Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UFS | ||
Entity Registrant Name | Domtar CORP | ||
Entity Central Index Key | 1,381,531 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 62,657,297 | ||
Entity Public Float | $ 2,621,377,250 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive (Loss) Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 5,264 | $ 5,563 | $ 5,391 |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 4,147 | 4,396 | 4,361 |
Depreciation and amortization | 359 | 384 | 376 |
Selling, general and administrative | 394 | 416 | 381 |
Impairment and write-down of property, plant and equipment (NOTE 4) | 77 | 4 | 22 |
Closure and restructuring costs (NOTE 16) | 4 | 28 | 18 |
Other operating (income) loss (NOTE 8) | (5) | (29) | 72 |
Operating expenses | 4,976 | 5,199 | 5,230 |
Operating income | 288 | 364 | 161 |
Interest expense, net (NOTE 9) | 132 | 103 | 89 |
Earnings before income taxes and equity loss | 156 | 261 | 72 |
Income tax expense (benefit) (NOTE 10) | 14 | (170) | (20) |
Equity loss, net of taxes | 1 | ||
Net earnings | $ 142 | $ 431 | $ 91 |
Per common shares (in dollars) (NOTE 6) | |||
Basic | $ 2.24 | $ 6.65 | $ 1.37 |
Diluted | $ 2.24 | $ 6.64 | $ 1.36 |
Weighted average number of common and exchangeable shares outstanding (millions) | |||
Basic | 63.3 | 64.8 | 66.6 |
Diluted | 63.4 | 64.9 | 66.7 |
Cash dividends per common share | $ 1.58 | $ 1.30 | $ 1 |
Net earnings | $ 142 | $ 431 | $ 91 |
Net losses arising during the period, net of tax $(28) (2014 - $(15); 2013 - $ (6)) | (41) | (23) | (10) |
Less: Reclassification adjustments for losses included in net earnings, net of tax | 26 | 8 | 5 |
Foreign currency translation adjustments | (223) | (200) | (56) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | 5 | 12 | 124 |
Other comprehensive (loss) income | (233) | (203) | 63 |
Comprehensive (loss) income | $ (91) | $ 228 | $ 154 |
Consolidated Statements of Ear3
Consolidated Statements of Earnings and Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net losses arising during the period, tax | $ (28) | $ (15) | $ (6) |
Reclassification adjustment for losses included in net earnings, tax | (18) | (4) | (3) |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | $ (2) | $ (2) | $ (53) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 126 | $ 174 |
Receivables, less allowances of $6 and $6 | 627 | 628 |
Inventories (NOTE 11) | 766 | 714 |
Prepaid expenses | 21 | 25 |
Income and other taxes receivable | 14 | 54 |
Deferred income taxes (NOTE 10) | 75 | |
Total current assets | 1,554 | 1,670 |
Net property, plant and equipment (NOTE 13) | 2,835 | 3,131 |
Goodwill (NOTE 12) | 539 | 567 |
Intangible assets, net of amortization (NOTE 14) | 601 | 661 |
Other assets (NOTE 15) | 134 | 156 |
Total assets | 5,663 | 6,185 |
Current liabilities | ||
Bank indebtedness | 10 | |
Trade and other payables (NOTE 17) | 720 | 721 |
Income and other taxes payable | 27 | 26 |
Long-term debt due within one year (NOTE 19) | 41 | 169 |
Total current liabilities | 788 | 926 |
Long-term debt (NOTE 19) | 1,219 | 1,181 |
Deferred income taxes and other (NOTE 10) | 654 | 810 |
Other liabilities and deferred credits (NOTE 20) | $ 350 | $ 378 |
Commitments and contingencies (NOTE 22) | ||
Shareholders' equity (NOTE 21) | ||
Common stock $0.01 par value; authorized 2,000,000,000 shares; issued 65,001,104 and 65,001,104 shares | $ 1 | $ 1 |
Additional paid-in capital | 1,966 | 2,012 |
Retained earnings | 1,186 | 1,145 |
Accumulated other comprehensive loss | (501) | (268) |
Total shareholders' equity | 2,652 | 2,890 |
Total liabilities and shareholders' equity | $ 5,663 | $ 6,185 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 6 | $ 6 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 65,001,104 | 65,001,104 |
Treasury stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 2,151,168 | 991,017 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Issued and Outstanding Common and Exchangeable Shares [Member] | Common Stock, at Par [Member] | Exchangeable Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2012 | $ 2,877 | $ 48 | $ 2,175 | $ 782 | $ (128) | ||
Balance, Shares at Dec. 31, 2012 | 34,800,000 | ||||||
Conversion of exchangeable shares | (4) | 4 | |||||
Stock-based compensation, net of tax | 3 | 3 | |||||
Stock-based compensation, shares | 100,000 | ||||||
Net earnings | 91 | 91 | |||||
Net derivative losses on cash flow hedges: | |||||||
Net losses arising during the period, net of tax | (10) | (10) | |||||
Less: Reclassification adjustments for losses included in net earnings, net of tax | 5 | 5 | |||||
Foreign currency translation adjustments | (56) | (56) | |||||
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | 124 | 124 | |||||
Stock repurchase | $ (183) | (183) | |||||
Stock repurchase, shares | (5,019,606) | (2,500,000) | |||||
Cash dividends declared | $ (69) | (69) | |||||
Balance at Dec. 31, 2013 | 2,782 | 44 | 1,999 | 804 | (65) | ||
Balance, Shares at Dec. 31, 2013 | 32,400,000 | ||||||
Conversion of exchangeable shares | (12) | 12 | |||||
Stock split | 1 | $ 1 | |||||
Stock split, Shares | 32,500,000 | ||||||
Redemption of exchangeable shares | $ (32) | 32 | |||||
Stock-based compensation, net of tax | 7 | 7 | |||||
Stock-based compensation, shares | 100,000 | ||||||
Net earnings | 431 | 431 | |||||
Net derivative losses on cash flow hedges: | |||||||
Net losses arising during the period, net of tax | (23) | (23) | |||||
Less: Reclassification adjustments for losses included in net earnings, net of tax | 8 | 8 | |||||
Foreign currency translation adjustments | (200) | (200) | |||||
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | 12 | 12 | |||||
Stock repurchase | $ (38) | (38) | |||||
Stock repurchase, shares | (996,967) | (1,000,000) | |||||
Cash dividends declared | $ (90) | (90) | |||||
Balance at Dec. 31, 2014 | 2,890 | 1 | 2,012 | 1,145 | (268) | ||
Balance, Shares at Dec. 31, 2014 | 64,000,000 | ||||||
Stock-based compensation, net of tax | 4 | 4 | |||||
Net earnings | 142 | 142 | |||||
Net derivative losses on cash flow hedges: | |||||||
Net losses arising during the period, net of tax | (41) | (41) | |||||
Less: Reclassification adjustments for losses included in net earnings, net of tax | 26 | 26 | |||||
Foreign currency translation adjustments | (223) | (223) | |||||
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | 5 | 5 | |||||
Stock repurchase | $ (50) | (50) | |||||
Stock repurchase, shares | (1,210,932) | (1,200,000) | |||||
Cash dividends declared | $ (101) | (101) | |||||
Balance at Dec. 31, 2015 | $ 2,652 | $ 1 | $ 1,966 | $ 1,186 | $ (501) | ||
Balance, Shares at Dec. 31, 2015 | 62,800,000 |
Consolidated Statement of Shar7
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Stockholders Equity [Abstract] | |||
Net losses arising during the period, tax | $ (28) | $ (15) | $ (6) |
Reclassification adjustment for losses included in net earnings, tax | (18) | (4) | (3) |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | $ (2) | $ (2) | $ (53) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net earnings | $ 142 | $ 431 | $ 91 |
Adjustments to reconcile net earnings to cash flows operating activities | |||
Depreciation and amortization | 359 | 384 | 376 |
Deferred income taxes and tax uncertainties (NOTE 10) | (56) | (201) | (8) |
Impairment and write-down of property, plant and equipment (NOTE 4) | 77 | 4 | 22 |
Net (gains) losses on disposals of property, plant and equipment and sale of business | (15) | 4 | |
Stock-based compensation expense | 5 | 4 | 5 |
Equity loss, net | 1 | ||
Other | 4 | 3 | (2) |
Changes in assets and liabilities, excluding the effects of acquisition and sale of businesses | |||
Receivables | (22) | 39 | (70) |
Inventories | (84) | (29) | (8) |
Prepaid expenses | 5 | 1 | 1 |
Trade and other payables | (33) | (11) | |
Income and other taxes | 38 | 12 | (26) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (1) | 16 | 31 |
Other assets and other liabilities | 1 | 3 | 5 |
Cash flow provided from operating activities | 453 | 634 | 411 |
Investing activities | |||
Additions to property, plant and equipment | (289) | (236) | (242) |
Proceeds from disposals of property, plant and equipment and sale of businesses | 36 | 1 | 61 |
Acquisition of businesses, net of cash acquired (NOTE 3) | (546) | (287) | |
Other | 9 | (5) | (1) |
Cash flow used for investing activities | (244) | (786) | (469) |
Financing activities | |||
Dividend payments | (100) | (84) | (67) |
Stock repurchase | (50) | (38) | (183) |
Net change in bank indebtedness | (11) | (6) | (3) |
Change of revolving bank credit facility | 50 | (160) | 160 |
Proceeds from receivables securitization facility | 90 | ||
Payments on receivables securitization facility | (129) | 249 | |
Issuance of long-term debt | 300 | ||
Repayment of long-term debt | (439) | (4) | (102) |
Other | 1 | 5 | |
Cash flows (used for) provided from financing activities | (249) | (326) | 54 |
Net decrease in cash and cash equivalents | (40) | (478) | (4) |
Impact of foreign exchange on cash | (8) | (3) | (2) |
Cash and cash equivalents at beginning of year | 174 | 655 | 661 |
Cash and cash equivalents at end of year | 126 | 174 | 655 |
Supplemental cash flow information | |||
Interest (including $40 million of redemption premiums in 2015 and $2 million of tender offer premiums in 2013) | 133 | 92 | 81 |
Income taxes paid, net | $ 34 | $ 18 | $ 5 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Statement Of Cash Flows [Abstract] | |
Redemption premium | $ 40 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Domtar designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of wood fiber converting assets that produce paper grade, fluff and specialty pulp. The majority of this pulp production is consumed internally to manufacture paper and other consumer products with the balance sold as market pulp. Domtar is the largest integrated marketer of uncoated freesheet paper in North America serving a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users. Domtar is also a marketer and producer of a broad line of incontinence care products, marketed primarily under the Attends ® ® ACCOUNTING PRINCIPLES The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Domtar Corporation and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. Investment in an affiliated company, where the Company has joint control over their operations, is accounted for by the equity method. USE OF ESTIMATES The consolidated financial statements have been prepared in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to closure and restructuring costs, income taxes, useful lives, asset impairment charges, goodwill and intangible asset impairment assessment, environmental matters and other asset retirement obligations, pension and other post-retirement benefit plans and, commitments and contingencies, based on currently available information. Actual results could differ from those estimates. TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings and Comprehensive (Loss) Income and is partially offset by our hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). At December 31, 2015, the accumulated translation adjustment accounts amounted to $(271) million (2014 – $(48) million). REVENUE RECOGNITION Domtar recognizes revenue when pervasive evidence of an arrangement exists, the customer takes title and assumes the risks and rewards of ownership, the sales price charged is fixed or determinable and when collection is reasonably assured. Revenue is recorded at the time of shipment for terms designated free on board (“f.o.b.”) shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required write-downs, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events at December 31, 2015. Closure and restructuring cost estimates are dependent on future events. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive (loss) income in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50 percent) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. RECEIVABLES Receivables are recorded net of a provision for doubtful accounts that is based on expected collectability. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. INVENTORIES Inventories are stated at the lower of cost or market. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to cost certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $288 million and $229 million at December 31, 2015 and 2014, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are costed at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $66 million and $71 million greater at December 31, 2015 and 2014, respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairment write-downs. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, amortization is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are amortized over periods of 10 to 40 years and machinery and equipment over periods of 3 to 20 years. No depreciation is recorded on assets under construction. IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, as measured by comparing the net book value of the asset group to their estimated undiscounted future cash flows. Impaired assets are recorded at estimated fair value, determined principally by using discounted future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment and write-down of property, plant and equipment”). GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is not amortized and is evaluated for impairment at the beginning of the fourth quarter of every year or more frequently whenever indicators of potential impairment exist. The Company performs the impairment test of goodwill at its reporting unit’s level. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, the Company identifies the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value and assesses their impact on the fair value of the reporting unit. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then it performs Step I of the two-step impairment test. The Company can also elect to bypass the qualitative assessment and proceed directly to the Step I of the impairment test. The first step is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. The Company typically uses an income method to determine the fair value of a reporting unit. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows. Key assumptions supporting the cash flow projections include, but are not limited to, estimates of future sales volumes, selling prices and costs, changes in working capital, investments in property, plant and equipment and discount rate. Assumptions used in our impairment evaluations are consistent with internal projections and operating plans. Analysis of the sensitivities of the fair value estimate to changes in assumptions are also performed. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. In the event that the net carrying amount, including goodwill, exceeds the fair value of the reporting unit, the second step of the impairment test must be performed in order to determine the amount of the impairment charge. Fair value of goodwill in Step II of the impairment test is estimated in the same way as goodwill was determined at the date of the acquisition in a business combination, that is, the excess of the fair value of the reporting unit over the fair value of the identifiable net assets of the business. All goodwill as of December 31, 2015 resides in the Personal Care reporting segment, and originated from the acquisitions of Attends Healthcare Inc. on September 1, 2011, Attends Healthcare Limited on March 1, 2012, EAM Corporation on May 10, 2012, AHP on July 1, 2013 and Laboratorios Indas on January 2, 2014. Please refer to Note 3 “Acquisition of businesses” for additional information regarding the most recent acquisitions. Indefinite-lived intangible assets are not amortized and are evaluated individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amounts. The qualitative assessment follows the same process as the one performed for goodwill, as described above. If, after assessing the qualitative factors, the Company determines that it is more likely than not that the indefinite-lived intangible assets are less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include trade names related to Attends ® ® ® Definite lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite lived intangible assets include water rights, customer relationships, technology, non-compete agreements as well as licensing rights, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite lived intangible assets will be calculated in the same manner as that disclosed under impairment of long-lived assets. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years OTHER ASSETS Other assets are recorded at cost. Direct financing costs related to the issuance of long-term debt are deferred and amortized using the effective interest rate method. ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar Corporation incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are not discounted, due to uncertainty with respect to timing of expenditures, and are recorded when remediation efforts are probable and can be reasonably estimated. Asset retirement obligations are mainly associated with landfill operation and closure, asbestos containment and removal and bark pile management and are recognized, at fair value, in the period in which Domtar Corporation incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated or on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital on the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common shares upon the issuance of shares of common stock. Unless otherwise determined at the time of the grant, awards subject to service conditions vest in approximately equal installments over three years beginning on the first anniversary of the grant date and performance-based awards vest based on achievement of pre-determined performance goals over performance periods of three years. The majority of non-qualified stock options and performance share units expire at various dates no later than seven years from the date of grant. Deferred Share Units vest immediately at the grant date and are remeasured at each reporting period, until settlement, using the quoted market value. Under the 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 2,267,680 shares are reserved for issuance in connection with awards granted or to be granted. DERIVATIVE INSTRUMENTS Derivative instruments are utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings and Comprehensive (Loss) Income by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive (loss) income. These amounts are reclassified in the Consolidated Statements of Earnings and Comprehensive (Loss) Income in the periods in which results are affected by the cash flows of the hedged item within the same line item. Any hedge ineffectiveness is recorded in the Consolidated Statements of Earnings and Comprehensive (Loss) Income when incurred. PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately eight years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the accrued benefit obligation or market value of plan assets at the beginning of the year over the average remaining service period of approximately eight years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the accrued benefit obligation at the beginning of the year over the average remaining service period of approximately 10 years of the active employee group covered by the plans. BUSINESS COMBINATION The Company applies the acquisition method of accounting in a business combination. In general, this methodology requires companies to record assets acquired and liabilities assumed at their respective fair market values at the date of acquisition. The value is determined from the viewpoint of market participants. Any amount of the purchase price paid that is in excess of the estimated fair values of net assets acquired is recorded in the line item Goodwill in the Consolidated Balance Sheets. Management's judgment is used to determine the estimated fair values assigned to assets acquired and liabilities assumed, as well as asset useful lives for property, plant and equipment and amortization periods for intangible assets, and can materially affect the Company's results of operations. Transaction costs, as well as costs to reorganize acquired companies, are expensed as incurred in the Company's consolidated statement of income. GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES IMPLEMENTED DISCONTINUED OPERATIONS In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, an update on Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update change the requirements for reporting discontinued operations and require additional disclosures for both disposal transactions that meet the criteria for a discontinued operation and disposals that do not meet these criteria. The objective of this update is to reach a greater convergence between the FASB’s and IASB’s reporting requirements for discontinued operations. The Company adopted the new requirement on January 1, 2015 with no impact on the Company’s consolidated financial statements, as no triggering event occurred throughout the period. DEFERRED TAX ASSET AND LIABILITY In November 2015, the FASB issued ASU 2015-17, an update on the balance sheet classification of deferred taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in the classified statement of financial position. The updates in the amendment are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In accordance with the amendment guidance, the Company elected to early adopt the new requirement. The amendment was treated prospectively and prior periods were not retrospectively adjusted. FUTURE ACCOUNTING CHANGES REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, an update on revenue from contracts with customers. The core principal of this guideline is that an entity should recognize revenue, to depict the transfer of promised goods or services to customers, in an amount that reflects the consideration for which the entity is entitled to, in exchange for those goods and services. Guidance in this section supersedes the revenue recognition requirements found in topic 605. In August 2015, the FASB issued ASU 2015-14, which defers by one year ASU 2014-09’s effective date. The amendment will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early adoption is permitted only for annual and interim periods beginning after December 15, 2016. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the consolidated financial statements. CLOUD COMPUTING ARRANGEMENTS In April 2015, the FASB issued ASU 2015-05, which clarifies the circumstances under which a cloud computing customer would account for a cloud computing arrangement as a license of internal-use software under Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments provide customers with guidance on determining whether or not a cloud computing arrangement includes a software license that should be accounted as internal-use software. The amendments in this update are effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. INVENTORY In July 2015, the FASB issued ASU 2015-11, an update on Inventory. The amendments in this update require entities to measure most inventories at the lower of cost and net realizable value, therefore simplifying the current guidance under which an entity must measure inventory at the lower of cost or market, which in this context, was defined as one of three different measures and was unnecessarily complex. The amendment does not apply to inventory that has been valued using the LIFO method or the Retail inventory method (“RIM”). The amendments in this update are effective for interim and annual periods beginning after December 15, 2016. The amendments should be applied prospectively and early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, which amends the guidance on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The amendments in this update are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. To adopt the amendments, the Company will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective; early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. |
Acquisition of Businesses
Acquisition of Businesses | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition of Businesses | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 3. ACQUISITION OF BUSINESSES (CONTINUED) NOTE 3. ACQUISITION OF BUSINESSES Acquisition of Laboratorios Indas On January 2, 2014, Domtar Corporation completed the acquisition of 100% of the outstanding shares of Laboratorios Indas, S.A.U. (“Indas”), primarily a branded incontinence products manufacturer and marketer in Spain. Indas has approximately 570 employees and operates two manufacturing facilities in Spain. The results of Indas’ operations have been included in the Personal Care reportable segment as of January 2, 2014. The purchase price was $546 million (€399 million) in cash, net of cash acquired of $46 million (€34 million). 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 were based on information available at that time. The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Receivables $ 101 Inventory 28 Income and other taxes receivable 3 Property, plant and equipment 72 Intangible assets Customer relationships (1) 142 Trade names (2) 140 Catalog rights (2) 46 328 Goodwill 234 Deferred income tax assets 16 Total assets 782 Less: Liabilities Trade and other payables 71 Income and other taxes payable 3 Long-term debt (including short-term portion) 42 Deferred income tax liabilities 119 Other liabilities and deferred credits 1 Total liabilities 236 Fair value of net assets acquired at the date of acquisition 546 (1) The useful life of Customer relationships acquired is between 10-20 years. (2) Indefinite useful life. 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 approximately 410 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 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 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 were based on information available at that time. During the fourth quarter of 2013, the Company completed the evaluation of all assets and liabilities. The table below illustrates the 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) (2) The useful life of the License rights acquired is 12 years. 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 included 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 total purchase price was allocated to tangible and intangible assets acquired based on the Company’s estimates of their fair value, which were based on information available at that time. 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 Customer relationships (1) 1 License rights (2) 6 7 Total assets 11 Fair value of assets acquired at the date of acquisition 11 (1) (2) Indefinite useful life. |
Impairment and Write-Down of Pr
Impairment and Write-Down of Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment and Write-Down of Property, Plant and Equipment | NOTE 4. IMPAIRMENT AND WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT The Company reviews definite-lived intangible assets and property, plant and equipment for impairment upon the occurrence of events or changes in circumstances indicating that, at the lowest level of determinable cash flows, the carrying value of the intangible and long-lived assets may not be recoverable. Estimates of undiscounted future cash flows used to test the recoverability of the fixed assets included key assumptions related to selling prices, inflation-adjusted cost projections, forecasted exchange rates when applicable and the estimated useful life of the fixed assets. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Ashdown, Arkansas pulp and paper mill - Conversion of a paper machine In the fourth quarter of 2014, the Company announced the conversion of a paper machine at Ashdown, Arkansas pulp and paper mill to a high quality fluff pulp line. As a result, the Company recognized $77 million of accelerated depreciation in 2015. An additional $25 million of accelerated depreciation is expected to be incurred in 2016. Given the closure of the paper machine, at the time of the announcement, the Company conducted a Step I impairment test on the Ashdown mill’s asset group and concluded that the undiscounted estimated future cash flows associated with the remaining long-lived assets exceeded their carrying amount. Attends Europe During the fourth quarter of 2013, due to the replacement of certain equipment at its Attends Europe location, the Company recorded a $2 million write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. Pulp and paper converting site During the fourth quarter of 2013, the Company recorded a $5 million write-down of property, plant and equipment in one of its converting sites in the Pulp and Paper segment, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. Ariva U.S. On July 31, 2013, the Company completed the sale of its Ariva business in the United States (“Ariva U.S.”). Ariva U.S. had 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 (Loss) Income. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 5. STOCK-BASED COMPENSATION 2007 OMNIBUS INCENTIVE PLAN Under the Omnibus Plan, the Company may award to key employees and non-employee directors, at the discretion of the Human Resources Committee of the Board of Directors, non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units, performance-conditioned restricted stock units, performance share units, deferred share units and other stock-based awards. The Company generally grants awards annually and uses, when available, treasury stock to fulfill awards settled in common stock and option exercises. PERFORMANCE SHARE UNITS (“PSUs”) PSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash equivalent to the share price for non-Management Committee members, based on market conditions and/or performance and service conditions. These awards have an additional feature where the ultimate number of units that vest will be determined by the Company’s performance results or shareholder return in relation to a predetermined target over the vesting period. No awards vest when the minimum thresholds are not achieved. The performance measurement date will vary depending on the specific award. These awards will cliff vest at various dates up to December 31, 2017. Weighted average grant PSU Number of units date fair value $ Vested and non-vested at December 31, 2012 364,488 52.27 Granted 194,304 35.97 Forfeited (8,554 ) 44.04 Cancelled (101,978 ) 45.85 Vested and settled (98,184 ) 62.83 Vested and non-vested at December 31, 2013 350,076 42.60 Granted 175,815 53.97 Forfeited (33,076 ) 45.29 Cancelled (89,622 ) 49.79 Vested and settled (92,890 ) 46.49 Vested and non-vested at December 31, 2014 310,303 45.52 Granted 219,453 44.22 Forfeited (21,918 ) 45.52 Cancelled (60,768 ) 35.40 Vested and settled (20,991 ) 51.48 Vested and non-vested at December 31, 2015 426,079 46.00 The fair value of PSUs granted in 2015, 2014 and 2013 was estimated at the grant date using a Monte Carlo simulation methodology. The Monte Carlo simulation creates artificial futures by generating numerous sample paths of potential outcomes. The following assumptions were used in calculating the fair value of the units granted: 2015 2014 2013 Dividend yield 3.220 % 1.980 % 2.230 % Expected volatility 1 year 34 % 31 % 23 % Expected volatility 3 years 30 % 31 % 35 % Risk-free interest rate December 31, 2013 — — 0.679 % Risk-free interest rate December 31, 2014 — 0.499 % 0.469 % Risk-free interest rate December 31, 2015 0.732 % 0.447 % 0.549 % Risk-free interest rate December 31, 2016 0.893 % 0.755 % — Risk-free interest rate December 31, 2017 1.200 % — — At December 31, 2015, of the total vested and non-vested PSUs, 174,075 are expected to be settled in shares and 252,004 will be settled in cash. RESTRICTED STOCK UNITS (“RSUs”) RSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash equivalent to the share price for non-Management Committee members, upon completing service conditions. The awards cliff vest after approximately a three year service period. Additionally, the RSUs are credited with dividend equivalents in the form of additional RSUs when cash dividends are paid on the Company’s stock. The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSU Number of units date fair value $ Non-vested at December 31, 2012 566,116 38.68 Granted/issued 121,654 38.24 Forfeited (15,214 ) 41.58 Vested and settled (298,142 ) 34.86 Non-vested at December 31, 2013 374,414 41.46 Granted/issued 130,045 49.95 Forfeited (29,230 ) 44.37 Vested and settled (161,009 ) 41.27 Non-vested at December 31, 2014 314,220 44.80 Granted/issued 164,879 43.21 Forfeited (12,464 ) 44.78 Vested and settled (119,669 ) 44.31 Non-vested at December 31, 2015 346,966 44.21 At December 31, 2015, of the total non-vested RSUs, 133,201 are expected to be settled in shares and 213,765 will be settled in cash. DEFERRED SHARE UNITS (“DSUs”) DSUs are granted to the Company’s Directors. The DSUs granted to the Directors vest immediately on the grant date. The DSUs are credited with dividend equivalents in the form of additional DSUs when cash dividends are paid on the Company’s stock. For Directors’ DSUs, the Company will deliver at the option of the holder either one share of common stock or the cash equivalent of the fair market value on settlement of each outstanding DSU (including dividend equivalents accumulated) upon termination of service. Directors who attained the share ownership requirements may elect to receive the equity component of their annual retainer in DSUs that may be settled in either cash or stock one year after the grant date. The grant date fair value of DSU awards is equal to the market value of the Company’s stock on the date the awards are granted. Management Committee members may elect to defer awards earned under another program into DSUs. In 2015, no vested awards were deferred to DSUs (2014 – 6,799; 2013 – 7,680) and those DSUs can be settled in shares of common stock beginning February 2017. Weighted average grant DSU Number of units date fair value $ Vested at December 31, 2012 277,654 24.14 Granted/issued 38,086 38.80 Settled (43,998 ) 28.21 Vested at December 31, 2013 271,742 25.54 Granted/issued 39,165 44.25 Settled (48,186 ) 32.17 Vested at December 31, 2014 262,721 27.11 Granted/issued 40,494 39.92 Settled (13,755 ) 41.88 Vested at December 31, 2015 289,460 28.20 NON-QUALIFIED & PERFORMANCE STOCK OPTIONS Stock options are granted to Management Committee and non-Management Committee members. The stock options vest at various dates up to February 23, 2018 subject to service conditions for non-qualified stock options and, for performance stock options, if certain market conditions are met in addition to the service period. The options expire at various dates no later than seven years from the date of grant. The fair value of the stock options granted in 2015, 2014 (except for the stock options granted on May 1, 2014) and 2013 was estimated at the grant date using a Black-Scholes based option pricing model or an option pricing model that incorporated the market conditions when applicable. The following assumptions were used in calculating the fair value of the options granted: 2015 2014 2013 Dividend yield 3.22 % 2.62 % 2.67 % Expected volatility 32 % 32 % 35 % Risk-free interest rate 1.47 % 1.34 % 0.76 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 43.42 $ 53.12 $ 38.35 The grant date fair value of the non-qualified options granted in 2015 was $8.96 (2014 – $11.60; 2013 – $8.86). On May 1, 2014, the Company granted 22,448 options to Michael Garcia, President Pulp and Paper Division, as part of his employment conditions, and the following assumptions were used in calculating the fair value of the options granted: 2014 Dividend yield 2.80 % Expected volatility 33 % Risk-free interest rate 1.485 % Expected life 4.5 years Strike price $ 47.08 The grant date fair value of the non-qualified options granted on May 1, 2014 was $10.52. Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS (including Performance options) of options price (in years) (in millions) $ $ Outstanding at December 31, 2012 471,182 40.78 2.2 4.2 Granted 135,174 38.35 6.1 1.2 Exercised (101,852 ) 19.40 — — Forfeited/expired (38,830 ) 50.62 — — Outstanding at December 31, 2013 465,674 43.93 2.6 3.3 Options exercisable at December 31, 2013 200,274 36.83 1.7 2.1 Outstanding at December 31, 2013 465,674 43.93 2.6 3.3 Granted 270,028 52.48 6.2 — Exercised (131,312 ) 37.02 — — Forfeited/expired (186,267 ) 55.67 — — Outstanding at December 31, 2014 418,123 46.39 4.6 0.5 Options exercisable at December 31, 2014 93,027 37.40 2.0 0.3 Outstanding at December 31, 2014 418,123 46.39 4.6 0.5 Granted 82,885 43.42 6.2 — Exercised (35,924 ) 43.13 — — Forfeited/expired (13,782 ) 34.08 — — Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Options exercisable at December 31, 2015 176,315 44.56 3.9 0.1 In addition to the above noted outstanding options, the Company has 672 outstanding and exercisable stock appreciation rights at December 31, 2015 (2014 – 2,352) with a weighted average exercise price of $41.46 (2014 – $38.80). The total intrinsic value of options exercised in 2015 was nil (2014 and 2013 – $2 million, respectively). Based on the Company’s closing year-end stock price of $36.95 (2014 – $40.22; 2013 – $47.17), the aggregate intrinsic value of options outstanding and options exercisable is nil. For the year ended December 31, 2015, stock-based compensation expense recognized in the Company’s results of operations was $10 million (2014 – $9 million; 2013 – $13 million) for all of the outstanding awards. Compensation costs not yet recognized amounted to $16 million (2014 – $14 million; 2013 – $11 million) and will be recognized over the remaining service period of approximately 26 months. The aggregate value of liability awards settled in 2015 was $4 million (2014 – $12 million; 2013 – $10 million). The total fair value of equity awards settled in 2015 was $3 million, representing the fair value at the time of settlement. Compensation costs for performance awards are based on management’s best estimate of the final performance measurement. CLAWBACK FOR FINANCIAL REPORTING MISCONDUCT If a participant in the Omnibus Plan knowingly or grossly negligently engages in financial reporting misconduct, then all awards and gains from the exercise of options or stock appreciation rights in the 12 months prior to the date the misleading financial statements were issued as well as any awards that vested based on the misleading financial statements will be disgorged to the Company. In addition, the Company may cancel or reduce, or require a participant to forfeit and disgorge to the Company or reimburse the Company for, any awards granted or vested, and bonus granted or paid, and any gains earned or accrued, due to the exercise, vesting or settlement of awards or sale of any common stock, to the extent permitted or required by, or pursuant to any Corporation policy implemented as required by applicable law, regulation or stock exchange rule as may from time to time be in effect. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 6. EARNINGS PER COMMON SHARE On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. The calculation of basic earnings per common share is based on the weighted average number of Domtar common shares outstanding during the year. The calculation for diluted earnings per common share recognizes the effect of all potential dilutive common securities. The following table provides the reconciliation between basic and diluted earnings per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 Net earnings $ 142 $ 431 $ 91 Weighted average number of common and exchangeable shares outstanding (millions) 63.3 64.8 66.6 Effect of dilutive securities (millions) 0.1 0.1 0.1 Weighted average number of diluted common and exchangeable shares outstanding (millions) 63.4 64.9 66.7 Basic net earnings per common share (in dollars) $ 2.24 $ 6.65 $ 1.37 Diluted net earnings per common share (in dollars) $ 2.24 $ 6.64 $ 1.36 The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: December 31, December 31, December 31, 2015 2014 2013 Options 343,581 247,152 194,836 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 7. PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the year ended December 31, 2015, the related pension expense was $32 million (2014 – $28 million; 2013 – $29 million). 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. 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. Unionized and non-union hourly employees in the U.S. that are not grandfathered under the existing defined benefit pension plans, participate in 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 and supplemental unfunded defined contribution pension plans to certain senior management employees. Related pension and other post-retirement plan expenses and the corresponding obligations are actuarially determined using management’s most probable assumptions. The Company’s pension plan funding policy is to contribute annually the amount required to provide for benefits earned in the year, and to fund solvency deficiencies, funding shortfalls and past service obligations over periods not exceeding those permitted by the applicable regulatory authorities. Past service obligations primarily arise from improvements to plan benefits. The other post-retirement benefit plans are not funded and contributions are made annually to cover benefit payments. The Company expects to contribute a minimum total amount of $14 million in 2016 compared to $13 million in 2015 (2014 – $29 million; 2013 – $35 million) to the pension plans. The Company expects to contribute a minimum total amount of $4 million in 2016 compared to $5 million in 2015 to the other post-retirement benefit plans (2014 – $5 million; 2013 – $10 million). CHANGE IN ACCRUED BENEFIT OBLIGATION The following table represents the change in the accrued benefit obligation as of December 31, 2015 and December 31, 2014, the measurement date for each year: December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at beginning of year 1,723 105 1,715 103 Service cost for the year 34 2 35 2 Interest expense 60 4 77 5 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (25 ) (5 ) 158 9 Plan amendments 10 — 1 — Benefits paid (76 ) — (87 ) — Direct benefit payments (3 ) (5 ) (5 ) (5 ) Settlement (1 ) — (60 ) — Effect of foreign currency exchange rate change (219 ) (15 ) (117 ) (9 ) Accrued benefit obligation at end of year 1,509 86 1,723 105 CHANGE IN FAIR VALUE OF ASSETS The following table represents the change in the fair value of assets reflecting the actual return on plan assets, the contributions and the benefits paid during the year: December 31, 2015 December 31, 2014 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,721 1,709 Actual return on plan assets 63 253 Employer contributions 13 29 Plan participants' contributions 6 6 Benefits paid (79 ) (92 ) Settlement (1 ) (60 ) Effect of foreign currency exchange rate change (230 ) (124 ) Fair value of assets at end of year 1,493 1,721 INVESTMENT POLICIES AND STRATEGIES OF THE PLAN ASSETS The assets of the pension plans are held by a number of independent trustees and are accounted for separately in the Company’s pension funds. The investment strategy for the assets in the pension plans is to maintain a diversified portfolio of assets, invested in a prudent manner to maintain the security of funds while maximizing returns within the guidelines provided in the investment policy. Diversification of the pension plans’ holdings is maintained in order to reduce the pension plans’ annual return variability, reduce market and credit exposure to any single asset and to any single component of the capital markets, reduce exposure to unexpected inflation, enhance the long-term risk-adjusted return potential of the pension plans and reduce funding risk. Over the long-term, the performance of the pension plans is primarily determined by the long-term asset mix decisions. To manage the long-term risk of not having sufficient funds to match the obligations of the pension plans, the Company conducts asset/liability studies. These studies lead to the recommendation and adoption of a long-term asset mix target that sets the expected rate of return and reduces the risk of adverse consequences to the plans from increases in liabilities and decreases in assets. In identifying the asset mix target that would best meet the investment objectives, consideration is given to various factors, including (a) each plan’s characteristics, (b) the duration of each plan’s liabilities, (c) the solvency and going concern financial position of each plan and their sensitivity to changes in interest rates and inflation, and (d) the long-term return and risk expectations for key asset classes. The investments of each plan can be done directly through cash investments in equities or bonds or indirectly through derivatives or pooled funds. The use of derivatives must be in accordance with an approved mandate and cannot be used for speculative purposes. The Company’s pension funds are not permitted to directly own any of the Company’s shares or debt instruments. The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2015: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2015 2014 Fixed income Cash and cash equivalents 0% - 9% 2 % 3 % Bonds 46%-56% 51 % 57 % Insurance contracts 6% 6 % 0 % Equity Canadian Equity 3% - 11% 6 % 6 % U.S. Equity 9% - 19% 15 % 15 % International Equity 15%-25% 20 % 19 % Total (1) 100 % 100 % (1) Approximately 80% of the pension plans' assets relate to Canadian plans and 20% relate to U.S. plans. RECONCILIATION OF FUNDED STATUS TO AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS The following table presents the difference between the fair value of assets and the actuarially determined accrued benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at end of year (1,509 ) (86 ) (1,723 ) (105 ) Fair value of assets at end of year 1,493 — 1,721 — Funded status (16 ) (86 ) (2 ) (105 ) The funded status includes $46 million of accrued benefit obligation ($53 million at December 31, 2014) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (4 ) — (5 ) Other liabilities and deferred credits (Note 20) (129 ) (82 ) (123 ) (100 ) Other assets (Note 15) 113 — 121 — Net amount recognized in the Consolidated Balance Sheets (16 ) (86 ) (2 ) (105 ) The following table presents the pre-tax amounts included in Other comprehensive (loss) income: Year ended Year ended Year ended December 31, 2015 December 31, 2014 December 31, 2013 Other Other Other Pension post-retirement Pension post-retirement Pension post-retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service credit (10 ) — (1 ) — — — Amortization of prior year service cost (credit) 3 — 3 — 3 (1 ) Net gain (loss) 2 4 (8 ) (8 ) 126 10 Amortization of net actuarial loss 7 1 28 — 38 1 Net amount recognized in other comprehensive income (loss) (pre-tax) 2 5 22 (8 ) 167 10 An estimated amount of $9 million for pension plans and nil for other post-retirement benefit plans will be amortized from Accumulated other comprehensive loss into net periodic benefit cost in 2016. At December 31, 2015, the accrued benefit obligation and the fair value of defined benefit plan assets with an accrued benefit obligation in excess of fair value of plan assets were $405 million and $276 million, respectively (2014 – $412 million and $290 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2015 2014 2013 $ $ $ Service cost for the year 34 35 42 Interest expense 60 77 75 Expected return on plan assets (86 ) (101 ) (96 ) Amortization of net actuarial loss 7 9 25 Curtailment loss (a) — — 1 Settlement loss (b) — 19 13 Amortization of prior year service costs 3 3 3 Net periodic benefit cost 18 42 63 Year ended December 31, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for other post-retirement benefit plans 2015 2014 2013 $ $ $ Service cost for the year 2 2 3 Interest expense 4 5 5 Net periodic benefit cost 6 7 8 (a) The curtailment loss for the year ended December 31, 2013 of $1 million is related to a U.S. hourly plan. (b) The settlement loss of $19 million in the pension plans for the year ended December 31, 2014 is related to the previously closed Ottawa, Ontario paper mill. The settlement loss of $13 million in the pension plans for the year ended December 31, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 16 “Closure and restructuring costs and liability”). WEIGHTED-AVERAGE ASSUMPTIONS The Company used the following key assumptions to measure the accrued benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2015 2014 2013 Accrued benefit obligation Discount rate 4.0 % 3.9 % 4.1 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.8 % 4.7 % 4.2 % Rate of compensation increase 3.2 % 2.7 % 2.8 % Expected long-term rate of return on plan assets 6.6 % 6.4 % 5.8 % Effective December 31, 2015, the Company changed the approach used to estimate the current service and interest cost components of net periodic benefit cost for Canadian pension plans and U.S. funded pension plans utilizing a yield curve approach. This change compared to the previous approach will result in different current service and interest cost components of net periodic benefit cost (credit) in future periods. Previously, the current service and interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the defined benefit obligation at the beginning of the year for each country. The Company elected to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to provide a more precise measurement of current service and interest cost components by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change does not affect the measurement of the total defined benefit obligation, but will affect the current service and interest cost components going forward. The Company has accounted for this change as a change in accounting estimate. For the U.S. unfunded pension plan and other post-retirement benefits, given materiality, the previous approach has continued to be applied except that discount rates were determined based on plans’ projected cash flows. For Canadian plans, short-term yields to maturity are derived from actual AA rated corporate bond yield data. For longer terms, extrapolated data is used. The extrapolated data are created by adding a term-based spread over long provincial bond yields. The spread is based on the observed spreads between AA rated corporate bonds and AA rated provincial bonds in three sections of the yield curve. For U.S. funded plans, the rates are taken from the Mercer Yield Curve which is based on bonds rated AA or better by Moody’s or Standard & Poor’s, excluding callable bonds, bonds of less than a minimum issue size, and certain other bonds. The universe of bonds also includes private placement (traded in reliance on Rule 144A and with at least two years to maturity), make whole, and foreign corporation (denominated in U.S. dollars) bonds. The discount rate for U.S. unfunded plans of 4.1% is obtained by incorporating the plans’ expected cash flows in the Mercer Yield Curve. Effective January 1, 2016, the Company will use 5.5% (2015 – 5.6%; 2014 – 6.4%) as the expected return on plan assets, which reflects the current view of long-term investment returns. The overall expected long-term rate of return on plan assets is based on management's best estimate of the long-term returns of the major asset classes (cash and cash equivalents, equities, and bonds) weighted by the actual allocation of assets at the measurement date, net of expenses. This rate includes an equity risk premium over government bond returns for equity investments and a value-added premium for the contribution to returns from active management. The sources used to determine management's best estimate of long-term returns are numerous and include country specific bond yields, which may be derived from the market using local bond indices or by analysis of the local bond market, and country-specific inflation and investment market expectations derived from market data and analysts' or governments' expectations as applicable. December 31, December 31, December 31, Other post-retirement benefit plans 2015 2014 2013 Accrued benefit obligation Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.9 % 4.8 % 4.2 % Rate of compensation increase 2.8 % 2.7 % 2.8 % For measurement purposes, a 5.0% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015. The rate was assumed to decrease gradually to 4.1% by 2033 and remain at that level thereafter. An increase or decrease of 1% of this rate would have the following impact: Increase of 1% Decrease of 1% $ $ Impact on net periodic benefit cost for other post-retirement benefit plans 1 (1 ) Impact on accrued benefit obligation 7 (6 ) FAIR VALUE MEASUREMENT Fair Value Measurements and Disclosures Topic of FASB ASC 820 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 assets or liabilities. The following table presents the fair value of the plan assets at December 31, 2015, by asset category: Fair Value Measurements at December 31, 2015 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 67 67 — — Asset backed notes (1) 146 — 136 10 Canadian government bonds 141 141 — — Canadian corporate debt securities 3 2 1 — Bond index funds (2 & 3) 466 — 466 — Canadian equities (4) 96 96 — — U.S. equities (5) 37 37 — — International equities (6) 229 229 — — U.S. stock index funds (3 & 7) 218 — 218 — Insurance contracts (8) 86 — — 86 Derivative contracts (9) 4 — 4 — Total 1,493 572 825 96 (1) This category is described in the section “Asset Backed Notes”. (2) This category represents two Canadian bond index funds not actively managed that track the FTSE TMX Long-term bond index, and the FTSE TMX Universe bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (3) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (4) This category represents an active segregated, large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and $4 million of Canadian equities held within an active segregated global equity portfolio. (5) This category represents U.S. equities held within an active segregated global equity portfolio. (6) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (7) This category represents equity index funds, not actively managed, that track the Standard & Poor’s 500 (“S&P 500”) index and an equity index fund not actively managed that tracks the Russell 3000 index. (8) This category includes: 1) two group annuity contracts totaling $78 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $8 million of insurance contracts with a minimum guarantee rate. (9) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. The following table presents the fair value of the plan assets at December 31, 2014, by asset category: Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 72 72 — — Asset backed notes (1) 180 — 165 15 Canadian government bonds 93 93 — — Canadian corporate debt securities 4 — 4 — Bond index funds (2 & 3) 691 — 691 — Canadian equities (4) 116 116 — — U.S. equities (5) 42 42 — — International equities (6) 255 255 — — U.S. stock index funds (3 & 7) 256 — 256 — Insurance contracts (8) 8 — — 8 Derivative contracts (9) 4 — 4 — Total 1,721 578 1,120 23 (1) This category is described in the section “Asset Backed Notes”. (2) This category represents a Canadian bond index fund not actively managed that tracks the DEX Long-term bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (3) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (4) This category represents active segregated, large capitalization Canadian equity portfolios with the ability to purchase small and medium capitalized companies and $6 million of Canadian equities held within an active segregated global equity portfolio. (5) This category represents U.S. equities held within an active segregated global equity portfolio. (6) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (7) This category represents equity index funds, not actively managed, that track the S&P 500. (8) This category represents insurance contracts with a minimum guarantee rate. (9) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. ASSET BACKED NOTES At December 31, 2015, Domtar’s Canadian defined benefit pension funds held restructured asset backed notes (“ABN”) valued at $146 million (CDN $201 million). At December 31, 2014, the plans held ABN valued at $180 million (CDN $209 million). During 2015, the total value of ABN was reduced by repayments and sales totalling $6 million (CDN $8 million), and by a $28 million impact of a decrease in the value of the Canadian dollar. Most of these ABN, with a current value of $140 million (2014 and 2013 – $171 million and $193 million, respectively), were subject to restructuring under the court order governing the Montreal Accord that was completed in January 2009. About $136 million of these notes are expected to mature in one year. These notes are valued based upon current market quotes and auction results. The market values are supported by the value of the underlying investments held by the issuing conduit. The values for the $4 million of remaining ABN, that also were subject to the Montreal Accord, were sourced either from the asset manager of the ABN, or from trading values for similar securities of similar credit quality. An additional $6 million of ABN were restructured separately from the Montreal Accord. They are valued based upon the value of the collateral investments held in the conduit issuer, reduced by the negative value of credit default derivatives, with an additional discount (equivalent 1.75% per annum) applied for illiquidity. They are expected to mature in one year. Possible changes that could impact the future value of ABN include: (1) changes in the value of the underlying assets and the related derivative transactions, (2) developments related to the liquidity of the ABN market, (3) a severe and prolonged economic slowdown in North America and the bankruptcy of referenced corporate credits, and (4) the passage of time, as most of the notes will mature in approximately one year. The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ABN (1) Insurance contracts TOTAL $ $ $ Balance at December 31, 2013 17 8 25 Purchases/(Settlements) (14 ) 1 (13 ) Return on plan assets 13 1 14 Effect of foreign currency exchange rate change (1 ) (2 ) (3 ) Balance at December 31, 2014 15 8 23 Purchases/(Settlements) (4 ) 79 75 Return on plan assets 1 3 4 Effect of foreign currency exchange rate change (2 ) (4 ) (6 ) Balance at December 31, 2015 10 86 96 ( 1 ) ESTIMATED FUTURE BENEFIT PAYMENTS FROM THE PLANS Estimated future benefit payments from the plans for the next 10 years at December 31, 2015 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2016 96 4 2017 93 4 2018 96 4 2019 97 5 2020 97 5 2021-2025 497 23 |
Other Operating (Income) Loss,
Other Operating (Income) Loss, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Loss, Net | NOTE 8. OTHER OPERATING (INCOME) LOSS, NET Other operating (income) loss, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from year to year. The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 $ $ $ Alternative fuel tax credits (Note 10) — (18 ) 26 Loss on sale of business (1) — — 20 Net gain on sale of property, plant and equipment (2) (15 ) — (16 ) Bad debt expense 5 2 2 Environmental provision 4 1 (1 ) Foreign exchange gain (3 ) (1 ) (9 ) Litigation settlement (3) — — 49 Proceeds from insurance claims on machinery and equipment — (11 ) — Other 4 (2 ) 1 Other operating (income) loss, net (5 ) (29 ) 72 (1) (2) (3) |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 31, 2015 | |
Banking And Thrift Interest [Abstract] | |
Interest Expense, Net | NOTE 9. INTEREST EXPENSE, NET The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ Interest on long-term debt (1) 82 95 81 Premium paid on repurchase of long-term debt 40 — 2 Reversal of fair value (increment) decrement on debentures (1 ) — 1 Receivables securitization 1 1 1 Interest on withdrawal from multiemployer plans 4 3 — Amortization of debt issue costs and other 6 4 4 132 103 89 (1) The Company capitalized $3 million of interest expense in 2015 ($3 million in 2014 and 2013, respectively). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES The Company’s earnings before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. earnings 26 86 37 Foreign earnings 130 175 35 Earnings before income taxes 156 261 72 Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. Federal and State: Current 61 20 (13 ) Deferred (78 ) (213 ) (22 ) Foreign: Current 9 11 1 Deferred 22 12 14 Income tax expense (benefit) 14 (170 ) (20 ) The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 35% to earnings before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. federal statutory income tax 55 91 25 Reconciling Items: State and local income taxes, net of federal income tax benefit 1 3 1 Foreign income tax rate differential (16 ) (18 ) (6 ) Tax credits and special deductions (16 ) (18 ) (54 ) Alternative fuel tax credit (income) expense — (6 ) 9 Non-deductible litigation payments — — 13 Tax rate changes (5 ) (16 ) (3 ) Uncertain tax positions 1 (194 ) (3 ) U.S. manufacturing deduction (6 ) (9 ) (5 ) Functional currency differences 1 (5 ) — Valuation allowance on deferred tax assets (1 ) 7 5 Other — (5 ) (2 ) Income tax expense (benefit) 14 (170 ) (20 ) During 2015, the Company recorded $16 million of tax credits, mainly research and experimentation credits, which significantly impacted the effective tax rate. Additionally, the effective tax rate for 2015 was also impacted by the manufacturing deduction in the U.S., enacted law changes in various U.S. states, and the impact of the Company’s foreign operations being taxed at lower statutory tax rates. During 2013, the Company recorded $54 million of various tax credits pertaining to current and prior years. These credits included the conversion of $26 million of AFTC into $55 million of Cellulosic Biofuel Producer Credits (“CBPC”) resulting in an after-tax benefit of $33 million for the new credit, as well as research and experimentation credits and other federal and state credits. Also, the Company’s effective tax rate was reduced in 2013 by the impact of the U.S. manufacturing deduction and enacted law changes in certain states and provinces. The effective tax rate was increased by the impact of certain non-deductible payments, mainly the litigation settlement and the AFTC repayment, and an increase in the valuation allowance on certain losses. Additionally, the effective tax rate was impacted by an $8 million reduction in unrecognized tax benefits pertaining to the AFTC which was converted to CBPC, partially offset by $5 million of accrued interest on uncertain tax positions. Deferred tax assets and liabilities are based on tax rates that are expected to be in effect in future periods when deferred items are expected to reverse. Changes in tax rates or tax laws affect the expected future benefit or expense. The effect of such changes that occurred during each of the last three fiscal years is included in “Tax rate changes” disclosed under the effective income tax rate reconciliation shown above. DEFERRED TAX ASSETS AND LIABILITIES The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2015 and December 31, 2014 are comprised of the following: December 31, December 31, 2015 2014 $ $ Accounting provisions 57 56 Net operating loss carryforwards and other deductions 48 78 Pension and other employee future benefit plans 59 61 Inventory 17 15 Tax credits 25 34 Other 16 10 Gross deferred tax assets 222 254 Valuation allowance (23 ) (25 ) Net deferred tax assets 199 229 Property, plant and equipment (647 ) (734 ) Impact of foreign exchange on long-term debt and investments (6 ) (10 ) Intangible assets (157 ) (170 ) Total deferred tax liabilities (810 ) (914 ) Net deferred tax liabilities (611 ) (685 ) Included in: Deferred income tax assets — 75 Other assets (Note 15) 2 4 Deferred income taxes and other (613 ) (764 ) Total (611 ) (685 ) With the acquisition of AHP on July 1, 2013, and Attends U.S. on September 1, 2011, the Company acquired additional federal net operating loss carryforwards of $48 million and $2 million, respectively. These U.S. federal net operating losses are subject to annual limitations under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), that can vary from year to year. At December 31, 2015, the Company had $1 million of federal net operating loss carryforwards remaining which expire in 2032. The Canadian scientific research and experimental development expenditures have been fully utilized as of December 31, 2015. The Company also has other foreign net operating loss carryforwards of $7 million, of which $5 million will begin to expire in 2017, $89 million, which may be carried forward indefinitely, and $45 million of finance expenditures not previously deducted. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible. The Company evaluates the realization of deferred tax assets on a quarterly basis. Evaluating the need for an amount of a valuation allowance for deferred tax assets often requires significant judgment. All available evidence, both positive and negative, is considered when determining whether, based on the weight of that evidence, a valuation allowance is needed. Specifically, we evaluated the following items: · Historical income / (losses) – particularly the most recent three-year period · Reversals of future taxable temporary differences · Projected future income / (losses) · Tax planning strategies · Divestitures Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, with the exception of certain state credits for which a valuation allowance of $4 million exists at December 31, 2015, and certain foreign loss carryforwards for which a valuation allowance of $19 million exists at December 31, 2015. Of this amount, $(1) million impacted tax expense and the effective tax rate for 2015 (2014 - $7 million; 2013 - $5 million). The earnings of the foreign subsidiaries, which reflect full provision for income taxes, are currently indefinitely reinvested in foreign operations. The Company does not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries as computation of these amounts is not practicable. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES At December 31, 2015, the Company had gross unrecognized tax benefits of approximately $41 million ($48 million and $259 million for 2014 and 2013, respectively). If recognized in 2016, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. December 31, December 31, December 31, 2015 2014 2013 $ $ $ Balance at beginning of year 48 259 254 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 2 10 9 Reductions for tax positions of prior years (1 ) — (10 ) Reductions related to settlements with taxing authorities (4 ) (223 ) (2 ) Expirations of statutes of limitations (7 ) (4 ) — Interest 1 4 5 Foreign exchange impact (1 ) (1 ) — Balance at end of year 41 48 259 As a result of the acquisition of Indas on January 2, 2014 and AHP on July 1, 2013, the Company recorded unrecognized tax benefits which are shown as additions for tax positions of prior years in the table above. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. The major jurisdictions where the Company and its subsidiaries will file tax returns for 2015, in addition to filing one consolidated U.S. federal income tax return, are Canada, Sweden and Spain. The Company and its subsidiaries will also file returns in various other countries in Europe and Asia as well as various states and provinces. At December 31, 2015, the Company’s subsidiaries are subject to foreign federal income tax examinations for the tax years 2007 through 2014, with federal years prior to 2012 being closed from a cash tax liability standpoint in the U.S., but the loss carryforwards can be adjusted in any open year where the loss has been utilized. The Company does not anticipate that adjustments stemming from these audits would result in a significant change to the results of its operations and financial condition. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 11. INVENTORIES The following table presents the components of inventories: December 31, December 31, 2015 2014 $ $ Work in process and finished goods 432 387 Raw materials 130 123 Operating and maintenance supplies 204 204 766 714 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 12. GOODWILL The carrying value and any changes in the carrying value of goodwill are as follows: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 567 369 Acquisition of Indas — 234 Effect of foreign currency exchange rate change (28 ) (36 ) Balance at end of year 539 567 The goodwill at December 31, 2015 is entirely related to the Personal Care reporting segment. The Company performed its annual goodwill impairment testing at October 1, 2015, 2014 and 2013 and determined that the estimated fair value of the reporting units exceeded their carrying values. As a result, no impairment charges were recorded during 2015, 2014 or 2013. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 13. PROPERTY, PLANT AND EQUIPMENT The following table presents the components of property, plant and equipment: Range of December 31, December 31, useful lives 2015 2014 $ $ Machinery and equipment 3-20 7,255 7,537 Buildings and improvements 10-40 975 1,005 Timberlands 196 243 Assets under construction 224 124 8,650 8,909 Less: Allowance for depreciation and amortization (5,815 ) (5,778 ) 2,835 3,131 Depreciation expense related to property, plant and equipment for the year ended December 31, 2015 was $340 million (2014 – $363 million; 2013 – $366 million). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 14. INTANGIBLE ASSETS The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2015 2014 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 7 (1 ) 6 8 (1 ) 7 Customer relationships 10 - 40 354 (46 ) 308 374 (32 ) 342 Technology 7 - 20 8 (2 ) 6 8 (2 ) 6 Non-Compete 9 1 — 1 1 — 1 License rights 12 28 (6 ) 22 29 (4 ) 25 398 (55 ) 343 420 (39 ) 381 Indefinite-lived intangible assets not subject to amortization Trade names 215 — 215 233 — 233 License rights 6 — 6 6 — 6 Catalog rights 37 — 37 41 — 41 Total 656 (55 ) 601 700 (39 ) 661 Amortization expense related to intangible assets for the year ended December 31, 2015 was $19 million (2014 – $21 million; 2013 – $10 million). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2016 2017 2018 2019 2020 $ $ $ $ $ Amortization expense related to intangible assets 19 19 19 18 18 The Company performed its annual impairment test on its indefinite-lived intangible assets at October 1, 2015 and 2014, using a quantitative approach, except for the license rights, where the Company used a qualitative approach, and determined that the estimated fair values of its indefinite-lived intangible assets significantly exceeded their carrying amounts. On October 1, 2013, the Company performed the qualitative assessment of indefinite-lived intangible assets. After assessing the totality of events and circumstances, the Company determined that it was more likely than not that the fair values of the indefinite-lived intangible assets was greater than their respective carrying amounts. Thus, performing the Step I impairment test was unnecessary. No impairment charge was recorded for indefinite-lived intangible assets during 2015, 2014 or 2013. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 15. OTHER ASSETS The following table presents the components of other assets: December 31, December 31, 2015 2014 $ $ Pension asset - defined benefit pension plans (Note 7) 113 121 Unamortized debt issue costs 12 14 Deferred income tax assets (Note 10) 2 4 Asset backed notes 1 10 Other 6 7 134 156 |
Closure and Restructuring Costs
Closure and Restructuring Costs and Liability | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Liability | NOTE 16. CLOSURE AND RESTRUCTURING COSTS AND LIABILITY The Company regularly reviews its overall production capacity with the objective of aligning its production capacity with anticipated long-term demand, which in some cases could result in closure or impairment costs being recorded in earnings. In the first quarter of 2013, as a result of a revision in the Company’s estimated withdrawal liability for U.S. multiemployer plans, the Company recorded a charge to earnings of $1 million. During the second and third quarters of 2013, the Company withdrew from its remaining U.S. multiemployer pension plans and recorded a withdrawal liability and a charge to earnings of $14 million, of which $3 million was recorded in Closure and restructuring costs and $11 million related to the sale of its Ariva U.S. business in Other operating (income) loss, net on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. At December 31, 2015, the total provision for the withdrawal liabilities was $54 million. Ashdown, Arkansas mill On December 10, 2014, the Company announced that its Board of Directors approved a $160 million capital project to convert a paper machine at the Ashdown, Arkansas mill to a high quality fluff pulp line used in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products. The planned conversion is expected to come online by the third quarter of 2016 and will allow for the production of up to 516,000 metric tons of fluff pulp per year once the machine is in full operation. The project will also result in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity in the second quarter of 2016. The conversion work is expected to commence during the second quarter of 2016 and the fluff pulp line is scheduled to startup by the third quarter of 2016. The cost of conversion will be approximately $160 million of which $60 million was invested in 2015 and $100 million is expected to be invested in 2016. The Company also invested in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions. The cost of the pulp bale line will be approximately $40 million of which $21 million was invested in 2015. The Company recorded $77 million for the year ended December 31, 2015, of accelerated depreciation under Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. During 2015, the Company also recorded $3 million of severance and termination costs under Closure and restructuring costs. In the fourth quarter of 2014, the Company recorded $4 million of accelerated depreciation under Impairment and write-down of property plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income and $3 million of inventory obsolescence under Closure and restructuring costs. Indianapolis, Indiana Converting On October 13, 2014, the Company announced the closure of its Indianapolis, Indiana plant and the shutdown affected approximately 60 employees. As a result, during the fourth quarter of 2014, the Company recorded $2 million of severance and termination costs and $1 million of inventory obsolescence. Attends Europe During the fourth quarter of 2013, the Company recorded a $2 million write-down of property, plant and equipment due to the replacement of certain equipment at its Attends Europe location, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. Pulp and paper converting site During the fourth quarter of 2013, the Company recorded a $5 million write-down of property, plant and equipment at one of its converting sites in the Pulp and Paper segment, in Impairment and write-down of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive (Loss) Income. Ariva U.S. On July 31, 2013, the Company completed the sale of its Ariva U.S. business which had 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 (Loss) Income. Kamloops, British Colombia pulp facility On December 13, 2012, the Company announced the permanent shut down of one pulp machine in Kamloops, British Colombia 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, in the first quarter of 2013, $10 million of accelerated depreciation under Impairment and write-down of property, plant and equipment, and 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. Other costs During 2015, other costs related to previous and ongoing closures included $1 million of severance and termination costs (2014 – $3 million; 2013 – $2 million). The following tables provide the components of closure and restructuring costs by segment: Year ended December 31, 2015 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 3 1 4 Closure and restructuring costs 3 1 4 Year ended December 31, 2014 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 4 1 5 Inventory write-down 4 — 4 Pension settlement and withdrawal liability 19 (a) — 19 Closure and restructuring costs 27 1 28 (a) Year Ended December 31, 2013 Pulp and Paper Personal Care Corporate Total $ $ $ $ Severance and termination costs (2 ) 2 — — Inventory obsolescence reversal (1 ) — — (1 ) Pension settlement and withdrawal liability 11 (b) — 6 (c) 17 Other 2 — — 2 Closure and restructuring costs 10 2 6 18 (b) (c) The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 2 3 Additions 4 4 Payments (3 ) (5 ) Reversal — (1 ) Acquisition of business — 1 Balance at end of year 3 2 The $3 million provision comprised of severance and termination costs is in the Pulp and Paper segment. Closure and restructuring costs are based on management’s best estimates at December 31, 2015. Actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further write-downs may be required in future periods. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Trade and Other Payables | NOTE 17. TRADE AND OTHER PAYABLES The following table presents the components of trade and other payables: December 31, December 31, 2015 2014 $ $ Trade payables 350 374 Payroll-related accruals 160 149 Accrued interest 18 26 Payables on capital projects 16 21 Rebate accruals 66 68 Liability - pension and other post-retirement benefit plans (Note 7) 4 4 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 22) 14 16 Closure and restructuring costs liability (Note 16) 3 2 Derivative financial instruments (Note 23) 53 27 Dividends payable (Note 21) 25 24 Stock-based compensation - liability awards 4 3 Other 5 5 720 721 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 18. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) Net derivative (losses) gains on cash flow Post-retirement Foreign currency hedges Pension items (2) benefit items (2) items Total Balance at December 31, 2013 — (210 ) (7 ) 152 (65 ) Natural gas swap contracts (10 ) N/A N/A N/A (10 ) Currency options (15 ) N/A N/A N/A (15 ) Foreign exchange forward contracts 2 N/A N/A N/A 2 Net gain N/A (4 ) (6 ) N/A (10 ) Foreign currency items N/A N/A N/A (200 ) (200 ) Other comprehensive loss before reclassifications (23 ) (4 ) (6 ) (200 ) (233 ) Amounts reclassified from Accumulated other comprehensive loss 8 22 — — 30 Net current period other comprehensive (loss) income (15 ) 18 (6 ) (200 ) (203 ) Balance at December 31, 2014 (15 ) (192 ) (13 ) (48 ) (268 ) Natural gas swap contracts (8 ) N/A N/A N/A (8 ) Currency options (40 ) N/A N/A N/A (40 ) Foreign exchange forward contracts 7 N/A N/A N/A 7 Net (gain) loss N/A (5 ) 3 N/A (2 ) Foreign currency items N/A N/A N/A (223 ) (223 ) Other comprehensive (loss) income before reclassifications (41 ) (5 ) 3 (223 ) (266 ) Amounts reclassified from Accumulated other comprehensive loss 26 7 — — 33 Net current period other comprehensive (loss) income (15 ) 2 3 (223 ) (233 ) Balance at December 31, 2015 (30 ) (190 ) (10 ) (271 ) (501 ) (1) All amounts are after tax. Amounts in parenthesis indicate losses. (2) The accrued benefit obligation is actuarially determined on an annual basis as of December 31. The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss (1) Year ended December 31, 2015 2014 2013 Net derivative gains (losses) on cash flow hedge Natural gas swap contracts 16 (4 ) 4 (2) Currency options and forwards 28 16 4 (2) Total before tax 44 12 8 Tax benefit (18 ) (4 ) (3 ) Net of tax 26 8 5 Amortization of defined benefit pension items Amortization of prior year service cost 3 22 17 (3) Amortization of net actuarial loss 7 9 25 (3) Total before tax 10 31 42 Tax benefit (3 ) (9 ) (12 ) Net of tax 7 22 30 Amortization of other post-retirement benefit plans' items Amortization of net actuarial loss — — 1 (3) Total before tax — — 1 Tax benefit — — — Net of tax — — 1 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. (3) These amounts are included in the computation of net periodic pension cost (see Note 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 19. LONG-TERM DEBT Par December 31, December 31, Maturity Amount Currency 2015 2014 $ $ $ Unsecured notes 7.125% Notes 2015 167 US — 166 9.5% Notes 2016 39 US 39 96 10.75% Notes 2017 63 US 63 275 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 249 249 Revolving Credit Facility 2019 50 US 50 — Term Loan 2025 300 US 300 — Capital lease obligations and other 2016 - 2028 10 15 1,260 1,350 Less: Due within one year 41 169 1,219 1,181 Principal long-term debt repayments, including capital lease obligations, in each of the next five years will amount to: Long-term debt Capital leases and other $ $ 2016 39 3 2017 63 1 2018 — 1 2019 50 1 2020 — 1 Thereafter 1,100 7 1,252 14 Less: Amounts representing interest — 4 Total payments 1,252 10 UNSECURED NOTES The Company redeemed on August 20, 2015 (the redemption date), $55 million in aggregate principal amount of its 9.5% Notes due 2016, representing approximately 59% of the outstanding notes, and $215 million in aggregate principal amount of its 10.75% Notes due 2017, representing approximately 77% of the outstanding notes. The redemption price for the notes was equal to 100% of the principal amount of such notes, plus accrued and unpaid interest, plus a make-whole premium. Debt refinancing costs of $42 million were incurred in the third quarter of 2015. In addition, the Company’s 7.125% Notes, in the aggregate principal amount of $167 million, matured on August 15, 2015. The above-noted redemptions and repayment of notes were funded through a combination of cash on hand, borrowings under the Company’s credit facilities and proceeds from a new $300 million 10-year term loan agreement with a syndicate of bank lenders. 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 Statements of Earnings and Comprehensive (Loss) Income. BANK FACILITY On October 3, 2014, the Company entered into a $600 million amended and restated Credit Agreement that matures on October 3, 2019. The previous credit facility was scheduled to mature on June 15, 2017. The Credit Agreement provides for a revolving credit facility (including a letter of credit sub-facility and a swingline sub-facility), which may be borrowed in U.S. Dollars, Canadian Dollars (in an amount up to the Canadian Dollar equivalent of $150 million) and Euros (in an amount up to the Euro equivalent of $200 million). The Company may increase the maximum aggregate amount of availability under the Credit Agreement by up to $400 million, borrow this increased amount as a term loan, and extend the final maturity of the Credit Agreement by one year, subject to the agreement of applicable lenders. Borrowings under the Credit Agreement bear interest at LIBOR, EURIBOR, Canadian bankers' acceptance or prime rate, as applicable, plus a margin linked to a credit rating at the time of borrowing. In addition, the Company pays facility fees quarterly at rates dependent on the Company's credit ratings. The Credit Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Credit Agreement that must be maintained at a level of not greater than 3.75 to 1. At December 31, 2015, the Company was in compliance with these financial covenants, and $50 million was borrowed (December 31, 2014 – nil). At December 31, 2015, the Company had no outstanding letters of credit under this credit facility (December 31, 2014 – nil). All borrowings under the Credit Agreement are unsecured. However, certain domestic subsidiaries of the Company unconditionally guarantee any obligations from time to time arising under the Credit Agreement, and certain subsidiaries of the Company that are not organized in the United States unconditionally guarantee any obligations of Domtar Inc., the Canadian subsidiary borrower, or of additional borrowers that are not organized in the United States, under the Credit Agreement, in each case, subject to the provisions of the Credit Agreement. TERM LOAN On July 20, 2015, a wholly-owned subsidiary of Domtar entered into a $300 million Term Loan Agreement that matures on July 20, 2025. The facility was fully drawn on August 19, 2015. Borrowings under the Term Loan Agreement bear interest at LIBOR plus a margin of 1.875%. The Term Loan Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not greater than 3.75 to 1. At December 31, 2015, the Company was in compliance with these financial covenants. All borrowings under the Term Loan are unsecured. The Company and certain domestic subsidiaries of the Company unconditionally guarantee any obligations from time to time arising under the Term Loan Agreement. RECEIVABLES SECURITIZATION The Company has a $150 million receivables securitization facility that matures in March 2016, with a utilization limit for borrowings or letters of credit of $113 million at December 31, 2015. On February 12, 2016, this facility was renewed to mature in March 2019. The Company uses securitization of certain receivables to provide additional liquidity to fund its operations. The costs under the program may vary based on changes in interest rates. The Company’s securitization program consists of the ongoing sale of most of the receivables of its domestic subsidiaries to a bankruptcy remote consolidated subsidiary which, in turn, transfers a senior beneficial interest in them to a special purpose entity managed by a financial institution for multiple sellers of receivables to support the issue of letters of credit or borrowings. The program contains certain termination events, which include, but are not limited to, matters related to receivable performance, certain defaults occurring under the credit facility, or the failure by Domtar to satisfy material obligations. At December 31, 2015, the Company had no borrowings and $38 million of letters of credit outstanding under the program (2014 – nil and $45 million, respectively). Sales of receivables under this program are accounted for as secured borrowings. In 2015, a net charge of $1 million (2014 – $1 million; 2013 – $1 million) resulted from the program described above and was included in Interest expense, net in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Deferred Credits | NOTE 20. OTHER LIABILITIES AND DEFERRED CREDITS The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2015 2014 $ $ Liability - other post-retirement benefit plans (Note 7) 82 100 Pension liability - defined benefit pension plans (Note 7) 129 123 Pension liability - multiemployer plan withdrawal 52 58 Provision for environmental and asset retirement obligations (Note 22) 38 44 Stock-based compensation - liability awards 13 14 Derivative financial instruments 14 15 Other 22 24 350 378 ASSET RETIREMENT OBLIGATIONS The asset retirement obligations are principally linked to landfill capping obligations, asbestos removal obligations and demolition of certain abandoned buildings. At December 31, 2015, Domtar estimated the net present value of its asset retirement obligations to be $16 million (2014 – $20 million); the present value is based on probability weighted undiscounted cash outflows of $61 million (2014 – $64 million). The majority of the asset retirement obligations are estimated to be settled prior to December 31, 2055. Domtar’s credit adjusted risk-free rates were used to calculate the net present value of the asset retirement obligations. The rates used vary between 5.5% and 12.0%, based on the prevailing rate at the moment of recognition of the liability and on its settlement period. The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2015 2014 $ $ Asset retirement obligations, beginning of year 20 21 Revisions to estimated cash flows (3 ) — Asset retirement obligation payments (1 ) (2 ) Accretion expense 1 2 Effect of foreign currency exchange rate change (1 ) (1 ) Asset retirement obligations, end of year 16 20 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 21. SHAREHOLDERS’ EQUITY On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 received one additional share for every share they owned on that date. As a result of the stock split, total shares of the Company’s common stock outstanding increased from approximately 32.5 million to 65 million. In addition, the Company’s Board of Directors approved an increase in the quarterly dividend on its common stock on a post-split basis, from $0.275 to $0.375 per share. This was equivalent to, on a pre-split basis, an increase of $0.20 per share (36%) per quarter. During 2015, the Company declared four quarterly dividends of $0.40 per share, to holders of the Company’s common stock. The total dividends of approximately $26 million, $25 million, $25 million and $25 million were paid on April 15, 2015, July 15, 2015, October 15, 2015 and January 15, 2016, respectively, to shareholders of record as of April 2, 2015, July 2, 2015, October 2, 2015 and January 4, 2016, respectively. During 2014, the Company declared one quarterly dividend of $0.275 per share to holders of the Company’s common stock, as well as holders of exchangeable shares of Domtar (Canada) Paper Inc. and three quarterly dividends of $0.375 per share, to holders of the Company’s common stock. The total dividends of approximately $18 million, $24 million, $24 million and $24 million were paid on April 15, 2014, July 15, 2014, October 15, 2014 and January 15, 2015, respectively, to shareholders of record as of March 14, 2014, July 2, 2014, October 2, 2014 and January 2, 2015, respectively. On February 23, 2016, the Company’s Board of Directors approved a quarterly dividend of $0.40 per share to be paid to holders of the Company’s common stock. This dividend is to be paid on April 15, 2016 to shareholders of record on April 4, 2016. STOCK REPURCHASE PROGRAM The Company’s Board of Directors has authorized a stock repurchase program (“the Program”) of up to $1.3 billion. 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 stock options, awards, and to improve shareholders’ returns. The Company makes open market purchases of its common stock using general corporate funds. Additionally, the Company may enter 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 would require the Company to make up-front payments to the counterparty financial institutions which would result 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 2015, the Company repurchased 1,210,932 shares (2014 – 996,967; 2013 – 5,019,606) at an average price of $41.40 (2014 – $38.59; 2013 – $36.55) for a total cost of $50 million (2014 – $38 million; 2013 – $183 million). Since the inception of the Program, the Company repurchased 24,548,912 shares at an average price of $39.42 for a total cost of $968 million. All shares repurchased are recorded as Treasury stock on the Consolidated Balance Sheets under the par value method at $0.01 per share. The authorized stated capital consists of the following: PREFERRED SHARES The Company is authorized to issue 20 million preferred shares, par value $0.01 per share. The Board of Directors of the Company will determine the voting powers (if any) of the shares, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares at the time of issuance. No preferred shares were outstanding at December 31, 2015 or December 31, 2014. COMMON STOCK The Company is authorized to issue two billion shares of common stock, par value $0.01 per share. Holders of the Company’s common stock are entitled to one vote per share. The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2015 and December 31, 2014, were as follows: December 31, December 31, 2015 2014 Number Number Common stock of shares $ of shares $ Balance at beginning of year 64,010,087 1 31,857,451 — Shares issued Stock options — — — — Conversion of exchangeable shares — — 561,510 — Stock split (2:1) (1) — — 32,500,552 1 Treasury stock (1) (1,160,151 ) — (909,426 ) — Balance at end of year 62,849,936 1 64,010,087 1 (1) During 2015, the Company repurchased 1,210,932 shares through the Program (2014 – 996,967) and issued 50,781 shares (2014 – 87,541) out of Treasury stock in conjunction with the exercise of stock-based compensation awards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 22. COMMITMENTS AND CONTINGENCIES ENVIRONMENT The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. In 2015, the Company’s operating expenses for environmental matters, as described in Note 1, amounted to $70 million (2014 – $68 million; 2013 – $69 million). The Company made capital expenditures for environmental matters of $7 million in 2015 (2014 – $14 million; 2013 – $4 million). An action was commenced by Seaspan International Ltd. (“Seaspan”) in the Supreme Court of British Columbia, on March 31, 1999 against the Company 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. On February 16, 2010, the government of British Columbia issued a Remediation Order to Seaspan and the Company, in order to define and implement an action plan to address soil, sediment and groundwater issues. Working with authorities, Seaspan and the Company selected a remedial plan and applied to the Vancouver Fraser Port Authority for permitting approval. On May 14, 2015, the Vancouver Fraser Port Authority issued the permit. It is anticipated that construction will begin in 2016. The Company has recorded an environmental reserve to address its estimated exposure. The 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: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 60 67 Additions 1 2 Environmental spending (3 ) (8 ) Accretion 1 2 Effect of foreign currency exchange rate change (7 ) (3 ) Balance at end of year 52 60 At December 31, 2015, anticipated undiscounted payments in each of the next five years are as follows: 2016 2017 2018 2019 2020 Thereafter Total $ $ $ $ $ $ $ Environmental provision and other asset retirement obligations 14 11 3 1 1 66 96 The U.S. Environmental Protection Agency (“EPA”) and/or various state agencies have notified the Company that it may be a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund,” and similar state laws with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites due to possible soil, sediment or groundwater contamination. Climate change regulation Various national and local laws and regulations have been established or are emerging in jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. The Company does not expect to be disproportionately affected by these measures compared with other pulp and paper producers located in these jurisdictions. The Paris Agreement was negotiated at the Conference of the Parties to the Kyoto Protocol in December 2015. Domtar does not expect to be disproportionately affected by the agreement compared with other pulp and paper producers in jurisdictions where the Company has operations. In the United States, states are working to develop their compliance plans under EPA’s Clean Power Plan to reduce GHG emissions beginning in 2022 from existing electric utilities. The final rule is being litigated with 45 of 50 states directly involved in the litigation. The Clean Power Plan requirements could result in significant changes to state energy resources and increase the cost of purchased energy in most states. The Company does not expect to be disproportionately affected compared with other pulp and paper producers in the United States. The EPA is also developing a biogenic carbon accounting framework to account for carbon dioxide emissions from biomass fuels for Clean Air Act permitting and other regulatory purposes. The Company does not expect to be disproportionately affected by any future measures compared with other pulp and paper producers in the United States. The Government of Canada has committed to developing a sector-by-sector approach to set performance standards to reduce greenhouse gases. The pulp and paper sector is currently undergoing review. The Company does not expect its facilities to be disproportionately affected by these future measures compared with other pulp and paper producers in Canada. The province of Quebec has a GHG cap-and-trade system with reduction targets. British Columbia has a carbon tax that applies to the purchase of fossil fuels within the province. The province of Ontario is also developing a cap-and-trade system, with proposed rules expected this year and final regulations in place in 2017. The Company does not expect future compliance costs for these existing and emerging programs to have a material impact on the Company’s financial position, results of operations or cash flows compared with other pulp and paper producers in these jurisdictions. Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”) or Boiler MACT The Company has implemented its plans to be in compliance with EPA’s Boiler MACT rule by the January 31, 2016 regulatory deadline. Certain elements of the Boiler MACT rule are being litigated and at this time the outcome of the litigation is not known. Adjustments to compliance plans may be needed to accommodate any changes to the final rule. It is not expected that any changes will require additional capital costs for compliance and/or additional operating costs. 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 December 31, 2015, 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. Spanish Competition Investigation In September 2014, following preliminary inquiries commenced in January 2014, Spain’s National Commission of Markets and Competition (“CNMC”) initiated a formal investigation of alleged violations of Spanish competition laws in the market for heavy adult incontinence products in Spain. On October 15, 2015, the Competition Directorate of the CNMC filed a Statement of Objections against a number of industry participants alleging the existence of a series of agreements between manufacturers, distributors and pharmacists to fix prices and to allocate margins for heavy adult incontinence products within the pharmacy channel On January 4, 2016, the Competition Directorate issued a proposed decision confirming the allegations of the Statement of Objections. The proposed decision recommends the imposition of fines on the parties without recommending the amount of any fines. The final decision of the CNMC as to the liability of the investigated parties will be made by the Council of the CNMC, and is expected in May 2016. Based on the review of the prosecution of such competition investigations by the CNMC in the past, it is reasonable to expect that the Council will ultimately impose fines on the named parties in its final decisions in cases where the Directorate has recommended the imposition of fines. It is thus considered probable that the final decision of the CNMC will impose fines on the named parties in this case. It is not possible however to predict the amount of any fines that may be imposed in the final decision of the CNMC in the event that Indas and its two affiliates were to be found liable. To determine the range of potential liability, the Company considered a number of factors including current legislation allowing for a maximum penalty of 10% of the consolidated sales of Indas for 2015 and the relevant recent decisions of the Council, where the fines have ranged between 0.1% and 6.5% of the company’s total turnover under investigation in the year prior to the decision. The Company estimates that in the event of an adverse determination by the CNMC, the penalties for Indas and its affiliates could range from €0 to €21 million ($23 million). Given that no one estimate is better than another, within the range of possible sanctions, Domtar recorded a provision of less than $1 million, which represents the lower end of the range. The sellers of Indas made representations and warranties to the Company in the purchase agreement regarding, among other things, Indas’ and its subsidiary’s compliance with competition laws. The liability retained by the sellers is backed by a retained purchase price of €3 million ($3 million) and bank guarantees of €9 million ($10 million). The Company purchased limited insurance coverage for an additional €28.5 million ($31 million). If the sellers were found to be in breach of the relevant representations and warranties, the €12 million ($13 million) attributable to the retained cash and bank guarantees would act as a deductible under the insurance policy. The Company’s total recovery from the retained purchase price, the bank guarantees and the purchased insurance coverage is thus potentially up to €40.5 million ($44 million). In the event a penalty is assessed against Indas and its affiliates, there are customary risks associated with the assertion of the Company’s rights under the bank guarantees and insurance policy. In such event, the Company will assess this risk and potential impact which may result in recording a liability for a penalty in one period and only recording a recovery from guarantees and insurance at such time as the Company has more certainty of recovery, which may be in a different period. LEASE AND OTHER COMMERCIAL COMMITMENTS The Company has entered into operating leases for property, plant and equipment. The Company also has commitments to purchase property, plant and equipment, roundwood, wood chips, gas and certain chemicals. Purchase orders in the normal course of business are excluded from the table below. Any amounts for which the Company is liable under purchase orders are reflected in the Consolidated Balance Sheets as Trade and other payables. Minimum future payments under these operating leases and other commercial commitments, determined at December 31, 2015, were as follows: 2016 2017 2018 2019 2020 Thereafter Total $ $ $ $ $ $ $ Operating leases 22 19 17 15 13 45 131 Other commercial commitments 78 10 2 1 — — 91 Total operating lease expense amounted to $28 million in 2015 (2014 - $32 million; 2013- $32 million). 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 December 31, 2015, 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 December 31, 2015 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 23. DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices and interest rates. To the extent the Company decides to manage the volatility related to these exposures, the Company may enter into various financial derivatives that are accounted for under the derivatives and hedging guidance. These transactions are governed by the Company's hedging policies which provide direction on acceptable hedging activities, including instrument type and acceptable counterparty exposure. Upon inception, the Company formally documents the relationship between hedging instruments and hedged items. At inception and quarterly thereafter, the Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the cash flow or the fair value of the underlying exposures. The ineffective portion of the qualifying instrument is immediately recognized to earnings. The amount of ineffectiveness recognized was immaterial for all years presented. The Company does not hold derivative financial instruments for trading purposes. 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 of December 31, 2015, one of Domtar’s Pulp and Paper segment customers located in the United States represented 12% ($78 million) (2014 – 10% ($64 million)) of the Company’s receivables. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company 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. 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’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts, whereby it agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. In December 2014, the Company entered into a $100 million notional 2.5 year fixed to floating interest rate swap to receive fixed (1.0225%) and pay the 3 month LIBOR. This swap was designated as a fair value hedge for a portion of its 10.75% Notes due June 2017. The changes in fair value of both the hedging and the hedged item were immediately recognized in interest expense. In August 2015, the Company terminated this swap simultaneously with the redemption of $215 million of its 10.75% Notes, with no significant impact on net earnings. COST RISK Cash flow hedges: The Company purchases natural gas at the prevailing market price at the time of delivery. To reduce the impact on cash flow and earnings due to pricing volatility, the Company may utilize derivatives to fix the price of forecasted natural gas purchases. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Cost of sales in the period during which the hedged transaction affects earnings. Current contracts are used to hedge a portion of forecasted purchases over the next 60 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of December 31, 2015 to hedge forecasted purchases: Notional contractual value Percentage of forecasted Notional contractual under derivative contracts purchases under Commodity under derivative contracts (in millions of dollars) derivative contracts for Natural gas 2016 13,045,000 MMBTU (1) $ 45 58 % 2017 5,010,000 MMBTU (1) $ 17 22 % 2018 3,375,000 MMBTU (1) $ 10 15 % 2019 1,685,000 MMBTU (1) $ 5 7 % 2020 1,690,000 MMBTU (1) $ 6 8 % (1) MMBTU: Millions of British thermal units The natural gas derivative contracts were fully effective as of December 31, 2015. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive (Loss) Income for the year ended December 31, 2015 resulting from hedge ineffectiveness (2014 and 2013 – nil). FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States, Canada and Europe. As a result, it is exposed to movements in foreign currency exchange rates in Canada and Europe. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. Accordingly, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and the European currencies. The Company’s European subsidiaries are also exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than their 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 financial instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates. Derivatives are used to hedge forecasted purchases in Canadian dollars by its Canadian subsidiary over the next 24 months. Derivatives are also used to hedge forecasted sales by its US subsidiaries in Euros and in British pounds over the next 12 months. Derivatives are also used to hedge forecasted sales in British pounds and Norwegian krone and forecasted purchases in U.S. dollars and Swedish krona by its European subsidiaries over the next 12 months. Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2015 to hedge forecasted purchases and sales: Percentage of Notional forecasted Business Year of contractual exposures under Average Average Currency exposure hedged Segment maturity value contracts Protection rate Obligation rate 2016 CDN/USD Pulp and Paper 462 CDN 60% 1 USD = 1.2026 1 USD = 1.2453 USD/Euro Personal Care 56 USD 78% 1 Euro = 1.1364 1 Euro = 1.1364 Euro/USD Pulp and Paper 38 EUR 75% 1 Euro = 1.1266 1 Euro = 1.1266 2017 CDN/USD Pulp and Paper 195 CDN 25% 1 USD = 1.2510 1 USD = 1.3152 The foreign exchange derivative contracts were fully effective as of December 31, 2015. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive (Loss) Income for the year ended December 31, 2015 resulting from hedge ineffectiveness (2014 and 2013 - nil). 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 December 31, 2015 and December 31, 2014, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2015 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Currency derivatives 2 — 2 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 10 — 10 — Liabilities derivatives Currency derivatives 39 — 39 — (a) Trade and other payables Currency derivatives 10 — 10 — (a) Other liabilities and deferred credits Natural gas swap contracts 14 — 14 — (a) Trade and other payables Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 67 — 67 — Other Instruments: Asset backed notes ("ABN") 1 — — 1 (b) Other assets Long-term debt 1,261 — 1,261 — (c) Long-term debt The cumulative loss recorded in Other comprehensive (loss) income relating to natural gas contracts of $17 million at December 31, 2015, will be recognized in Cost of sales upon maturity of the derivatives over the next 60 months at the then prevailing values, which may be different from those at December 31, 2015. The cumulative loss recorded in Other comprehensive (loss) income relating to currency options and forwards hedging forecasted purchases of $40 million at December 31, 2015, will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 24 months at the then prevailing values, which may be different from those at December 31, 2015. Quoted prices in Significant Significant active markets for observable unobservable December identical assets inputs inputs Fair Value of financial instruments at: 2014 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Currency derivatives 3 — 3 — (a) Other assets Total Assets 10 — 10 — Liabilities derivatives Currency derivatives 14 — 14 — (a) Trade and other payables Currency derivatives 9 — 9 — (a) Other liabilities and deferred credits Natural gas swap contracts 13 — 13 — (a) Trade and other payables Natural gas swap contracts 6 — 6 (a) Other liabilities and deferred credits Total Liabilities 42 — 42 — Other Instruments: — Asset backed notes 11 — 10 1 (b) Other assets Long-term debt 1,475 — 1,475 — (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 derivatives: 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 are 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. These ABN are held outside of the Company’s pension plans. (c) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at December 31, 2015 and December 31, 2014. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,260 million and $1,350 million at December 31, 2015 and December 31, 2014, 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. |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Disclosures | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 24. SEGMENT DISCLOSURES 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 – consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. · Personal Care – consists of the design, manufacturing, marketing and distribution of absorbent hygiene products. The accounting policies of the reportable segments are the same as described in Note 1. The Company evaluates performance based on operating income, which represents sales, reflecting transfer prices between segments at fair value, less allocable expenses before interest expense and income taxes. Segment assets are those directly used in segment operations. The Company attributes sales to customers in different geographical areas on the basis of the location of the customer. Long-lived assets consist of property, plant and equipment, intangible assets and goodwill used in the generation of sales in the different geographical areas. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2015 2014 2013 $ $ $ Sales Pulp and Paper 4,458 4,674 4,843 Personal Care 869 928 566 Total for reportable segments 5,327 5,602 5,409 Intersegment sales (63 ) (39 ) (18 ) Consolidated sales (1) 5,264 5,563 5,391 Depreciation and amortization and impairment and write-down of property, plant and equipment Pulp and Paper 297 319 345 Personal Care 62 65 31 Total for reportable segments 359 384 376 Impairment and write-down of property, plant and equipment - Pulp and Paper 77 4 20 Impairment and write-down of property, plant and equipment - Personal Care — — 2 Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment 436 388 398 Operating income (loss) (2) Pulp and Paper 270 352 244 Personal Care 61 49 40 Corporate (43 ) (37 ) (123 ) Consolidated operating income 288 364 161 Interest expense, net 132 103 89 Earnings before income taxes and equity loss 156 261 72 Income tax expense (benefit) 14 (170 ) (20 ) Equity loss, net of taxes — — 1 Net earnings 142 431 91 (1) In 2015 and 2014, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 10% (2014 – 9%) of the total sales. (2) As a result of changes in the Company’s organization structure, the Company has changed the way it allocates certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, are now presented on the Corporate line. As a result, the Company has revised its 2014 and 2013 segment disclosures to conform to its 2015 presentation. (Previously reported numbers for Operating income (loss) for years ended December 31, 2014 and 2013 are as follows; Pulp and Paper $323 million and $171 million, respectively, Personal Care: $54 million and $43 million, respectively, Corporate: $(13) million and $(53) million, respectively). December 31, December 31, SEGMENT DATA (CONTINUED) 2015 2014 $ $ Segment assets Pulp and Paper 3,667 3,915 Personal Care 1,822 1,963 Total for reportable segments 5,489 5,878 Corporate 174 307 Consolidated assets 5,663 6,185 Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ Additions to property, plant and equipment Pulp and Paper 221 161 147 Personal Care 57 86 91 Total for reportable segments 278 247 238 Corporate 6 5 6 Consolidated additions to property, plant and equipment 284 252 244 Add: Change in payables on capital projects 5 (16 ) (2 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 289 236 242 Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA (CONTINUED) 2015 2014 2013 $ $ $ Geographic information Sales United States 3,776 3,910 3,992 Canada 492 591 638 Europe 561 659 375 Asia 302 257 281 Other foreign countries 133 146 105 5,264 5,563 5,391 December 31, December 31, 2015 2014 $ $ Long-lived assets United States 2,566 2,691 Canada 640 823 Europe 769 845 3,975 4,359 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 25. 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, 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 Products Inc., EAM Corporation, Domtar Personal Care Absorbent Hygiene Inc, and Associated Hygienic Products LLC., 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’s own 100% owned subsidiaries; including Domtar Delaware Holdings Inc. and its foreign subsidiaries, including Attends Healthcare Limited, Domtar Inc. and Laboratorios Indas. S.A.U., (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 December 31, 2015 and December 31, 2014 and the Statements of Earnings and Comprehensive Income and Cash Flows for the years ended December 31, 2015, December 31, 2014 and December 31, 2013 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. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,346 2,070 (1,152 ) 5,264 Operating expenses Cost of sales, excluding depreciation and amortization — 3,726 1,573 (1,152 ) 4,147 Depreciation and amortization — 256 103 — 359 Selling, general and administrative 11 105 278 — 394 Impairment and write-down of property, plant and equipment — 77 — — 77 Closure and restructuring costs — 3 1 — 4 Other operating loss (income), net 5 (3 ) (7 ) — (5 ) 16 4,164 1,948 (1,152 ) 4,976 Operating (loss) income (16 ) 182 122 — 288 Interest expense (income), net 131 30 (29 ) — 132 (Loss) earnings before income taxes (147 ) 152 151 — 156 Income tax (benefit) expense (63 ) 38 39 — 14 Share in earnings of equity accounted investees 226 112 — (338 ) — Net earnings 142 226 112 (338 ) 142 Other comprehensive loss (233 ) (235 ) (215 ) 450 (233 ) Comprehensive loss (91 ) (9 ) (103 ) 112 (91 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,440 2,250 (1,127 ) 5,563 Operating expenses Cost of sales, excluding depreciation and amortization — 3,762 1,761 (1,127 ) 4,396 Depreciation and amortization — 264 120 — 384 Selling, general and administrative 29 209 178 — 416 Impairment and write-down of property, plant and equipment — 4 — — 4 Closure and restructuring costs — 7 21 — 28 Other operating loss (income), net 2 (26 ) (5 ) — (29 ) 31 4,220 2,075 (1,127 ) 5,199 Operating (loss) income (31 ) 220 175 — 364 Interest expense (income), net 101 26 (24 ) — 103 (Loss) earnings before income taxes (132 ) 194 199 — 261 Income tax (benefit) expense (51 ) (151 ) 32 — (170 ) Share in earnings of equity accounted investees 512 167 — (679 ) — Net earnings 431 512 167 (679 ) 431 Other comprehensive loss (203 ) (194 ) (168 ) 362 (203 ) Comprehensive income (loss) 228 318 (1 ) (317 ) 228 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2013 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,461 1,986 (1,056 ) 5,391 Operating expenses Cost of sales, excluding depreciation and amortization — 3,752 1,665 (1,056 ) 4,361 Depreciation and amortization — 266 110 — 376 Selling, general and administrative 26 245 110 — 381 Impairment and write-down of property, plant and equipment — 10 12 — 22 Closure and restructuring costs — 6 12 — 18 Other operating (income) loss, net (3 ) 40 35 — 72 23 4,319 1,944 (1,056 ) 5,230 Operating (loss) income (23 ) 142 42 — 161 Interest expense (income), net 96 20 (27 ) — 89 (Loss) earnings before income taxes and equity loss (119 ) 122 69 — 72 Income tax (benefit) expense (54 ) 7 27 — (20 ) Equity loss, net of taxes — — 1 — 1 Share in earnings of equity accounted investees 156 41 — (197 ) — Net earnings 91 156 41 (197 ) 91 Other comprehensive income 4 26 33 — 63 Comprehensive income 95 182 74 (197 ) 154 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 49 2 75 — 126 Receivables — 384 243 — 627 Inventories — 556 210 — 766 Prepaid expenses 8 7 6 — 21 Income and other taxes receivable — 13 11 (10 ) 14 Intercompany accounts 764 4,776 16 (5,556 ) — Total current assets 821 5,738 561 (5,566 ) 1,554 Net property, plant and equipment — 2,018 817 — 2,835 Goodwill — 296 243 — 539 Intangible assets, net of amortization — 254 347 — 601 Investments in affiliates 8,005 2,050 — (10,055 ) — Intercompany long-term advances 6 88 621 (715 ) — Other assets 24 10 115 (15 ) 134 Total assets 8,856 10,454 2,704 (16,351 ) 5,663 Liabilities and shareholders' equity Current liabilities Trade and other payables 61 456 203 — 720 Intercompany accounts 4,685 722 149 (5,556 ) — Income and other taxes payable 4 24 9 (10 ) 27 Long-term debt due within one year 38 1 2 — 41 Total current liabilities 4,788 1,203 363 (5,566 ) 788 Long-term debt 910 301 8 — 1,219 Intercompany long-term loans 490 225 — (715 ) — Deferred income taxes and other — 535 131 (12 ) 654 Other liabilities and deferred credits 16 185 152 (3 ) 350 Shareholders' equity 2,652 8,005 2,050 (10,055 ) 2,652 Total liabilities and shareholders' equity 8,856 10,454 2,704 (16,351 ) 5,663 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 79 18 77 — 174 Receivables — 370 258 — 628 Inventories — 495 219 — 714 Prepaid expenses 11 7 7 — 25 Income and other taxes receivable 37 — 17 — 54 Intercompany accounts 977 4,613 13 (5,603 ) — Deferred income taxes — 40 35 — 75 Total current assets 1,104 5,543 626 (5,603 ) 1,670 Net property, plant and equipment — 2,134 997 — 3,131 Goodwill — 296 271 — 567 Intangible assets, net of amortization — 263 398 — 661 Investments in affiliates 8,015 2,153 — (10,168 ) — Intercompany long-term advances 6 80 434 (520 ) — Other assets 31 11 135 (21 ) 156 Total assets 9,156 10,480 2,861 (16,312 ) 6,185 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 10 — — 10 Trade and other payables 69 409 243 — 721 Intercompany accounts 4,582 925 96 (5,603 ) — Income and other taxes payable 2 9 15 — 26 Long-term debt due within one year 166 2 1 — 169 Total current liabilities 4,819 1,355 355 (5,603 ) 926 Long-term debt 1,168 2 11 — 1,181 Intercompany long-term loans 260 260 — (520 ) — Deferred income taxes and other — 675 156 (21 ) 810 Other liabilities and deferred credits 19 173 186 — 378 Shareholders' equity 2,890 8,015 2,153 (10,168 ) 2,890 Total liabilities and shareholders' equity 9,156 10,480 2,861 (16,312 ) 6,185 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 142 226 112 (338 ) 142 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 134 (250 ) 89 338 311 Cash flows provided from operating activities 276 (24 ) 201 — 453 Investing activities Additions to property, plant and equipment — (210 ) (79 ) — (289 ) Proceeds from disposals of property, plant and equipment 1 7 28 — 36 Other — — 9 — 9 Cash flows used for investing activities 1 (203 ) (42 ) — (244 ) Financing activities Dividend payments (100 ) — — — (100 ) Stock repurchase (50 ) — — — (50 ) Net change in bank indebtedness — (11 ) — — (11 ) Change of revolving bank credit facility 50 — — — 50 Issuance of long-term debt — 300 — — 300 Repayment of long-term debt (436 ) (2 ) (1 ) — (439 ) Increase in long-term advances to related parties — (75 ) (152 ) 227 — Decrease in long-term advances to related parties 227 — — (227 ) — Other 2 (1 ) — — 1 Cash flows (used for) provided from financing activities (307 ) 211 (153 ) — (249 ) Net decrease in cash and cash equivalents (30 ) (16 ) 6 — (40 ) Impact of foreign exchange on cash — — (8 ) — (8 ) Cash and cash equivalents at beginning of year 79 18 77 — 174 Cash and cash equivalents at end of year 49 2 75 — 126 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 431 512 167 (679 ) 431 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (220 ) (380 ) 124 679 203 Cash flows provided from operating activities 211 132 291 — 634 Investing activities Additions to property, plant and equipment — (139 ) (97 ) — (236 ) Proceeds from disposals of property, plant and equipment — — 1 — 1 Acquisition of business, net of cash acquired — — (546 ) — (546 ) Other — — (5 ) — (5 ) Cash flows used for investing activities — (139 ) (647 ) — (786 ) Financing activities Dividend payments (84 ) — — — (84 ) Stock repurchase (38 ) — — — (38 ) Net change in bank indebtedness (1 ) (4 ) (1 ) — (6 ) Change of revolving bank credit facility (160 ) — — — (160 ) Proceeds from receivables securitization facilities — — 90 — 90 Payments on receivables securitization facilities — — (129 ) — (129 ) Repayment of long-term debt — (3 ) (1 ) — (4 ) Increase in long-term advances to related parties (292 ) — — 292 — Decrease in long-term advances to related parties — 10 282 (292 ) — Other 4 — 1 — 5 Cash flows (used for) provided from financing activities (571 ) 3 242 — (326 ) Net decrease in cash and cash equivalents (360 ) (4 ) (114 ) — (478 ) Impact of foreign exchange on cash — — (3 ) — (3 ) Cash and cash equivalents at beginning of year 439 22 194 — 655 Cash and cash equivalents at end of year 79 18 77 — 174 CONDENSED CONSOLIDATING STATEMENT OF CASH Year ended FLOWS December 31, 2013 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 91 156 41 (197 ) 91 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 134 (52 ) 41 197 320 Cash flows provided from operating activities 225 104 82 — 411 Investing activities Additions to property, plant and equipment — (153 ) (89 ) — (242 ) Proceeds from disposals of property, plant and equipment and sale of business — 55 6 — 61 Acquisition of businesses, net of cash acquired — (283 ) (4 ) — (287 ) Other — — (1 ) — (1 ) Cash flows used for investing activities — (381 ) (88 ) — (469 ) Financing activities Dividend payments (67 ) — — — (67 ) Stock repurchase (183 ) — — — (183 ) Net change in bank indebtedness 1 (5 ) 1 — (3 ) Change of revolving bank credit facility 160 — — — 160 Payments on receivables securitization facilities 249 — — — 249 Repayment of long-term debt (71 ) (28 ) (3 ) — (102 ) Increase in long-term advances to related parties (150 ) — (110 ) 260 — Decrease in long-term advances to related parties — 260 — (260 ) — Cash flows (used for) provided from financing activities (61 ) 227 (112 ) — 54 Net increase (decrease) in cash and cash equivalents 164 (50 ) (118 ) — (4 ) Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 275 72 314 — 661 Cash and cash equivalents at end of year 439 22 194 — 655 |
Interim Financial Results
Interim Financial Results | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Results | Domtar Corporation Interim Financial Results (Unaudited) (in millions of dollars, unless otherwise noted) 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,348 $ 1,310 $ 1,292 $ 1,314 $ 5,264 Operating income 71 (a) 62 (b) 61 (c) 94 (d) 288 Earnings (loss) before income taxes 45 37 (3 ) 77 156 Net earnings 36 38 11 57 142 Basic net earnings per common share 0.56 0.60 0.17 0.91 2.24 Diluted net earnings per common share 0.56 0.60 0.17 0.91 2.24 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,394 $ 1,385 $ 1,405 $ 1,379 $ 5,563 Operating income 79 (e) 79 120 (f) 86 (g) 364 Earnings before income taxes 54 53 95 59 261 Net earnings 39 40 281 (h) 71 431 Basic net earnings per common share 0.60 0.62 4.34 1.10 6.65 Diluted net earnings per common share 0.60 0.61 4.33 1.10 6.64 (a) The operating income for the first Quarter of 2015 included closure and restructuring costs of $1 million related to our Personal Care segment. The Company also incurred a gain on disposal of property, plant and equipment of $1 million related to our Corporate segment. In addition, the Company incurred $19 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (b) The operating income for the second Quarter of 2015 included $1 million of closure and restructuring costs related to our Pulp and Paper segment. The company also recorded a gain on disposal of property, plant and equipment of $14 million, mostly relating to the sale of its former Ottawa mill. In addition, the Company incurred an additional $18 million of accelerated depreciation at its Ashdown, Arkansas mill. (c) The operating income for the third Quarter of 2015 included closure and restructuring costs of $1 million related to our Pulp and Paper segment. The Company also incurred an additional $20 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (d) The operating income for the fourth Quarter of 2015 included closure and restructuring costs of $1 million related to our Pulp and Paper segment. The Company also incurred an additional $20 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (e) The operating income for the first Quarter of 2014 included closure and restructuring costs of $1 million related to our Personal Care segment. (f) In the third Quarter of 2014, the Company incurred an additional $2 million of closure and restructuring costs related to our Pulp & Paper segment. In addition, the Company recognized $18 million of Alternative Fuel Tax Credits in income, with no related tax expense. (g) In the fourth Quarter of 2014, the Company incurred pension settlement costs in the amount of $19 million related to the previously closed Ottawa paper mill. In addition, the Company recorded $2 million of closure and termination costs and $1 million of inventory obsolescence at its Indianapolis, Indiana converting site. The company also recorded $3 million inventory obsolescence and $4 million of accelerated depreciation at its Ashdown, Arkansas mill, due to a conversion of a paper machine to a fluff pulp line. ( h ) The net earnings for the third Quarter of 2014 included the recognition of previously unrecognized tax benefits of approximately $204 million as a result of the closure of U.S. federal tax audits for tax years 2009 through 2011, as well as the impact of recognizing $18 million of AFTC income with no related tax expense. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | FINANCIAL STATEMENT SCHEDULE (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED) SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the three years ended: Balance at Charged to Deductions from Balance at end beginnings of year income reserve of year $ $ $ $ Allowances deducted from related asset accounts: Doubtful accounts - Accounts receivable 2015 6 5 (5 ) 6 2014 4 2 — 6 2013 4 2 (2 ) 4 Balance at Charged to Deductions from Balance at end beginnings of year income reserve of year $ $ $ $ Valuation Allowance on Deferred Tax Assets 2015 25 (1 ) (1 ) 23 2014 19 7 (1 ) 25 2013 14 5 — 19 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Principles | ACCOUNTING PRINCIPLES The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Domtar Corporation and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. Investment in an affiliated company, where the Company has joint control over their operations, is accounted for by the equity method. |
Use of Estimates | USE OF ESTIMATES The consolidated financial statements have been prepared in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to closure and restructuring costs, income taxes, useful lives, asset impairment charges, goodwill and intangible asset impairment assessment, environmental matters and other asset retirement obligations, pension and other post-retirement benefit plans and, commitments and contingencies, based on currently available information. Actual results could differ from those estimates. |
Foreign Currency Matters | TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings and Comprehensive (Loss) Income and is partially offset by our hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). At December 31, 2015, the accumulated translation adjustment accounts amounted to $(271) million (2014 – $(48) million). |
Revenue Recognition | REVENUE RECOGNITION Domtar recognizes revenue when pervasive evidence of an arrangement exists, the customer takes title and assumes the risks and rewards of ownership, the sales price charged is fixed or determinable and when collection is reasonably assured. Revenue is recorded at the time of shipment for terms designated free on board (“f.o.b.”) shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. |
Shipping and Handling Costs | SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. |
Closure and Restructuring Costs | CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required write-downs, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events at December 31, 2015. Closure and restructuring cost estimates are dependent on future events. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. |
Income Taxes | INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive (loss) income in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50 percent) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. |
Receivables | RECEIVABLES Receivables are recorded net of a provision for doubtful accounts that is based on expected collectability. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. |
Inventories | INVENTORIES Inventories are stated at the lower of cost or market. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to cost certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $288 million and $229 million at December 31, 2015 and 2014, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are costed at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $66 million and $71 million greater at December 31, 2015 and 2014, respectively. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairment write-downs. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, amortization is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are amortized over periods of 10 to 40 years and machinery and equipment over periods of 3 to 20 years. No depreciation is recorded on assets under construction. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, as measured by comparing the net book value of the asset group to their estimated undiscounted future cash flows. Impaired assets are recorded at estimated fair value, determined principally by using discounted future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment and write-down of property, plant and equipment”). |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill is not amortized and is evaluated for impairment at the beginning of the fourth quarter of every year or more frequently whenever indicators of potential impairment exist. The Company performs the impairment test of goodwill at its reporting unit’s level. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, the Company identifies the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value and assesses their impact on the fair value of the reporting unit. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If, after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then it performs Step I of the two-step impairment test. The Company can also elect to bypass the qualitative assessment and proceed directly to the Step I of the impairment test. The first step is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. The Company typically uses an income method to determine the fair value of a reporting unit. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows. Key assumptions supporting the cash flow projections include, but are not limited to, estimates of future sales volumes, selling prices and costs, changes in working capital, investments in property, plant and equipment and discount rate. Assumptions used in our impairment evaluations are consistent with internal projections and operating plans. Analysis of the sensitivities of the fair value estimate to changes in assumptions are also performed. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. In the event that the net carrying amount, including goodwill, exceeds the fair value of the reporting unit, the second step of the impairment test must be performed in order to determine the amount of the impairment charge. Fair value of goodwill in Step II of the impairment test is estimated in the same way as goodwill was determined at the date of the acquisition in a business combination, that is, the excess of the fair value of the reporting unit over the fair value of the identifiable net assets of the business. All goodwill as of December 31, 2015 resides in the Personal Care reporting segment, and originated from the acquisitions of Attends Healthcare Inc. on September 1, 2011, Attends Healthcare Limited on March 1, 2012, EAM Corporation on May 10, 2012, AHP on July 1, 2013 and Laboratorios Indas on January 2, 2014. Please refer to Note 3 “Acquisition of businesses” for additional information regarding the most recent acquisitions. Indefinite-lived intangible assets are not amortized and are evaluated individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amounts. The qualitative assessment follows the same process as the one performed for goodwill, as described above. If, after assessing the qualitative factors, the Company determines that it is more likely than not that the indefinite-lived intangible assets are less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include trade names related to Attends ® ® ® Definite lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite lived intangible assets include water rights, customer relationships, technology, non-compete agreements as well as licensing rights, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite lived intangible assets will be calculated in the same manner as that disclosed under impairment of long-lived assets. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years |
Other Assets | OTHER ASSETS Other assets are recorded at cost. Direct financing costs related to the issuance of long-term debt are deferred and amortized using the effective interest rate method. |
Environmental Costs and Asset Retirement Obligations | ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar Corporation incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are not discounted, due to uncertainty with respect to timing of expenditures, and are recorded when remediation efforts are probable and can be reasonably estimated. Asset retirement obligations are mainly associated with landfill operation and closure, asbestos containment and removal and bark pile management and are recognized, at fair value, in the period in which Domtar Corporation incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated or on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. |
Stock-Based Compensation and Other Stock-Based Payments | STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital on the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common shares upon the issuance of shares of common stock. Unless otherwise determined at the time of the grant, awards subject to service conditions vest in approximately equal installments over three years beginning on the first anniversary of the grant date and performance-based awards vest based on achievement of pre-determined performance goals over performance periods of three years. The majority of non-qualified stock options and performance share units expire at various dates no later than seven years from the date of grant. Deferred Share Units vest immediately at the grant date and are remeasured at each reporting period, until settlement, using the quoted market value. Under the 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 2,267,680 shares are reserved for issuance in connection with awards granted or to be granted. |
Derivative Instruments | DERIVATIVE INSTRUMENTS Derivative instruments are utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings and Comprehensive (Loss) Income by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive (loss) income. These amounts are reclassified in the Consolidated Statements of Earnings and Comprehensive (Loss) Income in the periods in which results are affected by the cash flows of the hedged item within the same line item. Any hedge ineffectiveness is recorded in the Consolidated Statements of Earnings and Comprehensive (Loss) Income when incurred. |
Pension Plans | PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately eight years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the accrued benefit obligation or market value of plan assets at the beginning of the year over the average remaining service period of approximately eight years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. |
Other Post-Retirement Benefit Plans | OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the accrued benefit obligation at the beginning of the year over the average remaining service period of approximately 10 years of the active employee group covered by the plans. |
Business Combination | BUSINESS COMBINATION The Company applies the acquisition method of accounting in a business combination. In general, this methodology requires companies to record assets acquired and liabilities assumed at their respective fair market values at the date of acquisition. The value is determined from the viewpoint of market participants. Any amount of the purchase price paid that is in excess of the estimated fair values of net assets acquired is recorded in the line item Goodwill in the Consolidated Balance Sheets. Management's judgment is used to determine the estimated fair values assigned to assets acquired and liabilities assumed, as well as asset useful lives for property, plant and equipment and amortization periods for intangible assets, and can materially affect the Company's results of operations. Transaction costs, as well as costs to reorganize acquired companies, are expensed as incurred in the Company's consolidated statement of income. |
Guarantees | GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
Discontinued Operations | DISCONTINUED OPERATIONS In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, an update on Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update change the requirements for reporting discontinued operations and require additional disclosures for both disposal transactions that meet the criteria for a discontinued operation and disposals that do not meet these criteria. The objective of this update is to reach a greater convergence between the FASB’s and IASB’s reporting requirements for discontinued operations. The Company adopted the new requirement on January 1, 2015 with no impact on the Company’s consolidated financial statements, as no triggering event occurred throughout the period. |
Deferred Tax Assets And Liability | DEFERRED TAX ASSET AND LIABILITY In November 2015, the FASB issued ASU 2015-17, an update on the balance sheet classification of deferred taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in the classified statement of financial position. The updates in the amendment are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In accordance with the amendment guidance, the Company elected to early adopt the new requirement. The amendment was treated prospectively and prior periods were not retrospectively adjusted. |
Future Accounting Changes [Member] | |
Revenue Recognition | REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, an update on revenue from contracts with customers. The core principal of this guideline is that an entity should recognize revenue, to depict the transfer of promised goods or services to customers, in an amount that reflects the consideration for which the entity is entitled to, in exchange for those goods and services. Guidance in this section supersedes the revenue recognition requirements found in topic 605. In August 2015, the FASB issued ASU 2015-14, which defers by one year ASU 2014-09’s effective date. The amendment will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early adoption is permitted only for annual and interim periods beginning after December 15, 2016. The Company is currently evaluating these changes to determine whether they have an impact on the presentation of the consolidated financial statements. |
Inventories | INVENTORY In July 2015, the FASB issued ASU 2015-11, an update on Inventory. The amendments in this update require entities to measure most inventories at the lower of cost and net realizable value, therefore simplifying the current guidance under which an entity must measure inventory at the lower of cost or market, which in this context, was defined as one of three different measures and was unnecessarily complex. The amendment does not apply to inventory that has been valued using the LIFO method or the Retail inventory method (“RIM”). The amendments in this update are effective for interim and annual periods beginning after December 15, 2016. The amendments should be applied prospectively and early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. |
Cloud Computing Arrangements | CLOUD COMPUTING ARRANGEMENTS In April 2015, the FASB issued ASU 2015-05, which clarifies the circumstances under which a cloud computing customer would account for a cloud computing arrangement as a license of internal-use software under Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). The amendments provide customers with guidance on determining whether or not a cloud computing arrangement includes a software license that should be accounted as internal-use software. The amendments in this update are effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. |
Financial Instruments | FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, which amends the guidance on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The amendments in this update are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. To adopt the amendments, the Company will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective; early adoption is permitted. The Company does not expect this additional guidance to have a material impact on the consolidated financial statements. |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Amortization Period of Finite Lived Assets | Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years |
Acquisition of Businesses (Tabl
Acquisition of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Laboratorios Indas [Member] | |
Fair Value of Assets Acquired | The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Receivables $ 101 Inventory 28 Income and other taxes receivable 3 Property, plant and equipment 72 Intangible assets Customer relationships (1) 142 Trade names (2) 140 Catalog rights (2) 46 328 Goodwill 234 Deferred income tax assets 16 Total assets 782 Less: Liabilities Trade and other payables 71 Income and other taxes payable 3 Long-term debt (including short-term portion) 42 Deferred income tax liabilities 119 Other liabilities and deferred credits 1 Total liabilities 236 Fair value of net assets acquired at the date of acquisition 546 (1) The useful life of Customer relationships acquired is between 10-20 years. (2) Indefinite useful life. |
Associated Hygienic Products LLC [Member] | |
Fair Value of Assets Acquired | The table below illustrates the 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) (2) The useful life of the License rights acquired is 12 years. |
Xerox [Member] | |
Fair Value of Assets Acquired | The table below illustrates the purchase price allocation: Inventory $ 4 Intangible assets Customer relationships (1) 1 License rights (2) 6 7 Total assets 11 Fair value of assets acquired at the date of acquisition 11 (1) (2) Indefinite useful life. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Monte Carlo Simulation [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the units granted: 2015 2014 2013 Dividend yield 3.220 % 1.980 % 2.230 % Expected volatility 1 year 34 % 31 % 23 % Expected volatility 3 years 30 % 31 % 35 % Risk-free interest rate December 31, 2013 — — 0.679 % Risk-free interest rate December 31, 2014 — 0.499 % 0.469 % Risk-free interest rate December 31, 2015 0.732 % 0.447 % 0.549 % Risk-free interest rate December 31, 2016 0.893 % 0.755 % — Risk-free interest rate December 31, 2017 1.200 % — — |
Black-Scholes Based Option Pricing Model [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the options granted: 2015 2014 2013 Dividend yield 3.22 % 2.62 % 2.67 % Expected volatility 32 % 32 % 35 % Risk-free interest rate 1.47 % 1.34 % 0.76 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 43.42 $ 53.12 $ 38.35 On May 1, 2014, the Company granted 22,448 options to Michael Garcia, President Pulp and Paper Division, as part of his employment conditions, and the following assumptions were used in calculating the fair value of the options granted: 2014 Dividend yield 2.80 % Expected volatility 33 % Risk-free interest rate 1.485 % Expected life 4.5 years Strike price $ 47.08 |
Performance Share Units [Member] | |
Summary of Outstanding Awards | These awards will cliff vest at various dates up to December 31, 2017. Weighted average grant PSU Number of units date fair value $ Vested and non-vested at December 31, 2012 364,488 52.27 Granted 194,304 35.97 Forfeited (8,554 ) 44.04 Cancelled (101,978 ) 45.85 Vested and settled (98,184 ) 62.83 Vested and non-vested at December 31, 2013 350,076 42.60 Granted 175,815 53.97 Forfeited (33,076 ) 45.29 Cancelled (89,622 ) 49.79 Vested and settled (92,890 ) 46.49 Vested and non-vested at December 31, 2014 310,303 45.52 Granted 219,453 44.22 Forfeited (21,918 ) 45.52 Cancelled (60,768 ) 35.40 Vested and settled (20,991 ) 51.48 Vested and non-vested at December 31, 2015 426,079 46.00 |
Restricted Stock Units [Member] | |
Summary of Outstanding Awards | The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSU Number of units date fair value $ Non-vested at December 31, 2012 566,116 38.68 Granted/issued 121,654 38.24 Forfeited (15,214 ) 41.58 Vested and settled (298,142 ) 34.86 Non-vested at December 31, 2013 374,414 41.46 Granted/issued 130,045 49.95 Forfeited (29,230 ) 44.37 Vested and settled (161,009 ) 41.27 Non-vested at December 31, 2014 314,220 44.80 Granted/issued 164,879 43.21 Forfeited (12,464 ) 44.78 Vested and settled (119,669 ) 44.31 Non-vested at December 31, 2015 346,966 44.21 |
Deferred Share Units [Member] | |
Summary of Outstanding Awards | In 2015, no vested awards were deferred to DSUs (2014 – 6,799; 2013 – 7,680) and those DSUs can be settled in shares of common stock beginning February 2017. Weighted average grant DSU Number of units date fair value $ Vested at December 31, 2012 277,654 24.14 Granted/issued 38,086 38.80 Settled (43,998 ) 28.21 Vested at December 31, 2013 271,742 25.54 Granted/issued 39,165 44.25 Settled (48,186 ) 32.17 Vested at December 31, 2014 262,721 27.11 Granted/issued 40,494 39.92 Settled (13,755 ) 41.88 Vested at December 31, 2015 289,460 28.20 |
Stock Options [Member] | |
Summary of Outstanding Awards | The grant date fair value of the non-qualified options granted on May 1, 2014 was $10.52. Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS (including Performance options) of options price (in years) (in millions) $ $ Outstanding at December 31, 2012 471,182 40.78 2.2 4.2 Granted 135,174 38.35 6.1 1.2 Exercised (101,852 ) 19.40 — — Forfeited/expired (38,830 ) 50.62 — — Outstanding at December 31, 2013 465,674 43.93 2.6 3.3 Options exercisable at December 31, 2013 200,274 36.83 1.7 2.1 Outstanding at December 31, 2013 465,674 43.93 2.6 3.3 Granted 270,028 52.48 6.2 — Exercised (131,312 ) 37.02 — — Forfeited/expired (186,267 ) 55.67 — — Outstanding at December 31, 2014 418,123 46.39 4.6 0.5 Options exercisable at December 31, 2014 93,027 37.40 2.0 0.3 Outstanding at December 31, 2014 418,123 46.39 4.6 0.5 Granted 82,885 43.42 6.2 — Exercised (35,924 ) 43.13 — — Forfeited/expired (13,782 ) 34.08 — — Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Options exercisable at December 31, 2015 176,315 44.56 3.9 0.1 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Common Share | The following table provides the reconciliation between basic and diluted earnings per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 Net earnings $ 142 $ 431 $ 91 Weighted average number of common and exchangeable shares outstanding (millions) 63.3 64.8 66.6 Effect of dilutive securities (millions) 0.1 0.1 0.1 Weighted average number of diluted common and exchangeable shares outstanding (millions) 63.4 64.9 66.7 Basic net earnings per common share (in dollars) $ 2.24 $ 6.65 $ 1.37 Diluted net earnings per common share (in dollars) $ 2.24 $ 6.64 $ 1.36 |
Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future | The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: December 31, December 31, December 31, 2015 2014 2013 Options 343,581 247,152 194,836 |
Pension Plans and Other Post-42
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Change in Accrued Benefit Obligation | The following table represents the change in the accrued benefit obligation as of December 31, 2015 and December 31, 2014, the measurement date for each year: December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at beginning of year 1,723 105 1,715 103 Service cost for the year 34 2 35 2 Interest expense 60 4 77 5 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (25 ) (5 ) 158 9 Plan amendments 10 — 1 — Benefits paid (76 ) — (87 ) — Direct benefit payments (3 ) (5 ) (5 ) (5 ) Settlement (1 ) — (60 ) — Effect of foreign currency exchange rate change (219 ) (15 ) (117 ) (9 ) Accrued benefit obligation at end of year 1,509 86 1,723 105 |
Change in Fair Value of Assets | The following table represents the change in the fair value of assets reflecting the actual return on plan assets, the contributions and the benefits paid during the year: December 31, 2015 December 31, 2014 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,721 1,709 Actual return on plan assets 63 253 Employer contributions 13 29 Plan participants' contributions 6 6 Benefits paid (79 ) (92 ) Settlement (1 ) (60 ) Effect of foreign currency exchange rate change (230 ) (124 ) Fair value of assets at end of year 1,493 1,721 |
Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation | The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2015: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2015 2014 Fixed income Cash and cash equivalents 0% - 9% 2 % 3 % Bonds 46%-56% 51 % 57 % Insurance contracts 6% 6 % 0 % Equity Canadian Equity 3% - 11% 6 % 6 % U.S. Equity 9% - 19% 15 % 15 % International Equity 15%-25% 20 % 19 % Total (1) 100 % 100 % (1) Approximately 80% of the pension plans' assets relate to Canadian plans and 20% relate to U.S. plans. |
Funded Status of Plans | The following table presents the difference between the fair value of assets and the actuarially determined accrued benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at end of year (1,509 ) (86 ) (1,723 ) (105 ) Fair value of assets at end of year 1,493 — 1,721 — Funded status (16 ) (86 ) (2 ) (105 ) |
Amount Recognized in Consolidated Balance Sheets | The funded status includes $46 million of accrued benefit obligation ($53 million at December 31, 2014) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2015 December 31, 2014 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (4 ) — (5 ) Other liabilities and deferred credits (Note 20) (129 ) (82 ) (123 ) (100 ) Other assets (Note 15) 113 — 121 — Net amount recognized in the Consolidated Balance Sheets (16 ) (86 ) (2 ) (105 ) |
Pre-Tax Amounts Included in Other Comprehensive (Loss) Income | The following table presents the pre-tax amounts included in Other comprehensive (loss) income: Year ended Year ended Year ended December 31, 2015 December 31, 2014 December 31, 2013 Other Other Other Pension post-retirement Pension post-retirement Pension post-retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service credit (10 ) — (1 ) — — — Amortization of prior year service cost (credit) 3 — 3 — 3 (1 ) Net gain (loss) 2 4 (8 ) (8 ) 126 10 Amortization of net actuarial loss 7 1 28 — 38 1 Net amount recognized in other comprehensive income (loss) (pre-tax) 2 5 22 (8 ) 167 10 |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | At December 31, 2015, the accrued benefit obligation and the fair value of defined benefit plan assets with an accrued benefit obligation in excess of fair value of plan assets were $405 million and $276 million, respectively (2014 – $412 million and $290 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2015 2014 2013 $ $ $ Service cost for the year 34 35 42 Interest expense 60 77 75 Expected return on plan assets (86 ) (101 ) (96 ) Amortization of net actuarial loss 7 9 25 Curtailment loss (a) — — 1 Settlement loss (b) — 19 13 Amortization of prior year service costs 3 3 3 Net periodic benefit cost 18 42 63 Year ended December 31, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for other post-retirement benefit plans 2015 2014 2013 $ $ $ Service cost for the year 2 2 3 Interest expense 4 5 5 Net periodic benefit cost 6 7 8 (a) The curtailment loss for the year ended December 31, 2013 of $1 million is related to a U.S. hourly plan. (b) The settlement loss of $19 million in the pension plans for the year ended December 31, 2014 is related to the previously closed Ottawa, Ontario paper mill. The settlement loss of $13 million in the pension plans for the year ended December 31, 2013 is related to the previously closed Big River and Dryden mills for $6 million and $7 million, respectively (see Note 16 “Closure and restructuring costs and liability”). |
Key Assumptions to Measure Accrued Benefit Obligation and Net Periodic Benefit Cost | The Company used the following key assumptions to measure the accrued benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2015 2014 2013 Accrued benefit obligation Discount rate 4.0 % 3.9 % 4.1 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.8 % 4.7 % 4.2 % Rate of compensation increase 3.2 % 2.7 % 2.8 % Expected long-term rate of return on plan assets 6.6 % 6.4 % 5.8 % December 31, December 31, December 31, Other post-retirement benefit plans 2015 2014 2013 Accrued benefit obligation Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.9 % 4.8 % 4.2 % Rate of compensation increase 2.8 % 2.7 % 2.8 % |
Effect of One Percent Change in Assumed Health Care Cost | For measurement purposes, a 5.0% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015. The rate was assumed to decrease gradually to 4.1% by 2033 and remain at that level thereafter. An increase or decrease of 1% of this rate would have the following impact: Increase of 1% Decrease of 1% $ $ Impact on net periodic benefit cost for other post-retirement benefit plans 1 (1 ) Impact on accrued benefit obligation 7 (6 ) |
Schedule Of Fair Value Of Plan Asset By Asset Category Table Text Block | The following table presents the fair value of the plan assets at December 31, 2015, by asset category: Fair Value Measurements at December 31, 2015 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 67 67 — — Asset backed notes (1) 146 — 136 10 Canadian government bonds 141 141 — — Canadian corporate debt securities 3 2 1 — Bond index funds (2 & 3) 466 — 466 — Canadian equities (4) 96 96 — — U.S. equities (5) 37 37 — — International equities (6) 229 229 — — U.S. stock index funds (3 & 7) 218 — 218 — Insurance contracts (8) 86 — — 86 Derivative contracts (9) 4 — 4 — Total 1,493 572 825 96 (1) This category is described in the section “Asset Backed Notes”. (2) This category represents two Canadian bond index funds not actively managed that track the FTSE TMX Long-term bond index, and the FTSE TMX Universe bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (3) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (4) This category represents an active segregated, large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and $4 million of Canadian equities held within an active segregated global equity portfolio. (5) This category represents U.S. equities held within an active segregated global equity portfolio. (6) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (7) This category represents equity index funds, not actively managed, that track the Standard & Poor’s 500 (“S&P 500”) index and an equity index fund not actively managed that tracks the Russell 3000 index. (8) This category includes: 1) two group annuity contracts totaling $78 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $8 million of insurance contracts with a minimum guarantee rate. (9) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. The following table presents the fair value of the plan assets at December 31, 2014, by asset category: Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 72 72 — — Asset backed notes (1) 180 — 165 15 Canadian government bonds 93 93 — — Canadian corporate debt securities 4 — 4 — Bond index funds (2 & 3) 691 — 691 — Canadian equities (4) 116 116 — — U.S. equities (5) 42 42 — — International equities (6) 255 255 — — U.S. stock index funds (3 & 7) 256 — 256 — Insurance contracts (8) 8 — — 8 Derivative contracts (9) 4 — 4 — Total 1,721 578 1,120 23 (1) This category is described in the section “Asset Backed Notes”. (2) This category represents a Canadian bond index fund not actively managed that tracks the DEX Long-term bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (3) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (4) This category represents active segregated, large capitalization Canadian equity portfolios with the ability to purchase small and medium capitalized companies and $6 million of Canadian equities held within an active segregated global equity portfolio. (5) This category represents U.S. equities held within an active segregated global equity portfolio. (6) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (7) This category represents equity index funds, not actively managed, that track the S&P 500. (8) This category represents insurance contracts with a minimum guarantee rate. (9) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. |
Changes in Level 3 Fair Value Measurements of Plan Assets | The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ABN (1) Insurance contracts TOTAL $ $ $ Balance at December 31, 2013 17 8 25 Purchases/(Settlements) (14 ) 1 (13 ) Return on plan assets 13 1 14 Effect of foreign currency exchange rate change (1 ) (2 ) (3 ) Balance at December 31, 2014 15 8 23 Purchases/(Settlements) (4 ) 79 75 Return on plan assets 1 3 4 Effect of foreign currency exchange rate change (2 ) (4 ) (6 ) Balance at December 31, 2015 10 86 96 ( 1 ) |
Estimated Future Benefit Payments from Plans | Estimated future benefit payments from the plans for the next 10 years at December 31, 2015 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2016 96 4 2017 93 4 2018 96 4 2019 97 5 2020 97 5 2021-2025 497 23 |
Other Operating (Income) Loss43
Other Operating (Income) Loss, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating (Income) Loss, Net | The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2015 Year ended December 31, 2014 Year ended December 31, 2013 $ $ $ Alternative fuel tax credits (Note 10) — (18 ) 26 Loss on sale of business (1) — — 20 Net gain on sale of property, plant and equipment (2) (15 ) — (16 ) Bad debt expense 5 2 2 Environmental provision 4 1 (1 ) Foreign exchange gain (3 ) (1 ) (9 ) Litigation settlement (3) — — 49 Proceeds from insurance claims on machinery and equipment — (11 ) — Other 4 (2 ) 1 Other operating (income) loss, net (5 ) (29 ) 72 (1) (2) (3) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking And Thrift Interest [Abstract] | |
Components of Interest Expense, Net | The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ Interest on long-term debt (1) 82 95 81 Premium paid on repurchase of long-term debt 40 — 2 Reversal of fair value (increment) decrement on debentures (1 ) — 1 Receivables securitization 1 1 1 Interest on withdrawal from multiemployer plans 4 3 — Amortization of debt issue costs and other 6 4 4 132 103 89 (1) The Company capitalized $3 million of interest expense in 2015 ($3 million in 2014 and 2013, respectively). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings Before Income Taxes | The Company’s earnings before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. earnings 26 86 37 Foreign earnings 130 175 35 Earnings before income taxes 156 261 72 |
Provisions for Income Taxes | Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. Federal and State: Current 61 20 (13 ) Deferred (78 ) (213 ) (22 ) Foreign: Current 9 11 1 Deferred 22 12 14 Income tax expense (benefit) 14 (170 ) (20 ) |
Reconciliation of Income Tax Expense (Benefit) to U.S. Federal Statutory Income Tax | The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 35% to earnings before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ U.S. federal statutory income tax 55 91 25 Reconciling Items: State and local income taxes, net of federal income tax benefit 1 3 1 Foreign income tax rate differential (16 ) (18 ) (6 ) Tax credits and special deductions (16 ) (18 ) (54 ) Alternative fuel tax credit (income) expense — (6 ) 9 Non-deductible litigation payments — — 13 Tax rate changes (5 ) (16 ) (3 ) Uncertain tax positions 1 (194 ) (3 ) U.S. manufacturing deduction (6 ) (9 ) (5 ) Functional currency differences 1 (5 ) — Valuation allowance on deferred tax assets (1 ) 7 5 Other — (5 ) (2 ) Income tax expense (benefit) 14 (170 ) (20 ) |
Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2015 and December 31, 2014 are comprised of the following: December 31, December 31, 2015 2014 $ $ Accounting provisions 57 56 Net operating loss carryforwards and other deductions 48 78 Pension and other employee future benefit plans 59 61 Inventory 17 15 Tax credits 25 34 Other 16 10 Gross deferred tax assets 222 254 Valuation allowance (23 ) (25 ) Net deferred tax assets 199 229 Property, plant and equipment (647 ) (734 ) Impact of foreign exchange on long-term debt and investments (6 ) (10 ) Intangible assets (157 ) (170 ) Total deferred tax liabilities (810 ) (914 ) Net deferred tax liabilities (611 ) (685 ) Included in: Deferred income tax assets — 75 Other assets (Note 15) 2 4 Deferred income taxes and other (613 ) (764 ) Total (611 ) (685 ) |
Gross Unrecognized Tax Benefits | At December 31, 2015, the Company had gross unrecognized tax benefits of approximately $41 million ($48 million and $259 million for 2014 and 2013, respectively). If recognized in 2016, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. December 31, December 31, December 31, 2015 2014 2013 $ $ $ Balance at beginning of year 48 259 254 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 2 10 9 Reductions for tax positions of prior years (1 ) — (10 ) Reductions related to settlements with taxing authorities (4 ) (223 ) (2 ) Expirations of statutes of limitations (7 ) (4 ) — Interest 1 4 5 Foreign exchange impact (1 ) (1 ) — Balance at end of year 41 48 259 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: December 31, December 31, 2015 2014 $ $ Work in process and finished goods 432 387 Raw materials 130 123 Operating and maintenance supplies 204 204 766 714 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 567 369 Acquisition of Indas — 234 Effect of foreign currency exchange rate change (28 ) (36 ) Balance at end of year 539 567 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table presents the components of property, plant and equipment: Range of December 31, December 31, useful lives 2015 2014 $ $ Machinery and equipment 3-20 7,255 7,537 Buildings and improvements 10-40 975 1,005 Timberlands 196 243 Assets under construction 224 124 8,650 8,909 Less: Allowance for depreciation and amortization (5,815 ) (5,778 ) 2,835 3,131 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2015 2014 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 7 (1 ) 6 8 (1 ) 7 Customer relationships 10 - 40 354 (46 ) 308 374 (32 ) 342 Technology 7 - 20 8 (2 ) 6 8 (2 ) 6 Non-Compete 9 1 — 1 1 — 1 License rights 12 28 (6 ) 22 29 (4 ) 25 398 (55 ) 343 420 (39 ) 381 Indefinite-lived intangible assets not subject to amortization Trade names 215 — 215 233 — 233 License rights 6 — 6 6 — 6 Catalog rights 37 — 37 41 — 41 Total 656 (55 ) 601 700 (39 ) 661 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2016 2017 2018 2019 2020 $ $ $ $ $ Amortization expense related to intangible assets 19 19 19 18 18 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets: December 31, December 31, 2015 2014 $ $ Pension asset - defined benefit pension plans (Note 7) 113 121 Unamortized debt issue costs 12 14 Deferred income tax assets (Note 10) 2 4 Asset backed notes 1 10 Other 6 7 134 156 |
Closure and Restructuring Cos51
Closure and Restructuring Costs and Liability (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: Year ended December 31, 2015 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 3 1 4 Closure and restructuring costs 3 1 4 Year ended December 31, 2014 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 4 1 5 Inventory write-down 4 — 4 Pension settlement and withdrawal liability 19 (a) — 19 Closure and restructuring costs 27 1 28 (a) Year Ended December 31, 2013 Pulp and Paper Personal Care Corporate Total $ $ $ $ Severance and termination costs (2 ) 2 — — Inventory obsolescence reversal (1 ) — — (1 ) Pension settlement and withdrawal liability 11 (b) — 6 (c) 17 Other 2 — — 2 Closure and restructuring costs 10 2 6 18 |
Activity in Closure and Restructuring Liability | The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 2 3 Additions 4 4 Payments (3 ) (5 ) Reversal — (1 ) Acquisition of business — 1 Balance at end of year 3 2 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables And Accruals [Abstract] | |
Components of Trade and Other Payables | The following table presents the components of trade and other payables: December 31, December 31, 2015 2014 $ $ Trade payables 350 374 Payroll-related accruals 160 149 Accrued interest 18 26 Payables on capital projects 16 21 Rebate accruals 66 68 Liability - pension and other post-retirement benefit plans (Note 7) 4 4 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 22) 14 16 Closure and restructuring costs liability (Note 16) 3 2 Derivative financial instruments (Note 23) 53 27 Dividends payable (Note 21) 25 24 Stock-based compensation - liability awards 4 3 Other 5 5 720 721 |
Changes in Accumulated Other 53
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 (losses) gains on cash flow Post-retirement Foreign currency hedges Pension items (2) benefit items (2) items Total Balance at December 31, 2013 — (210 ) (7 ) 152 (65 ) Natural gas swap contracts (10 ) N/A N/A N/A (10 ) Currency options (15 ) N/A N/A N/A (15 ) Foreign exchange forward contracts 2 N/A N/A N/A 2 Net gain N/A (4 ) (6 ) N/A (10 ) Foreign currency items N/A N/A N/A (200 ) (200 ) Other comprehensive loss before reclassifications (23 ) (4 ) (6 ) (200 ) (233 ) Amounts reclassified from Accumulated other comprehensive loss 8 22 — — 30 Net current period other comprehensive (loss) income (15 ) 18 (6 ) (200 ) (203 ) Balance at December 31, 2014 (15 ) (192 ) (13 ) (48 ) (268 ) Natural gas swap contracts (8 ) N/A N/A N/A (8 ) Currency options (40 ) N/A N/A N/A (40 ) Foreign exchange forward contracts 7 N/A N/A N/A 7 Net (gain) loss N/A (5 ) 3 N/A (2 ) Foreign currency items N/A N/A N/A (223 ) (223 ) Other comprehensive (loss) income before reclassifications (41 ) (5 ) 3 (223 ) (266 ) Amounts reclassified from Accumulated other comprehensive loss 26 7 — — 33 Net current period other comprehensive (loss) income (15 ) 2 3 (223 ) (233 ) Balance at December 31, 2015 (30 ) (190 ) (10 ) (271 ) (501 ) (1) All amounts are after tax. Amounts in parenthesis indicate losses. (2) The accrued benefit obligation is actuarially determined on an annual basis as of December 31. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss (1) Year ended December 31, 2015 2014 2013 Net derivative gains (losses) on cash flow hedge Natural gas swap contracts 16 (4 ) 4 (2) Currency options and forwards 28 16 4 (2) Total before tax 44 12 8 Tax benefit (18 ) (4 ) (3 ) Net of tax 26 8 5 Amortization of defined benefit pension items Amortization of prior year service cost 3 22 17 (3) Amortization of net actuarial loss 7 9 25 (3) Total before tax 10 31 42 Tax benefit (3 ) (9 ) (12 ) Net of tax 7 22 30 Amortization of other post-retirement benefit plans' items Amortization of net actuarial loss — — 1 (3) Total before tax — — 1 Tax benefit — — — Net of tax — — 1 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive (Loss) Income. (3) These amounts are included in the computation of net periodic pension cost (see Note 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Par December 31, December 31, Maturity Amount Currency 2015 2014 $ $ $ Unsecured notes 7.125% Notes 2015 167 US — 166 9.5% Notes 2016 39 US 39 96 10.75% Notes 2017 63 US 63 275 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 249 249 Revolving Credit Facility 2019 50 US 50 — Term Loan 2025 300 US 300 — Capital lease obligations and other 2016 - 2028 10 15 1,260 1,350 Less: Due within one year 41 169 1,219 1,181 |
Principal Long-Term Debt Repayments, Including Capital Lease Obligations | Principal long-term debt repayments, including capital lease obligations, in each of the next five years will amount to: Long-term debt Capital leases and other $ $ 2016 39 3 2017 63 1 2018 — 1 2019 50 1 2020 — 1 Thereafter 1,100 7 1,252 14 Less: Amounts representing interest — 4 Total payments 1,252 10 |
Other Liabilities and Deferre55
Other Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Components Of Other Liabilities And Deferred Credits Table Text Block | The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2015 2014 $ $ Liability - other post-retirement benefit plans (Note 7) 82 100 Pension liability - defined benefit pension plans (Note 7) 129 123 Pension liability - multiemployer plan withdrawal 52 58 Provision for environmental and asset retirement obligations (Note 22) 38 44 Stock-based compensation - liability awards 13 14 Derivative financial instruments 14 15 Other 22 24 350 378 |
Domtar's Asset Retirement Obligations | The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2015 2014 $ $ Asset retirement obligations, beginning of year 20 21 Revisions to estimated cash flows (3 ) — Asset retirement obligation payments (1 ) (2 ) Accretion expense 1 2 Effect of foreign currency exchange rate change (1 ) (1 ) Asset retirement obligations, end of year 16 20 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value | The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2015 and December 31, 2014, were as follows: December 31, December 31, 2015 2014 Number Number Common stock of shares $ of shares $ Balance at beginning of year 64,010,087 1 31,857,451 — Shares issued Stock options — — — — Conversion of exchangeable shares — — 561,510 — Stock split (2:1) (1) — — 32,500,552 1 Treasury stock (1) (1,160,151 ) — (909,426 ) — Balance at end of year 62,849,936 1 64,010,087 1 (1) During 2015, the Company repurchased 1,210,932 shares through the Program (2014 – 996,967) and issued 50,781 shares (2014 – 87,541) out of Treasury stock in conjunction with the exercise of stock-based compensation awards. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Remediation Obligations [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: December 31, December 31, 2015 2014 $ $ Balance at beginning of year 60 67 Additions 1 2 Environmental spending (3 ) (8 ) Accretion 1 2 Effect of foreign currency exchange rate change (7 ) (3 ) Balance at end of year 52 60 |
Anticipated Undiscounted Payments | At December 31, 2015, anticipated undiscounted payments in each of the next five years are as follows: 2016 2017 2018 2019 2020 Thereafter Total $ $ $ $ $ $ $ Environmental provision and other asset retirement obligations 14 11 3 1 1 66 96 |
Minimum Future Payments under Operating Leases and Other Commercial Commitments | Minimum future payments under these operating leases and other commercial commitments, determined at December 31, 2015, were as follows: 2016 2017 2018 2019 2020 Thereafter Total $ $ $ $ $ $ $ Operating leases 22 19 17 15 13 45 131 Other commercial commitments 78 10 2 1 — — 91 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 December 31, 2015 to hedge forecasted purchases: Notional contractual value Percentage of forecasted Notional contractual under derivative contracts purchases under Commodity under derivative contracts (in millions of dollars) derivative contracts for Natural gas 2016 13,045,000 MMBTU (1) $ 45 58 % 2017 5,010,000 MMBTU (1) $ 17 22 % 2018 3,375,000 MMBTU (1) $ 10 15 % 2019 1,685,000 MMBTU (1) $ 5 7 % 2020 1,690,000 MMBTU (1) $ 6 8 % (1) MMBTU: Millions of British thermal units |
Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2015 to hedge forecasted purchases and sales: Percentage of Notional forecasted Business Year of contractual exposures under Average Average Currency exposure hedged Segment maturity value contracts Protection rate Obligation rate 2016 CDN/USD Pulp and Paper 462 CDN 60% 1 USD = 1.2026 1 USD = 1.2453 USD/Euro Personal Care 56 USD 78% 1 Euro = 1.1364 1 Euro = 1.1364 Euro/USD Pulp and Paper 38 EUR 75% 1 Euro = 1.1266 1 Euro = 1.1266 2017 CDN/USD Pulp and Paper 195 CDN 25% 1 USD = 1.2510 1 USD = 1.3152 |
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 December 31, 2015 and December 31, 2014, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2015 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Currency derivatives 2 — 2 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 10 — 10 — Liabilities derivatives Currency derivatives 39 — 39 — (a) Trade and other payables Currency derivatives 10 — 10 — (a) Other liabilities and deferred credits Natural gas swap contracts 14 — 14 — (a) Trade and other payables Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 67 — 67 — Other Instruments: Asset backed notes ("ABN") 1 — — 1 (b) Other assets Long-term debt 1,261 — 1,261 — (c) Long-term debt The cumulative loss recorded in Other comprehensive (loss) income relating to natural gas contracts of $17 million at December 31, 2015, will be recognized in Cost of sales upon maturity of the derivatives over the next 60 months at the then prevailing values, which may be different from those at December 31, 2015. The cumulative loss recorded in Other comprehensive (loss) income relating to currency options and forwards hedging forecasted purchases of $40 million at December 31, 2015, will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 24 months at the then prevailing values, which may be different from those at December 31, 2015. Quoted prices in Significant Significant active markets for observable unobservable December identical assets inputs inputs Fair Value of financial instruments at: 2014 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Currency derivatives 3 — 3 — (a) Other assets Total Assets 10 — 10 — Liabilities derivatives Currency derivatives 14 — 14 — (a) Trade and other payables Currency derivatives 9 — 9 — (a) Other liabilities and deferred credits Natural gas swap contracts 13 — 13 — (a) Trade and other payables Natural gas swap contracts 6 — 6 (a) Other liabilities and deferred credits Total Liabilities 42 — 42 — Other Instruments: — Asset backed notes 11 — 10 1 (b) Other assets Long-term debt 1,475 — 1,475 — (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 derivatives: 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 are 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. These ABN are held outside of the Company’s pension plans. (c) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at December 31, 2015 and December 31, 2014. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,260 million and $1,350 million at December 31, 2015 and December 31, 2014, respectively. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Analysis and Reconciliation of Reportable Segment Information | An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2015 2014 2013 $ $ $ Sales Pulp and Paper 4,458 4,674 4,843 Personal Care 869 928 566 Total for reportable segments 5,327 5,602 5,409 Intersegment sales (63 ) (39 ) (18 ) Consolidated sales (1) 5,264 5,563 5,391 Depreciation and amortization and impairment and write-down of property, plant and equipment Pulp and Paper 297 319 345 Personal Care 62 65 31 Total for reportable segments 359 384 376 Impairment and write-down of property, plant and equipment - Pulp and Paper 77 4 20 Impairment and write-down of property, plant and equipment - Personal Care — — 2 Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment 436 388 398 Operating income (loss) (2) Pulp and Paper 270 352 244 Personal Care 61 49 40 Corporate (43 ) (37 ) (123 ) Consolidated operating income 288 364 161 Interest expense, net 132 103 89 Earnings before income taxes and equity loss 156 261 72 Income tax expense (benefit) 14 (170 ) (20 ) Equity loss, net of taxes — — 1 Net earnings 142 431 91 (1) In 2015 and 2014, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 10% (2014 – 9%) of the total sales. (2) As a result of changes in the Company’s organization structure, the Company has changed the way it allocates certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, are now presented on the Corporate line. As a result, the Company has revised its 2014 and 2013 segment disclosures to conform to its 2015 presentation. (Previously reported numbers for Operating income (loss) for years ended December 31, 2014 and 2013 are as follows; Pulp and Paper $323 million and $171 million, respectively, Personal Care: $54 million and $43 million, respectively, Corporate: $(13) million and $(53) million, respectively). |
Consolidated Assets | December 31, December 31, SEGMENT DATA (CONTINUED) 2015 2014 $ $ Segment assets Pulp and Paper 3,667 3,915 Personal Care 1,822 1,963 Total for reportable segments 5,489 5,878 Corporate 174 307 Consolidated assets 5,663 6,185 |
Schedule Of Segment Reporting Information Expenditures For Additions To Long Lived Assets Table Text Block | Year ended Year ended Year ended December 31, December 31, December 31, 2015 2014 2013 $ $ $ Additions to property, plant and equipment Pulp and Paper 221 161 147 Personal Care 57 86 91 Total for reportable segments 278 247 238 Corporate 6 5 6 Consolidated additions to property, plant and equipment 284 252 244 Add: Change in payables on capital projects 5 (16 ) (2 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 289 236 242 |
Long-Lived Assets | December 31, December 31, 2015 2014 $ $ Long-lived assets United States 2,566 2,691 Canada 640 823 Europe 769 845 3,975 4,359 |
Sales [Member] | |
Geographic Information on Sales | Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA (CONTINUED) 2015 2014 2013 $ $ $ Geographic information Sales United States 3,776 3,910 3,992 Canada 492 591 638 Europe 561 659 375 Asia 302 257 281 Other foreign countries 133 146 105 5,264 5,563 5,391 |
Supplemental Guarantor Financ60
Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,346 2,070 (1,152 ) 5,264 Operating expenses Cost of sales, excluding depreciation and amortization — 3,726 1,573 (1,152 ) 4,147 Depreciation and amortization — 256 103 — 359 Selling, general and administrative 11 105 278 — 394 Impairment and write-down of property, plant and equipment — 77 — — 77 Closure and restructuring costs — 3 1 — 4 Other operating loss (income), net 5 (3 ) (7 ) — (5 ) 16 4,164 1,948 (1,152 ) 4,976 Operating (loss) income (16 ) 182 122 — 288 Interest expense (income), net 131 30 (29 ) — 132 (Loss) earnings before income taxes (147 ) 152 151 — 156 Income tax (benefit) expense (63 ) 38 39 — 14 Share in earnings of equity accounted investees 226 112 — (338 ) — Net earnings 142 226 112 (338 ) 142 Other comprehensive loss (233 ) (235 ) (215 ) 450 (233 ) Comprehensive loss (91 ) (9 ) (103 ) 112 (91 ) DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2015 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,440 2,250 (1,127 ) 5,563 Operating expenses Cost of sales, excluding depreciation and amortization — 3,762 1,761 (1,127 ) 4,396 Depreciation and amortization — 264 120 — 384 Selling, general and administrative 29 209 178 — 416 Impairment and write-down of property, plant and equipment — 4 — — 4 Closure and restructuring costs — 7 21 — 28 Other operating loss (income), net 2 (26 ) (5 ) — (29 ) 31 4,220 2,075 (1,127 ) 5,199 Operating (loss) income (31 ) 220 175 — 364 Interest expense (income), net 101 26 (24 ) — 103 (Loss) earnings before income taxes (132 ) 194 199 — 261 Income tax (benefit) expense (51 ) (151 ) 32 — (170 ) Share in earnings of equity accounted investees 512 167 — (679 ) — Net earnings 431 512 167 (679 ) 431 Other comprehensive loss (203 ) (194 ) (168 ) 362 (203 ) Comprehensive income (loss) 228 318 (1 ) (317 ) 228 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2013 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,461 1,986 (1,056 ) 5,391 Operating expenses Cost of sales, excluding depreciation and amortization — 3,752 1,665 (1,056 ) 4,361 Depreciation and amortization — 266 110 — 376 Selling, general and administrative 26 245 110 — 381 Impairment and write-down of property, plant and equipment — 10 12 — 22 Closure and restructuring costs — 6 12 — 18 Other operating (income) loss, net (3 ) 40 35 — 72 23 4,319 1,944 (1,056 ) 5,230 Operating (loss) income (23 ) 142 42 — 161 Interest expense (income), net 96 20 (27 ) — 89 (Loss) earnings before income taxes and equity loss (119 ) 122 69 — 72 Income tax (benefit) expense (54 ) 7 27 — (20 ) Equity loss, net of taxes — — 1 — 1 Share in earnings of equity accounted investees 156 41 — (197 ) — Net earnings 91 156 41 (197 ) 91 Other comprehensive income 4 26 33 — 63 Comprehensive income 95 182 74 (197 ) 154 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 49 2 75 — 126 Receivables — 384 243 — 627 Inventories — 556 210 — 766 Prepaid expenses 8 7 6 — 21 Income and other taxes receivable — 13 11 (10 ) 14 Intercompany accounts 764 4,776 16 (5,556 ) — Total current assets 821 5,738 561 (5,566 ) 1,554 Net property, plant and equipment — 2,018 817 — 2,835 Goodwill — 296 243 — 539 Intangible assets, net of amortization — 254 347 — 601 Investments in affiliates 8,005 2,050 — (10,055 ) — Intercompany long-term advances 6 88 621 (715 ) — Other assets 24 10 115 (15 ) 134 Total assets 8,856 10,454 2,704 (16,351 ) 5,663 Liabilities and shareholders' equity Current liabilities Trade and other payables 61 456 203 — 720 Intercompany accounts 4,685 722 149 (5,556 ) — Income and other taxes payable 4 24 9 (10 ) 27 Long-term debt due within one year 38 1 2 — 41 Total current liabilities 4,788 1,203 363 (5,566 ) 788 Long-term debt 910 301 8 — 1,219 Intercompany long-term loans 490 225 — (715 ) — Deferred income taxes and other — 535 131 (12 ) 654 Other liabilities and deferred credits 16 185 152 (3 ) 350 Shareholders' equity 2,652 8,005 2,050 (10,055 ) 2,652 Total liabilities and shareholders' equity 8,856 10,454 2,704 (16,351 ) 5,663 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 79 18 77 — 174 Receivables — 370 258 — 628 Inventories — 495 219 — 714 Prepaid expenses 11 7 7 — 25 Income and other taxes receivable 37 — 17 — 54 Intercompany accounts 977 4,613 13 (5,603 ) — Deferred income taxes — 40 35 — 75 Total current assets 1,104 5,543 626 (5,603 ) 1,670 Net property, plant and equipment — 2,134 997 — 3,131 Goodwill — 296 271 — 567 Intangible assets, net of amortization — 263 398 — 661 Investments in affiliates 8,015 2,153 — (10,168 ) — Intercompany long-term advances 6 80 434 (520 ) — Other assets 31 11 135 (21 ) 156 Total assets 9,156 10,480 2,861 (16,312 ) 6,185 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 10 — — 10 Trade and other payables 69 409 243 — 721 Intercompany accounts 4,582 925 96 (5,603 ) — Income and other taxes payable 2 9 15 — 26 Long-term debt due within one year 166 2 1 — 169 Total current liabilities 4,819 1,355 355 (5,603 ) 926 Long-term debt 1,168 2 11 — 1,181 Intercompany long-term loans 260 260 — (520 ) — Deferred income taxes and other — 675 156 (21 ) 810 Other liabilities and deferred credits 19 173 186 — 378 Shareholders' equity 2,890 8,015 2,153 (10,168 ) 2,890 Total liabilities and shareholders' equity 9,156 10,480 2,861 (16,312 ) 6,185 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2015 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 142 226 112 (338 ) 142 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 134 (250 ) 89 338 311 Cash flows provided from operating activities 276 (24 ) 201 — 453 Investing activities Additions to property, plant and equipment — (210 ) (79 ) — (289 ) Proceeds from disposals of property, plant and equipment 1 7 28 — 36 Other — — 9 — 9 Cash flows used for investing activities 1 (203 ) (42 ) — (244 ) Financing activities Dividend payments (100 ) — — — (100 ) Stock repurchase (50 ) — — — (50 ) Net change in bank indebtedness — (11 ) — — (11 ) Change of revolving bank credit facility 50 — — — 50 Issuance of long-term debt — 300 — — 300 Repayment of long-term debt (436 ) (2 ) (1 ) — (439 ) Increase in long-term advances to related parties — (75 ) (152 ) 227 — Decrease in long-term advances to related parties 227 — — (227 ) — Other 2 (1 ) — — 1 Cash flows (used for) provided from financing activities (307 ) 211 (153 ) — (249 ) Net decrease in cash and cash equivalents (30 ) (16 ) 6 — (40 ) Impact of foreign exchange on cash — — (8 ) — (8 ) Cash and cash equivalents at beginning of year 79 18 77 — 174 Cash and cash equivalents at end of year 49 2 75 — 126 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2014 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 431 512 167 (679 ) 431 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (220 ) (380 ) 124 679 203 Cash flows provided from operating activities 211 132 291 — 634 Investing activities Additions to property, plant and equipment — (139 ) (97 ) — (236 ) Proceeds from disposals of property, plant and equipment — — 1 — 1 Acquisition of business, net of cash acquired — — (546 ) — (546 ) Other — — (5 ) — (5 ) Cash flows used for investing activities — (139 ) (647 ) — (786 ) Financing activities Dividend payments (84 ) — — — (84 ) Stock repurchase (38 ) — — — (38 ) Net change in bank indebtedness (1 ) (4 ) (1 ) — (6 ) Change of revolving bank credit facility (160 ) — — — (160 ) Proceeds from receivables securitization facilities — — 90 — 90 Payments on receivables securitization facilities — — (129 ) — (129 ) Repayment of long-term debt — (3 ) (1 ) — (4 ) Increase in long-term advances to related parties (292 ) — — 292 — Decrease in long-term advances to related parties — 10 282 (292 ) — Other 4 — 1 — 5 Cash flows (used for) provided from financing activities (571 ) 3 242 — (326 ) Net decrease in cash and cash equivalents (360 ) (4 ) (114 ) — (478 ) Impact of foreign exchange on cash — — (3 ) — (3 ) Cash and cash equivalents at beginning of year 439 22 194 — 655 Cash and cash equivalents at end of year 79 18 77 — 174 CONDENSED CONSOLIDATING STATEMENT OF CASH Year ended FLOWS December 31, 2013 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 91 156 41 (197 ) 91 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 134 (52 ) 41 197 320 Cash flows provided from operating activities 225 104 82 — 411 Investing activities Additions to property, plant and equipment — (153 ) (89 ) — (242 ) Proceeds from disposals of property, plant and equipment and sale of business — 55 6 — 61 Acquisition of businesses, net of cash acquired — (283 ) (4 ) — (287 ) Other — — (1 ) — (1 ) Cash flows used for investing activities — (381 ) (88 ) — (469 ) Financing activities Dividend payments (67 ) — — — (67 ) Stock repurchase (183 ) — — — (183 ) Net change in bank indebtedness 1 (5 ) 1 — (3 ) Change of revolving bank credit facility 160 — — — 160 Payments on receivables securitization facilities 249 — — — 249 Repayment of long-term debt (71 ) (28 ) (3 ) — (102 ) Increase in long-term advances to related parties (150 ) — (110 ) 260 — Decrease in long-term advances to related parties — 260 — (260 ) — Cash flows (used for) provided from financing activities (61 ) 227 (112 ) — 54 Net increase (decrease) in cash and cash equivalents 164 (50 ) (118 ) — (4 ) Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 275 72 314 — 661 Cash and cash equivalents at end of year 439 22 194 — 655 |
Interim Financial Results (Tabl
Interim Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Interim Financial Results | Interim Financial Results (Unaudited) (in millions of dollars, unless otherwise noted) 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,348 $ 1,310 $ 1,292 $ 1,314 $ 5,264 Operating income 71 (a) 62 (b) 61 (c) 94 (d) 288 Earnings (loss) before income taxes 45 37 (3 ) 77 156 Net earnings 36 38 11 57 142 Basic net earnings per common share 0.56 0.60 0.17 0.91 2.24 Diluted net earnings per common share 0.56 0.60 0.17 0.91 2.24 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,394 $ 1,385 $ 1,405 $ 1,379 $ 5,563 Operating income 79 (e) 79 120 (f) 86 (g) 364 Earnings before income taxes 54 53 95 59 261 Net earnings 39 40 281 (h) 71 431 Basic net earnings per common share 0.60 0.62 4.34 1.10 6.65 Diluted net earnings per common share 0.60 0.61 4.33 1.10 6.64 (a) The operating income for the first Quarter of 2015 included closure and restructuring costs of $1 million related to our Personal Care segment. The Company also incurred a gain on disposal of property, plant and equipment of $1 million related to our Corporate segment. In addition, the Company incurred $19 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (b) The operating income for the second Quarter of 2015 included $1 million of closure and restructuring costs related to our Pulp and Paper segment. The company also recorded a gain on disposal of property, plant and equipment of $14 million, mostly relating to the sale of its former Ottawa mill. In addition, the Company incurred an additional $18 million of accelerated depreciation at its Ashdown, Arkansas mill. (c) The operating income for the third Quarter of 2015 included closure and restructuring costs of $1 million related to our Pulp and Paper segment. The Company also incurred an additional $20 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (d) The operating income for the fourth Quarter of 2015 included closure and restructuring costs of $1 million related to our Pulp and Paper segment. The Company also incurred an additional $20 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (e) The operating income for the first Quarter of 2014 included closure and restructuring costs of $1 million related to our Personal Care segment. (f) In the third Quarter of 2014, the Company incurred an additional $2 million of closure and restructuring costs related to our Pulp & Paper segment. In addition, the Company recognized $18 million of Alternative Fuel Tax Credits in income, with no related tax expense. (g) In the fourth Quarter of 2014, the Company incurred pension settlement costs in the amount of $19 million related to the previously closed Ottawa paper mill. In addition, the Company recorded $2 million of closure and termination costs and $1 million of inventory obsolescence at its Indianapolis, Indiana converting site. The company also recorded $3 million inventory obsolescence and $4 million of accelerated depreciation at its Ashdown, Arkansas mill, due to a conversion of a paper machine to a fluff pulp line. ( h ) The net earnings for the third Quarter of 2014 included the recognition of previously unrecognized tax benefits of approximately $204 million as a result of the closure of U.S. federal tax audits for tax years 2009 through 2011, as well as the impact of recognizing $18 million of AFTC income with no related tax expense. |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated translation adjustment accounts | $ (271,000,000) | $ (48,000,000) |
LIFO inventories | 288,000,000 | 229,000,000 |
Excess amount of inventory if valued under FIFO instead of LIFO | $ 66,000,000 | $ 71,000,000 |
Other Post-Retirement Benefit Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 10 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of accrued benefit obligation or market value of plan assets | 10.00% | |
Omnibus Plan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Shares reserved for issuance in connection with stock awards grants | 2,267,680 | |
Pension Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 8 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of accrued benefit obligation or market value of plan assets | 10.00% | |
Time-Based Awards [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Vesting period (in years) | 3 years | |
Performance-Based Awards [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Vesting period (in years) | 3 years | |
Construction in Progress [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation | $ 0 | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 10 years | |
Minimum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, amortization period (in years) | 10 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, amortization period (in years) | 3 years | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 40 years | |
Majority of non-qualified stock options and performance share units expiration period from date of grant | 7 years | |
Maximum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, amortization period (in years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, amortization period (in years) | 20 years |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Amortization Period of Finite Lived Assets (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Water Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Non-Compete [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 9 years |
License Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 12 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 10 years |
Minimum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 7 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Maximum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 20 years |
Acquisition of Businesses - Add
Acquisition of Businesses - Additional Information (Detail) € in Millions, $ in Millions | Jan. 02, 2014USD ($)EmployeesFacility | Jan. 02, 2014EUR (€)EmployeesFacility | Jul. 01, 2013USD ($)ft²EmployeesFacility | Jun. 01, 2013USD ($) | Dec. 31, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||
Purchase price | $ 546 | $ 287 | |||||
Laboratorios Indas [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition completion date | Jan. 2, 2014 | ||||||
Acquisition percentage | 100.00% | 100.00% | |||||
Acquisition of business, number of employees | Employees | 570 | 570 | |||||
Number of facilities | Facility | 2 | 2 | |||||
Purchase price | $ 546 | € 399 | |||||
Cash acquired in acquisition | $ 46 | € 34 | |||||
Associated Hygienic Products LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition completion date | Jul. 1, 2013 | ||||||
Acquisition percentage | 100.00% | ||||||
Acquisition of business, number of employees | Employees | 410 | ||||||
Number of facilities | Facility | 2 | ||||||
Purchase price | $ 276 | ||||||
Cash acquired in acquisition | $ 2 | ||||||
Associated Hygienic Products LLC [Member] | Delaware, Ohio [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Area of manufacturing facility | ft² | 376,500 | ||||||
Associated Hygienic Products LLC [Member] | Waco, TX [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Area of manufacturing facility | ft² | 312,500 | ||||||
Xerox [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition completion date | Jun. 1, 2013 | ||||||
Cash portion of purchase price | $ 7 |
Acquisition of Businesses - Fai
Acquisition of Businesses - Fair Value of Assets Acquired - Laboratorios Indas (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 02, 2014 | Dec. 31, 2013 |
Intangible assets | ||||
Goodwill | $ 539 | $ 567 | $ 369 | |
Laboratorios Indas [Member] | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 101 | |||
Inventory | 28 | |||
Income and other taxes receivable | 3 | |||
Property, plant and equipment | 72 | |||
Intangible assets | ||||
Intangible assets | 328 | |||
Goodwill | 234 | |||
Deferred income tax assets | 16 | |||
Total assets | 782 | |||
Less: Liabilities | ||||
Trade and other payables | 71 | |||
Income and other taxes payable | 3 | |||
Long-term debt (including short-term portion) | 42 | |||
Deferred income tax liabilities | 119 | |||
Other liabilities and deferred credits | 1 | |||
Total liabilities | 236 | |||
Fair value of net assets acquired at the date of acquisition | 546 | |||
Laboratorios Indas [Member] | Trade Names [Member] | ||||
Intangible assets | ||||
Intangible assets | 140 | |||
Laboratorios Indas [Member] | Catalog Rights [Member] | ||||
Intangible assets | ||||
Intangible assets | 46 | |||
Laboratorios Indas [Member] | Customer Relationships [Member] | ||||
Intangible assets | ||||
Intangible assets | $ 142 |
Acquisition of Businesses - F66
Acquisition of Businesses - Fair Value of Assets Acquired - Laboratorios Indas (Parenthetical) (Detail) - Customer Relationships [Member] | Jan. 02, 2014 | Dec. 31, 2015 |
Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 10 years | |
Minimum [Member] | Laboratorios Indas [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 10 years | |
Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 40 years | |
Maximum [Member] | Laboratorios Indas [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 20 years |
Acquisition of Businesses - F67
Acquisition of Businesses - Fair Value of Assets Acquired - Associated Hygienic Products LLC (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2013 |
Intangible assets | ||||
Goodwill | $ 539 | $ 567 | $ 369 | |
Associated Hygienic Products LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 26 | |||
Inventory | 29 | |||
Property, plant and equipment | 99 | |||
Intangible assets | ||||
Intangible assets | 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 | |||
Associated Hygienic Products LLC [Member] | Customer Relationships [Member] | ||||
Intangible assets | ||||
Intangible assets | 67 | |||
Associated Hygienic Products LLC [Member] | Licensing Agreements | ||||
Intangible assets | ||||
Intangible assets | $ 29 |
Acquisition of Businesses - F68
Acquisition of Businesses - Fair Value of Assets Acquired - Associated Hygienic Products LLC (Parenthetical) (Detail) | Jul. 01, 2013 | Dec. 31, 2015 |
License Rights [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 12 years | |
Associated Hygienic Products LLC [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 20 years | |
Associated Hygienic Products LLC [Member] | License Rights [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of the finite lived intangible assets acquired | 12 years |
Acquisition of Businesses - F69
Acquisition of Businesses - Fair Value of Assets Acquired - Xerox (Detail) - Xerox [Member] $ in Millions | Jun. 01, 2013USD ($) |
Business Acquisition [Line Items] | |
Inventory | $ 4 |
Intangible assets | |
Finite lived intangible assets | 7 |
Total assets | 11 |
Fair value of assets acquired at the date of acquisition | 11 |
License Rights [Member] | |
Intangible assets | |
Finite lived intangible assets | 6 |
Customer Relationships [Member] | |
Intangible assets | |
Finite lived intangible assets | $ 1 |
Acquisition of Businesses - F70
Acquisition of Businesses - Fair Value of Assets Acquired - Xerox (Parenthetical) (Detail) | Jun. 01, 2013 |
Xerox [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful life of the finite lived intangible assets acquired | 20 years |
Impairment and Write-Down of 71
Impairment and Write-Down of Property, Plant and Equipment - Additional Information (Detail) $ in Millions | Jul. 31, 2013Employees | Jul. 31, 2013Employee | Dec. 31, 2013USD ($) | Jun. 30, 2013USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Property Plant And Equipment [Line Items] | ||||||||
Impairment and write-down of property, plant and equipment | $ 77 | $ 4 | $ 22 | |||||
Ariva U.S. [Member] | ||||||||
Property Plant And Equipment [Line Items] | ||||||||
Impairment and write-down of property, plant and equipment | $ 5 | |||||||
Sale of business, number of employees | 400 | 400 | ||||||
Attends Europe [Member] | ||||||||
Property Plant And Equipment [Line Items] | ||||||||
Impairment and write-down of property, plant and equipment | $ 2 | |||||||
Pulp and Paper [Member] | ||||||||
Property Plant And Equipment [Line Items] | ||||||||
Impairment and write-down of property, plant and equipment | $ 5 | |||||||
Ashdown, Arkansas Pulp And Paper Mill-Conversion of Paper Machine [Member] | ||||||||
Property Plant And Equipment [Line Items] | ||||||||
Accelerated depreciation | $ 77 | |||||||
Expected in 2016 [Member] | Ashdown, Arkansas Pulp And Paper Mill-Conversion of Paper Machine [Member] | ||||||||
Property Plant And Equipment [Line Items] | ||||||||
Accelerated depreciation | $ 25 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of units | 310,303 | 350,076 | 364,488 |
Granted, Number of units | 219,453 | 175,815 | 194,304 |
Forfeited, Number of units | (21,918) | (33,076) | (8,554) |
Cancelled, Number of units | (60,768) | (89,622) | (101,978) |
Settled, Number of units | (20,991) | (92,890) | (98,184) |
Ending balance, Number of units | 426,079 | 310,303 | 350,076 |
Beginning balance, Weighted average grant date fair value | $ 45.52 | $ 42.60 | $ 52.27 |
Granted, Weighted average grant date fair value | 44.22 | 53.97 | 35.97 |
Forfeited, Weighted average grant date fair value | 45.52 | 45.29 | 44.04 |
Cancelled, Weighted average grant date fair value | 35.40 | 49.79 | 45.85 |
Settled, Weighted average grant date fair value | 51.48 | 46.49 | 62.83 |
Ending balance, Weighted average grant date fair value | $ 46 | $ 45.52 | $ 42.60 |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 164,879 | 130,045 | 121,654 |
Beginning balance, Weighted average grant date fair value | $ 44.80 | $ 41.46 | $ 38.68 |
Granted, Weighted average grant date fair value | 43.21 | 49.95 | 38.24 |
Forfeited, Weighted average grant date fair value | 44.78 | 44.37 | 41.58 |
Ending balance, Weighted average grant date fair value | $ 44.21 | $ 44.80 | $ 41.46 |
Beginning balance, Number of units | 314,220 | 374,414 | 566,116 |
Forfeited, Number of units | (12,464) | (29,230) | (15,214) |
Vested/Settled, Number of units | (119,669) | (161,009) | (298,142) |
Ending balance, Number of units | 346,966 | 314,220 | 374,414 |
Vested/Settled, Weighted average grant date fair value | $ 44.31 | $ 41.27 | $ 34.86 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 40,494 | 39,165 | 38,086 |
Granted, Weighted average grant date fair value | $ 39.92 | $ 44.25 | $ 38.80 |
Settled, Weighted average grant date fair value | $ 41.88 | $ 32.17 | $ 28.21 |
Beginning balance, Number of units | 262,721 | 271,742 | 277,654 |
Settled, Number of units | (13,755) | (48,186) | (43,998) |
Ending balance, Number of units | 289,460 | 262,721 | 271,742 |
Beginning balance, Weighted average grant date fair value | $ 27.11 | $ 25.54 | $ 24.14 |
Ending balance, Weighted average grant date fair value | $ 28.20 | $ 27.11 | $ 25.54 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Calculating Fair Value of Options Granted (Detail) - $ / shares | May. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Black-Scholes Based Option Pricing Model [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield | 2.80% | 3.22% | 2.62% | 2.67% |
Expected volatility | 33.00% | 32.00% | 32.00% | 35.00% |
Risk-free interest rate | 1.485% | 1.47% | 1.34% | 0.76% |
Expected life | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Strike price | $ 47.08 | $ 43.42 | $ 53.12 | $ 38.35 |
Monte Carlo Simulation [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield | 3.22% | 1.98% | 2.23% | |
Monte Carlo Simulation [Member] | One Year [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 34.00% | 31.00% | 23.00% | |
Monte Carlo Simulation [Member] | Three Years [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 30.00% | 31.00% | 35.00% | |
Monte Carlo Simulation [Member] | December 31, 2013 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.679% | |||
Monte Carlo Simulation [Member] | December 31, 2014 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.499% | 0.469% | ||
Monte Carlo Simulation [Member] | December 31, 2015 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.732% | 0.447% | 0.549% | |
Monte Carlo Simulation [Member] | December 31, 2016 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.893% | 0.755% | ||
Monte Carlo Simulation [Member] | December 31, 2017 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.20% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May. 01, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate intrinsic value, Options exercised | $ 0 | $ 2 | $ 2 | |
Aggregate intrinsic value, Options outstanding | 0 | |||
Aggregate intrinsic value, Options exercisable | $ 0 | |||
Closing stock price | $ 36.95 | $ 40.22 | $ 47.17 | |
Stock-based compensation expense recognized | $ 10 | $ 9 | $ 13 | |
Compensation costs not yet recognized | $ 16 | 14 | 11 | |
Compensation costs not yet recognized, period of recognition | 26 months | |||
Aggregate value of liability awards settled | $ 4 | $ 12 | $ 10 | |
Total fair value of equity awards settled | $ 3 | |||
Performance Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected to be settled in shares | 174,075 | |||
Expected to be settled in cash | 252,004 | |||
Performance Stock Options [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options expire at various dates from the date of grant | 7 years | |||
Restricted Stock Unit [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected to be settled in shares | 133,201 | |||
Expected to be settled in cash | 213,765 | |||
Vesting period (in years) | 3 years | |||
Granted, Weighted average grant date fair value | $ 43.21 | $ 49.95 | $ 38.24 | |
Deferred Share Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vested in period | 0 | 6,799 | 7,680 | |
Granted, Weighted average grant date fair value | $ 39.92 | $ 44.25 | $ 38.80 | |
Non-Qualified Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted, Weighted average grant date fair value | $ 10.52 | $ 8.96 | $ 11.60 | $ 8.86 |
Stock Options [Member] | Michael Garcia, President Pulp and Paper [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options, Granted | 22,448 | |||
Stock Appreciation Rights [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding and exercisable | 672 | 2,352 | ||
Options outstanding and exercisable, weighted average exercise price | $ 41.46 | $ 38.80 |
Stock-Based Compensation - Su75
Stock-Based Compensation - Summary of Outstanding Awards, Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate intrinsic value Outstanding, Ending | $ 0 | |||
Aggregate intrinsic value, Exercisable | $ 0 | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options Outstanding, Beginning | 418,123 | 465,674 | 471,182 | |
Number of options, Granted | 82,885 | 270,028 | 135,174 | |
Number of options, Exercised | (35,924) | (131,312) | (101,852) | |
Number of options, Forfeited/expired | (13,782) | (186,267) | (38,830) | |
Number of options Outstanding Ending | 451,302 | 418,123 | 465,674 | 471,182 |
Number of options, Exercisable | 176,315 | 93,027 | 200,274 | |
Weighted average exercise price Outstanding, Beginning Balance | $ 46.39 | $ 43.93 | $ 40.78 | |
Weighted average exercise price, Granted | 43.42 | 52.48 | 38.35 | |
Weighted average exercise price, Exercised | 43.13 | 37.02 | 19.40 | |
Weighted average exercise Price, Forfeited/expired | 34.08 | 55.67 | 50.62 | |
Weighted average exercise price Outstanding, Ending Balance | 46.48 | 46.39 | 43.93 | $ 40.78 |
Weighted average exercise price, Exercisable | $ 44.56 | $ 37.40 | $ 36.83 | |
Weighted average remaining life (in years), Outstanding | 4 years 9 months 18 days | 4 years 7 months 6 days | 2 years 7 months 6 days | 2 years 2 months 12 days |
Weighted average remaining life (in years), Granted | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 1 month 6 days | |
Weighted average remaining life (in years), Options exercisable | 3 years 10 months 24 days | 2 years | 1 year 8 months 12 days | |
Aggregate intrinsic value Outstanding, Beginning | $ 0.5 | $ 3.3 | $ 4.2 | |
Aggregate intrinsic value, Granted | 1.2 | |||
Aggregate intrinsic value Outstanding, Ending | 0.1 | 0.5 | 3.3 | $ 4.2 |
Aggregate intrinsic value, Exercisable | $ 0.1 | $ 0.3 | $ 2.1 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) | Apr. 30, 2014 | Dec. 31, 2015 |
Earnings Per Share [Abstract] | ||
Stock split, description | On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. | |
Stock split ratio | 2 | 2 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation Between Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | $ 142 | $ 431 | $ 91 |
Weighted average number of common and exchangeable shares outstanding (millions) | 63.3 | 64.8 | 66.6 | ||||||||
Effect of dilutive securities (millions) | 0.1 | 0.1 | 0.1 | ||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 63.4 | 64.9 | 66.7 | ||||||||
Basic net earnings per common share (in dollars) | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 1.10 | $ 4.34 | $ 0.62 | $ 0.60 | $ 2.24 | $ 6.65 | $ 1.37 |
Diluted net earnings per common share (in dollars) | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 1.10 | $ 4.33 | $ 0.61 | $ 0.60 | $ 2.24 | $ 6.64 | $ 1.36 |
Earnings Per Common Share - Sec
Earnings Per Common Share - Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per common share amount | 343,581 | 247,152 | 194,836 |
Pension Plans and Other Post-79
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) CAD in Millions | Jan. 01, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2015CAD | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015CAD | Dec. 31, 2014CAD |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Pension expense | $ 32,000,000 | $ 28,000,000 | $ 29,000,000 | ||||
Accrued benefit obligation | 405,000,000 | 412,000,000 | |||||
Fair value of defined benefit plan assets with an accrued benefit obligation in excess of fair value of plan assets | $ 276,000,000 | $ 290,000,000 | |||||
Expected return on plan assets, percentage | 5.60% | 5.60% | 6.40% | ||||
Weighted-average annual rate increase in per capita cost of covered health care benefits assumed | 5.00% | 5.00% | |||||
Weighted-average annual rate assumed to decrease in per capita cost of covered health care benefits assumed | 4.10% | 4.10% | |||||
Weighted-average annual rate assumed to decrease in per capita cost of covered health care benefits, assumed year of impact | 2,033 | 2,033 | |||||
Restructured asset backed notes, value | $ 146,000,000 | $ 180,000,000 | CAD 201 | CAD 209 | |||
Asset backed commercial paper, repayments and sales | 6,000,000 | CAD 8 | |||||
Decrease in value of Canadian dollar | $ 28,000,000 | ||||||
Subsequent Event [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected return on plan assets, percentage | 5.50% | ||||||
United States Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Discount rate | 4.10% | 4.10% | |||||
Maturity of universe of bonds | 2 years | 2 years | |||||
Performance Share Units and Performance Conditioned Restricted Stock Units [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Additional ABN discount | 1.75% | 1.75% | |||||
Pension Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2016 | $ 14,000,000 | ||||||
Plan contributions | 13,000,000 | $ 29,000,000 | $ 35,000,000 | ||||
Amount to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 | $ 9,000,000 | ||||||
Discount rate | 4.00% | 3.90% | 4.10% | 4.00% | 3.90% | ||
Expected return on plan assets, percentage | 6.60% | 6.60% | 6.40% | 5.80% | |||
Pension Plans [Member] | Mature at Par [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Asset backed notes expected maturity period | 1 | 1 | |||||
Other Post-Retirement Benefit Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2016 | $ 4,000,000 | ||||||
Plan contributions | 5,000,000 | $ 5,000,000 | $ 10,000,000 | ||||
Amount to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2016 | $ 0 | ||||||
Discount rate | 4.10% | 3.90% | 4.80% | 4.10% | 3.90% | ||
Supplemental Nonqualified Unfunded Retirement Plan [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Accrued benefit obligation | $ 46,000,000 | $ 53,000,000 | |||||
Subject to Restructuring Under Court Under [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | 140,000,000 | $ 171,000,000 | $ 193,000,000 | ||||
Separately Restructured [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | $ 136,000,000 | ||||||
Asset backed notes expected maturity period | January 2,009 | January 2,009 | |||||
Asset Backed Notes [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | $ 4,000,000 | ||||||
Asset Backed Notes [Member] | ABN Montreal Accord [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | $ 6,000,000 |
Pension Plans and Other Post-80
Pension Plans and Other Post-Retirement Benefit Plans - Change in Accrued Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at beginning of year | $ 1,723 | $ 1,715 | |
Service cost for the year | 34 | 35 | $ 42 |
Interest expense | 60 | 77 | 75 |
Plan participants' contributions | 6 | 6 | |
Actuarial (gain) loss | (25) | 158 | |
Plan amendments | 10 | 1 | |
Benefits paid | (76) | (87) | |
Direct benefit payments | (3) | (5) | |
Settlement | (1) | (60) | |
Effect of foreign currency exchange rate change | (219) | (117) | |
Accrued benefit obligation at end of year | 1,509 | 1,723 | 1,715 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at beginning of year | 105 | 103 | |
Service cost for the year | 2 | 2 | 3 |
Interest expense | 4 | 5 | 5 |
Actuarial (gain) loss | (5) | 9 | |
Direct benefit payments | (5) | (5) | |
Effect of foreign currency exchange rate change | (15) | (9) | |
Accrued benefit obligation at end of year | $ 86 | $ 105 | $ 103 |
Pension Plans and Other Post-81
Pension Plans and Other Post-Retirement Benefit Plans - Change in Fair Value of Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,721 | ||
Fair value of assets at end of year | 1,493 | $ 1,721 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 1,721 | 1,709 | |
Actual return on plan assets | 63 | 253 | |
Employer contributions | 13 | 29 | $ 35 |
Plan participants' contributions | 6 | 6 | |
Benefits paid | (79) | (92) | |
Settlement | (1) | (60) | |
Effect of foreign currency exchange rate change | (230) | (124) | |
Fair value of assets at end of year | $ 1,493 | $ 1,721 | $ 1,709 |
Pension Plans and Other Post-82
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 0.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 9.00% | |
Fixed income and Equity, Percentage of plan assets | 2.00% | 3.00% |
Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 46.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 56.00% | |
Fixed income and Equity, Percentage of plan assets | 51.00% | 57.00% |
Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets | 6.00% | |
Fixed income and Equity, Percentage of plan assets | 6.00% | 0.00% |
Canadian Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 3.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 11.00% | |
Fixed income and Equity, Percentage of plan assets | 6.00% | 6.00% |
U.S. Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 9.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 19.00% | |
Fixed income and Equity, Percentage of plan assets | 15.00% | 15.00% |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 15.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 25.00% | |
Fixed income and Equity, Percentage of plan assets | 20.00% | 19.00% |
Pension Plans and Other Post-83
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Parenthetical) (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Canadian Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 80.00% | |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 20.00% |
Pension Plans and Other Post-84
Pension Plans and Other Post-Retirement Benefit Plans - Funded Status of Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at end of year | $ 1,493 | $ 1,721 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at end of year | (1,509) | (1,723) | $ (1,715) |
Fair value of assets at end of year | 1,493 | 1,721 | 1,709 |
Funded status | (16) | (2) | |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at end of year | (86) | (105) | $ (103) |
Funded status | $ (86) | $ (105) |
Pension Plans and Other Post-85
Pension Plans and Other Post-Retirement Benefit Plans - Amount Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (Note 15) | $ 113 | $ 121 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities and deferred credits (Note 20) | (129) | (123) |
Other assets (Note 15) | 113 | 121 |
Net amount recognized in the Consolidated Balance Sheets | (16) | (2) |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Trade and other payables (Note 17) | (4) | (5) |
Other liabilities and deferred credits (Note 20) | (82) | (100) |
Net amount recognized in the Consolidated Balance Sheets | $ (86) | $ (105) |
Pension Plans and Other Post-86
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credit | $ (10) | $ (1) | |
Amortization of prior year service cost (credit) | 3 | 3 | $ 3 |
Net gain (loss) | 2 | (8) | 126 |
Amortization of net actuarial loss | 7 | 28 | 38 |
Net amount recognized in other comprehensive income (loss) (pre-tax) | 2 | 22 | 167 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior year service cost (credit) | (1) | ||
Net gain (loss) | 4 | (8) | 10 |
Amortization of net actuarial loss | 1 | 1 | |
Net amount recognized in other comprehensive income (loss) (pre-tax) | $ 5 | $ (8) | $ 10 |
Pension Plans and Other Post-87
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | $ 34 | $ 35 | $ 42 |
Interest expense | 60 | 77 | 75 |
Expected return on plan assets | (86) | (101) | (96) |
Amortization of net actuarial loss | 7 | 9 | 25 |
Curtailment (gain) loss | 1 | ||
Settlement loss | 19 | 13 | |
Amortization of prior year service costs | 3 | 3 | 3 |
Net periodic benefit cost | 18 | 42 | 63 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | 2 | 2 | 3 |
Interest expense | 4 | 5 | 5 |
Net periodic benefit cost | $ 6 | $ 7 | $ 8 |
Pension Plans and Other Post-88
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) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Curtailment (gain) loss | $ 1 | |
Settlement loss | $ 19 | 13 |
Big River [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | 6 | |
Dryden mills [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | $ 7 |
Pension Plans and Other Post-89
Pension Plans and Other Post-Retirement Benefit Plans - Key Assumptions to Measure Accrued Benefit Obligation and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, Expected long-term rate of return on plan assets | 5.60% | 6.40% | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation, Discount rate | 4.00% | 3.90% | 4.10% |
Accrued benefit obligation, Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Net periodic benefit cost, Discount rate | 3.80% | 4.70% | 4.20% |
Net periodic benefit cost, Rate of compensation increase | 3.20% | 2.70% | 2.80% |
Net periodic benefit cost, Expected long-term rate of return on plan assets | 6.60% | 6.40% | 5.80% |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation, Discount rate | 4.10% | 3.90% | 4.80% |
Accrued benefit obligation, Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Net periodic benefit cost, Discount rate | 3.90% | 4.80% | 4.20% |
Net periodic benefit cost, Rate of compensation increase | 2.80% | 2.70% | 2.80% |
Pension Plans and Other Post-90
Pension Plans and Other Post-Retirement Benefit Plans - Effect of One Percent Change in Assumed Health Care Cost (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Impact on net periodic benefit cost for other post-retirement benefit plans, Increase of 1% | $ 1 |
Impact on accrued benefit obligation, Increase of 1% | 7 |
Impact on net periodic benefit cost for other post-retirement benefit plans, Decrease of 1% | (1) |
Impact on accrued benefit obligation, Decrease of 1% | $ (6) |
Pension Plans and Other Post-91
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1,493 | $ 1,721 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 572 | 578 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 825 | 1,120 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 96 | 23 | $ 25 |
Cash and Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 67 | 72 | |
Cash and Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 67 | 72 | |
Asset Backed Notes [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 146 | 180 | |
Asset Backed Notes [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 136 | 165 | |
Asset Backed Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 10 | 15 | 17 |
Canadian Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 141 | 93 | |
Canadian Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 141 | 93 | |
Canadian Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 3 | 4 | |
Canadian Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 2 | ||
Canadian Corporate Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | 4 | |
Bond Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 466 | 691 | |
Bond Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 466 | 691 | |
Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 96 | 116 | |
Canadian Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 96 | 116 | |
U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 37 | 42 | |
U.S. Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 37 | 42 | |
International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 229 | 255 | |
International Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 229 | 255 | |
U.S. Stock Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 218 | 256 | |
U.S. Stock Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 218 | 256 | |
Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 86 | 8 | |
Insurance Contracts | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 86 | 8 | $ 8 |
Derivative Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 4 | 4 | |
Derivative Contracts [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 4 | $ 4 |
Pension Plans and Other Post-92
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1,493 | $ 1,721 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,493 | 1,721 | $ 1,709 |
Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 96 | 116 | |
Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 86 | 8 | |
Insurance Contracts | Minimum Guarantee Rate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 8 | ||
Insurance Contracts | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 78 | ||
Active Segregated Global Equity Portfolio [Member] | Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 4 | $ 6 |
Pension Plans and Other Post-93
Pension Plans and Other Post-Retirement Benefit Plans - Changes in Level 3 Fair Value Measurements of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | $ 1,721 | |
Fair value of assets at end of year | 1,493 | $ 1,721 |
Asset Backed Notes [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 180 | |
Fair value of assets at end of year | 146 | 180 |
Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 8 | |
Fair value of assets at end of year | 86 | 8 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 23 | 25 |
Purchases/(Settlements) | 75 | (13) |
Return on plan assets | 4 | 14 |
Effect of foreign currency exchange rate change | (6) | (3) |
Fair value of assets at end of year | 96 | 23 |
Significant Unobservable Inputs (Level 3) [Member] | Asset Backed Notes [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 15 | 17 |
Purchases/(Settlements) | (4) | (14) |
Return on plan assets | 1 | 13 |
Effect of foreign currency exchange rate change | (2) | (1) |
Fair value of assets at end of year | 10 | 15 |
Significant Unobservable Inputs (Level 3) [Member] | Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 8 | 8 |
Purchases/(Settlements) | 79 | 1 |
Return on plan assets | 3 | 1 |
Effect of foreign currency exchange rate change | (4) | (2) |
Fair value of assets at end of year | $ 86 | $ 8 |
Pension Plans and Other Post-94
Pension Plans and Other Post-Retirement Benefit Plans - Changes in Level 3 Fair Value Measurements of Plan Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 1,493 | $ 1,721 |
ABN Montreal Accord [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 4 | $ 6 |
Pension Plans and Other Post-95
Pension Plans and Other Post-Retirement Benefit Plans - Estimated Future Benefit Payments from Plans (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 96 |
2,017 | 93 |
2,018 | 96 |
2,019 | 97 |
2,020 | 97 |
2021-2025 | 497 |
Other Post-Retirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 4 |
2,017 | 4 |
2,018 | 4 |
2,019 | 5 |
2,020 | 5 |
2021-2025 | $ 23 |
Other Operating (Income) Loss96
Other Operating (Income) Loss, Net - Components of Other Operating (Income) Loss, Net (Detail) CAD in Millions, $ in Millions | Jun. 24, 2013USD ($) | Jun. 24, 2013CAD | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Other Income And Expenses [Abstract] | |||||||||||
Alternative fuel tax credits | $ (18) | $ (18) | $ 26 | ||||||||
Loss on sale of business | [1] | 20 | |||||||||
Net gain on sale of property, plant and equipment | $ (10) | CAD (12) | $ (15) | [2] | (16) | [2] | |||||
Bad debt expense | 5 | 2 | 2 | ||||||||
Environmental provision | 4 | 1 | (1) | ||||||||
Foreign exchange gain | (3) | (1) | (9) | ||||||||
Weston litigation | $ 49 | CAD 50 | 49 | [3] | |||||||
Proceeds from insurance claims on machinery and equipment | (11) | ||||||||||
Other | 4 | (2) | 1 | ||||||||
Other operating (income) loss, net | $ (5) | $ (29) | $ 72 | ||||||||
[1] | On July 31, 2013, the Company completed the sale of its Ariva U.S. business. The Company recorded a loss on sale of business of $20 million in 2013. | ||||||||||
[2] | Effective June 23, 2015, Domtar finalized the previously announced sale of its Gatineau properties. Payment of $26 million (CDN $32 million) was received on July 3, 2015. As a result, the Company recorded a gain on sale of property, plant and equipment of $10 million (CDN $12 million) in the second quarter of 2015.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. In November 2013, the Company sold its land in Cornwall, Ontario and recorded a gain on the sale of approximately $6 million. | ||||||||||
[3] | On June 24, 2013, the parties agreed to settle the litigation for a payment by Domtar of $49 million (CDN $50 million) |
Other Operating (Income) Loss97
Other Operating (Income) Loss, Net - Components of Other Operating (Income) Loss, Net (Parenthetical) (Detail) CAD in Millions, $ in Millions | Jul. 03, 2015USD ($) | Jul. 03, 2015CAD | Jun. 24, 2013USD ($) | Jun. 24, 2013CAD | Mar. 22, 2013USD ($) | Nov. 30, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Other Operating Income Loss [Line Items] | ||||||||||||||
Gain (Loss) on sale of businesses | [1] | $ (20) | ||||||||||||
Cash received from sale of properties | $ 26 | CAD 32 | $ 36 | $ 1 | 61 | |||||||||
Net gain on sale of property, plant and equipment | $ 10 | CAD 12 | $ 15 | [2] | 16 | [2] | ||||||||
Litigation settlement paid | $ 49 | CAD 50 | 49 | [3] | ||||||||||
Ariva U.S. [Member] | ||||||||||||||
Other Operating Income Loss [Line Items] | ||||||||||||||
Gain (Loss) on sale of businesses | $ (20) | |||||||||||||
Pulp and paper mill in Port Edwards, Wisconsin | ||||||||||||||
Other Operating Income Loss [Line Items] | ||||||||||||||
Gain (Loss) on sale of businesses | $ 10 | $ 6 | ||||||||||||
Cash received from sale of properties | 9 | |||||||||||||
Sale of environmental provision | 3 | |||||||||||||
Net book value of assets | $ 2 | |||||||||||||
[1] | On July 31, 2013, the Company completed the sale of its Ariva U.S. business. The Company recorded a loss on sale of business of $20 million in 2013. | |||||||||||||
[2] | Effective June 23, 2015, Domtar finalized the previously announced sale of its Gatineau properties. Payment of $26 million (CDN $32 million) was received on July 3, 2015. As a result, the Company recorded a gain on sale of property, plant and equipment of $10 million (CDN $12 million) in the second quarter of 2015.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. In November 2013, the Company sold its land in Cornwall, Ontario and recorded a gain on the sale of approximately $6 million. | |||||||||||||
[3] | On June 24, 2013, the parties agreed to settle the litigation for a payment by Domtar of $49 million (CDN $50 million) |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Banking And Thrift Interest [Abstract] | |||
Interest on long-term debt | $ 82 | $ 95 | $ 81 |
Premium paid on repurchase of long-term debt | 40 | 2 | |
Reversal of fair value (increment) decrement on debentures | (1) | 1 | |
Receivables securitization | 1 | 1 | 1 |
Interest on withdrawal from multiemployer plans | 4 | 3 | |
Amortization of debt issue costs and other | 6 | 4 | 4 |
Interest expense net | $ 132 | $ 103 | $ 89 |
Interest Expense, Net - Compo99
Interest Expense, Net - Components of Interest Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Banking And Thrift Interest [Abstract] | |||
Capitalized interest expense | $ 3 | $ 3 | $ 3 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. earnings | $ 26 | $ 86 | $ 37 | ||||||||
Foreign earnings | 130 | 175 | 35 | ||||||||
Earnings before income taxes and equity loss | $ 77 | $ (3) | $ 37 | $ 45 | $ 59 | $ 95 | $ 53 | $ 54 | $ 156 | $ 261 | $ 72 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State, Current | $ 61 | $ 20 | $ (13) |
U.S. Federal and State, Deferred | (78) | (213) | (22) |
Foreign, Current | 9 | 11 | 1 |
Foreign, Deferred | 22 | 12 | 14 |
Income tax expense (benefit) | $ 14 | $ (170) | $ (20) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2013 | Dec. 31, 2012 | Sep. 01, 2011 | |
Income Taxes [Line Items] | |||||||
Statutory income tax rate | 35.00% | 35.00% | 35.00% | ||||
Tax credit recorded for research and experimentation | $ 16,000,000 | $ 18,000,000 | |||||
Uncertain tax positions | 3,000,000 | 3,000,000 | $ 3,000,000 | ||||
Income tax (benefit) expense | 14,000,000 | (170,000,000) | (20,000,000) | ||||
U.S. manufacturing deduction | 6,000,000 | 9,000,000 | 5,000,000 | ||||
Alternative Fuel Tax Credits | $ (18,000,000) | (18,000,000) | 26,000,000 | ||||
Alternative Fuel Tax Credits ("AFTC") income, tax expense | $ 0 | 0 | |||||
Various tax credit | 16,000,000 | 18,000,000 | 54,000,000 | ||||
Accrued interest on uncertain tax positions | 1,000,000 | 4,000,000 | 5,000,000 | ||||
Operating loss carryforwards | 7,000,000 | ||||||
Valuation allowance | 23,000,000 | 25,000,000 | |||||
Foreign loss carryforwards for valuation allowance | 19,000,000 | ||||||
Impacted tax expenses | (1,000,000) | 7,000,000 | 5,000,000 | ||||
Gross unrecognized tax benefits | 41,000,000 | 48,000,000 | 259,000,000 | $ 254,000,000 | |||
Expires in 2032 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | 1,000,000 | ||||||
Expires in 2017 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | 5,000,000 | ||||||
State Credits [Member] | |||||||
Income Taxes [Line Items] | |||||||
Valuation allowance | $ 4,000,000 | ||||||
Associated Hygienic Products LLC [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | $ 48,000,000 | ||||||
Attends Healthcare Inc. [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | $ 2,000,000 | ||||||
Cellulosic Biofuel Producer Credit [Member] | |||||||
Income Taxes [Line Items] | |||||||
Various tax credit | 54,000,000 | ||||||
Income tax credits before tax | 55,000,000 | ||||||
Income tax credits after-tax | 33,000,000 | ||||||
Reduction In Unrecognized Tax Benefits | $ 8,000,000 | ||||||
Federal [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward expiry year | 2,032 | ||||||
Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforward expiry year | 2,017 | ||||||
US Federal Income Tax Audit [Member] | |||||||
Income Taxes [Line Items] | |||||||
Gross unrecognized tax benefits | 223,000,000 | ||||||
Deferred tax asset | 23,000,000 | ||||||
Income tax benefit after-tax | 200,000,000 | ||||||
Recognition of tax benefits would impact the effective tax rate | 6,000,000 | ||||||
Uncertain tax positions | 194,000,000 | ||||||
Income tax (benefit) expense | $ 7,000,000 | ||||||
Indefinitely Carried Forward [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | $ 89,000,000 | ||||||
Finance Expenditures [Member] | |||||||
Income Taxes [Line Items] | |||||||
Operating loss carryforwards | $ 45,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) to U.S. Federal Statutory Income Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax | $ 55 | $ 91 | $ 25 |
State and local income taxes, net of federal income tax benefit | 1 | 3 | 1 |
Foreign income tax rate differential | (16) | (18) | (6) |
Tax credits and special deductions | (16) | (18) | (54) |
Alternative fuel tax credit (income) expense | (6) | 9 | |
Non-deductible litigation payments | 13 | ||
Tax rate changes | (5) | (16) | (3) |
Uncertain tax positions | 1 | (194) | (3) |
U.S. manufacturing deduction | (6) | (9) | (5) |
Functional currency differences | 1 | (5) | |
Valuation allowance on deferred tax assets | (1) | 7 | 5 |
Other | (5) | (2) | |
Income tax expense (benefit) | $ 14 | $ (170) | $ (20) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Accounting provisions | $ 57 | $ 56 |
Net operating loss carryforwards and other deductions | 48 | 78 |
Pension and other employee future benefit plans | 59 | 61 |
Inventory | 17 | 15 |
Tax credits | 25 | 34 |
Other | 16 | 10 |
Gross deferred tax assets | 222 | 254 |
Valuation allowance | (23) | (25) |
Net deferred tax assets | 199 | 229 |
Property, plant and equipment | (647) | (734) |
Impact of foreign exchange on long-term debt and investments | (6) | (10) |
Intangible assets | (157) | (170) |
Total deferred tax liabilities | (810) | (914) |
Net deferred tax liabilities | (611) | (685) |
Deferred income tax assets | 75 | |
Other assets (Note 15) | 2 | 4 |
Deferred income taxes and other | (613) | (764) |
Total | $ (611) | $ (685) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 48 | $ 259 | $ 254 |
Additions based on tax positions related to current year | 3 | 3 | 3 |
Additions for tax positions of prior years | 2 | 10 | 9 |
Reductions for tax positions of prior years | (1) | (10) | |
Reductions related to settlements with taxing authorities | (4) | (223) | (2) |
Expirations of statutes of limitations | (7) | (4) | |
Interest | 1 | 4 | 5 |
Foreign exchange impact | (1) | (1) | |
Balance at end of year | $ 41 | $ 48 | $ 259 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 432 | $ 387 |
Raw materials | 130 | 123 |
Operating and maintenance supplies | 204 | 204 |
Total inventories | $ 766 | $ 714 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill Roll Forward | ||
Balance at beginning of year | $ 567 | $ 369 |
Effect of foreign currency exchange rate change | (28) | (36) |
Balance at end of year | $ 539 | 567 |
Laboratorios Indas [Member] | ||
Goodwill Roll Forward | ||
Goodwill acquired during period | $ 234 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment test date | October 1, 2015 | ||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Line Items] | ||
Machinery and equipment | $ 7,255 | $ 7,537 |
Buildings and improvements | 975 | 1,005 |
Timberlands | 196 | 243 |
Assets under construction | 224 | 124 |
Property, plant and equipment, gross | 8,650 | 8,909 |
Less: Allowance for depreciation and amortization | (5,815) | (5,778) |
Net property, plant and equipment | $ 2,835 | $ 3,131 |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Range of useful lives | 3 years | |
Minimum [Member] | Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Range of useful lives | 10 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Range of useful lives | 20 years | |
Maximum [Member] | Buildings and Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Range of useful lives | 40 years |
Property, Plant and Equipmen110
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 340 | $ 363 | $ 366 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 398 | $ 420 |
Accumulated amortization | (55) | (39) |
Intangible assets, net | 343 | 381 |
Total, Gross carrying amount | 656 | 700 |
Intangible assets, net of amortization | 601 | 661 |
Trade Names [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 215 | 233 |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 6 | 6 |
Catalog Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | $ 37 | 41 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 40 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 7 | 8 |
Accumulated amortization | (1) | (1) |
Intangible assets, net | 6 | 7 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 354 | 374 |
Accumulated amortization | (46) | (32) |
Intangible assets, net | $ 308 | 342 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 10 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 40 years | |
Technology [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 8 | 8 |
Accumulated amortization | (2) | (2) |
Intangible assets, net | $ 6 | 6 |
Technology [Member] | Minimum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 7 years | |
Technology [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 20 years | |
Non-Compete [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 9 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 1 | 1 |
Intangible assets, net | $ 1 | 1 |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 12 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 28 | 29 |
Accumulated amortization | (6) | (4) |
Intangible assets, net | $ 22 | $ 25 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 19,000,000 | $ 21,000,000 | $ 10,000,000 |
Impairment charges of indefinite-lived intangible assets | $ 0 | $ 0 | $ 0 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2016 | $ 19 |
Amortization expense related to intangible assets, 2017 | 19 |
Amortization expense related to intangible assets, 2018 | 19 |
Amortization expense related to intangible assets, 2019 | 18 |
Amortization expense related to intangible assets, 2020 | $ 18 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset - defined benefit pension plans (Note 7) | $ 113 | $ 121 |
Unamortized debt issue costs | 12 | 14 |
Deferred income tax assets (Note 10) | 2 | 4 |
Asset backed notes | 1 | 10 |
Other | 6 | 7 |
Other assets | $ 134 | $ 156 |
Closure and Restructuring Co115
Closure and Restructuring Costs and Liability - Additional Information (Detail) | Dec. 10, 2014USD ($)Mgt | Oct. 13, 2014Employees | Jul. 31, 2013Employees | Jul. 31, 2013Employee | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012ADMTEmployees |
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Expected withdrawal liability | $ 52,000,000 | $ 58,000,000 | $ 52,000,000 | $ 58,000,000 | |||||||||||||
Closure and restructuring costs | 4,000,000 | 28,000,000 | $ 18,000,000 | ||||||||||||||
Impairment and write-down of property, plant and equipment | 77,000,000 | 4,000,000 | 22,000,000 | ||||||||||||||
Other costs | 2,000,000 | ||||||||||||||||
Pension settlement and withdrawal liability | 19,000,000 | 17,000,000 | |||||||||||||||
Dryden Paper Mill [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Pension settlement and withdrawal liability | 7,000,000 | ||||||||||||||||
Big River Saw Mill [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Pension settlement and withdrawal liability | 6,000,000 | ||||||||||||||||
Pulp and Paper [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Closure and restructuring costs | 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | 3,000,000 | 27,000,000 | 10,000,000 | ||||||||||
Impairment and write-down of property, plant and equipment | $ 5,000,000 | ||||||||||||||||
Other costs | 2,000,000 | ||||||||||||||||
Pension settlement and withdrawal liability | 19,000,000 | 11,000,000 | |||||||||||||||
Provision for closure and restructuring costs | 3,000,000 | 3,000,000 | |||||||||||||||
Attends Europe [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Impairment and write-down of property, plant and equipment | $ 2,000,000 | ||||||||||||||||
Previous and Ongoing Closures [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Closure and restructuring costs | 1,000,000 | $ 3,000,000 | $ 2,000,000 | ||||||||||||||
Ashdown, Arkansas Mill [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Capital project cost of conversion approved | $ 160,000,000 | ||||||||||||||||
Permanent reduction of annual uncoated freesheet production capacity | t | 364,000 | ||||||||||||||||
Accelerated depreciation | 4,000,000 | 77,000,000 | |||||||||||||||
Inventory obsolescence | 3,000,000 | ||||||||||||||||
Ashdown, Arkansas Mill [Member] | 2015 [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Cost of conversion, expected to be invested | $ 60,000,000 | ||||||||||||||||
Contingent Capital Investment | 21,000,000 | ||||||||||||||||
Ashdown, Arkansas Mill [Member] | 2016 [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Cost of conversion, expected to be invested | 100,000,000 | ||||||||||||||||
Contingent Capital Investment | $ 40,000,000 | ||||||||||||||||
Ashdown, Arkansas Mill [Member] | Maximum [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Production capacity of pulp machine | Mg | 516,000 | ||||||||||||||||
Multiemployer Pension Plans [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Expected withdrawal liability | $ 14,000,000 | $ 14,000,000 | $ 1,000,000 | ||||||||||||||
Closure and restructuring costs | $ 3,000,000 | ||||||||||||||||
Provision for the withdrawal liabilities | $ 54,000,000 | $ 54,000,000 | |||||||||||||||
Ariva U.S. [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Impairment and write-down of property, plant and equipment | 5,000,000 | ||||||||||||||||
Sale of business, number of employees | 400 | 400 | |||||||||||||||
Ariva U.S. [Member] | Multiemployer Pension Plans [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Expected withdrawal liability | 11,000,000 | ||||||||||||||||
Indianapolis, Indiana Converting [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Inventory obsolescence | 1,000,000 | ||||||||||||||||
Number of employees reduced | Employees | 60 | ||||||||||||||||
Severance and termination costs | $ 2,000,000 | ||||||||||||||||
Kamloops, British Columbia Pulp Facility [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Accelerated depreciation | 10,000,000 | ||||||||||||||||
Inventory obsolescence | 1,000,000 | ||||||||||||||||
Severance and termination costs | 1,000,000 | $ 1,000,000 | |||||||||||||||
Other costs | $ 2,000,000 | ||||||||||||||||
Kamloops, British Columbia Pulp Facility [Member] | Closure of Paper Machine [Member] | |||||||||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||||||||
Curtailment of manufacturing materials | ADMT | 120,000 | ||||||||||||||||
Number of employees affected due to curtailment | Employees | 125 |
Closure and Restructuring Co116
Closure and Restructuring Costs and Liability - Components of Closure and Restructuring Costs by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | $ 4 | $ 5 | |||||||
Inventory write-down | 4 | ||||||||
Inventory obsolescence reversal | $ (1) | ||||||||
Pension settlement and withdrawal liability | 19 | 17 | |||||||
Other | 2 | ||||||||
Closure and restructuring costs | 4 | 28 | 18 | ||||||
Pulp and Paper [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | 3 | 4 | (2) | ||||||
Inventory write-down | 4 | ||||||||
Inventory obsolescence reversal | (1) | ||||||||
Pension settlement and withdrawal liability | 19 | 11 | |||||||
Other | 2 | ||||||||
Closure and restructuring costs | $ 1 | $ 1 | $ 1 | $ 2 | 3 | 27 | 10 | ||
Personal Care [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | 1 | 1 | 2 | ||||||
Closure and restructuring costs | $ 1 | $ 1 | $ 1 | $ 1 | 2 | ||||
Corporate | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Pension settlement and withdrawal liability | 6 | ||||||||
Closure and restructuring costs | $ 6 |
Closure and Restructuring Co117
Closure and Restructuring Costs and Liability - Activity in Closure and Restructuring Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost And Reserve [Line Items] | |||
Closure and restructuring costs (NOTE 16) | $ 4 | $ 28 | $ 18 |
Closure And Restructuring Liability | |||
Restructuring Cost And Reserve [Line Items] | |||
Balance at beginning of year | 2 | 3 | |
Closure and restructuring costs (NOTE 16) | 4 | 4 | |
Payments | (3) | (5) | |
Reversal | (1) | ||
Acquisition of business | 1 | ||
Balance at end of year | $ 3 | $ 2 | $ 3 |
Trade and Other Payables - Comp
Trade and Other Payables - Components of Trade and Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 350 | $ 374 |
Payroll-related accruals | 160 | 149 |
Accrued interest | 18 | 26 |
Payables on capital projects | 16 | 21 |
Rebate accruals | 66 | 68 |
Liability - pension and other post-retirement benefit plans | 4 | 4 |
Liability - multiemployer plan withdrawal | 2 | 2 |
Provision for environment and other asset retirement obligations | 14 | 16 |
Closure and restructuring costs liability | 3 | 2 |
Derivative financial instruments | 53 | 27 |
Dividends payable | 25 | 24 |
Stock-based compensation - liability awards | 4 | 3 |
Other | 5 | 5 |
Trade and other payables | $ 720 | $ 721 |
Changes in Accumulated Other119
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (268) | $ (65) | |
Other comprehensive (loss) income before reclassifications | (266) | (233) | |
Amounts reclassified from Accumulated other comprehensive loss | 33 | 30 | |
Other comprehensive (loss) income | (233) | (203) | $ 63 |
Ending balance | (501) | (268) | (65) |
Foreign exchange forward contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 7 | 2 | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (15) | ||
Other comprehensive (loss) income before reclassifications | (41) | (23) | |
Amounts reclassified from Accumulated other comprehensive loss | 26 | 8 | |
Other comprehensive (loss) income | (15) | (15) | |
Ending balance | (30) | (15) | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Foreign exchange forward contracts | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 7 | 2 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (192) | (210) | |
Other comprehensive (loss) income before reclassifications | (5) | (4) | |
Amounts reclassified from Accumulated other comprehensive loss | 7 | 22 | |
Other comprehensive (loss) income | 2 | 18 | |
Ending balance | (190) | (192) | (210) |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (13) | (7) | |
Other comprehensive (loss) income before reclassifications | 3 | (6) | |
Other comprehensive (loss) income | 3 | (6) | |
Ending balance | (10) | (13) | (7) |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (48) | 152 | |
Other comprehensive (loss) income before reclassifications | (223) | (200) | |
Other comprehensive (loss) income | (223) | (200) | |
Ending balance | (271) | (48) | $ 152 |
Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (8) | (10) | |
Natural Gas Swap Contracts [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (8) | (10) | |
Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (40) | (15) | |
Currency Options [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (40) | (15) | |
Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (2) | (10) | |
Net (Gain) Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (5) | (4) | |
Net (Gain) Loss [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 3 | (6) | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (223) | (200) | |
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | $ (223) | $ (200) |
Changes in Accumulated Other120
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes and equity loss | $ 156 | $ 261 | $ 72 | ||||||||
Tax benefit | (14) | 170 | 20 | ||||||||
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | 142 | 431 | 91 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings before income taxes and equity loss | 44 | 12 | 8 | ||||||||
Tax benefit | (18) | (4) | (3) | ||||||||
Net earnings | 26 | 8 | 5 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of Sales | 16 | (4) | 4 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options and Forwards [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of Sales | 28 | 16 | 4 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of prior year service cost | 3 | 22 | 17 | ||||||||
Amortization of net actuarial loss | 7 | 9 | 25 | ||||||||
Earnings before income taxes and equity loss | 10 | 31 | 42 | ||||||||
Tax benefit | (3) | (9) | (12) | ||||||||
Net earnings | $ 7 | $ 22 | 30 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Other Postretirement Adjustment [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial loss | 1 | ||||||||||
Earnings before income taxes and equity loss | 1 | ||||||||||
Net earnings | $ 1 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jul. 20, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Revolving Credit Facility | $ 50 | $ 0 | |
Capital lease obligations and other | 10 | 15 | |
Long-term debt | 1,260 | 1,350 | |
Less: Due within one year | 41 | 169 | |
Long-term debt, excluding current maturities | $ 1,219 | 1,181 | |
7.125% Notes [Member] | 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,015 | ||
Par Amount | $ 167 | ||
Unsecured notes | 166 | ||
9.5% Notes [Member] | 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,016 | ||
Par Amount | $ 39 | ||
Unsecured notes | $ 39 | 96 | |
10.75% Notes [Member] | 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,017 | ||
Par Amount | $ 63 | ||
Unsecured notes | $ 63 | 275 | |
4.4% Notes [Member] | 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,022 | ||
Par Amount | $ 300 | ||
Unsecured notes | $ 300 | 300 | |
6.25% Notes [Member] | 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,042 | ||
Par Amount | $ 250 | ||
Unsecured notes | $ 249 | 249 | |
6.75% Notes [Member] | 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,044 | ||
Par Amount | $ 250 | ||
Unsecured notes | $ 249 | $ 249 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,019 | ||
Par Amount | $ 50 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,025 | ||
Par Amount | $ 300 | $ 300 | |
Unsecured notes | $ 300 | ||
Capital Lease Obligations [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,016 | ||
Capital Lease Obligations [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,028 |
Long-Term Debt - Components 122
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2015 | Aug. 15, 2015 | Dec. 31, 2014 |
7.125% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 7.125% | 7.125% | 7.125% |
9.5% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 9.50% | 9.50% | |
10.75% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 10.75% | 10.75% | |
4.4% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 4.40% | 4.40% | |
6.25% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 6.25% | 6.25% | |
6.75% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 6.75% | 6.75% |
Long-Term Debt - Principal Long
Long-Term Debt - Principal Long-Term Debt Repayments, Including Capital Lease Obligations (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2016, Long-term debt | $ 39 |
2017, Long-term debt | 63 |
2019, Long-term debt | 50 |
Thereafter, Long-term debt | 1,100 |
Long-term debt | 1,252 |
Total payments, Long-term debt | 1,252 |
2016, Capital leases and other | 3 |
2017, Capital leases and other | 1 |
2018, Capital leases and other | 1 |
2019, Capital leases and other | 1 |
2020, Capital leases and other | 1 |
Thereafter, Capital leases and other | 7 |
Capital leases and other obligations repayment | 14 |
Less: Amounts representing interest, Capital leases and other | 4 |
Total payments, Capital leases and other | $ 10 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Aug. 20, 2015USD ($) | Jul. 20, 2015USD ($) | Oct. 03, 2014USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015CAD | Aug. 31, 2015USD ($) | Aug. 15, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||||
Debt refinancing costs | $ 42,000,000 | |||||||||||
Premium on extinguishment of debt | $ 2,000,000 | |||||||||||
Interest coverage level | 3 | |||||||||||
Leverage level | 3.75 | |||||||||||
Revolving Credit Facility | $ 50,000,000 | $ 0 | ||||||||||
Letters of credit outstanding | 38,000,000 | 45,000,000 | ||||||||||
Borrowings | 0 | 0 | ||||||||||
Receivables securitization | 1,000,000 | 1,000,000 | $ 1,000,000 | |||||||||
Amended Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amendment in credit agreement | $ 600,000,000 | |||||||||||
Maturity Date for Credit Agreement | Jun. 15, 2017 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, aggregate principal amount | $ 50,000,000 | |||||||||||
Long-term debt, Maturity | 2,019 | |||||||||||
Revolving Credit Amount borrowed | € 200,000,000 | CAD 150,000,000 | ||||||||||
Revolving credit facility, additional borrowing capacity | $ 400,000,000 | |||||||||||
Length of possible increase in maturity, in years | 1 year | |||||||||||
Bank Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Letters of credit outstanding | $ 0 | $ 0 | ||||||||||
Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Revolving Credit Amount borrowed | 113,000 | |||||||||||
Revolving Credit Facility | 150,000 | |||||||||||
Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, aggregate principal amount | $ 300,000,000 | $ 300,000,000 | ||||||||||
Term loan agreement period | 10 years | |||||||||||
Long-term debt, Maturity | 2,025 | |||||||||||
Term loan agreement maturity date | Jul. 20, 2025 | |||||||||||
Term loan agreement covenant description | The Term Loan Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not greater than 3.75 to 1. At December 31, 2015, the Company was in compliance with these financial covenants | |||||||||||
Term Loan [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan agreement covenants, interest coverage ratio | 300.00% | |||||||||||
Term Loan [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan agreement covenants, leverage ratio | 375.00% | |||||||||||
Term Loan [Member] | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 1.875% | |||||||||||
9.5% Notes Due 2016 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redeemed | $ 55,000,000 | |||||||||||
Debt instrument interest rate stated percentage | 9.50% | |||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 59.00% | |||||||||||
10.75% Notes Due 2017 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redeemed | $ 215,000,000 | $ 215,000,000 | ||||||||||
Debt instrument interest rate stated percentage | 10.75% | 10.75% | ||||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 77.00% | |||||||||||
7.125% Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument interest rate stated percentage | 7.125% | 7.125% | 7.125% | 7.125% | 7.125% | |||||||
Debt instrument redemption amount | $ 167,000,000 | |||||||||||
5.375% Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redeemed | $ 71,000,000 | |||||||||||
Debt instrument interest rate stated percentage | 5.375% | |||||||||||
Long-term debt, Maturity | 2,013 | |||||||||||
Premium on extinguishment of debt | $ 2,000,000 | |||||||||||
Additional charges on extinguishment of debt | $ 1,000,000 |
Other Liabilities and Deferr125
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Liability - other post-retirement benefit plans (Note 7) | $ 82 | $ 100 |
Pension liability - defined benefit pension plans (Note 7) | 129 | 123 |
Pension liability - multiemployer plan withdrawal | 52 | 58 |
Provision for environmental and asset retirement obligations (Note 22) | 38 | 44 |
Stock-based compensation - liability awards | 13 | 14 |
Derivative financial instruments | 14 | 15 |
Other | 22 | 24 |
Other liabilities and deferred credits | $ 350 | $ 378 |
Other Liabilities and Deferr126
Other Liabilities and Deferred Credits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Asset Retirement Obligations [Line Items] | |||
Present value of asset retirement obligations | $ 16 | $ 20 | $ 21 |
Undiscounted cash outflows | $ 61 | $ 64 | |
Asset retirement obligation, expected settlement date | Dec. 31, 2055 | ||
Minimum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 5.50% | ||
Maximum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 12.00% |
Other Liabilities and Deferr127
Other Liabilities and Deferred Credits - Domtar's Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other Liabilities Disclosure [Abstract] | ||
Asset retirement obligations, beginning of year | $ 20 | $ 21 |
Revisions to estimated cash flows | (3) | |
Asset retirement obligation payments | (1) | (2) |
Accretion expense | 1 | 2 |
Effect of foreign currency exchange rate change | (1) | (1) |
Asset retirement obligations, end of year | $ 16 | $ 20 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Feb. 23, 2016$ / shares | Jan. 15, 2016USD ($) | Oct. 15, 2015USD ($) | Jul. 15, 2015USD ($) | Apr. 15, 2015USD ($) | Jan. 15, 2015USD ($) | Oct. 15, 2014USD ($) | Jul. 15, 2014USD ($) | Apr. 30, 2014$ / sharesshares | Apr. 15, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2014$ / sharesshares | Sep. 30, 2014$ / shares | Jun. 30, 2014$ / shares | Mar. 31, 2014$ / shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Shareholders' Equity [Line Items] | ||||||||||||||||||||||
Stock split, description | On April 30, 2014, the Company’s Board of Directors approved a 2-for-1 split of its common stock to be effected through a stock dividend. Shareholders of record on June 10, 2014 were entitled to receive one additional share for every share they owned on that date. | |||||||||||||||||||||
Stock split ratio | 2 | 2 | ||||||||||||||||||||
Common stock outstanding | shares | 62,849,936 | 64,010,087 | 62,849,936 | 64,010,087 | 31,857,451 | 62,849,936 | ||||||||||||||||
Dividend per share | $ / shares | $ 0.275 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.275 | $ 0.375 | ||||||||||||
Increase of dividend per share on a pre-split basis | $ / shares | $ 0.20 | |||||||||||||||||||||
Percentage of increase in dividend on a pre-split basis | 36.00% | |||||||||||||||||||||
Dividends paid | $ | $ 25,000,000 | $ 25,000,000 | $ 26,000,000 | $ 24,000,000 | $ 24,000,000 | $ 24,000,000 | $ 18,000,000 | |||||||||||||||
Record date | Jan. 4, 2016 | Oct. 2, 2015 | Jul. 2, 2015 | Apr. 2, 2015 | Jan. 2, 2015 | Oct. 2, 2014 | Jul. 2, 2014 | Mar. 14, 2014 | ||||||||||||||
Payment date | Jan. 15, 2016 | Oct. 15, 2015 | Jul. 15, 2015 | Apr. 15, 2015 | Jan. 15, 2015 | Oct. 15, 2014 | Jul. 15, 2014 | Apr. 15, 2014 | ||||||||||||||
Stock repurchased, shares | shares | 1,210,932 | 996,967 | 5,019,606 | 24,548,912 | ||||||||||||||||||
Stock repurchased, average price | $ / shares | $ 41.40 | $ 38.59 | $ 36.55 | $ 39.42 | ||||||||||||||||||
Stock repurchased, value | $ | $ 50,000,000 | $ 38,000,000 | $ 183,000,000 | $ 968,000,000 | ||||||||||||||||||
Treasury stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Preferred shares authorized to issue | shares | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Preferred shares, outstanding | shares | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Common stock, shares authorized | shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||
Shareholders' Equity [Line Items] | ||||||||||||||||||||||
Stock repurchase program authorized amount | $ | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | |||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||
Shareholders' Equity [Line Items] | ||||||||||||||||||||||
Dividend per share | $ / shares | $ 0.40 | |||||||||||||||||||||
Dividends paid | $ | $ 25,000,000 | |||||||||||||||||||||
Record date | Apr. 4, 2016 | |||||||||||||||||||||
Payment date | Apr. 15, 2016 | |||||||||||||||||||||
Declared date | Feb. 23, 2016 | |||||||||||||||||||||
Stock Split [Member] | ||||||||||||||||||||||
Shareholders' Equity [Line Items] | ||||||||||||||||||||||
Common stock outstanding | shares | 32,500,000 | 32,500,552 | ||||||||||||||||||||
Common stock outstanding | shares | 65,000,000 | 65,000,000 | 65,000,000 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Detail) $ in Millions | Apr. 30, 2014shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Shareholders' Equity [Line Items] | |||
Balance at beginning of year, Number of shares | 64,010,087 | 31,857,451 | |
Treasury stock, Number of shares | (1,160,151) | (909,426) | |
Treasury stock | $ | $ 0 | $ 0 | |
Balance at end of year, Number of shares | 62,849,936 | 64,010,087 | |
Balance at beginning of year | $ | $ 1 | ||
Balance at end of year | $ | $ 1 | $ 1 | |
Stock split ratio | 2 | 2 | |
Conversion of Exchangeable Shares [Member] | |||
Shareholders' Equity [Line Items] | |||
Shares issued, Number of shares | 561,510 | ||
Stock Split [Member] | |||
Shareholders' Equity [Line Items] | |||
Shares issued, Number of shares | 32,500,000 | 32,500,552 | |
Balance at end of year, Number of shares | 65,000,000 | ||
Shares issued | $ | $ 1 |
Shareholders' Equity - Chang130
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Parenthetical) (Detail) - shares | 12 Months Ended | 67 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||||
Treasury stock, shares repurchased | 1,210,932 | 996,967 | 5,019,606 | 24,548,912 |
Treasury stock issues in conjunction with exercise of stock-based compensation awards | 50,781 | 87,541 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2014Affiliate | Dec. 31, 2015USD ($)State | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€)State | |
Commitments And Contingencies [Line Items] | ||||||
Capital expenditures for environmental matters | $ 7,000,000 | $ 14,000,000 | $ 4,000,000 | |||
Number of affiliated companies acquired | Affiliate | 2 | |||||
Loss Contingency Maximum Potential Fines Liability Percentage Based On Consolidated Sales | 10.00% | 10.00% | ||||
Retained Purchase Price | $ 3,000,000 | € 3 | ||||
Bank guarantees | 10,000,000 | 9 | ||||
Additional insurance coverage purchased | 31,000,000 | € 28.5 | ||||
Insurance deductible amount | 13,000,000 | € 12 | ||||
Total recoveries from retained purchase price, bank guarantees and insurance coverage | 44,000,000 | € 40.5 | ||||
Operating lease expense | $ 28,000,000 | 32,000,000 | 32,000,000 | |||
Minimum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of states involved in litigation | State | 45 | 45 | ||||
Loss Contingency Potential Fines Liability Percentage Based On Total Turnover Under Investigation | 0.10% | 0.10% | ||||
Minimum [Member] | Indas and Affiliates [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Penalties for violations of competition laws | € | € 0 | |||||
Maximum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of states involved in litigation | State | 50 | 50 | ||||
Loss Contingency Potential Fines Liability Percentage Based On Total Turnover Under Investigation | 6.50% | 6.50% | ||||
Maximum [Member] | Indas and Affiliates [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Penalties for violations of competition laws | $ 23,000,000 | € 21 | ||||
Environmental Matters | ||||||
Commitments And Contingencies [Line Items] | ||||||
Operating expenses for environmental matters | 70,000,000 | $ 68,000,000 | $ 69,000,000 | |||
Spanish Competition Investigation [Member] | Maximum [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Provision for liability | 1,000,000 | |||||
Indemnification Guarantee [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Provision for liability | $ 0 |
Commitments and Contingencie132
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of year | $ 60 | $ 67 |
Additions | 1 | 2 |
Environmental spending | (3) | (8) |
Accretion | 1 | 2 |
Effect of foreign currency exchange rate change | (7) | (3) |
Balance at end of year | $ 52 | $ 60 |
Commitments and Contingencie133
Commitments and Contingencies - Anticipated Undiscounted Payments (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Environmental Remediation Obligations [Abstract] | |
2,016 | $ 14 |
2,017 | 11 |
2,018 | 3 |
2,019 | 1 |
2,020 | 1 |
Thereafter | 66 |
Total | $ 96 |
Commitments and Contingencie134
Commitments and Contingencies - Minimum Future Payments under Operating Leases and Other Commercial Commitments (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Environmental Remediation Obligations [Abstract] | |
Operating leases, 2016 | $ 22 |
Operating leases, 2017 | 19 |
Operating leases, 2018 | 17 |
Operating leases, 2019 | 15 |
Operating leases, 2020 | 13 |
Thereafter | 45 |
Operating leases, Total | 131 |
Other commercial commitments, 2016 | 78 |
Other commercial commitments, 2017 | 10 |
Other commercial commitments, 2018 | 2 |
Other commercial commitments, 2019 | 1 |
Other commercial commitments, 2020 | 0 |
Other commercial commitments, Thereafter | 0 |
Other commercial commitments, Total | $ 91 |
Derivatives and Hedging Acti135
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014USD ($)Customer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($)Customer | Dec. 31, 2013USD ($) | Aug. 31, 2015USD ($) | Aug. 20, 2015USD ($) | |
Derivative [Line Items] | ||||||
Number of major customers | Customer | 1 | 1 | 1 | |||
Receivables from major customers | $ 64,000,000 | $ 78,000,000 | $ 64,000,000 | |||
Canadian Subsidiary [Member] | Canadian Dollars [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 24 months | |||||
U S Subsidiaries [Member] | Euros [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 12 months | |||||
U S Subsidiaries [Member] | British Pounds [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 12 months | |||||
European Subsidiaries [Member] | US Dollars [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 12 months | |||||
European Subsidiaries [Member] | Swedish Krona [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 12 months | |||||
Forecasted Natural Gas and Oil Purchases [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 60 months | |||||
Natural Gas Swap Contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Earnings hedge ineffectiveness | $ 0 | 0 | $ 0 | |||
Loss recognized in Other comprehensive (loss) on derivatives (effective portion) | $ 17,000,000 | |||||
Recognition of OCI in Cost of sales | 60 months | |||||
Currency Derivatives [Member] | ||||||
Derivative [Line Items] | ||||||
Earnings hedge ineffectiveness | $ 0 | $ 0 | $ 0 | |||
Loss recognized in Other comprehensive (loss) on derivatives (effective portion) | $ 40,000,000 | |||||
Recognition of OCI in Cost of sales | 24 months | |||||
10.75% Notes Due 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Debt instrument interest rate stated percentage | 10.75% | 10.75% | ||||
Debt instrument redeemed | $ 215,000,000 | $ 215,000,000 | ||||
Foreign Currency Investment [Member] | ||||||
Derivative [Line Items] | ||||||
Length of time current hedges cover | 3 years | |||||
2017 [Member] | Designated as Hedging [Member] | 10.75% Notes Due 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative swap interest rate description | $100 million notional 2.5 year fixed to floating interest rate swap to receive fixed (1.0225%) and pay the 3 month LIBOR | |||||
2017 [Member] | Designated as Hedging [Member] | 10.75% Notes Due 2017 [Member] | Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative swap fixed interest rate | 1.0225% | 1.0225% | ||||
2017 [Member] | Interest Rate Swap [Member] | Designated as Hedging [Member] | 10.75% Notes Due 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | $ 100,000,000 | $ 100,000,000 | ||||
Derivative contract, term | 2 years 6 months | |||||
Debt instrument interest rate stated percentage | 10.75% | 10.75% | ||||
Debt maturity year | 2017-06 | |||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||||||
Derivative [Line Items] | ||||||
Maximum percentage of receivables a single customer represents | 12.00% | 10.00% |
Derivatives and Hedging Acti136
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) - Natural Gas Derivative Contracts [Member] $ in Millions | Dec. 31, 2015USD ($)MMBTU |
2016 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 13,045,000 |
Notional contractual value under derivative contracts | $ | $ 45 |
Percentage of forecasted purchases under derivative contracts | 58.00% |
2017 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 5,010,000 |
Notional contractual value under derivative contracts | $ | $ 17 |
Percentage of forecasted purchases under derivative contracts | 22.00% |
2018 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 3,375,000 |
Notional contractual value under derivative contracts | $ | $ 10 |
Percentage of forecasted purchases under derivative contracts | 15.00% |
2019 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 1,685,000 |
Notional contractual value under derivative contracts | $ | $ 5 |
Percentage of forecasted purchases under derivative contracts | 7.00% |
2020 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 1,690,000 |
Notional contractual value under derivative contracts | $ | $ 6 |
Percentage of forecasted purchases under derivative contracts | 8.00% |
Derivatives and Hedging Acti137
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member] € in Millions, CAD in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015CAD | |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2016 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | CAD 462 | ||
Percentage of forecasted net exposures under contracts | 60.00% | ||
Currency exposure hedged, Average Protection rate | 1.2026 | 1.2026 | 1.2026 |
Currency exposure hedged, Average Obligation rate | 1.2453 | 1.2453 | 1.2453 |
Pulp and Paper [Member] | Euro/USD Denominated Notional Contractual Value For 2016 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | € | € 38 | ||
Percentage of forecasted net exposures under contracts | 75.00% | ||
Currency exposure hedged, Average Protection rate | 1.1266 | 1.1266 | 1.1266 |
Currency exposure hedged, Average Obligation rate | 1.1266 | 1.1266 | 1.1266 |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2017 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | CAD 195 | ||
Percentage of forecasted net exposures under contracts | 25.00% | ||
Currency exposure hedged, Average Protection rate | 1.2510 | 1.2510 | 1.2510 |
Currency exposure hedged, Average Obligation rate | 1.3152 | 1.3152 | 1.3152 |
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2016 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | $ | $ 56 | ||
Percentage of forecasted net exposures under contracts | 78.00% | ||
Currency exposure hedged, Average Protection rate | 1.1364 | 1.1364 | 1.1364 |
Currency exposure hedged, Average Obligation rate | 1.1364 | 1.1364 | 1.1364 |
Derivatives and Hedging Acti138
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Total Assets | $ 10 | $ 10 |
Total Liabilities | 67 | 42 |
Asset backed notes ("ABN") | 1 | 10 |
Long-term debt | 1,261 | 1,475 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Asset backed notes ("ABN") | 1 | 11 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 7 | 7 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 3 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 39 | 14 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 10 | 9 |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 14 | 13 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 4 | 6 |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 10 | 10 |
Total Liabilities | 67 | 42 |
Long-term debt | 1,261 | 1,475 |
Significant Observable Inputs (Level 2) [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Asset backed notes ("ABN") | 10 | |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 7 | 7 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 3 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 39 | 14 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 10 | 9 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 14 | 13 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 4 | 6 |
Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Asset backed notes ("ABN") | $ 1 | $ 1 |
Derivatives and Hedging Acti139
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 1,260 | $ 1,350 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 1,379 | $ 1,405 | $ 1,385 | $ 1,394 | $ 5,264 | $ 5,563 | $ 5,391 | |
Depreciation and amortization and impairment and write-down of property, plant and equipment and intangible assets | 359 | 384 | 376 | |||||||||
Impairment and write-down of property, plant and equipment | 77 | 4 | 22 | |||||||||
Consolidated depreciation and amortization and impairment and write-down of property, plant and equipment and intangible assets | 436 | 388 | 398 | |||||||||
Consolidated operating income (loss) | 94 | 61 | 62 | 71 | 86 | 120 | 79 | 79 | 288 | 364 | 161 | |
Interest expense, net | 132 | 103 | 89 | |||||||||
Earnings before income taxes and equity loss | 77 | (3) | 37 | 45 | 59 | 95 | 53 | 54 | 156 | 261 | 72 | |
Income tax (benefit) expense | 14 | (170) | (20) | |||||||||
Equity loss, net of taxes | 1 | |||||||||||
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | 142 | 431 | 91 | |
Pulp and Paper [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Impairment and write-down of property, plant and equipment | $ 5 | |||||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 5,327 | 5,602 | 5,409 | |||||||||
Operating Segments [Member] | Pulp and Paper [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 4,458 | 4,674 | 4,843 | |||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment and intangible assets | 297 | 319 | 345 | |||||||||
Impairment and write-down of property, plant and equipment | 77 | 4 | 20 | |||||||||
Consolidated operating income (loss) | 270 | 352 | 244 | |||||||||
Operating Segments [Member] | Personal Care [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 869 | 928 | 566 | |||||||||
Depreciation and amortization and impairment and write-down of property, plant and equipment and intangible assets | 62 | 65 | 31 | |||||||||
Impairment and write-down of property, plant and equipment | 2 | |||||||||||
Consolidated operating income (loss) | 61 | 49 | 40 | |||||||||
Intersegment Sales [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | (63) | (39) | (18) | |||||||||
Corporate [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Consolidated operating income (loss) | $ (43) | $ (37) | $ (123) |
Segment Disclosures - Analys142
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | $ 94 | $ 61 | $ 62 | $ 71 | $ 86 | $ 120 | $ 79 | $ 79 | $ 288 | $ 364 | $ 161 |
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | (43) | (37) | (123) | ||||||||
Pulp and Paper [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | 270 | 352 | 244 | ||||||||
Personal Care [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | $ 61 | 49 | 40 | ||||||||
Scenario, Previously Reported [Member] | Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | (13) | (53) | |||||||||
Scenario, Previously Reported [Member] | Pulp and Paper [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | 323 | 171 | |||||||||
Scenario, Previously Reported [Member] | Personal Care [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | $ 54 | $ 43 | |||||||||
Customer Concentration Risk [Member] | Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total sales represented by Company's largest customers | 10.00% | 9.00% |
Segment Disclosures - Consolida
Segment Disclosures - Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 5,663 | $ 6,185 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 5,489 | 5,878 |
Operating Segments [Member] | Pulp and Paper [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 3,667 | 3,915 |
Operating Segments [Member] | Personal Care [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 1,822 | 1,963 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 174 | $ 307 |
Segment Disclosures - Additions
Segment Disclosures - Additions to Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 284 | $ 252 | $ 244 |
Add: Change in payables on capital projects | 5 | (16) | (2) |
Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows | 289 | 236 | 242 |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 278 | 247 | 238 |
Operating Segments [Member] | Pulp and Paper [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 221 | 161 | 147 |
Operating Segments [Member] | Personal Care [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 57 | 86 | 91 |
Corporate [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 6 | $ 5 | $ 6 |
Segment Disclosures - Geographi
Segment Disclosures - Geographic Information on Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 1,379 | $ 1,405 | $ 1,385 | $ 1,394 | $ 5,264 | $ 5,563 | $ 5,391 |
United States [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 3,776 | 3,910 | 3,992 | ||||||||
Canada [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 492 | 591 | 638 | ||||||||
Europe [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 561 | 659 | 375 | ||||||||
Asia [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 302 | 257 | 281 | ||||||||
Other Foreign Countries [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | $ 133 | $ 146 | $ 105 |
Segment Disclosures - Long-Live
Segment Disclosures - Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 3,975 | $ 4,359 |
United States [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 2,566 | 2,691 |
Canada [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 640 | 823 |
Europe [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 769 | $ 845 |
Supplemental Guarantor Finan147
Supplemental Guarantor Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Domtar (Canada) Paper Company, LLC [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Non-Guarantor Subsidiaries [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Supplemental Guarantor Finan148
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings and Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 1,379 | $ 1,405 | $ 1,385 | $ 1,394 | $ 5,264 | $ 5,563 | $ 5,391 |
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 4,147 | 4,396 | 4,361 | ||||||||
Depreciation and amortization | 359 | 384 | 376 | ||||||||
Selling, general and administrative | 394 | 416 | 381 | ||||||||
Impairment and write-down of property, plant and equipment | 77 | 4 | 22 | ||||||||
Closure and restructuring costs | 4 | 28 | 18 | ||||||||
Other operating loss (income), net | (5) | (29) | 72 | ||||||||
Operating expenses | 4,976 | 5,199 | 5,230 | ||||||||
Operating income | 94 | 61 | 62 | 71 | 86 | 120 | 79 | 79 | 288 | 364 | 161 |
Interest expense, net | 132 | 103 | 89 | ||||||||
Earnings before income taxes and equity loss | 77 | (3) | 37 | 45 | 59 | 95 | 53 | 54 | 156 | 261 | 72 |
Income tax (benefit) expense | 14 | (170) | (20) | ||||||||
Equity loss, net of taxes | 1 | ||||||||||
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | 142 | 431 | 91 |
Other comprehensive income (loss) | (233) | (203) | 63 | ||||||||
Comprehensive (loss) income | (91) | 228 | 154 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | (1,152) | (1,127) | (1,056) | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | (1,152) | (1,127) | (1,056) | ||||||||
Operating expenses | (1,152) | (1,127) | (1,056) | ||||||||
Share in earnings of equity accounted investees | (338) | (679) | (197) | ||||||||
Net earnings | (338) | (679) | (197) | ||||||||
Other comprehensive income (loss) | 450 | 362 | |||||||||
Comprehensive (loss) income | 112 | (317) | (197) | ||||||||
Parent [Member] | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 11 | 29 | 26 | ||||||||
Other operating loss (income), net | 5 | 2 | (3) | ||||||||
Operating expenses | 16 | 31 | 23 | ||||||||
Operating income | (16) | (31) | (23) | ||||||||
Interest expense, net | 131 | 101 | 96 | ||||||||
Earnings before income taxes and equity loss | (147) | (132) | (119) | ||||||||
Income tax (benefit) expense | (63) | (51) | (54) | ||||||||
Share in earnings of equity accounted investees | 226 | 512 | 156 | ||||||||
Net earnings | 142 | 431 | 91 | ||||||||
Other comprehensive income (loss) | (233) | (203) | 4 | ||||||||
Comprehensive (loss) income | (91) | 228 | 95 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 4,346 | 4,440 | 4,461 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 3,726 | 3,762 | 3,752 | ||||||||
Depreciation and amortization | 256 | 264 | 266 | ||||||||
Selling, general and administrative | 105 | 209 | 245 | ||||||||
Impairment and write-down of property, plant and equipment | 77 | 4 | 10 | ||||||||
Closure and restructuring costs | 3 | 7 | 6 | ||||||||
Other operating loss (income), net | (3) | (26) | 40 | ||||||||
Operating expenses | 4,164 | 4,220 | 4,319 | ||||||||
Operating income | 182 | 220 | 142 | ||||||||
Interest expense, net | 30 | 26 | 20 | ||||||||
Earnings before income taxes and equity loss | 152 | 194 | 122 | ||||||||
Income tax (benefit) expense | 38 | (151) | 7 | ||||||||
Share in earnings of equity accounted investees | 112 | 167 | 41 | ||||||||
Net earnings | 226 | 512 | 156 | ||||||||
Other comprehensive income (loss) | (235) | (194) | 26 | ||||||||
Comprehensive (loss) income | (9) | 318 | 182 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 2,070 | 2,250 | 1,986 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 1,573 | 1,761 | 1,665 | ||||||||
Depreciation and amortization | 103 | 120 | 110 | ||||||||
Selling, general and administrative | 278 | 178 | 110 | ||||||||
Impairment and write-down of property, plant and equipment | 12 | ||||||||||
Closure and restructuring costs | 1 | 21 | 12 | ||||||||
Other operating loss (income), net | (7) | (5) | 35 | ||||||||
Operating expenses | 1,948 | 2,075 | 1,944 | ||||||||
Operating income | 122 | 175 | 42 | ||||||||
Interest expense, net | (29) | (24) | (27) | ||||||||
Earnings before income taxes and equity loss | 151 | 199 | 69 | ||||||||
Income tax (benefit) expense | 39 | 32 | 27 | ||||||||
Equity loss, net of taxes | 1 | ||||||||||
Net earnings | 112 | 167 | 41 | ||||||||
Other comprehensive income (loss) | (215) | (168) | 33 | ||||||||
Comprehensive (loss) income | $ (103) | $ (1) | $ 74 |
Supplemental Guarantor Finan149
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets | ||||
Cash and cash equivalents | $ 126 | $ 174 | $ 655 | $ 661 |
Receivables | 627 | 628 | ||
Inventories | 766 | 714 | ||
Prepaid expenses | 21 | 25 | ||
Income and other taxes receivable | 14 | 54 | ||
Total current assets | 1,554 | 1,670 | ||
Deferred income taxes | 75 | |||
Net property, plant and equipment | 2,835 | 3,131 | ||
Goodwill | 539 | 567 | 369 | |
Intangible assets, net of amortization | 601 | 661 | ||
Other assets | 134 | 156 | ||
Total assets | 5,663 | 6,185 | ||
Current liabilities | ||||
Trade and other payables | 720 | 721 | ||
Income and other taxes payable | 27 | 26 | ||
Long-term debt due within one year | 41 | 169 | ||
Total current liabilities | 788 | 926 | ||
Bank indebtedness | 10 | |||
Long-term debt | 1,219 | 1,181 | ||
Deferred income taxes and other | 654 | 810 | ||
Other liabilities and deferred credits | 350 | 378 | ||
Shareholders' equity | 2,652 | 2,890 | 2,782 | 2,877 |
Total liabilities and shareholders' equity | 5,663 | 6,185 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Income and other taxes receivable | (10) | |||
Intercompany accounts | (5,556) | (5,603) | ||
Total current assets | (5,566) | (5,603) | ||
Investments in affiliates | (10,055) | (10,168) | ||
Intercompany long-term advances | (715) | (520) | ||
Other assets | (15) | (21) | ||
Total assets | (16,351) | (16,312) | ||
Current liabilities | ||||
Intercompany accounts | (5,556) | (5,603) | ||
Income and other taxes payable | (10) | |||
Total current liabilities | (5,566) | (5,603) | ||
Intercompany long-term loans | (715) | (520) | ||
Deferred income taxes and other | (12) | (21) | ||
Other liabilities and deferred credits | (3) | |||
Shareholders' equity | (10,055) | (10,168) | ||
Total liabilities and shareholders' equity | (16,351) | (16,312) | ||
Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 49 | 79 | 439 | 275 |
Prepaid expenses | 8 | 11 | ||
Income and other taxes receivable | 37 | |||
Intercompany accounts | 764 | 977 | ||
Total current assets | 821 | 1,104 | ||
Investments in affiliates | 8,005 | 8,015 | ||
Intercompany long-term advances | 6 | 6 | ||
Other assets | 24 | 31 | ||
Total assets | 8,856 | 9,156 | ||
Current liabilities | ||||
Trade and other payables | 61 | 69 | ||
Intercompany accounts | 4,685 | 4,582 | ||
Income and other taxes payable | 4 | 2 | ||
Long-term debt due within one year | 38 | 166 | ||
Total current liabilities | 4,788 | 4,819 | ||
Long-term debt | 910 | 1,168 | ||
Intercompany long-term loans | 490 | 260 | ||
Other liabilities and deferred credits | 16 | 19 | ||
Shareholders' equity | 2,652 | 2,890 | ||
Total liabilities and shareholders' equity | 8,856 | 9,156 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 2 | 18 | 22 | 72 |
Receivables | 384 | 370 | ||
Inventories | 556 | 495 | ||
Prepaid expenses | 7 | 7 | ||
Income and other taxes receivable | 13 | |||
Intercompany accounts | 4,776 | 4,613 | ||
Total current assets | 5,738 | 5,543 | ||
Deferred income taxes | 40 | |||
Net property, plant and equipment | 2,018 | 2,134 | ||
Goodwill | 296 | 296 | ||
Intangible assets, net of amortization | 254 | 263 | ||
Investments in affiliates | 2,050 | 2,153 | ||
Intercompany long-term advances | 88 | 80 | ||
Other assets | 10 | 11 | ||
Total assets | 10,454 | 10,480 | ||
Current liabilities | ||||
Trade and other payables | 456 | 409 | ||
Intercompany accounts | 722 | 925 | ||
Income and other taxes payable | 24 | 9 | ||
Long-term debt due within one year | 1 | 2 | ||
Total current liabilities | 1,203 | 1,355 | ||
Bank indebtedness | 10 | |||
Long-term debt | 301 | 2 | ||
Intercompany long-term loans | 225 | 260 | ||
Deferred income taxes and other | 535 | 675 | ||
Other liabilities and deferred credits | 185 | 173 | ||
Shareholders' equity | 8,005 | 8,015 | ||
Total liabilities and shareholders' equity | 10,454 | 10,480 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 75 | 77 | $ 194 | $ 314 |
Receivables | 243 | 258 | ||
Inventories | 210 | 219 | ||
Prepaid expenses | 6 | 7 | ||
Income and other taxes receivable | 11 | 17 | ||
Intercompany accounts | 16 | 13 | ||
Total current assets | 561 | 626 | ||
Deferred income taxes | 35 | |||
Net property, plant and equipment | 817 | 997 | ||
Goodwill | 243 | 271 | ||
Intangible assets, net of amortization | 347 | 398 | ||
Intercompany long-term advances | 621 | 434 | ||
Other assets | 115 | 135 | ||
Total assets | 2,704 | 2,861 | ||
Current liabilities | ||||
Trade and other payables | 203 | 243 | ||
Intercompany accounts | 149 | 96 | ||
Income and other taxes payable | 9 | 15 | ||
Long-term debt due within one year | 2 | 1 | ||
Total current liabilities | 363 | 355 | ||
Long-term debt | 8 | 11 | ||
Deferred income taxes and other | 131 | 156 | ||
Other liabilities and deferred credits | 152 | 186 | ||
Shareholders' equity | 2,050 | 2,153 | ||
Total liabilities and shareholders' equity | $ 2,704 | $ 2,861 |
Supplemental Guarantor Finan150
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) CAD in Millions, $ in Millions | Jul. 03, 2015USD ($) | Jul. 03, 2015CAD | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Operating activities | |||||||||||||
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | $ 142 | $ 431 | $ 91 | ||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 311 | 203 | 320 | ||||||||||
Cash flow provided from operating activities | 453 | 634 | 411 | ||||||||||
Investing activities | |||||||||||||
Additions to property, plant and equipment | (289) | (236) | (242) | ||||||||||
Proceeds from disposals of property, plant and equipment | $ 26 | CAD 32 | 36 | 1 | 61 | ||||||||
Other | 9 | (5) | (1) | ||||||||||
Cash flow used for investing activities | (244) | (786) | (469) | ||||||||||
Acquisition of business, net of cash acquired | (546) | (287) | |||||||||||
Financing activities | |||||||||||||
Dividend payments | (100) | (84) | (67) | ||||||||||
Stock repurchase | (50) | (38) | (183) | ||||||||||
Net change in bank indebtedness | (11) | (6) | (3) | ||||||||||
Change of revolving bank credit facility | 50 | (160) | 160 | ||||||||||
Issuance of long-term debt | 300 | ||||||||||||
Repayment of long-term debt | (439) | (4) | (102) | ||||||||||
Other | 1 | 5 | |||||||||||
Cash flows (used for) provided from financing activities | (249) | (326) | 54 | ||||||||||
Proceeds from receivables securitization facility | 90 | ||||||||||||
Payments on receivables securitization facility | (129) | 249 | |||||||||||
Net decrease in cash and cash equivalents | (40) | (478) | (4) | ||||||||||
Impact of foreign exchange on cash | (8) | (3) | (2) | ||||||||||
Cash and cash equivalents at beginning of year | 174 | 655 | 174 | 655 | 661 | ||||||||
Cash and cash equivalents at end of year | 126 | 174 | 126 | 174 | 655 | ||||||||
Consolidating Adjustments [Member] | |||||||||||||
Operating activities | |||||||||||||
Net earnings | (338) | (679) | (197) | ||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 338 | 679 | 197 | ||||||||||
Financing activities | |||||||||||||
Increase in long-term advances to related parties | 227 | 292 | 260 | ||||||||||
Decrease in long-term advances to related parties | (227) | (292) | (260) | ||||||||||
Parent [Member] | |||||||||||||
Operating activities | |||||||||||||
Net earnings | 142 | 431 | 91 | ||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 134 | (220) | 134 | ||||||||||
Cash flow provided from operating activities | 276 | 211 | 225 | ||||||||||
Investing activities | |||||||||||||
Proceeds from disposals of property, plant and equipment | 1 | ||||||||||||
Cash flow used for investing activities | 1 | ||||||||||||
Financing activities | |||||||||||||
Dividend payments | (100) | (84) | (67) | ||||||||||
Stock repurchase | (50) | (38) | (183) | ||||||||||
Net change in bank indebtedness | (1) | 1 | |||||||||||
Change of revolving bank credit facility | 50 | (160) | 160 | ||||||||||
Repayment of long-term debt | (436) | (71) | |||||||||||
Increase in long-term advances to related parties | (292) | (150) | |||||||||||
Decrease in long-term advances to related parties | 227 | ||||||||||||
Other | 2 | 4 | |||||||||||
Cash flows (used for) provided from financing activities | (307) | (571) | (61) | ||||||||||
Payments on receivables securitization facility | 249 | ||||||||||||
Net decrease in cash and cash equivalents | (30) | (360) | 164 | ||||||||||
Cash and cash equivalents at beginning of year | 79 | 439 | 79 | 439 | 275 | ||||||||
Cash and cash equivalents at end of year | 49 | 79 | 49 | 79 | 439 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||||
Operating activities | |||||||||||||
Net earnings | 226 | 512 | 156 | ||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (250) | (380) | (52) | ||||||||||
Cash flow provided from operating activities | (24) | 132 | 104 | ||||||||||
Investing activities | |||||||||||||
Additions to property, plant and equipment | (210) | (139) | (153) | ||||||||||
Proceeds from disposals of property, plant and equipment | 7 | 55 | |||||||||||
Cash flow used for investing activities | (203) | (139) | (381) | ||||||||||
Acquisition of business, net of cash acquired | (283) | ||||||||||||
Financing activities | |||||||||||||
Net change in bank indebtedness | (11) | (4) | (5) | ||||||||||
Issuance of long-term debt | 300 | ||||||||||||
Repayment of long-term debt | (2) | (3) | (28) | ||||||||||
Increase in long-term advances to related parties | (75) | ||||||||||||
Decrease in long-term advances to related parties | 10 | 260 | |||||||||||
Other | (1) | ||||||||||||
Cash flows (used for) provided from financing activities | 211 | 3 | 227 | ||||||||||
Net decrease in cash and cash equivalents | (16) | (4) | (50) | ||||||||||
Cash and cash equivalents at beginning of year | 18 | 22 | 18 | 22 | 72 | ||||||||
Cash and cash equivalents at end of year | 2 | 18 | 2 | 18 | 22 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||
Operating activities | |||||||||||||
Net earnings | 112 | 167 | 41 | ||||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 89 | 124 | 41 | ||||||||||
Cash flow provided from operating activities | 201 | 291 | 82 | ||||||||||
Investing activities | |||||||||||||
Additions to property, plant and equipment | (79) | (97) | (89) | ||||||||||
Proceeds from disposals of property, plant and equipment | 28 | 1 | 6 | ||||||||||
Other | 9 | (5) | (1) | ||||||||||
Cash flow used for investing activities | (42) | (647) | (88) | ||||||||||
Acquisition of business, net of cash acquired | (546) | (4) | |||||||||||
Financing activities | |||||||||||||
Net change in bank indebtedness | (1) | 1 | |||||||||||
Repayment of long-term debt | (1) | (1) | (3) | ||||||||||
Increase in long-term advances to related parties | (152) | (110) | |||||||||||
Decrease in long-term advances to related parties | 282 | ||||||||||||
Other | 1 | ||||||||||||
Cash flows (used for) provided from financing activities | (153) | 242 | (112) | ||||||||||
Proceeds from receivables securitization facility | 90 | ||||||||||||
Payments on receivables securitization facility | (129) | ||||||||||||
Net decrease in cash and cash equivalents | 6 | (114) | (118) | ||||||||||
Impact of foreign exchange on cash | (8) | (3) | (2) | ||||||||||
Cash and cash equivalents at beginning of year | $ 77 | $ 194 | 77 | 194 | 314 | ||||||||
Cash and cash equivalents at end of year | $ 75 | $ 77 | $ 75 | $ 77 | $ 194 |
Interim Financial Results - Sch
Interim Financial Results - Schedule of Interim Financial Results (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 1,379 | $ 1,405 | $ 1,385 | $ 1,394 | $ 5,264 | $ 5,563 | $ 5,391 |
Operating income | 94 | 61 | 62 | 71 | 86 | 120 | 79 | 79 | 288 | 364 | 161 |
Earnings (loss) before income taxes | 77 | (3) | 37 | 45 | 59 | 95 | 53 | 54 | 156 | 261 | 72 |
Net earnings | $ 57 | $ 11 | $ 38 | $ 36 | $ 71 | $ 281 | $ 40 | $ 39 | $ 142 | $ 431 | $ 91 |
Basic net earnings per common share | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 1.10 | $ 4.34 | $ 0.62 | $ 0.60 | $ 2.24 | $ 6.65 | $ 1.37 |
Diluted net earnings per common share | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 1.10 | $ 4.33 | $ 0.61 | $ 0.60 | $ 2.24 | $ 6.64 | $ 1.36 |
Interim Financial Results - 152
Interim Financial Results - Schedule of Interim Financial Results (Parenthetical) (Detail) CAD in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Subsequent Event [Line Items] | |||||||||||||
Closure and restructuring costs | $ 4,000,000 | $ 28,000,000 | $ 18,000,000 | ||||||||||
Net gain on sale of property, plant and equipment | $ 10,000,000 | CAD 12 | 15,000,000 | [1] | 16,000,000 | [1] | |||||||
Alternative fuel tax credits | $ (18,000,000) | (18,000,000) | 26,000,000 | ||||||||||
Alternative Fuel Tax Credits ("AFTC") income, tax expense | 0 | 0 | |||||||||||
U.S. Federal Tax Audit [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Recognition of tax benefits would impact the effective tax rate | 204,000,000 | ||||||||||||
Indianapolis, Indiana Converting [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Closure and termination costs | $ 2,000,000 | ||||||||||||
Inventory obsolescence | 1,000,000 | ||||||||||||
Pension Plans [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Settlement loss | 19,000,000 | 13,000,000 | |||||||||||
Ottawa [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Net gain on sale of property, plant and equipment | 14,000,000 | ||||||||||||
Ottawa [Member] | Pension Plans [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Settlement loss | 19,000,000 | ||||||||||||
Ashdown, Arkansas Mill [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Accelerated depreciation | $ 20,000,000 | $ 20,000,000 | 18,000,000 | $ 19,000,000 | 4,000,000 | ||||||||
Inventory obsolescence | $ 3,000,000 | ||||||||||||
Personal Care [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Closure and restructuring costs | 1,000,000 | $ 1,000,000 | 1,000,000 | 1,000,000 | 2,000,000 | ||||||||
Corporate | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Closure and restructuring costs | 6,000,000 | ||||||||||||
Net gain on sale of property, plant and equipment | $ 1,000,000 | ||||||||||||
Pulp and Paper [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Closure and restructuring costs | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 | $ 27,000,000 | $ 10,000,000 | ||||||
[1] | Effective June 23, 2015, Domtar finalized the previously announced sale of its Gatineau properties. Payment of $26 million (CDN $32 million) was received on July 3, 2015. As a result, the Company recorded a gain on sale of property, plant and equipment of $10 million (CDN $12 million) in the second quarter of 2015.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. In November 2013, the Company sold its land in Cornwall, Ontario and recorded a gain on the sale of approximately $6 million. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | $ 6 | $ 4 | $ 4 |
Charged to income | 5 | 2 | 2 |
Deductions from reserve | (5) | (2) | |
Balance at end of year | 6 | 6 | 4 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | 25 | 19 | 14 |
Charged to income | (1) | 7 | 5 |
Deductions from reserve | (1) | (1) | |
Balance at end of year | $ 23 | $ 25 | $ 19 |