Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | UFS | |
Entity Registrant Name | DOMTAR CORP | |
Entity Central Index Key | 0001381531 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 55,194,538 | |
Entity File Number | 001-33164 | |
Entity Tax Identification Number | 20-5901152 | |
Entity Address, Address Line One | 234 Kingsley Park Drive | |
Entity Address, City or Town | Fort Mill | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29715 | |
City Area Code | 803 | |
Local Phone Number | 802-7500 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 1,124 | $ 1,283 | $ 3,414 | $ 3,976 |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 911 | 1,041 | 2,831 | 3,172 |
Depreciation and amortization | 71 | 72 | 214 | 219 |
Selling, general and administrative | 99 | 94 | 294 | 322 |
Impairment of long-lived assets (NOTE 12) | 111 | 33 | 111 | 58 |
Closure and restructuring costs (NOTE 12) | 68 | 11 | 69 | 23 |
Other operating loss (income), net (NOTE 7) | 3 | (2) | 4 | |
Operating expenses | 1,260 | 1,254 | 3,517 | 3,798 |
Operating (loss) income | (136) | 29 | (103) | 178 |
Interest expense, net | 14 | 12 | 43 | 38 |
Non-service components of net periodic benefit cost (NOTE 6) | (4) | (2) | (13) | (7) |
(Loss) earnings before income taxes and equity loss | (146) | 19 | (133) | 147 |
Income tax (benefit) expense (NOTE 8) | (55) | (1) | (67) | 28 |
Equity loss, net of taxes | 1 | 2 | 1 | |
Net (loss) earnings | $ (92) | $ 20 | $ (68) | $ 118 |
Per common share (in dollars) (NOTE 5) | ||||
Basic | $ (1.67) | $ 0.33 | $ (1.23) | $ 1.89 |
Diluted | $ (1.67) | $ 0.32 | $ (1.23) | $ 1.88 |
Weighted average number of common shares outstanding (millions) | ||||
Basic | 55.2 | 61.5 | 55.5 | 62.5 |
Diluted | 55.2 | 61.7 | 55.5 | 62.7 |
Cash dividends per common share | $ 0.46 | $ 0.91 | $ 1.33 | |
Net (loss) earnings | $ (92) | $ 20 | $ (68) | $ 118 |
Net derivative gains (losses) on cash flow hedges: | ||||
Net gains (losses) arising during the period, net of tax of $(7) and nil, respectively (2019 – $4 and $(1), respectively) | 20 | (9) | 5 | |
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax of $(1) and $(5), respectively (2019 – $(1) and $(2), respectively) | 1 | 3 | 14 | 5 |
Foreign currency translation adjustments | 40 | (34) | 5 | (12) |
Change in unrecognized (losses) gains and prior service cost (losses) related to pension and post-retirement benefit plans, net of tax of $12 and $11, respectively (2019 – $(1) and $(3), respectively) | (38) | 2 | (35) | 7 |
Other comprehensive income (loss) | 23 | (38) | (16) | 5 |
Comprehensive (loss) income | $ (69) | $ (18) | $ (84) | $ 123 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net (losses) gains arising during the period, tax | $ (7) | $ 4 | $ (1) | |
Reclassification adjustment for losses included in net earnings, net, tax | (1) | (1) | $ (5) | (2) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 12 | $ (1) | $ 11 | $ (3) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 218 | $ 61 |
Receivables, less allowances of $11 and $6 | 543 | 577 |
Inventories (NOTE 9) | 764 | 786 |
Prepaid expenses | 36 | 33 |
Income and other taxes receivable | 44 | 61 |
Total current assets | 1,605 | 1,518 |
Property, plant and equipment, net | 2,378 | 2,567 |
Operating lease right-of-use assets (NOTE 10) | 72 | 81 |
Intangible assets, net (NOTE 11) | 573 | 573 |
Other assets | 163 | 164 |
Total assets | 4,791 | 4,903 |
Current liabilities | ||
Bank indebtedness | 9 | |
Trade and other payables | 626 | 705 |
Income and other taxes payable | 37 | 23 |
Operating lease liabilities due within one year (NOTE 10) | 27 | 28 |
Long-term debt due within one year | 13 | 1 |
Total current liabilities | 703 | 766 |
Long-term debt | 1,086 | 938 |
Operating lease liabilities (NOTE 10) | 58 | 69 |
Deferred income taxes and other | 413 | 479 |
Other liabilities and deferred credits | 320 | 275 |
Commitments and contingencies (NOTE 16) | ||
Shareholders' equity (NOTE 15) | ||
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 | 1,714 | 1,770 |
Retained earnings | 905 | 998 |
Accumulated other comprehensive loss | (409) | (393) |
Total shareholders' equity | 2,211 | 2,376 |
Total liabilities and shareholders' equity | $ 4,791 | $ 4,903 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 11 | $ 6 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 65,001,104 | 65,001,104 |
Treasury stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 9,808,481 | 8,120,194 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - 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, 2018 | $ 2,538 | $ 1 | $ 1,981 | $ 1,023 | $ (467) |
Balance, Shares at Dec. 31, 2018 | 62,900,000 | ||||
Stock-based compensation, net of tax | 6 | 6 | |||
Stock-based compensation, net of tax, shares | 200,000 | ||||
Net (loss) earnings | 118 | 118 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 5 | 5 | |||
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax | 5 | 5 | |||
Foreign currency translation adjustments | (12) | (12) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 7 | 7 | |||
Stock repurchase | $ (145) | (145) | |||
Stock repurchase, shares | (4,076,723) | (4,100,000) | |||
Cash dividends declared | $ (83) | (83) | |||
Balance at Sep. 30, 2019 | 2,439 | $ 1 | 1,842 | 1,058 | (462) |
Balance, Shares at Sep. 30, 2019 | 59,000,000 | ||||
Balance at Jun. 30, 2019 | 2,619 | $ 1 | 1,977 | 1,065 | (424) |
Balance, Shares at Jun. 30, 2019 | 62,900,000 | ||||
Stock-based compensation, net of tax | 2 | 2 | |||
Net (loss) earnings | 20 | 20 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | (9) | (9) | |||
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax | 3 | 3 | |||
Foreign currency translation adjustments | (34) | (34) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 2 | 2 | |||
Stock repurchase | (137) | (137) | |||
Stock repurchase, shares | (3,900,000) | ||||
Cash dividends declared | (27) | (27) | |||
Balance at Sep. 30, 2019 | 2,439 | $ 1 | 1,842 | 1,058 | (462) |
Balance, Shares at Sep. 30, 2019 | 59,000,000 | ||||
Balance at Dec. 31, 2019 | 2,376 | $ 1 | 1,770 | 998 | (393) |
Balance, Shares at Dec. 31, 2019 | 56,900,000 | ||||
Stock-based compensation, net of tax | 3 | 3 | |||
Stock-based compensation, net of tax, shares | 100,000 | ||||
Net (loss) earnings | (68) | (68) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax | 14 | 14 | |||
Foreign currency translation adjustments | 5 | 5 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | (35) | (35) | |||
Stock repurchase | $ (59) | (59) | |||
Stock repurchase, shares | (1,798,306) | (1,800,000) | |||
Cash dividends declared | $ (25) | (25) | |||
Balance at Sep. 30, 2020 | 2,211 | $ 1 | 1,714 | 905 | (409) |
Balance, Shares at Sep. 30, 2020 | 55,200,000 | ||||
Balance at Jun. 30, 2020 | 2,277 | $ 1 | 1,711 | 997 | (432) |
Balance, Shares at Jun. 30, 2020 | 55,200,000 | ||||
Stock-based compensation, net of tax | 3 | 3 | |||
Net (loss) earnings | (92) | (92) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 20 | 20 | |||
Less: Reclassification adjustment for losses included in net earnings (loss), net of tax | 1 | 1 | |||
Foreign currency translation adjustments | 40 | 40 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | (38) | (38) | |||
Balance at Sep. 30, 2020 | $ 2,211 | $ 1 | $ 1,714 | $ 905 | $ (409) |
Balance, Shares at Sep. 30, 2020 | 55,200,000 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Net gains (losses) arising during the period, tax | $ (7) | $ 4 | $ (1) | |
Reclassification adjustment for losses included in net earnings, net, tax | (1) | (1) | $ (5) | (2) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 12 | $ (1) | $ 11 | $ (3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net (loss) earnings | $ (68) | $ 118 |
Adjustments to reconcile net (loss) earnings to cash flows from operating activities | ||
Depreciation and amortization | 214 | 219 |
Deferred income taxes and tax uncertainties | (60) | 1 |
Impairment of long-lived assets | 111 | 58 |
Stock-based compensation expense | 5 | 7 |
Equity loss, net of taxes | 2 | 1 |
Changes in assets and liabilities, excluding the effect of acquisition of business | ||
Receivables | 38 | 50 |
Inventories | 30 | (34) |
Prepaid expenses | 9 | (4) |
Trade and other payables | (21) | (111) |
Income and other taxes | 34 | (27) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (6) | (3) |
Other assets and other liabilities | (12) | 7 |
Cash flows from operating activities | 276 | 282 |
Investing activities | ||
Additions to property, plant and equipment | (130) | (157) |
Proceeds from disposals of property, plant and equipment | 1 | |
Acquisition of business, net of cash acquired | (30) | |
Cash flows used for investing activities | (160) | (156) |
Financing activities | ||
Dividend payments | (51) | (83) |
Stock repurchase | (59) | (139) |
Net change in bank indebtedness | (10) | 2 |
Change in revolving credit facility | (80) | 45 |
Proceeds from receivables securitization facility | 25 | 150 |
Repayments of receivables securitization facility | (80) | (110) |
Issuance of long-term debt | 300 | |
Repayments of long-term debt | (3) | (1) |
Other | (3) | (1) |
Cash flows provided from (used for) financing activities | 39 | (137) |
Net increase (decrease) in cash and cash equivalents | 155 | (11) |
Impact of foreign exchange on cash | 2 | (2) |
Cash and cash equivalents at beginning of period | 61 | 111 |
Cash and cash equivalents at end of period | 218 | 98 |
Supplemental cash flow information | ||
Interest | 44 | 39 |
Income taxes | $ (25) | $ 55 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1. _________________ BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. Results for the first nine months of the year may not necessarily be indicative of full-year results. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission. The December 31, 2019 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. _________________ RECENT ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES IMPLEMENTED IMPLEMENTATION COSTS FOR CLOUD COMPUTING ARRANGEMENTS In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The Company adopted the new guidance on January 1, 2020 with no significant impact on the consolidated financial statements. RECEIVABLES In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses The Company adopted the new guidance on January 1, 2020 with no significant impact on the consolidated financial statements. INCOME TAXES In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes FUTURE ACCOUNTING CHANGES TRANSITION AWAY FROM INTERBANK OFFERED RATES On March 12, 2020, the FASB issued ASU 2020-04, “ Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in the ASU are elective and apply to entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company has begun its impact assessment and while its evaluation of this guidance is in the early stages, the Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Acquisition of Business
Acquisition of Business | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Business | NOTE 3. _________________ ACQUISITION OF BUSINESS Purchase of Appvion Point of Sale business On April 27, 2020, Domtar Corporation completed the acquisition of the Point of Sale paper business from Appvion Operation Inc. The business includes the coater and related equipment located at Appvion’s West Carrollton, Ohio, facility as well as a license for all corresponding intellectual property and assumed liabilities related to post-retirement benefits. The results of this business have been included in the consolidated financial statements as of April 27, 2020 and are presented in the Pulp and Paper reportable segment. The purchase price was $20 million in cash plus the book value of raw materials and finished goods inventory, subject to post-closing adjustments. The acquisition was accounted for as a business combination under the acquisition method of accounting. The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which are based on information currently available. The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Inventories $ 11 Property, plant and equipment 23 Operating lease right-of-use assets 2 Total assets 36 Less: Assumed Liabilities 6 Fair value of net assets acquired at the date of acquisition 30 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 4. ________________ DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices, interest rates and prices of the Company’s common stock with regard to the Company’s stock-based compensation program. 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 Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivable from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of September 30, 2020, two Pulp and Paper segment customers located in the U.S. represented 11% or $62 million, and 10% or $55 million, respectively, of the Company’s receivables (December 31, 2019 – two Pulp and Paper segment customers located in the U.S. represented 11% or $66 million, and 11% or $65 million, respectively). 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. EQUITY RISK The Company is exposed to changes in share prices with regard to its stock-based compensation program. The Company manages its exposure through the use of derivative instruments such as equity swap contracts. In March 2020, the Company entered into a total return swap agreement covering 500,000 common shares maturing on March 4, 2022. 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 39 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2020 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBtu (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2020 (1) 2,384,843 $ 7 35% 2021 9,270,000 $ 27 39% 2022 9,270,000 $ 25 37% 2023 4,210,000 $ 12 16% (1) Represents the remaining three months of 2020 (2) MMBtu: Millions of British thermal units The natural gas derivative contracts were effective as of September 30, 2020. 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. 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 September 30, 2020 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate CAD/USD Pulp and Paper 2020 (1) 226 CAD 95% 1 USD = 1.3259 1 USD = 1.3426 CAD/USD Pulp and Paper 2021 721 CAD 76% 1 USD = 1.3412 1 USD = 1.3558 CAD/USD Pulp and Paper 2022 304 CAD 32% 1 USD = 1.3606 1 USD = 1.3606 (1) The foreign exchange derivative contracts were effective as of September 30, 2020. FAIR VALUE MEASUREMENT The accounting standards for fair value measurements and disclosures establish 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 September 30, 2020 and December 31, 2019, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: September 30, 2020 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 10 — 10 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 18 — 18 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 2 — 2 — (a) Other liabilities and deferred credits Total Liabilities 10 — 10 — Other instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 13 13 — — Other liabilities and deferred credits Equity swap contracts 1 1 — — Other liabilities and deferred credits Long-term debt 1,192 — 1,192 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $2 million at September 30, 2020, of which a loss of $1 million is expected to be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2020. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $10 million at September 30, 2020, of which a gain of $5 million is expected to 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 September 30, 2020. Fair Value of financial instruments at: December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 4 — 4 — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Total Assets 8 — 8 — Liabilities derivatives Currency derivatives 2 — 2 — (a) Trade and other payables Natural gas swap contracts 9 — 9 — (a) Trade and other payables Natural gas swap contracts 8 — 8 — (a) Other liabilities and deferred credits Total Liabilities 19 — 19 — Other Instruments: Stock-based compensation - liability awards 7 7 — — Trade and other payables Stock-based compensation - liability awards 18 18 — — Other liabilities and deferred credits Long-term debt 1,030 — 1,030 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Foreign currency forward and option contracts are valued using standard valuation models. 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 September 30, 2020 and December 31, 2019. The carrying value of the Company’s long-term debt is $1,099 million and $939 million at September 30, 2020 and December 31, 2019, respectively. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, receivables, bank indebtedness, trade and other payables and income and other taxes approximate their fair values. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | NOTE 5. _________________ EARNINGS (LOSS) PER COMMON SHARE The following table provides the reconciliation between basic and diluted (loss) earnings per common share: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Net (loss) earnings $ (92 ) $ 20 $ (68 ) $ 118 Weighted average number of common shares outstanding (millions) 55.2 61.5 55.5 62.5 Effect of dilutive securities (millions) — 0.2 — 0.2 Weighted average number of diluted common shares outstanding (millions) 55.2 61.7 55.5 62.7 Basic net (loss) earnings per common share (in dollars) $ (1.67 ) $ 0.33 $ (1.23 ) $ 1.89 Diluted $ (1.67 ) $ 0.32 $ (1.23 ) $ 1.88 The following table provides the securities that could potentially dilute basic (loss) earnings per common share in the future, but were not included in the computation of diluted (loss) earnings per common share because to do so would have been anti-dilutive: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Options to purchase common shares 407,662 398,869 407,662 325,757 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 6. _________________ PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans, including multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the three and nine months ended September 30, 2020, the pension expense was $11 million and $32 million, respectively (2019 – $10 million and $33 million, respectively). DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS The Company sponsors both contributory and non-contributory defined benefit pension plans. Non-unionized employees in Canada joining the Company after January 1, 1998 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Unionized and non-union hourly employees in the U.S. who are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2020 September 30, 2020 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 — 21 1 Interest expense 10 — 30 1 Expected return on plan assets (17 ) — (51 ) — Amortization of net actuarial loss (gain) 3 — 7 (1 ) Curtailment loss (1) 2 — 2 — Amortization of prior year service costs — — 1 — Net periodic benefit cost 5 — 10 1 (1) Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2019 September 30, 2019 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 6 — 21 1 Interest expense 14 — 41 1 Expected return on plan assets (19 ) — (59 ) — Amortization of net actuarial loss (gain) 2 — 7 (1 ) Amortization of prior year service costs 1 — 4 — Net periodic benefit cost 4 — 14 1 The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than service cost and curtailment loss, are presented in Non-service components of net periodic benefit cost on the Consolidated Statement of Earnings (loss) and Comprehensive Income (Loss). For the three and nine months ended September 30, 2020, the Company contributed $8 million and $12 million, respectively (2019 – $7 million and $14 million, respectively) to the pension plans and $1 million and $3 million, respectively (2019 – $1 million and $3 million, respectively) to the other post-retirement benefit plans. |
Other Operating Loss (Income),
Other Operating Loss (Income), Net | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Loss, Net | NOTE 7. _________________ OTHER OPERATING LOSS (INCOME), NET Other operating loss (income), net is an aggregate of both recurring and non-recurring loss or income items and, as a result, can fluctuate from period to period. The Company’s other operating loss (income), net includes the following: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Bad debt expense — 1 5 2 Environmental provision — 1 1 2 Non-production agreement terminated — — (7 ) — Foreign exchange loss 1 1 1 3 Other (1 ) — (2 ) (3 ) Other operating loss (income), net — 3 (2 ) 4 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. _________________ INCOME TAXES For the third quarter of 2020, the Company’s income tax benefit was $55 million, consisting of a current income tax benefit of $7 million and a deferred income tax benefit of $48 million. This compares to an income tax benefit of $1 million in the third quarter of 2019, consisting of a current income tax benefit of $3 million and a deferred income tax expense of $2 million. The Company received income tax refunds, net of payments of $1 million during the third quarter of 2020. The effective tax rate was 38% compared with an effective tax rate of -5% in the third quarter of 2019. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate and then making adjustments for discrete items arising in that quarter. In each interim quarter the Company updates its estimate of the annual effective tax rate and, if the estimated annual tax rate changes, makes a cumulative adjustment in that quarter. The effective tax rate for the third quarter of 2020 was significantly impacted by such an adjustment, mainly due to a change in the mix of earnings or loss between tax jurisdictions. The effective tax rate for the third quarter of 2020 was also favorably impacted by the CARES Act, which granted companies the ability to carry back tax losses generated in the U.S. in 2020 to a tax year with earnings that were taxed at a higher statutory tax rate. The effective tax rate for the third quarter of 2019 was favorably impacted by additional R&D tax credits in the U.S. and Spain and by the finalization of certain estimates in connection with the filing of the Company’s 2018 income tax returns. For the first nine months of 2020, the Company’s income tax benefit was $67 million, consisting of a current income tax benefit of $7 million and a deferred income tax benefit of $60 million. This compares to an income tax expense of $28 million in the first nine months of 2019, consisting of a current income tax expense of $27 million and a deferred income tax expense of $1 million. The Company received refunds, net of income tax payments, of $25 million during the first nine months of 2020. The effective tax rate was 50% compared to an effective tax rate of 19% in the first nine months of 2019. The effective tax rate for the first nine months of 2020 was significantly impacted by the mix of earnings or loss in the Company’s major jurisdictions, by the recognition of additional tax credits in various jurisdictions, and by the ability to carry back U.S. tax losses generated in 2020 to a tax year with earnings that were taxed at a higher statutory tax rate. These favorable impacts were partially offset by an increase in the valuation allowance related to the expected realization of certain U.S. state tax credits. The effective tax rate for the first nine months of 2019 was favorably impacted by the recognition of additional R&D credits in the U.S. and Spain and by an enacted law change in the state of Arkansas, which were mostly offset by the recording of a valuation allowance against certain state tax credit carryforwards and by the finalization of certain estimates in connection with the filing of the Company’s 2018 income tax returns. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 9. _________________ INVENTORIES The following table presents the components of inventories: September 30, December 31, 2020 2019 $ $ Work in process and finished goods 405 401 Raw materials 147 153 Operating and maintenance supplies 212 232 764 786 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 10. _________________ LEASES In the normal course of business, the Company enters into operating and finance leases mainly for manufacturing and warehousing facilities, corporate offices, motor vehicles, mobile equipment and manufacturing equipment. While the Company’s lease payments are generally fixed over the lease term, some leases may include price escalation terms that are fixed at the lease commencement date. The Company has remaining lease terms ranging from 1 year to 12 years, some of which may include options to extend the leases for up to 10 years, and some of which may include options to terminate the leases within 1 year. The components of lease expense were as follows: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Operating lease expense 8 8 24 22 Finance lease expense: Amortization of right-of-use assets 1 1 1 1 Interest on lease liabilities — — — — Total finance lease expense 1 1 1 1 Supplemental cash flow information related to leases was as follows: For the nine months ended September 30, September 30, 2020 2019 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 25 23 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 7 24 Finance leases — — Supplemental balance sheet information related to leases was as follows: September 30, December 31, 2020 2019 $ $ Operating leases Operating leases right-of-use assets 72 81 Lease liabilities due within one year 27 28 Operating lease liabilities 58 69 85 97 Finance leases Property, plant and equipment 14 15 Accumulated depreciation (7 ) (7 ) 7 8 Long-term debt due within one year 1 1 Long-term debt 8 9 9 10 Weighted-average remaining lease term Operating leases 4.5 years 4.9 years Finance leases 9.3 years 10 years Weighted-average discount rate Operating leases 4.5 % 4.6 % Finance leases 6.3 % 6.7 % Mat urities of lease liabilities September 3 0 , 20 20 were as follows: Operating leases Finance leases September 30, September 30, 2020 2020 $ $ 2020 (1) 7 — 2021 26 2 2022 21 2 2023 16 1 2024 9 1 Thereafter 15 6 Total lease payments 94 12 Less: Imputed interest 9 3 Total lease liabilities 85 9 (1) |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 11. _________________ INTANGIBLE ASSETS The following table presents the components of intangible assets: September 30, 2020 December 31, 2019 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 388 (123 ) 265 380 (108 ) 272 Technology 7 – 20 8 (5 ) 3 8 (5 ) 3 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (17 ) 11 29 (16 ) 13 428 (147 ) 281 421 (131 ) 290 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 242 — 242 235 — 235 License rights 6 — 6 6 — 6 Catalog rights 40 — 40 38 — 38 Total 720 (147 ) 573 704 (131 ) 573 Amortization expense related to intangible assets for the three and nine months ended September 30, 2020 was $5 million and $14 million, respectively (2019 – $5 million and $14 million, respectively). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2020 2021 2022 2023 2024 $ $ $ $ $ Amortization expense related to intangible assets 21 (1) 21 21 20 20 (1) |
Closure and Restructuring Costs
Closure and Restructuring Costs and Impairment of Long-lived Assets | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Impairment of Long-lived Assets | NOTE 12. _________________ CLOSURE AND RESTRUCTURING COSTS AND IMPAIRMENT OF LONG-LIVED ASSETS Cost reduction program The Company is implementing a cost savings program. As part of this program, on August 7, 2020, the Company announced the permanent closure of the uncoated freesheet manufacturing at the Kingsport, Tennessee and Port Huron, Michigan mills, the remaining paper machine at the Ashdown, Arkansas mill and the converting center in Ridgefields, Tennessee. These actions will reduce the Company’s annual uncoated freesheet paper capacity by approximately 721,000 short tons, and will result in a workforce reduction of approximately 750 employees. The Kingsport and Ashdown paper machines, which have been idled since April 2020, did not recommence operations. The Ridgefields converting center ceased operations at the end of the third quarter of 2020, while the Port Huron mill is expected to shut down by the end of the first quarter of 2021. The Company plans to enter the linerboard market with the conversion of the Kingsport paper machine. Domtar estimates the conversion cost to be between $300 and $350 million. As a result of the decision to change the nature and use of the Kingsport, Tennessee mill, the carrying amount of the remaining assets of the Kingsport mill has been tested for impairment and resulted in no additional impairment charge in the quarter. The carrying amount of these assets was approximately $80 million at September 30, 2020. The Company is also completing the conversion of the Ashdown mill to 100% softwood and fluff pulp, which is requiring $15 to $20 million of capital investments and is expected to be completed within nine to twelve months. During the third quarter of 2020, the Company recorded $111 million of accelerated depreciation under Impairment of long-lived assets on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Additionally, the Company recorded $29 million of severance and termination costs, $31 million of inventory obsolescence, $2 million of pension curtailment loss and $6 million of other costs, under Closure and restructuring costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Ashdown, Arkansas mill and Port Huron, Michigan mill On September 27, 2019, the Company’s Board of Directors approved the decision to permanently shut down two paper machines, which was announced on October 3, 2019. The closures took place at the Ashdown, Arkansas pulp and paper mill and the Port Huron, Michigan paper mill. As a result, the Company recorded, in the third quarter of 2019, $32 million of accelerated depreciation under Impairment of long-lived assets on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Additionally, the Company recorded $1 million of severance and termination costs and $4 million of inventory obsolescence, under Closure and restructuring costs. Waco, Texas facility On November 1, 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, the relocation of certain of its manufacturing assets and a workforce reduction across the division. The Waco, Texas facility ceased operations during the second quarter of 2019. For the three and nine months ended September 30, 2019, the Company recorded $1 million of accelerated depreciation and $26 million of accelerated depreciation and impairment of operating lease right-of-use assets, respectively, under Impairment of long-lived assets on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). For the three and nine months ended September 30, 2019, the Company also recorded $1 million and $5 million, respectively, of severance and termination costs; $1 million and $2 million, respectively, of inventory obsolescence; and $4 million and $11 million, respectively, of asset relocation and other costs, under Closure and restructuring costs. Other costs For the three and nine months ended September 30, 2020, other costs related to previous and ongoing closures and restructuring included nil and $1 million, respectively, of severance and termination costs (2019 – nil). |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 13. _________________ LONG-TERM DEBT TERM LOAN On May 5, 2020, the Company entered into a $300 million Term Loan Agreement (the “Term Loan Agreement”) that matures on May 5, 2025. The Company used borrowings under the Term Loan Agreement to repay other debt and to pay related fees and expenses. Borrowings under the Term Loan Agreement bear interest at LIBOR plus a margin of 2.5% and require principal repayments of $3 million each quarter. The Term Loan Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Term Loan Agreement that must be maintained at a level of not greater than 3.75 to 1. All borrowings under the Term Loan are unsecured. Certain domestic subsidiaries of the Company guarantee the obligations arising under the Term Loan Agreement. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 14. _________________ CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) Net derivative gains (losses) on cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2018 (24 ) (231 ) 11 (223 ) (467 ) Natural gas swap contracts (10 ) N/A N/A N/A (10 ) Currency options 5 N/A N/A N/A 5 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A 1 1 N/A 2 Foreign currency items N/A N/A N/A 21 21 Other comprehensive income before reclassifications 11 1 1 21 34 Amounts reclassified from Accumulated other comprehensive loss 8 33 (1 ) — 40 Net current period other comprehensive income 19 34 — 21 74 Balance at December 31, 2019 (5 ) (197 ) 11 (202 ) (393 ) Natural gas swap contracts 3 N/A N/A N/A 3 Currency options (1 ) N/A N/A N/A (1 ) Foreign exchange forward contracts (2 ) N/A N/A N/A (2 ) Net loss N/A (41 ) — N/A (41 ) Foreign currency items N/A N/A N/A 5 5 Other comprehensive (loss) income before reclassifications — (41 ) — 5 (36 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 (1 ) — 20 Net current period other comprehensive income (loss) 14 (34 ) (1 ) 5 (16 ) Balance at September 30, 2020 9 (231 ) 10 (197 ) (409 ) (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 tables present reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2020 and 2019: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss For the three months ended September 30, 2020 September 30, 2019 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) (2 ) (2 ) Currency options and forwards (1) — (2 ) Total before tax (2 ) (4 ) Tax benefit 1 1 Net of tax (1 ) (3 ) Amortization of defined benefit pension items Amortization of net actuarial loss (2) (3 ) (2 ) Curtailment loss (2) (2 ) — Amortization of prior year service costs (2) — (1 ) Total before tax (5 ) (3 ) Tax benefit 2 1 Net of tax (3 ) (2 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) — — Amortization of prior year service costs (2) — — Total before tax — — Tax expense — — Net of tax — — Amounts reclassified from Accumulated other comprehensive loss For the nine months ended September 30, 2020 September 30, 2019 $ $ Net derivatives losses on cash flow hedge Natural gas swap contracts (1) (10 ) (2 ) Currency options and forwards (1) (9 ) (5 ) Total before tax (19 ) (7 ) Tax benefit 5 2 Net of tax (14 ) (5 ) Amortization of defined benefit pension items Amortization of net actuarial loss (2) (7 ) (7 ) Curtailment loss (2) (2 ) — Amortization of prior year service costs (2) (1 ) (4 ) Total before tax (10 ) (11 ) Tax benefit 3 3 Net of tax (7 ) (8 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) 1 1 Amortization of prior year service costs (2) — — Total before tax 1 1 Tax expense — — Net of tax 1 1 ( 1 ) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ( 2 ) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 15. _________________ SHAREHOLDERS’ EQUITY DIVIDENDS On February 18, 2020, the Company’s Board of Directors approved a quarterly dividend of $0.455 per share, to be paid to holders of the Company’s common stock. Total dividends of approximately $25 million were paid on April 15, 2020 to shareholders of record on April 2, 2020. STOCK REPURCHASE PROGRAM The Company’s Board of Directors has authorized a stock repurchase program (the “Program”) of up to $1.3 billion. On November 5, 2019, the Company’s Board of Directors approved an increase to the Program from $1.3 billion to $1.6 billion. Under the Program, the Company is authorized to repurchase, from time to time, shares of its outstanding common stock on the open market or in privately negotiated transactions. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The Program may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common stock under the Program. The Program has no set expiration date. The Company repurchases its common stock in part to reduce the dilutive effects of stock options and awards, and to improve shareholders’ returns. The Company makes open market purchases of its common stock using general corporate funds. Additionally, the Company may enter into structured stock repurchase agreements with large financial institutions using general corporate funds in order to lower the average cost to acquire shares. The agreements would require the Company to make up-front payments to the counterparty financial institutions, which would result in either the receipt of stock at the beginning of the term of the agreements followed by a share adjustment at the maturity of the agreements, or the receipt of either stock or cash at the maturity of the agreements, depending upon the price of the stock. During the first nine months of 2020, the Company repurchased 1,798,306 shares at an average price of $33.05 for a total cost of $59 million. During the first nine months of 2019, the Company repurchased 4,076,723 shares at an average price of $35.47 for a total cost of $145 million. SUSPENSION OF CAPITAL RETURN PROGRAM On May 5, 2020, due to the unprecedented market conditions and uncertainty caused by COVID-19, the Company suspended the payment of its regular quarterly dividend and stock repurchase program in order to preserve cash and provide additional flexibility in the current environment. The Board of Directors will continue to evaluate the Company’s capital return program based upon customary considerations, including market conditions. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16. _________________ 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. A former owner of the Company’s Dryden, Ontario manufacturing site (the "Dryden Property") operated a chlor-alkali plant during the 1960s and 1970s, during which time mercury and other pollutants were used and discharged into the natural environment. In conjunction with the sale and redevelopment of the Dryden Property, the Province of Ontario (the “Province”) provided a broad indemnity (the "Indemnity") in 1985 to the then purchaser of the Dryden Property and its successors and assigns with respect to the discharge of any pollutant, including mercury, by the historical operators of the Dryden Property. This Indemnity subsequently was assigned to the Company in connection with its 2007 purchase of the Dryden Property. As the current owner of the Dryden Property, the Company is actively engaged with the Province with respect to the management of the historical contamination. The Province issued a Director's order under environmental laws to certain prior owners of the Dryden Property in connection with a nearby waste disposal site that has never been owned by the Company. The Director's order required certain work to be conducted by those prior owners. The prior owners asserted that the Indemnity covered the work required by the Director’s order. Following extensive litigation, the Supreme Court of Canada found, among other things, that the Indemnity covered third-party claims, but not first-party claims, such as the Director's order. In the future, the Province may challenge whether the Company has the benefit of the Indemnity. In addition to the Indemnity, the Company has other recourses relating to the historical contamination. The situation involving the historical contamination is continuing to develop, and the Company cannot predict its outcome. While the Company currently does not believe that it will be required to incur costs that would have a material impact on its results of operations or financial condition, there is no certainty that this is in fact the case. The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: September 30, 2020 $ Balance at beginning of year 35 Additions and other changes 4 Environmental spending (2 ) Effect of foreign currency exchange rate change (1 ) Balance at end of period 36 The U.S. Environmental Protection Agency (the “EPA”) and/or various state agencies have notified the Company that it may be a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund”, and similar state laws with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites, due to possible soil, sediment or groundwater contamination. CONTINGENCIES In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at September 30, 2020, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At September 30, 2020, 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. As of September 30, 2020, the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. GENERAL RISK FACTORS Climate change and air quality 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 repealed the Clean Power Plan and replaced it with the “Affordable Clean Energy” (“ACE”) rule. Unlike the Clean Power Plan, which would have required significant changes across the entire power sector, ACE only requires states to develop plans for efficiency improvements at coal-fired electric utility generating units. The rule has been challenged in the U.S. Court of Appeals for the D.C. Circuit. Regardless of the outcome for the ACE rule, 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 to the other pulp and paper producers located in these provinces. The Government of Canada has established a federal carbon pricing system in provinces that do not already impose a cost on carbon emissions. The Government of Canada has imposed its carbon pricing program for regulating GHG emissions in Ontario, which took effect on January 1, 2019. To reduce GHG emissions and recognize the unique circumstances of the province’s diverse economy, Ontario finalized its own GHG Emission Performance Standards regulation. The Ontario Government has been in discussions with the Canadian Government to replace the federal program in Ontario with its provincial program. The Ontario Government has announced the federal government will accept its program as an alternative to the federal program. Timing for this transition and any additional environmental costs that may result from this effort cannot be reasonably estimated at this time. The EPA proposed to revise its Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”) , or Boiler MACT , in a notice published on August 24, 2020. The proposed rule is a response to two court decisions that remanded certain issues for further review by the EPA, and it includes revisions to 34 different emission limitations that could apply to some of the Company’s facilities. Although the EPA has indicated that a small number of facilities may need to reduce emissions further compared to the current limits, t he Company does not expect its facilities to be disproportionately aff ected compared to other U.S. pulp and paper producers . |
Segment Disclosures
Segment Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 17. _________________ 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. As a result of changes in Domtar’s organization structure, the Company has changed its segment reporting. Starting January 1, 2020, Domtar’s materials business, EAM Corporation, a manufacturer of high quality airlaid and ultrathin laminated cores, previously reported under its Personal Care segment is now presented under its Pulp and Paper segment. Prior period segment results have been restated to the new segment presentation with no significant impact on segment results. There were no changes to the Company’s consolidated sales or operating income. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended For the nine months ended SEGMENT DATA September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 $ $ $ $ Sales by segment Pulp and Paper 899 1,079 2,732 3,342 Personal Care 243 219 738 686 Total for reportable segments 1,142 1,298 3,470 4,028 Intersegment sales (18 ) (15 ) (56 ) (52 ) Consolidated sales 1,124 1,283 3,414 3,976 Sales by product group Communication papers 483 635 1,491 1,963 Specialty and packaging papers 148 159 425 490 Market pulp 242 262 734 812 Absorbent hygiene products 251 227 764 711 Consolidated sales 1,124 1,283 3,414 3,976 Depreciation and amortization Pulp and Paper 56 57 170 174 Personal Care 15 15 44 45 Total for reportable segments 71 72 214 219 Impairment of long-lived assets - Pulp and Paper 111 32 111 32 Impairment of long-lived assets - Personal Care — 1 — 26 Consolidated depreciation and amortization and impairment of long-lived assets 182 105 325 277 Operating (loss) income (1) Pulp and Paper (140 ) 31 (133 ) 237 Personal Care 16 2 54 (24 ) Corporate (12 ) (4 ) (24 ) (35 ) Consolidated operating (loss) income (136 ) 29 (103 ) 178 Interest expense, net 14 12 43 38 Non-service components of net periodic benefit cost (4 ) (2 ) (13 ) (7 ) (Loss) earnings before income taxes and equity loss (146 ) 19 (133 ) 147 Income tax (benefit) expense (55 ) (1 ) (67 ) 28 Equity loss, net of taxes 1 — 2 1 Net (loss) earnings (92 ) 20 (68 ) 118 (1) The Government of Canada created the Canada Emergency Wage Subsidy (“CEWS”) to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. CEWS allows eligible entities to receive a subsidy retroactive to March 15, 2020. The Company qualified and applied for the first seven periods identified under CEWS, from March 15 through September 26, 2020. For the three months ended September 30, 2020, the Company recognized $9 million of income (CDN $12 million) ($8 million in Cost of sales (CDN $10 million) and $1 million in Selling, general and administrative (CDN $2 million)) related to this program. For the nine months ended September 30, 2020, the Company recognized $34 million of income (CDN $46 million) ($29 million in Cost of sales (CDN $38 million) and $5 million in Selling, general and administrative (CDN $8 million)) related to this program. |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | NOTE 18. _________________ SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the Company’s issuance of debt securities that are fully and unconditionally guaranteed by Domtar’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 September 30, 2020 and December 31, 2019, the Statements of Earnings (Loss) and Comprehensive Income (Loss) for the three and nine months ended September 30, 2020 and 2019 and the Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. For the three months ended September 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 918 458 (252 ) 1,124 Operating expenses Cost of sales, excluding depreciation and amortization — 814 349 (252 ) 911 Depreciation and amortization — 49 22 — 71 Selling, general and administrative 2 8 89 — 99 Impairment of long-lived assets — 111 — — 111 Closure and restructuring costs — 64 4 — 68 2 1,046 464 (252 ) 1,260 Operating loss (2 ) (128 ) (6 ) — (136 ) Interest expense (income), net 17 18 (21 ) — 14 Non-service components of net periodic benefit cost — (1 ) (3 ) — (4 ) (Loss) earnings before income taxes and equity loss (19 ) (145 ) 18 — (146 ) Income tax expense (benefit) 59 11 (125 ) — (55 ) Equity loss, net of taxes — — 1 — 1 Share in (loss) earnings of equity accounted investees (14 ) 142 — (128 ) — Net (loss) earnings (92 ) (14 ) 142 (128 ) (92 ) Other comprehensive income 23 16 41 (57 ) 23 Comprehensive (loss) income (69 ) 2 183 (185 ) (69 ) For the nine months ended September 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 2,775 1,342 (703 ) 3,414 Operating expenses Cost of sales, excluding depreciation and amortization — 2,504 1,030 (703 ) 2,831 Depreciation and amortization — 150 64 — 214 Selling, general and administrative 7 80 207 — 294 Impairment of long-lived assets — 111 — — 111 Closure and restructuring costs — 65 4 — 69 Other operating loss (income), net 1 4 (7 ) — (2 ) 8 2,914 1,298 (703 ) 3,517 Operating (loss) income (8 ) (139 ) 44 — (103 ) Interest expense (income), net 49 56 (62 ) — 43 Non-service components of net periodic benefit cost — (5 ) (8 ) — (13 ) (Loss) earnings before income taxes and equity loss (57 ) (190 ) 114 — (133 ) Income tax (benefit) expense (35 ) (89 ) 57 — (67 ) Equity loss, net of taxes — 1 1 — 2 Share in (loss) earnings of equity accounted investees (46 ) 56 — (10 ) — Net (loss) earnings (68 ) (46 ) 56 (10 ) (68 ) Other comprehensive (loss) income (16 ) (27 ) 8 19 (16 ) Comprehensive (loss) income (84 ) (73 ) 64 9 (84 ) For the three months ended September 30, 2019 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,060 459 (236 ) 1,283 Operating expenses Cost of sales, excluding depreciation and amortization — 891 386 (236 ) 1,041 Depreciation and amortization — 51 21 — 72 Selling, general and administrative — 59 35 — 94 Impairment of long-lived assets — 33 — — 33 Closure and restructuring costs — 11 — — 11 Other operating loss, net — 1 2 — 3 — 1,046 444 (236 ) 1,254 Operating income — 14 15 — 29 Interest expense (income), net 18 18 (24 ) — 12 Non-service components of net periodic benefit cost — 1 (3 ) — (2 ) (Loss) earnings before income taxes (18 ) (5 ) 42 — 19 Income tax (benefit) expense (4 ) (2 ) 5 — (1 ) Share in earnings of equity accounted investees 34 37 — (71 ) — Net earnings 20 34 37 (71 ) 20 Other comprehensive loss (38 ) (37 ) (33 ) 70 (38 ) Comprehensive (loss) income (18 ) (3 ) 4 (1 ) (18 ) For the nine months ended September 30, 2019 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,268 1,478 (770 ) 3,976 Operating expenses Cost of sales, excluding depreciation and amortization — 2,746 1,196 (770 ) 3,172 Depreciation and amortization — 155 64 — 219 Selling, general and administrative 7 170 145 — 322 Impairment of long-lived assets — 58 — — 58 Closure and restructuring costs — 21 2 — 23 Other operating (income) loss, net — (3 ) 7 — 4 7 3,147 1,414 (770 ) 3,798 Operating (loss) income (7 ) 121 64 — 178 Interest expense (income), net 52 60 (74 ) — 38 Non-service components of net periodic benefit cost — 1 (8 ) — (7 ) (Loss) earnings before income taxes and equity loss (59 ) 60 146 — 147 Income tax (benefit) expense (13 ) 12 29 — 28 Equity loss, net of taxes — — 1 — 1 Share in earnings of equity accounted investees 164 116 — (280 ) — Net earnings 118 164 116 (280 ) 118 Other comprehensive income (loss) 5 11 (8 ) (3 ) 5 Comprehensive income 123 175 108 (283 ) 123 September 30, 2020 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 129 9 80 — 218 Receivables — 146 397 — 543 Inventories — 517 247 — 764 Prepaid expenses 5 20 11 — 36 Income and other taxes receivable 69 30 22 (77 ) 44 Intercompany accounts 594 661 311 (1,566 ) — Total current assets 797 1,383 1,068 (1,643 ) 1,605 Property, plant and equipment, net — 1,528 850 — 2,378 Operating lease right-of-use assets — 57 15 — 72 Intangible assets, net — 237 336 — 573 Investments in affiliates 3,555 2,505 — (6,060 ) — Intercompany long-term advances 5 1 1,503 (1,509 ) — Other assets 14 23 139 (13 ) 163 Total assets 4,371 5,734 3,911 (9,225 ) 4,791 Liabilities and shareholders' equity Current liabilities Trade and other payables 19 379 228 — 626 Intercompany accounts 437 359 770 (1,566 ) — Income and other taxes payable 26 17 71 (77 ) 37 Operating lease liabilities due within one year — 21 6 — 27 Long-term debt due within one year 12 — 1 — 13 Total current liabilities 494 776 1,076 (1,643 ) 703 Long-term debt 1,077 — 9 — 1,086 Operating lease liabilities — 49 9 — 58 Intercompany long-term loans 563 945 1 (1,509 ) — Deferred income taxes and other 4 252 170 (13 ) 413 Other liabilities and deferred credits 22 157 141 — 320 Shareholders' equity 2,211 3,555 2,505 (6,060 ) 2,211 Total liabilities and shareholders' equity 4,371 5,734 3,911 (9,225 ) 4,791 December 31, 2019 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 1 11 49 — 61 Receivables — 146 431 — 577 Inventories — 543 243 — 786 Prepaid expenses 5 17 11 — 33 Income and other taxes receivable 34 — 27 — 61 Intercompany accounts 538 547 237 (1,322 ) — Total current assets 578 1,264 998 (1,322 ) 1,518 Property, plant and equipment, net — 1,689 878 — 2,567 Operating lease right-of-use assets — 63 18 — 81 Intangible assets, net — 245 328 — 573 Investments in affiliates 3,627 2,493 — (6,120 ) — Intercompany long-term advances 5 1 1,482 (1,488 ) — Other assets 14 30 131 (11 ) 164 Total assets 4,224 5,785 3,835 (8,941 ) 4,903 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 9 — — 9 Trade and other payables 57 390 258 — 705 Intercompany accounts 344 299 679 (1,322 ) — Income and other taxes payable 1 12 10 — 23 Operating lease liabilities due within one year — 21 7 — 28 Long-term debt due within one year — — 1 — 1 Total current liabilities 402 731 955 (1,322 ) 766 Long-term debt 873 — 65 — 938 Operating lease liabilities — 58 11 — 69 Intercompany long-term loans 541 946 1 (1,488 ) — Deferred income taxes and other — 324 166 (11 ) 479 Other liabilities and deferred credits 32 99 144 — 275 Shareholders' equity 2,376 3,627 2,493 (6,120 ) 2,376 Total liabilities and shareholders' equity 4,224 5,785 3,835 (8,941 ) 4,903 For the nine months ended September 30, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (68 ) (46 ) 56 (10 ) (68 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings 41 81 212 10 344 Cash flows (used for) provided from operating activities (27 ) 35 268 — 276 Investing activities Additions to property, plant and equipment — (75 ) (55 ) — (130 ) Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows used for investing activities — (75 ) (85 ) — (160 ) Financing activities Dividend payments (51 ) — — — (51 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility (80 ) — — — (80 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (80 ) — (80 ) Issuance of long-term debt 300 — — — 300 Repayments of long-term debt (3 ) — — — (3 ) Increase in long-term advances to related parties — — (100 ) 100 — Decrease in long-term advances to related parties 52 48 — (100 ) — Other (4 ) — 1 — (3 ) Cash flows provided from (used for) financing activities 155 38 (154 ) — 39 Net increase (decrease) in cash and cash equivalents 128 (2 ) 29 — 155 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 129 9 80 — 218 For the nine months ended September 30, 2019 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 118 164 116 (280 ) 118 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (20 ) (122 ) 26 280 164 Cash flows from operating activities 98 42 142 — 282 Investing activities Additions to property, plant and equipment — (92 ) (65 ) — (157 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Cash flows used for investing activities — (91 ) (65 ) — (156 ) Financing activities Dividend payments (83 ) — — — (83 ) Stock repurchase (139 ) — — — (139 ) Net change in bank indebtedness 5 1 1 (5 ) 2 Change in revolving credit facility 45 — — — 45 Proceeds from receivables securitization facility — — 150 — 150 Repayments of receivables securitization facility — — (110 ) — (110 ) Repayments of long-term debt — — (1 ) — (1 ) Increase in long-term advances to related parties — — (127 ) 127 — Decrease in long-term advances to related parties 75 52 — (127 ) — Other (1 ) — — — (1 ) Cash flows (used for) provided from financing activities (98 ) 53 (87 ) (5 ) (137 ) Net increase (decrease) in cash and cash equivalents — 4 (10 ) (5 ) (11 ) Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of period — — 111 — 111 Cash and cash equivalents at end of period — 4 99 (5 ) 98 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Implementation Costs for Cloud Computing Arrangements | IMPLEMENTATION COSTS FOR CLOUD COMPUTING ARRANGEMENTS In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The Company adopted the new guidance on January 1, 2020 with no significant impact on the consolidated financial statements. |
Receivables | RECEIVABLES In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses The Company adopted the new guidance on January 1, 2020 with no significant impact on the consolidated financial statements. |
Income Taxes | INCOME TAXES In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Future Accounting Changes [Member] | |
Transition Away from Interbank Offered Rates | FUTURE ACCOUNTING CHANGES TRANSITION AWAY FROM INTERBANK OFFERED RATES On March 12, 2020, the FASB issued ASU 2020-04, “ Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in the ASU are elective and apply to entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company has begun its impact assessment and while its evaluation of this guidance is in the early stages, the Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Purchase Price Allocation | The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Inventories $ 11 Property, plant and equipment 23 Operating lease right-of-use assets 2 Total assets 36 Less: Assumed Liabilities 6 Fair value of net assets acquired at the date of acquisition 30 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments for Natural Gas Contracts Outstanding | The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2020 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBtu (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2020 (1) 2,384,843 $ 7 35% 2021 9,270,000 $ 27 39% 2022 9,270,000 $ 25 37% 2023 4,210,000 $ 12 16% (1) Represents the remaining three months of 2020 (2) MMBtu: Millions of British thermal units |
Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of September 30, 2020 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate CAD/USD Pulp and Paper 2020 (1) 226 CAD 95% 1 USD = 1.3259 1 USD = 1.3426 CAD/USD Pulp and Paper 2021 721 CAD 76% 1 USD = 1.3412 1 USD = 1.3558 CAD/USD Pulp and Paper 2022 304 CAD 32% 1 USD = 1.3606 1 USD = 1.3606 (1) |
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 September 30, 2020 and December 31, 2019, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: September 30, 2020 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 10 — 10 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 18 — 18 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 2 — 2 — (a) Other liabilities and deferred credits Total Liabilities 10 — 10 — Other instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 13 13 — — Other liabilities and deferred credits Equity swap contracts 1 1 — — Other liabilities and deferred credits Long-term debt 1,192 — 1,192 — (b) Long-term debt Fair Value of financial instruments at: December 31, 2019 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 4 — 4 — (a) Prepaid expenses Currency derivatives 4 — 4 — (a) Other assets Total Assets 8 — 8 — Liabilities derivatives Currency derivatives 2 — 2 — (a) Trade and other payables Natural gas swap contracts 9 — 9 — (a) Trade and other payables Natural gas swap contracts 8 — 8 — (a) Other liabilities and deferred credits Total Liabilities 19 — 19 — Other Instruments: Stock-based compensation - liability awards 7 7 — — Trade and other payables Stock-based compensation - liability awards 18 18 — — Other liabilities and deferred credits Long-term debt 1,030 — 1,030 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Foreign currency forward and option contracts are valued using standard valuation models. 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 September 30, 2020 and December 31, 2019. The carrying value of the Company’s long-term debt is $1,099 million and $939 million at September 30, 2020 and December 31, 2019, respectively. |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted (Loss) Earnings Per Common Share | The following table provides the reconciliation between basic and diluted (loss) earnings per common share: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Net (loss) earnings $ (92 ) $ 20 $ (68 ) $ 118 Weighted average number of common shares outstanding (millions) 55.2 61.5 55.5 62.5 Effect of dilutive securities (millions) — 0.2 — 0.2 Weighted average number of diluted common shares outstanding (millions) 55.2 61.7 55.5 62.7 Basic net (loss) earnings per common share (in dollars) $ (1.67 ) $ 0.33 $ (1.23 ) $ 1.89 Diluted $ (1.67 ) $ 0.32 $ (1.23 ) $ 1.88 |
Securities that Could Potentially Dilute (Loss) Basic Earnings Per Common Share in Future | The following table provides the securities that could potentially dilute basic (loss) earnings per common share in the future, but were not included in the computation of diluted (loss) earnings per common share because to do so would have been anti-dilutive: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Options to purchase common shares 407,662 398,869 407,662 325,757 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2020 September 30, 2020 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 — 21 1 Interest expense 10 — 30 1 Expected return on plan assets (17 ) — (51 ) — Amortization of net actuarial loss (gain) 3 — 7 (1 ) Curtailment loss (1) 2 — 2 — Amortization of prior year service costs — — 1 — Net periodic benefit cost 5 — 10 1 (1) Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2019 September 30, 2019 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 6 — 21 1 Interest expense 14 — 41 1 Expected return on plan assets (19 ) — (59 ) — Amortization of net actuarial loss (gain) 2 — 7 (1 ) Amortization of prior year service costs 1 — 4 — Net periodic benefit cost 4 — 14 1 |
Other Operating Loss (Income)_2
Other Operating Loss (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating (Income) Loss, Net | The Company’s other operating loss (income), net includes the following: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Bad debt expense — 1 5 2 Environmental provision — 1 1 2 Non-production agreement terminated — — (7 ) — Foreign exchange loss 1 1 1 3 Other (1 ) — (2 ) (3 ) Other operating loss (income), net — 3 (2 ) 4 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: September 30, December 31, 2020 2019 $ $ Work in process and finished goods 405 401 Raw materials 147 153 Operating and maintenance supplies 212 232 764 786 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 $ $ $ $ Operating lease expense 8 8 24 22 Finance lease expense: Amortization of right-of-use assets 1 1 1 1 Interest on lease liabilities — — — — Total finance lease expense 1 1 1 1 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the nine months ended September 30, September 30, 2020 2019 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 25 23 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 1 1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 7 24 Finance leases — — |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: September 30, December 31, 2020 2019 $ $ Operating leases Operating leases right-of-use assets 72 81 Lease liabilities due within one year 27 28 Operating lease liabilities 58 69 85 97 Finance leases Property, plant and equipment 14 15 Accumulated depreciation (7 ) (7 ) 7 8 Long-term debt due within one year 1 1 Long-term debt 8 9 9 10 Weighted-average remaining lease term Operating leases 4.5 years 4.9 years Finance leases 9.3 years 10 years Weighted-average discount rate Operating leases 4.5 % 4.6 % Finance leases 6.3 % 6.7 % |
Summary of Maturities of Lease Liabilities | Mat urities of lease liabilities September 3 0 , 20 20 were as follows: Operating leases Finance leases September 30, September 30, 2020 2020 $ $ 2020 (1) 7 — 2021 26 2 2022 21 2 2023 16 1 2024 9 1 Thereafter 15 6 Total lease payments 94 12 Less: Imputed interest 9 3 Total lease liabilities 85 9 (1) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: September 30, 2020 December 31, 2019 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 388 (123 ) 265 380 (108 ) 272 Technology 7 – 20 8 (5 ) 3 8 (5 ) 3 Non-Compete 9 1 (1 ) — 1 (1 ) — License rights 12 28 (17 ) 11 29 (16 ) 13 428 (147 ) 281 421 (131 ) 290 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 242 — 242 235 — 235 License rights 6 — 6 6 — 6 Catalog rights 40 — 40 38 — 38 Total 720 (147 ) 573 704 (131 ) 573 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2020 2021 2022 2023 2024 $ $ $ $ $ Amortization expense related to intangible assets 21 (1) 21 21 20 20 (1) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2018 (24 ) (231 ) 11 (223 ) (467 ) Natural gas swap contracts (10 ) N/A N/A N/A (10 ) Currency options 5 N/A N/A N/A 5 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A 1 1 N/A 2 Foreign currency items N/A N/A N/A 21 21 Other comprehensive income before reclassifications 11 1 1 21 34 Amounts reclassified from Accumulated other comprehensive loss 8 33 (1 ) — 40 Net current period other comprehensive income 19 34 — 21 74 Balance at December 31, 2019 (5 ) (197 ) 11 (202 ) (393 ) Natural gas swap contracts 3 N/A N/A N/A 3 Currency options (1 ) N/A N/A N/A (1 ) Foreign exchange forward contracts (2 ) N/A N/A N/A (2 ) Net loss N/A (41 ) — N/A (41 ) Foreign currency items N/A N/A N/A 5 5 Other comprehensive (loss) income before reclassifications — (41 ) — 5 (36 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 (1 ) — 20 Net current period other comprehensive income (loss) 14 (34 ) (1 ) 5 (16 ) Balance at September 30, 2020 9 (231 ) 10 (197 ) (409 ) (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 tables present reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2020 and 2019: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss For the three months ended September 30, 2020 September 30, 2019 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) (2 ) (2 ) Currency options and forwards (1) — (2 ) Total before tax (2 ) (4 ) Tax benefit 1 1 Net of tax (1 ) (3 ) Amortization of defined benefit pension items Amortization of net actuarial loss (2) (3 ) (2 ) Curtailment loss (2) (2 ) — Amortization of prior year service costs (2) — (1 ) Total before tax (5 ) (3 ) Tax benefit 2 1 Net of tax (3 ) (2 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) — — Amortization of prior year service costs (2) — — Total before tax — — Tax expense — — Net of tax — — Amounts reclassified from Accumulated other comprehensive loss For the nine months ended September 30, 2020 September 30, 2019 $ $ Net derivatives losses on cash flow hedge Natural gas swap contracts (1) (10 ) (2 ) Currency options and forwards (1) (9 ) (5 ) Total before tax (19 ) (7 ) Tax benefit 5 2 Net of tax (14 ) (5 ) Amortization of defined benefit pension items Amortization of net actuarial loss (2) (7 ) (7 ) Curtailment loss (2) (2 ) — Amortization of prior year service costs (2) (1 ) (4 ) Total before tax (10 ) (11 ) Tax benefit 3 3 Net of tax (7 ) (8 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) 1 1 Amortization of prior year service costs (2) — — Total before tax 1 1 Tax expense — — Net of tax 1 1 ( 1 ) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ( 2 ) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 $ Balance at beginning of year 35 Additions and other changes 4 Environmental spending (2 ) Effect of foreign currency exchange rate change (1 ) Balance at end of period 36 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
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: For the three months ended For the nine months ended SEGMENT DATA September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 $ $ $ $ Sales by segment Pulp and Paper 899 1,079 2,732 3,342 Personal Care 243 219 738 686 Total for reportable segments 1,142 1,298 3,470 4,028 Intersegment sales (18 ) (15 ) (56 ) (52 ) Consolidated sales 1,124 1,283 3,414 3,976 Sales by product group Communication papers 483 635 1,491 1,963 Specialty and packaging papers 148 159 425 490 Market pulp 242 262 734 812 Absorbent hygiene products 251 227 764 711 Consolidated sales 1,124 1,283 3,414 3,976 Depreciation and amortization Pulp and Paper 56 57 170 174 Personal Care 15 15 44 45 Total for reportable segments 71 72 214 219 Impairment of long-lived assets - Pulp and Paper 111 32 111 32 Impairment of long-lived assets - Personal Care — 1 — 26 Consolidated depreciation and amortization and impairment of long-lived assets 182 105 325 277 Operating (loss) income (1) Pulp and Paper (140 ) 31 (133 ) 237 Personal Care 16 2 54 (24 ) Corporate (12 ) (4 ) (24 ) (35 ) Consolidated operating (loss) income (136 ) 29 (103 ) 178 Interest expense, net 14 12 43 38 Non-service components of net periodic benefit cost (4 ) (2 ) (13 ) (7 ) (Loss) earnings before income taxes and equity loss (146 ) 19 (133 ) 147 Income tax (benefit) expense (55 ) (1 ) (67 ) 28 Equity loss, net of taxes 1 — 2 1 Net (loss) earnings (92 ) 20 (68 ) 118 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | For the three months ended September 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 918 458 (252 ) 1,124 Operating expenses Cost of sales, excluding depreciation and amortization — 814 349 (252 ) 911 Depreciation and amortization — 49 22 — 71 Selling, general and administrative 2 8 89 — 99 Impairment of long-lived assets — 111 — — 111 Closure and restructuring costs — 64 4 — 68 2 1,046 464 (252 ) 1,260 Operating loss (2 ) (128 ) (6 ) — (136 ) Interest expense (income), net 17 18 (21 ) — 14 Non-service components of net periodic benefit cost — (1 ) (3 ) — (4 ) (Loss) earnings before income taxes and equity loss (19 ) (145 ) 18 — (146 ) Income tax expense (benefit) 59 11 (125 ) — (55 ) Equity loss, net of taxes — — 1 — 1 Share in (loss) earnings of equity accounted investees (14 ) 142 — (128 ) — Net (loss) earnings (92 ) (14 ) 142 (128 ) (92 ) Other comprehensive income 23 16 41 (57 ) 23 Comprehensive (loss) income (69 ) 2 183 (185 ) (69 ) For the nine months ended September 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 2,775 1,342 (703 ) 3,414 Operating expenses Cost of sales, excluding depreciation and amortization — 2,504 1,030 (703 ) 2,831 Depreciation and amortization — 150 64 — 214 Selling, general and administrative 7 80 207 — 294 Impairment of long-lived assets — 111 — — 111 Closure and restructuring costs — 65 4 — 69 Other operating loss (income), net 1 4 (7 ) — (2 ) 8 2,914 1,298 (703 ) 3,517 Operating (loss) income (8 ) (139 ) 44 — (103 ) Interest expense (income), net 49 56 (62 ) — 43 Non-service components of net periodic benefit cost — (5 ) (8 ) — (13 ) (Loss) earnings before income taxes and equity loss (57 ) (190 ) 114 — (133 ) Income tax (benefit) expense (35 ) (89 ) 57 — (67 ) Equity loss, net of taxes — 1 1 — 2 Share in (loss) earnings of equity accounted investees (46 ) 56 — (10 ) — Net (loss) earnings (68 ) (46 ) 56 (10 ) (68 ) Other comprehensive (loss) income (16 ) (27 ) 8 19 (16 ) Comprehensive (loss) income (84 ) (73 ) 64 9 (84 ) For the three months ended September 30, 2019 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,060 459 (236 ) 1,283 Operating expenses Cost of sales, excluding depreciation and amortization — 891 386 (236 ) 1,041 Depreciation and amortization — 51 21 — 72 Selling, general and administrative — 59 35 — 94 Impairment of long-lived assets — 33 — — 33 Closure and restructuring costs — 11 — — 11 Other operating loss, net — 1 2 — 3 — 1,046 444 (236 ) 1,254 Operating income — 14 15 — 29 Interest expense (income), net 18 18 (24 ) — 12 Non-service components of net periodic benefit cost — 1 (3 ) — (2 ) (Loss) earnings before income taxes (18 ) (5 ) 42 — 19 Income tax (benefit) expense (4 ) (2 ) 5 — (1 ) Share in earnings of equity accounted investees 34 37 — (71 ) — Net earnings 20 34 37 (71 ) 20 Other comprehensive loss (38 ) (37 ) (33 ) 70 (38 ) Comprehensive (loss) income (18 ) (3 ) 4 (1 ) (18 ) For the nine months ended September 30, 2019 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,268 1,478 (770 ) 3,976 Operating expenses Cost of sales, excluding depreciation and amortization — 2,746 1,196 (770 ) 3,172 Depreciation and amortization — 155 64 — 219 Selling, general and administrative 7 170 145 — 322 Impairment of long-lived assets — 58 — — 58 Closure and restructuring costs — 21 2 — 23 Other operating (income) loss, net — (3 ) 7 — 4 7 3,147 1,414 (770 ) 3,798 Operating (loss) income (7 ) 121 64 — 178 Interest expense (income), net 52 60 (74 ) — 38 Non-service components of net periodic benefit cost — 1 (8 ) — (7 ) (Loss) earnings before income taxes and equity loss (59 ) 60 146 — 147 Income tax (benefit) expense (13 ) 12 29 — 28 Equity loss, net of taxes — — 1 — 1 Share in earnings of equity accounted investees 164 116 — (280 ) — Net earnings 118 164 116 (280 ) 118 Other comprehensive income (loss) 5 11 (8 ) (3 ) 5 Comprehensive income 123 175 108 (283 ) 123 |
Condensed Consolidating Balance Sheet | September 30, 2020 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 129 9 80 — 218 Receivables — 146 397 — 543 Inventories — 517 247 — 764 Prepaid expenses 5 20 11 — 36 Income and other taxes receivable 69 30 22 (77 ) 44 Intercompany accounts 594 661 311 (1,566 ) — Total current assets 797 1,383 1,068 (1,643 ) 1,605 Property, plant and equipment, net — 1,528 850 — 2,378 Operating lease right-of-use assets — 57 15 — 72 Intangible assets, net — 237 336 — 573 Investments in affiliates 3,555 2,505 — (6,060 ) — Intercompany long-term advances 5 1 1,503 (1,509 ) — Other assets 14 23 139 (13 ) 163 Total assets 4,371 5,734 3,911 (9,225 ) 4,791 Liabilities and shareholders' equity Current liabilities Trade and other payables 19 379 228 — 626 Intercompany accounts 437 359 770 (1,566 ) — Income and other taxes payable 26 17 71 (77 ) 37 Operating lease liabilities due within one year — 21 6 — 27 Long-term debt due within one year 12 — 1 — 13 Total current liabilities 494 776 1,076 (1,643 ) 703 Long-term debt 1,077 — 9 — 1,086 Operating lease liabilities — 49 9 — 58 Intercompany long-term loans 563 945 1 (1,509 ) — Deferred income taxes and other 4 252 170 (13 ) 413 Other liabilities and deferred credits 22 157 141 — 320 Shareholders' equity 2,211 3,555 2,505 (6,060 ) 2,211 Total liabilities and shareholders' equity 4,371 5,734 3,911 (9,225 ) 4,791 December 31, 2019 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 1 11 49 — 61 Receivables — 146 431 — 577 Inventories — 543 243 — 786 Prepaid expenses 5 17 11 — 33 Income and other taxes receivable 34 — 27 — 61 Intercompany accounts 538 547 237 (1,322 ) — Total current assets 578 1,264 998 (1,322 ) 1,518 Property, plant and equipment, net — 1,689 878 — 2,567 Operating lease right-of-use assets — 63 18 — 81 Intangible assets, net — 245 328 — 573 Investments in affiliates 3,627 2,493 — (6,120 ) — Intercompany long-term advances 5 1 1,482 (1,488 ) — Other assets 14 30 131 (11 ) 164 Total assets 4,224 5,785 3,835 (8,941 ) 4,903 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 9 — — 9 Trade and other payables 57 390 258 — 705 Intercompany accounts 344 299 679 (1,322 ) — Income and other taxes payable 1 12 10 — 23 Operating lease liabilities due within one year — 21 7 — 28 Long-term debt due within one year — — 1 — 1 Total current liabilities 402 731 955 (1,322 ) 766 Long-term debt 873 — 65 — 938 Operating lease liabilities — 58 11 — 69 Intercompany long-term loans 541 946 1 (1,488 ) — Deferred income taxes and other — 324 166 (11 ) 479 Other liabilities and deferred credits 32 99 144 — 275 Shareholders' equity 2,376 3,627 2,493 (6,120 ) 2,376 Total liabilities and shareholders' equity 4,224 5,785 3,835 (8,941 ) 4,903 |
Condensed Consolidating Statement of Cash Flows | For the nine months ended September 30, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (68 ) (46 ) 56 (10 ) (68 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings 41 81 212 10 344 Cash flows (used for) provided from operating activities (27 ) 35 268 — 276 Investing activities Additions to property, plant and equipment — (75 ) (55 ) — (130 ) Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows used for investing activities — (75 ) (85 ) — (160 ) Financing activities Dividend payments (51 ) — — — (51 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility (80 ) — — — (80 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (80 ) — (80 ) Issuance of long-term debt 300 — — — 300 Repayments of long-term debt (3 ) — — — (3 ) Increase in long-term advances to related parties — — (100 ) 100 — Decrease in long-term advances to related parties 52 48 — (100 ) — Other (4 ) — 1 — (3 ) Cash flows provided from (used for) financing activities 155 38 (154 ) — 39 Net increase (decrease) in cash and cash equivalents 128 (2 ) 29 — 155 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 129 9 80 — 218 For the nine months ended September 30, 2019 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 118 164 116 (280 ) 118 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (20 ) (122 ) 26 280 164 Cash flows from operating activities 98 42 142 — 282 Investing activities Additions to property, plant and equipment — (92 ) (65 ) — (157 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Cash flows used for investing activities — (91 ) (65 ) — (156 ) Financing activities Dividend payments (83 ) — — — (83 ) Stock repurchase (139 ) — — — (139 ) Net change in bank indebtedness 5 1 1 (5 ) 2 Change in revolving credit facility 45 — — — 45 Proceeds from receivables securitization facility — — 150 — 150 Repayments of receivables securitization facility — — (110 ) — (110 ) Repayments of long-term debt — — (1 ) — (1 ) Increase in long-term advances to related parties — — (127 ) 127 — Decrease in long-term advances to related parties 75 52 — (127 ) — Other (1 ) — — — (1 ) Cash flows (used for) provided from financing activities (98 ) 53 (87 ) (5 ) (137 ) Net increase (decrease) in cash and cash equivalents — 4 (10 ) (5 ) (11 ) Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of period — — 111 — 111 Cash and cash equivalents at end of period — 4 99 (5 ) 98 |
Acquisition of Business - Addit
Acquisition of Business - Additional Information (Detail) - USD ($) $ in Millions | Apr. 27, 2020 | Sep. 30, 2020 |
Business Acquisition [Line Items] | ||
Purchase price | $ 30 | |
Appvion Operations, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 20 |
Acquisition of Business - Sched
Acquisition of Business - Schedule of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Operating lease right-of-use assets | $ 72 | $ 81 |
Appvion Operations, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Inventories | 11 | |
Property, plant and equipment | 23 | |
Operating lease right-of-use assets | 2 | |
Total assets | 36 | |
Less: Assumed Liabilities | 6 | |
Fair value of net assets acquired at the date of acquisition | $ 30 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020shares | Sep. 30, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | |
Derivative [Line Items] | |||
Number of major customers | Customer | 2 | 2 | |
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 24 months | ||
Equity Total Return Swap Agreement [Member] | |||
Derivative [Line Items] | |||
Number of common shares covered in swap agreement | shares | 500,000 | ||
Maturity date of swap agreement | Mar. 4, 2022 | ||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 39 months | ||
Foreign Currency Investment [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 3 years | ||
Natural Gas Swap Contracts [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | $ (2) | ||
Natural Gas Swap Contracts [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss will be recognized upon maturity of derivatives | (1) | ||
Currency Derivatives [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 10 | ||
Currency Derivatives [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 5 | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | 62 | $ 66 | |
Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ 55 | $ 65 | |
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 | 11.00% | 11.00% | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Maximum percentage of receivables a single customer represents | 10.00% | 11.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Sep. 30, 2020USD ($)MMBTU |
2020 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 2,384,843 |
Notional contractual value under derivative contracts | $ | $ 7,000,000 |
Percentage of forecasted purchases under derivative contracts | 35.00% |
2021 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 9,270,000 |
Notional contractual value under derivative contracts | $ | $ 27,000,000 |
Percentage of forecasted purchases under derivative contracts | 39.00% |
2022 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 9,270,000 |
Notional contractual value under derivative contracts | $ | $ 25,000,000 |
Percentage of forecasted purchases under derivative contracts | 37.00% |
2023 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 4,210,000 |
Notional contractual value under derivative contracts | $ | $ 12,000,000 |
Percentage of forecasted purchases under derivative contracts | 16.00% |
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] | 9 Months Ended |
Sep. 30, 2020CAD ($) | |
CAD/USD Denominated Notional Contractual Value For 2020 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 226,000,000 |
Percentage of forecasted net exposures under contracts | 95.00% |
Currency exposure hedged, Average Protection rate | 1.3259 |
Currency exposure hedged, Average Obligation rate | 1.3426 |
CAD/USD Denominated Notional Contractual Value For 2021 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 721,000,000 |
Percentage of forecasted net exposures under contracts | 76.00% |
Currency exposure hedged, Average Protection rate | 1.3412 |
Currency exposure hedged, Average Obligation rate | 1.3558 |
CAD/USD Denominated Notional Contractual Value For 2022 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 304,000,000 |
Percentage of forecasted net exposures under contracts | 32.00% |
Currency exposure hedged, Average Protection rate | 1.3606 |
Currency exposure hedged, Average Obligation rate | 1.3606 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total Assets | $ 18 | $ 8 |
Total Liabilities | 10 | 19 |
Long-term debt | 1,192 | 1,030 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | 7 |
Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 13 | 18 |
Equity swap contracts | 1 | |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 10 | 4 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 4 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 2 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | 9 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | 8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | 7 |
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 | 13 | 18 |
Equity swap contracts | 1 | |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 18 | 8 |
Total Liabilities | 10 | 19 |
Long-term debt | 1,192 | 1,030 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 10 | 4 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | 4 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 2 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | 9 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 2 | $ 8 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 1,099 | $ 939 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share - Reconciliation Between Basic and Diluted (Loss) Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net (loss) earnings | $ (92) | $ 20 | $ (68) | $ 118 |
Weighted average number of common shares outstanding (millions) | 55.2 | 61.5 | 55.5 | 62.5 |
Effect of dilutive securities (millions) | 0.2 | 0.2 | ||
Weighted average number of diluted common shares outstanding (millions) | 55.2 | 61.7 | 55.5 | 62.7 |
Basic net (loss) earnings per common share (in dollars) | $ (1.67) | $ 0.33 | $ (1.23) | $ 1.89 |
Diluted net (loss) earnings per common share (in dollars) | $ (1.67) | $ 0.32 | $ (1.23) | $ 1.88 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share - Securities that Could Potentially Dilute (Loss) Basic Earnings Per Common Share in Future (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Options to purchase common shares | 407,662 | 398,869 | 407,662 | 325,757 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension expense | $ 11 | $ 10 | $ 32 | $ 33 |
Pension Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | 8 | 7 | 12 | 14 |
Other Post-Retirement Benefit Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | $ 1 | $ 1 | $ 3 | $ 3 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment loss | $ 2 | |||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | $ 6 | $ 21 | $ 21 |
Interest expense | 10 | 14 | 30 | 41 |
Expected return on plan assets | (17) | (19) | (51) | (59) |
Amortization of net actuarial loss (gain) | 3 | 2 | 7 | 7 |
Curtailment loss | 2 | 2 | ||
Amortization of prior year service costs | 1 | 1 | 4 | |
Net periodic benefit cost | $ 5 | $ 4 | 10 | 14 |
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | ||
Interest expense | 1 | 1 | ||
Amortization of net actuarial loss (gain) | (1) | (1) | ||
Net periodic benefit cost | $ 1 | $ 1 |
Pension Plans and Other Post-_5
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans Parenthetical (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Curtailment loss | $ 2 |
Other Operating Loss (Income)_3
Other Operating Loss (Income), Net - Components of Other Operating Loss (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Income And Expenses [Abstract] | ||||
Bad debt expense | $ 1 | $ 5 | $ 2 | |
Environmental provision | 1 | 1 | 2 | |
Non-production agreement terminated | (7) | |||
Foreign exchange loss | $ 1 | 1 | 1 | 3 |
Other | $ (1) | (2) | (3) | |
Other operating loss (income), net | $ 3 | $ (2) | $ 4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (55) | $ (1) | $ (67) | $ 28 |
Current income tax expense (benefit) | (7) | (3) | (7) | 27 |
Deferred income tax expense (benefit) | (48) | $ 2 | (60) | 1 |
Income tax (refunds) payments, net of refunds (payments) | $ (1) | $ (25) | $ 55 | |
Effective income tax rate | 38.00% | (5.00%) | 50.00% | 19.00% |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 405 | $ 401 |
Raw materials | 147 | 153 |
Operating and maintenance supplies | 212 | 232 |
Total inventories | $ 764 | $ 786 |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Lessee Lease Description [Line Items] | |
Leases, terminable lease term | 1 year |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, remaining lease term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, remaining lease term | 12 years |
Leases, extendable lease term | 10 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 8 | $ 8 | $ 24 | $ 22 |
Finance lease expense: | ||||
Amortization of right-of-use assets | 1 | 1 | 1 | 1 |
Total finance lease expense | $ 1 | $ 1 | $ 1 | $ 1 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 25 | $ 23 |
Operating cash flows from finance leases | 1 | 1 |
Financing cash flows from finance leases | 1 | 1 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 7 | $ 24 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating leases | ||
Operating lease right-of-use assets | $ 72 | $ 81 |
Lease liabilities due within one year | 27 | 28 |
Operating lease liabilities | 58 | 69 |
Operating lease liabilities, total | 85 | 97 |
Finance leases | ||
Property, plant and equipment | 14 | 15 |
Accumulated depreciation | (7) | (7) |
Property, plant and equipment, net | $ 7 | $ 8 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Long-term debt due within one year | $ 1 | $ 1 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Long-term debt | $ 8 | $ 9 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance leases liabilities, total | $ 9 | $ 10 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 6 months | 4 years 10 months 24 days |
Finance leases | 9 years 3 months 18 days | 10 years |
Weighted-average discount rate | ||
Operating leases | 4.50% | 4.60% |
Finance leases | 6.30% | 6.70% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating leases, 2020 | $ 7 | |
Operating leases, 2021 | 26 | |
Operating leases, 2022 | 21 | |
Operating leases, 2023 | 16 | |
Operating leases, 2024 | 9 | |
Operating leases, Thereafter | 15 | |
Operating leases, Total lease payments | 94 | |
Operating leases, Imputed interest | 9 | |
Operating leases, Total lease liabilities | 85 | $ 97 |
Finance leases, 2021 | 2 | |
Finance leases, 2022 | 2 | |
Finance leases, 2023 | 1 | |
Finance leases, 2024 | 1 | |
Finance leases, Thereafter | 6 | |
Finance leases, Total lease payments | 12 | |
Finance leases, Imputed interest | 3 | |
Finance leases, Total lease liabilities | $ 9 | $ 10 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 428 | $ 421 |
Accumulated amortization | (147) | (131) |
Finite lived intangible assets net | 281 | 290 |
Total, Gross carrying amount | 720 | 704 |
Intangible assets, net of amortization | 573 | 573 |
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 | 242 | 235 |
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 | $ 40 | 38 |
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) |
Finite lived intangible assets net | 2 | 2 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 388 | 380 |
Accumulated amortization | (123) | (108) |
Finite lived intangible assets net | $ 265 | 272 |
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 | (5) | (5) |
Finite lived intangible assets net | $ 3 | 3 |
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 | (17) | (16) |
Finite lived intangible assets net | $ 11 | $ 13 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 5 | $ 5 | $ 14 | $ 14 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Sep. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
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 |
Amortization expense related to intangible assets, 2024 | $ 20 |
Closure and Restructuring Cos_2
Closure and Restructuring Costs and Impairment of Long-lived Assets - Additional Information (Detail) $ in Millions | Sep. 27, 2019Machine | Mar. 31, 2021EmployeeT | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | $ 68 | $ 11 | $ 69 | $ 23 | ||
Previous and Ongoing Closures and Restructuring [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | 0 | 0 | 1 | 0 | ||
Cost reduction program [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accelerated depreciation | 111 | |||||
Severance and termination costs | 29 | |||||
Inventory obsolescence | 31 | |||||
Pension curtailment loss | 2 | |||||
Other costs | 6 | |||||
Cost reduction program [Member] | Kingsport, Tennessee Mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Carrying amount of assets | $ 80 | 80 | ||||
Cost reduction program [Member] | Kingsport, Tennessee Mill [Member] | Minimum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Forecasted conversion costs | 300 | |||||
Cost reduction program [Member] | Kingsport, Tennessee Mill [Member] | Maximum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Forecasted conversion costs | $ 350 | |||||
Cost reduction program [Member] | Ashdown, Arkansas mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Conversion of mill to softwood and fluff pulp, percentage | 100.00% | |||||
Cost reduction program [Member] | Ashdown, Arkansas mill [Member] | Minimum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Conversion Costs | $ 15 | |||||
Duration to complete conversion of mill | 9 months | |||||
Cost reduction program [Member] | Ashdown, Arkansas mill [Member] | Maximum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Conversion Costs | $ 20 | |||||
Duration to complete conversion of mill | 12 months | |||||
Cost reduction program [Member] | Forecast | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Reduction of annual uncoated freesheet paper capacity | T | 721,000 | |||||
Expected workforce reduction | Employee | 750 | |||||
Ashdown, Arkansas Mill and Port Huron, Michigan Mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | 1 | |||||
Inventory obsolescence | 4 | |||||
Number of closed paper machines | Machine | 2 | |||||
Ashdown, Arkansas Mill and Port Huron, Michigan Mill [Member] | Impairment of Long-Lived Assets [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accelerated depreciation | 32 | |||||
Waco, Texas Facility [Member] | Personal Care [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Accelerated depreciation | 1 | |||||
Severance and termination costs | 1 | 5 | ||||
Inventory obsolescence | 1 | 2 | ||||
Other costs | $ 4 | 11 | ||||
Accelerated depreciation and impairment of operating lease right-of-use assets | $ 26 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - Term Loan [Member] $ in Millions | May 05, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 300 |
Debt instrument maturity date | May 5, 2025 |
Debt instrument periodic repayment of principal, each quarter | $ 3 |
Debt instrument, covenant description | The Term Loan Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Term Loan Agreement that must be maintained at a level of not greater than 3.75 to 1. |
LIBOR [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, basis spread on variable rate | 2.50% |
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 | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ (393) | ||||
Other comprehensive (loss) income before reclassifications | (36) | $ 34 | |||
Amounts reclassified from Accumulated other comprehensive loss | 20 | 40 | |||
Other comprehensive income (loss) | $ 23 | $ (38) | (16) | $ 5 | 74 |
Ending balance | (409) | (409) | (393) | ||
Balance | 2,277 | 2,619 | 2,376 | 2,538 | 2,538 |
Balance | 2,211 | 2,439 | 2,211 | 2,439 | 2,376 |
Natural Gas Swap Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 3 | (10) | |||
Currency Options [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (1) | 5 | |||
Foreign Exchange Forward Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (2) | 16 | |||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 5 | 21 | |||
Net Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (41) | 2 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (5) | (24) | (24) | ||
Other comprehensive (loss) income before reclassifications | 11 | ||||
Amounts reclassified from Accumulated other comprehensive loss | 14 | 8 | |||
Other comprehensive income (loss) | 14 | 19 | |||
Ending balance | 9 | 9 | (5) | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 3 | (10) | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (1) | 5 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (2) | 16 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (197) | (231) | (231) | ||
Other comprehensive (loss) income before reclassifications | (41) | 1 | |||
Amounts reclassified from Accumulated other comprehensive loss | 7 | 33 | |||
Other comprehensive income (loss) | (34) | 34 | |||
Ending balance | (231) | (231) | (197) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net Gain (Loss) [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (41) | 1 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 11 | 11 | 11 | ||
Other comprehensive (loss) income before reclassifications | 1 | ||||
Amounts reclassified from Accumulated other comprehensive loss | (1) | (1) | |||
Other comprehensive income (loss) | (1) | ||||
Ending balance | 10 | 10 | 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 (loss) income before reclassifications | 1 | ||||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (202) | (223) | (223) | ||
Other comprehensive (loss) income before reclassifications | 5 | 21 | |||
Other comprehensive income (loss) | 5 | 21 | |||
Ending balance | (197) | (197) | (202) | ||
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 5 | 21 | |||
Accumulated Other Comprehensive Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (432) | (424) | (393) | (467) | (467) |
Balance | $ (409) | $ (462) | $ (409) | $ (462) | $ (393) |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Curtailment loss | $ 2 | |||
(Loss) earnings before income taxes and equity loss | (146) | $ 19 | $ (133) | $ 147 |
Tax benefit (expense) | 55 | 1 | 67 | (28) |
Net (loss) earnings | (92) | 20 | (68) | 118 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) earnings before income taxes and equity loss | (2) | (4) | (19) | (7) |
Tax benefit (expense) | 1 | 1 | 5 | 2 |
Net (loss) earnings | (1) | (3) | (14) | (5) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Natural Gas Swap Contracts [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (2) | (2) | (10) | (2) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Currency Options and Forwards [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (2) | (9) | (5) | |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial gain (loss) | (3) | (2) | (7) | (7) |
Curtailment loss | (2) | (2) | ||
Amortization of prior year service cost | (1) | (1) | (4) | |
(Loss) earnings before income taxes and equity loss | (5) | (3) | (10) | (11) |
Tax benefit (expense) | 2 | 1 | 3 | 3 |
Net (loss) earnings | $ (3) | $ (2) | (7) | (8) |
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 gain (loss) | 1 | 1 | ||
(Loss) earnings before income taxes and equity loss | 1 | 1 | ||
Net (loss) earnings | $ 1 | $ 1 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Apr. 15, 2020 | Feb. 18, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 05, 2019 | Nov. 04, 2019 |
Shareholders' Equity [Line Items] | |||||||
Declared date | Feb. 18, 2020 | ||||||
Dividend per share | $ 0.455 | ||||||
Dividends paid | $ 25,000,000 | ||||||
Payment date | Apr. 15, 2020 | ||||||
Record date | Apr. 2, 2020 | ||||||
Stock repurchased, shares | 1,798,306 | 4,076,723 | |||||
Stock repurchased, average price | $ 33.05 | $ 35.47 | |||||
Stock repurchased, value | $ 137,000,000 | $ 59,000,000 | $ 145,000,000 | ||||
Maximum [Member] | |||||||
Shareholders' Equity [Line Items] | |||||||
Stock repurchase program authorized amount | $ 1,600,000,000 | $ 1,300,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of year | $ 35 |
Additions and other changes | 4 |
Environmental spending | (2) |
Effect of foreign currency exchange rate change | (1) |
Balance at end of period | $ 36 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Pension Plans [Member] | |
Commitments And Contingencies [Line Items] | |
Provision for liability | $ 0 |
Indemnification Guarantee [Member] | |
Commitments And Contingencies [Line Items] | |
Provision for liability | $ 0 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020Segment | |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,124 | $ 1,283 | $ 3,414 | $ 3,976 |
Depreciation and amortization | 71 | 72 | 214 | 219 |
Impairment of long-lived assets | 111 | 33 | 111 | 58 |
Consolidated depreciation and amortization and impairment of long-lived assets | 182 | 105 | 325 | 277 |
Operating income (loss) | (136) | 29 | (103) | 178 |
Interest expense, net | 14 | 12 | 43 | 38 |
Non-service components of net periodic benefit cost | (4) | (2) | (13) | (7) |
(Loss) earnings before income taxes and equity loss | (146) | 19 | (133) | 147 |
Income tax (benefit) expense (NOTE 8) | (55) | (1) | (67) | 28 |
Equity loss, net of taxes | 1 | 2 | 1 | |
Net (loss) earnings | (92) | 20 | (68) | 118 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,142 | 1,298 | 3,470 | 4,028 |
Depreciation and amortization | 71 | 72 | 214 | 219 |
Operating Segments [Member] | Communication Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 483 | 635 | 1,491 | 1,963 |
Operating Segments [Member] | Specialty and Packaging Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 148 | 159 | 425 | 490 |
Operating Segments [Member] | Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 242 | 262 | 734 | 812 |
Operating Segments [Member] | Absorbent Hygiene Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 251 | 227 | 764 | 711 |
Operating Segments [Member] | Pulp and Paper [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 899 | 1,079 | 2,732 | 3,342 |
Depreciation and amortization | 56 | 57 | 170 | 174 |
Impairment of long-lived assets | 111 | 32 | 111 | 32 |
Operating income (loss) | (140) | 31 | (133) | 237 |
Operating Segments [Member] | Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 243 | 219 | 738 | 686 |
Depreciation and amortization | 15 | 15 | 44 | 45 |
Impairment of long-lived assets | 1 | 26 | ||
Operating income (loss) | 16 | 2 | 54 | (24) |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (18) | (15) | (56) | (52) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ (12) | $ (4) | $ (24) | $ (35) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - Canada Emergency Wage Subsidy [Member] $ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | |
Segment Reporting Information [Line Items] | ||||
Total Income | $ 9 | $ 12 | $ 34 | $ 46 |
Cost of Sale [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Income | 8 | 10 | 29 | 38 |
Selling, General And Administrative [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Income | $ 1 | $ 2 | $ 5 | $ 8 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Condensed Income Statements Captions [Line Items] | |||||
Sales | $ 1,124 | $ 1,283 | $ 3,414 | $ 3,976 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 911 | 1,041 | 2,831 | 3,172 | |
Depreciation and amortization | 71 | 72 | 214 | 219 | |
Selling, general and administrative | 99 | 94 | 294 | 322 | |
Impairment of long-lived assets | 111 | 33 | 111 | 58 | |
Closure and restructuring costs | 68 | 11 | 69 | 23 | |
Other operating (income) loss, net | 3 | (2) | 4 | ||
Operating expenses | 1,260 | 1,254 | 3,517 | 3,798 | |
Operating (loss) income | (136) | 29 | (103) | 178 | |
Interest expense (income), net | 14 | 12 | 43 | 38 | |
Non-service components of net periodic benefit cost | (4) | (2) | (13) | (7) | |
(Loss) earnings before income taxes and equity loss | (146) | 19 | (133) | 147 | |
Income tax (benefit) expense | (55) | (1) | (67) | 28 | |
Equity loss, net of taxes | 1 | 2 | 1 | ||
Net (loss) earnings | (92) | 20 | (68) | 118 | |
Other comprehensive income (loss) | 23 | (38) | (16) | 5 | $ 74 |
Comprehensive (loss) income | (69) | (18) | (84) | 123 | |
Reportable Legal Entities [Member] | Parent [Member] | |||||
Operating expenses | |||||
Selling, general and administrative | 2 | 7 | 7 | ||
Other operating (income) loss, net | 1 | ||||
Operating expenses | 2 | 8 | 7 | ||
Operating (loss) income | (2) | (8) | (7) | ||
Interest expense (income), net | 17 | 18 | 49 | 52 | |
(Loss) earnings before income taxes and equity loss | (19) | (18) | (57) | (59) | |
Income tax (benefit) expense | 59 | (4) | (35) | (13) | |
Share in (loss) earnings of equity accounted investees | (14) | 34 | (46) | 164 | |
Net (loss) earnings | (92) | 20 | (68) | 118 | |
Other comprehensive income (loss) | 23 | (38) | (16) | 5 | |
Comprehensive (loss) income | (69) | (18) | (84) | 123 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 918 | 1,060 | 2,775 | 3,268 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 814 | 891 | 2,504 | 2,746 | |
Depreciation and amortization | 49 | 51 | 150 | 155 | |
Selling, general and administrative | 8 | 59 | 80 | 170 | |
Impairment of long-lived assets | 111 | 33 | 111 | 58 | |
Closure and restructuring costs | 64 | 11 | 65 | 21 | |
Other operating (income) loss, net | 1 | 4 | (3) | ||
Operating expenses | 1,046 | 1,046 | 2,914 | 3,147 | |
Operating (loss) income | (128) | 14 | (139) | 121 | |
Interest expense (income), net | 18 | 18 | 56 | 60 | |
Non-service components of net periodic benefit cost | (1) | 1 | (5) | 1 | |
(Loss) earnings before income taxes and equity loss | (145) | (5) | (190) | 60 | |
Income tax (benefit) expense | 11 | (2) | (89) | 12 | |
Equity loss, net of taxes | 1 | ||||
Share in (loss) earnings of equity accounted investees | 142 | 37 | 56 | 116 | |
Net (loss) earnings | (14) | 34 | (46) | 164 | |
Other comprehensive income (loss) | 16 | (37) | (27) | 11 | |
Comprehensive (loss) income | 2 | (3) | (73) | 175 | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 458 | 459 | 1,342 | 1,478 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 349 | 386 | 1,030 | 1,196 | |
Depreciation and amortization | 22 | 21 | 64 | 64 | |
Selling, general and administrative | 89 | 35 | 207 | 145 | |
Closure and restructuring costs | 4 | 4 | 2 | ||
Other operating (income) loss, net | 2 | (7) | 7 | ||
Operating expenses | 464 | 444 | 1,298 | 1,414 | |
Operating (loss) income | (6) | 15 | 44 | 64 | |
Interest expense (income), net | (21) | (24) | (62) | (74) | |
Non-service components of net periodic benefit cost | (3) | (3) | (8) | (8) | |
(Loss) earnings before income taxes and equity loss | 18 | 42 | 114 | 146 | |
Income tax (benefit) expense | (125) | 5 | 57 | 29 | |
Equity loss, net of taxes | 1 | 1 | 1 | ||
Net (loss) earnings | 142 | 37 | 56 | 116 | |
Other comprehensive income (loss) | 41 | (33) | 8 | (8) | |
Comprehensive (loss) income | 183 | 4 | 64 | 108 | |
Consolidating Adjustments [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | (252) | (236) | (703) | (770) | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | (252) | (236) | (703) | (770) | |
Operating expenses | (252) | 236 | (703) | (770) | |
Share in (loss) earnings of equity accounted investees | (128) | (71) | (10) | (280) | |
Net (loss) earnings | (128) | (71) | (10) | (280) | |
Other comprehensive income (loss) | (57) | 70 | 19 | (3) | |
Comprehensive (loss) income | $ (185) | $ (1) | $ 9 | $ (283) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||||||
Cash and cash equivalents | $ 218 | $ 61 | ||||
Receivables | 543 | 577 | ||||
Inventories | 764 | 786 | ||||
Prepaid expenses | 36 | 33 | ||||
Income and other taxes receivable | 44 | 61 | ||||
Total current assets | 1,605 | 1,518 | ||||
Property, plant and equipment, net | 2,378 | 2,567 | ||||
Operating lease right-of-use assets | 72 | 81 | ||||
Intangible assets, net | 573 | 573 | ||||
Other assets | 163 | 164 | ||||
Total assets | 4,791 | 4,903 | ||||
Current liabilities | ||||||
Bank indebtedness | 9 | |||||
Trade and other payables | 626 | 705 | ||||
Income and other taxes payable | 37 | 23 | ||||
Operating lease liabilities due within one year | 27 | 28 | ||||
Long-term debt due within one year | 13 | 1 | ||||
Total current liabilities | 703 | 766 | ||||
Long-term debt | 1,086 | 938 | ||||
Operating lease liabilities | 58 | 69 | ||||
Deferred income taxes and other | 413 | 479 | ||||
Other liabilities and deferred credits | 320 | 275 | ||||
Shareholders' equity | 2,211 | $ 2,277 | 2,376 | $ 2,439 | $ 2,619 | $ 2,538 |
Total liabilities and shareholders' equity | 4,791 | 4,903 | ||||
Reportable Legal Entities [Member] | Parent [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 129 | 1 | ||||
Prepaid expenses | 5 | 5 | ||||
Income and other taxes receivable | 69 | 34 | ||||
Intercompany accounts | 594 | 538 | ||||
Total current assets | 797 | 578 | ||||
Investments in affiliates | 3,555 | 3,627 | ||||
Intercompany long-term advances | 5 | 5 | ||||
Other assets | 14 | 14 | ||||
Total assets | 4,371 | 4,224 | ||||
Current liabilities | ||||||
Trade and other payables | 19 | 57 | ||||
Intercompany accounts | 437 | 344 | ||||
Income and other taxes payable | 26 | 1 | ||||
Long-term debt due within one year | 12 | |||||
Total current liabilities | 494 | 402 | ||||
Long-term debt | 1,077 | 873 | ||||
Intercompany long-term loans | 563 | 541 | ||||
Deferred income taxes and other | 4 | |||||
Other liabilities and deferred credits | 22 | 32 | ||||
Shareholders' equity | 2,211 | 2,376 | ||||
Total liabilities and shareholders' equity | 4,371 | 4,224 | ||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 9 | 11 | ||||
Receivables | 146 | 146 | ||||
Inventories | 517 | 543 | ||||
Prepaid expenses | 20 | 17 | ||||
Income and other taxes receivable | 30 | |||||
Intercompany accounts | 661 | 547 | ||||
Total current assets | 1,383 | 1,264 | ||||
Property, plant and equipment, net | 1,528 | 1,689 | ||||
Operating lease right-of-use assets | 57 | 63 | ||||
Intangible assets, net | 237 | 245 | ||||
Investments in affiliates | 2,505 | 2,493 | ||||
Intercompany long-term advances | 1 | 1 | ||||
Other assets | 23 | 30 | ||||
Total assets | 5,734 | 5,785 | ||||
Current liabilities | ||||||
Bank indebtedness | 9 | |||||
Trade and other payables | 379 | 390 | ||||
Intercompany accounts | 359 | 299 | ||||
Income and other taxes payable | 17 | 12 | ||||
Operating lease liabilities due within one year | 21 | 21 | ||||
Total current liabilities | 776 | 731 | ||||
Operating lease liabilities | 49 | 58 | ||||
Intercompany long-term loans | 945 | 946 | ||||
Deferred income taxes and other | 252 | 324 | ||||
Other liabilities and deferred credits | 157 | 99 | ||||
Shareholders' equity | 3,555 | 3,627 | ||||
Total liabilities and shareholders' equity | 5,734 | 5,785 | ||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 80 | 49 | ||||
Receivables | 397 | 431 | ||||
Inventories | 247 | 243 | ||||
Prepaid expenses | 11 | 11 | ||||
Income and other taxes receivable | 22 | 27 | ||||
Intercompany accounts | 311 | 237 | ||||
Total current assets | 1,068 | 998 | ||||
Property, plant and equipment, net | 850 | 878 | ||||
Operating lease right-of-use assets | 15 | 18 | ||||
Intangible assets, net | 336 | 328 | ||||
Intercompany long-term advances | 1,503 | 1,482 | ||||
Other assets | 139 | 131 | ||||
Total assets | 3,911 | 3,835 | ||||
Current liabilities | ||||||
Trade and other payables | 228 | 258 | ||||
Intercompany accounts | 770 | 679 | ||||
Income and other taxes payable | 71 | 10 | ||||
Operating lease liabilities due within one year | 6 | 7 | ||||
Long-term debt due within one year | 1 | 1 | ||||
Total current liabilities | 1,076 | 955 | ||||
Long-term debt | 9 | 65 | ||||
Operating lease liabilities | 9 | 11 | ||||
Intercompany long-term loans | 1 | 1 | ||||
Deferred income taxes and other | 170 | 166 | ||||
Other liabilities and deferred credits | 141 | 144 | ||||
Shareholders' equity | 2,505 | 2,493 | ||||
Total liabilities and shareholders' equity | 3,911 | 3,835 | ||||
Consolidating Adjustments [Member] | ||||||
Current assets | ||||||
Income and other taxes receivable | (77) | |||||
Intercompany accounts | (1,566) | (1,322) | ||||
Total current assets | (1,643) | (1,322) | ||||
Investments in affiliates | (6,060) | (6,120) | ||||
Intercompany long-term advances | (1,509) | (1,488) | ||||
Other assets | (13) | (11) | ||||
Total assets | (9,225) | (8,941) | ||||
Current liabilities | ||||||
Intercompany accounts | (1,566) | (1,322) | ||||
Income and other taxes payable | (77) | |||||
Total current liabilities | (1,643) | (1,322) | ||||
Intercompany long-term loans | (1,509) | (1,488) | ||||
Deferred income taxes and other | (13) | (11) | ||||
Shareholders' equity | (6,060) | (6,120) | ||||
Total liabilities and shareholders' equity | $ (9,225) | $ (8,941) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net (loss) earnings | $ (68) | $ 118 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 344 | 164 |
Cash flows from operating activities | 276 | 282 |
Investing activities | ||
Additions to property, plant and equipment | (130) | (157) |
Proceeds from disposals of property, plant and equipment | 1 | |
Acquisition of business, net of cash acquired | (30) | |
Cash flows used for investing activities | (160) | (156) |
Financing activities | ||
Dividend payments | (51) | (83) |
Stock repurchase | (59) | (139) |
Net change in bank indebtedness | (10) | 2 |
Change in revolving credit facility | (80) | 45 |
Proceeds from receivables securitization facility | 25 | 150 |
Repayments of receivables securitization facility | (80) | (110) |
Issuance of long-term debt | 300 | |
Repayments of long-term debt | (3) | (1) |
Other | (3) | (1) |
Cash flows provided from (used for) financing activities | 39 | (137) |
Net increase (decrease) in cash and cash equivalents | 155 | (11) |
Impact of foreign exchange on cash | 2 | (2) |
Cash and cash equivalents at beginning of period | 61 | 111 |
Cash and cash equivalents at end of period | 218 | 98 |
Reportable Legal Entities [Member] | Parent [Member] | ||
Operating activities | ||
Net (loss) earnings | (68) | 118 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 41 | (20) |
Cash flows from operating activities | (27) | 98 |
Financing activities | ||
Dividend payments | (51) | (83) |
Stock repurchase | (59) | (139) |
Net change in bank indebtedness | 5 | |
Change in revolving credit facility | (80) | 45 |
Issuance of long-term debt | 300 | |
Repayments of long-term debt | (3) | |
Decrease in long-term advances to related parties | 52 | 75 |
Other | (4) | (1) |
Cash flows provided from (used for) financing activities | 155 | (98) |
Net increase (decrease) in cash and cash equivalents | 128 | |
Cash and cash equivalents at beginning of period | 1 | |
Cash and cash equivalents at end of period | 129 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net (loss) earnings | (46) | 164 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 81 | (122) |
Cash flows from operating activities | 35 | 42 |
Investing activities | ||
Additions to property, plant and equipment | (75) | (92) |
Proceeds from disposals of property, plant and equipment | 1 | |
Cash flows used for investing activities | (75) | (91) |
Financing activities | ||
Net change in bank indebtedness | (10) | 1 |
Decrease in long-term advances to related parties | 48 | 52 |
Cash flows provided from (used for) financing activities | 38 | 53 |
Net increase (decrease) in cash and cash equivalents | (2) | 4 |
Cash and cash equivalents at beginning of period | 11 | |
Cash and cash equivalents at end of period | 9 | 4 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net (loss) earnings | 56 | 116 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 212 | 26 |
Cash flows from operating activities | 268 | 142 |
Investing activities | ||
Additions to property, plant and equipment | (55) | (65) |
Acquisition of business, net of cash acquired | (30) | |
Cash flows used for investing activities | (85) | (65) |
Financing activities | ||
Net change in bank indebtedness | 1 | |
Proceeds from receivables securitization facility | 25 | 150 |
Repayments of receivables securitization facility | (80) | (110) |
Repayments of long-term debt | (1) | |
Increase in long-term advances to related parties | (100) | (127) |
Other | 1 | |
Cash flows provided from (used for) financing activities | (154) | (87) |
Net increase (decrease) in cash and cash equivalents | 29 | (10) |
Impact of foreign exchange on cash | 2 | (2) |
Cash and cash equivalents at beginning of period | 49 | 111 |
Cash and cash equivalents at end of period | 80 | 99 |
Consolidating Adjustments [Member] | ||
Operating activities | ||
Net (loss) earnings | (10) | (280) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 10 | 280 |
Financing activities | ||
Net change in bank indebtedness | (5) | |
Increase in long-term advances to related parties | 100 | 127 |
Decrease in long-term advances to related parties | $ (100) | (127) |
Cash flows provided from (used for) financing activities | (5) | |
Net increase (decrease) in cash and cash equivalents | (5) | |
Cash and cash equivalents at end of period | $ (5) |