Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UFS | ||
Entity Registrant Name | Domtar Corp | ||
Entity Central Index Key | 0001381531 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 55,066,504 | ||
Entity Public Float | $ 1,165,096,948 | ||
ICFR Auditor Attestation Flag | true | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Security Exchange Name | NYSE | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on May 5, 2021, are incorporated by reference into Part III of this Report. |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 3,652 | $ 4,369 | $ 4,565 |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 3,125 | 3,610 | 3,638 |
Depreciation and amortization | 223 | 231 | 241 |
Selling, general and administrative | 253 | 291 | 292 |
Impairment of long-lived assets (NOTE 16) | 136 | 32 | 0 |
Closure and restructuring costs (NOTE 16) | 99 | 22 | 0 |
Other operating (income) loss, net (NOTE 8) | (7) | 4 | (1) |
Operating expenses | 3,829 | 4,190 | 4,170 |
Operating (loss) income | (177) | 179 | 395 |
Interest expense, net (NOTE 9) | 58 | 52 | 62 |
Non-service components of net periodic benefit cost (NOTE 7) | (17) | 23 | (18) |
(Loss) earnings before income taxes and equity loss | (218) | 104 | 351 |
Income tax (benefit) expense (NOTE 10) | (76) | 17 | 68 |
Equity loss, net of taxes | 3 | 2 | 2 |
(Loss) earnings from continuing operations | (145) | 85 | 281 |
Earnings (loss) from discontinued operations, net of taxes (NOTE 3) | 18 | (1) | 2 |
Net (loss) earnings | $ (127) | $ 84 | $ 283 |
Basic net (loss) earnings | |||
(Loss) earnings from continuing operations | $ (2.62) | $ 1.39 | $ 4.47 |
Earnings (loss) from discontinued operations | 0.33 | (0.02) | 0.03 |
Basic net (loss) earnings | (2.29) | 1.37 | 4.50 |
Diluted net (loss) earnings | |||
(Loss) earnings from continuing operations | (2.62) | 1.39 | 4.45 |
Earnings (loss) from discontinued operations | 0.33 | (0.02) | 0.03 |
Diluted net (loss) earnings | $ (2.29) | $ 1.37 | $ 4.48 |
Weighted average number of common shares outstanding (millions) | |||
Basic | 55.4 | 61.2 | 62.9 |
Diluted | 55.4 | 61.4 | 63.1 |
Cash dividends per common share | $ 0.91 | $ 1.78 | $ 1.72 |
Net (loss) earnings | $ (127) | $ 84 | $ 283 |
Net derivative gains (losses) on cash flow hedges: | |||
Net gains (losses) arising during the period, net of tax $(9) (2019 – $(3); 2018 – $10) | 27 | 11 | (30) |
Less: Reclassification adjustment for losses (gains) included in net (loss) earnings, net of tax of $(4) (2019 – $(3); 2018 – $1) | 12 | 8 | (2) |
Foreign currency translation adjustments | 63 | 21 | (91) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $4 (2019 – $(13); 2018 – $3) | (13) | 34 | (8) |
Other comprehensive income (loss) | 89 | 74 | (131) |
Comprehensive (loss) income | $ (38) | $ 158 | $ 152 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net (losses) gains arising during the period, tax | $ (9) | $ (3) | $ 10 |
Reclassification adjustment for (gains) losses included in net earnings (loss), net, tax | (4) | (3) | 1 |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 4 | $ (13) | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 309 | $ 61 |
Receivables, less allowances of $6 and $4 | 380 | 482 |
Inventories (NOTE 11) | 630 | 663 |
Prepaid expenses | 50 | 29 |
Income and other taxes receivable | 54 | 56 |
Assets held for sale (NOTE 3) | 1,133 | 227 |
Total current assets | 2,556 | 1,518 |
Property, plant and equipment, net (NOTE 12) | 2,023 | 2,223 |
Operating lease right-of-use assets (NOTE 13) | 59 | 58 |
Intangible assets, net (NOTE 14) | 29 | 30 |
Other assets (NOTE 15) | 189 | 163 |
Non-current assets held for sale (NOTE 3) | 911 | |
Total assets | 4,856 | 4,903 |
Current liabilities | ||
Bank indebtedness | 9 | |
Trade and other payables (NOTE 17) | 484 | 580 |
Income and other taxes payable | 15 | 15 |
Operating lease liabilities due within one year (NOTE 13) | 20 | 18 |
Long-term debt due within one year (NOTE 19) | 13 | 1 |
Liabilities held for sale (NOTE 3) | 295 | 143 |
Total current liabilities | 827 | 766 |
Long-term debt (NOTE 19) | 1,084 | 937 |
Operating lease liabilities (NOTE 13) | 50 | 40 |
Deferred income taxes and other (NOTE 10) | 321 | 360 |
Other liabilities and deferred credits (NOTE 20) | 314 | 269 |
Long-term liabilities held for sale (NOTE 3) | 155 | |
Commitments and contingencies (NOTE 22) | ||
Shareholders' equity (NOTE 21) | ||
Common stock $0.01 par value; authorized 2,000,000,000 shares; issued 65,001,104 and 65,001,104 shares | 1 | 1 |
Additional paid-in capital | 1,717 | 1,770 |
Retained earnings | 846 | 998 |
Accumulated other comprehensive loss | (304) | (393) |
Total shareholders' equity | 2,260 | 2,376 |
Total liabilities and shareholders' equity | $ 4,856 | $ 4,903 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 6 | $ 4 |
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 | 9,806,566 | 8,120,194 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Issued and Outstanding Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2017 | $ 2,483 | $ 1 | $ 1,969 | $ 849 | $ (336) |
Balance, Shares at Dec. 31, 2017 | 62,700,000 | ||||
Stock-based compensation, net of tax | 12 | 12 | |||
Stock-based compensation, net of tax, shares | 200,000 | ||||
Net (loss) earnings | 283 | 283 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax $(9) (2019 – $(3); 2018 – $10) | (30) | (30) | |||
Less: Reclassification adjustment for losses (gains) included in net (loss) earnings, net of tax of $(4) (2019 – $(3); 2018 – $1) | (2) | (2) | |||
Foreign currency translation adjustments | (91) | (91) | |||
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $4 (2019 – $(13); 2018 – $3) | (8) | (8) | |||
Cash dividends declared | (109) | (109) | |||
Balance at Dec. 31, 2018 | 2,538 | $ 1 | 1,981 | 1,023 | (467) |
Balance, Shares at Dec. 31, 2018 | 62,900,000 | ||||
Stock-based compensation, net of tax | 8 | 8 | |||
Stock-based compensation, net of tax, shares | 200,000 | ||||
Net (loss) earnings | 84 | 84 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax $(9) (2019 – $(3); 2018 – $10) | 11 | 11 | |||
Less: Reclassification adjustment for losses (gains) included in net (loss) earnings, net of tax of $(4) (2019 – $(3); 2018 – $1) | 8 | 8 | |||
Foreign currency translation adjustments | 21 | 21 | |||
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $4 (2019 – $(13); 2018 – $3) | 34 | 34 | |||
Stock repurchase | (219) | (219) | |||
Stock repurchase, shares | (6,200,000) | ||||
Cash dividends declared | (109) | (109) | |||
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 | 6 | 6 | |||
Stock-based compensation, net of tax, shares | 100,000 | ||||
Net (loss) earnings | (127) | (127) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax $(9) (2019 – $(3); 2018 – $10) | 27 | 27 | |||
Less: Reclassification adjustment for losses (gains) included in net (loss) earnings, net of tax of $(4) (2019 – $(3); 2018 – $1) | 12 | 12 | |||
Foreign currency translation adjustments | 63 | 63 | |||
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $4 (2019 – $(13); 2018 – $3) | (13) | (13) | |||
Stock repurchase | $ (59) | (59) | |||
Stock repurchase, shares | (1,798,306) | (1,800,000) | |||
Cash dividends declared | $ (25) | (25) | |||
Balance at Dec. 31, 2020 | $ 2,260 | $ 1 | $ 1,717 | $ 846 | $ (304) |
Balance, Shares at Dec. 31, 2020 | 55,200,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Net gains (losses) arising during the period, tax | $ (9) | $ (3) | $ 10 |
Reclassification adjustment for losses (gains) included in net earnings, net, tax | (4) | (3) | 1 |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ 4 | $ (13) | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net (loss) earnings | $ (127) | $ 84 | $ 283 |
Adjustments to reconcile net (loss) earnings to cash flows from operating activities | |||
Depreciation and amortization | 283 | 293 | 308 |
Deferred income taxes and tax uncertainties (NOTE 10) | (45) | (16) | 13 |
Impairment of long-lived assets (NOTE 16) | 137 | 58 | 7 |
Impairment of inventory (NOTE 16) | 31 | 6 | 4 |
Net gains on disposals of property, plant and equipment | (1) | (4) | |
Loss on classification as held for sale (NOTE 3) | 45 | ||
Stock-based compensation expense | 8 | 9 | 8 |
Equity loss, net of taxes | 3 | 2 | 2 |
Other | 4 | (1) | |
Changes in assets and liabilities, excluding the effect of acquisition of business | |||
Receivables | 99 | 96 | 18 |
Inventories | 7 | (22) | (28) |
Prepaid expenses | 11 | 2 | 2 |
Trade and other payables | (57) | (67) | 24 |
Income and other taxes | 13 | (43) | (32) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (4) | 29 | (46) |
Other assets and other liabilities | 4 | 11 | (4) |
Cash flows from operating activities | 411 | 442 | 554 |
Investing activities | |||
Additions to property, plant and equipment | (175) | (255) | (195) |
Proceeds from disposals of property, plant and equipment | 3 | 1 | 5 |
Acquisition of business, net of cash acquired (NOTE 4) | (30) | ||
Other | (6) | ||
Cash flows used for investing activities | (202) | (254) | (196) |
Financing activities | |||
Dividend payments | (51) | (110) | (108) |
Stock repurchase | (59) | (219) | |
Net change in bank indebtedness | (10) | 9 | |
Change in revolving credit facility | (80) | 80 | |
Proceeds from receivables securitization facility | 25 | 205 | 85 |
Repayments of receivables securitization facility | (80) | (200) | (60) |
Issuance of long-term debt | 300 | ||
Repayments of long-term debt | (7) | (1) | (301) |
Other | (3) | (1) | 2 |
Cash flows provided from (used for) financing activities | 35 | (237) | (382) |
Net increase (decrease) in cash and cash equivalents | 244 | (49) | (24) |
Impact of foreign exchange on cash | 4 | (1) | (4) |
Cash and cash equivalents at beginning of year | 61 | 111 | 139 |
Cash and cash equivalents at end of year | 309 | 61 | 111 |
Supplemental cash flow information | |||
Interest | 52 | 46 | 57 |
Income taxes | $ (22) | $ 59 | $ 71 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Domtar designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and components of absorbent hygiene products. The foundation of its business is a network of wood fiber converting assets that produce paper grade, fluff and specialty pulp. The majority of this pulp production is consumed internally to manufacture paper with the balance sold as market pulp. Domtar is the largest integrated marketer of uncoated freesheet paper in North America serving a variety of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end-users. BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. The equity method of accounting is used for investments in affiliates over which the Company has significant influence but does not have effective control. DISCONTINUED OPERATIONS The results of operations for the Personal Care business unit (disposal group) have been classified as discontinued operations for all periods presented in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) as the disposal group met the criteria to be classified as held for sale in the fourth quarter and the disposal of the business unit represents a strategic shift that will have a major effect on the Company's operations and financial results. The after-tax results of operations of the discontinued operations (including the loss recognized on classification as held for sale are reported as a separate component in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for current and all prior periods presented. In addition, the related assets and liabilities of the disposal group have been classified as held for sale in the Consolidated Balance Sheets at December 31, 2020 and 2019. TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and is partially offset by the Company’s hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). REVENUE RECOGNITION The Company’s revenue is generated from the sale of finished goods to customers. Revenue is recognized at a single point in time when the performance obligation is satisfied which occurs when the control over the goods is transferred to customers. For shipping and handling activities performed after customers obtain control of the goods, the Company elected to account for these activities as fulfillment activities rather than assessing such activities as separate performance obligations. Accordingly, the sale of goods to customers represents a single performance obligation to which the entire transaction price is allocated. The point in time when the control of goods is transferred to customers is largely dependent on delivery terms. Revenue is recorded at the time of shipment for delivery terms designated free on board (“f.o.b.”) shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s delivery site. Revenue is measured as the amount of consideration the Company expects to receive in exchange for goods transferred to customers. Revenue is recognized net of variable consideration in the form of rebates, discounts and other commercial incentives extended to customers. Variable consideration is recognized using the most likely amounts which are based on an analysis of historical experience and current period expectations. The Company includes estimated amounts of variable consideration in revenue to the extent that it is probable that there will not be a significant reversal of recognized revenue when the uncertainty related to that variable consideration is resolved. For all the Company’s contracts, customer payments are due in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Sales taxes, and other similar taxes, collected from customers are excluded from revenue. SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required impairments, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive income (loss) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). If and when incurred, the Company accounts for any taxes associated with Global Intangible Low-Taxed Income (“GILTI”) as a period cost. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. RECEIVABLES AND ALLOWANCES FOR CREDIT LOSSES We establish allowances for credit losses on receivables. The adequacy of these allowances is assessed quarterly through consideration of factors including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of the receivable, expected loss rates and collateral exposures. We assign internal credit ratings for all customers and determine the creditworthiness of each customer based upon publicly available information and information obtained directly from our customers. Our rating categories are comparable to those used by major credit rating agencies. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $220 million and $242 million at December 31, 2020 and 2019, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $52 million and $69 million greater at December 31, 2020 and 2019, respectively. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over periods of 10 to 40 years 3 to 20 years IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, by comparing the net book value of the asset group to their estimated undiscounted future cash flows expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition. LEASES At inception of an arrangement, the Company determines whether the arrangement contains a lease. A lease conveys the right to control the use of identified property, plant, or equipment (asset) for a period of time in exchange for consideration. Control over the use of the identified asset means that the Company has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. For each lease arrangement that has an original lease term of more than 12 months, a right-of-use asset and a lease liability are recorded in the Consolidated Balance Sheets. The right-of-use asset represents the Company’s right to use an underlying asset for the lease term while the lease liability represents the obligation to make lease payments arising from the lease. The right-of-use asset and the lease liability are initially recorded at the same amount at the lease commencement date based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. The operating lease right-of-use asset also include previously recognized impairments and purchase price adjustments relating to favorable and unfavorable terms of leases acquired as part of business combinations. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Any potential impairment for right-of-use assets will be calculated in the same manner as disclosed under impairment of long-lived assets. The terms of a lease arrangement determine how a lease is classified (operating or finance), the resulting recognition pattern in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and the classification in the Consolidated Balance Sheets. Finance lease expense is represented by the interest on the lease liability determined using the effective interest method and the amortization of the finance lease right-of-use asset calculated using the straight-line method over the estimated useful life of the identified asset. Finance lease related balances are included in the Consolidated Balance Sheets in Property, plant and equipment, net, Long-term debt due within one year and Long-term debt. Operating lease expense is recorded on a straight-line basis over the lease term by adding interest expense determined using the effective interest method to the amortization of the right-of-use asset. Operating lease related balances are included in the Consolidated Balance Sheets in Operating lease right-of-use assets, Operating lease liabilities due within one year and Operating lease liabilities. The Company elected to initially apply the new leases standard as of January 1, 2019 with certain available practical expedients. No cumulative-effect adjustments on retained earnings were necessary as of January 1, 2019. The most significant impact of adopting the new standard was the recognition of right-of-use assets and lease liabilities for operating leases. The accounting for finance leases remains substantially unchanged. INTANGIBLE ASSETS Indefinite-lived intangible assets are not amortized and are evaluated for impairment individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets is less than their carrying amounts. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If a qualitative assessment is performed and after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of the indefinite-lived intangible assets is less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include license rights and water rights. The Company reviews its indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support indefinite useful lives. Definite-lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite-lived intangible assets include water rights, customer relationships, technology as well as non-compete agreements, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of long-lived assets. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 20 to 30 years Technology 7 to 20 years Non-Compete agreements 9 years DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheets as a deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are recorded when remediation efforts are probable and can be reasonably estimated. Provisions for environmental matters are generally not discounted, due to uncertainty with respect to timing of expenditures. Asset retirement obligations are mainly associated with landfill operation and closure, dredging of settling ponds and bark pile management and are recognized, at fair value, in the period in which Domtar incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost (net of estimated forfeitures) of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value at the end of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital in the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vest pro rata on the first three anniversaries of the grant and have a seven-year Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 872,136 shares are reserved for issuance in connection with awards to be granted. DERIVATIVE INSTRUMENTS Derivative instruments may be utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive income (loss). These amounts are reclassified in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) in the periods in which results are affected by the cash flows of the hedged item within the same line item. PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately ten years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately ten years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately 12 years of the active employee group covered by the plans. GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS Sale of Personal Care business On January 7, 2021, Domtar Corporation entered into a definitive agreement with American Industrial Partners (AIP) to sell the Company’s Personal Care business for a purchase price of $920 million in cash, including elements of working capital estimated at $130 million, subject to customary adjustments. Subject to the satisfaction or waiver of conditions of the agreement, the transaction is expected to close in the first quarter of 2021. The result of operations of the Company’s Personal Care business were reclassified to discontinued operations during 2020. These results have been summarized in Earnings (loss) from discontinued operations, net of taxes on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for each period presented. The Consolidated Statements of Cash Flows were not reclassified to reflect discontinued operations. Personal Care was previously disclosed as a separate reportable business segment. Major components of earnings (loss) from discontinued operations: Year ended December 31, Year ended December 31, Year ended December 31, 2020 2019 2018 $ $ $ Sales 995 920 959 Operating expenses Cost of sales, excluding depreciation and amortization 721 684 734 Depreciation and amortization 60 62 67 Selling, general and administrative 141 143 151 Impairment of long-lived assets 1 26 7 Closure and restructuring costs — 20 8 Other operating loss, net 2 1 1 925 936 968 Operating income (loss) 70 (16 ) (9 ) Loss on classification as held for sale 45 — — Earnings (loss) from discontinued operations before income taxes 25 (16 ) (9 ) Income tax expense (benefit) 7 (15 ) (11 ) Net earnings (loss) from discontinued operations 18 (1 ) 2 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At December 31, December 31, 2020 2019 $ $ Assets Receivables 110 94 Inventories 138 123 Prepaid expenses 3 4 Income and other taxes receivable 3 6 Property, plant and equipment, net 351 344 Operating lease right-of-use assets 15 22 Intangible assets, net (2) ( 3 ) 554 543 Other assets 2 2 Total assets 1,176 1,138 Loss on classification as held for sale (43 ) — Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 1,133 1,138 Liabilities Trade and other payables 128 125 Income and other taxes payable 12 7 Operating lease liabilities due within one year 8 10 Long-term debt 1 1 Operating lease liabilities 8 29 Deferred income taxes and other 130 119 Other liabilities and deferred credits 8 7 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 295 298 (1) (2) – (3) Indefinite-lived intangible assets of the disposal group held for sale Company’s operating plans and are prepared for each indefinite-lived intangible asset assessment. The discount rate assumptions used are based on the weighted-average cost of capital adjusted for business-specific and other relevant risks. The quantitative assessment performed in the fourth quarter of 2020 indicated that the indefinite-lived intangible assets had fair values that exceeded their carrying amounts. Variations in management’s assumptions and estimates, particularly in the expected growth rates and royalty rates embedded in the cash flow projections, and the discount rate could have a significant impact on fair value. The Company’s former Personal Care business was classified as a disposal group held for sale in the fourth quarter of 2020 and the Company performed an updated impairment assessment of the indefinite-lived intangible assets included in the disposal group held for sale. The updated impairment assessment did not result in an impairment loss. Cash Flows from Discontinued Operations: Year ended December 31, Year ended December 31, Year ended December 31, 2020 2019 2018 $ $ $ Cash flows from operating activities 111 90 58 Cash flows used for investing activities (34 ) (40 ) (29 ) |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisition of Business | NOTE 4. 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. 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 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 5. STOCK-BASED COMPENSATION OMNIBUS PLAN Under the Omnibus Plan, the Company may award to key employees and non-employee directors, at the discretion of the Human Resources Committee of the Board of Directors, non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units, performance-conditioned restricted stock units, performance share units, deferred share units (“DSUs”) and other stock-based awards. The non-employee directors only receive DSUs. The Company generally grants awards annually and uses, when available, treasury stock to fulfill awards settled in common stock and option exercises. PERFORMANCE SHARE UNITS (“PSUs”) PSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash for non-Management Committee members, based on market conditions and/or performance and service conditions. These awards have an additional feature where the ultimate number of units that vest will be determined by the Company’s performance results or shareholder return in relation to a predetermined target over the vesting period. No awards vest when the minimum thresholds are not achieved. The performance measurement date will vary depending on the specific award. These awards will cliff vest at various dates up to February 18, 2023. Weighted average grant PSUs Number of units date fair value $ Vested and non-vested at December 31, 2017 622,468 37.78 Granted 238,537 41.39 Forfeited (36,932 ) 38.09 Issued 52,563 41.05 Vested and settled (154,178 ) 44.22 Vested and non-vested at December 31, 2018 722,458 37.82 Granted 192,261 61.46 Forfeited (24,980 ) 45.54 Cancelled (41,399 ) 57.09 Vested and settled (222,019 ) 32.39 Vested and non-vested at December 31, 2019 626,321 45.42 Granted 304,604 36.70 Forfeited (27,778 ) 45.25 Cancelled (150,542 ) 45.41 Vested and settled (216,701 ) 39.04 Vested and non-vested at December 31, 2020 535,904 43.06 The fair value of PSUs granted in 2020, 2019 and 2018 was estimated at the grant date using the Monte Carlo simulation methodology. The Monte Carlo simulation creates artificial futures by generating numerous sample paths of potential outcomes. The following assumptions were used in calculating the fair value of the units granted: 2020 2019 2018 Dividend yield 5.338 % 3.323 % 3.800 % Expected volatility 1 year 32 % 31 % 22 % Expected volatility 3 years 29 % 28 % 26 % Risk-free interest rate December 31, 2018 — — 2.23 % Risk-free interest rate December 31, 2019 — 2.85 % 2.46 % Risk-free interest rate December 31, 2020 1.42 % 2.65 % 2.61 % Risk-free interest rate December 31, 2021 1.26 % 2.56 % — Risk-free interest rate December 31, 2022 1.21 % — — At December 31, 2020, of the total vested and non-vested PSUs, 277,653 are expected to be settled in shares and 258,251 will be settled in cash. RESTRICTED STOCK UNITS (“RSUs”) RSUs are granted to Management Committee and non-Management Committee members. These awards will be settled in shares for Management Committee members and in cash for non-Management Committee members, upon completing service conditions. The awards cliff vest after a service period of approximately three years. Additionally, the RSUs are credited with dividend equivalents in the form of additional RSUs when cash dividends are paid on the Company’s stock. The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSUs Number of units date fair value $ Non-vested at December 31, 2017 460,663 38.56 Granted/issued 157,502 44.04 Forfeited (27,251 ) 39.91 Vested and settled (135,323 ) 42.54 Non-vested at December 31, 2018 455,591 39.16 Granted/issued 156,417 51.07 Forfeited (21,203 ) 42.86 Vested and settled (174,353 ) 34.96 Non-vested at December 31, 2019 416,452 45.20 Granted/issued 231,012 33.26 Forfeited (19,521 ) 41.05 Vested and settled (147,753 ) 40.21 Non-vested at December 31, 2020 480,190 41.16 At December 31, 2020, of the total non-vested RSUs, 229,731 are expected to be settled in shares and 250,459 will be settled in cash. DEFERRED SHARE UNITS DSUs are granted to the Company’s Directors. The DSUs granted to the Directors vest immediately on the grant date. The DSUs are credited with dividend equivalents in the form of additional DSUs when cash dividends are paid on the Company’s stock. For Directors’ DSUs, the Company will deliver at the option of the holder either one share of common stock or the cash equivalent of the fair market value on settlement of each outstanding DSU (including dividend equivalents accumulated) upon termination of service. Directors who attained the share ownership requirements may elect to receive the equity component of their annual retainer in DSUs that may be settled in either cash or stock one year after the grant date. The grant date fair value of DSU awards is equal to the market value of the Company’s stock on the date the awards are granted. Management Committee members may elect to defer awards earned under another program into DSUs. In 2020, no vested awards were deferred to DSUs (2019 – nil; 2018 – nil). Weighted average grant DSUs Number of units date fair value $ Vested at December 31, 2017 272,234 29.55 Granted/issued 31,691 44.64 Settled (9,752 ) 40.95 Vested at December 31, 2018 294,173 30.79 Granted/issued 35,596 41.32 Settled (12,606 ) 43.90 Vested at December 31, 2019 317,163 31.45 Granted/issued 48,943 25.11 Settled (10,873 ) 40.96 Vested at December 31, 2020 355,233 30.29 NON-QUALIFIED STOCK OPTIONS Stock options are granted to Management Committee and non-Management Committee members. The stock options vest at various dates up to February 20, 2021 subject to service conditions. The options expire at various dates no later than seven years from the date of grant. In 2020 and 2019, no stock options were granted. The fair value of the stock options granted in 2018 was estimated at the grant date using a Black-Scholes based option pricing model or an option pricing model that incorporated the market conditions when applicable. The following assumptions were used in calculating the fair value of the options granted: 2018 Dividend yield 3.27 % Expected volatility 29 % Risk-free interest rate 2.62 % Expected life 4.5 years Strike price $ 43.66 The grant date fair value of the non-qualified options granted in 2018 was $8.65. Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS of options price (in years) (in millions) $ $ Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Granted 104,086 43.66 6.2 — Exercised (147,397 ) 39.42 — — Forfeited/expired (6,102 ) 50.05 — — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Exercisable at December 31, 2018 303,055 49.15 2.3 — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Exercised (88,682 ) 39.46 — — Forfeited/expired (3,616 ) 53.13 — — Outstanding at December 31, 2019 421,354 46.92 2.5 0.1 Exercisable at December 31, 2019 316,530 48.44 1.8 0.1 Outstanding at December 31, 2019 421,354 46.92 2.5 0.1 Forfeited/expired (15,030 ) 43.09 — — Outstanding at December 31, 2020 406,324 47.07 1.6 — Exercisable at December 31, 2020 371,622 47.38 1.4 — The total intrinsic value of options exercised in 2019 and 2018 was $1 million and $1 million, respectively. Based on the Company’s closing year-end stock price of $31.65 (2019 – $38.24; 2018 – $35.13), the aggregate intrinsic value of options outstanding and options exercisable is nil. For the year ended December 31, 2020, stock-based compensation expense recognized in the Company’s results from continuing and discontinued operations was $7 million (2019 – $22 million; 2018 – $10 million) for all outstanding awards. Compensation costs not yet recognized amounted to $15 million (2019 – $16 million; 2018 – $17 million) and will be recognized over the average remaining service period of approximately 14 months. The aggregate value of liability awards settled in 2020 was $6 million (2019 – $12 million; 2018 –$8 million). The total fair value of equity awards settled in 2020 was $6 million (2019 – $11 million; 2018 – $6 million), representing the fair value at the time of settlement. The fair value at the grant date for these settled equity awards was $7 million (2019 – $6 million; 2018 – $7 million). Compensation costs for performance awards are based on management’s best estimate of the final performance measurement. CLAWBACK FOR FINANCIAL REPORTING MISCONDUCT If a participant in the Omnibus Plan knowingly or grossly negligently engages in financial reporting misconduct, then all awards and gains from the exercise of options in the 12 months prior to the date the misleading financial statements were issued as well as any awards that vested based on the misleading financial statements will be disgorged to the Company. In addition, the Company may cancel or reduce, or require a participant to forfeit and disgorge to the Company or reimburse the Company for, any awards granted or vested, and bonus granted or paid, and any gains earned or accrued, due to the exercise, vesting or settlement of awards or sale of any common stock, to the extent permitted or required by, or pursuant to any Company policy implemented as required by applicable law, regulation or stock exchange rule as may from time to time be in effect. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | NOTE 6. EARNINGS (LOSS) PER COMMON SHARE The calculation of basic (loss) earnings per common share is based on the weighted average number of Domtar common shares outstanding during the year. The calculation for diluted (loss) earnings per common share recognizes the effect of all potential dilutive common securities. The following table provides the reconciliation between basic and diluted (loss) earnings per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 (Loss) earnings from continuing operations $ (145 ) $ 85 $ 281 Earnings (loss) from discontinued operations, net of taxes $ 18 $ (1 ) $ 2 Net (loss) earnings $ (127 ) $ 84 $ 283 Weighted average number of common shares outstanding (millions) 55.4 61.2 62.9 Effect of dilutive securities (millions) — 0.2 0.2 Weighted average number of diluted common shares outstanding (millions) 55.4 61.4 63.1 Basic net (loss) earnings per common share (in dollars) (Loss) earnings from continuing operations $ (2.62 ) $ 1.39 $ 4.47 Earnings (loss) from discontinued operations $ 0.33 $ (0.02 ) $ 0.03 Basic net (loss) earnings per common share $ (2.29 ) $ 1.37 $ 4.50 Diluted net (loss) earnings per common share (in dollars) (Loss) earnings from continuing operations $ (2.62 ) $ 1.39 $ 4.45 Earnings (loss) from discontinued operations $ 0.33 $ (0.02 ) $ 0.03 Diluted net (loss) earnings per common share $ (2.29 ) $ 1.37 $ 4.48 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: December 31, December 31, December 31, 2020 2019 2018 Options to purchase common shares 406,324 324,413 227,221 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 7. PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the year ended December 31, 2020, the related pension expense was $39 million (2019 – $39 million; 2018 – $46 million). DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS The Company sponsors both contributory and non-contributory U.S. and non-U.S. defined benefit pension plans. Non-unionized employees in Canada joining the Company after January 1, 1998 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Unionized and non-union hourly employees in the U.S. that are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. Related pension and other post-retirement plan expenses and the corresponding obligations are actuarially determined using management’s most probable assumptions. The Company’s pension plan funding policy is to contribute annually the amount required to provide for benefits earned in the year and to fund solvency deficiencies, funding shortfalls and past service obligations over periods not exceeding those permitted by the applicable regulatory authorities. Past service obligations primarily arise from improvements to plan benefits. The other post-retirement benefit plans are not funded, and contributions are made annually to cover benefit payments. The Company expects to contribute a minimum total amount of $13 million in 2021 compared to $15 million in 2020 (2019 – $17 million; 2018 – $57 million) to the pension plans. The Company expects to contribute a minimum total amount of $4 million in 2021 compared to $4 million in 2020 (2019 – $4 million; 2018 – $4 million) to the other post-retirement benefit plans. CHANGE IN PROJECTED BENEFIT OBLIGATION The following table represents the change in the projected benefit obligation as of December 31, 2020 and December 31, 2019, the measurement date for each year: December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,425 63 1,557 62 Service cost for the year 29 1 29 1 Interest expense 39 2 57 2 Plan participants' contributions 6 — 6 — Actuarial loss (gain) 127 2 170 (1 ) Plan amendments 2 — — — Benefits paid (67 ) — (96 ) — Direct benefit payments (3 ) (4 ) (4 ) (4 ) Acquisition of business — 1 — — Curtailment (1) (1 ) — — — Settlement (2) (15 ) — (348 ) — Effect of foreign currency exchange rate change 24 2 54 3 Projected benefit obligation at end of year 1,566 67 1,425 63 During 2020 and 2019, net actuarial losses increased the projected benefit obligation due to the decrease in discount rates. The accumulated benefit obligation of the pension plans at December 31, 2020 and 2019 was $1,516 million and $1,379 million, respectively. CHANGE IN FAIR VALUE OF ASSETS The following table represents the change in the fair value of assets, as of December 31, 2020 and December 31, 2019, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: December 31, 2020 December 31, 2019 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,465 1,579 Actual return on plan assets 166 253 Employer contributions 15 17 Plan participants' contributions 6 6 Benefits paid (70 ) (100 ) Settlement (2) (15 ) (348 ) Effect of foreign currency exchange rate change 27 58 Fair value of assets at end of year 1,594 1,465 (1) (2) (2) On November 26, 2019, the Company entered into agreements with Sun Life Assurance Company of Canada to purchase group annuity buy-out contracts and transfer approximately $ 272 million (CDN $ 360 million) of its Ontario, Canada defined benefit plans’ projected benefit obligations. The transactions closed on December 5, 2019 and were funded with pension plan assets. Additionally, the Company entered into agreements with existing insurers to convert $ 76 million (CDN $ 101 million) of existing buy-in annuity contracts to buy-out annuity contracts to complete the full transfer of these obligations. These annuity buy-out transactions transferred responsibility for pension benefits for approximately 1,265 retirees and their beneficiaries. Settlement accounting rules required a remeasurement of the plans as of November 26, 2019 and the Company recognized a non-cash pension settlement charge of $ 30 million before tax in the fourth quarter of 2019. INVESTMENT POLICIES AND STRATEGIES OF THE PLAN ASSETS The assets of the pension plans are held by a number of independent trustees and are accounted for separately in the Company’s pension funds. The investment strategy for the assets in the pension plans is to maintain a diversified portfolio of assets, invested in a prudent manner to maintain the security of funds while maximizing returns within the guidelines provided in the investment policy. Diversification of the pension plans’ holdings is maintained in order to reduce the pension plans’ annual return variability, reduce market and credit exposure to any single asset and to any single component of the capital markets, reduce exposure to unexpected inflation, enhance the long-term risk-adjusted return potential of the pension plans and reduce funding risk. Over the long-term, the performance of the pension plans is primarily determined by the long-term asset mix decisions. To manage the long-term risk of not having sufficient funds to match the obligations of the pension plans, the Company conducts asset/liability studies. These studies lead to the recommendation and adoption of a long-term asset mix target that sets the expected rate of return and reduces the risk of adverse consequences to the plans from increases in liabilities and decreases in assets. In identifying the asset mix target that would best meet the investment objectives, consideration is given to various factors, including (a) each plan’s characteristics, (b) the duration of each plan’s liabilities, (c) the solvency and going concern financial position of each plan and their sensitivity to changes in interest rates and inflation, and (d) the long-term return and risk expectations for key asset classes. The investments of each plan can be done directly through cash investments in equities or bonds or indirectly through derivatives or pooled funds. The use of derivatives must be in accordance with an approved mandate and cannot be used for speculative purposes. The Company’s pension funds are not permitted to directly own any of the Company’s shares or debt instruments. The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2020: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2020 2019 Fixed income Cash and cash equivalents 0% – 10% 2 % 2 % Bonds 40% – 50% 42 % 53 % Insurance contracts 11% 11 % — Equity Canadian Equity 3% – 10% 6 % 6 % U.S. Equity 9% – 19% 15 % 15 % International Equity 18% – 28% 24 % 24 % Total (1) 100 % 100 % ( 1 ) Approximately 72% of the pension plans' assets relate to Canadian plans, 28% relate to U.S. plans. RECONCILIATION OF FUNDED STATUS TO AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS The following table presents the difference between the fair value of assets and the actuarially determined projected benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,566 ) (67 ) (1,425 ) (63 ) Fair value of assets at end of year 1,594 — 1,465 — Funded status 28 (67 ) 40 (63 ) The funded status includes $61 million of projected benefit obligation ($55 million at December 31, 2019) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (5 ) — (5 ) Other liabilities and deferred credits (Note 20) (124 ) (62 ) (101 ) (58 ) Other assets (Note 15) 152 — 141 — Net amount recognized in the Consolidated Balance Sheets 28 (67 ) 40 (63 ) The following table presents the pre-tax amounts included in Other comprehensive income (loss): Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service cost (2 ) — — — — — Amortization of prior year service cost (credit) 2 (1 ) 5 (1 ) 5 — Net (loss) gain (26 ) (1 ) 3 1 (31 ) 8 Amortization of net actuarial loss (gain) (1) 12 (1 ) 40 (1 ) 8 (1 ) Net amount recognized in other comprehensive income (loss) (pre-tax) (14 ) (3 ) 48 (1 ) (18 ) 7 (1) At December 31, 2020, the projected benefit obligation and the fair value of plan assets with a projected benefit obligation in excess of fair value of plan assets were $917 million and $793 million, respectively (2019 – $833 million and $732 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2020 2019 2018 $ $ $ Service cost for the year 29 29 34 Interest expense 39 57 53 Expected return on plan assets (68 ) (79 ) (85 ) Amortization of net actuarial loss 10 10 8 Curtailment loss 2 — — Settlement loss 2 30 — Amortization of prior year service cost 2 5 5 Net periodic benefit cost 16 52 15 Components of net periodic benefit cost for other post-retirement Year ended December 31, Year ended December 31, Year ended December 31, benefit plans 2020 2019 2018 $ $ $ Service cost for the year 1 1 1 Interest expense 2 2 2 Amortization of net actuarial gain (1 ) (1 ) (1 ) Amortization of prior year service credit (1 ) (1 ) — Net periodic benefit cost 1 1 2 WEIGHTED-AVERAGE ASSUMPTIONS The Company used the following key assumptions to measure the projected benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2020 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % 3.8 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.0 % 3.8 % 3.5 % Rate of compensation increase 2.8 % 2.6 % 2.8 % Expected long-term rate of return on plan assets 4.6 % 5.2 % 5.0 % A weighted-average interest-crediting rate of 3.3% was assumed for 2020, for the Company’s cash balance pension plan. The Company used a full yield curve approach to estimate the current service and interest cost components of net periodic benefit cost for Canadian pension plans and U.S. funded pension plans. The estimate of these components is made by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. For the U.S. unfunded pension plan and other post-retirement benefits, given materiality, the current service and interest cost components were estimated using a single weighted-average discount rate derived from the yield curve for each unfunded pension plan or based on each post-retirement plans’ projected cash flows. The discount rate of 3.2% for U.S. unfunded plans is obtained by incorporating the plans’ expected cash flows in the Mercer Yield Curve. For Canadian plans, short-term yields to maturity are derived from actual AA rated corporate bond yield data. For longer terms, extrapolated data is used. The extrapolated data are created by adding a term-based spread over long provincial bond yields. For U.S. funded plans, the rates are taken from the Mercer Yield Curve which is based on bonds rated AA by Moody’s or Standard & Poor’s, excluding callable bonds, bonds of less than a minimum issue size, and certain other bonds. The universe of bonds also includes private placement (traded in reliance on Rule 144A and which are at least two years from issuance), make whole, and foreign corporation (denominated in U.S. dollars) bonds. Effective January 1, 2021, the Company will use 4.4% (2020 – 4.8%; 2019 – 5.2%) as the expected return on plan assets, which reflects the current view of long-term investment returns. The overall expected long-term rate of return on plan assets is based on management's best estimate of the long-term returns of the major asset classes (cash and cash equivalents, equities, and bonds) weighted by the target allocation of assets at the measurement date, net of expenses. This rate includes an equity risk premium over government bond returns for equity investments and a value-added premium for the contribution to returns from active management. The sources used to determine management's best estimate of long-term returns are numerous and include country specific bond yields, which may be derived from the market using local bond indices or by analysis of the local bond market, and country-specific inflation and investment market expectations derived from market data and analysts' or governments' expectations, as applicable. December 31, December 31, December 31, Other post-retirement benefit plans 2020 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % 3.8 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.0 % 3.7 % 3.5 % Rate of compensation increase 2.7 % 2.7 % 2.7 % For measurement purposes, a 3.9% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2020. FAIR VALUE MEASUREMENT Fair Value Measurements and Disclosures Topic of FASB ASC 820 establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the assets or liabilities. The following table presents the fair value of the plan assets at December 31, 2020, by asset category: Fair Value Measurements at December 31, 2020 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 60 16 44 — Canadian provincial government bonds 391 388 3 — Canadian corporate debt securities 63 46 17 — U.S. corporate debt securities 23 22 1 — International corporate debt securities 10 10 — — Bond fund (1 & 2) 173 — 173 — Canadian equities (3) 97 97 — — U.S. equities (4) 99 99 — — International equities (5) 268 268 — — U.S. stock index funds (2 & 6) 233 — 233 — Insurance contracts (7) 176 — — 176 Derivative contracts (8) 1 — 1 — Total 1,594 946 472 176 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category represents a group annuity contract purchased through an insurance company that is held in the pension plan’s name as an asset within the pension plan. The insurance contract covers pension entitlements associated with specific groups of retired members of the pension plan. (8) The fair value of the derivative contracts is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. The following table presents the fair value of the plan assets at December 31, 2019, by asset category: Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 66 24 42 — Canadian provincial government bonds 454 453 1 — Canadian corporate debt securities 119 91 28 — U.S. corporate debt securities 21 21 — — International corporate debt securities 13 13 — — Bond fund (1 & 2) 166 — 166 — Canadian equities (3) 93 93 — — U.S. equities (4) 86 86 — — International equities (5) 231 231 — — U.S. stock index funds (2 & 6) 215 — 215 — Insurance contracts 1 — — 1 Total 1,465 1,012 452 1 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Insurance contracts $ Balance at December 31, 2018 76 Settlements (84 ) Return on plan assets 7 Effect of foreign currency exchange rate change 2 Balance at December 31, 2019 1 Purchases 163 Return on plan assets 3 Effect of foreign currency exchange rate change 9 Balance at December 31, 2020 176 ESTIMATED FUTURE BENEFIT PAYMENTS FROM THE PLANS Estimated future benefit payments from the plans for the next 10 years at December 31, 2020 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2021 89 4 2022 88 4 2023 88 4 2024 90 4 2025 89 4 2026 – 2030 434 20 |
Other Operating Loss (Income),
Other Operating Loss (Income), Net | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating Loss (Income), Net | NOTE 8. OTHER OPERATING (INCOME) LOSS, NET Other operating (income) loss, net is an aggregate of both recurring and non-recurring loss or income items and, as a result, can fluctuate from year to year. The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2018 $ $ $ Environmental provision 2 4 5 Foreign exchange loss (gain) — 3 (3 ) Bad debt expense 4 1 2 Net gain on sale of property, plant and equipment (1 ) — (4 ) Income for waiving a non-compete clause (7 ) — — Other (5 ) (4 ) (1 ) Other operating (income) loss, net (7 ) 4 (1 ) |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrift Interest [Abstract] | |
Interest Expense, Net | NOTE 9. INTEREST EXPENSE, NET The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Interest on long-term debt (1) 52 45 56 Interest on receivables securitization 1 2 1 Interest on withdrawal liabilities for multiemployer plans 3 3 2 Amortization of debt issuance costs and other 2 2 3 58 52 62 (1) The Company capitalized $3 million of interest expense in 2020 (2019 – $3 million; 2018 – $1 million). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. INCOME TAXES The Company’s (loss) earnings before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. (loss) earnings (199 ) 80 241 Foreign (loss) earnings (19 ) 24 110 (Loss) earnings before income taxes (218 ) 104 351 Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. Federal and State: Current (21 ) 19 38 Deferred (45 ) (6 ) (1 ) Foreign: Current (7 ) 4 5 Deferred (3 ) — 26 Income tax (benefit) expense (76 ) 17 68 The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 21% to (loss) earnings before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. federal statutory income tax (46 ) 22 74 Reconciling Items: State and local income taxes, net of federal income tax benefit (6 ) 4 9 Foreign income tax rate differential (1 ) 2 6 Tax credits and special deductions (17 ) (18 ) (18 ) U.S. tax rate benefit from loss carryback (5 ) — — Tax rate changes — (4 ) (9 ) Deemed mandatory repatriation tax — — (7 ) Uncertain tax positions (4 ) (3 ) (5 ) Deferred taxes on Personal Care Group Investment (51 ) — — Deferred taxes on foreign earnings (1 ) 2 10 Intercompany income with assets held for sale 3 3 4 Net book value adjustment of assets held for sale 5 — — Valuation allowance on deferred tax assets 47 5 — Nondeductible expenses 1 3 — Other (1 ) 1 4 Income tax (benefit) expense (76 ) 17 68 On January 7, 2021, the Company reached an agreement with AIP to sell the Personal Care business for $920 million. As such, for the December 31, 2020 reporting period, we are no longer indefinitely reinvested in that business and have classified our investment in that business as held for sale. Accordingly, we have recorded a deferred tax asset of $51 million for the difference between the net book value of the business and the tax basis of that business. The Company is accounting for the tax impacts related to the sale of the Personal Care business as a stock investment and therefore recognizing the tax benefit for recording the book/tax basis difference and the net book value adjustment as part of continuing operations. Both of these items impacted the effective tax rate in 2020. The Company has assessed the value of the deferred tax asset related to the basis difference described above, which is expected to be a capital loss for tax purposes upon the completion of the sale, and determined that the Company is not likely to realize a full benefit from the asset. As such, the Company has recorded a valuation allowance of $44 million associated with this deferred tax asset. During the year, the Company also analyzed its existing Arkansas research and development credits and determined an additional valuation allowance of $3 million should be recorded since it is expected some of the credits will expire un-utilized. These amounts unfavorably impacted the effective tax rate in 2020. During 2020, the Company generated a U.S. tax net operating loss which, in accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act will be carried back to 2015. In 2015, the US federal tax rate was 35%, versus the current rate of 21%. Therefore, the Company recorded an additional tax benefit of $5 million related to the tax rate benefit of the loss which favorably impacted the effective tax rate in 2020. The Company recorded $17 million of tax credits, mainly research and experimentation credits, which favorably impacted the effective tax rate in 2020. Since the Company has a tax loss in 2020, the tax credits will be carried forward and are expected to be utilized in future years. As a result of the deemed mandatory repatriation tax requirement of the U.S. Tax Reform, the Company has taxed its undistributed foreign earnings as of December 31, 2017, at reduced tax rates. After completing its evaluation of the U.S. Tax Reform’s impact on its business operations, the Company has determined that it is no longer indefinitely reinvested in these undistributed foreign earnings as well as foreign earnings after December 31, 2017. As such, as of December 31, 2020, the Company has recorded a deferred tax liability of $11 million ($12 million as of December 31, 2019) for foreign withholding tax and various state income taxes associated with future repatriation of these earnings. This additional $1 million tax benefit impacted the effective tax rate for 2020 ($2 million tax expense for 2019 and $10 million tax expense for 2018). The Company recorded $18 million of tax credits in 2019 ($18 million in 2018), mainly research and experimentation credits, which favorably impacted the effective tax rate. Arkansas legislation changes were passed in 2019 which reduced the state tax rate and changed how the apportionment factor is calculated. This resulted in a deferred state tax benefit of $4 million for the Company. Additionally, a valuation allowance of $5 million was recorded on state attributes the Company does not expect to utilize before they expire. On December 22, 2017, the U.S. Tax Reform was signed into law. The U.S. Tax Reform significantly changed U.S. tax law for businesses by, among other things, lowering the maximum federal corporate income tax rate from 35% to 21% effective January 1, 2018, implementing a territorial tax system, and imposing a one-time deemed repatriation tax on accumulated foreign earnings. Additionally, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Reform. December 22, 2018 marked the end of the measurement period for purposes of SAB 118. As such, the Company completed its analysis, including currently available legislative updates, and recorded an additional tax benefit of $13 million for the year ended December 31, 2018. Of this benefit, $7 million related to adjustments to the deemed mandatory repatriation tax and $6 million related to the revaluation of the Company’s net deferred tax liabilities. The $6 million benefit for the revaluation of the net deferred tax liabilities is included in the “Tax rate changes” above, along with $3 million of additional tax benefits relating to 2018 law changes in Sweden and various U.S. states. Deferred tax assets and liabilities are based on tax rates that are expected to be in effect in future periods when deferred items are expected to reverse. Changes in tax rates or tax laws affect the expected future benefit or expense. The effect of such changes that occurred during each of the last three fiscal years is included in “Tax rate changes” disclosed under the effective income tax rate reconciliation shown above. DEFERRED TAX ASSETS AND LIABILITIES The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2020 and December 31, 2019 are comprised of the following: December 31, December 31, 2020 2019 $ $ Accounting provisions 31 27 Net operating loss carryforwards and other deductions 56 9 Pension and other employee future benefit plans 19 16 Inventory 11 12 Tax credits 41 23 Other 12 7 Gross deferred tax assets 170 94 Valuation allowance (64 ) (17 ) Net deferred tax assets 106 77 Property, plant and equipment (367 ) (386 ) Intangible assets (6 ) (6 ) Other (31 ) (17 ) Total deferred tax liabilities (404 ) (409 ) Net deferred tax liabilities (298 ) (332 ) Included in: Deferred income taxes and other (298 ) (332 ) Total (298 ) (332 ) At December 31, 2020, the Company had no federal net operating loss carryforwards, however, the Company has recorded a tax asset related to the book/tax basis difference of the Assets Held for Sale which is expected to be a capital loss once the sale is completed. The Company also has other foreign net operating losses of $4 million at December 31, 2020, which may be carried forward indefinitely. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible. The Company evaluates the realization of deferred tax assets on a quarterly basis. Evaluating the need for an amount of a valuation allowance for deferred tax assets often requires significant judgment. All available evidence, both positive and negative, is considered when determining whether, based on the weight of that evidence, a valuation allowance is needed. Specifically, the Company evaluated the following items: • Historical income / (losses) – particularly the most recent three-year period • Reversals of future taxable temporary differences • Projected future income / (losses) • Tax planning strategies • Divestitures Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, with the following exceptions: • US state tax credits ($13 million valuation allowance) • Tax basis difference on assets held for sale ($44 million valuation allowance) • Foreign loss carryforwards ($7 million valuation allowance) As of December 31, 2020, the Company has recorded a deferred tax liability of $11 million ($12 million for 2019) for foreign withholding tax and various state income taxes associated with the repatriation of earnings subject to the repatriation tax as well as future repatriation of its unremitted foreign earnings. With the exception of the Personal Care business which is being shown as held for sale, the Company has not provided for deferred taxes on the outside basis differences in its investments in its foreign subsidiaries that are unrelated to unremitted earnings as it estimates that this deferred tax liability in combination with the repatriation tax amount, covers all tax liabilities with foreign investments to date. The Company is indefinitely reinvested in the outside basis differences of its remaining foreign subsidiaries. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES At December 31, 2020, the Company had gross unrecognized tax benefits of approximately $23 million ($28 million and $28 million for 2019 and 2018, respectively). If recognized in 2020, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. These amounts are included in Deferred income taxes and other on the Consolidated Balance Sheets. December 31, December 31, December 31, 2020 2019 2018 $ $ $ Balance at beginning of year 28 28 27 Additions based on tax positions related to current year 1 3 3 Additions for tax positions of prior years 1 2 3 Expirations of statutes of limitations (7 ) (6 ) (6 ) Interest — 1 1 Balance at end of year 23 28 28 The Company recorded less than $1 million of accrued interest associated with unrecognized tax benefits for the period ending December 31, 2020 ($1 million for 2019 and $1 million for 2018). The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. The Company believes it is reasonably possible that up to $4 million of its unrecognized benefits may be recognized by December 31, 2021. However, the amount and timing of the recognition of these benefits is subject to some uncertainty. The major jurisdictions where the Company and its subsidiaries will file tax returns for 2020 are Canada and the U.S. The Company will file one consolidated U.S. federal income tax return. The Company and its subsidiaries will also file returns in various other countries in Europe and Asia as well as various U.S. states and Canadian provinces. At December 31, 2020, the Company’s subsidiaries are subject to foreign federal income tax examinations for the tax years 2013 through 2019, with federal years prior to 2017 being closed from a cash tax liability standpoint in the U.S. The Company does not anticipate that adjustments stemming from these audits would result in a significant change to the results of its operations and financial condition. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 11. INVENTORIES The following table presents the components of inventories: December 31, December 31, 2020 2019 $ $ Work in process and finished goods 321 325 Raw materials 107 119 Operating and maintenance supplies 202 219 630 663 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 12. PROPERTY, PLANT AND EQUIPMENT The following table presents the components of property, plant and equipment: Range of useful lives December 31, December 31, (in years) 2020 2019 $ $ Machinery and equipment 3 – 20 7,617 7,436 Buildings and improvements 10 – 40 962 944 Timberlands (1) 195 191 Assets under construction — 87 135 8,861 8,706 Less: Accumulated depreciation (6,838 ) (6,483 ) 2,023 2,223 (1) Amortization is calculated using the unit of production method. Depreciation expense related to property, plant and equipment for the year ended December 31, 2020 was $222 million (2019 – $230 million; 2018 – $240 million). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | NOTE 13. 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: Year ended Year ended December 31, December 31, 2020 2019 $ $ Operating lease expense 22 21 Finance lease expense: Amortization of right-of-use assets 1 — Interest on lease liabilities — — Total finance lease expense 1 — For the year ended December 31, 2018, total operating lease expense amounted to $19 million. Supplemental cash flow information related to leases was as follows: Year ended Year ended December 31, December 31, 2020 2019 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 23 21 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 12 24 Finance leases — — Supplemental balance sheet information related to leases was as follows: December 31, December 31, 2020 2019 $ $ Operating leases Operating leases right-of-use assets 59 58 Lease liabilities due within one year 20 18 Operating lease liabilities 50 40 70 58 Finance leases Property, plant and equipment 11 9 Accumulated depreciation (3 ) (2 ) 8 7 Long-term debt due within one year 1 1 Long-term debt 9 8 10 9 Weighted-average remaining lease term Operating leases 4.7 years 3.8 years Finance leases 8.8 years 10.4 years Weighted-average discount rate Operating leases 4.4 % 4.4 % Finance leases 6.1 % 7.0 % Maturities of lease liabilities at December 31, 2020 were as follows: Operating leases $ 2021 20 2022 18 2023 15 2024 10 2025 6 Thereafter 9 Total lease payments 78 Less: Imputed interest 8 Total lease liabilities 70 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 14. INTANGIBLE ASSETS The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2020 2019 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 20 – 30 24 (10 ) 14 24 (9 ) 15 Technology 7 – 20 8 (5 ) 3 8 (5 ) 3 Non-Compete 9 1 (1 ) — 1 (1 ) — 36 (17 ) 19 36 (16 ) 20 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 License rights 6 — 6 6 — 6 Total 46 (17 ) 29 46 (16 ) 30 Amortization expense related to intangible assets for the year ended December 31, 2020 was $1 million ($1 million in 2019 and 2018, respectively). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2021 2022 2023 2024 2025 $ $ $ $ $ Amortization expense related to intangible assets 1 1 1 1 1 The Company performed its annual impairment test on its indefinite-lived intangible assets at October 1, 2020, 2019 and 2018, using a quantitative approach, except for the license rights and water rights, where the Company used a qualitative approach, and determined that the estimated fair values of its indefinite-lived intangible assets exceeded their carrying amounts. No impairment charge was recorded for indefinite-lived intangible assets during 2020, 2019 or 2018. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 15. OTHER ASSETS The following table presents the components of other assets: December 31, December 31, 2020 2019 $ $ Pension asset - defined benefit pension plans (Note 7) 152 141 Investment tax credits receivable 4 5 Unamortized debt issuance costs 3 3 Derivative financial instruments (Note 23) 17 4 Equity swap contracts (Note 23) 2 — Investments and advances 6 5 Other 5 5 189 163 |
Closure and Restructuring Costs
Closure and Restructuring Costs and Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Impairment of Long-Lived Assets | NOTE 16. CLOSURE AND RESTRUCTURING COSTS AND IMPAIRMENT OF LONG-LIVED ASSETS At December 31, 2020, the Company’s total provision for the withdrawal liabilities of its U.S. multiemployer plans was $42 million. 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, Tenessee mill, the carrying amount of the remaining assets of the Kingsport mill has been tested for impairment in the third quarter and resulted in no additional impairment charge. 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 six to nine months. For the year ended December 31, 2020, the Company recorded $136 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 $33 million of severance and termination costs, $31 million of inventory obsolescence, $12 million of environmental costs, $2 million of pension curtailment loss, $2 million of pension settlement loss and $18 million of licenses fees, write-offs and 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. For the year ended December 31, 2019, the Company recorded $32 million of accelerated depreciation under Impairment of long-lived assets and $1 million of accelerated depreciation under Depreciation and amortization, on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Additionally, the Company recorded $3 million of severance and termination costs, $4 million of inventory obsolescence, and $2 million of other costs, under Closure and restructuring costs. Concurrently, with the Ashdown paper machine closure and related workforce reduction, management negotiated a voluntary early retirement program to reduce costs and put the mill in a stronger cost position in the long-term. The Company additionally recorded $13 million of severance and termination costs under Closure and restructuring costs. Other costs During 2020 other costs related to previous and ongoing closures and restructuring included $1 million of severance and termination costs (2019 and 2018 – nil). The following tables provide the components of closure and restructuring costs: Year ended December 31, 2020 Pulp and Paper Corporate Total $ $ $ Severance and termination costs 33 1 34 Inventory write-down (storeroom, spare parts and other) 31 — 31 Environmental costs 12 — 12 Pension curtailment and settlement charges 4 — 4 Licenses fees, write-offs and other costs 16 2 18 Closure and restructuring costs 96 3 99 Year ended December 31, 2019 Pulp and Paper Total $ $ Severance and termination costs 16 16 Inventory write-down 4 4 Other costs 2 2 Closure and restructuring costs 22 22 The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2020 2019 $ $ Balance at beginning of year 12 2 Additions 48 12 Payments (32 ) (1 ) Reversal — (1 ) Balance at end of year (1) 28 12 (1) The $28 million provision is comprised of severance and termination costs, of which $9 million and $6 million relate to the Pulp and Paper business and Corporate, respectively and licenses fees and other costs of $13 million relate to Corporate. Closure and restructuring costs are based on management’s best estimates at December 31, 2020. Actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further impairment charges may be required in future periods. |
Trade and Other Payables
Trade and Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Trade and Other Payables | NOTE 17. TRADE AND OTHER PAYABLES The following table presents the components of trade and other payables: December 31, December 31, 2020 2019 $ $ Trade payables 260 310 Payroll-related accruals 104 99 Accrued interest 16 16 Payables on capital projects 13 27 Rebate accruals 44 58 Liability - pension and other post-retirement benefit plans (Note 7) 5 5 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 22) 10 8 Closure and restructuring costs liability (Note 16) 22 12 Derivative financial instruments (Note 23) 3 11 Dividends payable (Note 21) — 26 Stock-based compensation - liability awards (Note 23) 5 6 484 580 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 18. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component (1) Net derivative gains (losses) on Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) 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 1 N/A N/A N/A 1 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 23 N/A N/A N/A 23 Net loss N/A (21 ) (1 ) N/A (22 ) Foreign currency items N/A N/A N/A 63 63 Other comprehensive income (loss) before reclassifications 27 (21 ) (1 ) 63 68 Amounts reclassified from Accumulated other comprehensive loss 12 11 (2 ) — 21 Net current period other comprehensive income (loss) 39 (10 ) (3 ) 63 89 Balance at December 31, 2020 34 (207 ) 8 (139 ) (304 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts (1) (10 ) (4 ) 2 Currency options and forwards (1) (6 ) (7 ) 1 Total before tax (16 ) (11 ) 3 Tax benefit (expense) 4 3 (1 ) Net of tax (12 ) (8 ) 2 Amortization of defined benefit pension items Amortization of net actuarial loss (2)(3) (12 ) (40 ) (8 ) Amortization of prior year service cost (2) (2 ) (5 ) (5 ) Total before tax (14 ) (45 ) (13 ) Tax benefit 3 12 3 Net of tax (11 ) (33 ) (10 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) 1 1 1 Amortization of prior year service credit (2) 1 1 — Total before tax 2 2 1 Tax expense — (1 ) — Net of tax 2 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 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). (3) Includes a non-cash pension settlement charge of $2 million in 2020 ( 2019 – 2018 – |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 19. LONG-TERM DEBT Par December 31, December 31, Maturity Amount Currency 2020 2019 $ $ $ Unsecured notes 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 250 250 Term Loan 2025 — US 294 — Revolving Credit Facility 2023 — US — 80 Securitization 2021 — US — 55 Finance lease obligations and other 2021 - 2032 10 9 1,103 943 Less: Unamortized debt issuance costs 6 5 Less: Due within one year 13 1 1,084 937 Principal long-term debt repayments, including finance lease obligations, in each of the next five years will amount to: Long-term debt Finance leases and other $ $ 2021 12 1 2022 312 2 2023 12 2 2024 12 2 2025 246 1 Thereafter 500 5 1,094 13 Less: Amounts representing interest — 3 Total payments 1,094 10 TERM LOAN O n 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. All borrowings under the Term Loan are unsecured. Certain domestic subsidiaries of the Company guarantee the obligations arising under the Term Loan Agreement. The Term Loan Agreement contains customary covenants, including two financial covenants: (i) an interest coverage ratio, as defined in the Term Loan Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Term Loan Agreement that must be maintained at a level of not greater than 3.75 to 1. At December 31, 2020, the Company was in compliance with these financial covenants and had $294 million of borrowings outstanding under the Term Loan Agreement (December 31, 2019 – nil). REVOLVING CREDIT FACILITY The Company has an unsecured $700 million revolving credit facility (the “Credit Agreement”) with certain domestic and foreign banks that matures on August 22, 2023. The maturity date of the facility may be extended by one year and the lender commitments may be increased by up to $400 million, subject to lender approval and customary requirements. Borrowings by the Company under the Credit Agreement are guaranteed by its significant domestic subsidiaries. Borrowings by certain foreign subsidiaries under the Credit Agreement are guaranteed by the Company, the Company’s significant domestic subsidiaries and certain of the Company’s significant foreign subsidiaries. Borrowings under the Credit Agreement bear interest at LIBOR, EURIBOR, Canadian bankers' acceptance or prime rate, as applicable, plus a margin linked to the Company’s credit rating. In addition, the Company pays facility fees quarterly at rates dependent on the Company's credit ratings. The Financial Conduct Authority in the United Kingdom plans to phase out LIBOR by the end of 2021. The Company does not anticipate a significant impact to its financial position from the planned phase out of LIBOR. The Credit Agreement contains customary covenants and events of default for transactions of this type, including two financial covenants: (i) an interest coverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not greater than 3.75 to 1 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2020, the Company was in compliance with these financial covenants, and had no borrowings and $54 million of letters of credit outstanding under this facility (December 31, 2019 – $80 million and nil). RECEIVABLES SECURITIZATION The Company has a $150 million receivables securitization facility that matures in November 2021. This facility provides additional liquidity to the Company to fund its operations or issue letters of credit. The costs under the program vary based on changes in interest rates and amounts utilized. Sales of receivables under this program are accounted for as secured borrowings. The program consists of the ongoing sale of most of the receivables of its domestic subsidiaries to a bankruptcy remote consolidated subsidiary which, in turn, transfers a senior beneficial interest in them to a special purpose entity managed by a financial institution for multiple sellers of receivables to support borrowings or the issue of letters of credit by the Company. The program contains certain termination events, which include, but are not limited to, matters related to receivable performance, certain defaults occurring under the Credit Agreement, or the failure by Domtar to satisfy material obligations. At December 31, 2020, there were no borrowings and no letters of credit outstanding under this facility (2019 – $55 million and $53 million, respectively). At December 31, 2020, the Company had $111 million unused and available under this facility. In 2020, a net charge of $1 million (2019 – $2 million; 2018 – $1 million) resulted from the program described above and was included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Deferred Credits | NOTE 20. OTHER LIABILITIES AND DEFERRED CREDITS The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2020 2019 $ $ Liability - other post-retirement benefit plans (Note 7) 62 58 Pension liability - defined benefit pension plans (Note 7) 124 101 Pension liability - multiemployer plan withdrawal 40 42 Long-term income taxes payable 9 9 Closure and restructuring costs liability (Note 16) 6 — Provision for environmental and asset retirement obligations (Note 22) 37 27 Stock-based compensation - liability awards (Note 23) 11 16 Derivative financial instruments (Note 23) 3 8 Worker's compensation and other related accruals 14 5 Other 8 3 314 269 ASSET RETIREMENT OBLIGATIONS The asset retirement obligations are principally linked to landfill capping obligations and demolition of certain abandoned buildings. At December 31, 2020, Domtar estimated the net present value of its asset retirement obligations to be $14 million (2019 – $13 million); the present value is based on probability weighted undiscounted cash outflows of $59 million (2019 – $58 million). The majority of the asset retirement obligations are estimated to be settled prior to December 31, 2060. Domtar’s credit adjusted risk-free rates were used to calculate the net present value of the asset retirement obligations. The rates used vary between 4.7% and 12.0%, based on the prevailing rate at the moment of recognition of the liability and on its settlement period. The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2020 2019 $ $ Asset retirement obligations, beginning of year 13 12 Accretion expense 1 1 Asset retirement obligations, end of year 14 13 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 21. SHAREHOLDERS’ EQUITY DIVIDENDS During 2020, the Company declared one quarterly dividend of $0.455 per share, to holders of the Company’s common stock. Total dividends of approximately $25 million were paid on April 15, 2020 to shareholders of record as of April 2, 2020. During 2019, the Company declared one quarterly dividend of $0.435 and three quarterly dividends of $0.455 per share, to holders of the Company’s common stock. Dividends aggregating $28 million, $28 million, $27 million and $26 million were paid on April 15, 2019, July 16, 2019, October 15, 2019 and January 15, 2020, respectively, to shareholders of record as of April 2, 2019, July 2, 2019, October 2, 2019 and January 2, 2020, respectively. STOCK REPURCHASE PROGRAM The Company’s Board of Directors has authorized a stock repurchase program (“the Program”) of up to $1.6 billion. At December 31, 2020, the Company had approximately $344 million of remaining availability 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 2020, the Company repurchased 1,798,306 shares at an average price of $33.05 for a total cost of $59 million. During 2019, the Company repurchased 6,220,658 shares at an average price of $35.29 for a total cost of $219 million. 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. On February 11, 2021, the Company announced that it will resume its stock repurchase program. The Board of Directors will continue to evaluate the Company’s capital return program based upon customary considerations, including market conditions. The authorized stated capital consists of the following: PREFERRED SHARES The Company is authorized to issue 20 million preferred shares, par value $0.01 per share. The Board of Directors of the Company will determine the voting powers (if any) of the shares, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares at the time of issuance. No preferred shares were outstanding at December 31, 2020 or December 31, 2019. COMMON STOCK The Company is authorized to issue two billion shares of common stock, par value $0.01 per share. Holders of the Company’s common stock are entitled to one vote per share. The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2020 and December 31, 2019, were as follows: December 31, December 31, 2020 2019 Number Number Common stock of shares $ of shares $ Balance at beginning of year 56,880,910 1 62,914,569 1 Shares issued Treasury stock (1) (1,686,372 ) — (6,033,659 ) — Balance at end of year 55,194,538 1 56,880,910 1 (1) During 2020, the Company repurchased 1,798,306, and issued 111,934 shares out of Treasury stock in conjunction with the exercise of stock-based compensation awards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 22. COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. The Company may also incur substantial costs in relation to enforcement actions (including orders requiring corrective measures, installation of pollution control equipment or other remedial actions) as a result of violations of, or liabilities under, environmental laws and regulations applicable to its past and present properties. The Company’s ongoing efforts to identify potential environmental concerns that may be associated with such properties may result in additional environmental costs and liabilities which cannot be reasonably estimated at this time. In 2020, the Company’s operating expenses for environmental matters amounted to $62 million (2019 – $71 million; 2018 – $68 million). The Company made capital expenditures for environmental matters of $4 million in 2020 (2019 – $19 million; 2018 – $8 million). 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: December 31, December 31, 2020 2019 $ $ Balance at beginning of year 35 37 Additions and other changes 15 4 Environmental spending (3 ) (7 ) Effect of foreign currency exchange rate change — 1 Balance at end of year (1) 47 35 (1) At December 31, 2020, $10 million is shown in Trade and other payables (see Note 17) and $37 million is shown in Other liabilities and deferred credits (see Note 20). At December 31, 2020, anticipated undiscounted payments in each of the next five years are as follows: 2021 2022 2023 2024 2025 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 10 2 2 6 2 70 92 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 December 31, 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. OTHER COMMERCIAL COMMITMENTS The Company has commitments to purchase property, plant and equipment, roundwood, wood chips, gas and certain chemicals. Purchase orders in the normal course of business are excluded from the table below. Any amounts for which the Company is liable under purchase orders are reflected in the Consolidated Balance Sheets as Trade and other payables. Minimum future payments under these other commercial commitments, determined at December 31, 2020, were as follows: 2021 2022 2023 2024 2025 Thereafter Total $ $ $ $ $ $ $ Other commercial commitments 155 10 6 6 — 2 179 INDEMNIFICATIONS I n 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, compliance with laws, 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. Pension Plans The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At December 31, 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. The ACE rule was legally challenged in the U.S. Court of Appeals for the D.C. Circuit. The Court ruled the EPA wrongly understood the Clean Air Act and the ACE rule and its embedded repeal of the Clean Power Plan was vacated and sent back to the EPA for further consideration. Regardless of the outcome of the EPA’s further consideration, 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 Canadian Government has accepted Ontario’s program as an alternative to the federal program and work to transition has begun. The Company does not expect to be disproportionately affected compared with other pulp and paper producers located in Ontario. 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, the Company does not expect its facilities to be disproportionately affected compared to other U.S. pulp and paper producers. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 23. DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices, 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 receivables from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of December 31, 2020, two customers located in the U.S. represented 15% or $58 million, and 12% or $46 million, respectively, of the Company’s receivables (December 31, 2019 – two customers located in the U.S. represented 14% or $66 million, and 13% 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 36 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of December 31, 2020 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBtu (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2021 9,270,000 $ 27 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) MMBtu: Millions of British thermal units The natural gas derivative contracts were effective as of December 31, 2020. FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States and Canada. As a result, it is exposed to movements in the foreign currency exchange rate in Canada. Moreover, certain assets and liabilities are denominated in Canadian dollars 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. 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 December 31, 2020 to hedge forecasted purchases and sales: Percentage of Notional forecasted Year of contractual exposures under Average Average Currency exposure hedged maturity value contracts Protection rate Obligation rate CAD/USD 2021 781 CAD 82% 1 USD = 1.3359 1 USD = 1.3536 CAD/USD 2022 382 CAD 40% 1 USD = 1.3486 1 USD = 1.3486 The foreign exchange derivative contracts were effective as of December 31, 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 December 31, 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. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2020 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 31 — 31 — (a) Prepaid expenses Currency derivatives 16 — 16 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 48 — 48 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Natural gas swap contracts 3 — 3 — (a) Other liabilities and deferred credits Total Liabilities 6 — 6 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 11 11 — — Other liabilities and deferred credits Equity swap contracts 2 2 — — Other assets Long-term debt 1,234 — 1,234 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $4 million at December 31, 2020, of which a loss of $2 million will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2020. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $46 million at December 31, 2020, of which a gain of $30 million will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at December 31, 2020. Quoted prices in Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2019 (Level 1) (Level 2) (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 6 6 — — Trade and other payables Stock-based compensation - liability awards 16 16 — — Other liabilities and deferred credits Long-term debt 1,029 — 1,029 — (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 December 31, 2020 and December 31, 2019. The carrying value of the Company’s long-term debt is $1,097 million and $938 million at December 31, 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. |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 24. SEGMENT DISCLOSURES Following the agreement on January 7, 2021 to sell the Company’s Personal Care business, the Company now operates as a single reportable segment as described below, which also represents its only operating segment: • 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. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates segment performance based on operating income. Certain Corporate general and administrative costs are allocated to the segment. Corporate costs that are not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, are presented on the Corporate line. The Company does not allocate interest expense and income taxes to the segment. Segment assets are those directly used in segment operations. The Company attributes sales to customers in different geographical areas on the basis of the location of the customer. Long-lived assets consist of property, plant and equipment, operating lease right-of-use assets and intangible assets used in the generation of sales in the different geographical areas. Starting January 1, 2020, EAM Corporation, a manufacturer of high quality airlaid and ultrathin laminated cores, previously reported under the Company’s former 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: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2020 2019 2018 $ $ $ Sales by product group Communication papers 1,968 2,571 2,548 Specialty and packaging papers 575 637 710 Market pulp 1,064 1,119 1,260 Absorbent hygiene products 45 42 47 Consolidated sales (1) 3,652 4,369 4,565 Operating (loss) income from continuing operations (2) Pulp and Paper (143 ) 226 442 Corporate (34 ) (47 ) (47 ) Consolidated operating (loss) income from continuing operations (177 ) 179 395 Interest expense, net 58 52 62 Non-service components of net periodic benefit cost (17 ) 23 (18 ) (Loss) earnings before income taxes and equity loss (218 ) 104 351 Income tax (benefit) expense (76 ) 17 68 Equity loss, net of taxes 3 2 2 (Loss) earnings from continuing operations (145 ) 85 281 Earnings (loss) from discontinued operations, net of taxes 18 (1 ) 2 Net (loss) earnings (127 ) 84 283 (1) (2) December 31, December 31, 2020 2019 $ $ Segment assets Pulp and Paper 3,209 3,562 Corporate 514 203 Total for reportable segments 3,723 3,765 Assets held for sale 1,133 1,138 Consolidated assets 4,856 4,903 Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Additions to property, plant and equipment Pulp and Paper 124 225 167 Corporate 3 3 2 Discontinued Operations 33 36 34 Consolidated additions to property, plant and equipment 160 264 203 Add: Change in payables on capital projects 15 (9 ) (8 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 175 255 195 Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Geographic information Sales United States 2,755 3,306 3,257 Canada 324 419 470 Europe 117 150 221 Asia 374 369 488 Other foreign countries 82 125 129 3,652 4,369 4,565 December 31, December 31, 2020 2019 $ $ Long-lived assets United States 1,423 1,620 Canada 688 691 2,111 2,311 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | NOTE 25. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the Company’s issuance of debt securities that are fully and unconditionally guaranteed by Domtar’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. Upon the sale of the Personal Care business, anticipated to take place during the first quarter of 2021, Attends Healthcare Products Inc., Associated Hygienic Products LLC and Home Delivery Incontinent Supplies Co. will cease to be guarantors. The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at December 31, 2020 and 2019 and the Statements of Earnings (Loss) and Comprehensive Income (Loss) and Cash Flows for the years ended December 31, 2020, 2019 and 2018 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended (LOSS) AND COMPREHENSIVE INCOME (LOSS) December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,232 1,352 (932 ) 3,652 Operating expenses Cost of sales, excluding depreciation and amortization — 2,952 1,105 (932 ) 3,125 Depreciation and amortization — 164 59 — 223 Selling, general and administrative 8 38 207 — 253 Impairment of long-lived assets — 136 — — 136 Closure and restructuring costs — 84 15 — 99 Other operating loss (income), net 2 (5 ) (4 ) — (7 ) 10 3,369 1,382 (932 ) 3,829 Operating loss (10 ) (137 ) (30 ) — (177 ) Interest expense (income), net 65 72 (79 ) — 58 Non-service components of net periodic benefit cost — (6 ) (11 ) — (17 ) (Loss) earnings before income taxes and equity loss (75 ) (203 ) 60 — (218 ) Income tax (benefit) expense (24 ) (73 ) 21 — (76 ) Equity loss, net of taxes — 1 2 — 3 Share in earnings of equity accounted investees (72 ) 52 — 20 — (Loss) earnings from continuing operations (123 ) (79 ) 37 20 (145 ) (Loss) earnings from discontinued operations, net of taxes (4 ) 7 15 — 18 Net (loss) earnings (127 ) (72 ) 52 20 (127 ) Other comprehensive income 89 80 54 (134 ) 89 Comprehensive (loss) income (38 ) 8 106 (114 ) (38 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,878 1,491 (1,000 ) 4,369 Operating expenses Cost of sales, excluding depreciation and amortization 1 3,349 1,260 (1,000 ) 3,610 Depreciation and amortization — 172 59 — 231 Selling, general and administrative 9 162 120 — 291 Impairment of long-lived assets — 32 — — 32 Closure and restructuring costs — 22 — — 22 Other operating (income) loss, net — (3 ) 7 — 4 10 3,734 1,446 (1,000 ) 4,190 Operating (loss) income (10 ) 144 45 — 179 Interest expense (income), net 69 80 (97 ) — 52 Non-service components of net periodic benefit cost — 2 21 — 23 (Loss) earnings before income taxes and equity loss (79 ) 62 121 — 104 Income tax (benefit) expense (17 ) 2 32 — 17 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 146 121 — (267 ) — Earnings from continuing operations 84 180 88 (267 ) 85 (Loss) earnings from discontinued operations, net of taxes — (34 ) 33 — (1 ) Net earnings 84 146 121 (267 ) 84 Other comprehensive income 74 81 49 (130 ) 74 Comprehensive income 158 227 170 (397 ) 158 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,961 1,732 (1,128 ) 4,565 Operating expenses Cost of sales, excluding depreciation and amortization — 3,437 1,329 (1,128 ) 3,638 Depreciation and amortization — 181 60 — 241 Selling, general and administrative 11 25 256 — 292 Other operating (income) loss, net — (3 ) 2 — (1 ) 11 3,640 1,647 (1,128 ) 4,170 Operating (loss) income (11 ) 321 85 — 395 Interest expense (income), net 62 91 (91 ) — 62 Non-service components of net periodic benefit cost — 1 (19 ) — (18 ) (Loss) earnings before income taxes and equity loss (73 ) 229 195 — 351 Income tax (benefit) expense (20 ) 38 50 — 68 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 336 166 — (502 ) — Earnings from continuing operations 283 356 144 (502 ) 281 (Loss) earnings from discontinued operations, net of taxes — (20 ) 22 — 2 Net earnings 283 336 166 (502 ) 283 Other comprehensive loss (131 ) (133 ) (110 ) 243 (131 ) Comprehensive income 152 203 56 (259 ) 152 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 208 5 96 — 309 Receivables — 65 315 — 380 Inventories — 425 205 — 630 Prepaid expenses 8 37 5 — 50 Income and other taxes receivable 36 — 18 — 54 Intercompany accounts 759 902 433 (2,094 ) — Assets held for sale — 488 648 (3 ) 1,133 Total current assets 1,011 1,922 1,720 (2,097 ) 2,556 Property, plant and equipment, net — 1,348 675 — 2,023 Operating lease right-of-use assets — 48 11 — 59 Intangible assets, net — 24 5 — 29 Investments in affiliates 3,558 2,169 — (5,727 ) — Intercompany long-term advances 5 — 1,157 (1,162 ) — Other assets 11 41 143 (6 ) 189 Total assets 4,585 5,552 3,711 (8,992 ) 4,856 Liabilities and shareholders' equity Current liabilities Trade and other payables 26 294 167 (3 ) 484 Intercompany accounts 677 491 926 (2,094 ) — Income and other taxes payable 3 11 1 — 15 Operating lease liabilities due within one year — 15 5 — 20 Long-term debt due within one year 12 — 1 — 13 Liabilities held for sale — 121 174 — 295 Total current liabilities 718 932 1,274 (2,097 ) 827 Long-term debt 1,075 — 9 — 1,084 Operating lease liabilities — 44 6 — 50 Intercompany long-term loans 509 653 — (1,162 ) — Deferred income taxes and other — 237 90 (6 ) 321 Other liabilities and deferred credits 23 128 163 — 314 Shareholders' equity 2,260 3,558 2,169 (5,727 ) 2,260 Total liabilities and shareholders' equity 4,585 5,552 3,711 (8,992 ) 4,856 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 1 11 49 — 61 Receivables — 114 368 — 482 Inventories — 468 195 — 663 Prepaid expenses 5 14 10 — 29 Income and other taxes receivable 34 — 22 — 56 Intercompany accounts 538 547 237 (1,322 ) — Assets held for sale — 110 117 — 227 Total current assets 578 1,264 998 (1,322 ) 1,518 Property, plant and equipment, net — 1,545 678 — 2,223 Operating lease right-of-use assets — 44 14 — 58 Intangible assets, net — 25 5 — 30 Investments in affiliates 3,627 2,493 — (6,120 ) — Intercompany long-term advances 5 1 1,482 (1,488 ) — Other assets 14 30 130 (11 ) 163 Non-current assets held for sale — 383 528 — 911 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 57 338 185 — 580 Intercompany accounts 344 299 679 (1,322 ) — Income and other taxes payable 1 12 2 — 15 Operating lease liabilities due within one year — 13 5 — 18 Long-term debt due within one year — — 1 — 1 Liabilities held for sale — 60 83 — 143 Total current liabilities 402 731 955 (1,322 ) 766 Long-term debt 873 1 63 — 937 Operating lease liabilities — 31 9 — 40 Intercompany long-term loans 541 946 1 (1,488 ) — Deferred income taxes and other — 277 94 (11 ) 360 Other liabilities and deferred credits 32 96 141 — 269 Long-term liabilities held for sale — 76 79 — 155 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 Year ended December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (127 ) (72 ) 52 20 (127 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings 167 107 284 (20 ) 538 Cash flows provided from operating activities 40 35 336 — 411 Investing activities Additions to property, plant and equipment — (104 ) (71 ) — (175 ) Proceeds from disposals of property, plant and equipment — 3 — — 3 Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows provided from (used for) investing activities — (101 ) (101 ) — (202 ) 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 (6 ) — (1 ) — (7 ) Increase in long-term advances to related parties — — (137 ) 137 — Decrease in long-term advances to related parties 67 70 — (137 ) — Other (4 ) — 1 — (3 ) Cash flows provided from (used for) financing activities 167 60 (192 ) — 35 Net increase (decrease) in cash and cash equivalents 207 (6 ) 43 — 244 Impact of foreign exchange on cash — — 4 — 4 Cash and cash equivalents at beginning of year 1 11 49 — 61 Cash and cash equivalents at end of year 208 5 96 — 309 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 84 146 121 (267 ) 84 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 32 (93 ) 152 267 358 Cash flows provided from operating activities 116 53 273 — 442 Investing activities Additions to property, plant and equipment — (137 ) (118 ) — (255 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Cash flows used for investing activities — (136 ) (118 ) — (254 ) Financing activities Dividend payments (110 ) — — — (110 ) Stock repurchase (219 ) — — — (219 ) Net change in bank indebtedness — 9 — — 9 Change in revolving credit facility 80 — — — 80 Proceeds from receivables securitization facility — — 205 — 205 Repayments of receivables securitization facility — — (200 ) — (200 ) Repayments of long-term debt — — (1 ) — (1 ) Increase in long-term advances to related parties — — (220 ) 220 — Decrease in long-term advances to related parties 135 85 — (220 ) — Other (1 ) — — — (1 ) Cash flows (used for) provided from financing activities (115 ) 94 (216 ) — (237 ) Net increase (decrease) in cash and cash equivalents 1 11 (61 ) — (49 ) Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of year — — 111 — 111 Cash and cash equivalents at end of year 1 11 49 — 61 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 283 336 166 (502 ) 283 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (557 ) 434 (108 ) 502 271 Cash flows (used for) provided from operating activities (274 ) 770 58 — 554 Investing activities Additions to property, plant and equipment — (142 ) (53 ) — (195 ) Proceeds from disposals of property, plant and equipment — 1 4 — 5 Other — (2 ) (4 ) — (6 ) Cash flows used for investing activities — (143 ) (53 ) — (196 ) Financing activities Dividend payments (108 ) — — — (108 ) Proceeds from receivables securitization facility — — 85 — 85 Repayments of receivables securitization facility — — (60 ) — (60 ) Repayments of long-term debt — (300 ) (1 ) — (301 ) Increase in long-term advances to related parties — (341 ) (36 ) 377 — Decrease in long-term advances to related parties 377 — — (377 ) — Other 2 — — — 2 Cash flows provided from (used for) financing activities 271 (641 ) (12 ) — (382 ) Net decrease in cash and cash equivalents (3 ) (14 ) (7 ) — (24 ) Impact of foreign exchange on cash — — (4 ) — (4 ) Cash and cash equivalents at beginning of year 3 14 122 — 139 Cash and cash equivalents at end of year — — 111 — 111 |
Interim Financial Results
Interim Financial Results | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Results | Domtar Corporation Interim Financial Results (Unaudited) (In millions of dollars, unless otherwise noted) 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,031 $ 802 $ 899 $ 920 $ 3,652 Operating loss (1 ) (4 ) (a) (152 ) (b) (20 ) (c) (177 ) Loss before income taxes and equity loss (11 ) (14 ) (162 ) (31 ) (218 ) Loss from continuing operations (15 ) (3 ) (111 ) (16 ) (145 ) Earnings (loss) from discontinued operations, net of taxes 20 22 19 (43 ) 18 Net earnings (loss) 5 19 (92 ) (59 ) (127 ) Basic net earnings (loss) per common share Loss from continuing operations (0.27 ) (0.05 ) (2.01 ) (0.29 ) (2.62 ) Earnings (loss) from discontinued operations 0.36 0.39 0.34 (0.78 ) 0.33 Basic net earnings (loss) per common share 0.09 0.34 (1.67 ) (1.07 ) (2.29 ) Diluted net earnings (loss) per common share Loss from continuing operations (0.27 ) (0.05 ) (2.01 ) (0.29 ) (2.62 ) Earnings (loss) from discontinued operations 0.36 0.39 0.34 (0.78 ) 0.33 Diluted net earnings (loss) per common share 0.09 0.34 (1.67 ) (1.07 ) (2.29 ) 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,157 $ 1,106 $ 1,079 $ 1,027 $ 4,369 Operating income (loss) 123 52 27 (d) (23 ) (e) 179 Earnings (loss) before income taxes and equity loss 113 41 17 (67 ) (f) 104 Earnings (loss) from continuing operations 83 31 15 (44 ) 85 (Loss) earnings from discontinued operations, net of taxes (3 ) (13 ) 5 10 (1 ) Net earnings (loss) 80 18 20 (34 ) 84 Basic net earnings (loss) per common share Earnings (loss) from continuing operations 1.32 0.50 0.25 (0.76 ) 1.39 (Loss) earnings from discontinued operations (0.05 ) (0.21 ) 0.08 0.17 (0.02 ) Basic net earnings (loss) per common share 1.27 0.29 0.33 (0.59 ) 1.37 Diluted net earnings (loss) per common share Earnings (loss) from continuing operations 1.32 0.49 0.24 (0.76 ) 1.39 (Loss) earnings from discontinued operations (0.05 ) (0.21 ) 0.08 0.17 (0.02 ) Diluted net earnings (loss) per common share 1.27 0.28 0.32 (0.59 ) 1.37 (a) The operating loss for the second Quarter of 2020 included closure and restructuring costs of $1 million. (b) The operating loss for the third Quarter of 2020 included closure and restructuring costs of $68 million and impairment of long-lived assets of $111 million. (c) The operating loss for the fourth Quarter of 2020 included closure and restructuring costs of $30 million and impairment of long-lived assets of $25 million. (d) The operating income for the third Quarter of 2019 included closure and restructuring costs of $5 million and impairment of long-lived assets of $32 million. (e) The operating loss for the fourth Quarter of 2019 included closure and restructuring costs of $17 million. (f) The loss before income taxes and equity loss for the fourth Quarter of 2019 included a pension settlement loss of $30 million. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | FINANCIAL STATEMENT SCHEDULE (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED) SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the three years ended: Balance at Charged to Deductions from Balance at end beginning of year income reserve of year $ $ $ $ Allowances deducted from related asset accounts: Doubtful accounts - Accounts receivable 2020 4 4 (2 ) 6 2019 3 1 — 4 2018 4 2 (3 ) 3 Balance at Charged to Deductions from Balance at end beginning of year income reserve of year $ $ $ $ Valuation Allowance on Deferred Tax Assets 2020 17 47 — 64 2019 12 5 — 17 2018 12 — — 12 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Basis of Presentation | BASIS OF PRESENTATION The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the year, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. On an ongoing basis, management reviews the estimates and assumptions, including but not limited to those related to environmental matters and asset retirement obligations, impairment and useful lives of long-lived assets, closure and restructuring costs, pension and other post-retirement benefit plans, income taxes, business combinations and contingencies, based on currently available information. Actual results could differ from those estimates. |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Domtar and its controlled subsidiaries. Intercompany transactions have been eliminated on consolidation. The equity method of accounting is used for investments in affiliates over which the Company has significant influence but does not have effective control. |
Discontinued Operations | DISCONTINUED OPERATIONS The results of operations for the Personal Care business unit (disposal group) have been classified as discontinued operations for all periods presented in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) as the disposal group met the criteria to be classified as held for sale in the fourth quarter and the disposal of the business unit represents a strategic shift that will have a major effect on the Company's operations and financial results. The after-tax results of operations of the discontinued operations (including the loss recognized on classification as held for sale are reported as a separate component in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for current and all prior periods presented. In addition, the related assets and liabilities of the disposal group have been classified as held for sale in the Consolidated Balance Sheets at December 31, 2020 and 2019. |
Translation of Foreign Currencies | TRANSLATION OF FOREIGN CURRENCIES The Company determines its international subsidiaries’ functional currency by reviewing the currencies in which their respective operating activities occur. The Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using the rate in effect at the balance sheet date and revenues and expenses are translated at the average exchange rates during the year. Foreign currency translation gains and losses are included in Shareholders’ equity as a component of Accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. Monetary assets and liabilities denominated in a currency that is different from a reporting entity’s functional currency must first be remeasured from the applicable currency to the legal entity’s functional currency. The effect of this remeasurement process is recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and is partially offset by the Company’s hedging program (refer to Note 23 “Derivatives and hedging activities and fair value measurement”). |
Revenue Recognition | REVENUE RECOGNITION The Company’s revenue is generated from the sale of finished goods to customers. Revenue is recognized at a single point in time when the performance obligation is satisfied which occurs when the control over the goods is transferred to customers. For shipping and handling activities performed after customers obtain control of the goods, the Company elected to account for these activities as fulfillment activities rather than assessing such activities as separate performance obligations. Accordingly, the sale of goods to customers represents a single performance obligation to which the entire transaction price is allocated. The point in time when the control of goods is transferred to customers is largely dependent on delivery terms. Revenue is recorded at the time of shipment for delivery terms designated free on board (“f.o.b.”) shipping point. For sales transactions designated f.o.b. destination, revenue is recorded when the product is delivered to the customer’s delivery site. Revenue is measured as the amount of consideration the Company expects to receive in exchange for goods transferred to customers. Revenue is recognized net of variable consideration in the form of rebates, discounts and other commercial incentives extended to customers. Variable consideration is recognized using the most likely amounts which are based on an analysis of historical experience and current period expectations. The Company includes estimated amounts of variable consideration in revenue to the extent that it is probable that there will not be a significant reversal of recognized revenue when the uncertainty related to that variable consideration is resolved. For all the Company’s contracts, customer payments are due in less than one year. Accordingly, the Company does not adjust the amount of revenue recognized for the effects of a significant financing component. Sales taxes, and other similar taxes, collected from customers are excluded from revenue. |
Shipping and Handling Costs | SHIPPING AND HANDLING COSTS The Company classifies shipping and handling costs as a component of Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Closure and Restructuring Costs | CLOSURE AND RESTRUCTURING COSTS Closure and restructuring costs are recognized as liabilities in the period when they are incurred and are measured at their fair value. For such recognition to occur, management, with the appropriate level of authority, must have approved and committed to a firm plan and appropriate communication to those affected must have occurred. These provisions may require an estimation of costs such as severance and termination benefits, pension and related curtailments, environmental remediation and may also include expenses related to demolition and outplacement. Actions taken may also require an evaluation of any remaining assets to determine required impairments, if any, and a review of estimated remaining useful lives which may lead to accelerated depreciation expense. Estimates of cash flows and fair value relating to closures and restructurings require judgment. Closure and restructuring liabilities are based on management’s best estimates of future events. Although the Company does not anticipate significant changes, the actual costs may differ from these estimates due to subsequent developments such as the results of environmental studies, the ability to find a buyer for assets set to be dismantled and demolished and other business developments. As such, additional costs and further working capital adjustments may be required in future periods. |
Income Taxes | INCOME TAXES Domtar uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined according to differences between the carrying amounts and tax bases of the assets and liabilities. The Company records its worldwide tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. The change in the net deferred tax asset or liability is included in Income tax expense (benefit) or in Other comprehensive income (loss) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax expense (benefit) in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). If and when incurred, the Company accounts for any taxes associated with Global Intangible Low-Taxed Income (“GILTI”) as a period cost. INCOME TAXES In December 2019, the FASB issued ASU 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash and short-term investments with original maturities of less than three months and are presented at cost which approximates fair value. |
Receivables and Allowances for Credit Losses | RECEIVABLES AND ALLOWANCES FOR CREDIT LOSSES We establish allowances for credit losses on receivables. The adequacy of these allowances is assessed quarterly through consideration of factors including, but not limited to, customer credit ratings, bankruptcy filings, published or estimated credit default rates, age of the receivable, expected loss rates and collateral exposures. We assign internal credit ratings for all customers and determine the creditworthiness of each customer based upon publicly available information and information obtained directly from our customers. Our rating categories are comparable to those used by major credit rating agencies. The securitization of receivables is accounted for as secured borrowings. Accordingly, financing expenses related to the securitization of receivables are recognized in earnings as a component of Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Inventories | INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. The last-in, first-out (“LIFO”) method is used to account for certain domestic raw materials, in process and finished goods inventories. LIFO inventories were $220 million and $242 million at December 31, 2020 and 2019, respectively. The balance of domestic raw material inventories, all materials and supplies inventories and all foreign inventories are recorded at either the first-in, first-out (“FIFO”) or average cost methods. Had the inventories for which the LIFO method is used been valued under the FIFO method, the amounts at which product inventories are stated would have been $52 million and $69 million greater at December 31, 2020 and 2019, respectively. |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation including asset impairments. Costs for repair and maintenance activities are expensed as incurred under the direct expense method of accounting. Interest costs are capitalized for significant capital projects. For timberlands, the amortization is calculated using the unit of production method. For all other assets, depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Buildings and improvements are depreciated over periods of 10 to 40 years 3 to 20 years |
Impairment of Property, Plant and Equipment | IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the assets may not be recoverable, by comparing the net book value of the asset group to their estimated undiscounted future cash flows expected from their use and eventual disposition. Impaired assets are recorded at estimated fair value, determined principally by using the present value of estimated future cash flows expected from their use and eventual disposition. |
Leases | LEASES At inception of an arrangement, the Company determines whether the arrangement contains a lease. A lease conveys the right to control the use of identified property, plant, or equipment (asset) for a period of time in exchange for consideration. Control over the use of the identified asset means that the Company has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. For each lease arrangement that has an original lease term of more than 12 months, a right-of-use asset and a lease liability are recorded in the Consolidated Balance Sheets. The right-of-use asset represents the Company’s right to use an underlying asset for the lease term while the lease liability represents the obligation to make lease payments arising from the lease. The right-of-use asset and the lease liability are initially recorded at the same amount at the lease commencement date based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. The operating lease right-of-use asset also include previously recognized impairments and purchase price adjustments relating to favorable and unfavorable terms of leases acquired as part of business combinations. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Any potential impairment for right-of-use assets will be calculated in the same manner as disclosed under impairment of long-lived assets. The terms of a lease arrangement determine how a lease is classified (operating or finance), the resulting recognition pattern in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and the classification in the Consolidated Balance Sheets. Finance lease expense is represented by the interest on the lease liability determined using the effective interest method and the amortization of the finance lease right-of-use asset calculated using the straight-line method over the estimated useful life of the identified asset. Finance lease related balances are included in the Consolidated Balance Sheets in Property, plant and equipment, net, Long-term debt due within one year and Long-term debt. Operating lease expense is recorded on a straight-line basis over the lease term by adding interest expense determined using the effective interest method to the amortization of the right-of-use asset. Operating lease related balances are included in the Consolidated Balance Sheets in Operating lease right-of-use assets, Operating lease liabilities due within one year and Operating lease liabilities. The Company elected to initially apply the new leases standard as of January 1, 2019 with certain available practical expedients. No cumulative-effect adjustments on retained earnings were necessary as of January 1, 2019. The most significant impact of adopting the new standard was the recognition of right-of-use assets and lease liabilities for operating leases. The accounting for finance leases remains substantially unchanged. |
Intangible Assets | INTANGIBLE ASSETS Indefinite-lived intangible assets are not amortized and are evaluated for impairment individually at the beginning of the fourth quarter of every year, or more frequently whenever indicators of potential impairment exist. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of indefinite-lived intangible assets is less than their carrying amounts. To carry out the qualitative assessment, the Company considers elements such as the results of recent fair value assessments, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting the Company and the business. The identification and impact assessment of events and circumstances on the fair value involves significant judgment and assumptions. If a qualitative assessment is performed and after assessing the qualitative factors, the Company determines that it is more likely than not that the fair value of the indefinite-lived intangible assets is less than their carrying amounts, then a quantitative impairment test is required. The Company can also elect to proceed directly to the quantitative test. The quantitative impairment test consists of comparing the fair value of the indefinite-lived intangible assets determined using a variety of methodologies to their carrying amount. If the carrying amounts of the indefinite-lived intangible assets exceed their fair value, an impairment loss is recognized in an amount equal to that excess. Indefinite-lived intangible assets include license rights and water rights. The Company reviews its indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support indefinite useful lives. Definite-lived intangible assets are stated at cost less amortization and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Definite-lived intangible assets include water rights, customer relationships, technology as well as non-compete agreements, which are being amortized using the straight-line method over their respective estimated useful lives. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of long-lived assets. Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 20 to 30 years Technology 7 to 20 years Non-Compete agreements 9 years |
Debt Issuance Costs | DEBT ISSUANCE COSTS Debt issuance costs are presented in the Consolidated Balance Sheets as a deduction from the carrying value of long-term debt. Debt issuance costs associated with revolving credit arrangements are presented in Other assets in the Consolidated Balance Sheets. Debt issuance costs are amortized using the effective rate method over the term of the related debt and included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). |
Environmental Costs and Asset Retirement Obligations | ENVIRONMENTAL COSTS AND ASSET RETIREMENT OBLIGATIONS Environmental expenditures for effluent treatment, air emission, silvicultural activities and site remediation (together referred to as environmental matters) are expensed or capitalized depending on their future economic benefit. In the normal course of business, Domtar incurs certain operating costs for environmental matters that are expensed as incurred. Expenditures for property, plant and equipment that prevent future environmental impacts are capitalized and amortized on a straight-line basis over 10 to 40 years. Provisions for environmental matters are recorded when remediation efforts are probable and can be reasonably estimated. Provisions for environmental matters are generally not discounted, due to uncertainty with respect to timing of expenditures. Asset retirement obligations are mainly associated with landfill operation and closure, dredging of settling ponds and bark pile management and are recognized, at fair value, in the period in which Domtar incurs a legal obligation associated with the retirement of an asset. Conditional asset retirement obligations are recognized, at fair value, when the fair value of the liability can be reasonably estimated on a probability-weighted discounted cash flow estimate. The associated costs are capitalized as part of the carrying value of the related asset and depreciated over its remaining useful life. The liability is accreted using the credit adjusted risk-free interest rate used to discount the cash flow. |
Stock-Based Compensation and Other Stock-Based Payments | STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS Domtar recognizes the cost (net of estimated forfeitures) of employee services received in exchange for awards of equity instruments over the requisite service period, based on their grant date fair value for awards accounted for as equity and based on the quoted market value at the end of each reporting period for awards accounted for as liability. The Company awards are accounted for as compensation expense in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) and presented in Additional paid-in capital on the Consolidated Balance Sheets for equity type awards and presented in Other liabilities and deferred credits on the Consolidated Balance Sheets for liability type awards. The Company’s awards may be subject to market, performance and/or service conditions. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to Additional paid-in capital in the Consolidated Balance Sheets. The par value included in the Additional paid-in capital component of stock-based compensation is transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vest pro rata on the first three anniversaries of the grant and have a seven-year Under the amended and restated Domtar Corporation 2007 Omnibus Incentive Plan (“Omnibus Plan”), a maximum of 872,136 shares are reserved for issuance in connection with awards to be granted. |
Derivative Instruments | DERIVATIVE INSTRUMENTS Derivative instruments may be utilized by Domtar as part of the overall strategy to manage exposure to fluctuations in foreign currency, interest rate and commodity price on certain purchases. As a matter of policy, derivatives are not used for trading or speculative purposes. All derivatives are recorded at fair value either as assets or liabilities. When derivative instruments have been designated within a hedge relationship and are highly effective in offsetting the identified risk characteristics of specific financial assets and liabilities or group of financial assets and liabilities, hedge accounting is applied. In a fair value hedge, changes in fair value of derivatives are recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). The change in fair value of the hedged item attributable to the hedged risk is also recorded in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) by way of a corresponding adjustment of the carrying amount of the hedged item recognized in the Consolidated Balance Sheets. In a cash flow hedge, changes in fair value of derivative instruments are recorded in Other comprehensive income (loss). These amounts are reclassified in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) in the periods in which results are affected by the cash flows of the hedged item within the same line item. |
Pension Plans | PENSION PLANS Domtar’s plans include funded and unfunded defined benefit and defined contribution pension plans. Domtar recognizes the overfunded or underfunded status of defined benefit and underfunded defined contribution pension plans as an asset or liability in the Consolidated Balance Sheets. The net periodic benefit cost includes the following: - The cost of pension benefits provided in exchange for employees’ services rendered during the period, - The interest cost of pension obligations, - The expected long-term return on pension fund assets based on a market value of pension fund assets, - Gains or losses on settlements and curtailments, - The straight-line amortization of past service costs and plan amendments over the average remaining service period of approximately ten years of the active employee group covered by the plans, and - The amortization of cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately ten years of the active employee group covered by the plans. The defined benefit plan obligations are determined in accordance with the projected unit credit actuarial cost method. |
Other Post-Retirement Benefit Plans | OTHER POST-RETIREMENT BENEFIT PLANS The Company recognizes the unfunded status of other post-retirement benefit plans (other than multiemployer plans) as a liability in the Consolidated Balance Sheets. These benefits, which are funded by Domtar as they become due, include life insurance programs, medical and dental benefits and short-term and long-term disability programs. The Company amortizes the cumulative net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market value of assets over the average remaining service period of approximately 12 years of the active employee group covered by the plans. |
Guarantees | GUARANTEES A guarantee is a contract or an indemnification agreement that contingently requires Domtar to make payments to the other party of the contract or agreement, based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party or on a third party’s failure to perform under an obligating agreement. It could also be an indirect guarantee of the indebtedness of another party, even though the payment to the other party may not be based on changes in an underlying item that is related to an asset, a liability or an equity security of the other party. Guarantees, when applicable, are accounted for at fair value. |
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. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Amortization Period of Finite Lived Assets | Amortization is based on the following useful lives: Useful life Water rights 40 years Customer relationships 20 to 30 years Technology 7 to 20 years Non-Compete agreements 9 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Major components of earnings (loss) from discontinued operations: Year ended December 31, Year ended December 31, Year ended December 31, 2020 2019 2018 $ $ $ Sales 995 920 959 Operating expenses Cost of sales, excluding depreciation and amortization 721 684 734 Depreciation and amortization 60 62 67 Selling, general and administrative 141 143 151 Impairment of long-lived assets 1 26 7 Closure and restructuring costs — 20 8 Other operating loss, net 2 1 1 925 936 968 Operating income (loss) 70 (16 ) (9 ) Loss on classification as held for sale 45 — — Earnings (loss) from discontinued operations before income taxes 25 (16 ) (9 ) Income tax expense (benefit) 7 (15 ) (11 ) Net earnings (loss) from discontinued operations 18 (1 ) 2 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At December 31, December 31, 2020 2019 $ $ Assets Receivables 110 94 Inventories 138 123 Prepaid expenses 3 4 Income and other taxes receivable 3 6 Property, plant and equipment, net 351 344 Operating lease right-of-use assets 15 22 Intangible assets, net (2) ( 3 ) 554 543 Other assets 2 2 Total assets 1,176 1,138 Loss on classification as held for sale (43 ) — Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 1,133 1,138 Liabilities Trade and other payables 128 125 Income and other taxes payable 12 7 Operating lease liabilities due within one year 8 10 Long-term debt 1 1 Operating lease liabilities 8 29 Deferred income taxes and other 130 119 Other liabilities and deferred credits 8 7 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 295 298 (1) (2) – (3) Indefinite-lived intangible assets of the disposal group held for sale Company’s operating plans and are prepared for each indefinite-lived intangible asset assessment. The discount rate assumptions used are based on the weighted-average cost of capital adjusted for business-specific and other relevant risks. The quantitative assessment performed in the fourth quarter of 2020 indicated that the indefinite-lived intangible assets had fair values that exceeded their carrying amounts. Variations in management’s assumptions and estimates, particularly in the expected growth rates and royalty rates embedded in the cash flow projections, and the discount rate could have a significant impact on fair value. The Company’s former Personal Care business was classified as a disposal group held for sale in the fourth quarter of 2020 and the Company performed an updated impairment assessment of the indefinite-lived intangible assets included in the disposal group held for sale. The updated impairment assessment did not result in an impairment loss. Cash Flows from Discontinued Operations: Year ended December 31, Year ended December 31, Year ended December 31, 2020 2019 2018 $ $ $ Cash flows from operating activities 111 90 58 Cash flows used for investing activities (34 ) (40 ) (29 ) |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 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 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Monte Carlo Simulation [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the units granted: 2020 2019 2018 Dividend yield 5.338 % 3.323 % 3.800 % Expected volatility 1 year 32 % 31 % 22 % Expected volatility 3 years 29 % 28 % 26 % Risk-free interest rate December 31, 2018 — — 2.23 % Risk-free interest rate December 31, 2019 — 2.85 % 2.46 % Risk-free interest rate December 31, 2020 1.42 % 2.65 % 2.61 % Risk-free interest rate December 31, 2021 1.26 % 2.56 % — Risk-free interest rate December 31, 2022 1.21 % — — |
Black-Scholes Based Option Pricing Model [Member] | |
Assumptions Used in Calculating Fair Value of Options Granted | The following assumptions were used in calculating the fair value of the options granted: 2018 Dividend yield 3.27 % Expected volatility 29 % Risk-free interest rate 2.62 % Expected life 4.5 years Strike price $ 43.66 |
Performance Share Units [Member] | |
Summary of Outstanding Awards | These awards will cliff vest at various dates up to February 18, 2023. Weighted average grant PSUs Number of units date fair value $ Vested and non-vested at December 31, 2017 622,468 37.78 Granted 238,537 41.39 Forfeited (36,932 ) 38.09 Issued 52,563 41.05 Vested and settled (154,178 ) 44.22 Vested and non-vested at December 31, 2018 722,458 37.82 Granted 192,261 61.46 Forfeited (24,980 ) 45.54 Cancelled (41,399 ) 57.09 Vested and settled (222,019 ) 32.39 Vested and non-vested at December 31, 2019 626,321 45.42 Granted 304,604 36.70 Forfeited (27,778 ) 45.25 Cancelled (150,542 ) 45.41 Vested and settled (216,701 ) 39.04 Vested and non-vested at December 31, 2020 535,904 43.06 |
Restricted Stock Units [Member] | |
Summary of Outstanding Awards | The grant date fair value of RSUs is equal to the market value of the Company’s stock on the date the awards are granted. Weighted average grant RSUs Number of units date fair value $ Non-vested at December 31, 2017 460,663 38.56 Granted/issued 157,502 44.04 Forfeited (27,251 ) 39.91 Vested and settled (135,323 ) 42.54 Non-vested at December 31, 2018 455,591 39.16 Granted/issued 156,417 51.07 Forfeited (21,203 ) 42.86 Vested and settled (174,353 ) 34.96 Non-vested at December 31, 2019 416,452 45.20 Granted/issued 231,012 33.26 Forfeited (19,521 ) 41.05 Vested and settled (147,753 ) 40.21 Non-vested at December 31, 2020 480,190 41.16 |
Deferred Share Units [Member] | |
Summary of Outstanding Awards | In 2020, no vested awards were deferred to DSUs (2019 – nil; 2018 – nil). Weighted average grant DSUs Number of units date fair value $ Vested at December 31, 2017 272,234 29.55 Granted/issued 31,691 44.64 Settled (9,752 ) 40.95 Vested at December 31, 2018 294,173 30.79 Granted/issued 35,596 41.32 Settled (12,606 ) 43.90 Vested at December 31, 2019 317,163 31.45 Granted/issued 48,943 25.11 Settled (10,873 ) 40.96 Vested at December 31, 2020 355,233 30.29 |
Stock Options [Member] | |
Summary of Outstanding Awards | Weighted average Weighted average Aggregate intrinsic Number exercise remaining life value OPTIONS of options price (in years) (in millions) $ $ Outstanding at December 31, 2017 563,065 44.46 4.1 3.6 Granted 104,086 43.66 6.2 — Exercised (147,397 ) 39.42 — — Forfeited/expired (6,102 ) 50.05 — — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Exercisable at December 31, 2018 303,055 49.15 2.3 — Outstanding at December 31, 2018 513,652 45.68 3.6 0.1 Exercised (88,682 ) 39.46 — — Forfeited/expired (3,616 ) 53.13 — — Outstanding at December 31, 2019 421,354 46.92 2.5 0.1 Exercisable at December 31, 2019 316,530 48.44 1.8 0.1 Outstanding at December 31, 2019 421,354 46.92 2.5 0.1 Forfeited/expired (15,030 ) 43.09 — — Outstanding at December 31, 2020 406,324 47.07 1.6 — Exercisable at December 31, 2020 371,622 47.38 1.4 — |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings (Loss) Per Common Share | The following table provides the reconciliation between basic and diluted (loss) earnings per common share: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 (Loss) earnings from continuing operations $ (145 ) $ 85 $ 281 Earnings (loss) from discontinued operations, net of taxes $ 18 $ (1 ) $ 2 Net (loss) earnings $ (127 ) $ 84 $ 283 Weighted average number of common shares outstanding (millions) 55.4 61.2 62.9 Effect of dilutive securities (millions) — 0.2 0.2 Weighted average number of diluted common shares outstanding (millions) 55.4 61.4 63.1 Basic net (loss) earnings per common share (in dollars) (Loss) earnings from continuing operations $ (2.62 ) $ 1.39 $ 4.47 Earnings (loss) from discontinued operations $ 0.33 $ (0.02 ) $ 0.03 Basic net (loss) earnings per common share $ (2.29 ) $ 1.37 $ 4.50 Diluted net (loss) earnings per common share (in dollars) (Loss) earnings from continuing operations $ (2.62 ) $ 1.39 $ 4.45 Earnings (loss) from discontinued operations $ 0.33 $ (0.02 ) $ 0.03 Diluted net (loss) earnings per common share $ (2.29 ) $ 1.37 $ 4.48 |
Securities that Could Potentially Dilute Basic Earnings (Loss) 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: December 31, December 31, December 31, 2020 2019 2018 Options to purchase common shares 406,324 324,413 227,221 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Change in Projected Benefit Obligation | The following table represents the change in the projected benefit obligation as of December 31, 2020 and December 31, 2019, the measurement date for each year: December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,425 63 1,557 62 Service cost for the year 29 1 29 1 Interest expense 39 2 57 2 Plan participants' contributions 6 — 6 — Actuarial loss (gain) 127 2 170 (1 ) Plan amendments 2 — — — Benefits paid (67 ) — (96 ) — Direct benefit payments (3 ) (4 ) (4 ) (4 ) Acquisition of business — 1 — — Curtailment (1) (1 ) — — — Settlement (2) (15 ) — (348 ) — Effect of foreign currency exchange rate change 24 2 54 3 Projected benefit obligation at end of year 1,566 67 1,425 63 |
Change in Fair Value of Assets | The following table represents the change in the fair value of assets, as of December 31, 2020 and December 31, 2019, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: December 31, 2020 December 31, 2019 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,465 1,579 Actual return on plan assets 166 253 Employer contributions 15 17 Plan participants' contributions 6 6 Benefits paid (70 ) (100 ) Settlement (2) (15 ) (348 ) Effect of foreign currency exchange rate change 27 58 Fair value of assets at end of year 1,594 1,465 (1) (2) (2) On November 26, 2019, the Company entered into agreements with Sun Life Assurance Company of Canada to purchase group annuity buy-out contracts and transfer approximately $ 272 million (CDN $ 360 million) of its Ontario, Canada defined benefit plans’ projected benefit obligations. The transactions closed on December 5, 2019 and were funded with pension plan assets. Additionally, the Company entered into agreements with existing insurers to convert $ 76 million (CDN $ 101 million) of existing buy-in annuity contracts to buy-out annuity contracts to complete the full transfer of these obligations. These annuity buy-out transactions transferred responsibility for pension benefits for approximately 1,265 retirees and their beneficiaries. Settlement accounting rules required a remeasurement of the plans as of November 26, 2019 and the Company recognized a non-cash pension settlement charge of $ 30 million before tax in the fourth quarter of 2019. |
Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation | The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2020: Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2020 2019 Fixed income Cash and cash equivalents 0% – 10% 2 % 2 % Bonds 40% – 50% 42 % 53 % Insurance contracts 11% 11 % — Equity Canadian Equity 3% – 10% 6 % 6 % U.S. Equity 9% – 19% 15 % 15 % International Equity 18% – 28% 24 % 24 % Total (1) 100 % 100 % ( 1 ) Approximately 72% of the pension plans' assets relate to Canadian plans, 28% relate to U.S. plans. |
Funded Status of Plans | The following table presents the difference between the fair value of assets and the actuarially determined projected benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets. December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,566 ) (67 ) (1,425 ) (63 ) Fair value of assets at end of year 1,594 — 1,465 — Funded status 28 (67 ) 40 (63 ) |
Amount Recognized in Consolidated Balance Sheets | The funded status includes $61 million of projected benefit obligation ($55 million at December 31, 2019) related to supplemental unfunded defined benefit and defined contribution plans. December 31, 2020 December 31, 2019 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables (Note 17) — (5 ) — (5 ) Other liabilities and deferred credits (Note 20) (124 ) (62 ) (101 ) (58 ) Other assets (Note 15) 152 — 141 — Net amount recognized in the Consolidated Balance Sheets 28 (67 ) 40 (63 ) |
Pre-Tax Amounts Included in Other Comprehensive Income (Loss) | The following table presents the pre-tax amounts included in Other comprehensive income (loss): Year ended Year ended Year ended December 31, 2020 December 31, 2019 December 31, 2018 Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ Prior service cost (2 ) — — — — — Amortization of prior year service cost (credit) 2 (1 ) 5 (1 ) 5 — Net (loss) gain (26 ) (1 ) 3 1 (31 ) 8 Amortization of net actuarial loss (gain) (1) 12 (1 ) 40 (1 ) 8 (1 ) Net amount recognized in other comprehensive income (loss) (pre-tax) (14 ) (3 ) 48 (1 ) (18 ) 7 (1) |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | At December 31, 2020, the projected benefit obligation and the fair value of plan assets with a projected benefit obligation in excess of fair value of plan assets were $917 million and $793 million, respectively (2019 – $833 million and $732 million, respectively). Year ended Year ended Year ended December 31, December 31, December 31, Components of net periodic benefit cost for pension plans 2020 2019 2018 $ $ $ Service cost for the year 29 29 34 Interest expense 39 57 53 Expected return on plan assets (68 ) (79 ) (85 ) Amortization of net actuarial loss 10 10 8 Curtailment loss 2 — — Settlement loss 2 30 — Amortization of prior year service cost 2 5 5 Net periodic benefit cost 16 52 15 Components of net periodic benefit cost for other post-retirement Year ended December 31, Year ended December 31, Year ended December 31, benefit plans 2020 2019 2018 $ $ $ Service cost for the year 1 1 1 Interest expense 2 2 2 Amortization of net actuarial gain (1 ) (1 ) (1 ) Amortization of prior year service credit (1 ) (1 ) — Net periodic benefit cost 1 1 2 |
Key Assumptions to Measure Accrued Benefit Obligation and Net Periodic Benefit Cost | The Company used the following key assumptions to measure the projected benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits. December 31, December 31, December 31, Pension plans 2020 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % 3.8 % Rate of compensation increase 2.7 % 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.0 % 3.8 % 3.5 % Rate of compensation increase 2.8 % 2.6 % 2.8 % Expected long-term rate of return on plan assets 4.6 % 5.2 % 5.0 % December 31, December 31, December 31, Other post-retirement benefit plans 2020 2019 2018 Projected benefit obligation Discount rate 2.5 % 3.1 % 3.8 % Rate of compensation increase 2.8 % 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.0 % 3.7 % 3.5 % Rate of compensation increase 2.7 % 2.7 % 2.7 % |
Effect of One Percent Change in Assumed Health Care Cost | For measurement purposes, a 3.9% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2020. |
Schedule Of Fair Value Of Plan Asset By Asset Category | The following table presents the fair value of the plan assets at December 31, 2020, by asset category: Fair Value Measurements at December 31, 2020 Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 60 16 44 — Canadian provincial government bonds 391 388 3 — Canadian corporate debt securities 63 46 17 — U.S. corporate debt securities 23 22 1 — International corporate debt securities 10 10 — — Bond fund (1 & 2) 173 — 173 — Canadian equities (3) 97 97 — — U.S. equities (4) 99 99 — — International equities (5) 268 268 — — U.S. stock index funds (2 & 6) 233 — 233 — Insurance contracts (7) 176 — — 176 Derivative contracts (8) 1 — 1 — Total 1,594 946 472 176 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. (7) This category represents a group annuity contract purchased through an insurance company that is held in the pension plan’s name as an asset within the pension plan. The insurance contract covers pension entitlements associated with specific groups of retired members of the pension plan. (8) The fair value of the derivative contracts is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. The following table presents the fair value of the plan assets at December 31, 2019, by asset category: Fair Value Measurements at December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset Category Total (Level 1) (Level 2) (Level 3) $ $ $ $ Cash and short-term investments 66 24 42 — Canadian provincial government bonds 454 453 1 — Canadian corporate debt securities 119 91 28 — U.S. corporate debt securities 21 21 — — International corporate debt securities 13 13 — — Bond fund (1 & 2) 166 — 166 — Canadian equities (3) 93 93 — — U.S. equities (4) 86 86 — — International equities (5) 231 231 — — U.S. stock index funds (2 & 6) 215 — 215 — Insurance contracts 1 — — 1 Total 1,465 1,012 452 1 (1) This category represents a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. (2) The fair value of these plan assets is classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. (3) This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies and the Canadian equity portion of an active segregated global equity portfolio. (4) This category represents U.S. equities held within an active segregated global equity portfolio and an active international equity portfolio. (5) This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. (6) This category represents two equity index funds, not actively managed, that track the Russell 3000 index. |
Changes in Level 3 Fair Value Measurements of Plan Assets | The following table presents changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Insurance contracts $ Balance at December 31, 2018 76 Settlements (84 ) Return on plan assets 7 Effect of foreign currency exchange rate change 2 Balance at December 31, 2019 1 Purchases 163 Return on plan assets 3 Effect of foreign currency exchange rate change 9 Balance at December 31, 2020 176 |
Estimated Future Benefit Payments from Plans | Estimated future benefit payments from the plans for the next 10 years at December 31, 2020 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2021 89 4 2022 88 4 2023 88 4 2024 90 4 2025 89 4 2026 – 2030 434 20 |
Other Operating Loss (Income)_2
Other Operating Loss (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating Loss (Income), Net | The Company’s other operating (income) loss, net includes the following: Year ended December 31, 2020 Year ended December 31, 2019 Year ended December 31, 2018 $ $ $ Environmental provision 2 4 5 Foreign exchange loss (gain) — 3 (3 ) Bad debt expense 4 1 2 Net gain on sale of property, plant and equipment (1 ) — (4 ) Income for waiving a non-compete clause (7 ) — — Other (5 ) (4 ) (1 ) Other operating (income) loss, net (7 ) 4 (1 ) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrift Interest [Abstract] | |
Components of Interest Expense, Net | The following table presents the components of interest expense, net: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Interest on long-term debt (1) 52 45 56 Interest on receivables securitization 1 2 1 Interest on withdrawal liabilities for multiemployer plans 3 3 2 Amortization of debt issuance costs and other 2 2 3 58 52 62 (1) The Company capitalized $3 million of interest expense in 2020 (2019 – $3 million; 2018 – $1 million). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Earnings Before Income Taxes | The Company’s (loss) earnings before income taxes by taxing jurisdiction were: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. (loss) earnings (199 ) 80 241 Foreign (loss) earnings (19 ) 24 110 (Loss) earnings before income taxes (218 ) 104 351 |
Provisions for Income Taxes | Provisions for income taxes include the following: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. Federal and State: Current (21 ) 19 38 Deferred (45 ) (6 ) (1 ) Foreign: Current (7 ) 4 5 Deferred (3 ) — 26 Income tax (benefit) expense (76 ) 17 68 |
Reconciliation of Income Tax (Benefit) Expense to U.S. Federal Statutory Income Tax | The Company’s provision for income taxes differs from the amounts computed by applying the statutory income tax rate of 21% to (loss) earnings before income taxes due to the following: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ U.S. federal statutory income tax (46 ) 22 74 Reconciling Items: State and local income taxes, net of federal income tax benefit (6 ) 4 9 Foreign income tax rate differential (1 ) 2 6 Tax credits and special deductions (17 ) (18 ) (18 ) U.S. tax rate benefit from loss carryback (5 ) — — Tax rate changes — (4 ) (9 ) Deemed mandatory repatriation tax — — (7 ) Uncertain tax positions (4 ) (3 ) (5 ) Deferred taxes on Personal Care Group Investment (51 ) — — Deferred taxes on foreign earnings (1 ) 2 10 Intercompany income with assets held for sale 3 3 4 Net book value adjustment of assets held for sale 5 — — Valuation allowance on deferred tax assets 47 5 — Nondeductible expenses 1 3 — Other (1 ) 1 4 Income tax (benefit) expense (76 ) 17 68 |
Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2020 and December 31, 2019 are comprised of the following: December 31, December 31, 2020 2019 $ $ Accounting provisions 31 27 Net operating loss carryforwards and other deductions 56 9 Pension and other employee future benefit plans 19 16 Inventory 11 12 Tax credits 41 23 Other 12 7 Gross deferred tax assets 170 94 Valuation allowance (64 ) (17 ) Net deferred tax assets 106 77 Property, plant and equipment (367 ) (386 ) Intangible assets (6 ) (6 ) Other (31 ) (17 ) Total deferred tax liabilities (404 ) (409 ) Net deferred tax liabilities (298 ) (332 ) Included in: Deferred income taxes and other (298 ) (332 ) Total (298 ) (332 ) |
Gross Unrecognized Tax Benefits | At December 31, 2020, the Company had gross unrecognized tax benefits of approximately $23 million ($28 million and $28 million for 2019 and 2018, respectively). If recognized in 2020, these tax benefits would impact the effective tax rate. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were sustained, such as federal deduction that could be realized if an unrecognized state deduction was not sustained. These amounts are included in Deferred income taxes and other on the Consolidated Balance Sheets. December 31, December 31, December 31, 2020 2019 2018 $ $ $ Balance at beginning of year 28 28 27 Additions based on tax positions related to current year 1 3 3 Additions for tax positions of prior years 1 2 3 Expirations of statutes of limitations (7 ) (6 ) (6 ) Interest — 1 1 Balance at end of year 23 28 28 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: December 31, December 31, 2020 2019 $ $ Work in process and finished goods 321 325 Raw materials 107 119 Operating and maintenance supplies 202 219 630 663 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table presents the components of property, plant and equipment: Range of useful lives December 31, December 31, (in years) 2020 2019 $ $ Machinery and equipment 3 – 20 7,617 7,436 Buildings and improvements 10 – 40 962 944 Timberlands (1) 195 191 Assets under construction — 87 135 8,861 8,706 Less: Accumulated depreciation (6,838 ) (6,483 ) 2,023 2,223 (1) Amortization is calculated using the unit of production method. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: Year ended Year ended December 31, December 31, 2020 2019 $ $ Operating lease expense 22 21 Finance lease expense: Amortization of right-of-use assets 1 — Interest on lease liabilities — — Total finance lease expense 1 — |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year ended Year ended December 31, December 31, 2020 2019 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 23 21 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 12 24 Finance leases — — |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, December 31, 2020 2019 $ $ Operating leases Operating leases right-of-use assets 59 58 Lease liabilities due within one year 20 18 Operating lease liabilities 50 40 70 58 Finance leases Property, plant and equipment 11 9 Accumulated depreciation (3 ) (2 ) 8 7 Long-term debt due within one year 1 1 Long-term debt 9 8 10 9 Weighted-average remaining lease term Operating leases 4.7 years 3.8 years Finance leases 8.8 years 10.4 years Weighted-average discount rate Operating leases 4.4 % 4.4 % Finance leases 6.1 % 7.0 % |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities at December 31, 2020 were as follows: Operating leases $ 2021 20 2022 18 2023 15 2024 10 2025 6 Thereafter 9 Total lease payments 78 Less: Imputed interest 8 Total lease liabilities 70 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: Estimated useful lives December 31, December 31, (in years) 2020 2019 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 20 – 30 24 (10 ) 14 24 (9 ) 15 Technology 7 – 20 8 (5 ) 3 8 (5 ) 3 Non-Compete 9 1 (1 ) — 1 (1 ) — 36 (17 ) 19 36 (16 ) 20 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 License rights 6 — 6 6 — 6 Total 46 (17 ) 29 46 (16 ) 30 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2021 2022 2023 2024 2025 $ $ $ $ $ Amortization expense related to intangible assets 1 1 1 1 1 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets: December 31, December 31, 2020 2019 $ $ Pension asset - defined benefit pension plans (Note 7) 152 141 Investment tax credits receivable 4 5 Unamortized debt issuance costs 3 3 Derivative financial instruments (Note 23) 17 4 Equity swap contracts (Note 23) 2 — Investments and advances 6 5 Other 5 5 189 163 |
Closure and Restructuring Cos_2
Closure and Restructuring Costs and Impairment of Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring And Related Activities [Abstract] | |
Components of Closure and Restructuring Costs by Segment | The following tables provide the components of closure and restructuring costs: Year ended December 31, 2020 Pulp and Paper Corporate Total $ $ $ Severance and termination costs 33 1 34 Inventory write-down (storeroom, spare parts and other) 31 — 31 Environmental costs 12 — 12 Pension curtailment and settlement charges 4 — 4 Licenses fees, write-offs and other costs 16 2 18 Closure and restructuring costs 96 3 99 Year ended December 31, 2019 Pulp and Paper Total $ $ Severance and termination costs 16 16 Inventory write-down 4 4 Other costs 2 2 Closure and restructuring costs 22 22 |
Activity in Closure and Restructuring Liability | The following table provides the activity in the closure and restructuring liability: December 31, December 31, 2020 2019 $ $ Balance at beginning of year 12 2 Additions 48 12 Payments (32 ) (1 ) Reversal — (1 ) Balance at end of year (1) 28 12 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Components of Trade and Other Payables | The following table presents the components of trade and other payables: December 31, December 31, 2020 2019 $ $ Trade payables 260 310 Payroll-related accruals 104 99 Accrued interest 16 16 Payables on capital projects 13 27 Rebate accruals 44 58 Liability - pension and other post-retirement benefit plans (Note 7) 5 5 Liability - multiemployer plan withdrawal 2 2 Provision for environment and other asset retirement obligations (Note 22) 10 8 Closure and restructuring costs liability (Note 16) 22 12 Derivative financial instruments (Note 23) 3 11 Dividends payable (Note 21) — 26 Stock-based compensation - liability awards (Note 23) 5 6 484 580 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 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 Post-retirement Foreign currency cash flow hedges Pension items (2) benefit items (2) 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 1 N/A N/A N/A 1 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 23 N/A N/A N/A 23 Net loss N/A (21 ) (1 ) N/A (22 ) Foreign currency items N/A N/A N/A 63 63 Other comprehensive income (loss) before reclassifications 27 (21 ) (1 ) 63 68 Amounts reclassified from Accumulated other comprehensive loss 12 11 (2 ) — 21 Net current period other comprehensive income (loss) 39 (10 ) (3 ) 63 89 Balance at December 31, 2020 34 (207 ) 8 (139 ) (304 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amount reclassified from Accumulated other comprehensive loss Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts (1) (10 ) (4 ) 2 Currency options and forwards (1) (6 ) (7 ) 1 Total before tax (16 ) (11 ) 3 Tax benefit (expense) 4 3 (1 ) Net of tax (12 ) (8 ) 2 Amortization of defined benefit pension items Amortization of net actuarial loss (2)(3) (12 ) (40 ) (8 ) Amortization of prior year service cost (2) (2 ) (5 ) (5 ) Total before tax (14 ) (45 ) (13 ) Tax benefit 3 12 3 Net of tax (11 ) (33 ) (10 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (2) 1 1 1 Amortization of prior year service credit (2) 1 1 — Total before tax 2 2 1 Tax expense — (1 ) — Net of tax 2 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 7 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). (3) Includes a non-cash pension settlement charge of $2 million in 2020 ( 2019 – 2018 – |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Par December 31, December 31, Maturity Amount Currency 2020 2019 $ $ $ Unsecured notes 4.4% Notes 2022 300 US 300 300 6.25% Notes 2042 250 US 249 249 6.75% Notes 2044 250 US 250 250 Term Loan 2025 — US 294 — Revolving Credit Facility 2023 — US — 80 Securitization 2021 — US — 55 Finance lease obligations and other 2021 - 2032 10 9 1,103 943 Less: Unamortized debt issuance costs 6 5 Less: Due within one year 13 1 1,084 937 |
Principal Long-Term Debt Repayments, Including Finance Lease Obligations | Principal long-term debt repayments, including finance lease obligations, in each of the next five years will amount to: Long-term debt Finance leases and other $ $ 2021 12 1 2022 312 2 2023 12 2 2024 12 2 2025 246 1 Thereafter 500 5 1,094 13 Less: Amounts representing interest — 3 Total payments 1,094 10 |
Other Liabilities and Deferre_2
Other Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities and Deferred Credits | The following table presents the components of other liabilities and deferred credits: . December 31, December 31, 2020 2019 $ $ Liability - other post-retirement benefit plans (Note 7) 62 58 Pension liability - defined benefit pension plans (Note 7) 124 101 Pension liability - multiemployer plan withdrawal 40 42 Long-term income taxes payable 9 9 Closure and restructuring costs liability (Note 16) 6 — Provision for environmental and asset retirement obligations (Note 22) 37 27 Stock-based compensation - liability awards (Note 23) 11 16 Derivative financial instruments (Note 23) 3 8 Worker's compensation and other related accruals 14 5 Other 8 3 314 269 |
Domtar's Asset Retirement Obligations | The following table reconciles Domtar’s asset retirement obligations: December 31, December 31, 2020 2019 $ $ Asset retirement obligations, beginning of year 13 12 Accretion expense 1 1 Asset retirement obligations, end of year 14 13 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value | The changes in the number of outstanding common stock and their aggregate stated value during the years ended December 31, 2020 and December 31, 2019, were as follows: December 31, December 31, 2020 2019 Number Number Common stock of shares $ of shares $ Balance at beginning of year 56,880,910 1 62,914,569 1 Shares issued Treasury stock (1) (1,686,372 ) — (6,033,659 ) — Balance at end of year 55,194,538 1 56,880,910 1 (1) During 2020, the Company repurchased 1,798,306, and issued 111,934 shares out of Treasury stock in conjunction with the exercise of stock-based compensation awards. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, December 31, 2020 2019 $ $ Balance at beginning of year 35 37 Additions and other changes 15 4 Environmental spending (3 ) (7 ) Effect of foreign currency exchange rate change — 1 Balance at end of year (1) 47 35 (1) At December 31, 2020, $10 million is shown in Trade and other payables (see Note 17) and $37 million is shown in Other liabilities and deferred credits (see Note 20). |
Anticipated Undiscounted Payments | At December 31, 2020, anticipated undiscounted payments in each of the next five years are as follows: 2021 2022 2023 2024 2025 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 10 2 2 6 2 70 92 |
Minimum Future Payments under Other Commercial Commitments | Minimum future payments under these other commercial commitments, determined at December 31, 2020, were as follows: 2021 2022 2023 2024 2025 Thereafter Total $ $ $ $ $ $ $ Other commercial commitments 155 10 6 6 — 2 179 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBtu (1) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural gas 2021 9,270,000 $ 27 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) MMBtu: Millions of British thermal units |
Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of December 31, 2020 to hedge forecasted purchases and sales: Percentage of Notional forecasted Year of contractual exposures under Average Average Currency exposure hedged maturity value contracts Protection rate Obligation rate CAD/USD 2021 781 CAD 82% 1 USD = 1.3359 1 USD = 1.3536 CAD/USD 2022 382 CAD 40% 1 USD = 1.3486 1 USD = 1.3486 |
Fair Value of Financial Instruments | The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) below) at December 31, 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. Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2020 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 31 — 31 — (a) Prepaid expenses Currency derivatives 16 — 16 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 48 — 48 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Natural gas swap contracts 3 — 3 — (a) Other liabilities and deferred credits Total Liabilities 6 — 6 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 11 11 — — Other liabilities and deferred credits Equity swap contracts 2 2 — — Other assets Long-term debt 1,234 — 1,234 — (b) Long-term debt Quoted prices in Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2019 (Level 1) (Level 2) (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 6 6 — — Trade and other payables Stock-based compensation - liability awards 16 16 — — Other liabilities and deferred credits Long-term debt 1,029 — 1,029 — (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 December 31, 2020 and December 31, 2019. The carrying value of the Company’s long-term debt is $1,097 million and $938 million at December 31, 2020 and December 31, 2019, respectively. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis and Reconciliation of Reportable Segment Information | An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Year ended Year ended Year ended December 31, December 31, December 31, SEGMENT DATA 2020 2019 2018 $ $ $ Sales by product group Communication papers 1,968 2,571 2,548 Specialty and packaging papers 575 637 710 Market pulp 1,064 1,119 1,260 Absorbent hygiene products 45 42 47 Consolidated sales (1) 3,652 4,369 4,565 Operating (loss) income from continuing operations (2) Pulp and Paper (143 ) 226 442 Corporate (34 ) (47 ) (47 ) Consolidated operating (loss) income from continuing operations (177 ) 179 395 Interest expense, net 58 52 62 Non-service components of net periodic benefit cost (17 ) 23 (18 ) (Loss) earnings before income taxes and equity loss (218 ) 104 351 Income tax (benefit) expense (76 ) 17 68 Equity loss, net of taxes 3 2 2 (Loss) earnings from continuing operations (145 ) 85 281 Earnings (loss) from discontinued operations, net of taxes 18 (1 ) 2 Net (loss) earnings (127 ) 84 283 (1) (2) |
Consolidated Assets | December 31, December 31, 2020 2019 $ $ Segment assets Pulp and Paper 3,209 3,562 Corporate 514 203 Total for reportable segments 3,723 3,765 Assets held for sale 1,133 1,138 Consolidated assets 4,856 4,903 |
Schedule Of Segment Reporting Information Expenditures For Additions To Long Lived Assets Table Text Block | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Additions to property, plant and equipment Pulp and Paper 124 225 167 Corporate 3 3 2 Discontinued Operations 33 36 34 Consolidated additions to property, plant and equipment 160 264 203 Add: Change in payables on capital projects 15 (9 ) (8 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 175 255 195 |
Long-Lived Assets | December 31, December 31, 2020 2019 $ $ Long-lived assets United States 1,423 1,620 Canada 688 691 2,111 2,311 |
Sales [Member] | |
Geographic Information on Sales | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 $ $ $ Geographic information Sales United States 2,755 3,306 3,257 Canada 324 419 470 Europe 117 150 221 Asia 374 369 488 Other foreign countries 82 125 129 3,652 4,369 4,565 |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended (LOSS) AND COMPREHENSIVE INCOME (LOSS) December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,232 1,352 (932 ) 3,652 Operating expenses Cost of sales, excluding depreciation and amortization — 2,952 1,105 (932 ) 3,125 Depreciation and amortization — 164 59 — 223 Selling, general and administrative 8 38 207 — 253 Impairment of long-lived assets — 136 — — 136 Closure and restructuring costs — 84 15 — 99 Other operating loss (income), net 2 (5 ) (4 ) — (7 ) 10 3,369 1,382 (932 ) 3,829 Operating loss (10 ) (137 ) (30 ) — (177 ) Interest expense (income), net 65 72 (79 ) — 58 Non-service components of net periodic benefit cost — (6 ) (11 ) — (17 ) (Loss) earnings before income taxes and equity loss (75 ) (203 ) 60 — (218 ) Income tax (benefit) expense (24 ) (73 ) 21 — (76 ) Equity loss, net of taxes — 1 2 — 3 Share in earnings of equity accounted investees (72 ) 52 — 20 — (Loss) earnings from continuing operations (123 ) (79 ) 37 20 (145 ) (Loss) earnings from discontinued operations, net of taxes (4 ) 7 15 — 18 Net (loss) earnings (127 ) (72 ) 52 20 (127 ) Other comprehensive income 89 80 54 (134 ) 89 Comprehensive (loss) income (38 ) 8 106 (114 ) (38 ) CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,878 1,491 (1,000 ) 4,369 Operating expenses Cost of sales, excluding depreciation and amortization 1 3,349 1,260 (1,000 ) 3,610 Depreciation and amortization — 172 59 — 231 Selling, general and administrative 9 162 120 — 291 Impairment of long-lived assets — 32 — — 32 Closure and restructuring costs — 22 — — 22 Other operating (income) loss, net — (3 ) 7 — 4 10 3,734 1,446 (1,000 ) 4,190 Operating (loss) income (10 ) 144 45 — 179 Interest expense (income), net 69 80 (97 ) — 52 Non-service components of net periodic benefit cost — 2 21 — 23 (Loss) earnings before income taxes and equity loss (79 ) 62 121 — 104 Income tax (benefit) expense (17 ) 2 32 — 17 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 146 121 — (267 ) — Earnings from continuing operations 84 180 88 (267 ) 85 (Loss) earnings from discontinued operations, net of taxes — (34 ) 33 — (1 ) Net earnings 84 146 121 (267 ) 84 Other comprehensive income 74 81 49 (130 ) 74 Comprehensive income 158 227 170 (397 ) 158 CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Year ended AND COMPREHENSIVE INCOME December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,961 1,732 (1,128 ) 4,565 Operating expenses Cost of sales, excluding depreciation and amortization — 3,437 1,329 (1,128 ) 3,638 Depreciation and amortization — 181 60 — 241 Selling, general and administrative 11 25 256 — 292 Other operating (income) loss, net — (3 ) 2 — (1 ) 11 3,640 1,647 (1,128 ) 4,170 Operating (loss) income (11 ) 321 85 — 395 Interest expense (income), net 62 91 (91 ) — 62 Non-service components of net periodic benefit cost — 1 (19 ) — (18 ) (Loss) earnings before income taxes and equity loss (73 ) 229 195 — 351 Income tax (benefit) expense (20 ) 38 50 — 68 Equity loss, net of taxes — 1 1 — 2 Share in earnings of equity accounted investees 336 166 — (502 ) — Earnings from continuing operations 283 356 144 (502 ) 281 (Loss) earnings from discontinued operations, net of taxes — (20 ) 22 — 2 Net earnings 283 336 166 (502 ) 283 Other comprehensive loss (131 ) (133 ) (110 ) 243 (131 ) Comprehensive income 152 203 56 (259 ) 152 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 208 5 96 — 309 Receivables — 65 315 — 380 Inventories — 425 205 — 630 Prepaid expenses 8 37 5 — 50 Income and other taxes receivable 36 — 18 — 54 Intercompany accounts 759 902 433 (2,094 ) — Assets held for sale — 488 648 (3 ) 1,133 Total current assets 1,011 1,922 1,720 (2,097 ) 2,556 Property, plant and equipment, net — 1,348 675 — 2,023 Operating lease right-of-use assets — 48 11 — 59 Intangible assets, net — 24 5 — 29 Investments in affiliates 3,558 2,169 — (5,727 ) — Intercompany long-term advances 5 — 1,157 (1,162 ) — Other assets 11 41 143 (6 ) 189 Total assets 4,585 5,552 3,711 (8,992 ) 4,856 Liabilities and shareholders' equity Current liabilities Trade and other payables 26 294 167 (3 ) 484 Intercompany accounts 677 491 926 (2,094 ) — Income and other taxes payable 3 11 1 — 15 Operating lease liabilities due within one year — 15 5 — 20 Long-term debt due within one year 12 — 1 — 13 Liabilities held for sale — 121 174 — 295 Total current liabilities 718 932 1,274 (2,097 ) 827 Long-term debt 1,075 — 9 — 1,084 Operating lease liabilities — 44 6 — 50 Intercompany long-term loans 509 653 — (1,162 ) — Deferred income taxes and other — 237 90 (6 ) 321 Other liabilities and deferred credits 23 128 163 — 314 Shareholders' equity 2,260 3,558 2,169 (5,727 ) 2,260 Total liabilities and shareholders' equity 4,585 5,552 3,711 (8,992 ) 4,856 CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 1 11 49 — 61 Receivables — 114 368 — 482 Inventories — 468 195 — 663 Prepaid expenses 5 14 10 — 29 Income and other taxes receivable 34 — 22 — 56 Intercompany accounts 538 547 237 (1,322 ) — Assets held for sale — 110 117 — 227 Total current assets 578 1,264 998 (1,322 ) 1,518 Property, plant and equipment, net — 1,545 678 — 2,223 Operating lease right-of-use assets — 44 14 — 58 Intangible assets, net — 25 5 — 30 Investments in affiliates 3,627 2,493 — (6,120 ) — Intercompany long-term advances 5 1 1,482 (1,488 ) — Other assets 14 30 130 (11 ) 163 Non-current assets held for sale — 383 528 — 911 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 57 338 185 — 580 Intercompany accounts 344 299 679 (1,322 ) — Income and other taxes payable 1 12 2 — 15 Operating lease liabilities due within one year — 13 5 — 18 Long-term debt due within one year — — 1 — 1 Liabilities held for sale — 60 83 — 143 Total current liabilities 402 731 955 (1,322 ) 766 Long-term debt 873 1 63 — 937 Operating lease liabilities — 31 9 — 40 Intercompany long-term loans 541 946 1 (1,488 ) — Deferred income taxes and other — 277 94 (11 ) 360 Other liabilities and deferred credits 32 96 141 — 269 Long-term liabilities held for sale — 76 79 — 155 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 | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2020 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (127 ) (72 ) 52 20 (127 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings 167 107 284 (20 ) 538 Cash flows provided from operating activities 40 35 336 — 411 Investing activities Additions to property, plant and equipment — (104 ) (71 ) — (175 ) Proceeds from disposals of property, plant and equipment — 3 — — 3 Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows provided from (used for) investing activities — (101 ) (101 ) — (202 ) 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 (6 ) — (1 ) — (7 ) Increase in long-term advances to related parties — — (137 ) 137 — Decrease in long-term advances to related parties 67 70 — (137 ) — Other (4 ) — 1 — (3 ) Cash flows provided from (used for) financing activities 167 60 (192 ) — 35 Net increase (decrease) in cash and cash equivalents 207 (6 ) 43 — 244 Impact of foreign exchange on cash — — 4 — 4 Cash and cash equivalents at beginning of year 1 11 49 — 61 Cash and cash equivalents at end of year 208 5 96 — 309 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2019 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 84 146 121 (267 ) 84 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 32 (93 ) 152 267 358 Cash flows provided from operating activities 116 53 273 — 442 Investing activities Additions to property, plant and equipment — (137 ) (118 ) — (255 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Cash flows used for investing activities — (136 ) (118 ) — (254 ) Financing activities Dividend payments (110 ) — — — (110 ) Stock repurchase (219 ) — — — (219 ) Net change in bank indebtedness — 9 — — 9 Change in revolving credit facility 80 — — — 80 Proceeds from receivables securitization facility — — 205 — 205 Repayments of receivables securitization facility — — (200 ) — (200 ) Repayments of long-term debt — — (1 ) — (1 ) Increase in long-term advances to related parties — — (220 ) 220 — Decrease in long-term advances to related parties 135 85 — (220 ) — Other (1 ) — — — (1 ) Cash flows (used for) provided from financing activities (115 ) 94 (216 ) — (237 ) Net increase (decrease) in cash and cash equivalents 1 11 (61 ) — (49 ) Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of year — — 111 — 111 Cash and cash equivalents at end of year 1 11 49 — 61 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year ended December 31, 2018 Non- Guarantor Guarantor Consolidating Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 283 336 166 (502 ) 283 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (557 ) 434 (108 ) 502 271 Cash flows (used for) provided from operating activities (274 ) 770 58 — 554 Investing activities Additions to property, plant and equipment — (142 ) (53 ) — (195 ) Proceeds from disposals of property, plant and equipment — 1 4 — 5 Other — (2 ) (4 ) — (6 ) Cash flows used for investing activities — (143 ) (53 ) — (196 ) Financing activities Dividend payments (108 ) — — — (108 ) Proceeds from receivables securitization facility — — 85 — 85 Repayments of receivables securitization facility — — (60 ) — (60 ) Repayments of long-term debt — (300 ) (1 ) — (301 ) Increase in long-term advances to related parties — (341 ) (36 ) 377 — Decrease in long-term advances to related parties 377 — — (377 ) — Other 2 — — — 2 Cash flows provided from (used for) financing activities 271 (641 ) (12 ) — (382 ) Net decrease in cash and cash equivalents (3 ) (14 ) (7 ) — (24 ) Impact of foreign exchange on cash — — (4 ) — (4 ) Cash and cash equivalents at beginning of year 3 14 122 — 139 Cash and cash equivalents at end of year — — 111 — 111 |
Interim Financial Results (Tabl
Interim Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Interim Financial Results | 2020 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,031 $ 802 $ 899 $ 920 $ 3,652 Operating loss (1 ) (4 ) (a) (152 ) (b) (20 ) (c) (177 ) Loss before income taxes and equity loss (11 ) (14 ) (162 ) (31 ) (218 ) Loss from continuing operations (15 ) (3 ) (111 ) (16 ) (145 ) Earnings (loss) from discontinued operations, net of taxes 20 22 19 (43 ) 18 Net earnings (loss) 5 19 (92 ) (59 ) (127 ) Basic net earnings (loss) per common share Loss from continuing operations (0.27 ) (0.05 ) (2.01 ) (0.29 ) (2.62 ) Earnings (loss) from discontinued operations 0.36 0.39 0.34 (0.78 ) 0.33 Basic net earnings (loss) per common share 0.09 0.34 (1.67 ) (1.07 ) (2.29 ) Diluted net earnings (loss) per common share Loss from continuing operations (0.27 ) (0.05 ) (2.01 ) (0.29 ) (2.62 ) Earnings (loss) from discontinued operations 0.36 0.39 0.34 (0.78 ) 0.33 Diluted net earnings (loss) per common share 0.09 0.34 (1.67 ) (1.07 ) (2.29 ) 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Sales $ 1,157 $ 1,106 $ 1,079 $ 1,027 $ 4,369 Operating income (loss) 123 52 27 (d) (23 ) (e) 179 Earnings (loss) before income taxes and equity loss 113 41 17 (67 ) (f) 104 Earnings (loss) from continuing operations 83 31 15 (44 ) 85 (Loss) earnings from discontinued operations, net of taxes (3 ) (13 ) 5 10 (1 ) Net earnings (loss) 80 18 20 (34 ) 84 Basic net earnings (loss) per common share Earnings (loss) from continuing operations 1.32 0.50 0.25 (0.76 ) 1.39 (Loss) earnings from discontinued operations (0.05 ) (0.21 ) 0.08 0.17 (0.02 ) Basic net earnings (loss) per common share 1.27 0.29 0.33 (0.59 ) 1.37 Diluted net earnings (loss) per common share Earnings (loss) from continuing operations 1.32 0.49 0.24 (0.76 ) 1.39 (Loss) earnings from discontinued operations (0.05 ) (0.21 ) 0.08 0.17 (0.02 ) Diluted net earnings (loss) per common share 1.27 0.28 0.32 (0.59 ) 1.37 (a) The operating loss for the second Quarter of 2020 included closure and restructuring costs of $1 million. (b) The operating loss for the third Quarter of 2020 included closure and restructuring costs of $68 million and impairment of long-lived assets of $111 million. (c) The operating loss for the fourth Quarter of 2020 included closure and restructuring costs of $30 million and impairment of long-lived assets of $25 million. (d) The operating income for the third Quarter of 2019 included closure and restructuring costs of $5 million and impairment of long-lived assets of $32 million. (e) The operating loss for the fourth Quarter of 2019 included closure and restructuring costs of $17 million. (f) The loss before income taxes and equity loss for the fourth Quarter of 2019 included a pension settlement loss of $30 million. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||
LIFO inventories | $ 220,000,000 | $ 242,000,000 |
Excess amount of inventory if valued under FIFO instead of LIFO | $ 52,000,000 | $ 69,000,000 |
Expiration period from date of grant | 7 years | |
Other Post-Retirement Benefit Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 12 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of projected benefit obligation and market value of assets | 10.00% | |
Omnibus Plan [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Shares reserved for issuance in connection with stock awards grants | 872,136 | |
Pension Plans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Average remaining service period (in years) | 10 years | |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of projected benefit obligation and market value of assets | 10.00% | |
Construction in Progress [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Depreciation | $ 0 | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 10 years | |
Minimum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 10 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 3 years | |
Maximum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization period of capitalized environmental cost (in years) | 40 years | |
Maximum [Member] | Buildings and Improvements [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, depreciation period (in years) | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Amortization Period of Finite Lived Assets (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Water Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Non-Compete [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 9 years |
Minimum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 20 years |
Minimum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 7 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 30 years |
Maximum [Member] | Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 20 years |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Personal Care [Member] - Subsequent Event - AIP [Member] $ in Millions | Jan. 07, 2021USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Purchase price | $ 920 |
Estimated working capital | $ 130 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Earnings (Loss) from Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | |||||||||||
Sales | $ 995 | $ 920 | $ 959 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 721 | 684 | 734 | ||||||||
Depreciation and amortization | 60 | 62 | 67 | ||||||||
Selling, general and administrative | 141 | 143 | 151 | ||||||||
Impairment of long-lived assets | 1 | 26 | 7 | ||||||||
Closure and restructuring costs | 20 | 8 | |||||||||
Other operating loss, net | 2 | 1 | 1 | ||||||||
Operating expenses | 925 | 936 | 968 | ||||||||
Operating income (loss) | 70 | (16) | (9) | ||||||||
Loss on classification as held for sale | 45 | ||||||||||
Earnings (loss) from discontinued operations before income taxes | 25 | (16) | (9) | ||||||||
Income tax expense (benefit) | 7 | (15) | (11) | ||||||||
Net earnings (loss) from discontinued operations | $ (43) | $ 19 | $ 22 | $ 20 | $ 10 | $ 5 | $ (13) | $ (3) | $ 18 | $ (1) | $ 2 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale in Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets | $ 1,133 | $ 1,138 |
Personal Care [Member] | ||
Assets | ||
Receivables | 110 | 94 |
Inventories | 138 | 123 |
Prepaid expenses | 3 | 4 |
Income and other taxes receivable | 3 | 6 |
Property, plant and equipment, net | 351 | 344 |
Operating lease right-of-use assets | 15 | 22 |
Intangible assets, net | 554 | 543 |
Other assets | 2 | 2 |
Total assets | 1,176 | 1,138 |
Loss on classification as held for sale | (43) | |
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets | 1,133 | 1,138 |
Liabilities | ||
Trade and other payables | 128 | 125 |
Income and other taxes payable | 12 | 7 |
Operating lease liabilities due within one year | 8 | 10 |
Long-term debt | 1 | 1 |
Operating lease liabilities | 8 | 29 |
Deferred income taxes and other | 130 | 119 |
Other liabilities and deferred credits | 8 | 7 |
Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets | $ 295 | $ 298 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale in Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Indefinite-lived intangible assets | $ 290 | $ 272 |
Definite-lived intangible assets | 264 | $ 271 |
Trade Names [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Intangible assets, net | 248 | |
Catalog Rights [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Intangible assets, net | $ 42 |
Discontinued Operations - Sch_4
Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Cash Provided By Used In Discontinued Operations [Abstract] | |||
Cash flows from operating activities | $ 111 | $ 90 | $ 58 |
Cash flows used for investing activities | $ (34) | $ (40) | $ (29) |
Acquisition of Business - Addit
Acquisition of Business - Additional Information (Detail) - USD ($) $ in Millions | Apr. 27, 2020 | Dec. 31, 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 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 27, 2019 |
Business Acquisition [Line Items] | |||
Operating lease right-of-use assets (NOTE 13) | $ 59 | $ 58 | |
Appvion Operations, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Inventories | $ 11 | ||
Property, plant and equipment | 23 | ||
Operating lease right-of-use assets (NOTE 13) | 2 | ||
Total assets | 36 | ||
Less: Assumed Liabilities | 6 | ||
Fair value of net assets acquired at the date of acquisition | $ 30 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Outstanding Awards (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Beginning balance, Number of units | 626,321 | 722,458 | 622,468 |
Granted, Number of units | 304,604 | 192,261 | 238,537 |
Forfeited, Number of units | (27,778) | (24,980) | (36,932) |
Cancelled, Number of units | (150,542) | (41,399) | |
Issued, Number of units | 52,563 | ||
Settled, Number of units | (216,701) | (222,019) | (154,178) |
Ending balance, Number of units | 535,904 | 626,321 | 722,458 |
Beginning balance, Weighted average grant date fair value | $ 45.42 | $ 37.82 | $ 37.78 |
Granted, Weighted average grant date fair value | 36.70 | 61.46 | 41.39 |
Forfeited, Weighted average grant date fair value | 45.25 | 45.54 | 38.09 |
Cancelled, Weighted average grant date fair value | 45.41 | 57.09 | |
Issued, Weighted average grant date fair value | 41.05 | ||
Settled, Weighted average grant date fair value | 39.04 | 32.39 | 44.22 |
Ending balance, Weighted average grant date fair value | $ 43.06 | $ 45.42 | $ 37.82 |
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 231,012 | 156,417 | 157,502 |
Beginning balance, Weighted average grant date fair value | $ 45.20 | $ 39.16 | $ 38.56 |
Granted, Weighted average grant date fair value | 33.26 | 51.07 | 44.04 |
Forfeited, Weighted average grant date fair value | 41.05 | 42.86 | 39.91 |
Ending balance, Weighted average grant date fair value | $ 41.16 | $ 45.20 | $ 39.16 |
Beginning balance, Number of units | 416,452 | 455,591 | 460,663 |
Forfeited, Number of units | (19,521) | (21,203) | (27,251) |
Vested/Settled, Number of units | (147,753) | (174,353) | (135,323) |
Ending balance, Number of units | 480,190 | 416,452 | 455,591 |
Vested/Settled, Weighted average grant date fair value | $ 40.21 | $ 34.96 | $ 42.54 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted, Number of units | 48,943 | 35,596 | 31,691 |
Granted, Weighted average grant date fair value | $ 25.11 | $ 41.32 | $ 44.64 |
Settled, Weighted average grant date fair value | $ 40.96 | $ 43.90 | $ 40.95 |
Beginning balance, Number of units | 317,163 | 294,173 | 272,234 |
Settled, Number of units | (10,873) | (12,606) | (9,752) |
Ending balance, Number of units | 355,233 | 317,163 | 294,173 |
Beginning balance, Weighted average grant date fair value | $ 31.45 | $ 30.79 | $ 29.55 |
Ending balance, Weighted average grant date fair value | $ 30.29 | $ 31.45 | $ 30.79 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used in Calculating Fair Value of Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Black-Scholes Based Option Pricing Model [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 3.27% | ||
Expected volatility | 29.00% | ||
Risk-free interest rate | 2.62% | ||
Expected life | 4 years 6 months | ||
Strike price | $ 43.66 | ||
Monte Carlo Simulation [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 5.338% | 3.323% | 3.80% |
Monte Carlo Simulation [Member] | One Year [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 32.00% | 31.00% | 22.00% |
Monte Carlo Simulation [Member] | Three Years [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 29.00% | 28.00% | 26.00% |
Monte Carlo Simulation [Member] | December 31, 2018 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.23% | ||
Monte Carlo Simulation [Member] | December 31, 2019 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.85% | 2.46% | |
Monte Carlo Simulation [Member] | December 31, 2020 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.42% | 2.65% | 2.61% |
Monte Carlo Simulation [Member] | December 31, 2021 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.26% | 2.56% | |
Monte Carlo Simulation [Member] | December 31, 2022 [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.21% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate intrinsic value, Options exercised | $ 1,000,000 | $ 1,000,000 | |
Aggregate intrinsic value, Options outstanding | $ 0 | ||
Aggregate intrinsic value, Options exercisable | $ 0 | ||
Closing stock price | $ 31.65 | $ 38.24 | $ 35.13 |
Stock-based compensation expense recognized | $ 7,000,000 | $ 22,000,000 | $ 10,000,000 |
Compensation costs not yet recognized | $ 15,000,000 | 16,000,000 | 17,000,000 |
Compensation costs not yet recognized, period of recognition | 14 months | ||
Aggregate value of liability awards settled | $ 6,000,000 | 12,000,000 | 8,000,000 |
Total fair value of equity awards settled | 6,000,000 | 11,000,000 | 6,000,000 |
Fair value of equity awards at grant date | $ 7,000,000 | $ 6,000,000 | $ 7,000,000 |
Performance Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected to be settled in shares | 277,653 | ||
Expected to be settled in cash | 258,251 | ||
Restricted Stock Unit [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected to be settled in shares | 229,731 | ||
Expected to be settled in cash | 250,459 | ||
Vesting period (in years) | 3 years | ||
Granted, Weighted average grant date fair value | $ 33.26 | $ 51.07 | $ 44.04 |
Deferred Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based payment award, vested in period | 0 | 0 | 0 |
Granted, Weighted average grant date fair value | $ 25.11 | $ 41.32 | $ 44.64 |
Non-Qualified Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options granted | 0 | 0 | |
Granted, Weighted average grant date fair value | $ 8.65 | ||
Non-Qualified Options [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options expire at various dates from the date of grant | 7 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Outstanding Awards, Options (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate intrinsic value, Exercised | $ 1,000,000 | $ 1,000,000 | ||
Aggregate intrinsic value Outstanding, Ending | $ 0 | |||
Aggregate intrinsic value, Exercisable | $ 0 | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options Outstanding, Beginning | 421,354 | 513,652 | 563,065 | |
Number of options, Granted | 104,086 | |||
Number of options, Exercised | (88,682) | (147,397) | ||
Number of options, Forfeited/expired | (15,030) | (3,616) | (6,102) | |
Number of options Outstanding Ending | 406,324 | 421,354 | 513,652 | 563,065 |
Number of options, Exercisable | 371,622 | 316,530 | 303,055 | |
Weighted average exercise price Outstanding, Beginning Balance | $ 46.92 | $ 45.68 | $ 44.46 | |
Weighted average exercise price, Granted | 43.66 | |||
Weighted average exercise price, Exercised | 39.46 | 39.42 | ||
Weighted average exercise Price, Forfeited/expired | 43.09 | 53.13 | 50.05 | |
Weighted average exercise price Outstanding, Ending Balance | 47.07 | 46.92 | 45.68 | $ 44.46 |
Weighted average exercise price, Exercisable | $ 47.38 | $ 48.44 | $ 49.15 | |
Weighted average remaining life (in years), Outstanding | 1 year 7 months 6 days | 2 years 6 months | 3 years 7 months 6 days | 4 years 1 month 6 days |
Weighted average remaining life (in years), Granted | 6 years 2 months 12 days | |||
Weighted average remaining life (in years), Options exercisable | 1 year 4 months 25 days | 1 year 9 months 18 days | 2 years 3 months 18 days | |
Aggregate intrinsic value Outstanding, Beginning | $ 100,000 | $ 100,000 | $ 3,600,000 | |
Aggregate intrinsic value Outstanding, Ending | 100,000 | $ 100,000 | $ 3,600,000 | |
Aggregate intrinsic value, Exercisable | $ 100,000 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
(Loss) earnings from continuing operations | $ (16) | $ (111) | $ (3) | $ (15) | $ (44) | $ 15 | $ 31 | $ 83 | $ (145) | $ 85 | $ 281 |
Earnings (loss) from discontinued operations, net of taxes (NOTE 3) | (43) | 19 | 22 | 20 | 10 | 5 | (13) | (3) | 18 | (1) | 2 |
Net (loss) earnings | $ (59) | $ (92) | $ 19 | $ 5 | $ (34) | $ 20 | $ 18 | $ 80 | $ (127) | $ 84 | $ 283 |
Basic | 55.4 | 61.2 | 62.9 | ||||||||
Effect of dilutive securities (millions) | 0.2 | 0.2 | |||||||||
Weighted average number of diluted common shares outstanding (millions) | 55.4 | 61.4 | 63.1 | ||||||||
Basic net (loss) earnings | |||||||||||
(Loss) earnings from continuing operations | $ (0.29) | $ (2.01) | $ (0.05) | $ (0.27) | $ (0.76) | $ 0.25 | $ 0.50 | $ 1.32 | $ (2.62) | $ 1.39 | $ 4.47 |
Earnings (loss) from discontinued operations | (0.78) | 0.34 | 0.39 | 0.36 | 0.17 | 0.08 | (0.21) | (0.05) | 0.33 | (0.02) | 0.03 |
Basic net (loss) earnings | (1.07) | (1.67) | 0.34 | 0.09 | (0.59) | 0.33 | 0.29 | 1.27 | (2.29) | 1.37 | 4.50 |
Diluted net (loss) earnings | |||||||||||
(Loss) earnings from continuing operations | (0.29) | (2.01) | (0.05) | (0.27) | (0.76) | 0.24 | 0.49 | 1.32 | (2.62) | 1.39 | 4.45 |
Earnings (loss) from discontinued operations | (0.78) | 0.34 | 0.39 | 0.36 | 0.17 | 0.08 | (0.21) | (0.05) | 0.33 | (0.02) | 0.03 |
Diluted net (loss) earnings | $ (1.07) | $ (1.67) | $ 0.34 | $ 0.09 | $ (0.59) | $ 0.32 | $ 0.28 | $ 1.27 | $ (2.29) | $ 1.37 | $ 4.48 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share - Securities that Could Potentially Dilute Basic Earnings (Loss) Per Common Share in Future (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Options to purchase common shares | 406,324 | 324,413 | 227,221 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Pension expense | $ 39 | $ 39 | $ 46 | |||
Accumulated benefit obligation of pension plan | $ 1,516 | $ 1,379 | 1,516 | 1,379 | ||
Non-cash pension settlement charge | 2 | 30 | 2 | 30 | 0 | |
Projected benefit obligation | 917 | 833 | 917 | 833 | ||
Fair value of defined benefit plan assets with an projected benefit obligation in excess of fair value of plan assets | $ 793 | $ 732 | $ 793 | $ 732 | ||
weighted-average interest-crediting rate for cash balance pension plan | 3.30% | |||||
Expected return on plan assets, percentage | 4.80% | 5.20% | ||||
Weighted-average annual rate increase in per capita cost of covered health care benefits assumed | 3.90% | 3.90% | ||||
Subsequent Event | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Expected return on plan assets, percentage | 4.40% | |||||
United States Plans [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Discount rate | 3.20% | 3.20% | ||||
Minimum number of years from issuance of private placement bonds | 2 years | |||||
Pension Plans [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Expected minimum contribution in 2021 | $ 13 | $ 13 | ||||
Plan contributions | 15 | $ 17 | $ 57 | |||
Non-cash pension settlement charge | $ 2 | $ 30 | ||||
Discount rate | 2.50% | 3.10% | 2.50% | 3.10% | 3.80% | |
Expected return on plan assets, percentage | 4.60% | 5.20% | 5.00% | |||
Other Post-Retirement Benefit Plans [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Expected minimum contribution in 2021 | $ 4 | $ 4 | ||||
Plan contributions | $ 4 | $ 4 | $ 4 | |||
Discount rate | 2.50% | 3.10% | 2.50% | 3.10% | 3.80% | |
Supplemental Nonqualified Unfunded Retirement Plan [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Accrued benefit obligation | $ 61 | $ 55 | $ 61 | $ 55 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | $ 1,425 | $ 1,557 | |
Service cost for the year | 29 | 29 | $ 34 |
Interest expense | 39 | 57 | 53 |
Plan participants' contributions | 6 | 6 | |
Actuarial loss (gain) | 127 | 170 | |
Plan amendments | 2 | ||
Benefits paid | (67) | (96) | |
Direct benefit payments | (3) | (4) | |
Curtailment (1) | (1) | ||
Settlement (2) | (15) | (348) | |
Effect of foreign currency exchange rate change | 24 | 54 | |
Projected benefit obligation at end of year | 1,566 | 1,425 | 1,557 |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | 63 | 62 | |
Service cost for the year | 1 | 1 | 1 |
Interest expense | 2 | 2 | 2 |
Actuarial loss (gain) | 2 | (1) | |
Direct benefit payments | (4) | (4) | |
Acquisition of business | 1 | ||
Effect of foreign currency exchange rate change | 2 | 3 | |
Projected benefit obligation at end of year | $ 67 | $ 63 | $ 62 |
Pension Plans and Other Post-_5
Pension Plans and Other Post-Retirement Benefit Plans - Change in Fair Value of Assets (Detail) - Pension Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,465 | $ 1,579 | |
Actual return on plan assets | 166 | 253 | |
Employer contributions | 15 | 17 | $ 57 |
Plan participants' contributions | 6 | 6 | |
Benefits paid | (70) | (100) | |
Settlement | (15) | (348) | |
Effect of foreign currency exchange rate change | 27 | 58 | |
Fair value of assets at end of year | $ 1,594 | $ 1,465 | $ 1,579 |
Pension Plans and Other Post-_6
Pension Plans and Other Post-Retirement Benefit Plans - Change in Fair Value of Assets (Parenthetical) (Detail) $ in Millions, $ in Millions | Dec. 05, 2019USD ($)Employee | Dec. 05, 2019CAD ($)Employee | Nov. 26, 2019USD ($) | Nov. 26, 2019CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||||
Number of retirees | Employee | 1,265 | 1,265 | |||||||
Non-cash pension settlement charge | $ | $ 2 | $ 30 | $ 2 | $ 30 | $ 0 | ||||
Buy-out Contracts [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||||
Annuity buy-out contracts and transfer amount | $ 272 | $ 360 | |||||||
Buy-in Annuity Contracts to Buy-Out Annuity Contracts [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||||
Annuity buy-out contracts and transfer amount | $ 76 | $ 101 |
Pension Plans and Other Post-_7
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 2.00% | 2.00% |
Cash and Cash Equivalents [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 0.00% | |
Cash and Cash Equivalents [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 10.00% | |
Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 42.00% | 53.00% |
Bonds [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 40.00% | |
Bonds [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 50.00% | |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 11.00% | |
Percentage of plan assets | 11.00% | |
Canadian Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 6.00% | 6.00% |
Canadian Equities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 3.00% | |
Canadian Equities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 10.00% | |
U.S. Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 15.00% | 15.00% |
U.S. Equities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 9.00% | |
U.S. Equities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 19.00% | |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 24.00% | 24.00% |
International Equities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 18.00% | |
International Equities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 28.00% |
Pension Plans and Other Post-_8
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 100.00% | 100.00% |
Canadian Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 72.00% | |
United States Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 28.00% |
Pension Plans and Other Post-_9
Pension Plans and Other Post-Retirement Benefit Plans - Funded Status of Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | $ (1,566) | $ (1,425) | $ (1,557) |
Fair value of assets at end of year | 1,594 | 1,465 | 1,579 |
Funded status | 28 | 40 | |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | (67) | (63) | $ (62) |
Funded status | $ (67) | $ (63) |
Pension Plans and Other Post_10
Pension Plans and Other Post-Retirement Benefit Plans - Amount Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets (Note 15) | $ 152 | $ 141 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities and deferred credits (Note 20) | (124) | (101) |
Other assets (Note 15) | 152 | 141 |
Net amount recognized in the Consolidated Balance Sheets | 28 | 40 |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Trade and other payables (Note 17) | (5) | (5) |
Other liabilities and deferred credits (Note 20) | (62) | (58) |
Net amount recognized in the Consolidated Balance Sheets | $ (67) | $ (63) |
Pension Plans and Other Post_11
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service cost | $ (2) | ||
Amortization of prior year service cost (credit) | 2 | $ 5 | $ 5 |
Net (loss) gain | (26) | 3 | (31) |
Amortization of net actuarial loss (gain) | 12 | 40 | 8 |
Net amount recognized in other comprehensive income (loss) (pre-tax) | (14) | 48 | (18) |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior year service cost (credit) | (1) | (1) | |
Net (loss) gain | (1) | 1 | 8 |
Amortization of net actuarial loss (gain) | (1) | (1) | (1) |
Net amount recognized in other comprehensive income (loss) (pre-tax) | $ (3) | $ (1) | $ 7 |
Pension Plans and Other Post_12
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||||
Non-cash pension settlement charge | $ 2 | $ 30 | $ 2 | $ 30 | $ 0 |
Pension Plans and Other Post_13
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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash pension settlement charge | $ 2 | $ 30 | $ 2 | $ 30 | $ 0 |
Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost for the year | 29 | 29 | 34 | ||
Interest expense | 39 | 57 | 53 | ||
Expected return on plan assets | (68) | (79) | (85) | ||
Amortization of net actuarial loss (gain) | 10 | 10 | 8 | ||
Curtailment loss | 2 | ||||
Non-cash pension settlement charge | 2 | 30 | |||
Amortization of prior year service cost (credit) | 2 | 5 | 5 | ||
Net periodic benefit cost | 16 | 52 | 15 | ||
Other Post-Retirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost for the year | 1 | 1 | 1 | ||
Interest expense | 2 | 2 | 2 | ||
Amortization of net actuarial loss (gain) | (1) | (1) | (1) | ||
Amortization of prior year service cost (credit) | (1) | (1) | |||
Net periodic benefit cost | $ 1 | $ 1 | $ 2 |
Pension Plans and Other Post_14
Pension Plans and Other Post-Retirement Benefit Plans - Key Assumptions to Measure Projected Benefit Obligation and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic benefit cost, Expected long-term rate of return on plan assets | 4.80% | 5.20% | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Discount rate | 2.50% | 3.10% | 3.80% |
Accrued benefit obligation, Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Net periodic benefit cost, Discount rate | 3.00% | 3.80% | 3.50% |
Net periodic benefit cost, Rate of compensation increase | 2.80% | 2.60% | 2.80% |
Net periodic benefit cost, Expected long-term rate of return on plan assets | 4.60% | 5.20% | 5.00% |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, Discount rate | 2.50% | 3.10% | 3.80% |
Accrued benefit obligation, Rate of compensation increase | 2.80% | 2.80% | 2.80% |
Net periodic benefit cost, Discount rate | 3.00% | 3.70% | 3.50% |
Net periodic benefit cost, Rate of compensation increase | 2.70% | 2.70% | 2.70% |
Pension Plans and Other Post_15
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 176 | $ 1 | $ 76 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,594 | 1,465 | $ 1,579 |
Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 946 | 1,012 | |
Pension Plans [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 472 | 452 | |
Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 176 | 1 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 60 | 66 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 16 | 24 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 44 | 42 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 391 | 454 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 388 | 453 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 3 | 1 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 63 | 119 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 46 | 91 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 17 | 28 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 23 | 21 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 22 | 21 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | ||
Pension Plans [Member] | International Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 10 | 13 | |
Pension Plans [Member] | International Corporate Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 10 | 13 | |
Pension Plans [Member] | Bond Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 173 | 166 | |
Pension Plans [Member] | Bond Fund [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 173 | 166 | |
Pension Plans [Member] | Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 97 | 93 | |
Pension Plans [Member] | Canadian Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 97 | 93 | |
Pension Plans [Member] | U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 99 | 86 | |
Pension Plans [Member] | U.S. Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 99 | 86 | |
Pension Plans [Member] | International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 268 | 231 | |
Pension Plans [Member] | International Equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 268 | 231 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 233 | 215 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 233 | 215 | |
Pension Plans [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 176 | 1 | |
Pension Plans [Member] | Insurance Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 176 | $ 1 | |
Pension Plans [Member] | Derivative Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | ||
Pension Plans [Member] | Derivative Contracts [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1 |
Pension Plans and Other Post_16
Pension Plans and Other Post-Retirement Benefit Plans - Changes in Level 3 Fair Value Measurements of Plan Assets (Detail) - Insurance Contracts [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Settlements | $ (84) | |
Return on plan assets | $ 3 | 7 |
Effect of foreign currency exchange rate change | 9 | 2 |
Purchases | 163 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | 1 | 76 |
Fair value of assets at end of year | $ 176 | $ 1 |
Pension Plans and Other Post_17
Pension Plans and Other Post-Retirement Benefit Plans - Estimated Future Benefit Payments from Plans (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 89 |
2022 | 88 |
2023 | 88 |
2024 | 90 |
2025 | 89 |
2026 – 2030 | 434 |
Other Post-Retirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 4 |
2022 | 4 |
2023 | 4 |
2024 | 4 |
2025 | 4 |
2026 – 2030 | $ 20 |
Other Operating Loss (Income)_3
Other Operating Loss (Income), Net - Components of Other Operating Loss (Income), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |||
Environmental provision | $ 2 | $ 4 | $ 5 |
Foreign exchange loss (gain) | 3 | (3) | |
Bad debt expense | 4 | 1 | 2 |
Net gain on sale of property, plant and equipment | (1) | (4) | |
Income for waiving a non-compete clause | (7) | ||
Other | (5) | (4) | (1) |
Other operating (income) loss, net | $ (7) | $ 4 | $ (1) |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |||
Interest on long-term debt | $ 52 | $ 45 | $ 56 |
Interest on receivables securitization | 1 | 2 | 1 |
Interest on withdrawal liabilities for multiemployer plans | 3 | 3 | 2 |
Amortization of debt issuance costs and other | 2 | 2 | 3 |
Interest expense, net | $ 58 | $ 52 | $ 62 |
Interest Expense, Net - Compo_2
Interest Expense, Net - Components of Interest Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Banking And Thrift Interest [Abstract] | |||
Capitalized interest expense | $ 3 | $ 3 | $ 1 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Earnings Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. (loss) earnings | $ (199) | $ 80 | $ 241 | ||||||||
Foreign (loss) earnings | (19) | 24 | 110 | ||||||||
(Loss) earnings before income taxes and equity loss | $ (31) | $ (162) | $ (14) | $ (11) | $ (67) | $ 17 | $ 41 | $ 113 | $ (218) | $ 104 | $ 351 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal and State, Current | $ (21) | $ 19 | $ 38 |
U.S. Federal and State, Deferred | (45) | (6) | (1) |
Foreign, Current | (7) | 4 | 5 |
Foreign, Deferred | (3) | 26 | |
Income tax (benefit) expense | $ (76) | $ 17 | $ 68 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 07, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2021 |
Income Taxes [Line Items] | |||||||
Statutory income tax rate | 21.00% | 21.00% | 35.00% | 35.00% | |||
Deferred taxes on Personal Care Group Investment | $ 51,000,000 | ||||||
Valuation allowance in Disposal group | 44,000,000 | ||||||
Additional valuation allowance | 3,000,000 | ||||||
Additional tax benefits related to U.S. tax reform | $ 3,000,000 | ||||||
Tax credit recorded for research and experimentation | 17,000,000 | $ 18,000,000 | 18,000,000 | ||||
Deferred tax liability | 298,000,000 | 332,000,000 | |||||
Deferred taxes on foreign earnings | (1,000,000) | 2,000,000 | 10,000,000 | ||||
Deferred state tax benefit | 4,000,000 | ||||||
Valuation allowance on deferred tax assets | 47,000,000 | 5,000,000 | |||||
Net tax benefit (expense) related to U.S. tax reform | 13,000,000 | ||||||
Deemed mandatory repatriation tax | (7,000,000) | ||||||
Revaluation of net deferred tax liabilities | 6,000,000 | ||||||
Operating loss Carryforwards | 0 | ||||||
Foreign loss carryforwards for valuation allowance | 7,000,000 | ||||||
Impacted tax expenses | 47,000,000 | 5,000,000 | |||||
Gross unrecognized tax benefits | 23,000,000 | 28,000,000 | 28,000,000 | $ 27,000,000 | |||
Accrued interest on uncertain tax positions | 1,000,000 | $ 1,000,000 | |||||
Maximum [Member] | |||||||
Income Taxes [Line Items] | |||||||
Accrued interest on uncertain tax positions | 1,000,000 | ||||||
Scenario Forecast [Member] | |||||||
Income Taxes [Line Items] | |||||||
Gross unrecognized tax benefits | $ 4,000,000 | ||||||
State Credits [Member] | |||||||
Income Taxes [Line Items] | |||||||
US state tax credits valuation allowance | 13,000,000 | ||||||
Foreign and State [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred tax liability | 11,000,000 | $ 12,000,000 | |||||
Foreign Tax Authority | |||||||
Income Taxes [Line Items] | |||||||
Operating loss Carryforwards | 4,000,000 | ||||||
C O V I D | |||||||
Income Taxes [Line Items] | |||||||
Additional tax benefits related to U.S. tax reform | $ 5,000,000 | ||||||
Personal Care [Member] | AIP [Member] | Subsequent Event | |||||||
Income Taxes [Line Items] | |||||||
Purchase price | $ 920,000,000 | ||||||
Deferred taxes on Personal Care Group Investment | $ 51,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) to U.S. Federal Statutory Income Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax | $ (46) | $ 22 | $ 74 |
State and local income taxes, net of federal income tax benefit | (6) | 4 | 9 |
Foreign income tax rate differential | (1) | 2 | 6 |
Tax credits and special deductions | (17) | (18) | (18) |
U.S. tax rate benefit from loss carryback | (5) | ||
Tax rate changes | (4) | (9) | |
Deemed mandatory repatriation tax | (7) | ||
Uncertain tax positions | (4) | (3) | (5) |
Deferred taxes on Personal Care Group Investment | (51) | ||
Deferred taxes on foreign earnings | (1) | 2 | 10 |
Intercompany income with assets held for sale | 3 | 3 | 4 |
Net book value adjustment of assets held for sale | 5 | ||
Valuation allowance on deferred tax assets | 47 | 5 | |
Nondeductible expenses | 1 | 3 | |
Other | (1) | 1 | 4 |
Income tax (benefit) expense | $ (76) | $ 17 | $ 68 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Accounting provisions | $ 31 | $ 27 |
Net operating loss carryforwards and other deductions | 56 | 9 |
Pension and other employee future benefit plans | 19 | 16 |
Inventory | 11 | 12 |
Tax credits | 41 | 23 |
Other | 12 | 7 |
Gross deferred tax assets | 170 | 94 |
Valuation allowance | (64) | (17) |
Net deferred tax assets | 106 | 77 |
Property, plant and equipment | (367) | (386) |
Intangible assets | (6) | (6) |
Other | (31) | (17) |
Total deferred tax liabilities | (404) | (409) |
Net deferred tax liabilities | (298) | (332) |
Deferred income taxes and other | $ (298) | $ (332) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 28 | $ 28 | $ 27 |
Additions based on tax positions related to current year | 1 | 3 | 3 |
Additions for tax positions of prior years | 1 | 2 | 3 |
Expirations of statutes of limitations | (7) | (6) | (6) |
Interest | 1 | 1 | |
Balance at end of year | $ 23 | $ 28 | $ 28 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 321 | $ 325 |
Raw materials | 107 | 119 |
Operating and maintenance supplies | 202 | 219 |
Total inventories | $ 630 | $ 663 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Property Plant And Equipment [Line Items] | |||
Machinery and equipment | $ 7,617 | $ 7,436 | |
Buildings and improvements | 962 | 944 | |
Timberlands | [1] | 195 | 191 |
Assets under construction | 87 | 135 | |
Property, plant and equipment, gross | 8,861 | 8,706 | |
Less: Accumulated depreciation | (6,838) | (6,483) | |
Net property, plant and equipment | $ 2,023 | $ 2,223 | |
Minimum [Member] | Machinery and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 3 years | ||
Minimum [Member] | Buildings and Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 10 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 20 years | ||
Maximum [Member] | Buildings and Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Range of useful lives | 40 years | ||
[1] | Amortization is calculated using the unit of production method. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense related to property, plant and equipment | $ 222 | $ 230 | $ 240 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | |||
Leases, terminable lease term | 1 year | ||
Operating lease expense | $ 22 | $ 21 | $ 19 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expense | $ 22 | $ 21 | $ 19 |
Finance lease expense: | |||
Amortization of right-of-use assets | 1 | ||
Total finance lease expense | $ 1 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 23 | $ 21 |
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 | $ 12 | $ 24 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases | ||
Operating leases right-of-use assets | $ 59 | $ 58 |
Lease liabilities due within one year | 20 | 18 |
Operating lease liabilities | 50 | 40 |
Operating lease liabilities, total | 70 | 58 |
Finance leases | ||
Property, plant and equipment | 11 | 9 |
Accumulated depreciation | (3) | (2) |
Property, plant and equipment, net | $ 8 | $ 7 |
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 | $ 9 | $ 8 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance leases liabilities, total | $ 10 | $ 9 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 8 months 12 days | 3 years 9 months 18 days |
Finance leases | 8 years 9 months 18 days | 10 years 4 months 24 days |
Weighted-average discount rate | ||
Operating leases | 4.40% | 4.40% |
Finance leases | 6.10% | 7.00% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating leases, 2021 | $ 20 | |
Operating leases, 2022 | 18 | |
Operating leases, 2023 | 15 | |
Operating leases, 2024 | 10 | |
Operating leases, 2025 | 6 | |
Operating leases, Thereafter | 9 | |
Operating leases, Total lease payments | 78 | |
Operating leases, Imputed interest | 8 | |
Operating leases, Total lease liabilities | $ 70 | $ 58 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 36 | $ 36 |
Accumulated amortization | (17) | (16) |
Finite lived intangible assets net | 19 | 20 |
Total, Gross carrying amount | 46 | 46 |
Intangible assets, net of amortization | 29 | 30 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 4 | 4 |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | $ 6 | 6 |
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 | 24 | 24 |
Accumulated amortization | (10) | (9) |
Finite lived intangible assets net | $ 14 | 15 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 20 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 30 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) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Impairment charges of indefinite-lived intangible assets | $ 0 | $ 0 | $ 0 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2021 | $ 1 |
Amortization expense related to intangible assets, 2022 | 1 |
Amortization expense related to intangible assets, 2023 | 1 |
Amortization expense related to intangible assets, 2024 | 1 |
Amortization expense related to intangible assets, 2025 | $ 1 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Pension asset - defined benefit pension plans (Note 7) | $ 152 | $ 141 |
Investment tax credits receivable | 4 | 5 |
Unamortized debt issuance costs | 3 | 3 |
Derivative financial instruments (Note 23) | 17 | 4 |
Equity swap contracts (Note 23) | 2 | |
Investments and advances | 6 | 5 |
Other | 5 | 5 |
Other assets | $ 189 | $ 163 |
Closure and Restructuring Cos_3
Closure and Restructuring Costs and Impairment of Long-Lived Assets - Additional Information (Detail) $ in Millions | Sep. 27, 2019Machine | Mar. 31, 2021EmployeeT | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||||||
Severance and termination costs | $ 30 | $ 68 | $ 1 | $ 17 | $ 5 | $ 99 | $ 22 | $ 0 | ||
Impairment of inventory (NOTE 16) | 31 | 6 | 4 | |||||||
Environmental cost | 12 | |||||||||
Pension settlement loss | 2 | |||||||||
Other costs | 18 | 2 | ||||||||
Accrual For Environmental Loss Contingencies | 47 | $ 35 | 47 | 35 | $ 37 | |||||
Accounts Payable and Accrued Liabilities | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accrual For Environmental Loss Contingencies | 10 | 10 | ||||||||
Other Noncurrent Liabilities | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accrual For Environmental Loss Contingencies | 37 | 37 | ||||||||
Pulp and Paper [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Severance and termination costs | 96 | 22 | ||||||||
Environmental cost | 12 | |||||||||
Other costs | 16 | 2 | ||||||||
Corporate [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Severance and termination costs | 3 | |||||||||
Other costs | 2 | |||||||||
Severance and Termination Costs [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Provision for closure and restructuring costs | 28 | 28 | ||||||||
Severance and Termination Costs [Member] | Accounts Payable and Accrued Liabilities | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accrual For Environmental Loss Contingencies | 22 | 22 | ||||||||
Severance and Termination Costs [Member] | Other Noncurrent Liabilities | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accrual For Environmental Loss Contingencies | 6 | 6 | ||||||||
Severance and Termination Costs [Member] | Pulp and Paper [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Provision for closure and restructuring costs | 9 | 9 | ||||||||
Severance and Termination Costs [Member] | Corporate [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Provision for closure and restructuring costs | 6 | 6 | ||||||||
Licenses Fees And Other Costs [Member] | Corporate [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Provision for closure and restructuring costs | 13 | 13 | ||||||||
Previous and Ongoing Closures and Restructuring [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Severance and termination costs | 1 | |||||||||
Cost reduction program [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accelerated depreciation | 136 | |||||||||
Severance and termination costs | 33 | |||||||||
Impairment of inventory (NOTE 16) | 31 | |||||||||
Pension curtailment loss | 2 | |||||||||
Other costs | 18 | |||||||||
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 | 6 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 | 9 months | |||||||||
Cost reduction program [Member] | Scenario Forecast [Member] | ||||||||||
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 | 3 | |||||||||
Impairment of inventory (NOTE 16) | 4 | |||||||||
Other costs | 2 | |||||||||
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 | |||||||||
Ashdown, Arkansas Mill and Port Huron, Michigan Mill [Member] | Depreciation and Amortization [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Accelerated depreciation | 1 | |||||||||
Ashdown, Arkansas mill [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Severance and termination costs | $ 13 | |||||||||
Multiemployer Pension Plans [Member] | ||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||
Provision for the withdrawal liabilities | $ 42 | $ 42 |
Closure and Restructuring Cos_4
Closure and Restructuring Costs and Impairment of Long-Lived Assets - Components of Closure and Restructuring Costs by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||||||||
Severance and termination costs | $ 34 | $ 16 | ||||||
Inventory write-down (storeroom, spare parts and other) | 31 | 4 | ||||||
Environmental cost | 12 | |||||||
Pension curtailment and settlement charges | 4 | |||||||
Licenses fees, write-offs and other costs | 18 | 2 | ||||||
Closure and restructuring costs | $ 30 | $ 68 | $ 1 | $ 17 | $ 5 | 99 | 22 | $ 0 |
Pulp and Paper [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Severance and termination costs | 33 | 16 | ||||||
Inventory write-down (storeroom, spare parts and other) | 31 | 4 | ||||||
Environmental cost | 12 | |||||||
Pension curtailment and settlement charges | 4 | |||||||
Licenses fees, write-offs and other costs | 16 | 2 | ||||||
Closure and restructuring costs | 96 | $ 22 | ||||||
Corporate [Member] | ||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||
Severance and termination costs | 1 | |||||||
Licenses fees, write-offs and other costs | 2 | |||||||
Closure and restructuring costs | $ 3 |
Closure and Restructuring Cos_5
Closure and Restructuring Costs and Impairment of Long-Lived Assets - Activity in Closure and Restructuring Liability (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||
Additions | $ 30 | $ 68 | $ 1 | $ 17 | $ 5 | $ 99 | $ 22 | $ 0 | ||||
Closure And Restructuring Liability [Member] | ||||||||||||
Restructuring Cost And Reserve [Line Items] | ||||||||||||
Balance at beginning of year | 12 | [1] | 2 | |||||||||
Additions | 48 | 12 | ||||||||||
Payments | (32) | (1) | ||||||||||
Reversal | (1) | |||||||||||
Balance at end of year | $ 28 | [1] | $ 12 | [1] | $ 28 | [1] | $ 12 | [1] | $ 2 | |||
[1] |
Trade and Other Payables - Comp
Trade and Other Payables - Components of Trade and Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 260 | $ 310 |
Payroll-related accruals | 104 | 99 |
Accrued interest | 16 | 16 |
Payables on capital projects | 13 | 27 |
Rebate accruals | 44 | 58 |
Liability - pension and other post-retirement benefit plans | 5 | 5 |
Liability - multiemployer plan withdrawal | 2 | 2 |
Provision for environment and other asset retirement obligations | 10 | 8 |
Closure and restructuring costs liability | 22 | 12 |
Derivative financial instruments | 3 | 11 |
Dividends payable | 26 | |
Stock-based compensation - liability awards | 5 | 6 |
Trade and other payables | $ 484 | $ 580 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (393) | ||
Other comprehensive (loss) income before reclassifications | 68 | $ 34 | |
Amounts reclassified from Accumulated other comprehensive loss | 21 | 40 | |
Other comprehensive income (loss) | 89 | 74 | $ (131) |
Ending balance | (304) | (393) | |
Balance | 2,376 | 2,538 | 2,483 |
Balance | 2,260 | 2,376 | 2,538 |
Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 1 | (10) | |
Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 3 | 5 | |
Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 23 | 16 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 63 | 21 | |
Net Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (22) | 2 | |
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (5) | (24) | |
Other comprehensive (loss) income before reclassifications | 27 | 11 | |
Amounts reclassified from Accumulated other comprehensive loss | 12 | 8 | |
Other comprehensive income (loss) | 39 | 19 | |
Ending balance | 34 | (5) | (24) |
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 | 1 | (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 | 3 | 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 | 23 | 16 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (197) | (231) | |
Other comprehensive (loss) income before reclassifications | (21) | 1 | |
Amounts reclassified from Accumulated other comprehensive loss | 11 | 33 | |
Other comprehensive income (loss) | (10) | 34 | |
Ending balance | (207) | (197) | (231) |
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 | (21) | 1 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 11 | 11 | |
Other comprehensive (loss) income before reclassifications | (1) | 1 | |
Amounts reclassified from Accumulated other comprehensive loss | (2) | (1) | |
Other comprehensive income (loss) | (3) | ||
Ending balance | 8 | 11 | 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) | 1 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (202) | (223) | |
Other comprehensive (loss) income before reclassifications | 63 | 21 | |
Other comprehensive income (loss) | 63 | 21 | |
Ending balance | (139) | (202) | (223) |
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 63 | 21 | |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (393) | (467) | (336) |
Balance | $ (304) | $ (393) | $ (467) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
(Loss) earnings before income taxes and equity loss | $ (31) | $ (162) | $ (14) | $ (11) | $ (67) | $ 17 | $ 41 | $ 113 | $ (218) | $ 104 | $ 351 |
Tax benefit (expense) | 76 | (17) | (68) | ||||||||
Net (loss) earnings | $ (59) | $ (92) | $ 19 | $ 5 | $ (34) | $ 20 | $ 18 | $ 80 | (127) | 84 | 283 |
Other Post-Retirement Benefit Plans [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial loss (gain) | (1) | (1) | (1) | ||||||||
Amortization of prior year service (cost) credit | (1) | (1) | |||||||||
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 | (16) | (11) | 3 | ||||||||
Tax benefit (expense) | 4 | 3 | (1) | ||||||||
Net (loss) earnings | (12) | (8) | 2 | ||||||||
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 | (10) | (4) | 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 | (6) | (7) | 1 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial loss (gain) | (12) | (40) | (8) | ||||||||
Amortization of prior year service (cost) credit | (2) | (5) | (5) | ||||||||
(Loss) earnings before income taxes and equity loss | (14) | (45) | (13) | ||||||||
Tax benefit (expense) | 3 | 12 | 3 | ||||||||
Net (loss) earnings | (11) | (33) | (10) | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of net actuarial loss (gain) | 1 | 1 | 1 | ||||||||
Amortization of prior year service (cost) credit | 1 | 1 | |||||||||
(Loss) earnings before income taxes and equity loss | 2 | 2 | 1 | ||||||||
Tax benefit (expense) | (1) | ||||||||||
Net (loss) earnings | $ 2 | $ 1 | $ 1 |
Changes in Accumulated Other _5
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||||
Non-cash pension settlement charge | $ 2 | $ 30 | $ 2 | $ 30 | $ 0 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Term Loan | $ 294 | |
Revolving Credit Facility | $ 80 | |
Securitization | 55 | |
Finance lease obligations and other | 10 | 9 |
Long-term debt | 1,103 | 943 |
Less: Unamortized debt issuance costs | 6 | 5 |
Less: Due within one year | 13 | 1 |
Long-term debt, excluding current maturities | $ 1,084 | 937 |
4.4% Notes [Member] | 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2022 | |
Par Amount | $ 300 | |
Unsecured notes | $ 300 | 300 |
6.25% Notes [Member] | 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2042 | |
Par Amount | $ 250 | |
Unsecured notes | $ 249 | 249 |
6.75% Notes [Member] | 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2044 | |
Par Amount | $ 250 | |
Unsecured notes | $ 250 | $ 250 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2025 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2023 | |
Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2021 | |
Revolving Credit Facility | $ 150 | |
Finance Lease Obligations and Other [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2021 | |
Finance Lease Obligations and Other [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Maturity | 2032 |
Long-Term Debt - Components o_2
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
4.4% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 4.40% | 4.40% |
6.25% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 6.25% | 6.25% |
6.75% Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate | 6.75% | 6.75% |
Long-Term Debt - Principal Long
Long-Term Debt - Principal Long-Term Debt Repayments, Including Finance Lease Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021, Long-term debt | $ 12 | |
2022, Long-term debt | 312 | |
2023, Long-term debt | 12 | |
2024, Long-term debt | 12 | |
2025, Long-term debt | 246 | |
Thereafter, Long-term debt | 500 | |
Long-term debt | 1,094 | |
Total payments, Long-term debt | 1,094 | |
2021, Finance leases and other | 1 | |
2022, Finance leases and other | 2 | |
2023, Finance leases and other | 2 | |
2024, Finance leases and other | 2 | |
2025, Finance leases and other | 1 | |
Thereafter, Finance leases and other | 5 | |
Finance leases and other obligations repayment | 13 | |
Less: Amounts representing interest, Finance leases and other | 3 | |
Total payments, Finance leases and other | $ 10 | $ 9 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | May 05, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 18, 2016 |
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $ 7,000,000 | $ 1,000,000 | $ 301,000,000 | ||
Remaining available borrowing capacity | 0 | 80,000,000 | |||
Revolving credit facility/Receivables securitization facility | 80,000,000 | ||||
Borrowings | 0 | 55,000,000 | |||
Letters of credit outstanding | 0 | 53,000,000 | |||
Interest on receivables securitization | $ 1,000,000 | $ 2,000,000 | $ 1,000,000 | ||
Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | Aug. 22, 2023 | ||||
Debt Instrument Covenant Description | The Credit Agreement contains customary covenants and events of default for transactions of this type, including two financial covenants: (i) an interest coverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not less than 3 to 1 and (ii) a leverage ratio, as defined in the Credit Agreement, that must be maintained at a level of not greater than 3.75 to 1 (or 4.00 to 1 upon the occurrence of certain qualifying material acquisitions). At December 31, 2020, the Company was in compliance with these financial covenants, and had no borrowings and $54 million of letters of credit outstanding under this facility (December 31, 2019 – $80 million and nil | ||||
Maximum aggregate amount | $ 700,000,000 | ||||
Credit facility extendable term | 1 year | ||||
Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility/Receivables securitization facility | $ 150,000,000 | ||||
Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Unused credit facility | $ 111,000,000 | ||||
Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage level | 375.00% | ||||
Lender commitments | $ 400,000,000 | ||||
Leverage ratio upon certain material acquisition | 400.00% | ||||
Minimum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest coverage level | 300.00% | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument maturity date | May 5, 2025 | ||||
Par Amount | $ 300,000,000 | ||||
Repayments of Long-term Debt | $ 3,000,000 | ||||
Debt Instrument Covenant Description | 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. | ||||
Term Loan [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest coverage level | 300.00% | ||||
Leverage level | 375.00% | ||||
Term Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 294,000,000 | $ 0 |
Other Liabilities and Deferre_3
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Liability - other post-retirement benefit plans (Note 7) | $ 62 | $ 58 |
Pension liability - defined benefit pension plans (Note 7) | 124 | 101 |
Pension liability - multiemployer plan withdrawal | 40 | 42 |
Long-term income taxes payable | 9 | 9 |
Closure and restructuring costs liability (Note 16) | 6 | |
Provision for environmental and asset retirement obligations (Note 22) | 37 | 27 |
Stock-based compensation - liability awards (Note 23) | 11 | 16 |
Derivative financial instruments (Note 23) | 3 | 8 |
Worker's compensation and other related accruals | 14 | 5 |
Other | 8 | 3 |
Other liabilities and deferred credits | $ 314 | $ 269 |
Other Liabilities and Deferre_4
Other Liabilities and Deferred Credits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligations [Line Items] | |||
Present value of asset retirement obligations | $ 14 | $ 13 | $ 12 |
Undiscounted cash outflows | $ 59 | $ 58 | |
Asset retirement obligation, expected settlement date | Dec. 31, 2060 | ||
Minimum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 4.70% | ||
Maximum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk-free rates used to evaluate the present value of asset retirement obligations | 12.00% |
Other Liabilities and Deferre_5
Other Liabilities and Deferred Credits - Domtar's Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | ||
Asset retirement obligations, beginning of year | $ 13 | $ 12 |
Accretion expense | 1 | 1 |
Asset retirement obligations, end of year | $ 14 | $ 13 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Apr. 15, 2020 | Jan. 15, 2020 | Oct. 15, 2019 | Jul. 16, 2019 | Apr. 15, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 04, 2019 |
Shareholders' Equity [Line Items] | |||||||||||||
Dividend per share | $ 0.455 | $ 0.455 | $ 0.455 | $ 0.455 | $ 0.435 | ||||||||
Dividends paid | $ 25,000,000 | $ 26,000,000 | $ 27,000,000 | $ 28,000,000 | $ 28,000,000 | ||||||||
Record date | Apr. 2, 2020 | Jan. 2, 2020 | Oct. 2, 2019 | Jul. 2, 2019 | Apr. 2, 2019 | ||||||||
Payment date | Apr. 15, 2020 | Jan. 15, 2020 | Oct. 15, 2019 | Jul. 16, 2019 | Apr. 15, 2019 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 344,000,000 | ||||||||||||
Stock repurchased, shares | 1,798,306 | ||||||||||||
Stock repurchased, value | $ 59,000,000 | $ 219,000,000 | |||||||||||
Preferred shares authorized to issue | 20,000,000 | ||||||||||||
Preferred stock, par value | $ 0.01 | ||||||||||||
Preferred shares, outstanding | 0 | 0 | 0 | ||||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Tranche One [Member] | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchased, shares | 1,798,306 | ||||||||||||
Stock repurchased, average price | $ 33.05 | ||||||||||||
Stock repurchased, value | $ 59,000,000 | ||||||||||||
Tranche Two [Member] | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchased, shares | 6,220,658 | ||||||||||||
Stock repurchased, average price | $ 35.29 | ||||||||||||
Stock repurchased, value | $ 219,000,000 | ||||||||||||
Maximum [Member] | |||||||||||||
Shareholders' Equity [Line Items] | |||||||||||||
Stock repurchase program authorized amount | $ 1,600,000,000 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Balance at beginning of year, Number of shares | 56,880,910 | 62,914,569 |
Treasury stock, Number of shares | (1,686,372) | (6,033,659) |
Balance at end of year, Number of shares | 55,194,538 | 56,880,910 |
Balance at beginning of year | $ 1 | $ 1 |
Treasury stock | 0 | 0 |
Balance at end of year | $ 1 | $ 1 |
Shareholders' Equity - Change_2
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2020shares | |
Statement Of Stockholders Equity [Abstract] | |
Stock repurchased, shares | 1,798,306 |
Treasury stock, shares reissued | 111,934 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | |||
Capital expenditures for environmental matters | $ 4,000,000 | $ 19,000,000 | $ 8,000,000 |
Pension Plans [Member] | |||
Commitments And Contingencies [Line Items] | |||
Provision for liability | 0 | ||
Environmental Matters [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating expenses for environmental matters | 62,000,000 | $ 71,000,000 | $ 68,000,000 |
Indemnification Guarantee [Member] | |||
Commitments And Contingencies [Line Items] | |||
Provision for liability | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of year | $ 35 | $ 37 |
Additions and other changes | 15 | 4 |
Environmental spending | (3) | (7) |
Effect of foreign currency exchange rate change | 1 | |
Balance at end of year | $ 47 | $ 35 |
Commitments and Contingencies_3
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 47 | $ 35 | $ 37 |
Accounts Payable and Accrued Liabilities | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | 10 | ||
Other Noncurrent Liabilities | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 37 |
Commitments and Contingencies_4
Commitments and Contingencies - Anticipated Undiscounted Payments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Environmental Remediation Obligations [Abstract] | |
2021 | $ 10 |
2022 | 2 |
2023 | 2 |
2024 | 6 |
2025 | 2 |
Thereafter | 70 |
Total | $ 92 |
Commitments and Contingencies_5
Commitments and Contingencies - Minimum Future Payments under Other Commercial Commitments (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Environmental Remediation Obligations [Abstract] | |
Other commercial commitments, 2021 | $ 155 |
Other commercial commitments, 2022 | 10 |
Other commercial commitments, 2023 | 6 |
Other commercial commitments, 2024 | 6 |
Other commercial commitments, Thereafter | 2 |
Other commercial commitments, Total | $ 179 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020shares | Dec. 31, 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 | 36 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 | $ (4) | ||
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 | (2) | ||
Currency Derivatives [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 46 | ||
Currency Derivatives [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 30 | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | 58 | $ 66 | |
Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ 46 | $ 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 | 15.00% | 14.00% | |
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 | 12.00% | 13.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Dec. 31, 2020USD ($)MMBTU |
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 | 37.00% |
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 | 35.00% |
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 | 15.00% |
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] | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
CAD/USD Denominated Notional Contractual Value For 2021 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 781,000,000 |
Percentage of forecasted net exposures under contracts | 82.00% |
Currency exposure hedged, Average Protection rate | 1.3359 |
Currency exposure hedged, Average Obligation rate | 1.3536 |
CAD/USD Denominated Notional Contractual Value For 2022 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 382,000,000 |
Percentage of forecasted net exposures under contracts | 40.00% |
Currency exposure hedged, Average Protection rate | 1.3486 |
Currency exposure hedged, Average Obligation rate | 1.3486 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total Assets | $ 48 | $ 8 |
Total Liabilities | 6 | 19 |
Long-term debt | 1,234 | 1,029 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | 6 |
Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 11 | 16 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 31 | 4 |
Currency Derivatives [Member] | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | 16 | 4 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 2 |
Natural Gas Swap Contracts [Member] | Other Assets | ||
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 | 3 | 8 |
Equity Swap Contracts [Member] | Other Assets | ||
Derivative [Line Items] | ||
Equity swap contracts | 2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | 6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 11 | 16 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Swap Contracts [Member] | Other Assets | ||
Derivative [Line Items] | ||
Equity swap contracts | 2 | |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 48 | 8 |
Total Liabilities | 6 | 19 |
Long-term debt | 1,234 | 1,029 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 31 | 4 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | 16 | 4 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 2 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets | ||
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 | $ 3 | $ 8 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 1,097 | $ 938 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 3,652 | $ 4,369 | $ 4,565 | ||||||||
Operating income (loss) | $ (20) | $ (152) | $ (4) | $ (1) | $ (23) | $ 27 | $ 52 | $ 123 | (177) | 179 | 395 |
Interest expense, net (NOTE 9) | 58 | 52 | 62 | ||||||||
Non-service components of net periodic benefit cost (NOTE 7) | (17) | 23 | (18) | ||||||||
(Loss) earnings before income taxes and equity loss | (31) | (162) | (14) | (11) | (67) | 17 | 41 | 113 | (218) | 104 | 351 |
Income tax (benefit) expense (NOTE 10) | (76) | 17 | 68 | ||||||||
Equity loss, net of taxes | 3 | 2 | 2 | ||||||||
(Loss) earnings from continuing operations | (16) | (111) | (3) | (15) | (44) | 15 | 31 | 83 | (145) | 85 | 281 |
Earnings (loss) from discontinued operations, net of taxes | (43) | 19 | 22 | 20 | 10 | 5 | (13) | (3) | 18 | (1) | 2 |
Net (loss) earnings | $ (59) | $ (92) | $ 19 | $ 5 | $ (34) | $ 20 | $ 18 | $ 80 | (127) | 84 | 283 |
Operating Segments | Communication Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,968 | 2,571 | 2,548 | ||||||||
Operating Segments | Specialty and Packaging Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 575 | 637 | 710 | ||||||||
Operating Segments | Market Pulp [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,064 | 1,119 | 1,260 | ||||||||
Operating Segments | Absorbent Hygiene Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 45 | 42 | 47 | ||||||||
Operating Segments | Pulp and Paper [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | (143) | 226 | 442 | ||||||||
Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) | $ (34) | $ (47) | $ (47) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019 | |
Canada Emergency Wage Subsidy [Member] | Reduction of Costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 36 | $ 48 | |
Canada Emergency Wage Subsidy [Member] | Cost of Sale [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 29 | 38 | |
Canada Emergency Wage Subsidy [Member] | Selling, General And Administrative [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 7 | $ 10 | |
Customer Concentration Risk [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of total sales represented by Company's largest customers | 12.00% | 12.00% | 13.00% |
Segment Disclosures - Consolida
Segment Disclosures - Consolidated Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 4,856 | $ 4,903 |
Assets held for sale | 1,133 | 1,138 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 3,723 | 3,765 |
Operating Segments | Pulp and Paper [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 3,209 | 3,562 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 514 | $ 203 |
Segment Disclosures - Additions
Segment Disclosures - Additions to Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 160 | $ 264 | $ 203 |
Discontinued Operations | 33 | 36 | 34 |
Add: Change in payables on capital projects | 15 | (9) | (8) |
Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows | 175 | 255 | 195 |
Operating Segments | Pulp and Paper [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | 124 | 225 | 167 |
Corporate [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Additions to property, plant and equipment | $ 3 | $ 3 | $ 2 |
Segment Disclosures - Geographi
Segment Disclosures - Geographic Information on Sales (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | $ 3,652 | $ 4,369 | $ 4,565 |
United States [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 2,755 | 3,306 | 3,257 |
Canada [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 324 | 419 | 470 |
Europe [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 117 | 150 | 221 |
Asia [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | 374 | 369 | 488 |
Other Foreign Countries [Member] | |||
Schedule Of Net Sales By Geographical Segment [Line Items] | |||
Sales | $ 82 | $ 125 | $ 129 |
Segment Disclosures - Long-Live
Segment Disclosures - Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 2,111 | $ 2,311 |
United States [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 1,423 | 1,620 |
Canada [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 688 | $ 691 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | $ 3,652 | $ 4,369 | $ 4,565 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 3,125 | 3,610 | 3,638 | ||||||||
Depreciation and amortization | 223 | 231 | 241 | ||||||||
Selling, general and administrative | 253 | 291 | 292 | ||||||||
Impairment of long-lived assets | $ 25 | $ 111 | $ 32 | 136 | 32 | 0 | |||||
Closure and restructuring costs | 30 | 68 | $ 1 | $ 17 | 5 | 99 | 22 | 0 | |||
Other operating loss (income), net | (7) | 4 | (1) | ||||||||
Operating expenses | 3,829 | 4,190 | 4,170 | ||||||||
Operating loss | (20) | (152) | (4) | $ (1) | (23) | 27 | $ 52 | $ 123 | (177) | 179 | 395 |
Interest expense (income), net | 58 | 52 | 62 | ||||||||
Non-service components of net periodic benefit cost | (17) | 23 | (18) | ||||||||
(Loss) earnings before income taxes and equity loss | (31) | (162) | (14) | (11) | (67) | 17 | 41 | 113 | (218) | 104 | 351 |
Income tax (benefit) expense (NOTE 10) | (76) | 17 | 68 | ||||||||
Equity loss, net of taxes | 3 | 2 | 2 | ||||||||
(Loss) earnings from continuing operations | (16) | (111) | (3) | (15) | (44) | 15 | 31 | 83 | (145) | 85 | 281 |
(Loss) earnings from discontinued operations, net of taxes | 18 | (1) | 2 | ||||||||
Net (loss) earnings | (59) | (92) | 19 | 5 | (34) | 20 | 18 | 80 | (127) | 84 | 283 |
Other comprehensive income (loss) | 89 | 74 | (131) | ||||||||
Comprehensive (loss) income | (38) | 158 | 152 | ||||||||
Operating (loss) income | (20) | (152) | (4) | (1) | (23) | 27 | 52 | 123 | (177) | 179 | 395 |
(Loss) earnings before income taxes and equity loss | $ (31) | $ (162) | $ (14) | $ (11) | $ (67) | $ 17 | $ 41 | $ 113 | (218) | 104 | 351 |
Reportable Legal Entities [Member] | Parent [Member] | |||||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 1 | ||||||||||
Selling, general and administrative | 8 | 9 | 11 | ||||||||
Other operating loss (income), net | 2 | ||||||||||
Operating expenses | 10 | 10 | 11 | ||||||||
Operating loss | (10) | (10) | (11) | ||||||||
Interest expense (income), net | 65 | 69 | 62 | ||||||||
(Loss) earnings before income taxes and equity loss | (75) | (79) | (73) | ||||||||
Income tax (benefit) expense (NOTE 10) | (24) | (17) | (20) | ||||||||
Share in earnings of equity accounted investees | (72) | 146 | 336 | ||||||||
(Loss) earnings from continuing operations | (123) | 84 | 283 | ||||||||
(Loss) earnings from discontinued operations, net of taxes | (4) | ||||||||||
Net (loss) earnings | (127) | 84 | 283 | ||||||||
Other comprehensive income (loss) | 89 | 74 | (131) | ||||||||
Comprehensive (loss) income | (38) | 158 | 152 | ||||||||
Operating (loss) income | (10) | (10) | (11) | ||||||||
(Loss) earnings before income taxes and equity loss | (75) | (79) | (73) | ||||||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 3,232 | 3,878 | 3,961 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 2,952 | 3,349 | 3,437 | ||||||||
Depreciation and amortization | 164 | 172 | 181 | ||||||||
Selling, general and administrative | 38 | 162 | 25 | ||||||||
Impairment of long-lived assets | 136 | 32 | |||||||||
Closure and restructuring costs | 84 | 22 | |||||||||
Other operating loss (income), net | (5) | (3) | (3) | ||||||||
Operating expenses | 3,369 | 3,734 | 3,640 | ||||||||
Operating loss | (137) | 144 | 321 | ||||||||
Interest expense (income), net | 72 | 80 | 91 | ||||||||
Non-service components of net periodic benefit cost | (6) | 2 | 1 | ||||||||
(Loss) earnings before income taxes and equity loss | (203) | 62 | 229 | ||||||||
Income tax (benefit) expense (NOTE 10) | (73) | 2 | 38 | ||||||||
Equity loss, net of taxes | 1 | 1 | 1 | ||||||||
Share in earnings of equity accounted investees | 52 | 121 | 166 | ||||||||
(Loss) earnings from continuing operations | (79) | 180 | 356 | ||||||||
(Loss) earnings from discontinued operations, net of taxes | 7 | (34) | (20) | ||||||||
Net (loss) earnings | (72) | 146 | 336 | ||||||||
Other comprehensive income (loss) | 80 | 81 | (133) | ||||||||
Comprehensive (loss) income | 8 | 227 | 203 | ||||||||
Operating (loss) income | (137) | 144 | 321 | ||||||||
(Loss) earnings before income taxes and equity loss | (203) | 62 | 229 | ||||||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | 1,352 | 1,491 | 1,732 | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | 1,105 | 1,260 | 1,329 | ||||||||
Depreciation and amortization | 59 | 59 | 60 | ||||||||
Selling, general and administrative | 207 | 120 | 256 | ||||||||
Closure and restructuring costs | 15 | ||||||||||
Other operating loss (income), net | (4) | 7 | 2 | ||||||||
Operating expenses | 1,382 | 1,446 | 1,647 | ||||||||
Operating loss | (30) | 45 | 85 | ||||||||
Interest expense (income), net | (79) | (97) | (91) | ||||||||
Non-service components of net periodic benefit cost | (11) | 21 | (19) | ||||||||
(Loss) earnings before income taxes and equity loss | 60 | 121 | 195 | ||||||||
Income tax (benefit) expense (NOTE 10) | 21 | 32 | 50 | ||||||||
Equity loss, net of taxes | 2 | 1 | 1 | ||||||||
(Loss) earnings from continuing operations | 37 | 88 | 144 | ||||||||
(Loss) earnings from discontinued operations, net of taxes | 15 | 33 | 22 | ||||||||
Net (loss) earnings | 52 | 121 | 166 | ||||||||
Other comprehensive income (loss) | 54 | 49 | (110) | ||||||||
Comprehensive (loss) income | 106 | 170 | 56 | ||||||||
Operating (loss) income | (30) | 45 | 85 | ||||||||
(Loss) earnings before income taxes and equity loss | 60 | 121 | 195 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Sales | (932) | (1,000) | (1,128) | ||||||||
Operating expenses | |||||||||||
Cost of sales, excluding depreciation and amortization | (932) | (1,000) | (1,128) | ||||||||
Operating expenses | (932) | (1,000) | (1,128) | ||||||||
Share in earnings of equity accounted investees | 20 | (267) | (502) | ||||||||
(Loss) earnings from continuing operations | 20 | (267) | (502) | ||||||||
Net (loss) earnings | 20 | (267) | (502) | ||||||||
Other comprehensive income (loss) | (134) | (130) | 243 | ||||||||
Comprehensive (loss) income | $ (114) | $ (397) | $ (259) |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||
Cash and cash equivalents | $ 309 | $ 61 | ||
Receivables | 380 | 482 | ||
Inventories | 630 | 663 | ||
Prepaid expenses | 50 | 29 | ||
Income and other taxes receivable | 54 | 56 | ||
Assets held for sale | 1,133 | 227 | ||
Total current assets | 2,556 | 1,518 | ||
Property, plant and equipment, net | 2,023 | 2,223 | ||
Operating leases right-of-use assets | 59 | 58 | ||
Intangible assets, net | 29 | 30 | ||
Other assets | 189 | 163 | ||
Non-current assets held for sale | 911 | |||
Total assets | 4,856 | 4,903 | ||
Current liabilities | ||||
Bank indebtedness | 9 | |||
Trade and other payables | 484 | 580 | ||
Income and other taxes payable | 15 | 15 | ||
Operating lease liabilities due within one year | 20 | 18 | ||
Long-term debt due within one year | 13 | 1 | ||
Liabilities held for sale | 295 | 143 | ||
Total current liabilities | 827 | 766 | ||
Long-term debt | 1,084 | 937 | ||
Operating lease liabilities | 50 | 40 | ||
Deferred income taxes and other | 321 | 360 | ||
Other liabilities and deferred credits | 314 | 269 | ||
Long-term liabilities held for sale | 155 | |||
Shareholders' equity | 2,260 | 2,376 | $ 2,538 | $ 2,483 |
Total liabilities and shareholders' equity | 4,856 | 4,903 | ||
Reportable Legal Entities [Member] | Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 208 | 1 | ||
Prepaid expenses | 8 | 5 | ||
Income and other taxes receivable | 36 | 34 | ||
Intercompany accounts | 759 | 538 | ||
Total current assets | 1,011 | 578 | ||
Investments in affiliates | 3,558 | 3,627 | ||
Intercompany long-term advances | 5 | 5 | ||
Other assets | 11 | 14 | ||
Total assets | 4,585 | 4,224 | ||
Current liabilities | ||||
Trade and other payables | 26 | 57 | ||
Intercompany accounts | 677 | 344 | ||
Income and other taxes payable | 3 | 1 | ||
Long-term debt due within one year | 12 | |||
Total current liabilities | 718 | 402 | ||
Long-term debt | 1,075 | 873 | ||
Intercompany long-term loans | 509 | 541 | ||
Other liabilities and deferred credits | 23 | 32 | ||
Shareholders' equity | 2,260 | 2,376 | ||
Total liabilities and shareholders' equity | 4,585 | 4,224 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 5 | 11 | ||
Receivables | 65 | 114 | ||
Inventories | 425 | 468 | ||
Prepaid expenses | 37 | 14 | ||
Intercompany accounts | 902 | 547 | ||
Assets held for sale | 488 | 110 | ||
Total current assets | 1,922 | 1,264 | ||
Property, plant and equipment, net | 1,348 | 1,545 | ||
Operating leases right-of-use assets | 48 | 44 | ||
Intangible assets, net | 24 | 25 | ||
Investments in affiliates | 2,169 | 2,493 | ||
Intercompany long-term advances | 1 | |||
Other assets | 41 | 30 | ||
Non-current assets held for sale | 383 | |||
Total assets | 5,552 | 5,785 | ||
Current liabilities | ||||
Bank indebtedness | 9 | |||
Trade and other payables | 294 | 338 | ||
Intercompany accounts | 491 | 299 | ||
Income and other taxes payable | 11 | 12 | ||
Operating lease liabilities due within one year | 15 | 13 | ||
Liabilities held for sale | 121 | 60 | ||
Total current liabilities | 932 | 731 | ||
Long-term debt | 1 | |||
Operating lease liabilities | 44 | 31 | ||
Intercompany long-term loans | 653 | 946 | ||
Deferred income taxes and other | 237 | 277 | ||
Other liabilities and deferred credits | 128 | 96 | ||
Long-term liabilities held for sale | 76 | |||
Shareholders' equity | 3,558 | 3,627 | ||
Total liabilities and shareholders' equity | 5,552 | 5,785 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 96 | 49 | ||
Receivables | 315 | 368 | ||
Inventories | 205 | 195 | ||
Prepaid expenses | 5 | 10 | ||
Income and other taxes receivable | 18 | 22 | ||
Intercompany accounts | 433 | 237 | ||
Assets held for sale | 648 | 117 | ||
Total current assets | 1,720 | 998 | ||
Property, plant and equipment, net | 675 | 678 | ||
Operating leases right-of-use assets | 11 | 14 | ||
Intangible assets, net | 5 | 5 | ||
Intercompany long-term advances | 1,157 | 1,482 | ||
Other assets | 143 | 130 | ||
Non-current assets held for sale | 528 | |||
Total assets | 3,711 | 3,835 | ||
Current liabilities | ||||
Trade and other payables | 167 | 185 | ||
Intercompany accounts | 926 | 679 | ||
Income and other taxes payable | 1 | 2 | ||
Operating lease liabilities due within one year | 5 | 5 | ||
Long-term debt due within one year | 1 | 1 | ||
Liabilities held for sale | 174 | 83 | ||
Total current liabilities | 1,274 | 955 | ||
Long-term debt | 9 | 63 | ||
Operating lease liabilities | 6 | 9 | ||
Intercompany long-term loans | 1 | |||
Deferred income taxes and other | 90 | 94 | ||
Other liabilities and deferred credits | 163 | 141 | ||
Long-term liabilities held for sale | 79 | |||
Shareholders' equity | 2,169 | 2,493 | ||
Total liabilities and shareholders' equity | 3,711 | 3,835 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Intercompany accounts | (2,094) | (1,322) | ||
Assets held for sale | (3) | |||
Total current assets | (2,097) | (1,322) | ||
Investments in affiliates | (5,727) | (6,120) | ||
Intercompany long-term advances | (1,162) | (1,488) | ||
Other assets | (6) | (11) | ||
Total assets | (8,992) | (8,941) | ||
Current liabilities | ||||
Trade and other payables | (3) | |||
Intercompany accounts | (2,094) | (1,322) | ||
Total current liabilities | (2,097) | (1,322) | ||
Intercompany long-term loans | (1,162) | (1,488) | ||
Deferred income taxes and other | (6) | (11) | ||
Shareholders' equity | (5,727) | (6,120) | ||
Total liabilities and shareholders' equity | $ (8,992) | $ (8,941) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net (loss) earnings | $ (127) | $ 84 | $ 283 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 538 | 358 | 271 |
Cash flows from operating activities | 411 | 442 | 554 |
Investing activities | |||
Additions to property, plant and equipment | (175) | (255) | (195) |
Proceeds from disposals of property, plant and equipment | 3 | 1 | 5 |
Other | (6) | ||
Acquisition of business, net of cash acquired (NOTE 4) | (30) | ||
Cash flows used for investing activities | (202) | (254) | (196) |
Financing activities | |||
Dividend payments | (51) | (110) | (108) |
Stock repurchase | (59) | (219) | |
Net change in bank indebtedness | (10) | 9 | |
Change in revolving credit facility | (80) | 80 | |
Proceeds from receivables securitization facility | 25 | 205 | 85 |
Repayments of receivables securitization facility | (80) | (200) | (60) |
Issuance of long-term debt | 300 | ||
Repayments of long-term debt | (7) | (1) | (301) |
Other | (3) | (1) | 2 |
Cash flows provided from (used for) financing activities | 35 | (237) | (382) |
Net increase (decrease) in cash and cash equivalents | 244 | (49) | (24) |
Impact of foreign exchange on cash | 4 | (1) | (4) |
Cash and cash equivalents at beginning of year | 61 | 111 | 139 |
Cash and cash equivalents at end of year | 309 | 61 | 111 |
Reportable Legal Entities [Member] | Parent [Member] | |||
Operating activities | |||
Net (loss) earnings | (127) | 84 | 283 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 167 | 32 | (557) |
Cash flows from operating activities | 40 | 116 | (274) |
Financing activities | |||
Dividend payments | (51) | (110) | (108) |
Stock repurchase | (59) | (219) | |
Change in revolving credit facility | (80) | 80 | |
Issuance of long-term debt | 300 | ||
Repayments of long-term debt | (6) | ||
Decrease in long-term advances to related parties | 67 | 135 | 377 |
Other | (4) | (1) | 2 |
Cash flows provided from (used for) financing activities | 167 | (115) | 271 |
Net increase (decrease) in cash and cash equivalents | 207 | 1 | (3) |
Cash and cash equivalents at beginning of year | 1 | 3 | |
Cash and cash equivalents at end of year | 208 | 1 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||
Operating activities | |||
Net (loss) earnings | (72) | 146 | 336 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 107 | (93) | 434 |
Cash flows from operating activities | 35 | 53 | 770 |
Investing activities | |||
Additions to property, plant and equipment | (104) | (137) | (142) |
Proceeds from disposals of property, plant and equipment | 3 | 1 | 1 |
Other | (2) | ||
Cash flows used for investing activities | (101) | (136) | (143) |
Financing activities | |||
Net change in bank indebtedness | (10) | 9 | |
Repayments of long-term debt | (300) | ||
Increase in long-term advances to related parties | (341) | ||
Decrease in long-term advances to related parties | 70 | 85 | |
Cash flows provided from (used for) financing activities | 60 | 94 | (641) |
Net increase (decrease) in cash and cash equivalents | (6) | 11 | (14) |
Cash and cash equivalents at beginning of year | 11 | 14 | |
Cash and cash equivalents at end of year | 5 | 11 | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||
Operating activities | |||
Net (loss) earnings | 52 | 121 | 166 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 284 | 152 | (108) |
Cash flows from operating activities | 336 | 273 | 58 |
Investing activities | |||
Additions to property, plant and equipment | (71) | (118) | (53) |
Proceeds from disposals of property, plant and equipment | 4 | ||
Other | (4) | ||
Acquisition of business, net of cash acquired (NOTE 4) | (30) | ||
Cash flows used for investing activities | (101) | (118) | (53) |
Financing activities | |||
Proceeds from receivables securitization facility | 25 | 205 | 85 |
Repayments of receivables securitization facility | (80) | (200) | (60) |
Repayments of long-term debt | (1) | (1) | (1) |
Increase in long-term advances to related parties | (137) | (220) | (36) |
Other | 1 | ||
Cash flows provided from (used for) financing activities | (192) | (216) | (12) |
Net increase (decrease) in cash and cash equivalents | 43 | (61) | (7) |
Impact of foreign exchange on cash | 4 | (1) | (4) |
Cash and cash equivalents at beginning of year | 49 | 111 | 122 |
Cash and cash equivalents at end of year | 96 | 49 | 111 |
Consolidating Adjustments [Member] | |||
Operating activities | |||
Net (loss) earnings | 20 | (267) | (502) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | (20) | 267 | 502 |
Financing activities | |||
Increase in long-term advances to related parties | 137 | 220 | 377 |
Decrease in long-term advances to related parties | $ (137) | $ (220) | $ (377) |
Interim Financial Results - Sch
Interim Financial Results - Schedule of Interim Financial Results (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 920 | $ 899 | $ 802 | $ 1,031 | $ 1,027 | $ 1,079 | $ 1,106 | $ 1,157 | $ 3,652 | $ 4,369 | |
Operating loss | (20) | (152) | (4) | (1) | (23) | 27 | 52 | 123 | (177) | 179 | $ 395 |
(Loss) earnings before income taxes and equity loss | (31) | (162) | (14) | (11) | (67) | 17 | 41 | 113 | (218) | 104 | 351 |
(Loss) earnings from continuing operations | (16) | (111) | (3) | (15) | (44) | 15 | 31 | 83 | (145) | 85 | 281 |
Earnings (loss) from discontinued operations, net of taxes (NOTE 3) | (43) | 19 | 22 | 20 | 10 | 5 | (13) | (3) | 18 | (1) | 2 |
Net (loss) earnings | $ (59) | $ (92) | $ 19 | $ 5 | $ (34) | $ 20 | $ 18 | $ 80 | $ (127) | $ 84 | $ 283 |
Basic net (loss) earnings | |||||||||||
(Loss) earnings from continuing operations | $ (0.29) | $ (2.01) | $ (0.05) | $ (0.27) | $ (0.76) | $ 0.25 | $ 0.50 | $ 1.32 | $ (2.62) | $ 1.39 | $ 4.47 |
Earnings (loss) from discontinued operations | (0.78) | 0.34 | 0.39 | 0.36 | 0.17 | 0.08 | (0.21) | (0.05) | 0.33 | (0.02) | 0.03 |
Basic net earnings (loss) per common share | (1.07) | (1.67) | 0.34 | 0.09 | (0.59) | 0.33 | 0.29 | 1.27 | (2.29) | 1.37 | 4.50 |
Diluted net (loss) earnings | |||||||||||
(Loss) earnings from continuing operations | (0.29) | (2.01) | (0.05) | (0.27) | (0.76) | 0.24 | 0.49 | 1.32 | (2.62) | 1.39 | 4.45 |
Earnings (loss) from discontinued operations | (0.78) | 0.34 | 0.39 | 0.36 | 0.17 | 0.08 | (0.21) | (0.05) | 0.33 | (0.02) | 0.03 |
Diluted net earnings (loss) per common share | $ (1.07) | $ (1.67) | $ 0.34 | $ 0.09 | $ (0.59) | $ 0.32 | $ 0.28 | $ 1.27 | $ (2.29) | $ 1.37 | $ 4.48 |
Interim Financial Results - S_2
Interim Financial Results - Schedule of Interim Financial Results (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||
Closure and restructuring costs | $ 30 | $ 68 | $ 1 | $ 17 | $ 5 | $ 99 | $ 22 | $ 0 |
Impairment of long-lived assets | 25 | $ 111 | $ 32 | 136 | 32 | 0 | ||
Loss on pension settlement | $ 2 | $ 30 | $ 2 | $ 30 | $ 0 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Doubtful Accounts - Accounts Receivable [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | $ 4 | $ 3 | $ 4 |
Charged to income | 4 | 1 | 2 |
Deductions from reserve | (2) | (3) | |
Balance at end of year | 6 | 4 | 3 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginnings of year | 17 | 12 | 12 |
Charged to income | 47 | 5 | |
Balance at end of year | $ 64 | $ 17 | $ 12 |