Domtar (UFS) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2022shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
No Trading Symbol Flag	true
Entity Registrant Name	DOMTAR CORPORATION
Entity Central Index Key	0001381531
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	0
Entity File Number	001-33164
Entity Tax Identification Number	20-5901152
Entity Address, Address Line One	234 Kingsley Park Drive
Entity Address, City or Town	Fort Mill
Entity Address, State or Province	SC
Entity Address, Postal Zip Code	29715
City Area Code	803
Local Phone Number	802-7500
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	None

Consolidated Statements of Earn

Consolidated Statements of Earnings (Loss) and Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Sales	$ 1,010	$ 871
Operating expenses
Cost of sales, excluding depreciation and amortization	832	751
Depreciation and amortization	66	50
Selling, general and administrative	69	64
Impairment of long-lived assets (NOTE 10)		6
Closure and restructuring costs (NOTE 10)		3
Asset conversion costs (NOTE 10)	13	8
Transaction costs (NOTE 4)	3
Other operating loss (income), net	2	(2)
Operating expenses	985	880
Operating income (loss) from continuing operations	25	(9)
Interest expense, net	21	15
Non-service components of net periodic benefit cost (NOTE 6)	(9)	(6)
Earnings (loss) before income taxes	13	(18)
Income tax expense (benefit) (NOTE 7)	3	(3)
Earnings (loss) from continuing operations	10	(15)
Earnings (loss) from discontinued operations, net of taxes (NOTE 3)	13	(14)
Net earnings (loss)	23	(29)
Net derivative gains on cash flow hedges:
Net gains arising during the period, net of tax of $(5) (2021 – $(3))	17	9
Less: Reclassification adjustment for gains included in net earnings (loss), net of tax of nil (2021 – $(1))	(2)	(2)
Foreign currency translation adjustments	13	72
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of nil (2021 – $(1))		5
Other comprehensive income	28	84
Comprehensive income	$ 51	$ 55

Consolidated Statements of Ea_2

Consolidated Statements of Earnings (Loss) and Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net (losses) gains arising during the period, tax	$ (5)	$ (3)
Reclassification adjustment for (gains) losses included in net earnings (loss), net, tax	$ 0	(1)
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax		$ (1)

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents, including restricted cash of nil and $250	$ 54	$ 286
Receivables, less allowances of $4 and $4	490	463
Inventories (NOTE 8)	680	663
Prepaid expenses	52	44
Income and other taxes receivable	61	59
Assets held for sale (NOTE 3)	330	287
Total current assets	1,667	1,802
Property, plant and equipment, net	2,444	2,524
Operating lease right-of-use assets (NOTE 9)	51	48
Intangible assets, net	219	207
Other assets	295	273
Total assets	4,676	4,854
Current liabilities
Trade and other payables	550	543
Income and other taxes payable	14	11
Operating lease liabilities due within one year (NOTE 9)	19	19
Long-term debt due within one year	7	259
Liabilities held for sale (NOTE 3)	43	63
Total current liabilities	633	895
Long-term debt	1,682	1,643
Operating lease liabilities (NOTE 9)	35	36
Deferred income taxes and other	523	525
Other liabilities and deferred credits	213	216
Commitments and contingencies (NOTE 13)
Shareholders' equity
Additional paid-in capital	1,555	1,555
Deficit	(17)	(40)
Accumulated other comprehensive income	52	24
Total shareholders' equity	1,590	1,539
Total liabilities and shareholders' equity	$ 4,676	$ 4,854

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Restricted cash		$ 250
Receivables, allowances	$ 4	$ 4
Common stock, par value	$ 0.01	$ 0.01
Common Stock, Shares outstanding	100	100
Common stock, shares issued	100	100

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]
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	(1)		(1)
Stock-based compensation, net of tax, shares		100,000
Net earnings (loss)	(29)			(29)
Net derivative gains on cash flow hedges:
Net gains arising during the period, net of tax of $(5) (2021 – $(3))	9				9
Less: Reclassification adjustment for gains included in net earnings (loss), net of tax of nil (2021 – $(1))	(2)				(2)
Foreign currency translation adjustments	72				72
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax	5				5
Stock repurchase	(223)		(223)
Stock repurchase, shares		(5,100,000)
Balance at Mar. 31, 2021	2,091	$ 1	1,493	817	(220)
Balance, Shares at Mar. 31, 2021		50,200,000
Balance at Dec. 31, 2021	1,539		1,555	(40)	24
Net earnings (loss)	23			23
Net derivative gains on cash flow hedges:
Net gains arising during the period, net of tax of $(5) (2021 – $(3))	17				17
Less: Reclassification adjustment for gains included in net earnings (loss), net of tax of nil (2021 – $(1))	(2)				(2)
Foreign currency translation adjustments	13				13
Balance at Mar. 31, 2022	$ 1,590		$ 1,555	$ (17)	$ 52

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Stockholders Equity [Abstract]
Net gains (losses) arising during the period, tax	$ (5)	$ (3)
Reclassification adjustment for losses (gains) included in net earnings loss, net, tax	$ 0	(1)
Change in unrecognized (losses) gains and prior service cost related to pension and post-retirement benefit plans, tax		$ (1)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net earnings (loss)	$ 23	$ (29)
Adjustments to reconcile net earnings (loss) to cash flows from operating activities
Depreciation and amortization	66	64
Deferred income taxes and tax uncertainties (NOTE 7)	2	(4)
Impairment of long-lived assets (NOTE 10)		6
Net loss on disposition of discontinued operations (NOTE 3)		32
Stock-based compensation expense		2
Other	(4)	2
Changes in assets and liabilities, excluding the effect of sale of business
Receivables	(21)	(68)
Inventories	(6)	32
Prepaid expenses	15	3
Trade and other payables	(21)	(6)
Income and other taxes	5	4
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense	(7)	(3)
Other assets and other liabilities	(3)	(2)
Cash flows from operating activities	49	33
Investing activities
Additions to property, plant and equipment	(83)	(51)
Proceeds from disposals of property, plant and equipment	14
Proceeds from sale of business, net of cash disposed (NOTE 3)		897
Cash flows (used for) provided from investing activities	(69)	846
Financing activities
Stock repurchase		(223)
Net change in bank indebtedness		4
Borrowings under revolving credit facility	35
Issuance of long-term debt, net of debt issue costs	127
Repayments of long-term debt	(372)	(294)
Other	(2)	(3)
Cash flows used for financing activities	(212)	(516)
Net (decrease) increase in cash and cash equivalents	(232)	363
Impact of foreign exchange on cash		(1)
Cash and cash equivalents at beginning of period	286	309
Cash and cash equivalents at end of period	54	671
Supplemental cash flow information
Interest	27	18
Income taxes	$ 2	$ (7)

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	NOTE 1. _________________ BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. Results for the first three months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the Securities and Exchange Commission. The December 31, 2021 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. On November 30, 2021, Paper Excellence completed the acquisition of all the outstanding common shares of Domtar Corporation 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.” 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022, 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	3 Months Ended
	Mar. 31, 2022
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 (loss) from discontinued operations, net of taxes on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income 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 (loss) from discontinued operations, net of taxes on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income for each period presented. The Consolidated Statements of Cash Flows were not reclassified to reflect discontinued operations. Personal Care was previously disclosed as a separate reportable business segment. Major components of earnings (loss) from discontinued operations: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Sales 88 227 Operating expenses Cost of sales, excluding depreciation and amortization 67 169 Depreciation and amortization — 14 Selling, general and administrative — 24 Closure and restructuring costs — 1 Transaction costs 3 — Other operating loss, net — 1 70 209 Operating income 18 18 Net loss on disposition of discontinued operations — 32 Earnings (loss) from discontinued operations before income taxes 18 (14 ) Income tax expense 5 — Net earnings (loss) from discontinued operations 13 (14 ) Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At March 31, December 31, 2022 2021 $ $ Assets Receivables 56 50 Inventories 73 82 Long-term assets 201 155 Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 330 287 Liabilities Trade and other payables 32 26 Income and other taxes payable 1 — Long-term debt due within one year 1 1 Long-term debt 4 4 Deferred income taxes and other — 27 Other liabilities and deferred credits 5 5 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 43 63 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheets. Cash Flows from Discontinued Operations: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Cash flows from operating activities 30 15 Cash flows used for investing activities (1 ) (4 )

Acquisition of Business

Acquisition of Business	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Acquisition of Business	NOTE 4. ACQUISITION OF BUSINESS 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. Purchase adjustments were made related to events or circumstances existing at the acquisition date. Fair value of net assets acquired at the date of acquisition Receivables $ 513 Inventories 646 Prepaid expenses 50 Income and other taxes receivable 54 Property, plant and equipment 2,404 Intangible assets 221 Customer relationships 170 Trade names 30 Water rights 21 Operating lease right-of-use assets 53 Other assets 266 Assets held for sale 331 Total assets 4,538 Less: Assumed Liabilities Trade and other payables 693 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 519 Other liabilities and deferred credits 223 Liabilities held for sale 37 Total liabilities 2,074 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. For the three months ended March 31, 2022, the Company recognized $3 million of acquisition related costs. These costs are included in the Consolidated Statements of Earnings (Loss) and Comprehensive Income in the line item entitled Transaction costs. The Predecessor period includes the historical financial information of Pearl Merger Sub prior to the business combination. 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.

Derivatives and Hedging Activit

Derivatives and Hedging Activities and Fair Value Measurement	3 Months Ended
	Mar. 31, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivatives and Hedging Activities and Fair Value Measurement	NOTE 5. _________________ 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 March 31, 2022, two customers located in the U.S. represented 28% or $138 million, of the Company’s receivables (December 31, 2021 – two customers located in the U.S. represented 28% or $130 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. 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 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 21 months. As of March 31, 2022, the Company hedged 25% and 10% of its forecasted purchases under derivative contracts for 2022 and 2023, respectively. The natural gas derivative contracts were effective as of March 31, 2022. 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 24 months. Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive income to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. As of March 31, 2022, the Company hedged 57%, 25% and 1% of its forecasted net cash exposures under contracts for 2022, 2023 and 2024, respectively. The foreign exchange derivative contracts were effective as of March 31, 2022. 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 March 31, 2022 and December 31, 2021, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2022 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 17 — 17 — (a) Prepaid expenses Natural gas swap contracts 16 — 16 — (a) Prepaid expenses Natural gas swap contracts 3 — 3 — (a) Other assets Total Assets 36 — 36 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Total Liabilities 1 — 1 — Other Instruments: Long-term debt due within one year 7 — 7 — (b) Long-term debt due within one year Long-term debt 1,643 — 1,643 — (c) Long-term debt Fair Value of financial instruments at: December 31, 2021 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 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 (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 March 31, 2022 and December 31, 2021. The carrying value of the Company’s long-term debt due within one year is $7 million and $259 million at March 31, 2022 and December 31, 2021, respectively. ( c ) The carrying value of the Company’s long-term debt is $1,682 million and $1,643 million at March 31, 2022 and December 31, 2021, 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.

Pension Plans and Other Post-Re

Pension Plans and Other Post-Retirement Benefit Plans	3 Months Ended
	Mar. 31, 2022
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 three months ended March 31, 2022, the pension expense was $12 million (2021 – $9 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. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: Successor For the three months ended March 31, 2022 Pension plans Other post-retirement benefit plans $ $ Service cost 6 — Interest expense 9 1 Expected return on plan assets (19 ) — Net periodic benefit cost (4 ) 1 Predecessor For the three months ended March 31, 2021 Pension plans Other post-retirement benefit plans $ $ Service cost 7 — Interest expense 8 — Expected return on plan assets (16 ) — Amortization of net actuarial loss 2 — Net periodic benefit cost 1 — The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than the service cost, are presented in Non-service components of net periodic benefit cost on the Consolidated Statements of Earnings (Loss) and Comprehensive Income. For the three months ended March 31, 2022, the Company contributed $2 million (2021 – $3 million) to the pension plans and $1 million (2021 – $1 million) to the other post-retirement benefit plans.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7. _________________ INCOME TAXES For the first quarter of 2022, the Company had income tax expense of $3 million, consisting of $1 million of current income tax expense and deferred income tax expense of $2 million. This compares to an income tax benefit of $3 million in the first quarter of 2021, consisting of $8 million of current income tax benefit and a deferred income tax expense of $5 million. The Company made payments, net of income tax refunds, of $2 million during the first quarter of 2022. The effective tax rate was 23% compared with an effective tax rate of 17% in the first quarter of 2021. The effective tax rate for 2021 was impacted by additional tax expense on stock-based compensation which vested during the quarter. Also, a weaker US dollar resulted in an increase in the Company’s deferred tax liability on unremitted foreign earnings.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	NOTE 8. _________________ INVENTORIES The following table presents the components of inventories: March 31, December 31, 2022 2021 $ $ Work in process and finished goods 375 359 Raw materials 108 110 Operating and maintenance supplies 197 194 680 663

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	NOTE 9. _________________ 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 For the three months ended March 31, March 31, 2022 2021 $ $ Operating lease expense 5 6 Supplemental cash flow information related to leases was as follows: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6 6 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 4 1 Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2022 2021 $ $ Operating leases Operating leases right-of-use assets 51 48 Lease liabilities due within one year 19 19 Long-term operating lease liabilities 35 36 54 55 Finance leases Property, plant and equipment 4 5 Accumulated depreciation (1 ) (2 ) 3 3 Long-term debt due within one year 1 1 Long-term debt 3 3 4 4 Weighted-average remaining lease term Operating leases 4.2 years 4.3 years Finance leases 6.5 years 6.8 years Weighted-average discount rate Operating leases 3.2 % 3.2 % Finance leases 4.8 % 4.8 % Maturities of lease liabilities at March 31, 2022 were as follows: Operating leases Finance leases March 31, March 31, 2022 2022 $ $ 2022 (1) 18 1 2023 16 1 2024 13 1 2025 6 1 2026 3 1 Thereafter 5 1 Total lease payments 61 6 Less: Imputed interest 7 2 Total lease liabilities 54 4 (1) Represents the remaining nine months of 2022.

Closure and Restructuring Costs

Closure and Restructuring Costs and Impairment of Long-Lived Assets	3 Months Ended
	Mar. 31, 2022
Restructuring And Related Activities [Abstract]
Closure and Restructuring Costs and Impairment of Long-Lived Assets	NOTE 10. _________________ 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 of accelerated depreciation under Impairment of long-lived assets (2021 – $6 million) and nil of closure costs, under Closure and restructuring costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (2021 – $3 million). 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. For the three months ended March 31, 2022, the Company recorded $13 million under Asset conversion costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (2021 –

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income by Component	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Changes in Accumulated Other Comprehensive Income by Component	NOTE 11. _________________ CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT The following table presents the changes in Accumulated other comprehensive income 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, 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 Natural gas swap contracts 11 N/A N/A N/A 11 Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 5 N/A N/A N/A 5 Foreign currency items N/A N/A N/A 13 13 Other comprehensive income before reclassifications 17 — — 13 30 Amounts reclassified from Accumulated other comprehensive income (2 ) — — — (2 ) Net current period other comprehensive income 15 — — 13 28 Balance at March 31, 2022 15 17 (1 ) 21 52 (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: Details about Accumulated other comprehensive income components Amounts reclassified from Accumulated other comprehensive income Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) 1 — Currency options and forwards (1) 1 10 Net investment hedge (2) — (9 ) Total before tax 2 1 Tax benefit — 1 Net of tax 2 2 Amortization of defined benefit pension items Amortization of net actuarial loss (3) — (2 ) Discontinued operations — (4 ) Total before tax — (6 ) Tax benefit — 1 Net of tax — (5 ) (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income. (2) These amounts are included in Earnings (loss) from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income. (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).

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Long-Term Debt	NOTE 12. LONG-TERM DEBT FIRST LIEN TERM LOAN FACILITY 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 and a $2 million repayment was made during the first quarter of 2022, leaving total drawings under the Term Loan Facility of $650 million as of March 31, 2022. SENIOR SECURED NOTES On January 7, 2022, $133 million of the 6.75% Senior Secured Notes due 2028 were redeemed, and accrued interest of $2 million were paid, as a result of the Domtar Existing Notes Change of Control Offers that terminated on January 3, 2022, leaving $642 million of Notes outstanding as of March 31, 2022. 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. In addition, $3 million of premium and $6 million of accrued interest were paid. 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. At March 31, 2022, the Company had $150 million in borrowings and $63 million of letters of credit outstanding.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 13. _________________ COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. The Company may also incur substantial costs in relation to enforcement actions (including orders requiring corrective measures, installation of pollution control equipment or other remedial actions) as a result of violations of, or liabilities under, environmental laws and regulations applicable to its past and present properties. The Company’s ongoing efforts to identify potential environmental concerns that may be associated with such properties may result in additional environmental costs and liabilities which cannot be reasonably estimated at this time. A former owner of the Company’s Dryden, Ontario manufacturing site (the "Dryden Property") operated a chlor-alkali plant during the 1960s and 1970s, during which time, mercury and other pollutants were used and discharged into the 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: March 31, 2022 $ Balance at beginning of year 41 Additions and other changes 1 Environmental spending (1 ) Balance at end of period 41 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 March 31, 2022, cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, 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. At March 31, 2022, the Company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provision has been recorded. These indemnifications have not yielded a significant expense in the past. Pension Plans The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At March 31, 2022 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 was held on 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.

Segment Disclosures

Segment Disclosures	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Disclosures	NOTE 14. _________________ SEGMENT DISCLOSURES Following the sale of the Company’s Personal Care business on March 1, 2021, the Company operates as a single • 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 . An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Successor Predecessor For the three months ended March 31, March 31, SEGMENT DATA 2022 2021 $ $ Sales by product group Communication papers 579 488 Specialty and packaging papers 175 137 Market pulp 256 246 Consolidated sales 1,010 871 Operating income (loss) from continuing operations (1) Pulp and Paper 39 1 Corporate (14 ) (10 ) Consolidated operating income (loss) from continuing operations 25 (9 ) Interest expense, net 21 15 Non-service components of net periodic benefit cost (9 ) (6 ) Earnings (loss) before income taxes 13 (18 ) Income tax expense (benefit) 3 (3 ) Earnings (loss) from continuing operations 10 (15 ) Earnings (loss) from discontinued operations, net of taxes 13 (14 ) Net earnings (loss) 23 (29 ) (1) The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. For the three months ended March 31, 2021, the Company recognized $4 million as a reduction of costs related to this program (CDN $5 million) ($3 million in Cost of sales (CDN $4 million) and $1 million in Selling, general and administrative (CDN $1 million))

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022, 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 (Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2022
Discontinued Operations And Disposal Groups [Abstract]
Schedule of Disposal Groups, Including Discontinued Operations	Major components of earnings (loss) from discontinued operations: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Sales 88 227 Operating expenses Cost of sales, excluding depreciation and amortization 67 169 Depreciation and amortization — 14 Selling, general and administrative — 24 Closure and restructuring costs — 1 Transaction costs 3 — Other operating loss, net — 1 70 209 Operating income 18 18 Net loss on disposition of discontinued operations — 32 Earnings (loss) from discontinued operations before income taxes 18 (14 ) Income tax expense 5 — Net earnings (loss) from discontinued operations 13 (14 ) Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At March 31, December 31, 2022 2021 $ $ Assets Receivables 56 50 Inventories 73 82 Long-term assets 201 155 Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 330 287 Liabilities Trade and other payables 32 26 Income and other taxes payable 1 — Long-term debt due within one year 1 1 Long-term debt 4 4 Deferred income taxes and other — 27 Other liabilities and deferred credits 5 5 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 43 63 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheets. Cash Flows from Discontinued Operations: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Cash flows from operating activities 30 15 Cash flows used for investing activities (1 ) (4 )

Acquisition of Business (Tables

Acquisition of Business (Tables)	3 Months Ended
	Mar. 31, 2022
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. Purchase adjustments were made related to events or circumstances existing at the acquisition date. Fair value of net assets acquired at the date of acquisition Receivables $ 513 Inventories 646 Prepaid expenses 50 Income and other taxes receivable 54 Property, plant and equipment 2,404 Intangible assets 221 Customer relationships 170 Trade names 30 Water rights 21 Operating lease right-of-use assets 53 Other assets 266 Assets held for sale 331 Total assets 4,538 Less: Assumed Liabilities Trade and other payables 693 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 519 Other liabilities and deferred credits 223 Liabilities held for sale 37 Total liabilities 2,074 Fair value of net assets acquired at the date of acquisition 2,464

Derivatives and Hedging Activ_2

Derivatives and Hedging Activities and Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 and December 31, 2021, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: March 31, 2022 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 17 — 17 — (a) Prepaid expenses Natural gas swap contracts 16 — 16 — (a) Prepaid expenses Natural gas swap contracts 3 — 3 — (a) Other assets Total Assets 36 — 36 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Total Liabilities 1 — 1 — Other Instruments: Long-term debt due within one year 7 — 7 — (b) Long-term debt due within one year Long-term debt 1,643 — 1,643 — (c) Long-term debt Fair Value of financial instruments at: December 31, 2021 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 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 (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 March 31, 2022 and December 31, 2021. The carrying value of the Company’s long-term debt due within one year is $7 million and $259 million at March 31, 2022 and December 31, 2021, respectively. ( c ) The carrying value of the Company’s long-term debt is $1,682 million and $1,643 million at March 31, 2022 and December 31, 2021, respectively.

Pension Plans and Other Post-_2

Pension Plans and Other Post-Retirement Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2022
Compensation And Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans	Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: Successor For the three months ended March 31, 2022 Pension plans Other post-retirement benefit plans $ $ Service cost 6 — Interest expense 9 1 Expected return on plan assets (19 ) — Net periodic benefit cost (4 ) 1 Predecessor For the three months ended March 31, 2021 Pension plans Other post-retirement benefit plans $ $ Service cost 7 — Interest expense 8 — Expected return on plan assets (16 ) — Amortization of net actuarial loss 2 — Net periodic benefit cost 1 —

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Components of Inventories	The following table presents the components of inventories: March 31, December 31, 2022 2021 $ $ Work in process and finished goods 375 359 Raw materials 108 110 Operating and maintenance supplies 197 194 680 663

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Summary of Components of Lease Expense	The components of lease expense were as follows: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Operating lease expense 5 6
Summary of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6 6 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 4 1
Summary of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2022 2021 $ $ Operating leases Operating leases right-of-use assets 51 48 Lease liabilities due within one year 19 19 Long-term operating lease liabilities 35 36 54 55 Finance leases Property, plant and equipment 4 5 Accumulated depreciation (1 ) (2 ) 3 3 Long-term debt due within one year 1 1 Long-term debt 3 3 4 4 Weighted-average remaining lease term Operating leases 4.2 years 4.3 years Finance leases 6.5 years 6.8 years Weighted-average discount rate Operating leases 3.2 % 3.2 % Finance leases 4.8 % 4.8 %
Summary of Maturities of Lease Liabilities	Maturities of lease liabilities at March 31, 2022 were as follows: Operating leases Finance leases March 31, March 31, 2022 2022 $ $ 2022 (1) 18 1 2023 16 1 2024 13 1 2025 6 1 2026 3 1 Thereafter 5 1 Total lease payments 61 6 Less: Imputed interest 7 2 Total lease liabilities 54 4 (1) Represents the remaining nine months of 2022.

Changes in Accumulated Other _2

Changes in Accumulated Other Comprehensive Income by Component (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Income by Component	The following table presents the changes in Accumulated other comprehensive income 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, 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 Natural gas swap contracts 11 N/A N/A N/A 11 Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 5 N/A N/A N/A 5 Foreign currency items N/A N/A N/A 13 13 Other comprehensive income before reclassifications 17 — — 13 30 Amounts reclassified from Accumulated other comprehensive income (2 ) — — — (2 ) Net current period other comprehensive income 15 — — 13 28 Balance at March 31, 2022 15 17 (1 ) 21 52 (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected benefit obligation is actuarially determined on an annual basis as of December 31.
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income	The following table presents reclassifications out of Accumulated other comprehensive income: Details about Accumulated other comprehensive income components Amounts reclassified from Accumulated other comprehensive income Successor Predecessor For the three months ended March 31, March 31, 2022 2021 $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) 1 — Currency options and forwards (1) 1 10 Net investment hedge (2) — (9 ) Total before tax 2 1 Tax benefit — 1 Net of tax 2 2 Amortization of defined benefit pension items Amortization of net actuarial loss (3) — (2 ) Discontinued operations — (4 ) Total before tax — (6 ) Tax benefit — 1 Net of tax — (5 ) (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income. (2) These amounts are included in Earnings (loss) from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income. (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).

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Environmental Remediation Obligations [Abstract]
Changes in Reserve for Environmental Remediation and Asset Retirement Obligations	The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: March 31, 2022 $ Balance at beginning of year 41 Additions and other changes 1 Environmental spending (1 ) Balance at end of period 41

Segment Disclosures (Tables)

Segment Disclosures (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Analysis and Reconciliation of Reportable Segment Information	An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: Successor Predecessor For the three months ended March 31, March 31, SEGMENT DATA 2022 2021 $ $ Sales by product group Communication papers 579 488 Specialty and packaging papers 175 137 Market pulp 256 246 Consolidated sales 1,010 871 Operating income (loss) from continuing operations (1) Pulp and Paper 39 1 Corporate (14 ) (10 ) Consolidated operating income (loss) from continuing operations 25 (9 ) Interest expense, net 21 15 Non-service components of net periodic benefit cost (9 ) (6 ) Earnings (loss) before income taxes 13 (18 ) Income tax expense (benefit) 3 (3 ) Earnings (loss) from continuing operations 10 (15 ) Earnings (loss) from discontinued operations, net of taxes 13 (14 ) Net earnings (loss) 23 (29 ) 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. For the three months ended March 31, 2021, the Company recognized $4 million as a reduction of costs related to this program (CDN $5 million) ($3 million in Cost of sales (CDN $4 million) and $1 million in Selling, general and administrative (CDN $1 million))

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions	Mar. 01, 2021	Mar. 31, 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
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	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract]
Sales	$ 88	$ 227
Operating expenses
Cost of sales, excluding depreciation and amortization	67	169
Depreciation and amortization		14
Selling, general and administrative		24
Closure and restructuring costs		1
Transaction costs	3
Other operating loss, net		1
Operating expenses	70	209
Operating income	18	18
Net loss on disposition of discontinued operations (NOTE 3)		32
Earnings (loss) from discontinued operations before income taxes	18	(14)
Income tax expense	5
Net earnings (loss) from discontinued operations	$ 13	$ (14)

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	Mar. 31, 2022	Dec. 31, 2021
Assets
Receivables	$ 56	$ 50
Inventories	73	82
Long-term assets	201	155
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets	330	287
Liabilities
Trade and other payables	32	26
Income and other taxes payable	1
Long-term debt due within one year	1	1
Long-term debt	4	4
Deferred income taxes and other		27
Other liabilities and deferred credits	5	5
Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets	$ 43	$ 63

Discontinued Operations - Sch_3

Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net Cash Provided By Used In Discontinued Operations [Abstract]
Cash flows from operating activities	$ 30	$ 15
Cash flows used for investing activities	$ (1)	$ (4)

Acquisition of Business - Addit

Acquisition of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Nov. 30, 2021
Business Acquisition [Line Items]
Transaction costs (NOTE 4)	$ 3
Paper Excellence
Business Acquisition [Line Items]
Business Acquisition, Share Price		$ 55.50
Fair value of consideration transferred		$ 2,796
Cash Acquired		$ 332

Acquisition of Business - Sched

Acquisition of Business - Schedule of Assets Acquired and Liabilities Assumed (Detail) $ in Millions	Mar. 31, 2021USD ($)
Business Acquisition [Line Items]
Receivables	$ 513
Inventories	646
Prepaid expenses	50
Income and other taxes receivable	54
Property, plant and equipment	2,404
Intangible assets	221
Operating lease right-of-use assets	53
Other assets	266
Assets held for sale	331
Total assets	4,538
Less: Assumed Liabilities	2,074
Trade and other payables	693
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	519
Other liabilities and deferred credits	223
Liabilities held for sale	37
Total liabilities	2,074
Fair value of net assets acquired at the date of acquisition	2,464
Customer Relationships
Business Acquisition [Line Items]
Intangible assets	170
Trade Names
Business Acquisition [Line Items]
Intangible assets	30
Water Rights
Business Acquisition [Line Items]
Intangible assets	$ 21

Derivatives and Hedging Activ_3

Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022USD ($)Customer	Dec. 31, 2021USD ($)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	57.00%
C A D Denominated Notional Contractual Value For Two Thousand And Twenty Three
Derivative [Line Items]
Percentage of forecasted net exposures under contracts	25.00%
C A D Denominated Notional Contractual Value For Two Thousand And Twenty Four
Derivative [Line Items]
Percentage of forecasted net exposures under contracts	1.00%
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member]
Derivative [Line Items]
Length of time current hedges cover	24 months
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member]
Derivative [Line Items]
Length of time current hedges cover	21 months
Natural Gas Commodity Contracts Year Two Thousand Twenty Two
Derivative [Line Items]
Percentage of forecasted purchases under derivative contracts	25.00%
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 | $	$ 138	$ 130
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%	28.00%

Derivatives and Hedging Activ_4

Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Total Assets	$ 36	$ 26
Total Liabilities	1	2
Long-term debt	1,643	1,682
Long Term Debt Due Within One Year
Derivative [Line Items]
Long-term debt	7	259
Currency Derivatives [Member] | Prepaid Expenses
Derivative [Line Items]
Total Assets	17	18
Currency Derivatives [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	1	1
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities		1
Significant Observable Inputs (Level 2) [Member]
Derivative [Line Items]
Total Assets	36	26
Total Liabilities	1	2
Long-term debt	1,643	1,682
Significant Observable Inputs (Level 2) [Member] | Long Term Debt Due Within One Year
Derivative [Line Items]
Long-term debt	7	259
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses
Derivative [Line Items]
Total Assets	17	18
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member]
Derivative [Line Items]
Total Liabilities	1	1
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member]
Derivative [Line Items]
Total Liabilities		1
Natural Gas Swap Contracts | Prepaid Expenses
Derivative [Line Items]
Total Assets	16	6
Natural Gas Swap Contracts | Other Assets
Derivative [Line Items]
Total Assets	3	2
Natural Gas Swap Contracts | Significant Observable Inputs (Level 2) [Member] | Prepaid Expenses
Derivative [Line Items]
Total Assets	16	6
Natural Gas Swap Contracts | Significant Observable Inputs (Level 2) [Member] | Other Assets
Derivative [Line Items]
Total Assets	$ 3	$ 2

Derivatives and Hedging Activ_5

Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
The carrying value of the Company's long-term debt due within one year	$ 7	$ 259
The carrying value of the Company's long-term debt	1,682	1,643
Long Term Debt Due Within One Year
Derivative [Line Items]
The carrying value of the Company's long-term debt due within one year	$ 7	$ 259

Pension Plans and Other Post-_3

Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Pension expense	$ 12	$ 9
Pension Plans [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Plan contributions	2	3
Other Post-Retirement Benefit Plans [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Plan contributions	$ 1	$ 1

Pension Plans and Other Post-_4

Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6	$ 7
Interest expense	9	8
Expected return on plan assets	(19)	(16)
Amortization of net actuarial loss		2
Net periodic benefit cost	(4)	$ 1
Other Post-Retirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest expense	1
Net periodic benefit cost	$ 1

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ 3	$ (3)
Current income tax expense (benefit)	1	(8)
Deferred income tax expense (benefit)	2	5
Tax payments, net of tax refunds	$ 2	$ (7)
Effective income tax rate	23.00%	17.00%

Inventories - Components of Inv

Inventories - Components of Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Work in process and finished goods	$ 375	$ 359
Raw materials	108	110
Operating and maintenance supplies	197	194
Total inventories	$ 680	$ 663

Leases - Additional Information

Leases - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022
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	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease expense	$ 5	$ 6

Leases - Summary of Supplementa

Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 6	$ 6
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 4	$ 1

Leases - Summary of Supplemen_2

Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Operating leases
Operating leases right-of-use assets	$ 51	$ 48
Lease liabilities due within one year	19	19
Operating lease liabilities (NOTE 9)	35	36
Operating lease liabilities, total	54	55
Finance leases
Property, plant and equipment	4	5
Accumulated depreciation	(1)	(2)
Property, plant and equipment, net	$ 3	$ 3
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Long-term debt due within one year	$ 1	$ 1
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Long-term debt due within one year	Long-term debt due within one year
Long-term debt	$ 3	$ 3
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt	Long-term debt
Finance leases liabilities, total	$ 4	$ 4
Weighted-average remaining lease term
Operating leases	4 years 2 months 12 days	4 years 3 months 18 days
Finance leases	6 years 6 months	6 years 9 months 18 days
Weighted-average discount rate
Operating leases	3.20%	3.20%
Finance leases	4.80%	4.80%

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating leases, 2022	$ 18
Operating leases, 2023	16
Operating leases, 2024	13
Operating leases, 2025	6
Operating leases, 2026	3
Operating leases, Thereafter	5
Operating leases, Total lease payments	61
Operating leases, Imputed interest	7
Operating leases, Total lease liabilities	54	$ 55
Finance leases, 2022	1
Finance leases, 2023	1
Finance leases, 2024	1
Finance leases, 2025	1
Finance leases, 2026	1
Finance leases, Thereafter	1
Finance leases, Total lease payments	6
Finance leases, Imputed interest	2
Finance leases, Total lease liabilities	$ 4	$ 4

Closure and Restructuring Cos_2

Closure and Restructuring Costs and Impairment of Long-lived Assets - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)EmployeeT	Mar. 31, 2021USD ($)
Restructuring Cost And Reserve [Line Items]
Impairment of long-lived assets		$ 6
Closure and restructuring costs (NOTE 10)		3
Asset conversion costs (NOTE 10)	$ 13	8
Cost reduction program [Member]
Restructuring Cost And Reserve [Line Items]
Reduction of annual uncoated freesheet paper capacity | T	721,000
Expected workforce reduction | Employee	750
Impairment of long-lived assets		6
Closure and restructuring costs (NOTE 10)		3
Conversion Of Kingsport Tennessee Mill | Kingsport Tennessee Mill
Restructuring Cost And Reserve [Line Items]
Forecasted production of high quality recycled linerboard and medium | T	600,000
Asset conversion costs (NOTE 10)	$ 13	$ 8

Changes in Accumulated Other _3

Changes in Accumulated Other Comprehensive Income by Component - Schedule of Changes in Accumulated Other Comprehensive Income by Component (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		11 Months Ended
	Dec. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Nov. 30, 2021
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance		$ 24
Other comprehensive income		28	$ 84
Ending balance	$ 24	52
Balance		1,539	2,260	$ 2,260
Balance	1,539	1,590	2,091
Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				171
Amounts reclassified from Accumulated other comprehensive loss				(22)
Other comprehensive income				149
Elimination of Predecessor's Accumulated other comprehensive loss				155
Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	24	30
Amounts reclassified from Accumulated other comprehensive loss		(2)
Other comprehensive income	24	28
Natural Gas Swap Contracts | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				22
Natural Gas Swap Contracts | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	(3)	11
Foreign Exchange Forward | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				2
Foreign Exchange Forward | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	3	5
Currency Derivatives [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				57
Currency Derivatives [Member] | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	8	13
Currency Options | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications		1
Other Comprehensive Income (Loss) | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				90
Other Comprehensive Income (Loss) | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	16
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	27		34	34
Other comprehensive income before reclassifications				24
Amounts reclassified from Accumulated other comprehensive loss				(31)
Other comprehensive income				(7)
Ending balance				27
Elimination of Predecessor's Accumulated other comprehensive loss				(27)
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications		17
Amounts reclassified from Accumulated other comprehensive loss		(2)
Other comprehensive income		15
Ending balance		15
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Natural Gas Swap Contracts | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				22
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Natural Gas Swap Contracts | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	(3)	11
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Foreign Exchange Forward | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				2
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Foreign Exchange Forward | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	3	5
Net Derivative Gains (Losses) on Cash Flow Hedges [Member] | Currency Options | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications		1
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(112)		(207)	(207)
Other comprehensive income before reclassifications				85
Amounts reclassified from Accumulated other comprehensive loss				10
Other comprehensive income				95
Ending balance				(112)
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		17
Other comprehensive income before reclassifications	17
Other comprehensive income	17
Ending balance	17	17
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Other Comprehensive Income (Loss) | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				85
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Other Comprehensive Income (Loss) | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive 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	8
Other comprehensive income before reclassifications				5
Amounts reclassified from Accumulated other comprehensive loss				(1)
Other comprehensive income				4
Ending balance				12
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		(1)
Other comprehensive income before reclassifications	(1)
Other comprehensive income	(1)
Ending balance	(1)	(1)
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Other Comprehensive Income (Loss) | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				5
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Other Comprehensive Income (Loss) | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	(1)
Foreign Currency Items [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(82)		(139)	(139)
Other comprehensive income before reclassifications				57
Other comprehensive income				57
Ending balance				(82)
Elimination of Predecessor's Accumulated other comprehensive loss				82
Foreign Currency Items [Member] | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance		8
Other comprehensive income before reclassifications	8	13
Other comprehensive income	8	13
Ending balance	8	21
Foreign Currency Items [Member] | Currency Derivatives [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications				57
Foreign Currency Items [Member] | Currency Derivatives [Member] | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income before reclassifications	8	13
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		24	(304)	(304)
Balance	24	52	(220)
Accumulated Other Comprehensive Loss [Member] | Predecessors
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(155)		$ (304)	(304)
Balance				$ (155)
Accumulated Other Comprehensive Loss [Member] | Successors
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		24
Balance	$ 24	$ 52

Changes in Accumulated Other _4

Changes in Accumulated Other Comprehensive Income by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net derivative losses on cash flow hedge	$ 13	$ (14)
Tax benefit (expense)	(3)	3
Net earnings (loss)	23	(29)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
(Loss) earnings before income taxes and equity loss	2	1
Tax benefit (expense)		1
Net earnings (loss)	2	2
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Natural Gas Swap Contracts
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Sales	1
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Currency Options and Forwards [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Cost of Sales	$ 1	10
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Net Investment Hedge
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net derivative losses on cash flow hedge		(9)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net derivative losses on cash flow hedge		(4)
Amortization of net actuarial gain (loss)		(2)
(Loss) earnings before income taxes and equity loss		(6)
Tax benefit (expense)		1
Net earnings (loss)		$ (5)

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions	Jan. 07, 2022	Jan. 03, 2022	Mar. 31, 2022	Nov. 30, 2021
Delayed Draw Term Loan [Member]
Debt Instrument [Line Items]
Par Amount	$ 127
Drawings under the term loan facility			$ 650
Repayment of term loan facility			2
Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes were redeemed	$ 133
Long-term debt, interest rate	6.75%
Senior secured notes			642
Accrued interest paid	$ 2
6.25% Notes [Member] | 2042 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate		6.25%
Debt Instrument, Face Amount		$ 134
Unsecured notes		$ 116
Premium paid	$ 3
6.75% Notes [Member] | 2044 [Member]
Debt Instrument [Line Items]
Long-term debt, interest rate	6.75%	6.75%
Accrued interest paid	$ 6
Debt Instrument, Face Amount		$ 100
Unsecured notes	$ 150
Asset Based Lending Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 400
Borrowings			150
Letters of credit outstanding			$ 63

Commitments and Contingencies -

Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Balance at beginning of year	$ 41
Additions and other changes	1
Environmental spending	(1)
Balance at end of period	$ 41

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022USD ($)
Pension Plans [Member]
Commitments And Contingencies [Line Items]
Provision for liability	$ 0
Indemnification Guarantee [Member]
Commitments And Contingencies [Line Items]
Provision for liability	$ 0

Segment Disclosures - Additiona

Segment Disclosures - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022Segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Segment Disclosures - Analysis

Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Sales	$ 1,010	$ 871
Consolidated operating income (loss) from continuing operations	25	(9)
Interest expense, net	21	15
Non-service components of net periodic benefit cost	(9)	(6)
Earnings (loss) before income taxes	13	(18)
Income tax expense (benefit) (NOTE 7)	3	(3)
Earnings (loss) from continuing operations	10	(15)
Earnings (loss) from discontinued operations, net of taxes (NOTE 3)	13	(14)
Net earnings (loss)	23	(29)
Successors
Segment Reporting Information [Line Items]
Sales	1,010
Consolidated operating income (loss) from continuing operations	25
Interest expense, net	21
Non-service components of net periodic benefit cost	(9)
Earnings (loss) before income taxes	13
Income tax expense (benefit) (NOTE 7)	3
Earnings (loss) from continuing operations	10
Earnings (loss) from discontinued operations, net of taxes (NOTE 3)	13
Net earnings (loss)	23
Operating Segments [Member] | Communication Paper [Member]
Segment Reporting Information [Line Items]
Sales		488
Operating Segments [Member] | Specialty and Packaging Paper [Member]
Segment Reporting Information [Line Items]
Sales		137
Operating Segments [Member] | Market Pulp [Member]
Segment Reporting Information [Line Items]
Sales		246
Operating Segments [Member] | Pulp and Paper [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss) from continuing operations		1
Operating Segments [Member] | Successors | Communication Paper [Member]
Segment Reporting Information [Line Items]
Sales	579
Operating Segments [Member] | Successors | Specialty and Packaging Paper [Member]
Segment Reporting Information [Line Items]
Sales	175
Operating Segments [Member] | Successors | Market Pulp [Member]
Segment Reporting Information [Line Items]
Sales	256
Operating Segments [Member] | Successors | Pulp and Paper [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss) from continuing operations	39
Corporate [Member]
Segment Reporting Information [Line Items]
Consolidated operating income (loss) from continuing operations		$ (10)
Corporate [Member] | Successors
Segment Reporting Information [Line Items]
Consolidated operating income (loss) from continuing operations	$ (14)

Segment Disclosures - Analysi_2

Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - 3 months ended Mar. 31, 2021 - Canada Emergency Wage Subsidy [Member] $ in Millions, $ in Millions	USD ($)	CAD ($)
Reduction of Costs [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	$ 4	$ 5
Cost of Sales [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	3	4
Selling, General And Administrative [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	$ 1	$ 1