Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 16, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UFS | ||
Entity Registrant Name | Domtar CORP | ||
Entity Central Index Key | 1,381,531 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 62,923,743 | ||
Entity Public Float | $ 3,002,586,945 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Sales | $ 5,455 | $ 5,148 | $ 5,090 |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 4,303 | 4,145 | 4,051 |
Depreciation and amortization | 308 | 321 | 348 |
Selling, general and administrative | 443 | 444 | 418 |
Impairment of property, plant and equipment and goodwill (NOTE 4) | 7 | 578 | 29 |
Closure and restructuring costs (NOTE 15) | 8 | 2 | 32 |
Other operating (income) loss, net (NOTE 8) | (14) | 4 | |
Operating expenses | 5,069 | 5,476 | 4,882 |
Operating income (loss) | 386 | (328) | 208 |
Interest expense, net (NOTE 9) | 62 | 66 | 66 |
Non-service components of net periodic benefit cost (NOTE 7) | (18) | (11) | (15) |
Earnings (loss) before income taxes and equity loss | 342 | (383) | 157 |
Income tax expense (benefit) (NOTE 10) | 57 | (125) | 29 |
Equity loss, net of taxes | 2 | ||
Net earnings (loss) | $ 283 | $ (258) | $ 128 |
Per common share (in dollars) (NOTE 6) | |||
Basic | $ 4.50 | $ (4.11) | $ 2.04 |
Diluted | $ 4.48 | $ (4.11) | $ 2.04 |
Weighted average number of common shares outstanding (millions) | |||
Basic | 62.9 | 62.7 | 62.6 |
Diluted | 63.1 | 62.7 | 62.7 |
Cash dividends per common share | $ 1.72 | $ 1.66 | $ 1.63 |
Net earnings (loss) | $ 283 | $ (258) | $ 128 |
Net derivative (losses) gains on cash flow hedges | |||
Net (losses) gains arising during the period, net of tax $10 (2017 – $(5); 2016 – $(15)) | (30) | 6 | 27 |
Less: Reclassification adjustment for (gains) losses included in net earnings (loss), net of tax of $1 (2017 – $5; 2016 – $(10)) | (2) | (9) | 14 |
Foreign currency translation adjustments | (91) | 146 | (7) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $3 (2017 – $(5); 2016 – $12) | (8) | 20 | (32) |
Other comprehensive (loss) income | (131) | 163 | 2 |
Comprehensive income (loss) | $ 152 | $ (95) | $ 130 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net (losses) gains arising during the period, tax | $ 10 | $ (5) | $ (15) |
Reclassification adjustment for (gains) losses included in net earnings (loss), net, tax | 1 | 5 | (10) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 3 | $ (5) | $ 12 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 111 | $ 139 |
Receivables, less allowances of $6 and $7 | 670 | 704 |
Inventories (NOTE 11) | 762 | 757 |
Prepaid expenses | 24 | 33 |
Income and other taxes receivable | 22 | 24 |
Total current assets | 1,589 | 1,657 |
Property, plant and equipment, net (NOTE 12) | 2,605 | 2,765 |
Intangible assets, net (NOTE 13) | 597 | 633 |
Other assets (NOTE 14) | 134 | 157 |
Total assets | 4,925 | 5,212 |
Current liabilities | ||
Trade and other payables (NOTE 16) | 757 | 716 |
Income and other taxes payable | 25 | 24 |
Long-term debt due within one year (NOTE 18) | 1 | 1 |
Total current liabilities | 783 | 741 |
Long-term debt (NOTE 18) | 853 | 1,129 |
Deferred income taxes and other (NOTE 10) | 476 | 491 |
Other liabilities and deferred credits (NOTE 19) | 275 | 368 |
Commitments and contingencies (NOTE 21) | ||
Shareholders' equity (NOTE 20) | ||
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 | 1,981 | 1,969 |
Retained earnings | 1,023 | 849 |
Accumulated other comprehensive loss | (467) | (336) |
Total shareholders' equity | 2,538 | 2,483 |
Total liabilities and shareholders' equity | $ 4,925 | $ 5,212 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 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 | 2,086,535 | 2,305,419 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ 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, 2015 | $ 2,652 | $ 1 | $ 1,966 | $ 1,186 | $ (501) |
Balance, Shares at Dec. 31, 2015 | 62,800,000 | ||||
Stock-based compensation, net of tax | 7 | 7 | |||
Stock-based compensation, shares | 100,000 | ||||
Net (loss) earnings | 128 | 128 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 27 | 27 | |||
Less: Reclassification adjustments for losses (gains) included in net earnings (loss), net of tax | 14 | 14 | |||
Foreign currency translation adjustments | (7) | (7) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | (32) | (32) | |||
Stock repurchase | (10) | (10) | |||
Stock repurchase, shares | (300,000) | ||||
Cash dividends declared | (103) | (103) | |||
Balance at Dec. 31, 2016 | 2,676 | $ 1 | 1,963 | 1,211 | (499) |
Balance, Shares at Dec. 31, 2016 | 62,600,000 | ||||
Stock-based compensation, net of tax | 6 | 6 | |||
Stock-based compensation, shares | 100,000 | ||||
Net (loss) earnings | (258) | (258) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 6 | 6 | |||
Less: Reclassification adjustments for losses (gains) included in net earnings (loss), net of tax | (9) | (9) | |||
Foreign currency translation adjustments | 146 | 146 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | $ 20 | 20 | |||
Stock repurchase, shares | 0 | ||||
Cash dividends declared | $ (104) | (104) | |||
Balance at Dec. 31, 2017 | 2,483 | $ 1 | 1,969 | 849 | (336) |
Balance, Shares at Dec. 31, 2017 | 62,700,000 | ||||
Stock-based compensation, net of tax | 12 | 12 | |||
Stock-based compensation, shares | 200,000 | ||||
Net (loss) earnings | 283 | 283 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | (30) | (30) | |||
Less: Reclassification adjustments for losses (gains) included in net earnings (loss), net of tax | (2) | (2) | |||
Foreign currency translation adjustments | (91) | (91) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | $ (8) | (8) | |||
Stock repurchase, shares | 0 | ||||
Cash dividends declared | $ (109) | (109) | |||
Balance at Dec. 31, 2018 | $ 2,538 | $ 1 | $ 1,981 | $ 1,023 | $ (467) |
Balance, Shares at Dec. 31, 2018 | 62,900,000 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Net (losses) gains arising during the period, tax | $ 10 | $ (5) | $ (15) |
Reclassification adjustment for (gains) losses included in net earnings (loss), net, tax | 1 | 5 | (10) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 3 | $ (5) | $ 12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net earnings (loss) | $ 283 | $ (258) | $ 128 |
Adjustments to reconcile net earnings (loss) to cash flows from operating activities | |||
Depreciation and amortization | 308 | 321 | 348 |
Deferred income taxes and tax uncertainties (NOTE 10) | 13 | (207) | 9 |
Impairment of property, plant and equipment and goodwill (NOTE 4) | 7 | 578 | 29 |
Net gains on disposals of property, plant and equipment | (4) | (13) | |
Stock-based compensation expense | 8 | 6 | 7 |
Equity loss, net | 2 | ||
Other | (1) | 2 | (2) |
Changes in assets and liabilities, excluding the effect of sale and acquisition of businesses | |||
Receivables | 18 | (72) | 18 |
Inventories | (24) | 21 | 14 |
Prepaid expenses | 2 | 5 | 5 |
Trade and other payables | 24 | 35 | (51) |
Income and other taxes | (32) | 12 | (18) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (46) | (32) | (21) |
Other assets and other liabilities | (4) | 51 | (1) |
Cash flows from operating activities | 554 | 449 | 465 |
Investing activities | |||
Additions to property, plant and equipment | (195) | (182) | (347) |
Proceeds from disposals of property, plant and equipment and sale of business | 5 | 19 | 1 |
Acquisition of businesses, net of cash acquired (NOTE 3) | (8) | (46) | |
Other | (6) | 1 | |
Cash flows used for investing activities | (196) | (171) | (391) |
Financing activities | |||
Dividend payments | (108) | (104) | (102) |
Stock repurchase | (10) | ||
Net change in bank indebtedness | (12) | 12 | |
Change in revolving credit facility | (50) | ||
Proceeds from receivables securitization facility | 85 | 45 | 140 |
Repayments of receivables securitization facility | (60) | (90) | (70) |
Repayments of long-term debt | (301) | (64) | (40) |
Other | 2 | 1 | (3) |
Cash flows used for financing activities | (382) | (274) | (73) |
Net (decrease) increase in cash and cash equivalents | (24) | 4 | 1 |
Impact of foreign exchange on cash | (4) | 10 | (2) |
Cash and cash equivalents at beginning of year | 139 | 125 | 126 |
Cash and cash equivalents at end of year | 111 | 139 | 125 |
Supplemental cash flow information | |||
Interest | 57 | 58 | 64 |
Income taxes | $ 71 | $ 33 | $ 40 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Domtar designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of wood fiber converting assets that produce paper grade, fluff and specialty pulp. The majority of this pulp production is consumed internally to manufacture paper and other consumer products with the balance sold as market pulp. Domtar is the largest integrated marketer of uncoated freesheet paper in North America serving a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users. Domtar also designs, manufactures, markets and distributes a broad line of absorbent hygiene products, as well as infant diapers. BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. The equity method of accounting is used for investments in affiliates over which the Company has significant influence but does not have effective control. TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and is partially offset by the Company’s hedging program (refer to Note 22 “Derivatives and hedging activities and fair value measurement”). At December 31, 2018, the accumulated translation adjustment accounts amounted to $(223) million (2017 – $(132) million). 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 due in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Sales taxes, and other similar taxes, collected from customers are excluded from revenue. SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required impairments, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events at December 31, 2018. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive (loss) income in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). If and when incurred, the Company accounts for any taxes associated with Global Intangible Low-Taxed Income (“GILTI”) as a period cost. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. RECEIVABLES Receivables are recorded net of a provision for doubtful accounts that is based on expected collectability. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $227 million and $236 million at December 31, 2018 and 2017, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $61 million and $54 million greater at December 31, 2018 and 2017, respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over periods of 10 to 40 years and machinery and equipment over periods of 3 to 20 years. No depreciation is recorded on assets under construction. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, by comparing the net book value of the asset group to their estimated undiscounted future cash flows expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment of property, plant and equipment and goodwill”). INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangible assets are not amortized and are evaluated for impairment individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amounts. The qualitative assessment follows the same process as the one performed for goodwill, as described below. If a qualitative assessment is performed and after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of the indefinite-lived intangible assets are less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include trade names related to Attends®, IncoPack®, Indasec® and Reassure®, catalog rights related to Laboratorios Indas S.A.U., license rights related to Xerox and water rights. The Company reviews its indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support indefinite useful lives. Definite-lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite-lived intangible assets include water rights, customer relationships, technology, non-compete agreements as well as license rights, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of property, plant and equipment. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years Goodwill is not amortized; instead it is evaluated for impairment at the beginning of the fourth quarter of every year or more frequently whenever indicators of potential impairment exist. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The Company performs its goodwill impairment test at the reporting unit level. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not (greater than 50%) that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, the Company may identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value and assesses their impact on the fair value of the reporting unit. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If, a qualitative assessment is performed and after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then it performs the quantitative goodwill impairment test. The Company can also elect to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value including goodwill and recognizing an impairment charge for the amount by which the carrying value exceeds the fair value. The impairment charge is limited to the total amount of goodwill allocated to the reporting unit. Significant judgment is required to estimate the fair value of a reporting unit. The Company uses an income approach to determine the fair value of a reporting unit. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows. Key estimates supporting the cash flow projections include, but are not limited to, management’s assessment of industry and market conditions as well as its estimates of revenue growth rates and profit margins, economic indicators, tax rates and capital expenditures. Assumptions used in the impairment evaluations are consistent with internal projections and operating plans. Analysis of the sensitivities of the fair value estimate to changes in assumptions are also performed. Unanticipated market and macroeconomic events and circumstances may occur and could affect the accuracy and validity of management assumptions and estimates. OTHER ASSETS Other assets are recorded at cost. DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheets as a deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are recorded when remediation efforts are probable and can be reasonably estimated. Provisions for environmental matters are generally not discounted, due to uncertainty with respect to timing of expenditures. Asset retirement obligations are mainly associated with landfill operation and closure, dredging of settling ponds and bark pile management and are recognized, at fair value, in the period in which Domtar incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated or on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost (net of estimated forfeitures) of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value at the end of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital in the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vest pro rata on the first three anniversaries of the grant and have a seven-year term. Service and performance-based awards vest on the third anniversary of the grant. The performance-based awards have an additional feature where the ultimate number of units that vest will be determined by the Company’s performance results or shareholder return in relation to a predetermined target over the vesting period. Deferred Share Units vest immediately at the grant date and are remeasured at the end of each reporting period, until settlement, using the quoted market value. Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 1,246,036 shares are reserved for issuance in connection with awards to be granted. DERIVATIVE INSTRUMENTS Derivative instruments are utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive (loss) income. These amounts are reclassified in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) in the periods in which results are affected by the cash flows of the hedged item within the same line item. Any hedge ineffectiveness is recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) when incurred. PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately nine years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately nine years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately 13 years of the active employee group covered by the plans. GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 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 (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016. The previously reported amounts for Sales and Selling, general and administrative expenses were decreased by $9 million and $8 million, respectively, 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 (Loss) and Comprehensive Income (Loss) 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 (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016. The previously reported amounts of Cost of sales were increased by $14 million and $16 million, respectively, Selling, general and administrative expenses were decreased by $3 million and $1 million, respectively, both 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 (loss) within the Company’s reportable operating segment disclosures for the years ended December 31, 2017 and 2016. Year ended December 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,157 (9 ) — 5,148 Operating expenses Cost of sales, excluding depreciation and amortization 4,131 — 14 4,145 Depreciation and amortization 321 — — 321 Selling, general and administrative 456 (9 ) (3 ) 444 Impairment of goodwill 578 — — 578 Closure and restructuring costs 2 — — 2 Other operating income, net (14 ) — — (14 ) 5,474 (9 ) 11 5,476 Operating loss (317 ) — (11 ) (328 ) Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (11 ) (11 ) Loss before income taxes (383 ) — — (383 ) Income tax benefit (125 ) — — (125 ) Net loss (258 ) — — (258 ) Year ended December 31, 2016 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,098 (8 ) — 5,090 Operating expenses Cost of sales, excluding depreciation and amortization 4,035 — 16 4,051 Depreciation and amortization 348 — — 348 Selling, general and administrative 427 (8 ) (1 ) 418 Impairment of property, plant and equipment 29 — — 29 Closure and restructuring costs 32 — — 32 Other operating loss, net 4 — — 4 4,875 (8 ) 15 4,882 Operating income (loss) 223 — (15 ) 208 Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (15 ) (15 ) Earnings before income taxes 157 — — 157 Income tax expense 29 — — 29 Net earnings 128 — — 128 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, the FASB issued ASU 2016-02, “ Leases As a lessee, Domtar’s various leases under the existing accounting standard are classified as operating leases that are not recorded on the Consolidated Balance Sheets but are recorded in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss) as the lease expense is recognized on a straight-line basis over the lease term. With the adoption of the new standard, the Company is required to record substantially all operating leases on the Consolidated Balance Sheets as right-of-use assets and lease liabilities. The operating lease expense will continue to be recognized on a straight-line basis over the lease term. The accounting for finance leases will remain substantially unchanged. The Company elected to apply the new leases standard as of January 1, 2019. Upon adoption, no cumulative-effect adjustments to the retained earnings were required. At January 1, 2019, the amounts of the operating lease right-of-use assets and lease liabilities were $81 million and $90 million, respectively. The adoption of the standard will not have an impact on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). For all comparative periods presented in the Consolidated financial statements prior to the adoption of the new leases standard, the Company will continue to report operating leases under Topic 840 “Leases” and provide the related required disclosures. IMPLEMENTATION COSTS FOR CLOUD COMPUTING ARRANGEMENTS In August 2018, the FASB issued ASU 2018-15 “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract • Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted CCA service, if any (generally as an “other asset”). • The amortization of capitalized implementation costs should be presented in the same statement of earnings line item as the fees associated with the hosted CCA service. Accordingly, the amortization of capitalized implementation costs should not be included with depreciation or amortization expense related to property, plant, and equipment or intangible assets. • Cash flows related to capitalized implementation costs should be presented as operating activities, consistent with the presentation of cash flows for the fees related to the hosted CCA service. • Entities are required to disclose the nature of the hosting arrangements that are service contracts and significant judgments made when applying the guidance. Additionally, companies are required to provide quantitative disclosures, including amounts capitalized, amortized, and impaired. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. While the Company is still evaluating the impact of adopting the new standard, it does not expect this new guidance to have a material impact on the consolidated financial statements. |
Acquisition of Businesses
Acquisition of Businesses | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition of Businesses | ACQUISITION OF BUSINESSES Acquisition of Home Delivery Incontinent Supplies Co. On October 1, 2016, Domtar completed the acquisition of 100% of the outstanding shares of Home Delivery Incontinent Supplies Co. (“HDIS”). HDIS is a leading national direct-to-consumer provider of adult incontinence and related products. Based in Olivette, Missouri, HDIS provides customers with high-quality products and a personalized service for all of their incontinence needs. HDIS operates a distribution center in Olivette, Missouri, as well as two retail locations, in Texarkana, Arkansas and Daytona Beach, Florida and has approximately 240 employees. The results of HDIS’s operations are included in the Personal Care reportable segment starting on October 1, 2016. The purchase price was $52 million, net of cash acquired of $3 million and included a potential earn-out payment of up to $10 million to be settled after the first anniversary of the acquisition. The final amount of the earn-out was $8 million and was paid in the last quarter of 2017. The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which were based on information available at that time. The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Receivables $ 4 Inventory 4 Property, plant and equipment 1 Intangible assets Customer relationships (1) 21 Trade names (2) 13 34 Goodwill 17 Deferred income tax assets 2 Total assets 62 Less: Liabilities Trade and other payables 10 Total liabilities 10 Fair value of net assets acquired at the date of acquisition 52 (1) (2) Indefinite useful life. |
Impairment of Property, Plant a
Impairment of Property, Plant and Equipment and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Property, Plant and Equipment and Goodwill | IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT AND GOODWILL IMPAIRMENT OF GOODWILL In 2017, the Company performed its annual goodwill impairment testing at October 1. At that date, total goodwill amounting to $578 million resided in the Personal Care reporting unit. Management proceeded directly to the quantitative impairment test for the Personal Care reporting unit. The estimated fair value, determined by the present value of estimated future cash flows was lower than the reporting unit’s carrying value and as such the Company recognized a non-cash impairment charge of $578 million, representing the entire amount of goodwill related to the Personal Care reporting unit. Growing competitive market pressures in the healthcare and retail markets throughout 2017, including the entry of new competitors in the private label category, excess industry capacity and the pressure to limit healthcare spending by governmental agencies, resulted in lower than previously anticipated sales and operating margin. In light of this weakened market outlook, the Company’s business forecast was not sufficient to derive a fair value able to support the carrying value of the goodwill associated with the Personal Care reporting unit, leading to the impairment of goodwill. In 2016, the Company performed its annual goodwill impairment tests at October 1 and determined that the estimated fair value of the Personal Care reporting unit exceeded its carrying value. As a result, no impairment charges were recorded during 2016. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT The Company reviews property, plant and equipment for impairment upon the occurrence of events or changes in circumstances indicating that, at the lowest level of determinable cash flows, the carrying value of the asset group may not be recoverable. Estimates of undiscounted future cash flows used to test the recoverability of the asset group includes key assumptions related to selling prices, inflation-adjusted cost projections, forecasted exchange rates when applicable and the estimated useful life of the asset group. Waco, Texas personal care manufacturing and distribution facility – Permanent closure In the fourth quarter of 2018, the Company announced a margin improvement plan within the Personal Care Division. As part of this plan, the Board of Directors approved the permanent closure of its Waco, Texas Personal Care manufacturing and distribution facility. As a result, in 2018 the Company recognized $7 million of accelerated depreciation in Impairment of property, plant and equipment and goodwill on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Ashdown, Arkansas pulp and paper mill – Conversion of a paper machine In 2016, as a result of a previously announced conversion of a paper machine at Ashdown, Arkansas pulp and paper mill to a high quality fluff pulp line, the Company recognized $29 million of accelerated depreciation in Impairment of property, plant and equipment and goodwill on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION OMNIBUS PLAN Under the Omnibus Plan, the Company may award to key employees and non-employee directors, at the discretion of the Human Resources Committee of the Board of Directors, non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units, performance-conditioned restricted stock units, performance share units, deferred share units (“DSUs”) and other stock-based awards. The non-employee directors only receive DSUs. The Company generally grants awards annually and uses, when available, treasury stock to fulfill awards settled in common stock and option exercises. PERFORMANCE SHARE UNITS (“PSUs”) PSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash for non-Management Committee members, based on market conditions and/or performance and service conditions. These awards have an additional feature where the ultimate number of units that vest will be determined by the Company’s performance results or shareholder return in relation to a predetermined target over the vesting period. No awards vest when the minimum thresholds are not achieved. The performance measurement date will vary depending on the specific award. These awards will cliff vest at various dates up to February 20, 2021. Weighted average grant PSUs Number of units date fair value $ Vested and non-vested at December 31, 2015 426,079 46.00 Granted 295,504 32.38 Forfeited (28,523 ) 39.81 Cancelled (101,124 ) 51.27 Vested and settled (74,655 ) 35.97 Vested and non-vested at December 31, 2016 517,281 38.98 Granted 256,078 39.04 Forfeited (24,581 ) 37.59 Cancelled (75,710 ) 38.78 Vested and settled (50,600 ) 54.95 Vested and non-vested at December 31, 2017 622,468 37.78 Granted 238,537 41.39 Forfeited (36,932 ) 38.09 Issued 52,563 41.05 Vested and settled (154,178 ) 44.22 Vested and non-vested at December 31, 2018 722,458 37.82 The fair value of PSUs granted in 2018, 2017 and 2016 was estimated at the grant date using the Monte Carlo simulation methodology. The Monte Carlo simulation creates artificial futures by generating numerous sample paths of potential outcomes. The following assumptions were used in calculating the fair value of the units granted: 2018 2017 2016 Dividend yield 3.800 % 4.130 % 4.740 % Expected volatility 1 year 22 % 28 % 24 % Expected volatility 3 years 26 % 28 % 30 % Risk-free interest rate December 31, 2016 — — 1.057 % Risk-free interest rate December 31, 2017 — 1.614 % 0.860 % Risk-free interest rate December 31, 2018 2.233 % 1.606 % 0.900 % Risk-free interest rate December 31, 2019 2.461 % 1.751 % — Risk-free interest rate December 31, 2020 2.607 % — — At December 31, 2018, of the total vested and non-vested PSUs, 352,241 are expected to be settled in shares and 370,217 will be settled in cash. RESTRICTED STOCK UNITS (“RSUs”) RSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash for non-Management Committee members, upon completing service conditions. The awards cliff vest after a service period of approximately three years. Additionally, the RSUs are credited with dividend equivalents in the form of additional RSUs when cash dividends are paid on the Company’s stock. The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSUs Number of units date fair value $ Non-vested at December 31, 2015 346,966 44.21 Granted/issued 196,786 34.04 Forfeited (17,884 ) 39.69 Vested and settled (107,198 ) 39.12 Non-vested at December 31, 2016 418,670 40.90 Granted/issued 182,937 39.83 Forfeited (19,194 ) 37.97 Vested and settled (121,750 ) 48.72 Non-vested at December 31, 2017 460,663 38.56 Granted/issued 157,502 44.04 Forfeited (27,251 ) 39.91 Vested and settled (135,323 ) 42.54 Non-vested at December 31, 2018 455,591 39.16 At December 31, 2018, of the total non-vested RSUs, 189,079 are expected to be settled in shares and 266,512 will be settled in cash. DEFERRED SHARE UNITS DSUs are granted to the Company’s Directors. The DSUs granted to the Directors vest immediately on the grant date. The DSUs are credited with dividend equivalents in the form of additional DSUs when cash dividends are paid on the Company’s stock. For Directors’ DSUs, the Company will deliver at the option of the holder either one share of common stock or the cash equivalent of the fair market value on settlement of each outstanding DSU (including dividend equivalents accumulated) upon termination of service. Directors who attained the share ownership requirements may elect to receive the equity component of their annual retainer in DSUs that may be settled in either cash or stock one year after the grant date. The grant date fair value of DSU awards is equal to the market value of the Company’s stock on the date the awards are granted. Management Committee members may elect to defer awards earned under another program into DSUs. In 2018, no vested awards were deferred to DSUs (2017 – nil; 2016 – nil). Weighted average grant DSUs Number of units date fair value $ Vested at December 31, 2015 289,460 28.20 Granted/issued 46,737 37.43 Settled (15,123 ) 39.60 Vested at December 31, 2016 321,074 29.01 Granted/issued 36,215 40.68 Settled (85,055 ) 32.27 Vested at December 31, 2017 272,234 29.55 Granted/issued 31,691 44.64 Settled (9,752 ) 40.95 Vested at December 31, 2018 294,173 30.79 NON-QUALIFIED & PERFORMANCE STOCK OPTIONS Stock options are granted to Management Committee and non-Management Committee members. The stock options vest at various dates up to February 20, 2021 subject to service conditions for non-qualified stock options. The options expire at various dates no later than seven years from the date of grant. The fair value of the stock options granted in 2018, 2017 and 2016 was estimated at the grant date using a Black-Scholes based option pricing model or an option pricing model that incorporated the market conditions when applicable. The following assumptions were used in calculating the fair value of the options granted: 2018 2017 2016 Dividend yield 3.27 % 3.48 % 3.78 % Expected volatility 29 % 28 % 30 % Risk-free interest rate 2.62 % 1.86 % 1.17 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 43.66 $ 39.81 $ 33.78 The grant date fair value of the non-qualified options granted in 2018 was $8.65 (2017 – $7.05; 2016 – $5.95). Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS (including Performance options) of options price (in years) (in millions) $ $ Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Granted 114,723 33.78 6.2 — Exercised (37,296 ) 41.11 — — Forfeited/expired (6,502 ) 20.89 — — Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Options exercisable at December 31, 2016 286,011 46.50 3.9 0.1 Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Granted 106,268 39.81 6.2 — Exercised (65,430 ) 36.33 — — Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Options exercisable at December 31, 2017 359,960 48.02 3.2 1.3 Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Granted 104,086 43.66 6.2 — Exercised (147,397 ) 39.42 — — Forfeited/expired (6,102 ) 50.05 — — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Options exercisable at December 31, 2018 303,055 49.15 2.3 — The total intrinsic value of options exercised in 2018 was $1 million (2017 – nil; 2016 – nil). Based on the Company’s closing year-end stock price of $35.13 (2017 – $49.52; 2016 – $39.03), the aggregate intrinsic value of options outstanding and options exercisable is nil. For the year ended December 31, 2018, stock-based compensation expense recognized in the Company’s results of operations was $10 million (2017 – $20 million; 2016 – $16 million) for all of the outstanding awards. Compensation costs not yet recognized amounted to $17 million (2017 – $20 million; 2016 – $17 million) and will be recognized over the remaining service period of approximately 26 months. The aggregate value of liability awards settled in 2018 was $8 million (2017 – $7 million; 2016 – $4 million). The total fair value of equity awards settled in 2018 was $6 million (2017 – $3 million), representing the fair value at the time of settlement. The fair value at the grant date for these settled equity awards was $7 million (2017 – $4 million). Compensation costs for performance awards are based on management’s best estimate of the final performance measurement. CLAWBACK FOR FINANCIAL REPORTING MISCONDUCT If a participant in the Omnibus Plan knowingly or grossly negligently engages in financial reporting misconduct, then all awards and gains from the exercise of options in the 12 months prior to the date the misleading financial statements were issued as well as any awards that vested based on the misleading financial statements will be disgorged to the Company. In addition, the Company may cancel or reduce, or require a participant to forfeit and disgorge to the Company or reimburse the Company for, any awards granted or vested, and bonus granted or paid, and any gains earned or accrued, due to the exercise, vesting or settlement of awards or sale of any common stock, to the extent permitted or required by, or pursuant to any Company policy implemented as required by applicable law, regulation or stock exchange rule as may from time to time be in effect. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | EARNINGS (LOSS) PER COMMON SHARE The calculation of basic earnings (loss) per common share is based on the weighted average number of Domtar common shares outstanding during the year. The calculation for diluted earnings (loss) per common share recognizes the effect of all potential dilutive common securities. The following table provides the reconciliation between basic and diluted earnings (loss) per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 Net earnings (loss) $ 283 $ (258 ) $ 128 Weighted average number of common shares outstanding (millions) 62.9 62.7 62.6 Effect of dilutive securities (millions) 0.2 — 0.1 Weighted average number of diluted common shares outstanding (millions) 63.1 62.7 62.7 Basic net earnings (loss) per common share (in dollars) $ 4.50 $ (4.11 ) $ 2.04 Diluted net earnings (loss) per common share (in dollars) $ 4.48 $ (4.11 ) $ 2.04 The following table provides the securities that could potentially dilute basic earnings (loss) per common share in the future, but were not included in the computation of diluted earnings (loss) per common share because to do so would have been anti-dilutive: December 31, December 31, December 31, 2018 2017 2016 Options 227,221 312,893 410,978 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the year ended December 31, 2018, the related pension expense was $50 million (2017 – $39 million; 2016 – $40 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. that are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. Related pension and other post-retirement plan expenses and the corresponding obligations are actuarially determined using management’s most probable assumptions. The Company’s pension plan funding policy is to contribute annually the amount required to provide for benefits earned in the year and to fund solvency deficiencies, funding shortfalls and past service obligations over periods not exceeding those permitted by the applicable regulatory authorities. Past service obligations primarily arise from improvements to plan benefits. The other post-retirement benefit plans are not funded and contributions are made annually to cover benefit payments. The Company expects to contribute a minimum total amount of $12 million in 2019 compared to $57 million in 2018 (2017 – $47 million; 2016 – $31 million) to the pension plans. The Company expects to contribute a minimum total amount of $5 million in 2019 compared to $4 million in 2018 (2017 – $3 million; 2016 – $5 million) to the other post-retirement benefit plans. CHANGE IN PROJECTED BENEFIT OBLIGATION The following table represents the change in the projected benefit obligation as of December 31, 2018 and December 31, 2017, the measurement date for each year: December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,764 76 1,584 90 Service cost for the year 34 1 30 2 Interest expense 53 2 52 4 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (80 ) (8 ) 95 (17 ) Plan amendments — — 1 (5 ) Benefits paid (101 ) — (85 ) — Direct benefit payments (3 ) (4 ) (3 ) (3 ) Settlement — — (2 ) — Effect of foreign currency exchange rate change (104 ) (5 ) 86 5 Projected benefit obligation at end of year 1,569 62 1,764 76 CHANGE IN FAIR VALUE OF ASSETS The following table represents the change in the fair value of assets, as of December 31, 2018 and December 31, 2017, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: December 31, 2018 December 31, 2017 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,765 1,546 Actual return on plan assets (27 ) 166 Employer contributions 57 47 Plan participants' contributions 6 6 Benefits paid (104 ) (88 ) Settlement — (2 ) Effect of foreign currency exchange rate change (109 ) 90 Fair value of assets at end of year 1,588 1,765 INVESTMENT POLICIES AND STRATEGIES OF THE PLAN ASSETS The assets of the pension plans are held by a number of independent trustees and are accounted for separately in the Company’s pension funds. The investment strategy for the assets in the pension plans is to maintain a diversified portfolio of assets, invested in a prudent manner to maintain the security of funds while maximizing returns within the guidelines provided in the investment policy. Diversification of the pension plans’ holdings is maintained in order to reduce the pension plans’ annual return variability, reduce market and credit exposure to any single asset and to any single component of the capital markets, reduce exposure to unexpected inflation, enhance the long-term risk-adjusted return potential of the pension plans and reduce funding risk. Over the long-term, the performance of the pension plans is primarily determined by the long-term asset mix decisions. To manage the long-term risk of not having sufficient funds to match the obligations of the pension plans, the Company conducts asset/liability studies. These studies lead to the recommendation and adoption of a long-term asset mix target that sets the expected rate of return and reduces the risk of adverse consequences to the plans from increases in liabilities and decreases in assets. In identifying the asset mix target that would best meet the investment objectives, consideration is given to various factors, including (a) each plan’s characteristics, (b) the duration of each plan’s liabilities, (c) the solvency and going concern financial position of each plan and their sensitivity to changes in interest rates and inflation, and (d) the long-term return and risk expectations for key asset classes. The investments of each plan can be done directly through cash investments in equities or bonds or indirectly through derivatives or pooled funds. The use of derivatives must be in accordance with an approved mandate and cannot be used for speculative purposes. The Company’s pension funds are not permitted to directly own any of the Company’s shares or debt instruments. The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2018: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2018 2017 Fixed income Cash and cash equivalents 0% – 9% 2 % 2 % Bonds 46% – 56% 52 % 52 % Insurance contracts 5% 5 % 5 % Equity Canadian Equity 3% – 10% 6 % 6 % U.S. Equity 8% – 18% 13 % 13 % International Equity 17% – 27% 22 % 22 % Total (1) 100 % 100 % (1) Approximately 77% of the pension plans' assets relate to Canadian plans and 23% relate to U.S. plans. RECONCILIATION OF FUNDED STATUS TO AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS The following table presents the difference between the fair value of assets and the actuarially determined projected benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,569 ) (62 ) (1,764 ) (76 ) Fair value of assets at end of year 1,588 — 1,765 — Funded status 19 (62 ) 1 (76 ) The funded status includes $49 million of projected benefit obligation ($54 million at December 31, 2017) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 16) — (5 ) — (5 ) Other liabilities and deferred credits (Note 19) (88 ) (57 ) (130 ) (71 ) Other assets (Note 14) 107 — 131 — Net amount recognized in the Consolidated Balance Sheets 19 (62 ) 1 (76 ) The following table presents the pre-tax amounts included in Other comprehensive (loss) income: Year ended Year ended Year ended December 31, 2018 December 31, 2017 December 31, 2016 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service (cost) credit — — (1 ) 5 — — Amortization of prior year service cost 5 — 5 — 5 — Net (loss) gain (31 ) 8 (10 ) 17 (53 ) (2 ) Amortization of net actuarial loss (gain) 8 (1 ) 9 — 6 — Net amount recognized in other comprehensive (loss) income (pre-tax) (18 ) 7 3 22 (42 ) (2 ) An estimated loss of $15 million for pension plans and gain of $2 million for other post-retirement benefit plans will be amortized from Accumulated other comprehensive loss into net periodic benefit cost in 2019. At December 31, 2018, the projected benefit obligation and the fair value of defined benefit plan assets with a projected benefit obligation in excess of fair value of plan assets were $731 million and $643 million, respectively (2017 – $811 million and $680 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2018 2017 2016 $ $ $ Service cost for the year 34 30 32 Interest expense 53 52 50 Expected return on plan assets (85 ) (81 ) (80 ) Amortization of net actuarial loss 8 9 5 Settlement loss — — 1 Amortization of prior year service cost 5 5 5 Net periodic benefit cost 15 15 13 Components of net periodic benefit cost for other post-retirement Year ended December 31, Year ended December 31, Year ended December 31, benefit plans 2018 2017 2016 $ $ $ Service cost for the year 1 2 2 Interest expense 2 4 4 Amortization of net actuarial gain (1 ) — — Net periodic benefit cost 2 6 6 WEIGHTED-AVERAGE ASSUMPTIONS The Company used the following key assumptions to measure the projected benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2018 2017 2016 Projected benefit obligation Discount rate 3.8 % 3.5 % 3.8 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.5 % 3.9 % 4.1 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Expected long-term rate of return on plan assets 5.2 % 5.3 % 5.3 % The Company used a full yield curve approach to estimate the current service and interest cost components of net periodic benefit cost for Canadian pension plans and U.S. funded pension plans. The estimate of these components is made by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. For the U.S. unfunded pension plan and other post-retirement benefits, given materiality, the current service and interest cost components were estimated using a single weighted-average discount rate derived from the yield curve for each unfunded pension plan or based on each post-retirement plans’ projected cash flows. The discount rate for U.S. unfunded plans of 4.2% is obtained by incorporating the plans’ expected cash flows in the Mercer Yield Curve. For Canadian plans, short-term yields to maturity are derived from actual AA rated corporate bond yield data. For longer terms, extrapolated data is used. The extrapolated data are created by adding a term-based spread over long provincial bond yields. For U.S. funded plans, the rates are taken from the Mercer Yield Curve which is based on bonds rated AA by Moody’s or Standard & Poor’s, excluding callable bonds, bonds of less than a minimum issue size, and certain other bonds. The universe of bonds also includes private placement (traded in reliance on Rule 144A and which are at least two years from issuance), make whole, and foreign corporation (denominated in U.S. dollars) bonds. Effective January 1, 2019, the Company will use 5.2% (2018 – 5.2%; 2017 – 5.3%) as the expected return on plan assets, which reflects the current view of long-term investment returns. The overall expected long-term rate of return on plan assets is based on management's best estimate of the long-term returns of the major asset classes (cash and cash equivalents, equities, and bonds) weighted by the actual allocation of assets at the measurement date, net of expenses. This rate includes an equity risk premium over government bond returns for equity investments and a value-added premium for the contribution to returns from active management. The sources used to determine management's best estimate of long-term returns are numerous and include country specific bond yields, which may be derived from the market using local bond indices or by analysis of the local bond market, and country-specific inflation and investment market expectations derived from market data and analysts' or governments' expectations, as applicable. December 31, December 31, December 31, Other post-retirement benefit plans 2018 2017 2016 Projected benefit obligation Discount rate 3.8 % 3.5 % 3.9 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.5 % 3.8 % 4.1 % Rate of compensation increase 2.7 % 2.8 % 2.8 % For measurement purposes, a 4.4% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2018. The rate was assumed to decrease gradually to 3.5% by 2033 and remain at that level thereafter. An increase or decrease of 1% of this rate would have the following impact: Increase of 1% Decrease of 1% $ $ Impact on net periodic benefit cost for other post-retirement benefit plans — — Impact on projected benefit obligation 3 (3 ) FAIR VALUE MEASUREMENT Fair Value Measurements and Disclosures Topic of FASB ASC 820 establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the assets or liabilities. The following table presents the fair value of the plan assets at December 31, 2018, by asset category: Fair Value Measurements at December 31, 2018 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 68 68 — — Canadian provincial government bonds 493 492 1 — Canadian corporate debt securities 123 100 23 — U.S. corporate debt securities 37 37 — — International corporate debt securities 9 9 — — Bond fund (1 & 2) 156 — 156 — Canadian equities (3) 94 94 — — U.S. equities (4) 91 91 — — International equities (5) 233 233 — — U.S. stock index funds (2 & 6) 200 — 200 — Insurance contracts (7) 84 — — 84 Total 1,588 1,124 380 84 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category includes: 1) two group annuity contracts totaling $75 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $9 million of insurance contracts with a minimum guarantee rate. The following table presents the fair value of the plan assets at December 31, 2017, by asset category: Fair Value Measurements at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 79 79 — — Asset backed notes 1 — — 1 Canadian provincial government bonds 566 565 1 — Canadian corporate debt securities 139 117 22 — U.S. corporate debt securities 43 43 — — International corporate debt securities 2 2 — — Bond fund (1 & 2) 152 — 152 — Canadian equities (3) 111 111 — — U.S. equities (4) 103 103 — — International equities (5) 252 252 — — U.S. stock index funds (2 & 6) 224 — 224 — Insurance contracts (7) 94 — — 94 Derivative contracts (8) (1 ) — (1 ) — Total 1,765 1,272 398 95 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents equity two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category includes: 1) two group annuity contracts totaling $85 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $9 million of insurance contracts with a minimum guarantee rate. (8) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Insurance contracts Other TOTAL $ $ $ Balance at December 31, 2016 84 3 87 Settlements (5 ) (2 ) (7 ) Return on plan assets 9 — 9 Effect of foreign currency exchange rate change 6 — 6 Balance at December 31, 2017 94 1 95 Settlements (5 ) (1 ) (6 ) Return on plan assets 2 — 2 Effect of foreign currency exchange rate change (7 ) — (7 ) Balance at December 31, 2018 84 — 84 ESTIMATED FUTURE BENEFIT PAYMENTS FROM THE PLANS Estimated future benefit payments from the plans for the next 10 years at December 31, 2018 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2019 103 5 2020 102 5 2021 103 4 2022 103 4 2023 104 4 2024 – 2028 517 21 |
Other Operating (Income) Loss,
Other Operating (Income) Loss, Net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Loss, Net | OTHER OPERATING (INCOME) LOSS, NET Other operating (income) loss, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from year to year. The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 $ $ $ Net gain on sale of property, plant and equipment (4 ) (13 ) — Reversal of contingent consideration — (2 ) — Bad debt expense 2 1 — Environmental provision 5 3 2 Foreign exchange (gain) loss (2 ) 1 6 Other (1 ) (4 ) (4 ) Other operating (income) loss, net — (14 ) 4 |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Interest Expense, Net | INTEREST EXPENSE, NET The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Interest on long-term debt (1) 56 59 59 Interest on receivables securitization 1 2 2 Interest on withdrawal liabilities for multiemployer plans 2 3 3 Amortization of debt issuance costs and other 3 2 2 62 66 66 (1) The Company capitalized $1 million of interest expense in 2018 (2017 – $1 million; 2016 – $5 million). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s earnings (loss) before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. earnings (loss) 216 (209 ) 69 Foreign earnings (loss) 126 (174 ) 88 Earnings (loss) before income taxes 342 (383 ) 157 Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. Federal and State: Current 32 73 10 Deferred (6 ) (208 ) 1 Foreign: Current 12 9 10 Deferred 19 1 8 Income tax expense (benefit) 57 (125 ) 29 The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 21% (35% for December 31, 2017 and December 31, 2016) to earnings (loss) before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. federal statutory income tax 72 (134 ) 55 Reconciling Items: State and local income taxes, net of federal income tax benefit 8 2 3 Foreign income tax rate differential 1 (16 ) (14 ) Tax credits and special deductions (19 ) (24 ) (18 ) Goodwill impairment — 200 — Tax rate changes (9 ) (188 ) — Deemed mandatory repatriation tax (7 ) 46 — Uncertain tax positions (4 ) (6 ) 2 U.S. manufacturing deduction — (4 ) (2 ) Deferred taxes on foreign earnings 10 — — Net operating loss cancellation 9 — — Valuation allowance on deferred tax assets (8 ) 3 (1 ) Other 4 (4 ) 4 Income tax expense (benefit) 57 (125 ) 29 During 2018, the Company recorded $19 million of tax credits, mainly research and experimentation credits, which significantly impacted the effective tax rate. The effective tax rate was also impacted by the cancellation of $9 million, after-tax, of net operating losses in a foreign jurisdiction. This was offset by the reversal of $9 million of valuation allowance on these same net operating losses. Additionally, a valuation allowance of $1 million was recorded on new operating losses in 2018 for a net benefit pertaining to valuation allowance movements of $8 million. On December 22, 2017, the U.S. Tax Reform was signed into law. The U.S. Tax Reform significantly changed U.S. tax law for businesses by, among other things, lowering the maximum federal corporate income tax rate from 35% to 21% effective January 1, 2018, implementing a territorial tax system, and imposing a one-time deemed repatriation tax on accumulated foreign earnings. As a result of the U.S. Tax Reform, the Company recorded a net tax benefit of $140 million in the fourth quarter of 2017 when the legislation was enacted. This consisted of a provisional tax benefit of $186 million relating to the revaluation of the Company’s ending net deferred tax liabilities and a provisional expense of $46 million related to the deemed repatriation tax. Additionally, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application in situations when 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. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, the Company completed its analysis, including currently available legislative updates, and recorded an additional tax benefit of $13 million for the year ended December 31, 2018. Of this benefit, $7 million related to adjustments to the deemed mandatory repatriation tax and $6 million related to the revaluation of the Company’s net deferred tax liabilities. The $6 million benefit for the revaluation of the net deferred tax liabilities is included in the “Tax rate changes” above, along with $3 million of additional tax benefits relating to 2018 law changes in Sweden and various U.S. states. As a result of the deemed mandatory repatriation tax requirement of the U.S. Tax Reform, the Company has taxed its undistributed foreign earnings as of December 31, 2017, at reduced tax rates. After completing its evaluation of the U.S. Tax Reform’s impact on its business operations, the Company has determined that it is no longer indefinitely reinvested in these undistributed foreign earnings as well as foreign earnings after December 31, 2017. As such, as of December 31, 2018, the Company has recorded a deferred tax liability of $10 million for foreign withholding tax and various state income taxes associated with future repatriation of these earnings. This $10 million tax expense impacted the effective tax rate for 2018. During 2017, the Company recorded a goodwill impairment of $578 million with minimal tax benefit which impacted the effective tax rate by $200 million. The effective tax rate for 2017 was also significantly impacted by the Company’s foreign operations being taxed at lower statutory tax rates and by the Company recording $24 million of current tax credits, mainly research and experimentation credits. On December 22, 2017, the U.S. Tax Reform was signed into law. The U.S. Tax Reform significantly changed U.S. tax law for businesses by, among other things, lowering the maximum federal corporate income tax rate from 35% to 21% effective January 1, 2018, implementing a territorial tax system, and imposing a one-time deemed repatriation tax on accumulated foreign earnings. As a result of the corporate tax rate reduction, the Company revalued its ending net deferred tax liabilities, and recognized a provisional tax benefit of $186 million in the Company’s Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2017. This, combined with a $2 million tax benefit from other changes in law in certain U.S. states earlier in the year, had a significant impact on the effective tax rate for 2017. On December 22, 2017, the SEC staff issued SAB 118 to address the application in situations when 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, which it will elect to pay over eight years, and which impacted the 2017 tax rate. During 2016, the Company recorded $18 million of tax credits, mainly research and experimentation credits, which significantly impacted the effective tax rate. The effective tax rate for 2016 was also significantly impacted by the Company’s foreign operations being taxed at lower statutory tax rates. Deferred tax assets and liabilities are based on tax rates that are expected to be in effect in future periods when deferred items are expected to reverse. Changes in tax rates or tax laws affect the expected future benefit or expense. The effect of such changes that occurred during each of the last three fiscal years is included in “Tax rate changes” disclosed under the effective income tax rate reconciliation shown above. DEFERRED TAX ASSETS AND LIABILITIES The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2018 and December 31, 2017 are comprised of the following: December 31, December 31, 2018 2017 $ $ Accounting provisions 38 36 Net operating loss carryforwards and other deductions 36 43 Pension and other employee future benefit plans 22 31 Inventory 10 10 Tax credits 21 36 Gross deferred tax assets 127 156 Valuation allowance (16 ) (25 ) Net deferred tax assets 111 131 Property, plant and equipment (422 ) (436 ) Intangible assets (122 ) (131 ) Other (10 ) (16 ) Total deferred tax liabilities (554 ) (583 ) Net deferred tax liabilities (443 ) (452 ) Included in: Other assets (Note 14) 1 2 Deferred income taxes and other (444 ) (454 ) Total (443 ) (452 ) At December 31, 2018, the Company had less than $1 million of federal net operating loss carryforwards remaining which expire in 2032. These U.S. federal net operating losses are subject to annual limitations under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), that can vary from year to year. The Company also has other foreign net operating losses and deduction limitations of $176 million, all except $3 million of which may be carried forward indefinitely. In 2027, a small amount of the $3 million of foreign net operating losses will begin to expire. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible. The Company evaluates the realization of deferred tax assets on a quarterly basis. Evaluating the need for an amount of a valuation allowance for deferred tax assets often requires significant judgment. All available evidence, both positive and negative, is considered when determining whether, based on the weight of that evidence, a valuation allowance is needed. Specifically, the Company evaluated the following items: • Historical income / (losses) – particularly the most recent three-year period • Reversals of future taxable temporary differences • Projected future income / (losses) • Tax planning strategies • Divestitures Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, with the exception of certain state credits for which a valuation allowance of $6 million exists at December 31, 2018, and certain foreign loss carryforwards for which a valuation allowance of $10 million exists at December 31, 2018. Of this amount, $(8) million favorably impacted tax expense and the effective tax rate for 2018 (2017 – $3 million; 2016 – $(1) million). As of December 31, 2018, the Company has recorded a deferred tax liability of $10 million for foreign withholding tax and various state income taxes associated with the repatriation of earnings subject to the repatriation tax as well as future repatriation of its unremitted foreign earnings. The Company has not provided for deferred taxes on outside basis differences in its investments in its foreign subsidiaries that are unrelated to unremitted earnings as it estimates that the deferred tax liability recorded in 2018, in combination with the repatriation tax amount, covers all tax liabilities with foreign investments to date. The U.S. Tax Reform also includes a base erosion provision for GILTI. Beginning in 2018, the GILTI provisions require the Company to include in its U.S. income tax return, earnings of foreign subsidiaries that are in excess of an allowable return on the tangible assets of the foreign subsidiaries. The Company is required to make an accounting policy election to either (1) treat taxes due related to GILTI as a current period expense when incurred or (2) factor such amounts into the measurement of deferred taxes. The Company has elected to account for any taxes associated with GILTI as a period cost. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES At December 31, 2018, the Company had gross unrecognized tax benefits of approximately $32 million ($37 million and $43 million for 2017 and 2016, respectively). If recognized in 2019, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. December 31, December 31, December 31, 2018 2017 2016 $ $ $ Balance at beginning of year 37 43 41 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 4 4 3 Reductions for tax positions of prior years — — (2 ) Reductions related to settlements with taxing authorities — (1 ) — Expirations of statutes of limitations (12 ) (13 ) (3 ) Interest 1 1 1 Foreign exchange impact (1 ) — — Balance at end of year 32 37 43 The Company recorded $1 million of accrued interest associated with unrecognized tax benefits for the period ending December 31, 2018 ($1 million and $1 million for 2017 and 2016, respectively). The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. The Company believes it is reasonably possible that up to $6 million of its unrecognized tax benefits may be recognized by December 31, 2019, which could significantly impact the effective tax rate. However, the amount and timing of the recognition of these benefits is subject to some uncertainty. The major jurisdictions where the Company and its subsidiaries will file tax returns for 2018, in addition to filing one consolidated U.S. federal income tax return, are Canada, Sweden and Spain. The Company and its subsidiaries will also file returns in various other countries in Europe and Asia as well as various U.S. states and Canadian provinces. At December 31, 2018, the Company’s subsidiaries are subject to foreign federal income tax examinations for the tax years 2008 through 2017, with federal years prior to 2015 being closed from a cash tax liability standpoint in the U.S., but the loss carryforwards can be adjusted in any open year where the loss has been utilized. The Company does not anticipate that adjustments stemming from these audits would result in a significant change to the results of its operations and financial condition. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 11. INVENTORIES The following table presents the components of inventories: December 31, December 31, 2018 2017 $ $ Work in process and finished goods 410 399 Raw materials 126 135 Operating and maintenance supplies 226 223 762 757 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The following table presents the components of property, plant and equipment: Range of useful lives December 31, December 31, (in years) 2018 2017 $ $ Machinery and equipment 3 – 20 7,655 7,674 Buildings and improvements 10 – 40 1,043 1,059 Timberlands (1) 193 207 Assets under construction — 131 104 9,022 9,044 Less: Accumulated depreciation (6,417 ) (6,279 ) 2,605 2,765 (1) Amortization is calculated using the unit of production method. Depreciation expense related to property, plant and equipment for the year ended December 31, 2018 was $289 million (2017 – $302 million; 2016 – $329 million). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2018 2017 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 384 (94 ) 290 392 (79 ) 313 Technology 7 – 20 8 (4 ) 4 8 (4 ) 4 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (13 ) 15 29 (11 ) 18 424 (113 ) 311 433 (96 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 238 — 238 245 — 245 License rights 6 — 6 6 — 6 Catalog rights 38 — 38 41 — 41 Total 710 (113 ) 597 729 (96 ) 633 Amortization expense related to intangible assets for the year ended December 31, 2018 was $19 million ($19 million in 2017 and 2016, respectively). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2019 2020 2021 2022 2023 $ $ $ $ $ Amortization expense related to intangible assets 21 21 21 21 20 The Company performed its annual impairment test on its indefinite-lived intangible assets at October 1, 2018, 2017 and 2016, using a quantitative approach, except for the license rights and water rights, where the Company used a qualitative approach, and determined that the estimated fair values of its indefinite-lived intangible assets exceeded their carrying amounts. No impairment charge was recorded for indefinite-lived intangible assets during 2018, 2017 or 2016. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS The following table presents the components of other assets: December 31, December 31, 2018 2017 $ $ Pension asset - defined benefit pension plans (Note 7) 107 131 Investment tax credits receivable 5 7 Unamortized debt issuance costs 4 4 Deferred income tax assets (Note 10) 1 2 Derivative financial instruments (Note 22) — 5 Investments and advances 6 — Other 11 8 134 157 |
Closure and Restructuring Costs
Closure and Restructuring Costs and Liability | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Liability | CLOSURE AND RESTRUCTURING COSTS AND LIABILITY In the fourth quarter of 2016, as a result of a revision in the Company’s estimated withdrawal liability for U.S. multiemployer plans, the Company recorded a credit of $4 million in Closure and restructuring costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). At December 31, 2018, the total provision for the withdrawal liabilities was $47 million. Waco, Texas facility On November 1, 2018, the Company announced a margin improvement within the Personal Care Division. As part of this plan, the Board of Directors approved the permanent closure of its Waco, Texas Personal Care manufacturing and distribution facility, the relocation of certain of its manufacturing assets and a workforce reduction across the division. The Waco, Texas facility is expected to cease operations in the third quarter of 2019. The Company recorded $7 million for the year ended December 31, 2018 of accelerated depreciation under Impairment of property, plant and equipment and goodwill on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). During the fourth quarter of 2018, the Company also recorded a $4 million write-down of inventory, $3 million of severance and termination costs, and $1 million of other costs under Closure and restructuring costs. Plymouth, North Carolina mill On September 23, 2016, the Company announced a plan to optimize fluff pulp manufacturing at the Plymouth, North Carolina mill. The restructuring, which was completed in 2018, included the permanent closure of a pulp dryer and idling of assets, in addition to a workforce reduction of approximately 100 positions. The streamlining process also right-sized the mill to an annualized production target of approximately 380,000 metric tons of fluff pulp. The Company recorded $5 million of severance and termination costs under Closure and restructuring costs during the third quarter of 2016. Ashdown, Arkansas mill On December 10, 2014, the Company announced a project to convert a paper machine at its Ashdown, Arkansas mill to a high quality fluff pulp line used in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products. The Company also invested in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions. The conversion work commenced during the second quarter of 2016 and the production of bale softwood pulp began in the third quarter of 2016. The project resulted in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity on March 31, 2016. The Company recorded $29 million for the year ended December 31, 2016, of accelerated depreciation under Impairment of property, plant and equipment and goodwill on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). During 2016, the Company also recorded $26 million of costs related to the fluff pulp conversion outage and $1 million of severance and termination costs under Closure and restructuring costs. Other costs During 2018, there were no other costs related to previous and ongoing closures and restructuring (severance and termination costs of $2 million and $3 million in 2017 and 2016, respectively, and pension settlement costs of nil and $1 million in 2017 and 2016, respectively). The following tables provide the components of closure and restructuring costs by segment: Year ended December 31, 2018 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs — 3 3 Inventory write-down — 4 4 Other — 1 1 Closure and restructuring costs — 8 8 Year ended December 31, 2017 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs — 2 2 Closure and restructuring costs — 2 2 Year Ended December 31, 2016 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 8 1 9 Pension settlement and withdrawal liability (3 ) — (3 ) Fluff pulp conversion outage 26 — 26 Closure and restructuring costs 31 1 32 The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2018 2017 $ $ Balance at beginning of year 7 7 Additions 4 2 Payments (5 ) (2 ) Balance at end of year 6 7 The $6 million provision is comprised of $5 million of severance and termination costs, of which $3 million and $2 million relate to the Pulp and Paper segment and Personal Care segment, respectively, and $1 million of other costs which relate to the Personal Care segment. Closure and restructuring costs are based on management’s best estimates at December 31, 2018. Actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further impairment charges may be required in future periods. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Trade and Other Payables | TRADE AND OTHER PAYABLES The following table presents the components of trade and other payables: December 31, December 31, 2018 2017 $ $ Trade payables 404 382 Payroll-related accruals 173 164 Accrued interest 16 16 Payables on capital projects 21 11 Rebate accruals 64 72 Liability - pension and other post-retirement benefit plans (Note 7) 5 5 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 21) 10 13 Closure and restructuring costs liability (Note 15) 6 7 Derivative financial instruments (Note 22) 21 7 Dividends payable (Note 20) 27 26 Stock-based compensation - liability awards (Note 22) 6 6 Other 2 5 757 716 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) Net derivative gains (losses) on Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) 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 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options (12 ) N/A N/A N/A (12 ) Foreign exchange forward contracts (19 ) N/A N/A N/A (19 ) Net (gain) loss N/A (23 ) 6 N/A (17 ) Foreign currency items N/A N/A N/A (91 ) (91 ) Other comprehensive (loss) income before reclassifications (30 ) (23 ) 6 (91 ) (138 ) Amounts reclassified from Accumulated other comprehensive loss (2 ) 10 (1 ) — 7 Net current period other comprehensive (loss) income (32 ) (13 ) 5 (91 ) (131 ) Balance at December 31, 2018 (24 ) (231 ) 11 (223 ) (467 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss (1) Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts (2) (2 ) — 12 Currency options and forwards (2) (1 ) (14 ) 12 Total before tax (3 ) (14 ) 24 Tax benefit (expense) 1 5 (10 ) Net of tax (2 ) (9 ) 14 Amortization of defined benefit pension items Amortization of net actuarial loss (3) 8 9 6 Amortization of prior year service cost (3) 5 5 5 Total before tax 13 14 11 Tax expense (3 ) (5 ) (4 ) Net of tax 10 9 7 Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) (1 ) — — Total before tax (1 ) — — Tax expense — — — Net of tax (1 ) — — (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Par December 31, December 31, Maturity Amount Currency 2018 2017 $ $ $ Unsecured notes 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 249 249 Revolving Credit Facility 2023 — US — — Term Loan 2025 300 US — 300 Securitization 2021 50 US 50 25 Capital lease obligations and other 2019 - 2032 11 14 859 1,137 Less: Unamortized debt issuance costs 5 7 Less: Due within one year 1 1 853 1,129 Principal long-term debt repayments, including capital lease obligations, in each of the next five years will amount to: Long-term debt Capital leases and other $ $ 2019 — 2 2020 — 2 2021 50 2 2022 300 1 2023 — 1 Thereafter 500 7 850 15 Less: Amounts representing interest — 4 Total payments 850 11 UNSECURED NOTES The Company’s 10.75% Notes, in the aggregate principal amount of $63 million, matured on June 1, 2017. The Company’s 9.5% Notes, in the aggregate principal amount of $39 million, matured on August 1, 2016. REVOLVING CREDIT FACILITY In August 2018, the Company amended and restated its $700 million unsecured revolving credit facility (the “Credit Agreement”) with certain domestic and foreign banks. The amendment extended the Credit Agreement’s maturity date from August 18, 2021 to August 22, 2023. The maturity date of the facility may be extended by one year and the lender commitments may be increased by up to $400 million, subject to lender approval and customary requirements. Borrowings by the Company under the Credit Agreement are guaranteed by its significant domestic subsidiaries. Borrowings by certain foreign subsidiaries under the Credit Agreement are guaranteed by the Company, the Company’s significant domestic subsidiaries and certain of the Company’s significant foreign subsidiaries. Borrowings under the Credit Agreement bear interest at LIBOR, EURIBOR, Canadian bankers' acceptance or prime rate, as applicable, plus a margin linked to the Company’s credit rating. In addition, the Company pays facility fees quarterly at rates dependent on the Company's credit ratings. The Credit Agreement contains customary covenants and events of default for transactions of this type, including two financial covenants: (i) an interest coverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not greater than 3.75 to 1 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2018, the Company was in compliance with these financial covenants, and there were no borrowings (December 31, 2017 – nil). TERM LOAN In the third quarter of 2015, a wholly-owned subsidiary of Domtar borrowed $300 million under an unsecured 10 year Term Loan Agreement with certain domestic banks. In the fourth quarter of 2018, the Term Loan was fully repaid. RECEIVABLES SECURITIZATION The Company has a $150 million receivables securitization facility. This facility was amended in November 2018 to extend the maturity date from March 2019 to November 2021. This facility provides additional liquidity to the Company to fund its operations or issue letters of credit. The costs under the program vary based on changes in interest rates and amounts utilized. Sales of receivables under this program are accounted for as secured borrowings. The program consists of the ongoing sale of most of the receivables of its domestic subsidiaries to a bankruptcy remote consolidated subsidiary which, in turn, transfers a senior beneficial interest in them to a special purpose entity managed by a financial institution for multiple sellers of receivables to support borrowings or the issue of letters of credit by the Company. The program contains certain termination events, which include, but are not limited to, matters related to receivable performance, certain defaults occurring under the Credit Agreement, or the failure by Domtar to satisfy material obligations. At December 31, 2018, $50 million was borrowed and $52 million of letters of credit were outstanding under this facility (2017 – $25 million and $50 million, respectively). In 2018, a net charge of $1 million (2017 – $2 million; 2016 – $2 million) resulted from the program described above and was included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Deferred Credits | OTHER LIABILITIES AND DEFERRED CREDITS The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2018 2017 $ $ Liability - other post-retirement benefit plans (Note 7) 57 71 Pension liability - defined benefit pension plans (Note 7) 88 130 Pension liability - multiemployer plan withdrawal 45 47 Long-term income taxes payable 9 42 Provision for environmental and asset retirement obligations (Note 21) 27 31 Stock-based compensation - liability awards (Note 22) 14 20 Derivative financial instruments (Note 22) 16 5 Other 19 22 275 368 ASSET RETIREMENT OBLIGATIONS The asset retirement obligations are principally linked to landfill capping obligations and demolition of certain abandoned buildings. At December 31, 2018, Domtar estimated the net present value of its asset retirement obligations to be $12 million (2017 – $15 million); the present value is based on probability weighted undiscounted cash outflows of $59 million (2017 – $58 million). The majority of the asset retirement obligations are estimated to be settled prior to December 31, 2058. Domtar’s credit adjusted risk-free rates were used to calculate the net present value of the asset retirement obligations. The rates used vary between 4.7% and 12.0%, based on the prevailing rate at the moment of recognition of the liability and on its settlement period. The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2018 2017 $ $ Asset retirement obligations, beginning of year 15 14 Asset retirement obligation payments (3 ) — Accretion expense 1 1 Effect of foreign currency exchange rate change (1 ) — Asset retirement obligations, end of year 12 15 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY During 2018, the Company declared four quarterly dividends of $0.435 per share, to holders of the Company’s common stock. Dividends of $27 million, $28 million, $27 million and $27 million were paid on April 16, 2018, July 16, 2018, October 15, 2018 and January 15, 2019, respectively, to shareholders of record as of April 2, 2018, July 3, 2018, October 2, 2018 and January 2, 2019, respectively. During 2017, the Company declared four quarterly dividends of $0.415 per share, to holders of the Company’s common stock. Dividends of $26 million were paid on April 17, 2017, July 17, 2017, October 16, 2017 and January 15, 2018, respectively, to shareholders of record as of April 3, 2017, July 3, 2017, October 2, 2017 and January 2, 2018, respectively. On February 19, 2019, 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 April 15, 2019 to shareholders of record on April 2, 2019. 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 2018 and 2017, there were no shares repurchased under the Program. Since the inception of the Program, the Company repurchased 24,853,827 shares at an average price of $39.33 for a total cost of $977 million. All shares repurchased are recorded as Treasury stock on the Consolidated Balance Sheets under the par value method at $0.01 per share. The authorized stated capital consists of the following: PREFERRED SHARES The Company is authorized to issue 20 million preferred shares, par value $0.01 per share. The Board of Directors of the Company will determine the voting powers (if any) of the shares, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares at the time of issuance. No preferred shares were outstanding at December 31, 2018 or December 31, 2017. COMMON STOCK The Company is authorized to issue two billion shares of common stock, par value $0.01 per share. Holders of the Company’s common stock are entitled to one vote per share. The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2018 and December 31, 2017, were as follows: December 31, December 31, 2018 2017 Number Number Common stock of shares $ of shares $ Balance at beginning of year 62,695,685 1 62,588,837 1 Shares issued Treasury stock 218,884 — 106,848 — Balance at end of year 62,914,569 1 62,695,685 1 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 2018, the Company’s operating expenses for environmental matters amounted to $68 million (2017 – $67 million; 2016 – $65 million). The Company made capital expenditures for environmental matters of $8 million in 2018 (2017– $2 million; 2016 – $4 million). In connection with 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: December 31, December 31, 2018 2017 $ $ Balance at beginning of year 44 50 Additions and other changes 4 4 Environmental spending (9 ) (12 ) Effect of foreign currency exchange rate change (2 ) 2 Balance at end of year (1) 37 44 (1) At December 31, 2018, $10 million is shown in Trade and other payables (see Note 16) and $27 million is shown in Other liabilities and deferred credits (see Note 19). At December 31, 2018, anticipated undiscounted payments in each of the next five years are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 10 1 2 2 2 67 84 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 former 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 EPA Clean Power Plan regulation is being litigated and has been stayed. The EPA has proposed to repeal and replace the Clean Power Plan. The proposed replacement rule, entitled the “Affordable Clean Energy” (“ACE”) rule, was published on August 31, 2018, and the EPA plans to finalize the rule in the first part of 2019. Regardless of the outcome for the Clean Power Plan and ACE, the Company does not expect to be disproportionately affected compared with other pulp and paper producers located in the states where the Company operates. The province of Quebec has a greenhouse gases (“GHG”) cap-and-trade system with reduction targets. British Columbia has a carbon tax that applies to the purchase of fossil fuels within the province. The Company does not expect its facilities to be disproportionately affected by these measures compared with other pulp and paper producers located in these jurisdictions. In October 2018, the Government of Canada proposed to establish a federal carbon pricing system in provinces that do not already impose a cost on carbon emissions. This system is expected to become effective in 2019. The Government of Canada is seeking to impose a carbon pricing program for regulating GHG emissions in Ontario, where there is not currently a provincial program. This effort may result in the determination of additional environmental costs which cannot be reasonably estimated at this time. CONTINGENCIES In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at December 31, 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. Spanish Competition Investigation On October 15, 2015, the Competition Directorate of Spain’s National Commission of Markets and Competition (“CNMC”) filed a Statement of Objections against a number of industry participants alleging the existence of a series of agreements between manufacturers, distributors and pharmacists to fix prices and to allocate margins for heavy adult incontinence products within the pharmacy channel On January 4, 2016, the Competition Directorate issued a proposed decision confirming the allegations of the Statement of Objections. The proposed decision recommended the imposition of fines on the parties without recommending the amount of any fines. The Company recorded a €0.2 million ($0.2 million) provision in the fourth quarter of 2015 in Other operating (income) loss, net. On May 26, 2016, the CNMC rendered its final decision, which declared that a number of manufacturers of heavy adult incontinence products, the sector association and certain individuals participated in price fixing during the period from December 1996 through January 2014. Indas and one of its subsidiaries were fined a total of €13.5 million ($14.9 million) for their participation. A provision was recorded in the second quarter of 2016 in the amount of €13.3 million ($14.7 million) in Other operating (income) loss, net. The sellers of Indas made representations and warranties to the Company in the purchase agreement regarding, among other things, Indas’ and its subsidiary’s compliance with competition laws. The liability retained by the sellers was backed by a retained purchase price of €3 million ($3.3 million) and bank guarantees of €9 million ($9.9 million). On June 27, 2016, in light of the CNMC decision, the sellers, in terms of their indemnity obligations, agreed to the appropriation by the Company of the retained purchase price and the release of the bank guarantees. Accordingly, a recovery of €12 million ($13.2 million) was recorded in the second quarter of 2016 and included in Other operating (income) loss, net. In July 2016, the fines were paid and Indas and two of its affiliates named in the final decision appealed the decision to the Spanish courts. The Company purchased limited insurance coverage with respect to the purchase agreement, and is seeking to recover the remaining €1.5 million ($1.7 million) under the insurance policy. Any recovery from the insurers would be recorded in the period when the proceeds are received. LEASE AND OTHER COMMERCIAL COMMITMENTS The Company has entered into operating leases for property, plant and equipment. The Company also has commitments to purchase property, plant and equipment, roundwood, wood chips, gas and certain chemicals. Purchase orders in the normal course of business are excluded from the table below. Any amounts for which the Company is liable under purchase orders are reflected in the Consolidated Balance Sheets as Trade and other payables. Minimum future payments under these operating leases and other commercial commitments, determined at December 31, 2018, were as follows: 2019 2020 2021 2022 2023 Thereafter Total $ $ $ $ $ $ $ Operating leases 26 21 17 12 10 17 103 Other commercial commitments 84 13 3 1 — 2 103 Total operating lease expense amounted to $29 million in 2018 (2017 – $31 million; 2016 – $28 million). INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At December 31, 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 December 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. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices and interest rates. To the extent the Company decides to manage the volatility related to these exposures, the Company may enter into various financial derivatives that are accounted for under the derivatives and hedging guidance. These transactions are governed by the Company's hedging policies which provide direction on acceptable hedging activities, including instrument type and acceptable counterparty exposure. Upon inception, the Company formally documents the relationship between hedging instruments and hedged items. At inception and quarterly thereafter, the Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the cash flow or the fair value of the underlying exposures. The ineffective portion of the qualifying instrument is immediately recognized to earnings. The amount of ineffectiveness recognized was immaterial for all years presented. The Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivables from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of December 31, 2018, one of Domtar’s Pulp and Paper segment customers located in the U.S. represented 10% or $67 million (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 42 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of December 31, 2018 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2019 11,430,000 $ 34 41% 2020 8,880,000 $ 27 32% 2021 3,920,000 $ 12 14% 2022 2,070,000 $ 6 7% (1) MMBTU: Millions of British thermal units The natural gas derivative contracts were fully effective as of December 31, 2018. There were no amounts reflected in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2018 resulting from hedge ineffectiveness (2017 and 2016 – nil). FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States, Canada and Europe. As a result, it is exposed to movements in foreign currency exchange rates in Canada and Europe. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. Accordingly, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and European currencies. The Company’s European subsidiaries are also exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than their Euro functional currency. The Company’s risk management policy allows it to hedge a significant portion of its exposure to fluctuations in foreign currency exchange rates for periods up to three years. The Company may use derivative financial instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates. Derivatives are used to hedge forecasted purchases in Canadian dollars by the Company’s Canadian subsidiary over the next 24 months. Derivatives are also currently used to hedge a portion of forecasted non-Euro cash flows of its European subsidiaries for the next 2 months. Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2018 to hedge forecasted purchases and sales: Percentage of Notional forecasted Business Year of contractual exposures under Average Average Currency exposure hedged Segment maturity value contracts Protection rate Obligation rate CAD/USD Pulp and Paper 2019 699 CAD 78% 1 USD = 1.2873 1 USD = 1.3168 CAD/USD Pulp and Paper 2020 324 CAD 36% 1 USD = 1.2937 1 USD = 1.2937 The foreign exchange derivative contracts were fully effective as of December 31, 2018. There were no amounts reflected in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2018 resulting from hedge ineffectiveness (2017 and 2016 – 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 December 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. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2018 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 1 — 1 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Total Assets 2 — 2 — Liabilities derivatives Currency derivatives 19 — 19 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives 11 — 11 — (a) Other liabilities and deferred credits Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 37 — 37 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 14 14 — — Other liabilities and deferred credits Long-term debt 858 — 858 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $6 million at December 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 December 31, 2018. The net cumulative loss recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $29 million at December 31, 2018, of which a loss of $18 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 December 31, 2018. Quoted prices in Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2017 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 16 — 16 — (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 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 is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at December 31, 2018 and December 31, 2017. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $854 million and $1,130 million at December 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. |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Disclosures | SEGMENT DISCLOSURES The Company’s two reportable segments described below also represent its two operating segments. Each reportable segment offers different products and services and requires different manufacturing processes, technology and/or marketing strategies. The following summary briefly describes the operations included in each of the Company’s reportable segments: • Pulp and Paper – consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. • Personal Care – consists of the design, manufacturing, marketing and distribution of absorbent hygiene products. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates segment performance based on operating income. Transfer prices between segments are based on market prices. Certain Corporate general and administrative costs are allocated to the segments. Corporate costs that are not related to segment activities, as well as the mark-to-market impact on stock based compensation awards, are presented on the Corporate line. The Company does not allocate interest expense and income taxes to the segments. Segment assets are those directly used in segment operations. The Company attributes sales to customers in different geographical areas on the basis of the location of the customer. Long-lived assets consist of property, plant and equipment, intangible assets and goodwill used in the generation of sales in the different geographical areas. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2018 2017 2016 $ $ $ Sales (1) Pulp and Paper 4,523 4,216 4,239 Personal Care 1,000 996 909 Total for reportable segments 5,523 5,212 5,148 Intersegment sales (68 ) (64 ) (58 ) Consolidated sales (2) 5,455 5,148 5,090 Sales by product group Communication papers 2,548 2,382 2,571 Specialty and packaging papers 710 651 680 Market pulp 1,197 1,119 930 Absorbent hygiene products 1,000 996 909 Consolidated sales (2) 5,455 5,148 5,090 Depreciation and amortization Pulp and Paper 238 254 284 Personal Care 70 67 64 Total for reportable segments 308 321 348 Impairment of property, plant and equipment and goodwill - Personal Care 7 578 — Impairment of property, plant and equipment - Pulp and Paper — — 29 Consolidated depreciation and amortization and impairment of property, plant and equipment and goodwill 315 899 377 Operating income (loss) (3) Pulp and Paper 438 237 201 Personal Care (5 ) (527 ) 57 Corporate (47 ) (38 ) (50 ) Consolidated operating income (loss) 386 (328 ) 208 Interest expense, net 62 66 66 Non-service components of net periodic benefit cost (18 ) (11 ) (15 ) Earnings (loss) before income taxes and equity loss 342 (383 ) 157 Income tax expense (benefit) 57 (125 ) 29 Equity loss, net of taxes 2 — — Net earnings (loss) 283 (258 ) 128 (1) As a result of adopting ASU 2014-09 “ Revenue from Contracts with Customers, (2) In 2018 and 2017, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 10% (2017 – 10%) of the total sales. (3) As a result of adopting ASU 2017-07 “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, December 31, December 31, 2018 2017 $ $ Segment assets Pulp and Paper 3,475 3,649 Personal Care 1,331 1,406 Total for reportable segments 4,806 5,055 Corporate 119 157 Consolidated assets 4,925 5,212 Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Additions to property, plant and equipment Pulp and Paper 164 128 287 Personal Care 37 48 55 Total for reportable segments 201 176 342 Corporate 2 4 4 Consolidated additions to property, plant and equipment 203 180 346 Add: Change in payables on capital projects (8 ) 2 1 Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 195 182 347 Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Geographic information Sales United States 3,669 3,486 3,571 Canada 480 474 493 Europe 682 610 597 Asia 489 444 351 Other foreign countries 135 134 78 5,455 5,148 5,090 December 31, December 31, 2018 2017 $ $ Long-lived assets United States 2,056 2,136 Canada 604 677 Europe 542 585 3,202 3,398 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | 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 is not guaranteed by certain of Domtar’s foreign and non-significant domestic subsidiaries, all 100% owned, (collectively the “Non-Guarantor Subsidiaries”). A subsidiary’s guarantee may be released in certain customary circumstances, such as if the subsidiary is sold or sells all of its assets, if the subsidiary’s guarantee of the Credit Agreement is terminated or released and if the requirements for legal defeasance to discharge the indenture have been satisfied. The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at December 31, 2018 and 2017 and the Statements of Earnings (Loss) and Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2018, 2017 and 2016 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,411 2,226 (1,182 ) 5,455 Operating expenses Cost of sales, excluding depreciation and amortization — 3,782 1,703 (1,182 ) 4,303 Depreciation and amortization — 216 92 — 308 Selling, general and administrative 11 108 324 — 443 Impairment of property, plant and equipment — 7 — — 7 Closure and restructuring costs — 6 2 — 8 Other operating (income) loss, net — (1 ) 1 — — 11 4,118 2,122 (1,182 ) 5,069 Operating (loss) income (11 ) 293 104 — 386 Interest expense (income), net 62 91 (91 ) — 62 Non-service components of net periodic benefit cost — 1 (19 ) — (18 ) (Loss) earnings before income taxes and equity loss (73 ) 201 214 — 342 Income tax (benefit) expense (20 ) 30 47 — 57 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 336 166 — (502 ) — Net earnings 283 336 166 (502 ) 283 Other comprehensive loss (131 ) (133 ) (110 ) 243 (131 ) Comprehensive income 152 203 56 (259 ) 152 CONDENSED CONSOLIDATING STATEMENT OF LOSS Year ended AND COMPREHENSIVE INCOME (LOSS) December 31, 2017 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,243 2,053 (1,148 ) 5,148 Operating expenses Cost of sales, excluding depreciation and amortization — 3,688 1,605 (1,148 ) 4,145 Depreciation and amortization — 233 88 — 321 Selling, general and administrative 9 142 293 — 444 Impairment of goodwill — 313 265 — 578 Closure and restructuring costs — 2 — — 2 Other operating loss (income), net — 1 (15 ) — (14 ) 9 4,379 2,236 (1,148 ) 5,476 Operating loss (9 ) (136 ) (183 ) — (328 ) Interest expense (income), net 63 86 (83 ) — 66 Non-service components of net periodic benefit cost — 1 (12 ) — (11 ) Loss before income taxes (72 ) (223 ) (88 ) — (383 ) Income tax expense (benefit) 9 (179 ) 45 — (125 ) Share in earnings of equity accounted investees (177 ) (133 ) — 310 — Net loss (258 ) (177 ) (133 ) 310 (258 ) Other comprehensive income 163 175 170 (345 ) 163 Comprehensive (loss) income (95 ) (2 ) 37 (35 ) (95 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,203 2,032 (1,145 ) 5,090 Operating expenses Cost of sales, excluding depreciation and amortization — 3,638 1,558 (1,145 ) 4,051 Depreciation and amortization — 256 92 — 348 Selling, general and administrative 17 93 308 — 418 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 31 1 — 32 Other operating loss (income), net 1 (1 ) 4 — 4 18 4,046 1,963 (1,145 ) 4,882 Operating (loss) income (18 ) 157 69 — 208 Interest expense (income), net 65 50 (49 ) — 66 Non-service components of net periodic benefit cost — — (15 ) — (15 ) (Loss) earnings before income taxes (83 ) 107 133 — 157 Income tax (benefit) expense (43 ) 36 36 — 29 Share in earnings of equity accounted investees 168 97 — (265 ) — Net earnings 128 168 97 (265 ) 128 Other comprehensive income (loss) 2 (12 ) (35 ) 47 2 Comprehensive income 130 156 62 (218 ) 130 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents — — 111 — 111 Receivables — 344 326 — 670 Inventories — 525 237 — 762 Prepaid expenses 6 12 6 — 24 Income and other taxes receivable 1 3 18 — 22 Intercompany accounts 498 194 35 (727 ) — Total current assets 505 1,078 733 (727 ) 1,589 Property, plant and equipment, net — 1,802 803 — 2,605 Intangible assets, net — 256 341 — 597 Investments in affiliates 3,645 2,611 — (6,256 ) — Intercompany long-term advances 5 1 1,569 (1,575 ) — Other assets 18 26 104 (14 ) 134 Total assets 4,173 5,774 3,550 (8,572 ) 4,925 Liabilities and shareholders' equity Current liabilities Trade and other payables 52 464 241 — 757 Intercompany accounts 125 264 338 (727 ) — Income and other taxes payable 1 12 12 — 25 Long-term debt due within one year — — 1 — 1 Total current liabilities 178 740 592 (727 ) 783 Long-term debt 793 — 60 — 853 Intercompany long-term loans 636 938 1 (1,575 ) — Deferred income taxes and other — 335 155 (14 ) 476 Other liabilities and deferred credits 28 116 131 — 275 Shareholders' equity 2,538 3,645 2,611 (6,256 ) 2,538 Total liabilities and shareholders' equity 4,173 5,774 3,550 (8,572 ) 4,925 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 Non- Guarantor Guarantor Consolidating 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 Year ended December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 283 336 166 (502 ) 283 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (557 ) 434 (108 ) 502 271 Cash flows (used for) provided from operating activities (274 ) 770 58 — 554 Investing activities Additions to property, plant and equipment — (142 ) (53 ) — (195 ) Proceeds from disposals of property, plant and equipment — 1 4 — 5 Other — (2 ) (4 ) — (6 ) Cash flows used for investing activities — (143 ) (53 ) — (196 ) Financing activities Dividend payments (108 ) — — — (108 ) Proceeds from receivables securitization facilities — — 85 — 85 Repayments of receivables securitization facilities — — (60 ) — (60 ) Repayments of long-term debt — (300 ) (1 ) — (301 ) Increase in long-term advances to related parties — (341 ) (36 ) 377 — Decrease in long-term advances to related parties 377 — — (377 ) — Other 2 — — — 2 Cash flows provided from (used for) financing activities 271 (641 ) (12 ) — (382 ) Net decrease in cash and cash equivalents (3 ) (14 ) (7 ) — (24 ) Impact of foreign exchange on cash — — (4 ) — (4 ) Cash and cash equivalents at beginning of year 3 14 122 — 139 Cash and cash equivalents at end of year — — 111 — 111 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2017 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net loss (258 ) (177 ) (133 ) 310 (258 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net loss 287 259 471 (310 ) 707 Cash flows provided from operating activities 29 82 338 — 449 Investing activities Additions to property, plant and equipment — (99 ) (83 ) — (182 ) Proceeds from disposals of property, plant and equipment — — 19 — 19 Acquisition of business, net of cash acquired — — (8 ) — (8 ) Cash flows used for investing activities — (99 ) (72 ) — (171 ) Financing activities Dividend payments (104 ) — — — (104 ) Net change in bank indebtedness — (12 ) — — (12 ) Change in revolving credit facility (50 ) — — — (50 ) Proceeds from receivables securitization facilities — — 45 — 45 Repayments of receivables securitization facilities — — (90 ) — (90 ) Repayments of long-term debt (63 ) — (1 ) — (64 ) Increase in long-term advances to related parties — — (202 ) 202 — Decrease in long-term advances to related parties 173 29 — (202 ) — Other 1 — — — 1 Cash flows (used for) provided from financing activities (43 ) 17 (248 ) — (274 ) Net (decrease) increase in cash and cash equivalents (14 ) — 18 — 4 Impact of foreign exchange on cash — — 10 — 10 Cash and cash equivalents at beginning of year 17 14 94 — 125 Cash and cash equivalents at end of year 3 14 122 — 139 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 168 97 (265 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,280 ) 4,149 203 265 337 Cash flows (used for) provided from operating activities (4,152 ) 4,317 300 — 465 Investing activities Additions to property, plant and equipment — (265 ) (82 ) — (347 ) Proceeds from disposals of property, plant and equipment and sale of business — — 1 — 1 Acquisition of businesses, net of cash acquired — (1 ) (45 ) (46 ) Other — — 1 — 1 Cash flows used for investing activities — (266 ) (125 ) — (391 ) Financing activities Dividend payments (102 ) — — — (102 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 12 — — 12 Proceeds from receivables securitization facilities — — 140 — 140 Repayments of receivables securitization facilities — — (70 ) — (70 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,050 ) (223 ) 4,273 — Decrease in long-term advances to related parties 4,273 — — (4,273 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,120 (4,039 ) (154 ) — (73 ) Net (decrease) increase in cash and cash equivalents (32 ) 12 21 — 1 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 49 2 75 — 126 Cash and cash equivalents at end of year 17 14 94 — 125 |
Interim Financial Results
Interim Financial Results | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Results | Domtar Corporation Interim Financial Results (Unaudited) (In millions of dollars, unless otherwise noted) 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,345 $ 1,353 $ 1,367 $ 1,390 $ 5,455 Operating income 77 (a) 62 (b) 114 133 (d) 386 Earnings before income taxes and equity loss 65 51 103 123 342 Net earnings 54 43 99 (c) 87 (e) 283 Basic net earnings per common share 0.86 0.68 1.57 1.38 4.50 Diluted net earnings per common share 0.86 0.68 1.57 1.38 4.48 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,302 $ 1,221 $ 1,290 $ 1,335 $ 5,148 Operating income (loss) 38 62 85 (f) (513 ) (g) (328 ) Earnings (loss) before income taxes and equity loss 25 47 73 (528 ) (383 ) Net earnings (loss) 20 38 70 (386 ) (h) (258 ) Basic net earnings (loss) per common share 0.32 0.61 1.12 (6.16 ) (4.11 ) Diluted net earnings (loss) per common share 0.32 0.61 1.11 (6.16 ) (4.11 ) (a) The operating income for the first Quarter of 2018 included a gain on disposal of property, plant and equipment of $1 million related to our Pulp and Paper segment. The Company also recorded a litigation settlement of $2 million related to our Corporate segment. (b) The operating income for the second Quarter of 2018 included a gain on disposal of property, plant and equipment of $3 million related to our Pulp and Paper segment. (c) The net earnings for the third Quarter of 2018 included a tax benefit of $7 million related to the U.S. Tax Reform. (d) The operating income for the fourth Quarter of 2018 included closure and restructuring costs of $8 million and accelerated depreciation of $7 million, both related to our Personal Care segment. (e) The net earnings for the fourth Quarter of 2018 included a tax expense of $10 million related to the U.S. Tax Reform. (f) The operating income for the third Quarter of 2017 included the partial reversal of contingent consideration provision of $2 million related to our Corporate segment. The Company also recorded a gain on disposal of property, plant and equipment of $4 million related to our Pulp and Paper segment. (g) The operating loss for the fourth Quarter of 2017 included a goodwill impairment charge of $578 million and closure and restructuring costs of $2 million, both associated with our Personal Care segment. The Company also recorded a gain on disposal of property, plant and equipment of $9 million related to our Corporate segment. (h) The net loss for the fourth Quarter of 2017 included a net tax benefit of $140 million related to the U.S. Tax Reform, which is composed of a benefit of $186 million for the remeasurement of deferred tax assets and liabilities and a charge of $46 million for the repatriation tax. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | FINANCIAL STATEMENT SCHEDULE (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED) For the three years ended: Balance at Charged to (Deductions) from / Additions to Balance at end beginnings of year income reserve of year $ $ $ $ Allowances deducted from related asset accounts: Doubtful accounts - Accounts receivable 2018 7 2 (3 ) 6 2017 7 1 (1 ) 7 2016 6 — 1 7 Balance at Charged to Deductions from Balance at end beginnings of year income reserve of year $ $ $ $ Valuation Allowance on Deferred Tax Assets 2018 25 (8 ) (1 ) 16 2017 22 3 — 25 2016 23 (1 ) — 22 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation | BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. The equity method of accounting is used for investments in affiliates over which the Company has significant influence but does not have effective control. |
Translation of Foreign Currencies | TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and is partially offset by the Company’s hedging program (refer to Note 22 “Derivatives and hedging activities and fair value measurement”). At December 31, 2018, the accumulated translation adjustment accounts amounted to $(223) million (2017 – $(132) million). |
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 due in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Sales taxes, and other similar taxes, collected from customers are excluded from revenue. |
Shipping and Handling Costs | SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Closure and Restructuring Costs | CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required impairments, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events at December 31, 2018. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. |
Income Taxes | INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive (loss) income in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). If and when incurred, the Company accounts for any taxes associated with Global Intangible Low-Taxed Income (“GILTI”) as a period cost. |
Cash and Cash Equivalents and Classification of Cash Flows | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. 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. |
Receivables | RECEIVABLES Receivables are recorded net of a provision for doubtful accounts that is based on expected collectability. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Inventories | INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $227 million and $236 million at December 31, 2018 and 2017, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $61 million and $54 million greater at December 31, 2018 and 2017, respectively. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over periods of 10 to 40 years and machinery and equipment over periods of 3 to 20 years. No depreciation is recorded on assets under construction. |
Impairment of Property, Plant and Equipment | IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, by comparing the net book value of the asset group to their estimated undiscounted future cash flows expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition (refer to Note 4 “Impairment of property, plant and equipment and goodwill”). |
Intangible Assets and Goodwill | INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangible assets are not amortized and are evaluated for impairment individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amounts. The qualitative assessment follows the same process as the one performed for goodwill, as described below. If a qualitative assessment is performed and after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of the indefinite-lived intangible assets are less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include trade names related to Attends®, IncoPack®, Indasec® and Reassure®, catalog rights related to Laboratorios Indas S.A.U., license rights related to Xerox and water rights. The Company reviews its indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support indefinite useful lives. Definite-lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite-lived intangible assets include water rights, customer relationships, technology, non-compete agreements as well as license rights, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of property, plant and equipment. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years Goodwill is not amortized; instead it is evaluated for impairment at the beginning of the fourth quarter of every year or more frequently whenever indicators of potential impairment exist. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others. The Company performs its goodwill impairment test at the reporting unit level. In reviewing goodwill for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not (greater than 50%) that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, the Company may identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value and assesses their impact on the fair value of the reporting unit. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If, a qualitative assessment is performed and after assessing the totality of events or circumstances, the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then it performs the quantitative goodwill impairment test. The Company can also elect to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of the reporting unit with its carrying value including goodwill and recognizing an impairment charge for the amount by which the carrying value exceeds the fair value. The impairment charge is limited to the total amount of goodwill allocated to the reporting unit. Significant judgment is required to estimate the fair value of a reporting unit. The Company uses an income approach to determine the fair value of a reporting unit. Under the income approach, the Company estimates the fair value of a reporting unit based on the present value of estimated future cash flows. Key estimates supporting the cash flow projections include, but are not limited to, management’s assessment of industry and market conditions as well as its estimates of revenue growth rates and profit margins, economic indicators, tax rates and capital expenditures. Assumptions used in the impairment evaluations are consistent with internal projections and operating plans. Analysis of the sensitivities of the fair value estimate to changes in assumptions are also performed. Unanticipated market and macroeconomic events and circumstances may occur and could affect the accuracy and validity of management assumptions and estimates. |
Other Assets | OTHER ASSETS Other assets are recorded at cost. |
Debt Issuance Costs | DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheets as a deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Environmental Costs and Asset Retirement Obligations | ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are recorded when remediation efforts are probable and can be reasonably estimated. Provisions for environmental matters are generally not discounted, due to uncertainty with respect to timing of expenditures. Asset retirement obligations are mainly associated with landfill operation and closure, dredging of settling ponds and bark pile management and are recognized, at fair value, in the period in which Domtar incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated or on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. |
Stock-Based Compensation and Other Stock-Based Payments | STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost (net of estimated forfeitures) of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value at the end of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital in the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vest pro rata on the first three anniversaries of the grant and have a seven-year term. Service and performance-based awards vest on the third anniversary of the grant. The performance-based awards have an additional feature where the ultimate number of units that vest will be determined by the Company’s performance results or shareholder return in relation to a predetermined target over the vesting period. Deferred Share Units vest immediately at the grant date and are remeasured at the end of each reporting period, until settlement, using the quoted market value. Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 1,246,036 shares are reserved for issuance in connection with awards to be granted. |
Derivative Instruments | DERIVATIVE INSTRUMENTS Derivative instruments are utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive (loss) income. These amounts are reclassified in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) in the periods in which results are affected by the cash flows of the hedged item within the same line item. Any hedge ineffectiveness is recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) when incurred. 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. 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. |
Pension Plans | PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately nine years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately nine years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. |
Other Post-Retirement Benefit Plans | OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately 13 years of the active employee group covered by the plans. |
Guarantees | GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
Revenue from Contracts with Customers | 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 (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016. The previously reported amounts for Sales and Selling, general and administrative expenses were decreased by $9 million and $8 million, respectively, 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 (Loss) and Comprehensive Income (Loss) 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 | 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 (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016. The previously reported amounts of Cost of sales were increased by $14 million and $16 million, respectively, Selling, general and administrative expenses were decreased by $3 million and $1 million, respectively, both 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 (loss) within the Company’s reportable operating segment disclosures for the years ended December 31, 2017 and 2016. Year ended December 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,157 (9 ) — 5,148 Operating expenses Cost of sales, excluding depreciation and amortization 4,131 — 14 4,145 Depreciation and amortization 321 — — 321 Selling, general and administrative 456 (9 ) (3 ) 444 Impairment of goodwill 578 — — 578 Closure and restructuring costs 2 — — 2 Other operating income, net (14 ) — — (14 ) 5,474 (9 ) 11 5,476 Operating loss (317 ) — (11 ) (328 ) Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (11 ) (11 ) Loss before income taxes (383 ) — — (383 ) Income tax benefit (125 ) — — (125 ) Net loss (258 ) — — (258 ) Year ended December 31, 2016 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,098 (8 ) — 5,090 Operating expenses Cost of sales, excluding depreciation and amortization 4,035 — 16 4,051 Depreciation and amortization 348 — — 348 Selling, general and administrative 427 (8 ) (1 ) 418 Impairment of property, plant and equipment 29 — — 29 Closure and restructuring costs 32 — — 32 Other operating loss, net 4 — — 4 4,875 (8 ) 15 4,882 Operating income (loss) 223 — (15 ) 208 Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (15 ) (15 ) Earnings before income taxes 157 — — 157 Income tax expense 29 — — 29 Net earnings 128 — — 128 |
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. |
Future Accounting Changes [Member] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, “ Leases As a lessee, Domtar’s various leases under the existing accounting standard are classified as operating leases that are not recorded on the Consolidated Balance Sheets but are recorded in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss) as the lease expense is recognized on a straight-line basis over the lease term. With the adoption of the new standard, the Company is required to record substantially all operating leases on the Consolidated Balance Sheets as right-of-use assets and lease liabilities. The operating lease expense will continue to be recognized on a straight-line basis over the lease term. The accounting for finance leases will remain substantially unchanged. The Company elected to apply the new leases standard as of January 1, 2019. Upon adoption, no cumulative-effect adjustments to the retained earnings were required. At January 1, 2019, the amounts of the operating lease right-of-use assets and lease liabilities were $81 million and $90 million, respectively. The adoption of the standard will not have an impact on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). For all comparative periods presented in the Consolidated financial statements prior to the adoption of the new leases standard, the Company will continue to report operating leases under Topic 840 “Leases” and provide the related required disclosures. |
Implementation Costs for Cloud Computing Arrangements | IMPLEMENTATION COSTS FOR CLOUD COMPUTING ARRANGEMENTS In August 2018, the FASB issued ASU 2018-15 “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract • Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted CCA service, if any (generally as an “other asset”). • The amortization of capitalized implementation costs should be presented in the same statement of earnings line item as the fees associated with the hosted CCA service. Accordingly, the amortization of capitalized implementation costs should not be included with depreciation or amortization expense related to property, plant, and equipment or intangible assets. • Cash flows related to capitalized implementation costs should be presented as operating activities, consistent with the presentation of cash flows for the fees related to the hosted CCA service. • Entities are required to disclose the nature of the hosting arrangements that are service contracts and significant judgments made when applying the guidance. Additionally, companies are required to provide quantitative disclosures, including amounts capitalized, amortized, and impaired. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. While the Company is still evaluating the impact of adopting the new standard, it does not expect this new guidance to have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Amortization Period of Finite Lived Assets | Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 10 to 40 years Technology 7 to 20 years Non-Compete agreements 9 years Licence rights 12 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Schedule of Reclassification to Consolidated Statement of Earnings and Comprehensive (Loss) Income | 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 (Loss) and Comprehensive Income (Loss) for the years ended December 31, 2017 and 2016. Year ended December 31, 2017 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,157 (9 ) — 5,148 Operating expenses Cost of sales, excluding depreciation and amortization 4,131 — 14 4,145 Depreciation and amortization 321 — — 321 Selling, general and administrative 456 (9 ) (3 ) 444 Impairment of goodwill 578 — — 578 Closure and restructuring costs 2 — — 2 Other operating income, net (14 ) — — (14 ) 5,474 (9 ) 11 5,476 Operating loss (317 ) — (11 ) (328 ) Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (11 ) (11 ) Loss before income taxes (383 ) — — (383 ) Income tax benefit (125 ) — — (125 ) Net loss (258 ) — — (258 ) Year ended December 31, 2016 As Reported Impact of ASU 2014-09 Impact of ASU 2017-07 As Adjusted (Unaudited) $ $ $ $ Sales 5,098 (8 ) — 5,090 Operating expenses Cost of sales, excluding depreciation and amortization 4,035 — 16 4,051 Depreciation and amortization 348 — — 348 Selling, general and administrative 427 (8 ) (1 ) 418 Impairment of property, plant and equipment 29 — — 29 Closure and restructuring costs 32 — — 32 Other operating loss, net 4 — — 4 4,875 (8 ) 15 4,882 Operating income (loss) 223 — (15 ) 208 Interest expense, net 66 — — 66 Non-service components of net periodic benefit cost — — (15 ) (15 ) Earnings before income taxes 157 — — 157 Income tax expense 29 — — 29 Net earnings 128 — — 128 |
Acquisition of Businesses (Tabl
Acquisition of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Home Delivery Incontinent Supplies Co. [Member] | |
Fair Value of Assets Acquired | The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Receivables $ 4 Inventory 4 Property, plant and equipment 1 Intangible assets Customer relationships (1) 21 Trade names (2) 13 34 Goodwill 17 Deferred income tax assets 2 Total assets 62 Less: Liabilities Trade and other payables 10 Total liabilities 10 Fair value of net assets acquired at the date of acquisition 52 (1) (2) Indefinite useful life. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Monte Carlo Simulation [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the units granted: 2018 2017 2016 Dividend yield 3.800 % 4.130 % 4.740 % Expected volatility 1 year 22 % 28 % 24 % Expected volatility 3 years 26 % 28 % 30 % Risk-free interest rate December 31, 2016 — — 1.057 % Risk-free interest rate December 31, 2017 — 1.614 % 0.860 % Risk-free interest rate December 31, 2018 2.233 % 1.606 % 0.900 % Risk-free interest rate December 31, 2019 2.461 % 1.751 % — Risk-free interest rate December 31, 2020 2.607 % — — |
Black-Scholes Based Option Pricing Model [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the options granted: 2018 2017 2016 Dividend yield 3.27 % 3.48 % 3.78 % Expected volatility 29 % 28 % 30 % Risk-free interest rate 2.62 % 1.86 % 1.17 % Expected life 4.5 years 4.5 years 4.5 years Strike price $ 43.66 $ 39.81 $ 33.78 |
Performance Share Units [Member] | |
Summary of Outstanding Awards | These awards will cliff vest at various dates up to February 20, 2021. Weighted average grant PSUs Number of units date fair value $ Vested and non-vested at December 31, 2015 426,079 46.00 Granted 295,504 32.38 Forfeited (28,523 ) 39.81 Cancelled (101,124 ) 51.27 Vested and settled (74,655 ) 35.97 Vested and non-vested at December 31, 2016 517,281 38.98 Granted 256,078 39.04 Forfeited (24,581 ) 37.59 Cancelled (75,710 ) 38.78 Vested and settled (50,600 ) 54.95 Vested and non-vested at December 31, 2017 622,468 37.78 Granted 238,537 41.39 Forfeited (36,932 ) 38.09 Issued 52,563 41.05 Vested and settled (154,178 ) 44.22 Vested and non-vested at December 31, 2018 722,458 37.82 |
Restricted Stock Units [Member] | |
Summary of Outstanding Awards | The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSUs Number of units date fair value $ Non-vested at December 31, 2015 346,966 44.21 Granted/issued 196,786 34.04 Forfeited (17,884 ) 39.69 Vested and settled (107,198 ) 39.12 Non-vested at December 31, 2016 418,670 40.90 Granted/issued 182,937 39.83 Forfeited (19,194 ) 37.97 Vested and settled (121,750 ) 48.72 Non-vested at December 31, 2017 460,663 38.56 Granted/issued 157,502 44.04 Forfeited (27,251 ) 39.91 Vested and settled (135,323 ) 42.54 Non-vested at December 31, 2018 455,591 39.16 |
Deferred Share Units [Member] | |
Summary of Outstanding Awards | In 2018, no vested awards were deferred to DSUs (2017 – nil; 2016 – nil). Weighted average grant DSUs Number of units date fair value $ Vested at December 31, 2015 289,460 28.20 Granted/issued 46,737 37.43 Settled (15,123 ) 39.60 Vested at December 31, 2016 321,074 29.01 Granted/issued 36,215 40.68 Settled (85,055 ) 32.27 Vested at December 31, 2017 272,234 29.55 Granted/issued 31,691 44.64 Settled (9,752 ) 40.95 Vested at December 31, 2018 294,173 30.79 |
Stock Options [Member] | |
Summary of Outstanding Awards | Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS (including Performance options) of options price (in years) (in millions) $ $ Outstanding at December 31, 2015 451,302 46.48 4.8 0.1 Granted 114,723 33.78 6.2 — Exercised (37,296 ) 41.11 — — Forfeited/expired (6,502 ) 20.89 — — Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Options exercisable at December 31, 2016 286,011 46.50 3.9 0.1 Outstanding at December 31, 2016 522,227 44.39 4.5 0.7 Granted 106,268 39.81 6.2 — Exercised (65,430 ) 36.33 — — Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Options exercisable at December 31, 2017 359,960 48.02 3.2 1.3 Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Granted 104,086 43.66 6.2 — Exercised (147,397 ) 39.42 — — Forfeited/expired (6,102 ) 50.05 — — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Options exercisable at December 31, 2018 303,055 49.15 2.3 — |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings (Loss) Per Common Share | The following table provides the reconciliation between basic and diluted earnings (loss) per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 Net earnings (loss) $ 283 $ (258 ) $ 128 Weighted average number of common shares outstanding (millions) 62.9 62.7 62.6 Effect of dilutive securities (millions) 0.2 — 0.1 Weighted average number of diluted common shares outstanding (millions) 63.1 62.7 62.7 Basic net earnings (loss) per common share (in dollars) $ 4.50 $ (4.11 ) $ 2.04 Diluted net earnings (loss) per common share (in dollars) $ 4.48 $ (4.11 ) $ 2.04 |
Securities that Could Potentially Dilute Basic Earnings (Loss) Per Common Share in Future | The following table provides the securities that could potentially dilute basic earnings (loss) per common share in the future, but were not included in the computation of diluted earnings (loss) per common share because to do so would have been anti-dilutive: December 31, December 31, December 31, 2018 2017 2016 Options 227,221 312,893 410,978 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Change in Projected Benefit Obligation | The following table represents the change in the projected benefit obligation as of December 31, 2018 and December 31, 2017, the measurement date for each year: December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,764 76 1,584 90 Service cost for the year 34 1 30 2 Interest expense 53 2 52 4 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (80 ) (8 ) 95 (17 ) Plan amendments — — 1 (5 ) Benefits paid (101 ) — (85 ) — Direct benefit payments (3 ) (4 ) (3 ) (3 ) Settlement — — (2 ) — Effect of foreign currency exchange rate change (104 ) (5 ) 86 5 Projected benefit obligation at end of year 1,569 62 1,764 76 |
Change in Fair Value of Assets | The following table represents the change in the fair value of assets, as of December 31, 2018 and December 31, 2017, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: December 31, 2018 December 31, 2017 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,765 1,546 Actual return on plan assets (27 ) 166 Employer contributions 57 47 Plan participants' contributions 6 6 Benefits paid (104 ) (88 ) Settlement — (2 ) Effect of foreign currency exchange rate change (109 ) 90 Fair value of assets at end of year 1,588 1,765 |
Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation | The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2018: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2018 2017 Fixed income Cash and cash equivalents 0% – 9% 2 % 2 % Bonds 46% – 56% 52 % 52 % Insurance contracts 5% 5 % 5 % Equity Canadian Equity 3% – 10% 6 % 6 % U.S. Equity 8% – 18% 13 % 13 % International Equity 17% – 27% 22 % 22 % Total (1) 100 % 100 % (1) Approximately 77% of the pension plans' assets relate to Canadian plans and 23% relate to U.S. plans. |
Funded Status of Plans | The following table presents the difference between the fair value of assets and the actuarially determined projected benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,569 ) (62 ) (1,764 ) (76 ) Fair value of assets at end of year 1,588 — 1,765 — Funded status 19 (62 ) 1 (76 ) |
Amount Recognized in Consolidated Balance Sheets | The funded status includes $49 million of projected benefit obligation ($54 million at December 31, 2017) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2018 December 31, 2017 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 16) — (5 ) — (5 ) Other liabilities and deferred credits (Note 19) (88 ) (57 ) (130 ) (71 ) Other assets (Note 14) 107 — 131 — Net amount recognized in the Consolidated Balance Sheets 19 (62 ) 1 (76 ) |
Pre-Tax Amounts Included in Other Comprehensive (Loss) Income | The following table presents the pre-tax amounts included in Other comprehensive (loss) income: Year ended Year ended Year ended December 31, 2018 December 31, 2017 December 31, 2016 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service (cost) credit — — (1 ) 5 — — Amortization of prior year service cost 5 — 5 — 5 — Net (loss) gain (31 ) 8 (10 ) 17 (53 ) (2 ) Amortization of net actuarial loss (gain) 8 (1 ) 9 — 6 — Net amount recognized in other comprehensive (loss) income (pre-tax) (18 ) 7 3 22 (42 ) (2 ) |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | At December 31, 2018, the projected benefit obligation and the fair value of defined benefit plan assets with a projected benefit obligation in excess of fair value of plan assets were $731 million and $643 million, respectively (2017 – $811 million and $680 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2018 2017 2016 $ $ $ Service cost for the year 34 30 32 Interest expense 53 52 50 Expected return on plan assets (85 ) (81 ) (80 ) Amortization of net actuarial loss 8 9 5 Settlement loss — — 1 Amortization of prior year service cost 5 5 5 Net periodic benefit cost 15 15 13 Components of net periodic benefit cost for other post-retirement Year ended December 31, Year ended December 31, Year ended December 31, benefit plans 2018 2017 2016 $ $ $ Service cost for the year 1 2 2 Interest expense 2 4 4 Amortization of net actuarial gain (1 ) — — Net periodic benefit cost 2 6 6 |
Key Assumptions to Measure Accrued Benefit Obligation and Net Periodic Benefit Cost | The Company used the following key assumptions to measure the projected benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2018 2017 2016 Projected benefit obligation Discount rate 3.8 % 3.5 % 3.8 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.5 % 3.9 % 4.1 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Expected long-term rate of return on plan assets 5.2 % 5.3 % 5.3 % December 31, December 31, December 31, Other post-retirement benefit plans 2018 2017 2016 Projected benefit obligation Discount rate 3.8 % 3.5 % 3.9 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.5 % 3.8 % 4.1 % Rate of compensation increase 2.7 % 2.8 % 2.8 % |
Effect of One Percent Change in Assumed Health Care Cost | For measurement purposes, a 4.4% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2018. The rate was assumed to decrease gradually to 3.5% by 2033 and remain at that level thereafter. An increase or decrease of 1% of this rate would have the following impact: Increase of 1% Decrease of 1% $ $ Impact on net periodic benefit cost for other post-retirement benefit plans — — Impact on projected benefit obligation 3 (3 ) |
Schedule Of Fair Value Of Plan Asset By Asset Category Table Text Block | The following table presents the fair value of the plan assets at December 31, 2018, by asset category: Fair Value Measurements at December 31, 2018 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 68 68 — — Canadian provincial government bonds 493 492 1 — Canadian corporate debt securities 123 100 23 — U.S. corporate debt securities 37 37 — — International corporate debt securities 9 9 — — Bond fund (1 & 2) 156 — 156 — Canadian equities (3) 94 94 — — U.S. equities (4) 91 91 — — International equities (5) 233 233 — — U.S. stock index funds (2 & 6) 200 — 200 — Insurance contracts (7) 84 — — 84 Total 1,588 1,124 380 84 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category includes: 1) two group annuity contracts totaling $75 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $9 million of insurance contracts with a minimum guarantee rate. The following table presents the fair value of the plan assets at December 31, 2017, by asset category: Fair Value Measurements at December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 79 79 — — Asset backed notes 1 — — 1 Canadian provincial government bonds 566 565 1 — Canadian corporate debt securities 139 117 22 — U.S. corporate debt securities 43 43 — — International corporate debt securities 2 2 — — Bond fund (1 & 2) 152 — 152 — Canadian equities (3) 111 111 — — U.S. equities (4) 103 103 — — International equities (5) 252 252 — — U.S. stock index funds (2 & 6) 224 — 224 — Insurance contracts (7) 94 — — 94 Derivative contracts (8) (1 ) — (1 ) — Total 1,765 1,272 398 95 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents equity two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category includes: 1) two group annuity contracts totaling $85 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $9 million of insurance contracts with a minimum guarantee rate. (8) The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. |
Changes in Level 3 Fair Value Measurements of Plan Assets | The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Insurance contracts Other TOTAL $ $ $ Balance at December 31, 2016 84 3 87 Settlements (5 ) (2 ) (7 ) Return on plan assets 9 — 9 Effect of foreign currency exchange rate change 6 — 6 Balance at December 31, 2017 94 1 95 Settlements (5 ) (1 ) (6 ) Return on plan assets 2 — 2 Effect of foreign currency exchange rate change (7 ) — (7 ) Balance at December 31, 2018 84 — 84 |
Estimated Future Benefit Payments from Plans | Estimated future benefit payments from the plans for the next 10 years at December 31, 2018 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2019 103 5 2020 102 5 2021 103 4 2022 103 4 2023 104 4 2024 – 2028 517 21 |
Other Operating (Income) Loss_2
Other Operating (Income) Loss, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating (Income) Loss, Net | The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 $ $ $ Net gain on sale of property, plant and equipment (4 ) (13 ) — Reversal of contingent consideration — (2 ) — Bad debt expense 2 1 — Environmental provision 5 3 2 Foreign exchange (gain) loss (2 ) 1 6 Other (1 ) (4 ) (4 ) Other operating (income) loss, net — (14 ) 4 |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |
Components of Interest Expense, Net | The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Interest on long-term debt (1) 56 59 59 Interest on receivables securitization 1 2 2 Interest on withdrawal liabilities for multiemployer plans 2 3 3 Amortization of debt issuance costs and other 3 2 2 62 66 66 (1) The Company capitalized $1 million of interest expense in 2018 (2017 – $1 million; 2016 – $5 million). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings (Loss) Before Income Taxes | The Company’s earnings (loss) before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. earnings (loss) 216 (209 ) 69 Foreign earnings (loss) 126 (174 ) 88 Earnings (loss) before income taxes 342 (383 ) 157 |
Provisions for Income Taxes | Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. Federal and State: Current 32 73 10 Deferred (6 ) (208 ) 1 Foreign: Current 12 9 10 Deferred 19 1 8 Income tax expense (benefit) 57 (125 ) 29 |
Reconciliation of Income Tax Expense (Benefit) to U.S. Federal Statutory Income Tax | The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 21% (35% for December 31, 2017 and December 31, 2016) to earnings (loss) before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ U.S. federal statutory income tax 72 (134 ) 55 Reconciling Items: State and local income taxes, net of federal income tax benefit 8 2 3 Foreign income tax rate differential 1 (16 ) (14 ) Tax credits and special deductions (19 ) (24 ) (18 ) Goodwill impairment — 200 — Tax rate changes (9 ) (188 ) — Deemed mandatory repatriation tax (7 ) 46 — Uncertain tax positions (4 ) (6 ) 2 U.S. manufacturing deduction — (4 ) (2 ) Deferred taxes on foreign earnings 10 — — Net operating loss cancellation 9 — — Valuation allowance on deferred tax assets (8 ) 3 (1 ) Other 4 (4 ) 4 Income tax expense (benefit) 57 (125 ) 29 |
Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2018 and December 31, 2017 are comprised of the following: December 31, December 31, 2018 2017 $ $ Accounting provisions 38 36 Net operating loss carryforwards and other deductions 36 43 Pension and other employee future benefit plans 22 31 Inventory 10 10 Tax credits 21 36 Gross deferred tax assets 127 156 Valuation allowance (16 ) (25 ) Net deferred tax assets 111 131 Property, plant and equipment (422 ) (436 ) Intangible assets (122 ) (131 ) Other (10 ) (16 ) Total deferred tax liabilities (554 ) (583 ) Net deferred tax liabilities (443 ) (452 ) Included in: Other assets (Note 14) 1 2 Deferred income taxes and other (444 ) (454 ) Total (443 ) (452 ) |
Gross Unrecognized Tax Benefits | At December 31, 2018, the Company had gross unrecognized tax benefits of approximately $32 million ($37 million and $43 million for 2017 and 2016, respectively). If recognized in 2019, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. December 31, December 31, December 31, 2018 2017 2016 $ $ $ Balance at beginning of year 37 43 41 Additions based on tax positions related to current year 3 3 3 Additions for tax positions of prior years 4 4 3 Reductions for tax positions of prior years — — (2 ) Reductions related to settlements with taxing authorities — (1 ) — Expirations of statutes of limitations (12 ) (13 ) (3 ) Interest 1 1 1 Foreign exchange impact (1 ) — — Balance at end of year 32 37 43 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: December 31, December 31, 2018 2017 $ $ Work in process and finished goods 410 399 Raw materials 126 135 Operating and maintenance supplies 226 223 762 757 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table presents the components of property, plant and equipment: Range of useful lives December 31, December 31, (in years) 2018 2017 $ $ Machinery and equipment 3 – 20 7,655 7,674 Buildings and improvements 10 – 40 1,043 1,059 Timberlands (1) 193 207 Assets under construction — 131 104 9,022 9,044 Less: Accumulated depreciation (6,417 ) (6,279 ) 2,605 2,765 (1) Amortization is calculated using the unit of production method. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2018 2017 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 384 (94 ) 290 392 (79 ) 313 Technology 7 – 20 8 (4 ) 4 8 (4 ) 4 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (13 ) 15 29 (11 ) 18 424 (113 ) 311 433 (96 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 238 — 238 245 — 245 License rights 6 — 6 6 — 6 Catalog rights 38 — 38 41 — 41 Total 710 (113 ) 597 729 (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: 2019 2020 2021 2022 2023 $ $ $ $ $ Amortization expense related to intangible assets 21 21 21 21 20 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets: December 31, December 31, 2018 2017 $ $ Pension asset - defined benefit pension plans (Note 7) 107 131 Investment tax credits receivable 5 7 Unamortized debt issuance costs 4 4 Deferred income tax assets (Note 10) 1 2 Derivative financial instruments (Note 22) — 5 Investments and advances 6 — Other 11 8 134 157 |
Closure and Restructuring Cos_2
Closure and Restructuring Costs and Liability (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Components of Closure and Restructuring Costs by Segment | The following tables provide the components of closure and restructuring costs by segment: Year ended December 31, 2018 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs — 3 3 Inventory write-down — 4 4 Other — 1 1 Closure and restructuring costs — 8 8 Year ended December 31, 2017 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs — 2 2 Closure and restructuring costs — 2 2 Year Ended December 31, 2016 Pulp and Paper Personal Care Total $ $ $ Severance and termination costs 8 1 9 Pension settlement and withdrawal liability (3 ) — (3 ) Fluff pulp conversion outage 26 — 26 Closure and restructuring costs 31 1 32 |
Activity in Closure and Restructuring Liability | The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2018 2017 $ $ Balance at beginning of year 7 7 Additions 4 2 Payments (5 ) (2 ) Balance at end of year 6 7 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |
Components of Trade and Other Payables | The following table presents the components of trade and other payables: December 31, December 31, 2018 2017 $ $ Trade payables 404 382 Payroll-related accruals 173 164 Accrued interest 16 16 Payables on capital projects 21 11 Rebate accruals 64 72 Liability - pension and other post-retirement benefit plans (Note 7) 5 5 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 21) 10 13 Closure and restructuring costs liability (Note 15) 6 7 Derivative financial instruments (Note 22) 21 7 Dividends payable (Note 20) 27 26 Stock-based compensation - liability awards (Note 22) 6 6 Other 2 5 757 716 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | The following table presents the changes in Accumulated other comprehensive loss by component (1) Net derivative gains (losses) on Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) 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 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options (12 ) N/A N/A N/A (12 ) Foreign exchange forward contracts (19 ) N/A N/A N/A (19 ) Net (gain) loss N/A (23 ) 6 N/A (17 ) Foreign currency items N/A N/A N/A (91 ) (91 ) Other comprehensive (loss) income before reclassifications (30 ) (23 ) 6 (91 ) (138 ) Amounts reclassified from Accumulated other comprehensive loss (2 ) 10 (1 ) — 7 Net current period other comprehensive (loss) income (32 ) (13 ) 5 (91 ) (131 ) Balance at December 31, 2018 (24 ) (231 ) 11 (223 ) (467 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss (1) Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts (2) (2 ) — 12 Currency options and forwards (2) (1 ) (14 ) 12 Total before tax (3 ) (14 ) 24 Tax benefit (expense) 1 5 (10 ) Net of tax (2 ) (9 ) 14 Amortization of defined benefit pension items Amortization of net actuarial loss (3) 8 9 6 Amortization of prior year service cost (3) 5 5 5 Total before tax 13 14 11 Tax expense (3 ) (5 ) (4 ) Net of tax 10 9 7 Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) (1 ) — — Total before tax (1 ) — — Tax expense — — — Net of tax (1 ) — — (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Par December 31, December 31, Maturity Amount Currency 2018 2017 $ $ $ Unsecured notes 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 249 249 Revolving Credit Facility 2023 — US — — Term Loan 2025 300 US — 300 Securitization 2021 50 US 50 25 Capital lease obligations and other 2019 - 2032 11 14 859 1,137 Less: Unamortized debt issuance costs 5 7 Less: Due within one year 1 1 853 1,129 |
Principal Long-Term Debt Repayments, Including Capital Lease Obligations | Principal long-term debt repayments, including capital lease obligations, in each of the next five years will amount to: Long-term debt Capital leases and other $ $ 2019 — 2 2020 — 2 2021 50 2 2022 300 1 2023 — 1 Thereafter 500 7 850 15 Less: Amounts representing interest — 4 Total payments 850 11 |
Other Liabilities and Deferre_2
Other Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule Of Components Of Other Liabilities And Deferred Credits | The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2018 2017 $ $ Liability - other post-retirement benefit plans (Note 7) 57 71 Pension liability - defined benefit pension plans (Note 7) 88 130 Pension liability - multiemployer plan withdrawal 45 47 Long-term income taxes payable 9 42 Provision for environmental and asset retirement obligations (Note 21) 27 31 Stock-based compensation - liability awards (Note 22) 14 20 Derivative financial instruments (Note 22) 16 5 Other 19 22 275 368 |
Domtar's Asset Retirement Obligations | The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2018 2017 $ $ Asset retirement obligations, beginning of year 15 14 Asset retirement obligation payments (3 ) — Accretion expense 1 1 Effect of foreign currency exchange rate change (1 ) — Asset retirement obligations, end of year 12 15 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value | The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2018 and December 31, 2017, were as follows: December 31, December 31, 2018 2017 Number Number Common stock of shares $ of shares $ Balance at beginning of year 62,695,685 1 62,588,837 1 Shares issued Treasury stock 218,884 — 106,848 — Balance at end of year 62,914,569 1 62,695,685 1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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: December 31, December 31, 2018 2017 $ $ Balance at beginning of year 44 50 Additions and other changes 4 4 Environmental spending (9 ) (12 ) Effect of foreign currency exchange rate change (2 ) 2 Balance at end of year (1) 37 44 (1) At December 31, 2018, $10 million is shown in Trade and other payables (see Note 16) and $27 million is shown in Other liabilities and deferred credits (see Note 19). |
Anticipated Undiscounted Payments | At December 31, 2018, anticipated undiscounted payments in each of the next five years are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 10 1 2 2 2 67 84 |
Minimum Future Payments under Operating Leases and Other Commercial Commitments | Minimum future payments under these operating leases and other commercial commitments, determined at December 31, 2018, were as follows: 2019 2020 2021 2022 2023 Thereafter Total $ $ $ $ $ $ $ Operating leases 26 21 17 12 10 17 103 Other commercial commitments 84 13 3 1 — 2 103 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 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 December 31, 2018 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2019 11,430,000 $ 34 41% 2020 8,880,000 $ 27 32% 2021 3,920,000 $ 12 14% 2022 2,070,000 $ 6 7% (1) MMBTU: Millions of British thermal units |
Currency Values under Significant Contracts Pursuant to Currency Options Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2018 to hedge forecasted purchases and sales: Percentage of Notional forecasted Business Year of contractual exposures under Average Average Currency exposure hedged Segment maturity value contracts Protection rate Obligation rate CAD/USD Pulp and Paper 2019 699 CAD 78% 1 USD = 1.2873 1 USD = 1.3168 CAD/USD Pulp and Paper 2020 324 CAD 36% 1 USD = 1.2937 1 USD = 1.2937 |
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 December 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. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2018 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 1 — 1 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Total Assets 2 — 2 — Liabilities derivatives Currency derivatives 19 — 19 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives 11 — 11 — (a) Other liabilities and deferred credits Natural gas swap contracts 5 — 5 — (a) Other liabilities and deferred credits Total Liabilities 37 — 37 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 14 14 — — Other liabilities and deferred credits Long-term debt 858 — 858 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $6 million at December 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 December 31, 2018. The net cumulative loss recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $29 million at December 31, 2018, of which a loss of $18 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 December 31, 2018. Quoted prices in Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2017 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 16 — 16 — (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 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 is classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at December 31, 2018 and December 31, 2017. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $854 million and $1,130 million at December 31, 2018 and December 31, 2017, respectively. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis and Reconciliation of Reportable Segment Information | An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2018 2017 2016 $ $ $ Sales (1) Pulp and Paper 4,523 4,216 4,239 Personal Care 1,000 996 909 Total for reportable segments 5,523 5,212 5,148 Intersegment sales (68 ) (64 ) (58 ) Consolidated sales (2) 5,455 5,148 5,090 Sales by product group Communication papers 2,548 2,382 2,571 Specialty and packaging papers 710 651 680 Market pulp 1,197 1,119 930 Absorbent hygiene products 1,000 996 909 Consolidated sales (2) 5,455 5,148 5,090 Depreciation and amortization Pulp and Paper 238 254 284 Personal Care 70 67 64 Total for reportable segments 308 321 348 Impairment of property, plant and equipment and goodwill - Personal Care 7 578 — Impairment of property, plant and equipment - Pulp and Paper — — 29 Consolidated depreciation and amortization and impairment of property, plant and equipment and goodwill 315 899 377 Operating income (loss) (3) Pulp and Paper 438 237 201 Personal Care (5 ) (527 ) 57 Corporate (47 ) (38 ) (50 ) Consolidated operating income (loss) 386 (328 ) 208 Interest expense, net 62 66 66 Non-service components of net periodic benefit cost (18 ) (11 ) (15 ) Earnings (loss) before income taxes and equity loss 342 (383 ) 157 Income tax expense (benefit) 57 (125 ) 29 Equity loss, net of taxes 2 — — Net earnings (loss) 283 (258 ) 128 (1) As a result of adopting ASU 2014-09 “ Revenue from Contracts with Customers, (2) In 2018 and 2017, Staples, one of the Company’s largest customers in the Pulp and Paper segment, represented approximately 10% (2017 – 10%) of the total sales. (3) As a result of adopting ASU 2017-07 “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, |
Consolidated Assets | December 31, December 31, 2018 2017 $ $ Segment assets Pulp and Paper 3,475 3,649 Personal Care 1,331 1,406 Total for reportable segments 4,806 5,055 Corporate 119 157 Consolidated assets 4,925 5,212 |
Schedule Of Segment Reporting Information Expenditures For Additions To Long Lived Assets Table Text Block | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Additions to property, plant and equipment Pulp and Paper 164 128 287 Personal Care 37 48 55 Total for reportable segments 201 176 342 Corporate 2 4 4 Consolidated additions to property, plant and equipment 203 180 346 Add: Change in payables on capital projects (8 ) 2 1 Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 195 182 347 |
Long-Lived Assets | December 31, December 31, 2018 2017 $ $ Long-lived assets United States 2,056 2,136 Canada 604 677 Europe 542 585 3,202 3,398 |
Sales [Member] | |
Geographic Information on Sales | Year ended Year ended Year ended December 31, December 31, December 31, 2018 2017 2016 $ $ $ Geographic information Sales United States 3,669 3,486 3,571 Canada 480 474 493 Europe 682 610 597 Asia 489 444 351 Other foreign countries 135 134 78 5,455 5,148 5,090 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,411 2,226 (1,182 ) 5,455 Operating expenses Cost of sales, excluding depreciation and amortization — 3,782 1,703 (1,182 ) 4,303 Depreciation and amortization — 216 92 — 308 Selling, general and administrative 11 108 324 — 443 Impairment of property, plant and equipment — 7 — — 7 Closure and restructuring costs — 6 2 — 8 Other operating (income) loss, net — (1 ) 1 — — 11 4,118 2,122 (1,182 ) 5,069 Operating (loss) income (11 ) 293 104 — 386 Interest expense (income), net 62 91 (91 ) — 62 Non-service components of net periodic benefit cost — 1 (19 ) — (18 ) (Loss) earnings before income taxes and equity loss (73 ) 201 214 — 342 Income tax (benefit) expense (20 ) 30 47 — 57 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 336 166 — (502 ) — Net earnings 283 336 166 (502 ) 283 Other comprehensive loss (131 ) (133 ) (110 ) 243 (131 ) Comprehensive income 152 203 56 (259 ) 152 CONDENSED CONSOLIDATING STATEMENT OF LOSS Year ended AND COMPREHENSIVE INCOME (LOSS) December 31, 2017 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,243 2,053 (1,148 ) 5,148 Operating expenses Cost of sales, excluding depreciation and amortization — 3,688 1,605 (1,148 ) 4,145 Depreciation and amortization — 233 88 — 321 Selling, general and administrative 9 142 293 — 444 Impairment of goodwill — 313 265 — 578 Closure and restructuring costs — 2 — — 2 Other operating loss (income), net — 1 (15 ) — (14 ) 9 4,379 2,236 (1,148 ) 5,476 Operating loss (9 ) (136 ) (183 ) — (328 ) Interest expense (income), net 63 86 (83 ) — 66 Non-service components of net periodic benefit cost — 1 (12 ) — (11 ) Loss before income taxes (72 ) (223 ) (88 ) — (383 ) Income tax expense (benefit) 9 (179 ) 45 — (125 ) Share in earnings of equity accounted investees (177 ) (133 ) — 310 — Net loss (258 ) (177 ) (133 ) 310 (258 ) Other comprehensive income 163 175 170 (345 ) 163 Comprehensive (loss) income (95 ) (2 ) 37 (35 ) (95 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 4,203 2,032 (1,145 ) 5,090 Operating expenses Cost of sales, excluding depreciation and amortization — 3,638 1,558 (1,145 ) 4,051 Depreciation and amortization — 256 92 — 348 Selling, general and administrative 17 93 308 — 418 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 31 1 — 32 Other operating loss (income), net 1 (1 ) 4 — 4 18 4,046 1,963 (1,145 ) 4,882 Operating (loss) income (18 ) 157 69 — 208 Interest expense (income), net 65 50 (49 ) — 66 Non-service components of net periodic benefit cost — — (15 ) — (15 ) (Loss) earnings before income taxes (83 ) 107 133 — 157 Income tax (benefit) expense (43 ) 36 36 — 29 Share in earnings of equity accounted investees 168 97 — (265 ) — Net earnings 128 168 97 (265 ) 128 Other comprehensive income (loss) 2 (12 ) (35 ) 47 2 Comprehensive income 130 156 62 (218 ) 130 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents — — 111 — 111 Receivables — 344 326 — 670 Inventories — 525 237 — 762 Prepaid expenses 6 12 6 — 24 Income and other taxes receivable 1 3 18 — 22 Intercompany accounts 498 194 35 (727 ) — Total current assets 505 1,078 733 (727 ) 1,589 Property, plant and equipment, net — 1,802 803 — 2,605 Intangible assets, net — 256 341 — 597 Investments in affiliates 3,645 2,611 — (6,256 ) — Intercompany long-term advances 5 1 1,569 (1,575 ) — Other assets 18 26 104 (14 ) 134 Total assets 4,173 5,774 3,550 (8,572 ) 4,925 Liabilities and shareholders' equity Current liabilities Trade and other payables 52 464 241 — 757 Intercompany accounts 125 264 338 (727 ) — Income and other taxes payable 1 12 12 — 25 Long-term debt due within one year — — 1 — 1 Total current liabilities 178 740 592 (727 ) 783 Long-term debt 793 — 60 — 853 Intercompany long-term loans 636 938 1 (1,575 ) — Deferred income taxes and other — 335 155 (14 ) 476 Other liabilities and deferred credits 28 116 131 — 275 Shareholders' equity 2,538 3,645 2,611 (6,256 ) 2,538 Total liabilities and shareholders' equity 4,173 5,774 3,550 (8,572 ) 4,925 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2017 Non- Guarantor Guarantor Consolidating 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 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 283 336 166 (502 ) 283 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (557 ) 434 (108 ) 502 271 Cash flows (used for) provided from operating activities (274 ) 770 58 — 554 Investing activities Additions to property, plant and equipment — (142 ) (53 ) — (195 ) Proceeds from disposals of property, plant and equipment — 1 4 — 5 Other — (2 ) (4 ) — (6 ) Cash flows used for investing activities — (143 ) (53 ) — (196 ) Financing activities Dividend payments (108 ) — — — (108 ) Proceeds from receivables securitization facilities — — 85 — 85 Repayments of receivables securitization facilities — — (60 ) — (60 ) Repayments of long-term debt — (300 ) (1 ) — (301 ) Increase in long-term advances to related parties — (341 ) (36 ) 377 — Decrease in long-term advances to related parties 377 — — (377 ) — Other 2 — — — 2 Cash flows provided from (used for) financing activities 271 (641 ) (12 ) — (382 ) Net decrease in cash and cash equivalents (3 ) (14 ) (7 ) — (24 ) Impact of foreign exchange on cash — — (4 ) — (4 ) Cash and cash equivalents at beginning of year 3 14 122 — 139 Cash and cash equivalents at end of year — — 111 — 111 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2017 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net loss (258 ) (177 ) (133 ) 310 (258 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net loss 287 259 471 (310 ) 707 Cash flows provided from operating activities 29 82 338 — 449 Investing activities Additions to property, plant and equipment — (99 ) (83 ) — (182 ) Proceeds from disposals of property, plant and equipment — — 19 — 19 Acquisition of business, net of cash acquired — — (8 ) — (8 ) Cash flows used for investing activities — (99 ) (72 ) — (171 ) Financing activities Dividend payments (104 ) — — — (104 ) Net change in bank indebtedness — (12 ) — — (12 ) Change in revolving credit facility (50 ) — — — (50 ) Proceeds from receivables securitization facilities — — 45 — 45 Repayments of receivables securitization facilities — — (90 ) — (90 ) Repayments of long-term debt (63 ) — (1 ) — (64 ) Increase in long-term advances to related parties — — (202 ) 202 — Decrease in long-term advances to related parties 173 29 — (202 ) — Other 1 — — — 1 Cash flows (used for) provided from financing activities (43 ) 17 (248 ) — (274 ) Net (decrease) increase in cash and cash equivalents (14 ) — 18 — 4 Impact of foreign exchange on cash — — 10 — 10 Cash and cash equivalents at beginning of year 17 14 94 — 125 Cash and cash equivalents at end of year 3 14 122 — 139 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2016 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 168 97 (265 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,280 ) 4,149 203 265 337 Cash flows (used for) provided from operating activities (4,152 ) 4,317 300 — 465 Investing activities Additions to property, plant and equipment — (265 ) (82 ) — (347 ) Proceeds from disposals of property, plant and equipment and sale of business — — 1 — 1 Acquisition of businesses, net of cash acquired — (1 ) (45 ) (46 ) Other — — 1 — 1 Cash flows used for investing activities — (266 ) (125 ) — (391 ) Financing activities Dividend payments (102 ) — — — (102 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 12 — — 12 Proceeds from receivables securitization facilities — — 140 — 140 Repayments of receivables securitization facilities — — (70 ) — (70 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,050 ) (223 ) 4,273 — Decrease in long-term advances to related parties 4,273 — — (4,273 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,120 (4,039 ) (154 ) — (73 ) Net (decrease) increase in cash and cash equivalents (32 ) 12 21 — 1 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of year 49 2 75 — 126 Cash and cash equivalents at end of year 17 14 94 — 125 |
Interim Financial Results (Tabl
Interim Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Interim Financial Results | 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,345 $ 1,353 $ 1,367 $ 1,390 $ 5,455 Operating income 77 (a) 62 (b) 114 133 (d) 386 Earnings before income taxes and equity loss 65 51 103 123 342 Net earnings 54 43 99 (c) 87 (e) 283 Basic net earnings per common share 0.86 0.68 1.57 1.38 4.50 Diluted net earnings per common share 0.86 0.68 1.57 1.38 4.48 2017 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,302 $ 1,221 $ 1,290 $ 1,335 $ 5,148 Operating income (loss) 38 62 85 (f) (513 ) (g) (328 ) Earnings (loss) before income taxes and equity loss 25 47 73 (528 ) (383 ) Net earnings (loss) 20 38 70 (386 ) (h) (258 ) Basic net earnings (loss) per common share 0.32 0.61 1.12 (6.16 ) (4.11 ) Diluted net earnings (loss) per common share 0.32 0.61 1.11 (6.16 ) (4.11 ) (a) The operating income for the first Quarter of 2018 included a gain on disposal of property, plant and equipment of $1 million related to our Pulp and Paper segment. The Company also recorded a litigation settlement of $2 million related to our Corporate segment. (b) The operating income for the second Quarter of 2018 included a gain on disposal of property, plant and equipment of $3 million related to our Pulp and Paper segment. (c) The net earnings for the third Quarter of 2018 included a tax benefit of $7 million related to the U.S. Tax Reform. (d) The operating income for the fourth Quarter of 2018 included closure and restructuring costs of $8 million and accelerated depreciation of $7 million, both related to our Personal Care segment. (e) The net earnings for the fourth Quarter of 2018 included a tax expense of $10 million related to the U.S. Tax Reform. (f) The operating income for the third Quarter of 2017 included the partial reversal of contingent consideration provision of $2 million related to our Corporate segment. The Company also recorded a gain on disposal of property, plant and equipment of $4 million related to our Pulp and Paper segment. (g) The operating loss for the fourth Quarter of 2017 included a goodwill impairment charge of $578 million and closure and restructuring costs of $2 million, both associated with our Personal Care segment. The Company also recorded a gain on disposal of property, plant and equipment of $9 million related to our Corporate segment. (h) The net loss for the fourth Quarter of 2017 included a net tax benefit of $140 million related to the U.S. Tax Reform, which is composed of a benefit of $186 million for the remeasurement of deferred tax assets and liabilities and a charge of $46 million for the repatriation tax. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated translation adjustment accounts | $ (223,000,000) | $ (132,000,000) |
LIFO inventories | 227,000,000 | 236,000,000 |
Excess amount of inventory if valued under FIFO instead of LIFO | $ 61,000,000 | $ 54,000,000 |
Expiration period from date of grant | 7 years | |
Other Post-Retirement Benefit Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 13 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of projected benefit obligation and market value of assets | 10.00% | |
Omnibus Plan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Shares reserved for issuance in connection with stock awards grants | 1,246,036 | |
Pension Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 9 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of projected benefit obligation and market value of assets | 10.00% | |
Construction in Progress [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation | $ 0 | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 10 years | |
Minimum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 10 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 3 years | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 40 years | |
Maximum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Amortization Period of Finite Lived Assets (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Water Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Non-Compete [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 9 years |
License Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 12 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 10 years |
Minimum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 7 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Maximum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 20 years |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Decrease in previously reported sales and selling, general and administrative expenses | $ (443,000,000) | $ (444,000,000) | $ (418,000,000) | |
Increase in previously reported cost of sales | $ 4,303,000,000 | 4,145,000,000 | 4,051,000,000 | |
ASU 2016-02 [Member] | Subsequent Event [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Cumulative-effect adjustments to retained earnings | $ 0 | |||
Operating lease right-of-use assets | 81,000,000 | |||
Operating lease, liabilities | $ 90,000,000 | |||
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 | 9,000,000 | 8,000,000 | ||
Adjustment [Member] | ASU 2017-07 [Member] | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Decrease in previously reported sales and selling, general and administrative expenses | 3,000,000 | 1,000,000 | ||
Increase in previously reported cost of sales | $ 14,000,000 | $ 16,000,000 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Schedule of Reclassification to Consolidated Statement of Earnings and Comprehensive (Loss) Income (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales | $ 5,455,000,000 | $ 5,148,000,000 | $ 5,090,000,000 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 4,303,000,000 | 4,145,000,000 | 4,051,000,000 | ||||||||
Depreciation and amortization | 308,000,000 | 321,000,000 | 348,000,000 | ||||||||
Selling, general and administrative | 443,000,000 | 444,000,000 | 418,000,000 | ||||||||
Impairment of goodwill | 578,000,000 | 0 | |||||||||
Impairment of property, plant and equipment and goodwill (NOTE 4) | 7,000,000 | 578,000,000 | 29,000,000 | ||||||||
Closure and restructuring costs | 8,000,000 | 2,000,000 | 32,000,000 | ||||||||
Other operating loss (income), net | (14,000,000) | 4,000,000 | |||||||||
Operating expenses | 5,069,000,000 | 5,476,000,000 | 4,882,000,000 | ||||||||
Operating income (loss) | $ 133,000,000 | $ 114,000,000 | $ 62,000,000 | $ 77,000,000 | $ (513,000,000) | $ 85,000,000 | $ 62,000,000 | $ 38,000,000 | 386,000,000 | (328,000,000) | 208,000,000 |
Interest expense, net (NOTE 9) | 62,000,000 | 66,000,000 | 66,000,000 | ||||||||
Non-service components of net periodic benefit cost | (18,000,000) | (11,000,000) | (15,000,000) | ||||||||
(Loss) earnings before income taxes | (383,000,000) | 157,000,000 | |||||||||
Income tax (benefit) expense | 57,000,000 | (125,000,000) | 29,000,000 | ||||||||
Net earnings (loss) | $ 87,000,000 | $ 99,000,000 | $ 43,000,000 | $ 54,000,000 | $ (386,000,000) | $ 70,000,000 | $ 38,000,000 | $ 20,000,000 | $ 283,000,000 | (258,000,000) | 128,000,000 |
As Reported [Member] | |||||||||||
Sales | 5,157,000,000 | 5,098,000,000 | |||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 4,131,000,000 | 4,035,000,000 | |||||||||
Depreciation and amortization | 321,000,000 | 348,000,000 | |||||||||
Selling, general and administrative | 456,000,000 | 427,000,000 | |||||||||
Impairment of goodwill | 578,000,000 | ||||||||||
Impairment of property, plant and equipment and goodwill (NOTE 4) | 29,000,000 | ||||||||||
Closure and restructuring costs | 2,000,000 | 32,000,000 | |||||||||
Other operating loss (income), net | (14,000,000) | 4,000,000 | |||||||||
Operating expenses | 5,474,000,000 | 4,875,000,000 | |||||||||
Operating income (loss) | (317,000,000) | 223,000,000 | |||||||||
Interest expense, net (NOTE 9) | 66,000,000 | 66,000,000 | |||||||||
(Loss) earnings before income taxes | (383,000,000) | 157,000,000 | |||||||||
Income tax (benefit) expense | (125,000,000) | 29,000,000 | |||||||||
Net earnings (loss) | (258,000,000) | 128,000,000 | |||||||||
Restatement Adjustment [Member] | Impact of ASU 2014-09 [Member] | |||||||||||
Sales | (9,000,000) | (8,000,000) | |||||||||
Operating expenses | |||||||||||
Selling, general and administrative | (9,000,000) | (8,000,000) | |||||||||
Operating expenses | (9,000,000) | (8,000,000) | |||||||||
Restatement Adjustment [Member] | Impact of ASU 2017-07 | |||||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 14,000,000 | 16,000,000 | |||||||||
Selling, general and administrative | (3,000,000) | (1,000,000) | |||||||||
Operating expenses | 11,000,000 | 15,000,000 | |||||||||
Operating income (loss) | (11,000,000) | (15,000,000) | |||||||||
Non-service components of net periodic benefit cost | $ (11,000,000) | $ (15,000,000) |
Acquisition of Businesses - Add
Acquisition of Businesses - Additional Information (Detail) $ in Millions | Oct. 01, 2016USD ($)RetailEmployees | Dec. 31, 2017USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Purchase price | $ 8 | $ 46 | |||
Home Delivery Incontinent Supplies Co. [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition completion date | Oct. 1, 2016 | ||||
Acquisition percentage | 100.00% | ||||
Acquisition of business, number of employees | Employees | 240 | ||||
Purchase price | $ 52 | ||||
Cash acquired in acquisition | $ 3 | ||||
Business acquisition final earn out payment | $ 8 | ||||
Home Delivery Incontinent Supplies Co. [Member] | Olivette, Missouri [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of retail locations acquired | Retail | 2 | ||||
Home Delivery Incontinent Supplies Co. [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition possible earn out payment | $ 10 |
Acquisition of Businesses - Fai
Acquisition of Businesses - Fair Value of Assets Acquired - Home Delivery Incontinent Supplies Co (Detail) - Home Delivery Incontinent Supplies Co. [Member] $ in Millions | Oct. 01, 2016USD ($) |
Business Acquisition [Line Items] | |
Receivables | $ 4 |
Inventory | 4 |
Property, plant and equipment | 1 |
Intangible assets | |
Intangible assets | 34 |
Goodwill | 17 |
Deferred income tax assets | 2 |
Total assets | 62 |
Less: Liabilities | |
Trade and other payables | 10 |
Total liabilities | 10 |
Fair value of net assets acquired at the date of acquisition | 52 |
Customer Relationships [Member] | |
Intangible assets | |
Intangible assets | 21 |
Trade Names [Member] | |
Intangible assets | |
Intangible assets | $ 13 |
Acquisition of Businesses - F_2
Acquisition of Businesses - Fair Value of Assets Acquired - Home Delivery Incontinent Supplies Co (Parenthetical) (Detail) | Oct. 01, 2016 |
Home Delivery Incontinent Supplies Co. [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful life of the finite lived intangible assets acquired | 10 years |
Impairment of Property, Plant_2
Impairment of Property, Plant and Equipment and Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2017 | |
Goodwill And Property Plant And Equipment Impairment [Line Items] | |||||
Goodwill impairment test date | October 1 | ||||
Impairment of goodwill | $ 578,000,000 | $ 0 | |||
Impairment of property, plant and equipment and goodwill | $ 7,000,000 | 578,000,000 | $ 29,000,000 | ||
Personal Care [Member] | |||||
Goodwill And Property Plant And Equipment Impairment [Line Items] | |||||
Goodwill | $ 578,000,000 | ||||
Impairment of goodwill | $ 578,000,000 | $ 578,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of units | 622,468 | 517,281 | 426,079 |
Granted, Number of units | 238,537 | 256,078 | 295,504 |
Forfeited, Number of units | (36,932) | (24,581) | (28,523) |
Cancelled, Number of units | (75,710) | (101,124) | |
Issued, Number of units | 52,563 | ||
Settled, Number of units | (154,178) | (50,600) | (74,655) |
Ending balance, Number of units | 722,458 | 622,468 | 517,281 |
Beginning balance, Weighted average grant date fair value | $ 37.78 | $ 38.98 | $ 46 |
Granted, Weighted average grant date fair value | 41.39 | 39.04 | 32.38 |
Forfeited, Weighted average grant date fair value | 38.09 | 37.59 | 39.81 |
Cancelled, Weighted average grant date fair value | 38.78 | 51.27 | |
Issued, Weighted average grant date fair value | 41.05 | ||
Settled, Weighted average grant date fair value | 44.22 | 54.95 | 35.97 |
Ending balance, Weighted average grant date fair value | $ 37.82 | $ 37.78 | $ 38.98 |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 157,502 | 182,937 | 196,786 |
Beginning balance, Weighted average grant date fair value | $ 38.56 | $ 40.90 | $ 44.21 |
Granted, Weighted average grant date fair value | 44.04 | 39.83 | 34.04 |
Forfeited, Weighted average grant date fair value | 39.91 | 37.97 | 39.69 |
Ending balance, Weighted average grant date fair value | $ 39.16 | $ 38.56 | $ 40.90 |
Beginning balance, Number of units | 460,663 | 418,670 | 346,966 |
Forfeited, Number of units | (27,251) | (19,194) | (17,884) |
Vested/Settled, Number of units | (135,323) | (121,750) | (107,198) |
Ending balance, Number of units | 455,591 | 460,663 | 418,670 |
Vested/Settled, Weighted average grant date fair value | $ 42.54 | $ 48.72 | $ 39.12 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 31,691 | 36,215 | 46,737 |
Granted, Weighted average grant date fair value | $ 44.64 | $ 40.68 | $ 37.43 |
Settled, Weighted average grant date fair value | $ 40.95 | $ 32.27 | $ 39.60 |
Beginning balance, Number of units | 272,234 | 321,074 | 289,460 |
Settled, Number of units | (9,752) | (85,055) | (15,123) |
Ending balance, Number of units | 294,173 | 272,234 | 321,074 |
Beginning balance, Weighted average grant date fair value | $ 29.55 | $ 29.01 | $ 28.20 |
Ending balance, Weighted average grant date fair value | $ 30.79 | $ 29.55 | $ 29.01 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Calculating Fair Value of Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Black-Scholes Based Option Pricing Model [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 3.27% | 3.48% | 3.78% |
Expected volatility | 29.00% | 28.00% | 30.00% |
Risk-free interest rate | 2.62% | 1.86% | 1.17% |
Expected life | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Strike price | $ 43.66 | $ 39.81 | $ 33.78 |
Monte Carlo Simulation [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 3.80% | 4.13% | 4.74% |
Monte Carlo Simulation [Member] | One Year [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 22.00% | 28.00% | 24.00% |
Monte Carlo Simulation [Member] | Three Years [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 26.00% | 28.00% | 30.00% |
Monte Carlo Simulation [Member] | December 31, 2016 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.057% | ||
Monte Carlo Simulation [Member] | December 31, 2017 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.614% | 0.86% | |
Monte Carlo Simulation [Member] | December 31, 2018 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.233% | 1.606% | 0.90% |
Monte Carlo Simulation [Member] | December 31, 2019 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.461% | 1.751% | |
Monte Carlo Simulation [Member] | December 31, 2020 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.607% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate intrinsic value, Options exercised | $ 1,000,000 | $ 0 | $ 0 |
Aggregate intrinsic value, Options outstanding | 0 | ||
Aggregate intrinsic value, Options exercisable | $ 0 | ||
Closing stock price | $ 35.13 | $ 49.52 | $ 39.03 |
Stock-based compensation expense recognized | $ 10,000,000 | $ 20,000,000 | $ 16,000,000 |
Compensation costs not yet recognized | $ 17,000,000 | 20,000,000 | 17,000,000 |
Compensation costs not yet recognized, period of recognition | 26 months | ||
Aggregate value of liability awards settled | $ 8,000,000 | 7,000,000 | $ 4,000,000 |
Total fair value of equity awards settled | 6,000,000 | 3,000,000 | |
Fair value of equity awards at grant date | $ 7,000,000 | $ 4,000,000 | |
Performance Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected to be settled in shares | 352,241 | ||
Expected to be settled in cash | 370,217 | ||
Performance Stock Options [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options expire at various dates from the date of grant | 7 years | ||
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected to be settled in shares | 189,079 | ||
Expected to be settled in cash | 266,512 | ||
Vesting period (in years) | 3 years | ||
Granted, Weighted average grant date fair value | $ 44.04 | $ 39.83 | $ 34.04 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based payment award, vested in period | 0 | 0 | 0 |
Granted, Weighted average grant date fair value | $ 44.64 | $ 40.68 | $ 37.43 |
Non-Qualified Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Weighted average grant date fair value | $ 8.65 | $ 7.05 | $ 5.95 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Outstanding Awards, Options (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate intrinsic value, Exercised | $ 1,000,000 | $ 0 | $ 0 | |
Aggregate intrinsic value Outstanding, Ending | 0 | |||
Aggregate intrinsic value, Exercisable | $ 0 | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options Outstanding, Beginning | 563,065 | 522,227 | 451,302 | |
Number of options, Granted | 104,086 | 106,268 | 114,723 | |
Number of options, Exercised | (147,397) | (65,430) | (37,296) | |
Number of options, Forfeited/expired | (6,102) | (6,502) | ||
Number of options Outstanding Ending | 513,652 | 563,065 | 522,227 | 451,302 |
Number of options, Exercisable | 303,055 | 359,960 | 286,011 | |
Weighted average exercise price Outstanding, Beginning Balance | $ 44.46 | $ 44.39 | $ 46.48 | |
Weighted average exercise price, Granted | 43.66 | 39.81 | 33.78 | |
Weighted average exercise price, Exercised | 39.42 | 36.33 | 41.11 | |
Weighted average exercise Price, Forfeited/expired | 50.05 | 20.89 | ||
Weighted average exercise price Outstanding, Ending Balance | 45.68 | 44.46 | 44.39 | $ 46.48 |
Weighted average exercise price, Exercisable | $ 49.15 | $ 48.02 | $ 46.50 | |
Weighted average remaining life (in years), Outstanding | 3 years 7 months 6 days | 4 years 1 month 6 days | 4 years 6 months | 4 years 9 months 18 days |
Weighted average remaining life (in years), Granted | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days | |
Weighted average remaining life (in years), Options exercisable | 2 years 3 months 18 days | 3 years 2 months 12 days | 3 years 10 months 24 days | |
Aggregate intrinsic value Outstanding, Beginning | $ 3,600,000 | $ 700,000 | $ 100,000 | |
Aggregate intrinsic value Outstanding, Ending | $ 100,000 | 3,600,000 | 700,000 | $ 100,000 |
Aggregate intrinsic value, Exercisable | $ 1,300,000 | $ 100,000 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share - Reconciliation Between Basic and Diluted Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) earnings | $ 87 | $ 99 | $ 43 | $ 54 | $ (386) | $ 70 | $ 38 | $ 20 | $ 283 | $ (258) | $ 128 |
Weighted average number of common shares outstanding (millions) | 62.9 | 62.7 | 62.6 | ||||||||
Effect of dilutive securities (millions) | 0.2 | 0.1 | |||||||||
Weighted average number of diluted common shares outstanding (millions) | 63.1 | 62.7 | 62.7 | ||||||||
Basic net earnings (loss) per common share (in dollars) | $ 1.38 | $ 1.57 | $ 0.68 | $ 0.86 | $ (6.16) | $ 1.12 | $ 0.61 | $ 0.32 | $ 4.50 | $ (4.11) | $ 2.04 |
Diluted net earnings (loss) per common share (in dollars) | $ 1.38 | $ 1.57 | $ 0.68 | $ 0.86 | $ (6.16) | $ 1.11 | $ 0.61 | $ 0.32 | $ 4.48 | $ (4.11) | $ 2.04 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share - Securities that Could Potentially Dilute Basic Earnings (Loss) Per Common Share in Future (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 227,221 | 312,893 | 410,978 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension expense | $ 50 | $ 39 | $ 40 | |
Projected benefit obligation | 731 | 811 | ||
Fair value of defined benefit plan assets with an projected benefit obligation in excess of fair value of plan assets | $ 643 | $ 680 | ||
Expected return on plan assets, percentage | 5.20% | 5.30% | ||
Weighted-average annual rate increase in per capita cost of covered health care benefits assumed | 4.40% | |||
Weighted-average annual rate assumed to decrease in per capita cost of covered health care benefits assumed | 3.50% | |||
Weighted-average annual rate assumed to decrease in per capita cost of covered health care benefits, assumed year of impact | 2,033 | |||
Subsequent Event [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Expected return on plan assets, percentage | 5.20% | |||
United States Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Discount rate | 4.20% | |||
Minimum number of years from issuance of private placement bonds | 2 years | |||
Pension Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Expected minimum contribution in 2019 | $ 12 | |||
Plan contributions | 57 | $ 47 | $ 31 | |
Loss (gain) to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2019 | $ 15 | |||
Discount rate | 3.80% | 3.50% | 3.80% | |
Expected return on plan assets, percentage | 5.20% | 5.30% | 5.30% | |
Other Post-Retirement Benefit Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Expected minimum contribution in 2019 | $ 5 | |||
Plan contributions | 4 | $ 3 | $ 5 | |
Loss (gain) to be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2019 | $ (2) | |||
Discount rate | 3.80% | 3.50% | 3.90% | |
Supplemental Nonqualified Unfunded Retirement Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Accrued benefit obligation | $ 49 | $ 54 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | $ 1,764 | $ 1,584 | |
Service cost for the year | 34 | 30 | $ 32 |
Interest expense | 53 | 52 | 50 |
Plan participants' contributions | 6 | 6 | |
Actuarial (gain) loss | (80) | 95 | |
Plan amendments | 1 | ||
Benefits paid | (101) | (85) | |
Direct benefit payments | (3) | (3) | |
Settlement | (2) | ||
Effect of foreign currency exchange rate change | (104) | 86 | |
Projected benefit obligation at end of year | 1,569 | 1,764 | 1,584 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | 76 | 90 | |
Service cost for the year | 1 | 2 | 2 |
Interest expense | 2 | 4 | 4 |
Actuarial (gain) loss | (8) | (17) | |
Plan amendments | (5) | ||
Direct benefit payments | (4) | (3) | |
Effect of foreign currency exchange rate change | (5) | 5 | |
Projected benefit obligation at end of year | $ 62 | $ 76 | $ 90 |
Pension Plans and Other Post-_5
Pension Plans and Other Post-Retirement Benefit Plans - Change in Fair Value of Assets (Detail) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,765 | $ 1,546 | |
Actual return on plan assets | (27) | 166 | |
Employer contributions | 57 | 47 | $ 31 |
Plan participants' contributions | 6 | 6 | |
Benefits paid | (104) | (88) | |
Settlement | (2) | ||
Effect of foreign currency exchange rate change | (109) | 90 | |
Fair value of assets at end of year | $ 1,588 | $ 1,765 | $ 1,546 |
Pension Plans and Other Post-_6
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 0.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 9.00% | |
Fixed income and Equity, Percentage of plan assets | 2.00% | 2.00% |
Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 46.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 56.00% | |
Fixed income and Equity, Percentage of plan assets | 52.00% | 52.00% |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets | 5.00% | |
Fixed income and Equity, Percentage of plan assets | 5.00% | 5.00% |
Canadian Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 3.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 10.00% | |
Fixed income and Equity, Percentage of plan assets | 6.00% | 6.00% |
U.S. Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 8.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 18.00% | |
Fixed income and Equity, Percentage of plan assets | 13.00% | 13.00% |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation on equity, percentage of plan assets, range minimum | 17.00% | |
Target allocation on equity, percentage of plan assets, range maximum | 27.00% | |
Fixed income and Equity, Percentage of plan assets | 22.00% | 22.00% |
Pension Plans and Other Post-_7
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Canadian Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 77.00% | |
United States Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 23.00% |
Pension Plans and Other Post-_8
Pension Plans and Other Post-Retirement Benefit Plans - Funded Status of Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | $ (1,569) | $ (1,764) | $ (1,584) |
Fair value of assets at end of year | 1,588 | 1,765 | 1,546 |
Funded status | 19 | 1 | |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | (62) | (76) | $ (90) |
Funded status | $ (62) | $ (76) |
Pension Plans and Other Post-_9
Pension Plans and Other Post-Retirement Benefit Plans - Amount Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (Note 14) | $ 107 | $ 131 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities and deferred credits (Note 19) | (88) | (130) |
Other assets (Note 14) | 107 | 131 |
Net amount recognized in the Consolidated Balance Sheets | 19 | 1 |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Trade and other payables (Note 16) | (5) | (5) |
Other liabilities and deferred credits (Note 19) | (57) | (71) |
Net amount recognized in the Consolidated Balance Sheets | $ (62) | $ (76) |
Pension Plans and Other Post_10
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | $ (1) | ||
Amortization of prior year service cost | $ 5 | 5 | $ 5 |
Net (loss) gain | (31) | (10) | (53) |
Amortization of net actuarial loss (gain) | 8 | 9 | 6 |
Net amount recognized in other comprehensive (loss) income (pre-tax) | (18) | 3 | (42) |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | 5 | ||
Net (loss) gain | 8 | 17 | (2) |
Amortization of net actuarial loss (gain) | (1) | ||
Net amount recognized in other comprehensive (loss) income (pre-tax) | $ 7 | $ 22 | $ (2) |
Pension Plans and Other Post_11
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | $ 34 | $ 30 | $ 32 |
Interest expense | 53 | 52 | 50 |
Expected return on plan assets | (85) | (81) | (80) |
Amortization of net actuarial loss (gain) | 8 | 9 | 5 |
Settlement loss | 1 | ||
Amortization of prior year service cost | 5 | 5 | 5 |
Net periodic benefit cost | 15 | 15 | 13 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for the year | 1 | 2 | 2 |
Interest expense | 2 | 4 | 4 |
Amortization of net actuarial loss (gain) | (1) | ||
Net periodic benefit cost | $ 2 | $ 6 | $ 6 |
Pension Plans and Other Post_12
Pension Plans and Other Post-Retirement Benefit Plans - Key Assumptions to Measure Projected Benefit Obligation and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, Expected long-term rate of return on plan assets | 5.20% | 5.30% | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Discount rate | 3.80% | 3.50% | 3.80% |
Accrued benefit obligation, Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Net periodic benefit cost, Discount rate | 3.50% | 3.90% | 4.10% |
Net periodic benefit cost, Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Net periodic benefit cost, Expected long-term rate of return on plan assets | 5.20% | 5.30% | 5.30% |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Discount rate | 3.80% | 3.50% | 3.90% |
Accrued benefit obligation, Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Net periodic benefit cost, Discount rate | 3.50% | 3.80% | 4.10% |
Net periodic benefit cost, Rate of compensation increase | 2.70% | 2.80% | 2.80% |
Pension Plans and Other Post_13
Pension Plans and Other Post-Retirement Benefit Plans - Effect of One Percent Change in Assumed Health Care Cost (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Impact on projected benefit obligation, Increase of 1% | $ 3 |
Impact on projected benefit obligation, Decrease of 1% | $ (3) |
Pension Plans and Other Post_14
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 84 | $ 94 | $ 84 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,588 | 1,765 | $ 1,546 |
Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,124 | 1,272 | |
Pension Plans [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 380 | 398 | |
Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 84 | 95 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 68 | 79 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 68 | 79 | |
Pension Plans [Member] | Asset Backed Notes [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | ||
Pension Plans [Member] | Asset Backed Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | ||
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 493 | 566 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 492 | 565 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | 1 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 123 | 139 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 100 | 117 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 23 | 22 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 37 | 43 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 37 | 43 | |
Pension Plans [Member] | International Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 9 | 2 | |
Pension Plans [Member] | International Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 9 | 2 | |
Pension Plans [Member] | Bond Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 156 | 152 | |
Pension Plans [Member] | Bond Fund [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 156 | 152 | |
Pension Plans [Member] | Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 94 | 111 | |
Pension Plans [Member] | Canadian Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 94 | 111 | |
Pension Plans [Member] | U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 91 | 103 | |
Pension Plans [Member] | U.S. Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 91 | 103 | |
Pension Plans [Member] | International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 233 | 252 | |
Pension Plans [Member] | International Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 233 | 252 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 200 | 224 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 200 | 224 | |
Pension Plans [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 84 | 94 | |
Pension Plans [Member] | Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 84 | 94 | |
Pension Plans [Member] | Derivative Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | (1) | ||
Pension Plans [Member] | Derivative Contracts [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ (1) |
Pension Plans and Other Post_15
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Parenthetical) (Detail) - Insurance Contracts [Member] - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Annuity Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of the plan by assets category | $ 75 | $ 85 |
Minimum Guarantee Rate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of the plan by assets category | $ 9 | $ 9 |
Pension Plans and Other Post_16
Pension Plans and Other Post-Retirement Benefit Plans - Changes in Level 3 Fair Value Measurements of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlements | $ (5) | $ (5) |
Return on plan assets | 2 | 9 |
Effect of foreign currency exchange rate change | (7) | 6 |
Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 94 | 84 |
Fair value of assets at end of year | 84 | 94 |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlements | (1) | (2) |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 1 | 3 |
Fair value of assets at end of year | 1 | |
Insurance contracts and Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlements | (6) | (7) |
Return on plan assets | 2 | 9 |
Effect of foreign currency exchange rate change | (7) | 6 |
Insurance contracts and Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 95 | 87 |
Fair value of assets at end of year | $ 84 | $ 95 |
Pension Plans and Other Post_17
Pension Plans and Other Post-Retirement Benefit Plans - Estimated Future Benefit Payments from Plans (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 103 |
2,020 | 102 |
2,021 | 103 |
2,022 | 103 |
2,023 | 104 |
2024 – 2028 | 517 |
Other Post-Retirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 5 |
2,020 | 5 |
2,021 | 4 |
2,022 | 4 |
2,023 | 4 |
2024 – 2028 | $ 21 |
Other Operating (Income) Loss_3
Other Operating (Income) Loss, Net - Components of Other Operating (Income) Loss, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |||
Net gains on disposals of property, plant and equipment | $ (4) | $ (13) | |
Reversal of contingent consideration | (2) | ||
Bad debt expense | 2 | 1 | |
Environmental provision | 5 | 3 | $ 2 |
Foreign exchange (gain) loss | (2) | 1 | 6 |
Other | $ (1) | (4) | (4) |
Other operating (income) loss, net | $ (14) | $ 4 |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking And Thrift Interest [Abstract] | |||
Interest on long-term debt | $ 56 | $ 59 | $ 59 |
Interest on receivables securitization | 1 | 2 | 2 |
Interest on withdrawal liabilities for multiemployer plans | 2 | 3 | 3 |
Amortization of debt issuance costs and other | 3 | 2 | 2 |
Interest expense, net | $ 62 | $ 66 | $ 66 |
Interest Expense, Net - Compo_2
Interest Expense, Net - Components of Interest Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking And Thrift Interest [Abstract] | |||
Capitalized interest expense | $ 1 | $ 1 | $ 5 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings (Loss) Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. earnings (loss) | $ 216 | $ (209) | $ 69 | ||||||||
Foreign earnings (loss) | 126 | (174) | 88 | ||||||||
Earnings (loss) before income taxes | $ 123 | $ 103 | $ 51 | $ 65 | $ (528) | $ 73 | $ 47 | $ 25 | $ 342 | $ (383) | $ 157 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State, Current | $ 32 | $ 73 | $ 10 |
U.S. Federal and State, Deferred | (6) | (208) | 1 |
Foreign, Current | 12 | 9 | 10 |
Foreign, Deferred | 19 | 1 | 8 |
Income tax expense (benefit) | $ 57 | $ (125) | $ 29 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||||||
Statutory income tax rate | 21.00% | 35.00% | 35.00% | |||||
Tax credit recorded for research and experimentation | $ 19,000,000 | $ 24,000,000 | $ 18,000,000 | |||||
Net operating loss cancellation | 9,000,000 | |||||||
Reversal of valuation allowance on net operating losses | 9,000,000 | |||||||
Valuation allowance on deferred tax assets | (8,000,000) | 3,000,000 | (1,000,000) | |||||
Net tax benefit (expense) related to U.S. tax reform | $ (10,000,000) | $ 7,000,000 | $ 140,000,000 | 13,000,000 | ||||
Provisional tax benefit recognized | 186,000,000 | 186,000,000 | ||||||
Deemed mandatory repatriation tax | 46,000,000 | (7,000,000) | 46,000,000 | |||||
Revaluation of net deferred tax liabilities | 6,000,000 | |||||||
Additional tax benefits related to U.S. tax reform | 3,000,000 | |||||||
Deferred tax liability | 444,000,000 | 454,000,000 | 444,000,000 | 454,000,000 | ||||
Deferred taxes on foreign earnings | 10,000,000 | |||||||
Goodwill impairment | 578,000,000 | 0 | ||||||
Tax benefit impacted the effective tax rate of tax benefit | 200,000,000 | |||||||
Tax benefit from other changes in law | $ 2,000,000 | |||||||
Number of years elect to pay tax | 8 years | |||||||
Valuation allowance | 16,000,000 | 25,000,000 | 16,000,000 | $ 25,000,000 | ||||
Foreign loss carryforwards for valuation allowance | 10,000,000 | 10,000,000 | ||||||
Impacted tax expenses | (8,000,000) | 3,000,000 | (1,000,000) | |||||
Gross unrecognized tax benefits | 32,000,000 | $ 37,000,000 | 32,000,000 | 37,000,000 | 43,000,000 | $ 41,000,000 | ||
Accrued interest on uncertain tax positions | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||
Scenario Forecast [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Gross unrecognized tax benefits | $ 6,000,000 | |||||||
Federal [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforward expiry year | 2,032 | |||||||
Begin to Expire in 2027 [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforwards | 3,000,000 | $ 3,000,000 | ||||||
Foreign and State [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Deferred tax liability | 10,000,000 | 10,000,000 | ||||||
Deduction Limitations [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforwards | 176,000,000 | 176,000,000 | ||||||
Operating Losses [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Additional valuation allowance | 1,000,000 | |||||||
Expires in 2032 [Member] | Maximum [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Operating loss carryforwards | 1,000,000 | 1,000,000 | ||||||
State Credits [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Valuation allowance | $ 6,000,000 | $ 6,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) to U.S. Federal Statutory Income Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax | $ 72 | $ (134) | $ 55 | |
State and local income taxes, net of federal income tax benefit | 8 | 2 | 3 | |
Foreign income tax rate differential | 1 | (16) | (14) | |
Tax credits and special deductions | (19) | (24) | (18) | |
Goodwill impairment | 200 | |||
Tax rate changes | (9) | (188) | ||
Deemed mandatory repatriation tax | $ 46 | (7) | 46 | |
Uncertain tax positions | (4) | (6) | 2 | |
U.S. manufacturing deduction | (4) | (2) | ||
Deferred taxes on foreign earnings | 10 | |||
Net operating loss cancellation | 9 | |||
Valuation allowance on deferred tax assets | (8) | 3 | (1) | |
Other | 4 | (4) | 4 | |
Income tax expense (benefit) | $ 57 | $ (125) | $ 29 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Accounting provisions | $ 38 | $ 36 |
Net operating loss carryforwards and other deductions | 36 | 43 |
Pension and other employee future benefit plans | 22 | 31 |
Inventory | 10 | 10 |
Tax credits | 21 | 36 |
Gross deferred tax assets | 127 | 156 |
Valuation allowance | (16) | (25) |
Net deferred tax assets | 111 | 131 |
Property, plant and equipment | (422) | (436) |
Intangible assets | (122) | (131) |
Other | (10) | (16) |
Total deferred tax liabilities | (554) | (583) |
Net deferred tax liabilities | (443) | (452) |
Other assets (Note 14) | 1 | 2 |
Deferred income taxes and other | (444) | (454) |
Total | $ (443) | $ (452) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 37 | $ 43 | $ 41 |
Additions based on tax positions related to current year | 3 | 3 | 3 |
Additions for tax positions of prior years | 4 | 4 | 3 |
Reductions for tax positions of prior years | (2) | ||
Reductions related to settlements with taxing authorities | (1) | ||
Expirations of statutes of limitations | (12) | (13) | (3) |
Interest | 1 | 1 | 1 |
Foreign exchange impact | (1) | ||
Balance at end of year | $ 32 | $ 37 | $ 43 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 410 | $ 399 |
Raw materials | 126 | 135 |
Operating and maintenance supplies | 226 | 223 |
Total inventories | $ 762 | $ 757 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Property Plant And Equipment [Line Items] | |||
Machinery and equipment | $ 7,655 | $ 7,674 | |
Buildings and improvements | 1,043 | 1,059 | |
Timberlands | [1] | 193 | 207 |
Assets under construction | 131 | 104 | |
Property, plant and equipment, gross | 9,022 | 9,044 | |
Less: Accumulated depreciation | (6,417) | (6,279) | |
Net property, plant and equipment | $ 2,605 | $ 2,765 | |
Minimum [Member] | Machinery and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 3 years | ||
Minimum [Member] | Buildings and Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 10 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 20 years | ||
Maximum [Member] | Buildings and Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 40 years | ||
[1] | Amortization is calculated using the unit of production method. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 289 | $ 302 | $ 329 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 424 | $ 433 |
Accumulated amortization | (113) | (96) |
Intangible assets, net | 311 | 337 |
Total, Gross carrying amount | 710 | 729 |
Intangible assets, net of amortization | 597 | 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 | 238 | 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 | $ 38 | 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 | 384 | 392 |
Accumulated amortization | (94) | (79) |
Intangible assets, net | $ 290 | 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 | (13) | (11) |
Intangible assets, net | $ 15 | $ 18 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 19,000,000 | $ 19,000,000 | $ 19,000,000 |
Impairment charges of indefinite-lived intangible assets | $ 0 | $ 0 | $ 0 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2019 | $ 21 |
Amortization expense related to intangible assets, 2020 | 21 |
Amortization expense related to intangible assets, 2021 | 21 |
Amortization expense related to intangible assets, 2022 | 21 |
Amortization expense related to intangible assets, 2023 | $ 20 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset - defined benefit pension plans (Note 7) | $ 107 | $ 131 |
Investment tax credits receivable | 5 | 7 |
Unamortized debt issuance costs | 4 | 4 |
Deferred income tax assets (Note 10) | 1 | 2 |
Derivative financial instruments (Note 22) | 5 | |
Investments and advances | 6 | |
Other | 11 | 8 |
Other assets | $ 134 | $ 157 |
Closure and Restructuring Cos_3
Closure and Restructuring Costs and Liability - Additional Information (Detail) $ in Millions | Sep. 23, 2016Positiont | Mar. 31, 2016t | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Restructuring Cost And Reserve [Line Items] | |||||||||
Inventory write-down | $ 4 | ||||||||
Severance and termination costs | 8 | $ 2 | $ 32 | ||||||
Other costs | 1 | 26 | |||||||
Provision for closure and restructuring costs | $ 6 | 6 | |||||||
Severance and Termination Costs [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Provision for closure and restructuring costs | 5 | 5 | |||||||
Previous and Ongoing Closures and Restructuring [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | 0 | 2 | 3 | ||||||
Pension settlement costs | 0 | 1 | 1 | ||||||
Plymouth, North Carolina Mill [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | $ 5 | ||||||||
Expected number of positions eliminated | Position | 100 | ||||||||
Production capacity of pulp machine | t | 380,000 | ||||||||
Ashdown, Arkansas Mill [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Accelerated depreciation | 29 | ||||||||
Severance and termination costs | 1 | ||||||||
Other costs | 26 | ||||||||
Permanent reduction of annual uncoated freesheet production capacity | t | 364,000 | ||||||||
Personal Care [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Accelerated depreciation | 7 | ||||||||
Inventory write-down | 4 | ||||||||
Severance and termination costs | 8 | $ 2 | 8 | $ 2 | 1 | ||||
Other costs | 1 | ||||||||
Personal Care [Member] | Severance and Termination Costs [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Provision for closure and restructuring costs | 2 | 2 | |||||||
Personal Care [Member] | Other Costs [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Provision for closure and restructuring costs | 1 | 1 | |||||||
Personal Care [Member] | Waco, Texas Facility [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Accelerated depreciation | 7 | ||||||||
Inventory write-down | 4 | ||||||||
Severance and termination costs | 3 | ||||||||
Other costs | 1 | ||||||||
Pulp and Paper [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Severance and termination costs | 31 | ||||||||
Other costs | $ 26 | ||||||||
Pulp and Paper [Member] | Severance and Termination Costs [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Provision for closure and restructuring costs | 3 | 3 | |||||||
Multiemployer Pension Plans [Member] | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Multiemployer plans gain due to revision in estimated withdrawal liability | $ 4 | ||||||||
Provision for the withdrawal liabilities | $ 47 | $ 47 |
Closure and Restructuring Cos_4
Closure and Restructuring Costs and Liability - Components of Closure and Restructuring Costs by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||||
Severance and termination costs | $ 3 | $ 2 | $ 9 | ||
Pension settlement and withdrawal liability | (3) | ||||
Inventory write-down | 4 | ||||
Other | 1 | 26 | |||
Closure and restructuring costs | 8 | 2 | 32 | ||
Pulp and Paper [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Severance and termination costs | 8 | ||||
Pension settlement and withdrawal liability | (3) | ||||
Other | 26 | ||||
Closure and restructuring costs | 31 | ||||
Personal Care [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Severance and termination costs | 3 | 2 | 1 | ||
Inventory write-down | 4 | ||||
Other | 1 | ||||
Closure and restructuring costs | $ 8 | $ 2 | $ 8 | $ 2 | $ 1 |
Closure and Restructuring Cos_5
Closure and Restructuring Costs and Liability - Activity in Closure and Restructuring Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Additions | $ 8 | $ 2 | $ 32 |
Balance at end of year | 6 | ||
Closure And Restructuring Liability [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Balance at beginning of year | 7 | 7 | |
Additions | 4 | 2 | |
Payments | (5) | (2) | |
Balance at end of year | $ 6 | $ 7 | $ 7 |
Trade and Other Payables - Comp
Trade and Other Payables - Components of Trade and Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 404 | $ 382 |
Payroll-related accruals | 173 | 164 |
Accrued interest | 16 | 16 |
Payables on capital projects | 21 | 11 |
Rebate accruals | 64 | 72 |
Liability - pension and other post-retirement benefit plans | 5 | 5 |
Liability - multiemployer plan withdrawal | 2 | 2 |
Provision for environment and other asset retirement obligations | 10 | 13 |
Closure and restructuring costs liability | 6 | 7 |
Derivative financial instruments | 21 | 7 |
Dividends payable | 27 | 26 |
Stock-based compensation - liability awards | 6 | 6 |
Other | 2 | 5 |
Trade and other payables | $ 757 | $ 716 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (336) | ||
Other comprehensive income (loss) before reclassifications | (138) | $ 163 | |
Amounts reclassified from Accumulated other comprehensive loss | 7 | ||
Other comprehensive (loss) income | (131) | 163 | $ 2 |
Ending balance | (467) | (336) | |
Balance | 2,483 | 2,676 | 2,652 |
Balance | 2,538 | 2,483 | 2,676 |
Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 1 | (5) | |
Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (12) | 11 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (91) | 146 | |
Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (19) | ||
Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (17) | 11 | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 8 | 11 | |
Other comprehensive income (loss) before reclassifications | (30) | 6 | |
Amounts reclassified from Accumulated other comprehensive loss | (2) | (9) | |
Other comprehensive (loss) income | (32) | (3) | |
Ending balance | (24) | 8 | 11 |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 1 | (5) | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (12) | 11 | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (19) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (218) | (221) | |
Other comprehensive income (loss) before reclassifications | (23) | (6) | |
Amounts reclassified from Accumulated other comprehensive loss | 10 | 9 | |
Other comprehensive (loss) income | (13) | 3 | |
Ending balance | (231) | (218) | (221) |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net (Gain) Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (23) | (6) | |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 6 | (11) | |
Other comprehensive income (loss) before reclassifications | 6 | 17 | |
Amounts reclassified from Accumulated other comprehensive loss | (1) | ||
Other comprehensive (loss) income | 5 | 17 | |
Ending balance | 11 | 6 | (11) |
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 income (loss) before reclassifications | 6 | 17 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (132) | (278) | |
Other comprehensive income (loss) before reclassifications | (91) | 146 | |
Other comprehensive (loss) income | (91) | 146 | |
Ending balance | (223) | (132) | (278) |
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (91) | 146 | |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (336) | (499) | (501) |
Balance | $ (467) | $ (336) | $ (499) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings (loss) before income taxes and equity loss | $ 123 | $ 103 | $ 51 | $ 65 | $ (528) | $ 73 | $ 47 | $ 25 | $ 342 | $ (383) | $ 157 |
Tax benefit (expense) | (57) | 125 | (29) | ||||||||
Net earnings (loss) | $ 87 | $ 99 | $ 43 | $ 54 | $ (386) | $ 70 | $ 38 | $ 20 | 283 | (258) | 128 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Earnings (loss) before income taxes and equity loss | (3) | (14) | 24 | ||||||||
Tax benefit (expense) | 1 | 5 | (10) | ||||||||
Net earnings (loss) | (2) | (9) | 14 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of Sales | (2) | 12 | |||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options and Forwards [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of Sales | (1) | (14) | 12 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of prior year service cost | 5 | 5 | 5 | ||||||||
Amortization of net actuarial loss (gain) | 8 | 9 | 6 | ||||||||
Earnings (loss) before income taxes and equity loss | 13 | 14 | 11 | ||||||||
Tax benefit (expense) | (3) | (5) | (4) | ||||||||
Net earnings (loss) | 10 | $ 9 | $ 7 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial loss (gain) | (1) | ||||||||||
Earnings (loss) before income taxes and equity loss | (1) | ||||||||||
Net earnings (loss) | $ (1) |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Revolving Credit Facility | $ 0 | $ 0 | |
Securitization | 50,000,000 | 25,000,000 | |
Capital lease obligations and other | 11,000,000 | 14,000,000 | |
Long-term debt | 859,000,000 | 1,137,000,000 | |
Less: Unamortized debt issuance costs | 5,000,000 | 7,000,000 | |
Less: Due within one year | 1,000,000 | 1,000,000 | |
Long-term debt, excluding current maturities | $ 853,000,000 | 1,129,000,000 | |
4.4% Notes [Member] | 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,022 | ||
Par Amount | $ 300,000,000 | ||
Unsecured notes | $ 300,000,000 | 300,000,000 | |
6.25% Notes [Member] | 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,042 | ||
Par Amount | $ 250,000,000 | ||
Unsecured notes | $ 249,000,000 | 249,000,000 | |
6.75% Notes [Member] | 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,044 | ||
Par Amount | $ 250,000,000 | ||
Unsecured notes | $ 249,000,000 | 249,000,000 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,023 | ||
Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,021 | ||
Par Amount | $ 50,000,000 | ||
Revolving Credit Facility | $ 150,000,000 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,025 | ||
Par Amount | $ 300,000,000 | $ 300,000,000 | |
Unsecured notes | $ 300,000,000 | ||
Capital Lease Obligations [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,019 | ||
Capital Lease Obligations [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2,032 |
Long-Term Debt - Components o_2
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
4.4% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 4.40% | 4.40% |
6.25% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 6.25% | 6.25% |
6.75% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 6.75% | 6.75% |
Long-Term Debt - Principal Long
Long-Term Debt - Principal Long-Term Debt Repayments, Including Capital Lease Obligations (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2021, Long-term debt | $ 50 |
2022, Long-term debt | 300 |
Thereafter, Long-term debt | 500 |
Long-term debt | 850 |
Total payments, Long-term debt | 850 |
2019, Capital leases and other | 2 |
2020, Capital leases and other | 2 |
2021, Capital leases and other | 2 |
2022, Capital leases and other | 1 |
2023, Capital leases and other | 1 |
Thereafter, Capital leases and other | 7 |
Capital leases and other obligations repayment | 15 |
Less: Amounts representing interest, Capital leases and other | 4 |
Total payments, Capital leases and other | $ 11 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 01, 2017 | Aug. 18, 2016 | Aug. 01, 2016 | |
Debt Instrument [Line Items] | |||||||
Revolving credit facility/Receivables securitization facility | $ 0 | $ 0 | |||||
Borrowings | 50,000,000 | 25,000,000 | |||||
Letters of credit outstanding | 52,000,000 | 50,000,000 | |||||
Interest on receivables securitization | 1,000,000 | $ 2,000,000 | $ 2,000,000 | ||||
Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | $ 300,000,000 | $ 300,000,000 | |||||
Term loan agreement period | 10 years | ||||||
Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Aug. 22, 2023 | ||||||
Maximum aggregate amount | $ 700,000,000 | ||||||
Credit facility extendable term | 1 year | ||||||
Debt Instrument Covenant Description | The Credit Agreement contains customary covenants and events of default for transactions of this type, including two financial covenants: (i) an interest coverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not greater than 3.75 to 1 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2018, the Company was in compliance with these financial covenants, and there were no borrowings (December 31, 2017 – nil). | ||||||
Credit Agreement [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Lender commitments | $ 400,000,000 | ||||||
Leverage level | 375.00% | ||||||
Leverage ratio upon certain material acquisition | 400.00% | ||||||
Credit Agreement [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest coverage level | 300.00% | ||||||
Amended Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity date of credit agreement before amendments | Aug. 18, 2021 | ||||||
Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | $ 50,000,000 | ||||||
Revolving credit facility/Receivables securitization facility | $ 150,000,000 | ||||||
10.75% Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Jun. 1, 2017 | ||||||
Debt instrument principal amount | $ 63,000,000 | ||||||
Debt instrument interest rate stated percentage | 10.75% | ||||||
9.5% Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Aug. 1, 2016 | ||||||
Debt instrument principal amount | $ 39,000,000 | ||||||
Debt instrument interest rate stated percentage | 9.50% |
Other Liabilities and Deferre_3
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Liability - other post-retirement benefit plans (Note 7) | $ 57 | $ 71 |
Pension liability - defined benefit pension plans (Note 7) | 88 | 130 |
Pension liability - multiemployer plan withdrawal | 45 | 47 |
Long-term income taxes payable | 9 | 42 |
Provision for environmental and asset retirement obligations (Note 21) | 27 | 31 |
Stock-based compensation - liability awards (Note 22) | 14 | 20 |
Derivative financial instruments (Note 22) | 16 | 5 |
Other | 19 | 22 |
Other liabilities and deferred credits | $ 275 | $ 368 |
Other Liabilities and Deferre_4
Other Liabilities and Deferred Credits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligations [Line Items] | |||
Present value of asset retirement obligations | $ 12 | $ 15 | $ 14 |
Undiscounted cash outflows | $ 59 | $ 58 | |
Asset retirement obligation, expected settlement date | Dec. 31, 2058 | ||
Minimum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 4.70% | ||
Maximum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 12.00% |
Other Liabilities and Deferre_5
Other Liabilities and Deferred Credits - Domtar's Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | ||
Asset retirement obligations, beginning of year | $ 15 | $ 14 |
Asset retirement obligation payments | (3) | |
Accretion expense | 1 | 1 |
Effect of foreign currency exchange rate change | (1) | |
Asset retirement obligations, end of year | $ 12 | $ 15 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Feb. 19, 2019 | Jan. 15, 2019 | Oct. 15, 2018 | Jul. 16, 2018 | Apr. 16, 2018 | Jan. 15, 2018 | Oct. 16, 2017 | Jul. 17, 2017 | Apr. 17, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 |
Shareholders' Equity [Line Items] | |||||||||||||||||||||
Dividend per share | $ 0.435 | $ 0.435 | $ 0.435 | $ 0.435 | $ 0.415 | $ 0.415 | $ 0.415 | $ 0.415 | |||||||||||||
Dividends paid | $ 27,000,000 | $ 28,000,000 | $ 27,000,000 | $ 26,000,000 | $ 26,000,000 | $ 26,000,000 | $ 26,000,000 | ||||||||||||||
Record date | Jan. 2, 2019 | Oct. 2, 2018 | Jul. 3, 2018 | Apr. 2, 2018 | Jan. 2, 2018 | Oct. 2, 2017 | Jul. 3, 2017 | Apr. 3, 2017 | |||||||||||||
Payment date | Jan. 15, 2019 | Oct. 15, 2018 | Jul. 16, 2018 | Apr. 16, 2018 | Jan. 15, 2018 | Oct. 16, 2017 | Jul. 17, 2017 | Apr. 17, 2017 | |||||||||||||
Stock repurchased, shares | 0 | 0 | 24,853,827 | ||||||||||||||||||
Stock repurchased, average price | $ 39.33 | ||||||||||||||||||||
Stock repurchased, value | $ 10,000,000 | $ 977,000,000 | |||||||||||||||||||
Treasury stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Preferred shares authorized to issue | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Maximum [Member] | |||||||||||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||||||||||
Stock repurchase program authorized amount | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | ||||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||||||||||
Dividend per share | $ 0.435 | ||||||||||||||||||||
Dividends paid | $ 27,000,000 | ||||||||||||||||||||
Record date | Apr. 2, 2019 | ||||||||||||||||||||
Payment date | Apr. 15, 2019 | ||||||||||||||||||||
Declared date | Feb. 19, 2019 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Balance at beginning of year, Number of shares | 62,695,685 | 62,588,837 |
Treasury stock, Number of shares | 218,884 | 106,848 |
Balance at end of year, Number of shares | 62,914,569 | 62,695,685 |
Balance at beginning of year | $ 1 | $ 1 |
Treasury stock | 0 | 0 |
Balance at end of year | $ 1 | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2014Affiliate | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018EUR (€) | May 26, 2016USD ($) | May 26, 2016EUR (€) | |
Commitments And Contingencies [Line Items] | ||||||||||||
Capital expenditures for environmental matters | $ 8,000,000 | $ 2,000,000 | $ 4,000,000 | |||||||||
Number of affiliated companies acquired | Affiliate | 2 | |||||||||||
Retained Purchase Price | 3,300,000 | € 3 | ||||||||||
Bank guarantees | 9,900,000 | € 9 | ||||||||||
Recoveries from retained purchase price and bank guarantees | $ 13,200,000 | € 12 | ||||||||||
Remaining recoveries from retained purchase price and bank guarantees | 1,700,000 | € 1.5 | ||||||||||
Operating lease expense | 29,000,000 | 31,000,000 | 28,000,000 | |||||||||
Pension Plans [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Provision for liability | 0 | |||||||||||
Indas and Affiliates [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Penalties for violations of competition laws | $ 14,900,000 | € 13.5 | ||||||||||
Environmental Matters [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Operating expenses for environmental matters | 68,000,000 | $ 67,000,000 | $ 65,000,000 | |||||||||
Spanish Competition Investigation [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Provision for liability | $ 14,700,000 | € 13.3 | $ 200,000 | € 0.2 | ||||||||
Indemnification Guarantee [Member] | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Provision for liability | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of year | $ 44 | $ 50 |
Additions and other changes | 4 | 4 |
Environmental spending | (9) | (12) |
Effect of foreign currency exchange rate change | (2) | 2 |
Balance at end of year | $ 37 | $ 44 |
Commitments and Contingencies_3
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 37 | $ 44 | $ 50 |
Accounts Payable And Accrued Liabilities [Member] | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | 10 | ||
Other Noncurrent Liabilities [Member] | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 27 |
Commitments and Contingencies_4
Commitments and Contingencies - Anticipated Undiscounted Payments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Environmental Remediation Obligations [Abstract] | |
2,019 | $ 10 |
2,020 | 1 |
2,021 | 2 |
2,022 | 2 |
2,023 | 2 |
Thereafter | 67 |
Total | $ 84 |
Commitments and Contingencies_5
Commitments and Contingencies - Minimum Future Payments under Operating Leases and Other Commercial Commitments (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Environmental Remediation Obligations [Abstract] | |
Operating leases, 2019 | $ 26 |
Operating leases, 2020 | 21 |
Operating leases, 2021 | 17 |
Operating leases, 2022 | 12 |
Operating leases, 2023 | 10 |
Thereafter | 17 |
Operating leases, Total | 103 |
Other commercial commitments, 2019 | 84 |
Other commercial commitments, 2020 | 13 |
Other commercial commitments, 2021 | 3 |
Other commercial commitments, 2022 | 1 |
Other commercial commitments, 2023 | 0 |
Other commercial commitments, Thereafter | 2 |
Other commercial commitments, Total | $ 103 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||
Number of major customers | Customer | 1 | ||
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 24 months | ||
Maximum [Member] | European Subsidiaries [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 2 months | ||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 42 months | ||
Natural Gas Swap Contracts [Member] | |||
Derivative [Line Items] | |||
Earnings hedge ineffectiveness | $ 0 | $ 0 | $ 0 |
Cumulative (loss) gain recorded in accumulated other comprehensive loss | (6,000,000) | ||
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 | $ 0 |
Cumulative (loss) gain recorded in accumulated other comprehensive loss | (29,000,000) | ||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | (18,000,000) | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ 67,000,000 | $ 83,000,000 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Maximum percentage of receivables a single customer represents | 10.00% | 12.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Dec. 31, 2018USD ($)MMBTU |
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 | 41.00% |
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 | 32.00% |
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 | 14.00% |
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 | 7.00% |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member] - Pulp and Paper [Member] | 12 Months Ended |
Dec. 31, 2018CAD ($) | |
CAD/USD Denominated Notional Contractual Value For 2019 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 699,000,000 |
Percentage of forecasted net exposures under contracts | 78.00% |
Currency exposure hedged, Average Protection rate | 1.2873 |
Currency exposure hedged, Average Obligation rate | 1.3168 |
CAD/USD Denominated Notional Contractual Value For 2020 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 324,000,000 |
Percentage of forecasted net exposures under contracts | 36.00% |
Currency exposure hedged, Average Protection rate | 1.2937 |
Currency exposure hedged, Average Obligation rate | 1.2937 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total Assets | $ 2 | $ 21 |
Total Liabilities | 37 | 12 |
Long-term debt | 858 | 1,216 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 6 | 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 | 1 | 16 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 19 | 5 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 11 | |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 4 | |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | 2 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 5 |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 6 | 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 | 2 | 21 |
Total Liabilities | 37 | 12 |
Long-term debt | 858 | 1,216 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 16 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 19 | 5 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 11 | |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 4 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [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 | 2 | 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 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | $ 1 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 854 | $ 1,130 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 12 Months Ended |
Dec. 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 | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 5,455 | $ 5,148 | $ 5,090 | ||||||||
Depreciation and amortization | 308 | 321 | 348 | ||||||||
Impairment of property, plant and equipment and goodwill | 7 | 578 | 29 | ||||||||
Consolidated depreciation and amortization and impairment of property, plant and equipment and goodwill | 315 | 899 | 377 | ||||||||
Consolidated operating (loss) income | $ 133 | $ 114 | $ 62 | $ 77 | $ (513) | $ 85 | $ 62 | $ 38 | 386 | (328) | 208 |
Interest expense, net (NOTE 9) | 62 | 66 | 66 | ||||||||
Non-service components of net periodic benefit cost | (18) | (11) | (15) | ||||||||
Earnings (loss) before income taxes and equity loss | 123 | 103 | 51 | 65 | (528) | 73 | 47 | 25 | 342 | (383) | 157 |
Income tax (benefit) expense | 57 | (125) | 29 | ||||||||
Equity loss, net of taxes | 2 | ||||||||||
Net earnings (loss) | $ 87 | $ 99 | $ 43 | $ 54 | $ (386) | $ 70 | $ 38 | $ 20 | 283 | (258) | 128 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,523 | 5,212 | 5,148 | ||||||||
Depreciation and amortization | 308 | 321 | 348 | ||||||||
Operating Segments [Member] | Communication Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,548 | 2,382 | 2,571 | ||||||||
Operating Segments [Member] | Specialty and Packaging Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 710 | 651 | 680 | ||||||||
Operating Segments [Member] | Market Pulp [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,197 | 1,119 | 930 | ||||||||
Operating Segments [Member] | Absorbent Hygiene Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,000 | 996 | 909 | ||||||||
Operating Segments [Member] | Pulp and Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,523 | 4,216 | 4,239 | ||||||||
Depreciation and amortization | 238 | 254 | 284 | ||||||||
Impairment of property, plant and equipment and goodwill | 29 | ||||||||||
Consolidated operating (loss) income | 438 | 237 | 201 | ||||||||
Operating Segments [Member] | Personal Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,000 | 996 | 909 | ||||||||
Depreciation and amortization | 70 | 67 | 64 | ||||||||
Impairment of property, plant and equipment and goodwill | 7 | 578 | |||||||||
Consolidated operating (loss) income | (5) | (527) | 57 | ||||||||
Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (68) | (64) | (58) | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating (loss) income | $ (47) | $ (38) | $ (50) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 5,455 | $ 5,148 | $ 5,090 | ||||||||
Consolidated operating (loss) income | $ 133 | $ 114 | $ 62 | $ 77 | $ (513) | $ 85 | $ 62 | $ 38 | $ 386 | $ (328) | 208 |
Customer Concentration Risk [Member] | Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of total sales represented by Company's largest customers | 10.00% | 10.00% | |||||||||
Scenario Previously Reported [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 5,157 | 5,098 | |||||||||
Consolidated operating (loss) income | (317) | 223 | |||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 5,523 | 5,212 | 5,148 | ||||||||
Operating Segments [Member] | Pulp and Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,523 | 4,216 | 4,239 | ||||||||
Consolidated operating (loss) income | 438 | 237 | 201 | ||||||||
Operating Segments [Member] | Pulp and Paper [Member] | Scenario Previously Reported [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating (loss) income | 250 | 217 | |||||||||
Operating Segments [Member] | Personal Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,000 | 996 | 909 | ||||||||
Consolidated operating (loss) income | (5) | (527) | 57 | ||||||||
Operating Segments [Member] | Personal Care [Member] | Scenario Previously Reported [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,005 | 917 | |||||||||
Consolidated operating (loss) income | (527) | 57 | |||||||||
Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (68) | (64) | (58) | ||||||||
Intersegment Sales [Member] | Scenario Previously Reported [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (64) | (58) | |||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating (loss) income | $ (47) | (38) | (50) | ||||||||
Corporate [Member] | Scenario Previously Reported [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating (loss) income | $ (40) | $ (51) |
Segment Disclosures - Consolida
Segment Disclosures - Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 4,925 | $ 5,212 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 4,806 | 5,055 |
Operating Segments [Member] | Pulp and Paper [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 3,475 | 3,649 |
Operating Segments [Member] | Personal Care [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 1,331 | 1,406 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 119 | $ 157 |
Segment Disclosures - Additions
Segment Disclosures - Additions to Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 203 | $ 180 | $ 346 |
Add: Change in payables on capital projects | (8) | 2 | 1 |
Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows | 195 | 182 | 347 |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 201 | 176 | 342 |
Operating Segments [Member] | Pulp and Paper [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 164 | 128 | 287 |
Operating Segments [Member] | Personal Care [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 37 | 48 | 55 |
Corporate [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 2 | $ 4 | $ 4 |
Segment Disclosures - Geographi
Segment Disclosures - Geographic Information on Sales (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | $ 5,455 | $ 5,148 | $ 5,090 |
United States [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 3,669 | 3,486 | 3,571 |
Canada [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 480 | 474 | 493 |
Europe [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 682 | 610 | 597 |
Asia [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 489 | 444 | 351 |
Other Foreign Countries [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | $ 135 | $ 134 | $ 78 |
Segment Disclosures - Long-Live
Segment Disclosures - Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 3,202 | $ 3,398 |
United States [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 2,056 | 2,136 |
Canada [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 604 | 677 |
Europe [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 542 | $ 585 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 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 Financ_4
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | $ 5,455,000,000 | $ 5,148,000,000 | $ 5,090,000,000 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 4,303,000,000 | 4,145,000,000 | 4,051,000,000 | ||||||||
Depreciation and amortization | 308,000,000 | 321,000,000 | 348,000,000 | ||||||||
Selling, general and administrative | 443,000,000 | 444,000,000 | 418,000,000 | ||||||||
Impairment of goodwill | 578,000,000 | 0 | |||||||||
Impairment of property, plant and equipment | 7,000,000 | 578,000,000 | 29,000,000 | ||||||||
Closure and restructuring costs | 8,000,000 | 2,000,000 | 32,000,000 | ||||||||
Other operating loss (income), net | (14,000,000) | 4,000,000 | |||||||||
Operating expenses | 5,069,000,000 | 5,476,000,000 | 4,882,000,000 | ||||||||
Operating income (loss) | $ 133,000,000 | $ 114,000,000 | $ 62,000,000 | $ 77,000,000 | $ (513,000,000) | $ 85,000,000 | $ 62,000,000 | $ 38,000,000 | 386,000,000 | (328,000,000) | 208,000,000 |
Interest expense (income), net | 62,000,000 | 66,000,000 | 66,000,000 | ||||||||
Non-service components of net periodic benefit cost | (18,000,000) | (11,000,000) | (15,000,000) | ||||||||
Earnings (loss) before income taxes and equity loss | 123,000,000 | 103,000,000 | 51,000,000 | 65,000,000 | (528,000,000) | 73,000,000 | 47,000,000 | 25,000,000 | 342,000,000 | (383,000,000) | 157,000,000 |
Income tax expense (benefit) (NOTE 10) | 57,000,000 | (125,000,000) | 29,000,000 | ||||||||
Equity loss, net of taxes | 2,000,000 | ||||||||||
Net earnings (loss) | $ 87,000,000 | $ 99,000,000 | $ 43,000,000 | $ 54,000,000 | $ (386,000,000) | $ 70,000,000 | $ 38,000,000 | $ 20,000,000 | 283,000,000 | (258,000,000) | 128,000,000 |
Other comprehensive income (loss) | (131,000,000) | 163,000,000 | 2,000,000 | ||||||||
Comprehensive income (loss) | 152,000,000 | (95,000,000) | 130,000,000 | ||||||||
Reportable Legal Entities [Member] | Parent [Member] | |||||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 11,000,000 | 9,000,000 | 17,000,000 | ||||||||
Other operating loss (income), net | 1,000,000 | ||||||||||
Operating expenses | 11,000,000 | 9,000,000 | 18,000,000 | ||||||||
Operating income (loss) | (11,000,000) | (9,000,000) | (18,000,000) | ||||||||
Interest expense (income), net | 62,000,000 | 63,000,000 | 65,000,000 | ||||||||
Earnings (loss) before income taxes and equity loss | (73,000,000) | (72,000,000) | (83,000,000) | ||||||||
Income tax expense (benefit) (NOTE 10) | (20,000,000) | 9,000,000 | (43,000,000) | ||||||||
Share in earnings of equity accounted investees | 336,000,000 | (177,000,000) | 168,000,000 | ||||||||
Net earnings (loss) | 283,000,000 | (258,000,000) | 128,000,000 | ||||||||
Other comprehensive income (loss) | (131,000,000) | 163,000,000 | 2,000,000 | ||||||||
Comprehensive income (loss) | 152,000,000 | (95,000,000) | 130,000,000 | ||||||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 4,411,000,000 | 4,243,000,000 | 4,203,000,000 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 3,782,000,000 | 3,688,000,000 | 3,638,000,000 | ||||||||
Depreciation and amortization | 216,000,000 | 233,000,000 | 256,000,000 | ||||||||
Selling, general and administrative | 108,000,000 | 142,000,000 | 93,000,000 | ||||||||
Impairment of goodwill | 313,000,000 | ||||||||||
Impairment of property, plant and equipment | 7,000,000 | 29,000,000 | |||||||||
Closure and restructuring costs | 6,000,000 | 2,000,000 | 31,000,000 | ||||||||
Other operating loss (income), net | (1,000,000) | 1,000,000 | (1,000,000) | ||||||||
Operating expenses | 4,118,000,000 | 4,379,000,000 | 4,046,000,000 | ||||||||
Operating income (loss) | 293,000,000 | (136,000,000) | 157,000,000 | ||||||||
Interest expense (income), net | 91,000,000 | 86,000,000 | 50,000,000 | ||||||||
Non-service components of net periodic benefit cost | 1,000,000 | 1,000,000 | |||||||||
Earnings (loss) before income taxes and equity loss | 201,000,000 | (223,000,000) | 107,000,000 | ||||||||
Income tax expense (benefit) (NOTE 10) | 30,000,000 | (179,000,000) | 36,000,000 | ||||||||
Equity loss, net of taxes | 1,000,000 | ||||||||||
Share in earnings of equity accounted investees | 166,000,000 | (133,000,000) | 97,000,000 | ||||||||
Net earnings (loss) | 336,000,000 | (177,000,000) | 168,000,000 | ||||||||
Other comprehensive income (loss) | (133,000,000) | 175,000,000 | (12,000,000) | ||||||||
Comprehensive income (loss) | 203,000,000 | (2,000,000) | 156,000,000 | ||||||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 2,226,000,000 | 2,053,000,000 | 2,032,000,000 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 1,703,000,000 | 1,605,000,000 | 1,558,000,000 | ||||||||
Depreciation and amortization | 92,000,000 | 88,000,000 | 92,000,000 | ||||||||
Selling, general and administrative | 324,000,000 | 293,000,000 | 308,000,000 | ||||||||
Impairment of goodwill | 265,000,000 | ||||||||||
Closure and restructuring costs | 2,000,000 | 1,000,000 | |||||||||
Other operating loss (income), net | 1,000,000 | (15,000,000) | 4,000,000 | ||||||||
Operating expenses | 2,122,000,000 | 2,236,000,000 | 1,963,000,000 | ||||||||
Operating income (loss) | 104,000,000 | (183,000,000) | 69,000,000 | ||||||||
Interest expense (income), net | (91,000,000) | (83,000,000) | (49,000,000) | ||||||||
Non-service components of net periodic benefit cost | (19,000,000) | (12,000,000) | (15,000,000) | ||||||||
Earnings (loss) before income taxes and equity loss | 214,000,000 | (88,000,000) | 133,000,000 | ||||||||
Income tax expense (benefit) (NOTE 10) | 47,000,000 | 45,000,000 | 36,000,000 | ||||||||
Equity loss, net of taxes | 1,000,000 | ||||||||||
Net earnings (loss) | 166,000,000 | (133,000,000) | 97,000,000 | ||||||||
Other comprehensive income (loss) | (110,000,000) | 170,000,000 | (35,000,000) | ||||||||
Comprehensive income (loss) | 56,000,000 | 37,000,000 | 62,000,000 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | (1,182,000,000) | (1,148,000,000) | (1,145,000,000) | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | (1,182,000,000) | (1,148,000,000) | (1,145,000,000) | ||||||||
Operating expenses | (1,182,000,000) | (1,148,000,000) | (1,145,000,000) | ||||||||
Share in earnings of equity accounted investees | (502,000,000) | 310,000,000 | (265,000,000) | ||||||||
Net earnings (loss) | (502,000,000) | 310,000,000 | (265,000,000) | ||||||||
Other comprehensive income (loss) | 243,000,000 | (345,000,000) | 47,000,000 | ||||||||
Comprehensive income (loss) | $ (259,000,000) | $ (35,000,000) | $ (218,000,000) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 111 | $ 139 | $ 125 | $ 126 |
Receivables | 670 | 704 | ||
Inventories | 762 | 757 | ||
Prepaid expenses | 24 | 33 | ||
Income and other taxes receivable | 22 | 24 | ||
Total current assets | 1,589 | 1,657 | ||
Property, plant and equipment, net | 2,605 | 2,765 | ||
Intangible assets, net | 597 | 633 | ||
Other assets | 134 | 157 | ||
Total assets | 4,925 | 5,212 | ||
Current liabilities | ||||
Trade and other payables | 757 | 716 | ||
Income and other taxes payable | 25 | 24 | ||
Long-term debt due within one year | 1 | 1 | ||
Total current liabilities | 783 | 741 | ||
Long-term debt | 853 | 1,129 | ||
Deferred income taxes and other | 476 | 491 | ||
Other liabilities and deferred credits | 275 | 368 | ||
Shareholders' equity | 2,538 | 2,483 | 2,676 | 2,652 |
Total liabilities and shareholders' equity | 4,925 | 5,212 | ||
Reportable Legal Entities [Member] | Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 3 | 17 | 49 | |
Prepaid expenses | 6 | 5 | ||
Income and other taxes receivable | 1 | 7 | ||
Intercompany accounts | 498 | 380 | ||
Total current assets | 505 | 395 | ||
Investments in affiliates | 3,645 | 3,892 | ||
Intercompany long-term advances | 5 | 6 | ||
Other assets | 18 | 22 | ||
Total assets | 4,173 | 4,315 | ||
Current liabilities | ||||
Trade and other payables | 52 | 55 | ||
Intercompany accounts | 125 | 244 | ||
Income and other taxes payable | 1 | 1 | ||
Total current liabilities | 178 | 300 | ||
Long-term debt | 793 | 792 | ||
Intercompany long-term loans | 636 | 674 | ||
Other liabilities and deferred credits | 28 | 66 | ||
Shareholders' equity | 2,538 | 2,483 | ||
Total liabilities and shareholders' equity | 4,173 | 4,315 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 14 | 14 | 2 | |
Receivables | 344 | 402 | ||
Inventories | 525 | 522 | ||
Prepaid expenses | 12 | 22 | ||
Income and other taxes receivable | 3 | 1 | ||
Intercompany accounts | 194 | 314 | ||
Total current assets | 1,078 | 1,275 | ||
Property, plant and equipment, net | 1,802 | 1,870 | ||
Intangible assets, net | 256 | 268 | ||
Investments in affiliates | 2,611 | 2,609 | ||
Intercompany long-term advances | 1 | 81 | ||
Other assets | 26 | 24 | ||
Total assets | 5,774 | 6,127 | ||
Current liabilities | ||||
Trade and other payables | 464 | 424 | ||
Intercompany accounts | 264 | 63 | ||
Income and other taxes payable | 12 | 14 | ||
Total current liabilities | 740 | 501 | ||
Long-term debt | 300 | |||
Intercompany long-term loans | 938 | 925 | ||
Deferred income taxes and other | 335 | 356 | ||
Other liabilities and deferred credits | 116 | 153 | ||
Shareholders' equity | 3,645 | 3,892 | ||
Total liabilities and shareholders' equity | 5,774 | 6,127 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 111 | 122 | $ 94 | $ 75 |
Receivables | 326 | 302 | ||
Inventories | 237 | 235 | ||
Prepaid expenses | 6 | 6 | ||
Income and other taxes receivable | 18 | 16 | ||
Intercompany accounts | 35 | 45 | ||
Total current assets | 733 | 726 | ||
Property, plant and equipment, net | 803 | 895 | ||
Intangible assets, net | 341 | 365 | ||
Intercompany long-term advances | 1,569 | 1,513 | ||
Other assets | 104 | 129 | ||
Total assets | 3,550 | 3,628 | ||
Current liabilities | ||||
Trade and other payables | 241 | 237 | ||
Intercompany accounts | 338 | 432 | ||
Income and other taxes payable | 12 | 9 | ||
Long-term debt due within one year | 1 | 1 | ||
Total current liabilities | 592 | 679 | ||
Long-term debt | 60 | 37 | ||
Intercompany long-term loans | 1 | 1 | ||
Deferred income taxes and other | 155 | 153 | ||
Other liabilities and deferred credits | 131 | 149 | ||
Shareholders' equity | 2,611 | 2,609 | ||
Total liabilities and shareholders' equity | 3,550 | 3,628 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Intercompany accounts | (727) | (739) | ||
Total current assets | (727) | (739) | ||
Investments in affiliates | (6,256) | (6,501) | ||
Intercompany long-term advances | (1,575) | (1,600) | ||
Other assets | (14) | (18) | ||
Total assets | (8,572) | (8,858) | ||
Current liabilities | ||||
Intercompany accounts | (727) | (739) | ||
Total current liabilities | (727) | (739) | ||
Intercompany long-term loans | (1,575) | (1,600) | ||
Deferred income taxes and other | (14) | (18) | ||
Shareholders' equity | (6,256) | (6,501) | ||
Total liabilities and shareholders' equity | $ (8,572) | $ (8,858) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||||||||||
Net (loss) earnings | $ 87 | $ 99 | $ 43 | $ 54 | $ (386) | $ 70 | $ 38 | $ 20 | $ 283 | $ (258) | $ 128 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) | 271 | 707 | 337 | ||||||||
Cash flows from operating activities | 554 | 449 | 465 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (195) | (182) | (347) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 5 | 19 | 1 | ||||||||
Acquisition of business, net of cash acquired | (8) | (46) | |||||||||
Other | (6) | 1 | |||||||||
Cash flows used for investing activities | (196) | (171) | (391) | ||||||||
Financing activities | |||||||||||
Dividend payments | (108) | (104) | (102) | ||||||||
Stock repurchase | (10) | ||||||||||
Net change in bank indebtedness | (12) | 12 | |||||||||
Change in revolving credit facility | (50) | ||||||||||
Proceeds from receivables securitization facility | 85 | 45 | 140 | ||||||||
Repayments of receivables securitization facility | (60) | (90) | (70) | ||||||||
Repayments of long-term debt | (301) | (64) | (40) | ||||||||
Other | 2 | 1 | (3) | ||||||||
Cash flows used for financing activities | (382) | (274) | (73) | ||||||||
Net (decrease) increase in cash and cash equivalents | (24) | 4 | 1 | ||||||||
Impact of foreign exchange on cash | (4) | 10 | (2) | ||||||||
Cash and cash equivalents at beginning of year | 139 | 125 | 139 | 125 | 126 | ||||||
Cash and cash equivalents at end of year | 111 | 139 | 111 | 139 | 125 | ||||||
Reportable Legal Entities [Member] | Parent [Member] | |||||||||||
Operating activities | |||||||||||
Net (loss) earnings | 283 | (258) | 128 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) | (557) | 287 | (4,280) | ||||||||
Cash flows from operating activities | (274) | 29 | (4,152) | ||||||||
Financing activities | |||||||||||
Dividend payments | (108) | (104) | (102) | ||||||||
Stock repurchase | (10) | ||||||||||
Change in revolving credit facility | (50) | ||||||||||
Repayments of long-term debt | (63) | (38) | |||||||||
Decrease in long-term advances to related parties | 377 | 173 | 4,273 | ||||||||
Other | 2 | 1 | (3) | ||||||||
Cash flows used for financing activities | 271 | (43) | 4,120 | ||||||||
Net (decrease) increase in cash and cash equivalents | (3) | (14) | (32) | ||||||||
Cash and cash equivalents at beginning of year | 3 | 17 | 3 | 17 | 49 | ||||||
Cash and cash equivalents at end of year | 3 | 3 | 17 | ||||||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Operating activities | |||||||||||
Net (loss) earnings | 336 | (177) | 168 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) | 434 | 259 | 4,149 | ||||||||
Cash flows from operating activities | 770 | 82 | 4,317 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (142) | (99) | (265) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 1 | ||||||||||
Acquisition of business, net of cash acquired | (1) | ||||||||||
Other | (2) | ||||||||||
Cash flows used for investing activities | (143) | (99) | (266) | ||||||||
Financing activities | |||||||||||
Net change in bank indebtedness | (12) | 12 | |||||||||
Repayments of long-term debt | (300) | (1) | |||||||||
Increase in long-term advances to related parties | (341) | (4,050) | |||||||||
Decrease in long-term advances to related parties | 29 | ||||||||||
Cash flows used for financing activities | (641) | 17 | (4,039) | ||||||||
Net (decrease) increase in cash and cash equivalents | (14) | 12 | |||||||||
Cash and cash equivalents at beginning of year | 14 | 14 | 14 | 14 | 2 | ||||||
Cash and cash equivalents at end of year | 14 | 14 | 14 | ||||||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Operating activities | |||||||||||
Net (loss) earnings | 166 | (133) | 97 | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) | (108) | 471 | 203 | ||||||||
Cash flows from operating activities | 58 | 338 | 300 | ||||||||
Investing activities | |||||||||||
Additions to property, plant and equipment | (53) | (83) | (82) | ||||||||
Proceeds from disposals of property, plant and equipment and sale of business | 4 | 19 | 1 | ||||||||
Acquisition of business, net of cash acquired | (8) | (45) | |||||||||
Other | (4) | 1 | |||||||||
Cash flows used for investing activities | (53) | (72) | (125) | ||||||||
Financing activities | |||||||||||
Proceeds from receivables securitization facility | 85 | 45 | 140 | ||||||||
Repayments of receivables securitization facility | (60) | (90) | (70) | ||||||||
Repayments of long-term debt | (1) | (1) | (1) | ||||||||
Increase in long-term advances to related parties | (36) | (202) | (223) | ||||||||
Cash flows used for financing activities | (12) | (248) | (154) | ||||||||
Net (decrease) increase in cash and cash equivalents | (7) | 18 | 21 | ||||||||
Impact of foreign exchange on cash | (4) | 10 | (2) | ||||||||
Cash and cash equivalents at beginning of year | $ 122 | $ 94 | 122 | 94 | 75 | ||||||
Cash and cash equivalents at end of year | $ 111 | $ 122 | 111 | 122 | 94 | ||||||
Consolidating Adjustments [Member] | |||||||||||
Operating activities | |||||||||||
Net (loss) earnings | (502) | 310 | (265) | ||||||||
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) | 502 | (310) | 265 | ||||||||
Financing activities | |||||||||||
Increase in long-term advances to related parties | 377 | 202 | 4,273 | ||||||||
Decrease in long-term advances to related parties | $ (377) | $ (202) | $ (4,273) |
Interim Financial Results - Sch
Interim Financial Results - Schedule of Interim Financial Results (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 1,390 | $ 1,367 | $ 1,353 | $ 1,345 | $ 1,335 | $ 1,290 | $ 1,221 | $ 1,302 | $ 5,455 | $ 5,148 | |
Operating income (loss) | 133 | 114 | 62 | 77 | (513) | 85 | 62 | 38 | 386 | (328) | $ 208 |
Earnings (loss) before income taxes and equity loss | 123 | 103 | 51 | 65 | (528) | 73 | 47 | 25 | 342 | (383) | 157 |
Net (loss) earnings | $ 87 | $ 99 | $ 43 | $ 54 | $ (386) | $ 70 | $ 38 | $ 20 | $ 283 | $ (258) | $ 128 |
Basic net earnings (loss) per common share | $ 1.38 | $ 1.57 | $ 0.68 | $ 0.86 | $ (6.16) | $ 1.12 | $ 0.61 | $ 0.32 | $ 4.50 | $ (4.11) | $ 2.04 |
Diluted net earnings (loss) per common share | $ 1.38 | $ 1.57 | $ 0.68 | $ 0.86 | $ (6.16) | $ 1.11 | $ 0.61 | $ 0.32 | $ 4.48 | $ (4.11) | $ 2.04 |
Interim Financial Results - S_2
Interim Financial Results - Schedule of Interim Financial Results (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subsequent Event [Line Items] | |||||||||
Net gain on sale of property, plant and equipment | $ 4,000,000 | $ 13,000,000 | |||||||
Net tax benefit (expense) related to U.S. tax reform | $ (10,000,000) | $ 7,000,000 | $ 140,000,000 | 13,000,000 | |||||
Closure and restructuring costs | 8,000,000 | 2,000,000 | $ 32,000,000 | ||||||
Impairment of goodwill | 578,000,000 | 0 | |||||||
Tax benefit related to U.S. tax reform for remeasurement of deferred tax assets and liabilities | 186,000,000 | 186,000,000 | |||||||
Deemed mandatory repatriation tax | 46,000,000 | (7,000,000) | 46,000,000 | ||||||
Pulp and Paper [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Net gain on sale of property, plant and equipment | $ 3,000,000 | $ 1,000,000 | $ 4,000,000 | ||||||
Closure and restructuring costs | 31,000,000 | ||||||||
Corporate [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Net gain on sale of property, plant and equipment | 9,000,000 | ||||||||
Litigation settlement | $ 2,000,000 | ||||||||
Partial reversal of contingent consideration | $ 2,000,000 | ||||||||
Personal Care [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Closure and restructuring costs | 8,000,000 | 2,000,000 | $ 8,000,000 | 2,000,000 | $ 1,000,000 | ||||
Accelerated depreciation | $ 7,000,000 | ||||||||
Impairment of goodwill | $ 578,000,000 | $ 578,000,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Doubtful Accounts - Accounts Receivable [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | $ 7 | $ 7 | $ 6 |
Charged to income | 2 | 1 | |
(Deductions) from / Additions to reserve | (3) | (1) | 1 |
Balance at end of year | 6 | 7 | 7 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | 25 | 22 | 23 |
Charged to income | (8) | 3 | (1) |
(Deductions) from / Additions to reserve | (1) | ||
Balance at end of year | $ 16 | $ 25 | $ 22 |