Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'UFS | ' |
Entity Registrant Name | 'Domtar CORP | ' |
Entity Central Index Key | '0001381531 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 31,814,270 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $1,375 | $1,389 | $4,032 | $4,155 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 1,116 | 1,100 | 3,280 | 3,263 |
Depreciation and amortization | 93 | 96 | 281 | 289 |
Selling, general and administrative | 95 | 80 | 281 | 268 |
Impairment and write-down of property, plant and equipment (NOTE 12) | ' | ' | 15 | 2 |
Closure and restructuring costs (NOTE 12) | ' | 2 | 18 | 3 |
Other operating loss, net (NOTE 7) | 22 | 2 | 89 | 6 |
Operating expenses | 1,326 | 1,280 | 3,964 | 3,831 |
Operating income | 49 | 109 | 68 | 324 |
Interest expense, net | 21 | 20 | 67 | 109 |
Earnings before income taxes and equity loss | 28 | 89 | 1 | 215 |
Income tax expense (benefit) | 1 | 22 | -26 | 57 |
Equity loss, net of taxes | ' | 1 | 1 | 5 |
Net earnings | 27 | 66 | 26 | 153 |
Per common share (in dollars) (NOTE 5) | ' | ' | ' | ' |
Basic | $0.83 | $1.85 | $0.77 | $4.21 |
Diluted | $0.82 | $1.84 | $0.77 | $4.20 |
Weighted average number of common and exchangeable shares outstanding (millions) | ' | ' | ' | ' |
Basic | 32.7 | 35.7 | 33.6 | 36.3 |
Diluted | 32.8 | 35.8 | 33.7 | 36.4 |
Net earnings | 27 | 66 | 26 | 153 |
Net derivative gains (losses) on cash flow hedges: | ' | ' | ' | ' |
Net gains (losses) arising during the period, net of tax of $2 and $(3), respectively (2012 - $2 and $2, respectively) | 2 | 6 | -6 | 6 |
Less: Reclassification adjustment for gains included in net earnings, net of tax of $(1) and $(2), respectively (2012 - $1 and $4, respectively) | 2 | 2 | 3 | 7 |
Foreign currency translation adjustments | 33 | 47 | -27 | 32 |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax of $(9) and $(17), respectively (2012 - $(3) and $(3) respectively) | 18 | -5 | 39 | -5 |
Other comprehensive income | 55 | 50 | 9 | 40 |
Comprehensive income | $82 | $116 | $35 | $193 |
Consolidated_Statements_of_Ear1
Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net gains (losses) arising during the period, tax | $2 | $2 | ($3) | $2 |
Reclassification adjustment for gains included in net earnings, tax | -1 | 1 | -2 | 4 |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | ($9) | ($3) | ($17) | ($3) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $191 | $661 |
Receivables, less allowances of $4 and $4 | 583 | 562 |
Inventories (NOTE 9) | 703 | 675 |
Prepaid expenses | 31 | 24 |
Income and other taxes receivable | 48 | 48 |
Deferred income taxes | 58 | 45 |
Total current assets | 1,614 | 2,015 |
Property, plant and equipment, at cost | 8,928 | 8,793 |
Accumulated depreciation | -5,576 | -5,392 |
Net property, plant and equipment | 3,352 | 3,401 |
Goodwill (NOTE 10) | 367 | 263 |
Intangible assets, net of amortization (NOTE 11) | 409 | 309 |
Other assets | 143 | 135 |
Total assets | 5,885 | 6,123 |
Liabilities and shareholders' equity | ' | ' |
Bank indebtedness | 6 | 18 |
Trade and other payables | 693 | 646 |
Income and other taxes payable | 16 | 15 |
Long-term debt due within one year | 6 | 79 |
Total current liabilities | 721 | 758 |
Long-term debt | 1,102 | 1,128 |
Deferred income taxes and other | 946 | 903 |
Other liabilities and deferred credits | 435 | 457 |
Commitments and contingencies (NOTE 16) | ' | ' |
Shareholders' equity | ' | ' |
Common stock $0.01 par value; authorized 2,000,000,000 shares; issued: 42,551,774 and 42,523,896 shares | ' | ' |
Treasury stock (NOTE 15) $0.01 par value; 10,742,472 and 8,285,292 shares | ' | ' |
Exchangeable shares No par value unlimited shares authorized; issued and held by nonaffiliates: 584,214 and 607,814 shares | 46 | 48 |
Additional paid-in capital | 1,998 | 2,175 |
Retained earnings | 756 | 782 |
Accumulated other comprehensive loss | -119 | -128 |
Total shareholders' equity | 2,681 | 2,877 |
Total liabilities and shareholders' equity | $5,885 | $6,123 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Receivables, allowances | $4 | $4 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 42,551,774 | 42,523,896 |
Treasury stock, par value | $0.01 | $0.01 |
Treasury stock, shares | 10,742,472 | 8,285,292 |
Exchangeable shares, no par value | ' | ' |
Exchangeable shares, issued | 584,214 | 607,814 |
Exchangeable shares, held by nonaffiliates | 584,214 | 607,814 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Issued and outstanding common and exchangeable shares [Member] | Exchangeable shares [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2012 | $2,877 | ' | $48 | $2,175 | $782 | ($128) |
Balance, Shares at Dec. 31, 2012 | ' | 34.8 | ' | ' | ' | ' |
Conversion of exchangeable shares | ' | ' | -2 | 2 | ' | ' |
Conversion of exchangeable shares, Shares | ' | ' | ' | ' | ' | ' |
Stock-based compensation, net of tax | 4 | ' | ' | 4 | ' | ' |
Net earnings | 26 | ' | ' | ' | 26 | ' |
Net derivative gains (losses) on cash flow hedges: | ' | ' | ' | ' | ' | ' |
Net losses arising during the period, net of tax of $(3) | -6 | ' | ' | ' | ' | -6 |
Less: Reclassification adjustments for gains included in net earnings, net of tax of $(2) | 3 | ' | ' | ' | ' | 3 |
Foreign currency translation adjustments | -27 | ' | ' | ' | ' | -27 |
Change in unrecognized gains and prior service cost related to pension and post retirement benefit plans, net of tax of $(17) | 39 | ' | ' | ' | ' | 39 |
Stock repurchase | -183 | -2.4 | ' | -183 | ' | ' |
Stock repurchase, shares | ' | ' | ' | ' | ' | ' |
Cash dividends | -52 | ' | ' | ' | -52 | ' |
Balance at Sep. 30, 2013 | $2,681 | ' | $46 | $1,998 | $756 | ($119) |
Balance, Shares at Sep. 30, 2013 | ' | 32.4 | ' | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' | ' |
Net losses arising during the period, tax | $2 | $2 | ($3) | $2 |
Reclassification adjustments for gains included in net earnings, tax | -1 | 1 | -2 | 4 |
Change in unrecognized gains and prior service cost related to pension and post retirement benefit plans, tax | ($9) | ($3) | ($17) | ($3) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net earnings | $26 | $153 |
Adjustments to reconcile net earnings to cash flows from operating activities | ' | ' |
Depreciation and amortization | 281 | 289 |
Deferred income taxes and tax uncertainties | -9 | 13 |
Impairment and write-down of property, plant and equipment and intangible assets | 15 | 2 |
Net losses on disposals of property, plant and equipment and sale of business | 9 | ' |
Stock-based compensation expense | 4 | 3 |
Equity loss, net | 1 | 5 |
Other | -4 | -11 |
Changes in assets and liabilities, excluding the effects of acquisition and sale of businesses | ' | ' |
Receivables | -46 | -1 |
Inventories | -19 | 20 |
Prepaid expenses | -5 | -7 |
Trade and other payables | 15 | -80 |
Income and other taxes | -11 | 6 |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | 23 | 7 |
Other assets and other liabilities | 7 | 12 |
Cash flows provided from operating activities | 287 | 411 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -180 | -171 |
Proceeds from disposals of property, plant and equipment and sale of business | 55 | ' |
Acquisition of businesses, net of cash acquired | -287 | -293 |
Investment in joint venture | -1 | -5 |
Cash flows used for investing activities | -413 | -469 |
Financing activities | ' | ' |
Dividend payments | -50 | -42 |
Net change in bank indebtedness | -13 | 8 |
Issuance of long-term debt | ' | 548 |
Repayment of long-term debt | -99 | -190 |
Stock repurchase | -183 | -116 |
Other | 2 | -1 |
Cash flows (used for) provided from financing activities | -343 | 207 |
Net (decrease) increase in cash and cash equivalents | -469 | 149 |
Impact of foreign exchange on cash | -1 | ' |
Cash and cash equivalents at beginning of period | 661 | 444 |
Cash and cash equivalents at end of period | 191 | 593 |
Supplemental cash flow information | ' | ' |
Interest (including $2 million and $47 million of tender offer premiums in 2013 and 2012, respectively) | 60 | 92 |
Income taxes (refund) paid | ($8) | $60 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Cash Flows [Abstract] | ' | ' | ' |
Premium on extinguishment of debt | $2 | $2 | $47 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
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. Results for the first nine months of the year may not necessarily be indicative of full year results. 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, 2012, as filed with the Securities and Exchange Commission. The December 31, 2012 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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS | |
ACCOUNTING CHANGES IMPLEMENTED | |
COMPREHENSIVE INCOME | |
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, an update to Comprehensive Income, which requires an entity to provide information regarding the amounts reclassified out of accumulated other comprehensive income by component. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source, and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted the new requirement on January 1, 2013 with no impact on the Company’s consolidated financial statements except for the change in presentation. | |
The Company has chosen to present the new information as a separate disclosure in the notes to the consolidated financial statements. | |
FUTURE ACCOUNTING CHANGES | |
FOREIGN CURRENCY MATTERS | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a step acquisition for a foreign entity. The update does not change the requirement to release a pro-rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. | |
The amendments are effective for interim and annual periods beginning after December 15, 2013 and will not have an impact on the Company’s consolidated financial statements unless one or more of the derecognition events stated above occur after the effective date. | |
INCOME TAXES | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The amendments are effective for interim and annual periods beginning after December 15, 2013. Other than the change in the presentation, the Company has determined these changes will not have a material impact on the consolidated financial statements. |
Acquisition_of_Businesses
Acquisition of Businesses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition of Businesses | ' | ||||||||
NOTE 3. ACQUISITION OF BUSINESSES | |||||||||
Acquisition of Associated Hygienic Products LLC | |||||||||
On July 1, 2013, Domtar Corporation completed the acquisition of 100% of the outstanding shares of Associated Hygienic Products LLC (“AHP”). AHP manufactures and markets infant diapers in the United States. AHP has 599 employees and operates two manufacturing facilities, a 376,500 square foot manufacturing facility in Delaware, Ohio and a 312,500 square foot manufacturing facility in Waco, Texas. AHP also has administrative offices and operates a distribution center in Duluth, Georgia. The results of AHP’s operations are included in the Personal Care reportable segment as of July 1, 2013. The purchase price was $276 million in cash, including working capital, net of cash acquired of $2 million. The acquisition was accounted for as a business combination under the acquisition method of accounting, in accordance with the Business Combinations Topic of FASB Accounting Standards Codification. | |||||||||
The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which are based on information currently available. | |||||||||
The table below illustrates the preliminary purchase price allocation: | |||||||||
Fair value of net assets acquired at the date of acquisition | |||||||||
Receivables | 26 | ||||||||
Inventory | 29 | ||||||||
Property, plant and equipment | 99 | ||||||||
Intangible assets | |||||||||
Customer relationships (1) | 67 | ||||||||
Licence rights (2) | 29 | ||||||||
96 | |||||||||
Goodwill | 103 | ||||||||
Total assets | 353 | ||||||||
Less: Liabilities | |||||||||
Trade and other payables | 37 | ||||||||
Intangible lease liability | 13 | ||||||||
Deferred income tax liabilities | 27 | ||||||||
Total liabilities | 77 | ||||||||
Fair value of net assets acquired at the date of acquisition | 276 | ||||||||
(1) | The preliminary useful life of the Customer relationships acquired is expected to be 20 years. | ||||||||
(2) | The preliminary useful life of the License rights acquired is expected to be 12 years. | ||||||||
Goodwill represent the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The goodwill is attributable to the general reputation of the business, the assembled workforce, the expected synergies and the expected future cash flows of the business. Disclosed goodwill is not deductible for tax purposes. Pro forma results have not been provided, as this acquisition has no material impact on the Company. | |||||||||
Xerox | |||||||||
On June 1, 2013, Domtar Corporation completed the acquisition of Xerox’s paper and print media product’s assets in the United States and Canada. The transaction includes a broad range of coated and uncoated papers and specialty print media including business forms, carbonless as well as wide-format paper formerly distributed by Xerox. The results of this business are presented in the Pulp and Paper reportable segment. The purchase price was $7 million in cash plus inventory on a dollar for dollar basis. The acquisition was accounted for as a business combination under the acquisition method of accounting, in accordance with the Business Combinations Topic of FASB Accounting Standards Codification. | |||||||||
The total purchase price was allocated to tangible and intangible assets acquired based on the Company’s estimates of their fair value, which are based on information currently available. During the third quarter of 2013, the Company completed the evaluation of all assets and liabilities. | |||||||||
The table below illustrates the purchase price allocation: | |||||||||
Inventory | 4 | ||||||||
Intangible assets (Note 11) | |||||||||
Customer relationships (1) | 1 | ||||||||
License rights (2) | 6 | ||||||||
7 | |||||||||
Total assets | 11 | ||||||||
Fair value of assets acquired at the date of acquisition | 11 | ||||||||
(1) | The useful life of the Customer relationships acquired is expected to be 20 years. | ||||||||
(2) | Indefinite useful life. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities and Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivatives and Hedging Activities and Fair Value Measurement | ' | ||||||||||||||||||||||||||||
NOTE 4. DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||||||
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, bank credit facility and long-term debt. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts. | |||||||||||||||||||||||||||||
CREDIT RISK | |||||||||||||||||||||||||||||
The Company is exposed to credit risk on the 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 at September 30, 2013, one of Domtar’s Pulp and Paper segment customers located in the United States represented 13% ($76 million) (2012 – 11% ($64 million)) of the Company’s receivables. | |||||||||||||||||||||||||||||
The Company is also exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company minimizes 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. Additionally, the Company is exposed to credit risk in the event of non-performance by its insurers. The Company minimizes this exposure by doing business only with large reputable insurance companies. | |||||||||||||||||||||||||||||
COST RISK | |||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
The Company purchases natural gas at the prevailing market price at the time of delivery. In order to manage the cash flow risk associated with purchases of natural gas, the Company may utilize derivative financial instruments or physical purchases to fix the price of forecasted natural gas purchases. The Company formally documents the hedge relationships, including identification of the hedging instruments and the hedged items, the risk management objectives and strategies for undertaking the hedge transactions, and the methodologies used to assess effectiveness and measure ineffectiveness. Current contracts are used to hedge a portion of forecasted purchases over the next 51 months. The effective portion of changes in the fair value of derivative contracts designated as cash flow hedges is recorded in Other comprehensive income, and is recognized in Cost of sales in the period in which the hedged transaction occurs. | |||||||||||||||||||||||||||||
The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2013 to hedge forecasted purchases: | |||||||||||||||||||||||||||||
Commodity | Notional contractual quantity | Notional contractual value | Percentage of forecasted | ||||||||||||||||||||||||||
under derivative contracts | under derivative contracts | purchases under derivative | |||||||||||||||||||||||||||
(in millions of dollars) | contracts for | ||||||||||||||||||||||||||||
2013(2) | 2014 | 2015 | 2016 | ||||||||||||||||||||||||||
Natural gas | 21,915,000 | MMBTU | (1) | $ | 91 | 32 | % | 56 | % | 31 | % | 25 | % | ||||||||||||||||
-1 | MMBTU: Millions of British thermal units | ||||||||||||||||||||||||||||
(2) | Represents the remaining three months of 2013. | ||||||||||||||||||||||||||||
The natural gas derivative contracts were fully effective for hedge accounting purposes as of September 30, 2013. The critical terms of the hedging instruments and the hedged items match. As a result, there were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2013 resulting from hedge ineffectiveness (three and nine months ended September 30, 2012—nil). | |||||||||||||||||||||||||||||
FOREIGN CURRENCY RISK | |||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
The Company has manufacturing operations in the United States, Canada, Sweden and China. As a result, it is exposed to movements in foreign currency exchange rates in Canada, Europe and Asia. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. As a result, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and of other European and Asian currencies relative to the U.S. dollar. The Company’s Swedish subsidiary is exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than its Euro functional currency. The Company’s risk management policy allows it to hedge a significant portion of its exposure to fluctuations in foreign currency exchange rates for periods up to three years. The Company may use derivative instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates or to designate them as hedging instruments in order to hedge the subsidiary’s cash flow risk for purposes of the consolidated financial statements. | |||||||||||||||||||||||||||||
The Company formally documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking the hedge transactions. Foreign exchange currency option contracts used to hedge forecasted purchases in Canadian dollars by the Canadian subsidiary, and forecasted sales in British Pound Sterling and forecasted purchases in U.S. dollars by the Swedish subsidiary, are designated as cash flow hedges. Current contracts are used to hedge forecasted sales or purchases over the next 12 months. The effective portion of changes in the fair value of derivative contracts designated as cash flow hedges is recorded in Other comprehensive income and is recognized in Cost of sales or in Sales in the period in which the hedged transaction occurs. | |||||||||||||||||||||||||||||
Net investment hedge: | |||||||||||||||||||||||||||||
The Company uses foreign exchange currency option contracts maturing in February 2014 to hedge a portion of the net assets of Attends Healthcare Limited (“Attends Europe”) to offset the foreign currency translation and economic exposures related to its investment in the subsidiary. The Company is exposed to movements in foreign currency exchange rates of the Euro versus the U.S. dollar as Attends Europe has a Euro functional currency whereas the Company has a U.S. dollar functional and reporting currency. The effective portion of changes in the fair value of derivative contracts designated as net investment hedges is recorded in Other comprehensive income as part of the Foreign currency translation adjustments. | |||||||||||||||||||||||||||||
The following table presents the currency values under contracts pursuant to currency options outstanding as of September 30, 2013 to hedge forecasted purchases and sales: | |||||||||||||||||||||||||||||
Contract | Notional contractual value | Percentage of forecasted net exposures | |||||||||||||||||||||||||||
under contracts for | |||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Currency options purchased | CDN | $ | 425 | 50 | % | 37 | % | ||||||||||||||||||||||
USD | $ | 26 | 69 | % | 63 | % | |||||||||||||||||||||||
GBP | £ | 16 | 89 | % | 62 | % | |||||||||||||||||||||||
Currency options sold | CDN | $ | 425 | 50 | % | 37 | % | ||||||||||||||||||||||
USD | $ | 26 | 69 | % | 63 | % | |||||||||||||||||||||||
GBP | £ | 16 | 89 | % | 62 | % | |||||||||||||||||||||||
The currency options are fully effective as at September 30, 2013. The critical terms of the hedging instruments and the hedged items match. As a result, there were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2013 resulting from hedge ineffectiveness (three and nine months ended September 30, 2012 – nil). | |||||||||||||||||||||||||||||
The notional amount of the outstanding foreign exchange currency option contracts not included in the table above, designated as a net investment hedge as of September 30, 2013 was $142 million (€105 million). | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||||||
The accounting standards for fair value measurements and disclosures, establishes 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 (c) below) at September 30, 2013 and December 31, 2012, in accordance with the accounting standards dealing with 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: | |||||||||||||||||||||||||||||
Derivatives designated as cash flow | September 30, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
and net investment hedging | 2013 | active markets for | observable | unobservable | |||||||||||||||||||||||||
instruments under the Derivatives and | identical assets | inputs | inputs | ||||||||||||||||||||||||||
Hedging Topic of FASB ASC: | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | — | — | — | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | — | — | — | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 6 | — | 6 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 10 | — | 10 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes (“ABN”) | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,206 | 1,206 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
The cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts of $4 million at September 30, 2013, will be recognized in Cost of sales upon maturity of the derivatives over the next four years at the then prevailing values, which may be different from those at September 30, 2013. | |||||||||||||||||||||||||||||
The cumulative loss recorded in Accumulated other comprehensive loss relating to currency options hedging forecasted purchases of $1 million at September 30, 2013, will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2013. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | |||||||||||||||||||||||||||||
Derivatives designated as cash flow | December 31, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
and net investment hedging | 2012 | active markets for | observable | unobservable | |||||||||||||||||||||||||
instruments under the Derivatives | identical assets | inputs | inputs | ||||||||||||||||||||||||||
and Hedging Topic of FASB ASC: | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 7 | — | 7 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency options | 5 | — | 5 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 4 | — | 4 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 10 | — | 10 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,360 | 1,360 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
(a) | Fair value of the Company’s derivatives is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: | ||||||||||||||||||||||||||||
– | For currency options: Fair value is measured using techniques derived from the Black-Scholes pricing model. 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) | ABN is reported at fair value utilizing Level 2 or Level 3 inputs. Fair value of ABN reported under Level 2 is based on current market quotes. Fair value of ABN reported under Level 3 is based on the value of the collateral investments held in the conduit issuer, reduced by the negative value of credit default derivatives, with an additional discount applied for illiquidity. | ||||||||||||||||||||||||||||
(c) | Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The carrying value of the Company’s long-term debt is $1,108 million and $1,207 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||
Due to their short-term maturity, the carrying amounts of cash and cash equivalents, receivables, bank indebtedness, trade and other payables and income and other taxes approximate their fair values. | |||||||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of ABN measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods: | |||||||||||||||||||||||||||||
ASSET BACKED NOTES | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | 1 | ||||||||||||||||||||||||||||
Net unrealized gains included in earnings (a) | — | ||||||||||||||||||||||||||||
Transfer out of Level 3 (b) | — | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | 1 | ||||||||||||||||||||||||||||
(a) | Earnings effect is primarily included in Other operating loss, net in the Consolidated Statement of Earnings and Comprehensive Income. | ||||||||||||||||||||||||||||
(b) | Transfers out of Level 3 are considered to occur at the end of the period. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
NOTE 5. EARNINGS PER SHARE | |||||||||||||||||
The following table provides the reconciliation between basic and diluted earnings per share: | |||||||||||||||||
For the three | For the nine | ||||||||||||||||
months ended | months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net earnings | $ | 27 | $ | 66 | $ | 26 | $ | 153 | |||||||||
Weighted average number of common and exchangeable shares outstanding (millions) | 32.7 | 35.7 | 33.6 | 36.3 | |||||||||||||
Effect of dilutive securities (millions) | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 32.8 | 35.8 | 33.7 | 36.4 | |||||||||||||
Basic net earnings per share (in dollars) | $0.83 | $1.85 | $0.77 | $4.21 | |||||||||||||
Diluted net earnings per share (in dollars) | $ | 0.82 | $ | 1.84 | $ | 0.77 | $ | 4.2 | |||||||||
The following table provides the securities that could potentially dilute basic earnings per share in the future, but were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive: | |||||||||||||||||
For the three | For the nine | ||||||||||||||||
months ended | months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Restricted stock units | — | 15,802 | — | — | |||||||||||||
Performance share units | — | 1,808 | — | — | |||||||||||||
Options | 221,892 | 177,970 | 221,892 | 84,625 | |||||||||||||
Pension_Plans_and_Other_PostRe
Pension Plans and Other Post-Retirement Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Pension Plans and Other Post-Retirement Benefit Plans | ' | ||||||||||||||||
NOTE 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 and nine months ended September 30, 2013, the related pension expense was $6 million and $22 million, respectively (2012 – $4 million and $19 million, respectively). | |||||||||||||||||
DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS | |||||||||||||||||
The Company sponsors both contributory and non-contributory U.S. and non-U.S. defined benefit pension plans that cover the majority of its employees. Non-unionized employees in Canada joining the Company after June 1, 2000 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Also, starting on January 1, 2013, all unionized employees covered under the agreement with the United Steel Workers, not grandfathered under the existing defined benefit pension plans, will transition to a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans to certain senior management employees. | |||||||||||||||||
Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: | |||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 10 | 1 | 32 | 2 | |||||||||||||
Interest expense | 19 | 2 | 56 | 4 | |||||||||||||
Expected return on plan assets | (24 | ) | — | (72 | ) | — | |||||||||||
Amortization of net actuarial loss | 6 | — | 20 | 1 | |||||||||||||
Curtailment loss | 1 | — | 1 | — | |||||||||||||
Settlement loss (a) | — | — | 13 | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 2 | — | |||||||||||||
Net periodic benefit cost | 13 | 3 | 52 | 7 | |||||||||||||
(a) | The settlement loss of $13 million in the pension plans for the nine months ended September 30, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 12 “Closure and restructuring and liability and impairment of property, plant and equipment”). | ||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
September 30, 2012 | September 30, 2012 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 10 | — | 29 | 2 | |||||||||||||
Interest expense | 20 | 1 | 60 | 4 | |||||||||||||
Expected return on plan assets | (23 | ) | — | (69 | ) | — | |||||||||||
Amortization of net actuarial loss | 4 | 1 | 13 | 1 | |||||||||||||
Curtailment gain (b) | — | (13 | ) | — | (13 | ) | |||||||||||
Settlement loss | — | — | — | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 3 | (1 | ) | ||||||||||||
Net periodic benefit cost | 12 | (11 | ) | 36 | (7 | ) | |||||||||||
(b) | The curtailment gain of $13 million in the other post-retirement benefit plans for the nine months ended September 30, 2012, is as a result of the curtailment of benefits related to the majority of employees covered by the plan. | ||||||||||||||||
The Company contributed $17 million and $31 million for the three and nine months ended September 30, 2013, respectively (2012 – $10 million and $29 million, respectively) to the pension plans. The Company also contributed $2 million and $5 million for the three and nine months ended September 30, 2013, respectively (2012 – $2 million and $6 million, respectively) to the other post-retirement benefit plans. |
Other_Operating_Loss_Net
Other Operating Loss, Net | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||
Other Operating Loss, Net | ' | ||||||||||||||||
NOTE 7. OTHER OPERATING LOSS, NET | |||||||||||||||||
Other operating loss, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from period to period. The Company’s other operating loss, net includes the following: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Reversal of alternative fuel tax credits (Note 8) | — | — | 26 | — | |||||||||||||
Loss on sale of business (1) (Note 19) | 19 | — | 19 | — | |||||||||||||
Gain on sale of property, plant and equipment (2) | — | — | (10 | ) | — | ||||||||||||
Environmental provision | — | — | 2 | 2 | |||||||||||||
Foreign exchange loss (gain) | 1 | 1 | (1 | ) | 3 | ||||||||||||
Weston litigation (3) (Note 16) | — | — | 49 | — | |||||||||||||
Other | 2 | 1 | 4 | 1 | |||||||||||||
Other operating loss, net | 22 | 2 | 89 | 6 | |||||||||||||
(1) | On July 31, 2013, the Company completed the sale of its Ariva U.S business. The transaction closed at the end of July 2013. The Company recorded a loss on sale of business of $19 million in the third quarter of 2013 (see Note 19 “Sales of Ariva U.S.” for further information). | ||||||||||||||||
(2) | On March 22, 2013, the Company sold the building, remaining equipment and related land of the closed pulp and paper mill in Port Edwards, Wisconsin and recorded a gain on the sale of approximately $10 million. The transaction included specific machinery, equipment, furniture, parts, supplies, tools, real estate, land improvements, and other fixed or tangible assets. The assets were sold “as is” for proceeds of approximately $9 million and the environmental provision of $3 million related to these assets was contractually passed on to the buyer and released from the Company’s liabilities. The net book value of the assets sold was approximately $2 million. | ||||||||||||||||
(3) | On June 24, 2013, the parties agreed to settle the Weston litigation for a payment by Domtar to Weston of $49 million (CDN $50 million) (see Note 16 “Commitments and Contingencies” for further information). |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 8. INCOME TAXES | |
For the third quarter of 2013, the Company’s income tax expense amounted to $1 million, consisting of a current tax expense of $10 million and a deferred tax benefit of $9 million. This compares to an income tax expense of $22 million in the third quarter of 2012, consisting of a current tax expense of $17 million and a deferred tax expense of $5 million. The Company made income tax payments, net of refunds, of $1 million during the third quarter of 2013. The effective tax rate for the third quarter was 4% compared to an effective tax rate of 25% in the third quarter of 2012. The effective tax rate for the third quarter of 2013 was impacted by the recognition of additional tax benefits related to the finalization of certain estimates in connection with the filing of the Company’s 2012 tax return, as well as by the benefit of enacted state and provincial tax law changes in North Carolina and British Columbia. | |
For the first nine months of 2013, the Company’s income tax benefit amounted to $26 million, consisting of a current tax benefit of $17 million and a deferred tax benefit of $9 million. This compares to an income tax expense of $57 million in the first nine months of 2012, consisting of a current tax expense of $44 million and a deferred tax expense of $13 million. The Company received income tax refunds, net of payments, of $8 million during the first nine months of 2013. The Company’s effective tax rate for the first nine months of 2013 was negative compared to the effective tax rate of 27% for the first nine months of 2012. The tax benefit for the first nine months of 2013 was impacted by the conversion of $26 million of Alternative Fuel Tax Credits from the 2009 tax year into $55 million of Cellulosic Biofuel Producer Credits ($33 million benefit after-tax) a reduction of unrecognized tax benefits of $8 million related to this conversion, and the enacted tax changes in North Carolina and British Columbia. These tax benefits were partially offset by the $49 million (CDN $50 million) litigation settlement payment due to $38 million (CDN $39 million) being non-deductible for income tax purposes. | |
The Company’s gross unrecognized tax benefits were reduced in the first nine months of 2013 by $8 million for unrecognized tax benefits previously associated with Alternative Fuel Tax Credits from 2009 that were converted into Cellulosic Biofuel Producer Credits in the first quarter of 2013, partially offset by $5 million of accrued interest. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
NOTE 9. INVENTORIES | |||||||||
The following table presents the components of inventories: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Work in process and finished goods | 398 | 381 | |||||||
Raw materials | 118 | 112 | |||||||
Operating and maintenance supplies | 187 | 182 | |||||||
703 | 675 | ||||||||
Goodwill
Goodwill | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill | ' | ||||
NOTE 10. GOODWILL | |||||
The carrying value and any changes in the carrying value of goodwill are as follows: | |||||
September 30, | |||||
2013 | |||||
$ | |||||
Balance at December 31, 2012 | 263 | ||||
Acquisition of Associated Hygienic Products LLC | 103 | ||||
Effect of foreign currency exchange rate change | 1 | ||||
Balance at end of period | 367 | ||||
The goodwill at September 30, 2013 is entirely related to the Personal Care segment (see Note 3 “Acquisition of Businesses” for further information on the increase in 2013). | |||||
At September 30, 2013, the accumulated impairment loss amounts to $321 million (2012 – $321 million). The impairment of goodwill was done in 2008, and was related to the Pulp and Paper segment. |
Intangible_Assets_Net
Intangible Assets, Net | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets, Net | ' | ||||||||||||||||||||||||||||
NOTE 11. INTANGIBLE ASSETS, NET | |||||||||||||||||||||||||||||
The following table presents the components of intangible assets, net: | |||||||||||||||||||||||||||||
Estimated useful | September 30, | December 31, | |||||||||||||||||||||||||||
lives (in years) | 2013 | 2012 | |||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||||||||||
Water rights | 40 | 8 | (1 | ) | 7 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Customer relationships | 20 – 40 | 254 | (11 | ) | 243 | 186 | (9 | ) | 177 | ||||||||||||||||||||
Trade names | 7 | 7 | (6 | ) | 1 | 7 | (5 | ) | 2 | ||||||||||||||||||||
Supplier agreement | 5 | — | — | — | 6 | (6 | ) | — | |||||||||||||||||||||
Technology | 7 – 20 | 8 | (1 | ) | 7 | 8 | — | 8 | |||||||||||||||||||||
Non-Compete | 9 | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||
License rights | 12 | 29 | — | 29 | — | — | — | ||||||||||||||||||||||
307 | (19 | ) | 288 | 216 | (21 | ) | 195 | ||||||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||||||||
Trade names | 115 | — | 115 | 114 | — | 114 | |||||||||||||||||||||||
License rights | 6 | — | 6 | — | — | — | |||||||||||||||||||||||
Total | 428 | (19 | ) | 409 | 330 | (21 | ) | 309 | |||||||||||||||||||||
Amortization expense related to intangible assets for the three and nine months ended September 30, 2013 was $3 million and $7 million, respectively (2012 – $2 million and $6 million, respectively). | |||||||||||||||||||||||||||||
Amortization expense for the next five years related to intangible assets is expected to be as follows: | |||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Amortization expense related to intangible assets | 10 | 13 | 12 | 12 | 12 | ||||||||||||||||||||||||
Closure_and_Restructuring_Cost
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment | ' | ||||||||||||||||
NOTE 12. CLOSURE AND RESTRUCTURING COSTS AND LIABILITY AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||
The Company regularly reviews its overall production capacity with the objective of aligning its production capacity with anticipated long-term demand. | |||||||||||||||||
In relation to the withdrawal from one of the Company’s multiemployer pension plans in 2011, the Company recorded an additional charge to earnings of $1 million due to a change in the estimated withdrawal liability during the first quarter of 2013. During the second quarter of 2013, the Company decided to withdraw from another of its multiemployer pension plans and recorded a withdrawal liability and a charge to earnings of $3 million. At September 30, 2013, the total provision for the withdrawal liabilities is $51 million. While this is the Company’s best estimate of the ultimate cost of the withdrawal from these plans at September 30, 2013, additional withdrawal liabilities may be incurred based on the final fund assessment expected to occur in the fourth quarter of 2013. Further, the Company remains liable for potential additional withdrawal liabilities to the fund in the event of a mass withdrawal, as defined by statute, occurring anytime within the next three years. | |||||||||||||||||
During the second quarter of 2013, the Company also incurred pension settlement losses in the amount of $13 million related to the previously closed Big River sawmill and Dryden paper mill for $6 million and $7 million, respectively. | |||||||||||||||||
Ariva U.S. | |||||||||||||||||
On July 31, 2013, the Company completed the sale its Ariva business in the United States (“Ariva U.S.”). Ariva U.S. has approximately 400 employees in the United States. As a result of this agreement, during the second quarter of 2013, the Company recorded a $5 million impairment of property, plant and equipment at its Ariva U.S. location, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income. (see Note 19 “Sale of Ariva U.S.” for further information). | |||||||||||||||||
Kamloops, British Columbia pulp facility | |||||||||||||||||
On December 13, 2012, the Company announced the permanent shut down of one pulp machine at its Kamloops, British Columbia mill. This decision resulted in a permanent curtailment of Domtar’s annual pulp production by approximately 120,000 air dried metric tons of sawdust softwood pulp and affected approximately 125 employees. | |||||||||||||||||
As a result, the Company recognized, under Impairment and write-down of property, plant and equipment, $10 million of accelerated depreciation in the first quarter of 2013. The pulp machine has ceased production in March 2013. Furthermore, during the first quarter of 2013 the Company reversed $1 million of severance and termination costs. During the second quarter of 2013, the Company reversed an additional $1 million of severance and termination costs, reversed $1 million of inventory obsolescence, and incurred $2 million of other costs. | |||||||||||||||||
Mira Loma, California converting plant | |||||||||||||||||
During the first quarter of 2012, the Company recorded a $2 million write-down of property, plant and equipment at its Mira Loma location in California, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income. | |||||||||||||||||
Other Costs | |||||||||||||||||
For the three and nine months ended September 30, 2013, the Company also incurred other costs related to previous and ongoing closures which include nil and $2 million, respectively, of severance and termination costs (2012 – nil and $1 million, respectively) and nil and nil, respectively, of other costs (2012 – $2 million and $2 million, respectively). | |||||||||||||||||
The following tables provide the components of closure and restructuring costs by segment: | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Pulp and Paper | Personal Care | Corporate | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Severance and termination costs | — | — | — | — | |||||||||||||
Inventory obsolescence | — | — | — | — | |||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | |||||||||||||
Other | — | — | — | — | |||||||||||||
Closure and restructuring costs | — | — | — | — | |||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Pulp and Paper | Personal Care | Corporate | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Severance and termination costs | (2 | ) | 2 | — | — | ||||||||||||
Inventory obsolescence | (1 | ) | — | — | (1 | ) | |||||||||||
Pension settlement and withdrawal liability | 11 | — | 6 | 17 | |||||||||||||
Other | 2 | — | — | 2 | |||||||||||||
Closure and restructuring costs | 10 | 2 | 6 | 18 | |||||||||||||
Three months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Pulp and Paper | Personal Care | Total | |||||||||||||||
$ | $ | $ | |||||||||||||||
Severance and termination costs | — | — | — | ||||||||||||||
Inventory obsolescence | — | — | — | ||||||||||||||
Pension settlement and withdrawal liability | — | — | — | ||||||||||||||
Other | 1 | 1 | 2 | ||||||||||||||
Closure and restructuring costs | 1 | 1 | 2 | ||||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Pulp and Paper | Personal Care | Total | |||||||||||||||
$ | $ | $ | |||||||||||||||
Severance and termination costs | 1 | — | 1 | ||||||||||||||
Inventory obsolescence | — | — | — | ||||||||||||||
Pension settlement and withdrawal liability | — | — | — | ||||||||||||||
Other | 1 | 1 | 2 | ||||||||||||||
Closure and restructuring costs | 2 | 1 | 3 | ||||||||||||||
The following table provides the activity in the closure and restructuring liability: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
$ | |||||||||||||||||
Balance at December 31, 2012 | 10 | ||||||||||||||||
Payments | (3 | ) | |||||||||||||||
Pension provision (reflected in Accrued benefit obligation) | (3 | ) | |||||||||||||||
Balance at end of period | 4 | ||||||||||||||||
The above provision is comprised of severance and termination costs of $3 million in the Pulp and Paper segment and $1 million in the Personal Care segment. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Long-Term Debt | ' |
NOTE 13. LONG-TERM DEBT | |
During the first quarter of 2013, the Company redeemed its outstanding 5.375% Notes due 2013, for par value of $71 million. The Company incurred $2 million of premiums paid and additional charges of $1 million, included in Interest expense, net on the Consolidated Statement of Earnings and Comprehensive Income. The Company also repaid $23 million of capital lease obligations to purchase the land and buildings, related to the Greenville, North Carolina site, in the Personal Care segment. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Changes in Accumulated Other Comprehensive Loss by Component | ' | ||||||||||||||||||||
NOTE 14. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | |||||||||||||||||||||
The following table presents the changes in Accumulated other comprehensive loss by component(1): | |||||||||||||||||||||
Net derivative | Pension | Post-retirement | Foreign | Total | |||||||||||||||||
gains (losses) | items | benefit items | currency | ||||||||||||||||||
on cash flow | items | ||||||||||||||||||||
hedges | |||||||||||||||||||||
Balance at December 31, 2012 | 5 | (326 | ) | (15 | ) | 208 | (128 | ) | |||||||||||||
Natural gas swap contracts | (2 | ) | N/A | N/A | N/A | (2 | ) | ||||||||||||||
Currency options | (3 | ) | N/A | N/A | N/A | (3 | ) | ||||||||||||||
Net investment hedge | (1 | ) | N/A | N/A | N/A | (1 | ) | ||||||||||||||
Foreign currency items | N/A | N/A | N/A | (27 | ) | (27 | ) | ||||||||||||||
Remeasurement of pension plan obligaton(2) | N/A | 19 | — | N/A | 19 | ||||||||||||||||
Total Other comprehensive (loss) income before reclassifications | (6 | ) | 19 | — | (27 | ) | (14 | ) | |||||||||||||
Amounts reclassified from Accumulated other comprehensive loss | 3 | 18 | 2 | — | 23 | ||||||||||||||||
Net current period other comprehensive (loss) income | (3 | ) | 37 | 2 | (27 | ) | 9 | ||||||||||||||
Balance at September 30, 2013 | 2 | (289 | ) | (13 | ) | 181 | (119 | ) | |||||||||||||
(1) | All amounts are after tax. | ||||||||||||||||||||
(2) | Remeasurement gains of $19 million recorded in Accumulated other comprehensive loss related to pension. | ||||||||||||||||||||
The following tables present reclassifications out of Accumulated other comprehensive loss: | |||||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated | |||||||||||||||||||
comprehensive loss | Statements of Earnings | ||||||||||||||||||||
and Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Net derivative losses on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | 1 | 3 | Cost of Sales | ||||||||||||||||||
Currency options | 2 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 3 | 3 | |||||||||||||||||||
Tax benefit | (1 | ) | (1 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 2 | 2 | |||||||||||||||||||
Amortization of defined benefit pension plans | |||||||||||||||||||||
Net actuarial loss (gain) | 7 | (8 | )(a) | ||||||||||||||||||
Prior service cost | 1 | 1 | (a) | ||||||||||||||||||
Total before tax | 8 | (7 | ) | ||||||||||||||||||
Tax benefit | (9 | ) | (3 | ) | Income tax benefit | ||||||||||||||||
Net of tax | (1 | ) | (10 | ) | |||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated | |||||||||||||||||||
comprehensive loss | Statements of Earnings | ||||||||||||||||||||
and Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Net derivative losses on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | 3 | 9 | Cost of Sales | ||||||||||||||||||
Currency options | 2 | 2 | Cost of Sales | ||||||||||||||||||
Total before tax | 5 | 11 | |||||||||||||||||||
Tax benefit | (2 | ) | (4 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 3 | 7 | |||||||||||||||||||
Amortization of defined benefit pension plans | |||||||||||||||||||||
Net actuarial loss | 35 | 1 | (a) | ||||||||||||||||||
Prior service cost | 2 | 2 | (a) | ||||||||||||||||||
Total before tax | 37 | 3 | |||||||||||||||||||
Tax benefit | (17 | ) | (3 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 20 | — | |||||||||||||||||||
(a) | These Accumulated other comprehensive loss components are included in the computation of net periodic benefit cost for pension and other post-retirement benefit plans as amortization of net actuarial loss, curtailment loss and settlement loss. Refer to Note 6 for additional details. | ||||||||||||||||||||
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
NOTE 15. SHAREHOLDERS’ EQUITY | |
On February 20, 2013, the Company’s Board of Directors approved a quarterly dividend of $0.45 per share to be paid to holders of the Company’s common stock, as well as holders of exchangeable shares of Domtar (Canada) Paper Inc. Total dividends of approximately $15 million were paid on April 15, 2013 to shareholders of record on March 15, 2013. | |
On April 30, 2013 and July 30, 2013, the Company’s Board of Directors approved a quarterly dividend of $0.55 per share to be paid to holders of the Company’s common stock, as well as holders of exchangeable shares of Domtar (Canada) Paper Inc. Total dividends of approximately $19 million and $18 million, respectively, were paid on July 15, 2013 and October 15, 2013, respectively, to shareholders of record on June 14, 2013 and September 13, 2013, respectively. | |
On October 30, 2013, the Company’s Board of Directors approved a quarterly dividend of $0.55 per share to be paid to holders of the Company’s common stock, as well as holders of exchangeable shares of Domtar (Canada) Paper Inc. This dividend is to be paid on January 15, 2014, to shareholders of record on December 13, 2013. | |
STOCK REPURCHASE PROGRAM | |
The Company’s Board of Directors authorized a stock repurchase program (“the Program”) of up to $1 billion of Domtar Corporation’s common stock. Under the Program, the Company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The Program may be suspended, modified or discontinued at any time and the Company has no obligation to repurchase any amount of its common stock under the Program. The Program has no set expiration date. The Company repurchases its common stock, from time to time, in part to reduce the dilutive effects of its stock options, awards, and to improve shareholders’ returns. | |
From 2010 through the first three quarters of 2013, the Company made open market purchases of its common stock using general corporate funds. Additionally, the Company entered into structured stock repurchase agreements with large financial institutions using general corporate funds in order to lower the average cost to acquire shares. The agreements required the Company to make up-front payments to the counterparty financial institutions which resulted in either the receipt of stock at the beginning of the term of the agreements followed by a share adjustment at the maturity of the agreements, or the receipt of either stock or cash at the maturity of the agreements, depending upon the price of the stock. | |
During the first three quarters of 2013, the Company repurchased 2,509,803 shares (2012 – 1,521,667 shares) at an average price of $73.10 (2012 – $78.77) for a total cost of $183 million (2012 – $120 million). Of the $183 million shares repurchased, nil was payable at September 30, 2013 (2012 – $4 million). | |
Since the inception of the Program, the Company has repurchased 11,170,506 shares at an average price of $78.48 for a total cost of $877 million. All shares repurchased are recorded as Treasury stock on the Consolidated Balance Sheets under the par value method at $0.01 per share. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
NOTE 16. COMMITMENTS AND CONTINGENCIES | |||||
ENVIRONMENT | |||||
The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. | |||||
An action was commenced by Seaspan International Ltd. (“Seaspan”) in the Supreme Court of British Columbia, on March 31, 1999 against Domtar Inc. and others with respect to alleged contamination of Seaspan’s site bordering Burrard Inlet in North Vancouver, British Columbia, including contamination of sediments in Burrard Inlet, due to the presence of creosote and heavy metals. Beyond the filing of preliminary pleadings, no steps have been taken by the parties in this action. On February 16, 2010, the government of British Columbia issued a Remediation Order to Seaspan and Domtar Inc. (“responsible persons”) in order to define and implement an action plan to address soil, sediment and groundwater issues. This Order was appealed to the Environmental Appeal Board (“Board”) on March 17, 2010 but there is no suspension in the execution of this Order unless the Board orders otherwise. The relevant government authorities selected a remediation approach on July 15, 2011, and on January 8, 2013, the same authorities decided that each responsible persons’ implementation plan is satisfactory and that the responsible persons decide which plan is to be used. On February 6, 2013, the responsible persons appealed the January 8, 2013 decision and Seaspan applied for a stay of execution. On February 18, 2013, the Board granted an interim stay of the January 8, 2013 decision. The Board agreed to sever the Seaspan appeal and to hear it on an expedited basis. In a decision issued on May 9, 2013, the Board dismissed Seaspan’s severed appeal relating to the January 8, 2013 decision and the temporary stay was lifted. Most of the remaining appeals that were to be heard before the Board have been abandoned by the parties. Seaspan and Domtar have selected a remedial plan and are in the process of applying to the Vancouver Fraser Port Authority for permitting approval. The Company has recorded an environmental reserve to address its estimated exposure and the reasonably possible loss in excess of the reserve is not considered to be material for this matter. | |||||
The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: | |||||
September 30, | |||||
2013 | |||||
$ | |||||
Balance at beginning of period | 83 | ||||
Additions | 1 | ||||
Sale of closed facility | (3 | ) | |||
Environmental spending | (4 | ) | |||
Effect of foreign currency exchange rate change | (2 | ) | |||
Balance at end of period | 75 | ||||
The Company is also a party to various proceedings relating to the cleanup of hazardous waste sites under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund,” and similar state laws. The EPA and/or various state agencies have notified the Company that it may be a potentially responsible party 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. The investigation and remediation process is lengthy and subject to the uncertainties of changes in legal requirements, technological developments and, if and when applicable, the allocation of liability among potentially responsible parties. | |||||
Climate change regulation | |||||
Since 1997, when an international conference on global warming concluded an agreement known as the Kyoto Protocol, which called for reductions of certain emissions that may contribute to increases in atmospheric greenhouse gas (“GHG”) concentrations, various international, national and local laws have been proposed or implemented focusing on reducing GHG emissions. These actual or proposed laws do or may apply in the jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. | |||||
In the United States, Congress has considered legislation to reduce emissions of GHGs. Although the legislation has not passed, it appears that the federal government will continue to consider methods to reduce GHG emissions from public utilities and certain other emitters. The U.S. Environmental Protection Agency (“EPA”) has adopted and implemented GHG permitting requirements for certain new sources and modifications of existing industrial facilities and has recently proposed GHG performance standards for newly constructed electric utilities under the agency’s existing Clean Air Act authority. Furthermore, several states are regulating GHG emissions from public utilities and certain other significant emitters, primarily through regional GHG cap-and-trade programs. President Obama has directed the EPA to propose emission guidelines for existing electric utilities by June 1, 2014, and to finalize the regulations for both new and existing units by June 1, 2015. The U.S. Supreme Court agreed, on October 15, 2013, to review whether or not the EPA permissibly determined that its regulation under the Clean Air Act of greenhouse gas emissions from mobile sources also allows the agency to establish permitting requirements for stationary sources that emit greenhouse gases. Passage of GHG legislation by Congress or individual states, or the adoption of regulations by the EPA or analogous state agencies, that restrict emissions of GHGs in areas in which the Company conducts business could have a variety of impacts upon the Company, including requiring it to implement GHG reduction programs or to pay taxes or other fees with respect to its GHG emissions. This, in turn, will increase the Company’s operating costs and capital spending. The Company does not expect to be disproportionately affected by these measures compared with other pulp and paper producers in the United States. | |||||
The Government of Canada has committed to reducing greenhouse gases by 17 percent from 2005 levels by 2020. A sector by sector approach is being used to set performance standards to reduce greenhouse gases. On September 5, 2012 final regulations were published for the coal-fired electrical generators which are scheduled to become effective July 1, 2015. The industry sector, which includes pulp and paper, is the next sector to undergo this review. The Company does not expect the performance standards to be disproportionately affected by these future measures compared with other pulp and paper producers in Canada. | |||||
The province of Quebec initiated a GHG cap-and-trade system on January 1, 2012. Reduction targets for Quebec have been promulgated and are effective January 1, 2013. The Company does not expect the cost of compliance will have a material impact on the Company’s financial position, results of operations or cash flows. British Columbia imposed a carbon tax in 2008, which applies to the purchase of fossil fuels within the province. There are currently no other federal or provincial statutory or regulatory obligations that affect the emission of GHGs for the Company’s pulp and paper operations elsewhere in Canada. The Province of Ontario is reviewing a potential regulatory program for GHG emission reductions that may include a cap-and-trade component. | |||||
While it is likely that there will be increased regulation relating to GHG emissions in the future, at this time it is not possible to estimate either a timetable for the promulgation or implementation of any new regulations or the Company’s cost of compliance to said regulations. The impact could, however, be material. | |||||
Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”) | |||||
On December 2, 2011, the EPA proposed a new set of standards related to emissions from boilers and process heaters included in some of the Company’s manufacturing processes. These standards are generally referred to as Boiler MACT and seek to require reductions in the emission of certain hazardous air pollutants or surrogates of hazardous air pollutants. The EPA announced the final rule on December 20, 2012 and it was subsequently published in the Federal Register on January 31, 2013 for major sources. The Company is developing plans to bring facilities affected by the Boiler MACT rule into compliance by the January 2016 regulatory deadline for major sources. The Company expects that the capital cost required to comply with the Boiler MACT rules is between $20 million and $30 million. The Company is currently assessing the associated increase in operating costs as well as alternate compliance strategies. | |||||
The EPA has agreed to reconsider a limited number of issues in the most recent Boiler MACT rule, and elements of EPA’s rule are expected to be legally challenged. At this point, these activities do not affect the Company’s compliance plans. | |||||
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 September 30, 2013 cannot be predicted with certainty, it is management’s opinion that, except as noted below, their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. | |||||
On July 31, 1998, Domtar Inc. (now a 100% owned subsidiary of Domtar Corporation) acquired all of the issued and outstanding shares of E.B. Eddy Limited and E.B. Eddy Paper, Inc. (“E.B. Eddy”), an integrated producer of specialty paper and wood products. The purchase agreement included a purchase price adjustment whereby, in the event of the acquisition by a third party of more than 50% of the shares of Domtar Inc. in specified circumstances, Domtar Inc. may be required to pay an increase in consideration of up to a maximum of $114 million (CDN $120 million), an amount gradually declining over a 25-year period. At March 7, 2007, the maximum amount of the purchase price adjustment was approximately $104 million (CDN $110 million). | |||||
On March 14, 2007, the Company received a letter from George Weston Limited (the previous owner of E.B. Eddy and a party to the purchase agreement) demanding payment of $104 million (CDN $110 million) as a result of the consummation of the series of transactions whereby the Fine Paper Business of Weyerhaeuser Company was transferred to the Company and the Company acquired Domtar Inc. (the “Transaction”). On June 12, 2007, an action was commenced by George Weston Limited against Domtar Inc. in the Superior Court of Justice of the Province of Ontario, Canada, claiming that the consummation of the Transaction triggered the purchase price adjustment and sought a purchase price adjustment of $104 million (CDN $110 million) as well as additional compensatory damages. On June 24, 2013, the parties agreed to settle this litigation with a payment by the Company to George Weston Limited of $49 million (CDN $50 million). The settlement is reflected in Other operating loss, net on the Consolidated Statements of Earnings and Comprehensive Income. | |||||
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, 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 September 30, 2013, 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 September 30, 2013, the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. | |||||
Segment_Disclosures
Segment Disclosures | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Disclosures | ' | ||||||||||||||||
NOTE 17. SEGMENT DISCLOSURES | |||||||||||||||||
Following the sale of Ariva U.S. on July 31, 2013, the Company decided to merge its Distribution segment with the Pulp and Paper segment. The Company operates in the two reportable segments described below. Each reportable segment offers different products and services and requires different manufacturing processes, technology and/or marketing strategies. The following summary briefly describes the operations included in each of the Company’s reportable segments: | |||||||||||||||||
• | Pulp and Paper Segment – comprises the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. The Company owns and operates Ariva®, a network of strategically located paper and printing and packaging supplies distribution facilities in Canada, involved in the purchasing, warehousing, sale and distribution of the Company’s paper products and those of other manufacturers. | ||||||||||||||||
• | Personal Care Segment – consists of the manufacturing, marketing and distribution of adult incontinence products, absorbent hygiene products and infant diapers. | ||||||||||||||||
An analysis and reconciliation of the Company’s reportable segment information to the respective information in the financial statements is as follows: | |||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
SEGMENT DATA | September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Sales | |||||||||||||||||
Pulp and Paper | 1,204 | 1,280 | 3,650 | 3,870 | |||||||||||||
Personal Care | 175 | 111 | 394 | 288 | |||||||||||||
Total for reportable segments | 1,379 | 1,391 | 4,044 | 4,158 | |||||||||||||
Intersegment sales – Pulp and Paper | (4 | ) | (2 | ) | (12 | ) | (3 | ) | |||||||||
Consolidated sales | 1,375 | 1,389 | 4,032 | 4,155 | |||||||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment | |||||||||||||||||
Pulp and Paper | 84 | 90 | 260 | 274 | |||||||||||||
Personal Care | 9 | 6 | 21 | 15 | |||||||||||||
Total for reportable segments | 93 | 96 | 281 | 289 | |||||||||||||
Impairment and write-down of property, plant and equipment – Pulp and Paper | — | — | 15 | 2 | |||||||||||||
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 93 | 96 | 296 | 291 | |||||||||||||
Operating income (loss) | |||||||||||||||||
Pulp and Paper | 42 | 98 | 96 | 298 | |||||||||||||
Personal Care | 11 | 12 | 34 | 32 | |||||||||||||
Corporate | (4 | ) | (1 | ) | (62 | ) | (6 | ) | |||||||||
Consolidated operating income | 49 | 109 | 68 | 324 | |||||||||||||
Interest expense, net | 21 | 20 | 67 | 109 | |||||||||||||
Earnings before income taxes and equity loss | 28 | 89 | 1 | 215 | |||||||||||||
Income tax expense (benefit) | 1 | 22 | (26 | ) | 57 | ||||||||||||
Equity loss, net of taxes | — | 1 | 1 | 5 | |||||||||||||
Net earnings | 27 | 66 | 26 | 153 | |||||||||||||
Supplemental_Guarantor_Financi
Supplemental Guarantor Financial Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||||||
Supplemental Guarantor Financial Information | ' | ||||||||||||||||||||
NOTE 18. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||||||
The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the Company’s issuance of debt securities that are fully and unconditionally guaranteed by Domtar Paper Company, LLC, a 100% owned subsidiary of the Company and the successor to the Weyerhaeuser Fine Paper Business U.S. Operations, Domtar Industries LLC (and subsidiaries, excluding Domtar Funding LLC), Ariva Distribution Inc., Domtar Delaware Investments Inc., Domtar Delaware Holdings, LLC, Domtar A.W. LLC (and subsidiary), Domtar AI Inc., Attends Healthcare Inc., EAM Corporation, Associated Hygiene Products LLC and Domtar Personal Care Absorbent Hygiene Inc., all 100% owned subsidiaries of the Company (“Guarantor Subsidiaries”), on a joint and several basis. The Guaranteed Debt will not be guaranteed by certain of Domtar Paper Company, LLC’s own 100% owned subsidiaries; including Domtar Delaware Holdings Inc., Attends Healthcare Limited and Domtar Inc., (collectively the “Non-Guarantor Subsidiaries”). The subsidiary’s guarantee may be released in certain customary circumstances, such as if the subsidiary is sold or sells all of its assets, if the subsidiary’s guarantee of the Credit Agreement is terminated or released and if the requirements for legal defeasance to discharge the indenture have been satisfied. | |||||||||||||||||||||
The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at September 30, 2013 and December 31, 2012 and the Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2013 and September 30, 2012, and the Statements of Cash Flows for the nine months ended September 30, 2013 and September 30, 2012 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,148 | 494 | (267 | ) | 1,375 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 968 | 415 | (267 | ) | 1,116 | |||||||||||||||
Depreciation and amortization | — | 69 | 24 | — | 93 | ||||||||||||||||
Selling, general and administrative | 8 | 60 | 27 | — | 95 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | — | — | — | — | ||||||||||||||||
Closure and restructuring costs | — | — | — | — | — | ||||||||||||||||
Other operating loss, net | 1 | 19 | 2 | — | 22 | ||||||||||||||||
9 | 1,116 | 468 | (267 | ) | 1,326 | ||||||||||||||||
Operating (loss) income | (9 | ) | 32 | 26 | — | 49 | |||||||||||||||
Interest expense (income), net | 23 | 5 | (7 | ) | — | 21 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (32 | ) | 27 | 33 | — | 28 | |||||||||||||||
Income tax (benefit) expense | (9 | ) | 4 | 6 | — | 1 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 50 | 27 | — | (77 | ) | — | |||||||||||||||
Net income | 27 | 50 | 27 | (77 | ) | 27 | |||||||||||||||
Other comprehensive income | 2 | 11 | 42 | — | 55 | ||||||||||||||||
Comprehensive income | 29 | 61 | 69 | (77 | ) | 82 | |||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 3,336 | 1,478 | (782 | ) | 4,032 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,819 | 1,243 | (782 | ) | 3,280 | |||||||||||||||
Depreciation and amortization | — | 204 | 77 | — | 281 | ||||||||||||||||
Selling, general and administrative | 21 | 195 | 65 | — | 281 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | 10 | — | 15 | ||||||||||||||||
Closure and restructuring costs | — | 6 | 12 | — | 18 | ||||||||||||||||
Other operating loss, net | 1 | 39 | 49 | — | 89 | ||||||||||||||||
22 | 3,268 | 1,456 | (782 | ) | 3,964 | ||||||||||||||||
Operating (loss) income | (22 | ) | 68 | 22 | — | 68 | |||||||||||||||
Interest expense (income), net | 72 | 14 | (19 | ) | — | 67 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (94 | ) | 54 | 41 | — | 1 | |||||||||||||||
Income tax (benefit) expense | (25 | ) | (21 | ) | 20 | — | (26 | ) | |||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 95 | 20 | — | (115 | ) | — | |||||||||||||||
Net earnings | 26 | 95 | 20 | (115 | ) | 26 | |||||||||||||||
Other comprehensive income (loss) | 3 | 7 | (1 | ) | — | 9 | |||||||||||||||
Comprehensive income | 29 | 102 | 19 | (115 | ) | 35 | |||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
AND COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,150 | 492 | (253 | ) | 1,389 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 937 | 416 | (253 | ) | 1,100 | |||||||||||||||
Depreciation and amortization | — | 69 | 27 | — | 96 | ||||||||||||||||
Selling, general and administrative | 6 | 58 | 16 | — | 80 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | — | — | — | — | ||||||||||||||||
Closure and restructuring costs | — | 2 | — | — | 2 | ||||||||||||||||
Other operating (loss) income, net | — | (2 | ) | 4 | — | 2 | |||||||||||||||
6 | 1,064 | 463 | (253 | ) | 1,280 | ||||||||||||||||
Operating (loss) income | (6 | ) | 86 | 29 | — | 109 | |||||||||||||||
Interest expense (income), net | 22 | 5 | (7 | ) | — | 20 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (28 | ) | 81 | 36 | — | 89 | |||||||||||||||
Income tax (benefit) expense | (9 | ) | 22 | 9 | — | 22 | |||||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 85 | 26 | — | (111 | ) | — | |||||||||||||||
Net earnings | 66 | 85 | 26 | (111 | ) | 66 | |||||||||||||||
Other comprehensive income (loss) | 3 | (5 | ) | 52 | — | 50 | |||||||||||||||
Comprehensive income | 69 | 80 | 78 | (111 | ) | 116 | |||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 3,456 | 1,448 | (749 | ) | 4,155 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,797 | 1,215 | (749 | ) | 3,263 | |||||||||||||||
Depreciation and amortization | — | 222 | 67 | — | 289 | ||||||||||||||||
Selling, general and administrative | 24 | 210 | 34 | — | 268 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 2 | — | — | 2 | ||||||||||||||||
Closure and restructuring costs | — | 2 | 1 | — | 3 | ||||||||||||||||
Other operating loss, net | — | — | 6 | — | 6 | ||||||||||||||||
24 | 3,233 | 1,323 | (749 | ) | 3,831 | ||||||||||||||||
Operating (loss) income | (24 | ) | 223 | 125 | — | 324 | |||||||||||||||
Interest expense (income), net | 114 | 14 | (19 | ) | — | 109 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (138 | ) | 209 | 144 | — | 215 | |||||||||||||||
Income tax (benefit) expense | (46 | ) | 61 | 42 | — | 57 | |||||||||||||||
Equity loss, net of taxes | — | — | 5 | — | 5 | ||||||||||||||||
Share in earnings of equity accounted investees | 245 | 97 | — | (342 | ) | — | |||||||||||||||
Net earnings | 153 | 245 | 97 | (342 | ) | 153 | |||||||||||||||
Other comprehensive income (loss) | 5 | (5 | ) | 40 | — | 40 | |||||||||||||||
Comprehensive income | 158 | 240 | 137 | (342 | ) | 193 | |||||||||||||||
September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 32 | 5 | 154 | — | 191 | ||||||||||||||||
Receivables | — | 396 | 187 | — | 583 | ||||||||||||||||
Inventories | — | 487 | 216 | — | 703 | ||||||||||||||||
Prepaid expenses | 8 | 11 | 12 | — | 31 | ||||||||||||||||
Income and other taxes receivable | 53 | — | 7 | (12 | ) | 48 | |||||||||||||||
Intercompany accounts | 454 | 3,784 | 37 | (4,275 | ) | — | |||||||||||||||
Deferred income taxes | — | 43 | 15 | — | 58 | ||||||||||||||||
Total current assets | 547 | 4,726 | 628 | (4,287 | ) | 1,614 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,927 | 3,001 | — | 8,928 | ||||||||||||||||
Accumulated depreciation | — | (3,670 | ) | (1,906 | ) | — | (5,576 | ) | |||||||||||||
Net property, plant and equipment | — | 2,257 | 1,095 | — | 3,352 | ||||||||||||||||
Goodwill | — | 296 | 71 | — | 367 | ||||||||||||||||
Intangible assets, net of amortization | — | 275 | 134 | — | 409 | ||||||||||||||||
Investments in affiliates | 7,538 | 2,039 | — | (9,577 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 79 | 652 | (737 | ) | — | |||||||||||||||
Other assets | 33 | — | 127 | (17 | ) | 143 | |||||||||||||||
Total assets | 8,124 | 9,672 | 2,707 | (14,618 | ) | 5,885 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 6 | — | — | 6 | ||||||||||||||||
Trade and other payables | 50 | 435 | 208 | — | 693 | ||||||||||||||||
Intercompany accounts | 3,795 | 413 | 67 | (4,275 | ) | — | |||||||||||||||
Income and other taxes payable | 16 | 7 | 5 | (12 | ) | 16 | |||||||||||||||
Long-term debt due within one year | — | 3 | 3 | — | 6 | ||||||||||||||||
Total current liabilities | 3,861 | 864 | 283 | (4,287 | ) | 721 | |||||||||||||||
Long-term debt | 1,084 | 5 | 13 | — | 1,102 | ||||||||||||||||
Intercompany long-term loans | 530 | 207 | — | (737 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 877 | 69 | — | 946 | ||||||||||||||||
Other liabilities and deferred credits | 14 | 181 | 257 | (17 | ) | 435 | |||||||||||||||
Shareholders’ equity | 2,635 | 7,538 | 2,085 | (9,577 | ) | 2,681 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,124 | 9,672 | 2,707 | (14,618 | ) | 5,885 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Receivables | — | 393 | 169 | — | 562 | ||||||||||||||||
Inventories | — | 472 | 203 | — | 675 | ||||||||||||||||
Prepaid expenses | 7 | 7 | 10 | — | 24 | ||||||||||||||||
Income and other taxes receivable | 34 | — | 14 | — | 48 | ||||||||||||||||
Intercompany accounts | 433 | 3,501 | 12 | (3,946 | ) | — | |||||||||||||||
Deferred income taxes | — | 30 | 17 | (2 | ) | 45 | |||||||||||||||
Total current assets | 749 | 4,475 | 739 | (3,948 | ) | 2,015 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,755 | 3,038 | — | 8,793 | ||||||||||||||||
Accumulated depreciation | — | (3,500 | ) | (1,892 | ) | — | (5,392 | ) | |||||||||||||
Net property, plant and equipment | — | 2,255 | 1,146 | — | 3,401 | ||||||||||||||||
Goodwill | — | 194 | 69 | — | 263 | ||||||||||||||||
Intangible assets, net of amortization | — | 180 | 129 | — | 309 | ||||||||||||||||
Investments in affiliates | 7,208 | 2,018 | — | (9,226 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 85 | 489 | (580 | ) | — | |||||||||||||||
Other assets | 30 | — | 119 | (14 | ) | 135 | |||||||||||||||
Total assets | 7,993 | 9,207 | 2,691 | (13,768 | ) | 6,123 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 18 | — | — | 18 | ||||||||||||||||
Trade and other payables | 43 | 380 | 223 | — | 646 | ||||||||||||||||
Intercompany accounts | 3,492 | 398 | 56 | (3,946 | ) | — | |||||||||||||||
Income and other taxes payable | 4 | 9 | 4 | (2 | ) | 15 | |||||||||||||||
Long-term debt due within one year | 47 | 27 | 5 | — | 79 | ||||||||||||||||
Total current liabilities | 3,586 | 832 | 288 | (3,948 | ) | 758 | |||||||||||||||
Long-term debt | 1,107 | 8 | 13 | — | 1,128 | ||||||||||||||||
Intercompany long-term loans | 444 | 130 | 6 | (580 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 873 | 44 | (14 | ) | 903 | |||||||||||||||
Other liabilities and deferred credits | 27 | 156 | 274 | — | 457 | ||||||||||||||||
Shareholders’ equity | 2,829 | 7,208 | 2,066 | (9,226 | ) | 2,877 | |||||||||||||||
Total liabilities and shareholders’ equity | 7,993 | 9,207 | 2,691 | (13,768 | ) | 6,123 | |||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 26 | 95 | 20 | (115 | ) | 26 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 189 | (44 | ) | 1 | 115 | 261 | |||||||||||||||
Cash flows provided from operating activities | 215 | 51 | 21 | — | 287 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (116 | ) | (64 | ) | — | (180 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment and sale of business | — | 55 | — | — | 55 | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (283 | ) | (4 | ) | — | (287 | ) | |||||||||||||
Investment in joint venture | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash flows used for investing activities | — | (344 | ) | (69 | ) | — | (413 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (50 | ) | — | — | — | (50 | ) | ||||||||||||||
Net change in bank indebtedness | — | (13 | ) | — | — | (13 | ) | ||||||||||||||
Repayment of long-term debt | (71 | ) | (25 | ) | (3 | ) | — | (99 | ) | ||||||||||||
Stock repurchase | (183 | ) | — | — | — | (183 | ) | ||||||||||||||
Increase in long-term advances to related parties | (156 | ) | — | (108 | ) | 264 | — | ||||||||||||||
Decrease in long-term advances to related parties | — | 264 | — | (264 | ) | — | |||||||||||||||
Other | 2 | — | — | — | 2 | ||||||||||||||||
Cash flows (used for) provided from financing activities | (458 | ) | 226 | (111 | ) | — | (343 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (243 | ) | (67 | ) | (159 | ) | — | (469 | ) | ||||||||||||
Translation adjustments related to cash and cash equivalents | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Cash and cash equivalents at end of period | 32 | 5 | 154 | — | 191 | ||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 153 | 245 | 97 | (342 | ) | 153 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (105 | ) | (64 | ) | 85 | 342 | 258 | ||||||||||||||
Cash flows provided from operating activities | 48 | 181 | 182 | — | 411 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (124 | ) | (47 | ) | — | (171 | ) | |||||||||||||
Acquisitions of businesses, net of cash acquired | — | (61 | ) | (232 | ) | — | (293 | ) | |||||||||||||
Investment in joint venture | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Cash flows used for investing activities | — | (185 | ) | (284 | ) | — | (469 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (42 | ) | — | — | — | (42 | ) | ||||||||||||||
Net change in bank indebtedness | — | 8 | — | — | 8 | ||||||||||||||||
Issuance of long-term debt | 548 | — | — | — | 548 | ||||||||||||||||
Repayment of long-term debt | (186 | ) | (3 | ) | (1 | ) | — | (190 | ) | ||||||||||||
Stock repurchase | (116 | ) | — | — | — | (116 | ) | ||||||||||||||
Increase in long-term advances to related parties | (42 | ) | — | (20 | ) | 62 | — | ||||||||||||||
Decrease in long-term advances to related parties | — | 62 | — | (62 | ) | — | |||||||||||||||
Other | (1 | ) | — | — | — | (1 | ) | ||||||||||||||
Cash flows provided from (used for) financing activities | 161 | 67 | (21 | ) | — | 207 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 209 | 63 | (123 | ) | — | 149 | |||||||||||||||
Cash and cash equivalents at beginning of period | 91 | 2 | 351 | — | 444 | ||||||||||||||||
Cash and cash equivalents at end of period | 300 | 65 | 228 | — | 593 | ||||||||||||||||
Sale_of_Ariva_US
Sale of Ariva U.S. | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Sale of Ariva U.S. | ' |
NOTE 19. SALE OF ARIVA U.S. | |
Ariva U.S. | |
On July 31, 2013, the Company completed the sale of its Ariva U.S. business to Central National Gottesman Inc. for net proceeds of $45 million. The sale resulted in a net loss on disposal of the Ariva U.S. business of $19 million in the third quarter of 2013 and has been recorded as a component of Other operating loss on the Consolidated Statements of Earnings and Comprehensive Income. The $19 million net loss consists of the following; $11 million of withdrawal liabilities relating to the multi-employer pension plan, $3 million of severance costs, $3 million loss on sale of net assets and $2 million relating to other provisions. The Company recorded a $5 million impairment of property, plant and equipment in the second quarter of 2013. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Comprehensive Income | ' |
COMPREHENSIVE INCOME | |
In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, an update to Comprehensive Income, which requires an entity to provide information regarding the amounts reclassified out of accumulated other comprehensive income by component. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source, and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted the new requirement on January 1, 2013 with no impact on the Company’s consolidated financial statements except for the change in presentation. | |
The Company has chosen to present the new information as a separate disclosure in the notes to the consolidated financial statements. | |
Foreign Currency Matters | ' |
FOREIGN CURRENCY MATTERS | |
In March 2013, the FASB issued ASU 2013-05, an update to Foreign Currency Matters, which indicates that a cumulative translation adjustment is attached to the parent’s investment in a foreign entity and should be released in a manner consistent with the derecognition guidance on investments in entities. Thus, the entire amount of the cumulative translation adjustment associated with the foreign entity would be released when there has been (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a step acquisition for a foreign entity. The update does not change the requirement to release a pro-rata portion of the cumulative translation adjustment of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. | |
The amendments are effective for interim and annual periods beginning after December 15, 2013 and will not have an impact on the Company’s consolidated financial statements unless one or more of the derecognition events stated above occur after the effective date. | |
Income Taxes | ' |
INCOME TAXES | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a NOL or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This accounting standard update requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The amendments are effective for interim and annual periods beginning after December 15, 2013. Other than the change in the presentation, the Company has determined these changes will not have a material impact on the consolidated financial statements. |
Acquisition_of_Businesses_Tabl
Acquisition of Businesses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Associated Hygienic Products LLC [Member] | ' | ||||||||
Fair Value of Assets Acquired | ' | ||||||||
The table below illustrates the preliminary purchase price allocation: | |||||||||
Fair value of net assets acquired at the date of acquisition | |||||||||
Receivables | 26 | ||||||||
Inventory | 29 | ||||||||
Property, plant and equipment | 99 | ||||||||
Intangible assets | |||||||||
Customer relationships (1) | 67 | ||||||||
Licence rights (2) | 29 | ||||||||
96 | |||||||||
Goodwill | 103 | ||||||||
Total assets | 353 | ||||||||
Less: Liabilities | |||||||||
Trade and other payables | 37 | ||||||||
Intangible lease liability | 13 | ||||||||
Deferred income tax liabilities | 27 | ||||||||
Total liabilities | 77 | ||||||||
Fair value of net assets acquired at the date of acquisition | 276 | ||||||||
(1) | The preliminary useful life of the Customer relationships acquired is expected to be 20 years. | ||||||||
(2) | The preliminary useful life of the License rights acquired is expected to be 12 years. | ||||||||
Xerox [Member] | ' | ||||||||
Fair Value of Assets Acquired | ' | ||||||||
The table below illustrates the purchase price allocation: | |||||||||
Inventory | 4 | ||||||||
Intangible assets (Note 11) | |||||||||
Customer relationships (1) | 1 | ||||||||
License rights (2) | 6 | ||||||||
7 | |||||||||
Total assets | 11 | ||||||||
Fair value of assets acquired at the date of acquisition | 11 | ||||||||
(1) | The useful life of the Customer relationships acquired is expected to be 20 years. | ||||||||
(2) | Indefinite useful life. |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Financial Instruments for Natural Gas Contracts Outstanding | ' | ||||||||||||||||||||||||||||
The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2013 to hedge forecasted purchases: | |||||||||||||||||||||||||||||
Commodity | Notional contractual quantity | Notional contractual value | Percentage of forecasted | ||||||||||||||||||||||||||
under derivative contracts | under derivative contracts | purchases under derivative | |||||||||||||||||||||||||||
(in millions of dollars) | contracts for | ||||||||||||||||||||||||||||
2013(2) | 2014 | 2015 | 2016 | ||||||||||||||||||||||||||
Natural gas | 21,915,000 | MMBTU | (1) | $ | 91 | 32 | % | 56 | % | 31 | % | 25 | % | ||||||||||||||||
-1 | MMBTU: Millions of British thermal units | ||||||||||||||||||||||||||||
(2) | Represents the remaining three months of 2013. | ||||||||||||||||||||||||||||
Currency Values under Contracts Pursuant to Currency Options Outstanding | ' | ||||||||||||||||||||||||||||
The following table presents the currency values under contracts pursuant to currency options outstanding as of September 30, 2013 to hedge forecasted purchases and sales: | |||||||||||||||||||||||||||||
Contract | Notional contractual value | Percentage of forecasted net exposures | |||||||||||||||||||||||||||
under contracts for | |||||||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||||||
Currency options purchased | CDN | $ | 425 | 50 | % | 37 | % | ||||||||||||||||||||||
USD | $ | 26 | 69 | % | 63 | % | |||||||||||||||||||||||
GBP | £ | 16 | 89 | % | 62 | % | |||||||||||||||||||||||
Currency options sold | CDN | $ | 425 | 50 | % | 37 | % | ||||||||||||||||||||||
USD | $ | 26 | 69 | % | 63 | % | |||||||||||||||||||||||
GBP | £ | 16 | 89 | % | 62 | % | |||||||||||||||||||||||
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 (c) below) at September 30, 2013 and December 31, 2012, in accordance with the accounting standards dealing with 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: | |||||||||||||||||||||||||||||
Derivatives designated as cash flow | September 30, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
and net investment hedging | 2013 | active markets for | observable | unobservable | |||||||||||||||||||||||||
instruments under the Derivatives and | identical assets | inputs | inputs | ||||||||||||||||||||||||||
Hedging Topic of FASB ASC: | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | — | — | — | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | — | — | — | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 6 | — | 6 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 2 | — | 2 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 10 | — | 10 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes (“ABN”) | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,206 | 1,206 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
The cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts of $4 million at September 30, 2013, will be recognized in Cost of sales upon maturity of the derivatives over the next four years at the then prevailing values, which may be different from those at September 30, 2013. | |||||||||||||||||||||||||||||
The cumulative loss recorded in Accumulated other comprehensive loss relating to currency options hedging forecasted purchases of $2 million at September 30, 2013, will be recognized in Cost of sales upon maturity of the derivatives over the next four years at the then prevailing values, which may be different from those at September 30, 2013. | |||||||||||||||||||||||||||||
Fair Value of financial instruments at: | |||||||||||||||||||||||||||||
Derivatives designated as cash flow | December 31, | Quoted prices in | Significant | Significant | Balance sheet classification | ||||||||||||||||||||||||
and net investment hedging | 2012 | active markets for | observable | unobservable | |||||||||||||||||||||||||
instruments under the Derivatives | identical assets | inputs | inputs | ||||||||||||||||||||||||||
and Hedging Topic of FASB ASC: | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Asset derivatives | |||||||||||||||||||||||||||||
Currency options | 6 | — | 6 | — | (a) Prepaid expenses | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Intangible assets and deferred charges | ||||||||||||||||||||||||
Total Assets | 7 | — | 7 | — | |||||||||||||||||||||||||
Liabilities derivatives | |||||||||||||||||||||||||||||
Currency options | 5 | — | 5 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 4 | — | 4 | — | (a) Trade and other payables | ||||||||||||||||||||||||
Natural gas swap contracts | 1 | — | 1 | — | (a) Other liabilities and deferred credits | ||||||||||||||||||||||||
Total Liabilities | 10 | — | 10 | — | |||||||||||||||||||||||||
Other Instruments: | |||||||||||||||||||||||||||||
Asset backed notes | 6 | — | 5 | 1 | (b) Other assets | ||||||||||||||||||||||||
Long-term debt | 1,360 | 1,360 | — | — | (c) Long-term debt | ||||||||||||||||||||||||
(a) | Fair value of the Company’s derivatives is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: | ||||||||||||||||||||||||||||
– | For currency options: Fair value is measured using techniques derived from the Black-Scholes pricing model. 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) | ABN is reported at fair value utilizing Level 2 or Level 3 inputs. Fair value of ABN reported under Level 2 is based on current market quotes. Fair value of ABN reported under Level 3 is based on the value of the collateral investments held in the conduit issuer, reduced by the negative value of credit default derivatives, with an additional discount applied for illiquidity. | ||||||||||||||||||||||||||||
(c) | Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The carrying value of the Company’s long-term debt is $1,108 million and $1,207 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||
Beginning and Ending Balances Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||||||
The following table reconciles the beginning and ending balances of ABN measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods: | |||||||||||||||||||||||||||||
ASSET BACKED NOTES | |||||||||||||||||||||||||||||
Balance at January 1, 2013 | 1 | ||||||||||||||||||||||||||||
Net unrealized gains included in earnings (a) | — | ||||||||||||||||||||||||||||
Transfer out of Level 3 (b) | — | ||||||||||||||||||||||||||||
Balance at September 30, 2013 | 1 | ||||||||||||||||||||||||||||
(a) | Earnings effect is primarily included in Other operating loss, net in the Consolidated Statement of Earnings and Comprehensive Income. | ||||||||||||||||||||||||||||
(b) | Transfers out of Level 3 are considered to occur at the end of the period. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation Between Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table provides the reconciliation between basic and diluted earnings per share: | |||||||||||||||||
For the three | For the nine | ||||||||||||||||
months ended | months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net earnings | $ | 27 | $ | 66 | $ | 26 | $ | 153 | |||||||||
Weighted average number of common and exchangeable shares outstanding (millions) | 32.7 | 35.7 | 33.6 | 36.3 | |||||||||||||
Effect of dilutive securities (millions) | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 32.8 | 35.8 | 33.7 | 36.4 | |||||||||||||
Basic net earnings per share (in dollars) | $0.83 | $1.85 | $0.77 | $4.21 | |||||||||||||
Diluted net earnings per share (in dollars) | $ | 0.82 | $ | 1.84 | $ | 0.77 | $ | 4.2 | |||||||||
Securities that Could Potentially Dilute Basic Earnings Per Share in Future | ' | ||||||||||||||||
The following table provides the securities that could potentially dilute basic earnings per share in the future, but were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive: | |||||||||||||||||
For the three | For the nine | ||||||||||||||||
months ended | months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Restricted stock units | — | 15,802 | — | — | |||||||||||||
Performance share units | — | 1,808 | — | — | |||||||||||||
Options | 221,892 | 177,970 | 221,892 | 84,625 | |||||||||||||
Pension_Plans_and_Other_PostRe1
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 | For the nine months ended | ||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 10 | 1 | 32 | 2 | |||||||||||||
Interest expense | 19 | 2 | 56 | 4 | |||||||||||||
Expected return on plan assets | (24 | ) | — | (72 | ) | — | |||||||||||
Amortization of net actuarial loss | 6 | — | 20 | 1 | |||||||||||||
Curtailment loss | 1 | — | 1 | — | |||||||||||||
Settlement loss (a) | — | — | 13 | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 2 | — | |||||||||||||
Net periodic benefit cost | 13 | 3 | 52 | 7 | |||||||||||||
(a) | The settlement loss of $13 million in the pension plans for the nine months ended September 30, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 12 “Closure and restructuring and liability and impairment of property, plant and equipment”). | ||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
September 30, 2012 | September 30, 2012 | ||||||||||||||||
Pension | Other | Pension | Other | ||||||||||||||
plans | post-retirement | plans | post-retirement | ||||||||||||||
benefit plans | benefit plans | ||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Service cost | 10 | — | 29 | 2 | |||||||||||||
Interest expense | 20 | 1 | 60 | 4 | |||||||||||||
Expected return on plan assets | (23 | ) | — | (69 | ) | — | |||||||||||
Amortization of net actuarial loss | 4 | 1 | 13 | 1 | |||||||||||||
Curtailment gain (b) | — | (13 | ) | — | (13 | ) | |||||||||||
Settlement loss | — | — | — | — | |||||||||||||
Amortization of prior year service costs | 1 | — | 3 | (1 | ) | ||||||||||||
Net periodic benefit cost | 12 | (11 | ) | 36 | (7 | ) | |||||||||||
(b) | The curtailment gain of $13 million in the other post-retirement benefit plans for the nine months ended September 30, 2012, is as a result of the curtailment of benefits related to the majority of employees covered by the plan. |
Other_Operating_Loss_Net_Table
Other Operating Loss, Net (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||||||
Components of Other Operating Loss | ' | ||||||||||||||||
The Company’s other operating loss, net includes the following: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Reversal of alternative fuel tax credits (Note 8) | — | — | 26 | — | |||||||||||||
Loss on sale of business (1) (Note 19) | 19 | — | 19 | — | |||||||||||||
Gain on sale of property, plant and equipment (2) | — | — | (10 | ) | — | ||||||||||||
Environmental provision | — | — | 2 | 2 | |||||||||||||
Foreign exchange loss (gain) | 1 | 1 | (1 | ) | 3 | ||||||||||||
Weston litigation (3) (Note 16) | — | — | 49 | — | |||||||||||||
Other | 2 | 1 | 4 | 1 | |||||||||||||
Other operating loss, net | 22 | 2 | 89 | 6 | |||||||||||||
(1) | On July 31, 2013, the Company completed the sale of its Ariva U.S business. The transaction closed at the end of July 2013. The Company recorded a loss on sale of business of $19 million in the third quarter of 2013 (see Note 19 “Sales of Ariva U.S.” for further information). | ||||||||||||||||
(2) | On March 22, 2013, the Company sold the building, remaining equipment and related land of the closed pulp and paper mill in Port Edwards, Wisconsin and recorded a gain on the sale of approximately $10 million. The transaction included specific machinery, equipment, furniture, parts, supplies, tools, real estate, land improvements, and other fixed or tangible assets. The assets were sold “as is” for proceeds of approximately $9 million and the environmental provision of $3 million related to these assets was contractually passed on to the buyer and released from the Company’s liabilities. The net book value of the assets sold was approximately $2 million. | ||||||||||||||||
(3) | On June 24, 2013, the parties agreed to settle the Weston litigation for a payment by Domtar to Weston of $49 million (CDN $50 million) (see Note 16 “Commitments and Contingencies” for further information). |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
The following table presents the components of inventories: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
$ | $ | ||||||||
Work in process and finished goods | 398 | 381 | |||||||
Raw materials | 118 | 112 | |||||||
Operating and maintenance supplies | 187 | 182 | |||||||
703 | 675 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Changes in Carrying Value of Goodwill | ' | ||||
The carrying value and any changes in the carrying value of goodwill are as follows: | |||||
September 30, | |||||
2013 | |||||
$ | |||||
Balance at December 31, 2012 | 263 | ||||
Acquisition of Associated Hygienic Products LLC | 103 | ||||
Effect of foreign currency exchange rate change | 1 | ||||
Balance at end of period | 367 | ||||
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Components of Intangible Assets | ' | ||||||||||||||||||||||||||||
The following table presents the components of intangible assets, net: | |||||||||||||||||||||||||||||
Estimated useful | September 30, | December 31, | |||||||||||||||||||||||||||
lives (in years) | 2013 | 2012 | |||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||||||
carrying | amortization | carrying | amortization | ||||||||||||||||||||||||||
amount | amount | ||||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||||||||||
Water rights | 40 | 8 | (1 | ) | 7 | 8 | (1 | ) | 7 | ||||||||||||||||||||
Customer relationships | 20 – 40 | 254 | (11 | ) | 243 | 186 | (9 | ) | 177 | ||||||||||||||||||||
Trade names | 7 | 7 | (6 | ) | 1 | 7 | (5 | ) | 2 | ||||||||||||||||||||
Supplier agreement | 5 | — | — | — | 6 | (6 | ) | — | |||||||||||||||||||||
Technology | 7 – 20 | 8 | (1 | ) | 7 | 8 | — | 8 | |||||||||||||||||||||
Non-Compete | 9 | 1 | — | 1 | 1 | — | 1 | ||||||||||||||||||||||
License rights | 12 | 29 | — | 29 | — | — | — | ||||||||||||||||||||||
307 | (19 | ) | 288 | 216 | (21 | ) | 195 | ||||||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||||||||
Trade names | 115 | — | 115 | 114 | — | 114 | |||||||||||||||||||||||
License rights | 6 | — | 6 | — | — | — | |||||||||||||||||||||||
Total | 428 | (19 | ) | 409 | 330 | (21 | ) | 309 | |||||||||||||||||||||
Amortization Expense Related to Intangible Assets | ' | ||||||||||||||||||||||||||||
Amortization expense for the next five years related to intangible assets is expected to be as follows: | |||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
Amortization expense related to intangible assets | 10 | 13 | 12 | 12 | 12 | ||||||||||||||||||||||||
Closure_and_Restructuring_Cost1
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||||||
Components of Closure and Restructuring Costs by Segment | ' | ||||||||||||||||
The following tables provide the components of closure and restructuring costs by segment: | |||||||||||||||||
Three months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Pulp and Paper | Personal Care | Corporate | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Severance and termination costs | — | — | — | — | |||||||||||||
Inventory obsolescence | — | — | — | — | |||||||||||||
Pension settlement and withdrawal liability | — | — | — | — | |||||||||||||
Other | — | — | — | — | |||||||||||||
Closure and restructuring costs | — | — | — | — | |||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Pulp and Paper | Personal Care | Corporate | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Severance and termination costs | (2 | ) | 2 | — | — | ||||||||||||
Inventory obsolescence | (1 | ) | — | — | (1 | ) | |||||||||||
Pension settlement and withdrawal liability | 11 | — | 6 | 17 | |||||||||||||
Other | 2 | — | — | 2 | |||||||||||||
Closure and restructuring costs | 10 | 2 | 6 | 18 | |||||||||||||
Three months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Pulp and Paper | Personal Care | Total | |||||||||||||||
$ | $ | $ | |||||||||||||||
Severance and termination costs | — | — | — | ||||||||||||||
Inventory obsolescence | — | — | — | ||||||||||||||
Pension settlement and withdrawal liability | — | — | — | ||||||||||||||
Other | 1 | 1 | 2 | ||||||||||||||
Closure and restructuring costs | 1 | 1 | 2 | ||||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Pulp and Paper | Personal Care | Total | |||||||||||||||
$ | $ | $ | |||||||||||||||
Severance and termination costs | 1 | — | 1 | ||||||||||||||
Inventory obsolescence | — | — | — | ||||||||||||||
Pension settlement and withdrawal liability | — | — | — | ||||||||||||||
Other | 1 | 1 | 2 | ||||||||||||||
Closure and restructuring costs | 2 | 1 | 3 | ||||||||||||||
Activity in Closure and Restructuring Liability | ' | ||||||||||||||||
The following table provides the activity in the closure and restructuring liability: | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
$ | |||||||||||||||||
Balance at December 31, 2012 | 10 | ||||||||||||||||
Payments | (3 | ) | |||||||||||||||
Pension provision (reflected in Accrued benefit obligation) | (3 | ) | |||||||||||||||
Balance at end of period | 4 | ||||||||||||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
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): | |||||||||||||||||||||
Net derivative | Pension | Post-retirement | Foreign | Total | |||||||||||||||||
gains (losses) | items | benefit items | currency | ||||||||||||||||||
on cash flow | items | ||||||||||||||||||||
hedges | |||||||||||||||||||||
Balance at December 31, 2012 | 5 | (326 | ) | (15 | ) | 208 | (128 | ) | |||||||||||||
Natural gas swap contracts | (2 | ) | N/A | N/A | N/A | (2 | ) | ||||||||||||||
Currency options | (3 | ) | N/A | N/A | N/A | (3 | ) | ||||||||||||||
Net investment hedge | (1 | ) | N/A | N/A | N/A | (1 | ) | ||||||||||||||
Foreign currency items | N/A | N/A | N/A | (27 | ) | (27 | ) | ||||||||||||||
Remeasurement of pension plan obligaton(2) | N/A | 19 | — | N/A | 19 | ||||||||||||||||
Total Other comprehensive (loss) income before reclassifications | (6 | ) | 19 | — | (27 | ) | (14 | ) | |||||||||||||
Amounts reclassified from Accumulated other comprehensive loss | 3 | 18 | 2 | — | 23 | ||||||||||||||||
Net current period other comprehensive (loss) income | (3 | ) | 37 | 2 | (27 | ) | 9 | ||||||||||||||
Balance at September 30, 2013 | 2 | (289 | ) | (13 | ) | 181 | (119 | ) | |||||||||||||
(1) | All amounts are after tax. | ||||||||||||||||||||
(2) | Remeasurement gains of $19 million recorded in Accumulated other comprehensive loss related to pension. | ||||||||||||||||||||
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
The following tables present reclassifications out of Accumulated other comprehensive loss: | |||||||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated | |||||||||||||||||||
comprehensive loss | Statements of Earnings | ||||||||||||||||||||
and Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Net derivative losses on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | 1 | 3 | Cost of Sales | ||||||||||||||||||
Currency options | 2 | — | Cost of Sales | ||||||||||||||||||
Total before tax | 3 | 3 | |||||||||||||||||||
Tax benefit | (1 | ) | (1 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 2 | 2 | |||||||||||||||||||
Amortization of defined benefit pension plans | |||||||||||||||||||||
Net actuarial loss (gain) | 7 | (8 | )(a) | ||||||||||||||||||
Prior service cost | 1 | 1 | (a) | ||||||||||||||||||
Total before tax | 8 | (7 | ) | ||||||||||||||||||
Tax benefit | (9 | ) | (3 | ) | Income tax benefit | ||||||||||||||||
Net of tax | (1 | ) | (10 | ) | |||||||||||||||||
Details of Accumulated other | Amount reclassified from | Affected line item in the | |||||||||||||||||||
comprehensive loss components | Accumulated other | Consolidated | |||||||||||||||||||
comprehensive loss | Statements of Earnings | ||||||||||||||||||||
and Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
For the nine months ended | |||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Net derivative losses on cash flow hedges | |||||||||||||||||||||
Natural gas swap contracts | 3 | 9 | Cost of Sales | ||||||||||||||||||
Currency options | 2 | 2 | Cost of Sales | ||||||||||||||||||
Total before tax | 5 | 11 | |||||||||||||||||||
Tax benefit | (2 | ) | (4 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 3 | 7 | |||||||||||||||||||
Amortization of defined benefit pension plans | |||||||||||||||||||||
Net actuarial loss | 35 | 1 | (a) | ||||||||||||||||||
Prior service cost | 2 | 2 | (a) | ||||||||||||||||||
Total before tax | 37 | 3 | |||||||||||||||||||
Tax benefit | (17 | ) | (3 | ) | Income tax benefit | ||||||||||||||||
Net of tax | 20 | — | |||||||||||||||||||
(a) | These Accumulated other comprehensive loss components are included in the computation of net periodic benefit cost for pension and other post-retirement benefit plans as amortization of net actuarial loss, curtailment loss and settlement loss. Refer to Note 6 for additional details. | ||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Changes in Reserve for Environmental Remediation and Asset Retirement Obligations | ' | ||||
The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: | |||||
September 30, | |||||
2013 | |||||
$ | |||||
Balance at beginning of period | 83 | ||||
Additions | 1 | ||||
Sale of closed facility | (3 | ) | |||
Environmental spending | (4 | ) | |||
Effect of foreign currency exchange rate change | (2 | ) | |||
Balance at end of period | 75 | ||||
Segment_Disclosures_Tables
Segment Disclosures (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Analysis and Reconciliation of Segment Information | ' | ||||||||||||||||
An analysis and reconciliation of the Company’s reportable segment information to the respective information in the financial statements is as follows: | |||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||
SEGMENT DATA | September 30, | September 30, | September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Sales | |||||||||||||||||
Pulp and Paper | 1,204 | 1,280 | 3,650 | 3,870 | |||||||||||||
Personal Care | 175 | 111 | 394 | 288 | |||||||||||||
Total for reportable segments | 1,379 | 1,391 | 4,044 | 4,158 | |||||||||||||
Intersegment sales – Pulp and Paper | (4 | ) | (2 | ) | (12 | ) | (3 | ) | |||||||||
Consolidated sales | 1,375 | 1,389 | 4,032 | 4,155 | |||||||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment | |||||||||||||||||
Pulp and Paper | 84 | 90 | 260 | 274 | |||||||||||||
Personal Care | 9 | 6 | 21 | 15 | |||||||||||||
Total for reportable segments | 93 | 96 | 281 | 289 | |||||||||||||
Impairment and write-down of property, plant and equipment – Pulp and Paper | — | — | 15 | 2 | |||||||||||||
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 93 | 96 | 296 | 291 | |||||||||||||
Operating income (loss) | |||||||||||||||||
Pulp and Paper | 42 | 98 | 96 | 298 | |||||||||||||
Personal Care | 11 | 12 | 34 | 32 | |||||||||||||
Corporate | (4 | ) | (1 | ) | (62 | ) | (6 | ) | |||||||||
Consolidated operating income | 49 | 109 | 68 | 324 | |||||||||||||
Interest expense, net | 21 | 20 | 67 | 109 | |||||||||||||
Earnings before income taxes and equity loss | 28 | 89 | 1 | 215 | |||||||||||||
Income tax expense (benefit) | 1 | 22 | (26 | ) | 57 | ||||||||||||
Equity loss, net of taxes | — | 1 | 1 | 5 | |||||||||||||
Net earnings | 27 | 66 | 26 | 153 | |||||||||||||
Supplemental_Guarantor_Financi1
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Earnings and Comprehensive Income | ' | ||||||||||||||||||||
The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. | |||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,148 | 494 | (267 | ) | 1,375 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 968 | 415 | (267 | ) | 1,116 | |||||||||||||||
Depreciation and amortization | — | 69 | 24 | — | 93 | ||||||||||||||||
Selling, general and administrative | 8 | 60 | 27 | — | 95 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | — | — | — | — | ||||||||||||||||
Closure and restructuring costs | — | — | — | — | — | ||||||||||||||||
Other operating loss, net | 1 | 19 | 2 | — | 22 | ||||||||||||||||
9 | 1,116 | 468 | (267 | ) | 1,326 | ||||||||||||||||
Operating (loss) income | (9 | ) | 32 | 26 | — | 49 | |||||||||||||||
Interest expense (income), net | 23 | 5 | (7 | ) | — | 21 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (32 | ) | 27 | 33 | — | 28 | |||||||||||||||
Income tax (benefit) expense | (9 | ) | 4 | 6 | — | 1 | |||||||||||||||
Equity loss, net of taxes | — | — | — | — | — | ||||||||||||||||
Share in earnings of equity accounted investees | 50 | 27 | — | (77 | ) | — | |||||||||||||||
Net income | 27 | 50 | 27 | (77 | ) | 27 | |||||||||||||||
Other comprehensive income | 2 | 11 | 42 | — | 55 | ||||||||||||||||
Comprehensive income | 29 | 61 | 69 | (77 | ) | 82 | |||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 3,336 | 1,478 | (782 | ) | 4,032 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,819 | 1,243 | (782 | ) | 3,280 | |||||||||||||||
Depreciation and amortization | — | 204 | 77 | — | 281 | ||||||||||||||||
Selling, general and administrative | 21 | 195 | 65 | — | 281 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 5 | 10 | — | 15 | ||||||||||||||||
Closure and restructuring costs | — | 6 | 12 | — | 18 | ||||||||||||||||
Other operating loss, net | 1 | 39 | 49 | — | 89 | ||||||||||||||||
22 | 3,268 | 1,456 | (782 | ) | 3,964 | ||||||||||||||||
Operating (loss) income | (22 | ) | 68 | 22 | — | 68 | |||||||||||||||
Interest expense (income), net | 72 | 14 | (19 | ) | — | 67 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (94 | ) | 54 | 41 | — | 1 | |||||||||||||||
Income tax (benefit) expense | (25 | ) | (21 | ) | 20 | — | (26 | ) | |||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 95 | 20 | — | (115 | ) | — | |||||||||||||||
Net earnings | 26 | 95 | 20 | (115 | ) | 26 | |||||||||||||||
Other comprehensive income (loss) | 3 | 7 | (1 | ) | — | 9 | |||||||||||||||
Comprehensive income | 29 | 102 | 19 | (115 | ) | 35 | |||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
AND COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 1,150 | 492 | (253 | ) | 1,389 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 937 | 416 | (253 | ) | 1,100 | |||||||||||||||
Depreciation and amortization | — | 69 | 27 | — | 96 | ||||||||||||||||
Selling, general and administrative | 6 | 58 | 16 | — | 80 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | — | — | — | — | ||||||||||||||||
Closure and restructuring costs | — | 2 | — | — | 2 | ||||||||||||||||
Other operating (loss) income, net | — | (2 | ) | 4 | — | 2 | |||||||||||||||
6 | 1,064 | 463 | (253 | ) | 1,280 | ||||||||||||||||
Operating (loss) income | (6 | ) | 86 | 29 | — | 109 | |||||||||||||||
Interest expense (income), net | 22 | 5 | (7 | ) | — | 20 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (28 | ) | 81 | 36 | — | 89 | |||||||||||||||
Income tax (benefit) expense | (9 | ) | 22 | 9 | — | 22 | |||||||||||||||
Equity loss, net of taxes | — | — | 1 | — | 1 | ||||||||||||||||
Share in earnings of equity accounted investees | 85 | 26 | — | (111 | ) | — | |||||||||||||||
Net earnings | 66 | 85 | 26 | (111 | ) | 66 | |||||||||||||||
Other comprehensive income (loss) | 3 | (5 | ) | 52 | — | 50 | |||||||||||||||
Comprehensive income | 69 | 80 | 78 | (111 | ) | 116 | |||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF EARNINGS AND | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
COMPREHENSIVE INCOME | Subsidiaries | Guarantor | Adjustments | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Sales | — | 3,456 | 1,448 | (749 | ) | 4,155 | |||||||||||||||
Operating expenses | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,797 | 1,215 | (749 | ) | 3,263 | |||||||||||||||
Depreciation and amortization | — | 222 | 67 | — | 289 | ||||||||||||||||
Selling, general and administrative | 24 | 210 | 34 | — | 268 | ||||||||||||||||
Impairment and write-down of property, plant and equipment | — | 2 | — | — | 2 | ||||||||||||||||
Closure and restructuring costs | — | 2 | 1 | — | 3 | ||||||||||||||||
Other operating loss, net | — | — | 6 | — | 6 | ||||||||||||||||
24 | 3,233 | 1,323 | (749 | ) | 3,831 | ||||||||||||||||
Operating (loss) income | (24 | ) | 223 | 125 | — | 324 | |||||||||||||||
Interest expense (income), net | 114 | 14 | (19 | ) | — | 109 | |||||||||||||||
(Loss) earnings before income taxes and equity loss | (138 | ) | 209 | 144 | — | 215 | |||||||||||||||
Income tax (benefit) expense | (46 | ) | 61 | 42 | — | 57 | |||||||||||||||
Equity loss, net of taxes | — | — | 5 | — | 5 | ||||||||||||||||
Share in earnings of equity accounted investees | 245 | 97 | — | (342 | ) | — | |||||||||||||||
Net earnings | 153 | 245 | 97 | (342 | ) | 153 | |||||||||||||||
Other comprehensive income (loss) | 5 | (5 | ) | 40 | — | 40 | |||||||||||||||
Comprehensive income | 158 | 240 | 137 | (342 | ) | 193 | |||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 32 | 5 | 154 | — | 191 | ||||||||||||||||
Receivables | — | 396 | 187 | — | 583 | ||||||||||||||||
Inventories | — | 487 | 216 | — | 703 | ||||||||||||||||
Prepaid expenses | 8 | 11 | 12 | — | 31 | ||||||||||||||||
Income and other taxes receivable | 53 | — | 7 | (12 | ) | 48 | |||||||||||||||
Intercompany accounts | 454 | 3,784 | 37 | (4,275 | ) | — | |||||||||||||||
Deferred income taxes | — | 43 | 15 | — | 58 | ||||||||||||||||
Total current assets | 547 | 4,726 | 628 | (4,287 | ) | 1,614 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,927 | 3,001 | — | 8,928 | ||||||||||||||||
Accumulated depreciation | — | (3,670 | ) | (1,906 | ) | — | (5,576 | ) | |||||||||||||
Net property, plant and equipment | — | 2,257 | 1,095 | — | 3,352 | ||||||||||||||||
Goodwill | — | 296 | 71 | — | 367 | ||||||||||||||||
Intangible assets, net of amortization | — | 275 | 134 | — | 409 | ||||||||||||||||
Investments in affiliates | 7,538 | 2,039 | — | (9,577 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 79 | 652 | (737 | ) | — | |||||||||||||||
Other assets | 33 | — | 127 | (17 | ) | 143 | |||||||||||||||
Total assets | 8,124 | 9,672 | 2,707 | (14,618 | ) | 5,885 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 6 | — | — | 6 | ||||||||||||||||
Trade and other payables | 50 | 435 | 208 | — | 693 | ||||||||||||||||
Intercompany accounts | 3,795 | 413 | 67 | (4,275 | ) | — | |||||||||||||||
Income and other taxes payable | 16 | 7 | 5 | (12 | ) | 16 | |||||||||||||||
Long-term debt due within one year | — | 3 | 3 | — | 6 | ||||||||||||||||
Total current liabilities | 3,861 | 864 | 283 | (4,287 | ) | 721 | |||||||||||||||
Long-term debt | 1,084 | 5 | 13 | — | 1,102 | ||||||||||||||||
Intercompany long-term loans | 530 | 207 | — | (737 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 877 | 69 | — | 946 | ||||||||||||||||
Other liabilities and deferred credits | 14 | 181 | 257 | (17 | ) | 435 | |||||||||||||||
Shareholders’ equity | 2,635 | 7,538 | 2,085 | (9,577 | ) | 2,681 | |||||||||||||||
Total liabilities and shareholders’ equity | 8,124 | 9,672 | 2,707 | (14,618 | ) | 5,885 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Receivables | — | 393 | 169 | — | 562 | ||||||||||||||||
Inventories | — | 472 | 203 | — | 675 | ||||||||||||||||
Prepaid expenses | 7 | 7 | 10 | — | 24 | ||||||||||||||||
Income and other taxes receivable | 34 | — | 14 | — | 48 | ||||||||||||||||
Intercompany accounts | 433 | 3,501 | 12 | (3,946 | ) | — | |||||||||||||||
Deferred income taxes | — | 30 | 17 | (2 | ) | 45 | |||||||||||||||
Total current assets | 749 | 4,475 | 739 | (3,948 | ) | 2,015 | |||||||||||||||
Property, plant and equipment, at cost | — | 5,755 | 3,038 | — | 8,793 | ||||||||||||||||
Accumulated depreciation | — | (3,500 | ) | (1,892 | ) | — | (5,392 | ) | |||||||||||||
Net property, plant and equipment | — | 2,255 | 1,146 | — | 3,401 | ||||||||||||||||
Goodwill | — | 194 | 69 | — | 263 | ||||||||||||||||
Intangible assets, net of amortization | — | 180 | 129 | — | 309 | ||||||||||||||||
Investments in affiliates | 7,208 | 2,018 | — | (9,226 | ) | — | |||||||||||||||
Intercompany long-term advances | 6 | 85 | 489 | (580 | ) | — | |||||||||||||||
Other assets | 30 | — | 119 | (14 | ) | 135 | |||||||||||||||
Total assets | 7,993 | 9,207 | 2,691 | (13,768 | ) | 6,123 | |||||||||||||||
Liabilities and shareholders’ equity | |||||||||||||||||||||
Current liabilities | |||||||||||||||||||||
Bank indebtedness | — | 18 | — | — | 18 | ||||||||||||||||
Trade and other payables | 43 | 380 | 223 | — | 646 | ||||||||||||||||
Intercompany accounts | 3,492 | 398 | 56 | (3,946 | ) | — | |||||||||||||||
Income and other taxes payable | 4 | 9 | 4 | (2 | ) | 15 | |||||||||||||||
Long-term debt due within one year | 47 | 27 | 5 | — | 79 | ||||||||||||||||
Total current liabilities | 3,586 | 832 | 288 | (3,948 | ) | 758 | |||||||||||||||
Long-term debt | 1,107 | 8 | 13 | — | 1,128 | ||||||||||||||||
Intercompany long-term loans | 444 | 130 | 6 | (580 | ) | — | |||||||||||||||
Deferred income taxes and other | — | 873 | 44 | (14 | ) | 903 | |||||||||||||||
Other liabilities and deferred credits | 27 | 156 | 274 | — | 457 | ||||||||||||||||
Shareholders’ equity | 2,829 | 7,208 | 2,066 | (9,226 | ) | 2,877 | |||||||||||||||
Total liabilities and shareholders’ equity | 7,993 | 9,207 | 2,691 | (13,768 | ) | 6,123 | |||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 26 | 95 | 20 | (115 | ) | 26 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 189 | (44 | ) | 1 | 115 | 261 | |||||||||||||||
Cash flows provided from operating activities | 215 | 51 | 21 | — | 287 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (116 | ) | (64 | ) | — | (180 | ) | |||||||||||||
Proceeds from disposals of property, plant and equipment and sale of business | — | 55 | — | — | 55 | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (283 | ) | (4 | ) | — | (287 | ) | |||||||||||||
Investment in joint venture | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash flows used for investing activities | — | (344 | ) | (69 | ) | — | (413 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (50 | ) | — | — | — | (50 | ) | ||||||||||||||
Net change in bank indebtedness | — | (13 | ) | — | — | (13 | ) | ||||||||||||||
Repayment of long-term debt | (71 | ) | (25 | ) | (3 | ) | — | (99 | ) | ||||||||||||
Stock repurchase | (183 | ) | — | — | — | (183 | ) | ||||||||||||||
Increase in long-term advances to related parties | (156 | ) | — | (108 | ) | 264 | — | ||||||||||||||
Decrease in long-term advances to related parties | — | 264 | — | (264 | ) | — | |||||||||||||||
Other | 2 | — | — | — | 2 | ||||||||||||||||
Cash flows (used for) provided from financing activities | (458 | ) | 226 | (111 | ) | — | (343 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (243 | ) | (67 | ) | (159 | ) | — | (469 | ) | ||||||||||||
Translation adjustments related to cash and cash equivalents | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 275 | 72 | 314 | — | 661 | ||||||||||||||||
Cash and cash equivalents at end of period | 32 | 5 | 154 | — | 191 | ||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | Parent | Guarantor | Non- | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Guarantor | Adjustments | |||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Operating activities | |||||||||||||||||||||
Net earnings | 153 | 245 | 97 | (342 | ) | 153 | |||||||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (105 | ) | (64 | ) | 85 | 342 | 258 | ||||||||||||||
Cash flows provided from operating activities | 48 | 181 | 182 | — | 411 | ||||||||||||||||
Investing activities | |||||||||||||||||||||
Additions to property, plant and equipment | — | (124 | ) | (47 | ) | — | (171 | ) | |||||||||||||
Acquisitions of businesses, net of cash acquired | — | (61 | ) | (232 | ) | — | (293 | ) | |||||||||||||
Investment in joint venture | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Cash flows used for investing activities | — | (185 | ) | (284 | ) | — | (469 | ) | |||||||||||||
Financing activities | |||||||||||||||||||||
Dividend payments | (42 | ) | — | — | — | (42 | ) | ||||||||||||||
Net change in bank indebtedness | — | 8 | — | — | 8 | ||||||||||||||||
Issuance of long-term debt | 548 | — | — | — | 548 | ||||||||||||||||
Repayment of long-term debt | (186 | ) | (3 | ) | (1 | ) | — | (190 | ) | ||||||||||||
Stock repurchase | (116 | ) | — | — | — | (116 | ) | ||||||||||||||
Increase in long-term advances to related parties | (42 | ) | — | (20 | ) | 62 | — | ||||||||||||||
Decrease in long-term advances to related parties | — | 62 | — | (62 | ) | — | |||||||||||||||
Other | (1 | ) | — | — | — | (1 | ) | ||||||||||||||
Cash flows provided from (used for) financing activities | 161 | 67 | (21 | ) | — | 207 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 209 | 63 | (123 | ) | — | 149 | |||||||||||||||
Cash and cash equivalents at beginning of period | 91 | 2 | 351 | — | 444 | ||||||||||||||||
Cash and cash equivalents at end of period | 300 | 65 | 228 | — | 593 | ||||||||||||||||
Acquisition_of_Businesses_Addi
Acquisition of Businesses - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jul. 31, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 |
Xerox [Member] | Associated Hygienic Products LLC [Member] | Associated Hygienic Products LLC [Member] | Associated Hygienic Products LLC [Member] | Associated Hygienic Products LLC [Member] | |||
Employees | Delaware, OH [Member] | Waco, TX [Member] | |||||
Facility | sqft | sqft | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Acquisition percentage | ' | ' | ' | ' | 100.00% | ' | ' |
Acquisition completion date | ' | ' | 1-Jun-13 | 1-Jul-13 | ' | ' | ' |
Acquisition of business, number of employees | ' | ' | ' | 599 | ' | ' | ' |
Area of manufacturing facility | ' | ' | ' | ' | ' | 376,500 | 312,500 |
Purchase price | $287 | $293 | ' | $276 | ' | ' | ' |
Cash acquired in acquisition | ' | ' | ' | 2 | ' | ' | ' |
Number of facilities | ' | ' | ' | 2 | ' | ' | ' |
Cash portion of purchase price | ' | ' | $7 | ' | ' | ' | ' |
Acquisition_of_Businesses_Fair
Acquisition of Businesses - Fair Value of Assets Acquired (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 02, 2013 | Jul. 02, 2013 | Jul. 02, 2013 | Jun. 01, 2013 | Jun. 01, 2013 | Jun. 01, 2013 |
In Millions, unless otherwise specified | Associated Hygienic Products LLC [Member] | Associated Hygienic Products LLC [Member] | Associated Hygienic Products LLC [Member] | Xerox [Member] | Xerox [Member] | Xerox [Member] | ||
License rights [Member] | Customer relationships [Member] | License rights [Member] | Customer relationships [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables | ' | ' | $26 | ' | ' | ' | ' | ' |
Inventory | ' | ' | 29 | ' | ' | 4 | ' | ' |
Property, plant and equipment | ' | ' | 99 | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | 96 | 29 | 67 | 7 | 6 | 1 |
Goodwill | 367 | 263 | 103 | ' | ' | ' | ' | ' |
Total assets | ' | ' | 353 | ' | ' | 11 | ' | ' |
Less: Liabilities | ' | ' | ' | ' | ' | ' | ' | ' |
Trade and other payables | ' | ' | 37 | ' | ' | ' | ' | ' |
Intangible lease liability | ' | ' | 13 | ' | ' | ' | ' | ' |
Deferred income tax liabilities | ' | ' | 27 | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | 77 | ' | ' | ' | ' | ' |
Fair value of assets acquired at the date of acquisition | ' | ' | $276 | ' | ' | $11 | ' | ' |
Acquisition_of_Businesses_Fair1
Acquisition of Businesses - Fair Value of Assets Acquired (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Customer relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Preliminary useful life of the finite lived intangible assets acquired (in years) | '20 years |
License rights [Member] | ' |
Business Acquisition [Line Items] | ' |
Preliminary useful life of the finite lived intangible assets acquired (in years) | '12 years |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
USD ($) | USD ($) | Forecasted natural gas and oil purchases [Member] | Foreign currency investment [Member] | Foreign exchange currency option contracts [Member] | Foreign exchange currency option contracts [Member] | Natural gas derivative contracts [Member] | Natural gas derivative contracts [Member] | Natural gas derivative contracts [Member] | Natural gas derivative contracts [Member] | Currency options [Member] | Currency options [Member] | Currency options [Member] | Currency options [Member] | |
Customer | Customer | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of receivables a single customer represents | 13.00% | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major customers | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from major customers | $76 | $64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of time current hedges cover | ' | ' | '51 months | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings hedge ineffectiveness | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Length of time current foreign currency hedges cover, in months | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment hedge, notional amount | ' | ' | ' | ' | 142 | 105 | 91 | ' | 91 | ' | ' | ' | ' | ' |
Loss recognized in accumulated other comprehensive loss on derivatives (effective portion) | ($119) | ($128) | ' | ' | ' | ' | $4 | ' | $4 | ' | $1 | ' | $1 | ' |
Recognition of AOCI in cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | '12 months | ' |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) (Natural gas derivative contracts [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
MMBTU | |
Natural gas derivative contracts [Member] | ' |
Derivative [Line Items] | ' |
Notional contractual quantity under derivative contracts | 21,915,000 |
Notional contractual value under derivative contracts | $91 |
Percentage of forecasted purchases under derivative contracts for 2013 | 32.00% |
Percentage of forecasted purchases under derivative contracts for 2014 | 56.00% |
Percentage of forecasted purchases under derivative contracts for 2015 | 31.00% |
Percentage of forecasted purchases under derivative contracts for 2016 | 25.00% |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Contracts Pursuant to Currency Options Outstanding (Detail) (Long [Member]) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options purchased [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] | Currency options sold [Member] |
USD ($) | CAD | GBP (£) | CDN denominated forecasts for 2014 [Member] | USD denominated forecasts for 2014 [Member] | GBP denominated forecasts for 2014 [Member] | CDN denominated forecasts for 2013 [Member] | USD denominated forecasts for 2013 [Member] | GBP denominated forecasts for 2013 [Member] | USD ($) | CAD | GBP (£) | CDN denominated forecasts for 2014 [Member] | USD denominated forecasts for 2014 [Member] | GBP denominated forecasts for 2014 [Member] | CDN denominated forecasts for 2013 [Member] | USD denominated forecasts for 2013 [Member] | GBP denominated forecasts for 2013 [Member] | |
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional contractual value | $26 | 425 | £ 16 | ' | ' | ' | ' | ' | ' | $26 | 425 | £ 16 | ' | ' | ' | ' | ' | ' |
Percentage of forecasted net exposures under contracts | ' | ' | ' | 37.00% | 63.00% | 62.00% | 50.00% | 69.00% | 89.00% | ' | ' | ' | 37.00% | 63.00% | 62.00% | 50.00% | 69.00% | 89.00% |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Total Assets | $6 | $7 |
Total Liabilities | 10 | 10 |
Long-term debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | 1,206 | 1,360 |
Currency options [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 6 | 6 |
Currency options [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 6 | 5 |
Natural gas swap contracts [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Natural gas swap contracts [Member] | Intangible assets and deferred charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | 1 |
Natural gas swap contracts [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 2 | 4 |
Natural gas swap contracts [Member] | Other liabilities and deferred credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 2 | 1 |
Commercial paper [Member] | Other assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | 6 | 6 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Long-term debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | 1,206 | 1,360 |
Fair Value, Inputs, Level 1 [Member] | Currency options [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Currency options [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Natural gas swap contracts [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Natural gas swap contracts [Member] | Intangible assets and deferred charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Natural gas swap contracts [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Natural gas swap contracts [Member] | Other liabilities and deferred credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Commercial paper [Member] | Other assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 6 | 7 |
Total Liabilities | 10 | 10 |
Fair Value, Inputs, Level 2 [Member] | Long-term debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Currency options [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | 6 | 6 |
Fair Value, Inputs, Level 2 [Member] | Currency options [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 6 | 5 |
Fair Value, Inputs, Level 2 [Member] | Natural gas swap contracts [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Natural gas swap contracts [Member] | Intangible assets and deferred charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | 1 |
Fair Value, Inputs, Level 2 [Member] | Natural gas swap contracts [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 2 | 4 |
Fair Value, Inputs, Level 2 [Member] | Natural gas swap contracts [Member] | Other liabilities and deferred credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | 2 | 1 |
Fair Value, Inputs, Level 2 [Member] | Commercial paper [Member] | Other assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | 5 | 5 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Long-term debt [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Long-term debt | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Currency options [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Currency options [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Natural gas swap contracts [Member] | Prepaid expenses [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Natural gas swap contracts [Member] | Intangible assets and deferred charges [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Assets | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Natural gas swap contracts [Member] | Trade and other payables [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Natural gas swap contracts [Member] | Other liabilities and deferred credits [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Total Liabilities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Commercial paper [Member] | Other assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Asset backed notes | $1 | $1 |
Derivatives_and_Hedging_Activi6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
The carrying value of the Company's long-term debt | $1,108 | $1,207 |
Derivatives_and_Hedging_Activi7
Derivatives and Hedging Activities and Fair Value Measurement - Beginning and Ending Balances Measured at Fair Value on Recurring Basis (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Balance | $1 |
Net unrealized gains included in earnings | ' |
Transfer out of Level 3 | ' |
Balance | $1 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation Between Basic and Diluted Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net earnings | $27 | $66 | $26 | $153 |
Weighted average number of common and exchangeable shares outstanding (millions) | 32.7 | 35.7 | 33.6 | 36.3 |
Effect of dilutive securities (millions) | 0.1 | 0.1 | 0.1 | 0.1 |
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 32.8 | 35.8 | 33.7 | 36.4 |
Basic net earnings per share (in dollars) | $0.83 | $1.85 | $0.77 | $4.21 |
Diluted net earnings per share (in dollars) | $0.82 | $1.84 | $0.77 | $4.20 |
Earnings_Per_Share_Securities_
Earnings Per Share - Securities that Could Potentially Dilute Basic Earnings (Loss) Per Share in Future (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restricted stock units (RSUs) [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | ' | 15,802 | ' | ' |
Performance share units [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | ' | 1,808 | ' | ' |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share amount | 221,892 | 177,970 | 221,892 | 84,625 |
Pension_Plans_and_Other_PostRe2
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Pension expense | $6 | $4 | $22 | $19 |
Pension plans [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Plan contributions | 17 | 10 | 31 | 29 |
Other post-retirement benefit plans [Member] | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' | ' | ' | ' |
Plan contributions | $2 | $2 | $5 | $6 |
Pension_Plans_and_Other_PostRe3
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 $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension plans [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Service cost | $10 | ' | $10 | $32 | $29 |
Interest expense | 19 | ' | 20 | 56 | 60 |
Expected return on plan assets | -24 | ' | -23 | -72 | -69 |
Amortization of net actuarial loss | 6 | ' | 4 | 20 | 13 |
Curtailment (gain) loss | 1 | ' | ' | 1 | ' |
Settlement loss | ' | 13 | ' | 13 | ' |
Amortization of prior year service costs | 1 | ' | 1 | 2 | 3 |
Net periodic benefit cost | 13 | ' | 12 | 52 | 36 |
Other post-retirement benefit plans [Member] | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Service cost | 1 | ' | ' | 2 | 2 |
Interest expense | 2 | ' | 1 | 4 | 4 |
Amortization of net actuarial loss | ' | ' | 1 | 1 | 1 |
Curtailment (gain) loss | ' | ' | -13 | ' | -13 |
Amortization of prior year service costs | ' | ' | ' | ' | -1 |
Net periodic benefit cost | $3 | ' | ($11) | $7 | ($7) |
Pension_Plans_and_Other_PostRe4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 |
Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Other post-retirement benefit plans [Member] | Other post-retirement benefit plans [Member] | |
Big River [Member] | Big River [Member] | Dryden [Member] | Dryden [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement loss | ' | $13 | $13 | $6 | $6 | $7 | $7 | ' | ' |
Curtailment (gain) loss | $1 | ' | $1 | ' | ' | ' | ' | ($13) | ($13) |
Other_Operating_Loss_Net_Compo
Other Operating Loss, Net - Components of Other Operating Loss (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | |
Other Income And Expenses [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of alternative fuel tax credits | ' | ' | ' | ' | ' | ' | ' | $26 | ' | ' |
Loss on sale of business | ' | ' | -10 | 19 | ' | ' | ' | 19 | ' | ' |
Gain on sale of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' |
Environmental provision | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 |
Foreign exchange loss (gain) | ' | ' | ' | 1 | 1 | ' | ' | -1 | ' | 3 |
Weston litigation | -49 | -50 | ' | ' | ' | 49 | 50 | 49 | 50 | ' |
Other | ' | ' | ' | 2 | 1 | ' | ' | 4 | ' | 1 |
Other operating loss, net | ' | ' | ' | $22 | $2 | ' | ' | $89 | ' | $6 |
Other_Operating_Loss_Net_Compo1
Other Operating Loss, Net - Components of Other Operating Loss (Parenthetical) (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Mar. 22, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 |
USD ($) | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | Ariva U.S. [Member] | |
USD ($) | |||||||||
Component Of Other Income And Expense [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of assets | ' | ' | $10 | ($19) | ' | ' | ($19) | ' | $19 |
Assets sold | ' | ' | 9 | ' | ' | ' | ' | ' | ' |
Sale of environmental provision | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Net book value of assets | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Litigation settlement paid | $49 | 50 | ' | ' | ($49) | -50 | ($49) | -50 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
USD ($) | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | Cellulosic Biofuel Producer Credits [Member] | |
USD ($) | ||||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax (benefit) expense | ' | ' | $1 | $22 | ' | ' | ($26) | ' | $57 | ' |
Current tax expense (benefit) | ' | ' | 10 | 17 | ' | ' | -17 | ' | 44 | ' |
Deferred tax expense (benefit) | ' | ' | -9 | 5 | ' | ' | -9 | ' | 13 | ' |
Income tax refunds, net of payments | ' | ' | 1 | ' | ' | ' | 8 | ' | -60 | ' |
Effective income tax rate | ' | ' | 4.00% | 25.00% | ' | ' | ' | ' | 27.00% | ' |
Alternative Fuel Tax Credits | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' |
Income tax credits before tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 |
Income tax credits after-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33 |
Litigation settlement paid | -49 | -50 | ' | ' | 49 | 50 | 49 | 50 | ' | ' |
Non-deductible litigation settlement payments for income tax | ' | ' | ' | ' | ' | ' | 38 | 39 | ' | ' |
Reduced unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 |
Accrued interest associated with unrecognized tax benefits | ' | ' | $5 | ' | ' | ' | $5 | ' | ' | ' |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Work in process and finished goods | $398 | $381 |
Raw materials | 118 | 112 |
Operating and maintenance supplies | 187 | 182 |
Total inventories | $703 | $675 |
Goodwill_Changes_in_Carrying_V
Goodwill - Changes in Carrying Value of Goodwill (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Balance at December 31, 2012 | $263 |
Acquisition | 103 |
Effect of foreign currency exchange rate change | 1 |
Balance at end of period | $367 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (Pulp and Paper [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pulp and Paper [Member] | ' | ' |
Impairment Charges [Line Items] | ' | ' |
Accumulated impairment loss | $321 | $321 |
Intangible_Assets_Net_Componen
Intangible Assets, Net - Components of Intangible Assets (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, gross | $307 | $216 |
Total, Gross carrying amount | 428 | 330 |
Accumulated amortization | -19 | -21 |
Intangible assets, Net | 288 | 195 |
Intangible assets, Net | 409 | 309 |
Trade names [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | 115 | 114 |
Intangible assets not subject to amortization, Net | 115 | 114 |
License rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets not subject to amortization | 6 | ' |
Intangible assets not subject to amortization, Net | 6 | ' |
Water rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '40 years | ' |
Intangible assets, gross | 8 | 8 |
Accumulated amortization | -1 | -1 |
Intangible assets, Net | 7 | 7 |
Customer relationships [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '20 years | ' |
Intangible assets, gross | 254 | 186 |
Accumulated amortization | -11 | -9 |
Intangible assets, Net | 243 | 177 |
Customer relationships [Member] | Minimum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '20 years | ' |
Customer relationships [Member] | Maximum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '40 years | ' |
Trade names [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '7 years | ' |
Intangible assets, gross | 7 | 7 |
Accumulated amortization | -6 | -5 |
Intangible assets, Net | 1 | 2 |
Supplier agreement [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '5 years | ' |
Intangible assets, gross | ' | 6 |
Accumulated amortization | ' | -6 |
Technology [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, gross | 8 | 8 |
Accumulated amortization | -1 | ' |
Intangible assets, Net | 7 | 8 |
Technology [Member] | Minimum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '7 years | ' |
Technology [Member] | Maximum [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '20 years | ' |
Non-Compete [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '9 years | ' |
Intangible assets, gross | 1 | 1 |
Intangible assets, Net | 1 | 1 |
License rights [Member] | ' | ' |
Finite Lived And Indefinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful lives (in years) | '12 years | ' |
Intangible assets, gross | 29 | ' |
Accumulated amortization | ' | ' |
Intangible assets, Net | $29 | ' |
Intangible_Assets_Net_Addition
Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense | $3 | $2 | $7 | $6 |
Intangible_Assets_Net_Amortiza
Intangible Assets, Net - Amortization Expense Related to Intangible Assets (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Amortization expense related to intangible assets, 2013 | $10 |
Amortization expense related to intangible assets, 2014 | 13 |
Amortization expense related to intangible assets, 2015 | 12 |
Amortization expense related to intangible assets, 2016 | 12 |
Amortization expense related to intangible assets, 2017 | $12 |
Closure_and_Restructuring_Cost2
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 13, 2012 | Jul. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
Previous closures [Member] | Previous closures [Member] | Previous closures [Member] | Previous closures [Member] | Multiemployer pension plans [Member] | Multiemployer pension plans [Member] | Multiemployer pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pulp and Paper [Member] | Pulp and Paper [Member] | Pulp and Paper [Member] | Pulp and Paper [Member] | Personal Care [Member] | Personal Care [Member] | Personal Care [Member] | Mira Loma, California converting plant [Member] | Kamloops, British Columbia pulp facility [Member] | Kamloops, British Columbia pulp facility [Member] | Kamloops, British Columbia pulp facility [Member] | Ariva U.S. [Member] | Ariva U.S. [Member] | Ariva U.S. [Member] | Big River [Member] | Big River [Member] | Dryden [Member] | Dryden [Member] | ||||||
Closure of paper machine [Member] | Employees | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | Pension plans [Member] | |||||||||||||||||||||||||||
T | ||||||||||||||||||||||||||||||||
Employees | ||||||||||||||||||||||||||||||||
Writedown Of Asset And Lease Loss Accrual [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected withdrawal liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | ' | ' | ' | ' |
Provision for the withdrawal liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 | 7 | 7 |
Sale of business, number of employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400 | ' | ' | ' | ' | ' | ' |
Impairment and write-down | ' | ' | 15 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' |
Curtailment of manufacturing materials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected due to curtailment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' |
Accelerated depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' |
Severance and termination costs | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory obsolescence | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other costs | ' | 2 | 2 | 2 | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | 1 | 2 | 1 | ' | 1 | 1 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring provision | $4 | ' | $4 | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | $3 | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' | ' | ' |
Closure_and_Restructuring_Cost3
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment - Components of Closure and Restructuring Costs by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and termination costs | ' | ' | ' | $1 |
Inventory obsolescence | ' | ' | -1 | ' |
Pension settlement and withdrawal liability | ' | ' | 17 | ' |
Other | ' | 2 | 2 | 2 |
Closure and restructuring costs | ' | 2 | 18 | 3 |
Corporate [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and termination costs | ' | ' | ' | ' |
Inventory obsolescence | ' | ' | ' | ' |
Pension settlement and withdrawal liability | ' | ' | 6 | ' |
Other | ' | ' | ' | ' |
Closure and restructuring costs | ' | ' | 6 | ' |
Pulp and Paper [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and termination costs | ' | ' | -2 | 1 |
Inventory obsolescence | ' | ' | -1 | ' |
Pension settlement and withdrawal liability | ' | ' | 11 | ' |
Other | ' | 1 | 2 | 1 |
Closure and restructuring costs | ' | 1 | 10 | 2 |
Personal Care [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Severance and termination costs | ' | ' | 2 | ' |
Inventory obsolescence | ' | ' | ' | ' |
Pension settlement and withdrawal liability | ' | ' | ' | ' |
Other | ' | 1 | ' | 1 |
Closure and restructuring costs | ' | $1 | $2 | $1 |
Closure_and_Restructuring_Cost4
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment - Activity in Closure and Restructuring Liability (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Restructuring And Related Activities [Abstract] | ' |
Balance at beginning of period | $10 |
Payments | -3 |
Pension provision (reflected in Accrued benefit obligation) | -3 |
Balance at end of period | $4 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Unsecured Senior Notes [Line Items] | ' | ' | ' |
Long-term debt, interest rate | 5.38% | ' | ' |
Long-term debt, par value | $71 | ' | ' |
Premium on extinguishment of debt | 2 | 2 | 47 |
Additional charges on extinguishment of debt | 1 | ' | ' |
Personal Care [Member] | Land and buildings [Member] | ' | ' | ' |
Unsecured Senior Notes [Line Items] | ' | ' | ' |
Repayment of capital leases | $23 | ' | ' |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | ($128) | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -14 | ' |
Amounts reclassified from Accumulated other comprehensive loss | ' | ' | 23 | ' |
Other comprehensive income | 55 | 50 | 9 | 40 |
Balance at September 30, 2013 | -119 | ' | -119 | ' |
Natural gas swap contracts [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -2 | ' |
Currency options [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -3 | ' |
Net investment hedge [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -1 | ' |
Foreign currency items [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -27 | ' |
Remeasurement of pension plan obligation [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | 19 | ' |
Net derivative gains (losses) on cash flow hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | 5 | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -6 | ' |
Amounts reclassified from Accumulated other comprehensive loss | ' | ' | 3 | ' |
Other comprehensive income | ' | ' | -3 | ' |
Balance at September 30, 2013 | 2 | ' | 2 | ' |
Net derivative gains (losses) on cash flow hedges [Member] | Natural gas swap contracts [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -2 | ' |
Net derivative gains (losses) on cash flow hedges [Member] | Currency options [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -3 | ' |
Net derivative gains (losses) on cash flow hedges [Member] | Net investment hedge [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -1 | ' |
Accumulated defined benefit plans adjustment [Member] | Pension plans [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | -326 | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | 19 | ' |
Amounts reclassified from Accumulated other comprehensive loss | ' | ' | 18 | ' |
Other comprehensive income | ' | ' | 37 | ' |
Balance at September 30, 2013 | -289 | ' | -289 | ' |
Accumulated defined benefit plans adjustment [Member] | Other post-retirement benefit plans [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | -15 | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | ' | ' |
Amounts reclassified from Accumulated other comprehensive loss | ' | ' | 2 | ' |
Other comprehensive income | ' | ' | 2 | ' |
Balance at September 30, 2013 | -13 | ' | -13 | ' |
Accumulated defined benefit plans adjustment [Member] | Remeasurement of pension plan obligation [Member] | Pension plans [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | 19 | ' |
Foreign currency items [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | 208 | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | -27 | ' |
Amounts reclassified from Accumulated other comprehensive loss | ' | ' | ' | ' |
Other comprehensive income | ' | ' | -27 | ' |
Balance at September 30, 2013 | 181 | ' | 181 | ' |
Foreign currency items [Member] | Foreign currency items [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Total Other comprehensive (loss) income before reclassifications | ' | ' | ($27) | ' |
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Parenthetical) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' |
Remeasurement gains recorded in Accumulated other comprehensive loss | $19 |
Changes_in_Accumulated_Other_C4
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | $1,116 | $1,100 | $3,280 | $3,263 |
Total before tax | -28 | -89 | -1 | -215 |
Tax benefit | 1 | 22 | -26 | 57 |
Net of tax | -27 | -66 | -26 | -153 |
Reclassification out of accumulated other comprehensive loss [Member] | Net derivative gains (losses) on cash flow hedges [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total before tax | 3 | 3 | 5 | 11 |
Tax benefit | -1 | -1 | -2 | -4 |
Net of tax | 2 | 2 | 3 | 7 |
Reclassification out of accumulated other comprehensive loss [Member] | Net derivative gains (losses) on cash flow hedges [Member] | Natural gas swap contracts [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | 1 | 3 | 3 | 9 |
Reclassification out of accumulated other comprehensive loss [Member] | Net derivative gains (losses) on cash flow hedges [Member] | Currency options [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Sales | 2 | ' | 2 | 2 |
Reclassification out of accumulated other comprehensive loss [Member] | Accumulated defined benefit plans adjustment [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net actuarial loss (gain) | 7 | -8 | 35 | 1 |
Prior service cost | 1 | 1 | 2 | 2 |
Total before tax | 8 | -7 | 37 | 3 |
Tax benefit | -9 | -3 | -17 | -3 |
Net of tax | ($1) | ($10) | $20 | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 40 Months Ended | 1 Months Ended | ||||
Jul. 31, 2013 | Apr. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | |
Subsequent Events [Member] | ||||||||
Shareholders' Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend per share | $0.55 | $0.55 | $0.45 | ' | ' | ' | ' | $0.55 |
Dividend declared | $19,000,000 | $15,000,000 | ' | ' | ' | ' | ' | $18,000,000 |
Declared date | 30-Jul-13 | 30-Apr-13 | 20-Feb-13 | ' | ' | ' | ' | 30-Oct-13 |
Record date | 13-Sep-13 | 14-Jun-13 | 15-Mar-13 | ' | ' | ' | ' | 13-Dec-13 |
Payment date | 15-Oct-13 | 15-Jul-13 | 15-Apr-13 | ' | ' | ' | ' | 15-Jan-14 |
Stock repurchase program authorized amount | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' |
Stock repurchased, shares | ' | ' | ' | 2,509,803 | 1,521,667 | 11,170,506 | ' | ' |
Stock repurchased, average price | ' | ' | ' | $73.10 | $78.77 | $78.48 | ' | ' |
Stock repurchased, value | ' | ' | ' | 183,000,000 | 120,000,000 | 877,000,000 | ' | ' |
Shares repurchased, payable | ' | ' | ' | ' | $4,000,000 | ' | ' | ' |
Treasury stock, par value | ' | ' | ' | $0.01 | ' | $0.01 | $0.01 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' |
Balance at beginning of period | $83 |
Additions | 1 |
Sale of closed facility | -3 |
Environmental spending | -4 |
Effect of foreign currency exchange rate change | -2 |
Balance at end of period | $75 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 07, 2007 | Mar. 07, 2007 | Jul. 31, 1998 | Jul. 31, 1998 | Sep. 30, 2013 |
USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | Pending litigation [Member] | Pending litigation [Member] | Domtar Inc [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | |
USD ($) | CAD | USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | ||||||||
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Obligations under federal or provincial legislations | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 | ' | ' | ' | ' | $20 |
Company's ownership of Domtar Inc. | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Maximum third party share percentage ownership | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Business acquisition, contingent consideration, potential cash payment | ' | ' | ' | ' | ' | ' | 104 | 110 | ' | ' | 104 | 110 | 114 | 120 | ' |
Consideration declining period, in years | ' | ' | ' | ' | '25 years | '25 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement paid | ($49) | -50 | $49 | 50 | $49 | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Disclosures_Additional
Segment Disclosures - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
Segment_Disclosures_Analysis_a
Segment Disclosures - Analysis and Reconciliation of Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated sales | $1,375 | $1,389 | $4,032 | $4,155 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 93 | 96 | 281 | 289 |
Impairment and write-down of property, plant and equipment | ' | ' | 15 | 2 |
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment | 93 | 96 | 296 | 291 |
Consolidated operating income | 49 | 109 | 68 | 324 |
Interest expense, net | 21 | 20 | 67 | 109 |
Earnings before income taxes and equity loss | 28 | 89 | 1 | 215 |
Income tax expense (benefit) | 1 | 22 | -26 | 57 |
Equity loss, net of taxes | ' | 1 | 1 | 5 |
Net earnings | 27 | 66 | 26 | 153 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated sales | 1,379 | 1,391 | 4,044 | 4,158 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 93 | 96 | 281 | 289 |
Operating Segments [Member] | Pulp and Paper [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated sales | 1,204 | 1,280 | 3,650 | 3,870 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 84 | 90 | 260 | 274 |
Impairment and write-down of property, plant and equipment | ' | ' | 15 | 2 |
Consolidated operating income | 42 | 98 | 96 | 298 |
Operating Segments [Member] | Personal Care [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated sales | 175 | 111 | 394 | 288 |
Depreciation and amortization and impairment and write-down of property, plant and equipment | 9 | 6 | 21 | 15 |
Consolidated operating income | 11 | 12 | 34 | 32 |
Intersegment Eliminations [Member] | Pulp and Paper [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated sales | -4 | -2 | -12 | -3 |
Corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Consolidated operating income | ($4) | ($1) | ($62) | ($6) |
Supplemental_Guarantor_Financi2
Supplemental Guarantor Financial Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Domtar Paper Company, LLC [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Guarantor Subsidiaries [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Non-Guarantor Subsidiaries [Member] | ' |
Supplemental Guarantor Financial Information [Line Items] | ' |
Ownership percentage | 100.00% |
Supplemental_Guarantor_Financi3
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | $1,375 | $1,389 | $4,032 | $4,155 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 1,116 | 1,100 | 3,280 | 3,263 |
Depreciation and amortization | 93 | 96 | 281 | 289 |
Selling, general and administrative | 95 | 80 | 281 | 268 |
Impairment and write-down of property, plant and equipment | ' | ' | 15 | 2 |
Closure and restructuring costs | ' | 2 | 18 | 3 |
Other operating (loss) income, net | 22 | 2 | 89 | 6 |
Operating expenses | 1,326 | 1,280 | 3,964 | 3,831 |
Operating (loss) income | 49 | 109 | 68 | 324 |
Interest expense (income), net | 21 | 20 | 67 | 109 |
(Loss) earnings before income taxes and equity loss | 28 | 89 | 1 | 215 |
Income tax (benefit) expense | 1 | 22 | -26 | 57 |
Equity loss, net of taxes | ' | 1 | 1 | 5 |
Share in earnings of equity accounted investees | ' | ' | ' | ' |
Net earnings | 27 | 66 | 26 | 153 |
Other comprehensive income (loss) | 55 | 50 | 9 | 40 |
Comprehensive income | 82 | 116 | 35 | 193 |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | -267 | -253 | -782 | -749 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | -267 | -253 | -782 | -749 |
Depreciation and amortization | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' |
Impairment and write-down of property, plant and equipment | ' | ' | ' | ' |
Closure and restructuring costs | ' | ' | ' | ' |
Other operating (loss) income, net | ' | ' | ' | ' |
Operating expenses | -267 | -253 | -782 | -749 |
Operating (loss) income | ' | ' | ' | ' |
Interest expense (income), net | ' | ' | ' | ' |
(Loss) earnings before income taxes and equity loss | ' | ' | ' | ' |
Income tax (benefit) expense | ' | ' | ' | ' |
Equity loss, net of taxes | ' | ' | ' | ' |
Share in earnings of equity accounted investees | -77 | -111 | -115 | -342 |
Net earnings | -77 | -111 | -115 | -342 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Comprehensive income | -77 | -111 | -115 | -342 |
Parent [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' |
Selling, general and administrative | 8 | 6 | 21 | 24 |
Impairment and write-down of property, plant and equipment | ' | ' | ' | ' |
Closure and restructuring costs | ' | ' | ' | ' |
Other operating (loss) income, net | 1 | ' | 1 | ' |
Operating expenses | 9 | 6 | 22 | 24 |
Operating (loss) income | -9 | -6 | -22 | -24 |
Interest expense (income), net | 23 | 22 | 72 | 114 |
(Loss) earnings before income taxes and equity loss | -32 | -28 | -94 | -138 |
Income tax (benefit) expense | -9 | -9 | -25 | -46 |
Equity loss, net of taxes | ' | ' | ' | ' |
Share in earnings of equity accounted investees | 50 | 85 | 95 | 245 |
Net earnings | 27 | 66 | 26 | 153 |
Other comprehensive income (loss) | 2 | 3 | 3 | 5 |
Comprehensive income | 29 | 69 | 29 | 158 |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | 1,148 | 1,150 | 3,336 | 3,456 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 968 | 937 | 2,819 | 2,797 |
Depreciation and amortization | 69 | 69 | 204 | 222 |
Selling, general and administrative | 60 | 58 | 195 | 210 |
Impairment and write-down of property, plant and equipment | ' | ' | 5 | 2 |
Closure and restructuring costs | ' | 2 | 6 | 2 |
Other operating (loss) income, net | 19 | -2 | 39 | ' |
Operating expenses | 1,116 | 1,064 | 3,268 | 3,233 |
Operating (loss) income | 32 | 86 | 68 | 223 |
Interest expense (income), net | 5 | 5 | 14 | 14 |
(Loss) earnings before income taxes and equity loss | 27 | 81 | 54 | 209 |
Income tax (benefit) expense | 4 | 22 | -21 | 61 |
Equity loss, net of taxes | ' | ' | ' | ' |
Share in earnings of equity accounted investees | 27 | 26 | 20 | 97 |
Net earnings | 50 | 85 | 95 | 245 |
Other comprehensive income (loss) | 11 | -5 | 7 | -5 |
Comprehensive income | 61 | 80 | 102 | 240 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Supplemental Guarantor Financial Information [Line Items] | ' | ' | ' | ' |
Sales | 494 | 492 | 1,478 | 1,448 |
Operating expenses | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 415 | 416 | 1,243 | 1,215 |
Depreciation and amortization | 24 | 27 | 77 | 67 |
Selling, general and administrative | 27 | 16 | 65 | 34 |
Impairment and write-down of property, plant and equipment | ' | ' | 10 | ' |
Closure and restructuring costs | ' | ' | 12 | 1 |
Other operating (loss) income, net | 2 | 4 | 49 | 6 |
Operating expenses | 468 | 463 | 1,456 | 1,323 |
Operating (loss) income | 26 | 29 | 22 | 125 |
Interest expense (income), net | -7 | -7 | -19 | -19 |
(Loss) earnings before income taxes and equity loss | 33 | 36 | 41 | 144 |
Income tax (benefit) expense | 6 | 9 | 20 | 42 |
Equity loss, net of taxes | ' | 1 | 1 | 5 |
Share in earnings of equity accounted investees | ' | ' | ' | ' |
Net earnings | 27 | 26 | 20 | 97 |
Other comprehensive income (loss) | 42 | 52 | -1 | 40 |
Comprehensive income | $69 | $78 | $19 | $137 |
Supplemental_Guarantor_Financi4
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | $191 | $661 | $593 | $444 |
Receivables | 583 | 562 | ' | ' |
Inventories | 703 | 675 | ' | ' |
Prepaid expenses | 31 | 24 | ' | ' |
Income and other taxes receivable | 48 | 48 | ' | ' |
Intercompany accounts | ' | ' | ' | ' |
Deferred income taxes | 58 | 45 | ' | ' |
Total current assets | 1,614 | 2,015 | ' | ' |
Property, plant and equipment, at cost | 8,928 | 8,793 | ' | ' |
Accumulated depreciation | -5,576 | -5,392 | ' | ' |
Net property, plant and equipment | 3,352 | 3,401 | ' | ' |
Goodwill | 367 | 263 | ' | ' |
Intangible assets, net of amortization | 409 | 309 | ' | ' |
Investments in affiliates | ' | ' | ' | ' |
Intercompany long-term advances | ' | ' | ' | ' |
Other assets | 143 | 135 | ' | ' |
Total assets | 5,885 | 6,123 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | 6 | 18 | ' | ' |
Trade and other payables | 693 | 646 | ' | ' |
Intercompany accounts | ' | ' | ' | ' |
Income and other taxes payable | 16 | 15 | ' | ' |
Long-term debt due within one year | 6 | 79 | ' | ' |
Total current liabilities | 721 | 758 | ' | ' |
Long-term debt | 1,102 | 1,128 | ' | ' |
Intercompany long-term loans | ' | ' | ' | ' |
Deferred income taxes and other | 946 | 903 | ' | ' |
Other liabilities and deferred credits | 435 | 457 | ' | ' |
Shareholders' equity | 2,681 | 2,877 | ' | ' |
Total liabilities and shareholders' equity | 5,885 | 6,123 | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' |
Receivables | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' |
Prepaid expenses | ' | ' | ' | ' |
Income and other taxes receivable | -12 | ' | ' | ' |
Intercompany accounts | -4,275 | -3,946 | ' | ' |
Deferred income taxes | ' | -2 | ' | ' |
Total current assets | -4,287 | -3,948 | ' | ' |
Property, plant and equipment, at cost | ' | ' | ' | ' |
Accumulated depreciation | ' | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Intangible assets, net of amortization | ' | ' | ' | ' |
Investments in affiliates | -9,577 | -9,226 | ' | ' |
Intercompany long-term advances | -737 | -580 | ' | ' |
Other assets | -17 | -14 | ' | ' |
Total assets | -14,618 | -13,768 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | ' | ' | ' | ' |
Trade and other payables | ' | ' | ' | ' |
Intercompany accounts | -4,275 | -3,946 | ' | ' |
Income and other taxes payable | -12 | -2 | ' | ' |
Long-term debt due within one year | ' | ' | ' | ' |
Total current liabilities | -4,287 | -3,948 | ' | ' |
Long-term debt | ' | ' | ' | ' |
Intercompany long-term loans | -737 | -580 | ' | ' |
Deferred income taxes and other | ' | -14 | ' | ' |
Other liabilities and deferred credits | -17 | ' | ' | ' |
Shareholders' equity | -9,577 | -9,226 | ' | ' |
Total liabilities and shareholders' equity | -14,618 | -13,768 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 32 | 275 | 300 | 91 |
Receivables | ' | ' | ' | ' |
Inventories | ' | ' | ' | ' |
Prepaid expenses | 8 | 7 | ' | ' |
Income and other taxes receivable | 53 | 34 | ' | ' |
Intercompany accounts | 454 | 433 | ' | ' |
Deferred income taxes | ' | ' | ' | ' |
Total current assets | 547 | 749 | ' | ' |
Property, plant and equipment, at cost | ' | ' | ' | ' |
Accumulated depreciation | ' | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Intangible assets, net of amortization | ' | ' | ' | ' |
Investments in affiliates | 7,538 | 7,208 | ' | ' |
Intercompany long-term advances | 6 | 6 | ' | ' |
Other assets | 33 | 30 | ' | ' |
Total assets | 8,124 | 7,993 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | ' | ' | ' | ' |
Trade and other payables | 50 | 43 | ' | ' |
Intercompany accounts | 3,795 | 3,492 | ' | ' |
Income and other taxes payable | 16 | 4 | ' | ' |
Long-term debt due within one year | ' | 47 | ' | ' |
Total current liabilities | 3,861 | 3,586 | ' | ' |
Long-term debt | 1,084 | 1,107 | ' | ' |
Intercompany long-term loans | 530 | 444 | ' | ' |
Deferred income taxes and other | ' | ' | ' | ' |
Other liabilities and deferred credits | 14 | 27 | ' | ' |
Shareholders' equity | 2,635 | 2,829 | ' | ' |
Total liabilities and shareholders' equity | 8,124 | 7,993 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 5 | 72 | 65 | 2 |
Receivables | 396 | 393 | ' | ' |
Inventories | 487 | 472 | ' | ' |
Prepaid expenses | 11 | 7 | ' | ' |
Income and other taxes receivable | ' | ' | ' | ' |
Intercompany accounts | 3,784 | 3,501 | ' | ' |
Deferred income taxes | 43 | 30 | ' | ' |
Total current assets | 4,726 | 4,475 | ' | ' |
Property, plant and equipment, at cost | 5,927 | 5,755 | ' | ' |
Accumulated depreciation | -3,670 | -3,500 | ' | ' |
Net property, plant and equipment | 2,257 | 2,255 | ' | ' |
Goodwill | 296 | 194 | ' | ' |
Intangible assets, net of amortization | 275 | 180 | ' | ' |
Investments in affiliates | 2,039 | 2,018 | ' | ' |
Intercompany long-term advances | 79 | 85 | ' | ' |
Other assets | ' | ' | ' | ' |
Total assets | 9,672 | 9,207 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | 6 | 18 | ' | ' |
Trade and other payables | 435 | 380 | ' | ' |
Intercompany accounts | 413 | 398 | ' | ' |
Income and other taxes payable | 7 | 9 | ' | ' |
Long-term debt due within one year | 3 | 27 | ' | ' |
Total current liabilities | 864 | 832 | ' | ' |
Long-term debt | 5 | 8 | ' | ' |
Intercompany long-term loans | 207 | 130 | ' | ' |
Deferred income taxes and other | 877 | 873 | ' | ' |
Other liabilities and deferred credits | 181 | 156 | ' | ' |
Shareholders' equity | 7,538 | 7,208 | ' | ' |
Total liabilities and shareholders' equity | 9,672 | 9,207 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 154 | 314 | 228 | 351 |
Receivables | 187 | 169 | ' | ' |
Inventories | 216 | 203 | ' | ' |
Prepaid expenses | 12 | 10 | ' | ' |
Income and other taxes receivable | 7 | 14 | ' | ' |
Intercompany accounts | 37 | 12 | ' | ' |
Deferred income taxes | 15 | 17 | ' | ' |
Total current assets | 628 | 739 | ' | ' |
Property, plant and equipment, at cost | 3,001 | 3,038 | ' | ' |
Accumulated depreciation | -1,906 | -1,892 | ' | ' |
Net property, plant and equipment | 1,095 | 1,146 | ' | ' |
Goodwill | 71 | 69 | ' | ' |
Intangible assets, net of amortization | 134 | 129 | ' | ' |
Investments in affiliates | ' | ' | ' | ' |
Intercompany long-term advances | 652 | 489 | ' | ' |
Other assets | 127 | 119 | ' | ' |
Total assets | 2,707 | 2,691 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Bank indebtedness | ' | ' | ' | ' |
Trade and other payables | 208 | 223 | ' | ' |
Intercompany accounts | 67 | 56 | ' | ' |
Income and other taxes payable | 5 | 4 | ' | ' |
Long-term debt due within one year | 3 | 5 | ' | ' |
Total current liabilities | 283 | 288 | ' | ' |
Long-term debt | 13 | 13 | ' | ' |
Intercompany long-term loans | ' | 6 | ' | ' |
Deferred income taxes and other | 69 | 44 | ' | ' |
Other liabilities and deferred credits | 257 | 274 | ' | ' |
Shareholders' equity | 2,085 | 2,066 | ' | ' |
Total liabilities and shareholders' equity | $2,707 | $2,691 | ' | ' |
Supplemental_Guarantor_Financi5
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net earnings | $26 | $153 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 261 | 258 |
Cash flows provided from operating activities | 287 | 411 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -180 | -171 |
Proceeds from disposals of property, plant and equipment and sale of business | 55 | ' |
Acquisitions of businesses, net of cash acquired | -287 | -293 |
Investment in joint venture | -1 | -5 |
Cash flows used for investing activities | -413 | -469 |
Financing activities | ' | ' |
Dividend payments | -50 | -42 |
Net change in bank indebtedness | -13 | 8 |
Issuance of long-term debt | ' | 548 |
Repayment of long-term debt | -99 | -190 |
Stock repurchase | -183 | -116 |
Increase in long-term advances to related parties | ' | ' |
Decrease in long-term advances to related parties | ' | ' |
Other | 2 | -1 |
Cash flows (used for) provided from financing activities | -343 | 207 |
Net increase (decrease) in cash and cash equivalents | -469 | 149 |
Translation adjustments related to cash and cash equivalents | -1 | ' |
Cash and cash equivalents at beginning of period | 661 | 444 |
Cash and cash equivalents at end of period | 191 | 593 |
Consolidating Adjustments [Member] | ' | ' |
Operating activities | ' | ' |
Net earnings | -115 | -342 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 115 | 342 |
Cash flows provided from operating activities | ' | ' |
Investing activities | ' | ' |
Additions to property, plant and equipment | ' | ' |
Proceeds from disposals of property, plant and equipment and sale of business | ' | ' |
Acquisitions of businesses, net of cash acquired | ' | ' |
Investment in joint venture | ' | ' |
Cash flows used for investing activities | ' | ' |
Financing activities | ' | ' |
Dividend payments | ' | ' |
Net change in bank indebtedness | ' | ' |
Repayment of long-term debt | ' | ' |
Stock repurchase | ' | ' |
Increase in long-term advances to related parties | 264 | 62 |
Decrease in long-term advances to related parties | -264 | -62 |
Other | ' | ' |
Cash flows (used for) provided from financing activities | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' |
Translation adjustments related to cash and cash equivalents | ' | ' |
Cash and cash equivalents at beginning of period | ' | ' |
Cash and cash equivalents at end of period | ' | ' |
Parent [Member] | ' | ' |
Operating activities | ' | ' |
Net earnings | 26 | 153 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 189 | -105 |
Cash flows provided from operating activities | 215 | 48 |
Investing activities | ' | ' |
Additions to property, plant and equipment | ' | ' |
Proceeds from disposals of property, plant and equipment and sale of business | ' | ' |
Acquisitions of businesses, net of cash acquired | ' | ' |
Investment in joint venture | ' | ' |
Cash flows used for investing activities | ' | ' |
Financing activities | ' | ' |
Dividend payments | -50 | -42 |
Net change in bank indebtedness | ' | ' |
Issuance of long-term debt | ' | 548 |
Repayment of long-term debt | -71 | -186 |
Stock repurchase | -183 | -116 |
Increase in long-term advances to related parties | -156 | -42 |
Decrease in long-term advances to related parties | ' | ' |
Other | 2 | -1 |
Cash flows (used for) provided from financing activities | -458 | 161 |
Net increase (decrease) in cash and cash equivalents | -243 | 209 |
Translation adjustments related to cash and cash equivalents | ' | ' |
Cash and cash equivalents at beginning of period | 275 | 91 |
Cash and cash equivalents at end of period | 32 | 300 |
Guarantor Subsidiaries [Member] | ' | ' |
Operating activities | ' | ' |
Net earnings | 95 | 245 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | -44 | -64 |
Cash flows provided from operating activities | 51 | 181 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -116 | -124 |
Proceeds from disposals of property, plant and equipment and sale of business | 55 | ' |
Acquisitions of businesses, net of cash acquired | -283 | -61 |
Investment in joint venture | ' | ' |
Cash flows used for investing activities | -344 | -185 |
Financing activities | ' | ' |
Dividend payments | ' | ' |
Net change in bank indebtedness | -13 | 8 |
Repayment of long-term debt | -25 | -3 |
Stock repurchase | ' | ' |
Increase in long-term advances to related parties | ' | ' |
Decrease in long-term advances to related parties | 264 | 62 |
Other | ' | ' |
Cash flows (used for) provided from financing activities | 226 | 67 |
Net increase (decrease) in cash and cash equivalents | -67 | 63 |
Translation adjustments related to cash and cash equivalents | ' | ' |
Cash and cash equivalents at beginning of period | 72 | 2 |
Cash and cash equivalents at end of period | 5 | 65 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Operating activities | ' | ' |
Net earnings | 20 | 97 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 1 | 85 |
Cash flows provided from operating activities | 21 | 182 |
Investing activities | ' | ' |
Additions to property, plant and equipment | -64 | -47 |
Proceeds from disposals of property, plant and equipment and sale of business | ' | ' |
Acquisitions of businesses, net of cash acquired | -4 | -232 |
Investment in joint venture | -1 | -5 |
Cash flows used for investing activities | -69 | -284 |
Financing activities | ' | ' |
Dividend payments | ' | ' |
Net change in bank indebtedness | ' | ' |
Repayment of long-term debt | -3 | -1 |
Stock repurchase | ' | ' |
Increase in long-term advances to related parties | -108 | -20 |
Decrease in long-term advances to related parties | ' | ' |
Other | ' | ' |
Cash flows (used for) provided from financing activities | -111 | -21 |
Net increase (decrease) in cash and cash equivalents | -159 | -123 |
Translation adjustments related to cash and cash equivalents | -1 | ' |
Cash and cash equivalents at beginning of period | 314 | 351 |
Cash and cash equivalents at end of period | $154 | $228 |
Sale_of_Ariva_US_Additional_In
Sale of Ariva U.S. - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Ariva U.S. [Member] | Ariva U.S. [Member] | Ariva U.S. [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from sale of business | ' | $55 | ' | ' | $45 | ' | ' |
Loss on sale of business | ' | ' | ' | ' | ' | 19 | ' |
Withdrawal liabilities relating to multi-employer pension plan | ' | ' | ' | ' | ' | 11 | ' |
Severance cost | 4 | 4 | ' | 10 | ' | 3 | ' |
Loss on sale of net assets | ' | 10 | ' | ' | ' | 3 | ' |
Other provisions | ' | ' | ' | ' | ' | 2 | ' |
Impairment of assets | ' | $15 | $2 | ' | ' | ' | $5 |