Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
No Trading Symbol Flag | true | |
Title of 12(b) Security | None | |
Entity Registrant Name | Domtar Corporation | |
Entity Central Index Key | 0001381531 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Public Float | $ 2,740,895,042 | |
ICFR Auditor Attestation Flag | false | |
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 | |
Entity Interactive Data Current | Yes | |
Auditor Name | PricewaterhouseCoopers LLP | |
Auditor Location | Charlotte, North Carolina | |
Auditor Firm ID | 238 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales | $ 300 | $ 3,368 | $ 3,415 | $ 4,119 |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 2,771 | 2,914 | 3,402 | |
Depreciation and amortization | 182 | 208 | 216 | |
Selling, general and administrative | 246 | 252 | 289 | |
Impairment of long-lived assets (NOTE 14) | 9 | 136 | 32 | |
Closure and restructuring costs (NOTE 14) | 17 | 99 | 22 | |
Asset conversion costs (NOTE 14) | 27 | |||
Transaction costs (NOTE 4) | 132 | |||
Other operating (income) loss, net | (5) | (7) | 4 | |
Operating expenses | 3,379 | 3,602 | 3,965 | |
Operating income (loss) from continuing operations | (11) | (187) | 154 | |
Interest expense, net (NOTE 7) | 10 | 54 | 58 | 52 |
Non-service components of net periodic benefit cost (NOTE 6) | (22) | (17) | 23 | |
(Loss) earnings before income taxes and equity loss | (7) | (43) | (228) | 79 |
Income tax (benefit) expense (NOTE 8) | (2) | 6 | (80) | 11 |
Equity method investment loss, net of taxes | 3 | 2 | ||
(Loss) earnings from continuing operations | (49) | (151) | 66 | |
Earnings from discontinued operations, net of taxes (NOTE 3) | 1 | 26 | 24 | 18 |
Net (loss) earnings | (23) | (127) | 84 | |
Net derivative gains (losses) on cash flow hedges: | ||||
Net gains arising during the period, net of tax of nil and $(8) (2020 – $(9); 2019 – $(3)) | 24 | 27 | 11 | |
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of nil and $8 (2020 – $(4); 2019 – $(3)) | (31) | 12 | 8 | |
Foreign currency translation adjustments | 57 | 63 | 21 | |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax of $(5) and $(33) (2020 – $4; 2019 – $(13)) | 99 | (13) | 34 | |
Other comprehensive income | 149 | 89 | 74 | |
Comprehensive income (loss) | $ 126 | $ (38) | $ 158 | |
Successors | ||||
Sales | 300 | |||
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 251 | |||
Depreciation and amortization | 23 | |||
Selling, general and administrative | 23 | |||
Closure and restructuring costs (NOTE 14) | (1) | |||
Asset conversion costs (NOTE 14) | 3 | |||
Operating expenses | 299 | |||
Operating income (loss) from continuing operations | 1 | |||
Interest expense, net (NOTE 7) | 10 | |||
Non-service components of net periodic benefit cost (NOTE 6) | (2) | |||
(Loss) earnings before income taxes and equity loss | (7) | |||
Income tax (benefit) expense (NOTE 8) | (2) | |||
(Loss) earnings from continuing operations | (5) | |||
Earnings from discontinued operations, net of taxes (NOTE 3) | 1 | |||
Net (loss) earnings | (4) | |||
Net derivative gains (losses) on cash flow hedges: | ||||
Foreign currency translation adjustments | 8 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax of $(5) and $(33) (2020 – $4; 2019 – $(13)) | 16 | |||
Other comprehensive income | 24 | |||
Comprehensive income (loss) | $ 20 |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Net (losses) gains arising during the period, tax | $ 0 | $ (8) | $ (9) | $ (3) |
Reclassification adjustment for (gains) losses included in net earnings (loss), net, tax | 0 | 8 | (4) | (3) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ (5) | $ (33) | $ 4 | $ (13) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents, including restricted cash of $250 and nil | $ 286 | $ 309 |
Receivables, less allowances of $4 and $6 | 463 | 355 |
Inventories (NOTE 9) | 663 | 562 |
Prepaid expenses | 44 | 50 |
Income and other taxes receivable | 59 | 54 |
Assets held for sale (NOTE 3) | 287 | 1,226 |
Total current assets | 1,802 | 2,556 |
Property, plant and equipment, net (NOTE 10) | 2,524 | 1,920 |
Operating lease right-of-use assets (NOTE 11) | 48 | 59 |
Intangible assets, net (NOTE 12) | 207 | 29 |
Other assets (NOTE 13) | 273 | 189 |
Non-current asset held for sale (NOTE 3) | 103 | |
Total assets | 4,854 | 4,856 |
Current liabilities | ||
Trade and other payables (NOTE 15) | 543 | 456 |
Income and other taxes payable | 11 | 15 |
Operating lease liabilities due within one year (NOTE 11) | 19 | 20 |
Long-term debt due within one year (NOTE 17) | 259 | 13 |
Liabilities held for sale (NOTE 3) | 63 | 336 |
Total current liabilities | 895 | 840 |
Long-term debt (NOTE 17) | 1,643 | 1,079 |
Operating lease liabilities (NOTE 11) | 36 | 50 |
Deferred income taxes and other (NOTE 8) | 525 | 308 |
Other liabilities and deferred credits (NOTE 18) | 216 | 310 |
Long-term liabilities held for sale (NOTE 3) | 9 | |
Commitments and contingencies (NOTE 20) | ||
Shareholders' equity (NOTE 19) | ||
Common stock $0.01 par value; 100 shares issued and outstanding at December 31, 2021 | 1 | |
Additional paid-in capital | 1,555 | 1,717 |
(Deficit) retained earnings | (40) | 846 |
Accumulated other comprehensive income (loss) | 24 | (304) |
Total shareholders' equity | 1,539 | 2,260 |
Total liabilities and shareholders' equity | $ 4,854 | $ 4,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Restricted cash | $ 250 | |
Receivables, allowances | $ 4 | $ 6 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common Stock, Shares outstanding | 100 | 55,194,538 |
Common stock, shares issued | 100 | 65,001,104 |
Treasury stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 9,806,566 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Deficit) - USD ($) $ in Millions | Total | Issued and Outstanding Common Shares [Member] | Additional Paid-in Capital | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2018 | $ 2,538 | $ 1 | $ 1,981 | $ 1,023 | $ (467) |
Balance, Shares at Dec. 31, 2018 | 62,900,000 | ||||
Stock-based compensation, net of tax | 8 | 8 | |||
Stock-based compensation, net of tax, shares | 200,000 | ||||
Net earnings (loss) | 84 | 84 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains arising during the period, net of tax of nil and $(8) (2020 – $(9); 2019 – $(3)) | 11 | 11 | |||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of nil and $8 (2020 – $(4); 2019 – $(3)) | 8 | 8 | |||
Foreign currency translation adjustments | 21 | 21 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 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 earnings (loss) | (127) | (127) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains arising during the period, net of tax of nil and $(8) (2020 – $(9); 2019 – $(3)) | 27 | 27 | |||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of nil and $8 (2020 – $(4); 2019 – $(3)) | 12 | 12 | |||
Foreign currency translation adjustments | 63 | 63 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | (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 | ||||
Net earnings (loss) | (23) | ||||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains arising during the period, net of tax of nil and $(8) (2020 – $(9); 2019 – $(3)) | 24 | ||||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of nil and $8 (2020 – $(4); 2019 – $(3)) | (31) | ||||
Foreign currency translation adjustments | 57 | ||||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 99 | ||||
Balance (Successors) at Nov. 30, 2021 | 0 | ||||
Balance at Dec. 31, 2020 | 2,260 | $ 1 | 1,717 | 846 | (304) |
Balance, Shares at Dec. 31, 2020 | 55,200,000 | ||||
Stock-based compensation, net of tax | (5) | (5) | |||
Stock-based compensation, net of tax, shares | 300,000 | ||||
Net earnings (loss) | (23) | (23) | |||
Net earnings (loss) | Successors | (4) | (4) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains arising during the period, net of tax of nil and $(8) (2020 – $(9); 2019 – $(3)) | 24 | 24 | |||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of nil and $8 (2020 – $(4); 2019 – $(3)) | (31) | (31) | |||
Foreign currency translation adjustments | 57 | 57 | |||
Foreign currency translation adjustments | Successors | 8 | 8 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 99 | 99 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | Successors | 16 | 16 | |||
Stock repurchase | $ (238) | (238) | |||
Stock repurchase, shares | (5,060,865) | (5,100,000) | |||
Buy-out of predecessor equity | Successors | $ (2,179) | $ (1) | (1,474) | (859) | 155 |
Buy-out of predecessor equity,shares | Successors | (50,400,000) | ||||
Capital contribution | Successors | 1,555 | 1,555 | |||
Balance at Dec. 31, 2021 | 1,539 | ||||
Balance (Successors) at Dec. 31, 2021 | 1,539 | 1,555 | (40) | 24 | |
Balance (Successors) at Nov. 30, 2021 | 0 | ||||
Net earnings (loss) | Successors | (4) | ||||
Net derivative gains (losses) on cash flow hedges: | |||||
Foreign currency translation adjustments | Successors | 8 | ||||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | Successors | 16 | ||||
Balance at Dec. 31, 2021 | 1,539 | ||||
Balance (Successors) at Dec. 31, 2021 | $ 1,539 | $ 1,555 | $ (40) | $ 24 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Net gains (losses) arising during the period, tax | $ 0 | $ (8) | $ (9) | $ (3) |
Reclassification adjustment for losses (gains) included in net earnings loss, net, tax | 0 | 8 | (4) | (3) |
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax | $ (5) | $ (33) | $ 4 | $ (13) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||||
Net (loss) earnings | $ (4) | $ (23) | $ (127) | $ 84 |
Adjustments to reconcile net (loss) earnings to cash flows (used for) provided from operating activities | ||||
Depreciation and amortization | 23 | 205 | 283 | 293 |
Deferred income taxes and tax uncertainties (NOTE 8) | (10) | (8) | (45) | (16) |
Impairment of long-lived assets (NOTE 14) | 9 | 137 | 58 | |
Impairment of inventory (NOTE 14) | 31 | 6 | ||
Net gains on disposals of property, plant and equipment | (3) | (1) | ||
Net loss on disposition of discontinued operations (NOTE 3) | 33 | 45 | ||
Stock-based compensation expense | 28 | 8 | 9 | |
Equity method investment loss, net of taxes | 3 | 2 | ||
Make-whole premium on repayment of long-term debt (NOTE 17) | 11 | |||
Other | 4 | 8 | 4 | |
Changes in assets and liabilities, excluding the effect of acquisitions and sale of businesses | ||||
Receivables | 45 | (163) | 99 | 96 |
Inventories | (19) | (4) | 7 | (22) |
Prepaid expenses | 4 | 7 | 11 | 2 |
Trade and other payables | (126) | 118 | (57) | (67) |
Income and other taxes | (17) | 5 | 13 | (43) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (2) | (17) | (4) | 29 |
Other assets and other liabilities | 4 | 11 | ||
Cash flows (used for) provided from operating activities | (102) | 206 | 411 | 442 |
Investing activities | ||||
Additions to property, plant and equipment | (41) | (268) | (175) | (255) |
Proceeds from disposals of property, plant and equipment | 4 | 3 | 1 | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | |||
Acquisition of businesses (NOTE 4) | (2,796) | (30) | ||
Cash flows (used for) provided from investing activities | (2,837) | 633 | (202) | (254) |
Financing activities | ||||
Dividend payments | (51) | (110) | ||
Stock repurchase | (238) | (59) | (219) | |
Issuance of common shares | 1,555 | |||
Net change in bank indebtedness | (10) | 9 | ||
Change in revolving credit facility | 115 | (80) | 80 | |
Proceeds from receivables securitization facility | 25 | 205 | ||
Repayments of receivables securitization facility | (80) | (200) | ||
Issuance of long-term debt, net of debt issue costs | 1,252 | 300 | ||
Repayments of long-term debt, including make-whole premium | (606) | (7) | (1) | |
Other | (1) | (3) | (1) | |
Cash flows provided from (used for) financing activities | 2,922 | (845) | 35 | (237) |
Net (decrease) increase in cash and cash equivalents | (17) | (6) | 244 | (49) |
Impact of foreign exchange on cash | 4 | (1) | ||
Cash, cash equivalents and restricted cash at beginning of period | 303 | 309 | 61 | 111 |
Cash, cash equivalents and restricted cash at end of period | 286 | 303 | 309 | 61 |
Supplemental cash flow information | ||||
Interest (including $11 million of make-whole premium in 2021) | 53 | 52 | 46 | |
Income taxes | $ 17 | $ 22 | $ (22) | $ 59 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Apr. 08, 2021 | Nov. 30, 2021 | Dec. 31, 2021 |
Statement Of Cash Flows [Abstract] | |||
Make-whole premium | $ 11 | $ 11 | $ 11 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 high quality airlaid and ultrathin laminated cores. 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, impairment of intangibles and goodwill, 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. On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding common shares of Domtar Corporation (the “Company”) by means of a merger of Pearl Merger Sub (a wholly-owned subsidiary) with and into the Company (the “Merger”) For purposes of the Company’s financial statement presentation, Pearl Merger Sub was determined to be the accounting acquirer in the Merger which was accounted for using the acquisition method of accounting. The application of the acquisition method of accounting resulted in a new basis of accounting basis of the Company’s assets and liabilities which are measured at fair value as of the date of the Merger. The Company’s consolidated financial statements for the period following the closing of the Merger are labeled “Successor” and reflect the Company’s assets and liabilities at their fair values. All periods prior to the closing of the Merger reflect the historical accounting basis of the Company’s assets and liabilities and are labeled “Predecessor.” The consolidated financial statements and related notes include a black line division between the columns titled "Predecessor" and "Successor" to signify that the amounts shown for the periods prior to and following the Merger are not comparable. As a condition to obtain the approval of the Merger from the Canadian Competition Bureau, the Company was required to commit to the divestiture of its Kamloops, British Columbia production facility within a short period of time following the Merger. Certain reclassifications have been made to the prior years’ presentation to conform to the current year presentation. 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. BUSINESS COMBINATIONS The Company accounts for business combinations in accordance with ASC 805 “Business Combinations” which requires, among other things, the acquiring entity in a business combination to recognize the fair value of the assets acquired and liabilities assumed; the recognition of acquisition-related costs in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss); the recognition of restructuring costs in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at fair value on the acquisition date with subsequent adjustments recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Estimates of fair value require a complex series of judgments about future events and uncertainties. The estimates and assumptions used to determine the preliminary estimated fair value assigned to each class of assets and liabilities, as well as asset lives, have a material impact to the Company's consolidated financial statements, and are based upon assumptions believed to be reasonable but that are inherently uncertain. The Company generally uses third-party qualified consultants to assist management in determining the fair value of assets acquired and liabilities assumed. This includes, when necessary, assistance with the determination of lives and valuation of property and identifiable intangibles and assisting management in assessing off-market contracts and obligations associated with legal and environmental claims. The purchase price allocation process also entails the Company to refine these estimates over a measurement period not to exceed one year to reflect new information obtained surrounding facts and circumstances existing at acquisition date. The excess of the purchase price over the fair value of the identified assets acquired and liabilities assumed is recorded as goodwill. DISCONTINUED OPERATIONS The results of operations of the Kamloops, British Columbia production facility (the “Kamloops 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 Kamloops disposal group met the criteria to be classified as held for sale at the time of the Merger discussed above. The after-tax results of operations of the discontinued operations are reported as a separate component in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for all prior periods presented. The cash flows related to the Kamloops disposal group have not been segregated and are included in the Consolidated Statements of Cash Flows for all periods presented. The results of operations for the Personal Care business unit (the “Personal Care 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 Personal Care disposal group met the criteria to be classified as held for sale in the fourth quarter of 2020 and the disposal of the business unit represents a strategic shift that has 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. The cash flows related to the divested Personal Care business have not been segregated and are included in Consolidated Statements of Cash Flows for all periods presented. 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 income (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 21 “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 (benefit) expense or in Other comprehensive income in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax (benefit) expense 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 The Company establishes 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. The Company assigns internal credit ratings for all customers and determines the creditworthiness of each customer based upon publicly available information and information obtained directly from its customers. 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. 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. 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. Impairment of right-of-use assets are determined and calculated in the same manner as disclosed under impairment of property, plant and equipment. 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. DEFINITE-LIVED INTANGIBLE ASSETS 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, trade names, technology as well as non-compete agreements, which are generally being amortized using the straight-line method over their respective estimated useful lives. Based on guidance provided in ASC 350, the customer relationships are amortized in a manner that reflects the pattern in which the economic benefits of the intangible asset are consumed. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of property, plant and equipment. Amortization is based on the following preliminary useful lives: Useful life Water rights 40 years Customer relationships Up to 15 years Trade Names Up to 20 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 Prior to the Merger date, Domtar recognized 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 liabilities. The Company awards were 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 have been 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 was 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 was transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vested pro rata on the first three anniversaries of the grant and had a seven-year At the Merger date, all the Company’s outstanding stock-based awards, whether vested or unvested, were cancelled and converted into the right to receive cash payment. 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. 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 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 11 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, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS FUTURE ACCOUNTING CHANGES TRANSITION AWAY FROM INTERBANK OFFERED RATES On March 12, 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): 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. As of December 31, 2021, the Company has not yet elected any optional expedients provided in the standard. The Company will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. 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, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS Mandated sale of Kamloops, British Columbia mill On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding shares of Domtar Corporation. The acquisition was subject to the review by the Canadian Competition Bureau, which outlined certain stipulations in a consent agreement before providing their final approval. The consent agreement filed by the Canadian Commissioner of Competition (“Commissioner”) with the Competition Tribunal fulfilled the final condition to the closing of the business combination. According to the consent agreement, following the closing of the business combination, Domtar’s pulp mill in Kamloops, British Columbia must be sold in order to resolve the Commissioner’s concerns about the business combination’s implications on the purchase of wood fiber from the Thompson/Okanagan region in British Columbia. The mill will be sold to an independent purchaser to be approved by the Commissioner. The results of operations of Domtar’s pulp mill in Kamloops, British Columbia were reclassified to discontinued operations. These results have been summarized in Earnings 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. Sale of Personal Care business On March 1, 2021, Domtar completed the sale of the Company’s Personal Care business to American Industrial Partners (“AIP”) for a purchase price of $920 million in cash, including elements of working capital of $130 million. Domtar received a net amount of $897 million, which represents the selling price minus the settlements of the net indebtedness and other elements of working capital adjustments. In connection with the sale, the Company entered into Transition Services Agreements with AIP pursuant to which the Company agreed to provide various back-office and information technology support until the business is fully separated from Domtar. The results of operations of the Company’s Personal Care business were reclassified to discontinued operations. These results have been summarized in Earnings 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 from discontinued operations: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Sales 18 446 1,232 1,170 Operating expenses Cost of sales, excluding depreciation and amortization 16 323 932 892 Depreciation and amortization — 23 75 77 Selling, general and administrative — 26 142 145 Impairment of long-lived assets — — 1 26 Closure and restructuring costs — 1 — 20 Other operating loss, net — 1 2 1 16 374 1,152 1,161 Operating income 2 72 80 9 Net loss on disposition of discontinued operations — 33 45 — Earnings from discontinued operations before income taxes 2 39 35 9 Income tax expense (benefit) 1 13 11 (9 ) Net earnings from discontinued operations 1 26 24 18 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: Successor Predecessor At December 31, December 31, 2021 2020 $ $ Assets Receivables 50 135 Inventories 82 206 Prepaid expenses — 3 Income and other taxes receivable — 3 Property, plant and equipment, net 155 454 Operating lease right-of-use assets — 15 Intangible assets, net (2) — 554 Other assets — 2 Total assets 287 1,372 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) 287 1,329 Liabilities Trade and other payables 26 155 Income and other taxes payable — 12 Operating lease liabilities due within one year — 8 Long-term debt due within one year 1 1 Long-term debt 4 6 Operating lease liabilities — 8 Deferred income taxes and other 27 143 Other liabilities and deferred credits 5 12 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 63 345 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheet at December 31, 2021. (2) Intangible assets, net at December 31, 2020 are comprised of $290 million ($248 million of trade names and $42 million of catalog rights) of indefinite-lived assets and $264 million of definite-lived assets. Cash Flows from Discontinued Operations: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Cash flows from operating activities 3 57 130 164 Cash flows used for investing activities (1 ) (14 ) (40 ) (57 ) |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition of Business | NOTE 4. ACQUISITION OF BUSINESSES Acquisition of Domtar Corporation by Paper Excellence On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding common shares of Domtar Corporation (the “Company”) by means of a merger of Pearl Merger Sub (a wholly-owned subsidiary) with and into the Company with the Company continuing as the surviving corporation and as a subsidiary of Paper Excellence (the “Merger”). On the terms and subject to the conditions set forth in the Merger Agreement, each share of outstanding common stock of the Company was converted into the right to receive $55.50 in cash. The acquisition-date fair value of the consideration transferred totaled $2.796 billion, less cash acquired of $332 million. Pearl Merger Sub was determined to be the accounting acquirer in the Merger which was accounted for using the acquisition method of accounting. The application of the acquisition method of accounting resulted in a new basis of accounting basis of the Company’s assets and liabilities which are measured at fair value at the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain tangible and intangible assets; thus, the provisional measurements of tangible and intangible assets, off-market contracts and deferred income tax assets are subject to change. Fair value of net assets acquired at the date of acquisition Receivables $ 501 Inventories 646 Prepaid expenses 49 Income and other taxes receivable 54 Property, plant and equipment 2,498 Intangible assets 207 Customer relationships 170 Trade names 30 Water rights 7 Operating lease right-of-use assets 51 Other assets 252 Assets held for sale 290 Total assets 4,548 Less: Assumed Liabilities Trade and other payables 667 Income and other taxes payable 16 Operating lease liabilities (including short-term portion) 57 Long-term debt (including short-term portion) 529 Deferred income tax liabilities 529 Other liabilities and deferred credits 221 Liabilities held for sale 65 Total liabilities 2,084 Fair value of net assets acquired at the date of acquisition 2,464 The preliminary estimated fair value assigned to identifiable intangible assets acquired are determined primarily by using an income approach using a discounted cash flow methodology, which is based on assumptions and estimates made by management. The preliminary estimated fair value of the customer relationship intangible assets was estimated using the multi-period excess earnings method. Management applied significant judgement related to this fair value method, which included the selection of an expected EBITDA margin assumption for the forecast period, contributory asset charges, customer attrition rate and market-participant discount rate assumptions. These significant assumptions are based on company specific information and projections, which are not observable in the market (except for the discount rate assumption) and, therefore, are considered Level 2 and Level 3 measurements. These significant assumptions are forward-looking and could be affected by future changes in economic and market conditions. The preliminary estimated fair value of property, plant and equipment was primarily determined based on management’s preliminary estimate of depreciated replacement cost as further adjusted based on estimated cash flow forecasts. The significant assumptions underlying the fair value are based on company specific information and projections, which are not observable in the market and, therefore, are considered Level 2 and Level 3 measurements. These significant assumptions are forward-looking and could be affected by future changes in economic and market conditions. The preliminary estimated fair value of finished goods was calculated as the estimated selling price, adjusted for costs of the selling effort and a reasonable profit allowance relating to the selling effort. The preliminary estimated fair value of work in process inventory was primarily calculated as the estimated selling price, adjusted for estimated costs to complete the manufacturing, estimated costs of the selling effort, as well as a reasonable profit margin on the remaining manufacturing and selling effort. The preliminary estimated fair value of raw materials and operating and maintenance supplies was determined to approximate the historical carrying value. These significant assumptions are based on company specific information and projections, which are not observable in the market and, therefore, are considered Level 2 and Level 3 measurements. These significant assumptions are forward-looking and could be affected by future changes in economic and market conditions. The Company recognized $132 million of acquisition related costs that were expensed in the predecessor period. These costs are included in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) in the line item entitled Transaction costs. The Predecessor period includes the historical financial information of Pearl Merger Sub prior to the business combination, which is limited to immaterial amounts of interest and merger-related transactions costs. The businesses, and thus the financial results of the Successor and Predecessor entities, are virtually the same, excluding the impact on certain financial statement line items that were impacted by the Merger mainly: • Depreciation and amortization on fair value increments relating to Property, plant and equipment and fair values ascribed to identified intangible assets; • Interest expense and amortization of debt issuance costs relating to additional long-term debt raised by Pearl Merger Sub to effect the Merger; • Merger-related transaction costs; and, • Current and deferred income tax impacts of the above. 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, and was finalized during 2020. 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, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Acquisition of Domtar Corporation by Paper Excellence Pursuant to the terms of the Omnibus Plan, as a result of the acquisition by Paper Excellence, on the Merger date, the Company recognized an accelerated vesting on all the outstanding stock-based awards under the Omnibus Plan. These awards were then cancelled and converted into the right to receive cash payment, which was made in December 2021. In turn, the Omnibus Plan was terminated and is expected to be replaced in 2022 by a new long-term incentive program. For the year ended December 31, 2021, stock-based compensation expense recognized in the predecessor Company’s results from continuing and discontinued operations was $46 million (2020 – $7 million; 2019 – $22 million), of which $34 million, related to the accelerated vesting of stock-based awards, was recorded under Transaction costs in the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 6. PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans. The pension expense under these plans is equal to the Company’s contribution. For the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, the related pension expense was $3 million and $30 million, respectively (2020 – $37 million; 2019 – $37 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 $8 million in 2022 compared to $17 million in 2021 (2020 – $15 million; 2019 – $17 million) to the pension plans. The Company expects to contribute a minimum total amount of $5 million in 2022 compared to $4 million in 2021 (2020 – $4 million; 2019 – $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, 2021 and December 31, 2020, the measurement date for each year: Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,566 67 1,425 63 Service cost for the year 28 1 29 1 Interest expense 34 2 39 2 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (104 ) (6 ) 127 2 Plan amendments 6 — 2 — Benefits paid (65 ) (1 ) (67 ) — Direct benefit payments (9 ) (3 ) (3 ) (4 ) Acquisition of business — — — 1 Curtailment (1) — — (1 ) — Settlement (2) (35 ) — (15 ) — Effect of foreign currency exchange rate change 6 — 24 2 Projected benefit obligation at end of year 1,433 60 1,566 67 During 2021, net actuarial gains decreased the projected benefit obligation due to the increase in discount rates. During 2020, 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, 2021 and 2020 was $1,386 million and $1,516 million, respectively. CHANGE IN FAIR VALUE OF ASSETS The following table represents the change in the fair value of assets, as of December 31, 2021 and December 31, 2020, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: Successor Predecessor December 31, 2021 December 31, 2020 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,594 1,465 Actual return on plan assets 106 166 Employer contributions 17 15 Plan participants' contributions 6 6 Benefits paid (74 ) (70 ) Settlement (2) (35 ) (15 ) Effect of foreign currency exchange rate change 8 27 Fair value of assets at end of year 1,622 1,594 (1) Curtailment accounting was triggered following the restructuring activities that occurred in 2020. The impact was estimated as of July 31, 2020, based on the information known at that time and was remeasured on December 31, 2020. (2) Settlement accounting was triggered as of December 31, 2020, following the restructuring activities that occurred in 2020, to reflect lump sums paid in 2020 in excess of the sum of service cost and interest cost. Settlement accounting was triggered throughout 2021 as lump sums paid have exceeded the sum of service cost and interest cost. 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 2021: Successor Predecessor Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2021 2020 Fixed income Cash and cash equivalents 0% – 10% 8 % 2 % Bonds 26% – 56% 40 % 42 % Insurance contracts 10% 10 % 11 % Equity Canadian Equity 0% – 10% 6 % 6 % U.S. Equity 6% – 15% 12 % 15 % International Equity 11% – 24% 19 % 24 % Alternate Investments Real Estate 0% – 13% 5 % 0 % Multi Asset Credit 0% – 10% 0 % 0 % Infrastructure 0% – 9% 0 % 0 % Total (1) 100 % 100 % ( 1 ) Approximately 73% of the pension plans' assets relate to Canadian plans, 27% 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. Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,433 ) (60 ) (1,566 ) (67 ) Fair value of assets at end of year 1,622 — 1,594 — Funded status 189 (60 ) 28 (67 ) Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables — (5 ) — (5 ) Other liabilities and deferred credits (59 ) (55 ) (124 ) (62 ) Other assets 248 — 152 — Net amount recognized in the Consolidated Balance Sheets 189 (60 ) 28 (67 ) The following table presents the pre-tax amounts included in Other comprehensive income (loss): Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 Other post- Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ $ $ Prior service (cost) credit — — (6 ) 1 (2 ) — — — Amortization of prior year service cost (credit) — — 1 (1 ) 2 (1 ) 5 (1 ) Net gain (loss) 22 (1 ) 121 7 (26 ) (1 ) 3 1 Amortization of net actuarial loss (gain) (1) — — 7 (1 ) 12 (1 ) 40 (1 ) Net amount recognized in other comprehensive income (loss) (pre-tax) 22 (1 ) 123 6 (14 ) (3 ) 48 (1 ) (1) In 2021, the non-cash settlement was nil (2020 – $2 million; 2019 – $30 million). At December 31, 2021, 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 $318 million and $259 million, respectively (2020 – $917 million and $793 million, respectively). Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for pension plans 2021 2021 2020 2019 $ $ $ $ Service cost for the year 2 25 28 28 Interest expense 3 31 39 57 Expected return on plan assets (5 ) (61 ) (68 ) (79 ) Amortization of net actuarial loss — 7 10 10 Curtailment loss — — 2 — Settlement loss — — 2 30 Amortization of prior year service cost — 1 2 5 Net periodic benefit cost — 3 15 51 Successor Predecessor Components of net periodic benefit cost for other post-retirement Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, benefit plans 2021 2021 2020 2019 $ $ $ $ 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 ) (1 ) Net periodic benefit cost — 1 1 1 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. Successor Predecessor December 31, November 30, December 31, December 31, Pension plans 2021 2021 2020 2019 Projected benefit obligation Discount rate 3.0 % N/A 2.5 % 3.1 % Rate of compensation increase 2.7 % N/A 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.0 % 2.5 % 3.0 % 3.8 % Rate of compensation increase 2.8 % 2.7 % 2.8 % 2.6 % Expected long-term rate of return on plan assets 4.3 % 4.3 % 4.6 % 5.2 % A weighted-average interest-crediting rate of 3.3% was assumed for 2021, 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 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 2.7% (Successor) and 2.5% (Predecessor) 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, 2022, the Company will use 4.8% (2021 – 4.4%; 2020 – 4.8%) 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, bonds and various alternative investment asset classes) 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. Successor Predecessor December 31, November 30, December 31, December 31, Other post-retirement benefit plans 2021 2021 2020 2019 Projected benefit obligation Discount rate 3.1 % N/A 2.5 % 3.1 % Rate of compensation increase 2.9 % N/A 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.2 % 2.3 % 3.0 % 3.7 % Rate of compensation increase 2.8 % 2.6 % 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 2021. 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, 2021, by asset category: Successor Fair Value Measurements at December 31, 2021 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 145 19 126 — Canadian provincial government bonds 380 377 3 — Canadian corporate debt securities 70 52 18 — U.S. corporate debt securities 28 28 — — International corporate debt securities 8 8 — — Bond fund (1 & 2) 157 — 157 — Canadian equities (3) 90 90 — — U.S. equities (4) 94 94 — — International equities (5) 211 211 — — U.S. stock index funds (2 & 6) 196 — 196 — U.S. private real estate funds (7) 77 — 77 Insurance contracts (8) 165 — — 165 Derivative contracts (9) 1 — 1 — Total 1,622 879 501 242 (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 two U.S. actively managed private real estate funds (Core and Core Plus) that are benchmarked to the NCREIF ODCE. ( 8 ) 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. ( 9 ) 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, 2020, by asset category: Predecessor Fair Value Measurements at December 31, 2020 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 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 changes during the period for Level 3 fair value measurements of plan assets: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) $ 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 Purchases 70 Settlements (14 ) Return on plan assets 9 Effect of foreign currency exchange rate change 1 Balance at December 31, 2021 242 ESTIMATED FUTURE BENEFIT PAYMENTS FROM THE PLANS Estimated future benefit payments from the plans for the next 10 years at December 31, 2021 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2022 85 5 2023 84 5 2024 86 4 2025 87 4 2026 87 4 2027 – 2031 418 20 |
Interest Expense, Net
Interest Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Banking And Thrift Interest [Abstract] | |
Interest Expense, Net | NOTE 7. INTEREST EXPENSE, NET The following table presents the components of interest expense, net: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Interest on long-term debt (1) 9 36 52 45 Make-whole premium on repayment of long-term debt — 11 — — Interest on receivables securitization — 1 1 2 Interest on withdrawal liabilities for multiemployer plans — 2 3 3 Amortization of debt issuance costs and other 1 4 2 2 10 54 58 52 (1) The Company capitalized $1 million and $8 million of interest expense for the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, respectively (2020 – $3 million; 2019 – $3 million). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. INCOME TAXES The Company’s (loss) earnings before income taxes by taxing jurisdiction were: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. (loss) earnings (4 ) (7 ) (199 ) 80 Foreign (loss) earnings (3 ) (36 ) (29 ) (1 ) (Loss) earnings before income taxes (7 ) (43 ) (228 ) 79 Provisions for income taxes include the following: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. Federal and State: Current 5 29 (21 ) 19 Deferred (6 ) (13 ) (45 ) (6 ) Foreign: Current 4 (23 ) (11 ) 1 Deferred (5 ) 13 (3 ) (3 ) Income tax (benefit) expense (2 ) 6 (80 ) 11 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: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. federal statutory income tax (1 ) (9 ) (48 ) 17 Reconciling Items: State and local income taxes, net of federal income tax benefit — 4 (6 ) 4 Foreign income tax rate differential — (3 ) (2 ) 1 Tax credits and special deductions (1 ) (9 ) (17 ) (18 ) U.S. tax rate benefit from loss carryback — 1 (5 ) — Tax rate changes — (1 ) — (4 ) Deemed mandatory repatriation tax — — — — Uncertain tax positions — (1 ) (4 ) (3 ) Deferred taxes on Personal Care Group Investment — 1 (51 ) — Deferred taxes on foreign earnings — 2 (1 ) 2 Intercompany income with assets held for sale — — 3 3 Net book value adjustment of assets held for sale — — 5 — Valuation allowance on deferred tax assets — 1 47 5 Nondeductible expenses — 17 1 3 Global intangible low-taxed income (GILTI) — 3 — — Foreign-derived intangible income (FDII) — (1 ) — — Other — 1 (2 ) 1 Income tax (benefit) expense (2 ) 6 (80 ) 11 On November 30, 2021, Domtar Corporation was acquired by Paper Excellence and incurred significant costs to complete the transaction as well as significant executive compensation as a result of the change in control. Certain of these transaction costs and executive compensation expenses are not deductible for tax purposes and substantially impact the effective tax rate. The tax impact of these amounts in the Predecessor period is included in the Nondeductible Expenses in the above table. During the Predecessor Period ending November 30, 2021, the Company recorded $3 million of tax expense related to Global Intangible Low-Tax Income (GILTI). GILTI is an additional U.S. tax on certain income earned by foreign subsidiaries. Additionally, the Company recorded $9 million of tax credits during the 2021 Predecessor Period, mainly research and experimentation credits, which significantly impacts the effective tax rate. During the Successor Period, the Company recorded $1 million of tax credits, mainly research and experimentation credits. On January 7, 2021, the Company reached an agreement with AIP to sell the Personal Care business. As such, for the December 31, 2020 reporting period, the Company was no longer indefinitely reinvested in that business and classified its investment in that business as held for sale. Accordingly, a deferred tax asset of $51 million was recorded for the difference between the net book value of the business and the tax basis of that business. The Company accounted 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 assessed the value of the deferred tax asset related to the basis difference described above, which is shown as a capital loss for tax purposes and determined that the Company will not realize the full benefit from the asset. As such, the Company recorded a valuation allowance of $44 million associated with this deferred tax asset. During 2020, the Company also analyzed its existing Arkansas research and development credits and recorded an additional valuation allowance of $3 million 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 were carried forward and were utilized in the predecessor period. 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 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). The Company recorded $18 million of tax credits in 2019, 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. 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, 2021 and December 31, 2020 are comprised of the following: Successor Predecessor December 31, December 31, 2021 2020 $ $ Accounting provisions 36 30 Net operating loss carryforwards and other deductions 48 56 Pension and other employee future benefit plans — 18 Inventory — 11 Tax credits 30 41 Other 19 12 Gross deferred tax assets 133 168 Valuation allowance (58 ) (64 ) Net deferred tax assets 75 104 Property, plant and equipment (458 ) (352 ) Intangible assets (51 ) (6 ) Pension and other employee future benefit plans (23 ) — Inventory (10 ) — Outside basis difference (12 ) Other (24 ) (31 ) Total deferred tax liabilities (578 ) (389 ) Net deferred tax liabilities (503 ) (285 ) Included in: Deferred income taxes and other (503 ) (285 ) Total (503 ) (285 ) On November 30, 2021, the Company was acquired by Paper Excellence and under the acquisition method of accounting the Company’s assets and liabilities adjusted to fair value as of the date of the Merger. The Company has provided for deferred taxes for these adjustments as necessary. Additionally, as a condition to obtain the approval of the Merger from the Canadian Competition Bureau, the Company was required to commit to the divestiture of its Kamloops, British Columbia production facility and is accounting for these operations as Assets Held for Sale. Accordingly, the Company has provided for deferred taxes on the outside basis difference that is expected to be realized when these operations are sold. This was also recorded through acquisition accounting. At December 31, 2021, the Company had no federal net operating loss carryforwards, however, the Company recorded a capital loss on the sale of the Personal Care Division in 2021 of $185 million (representing a deferred tax asset of $43 million). The Company also had other foreign net operating losses of $16 million at December 31, 2021, of which $12 million expires in 2042 and the rest are 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 ($15 million valuation allowance) • Capital loss ($43 million valuation allowance) In 2021, the valuation allowance unfavorably impacted tax expense and the effective tax rate by $1 million (2020 – $47 million and 2019 – $5 million). As of December 31, 2021, the Company recorded a deferred tax liability of $13 million ($11 million for 2020) 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 Kamloops, British Columbia production facility, which is being shown as held for sale, the Company did 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, 2021, the Company had gross unrecognized tax benefits of approximately $22 million ($23 million and $28 million for 2020 and 2019, respectively). If recognized in 2021, 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, 2021 2020 2019 $ $ $ Balance at beginning of year 23 28 28 Additions based on tax positions related to current year 2 1 3 Additions for tax positions of prior years — 1 2 Expirations of statutes of limitations (4 ) (7 ) (6 ) Interest 1 — 1 Balance at end of year 22 23 28 The Company recorded $1 million of accrued interest associated with unrecognized tax benefits for the period ending December 31, 2021 (less than $1 million for 2020 and $1 million for 2019). 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, 2022. 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 2021 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, 2021, the Company’s subsidiaries are subject to foreign federal income tax examinations for the tax years 2013 through 2020, with federal years prior to 2018 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, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 9. INVENTORIES The following table presents the components of inventories: Successor Predecessor December 31, December 31, 2021 2020 $ $ Work in process and finished goods 359 286 Raw materials 110 91 Operating and maintenance supplies 194 185 663 562 Certain domestic raw materials, in process and finished goods inventories are valued based on the LIFO method. LIFO inventories were $213 million and $220 million at December 31, 2021 and 2020, respectively. If inventories valued under the LIFO basis had been valued using the FIFO method, inventories would have been $1 million lower than reported as of December 31, 2021 and $52 million greater at December 31, 2020. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 10. PROPERTY, PLANT AND EQUIPMENT The following table presents the components of property, plant and equipment: Successor Predecessor Range of useful lives December 31, December 31, (in years) 2021 2020 $ $ Machinery and equipment 3 – 20 1,894 7,147 Buildings and improvements 10 – 40 199 888 Timberlands (1) 142 192 Assets under construction — 311 82 2,546 8,309 Less: Accumulated depreciation (22 ) (6,389 ) 2,524 1,920 (1) Amortization is calculated using the unit of production method. Depreciation expense related to property, plant and equipment for the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021 was $22 million and $181 million, respectively (2020 – $207 million; 2019 – $215 million). |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 11. 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 11 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: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Operating lease expense 4 17 22 21 Supplemental cash flow information related to leases was as follows: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4 20 23 21 Operating cash flows from finance leases — — 1 1 Financing cash flows from finance leases — 1 1 1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases — 3 12 24 Finance leases — — — — Supplemental balance sheet information related to leases was as follows: Successor Predecessor December 31, December 31, 2021 2020 $ $ Operating leases Operating lease right-of-use assets 48 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 36 50 55 70 Finance leases Property, plant and equipment 5 4 Accumulated depreciation (2 ) (2 ) 3 2 Long-term debt due within one year 1 1 Long-term debt 3 4 4 5 Weighted-average remaining lease term Operating leases 4.3 years 4.7 years Finance leases 6.8 years 7.9 years Weighted-average discount rate Operating leases 3.2 % 4.4 % Finance leases 4.8 % 8.4 % Maturities of lease liabilities at December 31, 2021 were as follows: Operating leases $ 2022 17 2023 16 2024 12 2025 6 2026 3 Thereafter 5 Total lease payments 59 Less: Imputed interest 4 Total lease liabilities 55 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 12. INTANGIBLE ASSETS The following table presents the components of intangible assets: Successor Predecessor Preliminary useful lives December 31, December 31, (in years) 2021 2020 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 7 — 7 3 (1 ) 2 Customer relationships Up to 15 171 (1 ) 170 24 (10 ) 14 Trade Names Up to 20 30 — 30 — — — Technology 7 – 20 — — — 8 (5 ) 3 Non-Compete 9 — — — 1 (1 ) — 208 (1 ) 207 36 (17 ) 19 Indefinite-lived intangible assets not subject to amortization Water rights — — — 4 — 4 License rights — — — 6 — 6 Total 208 (1 ) 207 46 (17 ) 29 Amortization expense related to intangible assets for the 1 month ended December 31, 2021 and 11 months ended November 30, 2021 was $1 million and $1 million, respectively ($1 million in 2020 and 2019, respectively). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2022 2023 2024 2025 2026 $ $ $ $ $ Amortization expense related to intangible assets 13 13 13 13 13 The Company performed its annual impairment test on its indefinite-lived intangible assets at October 1, 2021, 2020 and 2019, 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 2021, 2020 or 2019. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 13. OTHER ASSETS The following table presents the components of other assets: Successor Predecessor December 31, December 31, 2021 2020 $ $ Pension asset - defined benefit pension plans 248 152 Other 25 37 273 189 |
Closure and Restructuring Costs
Closure and Restructuring Costs and Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Impairment of Long-Lived Assets | NOTE 14. CLOSURE AND RESTRUCTURING COSTS AND IMPAIRMENT OF LONG-LIVED ASSETS Cost reduction program The Company implemented a cost savings program. As part of this program, in August 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. Additionally, in May 2021, the Company announced the closure of the converting center in Dallas, Texas. These actions reduced the Company’s annual uncoated freesheet paper capacity by approximately employees. the Company recorded nil and $ 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 $99 million of closure costs, largely related to severance costs, inventory write downs and environmental liabilities, under Closure and restructuring costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Conversion of Kingsport, Tennessee mill The Company plans to enter the linerboard market with the conversion of the Kingsport paper machine. Once in full operation, the mill will produce and market approximately 600,000 tons annually of high-quality recycled linerboard and medium, providing the Company with a strategic footprint in a growing adjacent market. The conversion is expected to be completed by the end of 2022. The Company estimates the capitalized conversion cost to be approximately $350 million. For the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, the Company recorded $3 million and $27 million, respectively, under Asset conversion 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 $22 million of closure costs, largely related to severance costs, under Closure and restructuring costs. The following table provides the activity in the closure and restructuring and transaction costs liability: December 31, December 31, 2021 2020 $ $ Balance at beginning of year 28 12 Additions 21 48 Payments (28 ) (32 ) Balance at end of year (1) 21 28 (1) At December 31, 2021, $12 million is shown in Trade and other payables and $9 million is shown in Other liabilities and deferred credits. The $21 million provision is comprised of severance and termination costs of $2 million related to the Pulp and Paper business, as well as transaction costs of $6 million and license fees and other costs of $13 million related to Corporate. Closure and restructuring costs are based on management’s best estimates at December 31, 2021. 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, 2021 | |
Payables And Accruals [Abstract] | |
Trade and Other Payables | NOTE 15. TRADE AND OTHER PAYABLES The following table presents the components of trade and other payables: Successor Predecessor December 31, December 31, 2021 2020 $ $ Trade payables 297 242 Payroll-related accruals 131 98 Other accruals 115 116 543 456 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 16. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following table presents the changes in Accumulated other comprehensive income (loss) by component (1) Net derivative gains (losses) on cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total Predecessor $ $ $ $ $ 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 ) Natural gas swap contracts 22 N/A N/A N/A 22 Foreign exchange forward contracts 2 N/A N/A N/A 2 Net gain N/A 85 5 N/A 90 Foreign currency items N/A N/A N/A 57 57 Other comprehensive income before reclassifications 24 85 5 57 171 Amounts reclassified from Accumulated other comprehensive loss (31 ) 10 (1 ) — (22 ) Net current period other comprehensive (loss) income (7 ) 95 4 57 149 Balance at November 30, 2021 27 (112 ) 12 (82 ) (155 ) Elimination of Predecessor's Accumulated other comprehensive loss (27 ) 112 (12 ) 82 155 Balance at November 30, 2021 — — — — — Net derivative gains (losses) on cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total Successor $ $ $ $ $ Balance at November 30, 2021 — — — — — Natural gas swap contracts (3 ) N/A N/A N/A (3 ) Foreign exchange forward contracts 3 N/A N/A N/A 3 Net gain (loss) N/A 17 (1 ) N/A 16 Foreign currency items N/A N/A N/A 8 8 Other comprehensive income (loss) before reclassifications — 17 (1 ) 8 24 Amounts reclassified from Accumulated other comprehensive income — — — — — Net current period other comprehensive income (loss) — 17 (1 ) 8 24 Balance at December 31, 2021 — 17 (1 ) 8 24 (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 income (loss): Details about Accumulated other comprehensive income (loss) components Amounts reclassified from Accumulated other comprehensive income (loss) Successor Predecessor Period from December 1, through December 31, 2021 Period from January 1, through November 30, 2021 Year ended December 31, 2020 Year ended December 31, 2019 $ $ $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) — 10 (10 ) (4 ) Currency options and forwards (1) — 38 (6 ) (7 ) Net investment hedge (2) — (9 ) — — Total before tax — 39 (16 ) (11 ) Tax (expense) benefit — (8 ) 4 3 Net of tax — 31 (12 ) (8 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3)(4) — (7 ) (12 ) (40 ) Amortization of prior year service cost (3) — (1 ) (2 ) (5 ) Discontinued operations — (4 ) — — Total before tax — (12 ) (14 ) (45 ) Tax benefit — 2 3 12 Net of tax — (10 ) (11 ) (33 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) — 1 1 1 Amortization of prior year service credit (3) — 1 1 1 Total before tax — 2 2 2 Tax expense — (1 ) — (1 ) Net of tax — 1 2 1 ( 1 ) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ( 2 ) This amount is included in Earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 6 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). ( 4 ) In 2021, the non-cash settlement was nil ( 2020 – 2019 – |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 17. LONG-TERM DEBT Successor Predecessor Par December 31, December 31, Maturity Amount Currency 2021 2020 $ $ $ Unsecured notes 4.4% Notes 2022 300 US — 300 6.25% Notes 2042 250 US 264 249 6.75% Notes 2044 250 US 262 250 Senior secured notes 6.75% Notes 2028 775 US 775 — ABL Revolving Credit Facility 2026 — US 115 — First Lien Term Loan 2028 525 US 520 — Term Loan 2025 — US — 294 Finance lease obligations 2021 - 2028 4 5 1,940 1,098 Less: Unamortized debt issuance costs 38 6 Less: Due within one year 259 13 1,643 1,079 Principal long-term debt repayments, including finance lease obligations, in each of the next five years will amount to: Long-term debt Finance leases $ $ 2022 373 1 2023 26 1 2024 26 1 2025 26 1 2026 141 1 Thereafter 1,323 1 1,915 6 Less: Amounts representing interest — 2 Total payments 1,915 4 4.4% UNSECURED NOTES On April 8, 2021, the Company redeemed the 4.4% Notes, originally due in 2022, at a redemption price of 100% of the principal amount of $300 million, plus accrued and unpaid interest, as well as a make-whole premium of $11 million. ABL REVOLVING CREDIT FACILITY On November 30, 2021, the Company entered into an ABL Revolving Credit Facility that matures on November 30, 2026. The ABL Revolving Credit Facility is available to Domtar Corporation and certain other domestic and Canadian subsidiaries and provides for revolving loans and letters of credit in an aggregate amount of up to $400 million, subject to borrowing base capacity. Borrowings under the ABL Revolving Credit Facility is limited by borrowing base calculations based on the sum of specified percentages of eligible accounts receivable, plus specified percentages of eligible inventory, plus specified percentages of qualified cash, minus the amount of any applicable reserves. Borrowings bear interest at a floating rate, which can be either an adjusted Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate plus an applicable margin. The Company’s obligations under the ABL Revolving Credit Facility are guaranteed by its immediate parent (a company with no assets other than Domtar shares) and its wholly-owned material U.S. subsidiaries and wholly-owned material Canadian subsidiaries. The ABL Revolving Credit Facility has a first-priority lien on the current assets of such U.S. and Canadian subsidiaries and second-priority lien on the fixed assets of its wholly-owned material U.S. subsidiaries, excluding principal properties (second in priority to the liens securing on First Lien Term Loan Facility (the “Term Loan Facility”) discussed below), in each case, subject to permitted liens. Borrowings under the ABL Revolving Credit Facility bear interest at LIBOR, EURIBOR, Canadian bankers' acceptance or prime rate, as applicable, plus a margin linked to the Company’s utilization of the credit. In addition, the Company pays facility fees quarterly at rates linked to its utilization of the credit. The Company does not anticipate a significant impact to its financial position from the planned phase out of LIBOR. The ABL Revolving Credit Facility contains customary covenants, including, but not limited to, restrictions on the Company’s ability and that of its subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness, enter into transactions with affiliates or change its line of business. The ABL Revolving Credit Facility requires the maintenance of a fixed charge coverage of 1.00 to 1.00 at the end of each fiscal quarter for the prior twelve month period when specified excess availability is less than the greater of $35 million and 10% of the lesser of the borrowing base and maximum borrowing capacity. This covenant did not apply at December 31, 2021. FIRST LIEN TERM LOAN FACILITY On November 30, 2021, the Company entered into a Term Loan Facility maturing November 30, 2028, of which $525 million was immediately drawn and up to $250 million was available on a delayed draw basis (the “Delayed Draw Term Loan”) to fund redemptions of the Existing Domtar Notes pursuant to the Domtar Notes Change of Control Offers that terminated on January 3, 2022. Borrowings under the Term Loan Facility amortize in equal quarterly installments in an amount equal to 1% per annum of the principal amount in 2022 and 5% per annum thereafter. The interest rate margin applicable to borrowings under the Term Loan Facility is, at the Company’s option, either (1) the base rate plus an applicable margin or (2) LIBOR plus an applicable margin. The Term Loan Facility is subject to a LIBOR floor of 0.75%. The Company is required to prepay the Term Loan Facility and Senior Secured Notes with 100% of the net cash proceeds of certain asset sales subject to certain reinvestment rights. The Company is required to prepay the Term Loan Facility with 100% of the net cash proceeds of certain debt issuances and 50% of excess cash flow in each case, subject to certain exceptions. The Company’s obligations under the Term Loan Facility are guaranteed by its immediate parent (a company with no assets other than Domtar shares) and all of the Issuer’s direct and indirect wholly-owned material U.S. subsidiaries. The Term Loan Facility has a first-priority lien on the fixed assets of its wholly-owned material U.S. subsidiaries’ fixed assets and a second-priority lien on the current asset collateral (second in priority to the liens securing the ABL Credit Facility discussed above), in each case, subject to other permitted liens. The Term Loan Facility contains customary negative covenants consistent with those applicable to the Notes, including, but not limited to, restrictions on the Company’s ability and that of its restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends or make other restricted payments, sell or otherwise transfer assets or enter into transactions with affiliates. On January 7, 2022, the Company utilized $127 million under the delayed draw term facility to fund a portion of the redemptions of the Existing Domtar Notes pursuant to the Domtar Notes Change of Control Offers that terminated on January 3, 2022. The remainder of the Delayed Draw Term Loan facility was cancelled, leaving total drawings under the Term Loan Facility of $652 million. SENIOR SECURED NOTES Pearl Merger Sub Inc., a newly formed, wholly-owned subsidiary of Pearl Excellence Holdco L. P., a Delaware limited partnership, was the initial issuer of the $775 million aggregate principal amount of 6.75% Senior Secured Notes due 2028 (the ‘‘Notes’’). This note issue was part of financing related to the acquisition of Domtar by Pearl Excellence Holdco L.P. Upon the completion of the acquisition, the initial issuer was merged with and into Domtar with Domtar surviving the Merger and becoming the obligor of the Notes. The Notes will mature on October 1, 2028 and interest on the Notes will be payable in cash semi-annually in arrears on April 1 and October 1 of each year, commencing on April 1, 2022. Pending completion of the Domtar Existing Notes Change of Control Offers that terminated on January 3, 2022, $250 million of the proceeds of the Note issue was set aside as restricted cash to fund approximately half of funds required to complete the Change of Control Offers. Such funds are reflected as restricted cash and included in Cash and cash equivalents on the Balance Sheet at December 31, 2021. Funds not utilized were to be used to redeem a portion of the Senior Secured Notes at a 100% price. The Company’s obligations under the Senior Secured Notes are guaranteed by its immediate parent and all of the Issuer’s direct and indirect wholly-owned material U.S. subsidiaries. The Senior Secured Notes will be secured by a lien on substantially all of the Issuer’s direct and indirect wholly-owned material U.S. subsidiaries’ fixed assets and a second-priority lien on the Current Asset Collateral (second in priority to the liens securing the ABL Credit Facility discussed above), in each case, subject to other permitted liens. The Senior Secured Notes contain customary negative covenants consistent with those applicable to the Notes, including, but not limited to, restrictions on the Company’s ability and that of its restricted subsidiaries to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, pay dividends or make other restricted payments, sell or otherwise transfer assets or enter into transactions with affiliates. On January 7, 2022, $133 million of the Senior Secured Notes were redeemed as a result of the Domtar Existing Notes Change of Control Offers that terminated on January 3, 2022, leaving $642 million of Notes outstanding. TERM LOAN O n 5, 2020, the Company entered into a $300 million Term Loan Agreement with a maturity date of May 5, 2025. The Company used borrowings under the Term Loan Agreement to repay other debt and to pay related fees and expenses. At December 31, 2020, the Company had $294 million of borrowings outstanding under the Term Loan Agreement. On March 11, 2021, the Company fully repaid its Term Loan Agreement, originally maturing on May 5, 2025, in the amount of $294 million and wrote-off $2 million of unamortized debt issuance costs related to this repayment. REVOLVING CREDIT FACILITY The Company had an unsecured $700 million revolving credit facility that was terminated on November 30, 2021. At December 31, 2020, the Company had no borrowings and $54 million of letters of credit outstanding under this facility. RECEIVABLES SECURITIZATION The Company had a $150 million receivables securitization facility that terminated in October 2021. At December 31, 2020, there were no borrowings and no letters of credit outstanding under this facility. For the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, a net charge of nil and $1 million, respectively (2020 – $1 million; 2019 – $2 million) resulted from the program described above and was included in Interest expense, net in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). EXISTING DOMTAR NOTES CHANGE OF CONTROL OFFERS Following the change of control of Domtar, Domtar was obligated, pursuant to the indenture governing the 6.25% Notes due 2042 and the 6.75% Notes due 2044 (“Existing Domtar Notes”), to make the Existing Domtar Notes Change of Control Offers, pursuant to which Domtar offered to repurchase all of the Existing Domtar Notes from holders at a purchase price of 101%. Up to $250 million under the Delayed Draw Term Loan and up to $250 million of proceeds of the issue of Notes was earmarked for the repurchase of the Existing Domtar Notes pursuant to the Existing Domtar Notes Change of Control Offers. Up to $250 million aggregate principal amount of the Senior Secured Notes was subject to special mandatory redemption to the extent proceeds were not used to fund the redemptions of the Existing Domtar Notes pursuant to the Existing Domtar Notes Change of Control Offers. On January 3, 2022, $134 million of the 6.25% Notes due 2042 and $100 million of the 6.75% Notes due 2044 were tendered pursuant to the offer. As a result, $116 million of the 6.25% Notes due 2042 and $150 million of the 6.75% Notes due 2044, remain outstanding post January 7, 2022, the payment date. |
Other Liabilities and Deferred
Other Liabilities and Deferred Credits | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities and Deferred Credits | NOTE 18. OTHER LIABILITIES AND DEFERRED CREDITS The following table presents the components of other liabilities and deferred credits: . Successor Predecessor December 31, December 31, 2021 2020 $ $ Liability - other post-retirement benefit plans 55 62 Pension liability - defined benefit pension plans 59 124 Pension liability - multiemployer plan withdrawal 38 40 Other 64 84 216 310 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 19. SHAREHOLDERS’ EQUITY Acquisition of Domtar Corporation by Paper Excellence On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding common shares of Domtar Corporation (the “Company”) by means of a merger of Pearl Merger Sub (a wholly-owned subsidiary) with and into the Company with the Company continuing as the surviving corporation and as a subsidiary of Paper Excellence (the “Merger”). On the terms and subject to the conditions set forth in the Merger Agreement, each share of the Company’s outstanding common stock was converted into the right to receive $55.50 in cash, upon which the shares were cancelled. COMMON STOCK At December 31, 2021, the Company has 100 common shares, par value of $0.01 per share. Prior to the acquisition, the Company was authorized to issue two billion shares of common stock, par value $0.01 per share. Holders of the Company’s common stock were 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, 2021 and December 31, 2020, were as follows: Successor Predecessor December 31, November 30, December 31, 2021 2021 2020 Number Number Number Common stock of shares $ of shares $ of shares $ Balance at beginning of period 50,379,090 1 55,194,538 1 56,880,910 1 Shares cancelled (50,379,090 ) (1 ) — — — — Shares issued Treasury stock (1) — — (4,815,448 ) — (1,686,372 ) — Common shares 100 — — — — — Balance at end of period 100 — 50,379,090 1 55,194,538 1 (1) During 2021, the Company repurchased 5,060,865, and issued 245,417 shares out of Treasury stock in conjunction with the exercise of stock-based compensation awards. 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. STOCK REPURCHASE PROGRAM During 2021, the Company repurchased a total of 5,060,865 shares at an average price of $46.96 for a total cost of $238 million. During 2020, the Company repurchased 1,798,306 shares at an average price of $33.05 for a total cost of $59 million. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 20. 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. For the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, the Company’s operating expenses for environmental matters amounted to $3 million and $37 million, respectively (2020 – $60 million; 2019 – $68 million). The Company made capital expenditures for environmental matters of $1 million and $4 million, respectively, during the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021 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 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, Domtar 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, 2021 2020 $ $ Balance at beginning of year 42 31 Additions and other changes 3 14 Environmental spending (4 ) (3 ) Balance at end of year (1) 41 42 (1) At December 31, 2021, $8 million is shown in Trade and other payables and $33 million is shown in Other liabilities and deferred credits. At December 31, 2021, anticipated undiscounted payments in each of the next five years are as follows: 2022 2023 2024 2025 2026 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 8 2 6 2 2 56 76 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, 2021, 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, 2021, were as follows: 2022 2023 2024 2025 2026 Thereafter Total $ $ $ $ $ $ $ Other commercial commitments 233 12 9 — — — 254 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, 2021 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. CLIMATE CHANGE AND AIR QUALITY REGULATIONS 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, vacated the ACE rule, sending it back to the EPA for further consideration. The court also rejected the embedded repeal of the Clean Power Plan, but the court stayed its mandate as to that part of its decision to avoid reinstating that now outdated Clean Power Plan. Four petitions of certiorari were filed with the United States Supreme Court seeking review of the D.C. Circuit’s decision, and the Supreme Court decided to hear the appeal. Oral argument is scheduled for February 28, 2022, and a decision is expected in the Summer of 2022. Regardless of the outcome of the petitions for certiorari and 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 gas (“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 Canadian Government has accepted Ontario’s program as an alternative to the federal program and the transition for Ontario facilities from the federal program to the Ontario program occurred on January 1, 2022. 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. The EPA had planned to issue the final rule in September 2021, but the final rule has been delayed. 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, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 21. DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices and interest rates. To the extent the Company decides to manage the volatility related to these exposures, the Company may enter into various financial derivatives that are accounted for under the derivatives and hedging guidance. These transactions are governed by the Company's hedging policies which provide direction on acceptable hedging activities, including instrument type and acceptable counterparty exposure. Upon inception, the Company formally documents the relationship between hedging instruments and hedged items. At inception and quarterly thereafter, the Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the cash flow or the fair value of the underlying exposures. The 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, 2021, two customers located in the U.S. represented 28% or $130 million, of the Company’s receivables (December 31, 2020 – two customers located in the U.S. represented 29% or $104 million). 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, 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 was exposed to changes in share prices with regard to its stock-based compensation program. The Company managed 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 which was settled on November 30, 2021. 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 income (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 24 months. As of December 31, 2021, the Company hedged 27% and 10% of its forecasted purchases under derivative contracts for 2022 and 2023, respectively. The natural gas derivative contracts were effective as of December 31, 2021. 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 foreign currency exchange rates 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 19 months. Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive income (loss) to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. As of December 31, 2021, the Company hedged 62% and 18% of its forecasted net cash exposures under contracts for 2022 and 2023, respectively. The foreign exchange derivative contracts were effective as of December 31, 2021. 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) and (c) below) at December 31, 2021 and December 31, 2020, 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. Successor Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2021 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 26 — 26 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other liabilities and deferred credits Total Liabilities 2 — 2 — Other Instruments: Long-term debt due within one year 259 — 259 — (b) Long-term debt due within one year Long-term debt 1,682 — 1,682 — (c) Long-term debt Predecessor Quoted prices in 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 due within one year 13 — 13 — (b) Long-term debt due within one year Long-term debt 1,216 — 1,216 — (c) 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, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $259 million and $13 million at December 31, 2021 and December 31, 2020, respectively. (c) The carrying value of the Company’s long-term debt is $1,643 million and $1,079 million at December 31, 2021 and December 31, 2020, 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, 2021 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 22. SEGMENT DISCLOSURES Following the sale of the Company’s Personal Care business on March 1, 2021, 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, hardwood and fluff pulp, and high quality airlaid and ultrathin laminated cores. 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. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, SEGMENT DATA 2021 2021 2020 2019 $ $ $ $ Sales by product group Communication papers 155 1,834 1,968 2,571 Specialty and packaging papers 49 538 575 637 Market pulp 96 996 872 911 Consolidated sales (1) 300 3,368 3,415 4,119 Operating income (loss) from continuing operations (2) Pulp and Paper 4 157 (153 ) 201 Corporate (3 ) (168 ) (34 ) (47 ) Consolidated operating income (loss) from continuing operations 1 (11 ) (187 ) 154 Interest expense, net 10 54 58 52 Non-service components of net periodic benefit cost (2 ) (22 ) (17 ) 23 (Loss) earnings before income taxes and equity loss (7 ) (43 ) (228 ) 79 Income tax (benefit) expense (2 ) 6 (80 ) 11 Equity method investment loss, net of taxes — — 3 2 (Loss) earnings from continuing operations (5 ) (49 ) (151 ) 66 Earnings from discontinued operations, net of taxes 1 26 24 18 Net (loss) earnings (4 ) (23 ) (127 ) 84 (1) In 2021 and 2020, Staples, one of the Company’s largest customers, represented approximately 12% (2020 – 13%) of the total sales. (2) The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. The Company recognized in the predecessor period $7 million as a reduction of costs (CDN $9 million) ($6 million in Cost of sales (CDN $7 million) and $1 million in Selling, general and administrative (CDN $2 million)) related to this program. Successor Predecessor December 31, December 31, 2021 2020 $ $ Segment assets Pulp and Paper 4,051 3,012 Corporate 516 515 Total for reportable segments 4,567 3,527 Assets held for sale 287 1,329 Consolidated assets 4,854 4,856 Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Additions to property, plant and equipment Pulp and Paper 42 251 120 208 Corporate — 4 3 3 Discontinued Operations 1 15 37 53 Consolidated additions to property, plant and equipment 43 270 160 264 Add: Change in payables on capital projects (2 ) (2 ) 15 (9 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 41 268 175 255 Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Geographic information Sales United States 232 2,560 2,691 3,219 Canada 27 327 324 419 Asia 26 315 203 207 Europe 13 157 116 149 Other foreign countries 2 9 81 125 300 3,368 3,415 4,119 Successor Predecessor December 31, December 31, 2021 2020 $ $ Long-lived assets United States 2,069 1,423 Canada 710 585 2,779 2,008 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
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 periods ended: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Allowances deducted from related asset accounts: Doubtful accounts - Accounts receivable Balance at beginning of period 4 6 4 3 Charged to income — (2 ) 4 1 Deductions from reserve — — (2 ) — Balance at end of period 4 4 6 4 Valuation Allowance on Deferred Tax Assets Balance at beginning of period 58 64 17 12 Charged to income — 1 47 5 Deductions from reserve — (7 ) — — Balance at end of period 58 58 64 17 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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, impairment of intangibles and goodwill, 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. On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding common shares of Domtar Corporation (the “Company”) by means of a merger of Pearl Merger Sub (a wholly-owned subsidiary) with and into the Company (the “Merger”) For purposes of the Company’s financial statement presentation, Pearl Merger Sub was determined to be the accounting acquirer in the Merger which was accounted for using the acquisition method of accounting. The application of the acquisition method of accounting resulted in a new basis of accounting basis of the Company’s assets and liabilities which are measured at fair value as of the date of the Merger. The Company’s consolidated financial statements for the period following the closing of the Merger are labeled “Successor” and reflect the Company’s assets and liabilities at their fair values. All periods prior to the closing of the Merger reflect the historical accounting basis of the Company’s assets and liabilities and are labeled “Predecessor.” The consolidated financial statements and related notes include a black line division between the columns titled "Predecessor" and "Successor" to signify that the amounts shown for the periods prior to and following the Merger are not comparable. As a condition to obtain the approval of the Merger from the Canadian Competition Bureau, the Company was required to commit to the divestiture of its Kamloops, British Columbia production facility within a short period of time following the Merger. Certain reclassifications have been made to the prior years’ presentation to conform to the current year presentation. |
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. |
Business Combinations | BUSINESS COMBINATIONS The Company accounts for business combinations in accordance with ASC 805 “Business Combinations” which requires, among other things, the acquiring entity in a business combination to recognize the fair value of the assets acquired and liabilities assumed; the recognition of acquisition-related costs in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss); the recognition of restructuring costs in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at fair value on the acquisition date with subsequent adjustments recognized in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Estimates of fair value require a complex series of judgments about future events and uncertainties. The estimates and assumptions used to determine the preliminary estimated fair value assigned to each class of assets and liabilities, as well as asset lives, have a material impact to the Company's consolidated financial statements, and are based upon assumptions believed to be reasonable but that are inherently uncertain. The Company generally uses third-party qualified consultants to assist management in determining the fair value of assets acquired and liabilities assumed. This includes, when necessary, assistance with the determination of lives and valuation of property and identifiable intangibles and assisting management in assessing off-market contracts and obligations associated with legal and environmental claims. The purchase price allocation process also entails the Company to refine these estimates over a measurement period not to exceed one year to reflect new information obtained surrounding facts and circumstances existing at acquisition date. |
Discontinued Operations | DISCONTINUED OPERATIONS The results of operations of the Kamloops, British Columbia production facility (the “Kamloops 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 Kamloops disposal group met the criteria to be classified as held for sale at the time of the Merger discussed above. The after-tax results of operations of the discontinued operations are reported as a separate component in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for all prior periods presented. The cash flows related to the Kamloops disposal group have not been segregated and are included in the Consolidated Statements of Cash Flows for all periods presented. The results of operations for the Personal Care business unit (the “Personal Care 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 Personal Care disposal group met the criteria to be classified as held for sale in the fourth quarter of 2020 and the disposal of the business unit represents a strategic shift that has 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. The cash flows related to the divested Personal Care business have not been segregated and are included in Consolidated Statements of Cash Flows for all periods presented. |
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 income (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 21 “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 (benefit) expense or in Other comprehensive income in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). Deferred tax assets and liabilities are measured using enacted tax rates and laws expected to apply in the years in which the assets and liabilities are expected to be recovered or settled. Uncertain tax positions are recorded based upon the Company’s evaluation of whether it is “more likely than not” (a probability level of more than 50%) that, based upon its technical merits, the tax position will be sustained upon examination by the taxing authorities. The Company establishes a valuation allowance for deferred tax assets when it is more likely than not that they will not be realized. In general, “realization” refers to the incremental benefit achieved through the reduction in future taxes payable or an increase in future taxes refundable from the deferred tax assets. Deferred tax assets and liabilities are classified as non-current items on the Consolidated Balance Sheets. The Company recognizes interest and penalties related to income tax matters as a component of Income tax (benefit) expense 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 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 The Company establishes 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. The Company assigns internal credit ratings for all customers and determines the creditworthiness of each customer based upon publicly available information and information obtained directly from its customers. 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. 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. |
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. Impairment of right-of-use assets are determined and calculated in the same manner as disclosed under impairment of property, plant and equipment. 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. |
Intangible Assets | DEFINITE-LIVED INTANGIBLE ASSETS 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, trade names, technology as well as non-compete agreements, which are generally being amortized using the straight-line method over their respective estimated useful lives. Based on guidance provided in ASC 350, the customer relationships are amortized in a manner that reflects the pattern in which the economic benefits of the intangible asset are consumed. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of property, plant and equipment. Amortization is based on the following preliminary useful lives: Useful life Water rights 40 years Customer relationships Up to 15 years Trade Names Up to 20 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 Prior to the Merger date, Domtar recognized 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 liabilities. The Company awards were 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 have been 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 was 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 was transferred to Common stock upon the issuance of shares of common stock. Stock options subject to service conditions vested pro rata on the first three anniversaries of the grant and had a seven-year At the Merger date, all the Company’s outstanding stock-based awards, whether vested or unvested, were cancelled and converted into the right to receive cash payment. |
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. 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 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 11 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. |
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, “ Reference Rate Reform (Topic 848): 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. As of December 31, 2021, the Company has not yet elected any optional expedients provided in the standard. The Company will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. 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, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Amortization Period of Finite Lived Assets | Amortization is based on the following preliminary useful lives: Useful life Water rights 40 years Customer relationships Up to 15 years Trade Names Up to 20 years |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Major components of earnings from discontinued operations: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Sales 18 446 1,232 1,170 Operating expenses Cost of sales, excluding depreciation and amortization 16 323 932 892 Depreciation and amortization — 23 75 77 Selling, general and administrative — 26 142 145 Impairment of long-lived assets — — 1 26 Closure and restructuring costs — 1 — 20 Other operating loss, net — 1 2 1 16 374 1,152 1,161 Operating income 2 72 80 9 Net loss on disposition of discontinued operations — 33 45 — Earnings from discontinued operations before income taxes 2 39 35 9 Income tax expense (benefit) 1 13 11 (9 ) Net earnings from discontinued operations 1 26 24 18 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: Successor Predecessor At December 31, December 31, 2021 2020 $ $ Assets Receivables 50 135 Inventories 82 206 Prepaid expenses — 3 Income and other taxes receivable — 3 Property, plant and equipment, net 155 454 Operating lease right-of-use assets — 15 Intangible assets, net (2) — 554 Other assets — 2 Total assets 287 1,372 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) 287 1,329 Liabilities Trade and other payables 26 155 Income and other taxes payable — 12 Operating lease liabilities due within one year — 8 Long-term debt due within one year 1 1 Long-term debt 4 6 Operating lease liabilities — 8 Deferred income taxes and other 27 143 Other liabilities and deferred credits 5 12 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 63 345 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheet at December 31, 2021. (2) Intangible assets, net at December 31, 2020 are comprised of $290 million ($248 million of trade names and $42 million of catalog rights) of indefinite-lived assets and $264 million of definite-lived assets. Cash Flows from Discontinued Operations: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Cash flows from operating activities 3 57 130 164 Cash flows used for investing activities (1 ) (14 ) (40 ) (57 ) |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain tangible and intangible assets; thus, the provisional measurements of tangible and intangible assets, off-market contracts and deferred income tax assets are subject to change. Fair value of net assets acquired at the date of acquisition Receivables $ 501 Inventories 646 Prepaid expenses 49 Income and other taxes receivable 54 Property, plant and equipment 2,498 Intangible assets 207 Customer relationships 170 Trade names 30 Water rights 7 Operating lease right-of-use assets 51 Other assets 252 Assets held for sale 290 Total assets 4,548 Less: Assumed Liabilities Trade and other payables 667 Income and other taxes payable 16 Operating lease liabilities (including short-term portion) 57 Long-term debt (including short-term portion) 529 Deferred income tax liabilities 529 Other liabilities and deferred credits 221 Liabilities held for sale 65 Total liabilities 2,084 Fair value of net assets acquired at the date of acquisition 2,464 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 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2020, the measurement date for each year: Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at beginning of year 1,566 67 1,425 63 Service cost for the year 28 1 29 1 Interest expense 34 2 39 2 Plan participants' contributions 6 — 6 — Actuarial (gain) loss (104 ) (6 ) 127 2 Plan amendments 6 — 2 — Benefits paid (65 ) (1 ) (67 ) — Direct benefit payments (9 ) (3 ) (3 ) (4 ) Acquisition of business — — — 1 Curtailment (1) — — (1 ) — Settlement (2) (35 ) — (15 ) — Effect of foreign currency exchange rate change 6 — 24 2 Projected benefit obligation at end of year 1,433 60 1,566 67 |
Change in Fair Value of Assets | The following table represents the change in the fair value of assets, as of December 31, 2021 and December 31, 2020, reflecting the actual return on plan assets, the contributions and the benefits paid for each year: Successor Predecessor December 31, 2021 December 31, 2020 Pension plans Pension plans $ $ Fair value of assets at beginning of year 1,594 1,465 Actual return on plan assets 106 166 Employer contributions 17 15 Plan participants' contributions 6 6 Benefits paid (74 ) (70 ) Settlement (2) (35 ) (15 ) Effect of foreign currency exchange rate change 8 27 Fair value of assets at end of year 1,622 1,594 (1) Curtailment accounting was triggered following the restructuring activities that occurred in 2020. The impact was estimated as of July 31, 2020, based on the information known at that time and was remeasured on December 31, 2020. (2) Settlement accounting was triggered as of December 31, 2020, following the restructuring activities that occurred in 2020, to reflect lump sums paid in 2020 in excess of the sum of service cost and interest cost. Settlement accounting was triggered throughout 2021 as lump sums paid have exceeded the sum of service cost and interest cost. |
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 2021: Successor Predecessor Percentage of Percentage of plan assets at plan assets at December 31, December 31, Target allocation 2021 2020 Fixed income Cash and cash equivalents 0% – 10% 8 % 2 % Bonds 26% – 56% 40 % 42 % Insurance contracts 10% 10 % 11 % Equity Canadian Equity 0% – 10% 6 % 6 % U.S. Equity 6% – 15% 12 % 15 % International Equity 11% – 24% 19 % 24 % Alternate Investments Real Estate 0% – 13% 5 % 0 % Multi Asset Credit 0% – 10% 0 % 0 % Infrastructure 0% – 9% 0 % 0 % Total (1) 100 % 100 % ( 1 ) Approximately 73% of the pension plans' assets relate to Canadian plans, 27% 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. Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Projected benefit obligation at end of year (1,433 ) (60 ) (1,566 ) (67 ) Fair value of assets at end of year 1,622 — 1,594 — Funded status 189 (60 ) 28 (67 ) |
Amount Recognized in Consolidated Balance Sheets | Successor Predecessor December 31, 2021 December 31, 2020 Pension Other post-retirement Pension Other post-retirement plans benefit plans plans benefit plans $ $ $ $ Trade and other payables — (5 ) — (5 ) Other liabilities and deferred credits (59 ) (55 ) (124 ) (62 ) Other assets 248 — 152 — Net amount recognized in the Consolidated Balance Sheets 189 (60 ) 28 (67 ) |
Pre-Tax Amounts Included in Other Comprehensive Income (Loss) | The following table presents the pre-tax amounts included in Other comprehensive income (loss): Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 Other post- Other post- Other post- Other post- Pension retirement Pension retirement Pension retirement Pension retirement plans benefit plans plans benefit plans plans benefit plans plans benefit plans $ $ $ $ $ $ $ $ Prior service (cost) credit — — (6 ) 1 (2 ) — — — Amortization of prior year service cost (credit) — — 1 (1 ) 2 (1 ) 5 (1 ) Net gain (loss) 22 (1 ) 121 7 (26 ) (1 ) 3 1 Amortization of net actuarial loss (gain) (1) — — 7 (1 ) 12 (1 ) 40 (1 ) Net amount recognized in other comprehensive income (loss) (pre-tax) 22 (1 ) 123 6 (14 ) (3 ) 48 (1 ) (1) In 2021, the non-cash settlement was nil (2020 – $2 million; 2019 – $30 million). |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | At December 31, 2021, 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 $318 million and $259 million, respectively (2020 – $917 million and $793 million, respectively). Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, Components of net periodic benefit cost for pension plans 2021 2021 2020 2019 $ $ $ $ Service cost for the year 2 25 28 28 Interest expense 3 31 39 57 Expected return on plan assets (5 ) (61 ) (68 ) (79 ) Amortization of net actuarial loss — 7 10 10 Curtailment loss — — 2 — Settlement loss — — 2 30 Amortization of prior year service cost — 1 2 5 Net periodic benefit cost — 3 15 51 Successor Predecessor Components of net periodic benefit cost for other post-retirement Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, benefit plans 2021 2021 2020 2019 $ $ $ $ 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 ) (1 ) Net periodic benefit cost — 1 1 1 |
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. Successor Predecessor December 31, November 30, December 31, December 31, Pension plans 2021 2021 2020 2019 Projected benefit obligation Discount rate 3.0 % N/A 2.5 % 3.1 % Rate of compensation increase 2.7 % N/A 2.7 % 2.7 % Net periodic benefit cost Discount rate 3.0 % 2.5 % 3.0 % 3.8 % Rate of compensation increase 2.8 % 2.7 % 2.8 % 2.6 % Expected long-term rate of return on plan assets 4.3 % 4.3 % 4.6 % 5.2 % Successor Predecessor December 31, November 30, December 31, December 31, Other post-retirement benefit plans 2021 2021 2020 2019 Projected benefit obligation Discount rate 3.1 % N/A 2.5 % 3.1 % Rate of compensation increase 2.9 % N/A 2.8 % 2.8 % Net periodic benefit cost Discount rate 3.2 % 2.3 % 3.0 % 3.7 % Rate of compensation increase 2.8 % 2.6 % 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 2021. |
Schedule Of Fair Value Of Plan Asset By Asset Category | The following table presents the fair value of the plan assets at December 31, 2021, by asset category: Successor Fair Value Measurements at December 31, 2021 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 145 19 126 — Canadian provincial government bonds 380 377 3 — Canadian corporate debt securities 70 52 18 — U.S. corporate debt securities 28 28 — — International corporate debt securities 8 8 — — Bond fund (1 & 2) 157 — 157 — Canadian equities (3) 90 90 — — U.S. equities (4) 94 94 — — International equities (5) 211 211 — — U.S. stock index funds (2 & 6) 196 — 196 — U.S. private real estate funds (7) 77 — 77 Insurance contracts (8) 165 — — 165 Derivative contracts (9) 1 — 1 — Total 1,622 879 501 242 (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 two U.S. actively managed private real estate funds (Core and Core Plus) that are benchmarked to the NCREIF ODCE. ( 8 ) 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. ( 9 ) 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, 2020, by asset category: Predecessor Fair Value Measurements at December 31, 2020 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 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. |
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) $ 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 Purchases 70 Settlements (14 ) Return on plan assets 9 Effect of foreign currency exchange rate change 1 Balance at December 31, 2021 242 |
Estimated Future Benefit Payments from Plans | Estimated future benefit payments from the plans for the next 10 years at December 31, 2021 are as follows: . Pension plans Other post-retirement benefit plans $ $ 2022 85 5 2023 84 5 2024 86 4 2025 87 4 2026 87 4 2027 – 2031 418 20 |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking And Thrift Interest [Abstract] | |
Components of Interest Expense, Net | The following table presents the components of interest expense, net: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Interest on long-term debt (1) 9 36 52 45 Make-whole premium on repayment of long-term debt — 11 — — Interest on receivables securitization — 1 1 2 Interest on withdrawal liabilities for multiemployer plans — 2 3 3 Amortization of debt issuance costs and other 1 4 2 2 10 54 58 52 (1) The Company capitalized $1 million and $8 million of interest expense for the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, respectively (2020 – $3 million; 2019 – $3 million). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Earnings Before Income Taxes | The Company’s (loss) earnings before income taxes by taxing jurisdiction were: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. (loss) earnings (4 ) (7 ) (199 ) 80 Foreign (loss) earnings (3 ) (36 ) (29 ) (1 ) (Loss) earnings before income taxes (7 ) (43 ) (228 ) 79 |
Provisions for Income Taxes | Provisions for income taxes include the following: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. Federal and State: Current 5 29 (21 ) 19 Deferred (6 ) (13 ) (45 ) (6 ) Foreign: Current 4 (23 ) (11 ) 1 Deferred (5 ) 13 (3 ) (3 ) Income tax (benefit) expense (2 ) 6 (80 ) 11 |
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: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ U.S. federal statutory income tax (1 ) (9 ) (48 ) 17 Reconciling Items: State and local income taxes, net of federal income tax benefit — 4 (6 ) 4 Foreign income tax rate differential — (3 ) (2 ) 1 Tax credits and special deductions (1 ) (9 ) (17 ) (18 ) U.S. tax rate benefit from loss carryback — 1 (5 ) — Tax rate changes — (1 ) — (4 ) Deemed mandatory repatriation tax — — — — Uncertain tax positions — (1 ) (4 ) (3 ) Deferred taxes on Personal Care Group Investment — 1 (51 ) — Deferred taxes on foreign earnings — 2 (1 ) 2 Intercompany income with assets held for sale — — 3 3 Net book value adjustment of assets held for sale — — 5 — Valuation allowance on deferred tax assets — 1 47 5 Nondeductible expenses — 17 1 3 Global intangible low-taxed income (GILTI) — 3 — — Foreign-derived intangible income (FDII) — (1 ) — — Other — 1 (2 ) 1 Income tax (benefit) expense (2 ) 6 (80 ) 11 |
Deferred Tax Assets and Liabilities | The tax effects of significant temporary differences representing deferred tax assets and liabilities at December 31, 2021 and December 31, 2020 are comprised of the following: Successor Predecessor December 31, December 31, 2021 2020 $ $ Accounting provisions 36 30 Net operating loss carryforwards and other deductions 48 56 Pension and other employee future benefit plans — 18 Inventory — 11 Tax credits 30 41 Other 19 12 Gross deferred tax assets 133 168 Valuation allowance (58 ) (64 ) Net deferred tax assets 75 104 Property, plant and equipment (458 ) (352 ) Intangible assets (51 ) (6 ) Pension and other employee future benefit plans (23 ) — Inventory (10 ) — Outside basis difference (12 ) Other (24 ) (31 ) Total deferred tax liabilities (578 ) (389 ) Net deferred tax liabilities (503 ) (285 ) Included in: Deferred income taxes and other (503 ) (285 ) Total (503 ) (285 ) |
Gross Unrecognized Tax Benefits | At December 31, 2021, the Company had gross unrecognized tax benefits of approximately $22 million ($23 million and $28 million for 2020 and 2019, respectively). If recognized in 2021, 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, 2021 2020 2019 $ $ $ Balance at beginning of year 23 28 28 Additions based on tax positions related to current year 2 1 3 Additions for tax positions of prior years — 1 2 Expirations of statutes of limitations (4 ) (7 ) (6 ) Interest 1 — 1 Balance at end of year 22 23 28 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: Successor Predecessor December 31, December 31, 2021 2020 $ $ Work in process and finished goods 359 286 Raw materials 110 91 Operating and maintenance supplies 194 185 663 562 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The following table presents the components of property, plant and equipment: Successor Predecessor Range of useful lives December 31, December 31, (in years) 2021 2020 $ $ Machinery and equipment 3 – 20 1,894 7,147 Buildings and improvements 10 – 40 199 888 Timberlands (1) 142 192 Assets under construction — 311 82 2,546 8,309 Less: Accumulated depreciation (22 ) (6,389 ) 2,524 1,920 (1) Amortization is calculated using the unit of production method. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Operating lease expense 4 17 22 21 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 4 20 23 21 Operating cash flows from finance leases — — 1 1 Financing cash flows from finance leases — 1 1 1 Right-of-use assets obtained in exchange for lease liabilities: Operating leases — 3 12 24 Finance leases — — — — |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Successor Predecessor December 31, December 31, 2021 2020 $ $ Operating leases Operating lease right-of-use assets 48 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 36 50 55 70 Finance leases Property, plant and equipment 5 4 Accumulated depreciation (2 ) (2 ) 3 2 Long-term debt due within one year 1 1 Long-term debt 3 4 4 5 Weighted-average remaining lease term Operating leases 4.3 years 4.7 years Finance leases 6.8 years 7.9 years Weighted-average discount rate Operating leases 3.2 % 4.4 % Finance leases 4.8 % 8.4 % |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities at December 31, 2021 were as follows: Operating leases $ 2022 17 2023 16 2024 12 2025 6 2026 3 Thereafter 5 Total lease payments 59 Less: Imputed interest 4 Total lease liabilities 55 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: Successor Predecessor Preliminary useful lives December 31, December 31, (in years) 2021 2020 Gross carrying Accumulated Gross carrying Accumulated amount amortization Net amount amortization Net Definite-lived intangible assets subject to amortization $ $ $ $ $ $ Water rights 40 7 — 7 3 (1 ) 2 Customer relationships Up to 15 171 (1 ) 170 24 (10 ) 14 Trade Names Up to 20 30 — 30 — — — Technology 7 – 20 — — — 8 (5 ) 3 Non-Compete 9 — — — 1 (1 ) — 208 (1 ) 207 36 (17 ) 19 Indefinite-lived intangible assets not subject to amortization Water rights — — — 4 — 4 License rights — — — 6 — 6 Total 208 (1 ) 207 46 (17 ) 29 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2022 2023 2024 2025 2026 $ $ $ $ $ Amortization expense related to intangible assets 13 13 13 13 13 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Components of Other Assets | The following table presents the components of other assets: Successor Predecessor December 31, December 31, 2021 2020 $ $ Pension asset - defined benefit pension plans 248 152 Other 25 37 273 189 |
Closure and Restructuring Cos_2
Closure and Restructuring Costs and Impairment of Long-Lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Activity in Closure and Restructuring Liability | The following table provides the activity in the closure and restructuring and transaction costs liability: December 31, December 31, 2021 2020 $ $ Balance at beginning of year 28 12 Additions 21 48 Payments (28 ) (32 ) Balance at end of year (1) 21 28 |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Components of Trade and Other Payables | The following table presents the components of trade and other payables: Successor Predecessor December 31, December 31, 2021 2020 $ $ Trade payables 297 242 Payroll-related accruals 131 98 Other accruals 115 116 543 456 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | The following table presents the changes in Accumulated other comprehensive income (loss) by component (1) Net derivative gains (losses) on cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total Predecessor $ $ $ $ $ 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 ) Natural gas swap contracts 22 N/A N/A N/A 22 Foreign exchange forward contracts 2 N/A N/A N/A 2 Net gain N/A 85 5 N/A 90 Foreign currency items N/A N/A N/A 57 57 Other comprehensive income before reclassifications 24 85 5 57 171 Amounts reclassified from Accumulated other comprehensive loss (31 ) 10 (1 ) — (22 ) Net current period other comprehensive (loss) income (7 ) 95 4 57 149 Balance at November 30, 2021 27 (112 ) 12 (82 ) (155 ) Elimination of Predecessor's Accumulated other comprehensive loss (27 ) 112 (12 ) 82 155 Balance at November 30, 2021 — — — — — Net derivative gains (losses) on cash flow hedges Pension items (2) Post-retirement benefit items (2) Foreign currency items Total Successor $ $ $ $ $ Balance at November 30, 2021 — — — — — Natural gas swap contracts (3 ) N/A N/A N/A (3 ) Foreign exchange forward contracts 3 N/A N/A N/A 3 Net gain (loss) N/A 17 (1 ) N/A 16 Foreign currency items N/A N/A N/A 8 8 Other comprehensive income (loss) before reclassifications — 17 (1 ) 8 24 Amounts reclassified from Accumulated other comprehensive income — — — — — Net current period other comprehensive income (loss) — 17 (1 ) 8 24 Balance at December 31, 2021 — 17 (1 ) 8 24 (1) All amounts are after tax. Amounts in parentheses indicate losses. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated other comprehensive income (loss): Details about Accumulated other comprehensive income (loss) components Amounts reclassified from Accumulated other comprehensive income (loss) Successor Predecessor Period from December 1, through December 31, 2021 Period from January 1, through November 30, 2021 Year ended December 31, 2020 Year ended December 31, 2019 $ $ $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) — 10 (10 ) (4 ) Currency options and forwards (1) — 38 (6 ) (7 ) Net investment hedge (2) — (9 ) — — Total before tax — 39 (16 ) (11 ) Tax (expense) benefit — (8 ) 4 3 Net of tax — 31 (12 ) (8 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3)(4) — (7 ) (12 ) (40 ) Amortization of prior year service cost (3) — (1 ) (2 ) (5 ) Discontinued operations — (4 ) — — Total before tax — (12 ) (14 ) (45 ) Tax benefit — 2 3 12 Net of tax — (10 ) (11 ) (33 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) — 1 1 1 Amortization of prior year service credit (3) — 1 1 1 Total before tax — 2 2 2 Tax expense — (1 ) — (1 ) Net of tax — 1 2 1 ( 1 ) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). ( 2 ) This amount is included in Earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 6 "Pension Plans and Other Post-Retirement Benefit Plans" for more details). ( 4 ) In 2021, the non-cash settlement was nil ( 2020 – 2019 – |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Successor Predecessor Par December 31, December 31, Maturity Amount Currency 2021 2020 $ $ $ Unsecured notes 4.4% Notes 2022 300 US — 300 6.25% Notes 2042 250 US 264 249 6.75% Notes 2044 250 US 262 250 Senior secured notes 6.75% Notes 2028 775 US 775 — ABL Revolving Credit Facility 2026 — US 115 — First Lien Term Loan 2028 525 US 520 — Term Loan 2025 — US — 294 Finance lease obligations 2021 - 2028 4 5 1,940 1,098 Less: Unamortized debt issuance costs 38 6 Less: Due within one year 259 13 1,643 1,079 |
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 $ $ 2022 373 1 2023 26 1 2024 26 1 2025 26 1 2026 141 1 Thereafter 1,323 1 1,915 6 Less: Amounts representing interest — 2 Total payments 1,915 4 |
Other Liabilities and Deferre_2
Other Liabilities and Deferred Credits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Liabilities and Deferred Credits | The following table presents the components of other liabilities and deferred credits: . Successor Predecessor December 31, December 31, 2021 2020 $ $ Liability - other post-retirement benefit plans 55 62 Pension liability - defined benefit pension plans 59 124 Pension liability - multiemployer plan withdrawal 38 40 Other 64 84 216 310 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2020, were as follows: Successor Predecessor December 31, November 30, December 31, 2021 2021 2020 Number Number Number Common stock of shares $ of shares $ of shares $ Balance at beginning of period 50,379,090 1 55,194,538 1 56,880,910 1 Shares cancelled (50,379,090 ) (1 ) — — — — Shares issued Treasury stock (1) — — (4,815,448 ) — (1,686,372 ) — Common shares 100 — — — — — Balance at end of period 100 — 50,379,090 1 55,194,538 1 (1) During 2021, the Company repurchased 5,060,865, and issued 245,417 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, 2021 | |
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, 2021 2020 $ $ Balance at beginning of year 42 31 Additions and other changes 3 14 Environmental spending (4 ) (3 ) Balance at end of year (1) 41 42 (1) At December 31, 2021, $8 million is shown in Trade and other payables and $33 million is shown in Other liabilities and deferred credits. |
Anticipated Undiscounted Payments | At December 31, 2021, anticipated undiscounted payments in each of the next five years are as follows: 2022 2023 2024 2025 2026 Thereafter Total $ $ $ $ $ $ $ Environmental provision and asset retirement obligations 8 2 6 2 2 56 76 |
Minimum Future Payments under Other Commercial Commitments | Minimum future payments under these other commercial commitments, determined at December 31, 2021, were as follows: 2022 2023 2024 2025 2026 Thereafter Total $ $ $ $ $ $ $ Other commercial commitments 233 12 9 — — — 254 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
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) and (c) below) at December 31, 2021 and December 31, 2020, 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. Successor Quoted Significant Significant active markets for observable unobservable December 31, identical assets inputs inputs Fair Value of financial instruments at: 2021 (Level 1) (Level 2) (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 26 — 26 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other liabilities and deferred credits Total Liabilities 2 — 2 — Other Instruments: Long-term debt due within one year 259 — 259 — (b) Long-term debt due within one year Long-term debt 1,682 — 1,682 — (c) Long-term debt Predecessor Quoted prices in 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 due within one year 13 — 13 — (b) Long-term debt due within one year Long-term debt 1,216 — 1,216 — (c) 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, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $259 million and $13 million at December 31, 2021 and December 31, 2020, respectively. (c) The carrying value of the Company’s long-term debt is $1,643 million and $1,079 million at December 31, 2021 and December 31, 2020, respectively. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, SEGMENT DATA 2021 2021 2020 2019 $ $ $ $ Sales by product group Communication papers 155 1,834 1,968 2,571 Specialty and packaging papers 49 538 575 637 Market pulp 96 996 872 911 Consolidated sales (1) 300 3,368 3,415 4,119 Operating income (loss) from continuing operations (2) Pulp and Paper 4 157 (153 ) 201 Corporate (3 ) (168 ) (34 ) (47 ) Consolidated operating income (loss) from continuing operations 1 (11 ) (187 ) 154 Interest expense, net 10 54 58 52 Non-service components of net periodic benefit cost (2 ) (22 ) (17 ) 23 (Loss) earnings before income taxes and equity loss (7 ) (43 ) (228 ) 79 Income tax (benefit) expense (2 ) 6 (80 ) 11 Equity method investment loss, net of taxes — — 3 2 (Loss) earnings from continuing operations (5 ) (49 ) (151 ) 66 Earnings from discontinued operations, net of taxes 1 26 24 18 Net (loss) earnings (4 ) (23 ) (127 ) 84 (1) In 2021 and 2020, Staples, one of the Company’s largest customers, represented approximately 12% (2020 – 13%) of the total sales. (2) The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. The Company recognized in the predecessor period $7 million as a reduction of costs (CDN $9 million) ($6 million in Cost of sales (CDN $7 million) and $1 million in Selling, general and administrative (CDN $2 million)) related to this program. |
Consolidated Assets | Successor Predecessor December 31, December 31, 2021 2020 $ $ Segment assets Pulp and Paper 4,051 3,012 Corporate 516 515 Total for reportable segments 4,567 3,527 Assets held for sale 287 1,329 Consolidated assets 4,854 4,856 |
Schedule Of Segment Reporting Information Expenditures For Additions To Long Lived Assets Table Text Block | Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Additions to property, plant and equipment Pulp and Paper 42 251 120 208 Corporate — 4 3 3 Discontinued Operations 1 15 37 53 Consolidated additions to property, plant and equipment 43 270 160 264 Add: Change in payables on capital projects (2 ) (2 ) 15 (9 ) Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows 41 268 175 255 |
Long-Lived Assets | Successor Predecessor December 31, December 31, 2021 2020 $ $ Long-lived assets United States 2,069 1,423 Canada 710 585 2,779 2,008 |
Sales [Member] | |
Geographic Information on Sales | Successor Predecessor Period from December 1, through December 31, Period from January 1, through November 30, Year ended December 31, Year ended December 31, 2021 2021 2020 2019 $ $ $ $ Geographic information Sales United States 232 2,560 2,691 3,219 Canada 27 327 324 419 Asia 26 315 203 207 Europe 13 157 116 149 Other foreign countries 2 9 81 125 300 3,368 3,415 4,119 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |
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) | 11 years |
Amortization of cumulative net actuarial gains and losses, excess percentage greater of projected benefit obligation and market value of assets | 10.00% |
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, 2021 | |
Water Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 40 years |
Maximum [Member] | Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 15 years |
Maximum [Member] | Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives (in years) | 20 years |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Mar. 01, 2021 | Nov. 30, 2021 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Proceeds from sale of business, net of cash disposed (NOTE 3) | $ 897 | |
Personal Care [Member] | AIP [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Purchase price | $ 920 | |
Estimated working capital | 130 | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | $ 897 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Earnings (Loss) from Discontinued Operations (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | ||||
Sales | $ 18 | $ 446 | $ 1,232 | $ 1,170 |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 16 | 323 | 932 | 892 |
Depreciation and amortization | 23 | 75 | 77 | |
Selling, general and administrative | 26 | 142 | 145 | |
Impairment of long-lived assets | 1 | 26 | ||
Closure and restructuring costs | 1 | 20 | ||
Other operating loss, net | 1 | 2 | 1 | |
Operating expenses | 16 | 374 | 1,152 | 1,161 |
Operating income | 2 | 72 | 80 | 9 |
Net loss on disposition of discontinued operations (NOTE 3) | 33 | 45 | ||
Earnings from discontinued operations before income taxes | 2 | 39 | 35 | 9 |
Income tax expense (benefit) | 1 | 13 | 11 | (9) |
Net earnings from discontinued operations | $ 1 | $ 26 | $ 24 | $ 18 |
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, 2021 | Dec. 31, 2020 |
Assets | ||
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets | $ 287 | $ 1,329 |
Personal Care [Member] | ||
Assets | ||
Receivables | 50 | 135 |
Inventories | 82 | 206 |
Prepaid expenses | 3 | |
Income and other taxes receivable | 3 | |
Property, plant and equipment, net | 155 | 454 |
Operating lease right-of-use assets | 15 | |
Intangible assets, net | 554 | |
Other assets | 2 | |
Total assets | 287 | 1,372 |
Loss on classification as held for sale | (43) | |
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets | 287 | 1,329 |
Liabilities | ||
Trade and other payables | 26 | 155 |
Income and other taxes payable | 12 | |
Operating lease liabilities due within one year | 8 | |
Long-term debt due within one year | 1 | 1 |
Long-term debt | 4 | 6 |
Operating lease liabilities | 8 | |
Deferred income taxes and other | 27 | 143 |
Other liabilities and deferred credits | 5 | 12 |
Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets | $ 63 | $ 345 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale in Balance Sheets (Parenthetical) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Indefinite-lived intangible assets | $ 290 |
Definite-lived intangible assets | 264 |
Trade Names | |
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Cash Provided By Used In Discontinued Operations [Abstract] | ||||
Cash flows from operating activities | $ 3 | $ 57 | $ 130 | $ 164 |
Cash flows used for investing activities | $ (1) | $ (14) | $ (40) | $ (57) |
Acquisition of Business - Addit
Acquisition of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 27, 2020 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Acquisition Related Costs | $ 132 | $ 34 | |||
Purchase price | $ 2,796 | $ 30 | |||
Paper Excellence [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Share Price | $ 55.50 | ||||
Fair value of consideration transferred | $ 2,796 | ||||
Cash Acquired | $ 332 | ||||
Appvion Operations, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 20 |
Acquisition of Business - Sched
Acquisition of Business - Schedule of Assets Acquired and Liabilities Assumed (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Business Acquisition [Line Items] | |
Receivables | $ 501 |
Inventories | 646 |
Prepaid expenses | 49 |
Income and other taxes receivable | 54 |
Property, plant and equipment | 2,498 |
Intangible assets | 207 |
Operating lease right-of-use assets | 51 |
Other assets | 252 |
Assets held for sale | 290 |
Total assets | 4,548 |
Less: Assumed Liabilities | 2,084 |
Trade and other payables | 667 |
Income and other taxes payable | 16 |
Operating lease liabilities (including short-term portion) | 57 |
Long-term debt (including short-term portion) | 529 |
Deferred income tax liabilities | 529 |
Other liabilities and deferred credits | 221 |
Liabilities held for sale | 65 |
Total liabilities | 2,084 |
Fair value of net assets acquired at the date of acquisition | 2,464 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | 170 |
Trade Names | |
Business Acquisition [Line Items] | |
Intangible assets | 30 |
Water Rights [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 7 |
Acquisition of Business - Sch_2
Acquisition of Business - Schedule of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Apr. 27, 2020 |
Business Acquisition [Line Items] | ||
Inventories | $ 646 | |
Property, plant and equipment | 2,498 | |
Operating lease right-of-use assets | 51 | |
Total assets | 4,548 | |
Less: Assumed Liabilities | 2,084 | |
Income and other taxes payable | $ 16 | |
Appvion Operations, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Inventories | $ 11 | |
Property, plant and equipment | 23 | |
Operating lease right-of-use assets | 2 | |
Total assets | 36 | |
Less: Assumed Liabilities | 6 | |
Fair value of net assets acquired at the date of acquisition | $ 30 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock-based compensation expense recognized | $ 46 | $ 7 | $ 22 | |
Transaction costs (NOTE 4) | $ 132 | $ 34 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Pension expense | $ 3 | $ 30 | $ 37 | $ 37 | |||
Accumulated benefit obligation of pension plan | 1,386 | $ 1,386 | 1,516 | ||||
Projected benefit obligation | 318 | 318 | 917 | ||||
Fair value of defined benefit plan assets with an projected benefit obligation in excess of fair value of plan assets | $ 259 | $ 259 | $ 793 | ||||
weighted-average interest-crediting rate for cash balance pension plan | 3.30% | ||||||
Expected return on plan assets, percentage | 4.40% | 4.80% | |||||
Weighted-average annual rate increase in per capita cost of covered health care benefits assumed | 3.90% | 3.90% | |||||
Subsequent Event [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected return on plan assets, percentage | 4.80% | ||||||
UNITED STATES | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Minimum number of years from issuance of private placement bonds | 2 years | ||||||
Predecessors | UNITED STATES | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Discount rate | 2.50% | ||||||
Successors | UNITED STATES | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Discount rate | 2.70% | 2.70% | |||||
Pension Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Plan contributions | $ 17 | $ 15 | |||||
Discount rate | 3.00% | 3.00% | 2.50% | 3.10% | |||
Expected return on plan assets, percentage | 4.30% | 4.30% | 4.60% | 5.20% | |||
Pension Plans [Member] | Predecessors | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Plan contributions | $ 15 | $ 17 | |||||
Pension Plans [Member] | Successors | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Plan contributions | $ 17 | ||||||
Pension Plans [Member] | Forecast [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2021 | $ 8 | ||||||
Other Post-Retirement Benefit Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Plan contributions | $ 4 | $ 4 | $ 4 | ||||
Discount rate | 3.10% | 3.10% | 2.50% | 3.10% | |||
Other Post-Retirement Benefit Plans [Member] | Forecast [Member] | |||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||||||
Expected minimum contribution in 2021 | $ 5 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation at beginning of year | $ 1,566 | $ 1,566 | $ 1,425 | ||
Service cost for the year | 28 | 29 | |||
Interest expense | $ 3 | 31 | 34 | 39 | $ 57 |
Plan participants' contributions | 6 | 6 | |||
Actuarial (gain) loss | (104) | 127 | |||
Plan amendments | 6 | 2 | |||
Benefits paid | (65) | (67) | |||
Direct benefit payments | (9) | (3) | |||
Curtailment (1) | (1) | ||||
Settlement (2) | (35) | (15) | |||
Effect of foreign currency exchange rate change | 6 | 24 | |||
Projected benefit obligation at end of year | 1,433 | 1,433 | 1,566 | 1,425 | |
Other Post-Retirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation at beginning of year | 67 | 67 | 63 | ||
Service cost for the year | 1 | 1 | 1 | 1 | |
Interest expense | $ 2 | 2 | 2 | 2 | |
Actuarial (gain) loss | (6) | 2 | |||
Benefits paid | (1) | ||||
Direct benefit payments | (3) | (4) | |||
Acquisition of business | 1 | ||||
Effect of foreign currency exchange rate change | 2 | ||||
Projected benefit obligation at end of year | $ 60 | $ 60 | $ 67 | $ 63 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,594 | ||
Employer contributions | 17 | $ 15 | |
Fair value of assets at end of year | 1,622 | 1,594 | |
Successors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | 1,594 | ||
Actual return on plan assets | 106 | ||
Employer contributions | 17 | ||
Plan participants' contributions | 6 | ||
Benefits paid | (74) | ||
Settlement | (35) | ||
Effect of foreign currency exchange rate change | 8 | ||
Fair value of assets at end of year | 1,622 | 1,594 | |
Predecessors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of assets at beginning of year | $ 1,594 | 1,465 | |
Actual return on plan assets | 166 | ||
Employer contributions | 15 | $ 17 | |
Plan participants' contributions | 6 | ||
Benefits paid | (70) | ||
Settlement | (15) | ||
Effect of foreign currency exchange rate change | 27 | ||
Fair value of assets at end of year | $ 1,594 | $ 1,465 |
Pension Plans and Other Post-_6
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 8.00% | 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 | 40.00% | 42.00% |
Bonds [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 26.00% | |
Bonds [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 56.00% | |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 10.00% | |
Percentage of plan assets | 10.00% | 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 | 0.00% | |
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 | 12.00% | 15.00% |
U.S. Equities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 6.00% | |
U.S. Equities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 15.00% | |
International Equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 19.00% | 24.00% |
International Equities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 11.00% | |
International Equities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 24.00% | |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 5.00% | 0.00% |
Real Estate [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 0.00% | |
Real Estate [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 13.00% | |
Multi Asset Credit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 0.00% | 0.00% |
Multi Asset Credit [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 0.00% | |
Multi Asset Credit [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 10.00% | |
Infrastructure [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 0.00% | 0.00% |
Infrastructure [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 0.00% | |
Infrastructure [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation, percentage of plan assets | 9.00% |
Pension Plans and Other Post-_7
Pension Plans and Other Post-Retirement Benefit Plans - Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation (Parenthetical) (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 73.00% | |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 27.00% |
Pension Plans and Other Post-_8
Pension Plans and Other Post-Retirement Benefit Plans - Funded Status of Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | $ (1,433) | $ (1,566) | $ (1,425) |
Fair value of assets at end of year | 1,622 | 1,594 | |
Funded status | 189 | 28 | |
Other Post-Retirement Benefit Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at end of year | (60) | (67) | $ (63) |
Funded status | $ (60) | $ (67) |
Pension Plans and Other Post-_9
Pension Plans and Other Post-Retirement Benefit Plans - Amount Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 248 | $ 152 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other liabilities and deferred credits | (59) | (124) |
Other assets | 248 | 152 |
Net amount recognized in the Consolidated Balance Sheets | 189 | 28 |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Trade and other payables | (5) | (5) |
Other liabilities and deferred credits | (55) | (62) |
Net amount recognized in the Consolidated Balance Sheets | $ (60) | $ (67) |
Pension Plans and Other Post_10
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Prior service (cost) credit | $ (6) | $ (2) | ||
Amortization of prior year service cost (credit) | 1 | 2 | $ 5 | |
Net gain (loss) | $ 22 | 121 | (26) | 3 |
Amortization of net actuarial loss (gain) | 7 | 12 | 40 | |
Net amount recognized in other comprehensive income (loss) (pre-tax) | 22 | 123 | (14) | 48 |
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Prior service (cost) credit | 1 | |||
Amortization of prior year service cost (credit) | (1) | (1) | (1) | |
Net gain (loss) | (1) | 7 | (1) | 1 |
Amortization of net actuarial loss (gain) | (1) | (1) | (1) | |
Net amount recognized in other comprehensive income (loss) (pre-tax) | $ (1) | $ 6 | $ (3) | $ (1) |
Pension Plans and Other Post_11
Pension Plans and Other Post-Retirement Benefit Plans - Pre-Tax Amounts Included in Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Non-cash pension settlement charge | $ 2 | $ 30 |
Pension Plans and Other Post_12
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash pension settlement charge | $ 2 | $ 30 | |||
Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost for the year | $ 2 | $ 25 | 28 | 28 | |
Interest expense | 3 | 31 | $ 34 | 39 | 57 |
Expected return on plan assets | $ (5) | (61) | (68) | (79) | |
Amortization of net actuarial loss (gain) | 7 | 10 | 10 | ||
Curtailment loss | 2 | ||||
Non-cash pension settlement charge | 2 | 30 | |||
Amortization of prior year service cost (credit) | 1 | 2 | 5 | ||
Net periodic benefit cost | 3 | 15 | 51 | ||
Service cost for the year | 28 | 29 | |||
Other Post-Retirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest expense | 2 | 2 | 2 | 2 | |
Amortization of net actuarial loss (gain) | (1) | (1) | (1) | ||
Amortization of prior year service cost (credit) | (1) | (1) | (1) | ||
Net periodic benefit cost | 1 | 1 | 1 | ||
Service cost for the year | $ 1 | $ 1 | $ 1 | $ 1 |
Pension Plans and Other Post_13
Pension Plans and Other Post-Retirement Benefit Plans - Key Assumptions to Measure Projected Benefit Obligation and Net Periodic Benefit Cost (Detail) | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost, Expected long-term rate of return on plan assets | 4.40% | 4.80% | ||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation, Discount rate | 3.00% | 2.50% | 3.10% | |
Accrued benefit obligation, Rate of compensation increase | 2.70% | 2.70% | 2.70% | |
Net periodic benefit cost, Discount rate | 2.50% | 3.00% | 3.00% | 3.80% |
Net periodic benefit cost, Rate of compensation increase | 2.70% | 2.80% | 2.80% | 2.60% |
Net periodic benefit cost, Expected long-term rate of return on plan assets | 4.30% | 4.30% | 4.60% | 5.20% |
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Projected benefit obligation, Discount rate | 3.10% | 2.50% | 3.10% | |
Accrued benefit obligation, Rate of compensation increase | 2.90% | 2.80% | 2.80% | |
Net periodic benefit cost, Discount rate | 2.30% | 3.20% | 3.00% | 3.70% |
Net periodic benefit cost, Rate of compensation increase | 2.60% | 2.80% | 2.70% | 2.70% |
Pension Plans and Other Post_14
Pension Plans and Other Post-Retirement Benefit Plans - Fair Value of Plan Asset by Assets Category (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 242 | $ 176 | $ 1 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1,622 | 1,594 | |
Pension Plans [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 879 | 946 | |
Pension Plans [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 501 | 472 | |
Pension Plans [Member] | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 242 | 176 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 145 | 60 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 19 | 16 | |
Pension Plans [Member] | Cash and Short-term Investments [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 126 | 44 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 380 | 391 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 377 | 388 | |
Pension Plans [Member] | Canadian Provincial Government Bonds [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 3 | 3 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 70 | 63 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 52 | 46 | |
Pension Plans [Member] | Canadian Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 18 | 17 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 28 | 23 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 28 | 22 | |
Pension Plans [Member] | U.S. Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 | |||
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 | 8 | 10 | |
Pension Plans [Member] | International Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 8 | 10 | |
Pension Plans [Member] | Bond Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 157 | 173 | |
Pension Plans [Member] | Bond Fund [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 157 | 173 | |
Pension Plans [Member] | Canadian Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 90 | 97 | |
Pension Plans [Member] | Canadian Equities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 90 | 97 | |
Pension Plans [Member] | U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 94 | 99 | |
Pension Plans [Member] | U.S. Equities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 94 | 99 | |
Pension Plans [Member] | International Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 211 | 268 | |
Pension Plans [Member] | International Equities [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 211 | 268 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 196 | 233 | |
Pension Plans [Member] | U.S. Stock Index Funds [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 196 | 233 | |
Pension Plans [Member] | Insurance Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 165 | 176 | |
Pension Plans [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 165 | 176 | |
Pension Plans [Member] | U S Private Real Estate Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 77 | ||
Pension Plans [Member] | U S Private Real Estate Funds [Member] | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 77 | ||
Pension Plans [Member] | Derivative Contracts [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | 1 | 1 | |
Pension Plans [Member] | Derivative Contracts [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of the plan assets | $ 1 | $ 1 |
Pension Plans and Other Post_15
Pension Plans and Other Post-Retirement Benefit Plans - Changes in Level 3 Fair Value Measurements of Plan Assets (Detail) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of assets at beginning of year | $ 176 | $ 1 |
Purchases | 70 | 163 |
Return on plan assets | 9 | 3 |
Effect of foreign currency exchange rate change | 1 | 9 |
Fair value of assets at end of year | 242 | $ 176 |
Settlements | $ (14) |
Pension Plans and Other Post_16
Pension Plans and Other Post-Retirement Benefit Plans - Estimated Future Benefit Payments from Plans (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 85 |
2023 | 84 |
2024 | 86 |
2025 | 87 |
2026 | 87 |
2027 – 2031 | 418 |
Other Post-Retirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 5 |
2023 | 5 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
2027 – 2031 | $ 20 |
Interest Expense, Net - Compone
Interest Expense, Net - Components of Interest Expense, Net (Detail) - USD ($) $ in Millions | Apr. 08, 2021 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Banking And Thrift Interest [Abstract] | |||||||
Interest on long-term debt | [1] | $ 9 | $ 36 | $ 52 | $ 45 | ||
Make-whole premium | $ 11 | 11 | $ 11 | ||||
Interest on receivables securitization | 1 | 1 | 2 | ||||
Interest on withdrawal liabilities for multiemployer plans | 2 | 3 | 3 | ||||
Amortization of debt issuance costs and other | 1 | 4 | 2 | 2 | |||
Interest expense, net | $ 10 | $ 54 | $ 58 | $ 52 | |||
[1] | The Company capitalized $1 million and $8 million of interest expense for the 1 month ended December 31, 2021 and the 11 months ended November 30, 2021, respectively (2020 – $3 million; 2019 – $3 million |
Interest Expense, Net - Compo_2
Interest Expense, Net - Components of Interest Expense, Net (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Banking And Thrift Interest [Abstract] | ||||
Capitalized interest expense | $ 1 | $ 8 | $ 3 | $ 3 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Earnings Before Income Taxes (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
U.S. (loss) earnings | $ (4) | $ (7) | $ (199) | $ 80 |
Foreign (loss) earnings | (3) | (36) | (29) | (1) |
(Loss) earnings before income taxes and equity loss | $ (7) | $ (43) | $ (228) | $ 79 |
Income Taxes - Provisions for I
Income Taxes - Provisions for Income Taxes (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal and State, Current | $ 5 | $ 29 | $ (21) | $ 19 |
U.S. Federal and State, Deferred | (6) | (13) | (45) | (6) |
Foreign, Current | 4 | (23) | (11) | 1 |
Foreign, Deferred | (5) | 13 | (3) | (3) |
Income tax (benefit) expense | $ (2) | $ 6 | $ (80) | $ 11 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 07, 2021 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | Mar. 01, 2021 | Dec. 31, 2018 |
Income Taxes Line Items | |||||||||
Statutory income tax rate | 21.00% | 21.00% | 35.00% | ||||||
Tax expense related to GILTI | $ 3,000,000 | ||||||||
Tax credit recorded for research and experimentation | $ 1,000,000 | 9,000,000 | $ 17,000,000 | $ 18,000,000 | |||||
Deferred taxes on Personal Care Group Investment | 1,000,000 | (51,000,000) | |||||||
Valuation allowance in Disposal group | 44,000,000 | ||||||||
Additional valuation allowance | 3,000,000 | ||||||||
Deferred tax liability | 503,000,000 | $ 503,000,000 | 285,000,000 | ||||||
Deferred taxes on foreign earnings | 2,000,000 | (1,000,000) | 2,000,000 | ||||||
Deferred state tax benefit | 4,000,000 | ||||||||
Valuation allowance on deferred tax assets | $ 1,000,000 | 47,000,000 | 5,000,000 | ||||||
Operating loss Carryforwards | 0 | 0 | |||||||
Impacted tax expenses | 1,000,000 | 47,000,000 | 5,000,000 | ||||||
Balance at beginning of year | 22,000,000 | 22,000,000 | 23,000,000 | 28,000,000 | $ 28,000,000 | ||||
Accrued interest on uncertain tax positions | 1,000,000 | 1,000,000 | |||||||
Maximum [Member] | |||||||||
Income Taxes Line Items | |||||||||
Balance at beginning of year | 4,000,000 | 4,000,000 | |||||||
Accrued interest on uncertain tax positions | 1,000,000 | ||||||||
State Tax Credits Member | |||||||||
Income Taxes Line Items | |||||||||
US state tax credits valuation allowance | 15,000,000 | 15,000,000 | |||||||
Capital Loss | |||||||||
Income Taxes Line Items | |||||||||
Capital loss valuation allowance | 43,000,000 | 43,000,000 | |||||||
Foreign and State Member | |||||||||
Income Taxes Line Items | |||||||||
Deferred tax liability | 13,000,000 | 13,000,000 | 11,000,000 | $ 12,000,000 | |||||
Foreign Country Member | |||||||||
Income Taxes Line Items | |||||||||
Operating loss Carryforwards | 12,000,000 | $ 12,000,000 | |||||||
Expiration date of operating loss carryforward | Dec. 31, 2042 | ||||||||
Foreign Country Member | Tax Year 2021 | |||||||||
Income Taxes Line Items | |||||||||
Operating loss Carryforwards | 16,000,000 | $ 16,000,000 | |||||||
COVID Member | |||||||||
Income Taxes Line Items | |||||||||
Additional tax benefits related to U.S. tax reform | $ 5,000,000 | ||||||||
Personal Care [Member] | |||||||||
Income Taxes Line Items | |||||||||
Loss on sale of division | 185,000,000 | ||||||||
Deferred tax asset, sale of division | $ 43,000,000 | $ 43,000,000 | |||||||
Personal Care [Member] | AIP [Member] | |||||||||
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax | $ (1) | $ (9) | $ (48) | $ 17 |
State and local income taxes, net of federal income tax benefit | 4 | (6) | 4 | |
Foreign income tax rate differential | (3) | (2) | 1 | |
Tax credits and special deductions | (1) | (9) | (17) | (18) |
U.S. tax rate benefit from loss carryback | 1 | (5) | ||
Tax rate changes | (1) | (4) | ||
Uncertain tax positions | (1) | (4) | (3) | |
Deferred taxes on Personal Care Group Investment | 1 | (51) | ||
Deferred taxes on foreign earnings | 2 | (1) | 2 | |
Intercompany income with assets held for sale | 3 | 3 | ||
Net book value adjustment of assets held for sale | 5 | |||
Valuation allowance on deferred tax assets | 1 | 47 | 5 | |
Nondeductible expenses | 17 | 1 | 3 | |
Global intangible low-taxed income (GILTI) | 3 | |||
Foreign-derived intangible income (FDII) | (1) | |||
Other | 1 | (2) | 1 | |
Income tax (benefit) expense | $ (2) | $ 6 | $ (80) | $ 11 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Accounting provisions | $ 36 | $ 30 |
Net operating loss carryforwards and other deductions | 48 | 56 |
Pension and other employee future benefit plans | 18 | |
Inventory | 11 | |
Tax credits | 30 | 41 |
Other | 19 | 12 |
Gross deferred tax assets | 133 | 168 |
Valuation allowance | (58) | (64) |
Net deferred tax assets | 75 | 104 |
Property, plant and equipment | (458) | (352) |
Intangible assets | (51) | (6) |
Pension and other employee future benefit plans | (23) | |
Inventory | (10) | |
Outside basis difference | (12) | |
Other | (24) | (31) |
Total deferred tax liabilities | (578) | (389) |
Net deferred tax liabilities | (503) | (285) |
Deferred income taxes and other | $ (503) | $ (285) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 23 | $ 28 | $ 28 |
Additions based on tax positions related to current year | 2 | 1 | 3 |
Additions for tax positions of prior years | 1 | 2 | |
Expirations of statutes of limitations | (4) | (7) | (6) |
Interest | 1 | 1 | |
Balance at end of year | $ 22 | $ 23 | $ 28 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 359 | $ 286 |
Raw materials | 110 | 91 |
Operating and maintenance supplies | 194 | 185 |
Total inventories | $ 663 | $ 562 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
LIFO Inventories | $ 213 | $ 220 |
Excess amount of inventory if valued under FIFO instead of LIFO | $ 52 | |
Difference in cost of inventory below stated LIFO value | (1) | |
Cost Of Sales Pre Tax Charge | $ 6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Property Plant And Equipment [Line Items] | |||
Machinery and equipment | $ 1,894 | $ 7,147 | |
Buildings and improvements | 199 | 888 | |
Timberlands | [1] | 142 | 192 |
Assets under construction | 311 | 82 | |
Property, plant and equipment, gross | 2,546 | 8,309 | |
Less: Accumulated depreciation | (22) | (6,389) | |
Net property, plant and equipment | $ 2,524 | $ 1,920 | |
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense related to property, plant and equipment | $ 22 | $ 181 | $ 207 | $ 215 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Lease Description Line Items | |
Leases, terminable lease term | 1 year |
Minimum [Member] | |
Lessee Lease Description Line Items | |
Leases, remaining lease term | 1 year |
Maximum [Member] | |
Lessee Lease Description Line Items | |
Leases, remaining lease term | 11 years |
Leases, extendable lease term | 10 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 4 | $ 17 | $ 22 | $ 21 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 4 | $ 20 | $ 23 | $ 21 |
Operating cash flows from finance leases | 1 | 1 | ||
Financing cash flows from finance leases | 1 | 1 | 1 | |
Right-of-use assets obtained in exchange for lease liabilities: | ||||
Operating leases | $ 3 | $ 12 | $ 24 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
Operating lease right-of-use assets | $ 48 | $ 59 |
Lease liabilities due within one year | 19 | 20 |
Operating lease liabilities (NOTE 11) | 36 | 50 |
Operating lease liabilities, total | 55 | 70 |
Finance leases | ||
Property, plant and equipment | 5 | 4 |
Accumulated depreciation | (2) | (2) |
Property, plant and equipment, net | 3 | $ 2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | |
Long-term debt due within one year | 1 | $ 1 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Liabilities Current | |
Long-term debt | 3 | $ 4 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesNoncurrent | |
Finance leases liabilities, total | $ 4 | $ 5 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 3 months 18 days | 4 years 8 months 12 days |
Finance leases | 6 years 9 months 18 days | 7 years 10 months 24 days |
Weighted-average discount rate | ||
Operating leases | 3.20% | 4.40% |
Finance leases | 4.80% | 8.40% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases, 2022 | $ 17 | |
Operating leases, 2023 | 16 | |
Operating leases, 2024 | 12 | |
Operating leases, 2025 | 6 | |
Operating leases, 2026 | 3 | |
Operating leases, Thereafter | 5 | |
Operating leases, Total lease payments | 59 | |
Operating leases, Imputed interest | 4 | |
Operating leases, Total lease liabilities | $ 55 | $ 70 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 208 | $ 36 |
Accumulated amortization | (1) | (17) |
Finite lived intangible assets net | 207 | 19 |
Total, Gross carrying amount | 208 | 46 |
Intangible assets, net of amortization | $ 207 | 29 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 4 | |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 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 | $ 7 | 3 |
Accumulated amortization | (1) | |
Finite lived intangible assets net | 7 | 2 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 171 | 24 |
Accumulated amortization | (1) | (10) |
Finite lived intangible assets net | $ 170 | 14 |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 15 years | |
Trade Names | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 20 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 30 | |
Finite lived intangible assets net | $ 30 | |
Technology [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 8 | |
Accumulated amortization | (5) | |
Finite lived intangible assets net | 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 | |
Accumulated amortization | $ (1) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Amortization expense | $ 1,000,000 | $ 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, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2022 | $ 13 |
Amortization expense related to intangible assets, 2023 | 13 |
Amortization expense related to intangible assets, 2024 | 13 |
Amortization expense related to intangible assets, 2025 | 13 |
Amortization expense related to intangible assets, 2026 | $ 13 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Other assets | $ 248 | $ 152 |
Other | 25 | 37 |
Other Assets, Noncurrent | $ 273 | $ 189 |
Closure and Restructuring Cos_3
Closure and Restructuring Costs and Impairment of Long-Lived Assets - Additional Information (Detail) $ in Millions | Sep. 27, 2019Machine | Dec. 31, 2021USD ($) | Nov. 30, 2021USD ($) | Dec. 31, 2021USD ($)EmployeesT | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | $ 17 | $ 99 | $ 22 | |||
Asset conversion costs (NOTE 14) | 27 | |||||
Severance and Termination Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Provision for closure and restructuring costs | $ 21 | $ 21 | ||||
Severance and Termination Costs [Member] | Accounts Payable and Accrued Liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve, current | 12 | 12 | ||||
Severance and Termination Costs [Member] | Other Noncurrent Liabilities | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Restructuring reserve, Non-current | 9 | 9 | ||||
Severance and Termination Costs [Member] | Pulp And Paper | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Provision for closure and restructuring costs | 2 | 2 | ||||
Transaction 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 | ||||
Cost reduction program [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Reduction of annual uncoated freesheet paper capacity | T | 721,000 | |||||
Expected workforce reduction | Employees | 750 | |||||
Accelerated depreciation | 9 | 136 | ||||
Other restructuring costs | (1) | |||||
Other restructuring costs | 17 | |||||
Severance and termination costs | $ 99 | |||||
Ashdown, Arkansas Mill and Port Huron, Michigan Mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | 22 | |||||
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 | |||||
Conversion Of Kingsport Tennessee Mill | Kingsport Tennessee And Port Huron Michigan Mills Ashdown Arkansas Mill Ridgefields Tennessee | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Forecasted production of high quality recycled linerboard and medium | T | 600,000 | |||||
Forecasted conversion costs | $ 350 | |||||
Asset conversion costs (NOTE 14) | $ 3 | $ 27 |
Closure and Restructuring Cos_4
Closure and Restructuring Costs and Impairment of Long-Lived Assets - Activity in Closure and Restructuring Liability (Detail) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||||
Additions | $ 17 | $ 99 | $ 22 | |
Closure And Restructuring Liability [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Balance at beginning of year | $ 28 | $ 28 | 12 | |
Additions | 21 | 48 | ||
Payments | (28) | (32) | ||
Balance at end of year | $ 21 | $ 28 | $ 12 |
Trade and Other Payables - Comp
Trade and Other Payables - Components of Trade and Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 297 | $ 242 |
Payroll-related accruals | 131 | 98 |
Other accruals | 115 | 116 |
Trade and other payables | $ 543 | $ 456 |
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | $ (304) | |||
Other comprehensive income | 149 | $ 89 | $ 74 | |
Ending balance | $ 24 | (304) | ||
Balance | 2,260 | 2,376 | 2,538 | |
Balance | 1,539 | 2,260 | 2,376 | |
Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 171 | 68 | ||
Amounts reclassified from Accumulated other comprehensive loss | (22) | 21 | ||
Other comprehensive income | 149 | 89 | ||
Elimination of Predecessor's Accumulated other comprehensive loss | 155 | |||
Predecessors | Natural Gas Swap Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 22 | 1 | ||
Predecessors | Currency Options [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 3 | |||
Predecessors | Foreign Exchange Forward Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 2 | 23 | ||
Predecessors | Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 57 | 63 | ||
Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 24 | |||
Other comprehensive income | 24 | |||
Balance | 1,539 | |||
Successors | Natural Gas Swap Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | (3) | |||
Successors | Foreign Exchange Forward Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 3 | |||
Successors | Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 8 | |||
Net Gain (Loss) [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 90 | (22) | ||
Net Gain (Loss) [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 16 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (112) | (207) | (197) | |
Other comprehensive (loss) income before reclassifications | 85 | (21) | ||
Amounts reclassified from Accumulated other comprehensive loss | 10 | 11 | ||
Other comprehensive income | 95 | (10) | ||
Ending balance | (112) | (207) | (197) | |
Elimination of Predecessor's Accumulated other comprehensive loss | 112 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 0 | |||
Other comprehensive (loss) income before reclassifications | 17 | |||
Other comprehensive income | 17 | |||
Ending balance | 17 | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net Gain (Loss) [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 85 | (21) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net Gain (Loss) [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 17 | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 12 | 8 | 11 | |
Other comprehensive (loss) income before reclassifications | 5 | (1) | ||
Amounts reclassified from Accumulated other comprehensive loss | (1) | (2) | ||
Other comprehensive income | 4 | (3) | ||
Ending balance | 12 | 8 | 11 | |
Elimination of Predecessor's Accumulated other comprehensive loss | (12) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 0 | |||
Other comprehensive (loss) income before reclassifications | (1) | |||
Other comprehensive income | (1) | |||
Ending balance | (1) | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Net Gain (Loss) [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 5 | (1) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Net Gain (Loss) [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | (1) | |||
Foreign Currency Items [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | (82) | (139) | (202) | |
Other comprehensive (loss) income before reclassifications | 57 | 63 | ||
Other comprehensive income | 57 | 63 | ||
Ending balance | (82) | (139) | (202) | |
Elimination of Predecessor's Accumulated other comprehensive loss | 82 | |||
Foreign Currency Items [Member] | Predecessors | Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 57 | 63 | ||
Foreign Currency Items [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 0 | |||
Other comprehensive (loss) income before reclassifications | 8 | |||
Other comprehensive income | 8 | |||
Ending balance | 8 | 0 | ||
Foreign Currency Items [Member] | Successors | Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 8 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (304) | (393) | (467) | |
Balance | (304) | (393) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (155) | (304) | (393) | |
Balance | (155) | (304) | (393) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | 0 | |||
Balance | 24 | 0 | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Predecessors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 27 | 34 | (5) | |
Other comprehensive (loss) income before reclassifications | 24 | 27 | ||
Amounts reclassified from Accumulated other comprehensive loss | (31) | 12 | ||
Other comprehensive income | (7) | 39 | ||
Ending balance | 27 | 34 | $ (5) | |
Elimination of Predecessor's Accumulated other comprehensive loss | (27) | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Predecessors | Natural Gas Swap Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 22 | 1 | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Predecessors | Currency Options [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 3 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Predecessors | Foreign Exchange Forward Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | 2 | $ 23 | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Successors | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning balance | 0 | |||
Ending balance | 0 | $ 0 | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Successors | Natural Gas Swap Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | (3) | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Successors | Foreign Exchange Forward Contracts [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Other comprehensive (loss) income before reclassifications | $ 3 |
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 | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings from discontinued operations, net of taxes (NOTE 3) | $ 1 | $ 26 | $ 24 | $ 18 | |
(Loss) earnings before income taxes and equity loss | (7) | (43) | (228) | 79 | |
Tax (expense) benefit | $ 2 | (6) | 80 | (11) | |
Net (loss) earnings | (23) | $ (23) | (127) | 84 | |
Other Post-Retirement Benefit Plans [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial gain (loss) | (1) | (1) | (1) | ||
Amortization of prior year service (cost) credit | (1) | (1) | (1) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
(Loss) earnings before income taxes and equity loss | 39 | (16) | (11) | ||
Tax (expense) benefit | (8) | 4 | 3 | ||
Net (loss) earnings | 31 | (12) | (8) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of Sales | 10 | (10) | (4) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options and Forwards [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of Sales | 38 | (6) | (7) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Net Investment Hedge | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings from discontinued operations, net of taxes (NOTE 3) | (9) | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial gain (loss) | (7) | (12) | (40) | ||
Amortization of prior year service (cost) credit | (1) | (2) | (5) | ||
Earnings from discontinued operations, net of taxes (NOTE 3) | (4) | ||||
(Loss) earnings before income taxes and equity loss | (12) | (14) | (45) | ||
Tax (expense) benefit | 2 | 3 | 12 | ||
Net (loss) earnings | (10) | (11) | (33) | ||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial gain (loss) | 1 | 1 | 1 | ||
Amortization of prior year service (cost) credit | 1 | 1 | 1 | ||
(Loss) earnings before income taxes and equity loss | 2 | 2 | 2 | ||
Tax (expense) benefit | (1) | (1) | |||
Net (loss) earnings | $ 1 | $ 2 | $ 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Non-cash pension settlement charge | $ 2 | $ 30 |
Long-Term Debt - Components of
Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 07, 2022 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
ABL Revolving Credit Facility | $ 115 | ||
Finance lease obligations | 4 | $ 5 | |
Long-term debt | 1,940 | 1,098 | |
Less: Unamortized debt issuance costs | 38 | 6 | |
Less: Due within one year | 259 | 13 | |
Long-term debt, excluding current maturities | $ 1,643 | 1,079 | |
4.4% Notes [Member] | 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2022 | ||
Par Amount | $ 300 | ||
Unsecured notes | 300 | ||
6.25% Notes [Member] | 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2042 | ||
Par Amount | $ 250 | ||
Unsecured notes | $ 264 | $ 116 | 249 |
6.75% Notes [Member] | 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2044 | ||
Par Amount | $ 250 | ||
Unsecured notes | 262 | $ 150 | 250 |
6.75% Notes [Member] | 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Par Amount | 775 | ||
Senior secured notes | $ 775 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2025 | ||
Term Loan | $ 294 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2026 | ||
First Lien Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2028 | ||
Par Amount | $ 525 | ||
First Lien Term Loan | $ 520 | ||
Senior Secured Notes [Member] | 6.75% Notes [Member] | 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2028 | ||
Finance Lease Obligations And Other | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2021 | ||
Finance Lease Obligations And Other | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Maturity | 2028 |
Long-Term Debt - Components o_2
Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) | Dec. 31, 2021 | Apr. 08, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Long-term debt, interest rate | 4.40% | ||
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% | |
6.75% Notes [Member] | Senior Secured 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, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2022, Long-term debt | $ 373 | |
2023, Long-term debt | 26 | |
2024, Long-term debt | 26 | |
2025, Long-term debt | 26 | |
2026, Long-term debt | 141 | |
Thereafter, Long-term debt | 1,323 | |
Long-term debt | 1,915 | |
Total payments, Long-term debt | 1,915 | |
2022, Finance leases and other | 1 | |
2023, Finance leases and other | 1 | |
2024, Finance leases and other | 1 | |
2025, Finance leases and other | 1 | |
2026, Finance leases and other | 1 | |
Thereafter, Finance leases and other | 1 | |
Finance leases and other obligations repayment | 6 | |
Less: Amounts representing interest, Finance leases and other | 2 | |
Total payments, Finance leases and other | $ 4 | $ 5 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jan. 07, 2022 | Jan. 03, 2022 | Apr. 08, 2021 | Mar. 11, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 05, 2020 |
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 4.40% | ||||||||
Redemption price percentage | 100.00% | ||||||||
Principal amount | $ 300,000,000 | ||||||||
Make-whole premium | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | ||||||
Unamortized debt issuance cost | (38,000,000) | $ (6,000,000) | |||||||
Repayments of debt | 606,000,000 | 7,000,000 | $ 1,000,000 | ||||||
ABL revolving credit facility | $ 115,000,000 | ||||||||
Interest on receivables securitization | 1,000,000 | 1,000,000 | 2,000,000 | ||||||
Purchase price of existing Domtar notes | 101.00% | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 700,000,000 | ||||||||
Borrowings | 0 | ||||||||
Letters of credit outstanding | 54,000,000 | ||||||||
Receivables Securitization [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings | 0 | ||||||||
ABL revolving credit facility | 150,000,000 | ||||||||
Interest on receivables securitization | $ 1,000,000 | 1,000,000 | $ 2,000,000 | ||||||
Term Loan Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | May 5, 2025 | ||||||||
Par Amount | $ 300,000,000 | ||||||||
Borrowings outstanding | $ 294,000,000 | ||||||||
Unamortized debt issuance cost | $ 2,000,000 | ||||||||
Repayments of debt | $ 294,000,000 | ||||||||
Asset Based Lending Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Covenant Description | The ABL Revolving Credit Facility requires the maintenance of a fixed charge coverage of 1.00 to 1.00 at the end of each fiscal quarter for the prior twelve month period when specified excess availability is less than the greater of $35 million and 10% of the lesser of the borrowing base and maximum borrowing capacity. This covenant did not apply at December 31, 2021. | ||||||||
Asset Based Lending Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||
First Lien Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument maturity date | Nov. 30, 2028 | ||||||||
Par Amount | $ 525,000,000 | ||||||||
Delayed Draw Term Loan | $ 250,000,000 | ||||||||
Percentage of line of credit facility periodic payment | 1.00% | ||||||||
Percentage of line of credit facility periodic payment thereafter | 5.00% | ||||||||
Percentage of net cash proceeds of certain assets for term loan prepayments | 100.00% | ||||||||
Percentage of net cash proceeds from certain debt issuance for term loan prepayments | 100.00% | ||||||||
Percentage of excess cash flow for term loan prepayments | 50.00% | ||||||||
Asset Based Lending Facility [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Par Amount | $ 127,000,000 | ||||||||
Drawings under the term loan facility | 652,000,000 | ||||||||
Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Par Amount | 775,000,000 | ||||||||
Restricted cash | $ 250,000,000 | ||||||||
Debt instrument maximum net proceeds percentage | 100.00% | ||||||||
Senior Secured Notes [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Secured Notes were redeemed | 133,000,000 | ||||||||
Senior secured notes | 642,000,000 | ||||||||
6.25% Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 6.25% | 6.25% | |||||||
6.25% Notes [Member] | 2042 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Par Amount | $ 250,000,000 | ||||||||
Unsecured notes | $ 116,000,000 | $ 264,000,000 | $ 249,000,000 | ||||||
6.25% Notes [Member] | Subsequent Event [Member] | 2042 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 6.25% | 6.25% | |||||||
Debt Instrument, Face Amount | $ 134,000,000 | ||||||||
6.75% Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 6.75% | 6.75% | |||||||
6.75% Notes [Member] | 2044 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Par Amount | $ 250,000,000 | ||||||||
Debt Instrument, Face Amount | $ 100,000,000 | ||||||||
Unsecured notes | $ 150,000,000 | $ 262,000,000 | $ 250,000,000 | ||||||
6.75% Notes [Member] | Subsequent Event [Member] | 2044 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, interest rate | 6.75% | 6.75% |
Other Liabilities and Deferre_3
Other Liabilities and Deferred Credits - Components of Other Liabilities and Deferred Credits (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Liability - other post-retirement benefit plans | $ 55 | $ 62 |
Pension liability - defined benefit pension plans | 59 | 124 |
Pension liability - multiemployer plan withdrawal | 38 | 40 |
Other | 64 | 84 |
Other Liabilities, Noncurrent | $ 216 | $ 310 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 18, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 01, 2021 | Nov. 30, 2021 |
Shareholders Equity [Line Items] | ||||||
Common Stock, Shares outstanding | 100 | 55,194,538 | 56,880,910 | 100 | 50,379,090 | |
Common stock, par value | $ 0.01 | $ 0.01 | ||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | ||||
Dividend per share | $ 0.455 | |||||
Dividends paid | $ 25 | |||||
Payment date | Apr. 15, 2020 | |||||
Record date | Apr. 2, 2020 | |||||
Stock repurchased, shares | 5,060,865 | 1,798,306 | ||||
Stock repurchased, average price | $ 46.96 | $ 33.05 | ||||
Stock repurchased, value | $ 238 | $ 59 | $ 219 | |||
Paper Excellence [Member] | ||||||
Shareholders Equity [Line Items] | ||||||
Business Acquisition, Share Price | $ 55.50 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 01, 2021 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||||
Balance at beginning of period | 50,379,090 | 55,194,538 | 56,880,910 | ||
Shares cancelled | (50,379,090) | ||||
Treasury stock, Number of shares | (4,815,448) | (1,686,372) | |||
Common stock, shares issued | 100 | 65,001,104 | 100 | ||
Balance at end of period | 100 | 50,379,090 | 55,194,538 | ||
Balance at beginning of period | $ 1 | $ 1 | $ 1 | ||
Shares cancelled | $ (1) | ||||
Treasury stock | $ 0 | $ 0 | 0 | ||
Common stock $0.01 par value; 100 shares issued and outstanding at December 31, 2021 | $ 1 |
Shareholders' Equity - Change_2
Shareholders' Equity - Changes in Number of Outstanding Common Stock and Their Aggregate Stated Value (Parenthetical) (Detail) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Stock repurchased, shares | 5,060,865 | 1,798,306 |
Treasury stock, shares reissued | 245,417 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies [Line Items] | |||||
Capital expenditures for environmental matters | $ 1,000,000 | $ 4,000,000 | $ 2,000,000 | $ 19,000,000 | |
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 | $ 3,000,000 | $ 37,000,000 | $ 60,000,000 | $ 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, 2021 | Dec. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at beginning of year | $ 42 | $ 31 |
Additions and other changes | 3 | 14 |
Environmental spending | (4) | (3) |
Balance at end of year | $ 41 | $ 42 |
Commitments and Contingencies_3
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 41 | $ 42 | $ 31 |
Accounts Payable and Accrued Liabilities | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | 8 | ||
Other Noncurrent Liabilities | |||
Environmental Remediation Obligations [Line Items] | |||
Accrual For Environmental Loss Contingencies | $ 33 |
Commitments and Contingencies_4
Commitments and Contingencies - Anticipated Undiscounted Payments (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Environmental Remediation Obligations [Abstract] | |
2022 | $ 8 |
2023 | 2 |
2024 | 6 |
2025 | 2 |
2026 | 2 |
Thereafter | 56 |
Total | $ 76 |
Commitments and Contingencies_5
Commitments and Contingencies - Minimum Future Payments under Other Commercial Commitments (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Environmental Remediation Obligations [Abstract] | |
Other commercial commitments, 2022 | $ 233 |
Other commercial commitments, 2023 | 12 |
Other commercial commitments, 2024 | 9 |
Other commercial commitments, Total | $ 254 |
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, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer | |
Derivative [Line Items] | |||
Number of major customers | Customer | 2 | 2 | |
C A D Denominated Notional Contractual Value For Two Thousand And Twenty Two | |||
Derivative [Line Items] | |||
Percentage of forecasted net exposures under contracts | 62.00% | ||
C A D Denominated Notional Contractual Value For Two Thousand And Twenty Three | |||
Derivative [Line Items] | |||
Percentage of forecasted net exposures under contracts | 18.00% | ||
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 19 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 | Nov. 30, 2021 | ||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 24 months | ||
Natural Gas Commodity Contracts Year Two Thousand Twenty Two | |||
Derivative [Line Items] | |||
Percentage of forecasted purchases under derivative contracts | 27.00% | ||
Natural Gas Commodity Contracts Year Two Thousand Twenty Three | |||
Derivative [Line Items] | |||
Percentage of forecasted purchases under derivative contracts | 10.00% | ||
Foreign Currency Investment [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 3 years | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ | $ 130 | $ 104 | |
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 | 28.00% | 29.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Total Assets | $ 26 | $ 48 |
Total Liabilities | 2 | 6 |
Long-term debt | 1,682 | 1,216 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | |
Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 11 | |
Long Term Debt Due Within One Year | ||
Derivative [Line Items] | ||
Long-term debt | 259 | 13 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 18 | 31 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Currency Derivatives [Member] | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | 16 | |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Fair Value, Inputs, Level 1 | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 5 | |
Fair Value, Inputs, Level 1 | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 11 | |
Fair Value, Inputs, Level 2 | ||
Derivative [Line Items] | ||
Total Assets | 26 | 48 |
Total Liabilities | 2 | 6 |
Long-term debt | 1,682 | 1,216 |
Fair Value, Inputs, Level 2 | Long Term Debt Due Within One Year | ||
Derivative [Line Items] | ||
Long-term debt | 259 | 13 |
Fair Value, Inputs, Level 2 | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 18 | 31 |
Fair Value, Inputs, Level 2 | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Fair Value, Inputs, Level 2 | Currency Derivatives [Member] | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | 16 | |
Fair Value, Inputs, Level 2 | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | |
Natural Gas Swap Contracts [Member] | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | 2 | 1 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 3 | |
Natural Gas Swap Contracts [Member] | Fair Value, Inputs, Level 2 | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 6 | |
Natural Gas Swap Contracts [Member] | Fair Value, Inputs, Level 2 | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | |
Natural Gas Swap Contracts [Member] | Fair Value, Inputs, Level 2 | Other Assets | ||
Derivative [Line Items] | ||
Total Assets | $ 2 | 1 |
Natural Gas Swap Contracts [Member] | Fair Value, Inputs, Level 2 | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 3 | |
Equity Swap | Other Assets | ||
Derivative [Line Items] | ||
Equity swap contracts | 2 | |
Equity Swap | Fair Value, Inputs, Level 1 | Other Assets | ||
Derivative [Line Items] | ||
Equity swap contracts | $ 2 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Less: Due within one year | $ 259 | $ 13 |
The carrying value of the Company's long-term debt | 1,643 | 1,079 |
Long Term Debt Due Within One Year | ||
Derivative [Line Items] | ||
Less: Due within one year | $ 259 | $ 13 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 300 | $ 3,368 | $ 3,415 | $ 4,119 | |
Operating income (loss) | (11) | (187) | 154 | ||
Interest expense, net (NOTE 7) | 10 | 54 | 58 | 52 | |
Non-service components of net periodic benefit cost | (22) | (17) | 23 | ||
(Loss) earnings before income taxes and equity loss | (7) | (43) | (228) | 79 | |
Income tax (benefit) expense (NOTE 8) | (2) | 6 | (80) | 11 | |
Equity method investment loss, net of taxes | 3 | 2 | |||
(Loss) earnings from continuing operations | (49) | (151) | 66 | ||
Earnings from discontinued operations, net of taxes | 1 | 26 | 24 | 18 | |
Net (loss) earnings | (23) | $ (23) | (127) | 84 | |
Successors | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 300 | ||||
Operating income (loss) | 1 | ||||
Interest expense, net (NOTE 7) | 10 | ||||
Non-service components of net periodic benefit cost | (2) | ||||
(Loss) earnings before income taxes and equity loss | (7) | ||||
Income tax (benefit) expense (NOTE 8) | (2) | ||||
(Loss) earnings from continuing operations | (5) | ||||
Earnings from discontinued operations, net of taxes | 1 | ||||
Net (loss) earnings | (4) | $ (4) | |||
Operating Segments [Member] | Communication Paper [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,834 | 1,968 | 2,571 | ||
Operating Segments [Member] | Specialty and Packaging Paper [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 538 | 575 | 637 | ||
Operating Segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 996 | 872 | 911 | ||
Operating Segments [Member] | Pulp And Paper | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 157 | (153) | 201 | ||
Operating Segments [Member] | Successors | Communication Paper [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 155 | ||||
Operating Segments [Member] | Successors | Specialty and Packaging Paper [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 49 | ||||
Operating Segments [Member] | Successors | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 96 | ||||
Operating Segments [Member] | Successors | Pulp And Paper | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | 4 | ||||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | $ (168) | $ (34) | $ (47) | ||
Corporate [Member] | Successors | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss) | $ (3) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020 | |
Canada Emergency Wage Subsidy [Member] | Reduction of Costs [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 7 | $ 9 | |
Canada Emergency Wage Subsidy [Member] | Cost of Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 6 | 7 | |
Canada Emergency Wage Subsidy [Member] | Selling, General And Administrative [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 1 | $ 2 | |
Customer Concentration Risk [Member] | Sales [Member] | Largest Customer [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, 2021 | Dec. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 4,854 | $ 4,856 |
Assets held for sale | 287 | 1,329 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 4,567 | 3,527 |
Operating Segments [Member] | Pulp And Paper | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | 4,051 | 3,012 |
Corporate [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Consolidated assets | $ 516 | $ 515 |
Segment Disclosures - Additions
Segment Disclosures - Additions to Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Additions to property, plant and equipment | $ 43 | $ 270 | $ 160 | $ 264 |
Discontinued Operations | 1 | 15 | 37 | 53 |
Add: Change in payables on capital projects | (2) | (2) | 15 | (9) |
Consolidated additions to property, plant and equipment per Consolidated Statements of Cash Flows | 41 | 268 | 175 | 255 |
Operating Segments [Member] | Pulp And Paper | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Additions to property, plant and equipment | $ 42 | 251 | 120 | 208 |
Corporate [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Additions to property, plant and equipment | $ 4 | $ 3 | $ 3 |
Segment Disclosures - Geographi
Segment Disclosures - Geographic Information on Sales (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | $ 300 | $ 3,368 | $ 3,415 | $ 4,119 |
United States [Member] | ||||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | 232 | 2,560 | 2,691 | 3,219 |
Canada [Member] | ||||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | 27 | 327 | 324 | 419 |
Europe [Member] | ||||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | 13 | 157 | 116 | 149 |
Asia [Member] | ||||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | 26 | 315 | 203 | 207 |
Other Foreign Countries [Member] | ||||
Schedule Of Net Sales By Geographical Segment [Line Items] | ||||
Sales | $ 2 | $ 9 | $ 81 | $ 125 |
Segment Disclosures - Long-Live
Segment Disclosures - Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 2,779 | $ 2,008 |
United States [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | 2,069 | 1,423 |
Canada [Member] | ||
Schedule Of Assets By Geographical Segment [Line Items] | ||
Long-lived assets | $ 710 | $ 585 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Doubtful Accounts - Accounts Receivable [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | $ 4 | $ 6 | $ 4 | $ 3 |
Charged to income | 0 | (2) | 4 | 1 |
Deductions from reserve | 0 | 0 | (2) | 0 |
Balance at end of period | 4 | 4 | 6 | 4 |
Valuation Allowance on Deferred Tax Assets [Member] | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of period | 58 | 64 | 17 | 12 |
Charged to income | 0 | 1 | 47 | 5 |
Deductions from reserve | 0 | (7) | 0 | 0 |
Balance at end of period | $ 58 | $ 58 | $ 64 | $ 17 |