Domtar (UFS) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	UFS
Entity Registrant Name	Domtar CORP
Entity Central Index Key	1,381,531
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		62,831,161

Consolidated Statements of Earn

Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Sales	$ 1,345	$ 1,302
Operating expenses
Cost of sales, excluding depreciation and amortization	1,084	1,079
Depreciation and amortization	79	80
Selling, general and administrative	110	106
Other operating income, net (NOTE 6)	(5)	(1)
Operating expenses	1,268	1,264
Operating income	77	38
Interest expense, net	16	17
Non-service components of net periodic benefit cost (NOTE 5)	(4)	(4)
Earnings before income taxes	65	25
Income tax expense (NOTE 7)	11	5
Net earnings	$ 54	$ 20
Per common share (in dollars) (NOTE 4)
Basic	$ 0.86	$ 0.32
Diluted	$ 0.86	$ 0.32
Weighted average number of common shares outstanding (millions)
Basic	62.7	62.6
Diluted	62.9	62.8
Cash dividends per common share	$ 0.44	$ 0.42
Net derivative losses on cash flow hedges:
Net losses arising during the period, net of tax of $3 (2017 – nil)	$ (9)
Less: Reclassification adjustment for gains included in net earnings, net of tax of $1 (2017 – $2)	(2)	$ (3)
Foreign currency translation adjustments	(11)	15
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $(1) (2017 – $(1))	2	2
Other comprehensive (loss) income	(20)	14
Comprehensive income	$ 34	$ 34

Consolidated Statements of Ear3

Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net losses arising during the period, tax	$ 3
Reclassification adjustment for gains included in net earnings, tax	1	$ 2
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax	$ (1)	$ (1)

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 152	$ 139
Receivables, less allowances of $6 and $7	704	704
Inventories (NOTE 8)	766	757
Prepaid expenses	27	33
Income and other taxes receivable	16	24
Total current assets	1,665	1,657
Property, plant and equipment, net	2,694	2,765
Intangible assets, net (NOTE 9)	637	633
Other assets	155	157
Total assets	5,151	5,212
Current liabilities
Trade and other payables	682	716
Income and other taxes payable	30	24
Long-term debt due within one year	1	1
Total current liabilities	713	741
Long-term debt	1,103	1,129
Deferred income taxes and other	486	491
Other liabilities and deferred credits	356	368
Commitments and contingencies (NOTE 12)
Shareholders' equity (NOTE 11)
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	1,972	1,969
Retained earnings	876	849
Accumulated other comprehensive loss	(356)	(336)
Total shareholders' equity	2,493	2,483
Total liabilities and shareholders' equity	$ 5,151	$ 5,212

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Receivables, allowances	$ 6	$ 7
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	2,169,943	2,305,419

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) shares in Millions, $ in Millions	Total	Issued and Outstanding Common Shares [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2017	$ 2,483	$ 1	$ 1,969	$ 849	$ (336)
Balance, Shares at Dec. 31, 2017		62.7
Stock-based compensation, net of tax	3		3
Stock-based compensation, shares		0.1
Net earnings	54			54
Net derivative losses on cash flow hedges:
Net losses arising during the period, net of tax	(9)				(9)
Less: Reclassification adjustments for gains included in net earnings, net of tax	(2)				(2)
Foreign currency translation adjustments	(11)				(11)
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax	2				2
Cash dividends declared	(27)			(27)
Balance at Mar. 31, 2018	$ 2,493	$ 1	$ 1,972	$ 876	$ (356)
Balance, Shares at Mar. 31, 2018		62.8

Consolidated Statement of Shar7

Consolidated Statement of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement Of Stockholders Equity [Abstract]
Net losses arising during the period, tax	$ 3
Reclassification adjustment for gains included in net earnings, tax	1	$ 2
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax	$ (1)	$ (1)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net earnings	$ 54	$ 20
Adjustments to reconcile net earnings to cash flows from operating activities
Depreciation and amortization	79	80
Deferred income taxes and tax uncertainties	(3)	(4)
Net gains on disposals of property, plant and equipment	(1)
Stock-based compensation expense	3	1
Other	(1)
Changes in assets and liabilities
Receivables	(2)	(47)
Inventories	(13)	39
Prepaid expenses	(2)	1
Trade and other payables	(37)	(19)
Income and other taxes	16	21
Other assets and other liabilities	(3)	(1)
Cash flows from operating activities	90	91
Investing activities
Additions to property, plant and equipment	(25)	(34)
Proceeds from disposals of property, plant and equipment	1
Other	(4)
Cash flows used for investing activities	(28)	(34)
Financing activities
Dividend payments	(26)	(26)
Net change in bank indebtedness		(11)
Change in revolving credit facility		(20)
Repayments of receivables securitization facility	(25)	(15)
Cash flows used for financing activities	(51)	(72)
Net increase (decrease) in cash and cash equivalents	11	(15)
Impact of foreign exchange on cash	2	1
Cash and cash equivalents at beginning of period	139	125
Cash and cash equivalents at end of period	152	111
Supplemental cash flow information
Interest	19	19
Income taxes	$ 4	$ (8)

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	NOTE 1. _________________ BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. Results for the first three months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission. The December 31, 2017 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. On January 1, 2018, upon the adoption of ASU 2014-09, as issued by FASB, “ Revenue from Contracts with Customers REVENUE RECOGNITION The Company’s revenue is generated from the sale of finished goods to customers. Revenue is recognized at a single point in time when the performance obligation is satisfied which occurs when the control over the goods is transferred to customers. For shipping and handling activities performed after customers obtain control of the goods, the Company elected to account for these activities as fulfillment activities rather than assessing such activities as separate performance obligations. Accordingly, the sale of goods to customers represents a single performance obligation to which the entire transaction price is allocated. The point in time when the control of goods is transferred to customers is largely dependent on delivery terms. Revenue is recorded at the time of shipment for delivery 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. Revenue is measured as the amount of consideration the Company expects to receive in exchange for goods transferred to customers. Revenue is recognized net of variable consideration in the form of rebates, discounts and other commercial incentives extended to customers. Variable consideration is recognized using the most likely amounts which are based on an analysis of historical experience and current period expectations. The Company includes estimated amounts of variable consideration in revenue to the extent that it is probable that there will not be a significant reversal of recognized revenue when the uncertainty related to that variable consideration is resolved. For all the Company’s contracts, customer payments are made in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Byproduct related revenues, such as sales of excess power, waste paper and other wood related byproducts are recorded as a reduction of manufacturing costs as they are incidental to the main revenue-generating activities of the Company. Sales taxes, and other similar taxes, collected from customers are excluded from revenue.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 2. _________________ RECENT ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES IMPLEMENTED REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. On January 1, 2018, the Company adopted the standard using the full retrospective method which resulted in a reclassification in the Company’s Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2017. The previously reported amounts for Sales and Selling, General and Administrative expenses were decreased by $2 million in relation to the reclassification of certain payments made to customers classified as a reduction of Sales under the new standard. These reclassifications are exclusively contained within the Company’s Consolidated Statement of Earnings and Comprehensive Income and do not have a cumulative effect on retained earnings or other components of equity or net assets in the Company’s Consolidated Balance Sheet as of January 1, 2017. No practical expedients were used in the transition to the new standard as they were not applicable. RETIREMENT BENEFITS In March 2017, the FASB issued ASU 2017-07, “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, On January 1, 2018, the Company adopted the guidance of this accounting standard update which resulted in a reclassification in the Company’s Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2017. The previously reported amount of Cost of sales was increased by $4 million, with a corresponding impact in Non-service components of net periodic benefit cost. The Company utilized a practical expedient included in the accounting standard update which allowed the Company to use amounts previously disclosed in its pension plans and other post-retirement benefits plans note for the prior periods as the estimation basis for applying the required retrospective presentation requirements. In addition, these required retrospective reclassifications resulted in adjustments to the previously reported Operating income within the Company’s reportable operating segment disclosures for the three months ended March 31, 2017. Three months ended March 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 1,304 (2 ) — 1,302 Operating expenses Cost of sales, excluding depreciation and amortization 1,075 — 4 1,079 Depreciation and amortization 80 — — 80 Selling, general and administrative 108 (2 ) — 106 Other operating income, net (1 ) — — (1 ) 1,262 (2 ) 4 1,264 Operating income (loss) 42 — (4 ) 38 Interest expense, net 17 — — 17 Non-service components of net periodic benefit cost — — (4 ) (4 ) Earnings before income taxes 25 — — 25 Income tax expense 5 — — 5 Net earnings 20 — — 20 FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, The Company adopted the new guidance on January 1, 2018 with no 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 adopted the new guidance on January 1, 2018 with no 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 adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements. DERIVATIVES AND HEDGING In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities The Company early adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements. FUTURE ACCOUNTING CHANGES LEASES In February 2016 Leases, 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, lease expense will generally be recognized on a straight-line basis over the lease term and 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 Company is currently in the process of evaluating its existing lease portfolio. While the precise amount of the right-of-use asset and lease liability will not be known until closer to the adoption date, management estimates the amount to be less than 5% of both total assets and total liabilities. This estimate is based on the Company’s Consolidated Balance Sheet and lease portfolio, both as of March 31, 2018. The adoption of the guidance will likely have an insignificant impact on the Company’s Consolidated Statements of Earnings and Comprehensive Income. The Company will adopt this ASU on January 1, 2019. The FASB has recently proposed guidance that would allow adoption of the standard as of the effective date without restating prior periods.

Derivatives and Hedging Activit

Derivatives and Hedging Activities and Fair Value Measurement	3 Months Ended
	Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivatives and Hedging Activities and Fair Value Measurement	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 3. _________________ 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 periods presented. The Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivable from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of March 31, 2018, one of Domtar’s Pulp and Paper segment customers located in the U.S. represented 13% or $95 million (December 31, 2017 – 12% or $83 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 securitization, term loan and long-term debt. The Company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts, whereby it agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. COST RISK Cash flow hedges: The Company is exposed to price volatility for raw materials and energy used in its manufacturing process. The Company manages its exposure to cost risk primarily through the use of supplier contracts. The Company purchases natural gas at the prevailing market price at the time of delivery. To reduce the impact on cash flow and earnings due to pricing volatility, the Company may utilize derivatives to fix the price of forecasted natural gas purchases. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Cost of sales in the period during which the hedged transaction affects earnings. Current contracts are used to hedge a portion of forecasted purchases over the next 51 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of March 31, 2018 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2018 (1) 8,955,000 $ 27 51% 2019 11,430,000 $ 34 45% 2020 8,880,000 $ 27 35% 2021 3,920,000 $ 12 16% 2022 2,070,000 $ 6 8% (1) Represents the remaining nine months of 2018 (2) MMBTU: Millions of British thermal units The natural gas derivative contracts were fully effective as of March 31, 2018. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three months ended March 31, 2018 resulting from hedge ineffectiveness (three months ended March 31, 2017 – nil). FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States, Canada and Europe. As a result, it is exposed to movements in foreign currency exchange rates in Canada and Europe. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. Accordingly, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and the European currencies. The Company’s European subsidiaries are also exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than their Euro functional currency. The Company’s risk management policy allows it to hedge a significant portion of its exposure to fluctuations in foreign currency exchange rates for periods up to three years. The Company may use derivative financial instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates. Derivatives are used to hedge forecasted purchases in Canadian dollars by the Company’s Canadian subsidiary over the next 24 months and to hedge a portion of forecasted sales by its U.S. subsidiaries in British pounds over the next 3 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 the next 11 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 March 31, 2018 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate 2018 (1) CAD/USD Pulp and Paper 395 CAD 62% 1 USD = 1.2799 1 USD = 1.3267 USD/Euro Personal Care 47 USD 84% 1 Euro = 1.1680 1 Euro = 1.1931 2019 CAD/USD Pulp and Paper 325 CAD 38% 1 USD = 1.2733 1 USD = 1.3032 USD/Euro Personal Care 9 USD 12% 1 Euro = 1.2233 1 Euro = 1.2959 2020 CAD/USD Pulp and Paper 66 CAD 8% 1 USD = 1.2773 1 USD = 1.2773 (1) Represents the remaining nine months of 2018 The foreign exchange derivative contracts were fully effective as of March 31, 2018. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three months ended March 31, 2018 resulting from hedge ineffectiveness (three months ended March 31, 2017 – 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 (b) below) at March 31, 2018 and December 31, 2017, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Natural gas swap contracts — — — — (a) Prepaid expenses Currency derivatives 2 — 2 — (a) Other assets Natural gas swap contracts — — — — (a) Other assets Total Assets 9 — 9 — Liabilities derivatives Currency derivatives 8 — 8 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 15 — 15 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 14 14 — — Other liabilities and deferred credits Long-term debt 1,165 — 1,165 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $6 million at March 31, 2018, of which a loss of $1 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 March 31, 2018. The net cumulative gain or loss recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is nil at March 31, 2018. A loss of $1 million 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 March 31, 2018. Fair Value of financial instruments at: December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 16 — 16 — (a) Prepaid expenses Natural gas swap contracts — — — — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 21 — 21 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives — — — — (a) Other liabilities and deferred credits Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 12 — 12 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 20 20 — — Other liabilities and deferred credits Long-term debt 1,216 — 1,216 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: 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) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at March 31, 2018 and December 31, 2017. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,104 million and $1,130 million at March 31, 2018 and December 31, 2017, 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.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	NOTE 4. _________________ EARNINGS PER COMMON SHARE The following table provides the reconciliation between basic and diluted earnings per common share: For the three months ended March 31, March 31, 2018 2017 Net earnings $ 54 $ 20 Weighted average number of common shares outstanding (millions) 62.7 62.6 Effect of dilutive securities (millions) 0.2 0.2 Weighted average number of diluted common shares outstanding (millions) 62.9 62.8 Basic net earnings per common share (in dollars) $ 0.86 $ 0.32 Diluted $ 0.86 $ 0.32 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: For the three months ended March 31, March 31, 2018 2017 Options 230,601 419,161

Pension Plans and Other Post-Re

Pension Plans and Other Post-Retirement Benefit Plans	3 Months Ended
	Mar. 31, 2018
Compensation And Retirement Disclosure [Abstract]
Pension Plans and Other Post-Retirement Benefit Plans	NOTE 5. _________________ 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 three months ended March 31, 2018, the pension expense was $13 million (2017 – $12 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 January 1, 1998 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. who 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. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2018 Pension plans Other post-retirement benefit plans $ $ Service cost 8 — Interest expense 14 — Expected return on plan assets (21 ) — Amortization of net actuarial loss 2 — Amortization of prior year service costs 1 — Net periodic benefit cost 4 — Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2017 Pension plans Other post-retirement benefit plans $ $ Service cost 8 — Interest expense 12 1 Expected return on plan assets (20 ) — Amortization of net actuarial loss 2 — Amortization of prior year service costs 1 — Net periodic benefit cost 3 1 The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than the service cost, are presented in Non-service components of net periodic benefit cost on the Consolidated Statements of Earnings and Comprehensive Income. For the three months ended March 31, 2018, the Company contributed $3 million (2017 – $3 million) to the pension plans and $1 million (2017 – $1 million) to the other post-retirement benefit plans.

Other Operating Income, Net

Other Operating Income, Net	3 Months Ended
	Mar. 31, 2018
Other Income And Expenses [Abstract]
Other Operating Income, Net	NOTE 6. _________________ OTHER OPERATING INCOME, NET Other operating income, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from period to period. The Company’s other operating income, net includes the following: For the three months ended March 31, March 31, 2018 2017 $ $ Gain on sale of property, plant and equipment (1 ) — Bad debt expense 1 — Foreign exchange (gain) loss (3 ) 1 Other (2 ) (2 ) Other operating income, net (5 ) (1 )

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7. _________________ INCOME TAXES For the first quarter of 2018, the Company’s income tax expense was $11 million, consisting of $14 million of current income tax expense and a deferred income tax benefit of $3 million. This compares to an income tax expense of $5 million in the first quarter of 2017, consisting of $9 million of current income tax expense and a deferred income tax benefit of $4 million. The Company made tax payments, net of tax refunds, of $4 million during the first quarter of 2018. The effective tax rate was 17% compared with an effective tax rate of 20% in the first quarter of 2017. The effective tax rate for the first quarter of 2018 was favorably impacted by the income tax effects of the U.S. Tax Cuts and Jobs Act (the “U.S. Tax Reform”) as well as by the recognition of $1 million of previously unrecognized tax benefits due to a statute expiration in a foreign jurisdiction. The effective tax rate for the first quarter of 2017 was also favorably impacted by the recognition of $1 million of previously unrecognized tax benefits due to a statute expiration in a foreign jurisdiction and a U.S. state tax audit finalization. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Reform. SAB 118 provides guidance which allows companies to use a measurement period, similar to that used in business combinations, to account for the impacts of the U.S. Tax Reform. The U.S. Tax Reform provides for a mandatory one-time deemed repatriation tax on the Company’s undistributed foreign earnings and profits. The Company recorded a provisional repatriation tax amount of $46 million in its consolidated financial statements as of December 31, 2017. The Company continues to analyze various factors, including the impact of foreign tax credits available to offset the tax, and to gather additional information and monitor for further interpretive guidance in order to finalize its calculations and complete its accounting for the repatriation tax liability.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	NOTE 8. _________________ INVENTORIES The following table presents the components of inventories: March 31, December 31, 2018 2017 $ $ Work in process and finished goods 397 399 Raw materials 143 135 Operating and maintenance supplies 226 223 766 757

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 9. _________________ INTANGIBLE ASSETS The following table presents the components of intangible assets: March 31, 2018 December 31, 2017 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 397 (85 ) 312 392 (79 ) 313 Technology 7 – 20 8 (4 ) 4 8 (4 ) 4 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (11 ) 17 29 (11 ) 18 437 (102 ) 335 433 (96 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 250 — 250 245 — 245 License rights 6 — 6 6 — 6 Catalog rights 42 — 42 41 — 41 Total 739 (102 ) 637 729 (96 ) 633 Amortization expense related to intangible assets for the three months ended March 31, 2018 was $5 million (2017 – $5 million). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2018 2019 2020 2021 2022 $ $ $ $ $ Amortization expense related to intangible assets 22 (1) 22 21 21 21 (1) Represents twelve months of amortization

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Loss by Component	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 10. _________________ CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) Net gains (losses) cash Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) Natural gas swap contracts (5 ) N/A N/A N/A (5 ) Currency options 11 N/A N/A N/A 11 Net (gain) loss N/A (6 ) 17 N/A 11 Foreign currency items N/A N/A N/A 146 146 Other comprehensive income (loss) before reclassifications 6 (6 ) 17 146 163 Amounts reclassified from Accumulated other comprehensive loss (9 ) 9 — — — Net current period other comprehensive (loss) income (3 ) 3 17 146 163 Balance at December 31, 2017 8 (218 ) 6 (132 ) (336 ) Currency options (6 ) N/A N/A N/A (6 ) Foreign exchange forward contracts (3 ) N/A N/A N/A (3 ) Foreign currency items N/A N/A N/A (11 ) (11 ) Other comprehensive loss before reclassifications (9 ) — — (11 ) (20 ) Amounts reclassified from Accumulated other comprehensive loss (2 ) 2 — — — Net current period other comprehensive (loss) income (11 ) 2 — (11 ) (20 ) Balance at March 31, 2018 (3 ) (216 ) 6 (143 ) (356 ) (1) All amounts are after tax. Amounts in parentheses 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 Amounts reclassified from Accumulated other comprehensive loss (1) For the three months ended March 31, 2018 March 31, 2017 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1 ) (1 ) (2) Currency options and forwards (2 ) (4 ) (2) Total before tax (3 ) (5 ) Tax benefit 1 2 Net of tax (2 ) (3 ) Amortization of defined benefit pension items Amortization of net actuarial loss 2 2 (3) Amortization of prior year service cost 1 1 (3) Total before tax 3 3 Tax expense (1 ) (1 ) Net of tax 2 2 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income. (3)

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Shareholders' Equity	NOTE 11. _________________ SHAREHOLDERS’ EQUITY On January 29, 2018, the Company’s Board of Directors approved a quarterly dividend of $0.435 per share, an increase of $0.02 or 4.8%, to be paid to holders of the Company’s common stock. Total dividends of approximately $27 million were paid on April 16, 2018 to shareholders of record on April 2, 2018. On May 8, 2018, the Company’s Board of Directors approved a quarterly dividend of $0.435 per share to be paid to holders of the Company’s common stock. This dividend is to be paid on July 16, 2018, to shareholders of record on July 3, 2018. 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 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 the first quarter of 2018 and 2017, there were no shares repurchased under the Program. Since the inception of the Program, the Company has 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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 12. _________________ COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. The Company may also incur substantial costs in relation to enforcement actions (including orders requiring corrective measures, installation of pollution control equipment or other remedial actions) as a result of violations of, or liabilities under, environmental laws and regulations applicable to its past and present properties. The Company’s ongoing efforts to identify potential environmental concerns that may be associated with such properties may result in additional environmental costs and liabilities which cannot be reasonably estimated at this time. In connection with alleged contamination of a site bordering Burrard Inlet in North Vancouver, on February 16, 2010, the government of British Columbia issued a Remediation Order to Seaspan International Ltd. and the Company, in order to define and implement an action plan to address soil, sediment and groundwater issues. Construction began in January 2017 and is expected to be completed in 2019. The Company previously 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: March 31, 2018 $ Balance at beginning of year 44 Environmental spending (3 ) Effect of foreign currency exchange rate change (1 ) Balance at end of period 40 The U.S. Environmental Protection Agency (the “EPA”) and/or various state agencies have notified the Company that it may be a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund,” and similar state laws with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites due to possible soil, sediment or groundwater contamination. Climate change regulation Various national and local laws and regulations relating to climate change have been established or are emerging in jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. The Company does not expect to be disproportionately affected by these measures compared with other pulp and paper producers located in these jurisdictions. The EPA Clean Power Plan regulation is being litigated and has been stayed. The EPA has proposed to repeal the Clean Power Plan in accordance with President Trump’s Executive Order issued on March 28, 2017. Separately, the EPA has also requested comment on whether to replace the Clean Power Plan with another rule consistent with the new Administration’s interpretation of the Clean Air Act. The EPA has filed a motion with the D.C. Circuit to hold the case in abeyance while it reconsiders the rule, which the D.C. Circuit granted. Regardless of the outcome for the Clean Power Plan, 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 Government of Canada is reviewing national policies to further reduce greenhouse gases (“GHG”) and has announced its intent to impose a cost 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 provinces of Quebec and Ontario have GHG cap-and-trade systems with reduction targets. British Columbia has a carbon tax that applies to the purchase of fossil fuels within the province. The Company does not expect to be disproportionately affected compared with other pulp and paper producers located in these provinces. CONTINGENCIES In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at March 31, 2018, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At March 31, 2018, the Company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provision has been recorded. These indemnifications have not yielded a significant expense in the past. Pension Plans The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At March 31, 2018 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications.

Segment Disclosures

Segment Disclosures	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment Disclosures	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 13. _________________ 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. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended March 31, March 31, SEGMENT DATA 2018 2017 $ $ Sales by segment (1) Pulp and Paper 1,100 1,073 Personal Care 262 247 Total for reportable segments 1,362 1,320 Intersegment sales (17 ) (18 ) Consolidated sales 1,345 1,302 Sales by product group Communication papers 631 623 Specialty and packaging papers 174 163 Market pulp 278 269 Absorbent hygiene products 262 247 Consolidated sales 1,345 1,302 Depreciation and amortization Pulp and Paper 61 64 Personal Care 18 16 Consolidated depreciation and amortization 79 80 Operating income (loss) (2) Pulp and Paper 76 30 Personal Care 8 16 Corporate (7 ) (8 ) Consolidated operating income 77 38 Interest expense, net 16 17 Non-service components of net periodic benefit cost (4 ) (4 ) Earnings before income taxes 65 25 Income tax expense 11 5 Net earnings 54 20 (1) As a result of adopting ASU 2014-09 “ Revenue from Contracts with Customers, (2) As a result of adopting ASU 2017-07 “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,

Supplemental Guarantor Financia

Supplemental Guarantor Financial Information	3 Months Ended
	Mar. 31, 2018
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Supplemental Guarantor Financial Information	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 14. _________________ 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’s significant 100% owned domestic subsidiaries, including Domtar Paper Company, LLC, 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., (“Guarantor Subsidiaries”), on a joint and several basis. The Guaranteed Debt will not be guaranteed by certain of Domtar’s foreign and non-significant domestic subsidiaries, all 100% owned, (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 March 31, 2018 and December 31, 2017, the Statements of Earnings and Comprehensive Income and Cash Flows for the three months ended March 31, 2018 and 2017 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. For the three months ended March 31, 2018 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,083 548 (286 ) 1,345 Operating expenses Cost of sales, excluding depreciation and amortization — 943 427 (286 ) 1,084 Depreciation and amortization — 56 23 — 79 Selling, general and administrative 4 45 61 — 110 Other operating income, net — (2 ) (3 ) — (5 ) 4 1,042 508 (286 ) 1,268 Operating (loss) income (4 ) 41 40 — 77 Interest expense (income), net 16 22 (22 ) — 16 Non-service components of net periodic benefit cost — 1 (5 ) — (4 ) (Loss) earnings before income taxes (20 ) 18 67 — 65 Income tax (benefit) expense (4 ) 4 11 — 11 Share in earnings of equity accounted investees 70 56 — (126 ) — Net earnings 54 70 56 (126 ) 54 Other comprehensive loss (20 ) (18 ) (10 ) 28 (20 ) Comprehensive income 34 52 46 (98 ) 34 For the three months ended March 31, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,086 514 (298 ) 1,302 Operating expenses Cost of sales, excluding depreciation and amortization — 970 407 (298 ) 1,079 Depreciation and amortization — 59 21 — 80 Selling, general and administrative 2 33 71 — 106 Other operating (income) loss, net — (2 ) 1 — (1 ) 2 1,060 500 (298 ) 1,264 Operating (loss) income (2 ) 26 14 — 38 Interest expense (income), net 17 20 (20 ) — 17 Non-service components of net periodic benefit cost — — (4 ) — (4 ) (Loss) earnings before income taxes (19 ) 6 38 — 25 Income tax (benefit) expense (4 ) 2 7 — 5 Share in earnings of equity accounted investees 35 31 — (66 ) — Net earnings 20 35 31 (66 ) 20 Other comprehensive income 14 18 16 (34 ) 14 Comprehensive income 34 53 47 (100 ) 34 March 31, 2018 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 2 15 135 — 152 Receivables — 428 276 — 704 Inventories — 514 252 — 766 Prepaid expenses 3 18 6 — 27 Income and other taxes receivable 11 2 11 (8 ) 16 Intercompany accounts 372 345 55 (772 ) — Total current assets 388 1,322 735 (780 ) 1,665 Property, plant and equipment, net — 1,829 865 — 2,694 Intangible assets, net — 264 373 — 637 Investments in affiliates 3,945 2,656 — (6,601 ) — Intercompany long-term advances 6 81 1,537 (1,624 ) — Other assets 22 18 133 (18 ) 155 Total assets 4,361 6,170 3,643 (9,023 ) 5,151 Liabilities and shareholders' equity Current liabilities Trade and other payables 51 396 235 — 682 Intercompany accounts 274 74 424 (772 ) — Income and other taxes payable 2 22 14 (8 ) 30 Long-term debt due within one year — — 1 — 1 Total current liabilities 327 492 674 (780 ) 713 Long-term debt 792 299 12 — 1,103 Intercompany long-term loans 689 934 1 (1,624 ) — Deferred income taxes and other — 347 157 (18 ) 486 Other liabilities and deferred credits 60 153 143 — 356 Shareholders' equity 2,493 3,945 2,656 (6,601 ) 2,493 Total liabilities and shareholders' equity 4,361 6,170 3,643 (9,023 ) 5,151 December 31, 2017 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 3 14 122 — 139 Receivables — 402 302 — 704 Inventories — 522 235 — 757 Prepaid expenses 5 22 6 — 33 Income and other taxes receivable 7 1 16 — 24 Intercompany accounts 380 314 45 (739 ) — Total current assets 395 1,275 726 (739 ) 1,657 Property, plant and equipment, net — 1,870 895 — 2,765 Intangible assets, net — 268 365 — 633 Investments in affiliates 3,892 2,609 — (6,501 ) — Intercompany long-term advances 6 81 1,513 (1,600 ) — Other assets 22 24 129 (18 ) 157 Total assets 4,315 6,127 3,628 (8,858 ) 5,212 Liabilities and shareholders' equity Current liabilities Trade and other payables 55 424 237 — 716 Intercompany accounts 244 63 432 (739 ) — Income and other taxes payable 1 14 9 — 24 Long-term debt due within one year — — 1 — 1 Total current liabilities 300 501 679 (739 ) 741 Long-term debt 792 300 37 — 1,129 Intercompany long-term loans 674 925 1 (1,600 ) — Deferred income taxes and other — 356 153 (18 ) 491 Other liabilities and deferred credits 66 153 149 — 368 Shareholders' equity 2,483 3,892 2,609 (6,501 ) 2,483 Total liabilities and shareholders' equity 4,315 6,127 3,628 (8,858 ) 5,212 For the three months ended March 31, 2018 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 54 70 56 (126 ) 54 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (36 ) (66 ) 12 126 36 Cash flows from operating activities 18 4 68 — 90 Investing activities Additions to property, plant and equipment — (13 ) (12 ) — (25 ) Proceeds from disposals of property, plant and equipment — — 1 — 1 Other — — (4 ) — (4 ) Cash flows used for investing activities — (13 ) (15 ) — (28 ) Financing activities Dividend payments (26 ) — — — (26 ) Repayments of receivables securitization facility — — (25 ) — (25 ) Increase in long-term advances to related parties — — (17 ) 17 — Decrease in long-term advances to related parties 7 10 — (17 ) — Cash flows (used for) provided from financing activities (19 ) 10 (42 ) — (51 ) Net (decrease) increase in cash and cash equivalents (1 ) 1 11 — 11 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 3 14 122 — 139 Cash and cash equivalents at end of period 2 15 135 — 152 For the three months ended March 31, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 20 35 31 (66 ) 20 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings — (20 ) 25 66 71 Cash flows from operating activities 20 15 56 — 91 Investing activities Additions to property, plant and equipment — (15 ) (19 ) — (34 ) Cash flows used for investing activities — (15 ) (19 ) — (34 ) Financing activities Dividend payments (26 ) — — — (26 ) Net change in bank indebtedness — (10 ) (1 ) — (11 ) Change in revolving credit facility (20 ) — — — (20 ) Repayments of receivables securitization facility — — (15 ) — (15 ) Increase in long-term advances to related parties — — (17 ) 17 — Decrease in long-term advances to related parties 16 1 — (17 ) — Cash flows used for financing activities (30 ) (9 ) (33 ) — (72 ) Net (decrease) increase in cash and cash equivalents (10 ) (9 ) 4 — (15 ) Impact of foreign exchange on cash — — 1 — 1 Cash and cash equivalents at beginning of period 17 14 94 — 125 Cash and cash equivalents at end of period 7 5 99 — 111

Recent Accounting Pronounceme23

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2018
Revenue Recognition	REVENUE RECOGNITION The Company’s revenue is generated from the sale of finished goods to customers. Revenue is recognized at a single point in time when the performance obligation is satisfied which occurs when the control over the goods is transferred to customers. For shipping and handling activities performed after customers obtain control of the goods, the Company elected to account for these activities as fulfillment activities rather than assessing such activities as separate performance obligations. Accordingly, the sale of goods to customers represents a single performance obligation to which the entire transaction price is allocated. The point in time when the control of goods is transferred to customers is largely dependent on delivery terms. Revenue is recorded at the time of shipment for delivery 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. Revenue is measured as the amount of consideration the Company expects to receive in exchange for goods transferred to customers. Revenue is recognized net of variable consideration in the form of rebates, discounts and other commercial incentives extended to customers. Variable consideration is recognized using the most likely amounts which are based on an analysis of historical experience and current period expectations. The Company includes estimated amounts of variable consideration in revenue to the extent that it is probable that there will not be a significant reversal of recognized revenue when the uncertainty related to that variable consideration is resolved. For all the Company’s contracts, customer payments are made in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Byproduct related revenues, such as sales of excess power, waste paper and other wood related byproducts are recorded as a reduction of manufacturing costs as they are incidental to the main revenue-generating activities of the Company. Sales taxes, and other similar taxes, collected from customers are excluded from revenue. REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. On January 1, 2018, the Company adopted the standard using the full retrospective method which resulted in a reclassification in the Company’s Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2017. The previously reported amounts for Sales and Selling, General and Administrative expenses were decreased by $2 million in relation to the reclassification of certain payments made to customers classified as a reduction of Sales under the new standard. These reclassifications are exclusively contained within the Company’s Consolidated Statement of Earnings and Comprehensive Income and do not have a cumulative effect on retained earnings or other components of equity or net assets in the Company’s Consolidated Balance Sheet as of January 1, 2017. No practical expedients were used in the transition to the new standard as they were not applicable.
Retirement Benefits	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) RETIREMENT BENEFITS In March 2017, the FASB issued ASU 2017-07, “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, On January 1, 2018, the Company adopted the guidance of this accounting standard update which resulted in a reclassification in the Company’s Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2017. The previously reported amount of Cost of sales was increased by $4 million, with a corresponding impact in Non-service components of net periodic benefit cost. The Company utilized a practical expedient included in the accounting standard update which allowed the Company to use amounts previously disclosed in its pension plans and other post-retirement benefits plans note for the prior periods as the estimation basis for applying the required retrospective presentation requirements. In addition, these required retrospective reclassifications resulted in adjustments to the previously reported Operating income within the Company’s reportable operating segment disclosures for the three months ended March 31, 2017. Three months ended March 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 1,304 (2 ) — 1,302 Operating expenses Cost of sales, excluding depreciation and amortization 1,075 — 4 1,079 Depreciation and amortization 80 — — 80 Selling, general and administrative 108 (2 ) — 106 Other operating income, net (1 ) — — (1 ) 1,262 (2 ) 4 1,264 Operating income (loss) 42 — (4 ) 38 Interest expense, net 17 — — 17 Non-service components of net periodic benefit cost — — (4 ) (4 ) Earnings before income taxes 25 — — 25 Income tax expense 5 — — 5 Net earnings 20 — — 20
Financial Instruments	FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, The Company adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements.
Derivatives and Hedging	DERIVATIVES AND HEDGING In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, The Company adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities The Company early adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements.
Classification of Cash Flows	CLASSIFICATION OF CASH FLOWS In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows, The Company adopted the new guidance on January 1, 2018 with no impact on the consolidated financial statements.
Future Accounting Changes [Member]
Leases	LEASES In February 2016 Leases, 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, lease expense will generally be recognized on a straight-line basis over the lease term and 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 Company is currently in the process of evaluating its existing lease portfolio. While the precise amount of the right-of-use asset and lease liability will not be known until closer to the adoption date, management estimates the amount to be less than 5% of both total assets and total liabilities. This estimate is based on the Company’s Consolidated Balance Sheet and lease portfolio, both as of March 31, 2018. The adoption of the guidance will likely have an insignificant impact on the Company’s Consolidated Statements of Earnings and Comprehensive Income. The Company will adopt this ASU on January 1, 2019. The FASB has recently proposed guidance that would allow adoption of the standard as of the effective date without restating prior periods.

Recent Accounting Pronounceme24

Recent Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Schedule of Reclassification to Consolidated Statement of Earnings and Comprehensive Income	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) On January 1, 2018, the Company adopted the guidance of this accounting standard update which resulted in a reclassification in the Company’s Consolidated Statement of Earnings and Comprehensive Income for the three months ended March 31, 2017. Three months ended March 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 1,304 (2 ) — 1,302 Operating expenses Cost of sales, excluding depreciation and amortization 1,075 — 4 1,079 Depreciation and amortization 80 — — 80 Selling, general and administrative 108 (2 ) — 106 Other operating income, net (1 ) — — (1 ) 1,262 (2 ) 4 1,264 Operating income (loss) 42 — (4 ) 38 Interest expense, net 17 — — 17 Non-service components of net periodic benefit cost — — (4 ) (4 ) Earnings before income taxes 25 — — 25 Income tax expense 5 — — 5 Net earnings 20 — — 20

Derivatives and Hedging Activ25

Derivatives and Hedging Activities and Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2018 (1) 8,955,000 $ 27 51% 2019 11,430,000 $ 34 45% 2020 8,880,000 $ 27 35% 2021 3,920,000 $ 12 16% 2022 2,070,000 $ 6 8% (1) Represents the remaining nine months of 2018 (2) 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 March 31, 2018 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate 2018 (1) CAD/USD Pulp and Paper 395 CAD 62% 1 USD = 1.2799 1 USD = 1.3267 USD/Euro Personal Care 47 USD 84% 1 Euro = 1.1680 1 Euro = 1.1931 2019 CAD/USD Pulp and Paper 325 CAD 38% 1 USD = 1.2733 1 USD = 1.3032 USD/Euro Personal Care 9 USD 12% 1 Euro = 1.2233 1 Euro = 1.2959 2020 CAD/USD Pulp and Paper 66 CAD 8% 1 USD = 1.2773 1 USD = 1.2773
Fair Value of Financial Instruments	The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) below) at March 31, 2018 and December 31, 2017, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2018 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 7 — 7 — (a) Prepaid expenses Natural gas swap contracts — — — — (a) Prepaid expenses Currency derivatives 2 — 2 — (a) Other assets Natural gas swap contracts — — — — (a) Other assets Total Assets 9 — 9 — Liabilities derivatives Currency derivatives 8 — 8 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 15 — 15 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 14 14 — — Other liabilities and deferred credits Long-term debt 1,165 — 1,165 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $6 million at March 31, 2018, of which a loss of $1 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 March 31, 2018. The net cumulative gain or loss recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is nil at March 31, 2018. A loss of $1 million 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 March 31, 2018. Fair Value of financial instruments at: December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 16 — 16 — (a) Prepaid expenses Natural gas swap contracts — — — — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 21 — 21 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives — — — — (a) Other liabilities and deferred credits Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 12 — 12 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 20 20 — — Other liabilities and deferred credits Long-term debt 1,216 — 1,216 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: 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) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at March 31, 2018 and December 31, 2017. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,104 million and $1,130 million at March 31, 2018 and December 31, 2017, respectively.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
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: For the three months ended March 31, March 31, 2018 2017 Net earnings $ 54 $ 20 Weighted average number of common shares outstanding (millions) 62.7 62.6 Effect of dilutive securities (millions) 0.2 0.2 Weighted average number of diluted common shares outstanding (millions) 62.9 62.8 Basic net earnings per common share (in dollars) $ 0.86 $ 0.32 Diluted $ 0.86 $ 0.32
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: For the three months ended March 31, March 31, 2018 2017 Options 230,601 419,161

Pension Plans and Other Post-27

Pension Plans and Other Post-Retirement Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans	Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2018 Pension plans Other post-retirement benefit plans $ $ Service cost 8 — Interest expense 14 — Expected return on plan assets (21 ) — Amortization of net actuarial loss 2 — Amortization of prior year service costs 1 — Net periodic benefit cost 4 — Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended March 31, 2017 Pension plans Other post-retirement benefit plans $ $ Service cost 8 — Interest expense 12 1 Expected return on plan assets (20 ) — Amortization of net actuarial loss 2 — Amortization of prior year service costs 1 — Net periodic benefit cost 3 1

Other Operating Income, Net (Ta

Other Operating Income, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Other Income And Expenses [Abstract]
Components of Other Operating Income, Net	The Company’s other operating income, net includes the following: For the three months ended March 31, March 31, 2018 2017 $ $ Gain on sale of property, plant and equipment (1 ) — Bad debt expense 1 — Foreign exchange (gain) loss (3 ) 1 Other (2 ) (2 ) Other operating income, net (5 ) (1 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Components of Inventories	The following table presents the components of inventories: March 31, December 31, 2018 2017 $ $ Work in process and finished goods 397 399 Raw materials 143 135 Operating and maintenance supplies 226 223 766 757

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Components of Intangible Assets	The following table presents the components of intangible assets: March 31, 2018 December 31, 2017 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 397 (85 ) 312 392 (79 ) 313 Technology 7 – 20 8 (4 ) 4 8 (4 ) 4 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (11 ) 17 29 (11 ) 18 437 (102 ) 335 433 (96 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 250 — 250 245 — 245 License rights 6 — 6 6 — 6 Catalog rights 42 — 42 41 — 41 Total 739 (102 ) 637 729 (96 ) 633
Amortization Expense Related to Intangible Assets	Amortization expense for the next five years related to intangible assets is expected to be as follows: 2018 2019 2020 2021 2022 $ $ $ $ $ Amortization expense related to intangible assets 22 (1) 22 21 21 21 (1) Represents twelve months of amortization

Changes in Accumulated Other 31

Changes in Accumulated Other Comprehensive Loss by Component (Tables)	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Loss by Component	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) The following table presents the changes in Accumulated other comprehensive loss by component (1) Net gains (losses) cash Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) Natural gas swap contracts (5 ) N/A N/A N/A (5 ) Currency options 11 N/A N/A N/A 11 Net (gain) loss N/A (6 ) 17 N/A 11 Foreign currency items N/A N/A N/A 146 146 Other comprehensive income (loss) before reclassifications 6 (6 ) 17 146 163 Amounts reclassified from Accumulated other comprehensive loss (9 ) 9 — — — Net current period other comprehensive (loss) income (3 ) 3 17 146 163 Balance at December 31, 2017 8 (218 ) 6 (132 ) (336 ) Currency options (6 ) N/A N/A N/A (6 ) Foreign exchange forward contracts (3 ) N/A N/A N/A (3 ) Foreign currency items N/A N/A N/A (11 ) (11 ) Other comprehensive loss before reclassifications (9 ) — — (11 ) (20 ) Amounts reclassified from Accumulated other comprehensive loss (2 ) 2 — — — Net current period other comprehensive (loss) income (11 ) 2 — (11 ) (20 ) Balance at March 31, 2018 (3 ) (216 ) 6 (143 ) (356 ) (1) All amounts are after tax. Amounts in parentheses 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 Amounts reclassified from Accumulated other comprehensive loss (1) For the three months ended March 31, 2018 March 31, 2017 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1 ) (1 ) (2) Currency options and forwards (2 ) (4 ) (2) Total before tax (3 ) (5 ) Tax benefit 1 2 Net of tax (2 ) (3 ) Amortization of defined benefit pension items Amortization of net actuarial loss 2 2 (3) Amortization of prior year service cost 1 1 (3) Total before tax 3 3 Tax expense (1 ) (1 ) Net of tax 2 2 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income. (3)

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
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: March 31, 2018 $ Balance at beginning of year 44 Environmental spending (3 ) Effect of foreign currency exchange rate change (1 ) Balance at end of period 40

Segment Disclosures (Tables)

Segment Disclosures (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Analysis and Reconciliation of Reportable Segment Information	DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2018 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended March 31, March 31, SEGMENT DATA 2018 2017 $ $ Sales by segment (1) Pulp and Paper 1,100 1,073 Personal Care 262 247 Total for reportable segments 1,362 1,320 Intersegment sales (17 ) (18 ) Consolidated sales 1,345 1,302 Sales by product group Communication papers 631 623 Specialty and packaging papers 174 163 Market pulp 278 269 Absorbent hygiene products 262 247 Consolidated sales 1,345 1,302 Depreciation and amortization Pulp and Paper 61 64 Personal Care 18 16 Consolidated depreciation and amortization 79 80 Operating income (loss) (2) Pulp and Paper 76 30 Personal Care 8 16 Corporate (7 ) (8 ) Consolidated operating income 77 38 Interest expense, net 16 17 Non-service components of net periodic benefit cost (4 ) (4 ) Earnings before income taxes 65 25 Income tax expense 11 5 Net earnings 54 20 (1) As a result of adopting ASU 2014-09 “ Revenue from Contracts with Customers, (2) As a result of adopting ASU 2017-07 “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,

Supplemental Guarantor Financ34

Supplemental Guarantor Financial Information (Tables)	3 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Condensed Consolidating Statement of Earnings and Comprehensive Income	For the three months ended March 31, 2018 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,083 548 (286 ) 1,345 Operating expenses Cost of sales, excluding depreciation and amortization — 943 427 (286 ) 1,084 Depreciation and amortization — 56 23 — 79 Selling, general and administrative 4 45 61 — 110 Other operating income, net — (2 ) (3 ) — (5 ) 4 1,042 508 (286 ) 1,268 Operating (loss) income (4 ) 41 40 — 77 Interest expense (income), net 16 22 (22 ) — 16 Non-service components of net periodic benefit cost — 1 (5 ) — (4 ) (Loss) earnings before income taxes (20 ) 18 67 — 65 Income tax (benefit) expense (4 ) 4 11 — 11 Share in earnings of equity accounted investees 70 56 — (126 ) — Net earnings 54 70 56 (126 ) 54 Other comprehensive loss (20 ) (18 ) (10 ) 28 (20 ) Comprehensive income 34 52 46 (98 ) 34 For the three months ended March 31, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,086 514 (298 ) 1,302 Operating expenses Cost of sales, excluding depreciation and amortization — 970 407 (298 ) 1,079 Depreciation and amortization — 59 21 — 80 Selling, general and administrative 2 33 71 — 106 Other operating (income) loss, net — (2 ) 1 — (1 ) 2 1,060 500 (298 ) 1,264 Operating (loss) income (2 ) 26 14 — 38 Interest expense (income), net 17 20 (20 ) — 17 Non-service components of net periodic benefit cost — — (4 ) — (4 ) (Loss) earnings before income taxes (19 ) 6 38 — 25 Income tax (benefit) expense (4 ) 2 7 — 5 Share in earnings of equity accounted investees 35 31 — (66 ) — Net earnings 20 35 31 (66 ) 20 Other comprehensive income 14 18 16 (34 ) 14 Comprehensive income 34 53 47 (100 ) 34
Condensed Consolidating Balance Sheet	March 31, 2018 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 2 15 135 — 152 Receivables — 428 276 — 704 Inventories — 514 252 — 766 Prepaid expenses 3 18 6 — 27 Income and other taxes receivable 11 2 11 (8 ) 16 Intercompany accounts 372 345 55 (772 ) — Total current assets 388 1,322 735 (780 ) 1,665 Property, plant and equipment, net — 1,829 865 — 2,694 Intangible assets, net — 264 373 — 637 Investments in affiliates 3,945 2,656 — (6,601 ) — Intercompany long-term advances 6 81 1,537 (1,624 ) — Other assets 22 18 133 (18 ) 155 Total assets 4,361 6,170 3,643 (9,023 ) 5,151 Liabilities and shareholders' equity Current liabilities Trade and other payables 51 396 235 — 682 Intercompany accounts 274 74 424 (772 ) — Income and other taxes payable 2 22 14 (8 ) 30 Long-term debt due within one year — — 1 — 1 Total current liabilities 327 492 674 (780 ) 713 Long-term debt 792 299 12 — 1,103 Intercompany long-term loans 689 934 1 (1,624 ) — Deferred income taxes and other — 347 157 (18 ) 486 Other liabilities and deferred credits 60 153 143 — 356 Shareholders' equity 2,493 3,945 2,656 (6,601 ) 2,493 Total liabilities and shareholders' equity 4,361 6,170 3,643 (9,023 ) 5,151 December 31, 2017 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 3 14 122 — 139 Receivables — 402 302 — 704 Inventories — 522 235 — 757 Prepaid expenses 5 22 6 — 33 Income and other taxes receivable 7 1 16 — 24 Intercompany accounts 380 314 45 (739 ) — Total current assets 395 1,275 726 (739 ) 1,657 Property, plant and equipment, net — 1,870 895 — 2,765 Intangible assets, net — 268 365 — 633 Investments in affiliates 3,892 2,609 — (6,501 ) — Intercompany long-term advances 6 81 1,513 (1,600 ) — Other assets 22 24 129 (18 ) 157 Total assets 4,315 6,127 3,628 (8,858 ) 5,212 Liabilities and shareholders' equity Current liabilities Trade and other payables 55 424 237 — 716 Intercompany accounts 244 63 432 (739 ) — Income and other taxes payable 1 14 9 — 24 Long-term debt due within one year — — 1 — 1 Total current liabilities 300 501 679 (739 ) 741 Long-term debt 792 300 37 — 1,129 Intercompany long-term loans 674 925 1 (1,600 ) — Deferred income taxes and other — 356 153 (18 ) 491 Other liabilities and deferred credits 66 153 149 — 368 Shareholders' equity 2,483 3,892 2,609 (6,501 ) 2,483 Total liabilities and shareholders' equity 4,315 6,127 3,628 (8,858 ) 5,212
Condensed Consolidating Statement of Cash Flows	For the three months ended March 31, 2018 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 54 70 56 (126 ) 54 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (36 ) (66 ) 12 126 36 Cash flows from operating activities 18 4 68 — 90 Investing activities Additions to property, plant and equipment — (13 ) (12 ) — (25 ) Proceeds from disposals of property, plant and equipment — — 1 — 1 Other — — (4 ) — (4 ) Cash flows used for investing activities — (13 ) (15 ) — (28 ) Financing activities Dividend payments (26 ) — — — (26 ) Repayments of receivables securitization facility — — (25 ) — (25 ) Increase in long-term advances to related parties — — (17 ) 17 — Decrease in long-term advances to related parties 7 10 — (17 ) — Cash flows (used for) provided from financing activities (19 ) 10 (42 ) — (51 ) Net (decrease) increase in cash and cash equivalents (1 ) 1 11 — 11 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 3 14 122 — 139 Cash and cash equivalents at end of period 2 15 135 — 152 For the three months ended March 31, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 20 35 31 (66 ) 20 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings — (20 ) 25 66 71 Cash flows from operating activities 20 15 56 — 91 Investing activities Additions to property, plant and equipment — (15 ) (19 ) — (34 ) Cash flows used for investing activities — (15 ) (19 ) — (34 ) Financing activities Dividend payments (26 ) — — — (26 ) Net change in bank indebtedness — (10 ) (1 ) — (11 ) Change in revolving credit facility (20 ) — — — (20 ) Repayments of receivables securitization facility — — (15 ) — (15 ) Increase in long-term advances to related parties — — (17 ) 17 — Decrease in long-term advances to related parties 16 1 — (17 ) — Cash flows used for financing activities (30 ) (9 ) (33 ) — (72 ) Net (decrease) increase in cash and cash equivalents (10 ) (9 ) 4 — (15 ) Impact of foreign exchange on cash — — 1 — 1 Cash and cash equivalents at beginning of period 17 14 94 — 125 Cash and cash equivalents at end of period 7 5 99 — 111

Recent Accounting Pronounceme35

Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Decrease in previously reported sales and selling, general and administrative expenses	$ (110)	$ (106)
Increase in previously reported cost of sales	$ 1,084	1,079
Maximum [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Percentage of management estimates of right-of-use asset and lease liability	5.00%
Adjustment [Member] | ASU 2014-09 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Decrease in previously reported sales and selling, general and administrative expenses		2
Adjustment [Member] | ASU 2017-07 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Increase in previously reported cost of sales		$ 4

Recent Accounting Pronounceme36

Recent Accounting Pronouncements - Schedule of Reclassification to Consolidated Statement of Earnings and Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Sales	$ 1,345	$ 1,302
Operating expenses
Cost of sales, excluding depreciation and amortization	1,084	1,079
Depreciation and amortization	79	80
Selling, general and administrative	110	106
Other operating income, net	(5)	(1)
Operating expenses	1,268	1,264
Operating income	77	38
Interest expense, net	16	17
Non-service components of net periodic benefit cost	(4)	(4)
Earnings before income taxes	65	25
Income tax expense (NOTE 7)	11	5
Net earnings	$ 54	20
As Reported [Member]
Sales		1,304
Operating expenses
Cost of sales, excluding depreciation and amortization		1,075
Depreciation and amortization		80
Selling, general and administrative		108
Other operating income, net		(1)
Operating expenses		1,262
Operating income		42
Interest expense, net		17
Earnings before income taxes		25
Income tax expense (NOTE 7)		5
Net earnings		20
Restatement Adjustment [Member] | Impact of ASU 2014-09 [Member]
Sales		(2)
Operating expenses
Selling, general and administrative		(2)
Operating expenses		(2)
Restatement Adjustment [Member] | Impact of ASU 2017-07
Operating expenses
Cost of sales, excluding depreciation and amortization		4
Operating expenses		4
Operating income		(4)
Non-service components of net periodic benefit cost		$ (4)

Derivatives and Hedging Activ37

Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)Customer	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Derivative [Line Items]
Number of major customers | Customer	1
Receivables from major customers	$ 95,000,000		$ 83,000,000
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member]
Derivative [Line Items]
Length of time current hedges cover	24 months
Maximum [Member] | British Pounds [Member] | British Pounds [Member]
Derivative [Line Items]
Length of time current hedges cover	3 months
Maximum [Member] | European Subsidiaries [Member] | British Pounds [Member]
Derivative [Line Items]
Length of time current hedges cover	11 months
Maximum [Member] | European Subsidiaries [Member] | Swedish Krona [Member]
Derivative [Line Items]
Length of time current hedges cover	11 months
Maximum [Member] | European Subsidiaries [Member] | Swedish Krona [Member]
Derivative [Line Items]
Length of time current hedges cover	11 months
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member]
Derivative [Line Items]
Length of time current hedges cover	51 months
Natural Gas Swap Contracts [Member]
Derivative [Line Items]
Earnings hedge ineffectiveness	$ 0	$ 0
Cumulative (loss) gain recorded in accumulated other comprehensive loss	(6,000,000)
Natural Gas Swap Contracts [Member] | Cost of Sale [Member]
Derivative [Line Items]
Cumulative (loss) gain recorded in accumulated other comprehensive loss	$ (1,000,000)
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
Currency Derivatives [Member] | Cost of Sale [Member]
Derivative [Line Items]
Cumulative (loss) gain recorded in accumulated other comprehensive loss	$ (1,000,000)
Accounts Receivable [Member] | Credit Concentration Risk [Member]
Derivative [Line Items]
Maximum percentage of receivables a single customer represents	13.00%		12.00%

Derivatives and Hedging Activ38

Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail)	Mar. 31, 2018USD ($)MMBTU
2018 [Member]
Derivative [Line Items]
Notional contractual quantity under derivative contracts | MMBTU	8,955,000
Notional contractual value under derivative contracts | $	$ 27,000,000
Percentage of forecasted purchases under derivative contracts	51.00%
2019 [Member]
Derivative [Line Items]
Notional contractual quantity under derivative contracts | MMBTU	11,430,000
Notional contractual value under derivative contracts | $	$ 34,000,000
Percentage of forecasted purchases under derivative contracts	45.00%
2020 [Member]
Derivative [Line Items]
Notional contractual quantity under derivative contracts | MMBTU	8,880,000
Notional contractual value under derivative contracts | $	$ 27,000,000
Percentage of forecasted purchases under derivative contracts	35.00%
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	16.00%
2022 [Member]
Derivative [Line Items]
Notional contractual quantity under derivative contracts | MMBTU	2,070,000
Notional contractual value under derivative contracts | $	$ 6,000,000
Percentage of forecasted purchases under derivative contracts	8.00%

Derivatives and Hedging Activ39

Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member]	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2018CAD ($)
Pulp and Paper [Member] | CAD/USD Denominated Notional Contractual Value For 2018 [Member]
Derivative [Line Items]
Notional contractual value		$ 395,000,000
Percentage of forecasted net exposures under contracts	62.00%
Currency exposure hedged, Average Protection rate	1.2799	1.2799
Currency exposure hedged, Average Obligation rate	1.3267	1.3267
Pulp and Paper [Member] | CAD/USD Denominated Notional Contractual Value For 2019 [Member]
Derivative [Line Items]
Notional contractual value		$ 325,000,000
Percentage of forecasted net exposures under contracts	38.00%
Currency exposure hedged, Average Protection rate	1.2733	1.2733
Currency exposure hedged, Average Obligation rate	1.3032	1.3032
Pulp and Paper [Member] | CAD/USD Denominated Notional Contractual Value For 2020 [Member]
Derivative [Line Items]
Notional contractual value		$ 66,000,000
Percentage of forecasted net exposures under contracts	8.00%
Currency exposure hedged, Average Protection rate	1.2773	1.2773
Currency exposure hedged, Average Obligation rate	1.2773	1.2773
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2018 [Member]
Derivative [Line Items]
Notional contractual value	$ 47,000,000
Percentage of forecasted net exposures under contracts	84.00%
Currency exposure hedged, Average Protection rate	1.1680	1.1680
Currency exposure hedged, Average Obligation rate	1.1931	1.1931
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2019 [Member]
Derivative [Line Items]
Notional contractual value	$ 9,000,000
Percentage of forecasted net exposures under contracts	12.00%
Currency exposure hedged, Average Protection rate	1.2233	1.2233
Currency exposure hedged, Average Obligation rate	1.2959	1.2959

Derivatives and Hedging Activ40

Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Total Assets	$ 9	$ 21
Total Liabilities	15	12
Long-term debt	1,165	1,216
Trade and Other Payables [Member]
Derivative [Line Items]
Stock-based compensation - liability awards	5	6
Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Stock-based compensation - liability awards	14	20
Currency Derivatives [Member] | Prepaid Expenses [Member]
Derivative [Line Items]
Total Assets	7	16
Currency Derivatives [Member] | Other Assets [Member]
Derivative [Line Items]
Total Assets	2	4
Currency Derivatives [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	8	5
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities	1
Natural Gas Swap Contracts [Member] | Other Assets [Member]
Derivative [Line Items]
Total Assets		1
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	1	2
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities	5	5
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Stock-based compensation - liability awards	5	6
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Stock-based compensation - liability awards	14	20
Significant Observable Inputs (Level 2) [Member]
Derivative [Line Items]
Total Assets	9	21
Total Liabilities	15	12
Long-term debt	1,165	1,216
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member]
Derivative [Line Items]
Total Assets	7	16
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member]
Derivative [Line Items]
Total Assets	2	4
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	8	5
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities	1
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member]
Derivative [Line Items]
Total Assets		1
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	1	2
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities	$ 5	$ 5

Derivatives and Hedging Activ41

Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
The carrying value of the Company's long-term debt	$ 1,104	$ 1,130

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
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net earnings	$ 54	$ 20
Weighted average number of common shares outstanding (millions)	62.7	62.6
Effect of dilutive securities (millions)	0.2	0.2
Weighted average number of diluted common shares outstanding (millions)	62.9	62.8
Basic net earnings per common share (in dollars)	$ 0.86	$ 0.32
Diluted net earnings per common share (in dollars)	$ 0.86	$ 0.32

Earnings Per Common Share - Sec

Earnings Per Common Share - Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future (Detail) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
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	230,601	419,161

Pension Plans and Other Post-44

Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Pension expense	$ 13	$ 12
Pension Plans [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Plan contributions	3	3
Other Post-Retirement Benefit Plans [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Plan contributions	$ 1	$ 1

Pension Plans and Other Post-45

Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8	$ 8
Interest expense	14	12
Expected return on plan assets	(21)	(20)
Amortization of net actuarial loss	2	2
Amortization of prior year service costs	1	1
Net periodic benefit cost	$ 4	3
Other Post-Retirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest expense		1
Net periodic benefit cost		$ 1

Other Operating Income, Net - C

Other Operating Income, Net - Components of Other Operating Income, Net (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Income And Expenses [Abstract]
Net gains on disposals of property, plant and equipment	$ (1)
Bad debt expense	1
Foreign exchange (gain) loss	(3)	$ 1
Other	(2)	(2)
Other operating income, net	$ (5)	$ (1)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 11	$ 5
Current income tax expense (benefit)	14	9
Deferred income tax expense (benefit)	(3)	(4)
Tax payments, net of tax refunds	$ 4	$ (8)
Effective income tax rate	17.00%	20.00%
Unrecognized tax benefits	$ 1
Recognition of previously unrecognized tax benefit		$ 1
Provisional repatriation tax amount			$ 46

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Work in process and finished goods	$ 397	$ 399
Raw materials	143	135
Operating and maintenance supplies	226	223
Total inventories	$ 766	$ 757

Intangible Assets - Components

Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Intangible Assets Excluding Goodwill [Line Items]
Definite-lived intangible assets subject to amortization, gross carrying amount	$ 437	$ 433
Accumulated amortization	(102)	(96)
Intangible assets, net	335	337
Total, Gross carrying amount	739	729
Intangible assets, net of amortization	637	633
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	250	245
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	$ 42	41
Water Rights [Member]
Intangible Assets Excluding Goodwill [Line Items]
Estimated useful lives (in years)	40 years
Definite-lived intangible assets subject to amortization, gross carrying amount	$ 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	397	392
Accumulated amortization	(85)	(79)
Intangible assets, net	$ 312	313
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	(4)	(4)
Intangible assets, net	$ 4	4
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
Accumulated amortization	$ (1)	(1)
License Rights [Member]
Intangible Assets Excluding Goodwill [Line Items]
Estimated useful lives (in years)	12 years
Definite-lived intangible assets subject to amortization, gross carrying amount	$ 28	29
Accumulated amortization	(11)	(11)
Intangible assets, net	$ 17	$ 18

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5	$ 5

Intangible Assets - Amortizatio

Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions	Mar. 31, 2018USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets, 2018	$ 22
Amortization expense related to intangible assets, 2019	22
Amortization expense related to intangible assets, 2020	21
Amortization expense related to intangible assets, 2021	21
Amortization expense related to intangible assets, 2022	$ 21

Changes in Accumulated Other 52

Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ (336)	$ (499)	$ (499)
Other comprehensive (loss) income before reclassifications	(20)		163
Other comprehensive (loss) income	(20)	14	163
Ending balance	(356)		(336)
Natural Gas Swap Contracts [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications			(5)
Currency Options [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	(6)		11
Foreign Exchange Forward Contracts [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	(3)
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	(11)		146
Net (Gain) Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications			11
Net Derivative Gains (Losses) on Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	8	11	11
Other comprehensive (loss) income before reclassifications	(9)		6
Amounts reclassified from Accumulated other comprehensive loss	(2)		(9)
Other comprehensive (loss) income	(11)		(3)
Ending balance	(3)		8
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications			(5)
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Currency Options [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	(6)		11
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	(3)
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(218)	(221)	(221)
Other comprehensive (loss) income before reclassifications			(6)
Amounts reclassified from Accumulated other comprehensive loss	2		9
Other comprehensive (loss) income	2		3
Ending balance	(216)		(218)
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			(6)
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	6	(11)	(11)
Other comprehensive (loss) income before reclassifications			17
Other comprehensive (loss) income			17
Ending balance	6		6
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			17
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(132)	$ (278)	(278)
Other comprehensive (loss) income before reclassifications	(11)		146
Other comprehensive (loss) income	(11)		146
Ending balance	(143)		(132)
Foreign Currency Items [Member] | Foreign Currency Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive (loss) income before reclassifications	$ (11)		$ 146

Changes in Accumulated Other 53

Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Earnings before income taxes	$ 65	$ 25
Tax expense (benefit)	(11)	(5)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Losses on Cash Flow Hedges [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Earnings before income taxes	(3)	(5)
Tax expense (benefit)	1	2
Net of tax	(2)	(3)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Losses on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Sales	(1)	(1)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Losses on Cash Flow Hedges [Member] | Currency Options and Forwards [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Sales	(2)	(4)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Amortization of net actuarial loss	2	2
Amortization of prior year service cost	1	1
Earnings before income taxes	3	3
Tax expense (benefit)	(1)	(1)
Net of tax	$ 2	$ 2

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	May 08, 2018	Apr. 16, 2018	Jan. 29, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Shareholders' Equity [Line Items]
Dividend per share			$ 0.435
Increase in dividend per share			$ 0.02
Percentage of increase in dividend			4.80%
Record date			Apr. 2, 2018
Declared date			Jan. 29, 2018
Payment date			Apr. 16, 2018
Stock repurchased, shares				0	0	24,853,827
Stock repurchased, average price						$ 39.33
Stock repurchased, value						$ 977,000,000
Treasury stock, par value				$ 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
Subsequent Event [Member]
Shareholders' Equity [Line Items]
Dividend per share	$ 0.435
Record date	Jul. 3, 2018
Declared date	May 8, 2018
Dividends paid		$ 27,000,000
Payment date	Jul. 16, 2018

Commitments and Contingencies -

Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Balance at beginning of year	$ 44
Environmental spending	(3)
Effect of foreign currency exchange rate change	(1)
Balance at end of period	$ 40

Commitments and Contingencies56

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018USD ($)
Pension Plans [Member]
Commitments And Contingencies [Line Items]
Provision for liability	$ 0
Indemnification Guarantee [Member]
Commitments And Contingencies [Line Items]
Provision for liability	$ 0

Segment Disclosures - Additiona

Segment Disclosures - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018Segment
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
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Sales	$ 1,345	$ 1,302
Depreciation and amortization	79	80
Consolidated operating income (loss)	77	38
Interest expense, net	16	17
Non-service components of net periodic benefit cost	(4)	(4)
Earnings before income taxes	65	25
Income tax expense (NOTE 7)	11	5
Net earnings	54	20
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales	1,362	1,320
Operating Segments [Member] | Communication Paper
Segment Reporting Information [Line Items]
Sales	631	623
Operating Segments [Member] | Specialty And Packaging Paper
Segment Reporting Information [Line Items]
Sales	174	163
Operating Segments [Member] | Market Pulp Product
Segment Reporting Information [Line Items]
Sales	278	269
Operating Segments [Member] | Absorbent Hygiene Products
Segment Reporting Information [Line Items]
Sales	262	247
Operating Segments [Member] | Pulp and Paper [Member]
Segment Reporting Information [Line Items]
Sales	1,100	1,073
Depreciation and amortization	61	64
Consolidated operating income (loss)	76	30
Operating Segments [Member] | Personal Care [Member]
Segment Reporting Information [Line Items]
Sales	262	247
Depreciation and amortization	18	16
Consolidated operating income (loss)	8	16
Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Sales	(17)	(18)
Corporate [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss)	$ (7)	$ (8)

Segment Disclosures - Analysi59

Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Sales	$ 1,345	$ 1,302
Consolidated operating income (loss)	77	38
Scenario Previously Reported [Member]
Segment Reporting Information [Line Items]
Sales		1,304
Consolidated operating income (loss)		42
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales	1,362	1,320
Operating Segments [Member] | Pulp and Paper [Member]
Segment Reporting Information [Line Items]
Sales	1,100	1,073
Consolidated operating income (loss)	76	30
Operating Segments [Member] | Pulp and Paper [Member] | Scenario Previously Reported [Member]
Segment Reporting Information [Line Items]
Sales		1,073
Consolidated operating income (loss)		34
Operating Segments [Member] | Personal Care [Member]
Segment Reporting Information [Line Items]
Sales	262	247
Consolidated operating income (loss)	8	16
Operating Segments [Member] | Personal Care [Member] | Scenario Previously Reported [Member]
Segment Reporting Information [Line Items]
Sales		249
Consolidated operating income (loss)		16
Intersegment Sales [Member]
Segment Reporting Information [Line Items]
Sales	(17)	(18)
Intersegment Sales [Member] | Scenario Previously Reported [Member]
Segment Reporting Information [Line Items]
Sales		(18)
Corporate [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss)	$ (7)	(8)
Corporate [Member] | Scenario Previously Reported [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss)		$ (8)

Supplemental Guarantor Financ60

Supplemental Guarantor Financial Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018
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 Financ61

Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings and Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Condensed Income Statements Captions [Line Items]
Sales	$ 1,345	$ 1,302
Operating expenses
Cost of sales, excluding depreciation and amortization	1,084	1,079
Depreciation and amortization	79	80
Selling, general and administrative	110	106
Other operating income, net (NOTE 6)	(5)	(1)
Operating expenses	1,268	1,264
Operating income	77	38
Interest expense, net	16	17
Non-service components of net periodic benefit cost	(4)	(4)
(Loss) earnings before income taxes	65	25
Income tax expense (NOTE 7)	11	5
Net earnings	54	20
Other comprehensive Income (loss)	(20)	14	$ 163
Comprehensive income	34	34
Parent [Member]
Operating expenses
Selling, general and administrative	4	2
Operating expenses	4	2
Operating income	(4)	(2)
Interest expense, net	16	17
(Loss) earnings before income taxes	(20)	(19)
Income tax expense (NOTE 7)	(4)	(4)
Share in earnings of equity accounted investees	70	35
Net earnings	54	20
Other comprehensive Income (loss)	(20)	14
Comprehensive income	34	34
Guarantor Subsidiaries [Member]
Condensed Income Statements Captions [Line Items]
Sales	1,083	1,086
Operating expenses
Cost of sales, excluding depreciation and amortization	943	970
Depreciation and amortization	56	59
Selling, general and administrative	45	33
Other operating income, net (NOTE 6)	(2)	(2)
Operating expenses	1,042	1,060
Operating income	41	26
Interest expense, net	22	20
Non-service components of net periodic benefit cost	1
(Loss) earnings before income taxes	18	6
Income tax expense (NOTE 7)	4	2
Share in earnings of equity accounted investees	56	31
Net earnings	70	35
Other comprehensive Income (loss)	(18)	18
Comprehensive income	52	53
Non-Guarantor Subsidiaries [Member]
Condensed Income Statements Captions [Line Items]
Sales	548	514
Operating expenses
Cost of sales, excluding depreciation and amortization	427	407
Depreciation and amortization	23	21
Selling, general and administrative	61	71
Other operating income, net (NOTE 6)	(3)	1
Operating expenses	508	500
Operating income	40	14
Interest expense, net	(22)	(20)
Non-service components of net periodic benefit cost	(5)	(4)
(Loss) earnings before income taxes	67	38
Income tax expense (NOTE 7)	11	7
Net earnings	56	31
Other comprehensive Income (loss)	(10)	16
Comprehensive income	46	47
Consolidating Adjustments [Member]
Condensed Income Statements Captions [Line Items]
Sales	(286)	(298)
Operating expenses
Cost of sales, excluding depreciation and amortization	(286)	(298)
Operating expenses	(286)	(298)
Share in earnings of equity accounted investees	(126)	(66)
Net earnings	(126)	(66)
Other comprehensive Income (loss)	28	(34)
Comprehensive income	$ (98)	$ (100)

Supplemental Guarantor Financ62

Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 152	$ 139	$ 111	$ 125
Receivables	704	704
Inventories	766	757
Prepaid expenses	27	33
Income and other taxes receivable	16	24
Total current assets	1,665	1,657
Property, plant and equipment, net	2,694	2,765
Intangible assets, net	637	633
Other assets	155	157
Total assets	5,151	5,212
Current liabilities
Trade and other payables	682	716
Income and other taxes payable	30	24
Long-term debt due within one year	1	1
Total current liabilities	713	741
Long-term debt	1,103	1,129
Deferred income taxes and other	486	491
Other liabilities and deferred credits	356	368
Shareholders' equity	2,493	2,483
Total liabilities and shareholders' equity	5,151	5,212
Parent [Member]
Current assets
Cash and cash equivalents	2	3	7	17
Prepaid expenses	3	5
Income and other taxes receivable	11	7
Intercompany accounts	372	380
Total current assets	388	395
Investments in affiliates	3,945	3,892
Intercompany long-term advances	6	6
Other assets	22	22
Total assets	4,361	4,315
Current liabilities
Trade and other payables	51	55
Intercompany accounts	274	244
Income and other taxes payable	2	1
Total current liabilities	327	300
Long-term debt	792	792
Intercompany long-term loans	689	674
Other liabilities and deferred credits	60	66
Shareholders' equity	2,493	2,483
Total liabilities and shareholders' equity	4,361	4,315
Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	15	14	5	14
Receivables	428	402
Inventories	514	522
Prepaid expenses	18	22
Income and other taxes receivable	2	1
Intercompany accounts	345	314
Total current assets	1,322	1,275
Property, plant and equipment, net	1,829	1,870
Intangible assets, net	264	268
Investments in affiliates	2,656	2,609
Intercompany long-term advances	81	81
Other assets	18	24
Total assets	6,170	6,127
Current liabilities
Trade and other payables	396	424
Intercompany accounts	74	63
Income and other taxes payable	22	14
Total current liabilities	492	501
Long-term debt	299	300
Intercompany long-term loans	934	925
Deferred income taxes and other	347	356
Other liabilities and deferred credits	153	153
Shareholders' equity	3,945	3,892
Total liabilities and shareholders' equity	6,170	6,127
Non-Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	135	122	$ 99	$ 94
Receivables	276	302
Inventories	252	235
Prepaid expenses	6	6
Income and other taxes receivable	11	16
Intercompany accounts	55	45
Total current assets	735	726
Property, plant and equipment, net	865	895
Intangible assets, net	373	365
Intercompany long-term advances	1,537	1,513
Other assets	133	129
Total assets	3,643	3,628
Current liabilities
Trade and other payables	235	237
Intercompany accounts	424	432
Income and other taxes payable	14	9
Long-term debt due within one year	1	1
Total current liabilities	674	679
Long-term debt	12	37
Intercompany long-term loans	1	1
Deferred income taxes and other	157	153
Other liabilities and deferred credits	143	149
Shareholders' equity	2,656	2,609
Total liabilities and shareholders' equity	3,643	3,628
Consolidating Adjustments [Member]
Current assets
Income and other taxes receivable	(8)
Intercompany accounts	(772)	(739)
Total current assets	(780)	(739)
Investments in affiliates	(6,601)	(6,501)
Intercompany long-term advances	(1,624)	(1,600)
Other assets	(18)	(18)
Total assets	(9,023)	(8,858)
Current liabilities
Intercompany accounts	(772)	(739)
Income and other taxes payable	(8)
Total current liabilities	(780)	(739)
Intercompany long-term loans	(1,624)	(1,600)
Deferred income taxes and other	(18)	(18)
Shareholders' equity	(6,601)	(6,501)
Total liabilities and shareholders' equity	$ (9,023)	$ (8,858)

Supplemental Guarantor Financ63

Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities
Net earnings	$ 54	$ 20
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings	36	71
Cash flows from operating activities	90	91
Investing activities
Additions to property, plant and equipment	(25)	(34)
Proceeds from disposals of property, plant and equipment	1
Other	(4)
Cash flows used for investing activities	(28)	(34)
Financing activities
Dividend payments	(26)	(26)
Net change in bank indebtedness		(11)
Change in revolving credit facility		(20)
Repayments of receivables securitization facility	(25)	(15)
Cash flows used for financing activities	(51)	(72)
Net increase (decrease) in cash and cash equivalents	11	(15)
Impact of foreign exchange on cash	2	1
Cash and cash equivalents at beginning of period	139	125
Cash and cash equivalents at end of period	152	111
Parent [Member]
Operating activities
Net earnings	54	20
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings	(36)
Cash flows from operating activities	18	20
Financing activities
Dividend payments	(26)	(26)
Change in revolving credit facility		(20)
Decrease in long-term advances to related parties	7	16
Cash flows used for financing activities	(19)	(30)
Net increase (decrease) in cash and cash equivalents	(1)	(10)
Cash and cash equivalents at beginning of period	3	17
Cash and cash equivalents at end of period	2	7
Guarantor Subsidiaries [Member]
Operating activities
Net earnings	70	35
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings	(66)	(20)
Cash flows from operating activities	4	15
Investing activities
Additions to property, plant and equipment	(13)	(15)
Cash flows used for investing activities	(13)	(15)
Financing activities
Net change in bank indebtedness		(10)
Decrease in long-term advances to related parties	10	1
Cash flows used for financing activities	10	(9)
Net increase (decrease) in cash and cash equivalents	1	(9)
Cash and cash equivalents at beginning of period	14	14
Cash and cash equivalents at end of period	15	5
Non-Guarantor Subsidiaries [Member]
Operating activities
Net earnings	56	31
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings	12	25
Cash flows from operating activities	68	56
Investing activities
Additions to property, plant and equipment	(12)	(19)
Proceeds from disposals of property, plant and equipment	1
Other	(4)
Cash flows used for investing activities	(15)	(19)
Financing activities
Net change in bank indebtedness		(1)
Repayments of receivables securitization facility	(25)	(15)
Increase in long-term advances to related parties	(17)	(17)
Cash flows used for financing activities	(42)	(33)
Net increase (decrease) in cash and cash equivalents	11	4
Impact of foreign exchange on cash	2	1
Cash and cash equivalents at beginning of period	122	94
Cash and cash equivalents at end of period	135	99
Consolidating Adjustments [Member]
Operating activities
Net earnings	(126)	(66)
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings	126	66
Financing activities
Increase in long-term advances to related parties	17	17
Decrease in long-term advances to related parties	$ (17)	$ (17)