized discount | 0 | (1) | ||||||||||||||||||
Total 5.875% senior unsecured notes due 2023 | 0 | 372 | ||||||||||||||||||
Senior secured credit facility - Term loans due 2030 | 180 | 180 | ||||||||||||||||||
Finance lease obligations | 8 | 9 | ||||||||||||||||||
Total debt | 482 | 561 | ||||||||||||||||||
Less: Current portion of finance lease obligations | (2) | (2) | ||||||||||||||||||
Long-term debt, net of current portion | $ | 480 | $ | 559 |
(Unaudited, in millions) | June 30, 2020 | December 31, 2019 | ||||||
5.875% senior unsecured notes due 2023: | ||||||||
Principal amount | $ | 375 | $ | 375 | ||||
Deferred financing costs | (2 | ) | (3 | ) | ||||
Unamortized discount | (1 | ) | (1 | ) | ||||
Total 5.875% senior unsecured notes due 2023 | 372 | 371 | ||||||
Term loans due 2030 | 180 | — | ||||||
Borrowings under revolving credit facilities | 69 | 71 | ||||||
Finance lease obligations | 9 | 7 | ||||||
Total debt | 630 | 449 | ||||||
Less: Current portion of finance lease obligations | (2 | ) | (1 | ) | ||||
Long-term debt, net of current portion | $ | 628 | $ | 448 |
Year (beginning March 1) | Redemption Price | ||||
2023 | 102.438 | % | |||
2024 | 101.219 | % | |||
2025 and thereafter | 100.000 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | (Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 36 | $ | 45 | $ | 74 | $ | 90 | Interest cost | $ | 33 | $ | 38 | |||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (55 | ) | (61 | ) | (111 | ) | (124 | ) | Expected return on plan assets | (54) | (56) | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial losses | 17 | 9 | 32 | 18 | Amortization of actuarial losses | 21 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service credits | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating pension credits | (2 | ) | (8 | ) | (5 | ) | (17 | ) | Non-operating pension credits | 0 | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 3 | 3 | 7 | 7 | Service cost | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs (credits) before special events | 1 | (5 | ) | 2 | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (gains) losses | — | (1 | ) | 3 | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit costs before special events | Net periodic benefit costs before special events | 4 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (gain) loss | Other (gain) loss | (1) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 1 | $ | (6 | ) | $ | 5 | $ | (11 | ) | $ | 3 | $ | 4 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | |||||||||
Amortization of actuarial gains | (2 | ) | (2 | ) | (3 | ) | (3 | ) | |||||||||
Amortization of prior service credits | (1 | ) | (2 | ) | (2 | ) | (5 | ) | |||||||||
Non-operating other postretirement benefit credits | (2 | ) | (3 | ) | (3 | ) | (6 | ) | |||||||||
Service cost | 1 | — | 1 | — | |||||||||||||
Net periodic benefit credits before special events | (1 | ) | (3 | ) | (2 | ) | (6 | ) | |||||||||
Curtailment gain | — | — | (14 | ) | — | ||||||||||||
$ | (1 | ) | $ | (3 | ) | $ | (16 | ) | $ | (6 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Interest cost | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||||||||||
Amortization of actuarial gains | (2) | (1) | |||||||||||||||||||||||||||||||||||||||
Amortization of prior service credits | 0 | (1) | |||||||||||||||||||||||||||||||||||||||
Non-operating other postretirement benefit credits | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Service cost | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Net periodic benefit credits before special events | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
Curtailment gain | 0 | (14) | |||||||||||||||||||||||||||||||||||||||
$ | (1) | $ | (15) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Income before income taxes | $ | 11 | $ | 44 | $ | 37 | $ | 107 | |||||||||
Income tax provision: | |||||||||||||||||
Expected income tax provision | (3 | ) | (9 | ) | (8 | ) | (22 | ) | |||||||||
Changes resulting from: | |||||||||||||||||
Valuation allowance (1) | (7 | ) | (4 | ) | (16 | ) | (11 | ) | |||||||||
Foreign exchange | 2 | 1 | (10 | ) | 4 | ||||||||||||
U.S. tax on non-U.S. earnings (2) | — | (5 | ) | — | (5 | ) | |||||||||||
State income taxes, net of federal income tax benefit | — | 1 | 2 | 2 | |||||||||||||
Foreign tax rate differences | (2 | ) | (4 | ) | (5 | ) | (9 | ) | |||||||||
Other, net (3) | 5 | 1 | 5 | 1 | |||||||||||||
$ | (5 | ) | $ | (19 | ) | $ | (32 | ) | $ | (40 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 128 | $ | 26 | |||||||||||||||||||||||||||||||||||||
Income tax provision: | |||||||||||||||||||||||||||||||||||||||||
Expected income tax provision | (27) | (5) | |||||||||||||||||||||||||||||||||||||||
Changes resulting from: | |||||||||||||||||||||||||||||||||||||||||
Valuation allowance on our U.S. operations | 8 | (9) | |||||||||||||||||||||||||||||||||||||||
Foreign exchange | 2 | (12) | |||||||||||||||||||||||||||||||||||||||
U.S. tax on non-U.S. earnings | (18) | — | |||||||||||||||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 2 | 2 | |||||||||||||||||||||||||||||||||||||||
Foreign tax rate differences | (8) | (3) | |||||||||||||||||||||||||||||||||||||||
Other, net | 1 | 0 | |||||||||||||||||||||||||||||||||||||||
$ | (40) | $ | (27) |
(Unaudited, in millions) | Market Pulp (1) | Tissue | Wood Products (2) | Paper | Segment Total | Corporate and Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First three months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | $ | 176 | $ | 42 | $ | 430 | $ | 225 | $ | 873 | $ | — | $ | 873 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 177 | $ | 49 | $ | 174 | $ | 289 | $ | 689 | $ | 0 | $ | 689 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First three months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | $ | 6 | $ | 5 | $ | 11 | $ | 15 | $ | 37 | $ | 4 | $ | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | 6 | $ | 4 | $ | 11 | $ | 17 | $ | 38 | $ | 4 | $ | 42 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
First three months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | $ | 4 | $ | (2) | $ | 221 | $ | (24) | $ | 199 | $ | (22) | $ | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | $ | (3) | $ | 2 | $ | 5 | $ | (3) | $ | 1 | $ | (9) | $ | (8) |
(Unaudited, in millions) | Market Pulp (1) | Tissue | Wood Products (2) | Paper | Segment Total | Corporate and Other | Total | |||||||||||||||||||||
Sales | ||||||||||||||||||||||||||||
Second quarter | ||||||||||||||||||||||||||||
2020 | $ | 161 | $ | 44 | $ | 199 | $ | 208 | $ | 612 | $ | — | $ | 612 | ||||||||||||||
2019 | $ | 189 | $ | 43 | $ | 168 | $ | 355 | $ | 755 | $ | — | $ | 755 | ||||||||||||||
First six months | ||||||||||||||||||||||||||||
2020 | $ | 338 | $ | 93 | $ | 373 | $ | 497 | $ | 1,301 | $ | — | $ | 1,301 | ||||||||||||||
2019 | $ | 420 | $ | 82 | $ | 329 | $ | 719 | $ | 1,550 | $ | — | $ | 1,550 | ||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||
Second quarter | ||||||||||||||||||||||||||||
2020 | $ | 6 | $ | 5 | $ | 10 | $ | 16 | $ | 37 | $ | 3 | $ | 40 | ||||||||||||||
2019 | $ | 5 | $ | 4 | $ | 9 | $ | 19 | $ | 37 | $ | 5 | $ | 42 | ||||||||||||||
First six months | ||||||||||||||||||||||||||||
2020 | $ | 12 | $ | 9 | $ | 21 | $ | 33 | $ | 75 | $ | 7 | $ | 82 | ||||||||||||||
2019 | $ | 10 | $ | 9 | $ | 17 | $ | 36 | $ | 72 | $ | 10 | $ | 82 | ||||||||||||||
Operating income (loss) | ||||||||||||||||||||||||||||
Second quarter | ||||||||||||||||||||||||||||
2020 | $ | 10 | $ | (2 | ) | $ | 15 | $ | (12 | ) | $ | 11 | $ | (5 | ) | $ | 6 | |||||||||||
2019 | $ | 27 | $ | (4 | ) | $ | (3 | ) | $ | 32 | $ | 52 | $ | (12 | ) | $ | 40 | |||||||||||
First six months | ||||||||||||||||||||||||||||
2020 | $ | 7 | $ | — | $ | 20 | $ | (15 | ) | $ | 12 | $ | (14 | ) | $ | (2 | ) | |||||||||||
2019 | $ | 69 | $ | (12 | ) | $ | 3 | $ | 75 | $ | 135 | $ | (31 | ) | $ | 104 |
•On April 19, 2021 (or, the “Effective Date”), we entered into a first amendment to the amended and restated senior secured credit facility (or, the “Senior Secured Credit Facility”) entered into on October 28, 2019. The amount available under the Senior Secured Credit Facility remains unchanged for up to $360 million and is comprised of a term loan facility of up to $180 million with a delayed draw period of up to three years and the choice of maturities of six to ten years from the date of drawing (or, the “Term Loan Facility”); and a six-year revolving credit facility of up to $180 million (or, the “Revolving Credit Facility”). On the Effective Date, we repaid our $180 million of term loans under the pre-amended Senior Secured Credit Facility with a combination of proceeds of borrowings under the Revolving Credit Facility and cash on hand. The amendment then reinstated the full amount of the Term Loan Facility. There is also an uncommitted option to increase the Senior Secured Credit Facility by up to an additional $360 million, subject to certain terms and conditions. |
Three Months Ended June 30, 2020 | Operating Income (Loss) | Net Income (Loss) | EPS | |||||||||
(Unaudited, in millions, except per share amounts) | ||||||||||||
GAAP, as reported | $ | 6 | $ | 6 | $ | 0.07 | ||||||
Adjustments for special items: | ||||||||||||
Net gain on disposition of assets | (9 | ) | (9 | ) | (0.10 | ) | ||||||
Non-operating pension and other postretirement benefit credits | — | (4 | ) | (0.05 | ) | |||||||
Other income, net | — | (10 | ) | (0.11 | ) | |||||||
Income tax effect of special items | — | (5 | ) | (0.06 | ) | |||||||
Adjusted for special items (1) | $ | (3 | ) | $ | (22 | ) | $ | (0.25 | ) |
Three Months Ended March 31, 2021 | Operating Income | Net Income | EPS | ||||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | |||||||||||||||||||||||||||||
GAAP, as reported | $ | 177 | $ | 87 | $ | 1.06 | |||||||||||||||||||||||
Adjustments for special items: | |||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | 3 | 3 | 0.03 | ||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | — | (2) | (0.02) | ||||||||||||||||||||||||||
Other expense, net | — | 45 | 0.55 | ||||||||||||||||||||||||||
Income tax effect of special items | — | (14) | (0.17) | ||||||||||||||||||||||||||
Adjusted for special items (1) | $ | 180 | $ | 119 | $ | 1.45 |
Three Months Ended March 31, 2020 | Operating Loss | Net Loss | EPS | ||||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | |||||||||||||||||||||||||||||
GAAP, as reported | $ | (8) | $ | (1) | $ | (0.01) | |||||||||||||||||||||||
Adjustments for special items: | |||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | (2) | (2) | (0.02) | ||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | — | (15) | (0.17) | ||||||||||||||||||||||||||
Other income, net | — | (28) | (0.32) | ||||||||||||||||||||||||||
Income tax effect of special items | — | 17 | 0.19 | ||||||||||||||||||||||||||
Adjusted for special items (1) | $ | (10) | $ | (29) | $ | (0.33) |
Three Months Ended June 30, 2019 | Operating Income | Net Income | EPS | |||||||||
(Unaudited, in millions, except per share amounts) | ||||||||||||
GAAP, as reported | $ | 40 | $ | 25 | $ | 0.27 | ||||||
Adjustments for special items: | ||||||||||||
Non-operating pension and other postretirement benefit credits | — | (12 | ) | (0.13 | ) | |||||||
Other expense, net | — | 1 | 0.01 | |||||||||
Income tax effect of special items | — | (3 | ) | (0.03 | ) | |||||||
Adjusted for special items (1) | $ | 40 | $ | 11 | $ | 0.12 |
(1) | Operating income (loss), net income (loss) and net income (loss) per share (or, “EPS”), in each case as adjusted for special items, are not financial measures recognized under U.S. generally accepted accounting principles (or, “GAAP”). We calculate operating income (loss), as adjusted for special items, as operating income (loss) from our Consolidated Statements of Operations, adjusted for items such as closure costs, impairment, and other related charges |
Six Months Ended June 30, 2020 | Operating Loss | Net Income (Loss) | EPS | |||||||||
(Unaudited, in millions, except per share amounts) | ||||||||||||
GAAP, as reported | $ | (2 | ) | $ | 5 | $ | 0.06 | |||||
Adjustments for special items: | ||||||||||||
Closure costs, impairment and other related charges | (2 | ) | (2 | ) | (0.02 | ) | ||||||
Net gain on disposition of assets | (9 | ) | (9 | ) | (0.10 | ) | ||||||
Non-operating pension and other postretirement benefit credits | — | (19 | ) | (0.22 | ) | |||||||
Other income, net | — | (38 | ) | (0.43 | ) | |||||||
Income tax effect of special items | — | 12 | 0.14 | |||||||||
Adjusted for special items (1) | $ | (13 | ) | $ | (51 | ) | $ | (0.57 | ) |
Six Months Ended June 30, 2019 | Operating Income | Net Income | EPS | |||||||||
(Unaudited, in millions, except per share amounts) | ||||||||||||
GAAP, as reported | $ | 104 | $ | 67 | $ | 0.71 | ||||||
Adjustments for special items: | ||||||||||||
Non-operating pension and other postretirement benefit credits | — | (24 | ) | (0.26 | ) | |||||||
Other expense, net | — | 5 | 0.06 | |||||||||
Income tax effect of special items | — | (7 | ) | (0.07 | ) | |||||||
Adjusted for special items (1) | $ | 104 | $ | 41 | $ | 0.44 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 873 | $ | 689 | |||||||||||||||||||||||||||||||||||||
Operating income (loss) per segment: | |||||||||||||||||||||||||||||||||||||||||
Market pulp | $ | 4 | $ | (3) | |||||||||||||||||||||||||||||||||||||
Tissue | (2) | 2 | |||||||||||||||||||||||||||||||||||||||
Wood products | 221 | 5 | |||||||||||||||||||||||||||||||||||||||
Paper | (24) | (3) | |||||||||||||||||||||||||||||||||||||||
Segment total | 199 | 1 | |||||||||||||||||||||||||||||||||||||||
Corporate and other | (22) | (9) | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 177 | $ | (8) | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ | 87 | $ | (1) | |||||||||||||||||||||||||||||||||||||
Net income (loss) per common share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.07 | $ | (0.01) | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 1.06 | $ | (0.01) | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 221 | $ | 32 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except per share amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 612 | $ | 755 | $ | 1,301 | $ | 1,550 | |||||||||
Operating income (loss) per segment: | |||||||||||||||||
Market pulp | $ | 10 | $ | 27 | $ | 7 | $ | 69 | |||||||||
Tissue | (2 | ) | (4 | ) | — | (12 | ) | ||||||||||
Wood products | 15 | (3 | ) | 20 | 3 | ||||||||||||
Paper | (12 | ) | 32 | (15 | ) | 75 | |||||||||||
Segment total | 11 | 52 | 12 | 135 | |||||||||||||
Corporate and other | (5 | ) | (12 | ) | (14 | ) | (31 | ) | |||||||||
Operating income (loss) | $ | 6 | $ | 40 | $ | (2 | ) | $ | 104 | ||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 6 | $ | 25 | $ | 5 | $ | 67 | |||||||||
Net income per common share attributable to Resolute Forest Products Inc. common shareholders: | |||||||||||||||||
Basic | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.73 | |||||||||
Diluted | $ | 0.07 | $ | 0.27 | $ | 0.06 | $ | 0.71 | |||||||||
Adjusted EBITDA (1) | $ | 37 | $ | 82 | $ | 69 | $ | 186 |
(Unaudited, in millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
Cash and cash equivalents | $ | 33 | $ | 113 | ||||||||||||||||
Total assets | $ | 3,728 | $ | 3,730 |
(Unaudited, in millions) | June 30, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | $ | 27 | $ | 3 | ||||
Total assets | $ | 3,667 | $ | 3,626 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interest | $ | 88 | $ | (1) | |||||||||||||||||||||||||||||||||||||
Interest expense | 6 | 9 | |||||||||||||||||||||||||||||||||||||||
Income tax provision | 40 | 27 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 41 | 42 | |||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 175 | $ | 77 | |||||||||||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | 3 | (2) | |||||||||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | (2) | (15) | |||||||||||||||||||||||||||||||||||||||
Other expense (income), net | 45 | (28) | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 221 | $ | 32 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income including noncontrolling interest | $ | 6 | $ | 25 | $ | 5 | $ | 67 | |||||||||
Interest expense | 9 | 7 | 18 | 16 | |||||||||||||
Income tax provision | 5 | 19 | 32 | 40 | |||||||||||||
Depreciation and amortization | 40 | 42 | 82 | 82 | |||||||||||||
EBITDA | $ | 60 | $ | 93 | 137 | 205 | |||||||||||
Closure costs, impairment and other related charges | — | — | (2 | ) | — | ||||||||||||
Net gain on disposition of assets | (9 | ) | — | (9 | ) | — | |||||||||||
Non-operating pension and other postretirement benefit credits | (4 | ) | (12 | ) | (19 | ) | (24 | ) | |||||||||
Other (income) expense, net | (10 | ) | 1 | (38 | ) | 5 | |||||||||||
Adjusted EBITDA | $ | 37 | $ | 82 | $ | 69 | $ | 186 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 176 | $ | 177 | |||||||||||||||||||||||||||||||||||||
Operating income (loss) (1) | $ | 4 | $ | (3) | |||||||||||||||||||||||||||||||||||||
EBITDA (2) | $ | 10 | $ | 3 | |||||||||||||||||||||||||||||||||||||
(In thousands of metric tons) | |||||||||||||||||||||||||||||||||||||||||
Shipments | 272 | 303 | |||||||||||||||||||||||||||||||||||||||
Downtime | 25 | — | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 161 | $ | 189 | $ | 338 | $ | 420 | |||||||||
Operating income (1) | $ | 10 | $ | 27 | $ | 7 | $ | 69 | |||||||||
EBITDA (2) | $ | 16 | $ | 32 | $ | 19 | $ | 79 | |||||||||
(In thousands of metric tons) | |||||||||||||||||
Shipments | 258 | 257 | 561 | 543 | |||||||||||||
Downtime | 33 | 15 | 33 | 23 |
March 31, | ||||||||||||||||||||
(Unaudited, in thousands of metric tons) | 2021 | 2020 | ||||||||||||||||||
Finished goods inventory | 46 | 69 |
June 30, | ||||||||
(Unaudited, in thousands of metric tons) | 2020 | 2019 | ||||||
Finished goods inventory | 87 | 110 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | (Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income including noncontrolling interest | $ | 10 | $ | 27 | $ | 7 | $ | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interest | Net income (loss) including noncontrolling interest | $ | 4 | $ | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6 | 5 | 12 | 10 | Depreciation and amortization | 6 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 16 | $ | 32 | $ | 19 | $ | 79 | EBITDA | $ | 10 | $ | 3 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 42 | $ | 49 | |||||||||||||||||||||||||||||||||||||
Operating (loss) income (1) | $ | (2) | $ | 2 | |||||||||||||||||||||||||||||||||||||
EBITDA (2) | $ | 3 | $ | 6 | |||||||||||||||||||||||||||||||||||||
(In thousands of short tons) | |||||||||||||||||||||||||||||||||||||||||
Shipments (3) | 23 | 28 | |||||||||||||||||||||||||||||||||||||||
Downtime | — | — | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 44 | $ | 43 | $ | 93 | $ | 82 | |||||||||
Operating loss (1) | $ | (2 | ) | $ | (4 | ) | $ | — | $ | (12 | ) | ||||||
EBITDA (2) | $ | 3 | $ | — | $ | 9 | $ | (3 | ) | ||||||||
(In thousands of short tons) | |||||||||||||||||
Shipments (3) | 24 | 25 | 52 | 49 | |||||||||||||
Downtime | 2 | — | 2 | 1 |
March 31, | ||||||||||||||||||||
(Unaudited, in thousands of short tons) | 2021 | 2020 | ||||||||||||||||||
Finished goods inventory (3) | 8 | 5 |
June 30, | ||||||||
(Unaudited, in thousands of short tons) | 2020 | 2019 | ||||||
Finished goods inventory (3) | 5 | 7 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss including noncontrolling interest | $ | (2 | ) | $ | (4 | ) | $ | — | $ | (12 | ) | ||||||
Depreciation and amortization | 5 | 4 | 9 | 9 | |||||||||||||
EBITDA | $ | 3 | $ | — | $ | 9 | $ | (3 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Net (loss) income including noncontrolling interest | $ | (2) | $ | 2 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5 | 4 | |||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 3 | $ | 6 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 430 | $ | 174 | |||||||||||||||||||||||||||||||||||||
Operating income (1) | $ | 221 | $ | 5 | |||||||||||||||||||||||||||||||||||||
EBITDA (2) | $ | 232 | $ | 16 | |||||||||||||||||||||||||||||||||||||
(In millions board feet) | |||||||||||||||||||||||||||||||||||||||||
Shipments (3) | 492 | 443 | |||||||||||||||||||||||||||||||||||||||
Downtime | 30 | 95 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 199 | $ | 168 | $ | 373 | $ | 329 | |||||||||
Operating income (loss) (1) | $ | 15 | $ | (3 | ) | $ | 20 | $ | 3 | ||||||||
EBITDA (2) | $ | 25 | $ | 6 | $ | 41 | $ | 20 | |||||||||
(In millions board feet) | |||||||||||||||||
Shipments (3) | 521 | 484 | 964 | 912 | |||||||||||||
Downtime | 73 | 53 | 168 | 94 |
March 31, | ||||||||||||||||||||
(Unaudited, in millions board feet) | 2021 | 2020 | ||||||||||||||||||
Finished goods inventory (3) | 143 | 148 |
June 30, | ||||||||
(Unaudited, in millions board feet) | 2020 | 2019 | ||||||
Finished goods inventory (3) | 119 | 122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) including noncontrolling interest | $ | 15 | $ | (3 | ) | $ | 20 | $ | 3 | ||||||||
Depreciation and amortization | 10 | 9 | 21 | 17 | |||||||||||||
EBITDA | $ | 25 | $ | 6 | $ | 41 | $ | 20 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Net income including noncontrolling interest | $ | 221 | $ | 5 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 11 | 11 | |||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 232 | $ | 16 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 225 | $ | 289 | |||||||||||||||||||||||||||||||||||||
Operating loss (1) | $ | (24) | $ | (3) | |||||||||||||||||||||||||||||||||||||
EBITDA (2) | $ | (9) | $ | 14 | |||||||||||||||||||||||||||||||||||||
(In thousands of metric tons) | |||||||||||||||||||||||||||||||||||||||||
Shipments | 378 | 482 | |||||||||||||||||||||||||||||||||||||||
Downtime | 158 | 22 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions, except where otherwise stated) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Sales | $ | 208 | $ | 355 | $ | 497 | $ | 719 | |||||||||
Operating (loss) income (1) | $ | (12 | ) | $ | 32 | $ | (15 | ) | $ | 75 | |||||||
EBITDA (2) | $ | 4 | $ | 51 | $ | 18 | $ | 111 | |||||||||
(In thousands of metric tons) | |||||||||||||||||
Shipments | 350 | 525 | 832 | 1,040 | |||||||||||||
Downtime | 178 | 65 | 200 | 77 |
March 31, | ||||||||||||||||||||
(Unaudited, in thousands of metric tons) | 2021 | 2020 | ||||||||||||||||||
Finished goods inventory | 87 | 150 |
June 30, | ||||||||
(Unaudited, in thousands of metric tons) | 2020 | 2019 | ||||||
Finished goods inventory | 130 | 154 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | (Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income including noncontrolling interest | $ | (12 | ) | $ | 32 | $ | (15 | ) | $ | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss including noncontrolling interest | Net loss including noncontrolling interest | $ | (24) | $ | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 16 | 19 | 33 | 36 | Depreciation and amortization | 15 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | $ | 4 | $ | 51 | $ | 18 | $ | 111 | EBITDA | $ | (9) | $ | 14 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ | — | $ | (2) | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (4) | (4) | |||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | (15) | (5) | |||||||||||||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | (3) | 2 | |||||||||||||||||||||||||||||||||||||||
Operating loss | (22) | (9) | |||||||||||||||||||||||||||||||||||||||
Interest expense | (6) | (9) | |||||||||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | 2 | 15 | |||||||||||||||||||||||||||||||||||||||
Other (expense) income, net | (45) | 28 | |||||||||||||||||||||||||||||||||||||||
Income tax provision | (40) | (27) | |||||||||||||||||||||||||||||||||||||||
Net loss including noncontrolling interest | $ | (111) | $ | (2) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ | (2 | ) | $ | — | $ | (4 | ) | $ | (7 | ) | ||||||
Depreciation and amortization | (3 | ) | (5 | ) | (7 | ) | (10 | ) | |||||||||
Selling, general and administrative expenses | (9 | ) | (7 | ) | (14 | ) | (14 | ) | |||||||||
Closure costs, impairment and other related charges | — | — | 2 | — | |||||||||||||
Net gain on disposition of assets | 9 | — | 9 | — | |||||||||||||
Operating loss | (5 | ) | (12 | ) | (14 | ) | (31 | ) | |||||||||
Interest expense | (9 | ) | (7 | ) | (18 | ) | (16 | ) | |||||||||
Non-operating pension and other postretirement benefit credits | 4 | 12 | 19 | 24 | |||||||||||||
Other income (expense), net | 10 | (1 | ) | 38 | (5 | ) | |||||||||||
Income tax provision | (5 | ) | (19 | ) | (32 | ) | (40 | ) | |||||||||
Net loss including noncontrolling interest | $ | (5 | ) | $ | (27 | ) | $ | (7 | ) | $ | (68 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
Net loss including noncontrolling interest | $ | (111) | $ | (2) | |||||||||||||||||||||||||||||||||||||
Interest expense | 6 | 9 | |||||||||||||||||||||||||||||||||||||||
Income tax provision | 40 | 27 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4 | 4 | |||||||||||||||||||||||||||||||||||||||
EBITDA | (61) | 38 | |||||||||||||||||||||||||||||||||||||||
Closure costs, impairment and other related charges | 3 | (2) | |||||||||||||||||||||||||||||||||||||||
Non-operating pension and other postretirement benefit credits | (2) | (15) | |||||||||||||||||||||||||||||||||||||||
Other expense (income), net | 45 | (28) | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (15) | $ | (7) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(Unaudited, in millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss including noncontrolling interest | $ | (5 | ) | $ | (27 | ) | $ | (7 | ) | $ | (68 | ) | |||||
Interest expense | 9 | 7 | 18 | 16 | |||||||||||||
Income tax provision | 5 | 19 | 32 | 40 | |||||||||||||
Depreciation and amortization | 3 | 5 | 7 | 10 | |||||||||||||
EBITDA | 12 | 4 | 50 | (2 | ) | ||||||||||||
Closure costs, impairment and other related charges | — | — | (2 | ) | — | ||||||||||||
Net gain on disposition of assets | (9 | ) | — | (9 | ) | — | |||||||||||
Non-operating pension and other postretirement benefit credits | (4 | ) | (12 | ) | (19 | ) | (24 | ) | |||||||||
Other (income) expense, net | (10 | ) | 1 | (38 | ) | 5 | |||||||||||
Adjusted EBITDA | $ | (11 | ) | $ | (7 | ) | $ | (18 | ) | $ | (21 | ) |
Three Months Ended March 31, | ||||||||||||||||||||
(Unaudited, in millions) | 2021 | 2020 | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 74 | $ | (49) | ||||||||||||||||
Net cash used in investing activities | (43) | (206) | ||||||||||||||||||
Net cash (used in) provided by financing activities | (99) | 368 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | — | (3) | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash | $ | (68) | $ | 110 |
Six Months Ended June 30, | ||||||||
(Unaudited, in millions) | 2020 | 2019 | ||||||
Net cash provided by operating activities | $ | 76 | $ | 95 | ||||
Net cash used in investing activities | (227 | ) | (69 | ) | ||||
Net cash provided by (used in) financing activities | 176 | (232 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1 | ) | 1 | |||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | $ | 24 | $ | (205 | ) |
(Unaudited, in millions) | Six Months Ended June 30, 2020 | Year Ended December 31, 2019 | |||||||
Sales (1) | $ | 1,076 | $ | 2,379 | |||||
Operating loss | $ | (57 | ) | $ | (203 | ) | |||
Net loss | $ | (49 | ) | $ | (207 | ) |
(Unaudited, in millions) | June 30, 2020 | December 31, 2019 | |||||||
Total current assets (1) | $ | 425 | $ | 414 | |||||
Total long-term assets (2) | $ | 907 | $ | 833 | |||||
Total current liabilities (3) | $ | 885 | $ | 913 | |||||
Total long-term liabilities | $ | 1,043 | $ | 872 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||||||||||||||
January 1 to January 31 | — | $ | — | — | $ | 70,460,359 | ||||||||||||||||||||||||||||||||
February 1 to February 28 | 291,202 | 9.36 | 291,202 | 67,734,708 | ||||||||||||||||||||||||||||||||||
March 1 to March 31 | 1,457,252 | 9.52 | 1,457,252 | 53,861,669 | ||||||||||||||||||||||||||||||||||
Total | 1,748,454 | $ | 9.50 | 1,748,454 | $ | 53,861,669 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||
April 1 to April 30 | — | $ | — | — | $ | 100,000,000 | ||||||||||
May 1 to May 31 | — | — | — | 100,000,000 | ||||||||||||
June 1 to June 30 | 253,898 | 2.09 | 253,898 | 99,469,293 | ||||||||||||
Total | 253,898 | $ | 2.09 | 253,898 | $ | 99,469,293 |
Exhibit No. | Description | |||||||
Indenture, dated as of February 2, 2021, among Resolute Forest Products Inc., the guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference from Exhibit 4.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed March 1, 2021, SEC File No. 001-33776). | ||||||||
Change in control agreement between Remi G. Lalonde and Resolute Forest Products Inc. | ||||||||
Special Advisor Employment Agreement between Yves Laflamme and Resolute Forest Products Inc., dated April 9, 2021. | ||||||||
First Amendment effective April 19, 2021, to the Amended and Restated Credit Agreement, dated as of October 28, 2019, among Resolute Forest Products Inc., certain U.S. subsidiaries of Resolute Forest Products Inc. as borrowers and guarantors, various lenders, and American AgCredit, FLCA, as administrative agent and collateral agent. | ||||||||
Amendment No 3 dated January 28, 2021, to the Credit Agreement dated May 22, 2015, as amended by the First Amendment dated as of December 22, 2017 and by the Second Amendment dated as of May 14, 2019, with certain lenders and Bank of America, N.A., as U.S. administrative agent and collateral agent, and Bank of America, N.A. (through its Canada branch) as the Canadian administrative agent. | ||||||||
Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of President and Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||
101.INS* | XBRL Instance Document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
† | This is a management contract or compensatory plan or arrangement. | ||||
* | Interactive data files furnished with this Form 10-Q, which represent the following materials from this Form 10-Q formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income (Loss), (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Interim Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document. |
RESOLUTE FOREST PRODUCTS INC. | ||||||||
By | /s/ | |||||||
Senior Vice President and Chief Financial Officer | ||||||||
By | /s/ | |||||||
Vice President and Chief Accounting Officer |