Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2024 shares | |
Entity Addresses [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2024 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
No Trading Symbol Flag | true |
Entity Registrant Name | DOMTAR CORPORATION |
Entity Central Index Key | 0001381531 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Small Business | false |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity File Number | 001-33164 |
Entity Tax Identification Number | 20-5901152 |
Entity Address, Address Line One | 234 Kingsley Park Drive |
Entity Address, City or Town | Fort Mill |
Entity Address, State or Province | SC |
Entity Address, Postal Zip Code | 29715 |
City Area Code | 803 |
Local Phone Number | 802-7500 |
Entity Incorporation, State or Country Code | DE |
Document Quarterly Report | true |
Document Transition Report | false |
Title of 12(b) Security | None |
Other Address | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 395 de Maisonneuve Blvd. West |
Entity Address, City or Town | Montreal |
Entity Address, State or Province | QC |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | H3A 1L6 |
City Area Code | 514 |
Local Phone Number | 848-5555 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | |||
Income Statement [Abstract] | ||||
Sales | $ 1,786 | $ 1,595 | [1] | |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 1,545 | 1,286 | [1] | |
Depreciation and amortization | 84 | 62 | [1] | |
Selling, general and administrative | 103 | 89 | [1] | |
Impairment of long-lived assets (NOTE 10) | [1] | 19 | ||
Closure and restructuring costs (NOTE 10) | 11 | 7 | [1] | |
Asset conversion costs (NOTE 10) | [1] | 30 | ||
Transaction costs (NOTE 3) | [1] | 56 | ||
Other operating income, net | (16) | (2) | [1] | |
Operating expenses | 1,727 | 1,547 | [1] | |
Operating income from continuing operations | 59 | 48 | [1] | |
Interest expense, net | 59 | 49 | [1] | |
Non-service components of net periodic benefit cost (NOTE 6) | (5) | (4) | [1] | |
Earnings before income taxes | 5 | 3 | [1] | |
Income tax expense (benefit) (NOTE 7) | 5 | (56) | [1] | |
Earnings from continuing operations | 0 | 59 | [1] | |
Earnings from discontinued operations, net of taxes (NOTE 4) | [1] | 2 | ||
Net earnings | 0 | 61 | [1] | |
Net derivative (losses) gains on cash flow hedges: | ||||
Net losses arising during the period, net of tax of $4 (2023 - $2) | (14) | (5) | [1] | |
Less: Reclassification adjustment for losses included in net earnings, net of tax of $(1) (2023 - $(3)) | 3 | 8 | [1] | |
Foreign currency translation adjustments | (26) | 1 | [1] | |
Change in unrecognized losses and prior service cost related to pension and other post-retirement benefit plans, net of tax of nil (2023 - nil) | [1] | (1) | ||
Other comprehensive (loss) income | (37) | 3 | [1] | |
Comprehensive (loss) income | $ (37) | $ 64 | [1] | |
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net (losses) gains arising during the period, tax | $ 4 | $ 2 |
Reclassification adjustment for losses (gains) included in net (losses) earnings, net, tax | (1) | (3) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 0 | $ 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents, including restricted cash of $15 and $15 | $ 103 | $ 203 |
Receivables, less allowances of $8 and $9 | 781 | 742 |
Receivables from related party (NOTE 15) | 23 | 21 |
Inventories (NOTE 8) | 1,356 | 1,337 |
Prepaid expenses | 50 | 58 |
Income and other taxes receivable | 65 | 96 |
Other current assets | 22 | 24 |
Total current assets | 2,400 | 2,481 |
Property, plant and equipment, net | 3,655 | 3,714 |
Operating lease right-of-use assets | 98 | 98 |
Intangible assets, net | 22 | 22 |
Deferred income tax assets | 519 | 675 |
Other assets (NOTE 9) | 539 | 541 |
Total assets | 7,233 | 7,531 |
Current liabilities | ||
Bank indebtedness | 2 | 14 |
Trade and other payables | 905 | 949 |
Income and other taxes payable | 15 | 33 |
Operating lease liabilities due within one year | 28 | 29 |
Due to related party (NOTE 15) | $ 36 | $ 36 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Long-term debt due within one year | $ 67 | $ 67 |
Total current liabilities | 1,053 | 1,128 |
Long-term debt | 2,415 | 2,410 |
Operating lease liabilities | 74 | 74 |
Deferred income taxes and other | 22 | 175 |
Pension and post-retirement benefit obligations | 822 | 863 |
Other liabilities and deferred credits (NOTE 12) | 309 | 306 |
Commitments and contingencies (NOTE 13) | ||
Shareholders' equity | ||
Additional paid-in capital | 2,727 | 2,727 |
Deficit | (108) | (108) |
Accumulated other comprehensive loss | (81) | (44) |
Total shareholders' equity | 2,538 | 2,575 |
Total liabilities and shareholders' equity | $ 7,233 | $ 7,531 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement Of Financial Position [Abstract] | ||
Restricted cash | $ 15 | $ 15 |
Receivables, allowances | $ 8 | $ 9 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, Shares outstanding | 100 | 100 |
Common stock, shares issued | 100 | 100 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Additional Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss | |
Balance at Dec. 31, 2022 | $ 1,576 | $ 1,994 | $ (396) | $ (22) | |
Net earnings | 61 | [1] | 61 | ||
Net derivative gains on cash flow hedges: | |||||
Net losses arising during the period, net of tax | (5) | [1] | (5) | ||
Less: Reclassification adjustment for losses included in net earnings, net of tax of $(1) | 8 | [1] | 8 | ||
Foreign currency translation adjustments | 1 | [1] | 1 | ||
Change in unrecognized losses and prior service cost related to pension and post-retirement benefit plans, net of tax of nil | (1) | [1] | (1) | ||
Capital contribution | 600 | 600 | |||
Balance at Mar. 31, 2023 | 2,240 | 2,594 | (335) | (19) | |
Balance at Dec. 31, 2023 | 2,575 | 2,727 | (108) | (44) | |
Net earnings | 0 | ||||
Net derivative gains on cash flow hedges: | |||||
Net losses arising during the period, net of tax | (14) | (14) | |||
Less: Reclassification adjustment for losses included in net earnings, net of tax of $(1) | 3 | 3 | |||
Foreign currency translation adjustments | (26) | (26) | |||
Balance at Mar. 31, 2024 | $ 2,538 | $ 2,727 | $ (108) | $ (81) | |
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement Of Stockholders Equity [Abstract] | ||
Net gains (losses) arising during the period, tax | $ 4 | $ 2 |
Reclassification adjustment for losses (gains) included in net (losses) earnings, net, tax | (1) | (3) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | |||
Operating activities | ||||
Net earnings | $ 0 | $ 61 | [1] | |
Adjustments to reconcile net earnings to cash flows used for operating activities | ||||
Depreciation and amortization | 84 | 62 | [1] | |
Deferred income taxes and tax uncertainties (NOTE 7) | 3 | (66) | [1] | |
Impairment of long-lived assets (NOTE 10) | [2] | 19 | ||
Net loss (gain) on disposals of property, plant and equipment | 1 | (2) | [1] | |
Other | (3) | 13 | [1] | |
Changes in assets and liabilities, excluding the effect of acquisition of businesses | ||||
Receivables, including related party | (44) | 3 | [1] | |
Inventories | (26) | (58) | [1] | |
Prepaid expenses | 7 | 14 | [1] | |
Trade and other payables, including related party | (38) | (213) | [1] | |
Income and other taxes | 11 | (30) | [1] | |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (29) | (9) | [1] | |
Other assets and other liabilities | (1) | (2) | [1] | |
Cash flows used for operating activities | (35) | (208) | [1] | |
Investing activities | ||||
Additions to property, plant and equipment | (53) | (78) | [1] | |
Proceeds from disposals of property, plant and equipment | [1] | 7 | ||
Acquisition of businesses, net of cash acquired | [1] | (1,098) | ||
Other | [1] | (2) | ||
Cash flows used for investing activities | (53) | (1,171) | [1] | |
Financing activities | ||||
Issuance of capital | [1] | 500 | ||
Net change in bank indebtedness | (12) | (7) | [1] | |
Change in revolving credit facility | 20 | 260 | [1] | |
Issuance of long-term debt, net of debt issue costs | [1] | 929 | ||
Issuance to related party | 1 | 48 | [1] | |
Repayments to related party | [1] | (54) | ||
Repayments of long-term debt | (16) | (613) | [1] | |
Other | [1] | (8) | ||
Cash flows (used for) provided from financing activities | (7) | 1,055 | [1] | |
Net decrease in cash and cash equivalents | (95) | (324) | [1] | |
Impact of foreign exchange on cash | (5) | 1 | [1] | |
Cash, cash equivalents and restricted cash at beginning of period | 203 | 521 | [1] | |
Cash, cash equivalents and restricted cash at end of period | 103 | 198 | [1] | |
Supplemental cash flow information | ||||
Interest | 42 | 29 | [1] | |
Income taxes | $ (8) | $ 50 | [1] | |
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1. _________________ BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the Securities and Exchange Commission. The December 31, 2023 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities. Results for the first three months of the year may not necessarily be indicative of full-year results. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2 . _________________ RECENT ACCOUNTING PRONOUNCEMENTS FUTURE ACCOUNTING CHANGES SEGMENT REPORTING On November 27, 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The guidance is effective for calendar year-end public entities in 2024 and should be adopted retrospectively unless impracticable. Early adoption is permitted. The Company is currently assessing the impact of the new guidance which is expected to have a disclosure impact only. INCOME TAXES DISCLOSURE On December 14, 2023, the FASB issued ASU 2023-09, “ Improvements to Income Tax Disclosures ” which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. The Company is currently assessing the impact of the new guidance which is expected to have a disclosure impact only. |
Acquisition of Businesses
Acquisition of Businesses | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Acquisition of Businesses | NO TE 3. _________________ ACQUISITION OF BUSINESSES Acquisition of Catalyst Paper Corporation - transaction between entities under common control On October 27, 2023, Domtar completed the acquisition of all the outstanding common and preferred shares of Catalyst Paper Corporation (“Catalyst”), which included one pulp and paper mill and one paper mill, both located in British Columbia, for a purchase consideration of $ 1 dollar. Paper Excellence group of companies owned both Domtar and Catalyst. The acquisition of Catalyst from Paper Excellence was accounted for as a transaction between entities under common control in accordance with ASC 805-50, Business Combination – Related Issues , which requires that Catalyst’s related assets and liabilities be transferred at their historical carrying amounts on the acquisition date. Domtar recognized a capital contribution of $ 727 million, which corresponds to the excess of the carrying value of the net assets transferred on the acquisition date over the purchase consideration. Further, ASC 805-50 requires retrospective combination of entities as if the combination had been in effect since the inception of common control. Accordingly, the financial information for Domtar and Catalyst have been combined from the inception of common control, which was November 30, 2021, and the accompanying financial statements and related notes of Domtar have been retrospectively adjusted to include the historical results of Catalyst from that date. On January 1, 2024, Domtar and Catalyst were amalgamated. The retrospective effects of the change resulting from the combination of Catalyst to the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) were as follows: For the March 31, 2023 $ Sales 173 Operating loss ( 41 ) Net loss ( 45 ) Other comprehensive loss ( 1 ) Acquisition of Skookumchuck Pulp Inc. - transaction between entities under common control On June 29, 2023, Domtar completed the acquisition of all the outstanding common and preferred shares of Skookumchuck Pulp Inc. (“SPI”), a pulp mill in British Columbia, for a purchase consideration of $ 185 million. Paper Excellence group of companies owned both Domtar and SPI. The acquisition consideration transferred to Paper Excellence consisted of: a $ 50 million non-interest bearing promissory note repaid on July 15, 2023; a $ 35 million promissory note bearing interest at 8.50 % per annum, due after June 30, 2031; and non-voting, redeemable Series B preferred shares totaling $ 100 million bearing interest at 9.75 % per annum and redeemable by Paper Excellence after June 30, 2031. Prior to the acquisition of Catalyst by Domtar, the $ 35 million promissory note and the non-voting, redeemable Series B were contributed to Catalyst by Paper Excellence and are no longer payable by Domtar following the amalgamation of Catalyst and Domtar on January 1, 2024. The acquisition of SPI from Paper Excellence was accounted for as a transaction between entities under common control in accordance with ASC 805-50, Business Combination – Related Issues , which requires that SPI’s related assets and liabilities be transferred at their historical carrying amounts on the acquisition date. Domtar recognized a deemed dividend of $ 55 million, which corresponds to the excess of the purchase consideration of $ 185 million over the carrying value of the net assets transferred of $ 130 million on the acquisition date. Further, ASC 805-50 requires retrospective combination of entities as if the combination had been in effect since the inception of common control. Accordingly, the financial information for Domtar and SPI has been combined from the inception of common control, which was November 30, 2021, and the accompanying financial statements and related notes of Domtar have been retrospectively adjusted to include the historical results of SPI from that date. The retrospective effects of the change resulting from the combination of SPI to the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) were as follows: For the March 31, 2023 $ Sales 59 Operating income 10 Net earnings 86 Other comprehensive income 1 Acquisition of Resolute Forest Products Inc. by Paper Excellence through Domtar Corporation On March 1, 2023, Paper Excellence completed the acquisition of all the outstanding common shares of Resolute Forest Products Inc. ("Resolute") through Domtar by means of a merger of Terra Acquisition Sub Inc. (a Domtar wholly-owned subsidiary) with and into Resolute, with Resolute continuing as the surviving corporation and as a subsidiary of Domtar (the "Acquisition"). Under the Acquisition agreement, Domtar acquired all outstanding shares of Resolute common stock for $ 20.50 per share and one contingent value right tied to any refunds on duty deposits made on or prior to June 30, 2022, of up to $ 500 million. Any proceeds attributable to the contingent value right will be distributed proportionally to contingent value right holders, and the value will ultimately be determined by the terms and timing of the resolution of the softwood lumber dispute between Canada and the United States. The acquisition date fair value of the consideration transferred was $ 1.696 billion, less cash acquired of $ 480 million and including the contingent value right on softwood lumber duty deposit refunds estimated to be $ 118 million and included in Other liabilities and deferred credits in the Consolidated Balance Sheets. Domtar was determined to be the accounting acquirer in the Acquisition which was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the purchase consideration allocated to Resolute’s assets and liabilities is based upon their fair values at the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Fair value of net assets acquired at the date of acquisition Receivables $ 309 Inventories 508 Prepaid expenses 30 Other current assets 12 Property, plant and equipment 952 Operating lease right-of-use assets 38 Deferred income tax assets (1) 737 Other assets (2) 264 Assets held for sale 255 Total assets 3,105 Less: Assumed Liabilities Trade and other payables 538 Operating lease liabilities (including short-term portion) 40 Long-term debt (including short-term portion) 312 Pension and other post-retirement liabilities 643 Other liabilities 90 Liabilities held for sale 41 Total liabilities 1,664 Fair value of net assets acquired at the date of acquisition 1,441 Gain on acquisition (3) ( 225 ) Consideration transferred, less cash acquired 1,216 (1) The Company recognized previously unrecognized deferred tax assets related to operating losses carried forward in the United States and research and development pools and credits in Canada. In addition, deferred tax assets related to timing difference mainly related to pension and other post-retirement benefits, asset retirement obligations and environmental liabilities. Management determines the recoverability of the net deferred tax assets based on a review of all available negative and positive evidence, including historical earnings, projected future results, future reversals of deferred tax liabilities, impact of the tax regulations and available tax planning opportunities. (2) The Company identified $ 74 million of off-market contracts, of which $ 21 million are being amortized over a weighted-average useful life of 11 years. Other assets also include $ 132 million of duty deposits and $ 25 million of equity method investments. (3) The purchase price allocation reflects a gain of $ 225 million recorded under Other operating income , net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). The gain resulted from the recognition and measurement of items, principally related to deferred income tax assets, in accordance with exemptions to the fair value model as provided for by US GAAP under the accounting for business combination. The contingent consideration arrangement requires the Company to pay any refunds related to the countervailing and anti-dumping duty deposits made on or prior to June 30, 2022, of up to $ 500 million to contingent value right holders. The fair value of the contingent consideration arrangement at the acquisition date was $ 118 million. The Company estimated the fair value of the contingent consideration based on the last price of Resolute's common shares on the New York Stock Exchange on February 28, 2023, which is considered a Level 2 measurement. The fair value of property, plant and equipment was primarily determined based on management’s estimate of depreciated replacement cost as further adjusted based on estimated cash flow forecasts. Management applied significant judgment in estimating the fair value of property plant and equipment acquired, which involved the use of assumptions with respect to estimated replacement and reproduction costs, estimated useful lives, and physical, functional and economic obsolescence for the estimated depreciated replacement cost and projections of product pricing, sales volumes, product costs, projected capital spending and discount rates at the time of acquisition for the discounted cash flow model. The fair value of finished goods was calculated as the estimated selling price, adjusted for costs of the selling effort and a reasonable profit allowance relating to the selling effort. The fair value of work in process inventory and raw materials in wood products was primarily calculated as the estimated selling price, adjusted for estimated costs to complete the manufacturing, estimated costs of the selling effort, as well as a reasonable profit margin on the remaining manufacturing and selling effort. The fair value of raw materials, except for raw materials in wood products, was determined to approximate the historical carrying value. The fair value of operating and maintenance supplies was calculated using a method based on historical usage and consumption. The fair value of other working capital items was determined to approximate their historical carrying values. For the three months ended March 31, 2023, the Company recognized $ 53 million of transaction related costs associated to the Acquisition, which also includes advisor and legal fees, as well as the accelerated vesting of certain long-term incentive awards of Resolute. These costs are included in the Consolidated Statements of Earnings and Comprehensive Income (Loss) in the line item entitled Transaction costs. The amounts of Sales and Net loss of Resolute included in the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) for the period from March 1, 2023 to March 31, 2023 are $ 240 million and $ 22 million, respectively. The following represents the unaudited pro forma Consolidated Statements of Earnings and Comprehensive Income (Loss) if Resolute had been included in the Company’s consolidated results for the three months ended March 31, 2023: For the March 31, 2023 (Unaudited) $ Sales 2,043 Net earnings 132 These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Resolute to reflect the reduction in interest expense and the additional depreciation and operating costs that would have been charged assuming the fair value adjustments to property, plant and equipment and off-market energy contracts had been applied on January 1, 2022, together with the related tax effects. In addition, these amounts include the additional interest expense incurred by the Company in relation to the financing of the Acquisition. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NO TE 4. DISCONTINUED OPERATIONS Mandated sale of Thunder Bay and Dryden, Ontario mills On March 1, 2023, Paper Excellence completed the acquisition of all the outstanding common shares of Resolute through Domtar by means of a merger of Terra Acquisition Sub Inc. (a Domtar wholly-owned subsidiary) with and into Resolute, with Resolute continuing as the surviving corporation and as a subsidiary of Domtar. The Acquisition was subject to regulatory approvals in various jurisdictions, including review by the Canadian Competition Bureau, which outlined certain stipulations in a consent agreement before providing their final approval. The consent agreement filed by the Canadian Commissioner of Competition (the “Commissioner”) with the Competition Tribunal fulfilled the final condition to the closing of the Acquisition. According to the consent agreement, following the closing of the Acquisition, Resolute’s pulp and paper mill in Thunder Bay, Ontario and Domtar's pulp mill in Dryden, Ontario were to be sold in order to resolve the Commissioner’s concerns that the Acquisition would likely lessen competition substantially in the supply of northern bleached softwood kraft pulp in Eastern and Central Canada and in the purchase of wood fiber from private lands in Northwestern Ontario. The two mills were sold to two independent purchasers that were approved by the Commissioner. On August 1, 2023, the Company completed the sale of the Thunder Bay pulp and paper mill (the "Thunder Bay disposal group") for a purchase price of $ 231 million. In connection with the sale, the Company entered into Transition Services Agreements with the acquirer pursuant to which the Company agreed to provide various back-office and information technology support until the business is fully separated from the Company. The results of operations of the Thunder Bay disposal group were classified as discontinued operations as the mill was part of Resolute's acquired assets. These results have been summarized in Earnings from discontinued operations, net of taxes on the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) for the period of March 1, 2023 to March 31, 2023. The Consolidated Statements of Cash Flows were not reclassified to reflect discontinued operations. On August 1, 2023, the Company also completed the sale of the Dryden, Ontario mill (the "Dryden disposal group") for a purchase price of $ 186 million. In connection with the sale, the Company entered into Transition Services Agreements with the acquirer pursuant to which the Company agreed to provide various back-office and information technology support until the business is fully separated from Domtar. The results of operations of the Dryden disposal group were not classified as discontinued operations as the mill was part of the pre-existing assets of Domtar. For the three month ended March 31, 2023, the Company recognized $ 3 million of transaction related costs associated with this sale. These costs are included in the Consolidated Statements of Earnings and Comprehensive Income (Loss) in the line item entitled Transaction costs. Major components of earnings from discontinued operations: For the three months ended March 31, 2023 $ Sales 26 Operating expenses Cost of sales, excluding depreciation and amortization 22 Other operating loss, net 1 23 Operating income 3 Net gain on disposition of discontinued operations — Earnings from discontinued operations before 3 Income tax expense 1 Net earnings from discontinued operations 2 Cash Flows from Discontinued Operations: For the three months ended March 31, 2023 $ Cash flows from operating activities 1 Cash flows used for investing activities ( 1 ) |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | N OTE 5. ________________ DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices and interest rates. To the extent the Company decides to manage the volatility related to these exposures, the Company may enter into various financial derivatives that are accounted for under the derivatives and hedging guidance. These transactions are governed by the Company's hedging policies which provide direction on acceptable hedging activities, including instrument type and acceptable counterparty exposure. Upon inception, the Company formally documents the relationship between hedging instruments and hedged items. At inception and quarterly thereafter, the Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the cash flow or the fair value of the underlying exposures. The Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivable from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of March 31, 2024 and December 31, 2023, no single customer represented more than 10% of the Company's receivables. 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. Collateral or other security to support financial instruments subject to credit risk is usually not obtained. The credit standing of counterparties is regularly monitored. INTEREST RATE RISK The Company is exposed to interest rate risk arising from fluctuations in interest rates on its cash and cash equivalents, bank indebtedness, revolving credit facility, term loan and long-term debt. The Company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts, whereby it agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. COST RISK Cash flow hedges: The Company is exposed to price volatility for raw materials and energy used in its manufacturing process. The Company manages its exposure to cost risk primarily through the use of supplier contracts. The Company purchases natural gas at the prevailing market price at the time of delivery. To reduce the impact on cash flow and earnings due to pricing volatility, the Company may utilize derivatives to fix the price of forecasted natural gas purchases. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Cost of sales in the period during which the hedged transaction affects earnings. Current contracts are used to hedge a portion of forecasted purchases of natural gas over the next 10 months . The natural gas derivative contracts were effective as of March 31, 2024. FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States and Canada. As a result, it is exposed to movements in foreign currency exchange rates in Canada. Moreover, certain assets and liabilities are denominated in Canadian dollars and are exposed to foreign currency movements. Accordingly, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar. The Company may use derivative financial instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates. Current contracts are used to hedge forecasted purchases in Canadian dollars by the Company’s Canadian subsidiaries over the next 22 months . Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. The foreign exchange derivative contracts were effective as of March 31, 2024. FAIR VALUE MEASUREMENT The accounting standards for fair value measurements and disclosures establish a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) and (c) below) at March 31, 2024 and December 31, 2023, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2024 Quoted prices in Significant Significant Balance sheet classification $ $ $ $ Derivatives designated as Asset derivatives Currency derivatives 3 — 3 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 1 — 1 — (a) Other assets Total Assets 5 — 5 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 6 — 6 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other liabilities and deferred Total Liabilities 12 — 12 — Other Instruments: Long-term debt due 67 — 67 — (b) Long-term debt due within Long-term debt 2,246 — 2,246 — (c) Long-term debt Fair Value of financial instruments at: December 31, 2023 Quoted prices in Significant Significant Balance sheet classification $ $ $ $ Derivatives designated as Asset derivatives Currency derivatives 9 — 9 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 15 — 15 — Liabilities derivatives Currency derivatives 2 — 2 — (a) Trade and other payables Natural gas swap contracts 5 — 5 — (a) Trade and other payables Total Liabilities 7 — 7 — Other Instruments: Long-term debt due within 67 — 67 — (b) Long-term debt due within Long-term debt 2,234 — 2,234 — (c) Long-term debt (a) Fair values of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Foreign currency forward and option contracts are valued using standard valuation models. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 . The carrying value of the Company’s long-term debt due within one year is $ 67 million at both March 31, 2024 and December 31, 2023. (c) The carrying value of the Company’s long-term debt is $ 2,415 million and $ 2,410 million at March 31, 2024 and December 31, 2023 , respectively. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, receivables, receivables from related party, bank indebtedness, trade and other payables, payables to related party and income and other taxes approximate their fair values. |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NO TE 6. _________________ PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multi-employer plans. The pension expense under these plans is equal to the Company’s contribution. For the three months ended March 31, 2024 , the pension expense was $ 16 million ( 2023 – $ 15 million). The Company expects to contribute approximately $ 44 million under these plans during the remainder of the year. DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS The Company's employees participate in various employee benefit plans. Prior to the Acquisition, Resolute provided a range of benefits to its employees and retirees, including pension benefits and post-retirement benefits. As part of the Acquisition, the Company assumed the assets and liabilities associated with these plans. Accordingly, on the Acquisition Date, the Company recorded assets of $ 19 million and liabilities of $ 656 million on the Consolidated Balance Sheet related to Resolute's pension and post-retirement benefit plans. The underlying fair value of the pension fund assets and liabilities related to the defined benefit pension plans and post-retirement benefit plans of Resolute were $ 3,029 million and $ 3,666 million, respectively, at the time of the Acquisition. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2024 Pension plans Other post-retirement benefit plans $ $ Service cost 5 — Interest expense 51 1 Expected return on plan assets ( 57 ) — Net periodic benefit cost ( 1 ) 1 For the three months ended March 31, 2023 Pension plans Other post-retirement benefit plans $ $ Service cost 4 — Interest expense 27 1 Expected return on plan assets ( 31 ) — Amortization of net actuarial gain — ( 1 ) Net periodic benefit cost — — The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than service cost, are presented in Non-service components of net periodic benefit cost on the Consolidated Statement of Earnings and Comprehensive Income (Loss). For the three months ended March 31, 2024 , the Company contributed $ 25 million ( 2023 – $ 7 million) to the pension plans and $ 3 million ( 2023 – $ 3 million) to the other post-retirement benefit plans. The Company expects to make cash contributions of approximately $ 64 million to the pension plans and $ 12 million to the other post-retirement benefit plans during the remainder of the year. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7. _________________ INCOME TAXES For the first quarter of 2024, the Company had income tax expense of $ 5 million, consisting of $ 2 million of current income tax expense and deferred income tax expense of $ 3 million. This compares to an income tax benefit of $ 56 million in the first quarter of 2023, consisting of $ 11 million of current income tax expense and a deferred income tax benefit of $ 67 million. The Company received refunds, net of income tax payments, of $ 8 million during the first quarter of 2024. The effective tax rate for the first quarter of 2024 was 100 % compared to - 1867 % for the first quarter of 2023. The effective tax rate for 2024 is unfavorably impacted by a valuation allowance on tax assets arising from deferred interest expenses, foreign exchange items and additional U.S. tax expense on foreign operations. The effective tax rate for 2023 was favorably impacted by a valuation allowance reversal on SPI’s tax loss carryforwards due to management’s assessment that the future income of SPI would be sufficient to utilize the losses prior to expiration. This was partially offset by certain transaction costs incurred without a corresponding tax benefit and additional U.S. tax expense for the Global Intangible Low-Taxed Income inclusion related to income from foreign operations. In October 2021, the Organization for Economic Co-operation and Development (OECD) announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting which agreed to a two-pillar framework to address tax challenges arising from digitalization of the economy and profit shifting. In December 2021, the OECD published the Global Anti-Base Erosion Model Rules ("GloBE Rules") designed to ensure that multinational enterprises are subject to tax at an effective minimum tax rate of 15 % in each jurisdiction where they operate. The GloBE Rules were enacted or are in the process of being enacted into the domestic law of the majority of countries wherein the Company operates. For the first quarter of 2024, the GloBE Rules did not impact the Company’s financial results however, we continue to evaluate its impact on future periods. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 8. _________________ INVENTORIES The following table presents the components of inventories: March 31, December 31, 2024 2023 $ $ Work in process and finished goods 695 672 Raw materials 314 328 Operating and maintenance supplies 347 337 1,356 1,337 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NO TE 9. _________________ OTHER ASSETS The following table presents the components of other assets: March 31, December 31, 2024 2023 $ $ Pension asset - defined benefit pension plans 223 225 Countervailing duty and anti-dumping duty cash deposits on softwood lumber 167 159 Off-market contracts 73 72 Other 76 85 539 541 |
Closure and Restructuring, Impa
Closure and Restructuring, Impairment of Long-Lived Assets and Assets Conversion Costs | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring, Impairment of Long-Lived Assets and Assets Conversion Costs | N OTE 10. _________________ CLOSURE AND RESTRUCTURING, IMPAIRMENT OF LONG-LIVED ASSETS AND ASSET CONVERSION COSTS Ashdown curtailment, Arkansas mill On February 21, 2024, the Company announced that it will indefinitely curtail paper operations at its Ashdown, Arkansas, facility. The Ashdown Mill’s paper machine and associated sheeter will be indefinitely idled by the end of June 2024. The curtailment is not expected to result in a workforce reduction. The curtailment will result in an aggregate pre-tax charge to earnings of approximately $ 32 million, which includes an estimated $ 31 million in non-cash charges related to the accelerated depreciation of the carrying amounts of manufacturing equipment and the write-off of related spare parts, and $ 1 million related to other costs. These charges are expected to be incurred in the first half of 2024. During the first quarter of 2024, the Company recorded $ 6 million of accelerated depreciation, under Depreciation and amortization on the Consolidated Statement of Earnings and Comprehensive Income (Loss). Catalyst restructuring and impairment costs, British Columbia mills On October 6, 2022, it was announced that paper operations at the Crofton mill would be curtailed indefinitely starting early December 2022. However, the paper operations restarted in January 2023 but were curtailed again in July 2023. On January 25, 2024, the Company announced the indefinite curtailment of the Crofton mill paper operations. As a result, for the three months ended March 31, 2024, the Company recorded $ 4 million of accelerated depreciation, under Depreciation and amortization on the Consolidated Statement of Earnings and Comprehensive Income (Loss) (2023 – $ 19 million of write-off of property, plant and equipment, under Impairment of long-lived assets on the Consolidated Statements of Earnings and Comprehensive Income (Loss)). On December 1, 2021, it was announced that operations at the Tiskwat mill at Powell River would be curtailed indefinitely. On August 16, 2023, it was announced that operations would be curtailed permanently. During the first quarter of 2024, the Company recorded $ 3 million of severance and termination costs, and $ 2 million of write-off of inventory, under Closure and restructuring costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss) (2023 – $ 7 million and nil , respectively). Idling of Espanola, Ontario mill On September 6, 2023, the Company announced the indefinite idling of the Espanola Mill’s pulp and paper operations for an expected period greater than one year. The mill has been idled after years of ongoing operating losses and high costs associated with maintaining and operating the facility. The pulp mill was shut down in early October 2023 and the paper machines were shut down in early 2024. During the first quarter of 2024, the Company recorded $ 1 million of other costs, under Closure and restructuring costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss). Conversion of Kingsport, Tennessee mill The Company has entered the linerboard market with the conversion of the Kingsport paper machine. The conversion was fully completed in June 2023. For the three months ended March 31, 2023, the Company recorded $ 30 million, under Asset conversion costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss). Other Costs During the first quarter of 2024, other costs related to to previous and ongoing closures and restructuring included $ 1 million of severance and termination costs and $ 4 million of other costs (2023 – nil and nil , respectively). |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 1 1. _________________ CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) for the three months ended March 31, 2024 and the year ended December 31, 2023: Net derivative Pension items (2) Post-retirement (2) Foreign currency Total $ $ $ $ $ Balance at December 31, 2022 ( 12 ) ( 5 ) 36 ( 41 ) ( 22 ) Natural gas swap contracts ( 9 ) N/A N/A N/A ( 9 ) Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 9 N/A N/A N/A 9 Net loss N/A ( 69 ) ( 3 ) N/A ( 72 ) Foreign currency items N/A N/A N/A 34 34 Other comprehensive income (loss) 1 ( 69 ) ( 3 ) 34 ( 37 ) Amounts reclassified from Accumulated 16 2 ( 3 ) — 15 Net current period other comprehensive 17 ( 67 ) ( 6 ) 34 ( 22 ) Balance at December 31, 2023 5 ( 72 ) 30 ( 7 ) ( 44 ) Natural gas swap contracts ( 4 ) N/A N/A N/A ( 4 ) Currency options ( 1 ) N/A N/A N/A ( 1 ) Foreign exchange forward contracts ( 9 ) N/A N/A N/A ( 9 ) Net loss N/A — — N/A — Foreign currency items N/A N/A N/A ( 26 ) ( 26 ) Other comprehensive loss ( 14 ) — — ( 26 ) ( 40 ) Amounts reclassified from Accumulated 3 — — — 3 Net current period other comprehensive ( 11 ) — — ( 26 ) ( 37 ) Balance at March 31, 2024 ( 6 ) ( 72 ) 30 ( 33 ) ( 81 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. The following tables present reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amounts reclassified from For the three months ended March 31, March 31, 2024 2023 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) ( 3 ) ( 7 ) Currency options and forwards (1) ( 1 ) ( 4 ) Total before tax ( 4 ) ( 11 ) Tax benefit 1 3 Net of tax ( 3 ) ( 8 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) — 1 Total before tax — 1 Tax expense — — Net of tax — 1 (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (2) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension plans and other post-retirement benefit plans” for more details). |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Deferred Credits | NOTE 1 2. _________________ OTHER LIABILITIES AND DEFERRED CREDITS The following table presents the components of other liabilities and deferred credits : March 31, December 31, 2024 2023 $ $ Provision for environmental and asset retirement obligations 110 111 Contingent consideration for contingent value right 138 133 Other 61 62 309 306 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | N OTE 13. _________________ COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. The Company may also incur substantial costs in relation to enforcement actions (including orders requiring corrective measures, installation of pollution control equipment or other remedial actions) as a result of violations of, or liabilities under, environmental laws and regulations applicable to its past and present properties. The Company’s ongoing efforts to identify potential environmental concerns that may be associated with such properties may result in additional environmental costs and liabilities which cannot be reasonably estimated at this time. The Company has environmental liabilities o f $ 62 million and $ 64 million recorded as of March 31, 2024 and December 31, 2023, respectively, primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time. The Company also has asset retirement obligations of $ 60 million recorded as of March 31, 2024 and December 31, 2023, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in Trade and other payables and Other liabilities and deferred credits in the Consolidated Balance Sheets. Additionally, the Company has asset retirement obligations with indeterminate settlement dates. The fair value of these liabilities cannot be estimated due to the lack of sufficient information to estimate the settlement dates of the obligation. The Company will recognize liability in the period in which sufficient information becomes available. These asset retirement obligations relate mainly to disposal of potentially hazardous materials that may be required if the Company undergoes major maintenance, renovation or demolition, and to closure of retention ponds that may be required if it ceases its operations. The U.S. Environmental Protection Agency (the “EPA”) and/or various state agencies have notified the Company that it may be a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund”, and similar state laws with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites, due to possible soil, sediment or groundwater contamination. CONTINGENCIES In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at March 31, 2024, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, compliance with laws, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At March 31, 2024 , the Company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provision has been recorded. These indemnifications have not yielded a significant expense in the past. Pension Plans The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At March 31, 2024 , the Company has no t recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. CLIMATE CHANGE AND AIR QUALITY REGULATIONS Various national and local laws and regulations relating to climate change have been established or are emerging in jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. In 2019, the EPA repealed the Clean Power Plan and replaced it with the “Affordable Clean Energy” (“ACE”) rule. The ACE rule was legally challenged in the U.S. Court of Appeals for the D.C. Circuit. The Court vacated the ACE rule and, the repeal of the Clean Power Plan, but the court stayed its mandate as to the Clean Power Plan repeal to avoid reinstating that now outdated rule. However, on June 30, 2022, the Supreme Court reversed the D.C. Circuit’s decision, holding that the Clean Power Plan was an “extraordinary” case of an agency claiming transformative power over a “major question” of policy without a clear statement from Congress. The decision does not completely bar the EPA from regulating greenhouse gas emissions from the power sector but prohibits the EPA from imposing standards based on “generation shifting” away from coal-fired power plants to natural gas plants and renewable resources. On May 23, 2023, the EPA proposed a new climate change rule for existing power plants and repealed the ACE rule. The new rule requires, by 2030, all coal-fired power plants to choose between carbon capture and sequestration, natural gas-co-firing, or retirement by 2032 (or 2035 with a 20 % operating limit). The new rule also applies to all new gas combustion turbines and existing turbines that are large and frequently operated, requiring carbon capture and sequestration or the co-firing of or conversion to hydrogen in lieu of natural gas. While the rule, if finalized as proposed, would dramatically change the electric power sector, the Company does not expect to be disproportionately affected compared with other pulp and paper producers located in the states where the Company operates. The province of Quebec has a greenhouse gas (“GHG”) cap-and-trade system with reduction targets. Ontario has its GHG Emission Performance Standards regulation and the province of British Columbia has its own carbon tax programs. The Company does not expect its facilities to be disproportionately affected by these measures compared to the other pulp and paper producers located in these provinces. The Government of Canada has established a federal carbon pricing system that took effect in 2019. The Federal program is a backstop and takes effect if a province does not have a carbon pricing program or if a provincial program is not rigorous enough to meet federal requirements. The EPA finalized amendments revising certain aspects of its Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”), or Boiler MACT. The revised rule responded to two court decisions that remanded certain issues for further review by the EPA, and it includes revisions to 34 different emission limitations that could apply to some of the Company’s facilities. Although the EPA has indicated that a small number of facilities may need to reduce emissions further compared to the current limits, the EPA does not expect additional costs to be significant and the Company does not expect its facilities to be disproportionately affected compared to other U.S. pulp and paper producers. LEGAL MATTERS The Company becomes involved in various legal proceedings, claims and governmental inquiries, investigations, and other disputes in the normal course of business, including matters related to contracts, torts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, product safety and liability, asbestos exposure, financial reporting and disclosure obligations, corporate governance, Indigenous peoples’ claims, antitrust, governmental regulations, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, the Company regularly assesses the status of the matters and establishes provisions (including legal costs expected to be incurred) when it believes an adverse outcome is probable, and the amount can be reasonably estimated. Any recovery from litigation or settlement of claims that is a gain contingency is recognized if, and when, realized or realizable. Except as described below and for claims that cannot be assessed due to their preliminary nature, the Company believes that the ultimate disposition of these matters outstanding or pending as of March 31, 2024, will not have a material adverse effect on the Company's Consolidated Financial Statements. ASBESTOS-RELATED LAWSUITS The Company is involved in a number of asbestos-related lawsuits filed primarily in U.S. state courts, including certain cases involving multiple defendants. These lawsuits principally allege direct or indirect personal injury or death resulting from exposure to asbestos-containing premises. While the Company disputes the plaintiffs’ allegations and intends to vigorously defend these claims, the ultimate resolution of these matters cannot be determined at this time. These lawsuits frequently involve claims for unspecified compensatory and punitive damages, and the Company is unable to reasonably estimate a range of possible losses, which may not be covered in whole or in part by its insurance coverage. However, unfavorable rulings, judgments or settlement terms could materially impact the Consolidated Financial Statements. Hearings for certain of these matters are scheduled to occur in the next twelve months. COUNTERVAILING DUTY AND ANTI-DUMPING INVESTIGATIONS ON SOFTWOOD LUMBER On November 25, 2016, countervailing duty and anti-dumping petitions were filed with the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC”) by certain U.S. softwood lumber products producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of the Company’s subsidiaries was identified in the petitions as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in the countervailing and anti-dumping duty investigations, in the first administrative review of the countervailing and anti-dumping duty orders, and in the second and third administrative reviews of the countervailing duty order. The Company was not selected as a respondent by Commerce in other administrative reviews of the countervailing and anti-dumping duty orders, in which the Company’s subject imports were assigned the rate applicable to non-selected importers. The cash deposit rates on account of countervailing and anti-dumping duties paid for the Company’s subject imports of Canadian-origin softwood lumber products into the United States are as follows: Effective dates for deposits on account of countervailing duties Cash deposit rates Initial Investigation April 28 2017 – November 7, 2017 (Preliminary Determination) 12.82 % November 8, 2017 – November 30, 2020 (Final Determination) 14.70 % First Administrative Review December 1, 2020 – December 1, 2021 19.10 % Second Administrative Review December 2, 2021 – August 8, 2022 18.07 % Third Administrative Review August 9, 2022 – July 31, 2023 10.10 % Fourth Administrative Review August 1, 2023 – Present 1.79 % Commerce is expected to issue its final determination in the fifth administrative review of the countervailing investigation in the third quarter of 2024, at which time a new rate will take effect for the Company; this new rate was estimated at 6.71 % for the Company in a non-binding, preliminary determination issued on January 31, 2024, which is subject to modification in the upcoming final determination. Effective dates for deposits on account of anti-dumping duties Cash deposit rates Initial Investigation June 30, 2017 – November 7, 2017 (Preliminary Determination) 4.59 % November 8, 2017 – November 29, 2020 (Final Determination) 3.20 % First Administrative Review November 30, 2020 – December 1, 2021 1.15 % Second Administrative Review December 2, 2021 – August 8, 2022 11.59 % Third Administrative Review August 9, 2022 – July 31, 2023 4.76 % Fourth Administrative Review August 1, 2023 – September 6, 2023 6.20 % September 7, 2023 – Present 6.26 % Commerce is expected to issue its final determination in the fifth administrative review of the anti-dumping investigation in the third quarter of 2024, at which time a new rate will take effect for the Company; this new rate was estimated at 7.15 % for the Company in a non-binding, preliminary determination issued on January 31, 2024, which is subject to modification in the upcoming final determination. Ongoing Administrative Reviews Following Commerce’s completion of the Canadian softwood lumber investigation and the first, second, third, and fourth administrative reviews, the fifth administrative review remains pending. On March 14, 2023, Commerce published a notice initiating the fifth administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada; in decisions published on April 19, and 20, 2023, the Company was not selected as a mandatory respondent in the countervailing and anti-dumping proceedings, respectively. On March 5, 2024, Commerce published a notice initiating the sixth administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. Ongoing Appellate Reviews On December 14, 2017 and January 4, 2018, the Company filed complaints supporting appellate reviews of the final results of Commerce’s countervailing and anti-dumping investigations on softwood lumber from Canada, respectively, before a binational panel formed pursuant to the North American Free Trade Agreement or United States-Mexico-Canada Agreement, as the case may be (“Panel”). The Panel issued its decision in the anti-dumping appellate review on October 5, 2023, finding that Commerce's methodology was inconsistent with applicable legal principles and ordering a remand to Commerce, as the Company now awaits Commerce's decision on remand. The hearing for the countervailing appellate review took place from September 27 to 29, 2023 and the Company now awaits a ruling by the Panel. On January 6, 2021 and January 19, 2021, the Company filed its complaints supporting appellate Panel reviews of the final results in the countervailing and anti-dumping first administrative reviews. The Company filed similar complaints with respect to the second administrative reviews on January 12, 2022, and with respect to the third administrative reviews on September 16, 2022. On May 8, 2023, the Company filed with the U.S. Court of International Trade ("CIT") a complaint supporting an appellate review of Commerce's final results in the sunset review of the anti-dumping order. On October 12, 2023, the Company joined the complaint filed by Canadian parties supporting an appellate Panel review of the final results in the countervailing fourth administration review, and also filed a summons before the CIT to initiate an appellate review of the final results in the anti-dumping fourth administrative review. All appellate reviews described above remain pending. Sunset Reviews In parallel, on December 1, 2022, Commerce and the ITC published notices that automatically initiated five-year “sunset” reviews to determine whether revocation, for the future, of the anti-dumping and countervailing duty orders on softwood lumber products from Canada would likely lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC). Commerce released final results in the sunset reviews of the countervailing and anti-dumping orders on March 27 and April 3, 2023, respectively, finding that revocation of the orders would be likely to lead to continuation or recurrence of countervailable subsidies and of dumping. On November 30, 2023, the ITC voted that revocation of the orders would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. World Trade Organization Appeal In addition, on August 24, 2020, the World Trade Organization’s (the “WTO”) dispute panel issued a report (the “Panel Report”) in the case brought by the government of Canada in “United States — Countervailing Measures on Softwood Lumber from Canada” (DS533), concluding, among other things, that Commerce acted inconsistently with the Agreement on Subsidies and Countervailing Measures on most of the matters. On September 28, 2020, the U.S. notified the WTO’s Dispute Settlement Body of its decision to appeal the Panel Report. The appeal remains pending. Financial assurance The Company is required by U.S. Customs to provide surety bonds to secure the payment of its cash deposits. As of March 31, 2024, the Company had $ 110 million of surety bonds outstanding in favor of U.S. Customs, of which $ 62 million were secured by letters of credit. As of March 31, 2024, a total of $ 610 million of cash deposits ($ 467 million of countervailing and $ 143 million of anti-dumping duties) on estimated softwood lumber duties were paid. Of this amount, $ 563 million of deposits ($ 443 million of countervailing and $ 120 million of anti-dumping duties) were paid at acquisition date and were included in the purchase price allocation (refer to Note 3 “Acquisition of businesses”). These deposits are measured, since the acquisition, using a model based on the assumptions that a settlement would be reached and that a certain percentage of the deposits would b e recovered after a certain period of time. Deposits are remeasured with that model every reporting date and the variation is recorded under Other operating income, net on the Consolidated Statement of Earnings and Comprehensive Income (Loss). The following tables reconcile the Company’s cash deposits paid during the period to the amount recorded on the Consolidated Statement of Earnings and Comprehensive Income (Loss): For the three months ended March 31, 2024 Countervailing duty Anti-dumping duty Total $ $ $ Cash deposits paid (1) 2 6 8 Cash deposits paid recognized as receivable — ( 2 ) ( 2 ) 2 4 6 For the three months ended March 31, 2023 Countervailing duty Anti-dumping duty Total $ $ $ Cash deposits paid (1) 3 1 4 Cash deposits paid recognized as receivable ( 1 ) — ( 1 ) 2 1 3 (1) Deposits paid since the acquisition are recorded as contingent assets with a portion recoverable, using a recovery model and undiscounted figures based on management estimates. The following tables outline the change in duties receivable during the three months ended March 31, 2024 and the year ended December 31, 2023: March 31, 2024 Countervailing duty Anti-dumping duty Total $ $ $ Beginning of year 123 36 159 Cash deposits paid recognized as recoverable — 2 2 Accretion 5 1 6 Balance at end of period (1) 128 39 167 December 31, 2023 Countervailing duty Anti-dumping duty Total $ $ $ Beginning of year 104 28 132 Cash deposits paid recognized as recoverable 6 4 10 Accretion 13 4 17 Balance at end of year 123 36 159 (1) The balance of $ 167 million is shown in Other assets in the Consolidated Balance Sheets. FIBREK ACQUISITION Effective July 31, 2012 , the Company completed the final step of the transaction pursuant to which it acquired the remaining 25.40 % of the outstanding Fibrek Inc. shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order by the Quebec Superior Court in Canada (the “Quebec Superior Court”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act. On September 26, 2019, the Quebec Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at C$ 1.99 per share, or $ 23 million (C$ 31 million) in aggregate, plus interest and an additional indemnity, for a total estimated at $ 33 million (C$ 44 million) payable in cash. Of this amount, $ 14 million (C$ 19 million) was payable immediately and paid on October 2, 2019. The Company has appealed the decision, which was reversed by the Court of Appeal in a judgment dated February 2, 2024, fixing the fair value of the shares of the dissenting shareholders at C$ 1.5973 per share, or $ 19 million (C$ 25 million) in aggregate, plus interest and the additional indemnity for a revised total amount of $ 28 million (C$ 38 million), and therefore ordering the Company to pay a balance of $ 15 million (C$ 19 million), which was paid on February 7, 2024. PARTIAL WIND-UPS OF PENSION PLANS On June 12, 2012, the Company filed a motion for directives with the Quebec Superior Court, the court with jurisdiction in the creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA Creditor Protection Proceedings”), seeking an order to prevent pension regulators in each of Quebec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. The Company's position is that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA debtors’ CCAA Plan of Reorganization and Compromise, as amended, and the terms of the Company's emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to $ 111 million ( C$ 150 million), would have to be funded if the Company does not obtain the relief sought. The hearing in this matter was held in March 2024 and the Company is awaiting judgment. SUPERFUND SITE On May 17, 2023, the EPA issued a General Notice of Liability and Demand for Reimbursement of Response Costs Expended at the Barite Hill/Nevada Goldfields Superfund Site (the “Notice of Liability”) to the Company. The Notice of Liability states that the EPA believes that the Company may be liable under Sections 106 and 107(a) of the Comprehensive, Environmental Response, Compensation, and Liability Act (“CERCLA”) for costs the EPA has incurred at the Barite Hill/Nevada Goldfields Superfund Site (the “Site”). The approximate total response costs identified by the EPA in the Notice of Liability through January 19, 2023 was approximately $ 21 million. The Company believes that the EPA may also seek to hold it responsible for future remediation costs at the Site. The Company is currently assessing its defenses to liability at the Site. The Company recognized a provision of $ 15 million, with respect to the EPA’s cause of action for past costs described in the Notice of Liability, as an environmental liability in Other liabilities in the purchase price allocation. See Note 3 “Acquisition of businesses” for more information. The Company is in the process of evaluating the impact of the Notice of Liability and the provision may be adjusted during the measurement period. MENOMINEE FIRE Prior to the Acquisition, on October 6, 2022, a fire in a third-party owned warehouse that the Company leases adjacent to its Menominee recycled pulp mill damaged and, in some cases, destroyed, the warehouse, as well as certain of the Company’s property, plant and equipment and inventories, which resulted in the temporary idling of the mill. The mill was restarted during the first quarter of 2023, operating at a limited capacity. The fire incident resulted in third-party damages in addition to damages to the Company's Menominee mill. At this time, five claims have been filed in Michigan State Court against the Company, including a complaint by the owner of the warehouse alleging damages in an amount in excess of $ 45 million; and a separate complaint filed by a co-tenant in the warehouse and its insurer alleging damages in an amount in excess of $ 132 million. The Company currently does not believe it is probable that it will incur any material uninsured loss related to third party claims, nor could any possible loss contingency be reasonably estimable at the present time. The Company maintains insurance coverage, subject to customary deductibles and limits. Anticipated insurance recoveries related to losses and incremental costs incurred, in excess of the deductible, are recognized when receipt is probable. The anticipated insurance recoveries related to the fire, in excess of the net book value of the damaged operating assets and related to business interruption, will not be recognized until all contingencies related to the claim have been resolved. Prior to the Acquisition, total costs of $ 32 million, net of deductible, were determined probable to be recovered, of which $ 18 million were received. The balance of $ 14 million was recorded under Receivables on the Consolidated Balance Sheet at the Acquisition date. Subsequent to the Acquisition, additional costs of $ 32 million were determined probable to be recovered and insurance recoveries of $ 37 million were received. The balance of $ 9 million of costs determined probable to be recovered was recorded under Receivables on the Consolidated Balance Sheet at March 31, 2024 (2023 – $ 14 million). For the three months ended March 31, 2024, the Company recognized direct costs of $ 1 million (2023 – $ 6 million), which were determined probable to be recovered and recognized an equivalent amount of recovery in reduction of Cost of sales. For the three months ended March 31, 2024, $ 7 million were received from the insurer (2023 – $ 2 million). The Company expects to continue to record additional costs and significant recoveries until the assessment is completed and insurance claims are fully settled. The timing and the amounts of additional insurance recoveries, including for business interruption, are not known at this time. |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOT E 14. _________________ SEGMENT DISCLOSURES The Company operates as three reportable segments as described below, which also represent its three operating segments based on the Company's organizational structure: • Paper and Packaging – consists of the design, manufacturing, marketing and distribution of a wide variety of fiber-based products including communication, specialty and packaging papers as well as fluff and softwood pulp. • Pulp and Tissue – consists of the design, manufacturing, marketing and distribution of a wide variety of fiber-based products including market pulp, tissue and paper. • Wood products – consists of the production of lumber and other wood products for the residential construction and home renovation markets, as well as for specialized structural and industrial applications. The Company evaluates segment performance based on operating income. Certain Corporate general and administrative costs are allocated to each respective segment. Corporate costs that are not related to segment activities are presented on the Corporate and other line. The Company does not allocate interest expense and income taxes to the segment. No segment assets are reported as they are not identifiable by segment. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended March 31, March 31, SEGMENT DATA 2024 2023 $ $ Sales by segment Paper and packaging 1,197 1,357 Pulp and tissue 369 145 Wood products 242 95 Total for reportable segments 1,808 1,597 Intersegment sales ( 22 ) ( 2 ) Consolidated sales 1,786 1,595 Sales by product group Communication papers 662 694 Specialty and packaging papers 291 278 Market pulp 419 452 Linerboard 36 — Newsprint 81 56 Tissue 55 20 Wood 242 95 Consolidated sales 1,786 1,595 Operating income (loss) from continuing operations Paper and packaging 79 137 Pulp and tissue 18 5 Wood products ( 18 ) ( 9 ) Corporate and other ( 20 ) ( 85 ) Consolidated operating income from continuing operations 59 48 Interest expense, net 59 49 Non-service components of net periodic benefit cost ( 5 ) ( 4 ) Earnings before income taxes 5 3 Income tax expense (benefit) 5 ( 56 ) Earnings from continuing operations — 59 Earnings from discontinued operations, net of taxes — 2 Net earnings — 61 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NO TE 15. _________________ RELATED PARTY TRANSACTIONS Following the acquisition of SPI, on June 29, 2023, the purchase price of $ 185 million was financed by the seller, an affiliated company, with the issuance by Domtar of a $ 50 million non-interest bearing promissory note, repaid July 15, 2023; a $ 35 million promissory note bearing interest at 8.50 % per annum, due after June 30, 2031; and non-voting, redeemable Series B preferred shares totaling $ 100 million bearing interest at 9.75 % per annum and redeemable by the seller after June 30, 2031. Prior to the acquisition of Catalyst by Domtar, the $ 35 million promissory note and the non-voting, redeemable Series B were contributed to Catalyst by the seller. Refer to Note 3 “Acquisition of businesses” for details. For the three months ended March 31, 2024, the Company recognized $ 5 million (2023 – $ 7 million) of management fees paid to an affiliated company. These costs are included in the Consolidated Statements of Earnings and Comprehensive Income (Loss) under Selling, general and administrative expense. The Company has other receivables with Paper Excellence and their affiliates of $ 23 million and $ 21 million at March 31, 2024 and December 31, 2023, respectively. The Company has other payables with Paper Excellence and their affiliates of $ 36 million and $ 36 million at March 31, 2024 and December 31, 2023, respectively. In 2023, prior to the acquisition of Catalyst by Domtar, Catalyst converted loans due to an affiliated company to equity for an amount of $ 235 million. In 2023, prior to the acquisition of SPI by Domtar, SPI converted loans due to an affiliated company to equity for an amount of $ 100 million. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | NOTE 16. _________________ SUBSEQUE NT EVENT On April 30, 2024, Domtar Corporation through its wholly-owned subsidiary, Resolute El Dorado Inc., entered into an asset purchase agreement with Anthony Forest Products Company, LLC, an affiliate of Canfor Corporation (the “Purchaser”) to sell the Company’s sawmill located in El Dorado, Arkansas, to the Purchaser for a purchase price of $ 73 million in cash, subject to customary adjustments. This transaction is subject to customary closing conditions. Subject to the satisfaction or waiver of the closing conditions under the asset purchase agreement, this transaction is expected to close in the second half of 2024. The asset purchase agreement contains representations, warranties and covenants that are customary for similar transactions and customary termination rights, including if the closing has not occurred on or prior to September 1, 2024. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) - Future Accounting Changes [Member] | 3 Months Ended |
Mar. 31, 2024 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Segment Reporting | SEGMENT REPORTING On November 27, 2023, the FASB issued ASU 2023-07, “ Improvements to Reportable Segment Disclosures ” which requires incremental disclosures about a public entity’s reportable segments but does not change the definition of a segment or the guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The guidance is effective for calendar year-end public entities in 2024 and should be adopted retrospectively unless impracticable. Early adoption is permitted. The Company is currently assessing the impact of the new guidance which is expected to have a disclosure impact only. |
Income Taxes | INCOME TAXES DISCLOSURE On December 14, 2023, the FASB issued ASU 2023-09, “ Improvements to Income Tax Disclosures ” which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. The Company is currently assessing the impact of the new guidance which is expected to have a disclosure impact only. |
Acquisition of Businesses (Tabl
Acquisition of Businesses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Acquisition [Line Items] | |
Schedule of Unaudited Pro Forma Consolidated Statements of Earnings and Comprehensive Income (Loss) | The following represents the unaudited pro forma Consolidated Statements of Earnings and Comprehensive Income (Loss) if Resolute had been included in the Company’s consolidated results for the three months ended March 31, 2023: For the March 31, 2023 (Unaudited) $ Sales 2,043 Net earnings 132 |
Catalyst Paper Corporation [Member] | |
Business Acquisition [Line Items] | |
Schedule of Retrospective Effects of Change Resulting from Combination of Catalyst and SPI | The retrospective effects of the change resulting from the combination of Catalyst to the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) were as follows: For the March 31, 2023 $ Sales 173 Operating loss ( 41 ) Net loss ( 45 ) Other comprehensive loss ( 1 ) |
Skookumchuck Pulp Inc [Member] | |
Business Acquisition [Line Items] | |
Schedule of Retrospective Effects of Change Resulting from Combination of Catalyst and SPI | The retrospective effects of the change resulting from the combination of SPI to the Company’s Consolidated Statements of Earnings and Comprehensive Income (Loss) were as follows: For the March 31, 2023 $ Sales 59 Operating income 10 Net earnings 86 Other comprehensive income 1 |
Resolute Forest Products Inc [Member] | |
Business Acquisition [Line Items] | |
Schedule of Assets Acquired and Liabilities Assumed | Fair value of net assets acquired at the date of acquisition Receivables $ 309 Inventories 508 Prepaid expenses 30 Other current assets 12 Property, plant and equipment 952 Operating lease right-of-use assets 38 Deferred income tax assets (1) 737 Other assets (2) 264 Assets held for sale 255 Total assets 3,105 Less: Assumed Liabilities Trade and other payables 538 Operating lease liabilities (including short-term portion) 40 Long-term debt (including short-term portion) 312 Pension and other post-retirement liabilities 643 Other liabilities 90 Liabilities held for sale 41 Total liabilities 1,664 Fair value of net assets acquired at the date of acquisition 1,441 Gain on acquisition (3) ( 225 ) Consideration transferred, less cash acquired 1,216 (1) The Company recognized previously unrecognized deferred tax assets related to operating losses carried forward in the United States and research and development pools and credits in Canada. In addition, deferred tax assets related to timing difference mainly related to pension and other post-retirement benefits, asset retirement obligations and environmental liabilities. Management determines the recoverability of the net deferred tax assets based on a review of all available negative and positive evidence, including historical earnings, projected future results, future reversals of deferred tax liabilities, impact of the tax regulations and available tax planning opportunities. (2) The Company identified $ 74 million of off-market contracts, of which $ 21 million are being amortized over a weighted-average useful life of 11 years. Other assets also include $ 132 million of duty deposits and $ 25 million of equity method investments. (3) The purchase price allocation reflects a gain of $ 225 million recorded under Other operating income , net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). The gain resulted from the recognition and measurement of items, principally related to deferred income tax assets, in accordance with exemptions to the fair value model as provided for by US GAAP under the accounting for business combination. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Major components of earnings from discontinued operations: For the three months ended March 31, 2023 $ Sales 26 Operating expenses Cost of sales, excluding depreciation and amortization 22 Other operating loss, net 1 23 Operating income 3 Net gain on disposition of discontinued operations — Earnings from discontinued operations before 3 Income tax expense 1 Net earnings from discontinued operations 2 Cash Flows from Discontinued Operations: For the three months ended March 31, 2023 $ Cash flows from operating activities 1 Cash flows used for investing activities ( 1 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Financial Instruments | The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) and (c) below) at March 31, 2024 and December 31, 2023, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2024 Quoted prices in Significant Significant Balance sheet classification $ $ $ $ Derivatives designated as Asset derivatives Currency derivatives 3 — 3 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 1 — 1 — (a) Other assets Total Assets 5 — 5 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 6 — 6 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other liabilities and deferred Total Liabilities 12 — 12 — Other Instruments: Long-term debt due 67 — 67 — (b) Long-term debt due within Long-term debt 2,246 — 2,246 — (c) Long-term debt Fair Value of financial instruments at: December 31, 2023 Quoted prices in Significant Significant Balance sheet classification $ $ $ $ Derivatives designated as Asset derivatives Currency derivatives 9 — 9 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 15 — 15 — Liabilities derivatives Currency derivatives 2 — 2 — (a) Trade and other payables Natural gas swap contracts 5 — 5 — (a) Trade and other payables Total Liabilities 7 — 7 — Other Instruments: Long-term debt due within 67 — 67 — (b) Long-term debt due within Long-term debt 2,234 — 2,234 — (c) Long-term debt (a) Fair values of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Foreign currency forward and option contracts are valued using standard valuation models. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 . The carrying value of the Company’s long-term debt due within one year is $ 67 million at both March 31, 2024 and December 31, 2023. (c) The carrying value of the Company’s long-term debt is $ 2,415 million and $ 2,410 million at March 31, 2024 and December 31, 2023 , respectively. |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2024 Pension plans Other post-retirement benefit plans $ $ Service cost 5 — Interest expense 51 1 Expected return on plan assets ( 57 ) — Net periodic benefit cost ( 1 ) 1 For the three months ended March 31, 2023 Pension plans Other post-retirement benefit plans $ $ Service cost 4 — Interest expense 27 1 Expected return on plan assets ( 31 ) — Amortization of net actuarial gain — ( 1 ) Net periodic benefit cost — — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: March 31, December 31, 2024 2023 $ $ Work in process and finished goods 695 672 Raw materials 314 328 Operating and maintenance supplies 347 337 1,356 1,337 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets: March 31, December 31, 2024 2023 $ $ Pension asset - defined benefit pension plans 223 225 Countervailing duty and anti-dumping duty cash deposits on softwood lumber 167 159 Off-market contracts 73 72 Other 76 85 539 541 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | The following table presents the changes in Accumulated other comprehensive loss by component (1) for the three months ended March 31, 2024 and the year ended December 31, 2023: Net derivative Pension items (2) Post-retirement (2) Foreign currency Total $ $ $ $ $ Balance at December 31, 2022 ( 12 ) ( 5 ) 36 ( 41 ) ( 22 ) Natural gas swap contracts ( 9 ) N/A N/A N/A ( 9 ) Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 9 N/A N/A N/A 9 Net loss N/A ( 69 ) ( 3 ) N/A ( 72 ) Foreign currency items N/A N/A N/A 34 34 Other comprehensive income (loss) 1 ( 69 ) ( 3 ) 34 ( 37 ) Amounts reclassified from Accumulated 16 2 ( 3 ) — 15 Net current period other comprehensive 17 ( 67 ) ( 6 ) 34 ( 22 ) Balance at December 31, 2023 5 ( 72 ) 30 ( 7 ) ( 44 ) Natural gas swap contracts ( 4 ) N/A N/A N/A ( 4 ) Currency options ( 1 ) N/A N/A N/A ( 1 ) Foreign exchange forward contracts ( 9 ) N/A N/A N/A ( 9 ) Net loss N/A — — N/A — Foreign currency items N/A N/A N/A ( 26 ) ( 26 ) Other comprehensive loss ( 14 ) — — ( 26 ) ( 40 ) Amounts reclassified from Accumulated 3 — — — 3 Net current period other comprehensive ( 11 ) — — ( 26 ) ( 37 ) Balance at March 31, 2024 ( 6 ) ( 72 ) 30 ( 33 ) ( 81 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following tables present reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amounts reclassified from For the three months ended March 31, March 31, 2024 2023 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) ( 3 ) ( 7 ) Currency options and forwards (1) ( 1 ) ( 4 ) Total before tax ( 4 ) ( 11 ) Tax benefit 1 3 Net of tax ( 3 ) ( 8 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) — 1 Total before tax — 1 Tax expense — — Net of tax — 1 (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (2) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension plans and other post-retirement benefit plans” for more details). |
Other Liabilities and Deferre_2
Other Liabilities and Deferred Credits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities and Deferred Credits | The following table presents the components of other liabilities and deferred credits : March 31, December 31, 2024 2023 $ $ Provision for environmental and asset retirement obligations 110 111 Contingent consideration for contingent value right 138 133 Other 61 62 309 306 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Environmental Remediation Obligations [Abstract] | |
Cash Deposit Rates on Account of Countervailing and Anti-dumping Duties | The cash deposit rates on account of countervailing and anti-dumping duties paid for the Company’s subject imports of Canadian-origin softwood lumber products into the United States are as follows: Effective dates for deposits on account of countervailing duties Cash deposit rates Initial Investigation April 28 2017 – November 7, 2017 (Preliminary Determination) 12.82 % November 8, 2017 – November 30, 2020 (Final Determination) 14.70 % First Administrative Review December 1, 2020 – December 1, 2021 19.10 % Second Administrative Review December 2, 2021 – August 8, 2022 18.07 % Third Administrative Review August 9, 2022 – July 31, 2023 10.10 % Fourth Administrative Review August 1, 2023 – Present 1.79 % Effective dates for deposits on account of anti-dumping duties Cash deposit rates Initial Investigation June 30, 2017 – November 7, 2017 (Preliminary Determination) 4.59 % November 8, 2017 – November 29, 2020 (Final Determination) 3.20 % First Administrative Review November 30, 2020 – December 1, 2021 1.15 % Second Administrative Review December 2, 2021 – August 8, 2022 11.59 % Third Administrative Review August 9, 2022 – July 31, 2023 4.76 % Fourth Administrative Review August 1, 2023 – September 6, 2023 6.20 % September 7, 2023 – Present 6.26 % |
Schedule of Cash Deposits Paid of Countervailing and Anti-dumping Duties | The following tables reconcile the Company’s cash deposits paid during the period to the amount recorded on the Consolidated Statement of Earnings and Comprehensive Income (Loss): For the three months ended March 31, 2024 Countervailing duty Anti-dumping duty Total $ $ $ Cash deposits paid (1) 2 6 8 Cash deposits paid recognized as receivable — ( 2 ) ( 2 ) 2 4 6 For the three months ended March 31, 2023 Countervailing duty Anti-dumping duty Total $ $ $ Cash deposits paid (1) 3 1 4 Cash deposits paid recognized as receivable ( 1 ) — ( 1 ) 2 1 3 (1) Deposits paid since the acquisition are recorded as contingent assets with a portion recoverable, using a recovery model and undiscounted figures based on management estimates. |
Schedule of Change in Duties Receivable of Countervailing and Anti-dumping Duties | The following tables outline the change in duties receivable during the three months ended March 31, 2024 and the year ended December 31, 2023: March 31, 2024 Countervailing duty Anti-dumping duty Total $ $ $ Beginning of year 123 36 159 Cash deposits paid recognized as recoverable — 2 2 Accretion 5 1 6 Balance at end of period (1) 128 39 167 December 31, 2023 Countervailing duty Anti-dumping duty Total $ $ $ Beginning of year 104 28 132 Cash deposits paid recognized as recoverable 6 4 10 Accretion 13 4 17 Balance at end of year 123 36 159 (1) The balance of $ 167 million is shown in Other assets in the Consolidated Balance Sheets. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Analysis and Reconciliation of Reportable Segment Information | An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended March 31, March 31, SEGMENT DATA 2024 2023 $ $ Sales by segment Paper and packaging 1,197 1,357 Pulp and tissue 369 145 Wood products 242 95 Total for reportable segments 1,808 1,597 Intersegment sales ( 22 ) ( 2 ) Consolidated sales 1,786 1,595 Sales by product group Communication papers 662 694 Specialty and packaging papers 291 278 Market pulp 419 452 Linerboard 36 — Newsprint 81 56 Tissue 55 20 Wood 242 95 Consolidated sales 1,786 1,595 Operating income (loss) from continuing operations Paper and packaging 79 137 Pulp and tissue 18 5 Wood products ( 18 ) ( 9 ) Corporate and other ( 20 ) ( 85 ) Consolidated operating income from continuing operations 59 48 Interest expense, net 59 49 Non-service components of net periodic benefit cost ( 5 ) ( 4 ) Earnings before income taxes 5 3 Income tax expense (benefit) 5 ( 56 ) Earnings from continuing operations — 59 Earnings from discontinued operations, net of taxes — 2 Net earnings — 61 |
Acquisition of Businesses - Add
Acquisition of Businesses - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Oct. 27, 2023 | Jun. 29, 2023 | Jun. 28, 2023 | Mar. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |||
Business Acquisition [Line Items] | |||||||||
Capital contribution | $ 600,000,000 | ||||||||
Transaction related costs | [1] | 56,000,000 | |||||||
Amount of sales | $ 1,786,000,000 | 1,595,000,000 | [1] | ||||||
Net income (loss) | $ 0 | 61,000,000 | [1] | ||||||
Catalyst Paper Corporation [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 1 | ||||||||
Capital contribution | $ 727,000,000 | ||||||||
Amount of sales | 173,000,000 | ||||||||
Net income (loss) | (45,000,000) | ||||||||
Skookumchuck Pulp Inc [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 185,000,000 | ||||||||
Deemed dividend | 55,000,000 | ||||||||
Carrying value of net assets transferred | 130,000,000 | ||||||||
Amount of sales | 59,000,000 | ||||||||
Net income (loss) | 86,000,000 | ||||||||
Skookumchuck Pulp Inc [Member] | Redeemable Series B Preferred Stock [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 100,000,000 | ||||||||
Bearing interest rate, Percentage | 9.75% | ||||||||
Skookumchuck Pulp Inc [Member] | Non-interest Bearing Promissory Note Due July 15, 2023 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 50,000,000 | ||||||||
Skookumchuck Pulp Inc [Member] | Promissory Note Bearing Interest At 8.50% Due After June 30 2031 [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 35,000,000 | ||||||||
Bearing interest rate, Percentage | 8.50% | ||||||||
Skookumchuck Pulp Inc [Member] | Promissory Note and Non-voting, Redeemable Series B [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | $ 35,000,000 | ||||||||
Forest Products Inc [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Business Acquisition, Share Price | $ 20.5 | ||||||||
Potential duty deposit refunds | $ 500,000,000 | ||||||||
Fair value of contingent consideration of aquisition | 118,000,000 | ||||||||
Consideration transferred | 1,696,000,000 | ||||||||
Cash Acquired | 480,000,000 | ||||||||
Contingent value right on softwood lumber duty deposit refunds | $ 118,000,000 | ||||||||
Transaction related costs | $ 53,000,000 | ||||||||
Amount of sales | $ 240,000,000 | ||||||||
Net income (loss) | $ (22,000,000) | ||||||||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Acquisition of Businesses - Sch
Acquisition of Businesses - Schedule of Retrospective Effects on Consolidated Statements of Earnings and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | ||
Business Acquisition [Line Items] | ||||
Sales | $ 1,786 | $ 1,595 | [1] | |
Operating loss | 59 | 48 | [1] | |
Net earnings | 0 | 61 | [1] | |
Other comprehensive income (loss) | $ (37) | 3 | [1] | $ (22) |
Catalyst Paper Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Sales | 173 | |||
Operating loss | (41) | |||
Net earnings | (45) | |||
Other comprehensive income (loss) | (1) | |||
Skookumchuck Pulp Inc [Member] | ||||
Business Acquisition [Line Items] | ||||
Sales | 59 | |||
Operating loss | 10 | |||
Net earnings | 86 | |||
Other comprehensive income (loss) | $ 1 | |||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Acquisition of Businesses - S_2
Acquisition of Businesses - Schedule of Assets Acquired and Liabilities Assumed (Detail) - Resolute Forest Products Inc [Member] $ in Millions | Mar. 01, 2023 USD ($) | |
Business Acquisition [Line Items] | ||
Receivables | $ 309 | |
Inventories | 508 | |
Prepaid expenses | 30 | |
Other current assets | 12 | |
Property, plant and equipment | 952 | |
Operating lease right-of-use assets | 38 | |
Deferred income tax assets | 737 | [1] |
Other assets | 264 | [2] |
Assets held for sale | 255 | |
Total assets | 3,105 | |
Less: Assumed Liabilities | ||
Trade and other payables | 538 | |
Operating lease liabilities (including short-term portion) | 40 | |
Long-term debt (including short-term portion) | 312 | |
Pension and other post-retirement benefit liabilities | 643 | |
Other liabilities | 90 | |
Liabilities held for sale | 41 | |
Total liabilities | 1,664 | |
Fair value of net assets acquired at the date of acquisition | 1,441 | |
Gain on acquisition | (225) | [3] |
Consideration transferred, less cash acquired | $ 1,216 | |
[1] The Company recognized previously unrecognized deferred tax assets related to operating losses carried forward in the United States and research and development pools and credits in Canada. In addition, deferred tax assets related to timing difference mainly related to pension and other post-retirement benefits, asset retirement obligations and environmental liabilities. Management determines the recoverability of the net deferred tax assets based on a review of all available negative and positive evidence, including historical earnings, projected future results, future reversals of deferred tax liabilities, impact of the tax regulations and available tax planning opportunities. The Company identified $ 74 million of off-market contracts, of which $ 21 million are being amortized over a weighted-average useful life of 11 years. Other assets also include $ 132 million of duty deposits and $ 25 million of equity method investments. The purchase price allocation reflects a gain of $ 225 million recorded under Other operating income , net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). The gain resulted from the recognition and measurement of items, principally related to deferred income tax assets, in accordance with exemptions to the fair value model as provided for by US GAAP under the accounting for business combination. |
Acquisition of Businesses - S_3
Acquisition of Businesses - Schedule of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) - Resolute Forest Products Inc [Member] $ in Millions | Mar. 01, 2023 USD ($) |
Business Acquisition [Line Items] | |
Duty deposits | $ 132 |
Equity method investments | 25 |
Gain on purchase price allocation | $ 225 |
Business Combination, Bargain Purchase, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income Expense Net |
Off-Market Contracts [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 74 |
Finite-lived intangible assets subject to amortization | $ 21 |
Weighted-average useful life | 11 years |
Acquisition of Businesses - S_4
Acquisition of Businesses - Schedule of Unaudited Pro Forma Consolidated Statements of Earnings and Comprehensive Income (Loss) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Combinations [Abstract] | |
Sales | $ 2,043 |
Net earnings | $ 132 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Aug. 01, 2023 USD ($) Purchaser Mills | Mar. 31, 2023 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Number of mills sold | Mills | 2 | |
Number of independent purchasers | Purchaser | 2 | |
Sale of Mill and Related Assets | Dryden, Ontario Mill | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Transaction costs | $ 3 | |
Purchase price | $ 186 | |
Sale of Mill and Related Assets | Thunder Bay Pulp And Paper Mill | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Purchase price | $ 231 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Earnings from Discontinued Operations (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | ||
Sales | $ 26 | |
Operating expenses | ||
Cost of sales, excluding depreciation and amortization | 22 | |
Other operating loss, net | 1 | |
Operating expenses | 23 | |
Operating income | 3 | |
Earnings from discontinued operations before income taxes | 3 | |
Income tax expense | 1 | |
Net earnings from discontinued operations | $ 2 | [1] |
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Net Cash Provided By Used In Discontinued Operations [Abstract] | |
Cash flows from operating activities | $ 1 |
Cash flows used for investing activities | $ (1) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) - Customer | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Number of major customers | 0 | 0 |
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | ||
Derivative [Line Items] | ||
Length of time current hedges cover | 22 months | |
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Length of time current hedges cover | 10 months |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Total Assets | $ 5 | $ 15 |
Total Liabilities | 12 | 7 |
Long-term debt | 2,246 | 2,234 |
Long Term Debt Due Within One Year | ||
Derivative [Line Items] | ||
Long-term debt | 67 | 67 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 3 | 9 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 2 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 4 |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 1 |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 6 | 5 |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative [Line Items] | ||
Total Assets | 5 | 15 |
Total Liabilities | 12 | 7 |
Long-term debt | 2,246 | 2,234 |
Fair Value, Inputs, Level 2 [Member] | Long Term Debt Due Within One Year | ||
Derivative [Line Items] | ||
Long-term debt | 67 | 67 |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 3 | 9 |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 2 |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Fair Value, Inputs, Level 2 [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 4 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 1 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 6 | 5 |
Fair Value, Inputs, Level 2 [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | $ 1 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Less: Due within one year | $ 67 | $ 67 |
The carrying value of the Company's long-term debt | 2,415 | 2,410 |
Long Term Debt Due Within One Year [Member] | ||
Derivative [Line Items] | ||
Less: Due within one year | $ 67 | $ 67 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 01, 2023 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension expense | $ 16 | $ 15 | ||
Defined contribution plan, expected contribution amount, remainder of year | 44 | |||
Pension and post-retirement benefit plans, assets | 223 | $ 225 | ||
Pension Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | 25 | 7 | ||
Defined benefit plan, expected cash contributions, remainder of year | 64 | |||
Other Post-Retirement Benefit Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | 3 | $ 3 | ||
Defined benefit plan, expected cash contributions, remainder of year | $ 12 | |||
Forest Products Inc [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension and post-retirement benefit plans, assets | $ 19 | |||
Pension and post-retirement benefit plans, liabilities | 656 | |||
Fair value of pension fund assets | 3,029 | |||
Fair value of pension fund liabilities | $ 3,666 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5 | $ 4 |
Interest expense | 51 | 27 |
Expected return on plan assets | (57) | $ (31) |
Net periodic benefit cost | $ (1) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component | Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest expense | $ 1 | $ 1 |
Amortization of net actuarial gain | $ (1) | |
Net periodic benefit cost | $ 1 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component | Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense | $ 5 | $ (56) | [1] |
Current income tax expense (benefit) | 2 | 11 | |
Deferred income tax expense (benefit) | 3 | (67) | |
Tax payments, net of tax refunds | $ 8 | $ (50) | [2] |
Effective income tax rate | 100% | (1867.00%) | |
Effective minimum tax rate | 15% | ||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 695 | $ 672 |
Raw materials | 314 | 328 |
Operating and maintenance supplies | 347 | 337 |
Total inventories | $ 1,356 | $ 1,337 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pension asset - defined benefit pension plans | $ 223 | $ 225 |
Countervailing duty and Anti-dumping duty cash deposits on softwood lumber | 167 | 159 |
Off-market contracts | 73 | 72 |
Other | 76 | 85 |
Other assets, noncurrent | $ 539 | $ 541 |
Closure and Restructuring, Im_2
Closure and Restructuring, Impairment of Long-Lived Assets and Assets Conversion Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||
Feb. 21, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |||
Restructuring Cost And Reserve [Line Items] | |||||
Write-off of property, plant and equipment | [1] | $ 19 | |||
Closure and restructuring costs (NOTE 10) | $ 11 | 7 | [1] | ||
Asset conversion costs (NOTE 10) | [1] | 30 | |||
Other Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Severance and termination costs | 1 | 0 | |||
Other cost | 4 | 0 | |||
Catalyst Restructuring And Impairment Costs [Member] | Catalyst British Columbia Mills [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accelerated depreciation | 4 | ||||
Write-off of property, plant and equipment | 19 | ||||
Severance and termination costs | 3 | 7 | |||
Write-off inventory | 2 | 0 | |||
Ashdown Curtailment, Arkansas Mill [Member] | Curtailment, Arkansas Mill [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Accelerated depreciation | 6 | ||||
Other cost | $ 1 | ||||
Closure and restructuring costs (NOTE 10) | 32 | ||||
Non cash accelerated depreciation | $ 31 | ||||
Idling of Espanola, Ontario mill [Member] | Espanola, Ontario mill [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Other cost | $ 1 | ||||
Conversion Of Kingsport Tennessee Mill | Kingsport Tennessee Mill [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Asset conversion costs (NOTE 10) | $ 30 | ||||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ (44) | ||||
Balance | 2,575 | $ 1,576 | $ 1,576 | ||
Other comprehensive income (loss) before reclassifications | (40) | (37) | |||
Amounts reclassified from Accumulated other comprehensive loss | 3 | 15 | |||
Other comprehensive (loss) income | (37) | 3 | [1] | (22) | |
Ending balance | (81) | (44) | |||
Balance | 2,538 | 2,240 | 2,575 | ||
Natural Gas Swap Contracts | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (4) | (9) | |||
Foreign Exchange Forward Contracts | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (9) | 9 | |||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (26) | 34 | |||
Currency Options | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (1) | 1 | |||
Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (72) | ||||
Net Derivative (Losses) Gains on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 5 | (12) | (12) | ||
Other comprehensive income (loss) before reclassifications | (14) | 1 | |||
Amounts reclassified from Accumulated other comprehensive loss | 3 | 16 | |||
Other comprehensive (loss) income | (11) | 17 | |||
Ending balance | (6) | 5 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges | Natural Gas Swap Contracts | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (4) | (9) | |||
Net Derivative (Losses) Gains on Cash Flow Hedges | Foreign Exchange Forward Contracts | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (9) | 9 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges | Currency Options | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (1) | 1 | |||
Accumulated Defined Benefit Plans Adjustment | Pension Plans | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | [2] | (72) | (5) | (5) | |
Other comprehensive income (loss) before reclassifications | [2] | (69) | |||
Amounts reclassified from Accumulated other comprehensive loss | [2] | 2 | |||
Other comprehensive (loss) income | [2] | (67) | |||
Ending balance | [2] | (72) | (72) | ||
Accumulated Defined Benefit Plans Adjustment | Pension Plans | Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | [2] | (69) | |||
Accumulated Defined Benefit Plans Adjustment | Other Post-Retirement Benefit Plans | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | [2] | 30 | 36 | 36 | |
Other comprehensive income (loss) before reclassifications | [2] | (3) | |||
Amounts reclassified from Accumulated other comprehensive loss | [2] | (3) | |||
Other comprehensive (loss) income | [2] | (6) | |||
Ending balance | [2] | 30 | 30 | ||
Accumulated Defined Benefit Plans Adjustment | Other Post-Retirement Benefit Plans | Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | [2] | (3) | |||
Foreign Currency Items | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (7) | (41) | (41) | ||
Other comprehensive income (loss) before reclassifications | (26) | 34 | |||
Other comprehensive (loss) income | (26) | 34 | |||
Ending balance | (33) | (7) | |||
Foreign Currency Items | Foreign Currency Items | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (26) | 34 | |||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (44) | (22) | (22) | ||
Balance | $ (81) | $ (19) | $ (44) | ||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). The projected benefit obligation is actuarially determined on an annual basis as of December 31. |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings before income taxes | $ 5 | $ 3 | [1] | |
Tax benefit | (5) | 56 | [1] | |
Net (loss) earnings | 0 | 61 | [1] | |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Net Derivative (Losses) gains on Cash Flow Hedge | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings before income taxes | (4) | (11) | ||
Tax benefit | 1 | 3 | ||
Net (loss) earnings | (3) | (8) | ||
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Net Derivative (Losses) gains on Cash Flow Hedge | Natural Gas Swap Contracts | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | [2] | (3) | (7) | |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Net Derivative (Losses) gains on Cash Flow Hedge | Currency Options and Forwards | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | [2] | $ (1) | (4) | |
Reclassification Out of Accumulated Other Comprehensive (Loss) Income | Other Post-Retirement Benefit Plans | Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings before income taxes | 1 | |||
Net (loss) earnings | 1 | |||
Amortization of net actuarial gain | [3] | $ 1 | ||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension plans and other post-retirement benefit plans” for more details). |
Other Liabilities and Deferre_3
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Provision for environmental and asset retirement obligations | $ 110 | $ 111 |
Contingent consideration for contingent value right | 138 | 133 |
Other | 61 | 62 |
Other liabilites and deferred credits | $ 309 | $ 306 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Feb. 07, 2024 USD ($) | Feb. 07, 2024 CAD ($) | Feb. 02, 2024 USD ($) | Feb. 02, 2024 CAD ($) | Jan. 31, 2024 | May 23, 2023 | Mar. 01, 2023 USD ($) | Oct. 06, 2022 USD ($) | Oct. 02, 2019 USD ($) | Oct. 02, 2019 CAD ($) | Jul. 31, 2012 | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2024 CAD ($) | Feb. 02, 2024 CAD ($) $ / shares | May 17, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 26, 2019 USD ($) | Sep. 26, 2019 CAD ($) $ / shares | ||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Environmental liabilities | $ 62,000,000 | $ 64,000,000 | |||||||||||||||||||
Asset retirement obligations | 60,000,000 | 60,000,000 | |||||||||||||||||||
Countervailing duty and Anti-dumping duty cash deposits on softwood lumber paid | $ 563,000,000 | 610,000,000 | |||||||||||||||||||
Surety bonds outstanding | 110,000,000 | ||||||||||||||||||||
Partial wind-up deficit within plans | 111,000,000 | $ 150 | |||||||||||||||||||
Additional costs of recoveries received | 6,000,000 | 17,000,000 | |||||||||||||||||||
Loss contingency, amount receivable | 167,000,000 | [1] | 159,000,000 | $ 132,000,000 | |||||||||||||||||
Fibrek Inc. [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Effective date of acquisition | Jul. 31, 2012 | ||||||||||||||||||||
Business acquisition remaining percentage of voting interest acquired | 25.40% | ||||||||||||||||||||
Fair value of dissenting shareholders value per share | $ / shares | $ 1.5973 | $ 1.99 | |||||||||||||||||||
Aggregate fair value of dissenting shareholders | $ 19,000,000 | $ 25 | $ 23,000,000 | $ 31 | |||||||||||||||||
Agreegate estimated fair value plus interest and additional indemnity payable in cash | $ 33,000,000 | $ 44 | |||||||||||||||||||
Amount paid to dissenting shareholders | $ 15,000,000 | $ 19 | $ 14,000,000 | $ 19 | |||||||||||||||||
Amount revised to dissenting shareholders | $ 28,000,000 | $ 38 | |||||||||||||||||||
Countervailing Duties [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Percentage of estimated final determination countervailing duty rate on certain Canadian softwood lumber imported to the US market | 6.71% | ||||||||||||||||||||
Accumulated cash deposits paid | 443,000,000 | 467,000,000 | |||||||||||||||||||
Additional costs of recoveries received | 5,000,000 | 13,000,000 | |||||||||||||||||||
Loss contingency, amount receivable | 128,000,000 | [1] | 123,000,000 | 104,000,000 | |||||||||||||||||
Anti-dumping Duties [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Accumulated cash deposits paid | $ 120,000,000 | 143,000,000 | |||||||||||||||||||
Percentage of estimated final determination anti dumping rate on certain Canadian softwood lumber imported to the US market | 7.15% | ||||||||||||||||||||
Additional costs of recoveries received | 1,000,000 | 4,000,000 | |||||||||||||||||||
Loss contingency, amount receivable | 39,000,000 | [1] | 36,000,000 | $ 28,000,000 | |||||||||||||||||
Pension Plans [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Provision for liability | 0 | ||||||||||||||||||||
Indemnification Guarantee [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Provision for liability | 0 | ||||||||||||||||||||
Standby Letters of Credit [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Surety bonds outstanding | 62,000,000 | ||||||||||||||||||||
Insurance Claims [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Loss contingency, costs amount probable to be recovered | $ 32,000,000 | 32,000,000 | |||||||||||||||||||
Loss contingency, amount recovered | 18,000,000 | 7,000,000 | $ 2,000,000 | ||||||||||||||||||
Loss contingency, amount receivable | $ 14,000,000 | 9,000,000 | $ 14,000,000 | ||||||||||||||||||
Loss contingency, direct costs recognized | 1,000,000 | $ 6,000,000 | |||||||||||||||||||
Insurance Claims [Member] | Owner [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Amount of excess warehouse damage | 45,000,000 | ||||||||||||||||||||
Insurance Claims [Member] | Co-tenant [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Amount of excess warehouse damage | 132,000,000 | ||||||||||||||||||||
Insurance Claims Subsequent to Acquisition [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Loss contingency, amount recovered | 37,000,000 | ||||||||||||||||||||
Climate Change and Air Quality Regulations [Member] | Affordable Clean Energy [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Percentage of operating limit on retirement year | 20% | ||||||||||||||||||||
Superfund Site [Member] | Environmental Protection Agency [Member] | |||||||||||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||||||||||
Provision for liability | $ 15,000,000 | ||||||||||||||||||||
Approximate total response costs identified in the notice of liability | $ 21,000,000 | ||||||||||||||||||||
[1] The balance of $ 167 million is shown in Other assets in the Consolidated Balance Sheets. |
Commitments and Contingencies_2
Commitments and Contingencies - Cash Deposit Rates on Account of Countervailing and Anti-dumping Duties (Details) | 1 Months Ended | 4 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 12 Months Ended | 37 Months Ended | |||
Sep. 06, 2023 | Nov. 07, 2017 | Nov. 07, 2017 | Mar. 31, 2024 | Mar. 31, 2024 | Aug. 08, 2022 | Jul. 31, 2023 | Dec. 01, 2021 | Nov. 30, 2020 | Nov. 29, 2020 | |
Countervailing Duties [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Percentage of preliminary determination countervailing duty rate on certain canadian softwood lumber imported to the US market | 12.82% | |||||||||
Percentage of final determination countervailing duty rate on certain canadian softwood lumber imported to the US market | 1.79% | 18.07% | 10.10% | 19.10% | 14.70% | |||||
Anti-dumping Duties [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Percentage of preliminary determination anti dumping rate on certain canadian softwood lumber imported to the us market | 4.59% | |||||||||
Percentage of final determination anti dumping rate on certain canadian softwood lumber imported to the US market | 6.20% | 6.26% | 11.59% | 4.76% | 1.15% | 3.20% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Cash Deposits Paid of Countervailing and Anti-dumping Duties (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Commitments And Contingencies [Line Items] | |||
Cash deposits paid | [1] | $ 8 | $ 4 |
Cash deposits paid recognized as receivable | (2) | (1) | |
Cash deposits | 6 | 3 | |
Countervailing Duties [Member] | |||
Commitments And Contingencies [Line Items] | |||
Cash deposits paid | [1] | 2 | 3 |
Cash deposits paid recognized as receivable | (1) | ||
Cash deposits | 2 | 2 | |
Anti-dumping Duties [Member] | |||
Commitments And Contingencies [Line Items] | |||
Cash deposits paid | [1] | 6 | 1 |
Cash deposits paid recognized as receivable | (2) | ||
Cash deposits | $ 4 | $ 1 | |
[1] Deposits paid since the acquisition are recorded as contingent assets with a portion recoverable, using a recovery model and undiscounted figures based on management estimates. |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Change in Duties Receivable of Countervailing and Anti-dumping Duties (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
Commitments And Contingencies [Line Items] | |||
Beginning of year | $ 159 | $ 132 | |
Cash deposits paid recognized as recoverable | 2 | 10 | |
Accretion | 6 | 17 | |
Balance at end of year | 167 | [1] | 159 |
Countervailing Duties [Member] | |||
Commitments And Contingencies [Line Items] | |||
Beginning of year | 123 | 104 | |
Cash deposits paid recognized as recoverable | 6 | ||
Accretion | 5 | 13 | |
Balance at end of year | 128 | [1] | 123 |
Anti-dumping Duties [Member] | |||
Commitments And Contingencies [Line Items] | |||
Beginning of year | 36 | 28 | |
Cash deposits paid recognized as recoverable | 2 | 4 | |
Accretion | 1 | 4 | |
Balance at end of year | $ 39 | [1] | $ 36 |
[1] The balance of $ 167 million is shown in Other assets in the Consolidated Balance Sheets. |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Change in Duties Receivable of Countervailing and Anti-dumping Duties (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | ||||
Amount of duties receivable | $ 167 | [1] | $ 159 | $ 132 |
Other Assets [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Amount of duties receivable | $ 167 | $ 167 | ||
[1] The balance of $ 167 million is shown in Other assets in the Consolidated Balance Sheets. |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2024 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of operating segments | 3 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,786 | $ 1,595 | [1] | |
Consolidated operating income from continuing operations | 59 | 48 | [1] | |
Interest expense, net | 59 | 49 | [1] | |
Non-service components of net periodic benefit cost | (5) | (4) | [1] | |
Earnings before income taxes | 5 | 3 | [1] | |
Income tax expense (benefit) | 5 | (56) | [1] | |
Earnings from continuing operations | 0 | 59 | [1] | |
Earnings from discontinued operations, net of taxes | [1] | 2 | ||
Net earnings | 0 | 61 | [1] | |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,808 | 1,597 | ||
Operating Segments [Member] | Communication Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 662 | 694 | ||
Operating Segments [Member] | Specialty and Packaging Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 291 | 278 | ||
Operating Segments [Member] | Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 419 | 452 | ||
Operating Segments [Member] | Linerboard [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 36 | |||
Operating Segments [Member] | Newsprint [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 81 | 56 | ||
Operating Segments [Member] | Tissue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 55 | 20 | ||
Operating Segments [Member] | Wood [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 242 | 95 | ||
Operating Segments [Member] | Paper And Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,197 | 1,357 | ||
Consolidated operating income from continuing operations | 79 | 137 | ||
Operating Segments [Member] | Pulp and Tissue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 369 | 145 | ||
Consolidated operating income from continuing operations | 18 | 5 | ||
Operating Segments [Member] | Wood Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 242 | 95 | ||
Consolidated operating income from continuing operations | (18) | (9) | ||
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (22) | (2) | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated operating income from continuing operations | $ (20) | $ (85) | ||
[1] Adjusted to reflect the retrospective combination of the Company with Skookumchuck Pulp Inc. and Catalyst Paper Corporation, as if the combination had been in effect since the inception of common control on November 30, 2021 (refer to Note 3 “Acquisition of businesses”). |
Related Party Transactions Addi
Related Party Transactions Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Oct. 26, 2023 | Jun. 29, 2023 | Jun. 28, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||||
Management fees | $ 5 | $ 7 | ||||
Other receivables | 23 | $ 21 | ||||
Other payables | $ 36 | $ 36 | ||||
Skookumchuck Pulp Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration transferred | $ 185 | |||||
Skookumchuck Pulp Inc [Member] | Preferred Shares Redeemable [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration transferred | $ 100 | |||||
Bearing interest rate, Percentage | 9.75% | |||||
Preferred stock, dividend percentage | 9.75% | |||||
Skookumchuck Pulp Inc [Member] | Promissory Note Bearing Interest At 8.50% Due After June 30 2031 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration transferred | $ 35 | |||||
Bearing interest rate, Percentage | 8.50% | |||||
Skookumchuck Pulp Inc [Member] | Promissory Note [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration transferred | $ 35 | |||||
Skookumchuck Pulp Inc [Member] | Unsecured Note Repaid July 2023 [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consideration transferred | $ 50 | |||||
Prior to Acquisition of Catalyst [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Converted loans to equity | $ 235 | |||||
Prior to Acquisition of Skookumchuck Pulp Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Converted loans to equity | $ 100 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ in Millions | Apr. 30, 2024 USD ($) |
Subsequent Event | Sale of Mill | El Dorado, Sawmill | Anthony Forest Products Company, LLC | Asset Purchase Agreement | |
Subsequent Event [Line Items] | |
Purchase price | $ 73 |