Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | 62,588,837 | ||
Entity Public Float | $ 2,191,112,523 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Sales | $ 5,098 | $ 5,264 | $ 5,563 |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 4,035 | 4,147 | 4,396 |
Depreciation and amortization | 348 | 359 | 384 |
Selling, general and administrative | 427 | 394 | 416 |
Impairment of property, plant and equipment (NOTE 4) | 29 | 77 | 4 |
Closure and restructuring costs (NOTE 16) | 32 | 4 | 28 |
Other operating loss (income), net (NOTE 8) | 4 | (5) | (29) |
Operating expenses | 4,875 | 4,976 | 5,199 |
Operating income | 223 | 288 | 364 |
Interest expense, net (NOTE 9) | 66 | 132 | 103 |
Earnings before income taxes | 157 | 156 | 261 |
Income tax expense (benefit) (NOTE 10) | 29 | 14 | (170) |
Net earnings | $ 128 | $ 142 | $ 431 |
Per common share (in dollars) (NOTE 6) | |||
Basic | $ 2.04 | $ 2.24 | $ 6.65 |
Diluted | $ 2.04 | $ 2.24 | $ 6.64 |
Weighted average number of common and exchangeable shares outstanding (millions) | |||
Basic | 62.6 | 63.3 | 64.8 |
Diluted | 62.7 | 63.4 | 64.9 |
Cash dividends per common share | $ 1.63 | $ 1.58 | $ 1.30 |
Net derivative gains (losses) on cash flow hedges | |||
Net gains (losses) arising during the period, net of tax $(15) (2015 - $28; 2014 - $15) | $ 27 | $ (41) | $ (23) |
Less: Reclassification adjustment of losses included in net earnings, net of tax of $(10) (2015 - $(18); 2014 - $(4)) | 14 | 26 | 8 |
Foreign currency translation adjustments | (7) | (223) | (200) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $12 (2015 - $(2); 2014 - $(2)) | (32) | 5 | 12 |
Other comprehensive income (loss) | 2 | (233) | (203) |
Comprehensive income (loss) | $ 130 | $ (91) | $ 228 |
Consolidated Statements of Ear3
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net gains (losses) arising during the period, tax | $ (15) | $ 28 | $ 15 |
Reclassification adjustment of losses included in net earnings, tax | (10) | (18) | (4) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 12 | $ (2) | $ (2) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 125 | $ 126 |
Receivables, less allowances of $7 and $6 | 613 | 627 |
Inventories (NOTE 11) | 759 | 766 |
Prepaid expenses | 40 | 21 |
Income and other taxes receivable | 31 | 14 |
Total current assets | 1,568 | 1,554 |
Property, plant and equipment, net (NOTE 13) | 2,825 | 2,835 |
Goodwill (NOTE 12) | 550 | 539 |
Intangible assets, net (NOTE 14) | 608 | 601 |
Other assets (NOTE 15) | 129 | 125 |
Total assets | 5,680 | 5,654 |
Current liabilities | ||
Bank indebtedness | 12 | |
Trade and other payables (NOTE 17) | 656 | 720 |
Income and other taxes payable | 22 | 27 |
Long-term debt due within one year (NOTE 19) | 63 | 41 |
Total current liabilities | 753 | 788 |
Long-term debt (NOTE 19) | 1,218 | 1,210 |
Deferred income taxes and other (NOTE 10) | 675 | 654 |
Other liabilities and deferred credits (NOTE 20) | 358 | 350 |
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 | 1,963 | 1,966 |
Retained earnings | 1,211 | 1,186 |
Accumulated other comprehensive loss | (499) | (501) |
Total shareholders' equity | 2,676 | 2,652 |
Total liabilities and shareholders' equity | $ 5,680 | $ 5,654 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 7 | $ 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 | 2,412,267 | 2,151,168 |
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, 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 gains (losses) on cash flow hedges: | |||||||
Net gains (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 (losses) 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 gains (losses) on cash flow hedges: | |||||||
Net gains (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 (losses) 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 | ||||||
Stock-based compensation, net of tax | 7 | 7 | |||||
Stock-based compensation, shares | 100,000 | ||||||
Net earnings | 128 | 128 | |||||
Net derivative gains (losses) on cash flow hedges: | |||||||
Net gains (losses) arising during the period, net of tax | 27 | 27 | |||||
Less: Reclassification adjustments for losses included in net earnings, net of tax | 14 | 14 | |||||
Foreign currency translation adjustments | (7) | (7) | |||||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | (32) | (32) | |||||
Stock repurchase | $ (10) | (10) | |||||
Stock repurchase, shares | (304,915) | (300,000) | |||||
Cash dividends declared | $ (103) | (103) | |||||
Balance at Dec. 31, 2016 | $ 2,676 | $ 1 | $ 1,963 | $ 1,211 | $ (499) | ||
Balance, Shares at Dec. 31, 2016 | 62,600,000 |
Consolidated Statement of Shar7
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Net gains (losses) arising during the period, tax | $ (15) | $ 28 | $ 15 |
Reclassification adjustment of losses included in net earnings, tax | (10) | (18) | (4) |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | $ 12 | $ (2) | $ (2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net earnings | $ 128 | $ 142 | $ 431 |
Adjustments to reconcile net earnings to cash flows from operating activities | |||
Depreciation and amortization | 348 | 359 | 384 |
Deferred income taxes and tax uncertainties (NOTE 10) | 9 | (56) | (201) |
Impairment of property, plant and equipment (NOTE 4) | 29 | 77 | 4 |
Net gains on disposals of property, plant and equipment | (15) | ||
Stock-based compensation expense | 7 | 5 | 4 |
Other | (2) | 4 | 3 |
Changes in assets and liabilities, excluding the effect of sale and acquisition of businesses | |||
Receivables | 18 | (22) | 39 |
Inventories | 14 | (84) | (29) |
Prepaid expenses | 5 | 5 | 1 |
Trade and other payables | (51) | (33) | |
Income and other taxes | (18) | 38 | 12 |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (21) | (1) | 16 |
Other assets and other liabilities | (1) | 1 | 3 |
Cash flows from operating activities | 465 | 453 | 634 |
Investing activities | |||
Additions to property, plant and equipment | (347) | (289) | (236) |
Proceeds from disposals of property, plant and equipment and sale of business | 1 | 36 | 1 |
Acquisition of businesses, net of cash acquired (NOTE 3) | (46) | (546) | |
Other | 1 | 9 | (5) |
Cash flows used for investing activities | (391) | (244) | (786) |
Financing activities | |||
Dividend payments | (102) | (100) | (84) |
Stock repurchase | (10) | (50) | (38) |
Net change in bank indebtedness | 12 | (11) | (6) |
Change in revolving credit facility | 50 | (160) | |
Proceeds from receivables securitization facility | 140 | 90 | |
Repayments of receivables securitization facility | (70) | (129) | |
Issuance of long-term debt | 300 | ||
Repayments of long-term debt | (40) | (439) | (4) |
Other | (3) | 1 | 5 |
Cash flows provided from (used for) financing activities | (73) | (249) | (326) |
Net increase (decrease) in cash and cash equivalents | 1 | (40) | (478) |
Impact of foreign exchange on cash | (2) | (8) | (3) |
Cash and cash equivalents at beginning of year | 126 | 174 | 655 |
Cash and cash equivalents at end of year | 125 | 126 | 174 |
Supplemental cash flow information | |||
Interest (including $40 million of redemption premiums in 2015) | 64 | 133 | 92 |
Income taxes | $ 40 | $ 34 | $ 18 |
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, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED 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 also designs, manufactures, markets and distributes a broad line of absorbent hygiene products, as well as infant diapers. BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America 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 environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar 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 using the equity method. 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 Income (Loss) and is partially offset by our hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). At December 31, 2016, the accumulated translation adjustment accounts amounted to $(278) million (2015 – $(271) 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 Income (Loss). 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 impairments, 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, 2016. 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 income (loss) in the Consolidated Statements of Earnings and Comprehensive Income (Loss). 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. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. 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 Income (Loss). 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 Income (Loss). 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 account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $268 million and $288 million at December 31, 2016 and 2015, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded 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 $63 million and $66 million greater at December 31, 2016 and 2015, respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated 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 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 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 expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment 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, a qualitative assessment is performed and 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 approach 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 accuracy 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, 2016 resides in the Personal Care reporting segment. 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, a qualitative assessment is performed and 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 license 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 disclosed under impairment of property, plant and equipment. 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. DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheet as a direct deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). 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 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 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 (net of estimated forfeitures) 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 at the end 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 stock 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 the end of each reporting period, until settlement, using the quoted market value. Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 1,793,095 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 Income (Loss). 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 Income (Loss) 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 income (loss). These amounts are reclassified in the Consolidated Statements of Earnings and Comprehensive Income (Loss) 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 Income (Loss) 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. 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 as 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 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 Statements of Earnings and Comprehensive Income (Loss). 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, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES IMPLEMENTED PRESENTATION OF DEBT ISSUANCE COSTS In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03, “ Simplifying the Presentation of Debt Issuance Costs, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, The Company adopted the new requirements on January 1, 2016 with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheet as at December 31, 2015 was a reduction of $9 million in Other assets and Long-term debt. FUTURE ACCOUNTING CHANGES REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. ASU 2014-09 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. Entities are permitted to adopt the new revenue standard by restating all prior periods under the full retrospective approach following ASC 250 “ Accounting Changes and Error Corrections” The Company has begun its assessment of the impact that the guidance will have on the consolidated financial statements and related disclosures. The Company currently expects to adopt the new revenue standards in its first quarter of 2018 utilizing the modified retrospective transition method. Further, the Company expects to identify similar performance obligations under the new guidance as compared with deliverables previously identified. As a result, the Company expects the timing of its revenue to remain the same. While the Company is still evaluating the impact of adopting the new standard, it does not expect this new guidance to have a material impact on the consolidated financial statements. INVENTORY In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, 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 new guidance to have a material impact on the consolidated financial statements. LEASES In February 2016 Leases, The Company is currently evaluating the impact of this guidance on the consolidated financial statements, including identifying and analyzing all contracts that contain a lease. As a lessee, Domtar’s various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of earnings as expense is incurred. Upon adoption of the new guidance, the Company will be required to record substantially all leases on the Consolidated Balance Sheets as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the Consolidated Statements of Earnings and Comprehensive Income (Loss) could change based on the classification of leases as either operating or financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. SHARE-BASED PAYMENTS In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. DERIVATIVES AND HEDGING In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. CLASSIFICATION OF CASH FLOWS In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows The Company does not expect this new guidance to have a material impact on the consolidated financial statements. GOODWILL IMPAIRMENT In January 2017, the FASB issued ASU No. 2017-04, “ Simplifying the Test for Goodwill Impairment” The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Acquisition of Businesses
Acquisition of Businesses | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition of Businesses | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 3. ACQUISITION OF BUSINESSES Acquisition of Home Delivery Incontinent Supplies Co. On October 1, 2016, Domtar completed the acquisition of 100% of the outstanding shares of Home Delivery Incontinent Supplies Co. (“HDIS”). HDIS is a leading national direct-to-consumer provider of adult incontinence and related products. Based in Olivette, Missouri, HDIS provides customers with high-quality products and a personalized service for all of their incontinence needs. HDIS operates a distribution center in Olivette, Missouri, as well as two retail locations, in Texarkana, Arkansas and Daytona Beach, Florida and has approximately 240 employees. The results of HDIS’s operations are included in the Personal Care reportable segment starting on October 1, 2016. The purchase price was $52 million, net of cash acquired of $3 million and includes a potential earn-out payment of up to $10 million to be settled after the first anniversary of the acquisition. The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which are based on information currently available. The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Receivables $ 4 Inventory 4 Property, plant and equipment 1 Intangible assets Customer relationships (1) 21 Trade names (2) 13 34 Goodwill 17 Deferred income tax assets 2 Total assets 62 Less: Liabilities Trade and other payables 10 Total liabilities 10 Fair value of net assets acquired at the date of acquisition 52 (1) (2) Indefinite useful life. Acquisition of Laboratorios Indas On January 2, 2014, Domtar 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 (as of the date of acquisition). (2) Indefinite useful life. 1 |
Impairment of Property, Plant a
Impairment of Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Property, Plant and Equipment | NOTE 4. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT The Company reviews 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 asset group may not be recoverable. Estimates of undiscounted future cash flows used to test the recoverability of the asset group includes key assumptions related to selling prices, inflation-adjusted cost projections, forecasted exchange rates when applicable and the estimated useful life of the asset group. 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, in 2016 the Company recognized $29 million of accelerated depreciation in Impairment of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income (Loss) (2015 – $77 million; 2014 – $4 million). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 5. STOCK-BASED COMPENSATION OMNIBUS 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 (“DSUs”) and other stock-based awards. The non-employee directors only receive DSUs. 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 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, 2018. Weighted average grant PSUs Number of units date fair value $ 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 Granted 295,504 32.38 Forfeited (28,523 ) 39.81 Cancelled (101,124 ) 51.27 Vested and settled (74,655 ) 35.97 Vested and non-vested at December 31, 2016 517,281 38.93 The fair value of PSUs granted in 2016, 2015 and 2014 was estimated at the grant date using the 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: 2016 2015 2014 Dividend yield 4.740 % 3.220 % 1.980 % Expected volatility 1 year 24 % 34 % 31 % Expected volatility 3 years 30 % 30 % 31 % Risk-free interest rate December 31, 2014 — — 0.499 % Risk-free interest rate December 31, 2015 — 0.732 % 0.447 % Risk-free interest rate December 31, 2016 1.057 % 0.893 % 0.755 % Risk-free interest rate December 31, 2017 0.860 % 1.200 % — Risk-free interest rate December 31, 2018 0.900 % — — At December 31, 2016, of the total vested and non-vested PSUs, 231,071 are expected to be settled in shares and 286,210 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 for non-Management Committee members, upon completing service conditions. The awards cliff vest after a service period of approximately three years. 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 RSUs Number of units date fair value $ 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 Granted/issued 196,786 34.04 Forfeited (17,884 ) 39.69 Vested and settled (107,198 ) 39.12 Non-vested at December 31, 2016 418,670 40.90 At December 31, 2016, of the total non-vested RSUs, 167,280 are expected to be settled in shares and 251,390 will be settled in cash. DEFERRED SHARE UNITS 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 2016, no vested awards were deferred to DSUs (2015 – nil; 2014 – 6,799). Those DSUs can be settled in shares of common stock beginning February 2017. Weighted average grant DSUs Number of units date fair value $ 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 Granted/issued 46,737 37.43 Settled (15,123 ) 39.60 Vested at December 31, 2016 321,074 29.01 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 22, 2019 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 2016, 2015 and 2014 (except for the stock options granted on May 1, 2014) 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: 2016 2015 2014 Dividend yield 3.78 % 3.22 % 2.62 % Expected volatility 30 % 32 % 32 % Risk-free interest rate 1.17 % 1.47 % 1.34 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 33.78 $ 43.42 $ 53.12 The grant date fair value of the non-qualified options granted in 2016 was $5.95 (2015 – $8.96; 2014 – $11.60). 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, 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 Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Granted 114,723 33.78 6.2 — Exercised (37,296 ) 41.11 — — Forfeited/expired (6,502 ) 20.89 — — Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Options exercisable at December 31, 2016 286,011 46.50 3.9 0.1 The Company has no outstanding and exercisable stock appreciation rights at December 31, 2016 (2015 – 672 with a weighted average exercise price of $41.46). The total intrinsic value of options exercised in 2016 was nil (2015 – nil; 2014 – $2 million). Based on the Company’s closing year-end stock price of $39.03 (2015 – $36.95; 2014 – $40.22), the aggregate intrinsic value of options outstanding and options exercisable is $1 million. For the year ended December 31, 2016, stock-based compensation expense recognized in the Company’s results of operations was $16 million (2015 – $10 million; 2014 – $9 million) for all of the outstanding awards. Compensation costs not yet recognized amounted to $17 million (2015 – $16 million; 2014 – $14 million) and will be recognized over the remaining service period of approximately 26 months. The aggregate value of liability awards settled in 2016 was $4 million (2015 – $4 million; 2014 – $12 million). The total fair value of equity awards settled in 2016 was $2 million, representing the fair value at the time of settlement. The fair value at the grant date for these settled equity awards was $3 million. 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 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 Company policy implemented as required by applicable law, regulation or stock exchange rule as may from time to time be in effect. 1 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
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 that was effected through a stock dividend. Shareholders of record on June 10, 2014 received 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, 2016 2015 2014 Net earnings $ 128 $ 142 $ 431 Weighted average number of common and exchangeable shares outstanding (millions) 62.6 63.3 64.8 Effect of dilutive securities (millions) 0.1 0.1 0.1 Weighted average number of diluted common and exchangeable shares outstanding (millions) 62.7 63.4 64.9 Basic net earnings per common share (in dollars) $ 2.04 $ 2.24 $ 6.65 Diluted net earnings per common share (in dollars) $ 2.04 $ 2.24 $ 6.64 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, 2016 2015 2014 Options 410,978 343,581 247,152 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED 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, 2016, the related pension expense was $37 million (2015 – $32 million; 2014 – $28 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 $13 million in 2017 compared to $31 million in 2016 (2015 – $13 million; 2014 – $29 million) to the pension plans. The Company expects to contribute a minimum total amount of $4 million in 2017 compared to $5 million in 2016 to the other post-retirement benefit plans (2015 – $5 million; 2014 – $5 million). CHANGE IN ACCRUED BENEFIT OBLIGATION The following table represents the change in the accrued benefit obligation as of December 31, 2016 and December 31, 2015, the measurement date for each year: December 31, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at beginning of year 1,509 86 1,723 105 Service cost for the year 31 2 34 2 Interest expense 51 4 60 4 Plan participants' contributions 6 — 6 — Actuarial loss (gain) 46 1 (25 ) (5 ) Plan amendments — — 10 — Benefits paid (83 ) — (76 ) — Direct benefit payments (4 ) (5 ) (3 ) (5 ) Settlement (6 ) — (1 ) — Effect of foreign currency exchange rate change 34 2 (219 ) (15 ) Accrued benefit obligation at end of year 1,584 90 1,509 86 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, 2016 December 31, 2015 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,493 1,721 Actual return on plan assets 73 63 Employer contributions 31 13 Plan participants' contributions 6 6 Benefits paid (87 ) (79 ) Settlement (6 ) (1 ) Effect of foreign currency exchange rate change 36 (230 ) Fair value of assets at end of year 1,546 1,493 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 2016: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2016 2015 Fixed income Cash and cash equivalents 0% - 9% 3 % 2 % Bonds 46%-56% 51 % 51 % Insurance contracts 5% 5 % 6 % Equity Canadian Equity 3% - 11% 6 % 6 % U.S. Equity 8% - 18% 13 % 15 % International Equity 17%-27% 22 % 20 % 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, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at end of year (1,584 ) (90 ) (1,509 ) (86 ) Fair value of assets at end of year 1,546 — 1,493 — Funded status (38 ) (90 ) (16 ) (86 ) The funded status includes $48 million of accrued benefit obligation ($46 million at December 31, 2015) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (4 ) — (4 ) Other liabilities and deferred credits (Note 20) (141 ) (86 ) (129 ) (82 ) Other assets (Note 15) 103 — 113 — Net amount recognized in the Consolidated Balance Sheets (38 ) (90 ) (16 ) (86 ) The following table presents the pre-tax amounts included in Other comprehensive income (loss): Year ended Year ended Year ended December 31, 2016 December 31, 2015 December 31, 2014 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service credit — — (10 ) — (1 ) — Amortization of prior year service cost 5 — 3 — 3 — Net (loss) gain (53 ) (2 ) 2 4 (8 ) (8 ) Amortization of net actuarial loss 6 — 7 1 28 — Net amount recognized in other comprehensive (loss) income (pre-tax) (42 ) (2 ) 2 5 22 (8 ) An estimated amount of $13 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 2017. At December 31, 2016, 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 $765 million and $624 million, respectively (2015 – $405 million and $276 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2016 2015 2014 $ $ $ Service cost for the year 31 34 35 Interest expense 51 60 77 Expected return on plan assets (80 ) (86 ) (101 ) Amortization of net actuarial loss 5 7 9 Settlement loss (a) 1 — 19 Amortization of prior year service cost 5 3 3 Net periodic benefit cost 13 18 42 Year ended December 31, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for other post-retirement benefit plans 2016 2015 2014 $ $ $ Service cost for the year 2 2 2 Interest expense 4 4 5 Net periodic benefit cost 6 6 7 (a) 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 (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 2016 2015 2014 Accrued benefit obligation Discount rate 3.8 % 4.0 % 3.9 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.7 % Expected long-term rate of return on plan assets 5.3 % 5.6 % 6.3 % 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 results 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 did not affect the measurement of the total defined benefit obligation, but affects 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. For U.S. funded plans, the rates are taken from the Mercer Yield Curve which is based on bonds rated AA 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 which are at least two years from issuance), 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, 2017, the Company will use 5.4% (2016 – 5.3%; 2015 – 5.6%) 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 2016 2015 2014 Accrued benefit obligation Discount rate 3.9 % 4.1 % 3.9 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.7 % 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 2016. The rate was assumed to decrease gradually to 4.1% by 2034 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 — Impact on accrued benefit obligation 8 (7 ) 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, 2016, by asset category: Fair Value Measurements at December 31, 2016 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 80 80 — — Asset backed notes (1) 118 — 115 3 Canadian government bonds 81 81 — — Canadian corporate debt securities 3 2 1 — Bond index funds (2 & 3) 585 — 585 — Canadian equities (4) 100 100 — — U.S. equities (5) 77 77 — — International equities (6) 226 226 — — U.S. stock index funds (3 & 7) 193 — 193 — Insurance contracts (8) 84 — — 84 Derivative contracts (9) (1 ) — (1 ) — Total 1,546 566 893 87 (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. (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 two equity index funds, not actively managed, that track the Russell 3000 index. (8) This category includes: 1) two group annuity contracts totaling $76 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, 2015, by asset category: Fair Value Measurements at December 31, 2015 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 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 fund 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 active segregated large capitalization Canadian equity portfolios 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. ASSET BACKED NOTES At December 31, 2016, Domtar’s Canadian defined benefit pension funds held restructured asset backed notes (“ABN”) valued at $118 million (CDN $158 million). At December 31, 2015, the plans held ABN valued at $146 million (CDN $201 million). During 2016, the total value of ABN benefited from an increase in value of $8 million (CDN $10 million) and by a $4 million impact in the value of the Canadian dollar. For the same period, the total value of the ABN was reduced by repayments totalling $40 million (CDN $53 million). These ABN were subject to restructuring under the court order governing the Montreal Accord that was completed in January 2009. About $116 million (CDN $154 million) of these notes were repaid in January 2017. These maturing notes were valued at a minimal discount to the repayment amount. The values for the $3 million of remaining ABN were sourced either from the asset manager of the ABN, or from trading values for similar securities of similar credit quality. 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, 2014 15 8 23 (Settlements)/Purchases (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 (Settlements)/Purchases (7 ) (5 ) (12 ) Return on plan assets — 1 1 Effect of foreign currency exchange rate change — 2 2 Balance at December 31, 2016 3 84 87 (1) ESTIMATED FUTURE BENEFIT PAYMENTS FROM THE PLANS Estimated future benefit payments from the plans for the next 10 years at December 31, 2016 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2017 102 4 2018 100 4 2019 102 4 2020 102 5 2021 102 5 2022-2026 515 24 1 |
Other Operating Loss (Income),
Other Operating Loss (Income), Net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Other Operating Loss (Income), Net | NOTE 8. OTHER OPERATING LOSS (INCOME), NET Other operating loss (income), 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 loss (income), net includes the following: Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 $ $ $ Alternative fuel tax credits (Note 10) — — (18 ) Net gain on sale of property, plant and equipment — (15 ) — Bad debt expense — 5 2 Environmental provision 2 4 1 Foreign exchange loss (gain) 6 (3 ) (1 ) Proceeds from insurance claims on machinery and equipment — — (11 ) Other (4 ) 4 (2 ) Other operating loss (income), net 4 (5 ) (29 ) |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 $ $ $ Interest on long-term debt (1) 59 82 95 Premium paid on repurchase of long-term debt — 40 — Reversal of fair value increment on long-term debt — (1 ) — Interest on receivables securitization 2 1 1 Interest on withdrawal liabilities for multiemployer plans 3 4 3 Amortization of debt issuance costs and other 2 6 4 66 132 103 (1) The Company capitalized $5 million of interest expense in 2016 ($3 million in 2015 and 2014, respectively). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED 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, 2016 2015 2014 $ $ $ U.S. earnings 69 26 86 Foreign earnings 88 130 175 Earnings before income taxes 157 156 261 Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ U.S. Federal and State: Current 10 61 20 Deferred 1 (78 ) (213 ) Foreign: Current 10 9 11 Deferred 8 22 12 Income tax expense (benefit) 29 14 (170 ) 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, 2016 2015 2014 $ $ $ U.S. federal statutory income tax 55 55 91 Reconciling Items: State and local income taxes, net of federal income tax benefit 3 1 3 Foreign income tax rate differential (14 ) (16 ) (18 ) Tax credits and special deductions (18 ) (16 ) (18 ) Alternative fuel tax credit income — — (6 ) Tax rate changes — (5 ) (16 ) Uncertain tax positions 2 1 (194 ) U.S. manufacturing deduction (2 ) (6 ) (9 ) Functional currency differences — 1 (5 ) Valuation allowance on deferred tax assets (1 ) (1 ) 7 Other 4 — (5 ) Income tax expense (benefit) 29 14 (170 ) During 2016, the Company recorded $18 million of tax credits, mainly research and experimentation credits, which significantly impacted the effective tax rate. The effective tax rate for 2016 was also significantly impacted by the Company’s foreign operations being taxed at lower statutory tax rates. During 2015, the Company recorded $16 million of tax credits, mainly research and experimentation credits, which significantly impacted the effective tax rate. 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. In 2014, the Company settled its ongoing U.S. federal income tax audit for tax years 2009, 2010, and 2011, and the Company filed related amended state tax returns. As a result of the audit completion, the Company recognized previously unrecognized gross tax benefits of $223 million and reversed related deferred tax assets of $23 million for a net tax benefit of $200 million for 2014. This $200 million benefit, less $6 million of expense for other 2014 activity, impacted the 2014 effective tax rate and is included in the table above in the uncertain tax positions benefit of $194 million. The audit closure also resulted in an additional $7 million benefit related to the U.S. manufacturing deduction which impacted the effective tax rate for 2014 and is included in the $9 million for that line item above. The effective tax rate was also impacted by the recognition of $18 million of Alternative Fuel Tax Credits (“AFTC”) with no related tax expense. During 2014, the Company recorded $18 million of tax credits, mainly research and experimentation credits pertaining to current and prior years. The effective tax rate for 2014 was also impacted by an enacted tax rate decrease in Spain and tax losses related to functional currency differences, and the impact of the Company’s foreign operations being taxed at lower statutory tax rates. 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, 2016 and December 31, 2015 are comprised of the following: December 31, December 31, 2016 2015 $ $ Accounting provisions 62 57 Net operating loss carryforwards and other deductions 43 48 Pension and other employee future benefit plans 65 59 Inventory 15 17 Tax credits 25 25 Other — 16 Gross deferred tax assets 210 222 Valuation allowance (22 ) (23 ) Net deferred tax assets 188 199 Property, plant and equipment (648 ) (647 ) Impact of foreign exchange on long-term debt and investments (8 ) (6 ) Intangible assets (152 ) (157 ) Other (10 ) — Total deferred tax liabilities (818 ) (810 ) Net deferred tax liabilities (630 ) (611 ) Included in: Other assets (Note 15) 2 2 Deferred income taxes and other (632 ) (613 ) Total (630 ) (611 ) At December 31, 2016, the Company had less than $1 million of federal net operating loss carryforwards remaining which expire in 2032. 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. The Company also has other foreign net operating losses and deduction limitations of $140 million, which may be carried forward indefinitely. 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, the Company 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, 2016, and certain foreign loss carryforwards for which a valuation allowance of $18 million exists at December 31, 2016. Of this amount, $(1) million impacted tax expense and the effective tax rate for 2016 (2015 – $(1) million; 2014 – $7 million). The Company does not provide for a U.S. income tax liability on undistributed earnings of our foreign subsidiaries. The earnings of the foreign subsidiaries, which reflect full provision for income taxes, are currently indefinitely reinvested in foreign operations. No provision is made for income taxes that would be payable upon the distribution of earnings from foreign subsidiaries as computation of these amounts is not practicable. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES At December 31, 2016, the Company had gross unrecognized tax benefits of approximately $43 million ($41 million and $48 million for 2015 and 2014, respectively). If recognized in 2017, 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, 2016 2015 2014 $ $ $ Balance at beginning of year 41 48 259 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 3 2 10 Reductions for tax positions of prior years (2 ) (1 ) — Reductions related to settlements with taxing authorities — (4 ) (223 ) Expirations of statutes of limitations (3 ) (7 ) (4 ) Interest 1 1 4 Foreign exchange impact — (1 ) (1 ) Balance at end of year 43 41 48 As a result of the acquisition of Indas on January 2, 2014, the Company recorded unrecognized tax benefits which are shown as additions for tax positions of prior years in the table above. The Company recorded $1 million of accrued interest associated with unrecognized tax benefits for the period ending December 31, 2016 ($1 million and $4 million for 2015 and 2014, respectively). The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. The Company believes it is reasonably possible that up to $12 million of its unrecognized tax benefits may be recognized by December 31, 2017, which could significantly impact the effective tax rate. However, the amount and timing of the recognition of these benefits is subject to some uncertainty. The major jurisdictions where the Company and its subsidiaries will file tax returns for 2016, 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 U.S. states and Canadian provinces. At December 31, 2016, the Company’s subsidiaries are subject to foreign federal income tax examinations for the tax years 2007 through 2015, with federal years prior to 2013 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. 1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 11. INVENTORIES The following table presents the components of inventories: December 31, December 31, 2016 2015 $ $ Work in process and finished goods 413 432 Raw materials 132 130 Operating and maintenance supplies 214 204 759 766 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 12. GOODWILL Changes in the carrying value of goodwill are as follows: December 31, December 31, 2016 2015 $ $ Balance at beginning of year 539 567 Acquisition of HDIS (Note 3) 17 — Effect of foreign currency exchange rate change (6 ) (28 ) Balance at end of year 550 539 The goodwill at December 31, 2016 is entirely related to the Personal Care reporting segment. The Company performed its annual goodwill impairment testing at October 1, 2016, 2015 and 2014 and determined that the estimated fair value of the Personal Care reporting unit exceeded its carrying value. As a result, no impairment charges were recorded during 2016, 2015 or 2014. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 $ $ Machinery and equipment 3-20 7,408 7,255 Buildings and improvements 10-40 1,007 975 Timberlands (1) 200 196 Assets under construction — 94 224 8,709 8,650 Less: Accumulated depreciation (5,884 ) (5,815 ) 2,825 2,835 (1) Amortization is calculated using the unit of production method. Depreciation expense related to property, plant and equipment for the year ended December 31, 2016 was $329 million (2015 – $340 million; 2014 – $363 million). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 - 40 369 (60 ) 309 354 (46 ) 308 Technology 7 - 20 8 (3 ) 5 8 (2 ) 6 Non-Compete 9 1 — 1 1 — 1 License rights 12 28 (8 ) 20 28 (6 ) 22 409 (72 ) 337 394 (55 ) 339 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 225 — 225 215 — 215 License rights 6 — 6 6 — 6 Catalog rights 36 — 36 37 — 37 Total 680 (72 ) 608 656 (55 ) 601 Amortization expense related to intangible assets for the year ended December 31, 2016 was $19 million (2015 – $19 million; 2014 – $21 million). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2017 2018 2019 2020 2021 $ $ $ $ $ Amortization expense related to intangible assets 21 20 20 20 20 The Company performed its annual impairment test on its indefinite-lived intangible assets at October 1, 2016, 2015 and 2014, using a quantitative approach, except for the license rights and water 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. No impairment charge was recorded for indefinite-lived intangible assets during 2016, 2015 or 2014. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Pension asset - defined benefit pension plans (Note 7) 103 113 Investment tax credits receivable 4 — Unamortized debt issuance costs 5 3 Deferred income tax assets (Note 10) 2 2 Derivative financial instruments (Note 23) 8 3 Other 7 4 129 125 |
Closure and Restructuring Costs
Closure and Restructuring Costs and Liability | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Liability | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 16. CLOSURE AND RESTRUCTURING COSTS AND LIABILITY In the fourth quarter of 2016, as a result of a revision in the Company’s estimated withdrawal liability for U.S. multiemployer plans, the Company recorded a credit of $4 million in Closure and restructuring costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss). At December 31, 2016, the total provision for the withdrawal liabilities was $50 million. Plymouth, North Carolina mill On September 23, 2016, the Company announced a plan to optimize fluff pulp manufacturing at its Plymouth, North Carolina mill. The restructuring, which is expected to be completed by mid-2017, includes the permanent closure of a pulp dryer and idling of related assets, in addition to a workforce reduction of approximately 100 positions. The streamlining process will also right-size the mill to an annualized production target of approximately 380,000 metric tons of fluff pulp. The Company recorded $5 million of severance and termination costs under Closure and restructuring costs during the third quarter of 2016. Ashdown, Arkansas mill On December 10, 2014, the Company announced a project to convert a paper machine at its 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 Company also invested in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions. The conversion work commenced during the second quarter of 2016 and the production of bale softwood pulp began in the third quarter of 2016. The fluff qualification period began in the fourth quarter of 2016. The fluff pulp line 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 resulted in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity on March 31, 2016. The Company recorded $29 million for the year ended December 31, 2016, of accelerated depreciation under Impairment of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income (Loss). During 2016, the Company also recorded $26 million of costs related to the fluff pulp conversion outage and $1 million of severance and termination costs under Closure and restructuring costs. The Company recorded $77 million for the year ended December 31, 2015, of accelerated depreciation under Impairment of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income (Loss). 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 of property plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income (Loss) 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. Other costs During 2016, other costs related to previous and ongoing closures included $3 million of severance and termination costs (2015 – $1 million; 2014 – $3 million) and $1 million of pension settlement (2015 and 2014 – nil). The following tables provide the components of closure and restructuring costs by segment: Year ended December 31, 2016 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 8 1 9 Pension settlement and withdrawal liability (3 ) — (3 ) Fluff pulp conversion outage 26 — 26 Closure and restructuring costs 31 1 32 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) The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2016 2015 $ $ Balance at beginning of year 3 2 Additions 9 4 Payments (5 ) (3 ) Balance at end of year 7 3 The $7 million provision is comprised of severance and termination costs of $6 million and $1 million in the Pulp and Paper segment and Personal Care segment, respectively. Closure and restructuring costs are based on management’s best estimates at December 31, 2016. 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 impairment charges may be required in future periods. 1 |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Trade payables 332 350 Payroll-related accruals 160 160 Accrued interest 16 18 Payables on capital projects 13 16 Rebate accruals 62 66 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) 15 14 Closure and restructuring costs liability (Note 16) 7 3 Derivative financial instruments (Note 23) 11 53 Dividends payable (Note 21) 26 25 Stock-based compensation - liability awards 2 4 Other 6 5 656 720 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED 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 Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) items Total $ $ $ $ $ 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 ) Natural gas swap contracts 4 N/A N/A N/A 4 Net investment hedge (1 ) N/A N/A N/A (1 ) Currency options 8 N/A N/A N/A 8 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A (38 ) (1 ) N/A (39 ) Foreign currency items N/A N/A N/A (7 ) (7 ) Other comprehensive income (loss) before reclassifications 27 (38 ) (1 ) (7 ) (19 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 — — 21 Net current period other comprehensive income (loss) 41 (31 ) (1 ) (7 ) 2 Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) (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 Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts 12 16 (4 ) (2) Currency options and forwards 12 28 16 (2) Total before tax 24 44 12 Tax expense (10 ) (18 ) (4 ) Net of tax 14 26 8 Amortization of defined benefit pension items Amortization of prior year service cost 5 3 22 (3) Amortization of net actuarial loss 6 7 9 (3) Total before tax 11 10 31 Tax expense (4 ) (3 ) (9 ) Net of tax 7 7 22 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). 1 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 19. LONG-TERM DEBT Par December 31, December 31, Maturity Amount Currency 2016 2015 $ $ $ Unsecured notes 9.5% Notes 2016 39 US — 39 10.75% Notes 2017 63 US 63 63 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 2021 50 US 50 50 Term Loan 2025 300 US 300 300 Securitization 2019 70 US 70 — Capital lease obligations and other 2016 - 2028 8 10 1,289 1,260 Less: Unamortized debt issuance costs 8 9 Less: Due within one year 63 41 1,218 1,210 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 $ $ 2017 63 1 2018 — 1 2019 70 1 2020 — 1 2021 50 1 Thereafter 1,100 6 1,283 11 Less: Amounts representing interest — 3 Total payments 1,283 8 UNSECURED NOTES The Company’s 9.5% Notes, in the aggregate principal amount of $39 million, matured on August 1, 2016. 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 of $42 million that was 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. REVOLVING CREDIT FACILITY In August 2016, the Company amended and restated its unsecured revolving credit facility (the “Credit Agreement”) with certain domestic and foreign banks, increasing the amount available from $600 million to $700 million. The amendment also extended the Credit Agreement’s maturity date from October 3, 2019 to August 18, 2021. The amendment also allows certain foreign subsidiaries to be borrowers under the facility. The maturity date of the facility may be extended by one year and the lender commitments may be increased by up to $400 million, subject to lender approval and customary requirements. Borrowings by the Company under the Credit Agreement are guaranteed by its significant domestic subsidiaries. Borrowings by foreign borrowers under the Credit Agreement are guaranteed by the Company, the Company’s significant domestic subsidiaries and certain of the Company’s foreign significant subsidiaries. The amendment allowed certain insignificant domestic subsidiaries that were previously guarantors, to be released from their guarantees of any obligations under the credit facility. Borrowings under the Credit Agreement bear interest at LIBOR, EURIBOR, Canadian bankers' acceptance or prime rate, as applicable, plus a margin linked to the Company’s credit rating. In addition, the Company pays facility fees quarterly at rates dependent on the Company's credit ratings. The Credit Agreement contains customary covenants and events of default for transactions of this type, 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 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2016, the Company was in compliance with these financial covenants, and $50 million was borrowed (December 31, 2015 – $50 million). TERM LOAN In the third quarter of 2015, a wholly owned subsidiary of Domtar borrowed $300 million under an unsecured 10 year Term Loan Agreement with certain domestic banks. The Company and certain significant domestic subsidiaries of the Company unconditionally guarantee any obligations from time to time arising under the Term Loan Agreement. On August 18, 2016, Domtar entered into an amendment to its Term Loan Agreement, pursuant to which, among other things, certain insignificant subsidiaries were released from their guarantees of the borrower’s obligations under the Term Loan Agreement. 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, 2016, the Company was in compliance with these financial covenants. RECEIVABLES SECURITIZATION The Company has a $150 million receivables securitization facility that matures in March 2019. The Company uses securitization of certain receivables to provide additional liquidity to fund its operations. Sales of receivables under this program are accounted for as secured borrowings. The costs under the program vary based on changes in interest rates and amounts borrowed. 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 2016 Credit Agreement, or the failure by Domtar to satisfy material obligations. At December 31, 2016, $70 million was borrowed under this facility and $48 million of letters of credit were outstanding under the program (2015 – nil and $38 million, respectively). In 2016, a net charge of $2 million (2015 – $1 million; 2014 – $1 million) resulted from the program described above and was included in Interest expense, net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). 1 |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Liability - other post-retirement benefit plans (Note 7) 86 82 Pension liability - defined benefit pension plans (Note 7) 141 129 Pension liability - multiemployer plan withdrawal 48 52 Provision for environmental and asset retirement obligations (Note 22) 35 38 Stock-based compensation - liability awards 17 13 Derivative financial instruments (Note 23) 10 14 Other 21 22 358 350 ASSET RETIREMENT OBLIGATIONS The asset retirement obligations are principally linked to landfill capping obligations and demolition of certain abandoned buildings. At December 31, 2016, Domtar estimated the net present value of its asset retirement obligations to be $16 million (2015 – $16 million); the present value is based on probability weighted undiscounted cash outflows of $60 million (2015 – $61 million). The majority of the asset retirement obligations are estimated to be settled prior to December 31, 2056. 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, 2016 2015 $ $ Asset retirement obligations, beginning of year 16 20 Revisions to estimated cash flows — (3 ) Asset retirement obligation payments (1 ) (1 ) Accretion expense 1 1 Effect of foreign currency exchange rate change — (1 ) Asset retirement obligations, end of year 16 16 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (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 that was 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. During 2016, the Company declared one quarterly dividend of $0.40 per share and three quarterly dividends of $0.415 per share, to holders of the Company’s common stock. The total dividends of approximately $25 million, $26 million, $26 million and $26 million were paid on April 15, 2016, July 15, 2016, October 17, 2016 and January 17, 2017, respectively, to shareholders of record as of April 4, 2016, July 5, 2016, October 3, 2016 and January 3, 2017, respectively. 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. On February 21, 2017, the Company’s Board of Directors approved a quarterly dividend of $0.415 per share to be paid to holders of the Company’s common stock. This dividend is to be paid on April 17, 2017 to shareholders of record on April 3, 2017. 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. 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 and 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 2016, the Company repurchased 304,915 shares (2015 – 1,210,932; 2014 – 996,967) at an average price of $32.21 (2015 – $41.40; 2014 – $38.59) for a total cost of $10 million (2015 – $50 million; 2014 – $38 million). Since the inception of the Program, the Company repurchased 24,853,827 shares at an average price of $39.33 for a total cost of $977 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, 2016 or December 31, 2015. 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, 2016 and December 31, 2015, were as follows: December 31, December 31, 2016 2015 Number Number Common stock of shares $ of shares $ Balance at beginning of year 62,849,936 1 64,010,087 1 Shares issued Treasury stock (1) (261,099 ) — (1,160,151 ) — Balance at end of year 62,588,837 1 62,849,936 1 (1) During 2016, the Company repurchased 304,915 shares through the Program (2015 – 1,210,932) and issued 43,816 shares (2015 – 50,781) out of Treasury stock in conjunction with the exercise of stock-based compensation awards. 1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 22. COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. In 2016, the Company’s operating expenses for environmental matters amounted to $65 million (2015 – $70 million; 2014 – $68 million). The Company made capital expenditures for environmental matters of $4 million in 2016 (2015 – $7 million; 2014 – $14 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 obtained permitting approval on May 14, 2015 from the Vancouver Fraser Port Authority. Construction began in January 2017. The Company has recorded an environmental reserve to address its estimated exposure. The possible cost 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, 2016 2015 $ $ Balance at beginning of year 52 60 Additions 2 1 Environmental spending (5 ) (3 ) Accretion — 1 Effect of foreign currency exchange rate change 1 (7 ) Balance at end of year (1) 50 52 (1) At December 31, 2016, $15 million is shown in Trade and other payables (see Note 17) and $35 million is shown in Other liabilities and deferred credits (see Note 20). At December 31, 2016, anticipated undiscounted payments in each of the next five years are as follows: 2017 2018 2019 2020 2021 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 15 6 4 1 2 66 94 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, EPA’s Clean Power Plan requires states to develop compliance plans to reduce greenhouse gases (“GHG”) emissions beginning in 2022 from existing electric utilities. 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 final rule is being litigated and on February 9, 2016, the U.S. Supreme Court stayed the implementation of the Clean Power Plan until the litigation is resolved. Oral argument was held before the U.S. Court of Appeals for the D.C. Circuit on September 27, 2016, and a final decision is expected within months, although subsequent appeals to the U.S. Supreme Court are likely. The Company does not expect to be disproportionately affected compared with other pulp and paper producers located in the states where the Company operates. The 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 EPA measures compared with other pulp and paper producers in the U.S. The Government of Canada is reviewing national policies to further GHG reductions and has announced its intent to establish a national price on carbon emissions. The Company does not expect its facilities to be disproportionately affected by these 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 has finalized a cap-and-trade program with the first compliance period beginning January 1, 2017 through 2020. The Company does not expect to be disproportionately affected compared to the other large pulp and paper producers located in these provinces. Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”) or Boiler MACT The Company has implemented its plans and is in compliance with EPA’s Boiler MACT rule. On December 23, 2016, The U.S. Court of Appeals for the D.C. Circuit granted EPA’s request to remand versus vacate certain standards in the Boiler MACT rule. The Court directed the EPA to identify the affected standards and issue the rulemaking to implement replacement standards expeditiously. 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, 2016, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Spanish Competition Investigation On October 15, 2015, the Competition Directorate of Spain’s National Commission of Markets and Competition (“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 recommended the imposition of fines on the parties without recommending the amount of any fines. The Company recorded a €0.2 million ($0.2 million) provision in the fourth quarter of 2015 in Other operating loss (income), net. On May 26, 2016, the CNMC rendered its final decision, which declared that a number of manufacturers of heavy adult incontinence products, the sector association and certain individuals participated in price fixing during the period from December 1996 through January 2014. Indas and one of its subsidiaries were fined a total of €13.5 million ($14.9 million) for their participation. A provision was recorded in the second quarter of 2016 in the amount of €13.3 million ($14.7 million) in Other operating loss (income), net. 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 was backed by a retained purchase price of €3 million ($3.3 million) and bank guarantees of €9 million ($9.9 million). On June 27, 2016, in light of the CNMC decision, the sellers, in terms of their indemnity obligations, agreed to the appropriation by the Company of the retained purchase price and the release of the bank guarantees. Accordingly, a recovery of €12 million ($13.2 million) was recorded in the second quarter of 2016 and included in Other operating loss (income), net. In July 2016, the fines were paid and Indas and two of its affiliates named in the final decision appealed the decision to the Spanish courts. The Company purchased limited insurance coverage with respect to the purchase agreement, and is seeking to recover the remaining €1.5 million ($1.7 million) under the insurance policy. Any recovery from the insurers would be recorded in the period when the proceeds are received. 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, 2016, were as follows: 2017 2018 2019 2020 2021 Thereafter Total $ $ $ $ $ $ $ Operating leases 25 23 18 16 13 38 133 Other commercial commitments 87 8 5 3 2 1 106 Total operating lease expense amounted to $28 million in 2016 (2015 – $28 million; 2014 – $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, 2016, 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, 2016 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. 1 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED 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, 2016, one of Domtar’s Pulp and Paper segment customers located in the U.S. represented 12% or $74 million (2015 – 12% or $78 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 attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. Collateral or other security to support financial instruments subject to credit risk is usually not obtained. The credit standing of counterparties is regularly monitored. INTEREST RATE RISK The Company is exposed to interest rate risk arising from fluctuations in interest rates on its cash and cash equivalents, bank indebtedness, revolving credit facility 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. 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 is exposed to price volatility for raw materials and energy used in its manufacturing process. The Company manages its exposure to cost risk primarily through the use of supplier contracts. The Company purchases natural gas at the prevailing market price at the time of delivery. To reduce the impact on cash flow and earnings due to pricing volatility, the Company may utilize derivatives to fix the price of forecasted natural gas purchases. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Cost of sales in the period during which the hedged transaction affects earnings. Current contracts are used to hedge a portion of forecasted purchases over the next 60 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of December 31, 2016 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2017 8,980,000 $ 28 35% 2018 5,085,000 $ 15 20% 2019 6,560,000 $ 20 26% 2020 5,750,000 $ 18 23% 2021 3,920,000 $ 12 15% (1) MMBTU: Millions of British thermal units The natural gas derivative contracts were fully effective as of December 31, 2016. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income (Loss) for the year ended December 31, 2016 resulting from hedge ineffectiveness (2015 and 2014 – 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 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 the Company’s Canadian subsidiary over the next 24 months. Derivatives are currently used to hedge a portion of forecasted sales by its U.S. subsidiaries in Euros and in British pounds over a period of between 6 to 12 months. Derivatives are also currently used to hedge a portion of forecasted sales in British pounds and Norwegian krone and a portion of forecasted purchases in U.S. dollars and Swedish krona by its European subsidiaries over a period of between 12 to 18 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, 2016 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 2017 CDN/USD Pulp and Paper 511 CDN 66% 1 USD = 1.3045 1 USD = 1.3570 USD/Euro Personal Care 55 USD 82% 1 Euro = 1.1336 1 Euro = 1.1336 Euro/USD Pulp and Paper 19 EUR 31% 1 Euro = 1.1370 1 Euro = 1.1370 2018 CDN/USD Pulp and Paper 225 CDN 29% 1 USD = 1.2951 1 USD = 1.3519 USD/Euro Personal Care 14 USD 20% 1 Euro = 1.1532 1 Euro = 1.1532 The foreign exchange derivative contracts were fully effective as of December 31, 2016. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income (Loss) for the year ended December 31, 2016 resulting from hedge ineffectiveness (2015 and 2014 - 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, 2016 and December 31, 2015, 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: 2016 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 10 — 10 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 6 — 6 — (a) Other liabilities and deferred credits Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 21 — 21 — Other Instruments: Long-term debt 1,313 — 1,313 — (c) Long-term debt The net cumulative gain recorded in Accumulated other comprehensive loss relating to natural gas contracts is $3 million at December 31, 2016, of which $5 million will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2016. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases of $8 million at December 31, 2016, will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2016. Quoted prices in 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 6 — 6 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (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 Natural gas swap contracts 14 — 14 — (a) Trade and other payables Currency derivatives 10 — 10 — (a) Other liabilities and deferred credits 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 (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 3 inputs. 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, 2016 and December 31, 2015. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,281 million and $1,251 million at December 31, 2016 and December 31, 2015, 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. 1 |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Disclosures | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED NOTE 24. SEGMENT DISCLOSURES The Company’s two reportable segments described below also represent its two operating segments. 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 segment performance based on operating income. Transfer prices between segments are based on market prices. Certain Corporate general and administrative costs are allocated to the segments. Corporate costs that are not related to segment activities, as well as the mark-to-market impact on stock based compensation awards, are presented on the Corporate line. The Company does not allocate interest expense and income taxes to the segments. 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 2016 2015 2014 $ $ $ Sales Pulp and Paper 4,239 4,458 4,674 Personal Care 917 869 928 Total for reportable segments 5,156 5,327 5,602 Intersegment sales (58 ) (63 ) (39 ) Consolidated sales (1) 5,098 5,264 5,563 Depreciation and amortization of property, plant and equipment Pulp and Paper 284 297 319 Personal Care 64 62 65 Total for reportable segments 348 359 384 Impairment of property, plant and equipment - Pulp and Paper 29 77 4 Consolidated depreciation and amortization and impairment of property, plant and equipment 377 436 388 Operating income (loss) Pulp and Paper 217 270 352 Personal Care 57 61 49 Corporate (51 ) (43 ) (37 ) Consolidated operating income 223 288 364 Interest expense, net 66 132 103 Earnings before income taxes 157 156 261 Income tax expense (benefit) 29 14 (170 ) Net earnings 128 142 431 (1) In 2016 and 2015, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 11% (2015 – 10%) of the total sales. December 31, December 31, 2016 2015 $ $ Segment assets Pulp and Paper 3,637 3,667 Personal Care 1,884 1,822 Total for reportable segments 5,521 5,489 Corporate 159 165 Consolidated assets 5,680 5,654 Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA (CONTINUED) 2016 2015 2014 $ $ $ Additions to property, plant and equipment Pulp and Paper 287 221 161 Personal Care 55 57 86 Total for reportable segments 342 278 247 Corporate 4 6 5 Consolidated additions to property, plant and equipment 346 284 252 Add: Change in payables on capital projects 1 5 (16 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 347 289 236 Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ Geographic information Sales United States 3,571 3,776 3,910 Canada 493 492 591 Europe 605 561 659 Asia 351 302 257 Other foreign countries 78 133 146 5,098 5,264 5,563 December 31, December 31, 2016 2015 $ $ Long-lived assets United States 2,589 2,566 Canada 642 640 Europe 752 769 3,983 3,975 1 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (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), Domtar A.W. LLC, Attends Healthcare Products Inc., EAM Corporation, Associated Hygienic Products LLC and Home Delivery Incontinent Supplies Co., all 100% owned subsidiaries of the Company (“Guarantor Subsidiaries”), on a joint and several basis. Pursuant to the amendment and restatement of the 2016 Credit Agreement on August 18, 2016, the Guaranteed Debt will not be guaranteed by certain of Domtar’s 100% owned subsidiaries; including Domtar Delaware Holdings Inc. and its foreign subsidiaries, including Attends Healthcare Limited, Domtar Inc. and Laboratorios Indas, S.A.U.. Also excluded are Ariva Distribution Inc., Domtar Delaware Investments Inc., Domtar Delaware Holdings, LLC, Domtar AI Inc., Domtar Personal Care Absorbent Hygiene Inc., Domtar Wisconsin Dam Corp. and Palmetto Enterprises LLC, (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, 2016 and 2015 and the Statements of Earnings and Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2016, 2015 and 2014 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, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,203 2,040 (1,145 ) 5,098 Operating expenses Cost of sales, excluding depreciation and amortization — 3,638 1,542 (1,145 ) 4,035 Depreciation and amortization — 256 92 — 348 Selling, general and administrative 17 93 317 — 427 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 31 1 — 32 Other operating loss (income), net 1 (1 ) 4 — 4 18 4,046 1,956 (1,145 ) 4,875 Operating (loss) income (18 ) 157 84 — 223 Interest expense (income), net 65 50 (49 ) — 66 (Loss) earnings before income taxes (83 ) 107 133 — 157 Income tax (benefit) expense (43 ) 36 36 — 29 Share in earnings of equity accounted investees 168 97 — (265 ) — Net earnings 128 168 97 (265 ) 128 Other comprehensive income (loss) 2 (12 ) (35 ) 47 2 Comprehensive income 130 156 62 (218 ) 130 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE LOSS 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 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 (LOSS) 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 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 BALANCE SHEET December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 17 14 94 — 125 Receivables — 305 308 — 613 Inventories — 548 211 — 759 Prepaid expenses 15 19 6 — 40 Income and other taxes receivable — 16 15 — 31 Intercompany accounts 331 184 47 (562 ) — Total current assets 363 1,086 681 (562 ) 1,568 Property, plant and equipment, net — 2,000 825 — 2,825 Goodwill — 313 237 — 550 Intangible assets, net — 279 329 — 608 Investments in affiliates 3,976 2,678 — (6,654 ) — Intercompany long-term advances 6 80 1,411 (1,497 ) — Other assets 15 18 103 (7 ) 129 Total assets 4,360 6,454 3,586 (8,720 ) 5,680 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 12 — — 12 Trade and other payables 48 391 217 — 656 Intercompany accounts 136 115 311 (562 ) — Income and other taxes payable 16 — 6 — 22 Long-term debt due within one year 63 — — — 63 Total current liabilities 263 518 534 (562 ) 753 Long-term debt 841 299 78 — 1,218 Intercompany long-term loans 560 937 — (1,497 ) — Deferred income taxes and other — 556 126 (7 ) 675 Other liabilities and deferred credits 20 168 170 — 358 Shareholders' equity 2,676 3,976 2,678 (6,654 ) 2,676 Total liabilities and shareholders' equity 4,360 6,454 3,586 (8,720 ) 5,680 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 Property, plant and equipment, net — 2,018 817 — 2,835 Goodwill — 296 243 — 539 Intangible assets, net — 254 347 — 601 Investments in affiliates 8,005 2,050 — (10,055 ) — Intercompany long-term advances 6 88 621 (715 ) — Other assets 15 10 115 (15 ) 125 Total assets 8,847 10,454 2,704 (16,351 ) 5,654 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 901 301 8 — 1,210 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 8,847 10,454 2,704 (16,351 ) 5,654 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 168 97 (265 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,280 ) 4,149 203 265 337 Cash flows (used for) provided from operating activities (4,152 ) 4,317 300 — 465 Investing activities Additions to property, plant and equipment — (265 ) (82 ) — (347 ) Proceeds from disposals of property, plant and equipment and sale of business — — 1 — 1 Acquisition of businesses, net of cash acquired — (1 ) (45 ) — (46 ) Other — — 1 — 1 Cash flows used for investing activities — (266 ) (125 ) — (391 ) Financing activities Dividend payments (102 ) — — — (102 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 12 — — 12 Proceeds from receivables securitization facilities — — 140 — 140 Repayments of receivables securitization facilities — — (70 ) — (70 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,050 ) (223 ) 4,273 — Decrease in long-term advances to related parties 4,273 — — (4,273 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,120 (4,039 ) (154 ) — (73 ) Net (decrease) increase in cash and cash equivalents (32 ) 12 21 — 1 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 49 2 75 — 126 Cash and cash equivalents at end of year 17 14 94 — 125 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 (used for) 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 provided from (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 credit facility 50 — — — 50 Issuance of long-term debt — 300 — — 300 Repayments 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) increase 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 Year ended CASH FLOWS 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 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 credit facility (160 ) — — — (160 ) Proceeds from receivables securitization facilities — — 90 — 90 Repayments of receivables securitization facilities — — (129 ) — (129 ) Repayments 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 1 |
Interim Financial Results
Interim Financial Results | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Results | Domtar Corporation Interim Financial Results (Unaudited) (in millions of dollars, unless otherwise noted) 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,287 $ 1,267 $ 1,270 $ 1,274 $ 5,098 Operating income 18 (a) 39 (b) 92 (c) 74 (d) 223 Earnings before income taxes 1 24 75 57 157 Net earnings 4 18 59 47 128 Basic net earnings per common share 0.06 0.29 0.94 0.75 2.04 Diluted net earnings per common share 0.06 0.29 0.94 0.75 2.04 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,348 $ 1,310 $ 1,292 $ 1,314 $ 5,264 Operating income 71 (e) 62 (f) 61 (g) 94 (h) 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 (a) The operating income for the first Quarter of 2016 included closure and restructuring costs of $2 million related to our Pulp and Paper segment. The Company also incurred an additional $21 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 2016 included closure and restructuring costs of $21 million and an additional $3 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (c) The operating income for the third Quarter of 2016 included closure and restructuring costs of $5 million related to our Pulp and Paper segment. The Company also incurred $5 million of closure and restructuring costs and an additional $5 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 2016 included closure and restructuring costs of $1 million related to our Personal Care segment and $(2) million related to our Pulp and Paper segment. (e) 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. (f) 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. (g) 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. (h) 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. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
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 Additions to / (Deductions) from Balance at end beginnings of year income reserve of year $ $ $ $ Allowances deducted from related asset accounts: Doubtful accounts - Accounts receivable 2016 6 — 1 7 2015 6 5 (5 ) 6 2014 4 2 — 6 Balance at Charged to Deductions from Balance at end beginnings of year income reserve of year $ $ $ $ Valuation Allowance on Deferred Tax Assets 2016 23 (1 ) — 22 2015 25 (1 ) (1 ) 23 2014 19 7 (1 ) 25 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Basis of Presentation | BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America 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 environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar 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 using the equity method. |
Translation of Foreign Currencies | 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 Income (Loss) and is partially offset by our hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). At December 31, 2016, the accumulated translation adjustment accounts amounted to $(278) million (2015 – $(271) 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 Income (Loss). |
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 impairments, 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, 2016. 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 income (loss) in the Consolidated Statements of Earnings and Comprehensive Income (Loss). 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. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. 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 Income (Loss). |
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 Income (Loss). |
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 account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $268 million and $288 million at December 31, 2016 and 2015, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded 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 $63 million and $66 million greater at December 31, 2016 and 2015, respectively. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated 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 Property, Plant and Equipment | IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 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 expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment 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, a qualitative assessment is performed and 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 approach 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 accuracy 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, 2016 resides in the Personal Care reporting segment. 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, a qualitative assessment is performed and 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 license 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 disclosed under impairment of property, plant and equipment. 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. |
Debt Issuance Costs | DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheet as a direct deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings and Comprehensive Income (Loss). PRESENTATION OF DEBT ISSUANCE COSTS In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03, “ Simplifying the Presentation of Debt Issuance Costs, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, The Company adopted the new requirements on January 1, 2016 with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheet as at December 31, 2015 was a reduction of $9 million in Other assets and Long-term debt. |
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 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 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 (net of estimated forfeitures) 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 at the end 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 stock 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 the end of each reporting period, until settlement, using the quoted market value. Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 1,793,095 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 Income (Loss). 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 Income (Loss) 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 income (loss). These amounts are reclassified in the Consolidated Statements of Earnings and Comprehensive Income (Loss) 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 Income (Loss) 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. 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 as 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 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 Statements of Earnings and Comprehensive Income (Loss). |
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. |
Future Accounting Changes [Member] | |
Revenue Recognition | REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. ASU 2014-09 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. Entities are permitted to adopt the new revenue standard by restating all prior periods under the full retrospective approach following ASC 250 “ Accounting Changes and Error Corrections” The Company has begun its assessment of the impact that the guidance will have on the consolidated financial statements and related disclosures. The Company currently expects to adopt the new revenue standards in its first quarter of 2018 utilizing the modified retrospective transition method. Further, the Company expects to identify similar performance obligations under the new guidance as compared with deliverables previously identified. As a result, the Company expects the timing of its revenue to remain the same. While the Company is still evaluating the impact of adopting the new standard, it does not expect this new guidance to have a material impact on the consolidated financial statements. |
Cash and Cash Equivalents | CLASSIFICATION OF CASH FLOWS In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Inventories | INVENTORY In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventory, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Stock-Based Compensation and Other Stock-Based Payments | SHARE-BASED PAYMENTS In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Derivative Instruments | DERIVATIVES AND HEDGING In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Financial Instruments | FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, 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 new guidance to have a material impact on the consolidated financial statements. |
Leases | LEASES In February 2016 Leases, The Company is currently evaluating the impact of this guidance on the consolidated financial statements, including identifying and analyzing all contracts that contain a lease. As a lessee, Domtar’s various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of earnings as expense is incurred. Upon adoption of the new guidance, the Company will be required to record substantially all leases on the Consolidated Balance Sheets as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the Consolidated Statements of Earnings and Comprehensive Income (Loss) could change based on the classification of leases as either operating or financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. |
Goodwill Impairment | GOODWILL IMPAIRMENT In January 2017, the FASB issued ASU No. 2017-04, “ Simplifying the Test for Goodwill Impairment” The Company does not expect this new 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, 2016 | |
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, 2016 | |
Home Delivery Incontinent Supplies Co. [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 $ 4 Inventory 4 Property, plant and equipment 1 Intangible assets Customer relationships (1) 21 Trade names (2) 13 34 Goodwill 17 Deferred income tax assets 2 Total assets 62 Less: Liabilities Trade and other payables 10 Total liabilities 10 Fair value of net assets acquired at the date of acquisition 52 (1) (2) Indefinite useful life. |
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 (as of the date of acquisition). (2) Indefinite useful life. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Dividend yield 4.740 % 3.220 % 1.980 % Expected volatility 1 year 24 % 34 % 31 % Expected volatility 3 years 30 % 30 % 31 % Risk-free interest rate December 31, 2014 — — 0.499 % Risk-free interest rate December 31, 2015 — 0.732 % 0.447 % Risk-free interest rate December 31, 2016 1.057 % 0.893 % 0.755 % Risk-free interest rate December 31, 2017 0.860 % 1.200 % — Risk-free interest rate December 31, 2018 0.900 % — — |
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: 2016 2015 2014 Dividend yield 3.78 % 3.22 % 2.62 % Expected volatility 30 % 32 % 32 % Risk-free interest rate 1.17 % 1.47 % 1.34 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 33.78 $ 43.42 $ 53.12 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, 2018. Weighted average grant PSUs Number of units date fair value $ 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 Granted 295,504 32.38 Forfeited (28,523 ) 39.81 Cancelled (101,124 ) 51.27 Vested and settled (74,655 ) 35.97 Vested and non-vested at December 31, 2016 517,281 38.93 |
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 RSUs Number of units date fair value $ 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 Granted/issued 196,786 34.04 Forfeited (17,884 ) 39.69 Vested and settled (107,198 ) 39.12 Non-vested at December 31, 2016 418,670 40.90 |
Deferred Share Units [Member] | |
Summary of Outstanding Awards | In 2016, no vested awards were deferred to DSUs (2015 – nil; 2014 – 6,799). Those DSUs can be settled in shares of common stock beginning February 2017. Weighted average grant DSUs Number of units date fair value $ 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 Granted/issued 46,737 37.43 Settled (15,123 ) 39.60 Vested at December 31, 2016 321,074 29.01 |
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, 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 Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Granted 114,723 33.78 6.2 — Exercised (37,296 ) 41.11 — — Forfeited/expired (6,502 ) 20.89 — — Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Options exercisable at December 31, 2016 286,011 46.50 3.9 0.1 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 Net earnings $ 128 $ 142 $ 431 Weighted average number of common and exchangeable shares outstanding (millions) 62.6 63.3 64.8 Effect of dilutive securities (millions) 0.1 0.1 0.1 Weighted average number of diluted common and exchangeable shares outstanding (millions) 62.7 63.4 64.9 Basic net earnings per common share (in dollars) $ 2.04 $ 2.24 $ 6.65 Diluted net earnings per common share (in dollars) $ 2.04 $ 2.24 $ 6.64 |
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, 2016 2015 2014 Options 410,978 343,581 247,152 |
Pension Plans and Other Post-42
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2015, the measurement date for each year: December 31, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at beginning of year 1,509 86 1,723 105 Service cost for the year 31 2 34 2 Interest expense 51 4 60 4 Plan participants' contributions 6 — 6 — Actuarial loss (gain) 46 1 (25 ) (5 ) Plan amendments — — 10 — Benefits paid (83 ) — (76 ) — Direct benefit payments (4 ) (5 ) (3 ) (5 ) Settlement (6 ) — (1 ) — Effect of foreign currency exchange rate change 34 2 (219 ) (15 ) Accrued benefit obligation at end of year 1,584 90 1,509 86 |
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, 2016 December 31, 2015 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,493 1,721 Actual return on plan assets 73 63 Employer contributions 31 13 Plan participants' contributions 6 6 Benefits paid (87 ) (79 ) Settlement (6 ) (1 ) Effect of foreign currency exchange rate change 36 (230 ) Fair value of assets at end of year 1,546 1,493 |
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 2016: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2016 2015 Fixed income Cash and cash equivalents 0% - 9% 3 % 2 % Bonds 46%-56% 51 % 51 % Insurance contracts 5% 5 % 6 % Equity Canadian Equity 3% - 11% 6 % 6 % U.S. Equity 8% - 18% 13 % 15 % International Equity 17%-27% 22 % 20 % 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, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Accrued benefit obligation at end of year (1,584 ) (90 ) (1,509 ) (86 ) Fair value of assets at end of year 1,546 — 1,493 — Funded status (38 ) (90 ) (16 ) (86 ) |
Amount Recognized in Consolidated Balance Sheets | The funded status includes $48 million of accrued benefit obligation ($46 million at December 31, 2015) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2016 December 31, 2015 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (4 ) — (4 ) Other liabilities and deferred credits (Note 20) (141 ) (86 ) (129 ) (82 ) Other assets (Note 15) 103 — 113 — Net amount recognized in the Consolidated Balance Sheets (38 ) (90 ) (16 ) (86 ) |
Pre-Tax Amounts Included in Other Comprehensive Income (Loss) | The following table presents the pre-tax amounts included in Other comprehensive income (loss): Year ended Year ended Year ended December 31, 2016 December 31, 2015 December 31, 2014 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service credit — — (10 ) — (1 ) — Amortization of prior year service cost 5 — 3 — 3 — Net (loss) gain (53 ) (2 ) 2 4 (8 ) (8 ) Amortization of net actuarial loss 6 — 7 1 28 — Net amount recognized in other comprehensive (loss) income (pre-tax) (42 ) (2 ) 2 5 22 (8 ) |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | At December 31, 2016, 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 $765 million and $624 million, respectively (2015 – $405 million and $276 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2016 2015 2014 $ $ $ Service cost for the year 31 34 35 Interest expense 51 60 77 Expected return on plan assets (80 ) (86 ) (101 ) Amortization of net actuarial loss 5 7 9 Settlement loss (a) 1 — 19 Amortization of prior year service cost 5 3 3 Net periodic benefit cost 13 18 42 Year ended December 31, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for other post-retirement benefit plans 2016 2015 2014 $ $ $ Service cost for the year 2 2 2 Interest expense 4 4 5 Net periodic benefit cost 6 6 7 (a) 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 (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 2016 2015 2014 Accrued benefit obligation Discount rate 3.8 % 4.0 % 3.9 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.7 % Expected long-term rate of return on plan assets 5.3 % 5.6 % 6.3 % December 31, December 31, December 31, Other post-retirement benefit plans 2016 2015 2014 Accrued benefit obligation Discount rate 3.9 % 4.1 % 3.9 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 4.1 % 3.9 % 4.8 % Rate of compensation increase 2.8 % 2.8 % 2.7 % |
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 2016. The rate was assumed to decrease gradually to 4.1% by 2034 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 — Impact on accrued benefit obligation 8 (7 ) |
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, 2016, by asset category: Fair Value Measurements at December 31, 2016 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 80 80 — — Asset backed notes (1) 118 — 115 3 Canadian government bonds 81 81 — — Canadian corporate debt securities 3 2 1 — Bond index funds (2 & 3) 585 — 585 — Canadian equities (4) 100 100 — — U.S. equities (5) 77 77 — — International equities (6) 226 226 — — U.S. stock index funds (3 & 7) 193 — 193 — Insurance contracts (8) 84 — — 84 Derivative contracts (9) (1 ) — (1 ) — Total 1,546 566 893 87 (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. (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 two equity index funds, not actively managed, that track the Russell 3000 index. (8) This category includes: 1) two group annuity contracts totaling $76 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, 2015, by asset category: Fair Value Measurements at December 31, 2015 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 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 fund 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 active segregated large capitalization Canadian equity portfolios 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. |
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, 2014 15 8 23 (Settlements)/Purchases (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 (Settlements)/Purchases (7 ) (5 ) (12 ) Return on plan assets — 1 1 Effect of foreign currency exchange rate change — 2 2 Balance at December 31, 2016 3 84 87 (1) |
Estimated Future Benefit Payments from Plans | Estimated future benefit payments from the plans for the next 10 years at December 31, 2016 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2017 102 4 2018 100 4 2019 102 4 2020 102 5 2021 102 5 2022-2026 515 24 |
Other Operating Loss (Income)43
Other Operating Loss (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating Loss (Income), Net | The Company’s other operating loss (income), net includes the following: Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 $ $ $ Alternative fuel tax credits (Note 10) — — (18 ) Net gain on sale of property, plant and equipment — (15 ) — Bad debt expense — 5 2 Environmental provision 2 4 1 Foreign exchange loss (gain) 6 (3 ) (1 ) Proceeds from insurance claims on machinery and equipment — — (11 ) Other (4 ) 4 (2 ) Other operating loss (income), net 4 (5 ) (29 ) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 $ $ $ Interest on long-term debt (1) 59 82 95 Premium paid on repurchase of long-term debt — 40 — Reversal of fair value increment on long-term debt — (1 ) — Interest on receivables securitization 2 1 1 Interest on withdrawal liabilities for multiemployer plans 3 4 3 Amortization of debt issuance costs and other 2 6 4 66 132 103 (1) The Company capitalized $5 million of interest expense in 2016 ($3 million in 2015 and 2014, respectively). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 $ $ $ U.S. earnings 69 26 86 Foreign earnings 88 130 175 Earnings before income taxes 157 156 261 |
Provisions for Income Taxes | Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ U.S. Federal and State: Current 10 61 20 Deferred 1 (78 ) (213 ) Foreign: Current 10 9 11 Deferred 8 22 12 Income tax expense (benefit) 29 14 (170 ) |
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, 2016 2015 2014 $ $ $ U.S. federal statutory income tax 55 55 91 Reconciling Items: State and local income taxes, net of federal income tax benefit 3 1 3 Foreign income tax rate differential (14 ) (16 ) (18 ) Tax credits and special deductions (18 ) (16 ) (18 ) Alternative fuel tax credit income — — (6 ) Tax rate changes — (5 ) (16 ) Uncertain tax positions 2 1 (194 ) U.S. manufacturing deduction (2 ) (6 ) (9 ) Functional currency differences — 1 (5 ) Valuation allowance on deferred tax assets (1 ) (1 ) 7 Other 4 — (5 ) Income tax expense (benefit) 29 14 (170 ) |
Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2016 and December 31, 2015 are comprised of the following: December 31, December 31, 2016 2015 $ $ Accounting provisions 62 57 Net operating loss carryforwards and other deductions 43 48 Pension and other employee future benefit plans 65 59 Inventory 15 17 Tax credits 25 25 Other — 16 Gross deferred tax assets 210 222 Valuation allowance (22 ) (23 ) Net deferred tax assets 188 199 Property, plant and equipment (648 ) (647 ) Impact of foreign exchange on long-term debt and investments (8 ) (6 ) Intangible assets (152 ) (157 ) Other (10 ) — Total deferred tax liabilities (818 ) (810 ) Net deferred tax liabilities (630 ) (611 ) Included in: Other assets (Note 15) 2 2 Deferred income taxes and other (632 ) (613 ) Total (630 ) (611 ) |
Gross Unrecognized Tax Benefits | At December 31, 2016, the Company had gross unrecognized tax benefits of approximately $43 million ($41 million and $48 million for 2015 and 2014, respectively). If recognized in 2017, 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, 2016 2015 2014 $ $ $ Balance at beginning of year 41 48 259 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 3 2 10 Reductions for tax positions of prior years (2 ) (1 ) — Reductions related to settlements with taxing authorities — (4 ) (223 ) Expirations of statutes of limitations (3 ) (7 ) (4 ) Interest 1 1 4 Foreign exchange impact — (1 ) (1 ) Balance at end of year 43 41 48 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: December 31, December 31, 2016 2015 $ $ Work in process and finished goods 413 432 Raw materials 132 130 Operating and maintenance supplies 214 204 759 766 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: December 31, December 31, 2016 2015 $ $ Balance at beginning of year 539 567 Acquisition of HDIS (Note 3) 17 — Effect of foreign currency exchange rate change (6 ) (28 ) Balance at end of year 550 539 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 $ $ Machinery and equipment 3-20 7,408 7,255 Buildings and improvements 10-40 1,007 975 Timberlands (1) 200 196 Assets under construction — 94 224 8,709 8,650 Less: Accumulated depreciation (5,884 ) (5,815 ) 2,825 2,835 (1) Amortization is calculated using the unit of production method. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 - 40 369 (60 ) 309 354 (46 ) 308 Technology 7 - 20 8 (3 ) 5 8 (2 ) 6 Non-Compete 9 1 — 1 1 — 1 License rights 12 28 (8 ) 20 28 (6 ) 22 409 (72 ) 337 394 (55 ) 339 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 225 — 225 215 — 215 License rights 6 — 6 6 — 6 Catalog rights 36 — 36 37 — 37 Total 680 (72 ) 608 656 (55 ) 601 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2017 2018 2019 2020 2021 $ $ $ $ $ Amortization expense related to intangible assets 21 20 20 20 20 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Pension asset - defined benefit pension plans (Note 7) 103 113 Investment tax credits receivable 4 — Unamortized debt issuance costs 5 3 Deferred income tax assets (Note 10) 2 2 Derivative financial instruments (Note 23) 8 3 Other 7 4 129 125 |
Closure and Restructuring Cos51
Closure and Restructuring Costs and Liability (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 8 1 9 Pension settlement and withdrawal liability (3 ) — (3 ) Fluff pulp conversion outage 26 — 26 Closure and restructuring costs 31 1 32 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) |
Activity in Closure and Restructuring Liability | The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2016 2015 $ $ Balance at beginning of year 3 2 Additions 9 4 Payments (5 ) (3 ) Balance at end of year 7 3 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Trade payables 332 350 Payroll-related accruals 160 160 Accrued interest 16 18 Payables on capital projects 13 16 Rebate accruals 62 66 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) 15 14 Closure and restructuring costs liability (Note 16) 7 3 Derivative financial instruments (Note 23) 11 53 Dividends payable (Note 21) 26 25 Stock-based compensation - liability awards 2 4 Other 6 5 656 720 |
Changes in Accumulated Other 53
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) items Total $ $ $ $ $ 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 ) Natural gas swap contracts 4 N/A N/A N/A 4 Net investment hedge (1 ) N/A N/A N/A (1 ) Currency options 8 N/A N/A N/A 8 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A (38 ) (1 ) N/A (39 ) Foreign currency items N/A N/A N/A (7 ) (7 ) Other comprehensive income (loss) before reclassifications 27 (38 ) (1 ) (7 ) (19 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 — — 21 Net current period other comprehensive income (loss) 41 (31 ) (1 ) (7 ) 2 Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) (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 Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts 12 16 (4 ) (2) Currency options and forwards 12 28 16 (2) Total before tax 24 44 12 Tax expense (10 ) (18 ) (4 ) Net of tax 14 26 8 Amortization of defined benefit pension items Amortization of prior year service cost 5 3 22 (3) Amortization of net actuarial loss 6 7 9 (3) Total before tax 11 10 31 Tax expense (4 ) (3 ) (9 ) Net of tax 7 7 22 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit 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, 2016 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Par December 31, December 31, Maturity Amount Currency 2016 2015 $ $ $ Unsecured notes 9.5% Notes 2016 39 US — 39 10.75% Notes 2017 63 US 63 63 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 2021 50 US 50 50 Term Loan 2025 300 US 300 300 Securitization 2019 70 US 70 — Capital lease obligations and other 2016 - 2028 8 10 1,289 1,260 Less: Unamortized debt issuance costs 8 9 Less: Due within one year 63 41 1,218 1,210 |
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 $ $ 2017 63 1 2018 — 1 2019 70 1 2020 — 1 2021 50 1 Thereafter 1,100 6 1,283 11 Less: Amounts representing interest — 3 Total payments 1,283 8 |
Other Liabilities and Deferre55
Other Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 $ $ Liability - other post-retirement benefit plans (Note 7) 86 82 Pension liability - defined benefit pension plans (Note 7) 141 129 Pension liability - multiemployer plan withdrawal 48 52 Provision for environmental and asset retirement obligations (Note 22) 35 38 Stock-based compensation - liability awards 17 13 Derivative financial instruments (Note 23) 10 14 Other 21 22 358 350 |
Domtar's Asset Retirement Obligations | The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2016 2015 $ $ Asset retirement obligations, beginning of year 16 20 Revisions to estimated cash flows — (3 ) Asset retirement obligation payments (1 ) (1 ) Accretion expense 1 1 Effect of foreign currency exchange rate change — (1 ) Asset retirement obligations, end of year 16 16 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and December 31, 2015, were as follows: December 31, December 31, 2016 2015 Number Number Common stock of shares $ of shares $ Balance at beginning of year 62,849,936 1 64,010,087 1 Shares issued Treasury stock (1) (261,099 ) — (1,160,151 ) — Balance at end of year 62,588,837 1 62,849,936 1 (1) During 2016, the Company repurchased 304,915 shares through the Program (2015 – 1,210,932) and issued 43,816 shares (2015 – 50,781) 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, 2016 | |
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, 2016 2015 $ $ Balance at beginning of year 52 60 Additions 2 1 Environmental spending (5 ) (3 ) Accretion — 1 Effect of foreign currency exchange rate change 1 (7 ) Balance at end of year (1) 50 52 (1) At December 31, 2016, $15 million is shown in Trade and other payables (see Note 17) and $35 million is shown in Other liabilities and deferred credits (see Note 20). |
Anticipated Undiscounted Payments | At December 31, 2016, anticipated undiscounted payments in each of the next five years are as follows: 2017 2018 2019 2020 2021 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 15 6 4 1 2 66 94 |
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, 2016, were as follows: 2017 2018 2019 2020 2021 Thereafter Total $ $ $ $ $ $ $ Operating leases 25 23 18 16 13 38 133 Other commercial commitments 87 8 5 3 2 1 106 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2017 8,980,000 $ 28 35% 2018 5,085,000 $ 15 20% 2019 6,560,000 $ 20 26% 2020 5,750,000 $ 18 23% 2021 3,920,000 $ 12 15% (1) MMBTU: Millions of British thermal units |
Currency Values under Significant Contracts Pursuant to Currency Options Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2016 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 2017 CDN/USD Pulp and Paper 511 CDN 66% 1 USD = 1.3045 1 USD = 1.3570 USD/Euro Personal Care 55 USD 82% 1 Euro = 1.1336 1 Euro = 1.1336 Euro/USD Pulp and Paper 19 EUR 31% 1 Euro = 1.1370 1 Euro = 1.1370 2018 CDN/USD Pulp and Paper 225 CDN 29% 1 USD = 1.2951 1 USD = 1.3519 USD/Euro Personal Care 14 USD 20% 1 Euro = 1.1532 1 Euro = 1.1532 |
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, 2016 and December 31, 2015, 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: 2016 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 10 — 10 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 6 — 6 — (a) Other liabilities and deferred credits Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 21 — 21 — Other Instruments: Long-term debt 1,313 — 1,313 — (c) Long-term debt The net cumulative gain recorded in Accumulated other comprehensive loss relating to natural gas contracts is $3 million at December 31, 2016, of which $5 million will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2016. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases of $8 million at December 31, 2016, will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2016. Quoted prices in 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 6 — 6 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (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 Natural gas swap contracts 14 — 14 — (a) Trade and other payables Currency derivatives 10 — 10 — (a) Other liabilities and deferred credits 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 (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 3 inputs. 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, 2016 and December 31, 2015. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,281 million and $1,251 million at December 31, 2016 and December 31, 2015, respectively. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 2016 2015 2014 $ $ $ Sales Pulp and Paper 4,239 4,458 4,674 Personal Care 917 869 928 Total for reportable segments 5,156 5,327 5,602 Intersegment sales (58 ) (63 ) (39 ) Consolidated sales (1) 5,098 5,264 5,563 Depreciation and amortization of property, plant and equipment Pulp and Paper 284 297 319 Personal Care 64 62 65 Total for reportable segments 348 359 384 Impairment of property, plant and equipment - Pulp and Paper 29 77 4 Consolidated depreciation and amortization and impairment of property, plant and equipment 377 436 388 Operating income (loss) Pulp and Paper 217 270 352 Personal Care 57 61 49 Corporate (51 ) (43 ) (37 ) Consolidated operating income 223 288 364 Interest expense, net 66 132 103 Earnings before income taxes 157 156 261 Income tax expense (benefit) 29 14 (170 ) Net earnings 128 142 431 (1) In 2016 and 2015, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 11% (2015 – 10%) of the total sales. |
Consolidated Assets | December 31, December 31, 2016 2015 $ $ Segment assets Pulp and Paper 3,637 3,667 Personal Care 1,884 1,822 Total for reportable segments 5,521 5,489 Corporate 159 165 Consolidated assets 5,680 5,654 |
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, SEGMENT DATA (CONTINUED) 2016 2015 2014 $ $ $ Additions to property, plant and equipment Pulp and Paper 287 221 161 Personal Care 55 57 86 Total for reportable segments 342 278 247 Corporate 4 6 5 Consolidated additions to property, plant and equipment 346 284 252 Add: Change in payables on capital projects 1 5 (16 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 347 289 236 |
Long-Lived Assets | December 31, December 31, 2016 2015 $ $ Long-lived assets United States 2,589 2,566 Canada 642 640 Europe 752 769 3,983 3,975 |
Sales [Member] | |
Geographic Information on Sales | Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 $ $ $ Geographic information Sales United States 3,571 3,776 3,910 Canada 493 492 591 Europe 605 561 659 Asia 351 302 257 Other foreign countries 78 133 146 5,098 5,264 5,563 |
Supplemental Guarantor Financ60
Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings and Comprehensive Income (Loss) | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2016 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,203 2,040 (1,145 ) 5,098 Operating expenses Cost of sales, excluding depreciation and amortization — 3,638 1,542 (1,145 ) 4,035 Depreciation and amortization — 256 92 — 348 Selling, general and administrative 17 93 317 — 427 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 31 1 — 32 Other operating loss (income), net 1 (1 ) 4 — 4 18 4,046 1,956 (1,145 ) 4,875 Operating (loss) income (18 ) 157 84 — 223 Interest expense (income), net 65 50 (49 ) — 66 (Loss) earnings before income taxes (83 ) 107 133 — 157 Income tax (benefit) expense (43 ) 36 36 — 29 Share in earnings of equity accounted investees 168 97 — (265 ) — Net earnings 128 168 97 (265 ) 128 Other comprehensive income (loss) 2 (12 ) (35 ) 47 2 Comprehensive income 130 156 62 (218 ) 130 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE LOSS 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 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 (LOSS) 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 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 1 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 17 14 94 — 125 Receivables — 305 308 — 613 Inventories — 548 211 — 759 Prepaid expenses 15 19 6 — 40 Income and other taxes receivable — 16 15 — 31 Intercompany accounts 331 184 47 (562 ) — Total current assets 363 1,086 681 (562 ) 1,568 Property, plant and equipment, net — 2,000 825 — 2,825 Goodwill — 313 237 — 550 Intangible assets, net — 279 329 — 608 Investments in affiliates 3,976 2,678 — (6,654 ) — Intercompany long-term advances 6 80 1,411 (1,497 ) — Other assets 15 18 103 (7 ) 129 Total assets 4,360 6,454 3,586 (8,720 ) 5,680 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 12 — — 12 Trade and other payables 48 391 217 — 656 Intercompany accounts 136 115 311 (562 ) — Income and other taxes payable 16 — 6 — 22 Long-term debt due within one year 63 — — — 63 Total current liabilities 263 518 534 (562 ) 753 Long-term debt 841 299 78 — 1,218 Intercompany long-term loans 560 937 — (1,497 ) — Deferred income taxes and other — 556 126 (7 ) 675 Other liabilities and deferred credits 20 168 170 — 358 Shareholders' equity 2,676 3,976 2,678 (6,654 ) 2,676 Total liabilities and shareholders' equity 4,360 6,454 3,586 (8,720 ) 5,680 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 Property, plant and equipment, net — 2,018 817 — 2,835 Goodwill — 296 243 — 539 Intangible assets, net — 254 347 — 601 Investments in affiliates 8,005 2,050 — (10,055 ) — Intercompany long-term advances 6 88 621 (715 ) — Other assets 15 10 115 (15 ) 125 Total assets 8,847 10,454 2,704 (16,351 ) 5,654 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 901 301 8 — 1,210 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 8,847 10,454 2,704 (16,351 ) 5,654 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 168 97 (265 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,280 ) 4,149 203 265 337 Cash flows (used for) provided from operating activities (4,152 ) 4,317 300 — 465 Investing activities Additions to property, plant and equipment — (265 ) (82 ) — (347 ) Proceeds from disposals of property, plant and equipment and sale of business — — 1 — 1 Acquisition of businesses, net of cash acquired — (1 ) (45 ) — (46 ) Other — — 1 — 1 Cash flows used for investing activities — (266 ) (125 ) — (391 ) Financing activities Dividend payments (102 ) — — — (102 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 12 — — 12 Proceeds from receivables securitization facilities — — 140 — 140 Repayments of receivables securitization facilities — — (70 ) — (70 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,050 ) (223 ) 4,273 — Decrease in long-term advances to related parties 4,273 — — (4,273 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,120 (4,039 ) (154 ) — (73 ) Net (decrease) increase in cash and cash equivalents (32 ) 12 21 — 1 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 49 2 75 — 126 Cash and cash equivalents at end of year 17 14 94 — 125 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 (used for) 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 provided from (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 credit facility 50 — — — 50 Issuance of long-term debt — 300 — — 300 Repayments 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) increase 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 Year ended CASH FLOWS 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 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 credit facility (160 ) — — — (160 ) Proceeds from receivables securitization facilities — — 90 — 90 Repayments of receivables securitization facilities — — (129 ) — (129 ) Repayments 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 |
Interim Financial Results (Tabl
Interim Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Interim Financial Results | Interim Financial Results (Unaudited) (in millions of dollars, unless otherwise noted) 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,287 $ 1,267 $ 1,270 $ 1,274 $ 5,098 Operating income 18 (a) 39 (b) 92 (c) 74 (d) 223 Earnings before income taxes 1 24 75 57 157 Net earnings 4 18 59 47 128 Basic net earnings per common share 0.06 0.29 0.94 0.75 2.04 Diluted net earnings per common share 0.06 0.29 0.94 0.75 2.04 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,348 $ 1,310 $ 1,292 $ 1,314 $ 5,264 Operating income 71 (e) 62 (f) 61 (g) 94 (h) 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 (a) The operating income for the first Quarter of 2016 included closure and restructuring costs of $2 million related to our Pulp and Paper segment. The Company also incurred an additional $21 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 2016 included closure and restructuring costs of $21 million and an additional $3 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. (c) The operating income for the third Quarter of 2016 included closure and restructuring costs of $5 million related to our Pulp and Paper segment. The Company also incurred $5 million of closure and restructuring costs and an additional $5 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 2016 included closure and restructuring costs of $1 million related to our Personal Care segment and $(2) million related to our Pulp and Paper segment. (e) 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. (f) 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. (g) 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. (h) 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 $20 million of accelerated depreciation at its Ashdown, Arkansas mill, as part of the conversion to the fluff pulp line. |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated translation adjustment accounts | $ (278,000,000) | $ (271,000,000) |
LIFO inventories | 268,000,000 | 288,000,000 |
Excess amount of inventory if valued under FIFO instead of LIFO | $ 63,000,000 | $ 66,000,000 |
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 | 1,793,095 | |
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, depreciation period (in years) | 10 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation 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, depreciation period (in years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation 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, 2016 | |
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 |
Recent Accounting Pronounceme64
Recent Accounting Pronouncements - Additional Information (Detail) - Accounting Standards Update 2015-03 [Member] $ in Millions | Dec. 31, 2015USD ($) |
Change In Accounting Estimate [Line Items] | |
Other assets | $ (9) |
Long-term debt | $ (9) |
Acquisition of Businesses - Add
Acquisition of Businesses - Additional Information (Detail) € in Millions, $ in Millions | Oct. 01, 2016USD ($)RetailEmployees | Jan. 02, 2014USD ($)EmployeesFacility | Jan. 02, 2014EUR (€)EmployeesFacility | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Purchase price | $ 46 | $ 546 | |||
Home Delivery Incontinent Supplies Co. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition completion date | Oct. 1, 2016 | ||||
Acquisition percentage | 100.00% | ||||
Acquisition of business, number of employees | Employees | 240 | ||||
Purchase price | $ 52 | ||||
Cash acquired in acquisition | $ 3 | ||||
Home Delivery Incontinent Supplies Co. [Member] | Olivette, Missouri [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of retail locations acquired | Retail | 2 | ||||
Home Delivery Incontinent Supplies Co. [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition possible earn out payment | $ 10 | ||||
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 | |||
Purchase price | $ 546 | € 399 | |||
Cash acquired in acquisition | $ 46 | € 34 | |||
Number of facilities | Facility | 2 | 2 |
Acquisition of Businesses - Fai
Acquisition of Businesses - Fair Value of Assets Acquired - Home Delivery Incontinent Supplies Co (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Oct. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible assets | ||||
Goodwill | $ 550 | $ 539 | $ 567 | |
Home Delivery Incontinent Supplies Co. [Member] | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 4 | |||
Inventory | 4 | |||
Property, plant and equipment | 1 | |||
Intangible assets | ||||
Intangible assets | 34 | |||
Goodwill | 17 | |||
Deferred income tax assets | 2 | |||
Total assets | 62 | |||
Less: Liabilities | ||||
Trade and other payables | 10 | |||
Total liabilities | 10 | |||
Fair value of net assets acquired at the date of acquisition | 52 | |||
Home Delivery Incontinent Supplies Co. [Member] | Customer Relationships [Member] | ||||
Intangible assets | ||||
Intangible assets | 21 | |||
Home Delivery Incontinent Supplies Co. [Member] | Trade Names [Member] | ||||
Intangible assets | ||||
Intangible assets | $ 13 |
Acquisition of Businesses - F67
Acquisition of Businesses - Fair Value of Assets Acquired - Home Delivery Incontinent Supplies Co (Parenthetical) (Detail) | Oct. 01, 2016 |
Home Delivery Incontinent Supplies Co. [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful life of the finite lived intangible assets acquired | 10 years |
Acquisition of Businesses - F68
Acquisition of Businesses - Fair Value of Assets Acquired - Laboratorios Indas (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 02, 2014 |
Intangible assets | ||||
Goodwill | $ 550 | $ 539 | $ 567 | |
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 - F69
Acquisition of Businesses - Fair Value of Assets Acquired - Laboratorios Indas (Parenthetical) (Detail) - Customer Relationships [Member] | Jan. 02, 2014 | Dec. 31, 2016 |
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 |
Impairment of Property, Plant70
Impairment of Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Ashdown, Arkansas Pulp And Paper Mill-Conversion of Paper Machine [Member] | |||
Property Plant And Equipment [Line Items] | |||
Accelerated depreciation | $ 29 | $ 77 | $ 4 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of units | 426,079 | 310,303 | 350,076 |
Granted, Number of units | 295,504 | 219,453 | 175,815 |
Forfeited, Number of units | (28,523) | (21,918) | (33,076) |
Cancelled, Number of units | (101,124) | (60,768) | (89,622) |
Settled, Number of units | (74,655) | (20,991) | (92,890) |
Ending balance, Number of units | 517,281 | 426,079 | 310,303 |
Beginning balance, Weighted average grant date fair value | $ 46 | $ 45.52 | $ 42.60 |
Granted, Weighted average grant date fair value | 32.38 | 44.22 | 53.97 |
Forfeited, Weighted average grant date fair value | 39.81 | 45.52 | 45.29 |
Cancelled, Weighted average grant date fair value | 51.27 | 35.40 | 49.79 |
Settled, Weighted average grant date fair value | 35.97 | 51.48 | 46.49 |
Ending balance, Weighted average grant date fair value | $ 38.93 | $ 46 | $ 45.52 |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 196,786 | 164,879 | 130,045 |
Beginning balance, Weighted average grant date fair value | $ 44.21 | $ 44.80 | $ 41.46 |
Granted, Weighted average grant date fair value | 34.04 | 43.21 | 49.95 |
Forfeited, Weighted average grant date fair value | 39.69 | 44.78 | 44.37 |
Ending balance, Weighted average grant date fair value | $ 40.90 | $ 44.21 | $ 44.80 |
Beginning balance, Number of units | 346,966 | 314,220 | 374,414 |
Forfeited, Number of units | (17,884) | (12,464) | (29,230) |
Vested/Settled, Number of units | (107,198) | (119,669) | (161,009) |
Ending balance, Number of units | 418,670 | 346,966 | 314,220 |
Vested/Settled, Weighted average grant date fair value | $ 39.12 | $ 44.31 | $ 41.27 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 46,737 | 40,494 | 39,165 |
Granted, Weighted average grant date fair value | $ 37.43 | $ 39.92 | $ 44.25 |
Settled, Weighted average grant date fair value | $ 39.60 | $ 41.88 | $ 32.17 |
Beginning balance, Number of units | 289,460 | 262,721 | 271,742 |
Settled, Number of units | (15,123) | (13,755) | (48,186) |
Ending balance, Number of units | 321,074 | 289,460 | 262,721 |
Beginning balance, Weighted average grant date fair value | $ 28.20 | $ 27.11 | $ 25.54 |
Ending balance, Weighted average grant date fair value | $ 29.01 | $ 28.20 | $ 27.11 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Calculating Fair Value of Options Granted (Detail) - $ / shares | May 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Black-Scholes Based Option Pricing Model [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield | 2.80% | 3.78% | 3.22% | 2.62% |
Expected volatility | 33.00% | 30.00% | 32.00% | 32.00% |
Risk-free interest rate | 1.485% | 1.17% | 1.47% | 1.34% |
Expected life | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Strike price | $ 47.08 | $ 33.78 | $ 43.42 | $ 53.12 |
Monte Carlo Simulation [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield | 4.74% | 3.22% | 1.98% | |
Monte Carlo Simulation [Member] | One Year [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 24.00% | 34.00% | 31.00% | |
Monte Carlo Simulation [Member] | Three Years [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 30.00% | 30.00% | 31.00% | |
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% | |||
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% | ||
Monte Carlo Simulation [Member] | December 31, 2016 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.057% | 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 | 0.86% | 1.20% | ||
Monte Carlo Simulation [Member] | December 31, 2018 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.90% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 01, 2014 | Dec. 31, 2016 | 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 | $ 0 | $ 2 | ||
Aggregate intrinsic value, Options outstanding | 1 | ||||
Aggregate intrinsic value, Options exercisable | $ 1 | ||||
Closing stock price | $ 39.03 | $ 36.95 | $ 40.22 | ||
Stock-based compensation expense recognized | $ 16 | $ 10 | $ 9 | ||
Compensation costs not yet recognized | $ 17 | 16 | 14 | ||
Compensation costs not yet recognized, period of recognition | 26 months | ||||
Aggregate value of liability awards settled | $ 4 | $ 4 | $ 12 | ||
Total fair value of equity awards settled | $ 2 | ||||
Performance Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expected to be settled in shares | 231,071 | ||||
Expected to be settled in cash | 286,210 | ||||
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 | 167,280 | ||||
Expected to be settled in cash | 251,390 | ||||
Vesting period (in years) | 3 years | ||||
Granted, Weighted average grant date fair value | $ 34.04 | $ 43.21 | $ 49.95 | ||
Deferred Share Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based payment award, vested in period | 0 | 0 | 6,799 | ||
Granted, Weighted average grant date fair value | $ 37.43 | $ 39.92 | $ 44.25 | ||
Non-Qualified Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted, Weighted average grant date fair value | $ 10.52 | $ 5.95 | $ 8.96 | $ 11.60 | |
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options, Granted | 114,723 | 82,885 | 270,028 | ||
Aggregate intrinsic value, Options outstanding | $ 0.7 | $ 0.1 | $ 0.5 | $ 3.3 | |
Aggregate intrinsic value, Options exercisable | $ 0.1 | $ 0.1 | $ 0.3 | ||
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 | 0 | 672 | |||
Options outstanding and exercisable, weighted average exercise price | $ 41.46 |
Stock-Based Compensation - Su74
Stock-Based Compensation - Summary of Outstanding Awards, Options (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate intrinsic value, Exercised | $ 0 | $ 0 | $ 2 | |
Aggregate intrinsic value Outstanding, Ending | 1 | |||
Aggregate intrinsic value, Exercisable | $ 1 | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options Outstanding, Beginning | 451,302 | 418,123 | 465,674 | |
Number of options, Granted | 114,723 | 82,885 | 270,028 | |
Number of options, Exercised | (37,296) | (35,924) | (131,312) | |
Number of options, Forfeited/expired | (6,502) | (13,782) | (186,267) | |
Number of options Outstanding Ending | 522,227 | 451,302 | 418,123 | 465,674 |
Number of options, Exercisable | 286,011 | 176,315 | 93,027 | |
Weighted average exercise price Outstanding, Beginning Balance | $ 46.48 | $ 46.39 | $ 43.93 | |
Weighted average exercise price, Granted | 33.78 | 43.42 | 52.48 | |
Weighted average exercise price, Exercised | 41.11 | 43.13 | 37.02 | |
Weighted average exercise Price, Forfeited/expired | 20.89 | 34.08 | 55.67 | |
Weighted average exercise price Outstanding, Ending Balance | 44.39 | 46.48 | 46.39 | $ 43.93 |
Weighted average exercise price, Exercisable | $ 46.50 | $ 44.56 | $ 37.40 | |
Weighted average remaining life (in years), Outstanding | 4 years 6 months | 4 years 9 months 18 days | 4 years 7 months 6 days | 2 years 7 months 6 days |
Weighted average remaining life (in years), Granted | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days | |
Weighted average remaining life (in years), Options exercisable | 3 years 10 months 24 days | 3 years 10 months 24 days | 2 years | |
Aggregate intrinsic value Outstanding, Beginning | $ 0.1 | $ 0.5 | $ 3.3 | |
Aggregate intrinsic value Outstanding, Ending | 0.7 | 0.1 | 0.5 | $ 3.3 |
Aggregate intrinsic value, Exercisable | $ 0.1 | $ 0.1 | $ 0.3 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) | Apr. 30, 2014 | Dec. 31, 2016 |
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 that was effected through a stock dividend. Shareholders of record on June 10, 2014 received one additional share for every share they owned on that date. | |
Stock split ratio | 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 47 | $ 59 | $ 18 | $ 4 | $ 57 | $ 11 | $ 38 | $ 36 | $ 128 | $ 142 | $ 431 |
Weighted average number of common and exchangeable shares outstanding (millions) | 62.6 | 63.3 | 64.8 | ||||||||
Effect of dilutive securities (millions) | 0.1 | 0.1 | 0.1 | ||||||||
Weighted average number of diluted common and exchangeable shares outstanding (millions) | 62.7 | 63.4 | 64.9 | ||||||||
Basic net earnings per common share (in dollars) | $ 0.75 | $ 0.94 | $ 0.29 | $ 0.06 | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 2.04 | $ 2.24 | $ 6.65 |
Diluted net earnings per common share (in dollars) | $ 0.75 | $ 0.94 | $ 0.29 | $ 0.06 | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 2.04 | $ 2.24 | $ 6.64 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | 410,978 | 343,581 | 247,152 |
Pension Plans and Other Post-78
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) CAD in Millions | Jan. 01, 2017 | Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016CAD | Dec. 31, 2015CAD |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Pension expense | $ 37,000,000 | $ 32,000,000 | $ 28,000,000 | ||||
Accrued benefit obligation | 765,000,000 | 405,000,000 | |||||
Fair value of defined benefit plan assets with an accrued benefit obligation in excess of fair value of plan assets | $ 624,000,000 | $ 276,000,000 | |||||
Expected return on plan assets, percentage | 5.30% | 5.30% | 5.60% | ||||
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 | 2,034 | 2,034 | |||||
Restructured asset backed notes, value | $ 118,000,000 | $ 146,000,000 | CAD 158 | CAD 201 | |||
Increase in dollar value | 8,000,000 | CAD 10 | |||||
Asset backed commercial paper, repayments and sales | 40,000,000 | CAD 53 | |||||
Increase in dollar value | $ 4,000,000 | ||||||
Asset backed notes expected maturity period | 2017-01 | 2017-01 | |||||
Subsequent Event [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected return on plan assets, percentage | 5.40% | ||||||
United States Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Discount rate | 4.10% | 4.10% | |||||
Minimum number of years from issuance of private placement bonds | 2 years | 2 years | |||||
Pension Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2017 | $ 13,000,000 | ||||||
Plan contributions | 31,000,000 | $ 13,000,000 | $ 29,000,000 | ||||
Amount to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 | $ 13,000,000 | ||||||
Discount rate | 3.80% | 4.00% | 3.90% | 3.80% | 4.00% | ||
Expected return on plan assets, percentage | 5.30% | 5.30% | 5.60% | 6.30% | |||
Other Post-Retirement Benefit Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2017 | $ 4,000,000 | ||||||
Plan contributions | 5,000,000 | $ 5,000,000 | $ 5,000,000 | ||||
Amount to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2017 | $ 0 | ||||||
Discount rate | 3.90% | 4.10% | 3.90% | 3.90% | 4.10% | ||
Supplemental Nonqualified Unfunded Retirement Plan [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Accrued benefit obligation | $ 48,000,000 | $ 46,000,000 | |||||
Separately Restructured [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | $ 116,000,000 | CAD 154 | |||||
Period of completion of ABN restructuring under the Montreal Accord | 2009-01 | 2009-01 | |||||
Asset Backed Notes [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Restructured asset backed notes, value | $ 3,000,000 |
Pension Plans and Other Post-79
Pension Plans and Other Post-Retirement Benefit Plans - Change in Accrued Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at beginning of year | $ 1,509 | $ 1,723 | |
Service cost for the year | 31 | 34 | $ 35 |
Interest expense | 51 | 60 | 77 |
Plan participants' contributions | 6 | 6 | |
Actuarial loss (gain) | 46 | (25) | |
Plan amendments | 10 | ||
Benefits paid | (83) | (76) | |
Direct benefit payments | (4) | (3) | |
Settlement | (6) | (1) | |
Effect of foreign currency exchange rate change | 34 | (219) | |
Accrued benefit obligation at end of year | 1,584 | 1,509 | 1,723 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at beginning of year | 86 | 105 | |
Service cost for the year | 2 | 2 | 2 |
Interest expense | 4 | 4 | 5 |
Actuarial loss (gain) | 1 | (5) | |
Direct benefit payments | (5) | (5) | |
Effect of foreign currency exchange rate change | 2 | (15) | |
Accrued benefit obligation at end of year | $ 90 | $ 86 | $ 105 |
Pension Plans and Other Post-80
Pension Plans and Other Post-Retirement Benefit Plans - Change in Fair Value of Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,493 | ||
Settlement | (1) | $ 0 | $ 0 |
Fair value of assets at end of year | 1,546 | 1,493 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 1,493 | 1,721 | |
Actual return on plan assets | 73 | 63 | |
Employer contributions | 31 | 13 | 29 |
Plan participants' contributions | 6 | 6 | |
Benefits paid | (87) | (79) | |
Settlement | (6) | (1) | |
Effect of foreign currency exchange rate change | 36 | (230) | |
Fair value of assets at end of year | $ 1,546 | $ 1,493 | $ 1,721 |
Pension Plans and Other Post-81
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, 2016 | Dec. 31, 2015 | |
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 | 3.00% | 2.00% |
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% | 51.00% |
Insurance Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets | 5.00% | |
Fixed income and Equity, Percentage of plan assets | 5.00% | 6.00% |
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 | 8.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 18.00% | |
Fixed income and Equity, Percentage of plan assets | 13.00% | 15.00% |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 17.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 27.00% | |
Fixed income and Equity, Percentage of plan assets | 22.00% | 20.00% |
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 (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
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-83
Pension Plans and Other Post-Retirement Benefit Plans - Funded Status of Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at end of year | $ 1,546 | $ 1,493 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at end of year | (1,584) | (1,509) | $ (1,723) |
Fair value of assets at end of year | 1,546 | 1,493 | 1,721 |
Funded status | (38) | (16) | |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at end of year | (90) | (86) | $ (105) |
Funded status | $ (90) | $ (86) |
Pension Plans and Other Post-84
Pension Plans and Other Post-Retirement Benefit Plans - Amount Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (Note 15) | $ 103 | $ 113 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities and deferred credits (Note 20) | (141) | (129) |
Other assets (Note 15) | 103 | 113 |
Net amount recognized in the Consolidated Balance Sheets | (38) | (16) |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Trade and other payables (Note 17) | (4) | (4) |
Other liabilities and deferred credits (Note 20) | (86) | (82) |
Net amount recognized in the Consolidated Balance Sheets | $ (90) | $ (86) |
Pension Plans and Other Post-85
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credit | $ (10) | $ (1) | |
Amortization of prior year service cost | $ 5 | 3 | 3 |
Net (loss) gain | (53) | 2 | (8) |
Amortization of net actuarial loss | 6 | 7 | 28 |
Net amount recognized in other comprehensive (loss) income (pre-tax) | (42) | 2 | 22 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (loss) gain | (2) | 4 | (8) |
Amortization of net actuarial loss | 1 | ||
Net amount recognized in other comprehensive (loss) income (pre-tax) | $ (2) | $ 5 | $ (8) |
Pension Plans and Other Post-86
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | $ 31 | $ 34 | $ 35 |
Interest expense | 51 | 60 | 77 |
Expected return on plan assets | (80) | (86) | (101) |
Amortization of net actuarial loss | 5 | 7 | 9 |
Settlement loss | 1 | 19 | |
Amortization of prior year service cost | 5 | 3 | 3 |
Net periodic benefit cost | 13 | 18 | 42 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | 2 | 2 | 2 |
Interest expense | 4 | 4 | 5 |
Net periodic benefit cost | $ 6 | $ 6 | $ 7 |
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 (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | $ 1 | $ 19 |
Pension Plans and Other Post-88
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, Expected long-term rate of return on plan assets | 5.30% | 5.60% | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation, Discount rate | 3.80% | 4.00% | 3.90% |
Accrued benefit obligation, Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Net periodic benefit cost, Discount rate | 4.10% | 3.90% | 4.80% |
Net periodic benefit cost, Rate of compensation increase | 2.80% | 2.80% | 2.70% |
Net periodic benefit cost, Expected long-term rate of return on plan assets | 5.30% | 5.60% | 6.30% |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation, Discount rate | 3.90% | 4.10% | 3.90% |
Accrued benefit obligation, Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Net periodic benefit cost, Discount rate | 4.10% | 3.90% | 4.80% |
Net periodic benefit cost, Rate of compensation increase | 2.80% | 2.80% | 2.70% |
Pension Plans and Other Post-89
Pension Plans and Other Post-Retirement Benefit Plans - Effect of One Percent Change in Assumed Health Care Cost (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Impact on net periodic benefit cost for other post-retirement benefit plans, Increase of 1% | $ 1,000,000 |
Impact on accrued benefit obligation, Increase of 1% | 8,000,000 |
Impact on net periodic benefit cost for other post-retirement benefit plans, Decrease of 1% | 0 |
Impact on accrued benefit obligation, Decrease of 1% | $ (7,000,000) |
Pension Plans and Other Post-90
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1,546 | $ 1,493 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 566 | 572 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 893 | 825 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 87 | 96 | $ 23 |
Cash and Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 80 | 67 | |
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 | 80 | 67 | |
Asset Backed Notes [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 118 | 146 | |
Asset Backed Notes [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 115 | 136 | |
Asset Backed Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 3 | 10 | 15 |
Canadian Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 81 | 141 | |
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 | 81 | 141 | |
Canadian Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 3 | 3 | |
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 | 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 | 1 | |
Bond Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 585 | 466 | |
Bond Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 585 | 466 | |
Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 100 | 96 | |
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 | 100 | 96 | |
U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 77 | 37 | |
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 | 77 | 37 | |
International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 226 | 229 | |
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 | 226 | 229 | |
U.S. Stock Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 193 | 218 | |
U.S. Stock Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 193 | 218 | |
Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 84 | 86 | |
Insurance Contracts | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 84 | 86 | $ 8 |
Gain (Loss) on Derivative Contract [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | (1) | 4 | |
Gain (Loss) on Derivative Contract [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ (1) | $ 4 |
Pension Plans and Other Post-91
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1,546 | $ 1,493 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,546 | 1,493 | $ 1,721 |
Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 84 | 86 | |
Insurance Contracts | Minimum Guarantee Rate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 8 | 8 | |
Insurance Contracts | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 76 | 78 | |
Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 100 | 96 | |
Canadian Equities [Member] | Active Segregated Global Equity Portfolio [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 4 |
Pension Plans and Other Post-92
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,493 | ||
(Settlements)/Purchases | (1) | $ 0 | $ 0 |
Fair value of assets at end of year | 1,546 | 1,493 | |
Asset Backed Notes [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 146 | ||
Fair value of assets at end of year | 118 | 146 | |
Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 86 | ||
Fair value of assets at end of year | 84 | 86 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 96 | 23 | |
(Settlements)/Purchases | (12) | 75 | |
Return on plan assets | 1 | 4 | |
Effect of foreign currency exchange rate change | 2 | (6) | |
Fair value of assets at end of year | 87 | 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 | 10 | 15 | |
(Settlements)/Purchases | (7) | (4) | |
Return on plan assets | 1 | ||
Effect of foreign currency exchange rate change | (2) | ||
Fair value of assets at end of year | 3 | 10 | 15 |
Significant Unobservable Inputs (Level 3) [Member] | Insurance Contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 86 | 8 | |
(Settlements)/Purchases | (5) | 79 | |
Return on plan assets | 1 | 3 | |
Effect of foreign currency exchange rate change | 2 | (4) | |
Fair value of assets at end of year | $ 84 | $ 86 | $ 8 |
Pension Plans and Other Post-93
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, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 1,546 | $ 1,493 |
ABN Montreal Accord [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets | $ 3 | $ 4 |
Pension Plans and Other Post-94
Pension Plans and Other Post-Retirement Benefit Plans - Estimated Future Benefit Payments from Plans (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 102 |
2,018 | 100 |
2,019 | 102 |
2,020 | 102 |
2,021 | 102 |
2022-2026 | 515 |
Other Post-Retirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 5 |
2,021 | 5 |
2022-2026 | $ 24 |
Other Operating Loss (Income)95
Other Operating Loss (Income), Net - Components of Other Operating Loss (Income), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Expenses [Abstract] | |||
Alternative fuel tax credits | $ (18) | ||
Net gains on disposals of property, plant and equipment | $ (15) | ||
Bad debt expense | 5 | 2 | |
Environmental provision | $ 2 | 4 | 1 |
Foreign exchange loss (gain) | 6 | (3) | (1) |
Proceeds from insurance claims on machinery and equipment | (11) | ||
Other | (4) | 4 | (2) |
Other operating loss (income), net | $ 4 | $ (5) | $ (29) |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Banking And Thrift Interest [Abstract] | |||
Interest on long-term debt | $ 59 | $ 82 | $ 95 |
Premium paid on repurchase of long-term debt | 40 | ||
Reversal of fair value increment on long-term debt | (1) | ||
Interest on receivables securitization | 2 | 1 | 1 |
Interest on withdrawal liabilities for multiemployer plans | 3 | 4 | 3 |
Amortization of debt issuance costs and other | 2 | 6 | 4 |
Interest expense net | $ 66 | $ 132 | $ 103 |
Interest Expense, Net - Compo97
Interest Expense, Net - Components of Interest Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Banking And Thrift Interest [Abstract] | |||
Capitalized interest expense | $ 5 | $ 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. earnings | $ 69 | $ 26 | $ 86 | ||||||||
Foreign earnings | 88 | 130 | 175 | ||||||||
Earnings before income taxes and equity loss | $ 57 | $ 75 | $ 24 | $ 1 | $ 77 | $ (3) | $ 37 | $ 45 | $ 157 | $ 156 | $ 261 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State, Current | $ 10 | $ 61 | $ 20 |
U.S. Federal and State, Deferred | 1 | (78) | (213) |
Foreign, Current | 10 | 9 | 11 |
Foreign, Deferred | 8 | 22 | 12 |
Income tax expense (benefit) | $ 29 | $ 14 | $ (170) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||||
Statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Tax credit recorded for research and experimentation | $ 18,000,000 | $ 16,000,000 | $ 18,000,000 | ||
Uncertain tax positions | 3,000,000 | 3,000,000 | 3,000,000 | ||
Income tax (benefit) expense | 29,000,000 | 14,000,000 | (170,000,000) | ||
U.S. manufacturing deduction | 2,000,000 | 6,000,000 | 9,000,000 | ||
Alternative Fuel Tax Credits | (18,000,000) | ||||
Alternative Fuel Tax Credits ("AFTC") income, tax expense | 0 | ||||
Valuation allowance | 22,000,000 | 23,000,000 | |||
Foreign loss carryforwards for valuation allowance | 18,000,000 | ||||
Impacted tax expenses | (1,000,000) | (1,000,000) | 7,000,000 | ||
Gross unrecognized tax benefits | 43,000,000 | 41,000,000 | 48,000,000 | $ 259,000,000 | |
Accrued interest on uncertain tax positions | 1,000,000 | $ 1,000,000 | 4,000,000 | ||
Scenario Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Gross unrecognized tax benefits | $ 12,000,000 | ||||
Expires in 2032 [Member] | Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 1,000,000 | ||||
State Credits [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation allowance | $ 4,000,000 | ||||
Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforward expiry year | 2,032 | ||||
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 and Deduction Limitations [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 140,000,000 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax | $ 55 | $ 55 | $ 91 |
State and local income taxes, net of federal income tax benefit | 3 | 1 | 3 |
Foreign income tax rate differential | (14) | (16) | (18) |
Tax credits and special deductions | (18) | (16) | (18) |
Alternative fuel tax credit income | (6) | ||
Tax rate changes | (5) | (16) | |
Uncertain tax positions | 2 | 1 | (194) |
U.S. manufacturing deduction | (2) | (6) | (9) |
Functional currency differences | 1 | (5) | |
Valuation allowance on deferred tax assets | (1) | (1) | 7 |
Other | 4 | (5) | |
Income tax expense (benefit) | $ 29 | $ 14 | $ (170) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Accounting provisions | $ 62 | $ 57 |
Net operating loss carryforwards and other deductions | 43 | 48 |
Pension and other employee future benefit plans | 65 | 59 |
Inventory | 15 | 17 |
Tax credits | 25 | 25 |
Other | 16 | |
Gross deferred tax assets | 210 | 222 |
Valuation allowance | (22) | (23) |
Net deferred tax assets | 188 | 199 |
Property, plant and equipment | (648) | (647) |
Impact of foreign exchange on long-term debt and investments | (8) | (6) |
Intangible assets | (152) | (157) |
Other | (10) | |
Total deferred tax liabilities | (818) | (810) |
Net deferred tax liabilities | (630) | (611) |
Other assets (Note 15) | 2 | 2 |
Deferred income taxes and other | (632) | (613) |
Total | $ (630) | $ (611) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 41 | $ 48 | $ 259 |
Additions based on tax positions related to current year | 3 | 3 | 3 |
Additions for tax positions of prior years | 3 | 2 | 10 |
Reductions for tax positions of prior years | (2) | (1) | |
Reductions related to settlements with taxing authorities | (4) | (223) | |
Expirations of statutes of limitations | (3) | (7) | (4) |
Interest | 1 | 1 | 4 |
Foreign exchange impact | (1) | (1) | |
Balance at end of year | $ 43 | $ 41 | $ 48 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 413 | $ 432 |
Raw materials | 132 | 130 |
Operating and maintenance supplies | 214 | 204 |
Total inventories | $ 759 | $ 766 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill Roll Forward | ||
Balance at beginning of year | $ 539 | $ 567 |
Effect of foreign currency exchange rate change | (6) | (28) |
Balance at end of year | 550 | $ 539 |
Home Delivery Incontinent Supplies Co. [Member] | ||
Goodwill Roll Forward | ||
Goodwill acquired during period (Note 3) | $ 17 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment test date | October 1, 2016 | ||
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, 2016 | Dec. 31, 2015 | ||
Property Plant And Equipment [Line Items] | |||
Machinery and equipment | $ 7,408 | $ 7,255 | |
Buildings and improvements | 1,007 | 975 | |
Timberlands | [1] | 200 | 196 |
Assets under construction | 94 | 224 | |
Property, plant and equipment, gross | 8,709 | 8,650 | |
Less: Accumulated depreciation | 5,884 | 5,815 | |
Net property, plant and equipment | $ 2,825 | $ 2,835 | |
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 | ||
[1] | Amortization is calculated using the unit of production method. |
Property, Plant and Equipmen108
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 329 | $ 340 | $ 363 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 409 | $ 394 |
Accumulated amortization | (72) | (55) |
Intangible assets, net | 337 | 339 |
Total, Gross carrying amount | 680 | 656 |
Intangible assets, net of amortization | 608 | 601 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 4 | 4 |
Trade Names [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 225 | 215 |
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 | $ 36 | 37 |
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 | $ 3 | 3 |
Accumulated amortization | (1) | (1) |
Intangible assets, net | 2 | 2 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 369 | 354 |
Accumulated amortization | (60) | (46) |
Intangible assets, net | $ 309 | 308 |
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 | (3) | (2) |
Intangible assets, net | $ 5 | 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 | 28 |
Accumulated amortization | (8) | (6) |
Intangible assets, net | $ 20 | $ 22 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 19,000,000 | $ 19,000,000 | $ 21,000,000 |
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, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2017 | $ 21 |
Amortization expense related to intangible assets, 2018 | 20 |
Amortization expense related to intangible assets, 2019 | 20 |
Amortization expense related to intangible assets, 2020 | 20 |
Amortization expense related to intangible assets, 2021 | $ 20 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset - defined benefit pension plans (Note 7) | $ 103 | $ 113 |
Investment tax credits receivable | 4 | |
Unamortized debt issuance costs | 5 | 3 |
Deferred income tax assets (Note 10) | 2 | 2 |
Derivative financial instruments (Note 23) | 8 | 3 |
Other | 7 | 4 |
Other assets | $ 129 | $ 125 |
Closure and Restructuring Co113
Closure and Restructuring Costs and Liability - Additional Information (Detail) $ in Millions | Sep. 23, 2016Positiont | Mar. 31, 2016t | Dec. 10, 2014t | Oct. 13, 2014Employees | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | $ 5 | $ 21 | $ 32 | $ 4 | $ 28 | |||||||||||
Other costs | 26 | |||||||||||||||
Pension settlement | 1 | 0 | 0 | |||||||||||||
Provision for closure and restructuring costs | $ 7 | 7 | ||||||||||||||
Pulp and Paper [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | (2) | 5 | $ 2 | $ 1 | $ 1 | $ 1 | 31 | 3 | 27 | |||||||
Other costs | 26 | |||||||||||||||
Provision for closure and restructuring costs | 6 | 6 | ||||||||||||||
Personal Care [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | 1 | $ 1 | 1 | 1 | 1 | |||||||||||
Provision for closure and restructuring costs | 1 | 1 | ||||||||||||||
Previous and Ongoing Closures [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | 3 | 1 | $ 3 | |||||||||||||
Indianapolis, Indiana Converting [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | $ 2 | |||||||||||||||
Inventory obsolescence | 1 | |||||||||||||||
Number of employees reduced | Employees | 60 | |||||||||||||||
Plymouth, North Carolina Mill [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Expected number of positions eliminated | Position | 100 | |||||||||||||||
Production capacity of pulp machine | t | 380,000 | |||||||||||||||
Severance and termination costs | $ 5 | |||||||||||||||
Ashdown, Arkansas Mill [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Severance and termination costs | 1 | 3 | ||||||||||||||
Permanent reduction of annual uncoated freesheet production capacity | t | 364,000 | |||||||||||||||
Accelerated depreciation | 4 | 29 | $ 77 | |||||||||||||
Other costs | 26 | |||||||||||||||
Inventory obsolescence | $ 3 | |||||||||||||||
Ashdown, Arkansas Mill [Member] | Maximum [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Production capacity of pulp machine | t | 516,000 | |||||||||||||||
Multiemployer Pension Plans [Member] | ||||||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||||||
Multiemployer plans gain due to revision in estimated withdrawal liability | 4 | |||||||||||||||
Provision for the withdrawal liabilities | $ 50 | $ 50 |
Closure and Restructuring Co114
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | |||||||||||
Severance and termination costs | $ 9 | $ 4 | $ 5 | ||||||||
Inventory write-down | 4 | ||||||||||
Pension settlement and withdrawal liability | (3) | 19 | |||||||||
Fluff pulp conversion outage | 26 | ||||||||||
Closure and restructuring costs | $ 5 | $ 21 | 32 | 4 | 28 | ||||||
Pulp and Paper [Member] | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Severance and termination costs | 8 | 3 | 4 | ||||||||
Inventory write-down | 4 | ||||||||||
Pension settlement and withdrawal liability | (3) | 19 | |||||||||
Fluff pulp conversion outage | 26 | ||||||||||
Closure and restructuring costs | $ (2) | $ 5 | $ 2 | $ 1 | $ 1 | $ 1 | 31 | 3 | 27 | ||
Personal Care [Member] | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Severance and termination costs | 1 | 1 | 1 | ||||||||
Closure and restructuring costs | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Closure and Restructuring Co115
Closure and Restructuring Costs and Liability - Activity in Closure and Restructuring Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost And Reserve [Line Items] | |||||
Closure and restructuring costs (NOTE 16) | $ 5 | $ 21 | $ 32 | $ 4 | $ 28 |
Balance at end of year | 7 | ||||
Closure And Restructuring Liability [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Balance at beginning of year | 3 | 2 | |||
Closure and restructuring costs (NOTE 16) | 9 | 4 | |||
Payments | (5) | (3) | |||
Balance at end of year | $ 7 | $ 3 | $ 2 |
Trade and Other Payables - Comp
Trade and Other Payables - Components of Trade and Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 332 | $ 350 |
Payroll-related accruals | 160 | 160 |
Accrued interest | 16 | 18 |
Payables on capital projects | 13 | 16 |
Rebate accruals | 62 | 66 |
Liability - pension and other post-retirement benefit plans | 4 | 4 |
Liability - multiemployer plan withdrawal | 2 | 2 |
Provision for environment and other asset retirement obligations | 15 | 14 |
Closure and restructuring costs liability | 7 | 3 |
Derivative financial instruments | 11 | 53 |
Dividends payable | 26 | 25 |
Stock-based compensation - liability awards | 2 | 4 |
Other | 6 | 5 |
Trade and other payables | $ 656 | $ 720 |
Changes in Accumulated Other117
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (501) | $ (268) | |
Other comprehensive (loss) income before reclassifications | (19) | (266) | |
Amounts reclassified from Accumulated other comprehensive loss | 21 | 33 | |
Other comprehensive income (loss) | 2 | (233) | $ (203) |
Ending balance | (499) | (501) | (268) |
Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 4 | (8) | |
Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 8 | (40) | |
Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 16 | 7 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (7) | (223) | |
Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (39) | (2) | |
Net Investment Hedging [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (1) | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (30) | (15) | |
Other comprehensive (loss) income before reclassifications | 27 | (41) | |
Amounts reclassified from Accumulated other comprehensive loss | 14 | 26 | |
Other comprehensive income (loss) | 41 | (15) | |
Ending balance | 11 | (30) | (15) |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 4 | (8) | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 8 | (40) | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 16 | 7 | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Net Investment Hedging [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (1) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (190) | (192) | |
Other comprehensive (loss) income before reclassifications | (38) | (5) | |
Amounts reclassified from Accumulated other comprehensive loss | 7 | 7 | |
Other comprehensive income (loss) | (31) | 2 | |
Ending balance | (221) | (190) | (192) |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (38) | (5) | |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (10) | (13) | |
Other comprehensive (loss) income before reclassifications | (1) | 3 | |
Other comprehensive income (loss) | (1) | 3 | |
Ending balance | (11) | (10) | (13) |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (1) | 3 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (271) | (48) | |
Other comprehensive (loss) income before reclassifications | (7) | (223) | |
Other comprehensive income (loss) | (7) | (223) | |
Ending balance | (278) | (271) | $ (48) |
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | $ (7) | $ (223) |
Changes in Accumulated Other118
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Earnings before income taxes | $ 157 | $ 156 | $ 261 |
Tax expense | (29) | (14) | 170 |
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 | 24 | 44 | 12 |
Tax expense | (10) | (18) | (4) |
Net of tax | 14 | 26 | 8 |
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 | 12 | 16 | (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 | 12 | 28 | 16 |
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 | 5 | 3 | 22 |
Amortization of net actuarial loss | 6 | 7 | 9 |
Earnings before income taxes | 11 | 10 | 31 |
Tax expense | (4) | (3) | (9) |
Net of tax | $ 7 | $ 7 | $ 22 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Aug. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Revolving Credit Facility | $ 50,000,000 | $ 50,000,000 | ||
Securitization | 70,000,000 | |||
Capital lease obligations and other | 8,000,000 | 10,000,000 | ||
Long-term debt | 1,289,000,000 | 1,260,000,000 | ||
Less: Unamortized debt issuance costs | 8,000,000 | 9,000,000 | ||
Less: Due within one year | 63,000,000 | 41,000,000 | ||
Long-term debt, excluding current maturities | $ 1,218,000,000 | 1,210,000,000 | ||
9.5% Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Par Amount | $ 39,000,000 | |||
9.5% Notes [Member] | 2016 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,016 | |||
Par Amount | $ 39,000,000 | |||
Unsecured notes | 39,000,000 | |||
10.75% Notes [Member] | 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,017 | |||
Par Amount | $ 63,000,000 | |||
Unsecured notes | $ 63,000,000 | 63,000,000 | ||
4.4% Notes [Member] | 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,022 | |||
Par Amount | $ 300,000,000 | |||
Unsecured notes | $ 300,000,000 | 300,000,000 | ||
6.25% Notes [Member] | 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,042 | |||
Par Amount | $ 250,000,000 | |||
Unsecured notes | $ 249,000,000 | 249,000,000 | ||
6.75% Notes [Member] | 2044 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,044 | |||
Par Amount | $ 250,000,000 | |||
Unsecured notes | $ 249,000,000 | 249,000,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,021 | |||
Par Amount | $ 50,000,000 | |||
Securitization [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,019 | |||
Par Amount | $ 70,000,000 | |||
Revolving Credit Facility | $ 150,000,000 | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, Maturity | 2,025 | |||
Par Amount | $ 300,000,000 | $ 300,000,000 | ||
Unsecured notes | $ 300,000,000 | $ 300,000,000 | ||
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 120
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2016 | Aug. 01, 2016 | Dec. 31, 2015 |
9.5% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 9.50% | 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, 2016USD ($) |
Debt Disclosure [Abstract] | |
2017, Long-term debt | $ 63 |
2019, Long-term debt | 70 |
2021, Long-term debt | 50 |
Thereafter, Long-term debt | 1,100 |
Long-term debt | 1,283 |
Total payments, Long-term debt | 1,283 |
2017, Capital leases and other | 1 |
2018, Capital leases and other | 1 |
2019, Capital leases and other | 1 |
2020, Capital leases and other | 1 |
2021, Capital leases and other | 1 |
Thereafter, Capital leases and other | 6 |
Capital leases and other obligations repayment | 11 |
Less: Amounts representing interest, Capital leases and other | 3 |
Total payments, Capital leases and other | $ 8 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Aug. 20, 2015 | Jul. 20, 2015 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 18, 2016 | Aug. 01, 2016 | Aug. 15, 2015 | Oct. 03, 2014 |
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
Debt instrument, make-whole premium | $ 42,000,000 | |||||||||
Revolving credit facility/Receivables securitization facility | $ 50,000,000 | $ 50,000,000 | ||||||||
Borrowings | 70,000,000 | 0 | ||||||||
Letters of credit outstanding | 48,000,000 | 38,000,000 | ||||||||
Interest on receivables securitization | $ 2,000,000 | $ 1,000,000 | $ 1,000,000 | |||||||
Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | Aug. 18, 2021 | |||||||||
Maximum aggregate amount | $ 700,000,000 | $ 600,000,000 | ||||||||
Credit facility extendable term | 1 year | |||||||||
Debt Instrument Covenant Description | The Credit Agreement contains customary covenants and events of default for transactions of this type, 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 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2016, the Company was in compliance with these financial covenants, and $50 million was borrowed (December 31, 2015 – $50 million). | |||||||||
Credit Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Lender commitments | $ 400,000,000 | |||||||||
Leverage level | 375.00% | |||||||||
Leverage ratio upon certain material acquisition | 400.00% | |||||||||
Credit Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest coverage level | 300.00% | |||||||||
Amended Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maturity date of credit agreement before amendments | Oct. 3, 2019 | |||||||||
Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument principal amount | $ 70,000,000 | |||||||||
Revolving credit facility/Receivables securitization facility | 150,000,000 | |||||||||
Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument principal amount | $ 300,000,000 | $ 300,000,000 | ||||||||
Term loan agreement period | 10 years | 10 years | ||||||||
Debt Instrument 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, 2016, the Company was in compliance with these financial covenants | |||||||||
Term Loan [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 1.875% | |||||||||
Term Loan [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Leverage level | 375.00% | |||||||||
Term Loan [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest coverage level | 300.00% | |||||||||
9.5% Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument maturity date | Aug. 1, 2016 | |||||||||
Debt instrument principal amount | $ 39,000,000 | |||||||||
Debt instrument interest rate stated percentage | 9.50% | 9.50% | 9.50% | |||||||
9.5% Notes Due 2016 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 9.50% | |||||||||
Debt instrument redeemed | $ 55,000,000 | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 59.00% | |||||||||
10.75% Notes Due 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 10.75% | |||||||||
Debt instrument redeemed | $ 215,000,000 | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 77.00% | |||||||||
7.125% Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument principal amount | $ 167,000,000 | |||||||||
Debt instrument interest rate stated percentage | 7.125% |
Other Liabilities and Deferr123
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Liability - other post-retirement benefit plans (Note 7) | $ 86 | $ 82 |
Pension liability - defined benefit pension plans (Note 7) | 141 | 129 |
Pension liability - multiemployer plan withdrawal | 48 | 52 |
Provision for environmental and asset retirement obligations (Note 22) | 35 | 38 |
Stock-based compensation - liability awards | 17 | 13 |
Derivative financial instruments (Note 23) | 10 | 14 |
Other | 21 | 22 |
Other liabilities and deferred credits | $ 358 | $ 350 |
Other Liabilities and Deferr124
Other Liabilities and Deferred Credits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligations [Line Items] | |||
Present value of asset retirement obligations | $ 16 | $ 16 | $ 20 |
Undiscounted cash outflows | $ 60 | $ 61 | |
Asset retirement obligation, expected settlement date | Dec. 31, 2056 | ||
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 Deferr125
Other Liabilities and Deferred Credits - Domtar's Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | ||
Asset retirement obligations, beginning of year | $ 16 | $ 20 |
Revisions to estimated cash flows | (3) | |
Asset retirement obligation payments | (1) | (1) |
Accretion expense | 1 | 1 |
Effect of foreign currency exchange rate change | (1) | |
Asset retirement obligations, end of year | $ 16 | $ 16 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Feb. 21, 2017$ / shares | Jan. 17, 2017USD ($) | Oct. 17, 2016USD ($) | Jul. 15, 2016USD ($) | Apr. 15, 2016USD ($) | Oct. 15, 2015USD ($) | Jul. 15, 2015USD ($) | Apr. 15, 2015USD ($) | Jan. 15, 2015USD ($) | Apr. 30, 2014shares | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015$ / sharesshares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / 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 that was effected through a stock dividend. Shareholders of record on June 10, 2014 received one additional share for every share they owned on that date. | |||||||||||||||||||||
Stock split ratio | 2 | |||||||||||||||||||||
Common stock outstanding | 62,588,837 | 62,849,936 | 62,588,837 | 62,849,936 | 64,010,087 | 62,588,837 | ||||||||||||||||
Dividend per share | $ / shares | $ 0.415 | $ 0.415 | $ 0.415 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | $ 0.40 | ||||||||||||||
Dividends paid | $ | $ 26,000,000 | $ 26,000,000 | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | $ 26,000,000 | $ 25,000,000 | |||||||||||||||
Record date | Jan. 3, 2017 | Oct. 3, 2016 | Jul. 5, 2016 | Apr. 4, 2016 | Jan. 4, 2016 | Oct. 2, 2015 | Jul. 2, 2015 | Apr. 2, 2015 | ||||||||||||||
Payment date | Jan. 17, 2017 | Oct. 17, 2016 | Jul. 15, 2016 | Apr. 15, 2016 | Jan. 15, 2016 | Oct. 15, 2015 | Jul. 15, 2015 | Apr. 15, 2015 | ||||||||||||||
Stock repurchased, shares | 304,915 | 1,210,932 | 996,967 | 24,853,827 | ||||||||||||||||||
Stock repurchased, average price | $ / shares | $ 32.21 | $ 41.40 | $ 38.59 | $ 39.33 | ||||||||||||||||||
Stock repurchased, value | $ | $ 10,000,000 | $ 50,000,000 | $ 38,000,000 | $ 977,000,000 | ||||||||||||||||||
Treasury stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Preferred shares authorized to issue | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Common stock, shares authorized | 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 | $ 0.415 | |||||||||||||||||||||
Dividends paid | $ | $ 26,000,000 | |||||||||||||||||||||
Record date | Apr. 3, 2017 | |||||||||||||||||||||
Payment date | Apr. 17, 2017 | |||||||||||||||||||||
Declared date | Feb. 21, 2017 | |||||||||||||||||||||
Stock Split [Member] | ||||||||||||||||||||||
Shareholders' Equity [Line Items] | ||||||||||||||||||||||
Common stock outstanding | 32,500,000 | |||||||||||||||||||||
Common stock outstanding | 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) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Balance at beginning of year, Number of shares | 62,849,936 | 64,010,087 |
Treasury stock, Number of shares | (261,099) | (1,160,151) |
Treasury stock | $ 0 | $ 0 |
Balance at end of year, Number of shares | 62,588,837 | 62,849,936 |
Balance at beginning of year | $ 1 | $ 1 |
Balance at end of year | $ 1 | $ 1 |
Shareholders' Equity - Chang128
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Parenthetical) (Detail) - shares | 12 Months Ended | 79 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||||
Treasury stock, shares repurchased | 304,915 | 1,210,932 | 996,967 | 24,853,827 |
Treasury stock issues in conjunction with exercise of stock-based compensation awards | 43,816 | 50,781 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2014Affiliate | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016EUR (€) | May 26, 2016USD ($) | May 26, 2016EUR (€) | |
Commitments And Contingencies [Line Items] | ||||||||||||
Capital expenditures for environmental matters | $ 4,000,000 | $ 7,000,000 | $ 14,000,000 | |||||||||
Number of affiliated companies acquired | Affiliate | 2 | |||||||||||
Retained Purchase Price | 3,300,000 | € 3 | ||||||||||
Bank guarantees | 9,900,000 | € 9 | ||||||||||
Recoveries from retained purchase price and bank guarantees | $ 13,200,000 | € 12 | ||||||||||
Remaining recoveries from retained purchase price and bank guarantees | 1,700,000 | € 1.5 | ||||||||||
Operating lease expense | 28,000,000 | 28,000,000 | 32,000,000 | |||||||||
Indas and Affiliates [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Penalties for violations of competition laws | $ 14,900,000 | € 13.5 | ||||||||||
Environmental Matters | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Operating expenses for environmental matters | 65,000,000 | $ 70,000,000 | $ 68,000,000 | |||||||||
Spanish Competition Investigation [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Provision for liability | $ 14,700,000 | € 13.3 | $ 200,000 | € 0.2 | ||||||||
Indemnification Guarantee [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Provision for liability | $ 0 |
Commitments and Contingencie130
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of year | $ 52 | $ 60 |
Additions | 2 | 1 |
Environmental spending | (5) | (3) |
Accretion | 1 | |
Effect of foreign currency exchange rate change | 1 | (7) |
Balance at end of year | $ 50 | $ 52 |
Commitments and Contingencie131
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 50 | $ 52 | $ 60 |
Accounts Payable And Accrued Liabilities [Member] | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | 15 | ||
Other Noncurrent Liabilities [Member] | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 35 |
Commitments and Contingencie132
Commitments and Contingencies - Anticipated Undiscounted Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Environmental Remediation Obligations [Abstract] | |
2,017 | $ 15 |
2,018 | 6 |
2,019 | 4 |
2,020 | 1 |
2,021 | 2 |
Thereafter | 66 |
Total | $ 94 |
Commitments and Contingencie133
Commitments and Contingencies - Minimum Future Payments under Operating Leases and Other Commercial Commitments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Environmental Remediation Obligations [Abstract] | |
Operating leases, 2017 | $ 25 |
Operating leases, 2018 | 23 |
Operating leases, 2019 | 18 |
Operating leases, 2020 | 16 |
Operating leases, 2021 | 13 |
Thereafter | 38 |
Operating leases, Total | 133 |
Other commercial commitments, 2017 | 87 |
Other commercial commitments, 2018 | 8 |
Other commercial commitments, 2019 | 5 |
Other commercial commitments, 2020 | 3 |
Other commercial commitments, 2021 | 2 |
Other commercial commitments, Thereafter | 1 |
Other commercial commitments, Total | $ 106 |
Derivatives and Hedging Acti134
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | Aug. 20, 2015USD ($) | |
Derivative [Line Items] | |||||
Number of major customers | Customer | 1 | 1 | |||
Receivables from major customers | $ 74,000,000 | $ 78,000,000 | |||
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 24 months | ||||
Maximum [Member] | U S Subsidiaries [Member] | Euros [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 12 months | ||||
Maximum [Member] | U S Subsidiaries [Member] | British Pounds [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 12 months | ||||
Maximum [Member] | European Subsidiaries [Member] | US Dollars [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 18 months | ||||
Maximum [Member] | European Subsidiaries [Member] | Swedish Krona [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 18 months | ||||
Minimum [Member] | U S Subsidiaries [Member] | Euros [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 6 months | ||||
Minimum [Member] | U S Subsidiaries [Member] | British Pounds [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 6 months | ||||
Minimum [Member] | European Subsidiaries [Member] | US Dollars [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 12 months | ||||
Minimum [Member] | European Subsidiaries [Member] | Swedish Krona [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 12 months | ||||
10.75% Notes Due 2017 [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument interest rate stated percentage | 10.75% | ||||
Debt instrument redeemed | $ 215,000,000 | ||||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [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 | ||
Net cumulative gain recorded in accumulated other comprehensive loss | $ 3,000,000 | ||||
Recognition of OCI in Cost of sales | 12 months | ||||
Natural Gas Swap Contracts [Member] | Cost of Sale [Member] | |||||
Derivative [Line Items] | |||||
Net cumulative gain recorded in accumulated other comprehensive loss | $ 5,000,000 | ||||
Foreign Currency Investment [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 3 years | ||||
Currency Derivatives [Member] | |||||
Derivative [Line Items] | |||||
Earnings hedge ineffectiveness | $ 0 | $ 0 | 0 | ||
Net cumulative gain recorded in accumulated other comprehensive loss | $ 8,000,000 | ||||
Recognition of OCI in Cost of sales | 12 months | ||||
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 | ||||
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% | 12.00% |
Derivatives and Hedging Acti135
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Dec. 31, 2016USD ($)MMBTU |
2017 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 8,980,000 |
Notional contractual value under derivative contracts | $ | $ 28,000,000 |
Percentage of forecasted purchases under derivative contracts | 35.00% |
2018 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 5,085,000 |
Notional contractual value under derivative contracts | $ | $ 15,000,000 |
Percentage of forecasted purchases under derivative contracts | 20.00% |
2019 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 6,560,000 |
Notional contractual value under derivative contracts | $ | $ 20,000,000 |
Percentage of forecasted purchases under derivative contracts | 26.00% |
2020 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 5,750,000 |
Notional contractual value under derivative contracts | $ | $ 18,000,000 |
Percentage of forecasted purchases under derivative contracts | 23.00% |
2021 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 3,920,000 |
Notional contractual value under derivative contracts | $ | $ 12,000,000 |
Percentage of forecasted purchases under derivative contracts | 15.00% |
Derivatives and Hedging Acti136
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member] | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016CAD | |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2017 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | CAD | CAD 511,000,000 | ||
Percentage of forecasted net exposures under contracts | 66.00% | ||
Currency exposure hedged, Average Protection rate | 1.3045 | 1.3045 | 1.3045 |
Currency exposure hedged, Average Obligation rate | 1.3570 | 1.3570 | 1.3570 |
Pulp and Paper [Member] | Euro/USD Denominated Notional Contractual Value For 2017 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | € | € 19,000,000 | ||
Percentage of forecasted net exposures under contracts | 31.00% | ||
Currency exposure hedged, Average Protection rate | 1.1370 | 1.1370 | 1.1370 |
Currency exposure hedged, Average Obligation rate | 1.1370 | 1.1370 | 1.1370 |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2018 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | CAD | CAD 225,000,000 | ||
Percentage of forecasted net exposures under contracts | 29.00% | ||
Currency exposure hedged, Average Protection rate | 1.2951 | 1.2951 | 1.2951 |
Currency exposure hedged, Average Obligation rate | 1.3519 | 1.3519 | 1.3519 |
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2017 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | $ | $ 55,000,000 | ||
Percentage of forecasted net exposures under contracts | 82.00% | ||
Currency exposure hedged, Average Protection rate | 1.1336 | 1.1336 | 1.1336 |
Currency exposure hedged, Average Obligation rate | 1.1336 | 1.1336 | 1.1336 |
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2018 [Member] | |||
Derivative [Line Items] | |||
Notional contractual value | $ | $ 14,000,000 | ||
Percentage of forecasted net exposures under contracts | 20.00% | ||
Currency exposure hedged, Average Protection rate | 1.1532 | 1.1532 | 1.1532 |
Currency exposure hedged, Average Obligation rate | 1.1532 | 1.1532 | 1.1532 |
Derivatives and Hedging Acti137
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Total Assets | $ 32 | $ 10 |
Total Liabilities | 21 | 67 |
Long-term debt | 1,313 | 1,261 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Asset backed notes ("ABN") | 1 | |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 18 | 6 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 2 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 10 | 39 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 6 | 10 |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 1 |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 1 |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 14 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 4 | 4 |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 32 | 10 |
Total Liabilities | 21 | 67 |
Long-term debt | 1,313 | 1,261 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 18 | 6 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 2 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 10 | 39 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 6 | 10 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 1 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 1 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 14 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 4 | 4 |
Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Asset backed notes ("ABN") | $ 1 |
Derivatives and Hedging Acti138
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 1,281 | $ 1,251 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,274 | $ 1,270 | $ 1,267 | $ 1,287 | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 5,098 | $ 5,264 | $ 5,563 |
Depreciation and amortization of property, plant and equipment | 348 | 359 | 384 | ||||||||
Impairment of property, plant and equipment | 29 | 77 | 4 | ||||||||
Consolidated depreciation and amortization and impairment of property, plant and equipment | 377 | 436 | 388 | ||||||||
Consolidated operating income (loss) | 74 | 92 | 39 | 18 | 94 | 61 | 62 | 71 | 223 | 288 | 364 |
Interest expense, net | 66 | 132 | 103 | ||||||||
Earnings before income taxes | 157 | 156 | 261 | ||||||||
Income tax expense (benefit) (NOTE 10) | 29 | 14 | (170) | ||||||||
Net earnings | $ 47 | $ 59 | $ 18 | $ 4 | $ 57 | $ 11 | $ 38 | $ 36 | 128 | 142 | 431 |
Pulp and Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization of property, plant and equipment | 284 | 297 | 319 | ||||||||
Impairment of property, plant and equipment | 29 | 77 | 4 | ||||||||
Personal Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization of property, plant and equipment | 64 | 62 | 65 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,156 | 5,327 | 5,602 | ||||||||
Operating Segments [Member] | Pulp and Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,239 | 4,458 | 4,674 | ||||||||
Consolidated operating income (loss) | 217 | 270 | 352 | ||||||||
Operating Segments [Member] | Personal Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 917 | 869 | 928 | ||||||||
Consolidated operating income (loss) | 57 | 61 | 49 | ||||||||
Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (58) | (63) | (39) | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income (loss) | $ (51) | $ (43) | $ (37) |
Segment Disclosures - Analys141
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Customer Concentration Risk [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of total sales represented by Company's largest customers | 11.00% | 10.00% |
Segment Disclosures - Consolida
Segment Disclosures - Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 5,680 | $ 5,654 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 5,521 | 5,489 |
Operating Segments [Member] | Pulp and Paper [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 3,637 | 3,667 |
Operating Segments [Member] | Personal Care [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 1,884 | 1,822 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 159 | $ 165 |
Segment Disclosures - Additions
Segment Disclosures - Additions to Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 346 | $ 284 | $ 252 |
Add: Change in payables on capital projects | 1 | 5 | (16) |
Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows | 347 | 289 | 236 |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 342 | 278 | 247 |
Operating Segments [Member] | Pulp and Paper [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 287 | 221 | 161 |
Operating Segments [Member] | Personal Care [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 55 | 57 | 86 |
Corporate [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 4 | $ 6 | $ 5 |
Segment Disclosures - Geographi
Segment Disclosures - Geographic Information on Sales (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | $ 1,274 | $ 1,270 | $ 1,267 | $ 1,287 | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 5,098 | $ 5,264 | $ 5,563 |
United States [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 3,571 | 3,776 | 3,910 | ||||||||
Canada [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 493 | 492 | 591 | ||||||||
Europe [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 605 | 561 | 659 | ||||||||
Asia [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | 351 | 302 | 257 | ||||||||
Other Foreign Countries [Member] | |||||||||||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||||||||||
Sales | $ 78 | $ 133 | $ 146 |
Segment Disclosures - Long-Live
Segment Disclosures - Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 3,983 | $ 3,975 |
United States [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 2,589 | 2,566 |
Canada [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 642 | 640 |
Europe [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 752 | $ 769 |
Supplemental Guarantor Finan146
Supplemental Guarantor Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
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 Finan147
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings and Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | $ 1,274 | $ 1,270 | $ 1,267 | $ 1,287 | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 5,098 | $ 5,264 | $ 5,563 |
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 4,035 | 4,147 | 4,396 | ||||||||
Depreciation and amortization | 348 | 359 | 384 | ||||||||
Selling, general and administrative | 427 | 394 | 416 | ||||||||
Impairment of property, plant and equipment | 29 | 77 | 4 | ||||||||
Closure and restructuring costs | 5 | 21 | 32 | 4 | 28 | ||||||
Other operating loss (income), net | 4 | (5) | (29) | ||||||||
Operating expenses | 4,875 | 4,976 | 5,199 | ||||||||
Operating income | 74 | 92 | 39 | 18 | 94 | 61 | 62 | 71 | 223 | 288 | 364 |
Interest expense, net | 66 | 132 | 103 | ||||||||
Earnings before income taxes and equity loss | 57 | 75 | 24 | 1 | 77 | (3) | 37 | 45 | 157 | 156 | 261 |
Income tax (benefit) expense | 29 | 14 | (170) | ||||||||
Net earnings | $ 47 | $ 59 | $ 18 | $ 4 | $ 57 | $ 11 | $ 38 | $ 36 | 128 | 142 | 431 |
Other comprehensive income (loss) | 2 | (233) | (203) | ||||||||
Comprehensive income (loss) | 130 | (91) | 228 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | (1,145) | (1,152) | (1,127) | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | (1,145) | (1,152) | (1,127) | ||||||||
Operating expenses | (1,145) | (1,152) | (1,127) | ||||||||
Share in earnings of equity accounted investees | (265) | (338) | (679) | ||||||||
Net earnings | (265) | (338) | (679) | ||||||||
Other comprehensive income (loss) | 47 | 450 | 362 | ||||||||
Comprehensive income (loss) | (218) | 112 | (317) | ||||||||
Parent [Member] | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 17 | 11 | 29 | ||||||||
Other operating loss (income), net | 1 | 5 | 2 | ||||||||
Operating expenses | 18 | 16 | 31 | ||||||||
Operating income | (18) | (16) | (31) | ||||||||
Interest expense, net | 65 | 131 | 101 | ||||||||
Earnings before income taxes and equity loss | (83) | (147) | (132) | ||||||||
Income tax (benefit) expense | (43) | (63) | (51) | ||||||||
Share in earnings of equity accounted investees | 168 | 226 | 512 | ||||||||
Net earnings | 128 | 142 | 431 | ||||||||
Other comprehensive income (loss) | 2 | (233) | (203) | ||||||||
Comprehensive income (loss) | 130 | (91) | 228 | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 4,203 | 4,346 | 4,440 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 3,638 | 3,726 | 3,762 | ||||||||
Depreciation and amortization | 256 | 256 | 264 | ||||||||
Selling, general and administrative | 93 | 105 | 209 | ||||||||
Impairment of property, plant and equipment | 29 | 77 | 4 | ||||||||
Closure and restructuring costs | 31 | 3 | 7 | ||||||||
Other operating loss (income), net | (1) | (3) | (26) | ||||||||
Operating expenses | 4,046 | 4,164 | 4,220 | ||||||||
Operating income | 157 | 182 | 220 | ||||||||
Interest expense, net | 50 | 30 | 26 | ||||||||
Earnings before income taxes and equity loss | 107 | 152 | 194 | ||||||||
Income tax (benefit) expense | 36 | 38 | (151) | ||||||||
Share in earnings of equity accounted investees | 97 | 112 | 167 | ||||||||
Net earnings | 168 | 226 | 512 | ||||||||
Other comprehensive income (loss) | (12) | (235) | (194) | ||||||||
Comprehensive income (loss) | 156 | (9) | 318 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 2,040 | 2,070 | 2,250 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 1,542 | 1,573 | 1,761 | ||||||||
Depreciation and amortization | 92 | 103 | 120 | ||||||||
Selling, general and administrative | 317 | 278 | 178 | ||||||||
Closure and restructuring costs | 1 | 1 | 21 | ||||||||
Other operating loss (income), net | 4 | (7) | (5) | ||||||||
Operating expenses | 1,956 | 1,948 | 2,075 | ||||||||
Operating income | 84 | 122 | 175 | ||||||||
Interest expense, net | (49) | (29) | (24) | ||||||||
Earnings before income taxes and equity loss | 133 | 151 | 199 | ||||||||
Income tax (benefit) expense | 36 | 39 | 32 | ||||||||
Net earnings | 97 | 112 | 167 | ||||||||
Other comprehensive income (loss) | (35) | (215) | (168) | ||||||||
Comprehensive income (loss) | $ 62 | $ (103) | $ (1) |
Supplemental Guarantor Finan148
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 125 | $ 126 | $ 174 | $ 655 |
Receivables | 613 | 627 | ||
Inventories | 759 | 766 | ||
Prepaid expenses | 40 | 21 | ||
Income and other taxes receivable | 31 | 14 | ||
Total current assets | 1,568 | 1,554 | ||
Property, plant and equipment, net | 2,825 | 2,835 | ||
Goodwill | 550 | 539 | 567 | |
Intangible assets, net | 608 | 601 | ||
Other assets | 129 | 125 | ||
Total assets | 5,680 | 5,654 | ||
Current liabilities | ||||
Bank indebtedness | 12 | |||
Trade and other payables | 656 | 720 | ||
Income and other taxes payable | 22 | 27 | ||
Long-term debt due within one year | 63 | 41 | ||
Total current liabilities | 753 | 788 | ||
Long-term debt | 1,218 | 1,210 | ||
Deferred income taxes and other | 675 | 654 | ||
Other liabilities and deferred credits (NOTE 20) | 358 | 350 | ||
Shareholders' equity | 2,676 | 2,652 | 2,890 | 2,782 |
Total liabilities and shareholders' equity | 5,680 | 5,654 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Income and other taxes receivable | (10) | |||
Intercompany accounts | (562) | (5,556) | ||
Total current assets | (562) | (5,566) | ||
Investments in affiliates | (6,654) | (10,055) | ||
Intercompany long-term advances | (1,497) | (715) | ||
Other assets | (7) | (15) | ||
Total assets | (8,720) | (16,351) | ||
Current liabilities | ||||
Intercompany accounts | (562) | (5,556) | ||
Income and other taxes payable | (10) | |||
Total current liabilities | (562) | (5,566) | ||
Intercompany long-term loans | (1,497) | (715) | ||
Deferred income taxes and other | (7) | (12) | ||
Other liabilities and deferred credits (NOTE 20) | (3) | |||
Shareholders' equity | (6,654) | (10,055) | ||
Total liabilities and shareholders' equity | (8,720) | (16,351) | ||
Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 17 | 49 | 79 | 439 |
Prepaid expenses | 15 | 8 | ||
Intercompany accounts | 331 | 764 | ||
Total current assets | 363 | 821 | ||
Investments in affiliates | 3,976 | 8,005 | ||
Intercompany long-term advances | 6 | 6 | ||
Other assets | 15 | 15 | ||
Total assets | 4,360 | 8,847 | ||
Current liabilities | ||||
Trade and other payables | 48 | 61 | ||
Intercompany accounts | 136 | 4,685 | ||
Income and other taxes payable | 16 | 4 | ||
Long-term debt due within one year | 63 | 38 | ||
Total current liabilities | 263 | 4,788 | ||
Long-term debt | 841 | 901 | ||
Intercompany long-term loans | 560 | 490 | ||
Other liabilities and deferred credits (NOTE 20) | 20 | 16 | ||
Shareholders' equity | 2,676 | 2,652 | ||
Total liabilities and shareholders' equity | 4,360 | 8,847 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 14 | 2 | 18 | 22 |
Receivables | 305 | 384 | ||
Inventories | 548 | 556 | ||
Prepaid expenses | 19 | 7 | ||
Income and other taxes receivable | 16 | 13 | ||
Intercompany accounts | 184 | 4,776 | ||
Total current assets | 1,086 | 5,738 | ||
Property, plant and equipment, net | 2,000 | 2,018 | ||
Goodwill | 313 | 296 | ||
Intangible assets, net | 279 | 254 | ||
Investments in affiliates | 2,678 | 2,050 | ||
Intercompany long-term advances | 80 | 88 | ||
Other assets | 18 | 10 | ||
Total assets | 6,454 | 10,454 | ||
Current liabilities | ||||
Bank indebtedness | 12 | |||
Trade and other payables | 391 | 456 | ||
Intercompany accounts | 115 | 722 | ||
Income and other taxes payable | 24 | |||
Long-term debt due within one year | 1 | |||
Total current liabilities | 518 | 1,203 | ||
Long-term debt | 299 | 301 | ||
Intercompany long-term loans | 937 | 225 | ||
Deferred income taxes and other | 556 | 535 | ||
Other liabilities and deferred credits (NOTE 20) | 168 | 185 | ||
Shareholders' equity | 3,976 | 8,005 | ||
Total liabilities and shareholders' equity | 6,454 | 10,454 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 94 | 75 | $ 77 | $ 194 |
Receivables | 308 | 243 | ||
Inventories | 211 | 210 | ||
Prepaid expenses | 6 | 6 | ||
Income and other taxes receivable | 15 | 11 | ||
Intercompany accounts | 47 | 16 | ||
Total current assets | 681 | 561 | ||
Property, plant and equipment, net | 825 | 817 | ||
Goodwill | 237 | 243 | ||
Intangible assets, net | 329 | 347 | ||
Intercompany long-term advances | 1,411 | 621 | ||
Other assets | 103 | 115 | ||
Total assets | 3,586 | 2,704 | ||
Current liabilities | ||||
Trade and other payables | 217 | 203 | ||
Intercompany accounts | 311 | 149 | ||
Income and other taxes payable | 6 | 9 | ||
Long-term debt due within one year | 2 | |||
Total current liabilities | 534 | 363 | ||
Long-term debt | 78 | 8 | ||
Deferred income taxes and other | 126 | 131 | ||
Other liabilities and deferred credits (NOTE 20) | 170 | 152 | ||
Shareholders' equity | 2,678 | 2,050 | ||
Total liabilities and shareholders' equity | $ 3,586 | $ 2,704 |
Supplemental Guarantor Finan149
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||||||||||
Net earnings | $ 47 | $ 59 | $ 18 | $ 4 | $ 57 | $ 11 | $ 38 | $ 36 | $ 128 | $ 142 | $ 431 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 337 | 311 | 203 | ||||||||
Cash flows from operating activities | 465 | 453 | 634 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (347) | (289) | (236) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 1 | 36 | 1 | ||||||||
Acquisition of businesses, net of cash acquired | (46) | (546) | |||||||||
Other | 1 | 9 | (5) | ||||||||
Cash flows used for investing activities | (391) | (244) | (786) | ||||||||
Financing activities | |||||||||||
Dividend payments | (102) | (100) | (84) | ||||||||
Stock repurchase | (10) | (50) | (38) | ||||||||
Net change in bank indebtedness | 12 | (11) | (6) | ||||||||
Change of revolving credit facility | 50 | (160) | |||||||||
Proceeds from receivables securitization facility | 140 | 90 | |||||||||
Repayments of receivables securitization facility | (70) | (129) | |||||||||
Issuance of long-term debt | 300 | ||||||||||
Repayments of long-term debt | (40) | (439) | (4) | ||||||||
Other | (3) | 1 | 5 | ||||||||
Cash flows provided from (used for) financing activities | (73) | (249) | (326) | ||||||||
Net increase (decrease) in cash and cash equivalents | 1 | (40) | (478) | ||||||||
Impact of foreign exchange on cash | (2) | (8) | (3) | ||||||||
Cash and cash equivalents at beginning of year | 126 | 174 | 126 | 174 | 655 | ||||||
Cash and cash equivalents at end of year | 125 | 126 | 125 | 126 | 174 | ||||||
Consolidating Adjustments [Member] | |||||||||||
Operating activities | |||||||||||
Net earnings | (265) | (338) | (679) | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 265 | 338 | 679 | ||||||||
Financing activities | |||||||||||
Increase in long-term advances to related parties | 4,273 | 227 | 292 | ||||||||
Decrease in long-term advances to related parties | (4,273) | (227) | (292) | ||||||||
Parent [Member] | |||||||||||
Operating activities | |||||||||||
Net earnings | 128 | 142 | 431 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (4,280) | 134 | (220) | ||||||||
Cash flows from operating activities | (4,152) | 276 | 211 | ||||||||
Investing activities | |||||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 1 | ||||||||||
Cash flows used for investing activities | 1 | ||||||||||
Financing activities | |||||||||||
Dividend payments | (102) | (100) | (84) | ||||||||
Stock repurchase | (10) | (50) | (38) | ||||||||
Net change in bank indebtedness | (1) | ||||||||||
Change of revolving credit facility | 50 | (160) | |||||||||
Repayments of long-term debt | (38) | (436) | |||||||||
Increase in long-term advances to related parties | (292) | ||||||||||
Decrease in long-term advances to related parties | 4,273 | 227 | |||||||||
Other | (3) | 2 | 4 | ||||||||
Cash flows provided from (used for) financing activities | 4,120 | (307) | (571) | ||||||||
Net increase (decrease) in cash and cash equivalents | (32) | (30) | (360) | ||||||||
Cash and cash equivalents at beginning of year | 49 | 79 | 49 | 79 | 439 | ||||||
Cash and cash equivalents at end of year | 17 | 49 | 17 | 49 | 79 | ||||||
Guarantor Subsidiaries [Member] | |||||||||||
Operating activities | |||||||||||
Net earnings | 168 | 226 | 512 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 4,149 | (250) | (380) | ||||||||
Cash flows from operating activities | 4,317 | (24) | 132 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (265) | (210) | (139) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 7 | ||||||||||
Acquisition of businesses, net of cash acquired | (1) | ||||||||||
Cash flows used for investing activities | (266) | (203) | (139) | ||||||||
Financing activities | |||||||||||
Net change in bank indebtedness | 12 | (11) | (4) | ||||||||
Issuance of long-term debt | 300 | ||||||||||
Repayments of long-term debt | (1) | (2) | (3) | ||||||||
Increase in long-term advances to related parties | (4,050) | (75) | |||||||||
Decrease in long-term advances to related parties | 10 | ||||||||||
Other | (1) | ||||||||||
Cash flows provided from (used for) financing activities | (4,039) | 211 | 3 | ||||||||
Net increase (decrease) in cash and cash equivalents | 12 | (16) | (4) | ||||||||
Cash and cash equivalents at beginning of year | 2 | 18 | 2 | 18 | 22 | ||||||
Cash and cash equivalents at end of year | 14 | 2 | 14 | 2 | 18 | ||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Operating activities | |||||||||||
Net earnings | 97 | 112 | 167 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 203 | 89 | 124 | ||||||||
Cash flows from operating activities | 300 | 201 | 291 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (82) | (79) | (97) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 1 | 28 | 1 | ||||||||
Acquisition of businesses, net of cash acquired | (45) | (546) | |||||||||
Other | 1 | 9 | (5) | ||||||||
Cash flows used for investing activities | (125) | (42) | (647) | ||||||||
Financing activities | |||||||||||
Net change in bank indebtedness | (1) | ||||||||||
Proceeds from receivables securitization facility | 140 | 90 | |||||||||
Repayments of receivables securitization facility | (70) | (129) | |||||||||
Repayments of long-term debt | (1) | (1) | (1) | ||||||||
Increase in long-term advances to related parties | (223) | (152) | |||||||||
Decrease in long-term advances to related parties | 282 | ||||||||||
Other | 1 | ||||||||||
Cash flows provided from (used for) financing activities | (154) | (153) | 242 | ||||||||
Net increase (decrease) in cash and cash equivalents | 21 | 6 | (114) | ||||||||
Impact of foreign exchange on cash | (2) | (8) | (3) | ||||||||
Cash and cash equivalents at beginning of year | $ 75 | $ 77 | 75 | 77 | 194 | ||||||
Cash and cash equivalents at end of year | $ 94 | $ 75 | $ 94 | $ 75 | $ 77 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 1,274 | $ 1,270 | $ 1,267 | $ 1,287 | $ 1,314 | $ 1,292 | $ 1,310 | $ 1,348 | $ 5,098 | $ 5,264 | $ 5,563 |
Operating income | 74 | 92 | 39 | 18 | 94 | 61 | 62 | 71 | 223 | 288 | 364 |
Earnings (loss) before income taxes | 57 | 75 | 24 | 1 | 77 | (3) | 37 | 45 | 157 | 156 | 261 |
Net earnings | $ 47 | $ 59 | $ 18 | $ 4 | $ 57 | $ 11 | $ 38 | $ 36 | $ 128 | $ 142 | $ 431 |
Basic net earnings per common share | $ 0.75 | $ 0.94 | $ 0.29 | $ 0.06 | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 2.04 | $ 2.24 | $ 6.65 |
Diluted net earnings per common share | $ 0.75 | $ 0.94 | $ 0.29 | $ 0.06 | $ 0.91 | $ 0.17 | $ 0.60 | $ 0.56 | $ 2.04 | $ 2.24 | $ 6.64 |
Interim Financial Results - 151
Interim Financial Results - Schedule of Interim Financial Results (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||||||||||
Closure and restructuring costs | $ 5 | $ 21 | $ 32 | $ 4 | $ 28 | ||||||
Net gain on sale of property, plant and equipment | 15 | ||||||||||
Ottawa [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Net gain on sale of property, plant and equipment | $ 14 | ||||||||||
Ashdown, Arkansas Mill [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Accelerated depreciation | 5 | $ 3 | $ 21 | $ 20 | $ 20 | 18 | $ 19 | ||||
Pulp and Paper [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Closure and restructuring costs | $ (2) | $ 5 | $ 2 | $ 1 | $ 1 | $ 1 | 31 | 3 | 27 | ||
Personal Care [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Closure and restructuring costs | $ 1 | 1 | $ 1 | $ 1 | $ 1 | ||||||
Corporate [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Net gain on sale of property, plant and equipment | $ 1 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | $ 6 | $ 6 | $ 4 |
Charged to income | 5 | 2 | |
Additions to / (Deductions) from reserve | 1 | (5) | |
Balance at end of year | 7 | 6 | 6 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | 23 | 25 | 19 |
Charged to income | (1) | (1) | 7 |
Deductions from reserve | (1) | (1) | |
Balance at end of year | $ 22 | $ 23 | $ 25 |