Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | ||
Entity Central Index Key | 1393066 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RFP | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 94,786,157 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,094 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement [Abstract] | ||||||
Sales | $4,258 | $4,461 | $4,503 | |||
Costs and expenses: | ||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 3,240 | 3,446 | 3,485 | |||
Depreciation and amortization | 243 | 243 | 233 | |||
Distribution costs | 518 | 521 | 514 | |||
Selling, general and administrative expenses | 155 | 166 | 149 | |||
Closure costs, impairment and other related charges | 278 | 89 | 185 | |||
Net gain on disposition of assets | -2 | -2 | -35 | |||
Operating (loss) income | -174 | [1],[2] | -2 | [2],[3] | -28 | [2] |
Interest expense | -47 | -51 | -66 | |||
Other (expense) income, net | -83 | -62 | 22 | |||
(Loss) income before income taxes | -304 | -115 | -72 | |||
Income tax benefit (provision) | 30 | -524 | 39 | |||
Net (loss) income including noncontrolling interests | -274 | -639 | -33 | |||
Net (income) loss attributable to noncontrolling interests | -3 | 0 | 34 | |||
Net (loss) income attributable to Resolute Forest Products Inc. | ($277) | ($639) | $1 | |||
Net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders: | ||||||
Basic (in dollars per share) | ($2.93) | ($6.75) | $0.01 | |||
Diluted (in dollars per share) | ($2.93) | ($6.75) | $0.01 | |||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||||
Basic (in shares) | 94.6 | 94.7 | 97.4 | |||
Diluted (in shares) | 94.6 | 94.7 | 97.5 | |||
[1] | Operating loss for the year ended December 31, 2014 included the following significant items:(In millions)First QuarterSecond QuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (10) (52) (85) (131) (278) Inventory write-downs related to closures (1) (3) (6) (7) (17) Start-up costs — (1) (1) (2) (4) $(11) $(54) $(92) $(140) $(297) | |||||
[2] | Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items:(In millions)2014 2013 2012 Net gain on disposition of assets$2 $2 $35 Closure costs, impairment and other related charges (278) (89) (185) Inventory write-downs related to closures (17) (11) (12) Severance costs — — (5) Transaction costs — (6) (8) Start-up costs (4) (32) (13) $(297) $(136) $(188) | |||||
[3] | Operating loss for the year ended December 31, 2013 included the following significant items:(In millions)First QuarterSecondQuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (40) (12) (4) (33) (89) Inventory write-downs related to closures (4) (1) — (6) (11) Transaction costs (3) (2) — (1) (6) Start-up costs (15) (13) (3) (1) (32) $(62) $(26) $(7) $(41) $(136) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss including noncontrolling interests | ($274) | ($639) | ($33) |
Other comprehensive income (loss) : | |||
Change in unamortized prior service credits, net of tax of $1, $0 and $7 in 2014, 2013 and 2012, respectively | 76 | -3 | 23 |
Change in unamortized actuarial losses, net of tax of $116, $121 and $135 in 2014, 2013 and 2012, respectively | -522 | 350 | -351 |
Foreign currency translation | -1 | -4 | 1 |
Other comprehensive (loss) income, net of tax | -447 | 343 | -327 |
Comprehensive loss including noncontrolling interests | -721 | -296 | -360 |
Less: Comprehensive (income) loss attributable to noncontrolling interests: | |||
Net (income) loss | -3 | 0 | 34 |
Change in unamortized actuarial losses, net of tax of $0 in 2012 | 0 | 0 | 6 |
Foreign currency translation | 0 | 0 | 2 |
Comprehensive (income) loss attributable to noncontrolling interests | -3 | 0 | 42 |
Comprehensive loss attributable to Resolute Forest Products Inc. | ($724) | ($296) | ($318) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Change in unamortized prior service credits, including portion attributable to noncontrolling interests, tax portion | $1 | $0 | ($7) |
Change in unamortized actuarial losses including portion attributable to noncontrolling interest, tax portion | 116 | -121 | 135 |
Change in unamortized actuarial losses, portion attributable to noncontrolling interests, tax portion | $0 | $0 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $337 | $322 |
Accounts receivable, net: | ||
Trade | 449 | 536 |
Other | 90 | 98 |
Inventories, net | 542 | 529 |
Deferred income tax assets | 70 | 32 |
Other current assets | 46 | 45 |
Total current assets | 1,534 | 1,562 |
Fixed assets, net | 1,985 | 2,289 |
Amortizable intangible assets, net | 62 | 66 |
Deferred income tax assets | 1,219 | 1,266 |
Other assets | 121 | 202 |
Total assets | 4,921 | 5,385 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 518 | 533 |
Current portion of long-term debt | 1 | 2 |
Deferred income tax liabilities | 0 | 32 |
Total current liabilities | 519 | 567 |
Long-term debt, net of current portion | 596 | 597 |
Pension and other postretirement benefit obligations | 1,616 | 1,294 |
Deferred income tax liabilities | 3 | 26 |
Other long-term liabilities | 70 | 62 |
Total liabilities | 2,804 | 2,546 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 117.3 shares issued and 94.8 shares outstanding as of December 31, 2014; 117.0 shares issued and 94.5 shares outstanding as of December 31, 2013 | 0 | 0 |
Additional paid-in capital | 3,754 | 3,751 |
Deficit | -869 | -592 |
Accumulated other comprehensive loss | -718 | -271 |
Treasury stock at cost, 22.5 shares as of December 31, 2014 and December 31, 2013 | -61 | -61 |
Total Resolute Forest Products Inc. shareholders’ equity | 2,106 | 2,827 |
Noncontrolling interests | 11 | 12 |
Total equity | 2,117 | 2,839 |
Total liabilities and equity | $4,921 | $5,385 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 117.3 | 117 |
Common stock, shares outstanding | 94.8 | 94.5 |
Treasury stock, shares | 22.5 | 22.5 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $3,483 | $0 | $3,687 | $47 | ($311) | $0 | $60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 5 | 5 | |||||
Net income (loss) | -33 | 1 | -34 | ||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 43 | 38 | -1 | 6 | |||
Disposition of investment | 25 | 16 | 9 | ||||
Purchases of treasury stock (5.6 shares) | -67 | -67 | |||||
Distribution of common stock from the share reserve | 0 | ||||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Dividends paid to noncontrolling interests | -5 | -5 | |||||
Contribution of capital to noncontrolling interest | 1 | 1 | |||||
Other comprehensive income (loss), net of tax | -327 | -319 | -8 | ||||
Ending Balance at Dec. 31, 2012 | 3,125 | 0 | 3,730 | 47 | -614 | -61 | 23 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 7 | 7 | |||||
Net income (loss) | -639 | -639 | 0 | ||||
Distribution of common stock from the share reserve | 0 | ||||||
Dividends paid to noncontrolling interests | -2 | -2 | |||||
Contribution of capital to noncontrolling interest | 5 | 5 | |||||
Acquisition of noncontrolling interest | 0 | 14 | -14 | ||||
Other comprehensive income (loss), net of tax | 343 | 343 | 0 | ||||
Ending Balance at Dec. 31, 2013 | 2,839 | 0 | 3,751 | -592 | -271 | -61 | 12 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 3 | 3 | |||||
Net income (loss) | -274 | -277 | 3 | ||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Dividends paid to noncontrolling interests | -4 | -4 | |||||
Other comprehensive income (loss), net of tax | -447 | -447 | 0 | ||||
Ending Balance at Dec. 31, 2014 | $2,117 | $0 | $3,754 | ($869) | ($718) | ($61) | $11 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Distribution of common stock from share reserve | 300,000 |
Non-controlling Interests [Member] | |
Tax impact of contribution of capital to non-controlling interests | 3 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flows from operating activities: | ||||||
Net loss including noncontrolling interests | ($274) | ($639) | ($33) | |||
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | ||||||
Share-based compensation | 6 | 7 | 5 | |||
Depreciation and amortization | 243 | 243 | 233 | |||
Closure costs, impairment and other related charges | 263 | 80 | 166 | |||
Inventory write-downs related to closures | 17 | 11 | 12 | |||
Deferred income taxes | -36 | 523 | -36 | |||
Net pension contributions and other postretirement benefit payments | -157 | -117 | -95 | |||
Net gain on disposition of assets | -2 | -2 | -35 | |||
Loss (gain) on translation of foreign currency denominated deferred income taxes | 107 | 93 | -37 | |||
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | -82 | -88 | 30 | |||
Gain on forgiveness of note payable | 0 | [1] | -12 | [1] | 0 | [1] |
Net loss on extinguishment of debt | 0 | 59 | 0 | |||
Write-down of equity method investment | 61 | [2] | 0 | [2] | 0 | [2] |
Premium related to debt redemption | 0 | 0 | -5 | |||
Dividends received from equity method investees in excess of income | 3 | 6 | 2 | |||
Leasehold improvement incentive received from lessor | 0 | 0 | 5 | |||
Changes in working capital: | ||||||
Accounts receivable | 106 | 62 | 91 | |||
Inventories | -31 | 16 | -21 | |||
Other current assets | -3 | 10 | 5 | |||
Accounts payable and accrued liabilities | -44 | -37 | -11 | |||
Other, net | 9 | -9 | -10 | |||
Net cash provided by operating activities | 186 | 206 | 266 | |||
Cash flows from investing activities: | ||||||
Cash invested in fixed assets | -193 | -161 | -169 | |||
Monetization of timber notes | 22 | 0 | 0 | |||
Disposition of our interest in our Mersey operations, net of cash | 0 | 0 | 14 | |||
Disposition of other assets | 10 | 4 | 36 | |||
Acquisition of Fibrek Inc., net of cash acquired | 0 | 0 | -24 | |||
Proceeds from insurance settlements | 0 | 4 | 0 | |||
Decrease in restricted cash | 1 | 8 | 76 | |||
Decrease (increase) in deposit requirements for letters of credit, net | 1 | -2 | -12 | |||
Other investing activities, net | -2 | -4 | 4 | |||
Net cash (used in) provided by investing activities | -161 | -151 | -75 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt | 0 | 594 | 0 | |||
Premium paid on extinguishment of debt | 0 | -84 | 0 | |||
Payments of debt | -2 | -503 | -198 | |||
Payments of financing and credit facility fees | -1 | -9 | 0 | |||
Purchases of treasury stock | 0 | 0 | -67 | |||
Dividends to noncontrolling interests | -4 | -2 | -5 | |||
Acquisition of noncontrolling interest | 0 | 0 | -27 | |||
Contribution of capital from noncontrolling interest | 0 | 8 | 0 | |||
Net cash provided by (used in) financing activities | -7 | 4 | -297 | |||
Effect of exchange rate changes on cash and cash equivalents | -3 | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 15 | 59 | -106 | |||
Cash and cash equivalents: | ||||||
Beginning of year | 322 | 263 | 369 | |||
End of year | 337 | 322 | 263 | |||
Cash paid (received) during the year for: | ||||||
Interest, including capitalized interest of $3, $2 and $2 in 2014, 2013 and 2012, respectively | 42 | 54 | 68 | |||
Income taxes, net | ($1) | $2 | $0 | |||
[1] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||
[2] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Capitalized interest paid | $3 | $2 | $2 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Organization and basis of presentation | Note 1. Organization and Basis of Presentation | |||
Nature of operations | ||||
Resolute Forest Products Inc. (with its subsidiaries and affiliates, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry, with a diverse range of products, including newsprint, specialty papers, market pulp and wood products, which are marketed in close to 80 countries. We own or operate some 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. | ||||
AbitibiBowater Inc. (our predecessor entity) and all but one of its debtor affiliates successfully emerged from creditor protection proceedings under Chapter 11 of the United States Bankruptcy Code, as amended (“Chapter 11”) and the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”), as applicable (collectively, the “Creditor Protection Proceedings”) on December 9, 2010. The wholly-owned subsidiary operating the Mokpo, South Korea operations and almost all of the less than wholly-owned subsidiaries operated outside of the Creditor Protection Proceedings. We refer to AbitibiBowater Inc. and certain of its U.S. and Canadian subsidiaries as the “Debtors.” We refer to the Chapter 11 Debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and the CCAA Debtors’ CCAA Plan of Reorganization and Compromise, in each case as amended and including all exhibits and supplements thereto, together as the “Plans of Reorganization,” each as a “Plan of Reorganization” and individually as the “Chapter 11 Reorganization Plan” and the “CCAA Reorganization Plan,” respectively. Pursuant to the Plans of Reorganization, all disputed claims have been definitively resolved. The Debtors’ Chapter 11 cases are closed; the CCAA proceedings have yet to be closed as the monitor is continuing to assist in certain post-emergence court proceedings. | ||||
Financial statements | ||||
We have prepared our consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. | ||||
Consolidation | ||||
Our consolidated financial statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2014 with the exception of the following: | ||||
Consolidated Subsidiary | Resolute Forest Products Ownership | Partner | Partner | |
Ownership | ||||
Forest Products Mauricie L.P. | 93.20% | Cooperative Forestière du Haut Saint-Maurice | 6.80% | |
Donohue Malbaie Inc. | 51% | NYT Capital Inc. | 49% | |
Equity method investments | ||||
We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies | |
Use of estimates | ||
In preparing our consolidated financial statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. | ||
Cash and cash equivalents | ||
Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. | ||
Accounts receivable | ||
Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. | ||
Inventories | ||
Inventories are stated at the lower of cost or market value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. | ||
Fixed assets | ||
Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” in our Consolidated Balance Sheets and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. | ||
Environmental costs | ||
We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” or “Other (expense) income, net” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. | ||
Amortizable intangible assets | ||
Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. | ||
Impairment of long-lived assets | ||
The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. | ||
Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. | ||
When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). | ||
Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed or use of the asset group has ceased. | ||
Income taxes | ||
We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We have not provided for U.S. income taxes on the undistributed earnings, if any, of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. | ||
Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. | ||
Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of the income tax expense. | ||
Pension and OPEB obligations | ||
For our defined benefit plans, we recognize an asset or a liability for pension and OPEB obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. | ||
Fair value measurements | ||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: | ||
Level 1 - | Valuations based on quoted prices in active markets for identical assets and liabilities. | |
Level 2 - | Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. | |
Level 3 - | Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. | |
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. | ||
Share-based compensation | ||
We amortize the fair value of our equity-based awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. We estimate forfeitures of stock incentive awards based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures are updated to reflect new information or actual experience, as it becomes available. | ||
Any excess tax benefits related to share-based compensation gets recorded in the additional paid-in capital (“APIC”) pool and is available to absorb future tax related deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we would record the excess as income tax expense in our Consolidated Statements of Operations. For each of the years ended December 31, 2014, 2013 and 2012 the balance of the APIC pool was zero. | ||
Any cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs, DSUs and PSUs that exceed the compensation cost recognized (excess tax benefits) are classified as financing cash flows. | ||
Revenue recognition | ||
Pulp, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. | ||
Net (loss) income per share | ||
We calculate basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net (loss) income by the weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the weighted-average number of outstanding common shares, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs). The incremental shares are calculated using the treasury stock method (stock options, RSUs, DSUs and PSUs). To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs) would be antidilutive. | ||
Translation | ||
The functional currency of the majority of our operations is the U.S. dollar. However, some of these operations maintain their books and records in their local currency in accordance with certain statutory requirements. Non-monetary assets and liabilities of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported as “Other (expense) income, net” in our Consolidated Statements of Operations. | ||
The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.” | ||
Distribution costs | ||
Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. | ||
New accounting pronouncements | ||
In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts from Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework that replaces existing revenue recognition guidance in U.S. GAAP. This standard is effective for fiscal years beginning after December 15, 2016 and early adoption is prohibited. We are still evaluating the impact of this standard on our results of operations or financial position. |
Acquisition_of_Fibrek_Inc
Acquisition of Fibrek Inc. | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Acquisition of Fibrek Inc. | Note 3. Acquisition of Fibrek Inc. | ||||
On May 2, 2012 (the “acquisition date”), in connection with an offer to purchase all of the issued and outstanding shares of Fibrek Inc. (“Fibrek”), a producer and marketer of virgin and recycled kraft pulp operating three mills, we acquired a controlling interest in Fibrek and began consolidating its results of operations, financial position and cash flows in our consolidated financial statements. On July 31, 2012 we completed the final step of the transaction for the remaining outstanding shares of Fibrek. | |||||
As aggregate consideration for all of the Fibrek shares we purchased, we distributed approximately 3.3 million shares of our common stock and Cdn $63 million ($63 million, based on the exchange rates in effect on each of the dates we acquired the shares of Fibrek) in cash. See Note 16, “Commitments and Contingencies,” for additional information. | |||||
The following summarizes the fair value as of the acquisition date of all of the consideration transferred through May 2, 2012 to acquire our controlling interest in Fibrek: | |||||
(In millions) | |||||
Cash | $ | 36 | |||
Common stock issued (1.9 million shares) | 24 | ||||
$ | 60 | ||||
The acquisition date fair value of our common stock issued as part of the consideration transferred for Fibrek was determined based on the closing market price of our common stock on the acquisition date. | |||||
Subsequent to the acquisition date, we acquired the remaining noncontrolling interest in Fibrek, which we accounted for as equity transactions whereby we adjusted the carrying amount of the noncontrolling interest in Fibrek to reflect the change in our ownership interest in Fibrek. As consideration for this additional equity interest in Fibrek, we distributed approximately 1.4 million shares of our common stock and Cdn $27 million ($27 million, based on the exchange rates in effect on each of the dates we acquired the shares of Fibrek) in cash. Transaction costs of approximately $1 million associated with the acquisition of the noncontrolling interest in Fibrek were recorded in “Additional paid-in capital” in our Consolidated Balance Sheet as of December 31, 2012. | |||||
The following unaudited pro forma information for the year ended December 31, 2012 represents our results of operations as if the acquisition of Fibrek had occurred on January 1, 2012. This pro forma information does not purport to be indicative of the results that would have occurred for the period presented or that may be expected in the future. | |||||
(Unaudited, in millions except per share data) | 2012 | ||||
Sales | $ | 4,669 | |||
Net loss attributable to Resolute Forest Products Inc. | (2 | ) | |||
Basic net loss per share attributable to Resolute Forest Products Inc. | (0.02 | ) | |||
Diluted net loss per share attributable to Resolute Forest Products Inc. | (0.02 | ) | |||
The unaudited pro forma net loss attributable to Resolute Forest Products Inc. for the year ended December 31, 2012 excludes $19 million of both our and Fibrek’s transaction costs associated with the acquisition. |
Amortizable_Intangible_Assets_
Amortizable Intangible Assets, Net | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||
Amortizable Intangible Assets, Net | Note 4. Amortizable Intangible Assets, Net | ||||||||||||||||||||||||||
Amortizable intangible assets, net as of December 31, 2014 and 2013 were comprised of the following: | |||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | Estimated | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Lives | Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||
(Years) | Value | Value | |||||||||||||||||||||||||
Water rights | 10 – 40 | $ | 19 | $ | 3 | $ | 16 | $ | 19 | $ | 2 | $ | 17 | ||||||||||||||
Energy contracts | 15 – 25 | 52 | 6 | 46 | 52 | 3 | 49 | ||||||||||||||||||||
$ | 71 | $ | 9 | $ | 62 | $ | 71 | $ | 5 | $ | 66 | ||||||||||||||||
In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Québec. For some of our facilities, the use of such government-owned waters is governed by water power leases/agreements with the province of Québec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the bed of the river on which these facilities are located. | |||||||||||||||||||||||||||
Amortization expense related to amortizable intangible assets was $4 million, $3 million and $1 million, for the years ended December 31, 2014, 2013 and 2012, respectively. Amortization expense related to amortizable intangible assets is estimated to be $3 million per year for each of the next five years. |
Closure_Costs_Impairment_and_O
Closure Costs, Impairment and Other Related Charges | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Closure Costs, Impairment and Other Related Charges | Note 5. Closure Costs, Impairment and Other Related Charges | ||||||||||||||||||||
Closure costs, impairment and other related charges for the year ended December 31, 2014, were comprised of the following: | |||||||||||||||||||||
(In millions) | Impairment of Assets | Accelerated Depreciation | Pension Plan Curtailments | Severance and Other Costs | Total | ||||||||||||||||
Permanent closures: | |||||||||||||||||||||
Laurentide, Québec paper mill | $ | — | $ | 97 | $ | (2 | ) | $ | 20 | $ | 115 | ||||||||||
Paper mill in Iroquois Falls, Ontario | — | 60 | 6 | 17 | 83 | ||||||||||||||||
Paper machine in Catawba, South Carolina | — | 45 | — | 1 | 46 | ||||||||||||||||
Pulp and paper mill in Fort Frances, Ontario | — | — | — | 12 | 12 | ||||||||||||||||
Restructuring initiative: | |||||||||||||||||||||
Recycling operations (1) | 6 | — | — | 1 | 7 | ||||||||||||||||
Other | 8 | 6 | — | 1 | 15 | ||||||||||||||||
$ | 14 | $ | 208 | $ | 4 | $ | 52 | $ | 278 | ||||||||||||
(1) | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. | ||||||||||||||||||||
Closure costs, impairment and other related charges for the year ended December 31, 2013, were comprised of the following: | |||||||||||||||||||||
(In millions) | Impairment of Assets (2) | Accelerated Depreciation | Pension Plan Curtailments | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings and extended market-related outage: | |||||||||||||||||||||
Paper machine in Calhoun, Tennessee (1) | $ | — | $ | 44 | $ | — | $ | 6 | $ | 50 | |||||||||||
Kraft mill and paper machines in Fort Frances | — | — | 2 | 15 | 17 | ||||||||||||||||
Permanent closure: | |||||||||||||||||||||
Paper machine in Iroquois Falls | — | 2 | — | 1 | 3 | ||||||||||||||||
Other | 11 | 4 | 1 | 3 | 19 | ||||||||||||||||
$ | 11 | $ | 50 | $ | 3 | $ | 25 | $ | 89 | ||||||||||||
-1 | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 7, “Other (Expense) Income, Net.” | ||||||||||||||||||||
(2) | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | ||||||||||||||||||||
Closure costs, impairment and other related charges for the year ended December 31, 2012, were comprised of the following: | |||||||||||||||||||||
(In millions) | Impairment of Assets | Accelerated Depreciation | Pension and OPEB Plan Curtailments and Settlements | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Mersey operations, Nova Scotia (1) | $ | 72 | $ | — | $ | 8 | $ | 15 | $ | 95 | |||||||||||
Pulp mill and paper machine in Fort Frances (2) | 36 | 2 | 1 | 6 | 45 | ||||||||||||||||
Permanent closure: | |||||||||||||||||||||
Paper machine in Laurentide | — | 18 | — | 4 | 22 | ||||||||||||||||
Restructuring initiatives: | |||||||||||||||||||||
Catawba paper mill | — | — | — | 4 | 4 | ||||||||||||||||
Baie-Comeau, Québec paper mill | — | — | 3 | 1 | 4 | ||||||||||||||||
Lump-sum payments to vested terminated employees (Note 14) | — | — | 7 | — | 7 | ||||||||||||||||
Other | 3 | 1 | 2 | 2 | 8 | ||||||||||||||||
$ | 111 | $ | 21 | $ | 21 | $ | 32 | $ | 185 | ||||||||||||
(1) | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling and subsequent sale of our interest in our Mersey operations, to reduce the carrying value of our net assets to fair value less costs to sell. | ||||||||||||||||||||
(2) | We recorded long-lived asset impairment charges to reduce the carrying value of the assets to their estimated fair value, which was determined based on the assets’ estimated salvage values. |
Net_Gain_on_Disposition_of_Ass
Net Gain on Disposition of Assets | 12 Months Ended |
Dec. 31, 2014 | |
Gain (Loss) on Disposition of Assets [Abstract] | |
Net Gain on Disposition of Assets | Note 6. Net Gain on Disposition of Assets |
During 2012, we sold two parcels of land in Gatineau, Québec, a portion of our Mersey timberlands and subsequently our interest in our Mersey operations and various other assets for total consideration of $55 million, resulting in a net gain on disposition of assets of $35 million. |
Other_Expense_Income_Net
Other (Expense) Income, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other (Expense) Income, Net | Note 7. Other (Expense) Income, Net | ||||||||||||
Other (expense) income, net for the years ended December 31, 2014, 2013 and 2012 was comprised of the following: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Foreign exchange (loss) gain | $ | (32 | ) | $ | (24 | ) | $ | 17 | |||||
Write-down of equity method investment (1) | (61 | ) | — | — | |||||||||
Net (loss) gain on extinguishment of debt (Note 13) | — | (59 | ) | 2 | |||||||||
Gain on forgiveness of note payable (2) | — | 12 | — | ||||||||||
Gain on liquidation settlement (3) | — | 12 | — | ||||||||||
Miscellaneous income (expense) | 10 | (3 | ) | 3 | |||||||||
$ | (83 | ) | $ | (62 | ) | $ | 22 | ||||||
(1) | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | ||||||||||||
(2) | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | ||||||||||||
(3) | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Loss | Note 8. Accumulated Other Comprehensive Loss | ||||||||||||||||
The change in our accumulated other comprehensive loss by component (net of tax) for the year ended December 31, 2014 was as follows: | |||||||||||||||||
(In millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 18 | $ | (290 | ) | $ | 1 | $ | (271 | ) | |||||||
Other comprehensive income (loss) before reclassifications (1)(2) | 91 | (534 | ) | (1 | ) | (444 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss (3) | (15 | ) | 12 | — | (3 | ) | |||||||||||
Net current period other comprehensive income (loss) | 76 | (522 | ) | (1 | ) | (447 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 94 | $ | (812 | ) | $ | — | $ | (718 | ) | |||||||
-1 | In 2014, we modified our U.S. OPEB plan, whereby unionized participants, upon reaching Medicare eligibility, will be provided comparable Medicare coverage via a Medicare Exchange program, effective January 1, 2015. As a result of this plan amendment, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of December 31, 2014, were both decreased by $84 million ($91 million of unamortized prior service credits offset by the remeasurement impact resulting in $7 million of unamortized actuarial losses). | ||||||||||||||||
(2) | In 2014, we announced the permanent closure of our Laurentide and Iroquois Falls paper mills, resulting in the elimination of approximately 470 positions and the curtailment of two of our pension plans. Accordingly, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of December 31, 2014 were increased by $208 million and $152 million (net of tax of $56 million), respectively, which consisted of unamortized actuarial losses. | ||||||||||||||||
(3) | See the table below for details about these reclassifications. | ||||||||||||||||
The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2014 were comprised of the following: | |||||||||||||||||
(In millions) | Amounts Reclassified From Accumulated Other Comprehensive Loss | Affected Line in the Consolidated Statements of Operations | |||||||||||||||
Unamortized Prior Service Credits | |||||||||||||||||
Amortization of prior service credits | $ | (13 | ) | Cost of sales, excluding depreciation, amortization and distribution costs (1) | |||||||||||||
Curtailment gains | (3 | ) | Closure costs, impairment and other related charges (1) | ||||||||||||||
1 | Income tax benefit (provision) | ||||||||||||||||
$ | (15 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 5 | Cost of sales, excluding depreciation, amortization and distribution costs (1) | ||||||||||||||
Curtailment loss | 7 | Closure costs, impairment and other related charges (1) | |||||||||||||||
Write-down of actuarial losses | 4 | Other (expense) income, net | |||||||||||||||
(4 | ) | Income tax benefit (provision) | |||||||||||||||
$ | 12 | Net of tax | |||||||||||||||
Total Reclassifications | $ | (3 | ) | Net of tax | |||||||||||||
-1 | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans. |
Net_Loss_Income_Per_Share
Net (Loss) Income Per Share | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings Per Share [Abstract] | |||||||
Net (Loss) Income Per Share | Note 9. Net (Loss) Income Per Share | ||||||
The weighted-average number of stock options and equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) outstanding for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||
(In millions) | 2014 (1) | 2013 (1) | 2012 (2) | ||||
Stock options | 1.6 | 2 | 1.5 | ||||
Stock unit awards | 1.3 | 1 | 0.8 | ||||
(1) | These stock options and stock unit awards were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | ||||||
(2) | The dilutive impact of these stock options and stock unit awards on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. | ||||||
No adjustments to net (loss) income attributable to Resolute Forest Products Inc. common shareholders were necessary to calculate basic and diluted net (loss) income per share for all periods presented. |
Inventories_Net
Inventories, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories, Net | Note 10. Inventories, Net | ||||||||
Inventories, net as of December 31, 2014 and 2013 were comprised of the following: | |||||||||
(In millions) | 2014 | 2013 | |||||||
Raw materials and work in process | $ | 160 | $ | 153 | |||||
Finished goods | 192 | 195 | |||||||
Mill stores and other supplies | 190 | 181 | |||||||
$ | 542 | $ | 529 | ||||||
In 2014, we recorded charges of $17 million for write-downs of mill stores and other supplies as a result of the permanent closure of our Laurentide and Iroquois Falls paper mills and the permanent closure of a paper machine in Catawba. In 2013, we recorded charges for write-downs of mill stores and other supplies of $11 million primarily related to the indefinite idling of a paper machine in Calhoun and an extended period of market-related outage for a paper machine in Fort Frances. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Fixed_Assets_Net
Fixed Assets, Net | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Fixed Assets, Net | Note 11. Fixed Assets, Net | |||||||||
Fixed assets, net as of December 31, 2014 and 2013 were comprised of the following: | ||||||||||
(Dollars in millions) | Range of Estimated Useful Lives in Years | 2014 | 2013 | |||||||
Land and land improvements | 3 – 10 | $ | 93 | $ | 89 | |||||
Buildings | 3 – 40 | 293 | 291 | |||||||
Machinery and equipment (1) | 3 – 20 | 2,318 | 2,239 | |||||||
Hydroelectric power plants | 10 – 40 | 286 | 286 | |||||||
Timberlands and timberlands improvements | 3 – 20 | 91 | 83 | |||||||
Construction in progress (1) | 102 | 61 | ||||||||
3,183 | 3,049 | |||||||||
Less: Accumulated depreciation | (1,198 | ) | (760 | ) | ||||||
$ | 1,985 | $ | 2,289 | |||||||
(1)Internal-use software included in fixed assets, net as of December 31, 2014 and 2013 was as follows: | ||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||
Machinery and equipment | $ | 31 | $ | 30 | ||||||
Construction in progress | 24 | 9 | ||||||||
55 | 39 | |||||||||
Less: Accumulated depreciation | (8 | ) | (4 | ) | ||||||
$ | 47 | $ | 35 | |||||||
Amortization expense related to internal-use software is estimated to be $8 million per year for each of the next five years. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities | Note 12. Accounts Payable and Accrued Liabilities | ||||||||
Accounts payable and accrued liabilities as of December 31, 2014 and 2013 were comprised of the following: | |||||||||
(In millions) | 2014 | 2013 | |||||||
Trade accounts payable | $ | 361 | $ | 361 | |||||
Payroll, bonuses and severance payable | 85 | 97 | |||||||
Accrued interest | 5 | 5 | |||||||
Pension and OPEB obligations | 20 | 24 | |||||||
Income and other taxes payable | 13 | 6 | |||||||
Environmental liabilities | 8 | 5 | |||||||
Other | 26 | 35 | |||||||
$ | 518 | $ | 533 | ||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Note 13. Long-Term Debt | ||||||||
Overview | |||||||||
Long-term debt, including current portion, as of December 31, 2014 and 2013, was comprised of the following: | |||||||||
(In millions) | 2014 | 2013 | |||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | 600 | |||||
Unamortized discount | (5 | ) | (5 | ) | |||||
Total senior notes due 2023 | 595 | 595 | |||||||
Other debt: | |||||||||
PSIF – Investissement Québec loan | — | 1 | |||||||
Capital lease obligation | 2 | 3 | |||||||
Total other debt | 2 | 4 | |||||||
Total debt | 597 | 599 | |||||||
Less: Current portion of long-term debt | (1 | ) | (2 | ) | |||||
Long-term debt, net of current portion | $ | 596 | $ | 597 | |||||
2023 Notes | |||||||||
We issued $600 million in aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) on May 8, 2013, pursuant to an indenture as of that date (the “indenture”). Upon their issuance, the notes were recorded at their fair value of $594 million, which reflected a discount of $6 million that is being amortized to interest expense using the interest method over the term of the notes, resulting in an effective interest rate of 6.0%. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, beginning November 15, 2013, until their maturity date of May 15, 2023. | |||||||||
On May 8, 2013, we used the proceeds of the sale of the 2023 Notes to purchase $496 million aggregate principal amount of the 10.25% senior secured notes due 2018 (the “2018 Notes”), or 99% of the outstanding amount, in connection with the tender offer and consent solicitation that expired on May 21, 2013. Aggregate consideration for the purchase was $584 million, including accrued and unpaid interest of $4 million. We then redeemed the remaining $5 million of principal amount of the 2018 Notes on October 8, 2013, at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. Accordingly, we recorded a loss on extinguishment of debt of $59 million (net of $25 million write-down of unamortized premium) in “Other (expense) income, net” in our Consolidated Statements of Operations for the year ended December 31, 2013. On October 10, 2012, we also redeemed $85 million of principal amount of the 2018 Notes at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. | |||||||||
The 2023 Notes are guaranteed by all of our existing and subsequently acquired or organized direct or indirect wholly-owned U.S. subsidiaries (the “Note Guarantors”) that guarantee the ABL Credit Facility (as defined and discussed below). The notes are unsecured and effectively junior to indebtedness under the ABL Credit Facility to the extent of the value of the collateral that secures the ABL Credit Facility and to future secured indebtedness. In addition, the notes are structurally subordinated to all existing and future liabilities of our subsidiaries that do not guarantee the notes. | |||||||||
The terms of the indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur, assume or guarantee additional indebtedness; issue redeemable stock and preferred stock; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain debt; make loans and investments; incur liens; issue dividends, make loans or transfer assets from our subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; consolidate or merge with or into, or sell substantially all of our assets to, another person; enter into transactions with affiliates; and enter into new lines of business. | |||||||||
At any time prior to May 15, 2017, we may redeem some or all of the 2023 Notes at a redemption price of 100% of the principal amount, plus accrued and unpaid interest and a “make-whole” premium. We may redeem up to 35% of the notes before May 15, 2016 using proceeds from certain equity offerings at a price of 105.875% of the principal amount. In the event of a change of control, each holder will have the right to require us to repurchase all or any part of that holder’s notes at a purchase price in cash equal to 101% of the aggregate principal amount of the notes plus any accrued and unpaid interest. If we sell certain of our assets and do not use the proceeds to pay down certain indebtedness, purchase additional assets or make capital expenditures, each as specified in the indenture, we must offer to purchase the notes at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest with the net cash proceeds from the asset sale. | |||||||||
On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: | |||||||||
Year (beginning May 15) | Redemption Price | ||||||||
2017 | 104.41% | ||||||||
2018 | 102.94% | ||||||||
2019 | 101.47% | ||||||||
2020 and thereafter | 100.00% | ||||||||
In connection with the offering of the 2023 Notes, we and the Note Guarantors entered into a registration rights agreement, dated as of May 8, 2013, with the initial purchasers of the 2023 Notes. On May 27, 2014, in accordance with the registration rights agreement, we completed an exchange offer whereby we: (i) exchanged the 2023 Notes for registered notes (which we refer to as the “exchange notes”), with substantially the same terms as the 2023 Notes; and (ii) exchanged the guarantees related to the 2023 Notes for registered guarantees relating to the exchange notes, with substantially the same terms as the original guarantees. | |||||||||
The fair value of the 2023 Notes was $571 million and $554 million as of December 31, 2014 and 2013, respectively. The fair value was determined by reference to over-the-counter prices (Level 1). | |||||||||
In connection with the issuance of the 2023 Notes, we incurred fees of approximately $9 million, which were recorded as deferred financing costs in “Other assets” in our Consolidated Balance Sheet as of December 31, 2013, and are being amortized to interest expense using the interest method over the term of the notes. | |||||||||
ABL Credit Facility | |||||||||
In 2010, we and three of our wholly-owned subsidiaries, Resolute FP US Inc., and Abibow Recycling LLC (collectively, the “U.S. Borrowers”) and Resolute FP Canada Inc. (the “Canadian Borrower” and, together with the U.S. Borrowers, the “Borrowers”), entered into a senior secured asset-based revolving credit facility (the “ABL Credit Facility”) with a syndicate of lenders. The proceeds of the ABL Credit Facility can be used by us for, among other things, working capital, capital expenditures, permitted acquisitions and other general corporate purposes. | |||||||||
On February 25, 2014, the Borrowers and the Guarantors (as defined below) entered into an amendment to the credit agreement that governs the ABL Credit Facility. The ABL Credit Facility, as amended, matures on October 28, 2016 and provides for an asset-based, revolving credit facility with an aggregate lender commitment of up to $665 million at any time outstanding, subject to borrowing base availability, including a $60 million swingline sub-facility and a $200 million letter of credit sub-facility. The ABL Credit Facility includes a $465 million tranche available to the Borrowers and a $200 million tranche available solely to the U.S. Borrowers, in each case subject to the borrowing base availability of those Borrowers. The ABL Credit Facility also provides for an uncommitted incremental loan facility of up to $200 million, subject to certain terms and conditions set forth in the ABL Credit Facility. | |||||||||
Revolving loan (and letter of credit) availability under the ABL Credit Facility is subject to borrowing base availability, which at any time is equal to, for the Borrowers, the sum of: (i) 85% of eligible domestic accounts receivable and 90% of eligible international accounts receivable; (ii) the lesser of 65% of eligible inventory or 85% of the net orderly liquidation value of eligible inventory, minus certain reserves; and (iii) 100% of cash deposits, limited to $100 million and subject to certain conditions. | |||||||||
The obligations of the U.S. Borrowers under the ABL Credit Facility are guaranteed by each of the other U.S. Borrowers and certain of our material U.S. subsidiaries (the “U.S. Guarantors”), and secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the U.S. Borrowers and the U.S. Guarantors. The obligations of the Canadian Borrower under the ABL Credit Facility are guaranteed by each of the other Borrowers, the U.S. Guarantors and certain of our material Canadian subsidiaries (the “Canadian Guarantors” and, together with the U.S. Guarantors, the “Guarantors”), and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the Borrowers and the Guarantors. | |||||||||
Borrowings under the ABL Credit Facility bear interest at a rate equal to, at the Borrower’s option, the base rate, the Canadian prime rate or the Eurodollar rate, in each case plus an applicable margin. The base rate under the ABL Credit Facility equals the greater of: (i) a specified base rate, (ii) the Federal Funds rate plus 0.5%, (iii) a specified rate for certificates of deposit having a term of three months plus 0.5% or (iv) the Eurodollar rate for a one month interest period plus 1.0%. The interest rate margin applicable to borrowings under the ABL Credit Facility, as amended, is 1.75% – 2.25% per annum with respect to Eurodollar rate and bankers’ acceptance rate borrowings and 0.75% – 1.25% per annum with respect to base rate and Canadian prime rate borrowings, in each case depending on historic excess availability under the ABL Credit Facility. The applicable margin is subject, in each case, to monthly pricing adjustments based on the average monthly historic excess availability under the ABL Credit Facility. | |||||||||
In addition to paying interest on the outstanding borrowings under the ABL Credit Facility, the Borrowers are required to pay a fee in respect of unutilized commitments. The unutilized commitment fee payable by the Borrowers under the ABL Credit Facility, as amended, is 0.375% – 0.50% per annum, subject to monthly pricing adjustments based on the unutilized commitment of the ABL Credit Facility. The Borrowers must also pay a fee on outstanding letters of credit under the ABL Credit Facility at a rate equal to the applicable margin in respect of Eurodollar borrowings, plus a facing fee as agreed to in writing from time to time, and certain administrative fees. | |||||||||
The Borrowers are able to voluntarily repay outstanding loans and reduce unused commitments, in each case, in whole or in part, at any time without premium or penalty. The Borrowers are required to repay outstanding loans anytime the outstanding loans exceed the maximum availability then in effect. The Borrowers are also required to use net proceeds from certain significant asset sales to repay outstanding loans, but may re-borrow following such prepayments if the conditions to borrowings are met. | |||||||||
The ABL Credit Facility contains customary covenants for asset-based credit agreements of this type, including, among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness; (iii) restrictions on the existence or incurrence of liens; (iv) restrictions on making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on transactions with affiliates; (viii) restrictions on amendments or modifications to the Canadian pension and benefit plans and (ix) restrictions on modifications to material indebtedness. Additionally, a minimum consolidated fixed charge coverage ratio of 1.0:1.0 is required if at any time excess availability falls below the greater of: (i) $50 million and (ii) 10% of the lesser of (A) the total commitments and (B) the borrowing base then in effect. Subject to customary grace periods and notice requirements, the ABL Credit Facility also contains customary events of default. | |||||||||
As of December 31, 2014, the Borrowers had no borrowings and $37 million of letters of credit outstanding under the ABL Credit Facility. As of December 31, 2014, we had $521 million of availability under the ABL Credit Facility, which was comprised of $318 million for the U.S. Borrowers and $203 million for the Canadian Borrower. | |||||||||
The carrying value of assets pledged as collateral for our total debt obligations was approximately $1.4 billion as of December 31, 2014. | |||||||||
Other debt | |||||||||
We assumed Fibrek’s outstanding indebtedness on the acquisition date. As of December 31, 2012, Fibrek’s term loan and credit facility, totaling $112 million of principal, were repaid in full, plus accrued and unpaid interest, and the related agreements were canceled and terminated. | |||||||||
PSIF – Investissement Québec | |||||||||
On February 23, 2007, Investissement Québec granted Fibrek a Cdn $6 million interest-free loan through the Soutien à l’industrie forestière program (“PSIF”), payable in monthly installments over a maximum of four years, starting December 31, 2010. As of December 31, 2014, the loan was repaid in full. | |||||||||
Capital lease obligation | |||||||||
We have a capital lease obligation for a warehouse, which can be renewed for 20 years at our option. Minimum payments are determined by an escalatory price clause. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | Note 14. Pension and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||
We have multiple contributory and non-contributory defined benefit pension plans covering a significant portion of our U.S. and Canadian employees. We also sponsor a number of OPEB plans (e.g., defined benefit health care and life insurance plans) for retirees at certain locations. Benefits are based on years of service and, depending on the plan, average compensation earned by employees either during their last years of employment or over their careers. Our plan assets and cash contributions to the plans have been sufficient to provide pension benefits to participants and meet the funding requirements of the Employee Retirement Income Security Act of 1974 in the United States as well as applicable legislation in Canada. In particular, the cash contributions required for our material registered Canadian pension plans are specified in the funding relief regulations with regards to the solvency deficits in the affected plans, as further discussed below under “Canadian pension funding.” | ||||||||||||||||||||||||||||||
In addition to the previously described plans, we have a number of defined contribution plans covering substantially all of our U.S. employees and a significant portion of our Canadian employees. Under the U.S. defined contribution plan, employees are allowed to make contributions that we match. In addition, under the U.S. defined contribution plan, most employees also receive an automatic company contribution, regardless of the employee’s contribution. The amount of the automatic company contribution is a percentage of the employee’s pay, determined based on age and years of service. The Canadian registered defined contribution plans provide for mandatory contributions by employees and by us, as well as opportunities for employees to make additional optional contributions and receive, in some cases, matching contributions on those optional amounts. Our expense for the defined contribution plans totaled $22 million in 2014 and 2013, respectively, and totaled $21 million in 2012. | ||||||||||||||||||||||||||||||
Certain of the above plans are covered under collective bargaining agreements. | ||||||||||||||||||||||||||||||
The following tables include both our foreign (Canada and South Korea) and domestic (U.S.) plans. The assumptions used to measure the obligations of each of our foreign and domestic plans are not significantly different from each other, with the exception of the health care trend rates, which are presented below. | ||||||||||||||||||||||||||||||
The changes in our pension and OPEB obligations and plan assets for the years ended December 31, 2014 and 2013 and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||||||
Benefit obligations as of beginning of year | $ | 6,004 | $ | 6,724 | $ | 310 | $ | 424 | ||||||||||||||||||||||
Service cost | 26 | 33 | 1 | 3 | ||||||||||||||||||||||||||
Interest cost | 274 | 274 | 11 | 16 | ||||||||||||||||||||||||||
Actuarial loss (gain) | 788 | (208 | ) | 10 | (79 | ) | ||||||||||||||||||||||||
Participant contributions | 11 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Plan amendments | — | 18 | (91 | ) | (21 | ) | ||||||||||||||||||||||||
Curtailments | 4 | 7 | — | — | ||||||||||||||||||||||||||
Settlements | (5 | ) | (6 | ) | — | — | ||||||||||||||||||||||||
Benefits paid | (440 | ) | (489 | ) | (23 | ) | (27 | ) | ||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (433 | ) | (367 | ) | (12 | ) | (11 | ) | ||||||||||||||||||||||
Benefit obligations as of end of year | 6,229 | 6,004 | 210 | 310 | ||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||
Fair value of plan assets as of beginning of year | 5,013 | 5,175 | — | — | ||||||||||||||||||||||||||
Actual return on plan assets | 450 | 472 | — | — | ||||||||||||||||||||||||||
Employer contributions | 142 | 133 | 19 | 22 | ||||||||||||||||||||||||||
Participant contributions | 11 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Settlements | (5 | ) | (6 | ) | — | — | ||||||||||||||||||||||||
Benefits paid | (440 | ) | (489 | ) | (23 | ) | (27 | ) | ||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (363 | ) | (290 | ) | — | — | ||||||||||||||||||||||||
Fair value of plan assets as of end of year | 4,808 | 5,013 | — | — | ||||||||||||||||||||||||||
Funded status as of end of year | $ | (1,421 | ) | $ | (991 | ) | $ | (210 | ) | $ | (310 | ) | ||||||||||||||||||
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||||||||||||||||||||||||||||||
Other assets | $ | 5 | $ | 17 | $ | — | $ | — | ||||||||||||||||||||||
Accounts payable and accrued liabilities | (4 | ) | (3 | ) | (16 | ) | (21 | ) | ||||||||||||||||||||||
Pension and OPEB obligations | (1,422 | ) | (1,005 | ) | (194 | ) | (289 | ) | ||||||||||||||||||||||
Net obligations recognized | $ | (1,421 | ) | $ | (991 | ) | $ | (210 | ) | $ | (310 | ) | ||||||||||||||||||
The total benefit obligations and the total fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $5,947 million and $4,521 million, respectively, as of December 31, 2014, and were $5,079 million and $4,071 million, respectively, as of December 31, 2013. The total accumulated benefit obligations and the total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $5,765 million and $4,417 million, respectively, as of December 31, 2014, and were $5,014 million and $4,071 million, respectively, as of December 31, 2013. The total accumulated benefit obligations for all pension plans were $6,150 million and $5,931 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||
Plan amendments | ||||||||||||||||||||||||||||||
In 2014, we modified our U.S. OPEB plan, whereby unionized participants, upon reaching Medicare eligibility, will be provided comparable Medicare coverage via a Medicare Exchange program, effective January 1, 2015. This plan amendment resulted in a prior service credit of $91 million. For additional information on this plan amendment, see Note 8, “Accumulated Other Comprehensive Loss.” In 2013, we also approved an amendment to our U.S. OPEB plan, effective January 1, 2014, whereby salaried retirees, upon reaching Medicare eligibility, are provided comparable Medicare coverage via a Medicare Exchange program. This plan amendment resulted in a prior service credit of $21 million and an actuarial gain of $36 million. | ||||||||||||||||||||||||||||||
In addition, following the restart of our previously closed Gatineau paper mill, 119 employees were reinstated to one of our pension plans in 2013, which resulted in a prior service cost of $18 million. | ||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||
The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $ | 26 | $ | 33 | $ | 36 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||||||||
Interest cost | 274 | 274 | 312 | 11 | 16 | 20 | ||||||||||||||||||||||||
Expected return on plan assets | (300 | ) | (308 | ) | (340 | ) | — | — | — | |||||||||||||||||||||
Amortization of prior service credits | (2 | ) | (2 | ) | — | (11 | ) | (1 | ) | — | ||||||||||||||||||||
Amortization of actuarial losses (gains) | 9 | 25 | — | (4 | ) | (2 | ) | — | ||||||||||||||||||||||
Net periodic benefit cost before special events | 7 | 22 | 8 | (3 | ) | 16 | 23 | |||||||||||||||||||||||
Curtailments and settlements | 4 | 3 | 21 | — | — | — | ||||||||||||||||||||||||
$ | 11 | $ | 25 | $ | 29 | $ | (3 | ) | $ | 16 | $ | 23 | ||||||||||||||||||
The prior service credits and the actuarial gains and losses are amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations, over the expected average remaining service lifetime or the average future lifetime, as applicable, of the respective plans. We estimate that $78 million of actuarial losses and $15 million of prior service credits will be amortized from accumulated other comprehensive loss into our Consolidated Statements of Operations in 2015. | ||||||||||||||||||||||||||||||
The following is a summary of the special events that impacted our net periodic benefit costs as a curtailment or settlement for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Settlements resulting from lump-sum payouts | $ | — | $ | — | $ | 10 | $ | — | $ | — | $ | — | ||||||||||||||||||
Curtailments resulting from closure related and other workforce reductions | 4 | 3 | 11 | — | — | — | ||||||||||||||||||||||||
$ | 4 | $ | 3 | $ | 21 | $ | — | $ | — | $ | — | |||||||||||||||||||
In 2014, we recorded net charges for curtailments related to the permanent closure of our Laurentide and Iroquois Falls paper mills (eliminating approximately 470 positions and resulting in the curtailment of two of our pension plans). The net costs of these curtailments were included in “Closure costs, impairment, and other related charges” in our Consolidated Statements of Operations for the year ended December 31, 2014. | ||||||||||||||||||||||||||||||
In 2013, we recorded charges for curtailments primarily related to an extended period of market-related outage at our Fort Frances paper mill, which was permanently closed on May 6, 2014, resulting in the elimination of approximately 150 positions. The cost of this curtailment was included in “Closure costs, impairment, and other related charges” in our Consolidated Statements of Operations for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||
In 2012, we recorded charges for curtailments and settlements primarily related to the indefinite idling of part of our Mersey operations (eliminating 176 positions), a workforce reduction at our Baie-Comeau paper mill (eliminating 90 positions) and the lump-sum payments for the vested terminated employees in certain of our U.S. pension plans. The cost of these curtailments and settlements was included in “Closure costs, impairment and other related charges” in our Consolidated Statements of Operations for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligations and net periodic benefit cost | ||||||||||||||||||||||||||||||
The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Benefit obligations: | ||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.9 | % | 4.3 | % | 4 | % | 5 | % | 4.2 | % | ||||||||||||||||||
Rate of compensation increase | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.3 | % | 4.9 | % | 5 | % | 4.2 | % | 4.9 | % | ||||||||||||||||||
Expected return on assets | 6.5 | % | 6.3 | % | 6.5 | % | ||||||||||||||||||||||||
Rate of compensation increase | 2.5 | % | 2.5 | % | 1.2 | % | ||||||||||||||||||||||||
The discount rate for our domestic and foreign plans was determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. The discount rate reflects the single rate that produces the same discounted values as the value of the theoretical bond portfolio. In determining the expected return on assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. In determining the rate of compensation increase, we reviewed historical salary increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with our employees and the outlook for our industry. In determining the life expectancy rate of our domestic and foreign plans, we used recently-issued actuarially-determined mortality tables and improvement scales. For the foreign plans, the mortality tables were adjusted with the result of our historical mortality experience study. Consistent with our future expectations, the rate used reflects a longer life expectancy for the employees who participate in our pension and OPEB plans. | ||||||||||||||||||||||||||||||
The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Domestic Plans | Foreign Plans | Domestic Plans | Foreign Plans | |||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.2 | % | 4.4 | % | 7.5 | % | 4.4 | % | ||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.5 | % | 3.8 | % | 4.5 | % | 3.8 | % | ||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2028 | 2033 | 2028 | 2033 | ||||||||||||||||||||||||||
For the health care cost trend rates, we considered historical trends for these costs, actual experience of the plans, recently enacted health care legislation as well as future expectations. | ||||||||||||||||||||||||||||||
Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2014 OPEB obligation and costs for our domestic and foreign plans: | ||||||||||||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||||||||||||
(Dollars in millions) | Domestic Plans | Foreign Plans | Domestic Plans | Foreign Plans | ||||||||||||||||||||||||||
OPEB obligation | $ | 4 | 5 | % | $ | 7 | 5 | % | $ | (3 | ) | (4 | )% | $ | (6 | ) | (4 | )% | ||||||||||||
Service and interest costs | $ | 1 | 15 | % | $ | — | 5 | % | $ | (1 | ) | (13 | )% | $ | — | (4 | )% | |||||||||||||
Fair value of plan assets | ||||||||||||||||||||||||||||||
The fair value of plan assets held by our pension plans as of December 31, 2014 was as follows: | ||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
U.S. companies | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||||||||||||||||
Non-U.S. companies | 1,015 | 723 | 292 | — | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||
Corporate and government securities | 2,715 | 494 | 2,221 | — | ||||||||||||||||||||||||||
Asset-backed securities | 110 | — | 110 | — | ||||||||||||||||||||||||||
Bank loans/foreign annuities | 4 | — | — | 4 | ||||||||||||||||||||||||||
Real estate | 47 | — | — | 47 | ||||||||||||||||||||||||||
Cash and cash equivalents | 197 | 197 | — | — | ||||||||||||||||||||||||||
Accrued interest and dividends | 42 | — | 42 | — | ||||||||||||||||||||||||||
$ | 4,808 | $ | 2,092 | $ | 2,665 | $ | 51 | |||||||||||||||||||||||
The fair value of plan assets held by our pension plans as of December 31, 2013 was as follows: | ||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
U.S. companies | $ | 751 | $ | 751 | $ | — | $ | — | ||||||||||||||||||||||
Non-U.S. companies | 912 | 636 | 276 | — | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||
Corporate and government securities | 2,611 | 240 | 2,371 | — | ||||||||||||||||||||||||||
Asset-backed securities | 161 | — | 161 | — | ||||||||||||||||||||||||||
Bank loans/foreign annuities | 40 | — | — | 40 | ||||||||||||||||||||||||||
Real estate | 48 | — | — | 48 | ||||||||||||||||||||||||||
Cash and cash equivalents | 444 | 444 | — | — | ||||||||||||||||||||||||||
Accrued interest and dividends | 46 | — | 46 | — | ||||||||||||||||||||||||||
$ | 5,013 | $ | 2,071 | $ | 2,854 | $ | 88 | |||||||||||||||||||||||
Equity securities include large-cap and mid-cap publicly-traded companies mainly located in the United States, Canada and other developed countries, as well as commingled equity funds invested in the same types of securities. The fair value of the equity securities is determined based on quoted market prices (Level 1) or the net asset values per share that are derived from the accumulated fair values of the equity securities within the commingled funds (Level 2). | ||||||||||||||||||||||||||||||
Debt securities include corporate bonds of U.S. and Canadian companies from diversified industries, bonds and Treasuries issued by the U.S. government and the Canadian federal and provincial governments, asset-backed securities and commingled fixed income funds invested in these same types of securities. The fair value of the debt securities is determined based on quoted market prices (Level 1), market-corroborated inputs such as matrix prices, yield curves and indices (Level 2) or the net asset values per share that are derived from the accumulated fair values of the debt securities within the commingled funds (Level 2). Bank loan investments are primarily located in the U.S. The fair value of bank loans is determined based on the mid-point of the bid and ask price points (Level 3). | ||||||||||||||||||||||||||||||
Real estate investments are located in Canada. The fair value of the real estate is determined based on an appraisal completed by a national real estate firm. Those appraisers use several valuation concepts, including the cost approach, market approach and income approach (Level 3). | ||||||||||||||||||||||||||||||
The fair value of accrued interest and dividends is determined based on market-corroborated inputs such as declared dividends and stated interest rates (Level 2). | ||||||||||||||||||||||||||||||
The changes in Level 3 pension plan assets for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||
(In millions) | Bank Loans/Foreign | Real Estate | Total | |||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 41 | $ | 46 | $ | 87 | ||||||||||||||||||||||||
Unrealized gains relating to assets held as of December 31, 2013 | 2 | 5 | 7 | |||||||||||||||||||||||||||
Purchases | 40 | — | 40 | |||||||||||||||||||||||||||
Sales | (41 | ) | — | (41 | ) | |||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (2 | ) | (3 | ) | (5 | ) | ||||||||||||||||||||||||
Balance as of December 31, 2013 | 40 | 48 | 88 | |||||||||||||||||||||||||||
Unrealized (losses) gains relating to assets held as of December 31, 2014 | (2 | ) | 3 | 1 | ||||||||||||||||||||||||||
Realized gains | 2 | — | 2 | |||||||||||||||||||||||||||
Purchases | 11 | — | 11 | |||||||||||||||||||||||||||
Sales | (44 | ) | — | (44 | ) | |||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (3 | ) | (4 | ) | (7 | ) | ||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 4 | $ | 47 | $ | 51 | ||||||||||||||||||||||||
Long-term strategy and objective | ||||||||||||||||||||||||||||||
Our investment strategy and objective is to maximize the long-term rate of return on our plan assets within an acceptable level of risk in order to meet our current and future obligations to pay benefits to qualifying employees and their beneficiaries while minimizing and stabilizing pension benefit costs and contributions. One way we accomplish this objective is to diversify our plan investments. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, experienced third-party investment management firms with complementary investment styles and philosophies to implement these allocations. Risk is further managed by reviewing our investment policies at least annually and monitoring our fund managers at least quarterly for compliance with mandates and performance measures. A series of permitted and prohibited investments are listed in our respective investment policies, which are provided to our fund managers. The use of derivative financial instruments for speculative purposes and investments in the equity or debt securities of Resolute Forest Products and its affiliates are prohibited. | ||||||||||||||||||||||||||||||
We have established a target asset allocation and an allowable range from such target asset allocation for our plans based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical returns, prospective capital market returns, forecasted benefit payments and the forecasted timing of those payments. The targeted asset allocation of the plan assets is designed to hedge the change in the pension liabilities resulting from fluctuations in the discount rate by investing in debt and other securities, while also generating excess returns required to reduce the unfunded pension deficit by investing in equity securities with higher potential returns. The targeted asset allocation of the plan assets is 50% equity securities, with an allowable range of 30% to 60%, and 50% debt and other securities, with an allowable range of 40% to 70%, including up to 5% in short-term instruments required for near-term liquidity needs. Approximately 60% of the equity securities are targeted to be invested in the U.S. and Canada, with the balance in other developed and emerging countries. Substantially all of the debt securities are targeted to be invested in the U.S. and Canada. The asset allocation for each plan is reviewed periodically and rebalanced toward the targeted asset mix when the fair value of the investments within an asset class falls outside the predetermined range. | ||||||||||||||||||||||||||||||
Expected benefit payments and future contributions | ||||||||||||||||||||||||||||||
As of December 31, 2014, benefit payments expected to be paid over the next 10 years are as follows: | ||||||||||||||||||||||||||||||
(In millions) | Pension Plans (1) | OPEB Plans | ||||||||||||||||||||||||||||
2015 | $ | 406 | $ | 16 | ||||||||||||||||||||||||||
2016 | 407 | 16 | ||||||||||||||||||||||||||||
2017 | 407 | 15 | ||||||||||||||||||||||||||||
2018 | 407 | 15 | ||||||||||||||||||||||||||||
2019 | 406 | 14 | ||||||||||||||||||||||||||||
2020 - 2024 | 1,976 | 67 | ||||||||||||||||||||||||||||
(1) | Benefit payments are expected be paid from the plans’ net assets. | |||||||||||||||||||||||||||||
We expect our 2015 pension contributions (excluding contributions to our defined contribution plans) to be approximately $129 million, including pension contributions of Cdn $121 million ($104 million, based on the exchange rate in effect on December 31, 2014) related to our Canadian plans. | ||||||||||||||||||||||||||||||
Patient Protection and Affordable Care Act | ||||||||||||||||||||||||||||||
In March 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was enacted, potentially impacting our cost to provide healthcare benefits to eligible active and retired employees. The PPACA has both short-term and long-term implications on benefit plan standards. Implementation of this legislation began in 2010 and is expected to continue in phases from 2011 through 2018. | ||||||||||||||||||||||||||||||
We have analyzed this legislation to determine: (i) the impact of the required plan standard changes on our employee healthcare plans, (ii) the effect of the excise tax on high cost healthcare plans and (iii) the resulting costs. The impact, for those changes that were currently estimable, was not material to our results of operations. In 2013, PPACA also introduced the health insurance exchange system to facilitate the purchase of state health insurance. Individuals may purchase insurance from a set of government standardized plans offering federal subsidies. In light of this new arrangement, we decided to transfer post‑Medicare coverage via a Medicare Exchange program starting in 2014 for U.S. non-unionized employees and in 2015 for U.S. unionized employees. For additional information, see Note 8, “Accumulated Other Comprehensive Loss.” | ||||||||||||||||||||||||||||||
Moving Ahead for Progress in the 21st Century Act and the Highway and Transportation Funding Act | ||||||||||||||||||||||||||||||
In July 2012, the Moving Ahead for Progress in the 21st Century Act (the “MAP-21”) was signed into law, offering optional short-term funding relief for domestic pension plan sponsors. The discount-rate stabilization provision in MAP-21 limits the discount rates applicable in determining funding requirements to rates within a specified corridor of a 25-year average. Additionally, in August 2014, the Highway and Transportation Funding Act (the “HATFA”) was signed into law, further extending the interest rate corridors implemented via the MAP-21. As a result of these enactments, the corridor was 10% and 15% of a 25-year average in 2014 and 2013, respectively. Under the HATFA, the corridor will be maintained at 10% through 2017, and widen an additional 5% each year to 30% in 2021 and beyond. Both enactments provide relief in the form of reduced minimum required contributions, and therefore, the required contributions for our domestic plans in 2014 and 2013 were reduced by $35 million and $23 million, respectively. | ||||||||||||||||||||||||||||||
Canadian pension funding | ||||||||||||||||||||||||||||||
Funding relief measures | ||||||||||||||||||||||||||||||
The funding of our material Canadian registered pension plans, which we refer to as the “affected plans,” representing approximately 70% of our unfunded pension obligations as of December 31, 2014, is governed by regulations specific to us, adopted by the provinces of Ontario and Québec. We refer to these regulations, the effect of which will lapse in 2020, as the “funding relief regulations.” | ||||||||||||||||||||||||||||||
As amended, the funding relief regulations provide that our aggregate annual contribution in respect of the solvency deficits in the affected plans for each year until 2020 is limited to a Cdn $80 million basic contribution and a supplemental contribution, beginning in 2016, if the plans’ aggregate solvency ratio is more than 2% below the target specified in the regulations for the preceding year, subject to certain conditions. The first such supplemental contribution, if any, which essentially prevents payments of benefits from further depleting the plans’ solvency ratio, is capped at Cdn $25 million. Any amount payable in respect of any subsequent year would be payable over a three year period. | ||||||||||||||||||||||||||||||
As part of the amendments to the funding relief regulations adopted in 2014, the annual basic contribution in respect of the solvency deficits in the affected plans was increased from Cdn $50 million to Cdn $80 million for each year from 2013 through 2020. The regulations previously included a conditional additional contribution feature based on a measure of free cash flow (as determined in accordance with the regulations), which would have applied as of 2013 below a certain solvency threshold, but this was removed in connection with the 2014 amendments. | ||||||||||||||||||||||||||||||
Should a plan move to surplus before the funding relief regulations expire in 2020, it will cease to be subject to the regulations. After 2020, the funding rules in place at the time will apply to any remaining deficit, if any. | ||||||||||||||||||||||||||||||
In connection with the establishment of the original funding relief regulations, our principal Canadian operating subsidiary made a number of undertakings applicable until the end of 2015, with a commitment to re-evaluate after the end of the initial term. As such, our subsidiary undertook to: | ||||||||||||||||||||||||||||||
• | not pay a dividend at any time when the weighted average solvency ratio of its affected plans is less than 80%; | |||||||||||||||||||||||||||||
• | abide by the compensation plan detailed in the Plans of Reorganization with respect to salaries, bonuses and severance; | |||||||||||||||||||||||||||||
• | direct at least 60% of the maintenance and value-creation investments earmarked for our Canadian pulp and paper operations to projects in Québec and at least 30% to projects in Ontario; | |||||||||||||||||||||||||||||
• | invest a minimum of Cdn $50 million over a two to three year construction period for a new condensing turbine at our Thunder Bay, Ontario, facility, subject to certain conditions; | |||||||||||||||||||||||||||||
• | invest at least Cdn $75 million in strategic projects in Québec over a five-year period; | |||||||||||||||||||||||||||||
• | maintain our head office and the then-current related functions in Québec; | |||||||||||||||||||||||||||||
• | make an additional solvency deficit reduction contribution to its pension plans of Cdn $75, payable over four years, for each metric ton of capacity reduced in Québec or Ontario, in the event of downtime of more than six consecutive months or nine cumulative months over a period of 18 months; | |||||||||||||||||||||||||||||
• | create a diversification fund by contributing Cdn $2 million per year for five years for the benefit of the municipalities and workers in our Québec operating regions; | |||||||||||||||||||||||||||||
• | pay an aggregate of Cdn $5 million over five years to be used for such environmental remediation purposes instructed by the province of Ontario; and | |||||||||||||||||||||||||||||
• | maintain and renew certain financial assurances with the province of Ontario in respect of certain properties in the province. | |||||||||||||||||||||||||||||
Concerning the undertaking to make an additional solvency deficit reduction contribution for capacity reductions in Québec or Ontario, as part of the 2014 amendments to the funding relief regulations, it was determined that no additional contribution would be made in respect of any capacity reduction in Québec before April 13, 2013. The application of this undertaking in respect of capacity reductions in Ontario has yet to be settled. As a result of this undertaking to the provinces, starting in 2015 and for each of the next three years, we expect we will be required to make additional contributions of approximately Cdn $20 million. | ||||||||||||||||||||||||||||||
As originally adopted, the funding relief regulations provided that corrective measures would be required if the aggregate solvency ratio in the affected plans fell below a prescribed level under the targets specified by the regulations as of December 31 in any year through 2014. This requirement was definitively removed with the amendments to the funding relief regulations adopted in 2014. But according to the Ontario regulations, the corresponding 2011 and 2012 amounts in respect of Ontario plans (Cdn $110 million in the aggregate) have been deferred to after the expiration of the funding relief regulations in 2020, and will then be payable over five years in equal monthly installments starting on December 31, 2021, but only up to the elimination of the then remaining deficit, if any. | ||||||||||||||||||||||||||||||
Solvency deficit | ||||||||||||||||||||||||||||||
The requirement to make supplemental contributions is based in part on the aggregate solvency ratio of the affected plans. The aggregate solvency ratio calculation is based on a number of factors and assumptions, including the accrued benefits to be provided by the plans, interest rate levels, membership data and demographic experience. The assumptions used in the solvency calculation are materially different from the assumptions used to arrive at net pension and OPEB obligations for purposes of our consolidated financial statements. | ||||||||||||||||||||||||||||||
Under Canadian actuarial rules for solvency determinations, the liabilities are calculated on the assumption that the plans are terminated at the measurement date (each December 31 for the affected plans), and the liabilities are discounted primarily using a specified annuity purchase rate, which is that day’s spot interest rate on government securities in Canada plus a prescribed margin. By contrast, for purposes of our consolidated financial statements, the discount rate is determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. | ||||||||||||||||||||||||||||||
As of December 31, 2014, a 1% change in the discount rate for solvency purposes would result in an approximate Cdn $380 million ($330 million, based on the exchange rate in effect on December 31, 2014) change in the solvency deficit. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Note 15. Income Taxes | ||||||||||||
Loss before income taxes by taxing jurisdiction for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | (221 | ) | $ | (168 | ) | $ | (34 | ) | ||||
Foreign | (83 | ) | 53 | (38 | ) | ||||||||
$ | (304 | ) | $ | (115 | ) | $ | (72 | ) | |||||
The income tax benefit (provision) for the years ended December 31, 2014, 2013 and 2012 was comprised of the following: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
U.S. Federal and State: | |||||||||||||
Current | $ | (4 | ) | $ | — | $ | (2 | ) | |||||
Deferred | 6 | (504 | ) | 17 | |||||||||
2 | (504 | ) | 15 | ||||||||||
Foreign: | |||||||||||||
Current | (2 | ) | (1 | ) | 5 | ||||||||
Deferred | 30 | (19 | ) | 19 | |||||||||
28 | (20 | ) | 24 | ||||||||||
Total: | |||||||||||||
Current | (6 | ) | (1 | ) | 3 | ||||||||
Deferred | 36 | (523 | ) | 36 | |||||||||
$ | 30 | $ | (524 | ) | $ | 39 | |||||||
The income tax benefit (provision) attributable to loss before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the years ended December 31, 2014, 2013 and 2012 as a result of the following: | |||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Loss before income taxes | $ | (304 | ) | $ | (115 | ) | $ | (72 | ) | ||||
Income tax benefit (provision): | |||||||||||||
Expected income tax benefit | 106 | 40 | 25 | ||||||||||
Changes resulting from: | |||||||||||||
Valuation allowance (1) | (51 | ) | (572 | ) | (24 | ) | |||||||
Reorganization-related and other tax adjustments (2) | — | — | 13 | ||||||||||
Foreign exchange | (17 | ) | (4 | ) | 10 | ||||||||
Research and development tax incentives | 1 | 2 | 8 | ||||||||||
State income taxes, net of federal income tax benefit | 5 | 3 | 1 | ||||||||||
Foreign tax rate differences | (8 | ) | 4 | 1 | |||||||||
Other, net | (6 | ) | 3 | 5 | |||||||||
$ | 30 | $ | (524 | ) | $ | 39 | |||||||
(1) | During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily due to an increase in the valuation allowance related to our U.S. operations, where we do not recognize net deferred income tax assets, partly offset by a tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary. See “Deferred income taxes” section below for a further discussion of the valuation allowance. | ||||||||||||
During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. | |||||||||||||
During 2012, the increase in the valuation allowance primarily related to costs associated with the indefinite idling of our Mersey operations prior to the sale, where we did not recognize tax benefits, as well as an increase in the valuation allowance for certain benefits in Canada and the U.S. that were expected to expire unused. Partially offsetting these increases was a release of valuation allowance related to the U.S. Fibrek operations, following an internal reorganization where the U.S. Fibrek group joined our U.S. consolidated group. | |||||||||||||
(2) | During 2012, we recorded reorganization-related and other tax adjustments, which represented adjustments to our previously-reported tax balance sheet accounts. | ||||||||||||
Deferred income taxes | |||||||||||||
At each reporting period, we assess whether it is more likely than not that the deferred income tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results and prudent and feasible tax planning strategies. The carrying value of our deferred income tax assets reflects our expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. | |||||||||||||
In 2013, following the assessment of our ability to realize the deferred income tax assets of our U.S. operations, we concluded that existing negative evidence outweighed positive evidence and that a full valuation allowance against our net deferred income tax assets was required. The recent cumulative loss of our U.S. operations limited our ability to consider other subjective positive evidence, such as projections of future earnings. As a result, for the year ended December 31, 2013, we recorded a charge in order to establish a full valuation allowance against our net U.S. deferred income tax assets. For the year ended December 31, 2014, negative evidence still outweighed positive evidence and we maintained a full valuation allowance against our net U.S. deferred income tax assets. A valuation allowance does not reduce our underlying tax attributes, nor hinders our ability to use them in the future. | |||||||||||||
The weight of positive evidence, which included a review of historical cumulative earnings and our expected future performance, resulted in the conclusion by management that valuation allowances were not required for our deferred income tax assets in Canada, as they were determined to be more likely than not to be realized. During 2014, Fibrek Holding Inc., a Canadian wholly-owned subsidiary, emerged from a three-year cumulative loss position, primarily due to improved profitability over the preceding two years. Considering its recent earnings history and positive outlook, we determined that a valuation allowance on the net deferred income tax assets was no longer required as of December 31, 2014, and a tax benefit was recorded as a result of the reversal of the valuation allowance. | |||||||||||||
Deferred income taxes as of December 31, 2014 and 2013 were comprised of the following: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Fixed assets | $ | (191 | ) | $ | (236 | ) | |||||||
Deferred gains | — | (41 | ) | ||||||||||
Other liabilities | (13 | ) | (54 | ) | |||||||||
Deferred income tax liabilities | (204 | ) | (331 | ) | |||||||||
Fixed assets | 591 | 575 | |||||||||||
Pension and OPEB plans | 480 | 389 | |||||||||||
Ordinary loss carryforwards | 767 | 843 | |||||||||||
Capital loss carryforwards (1) | 3 | 444 | |||||||||||
Research and development expense pool | 204 | 223 | |||||||||||
Tax credit carryforwards | 109 | 119 | |||||||||||
Other assets | 91 | 99 | |||||||||||
Deferred income tax assets | 2,245 | 2,692 | |||||||||||
Valuation allowance | (755 | ) | (1,121 | ) | |||||||||
Net deferred income tax assets | $ | 1,286 | $ | 1,240 | |||||||||
Amounts recognized in our Consolidated Balance Sheets consisted of: | |||||||||||||
Deferred income tax assets – current | $ | 70 | $ | 32 | |||||||||
Deferred income tax assets – noncurrent | 1,219 | 1,266 | |||||||||||
Deferred income tax liabilities - current | — | (32 | ) | ||||||||||
Deferred income tax liabilities – noncurrent | (3 | ) | (26 | ) | |||||||||
Net deferred income tax assets | $ | 1,286 | $ | 1,240 | |||||||||
(1) | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. | ||||||||||||
The balance of tax attributes and their dates of expiration as of December 31, 2014 were as follows: | |||||||||||||
(In millions) | Related | Year of | |||||||||||
Deferred | Expiration | ||||||||||||
Income Tax | |||||||||||||
Asset | |||||||||||||
Ordinary loss carryforwards: | |||||||||||||
U.S. Federal ordinary loss carryforwards of $1,788 | $ | 626 | (1 | ) | 2021 – 2034 | ||||||||
U.S. State ordinary loss carryforwards of $1,710 | 70 | (1 | ) | 2015 – 2034 | |||||||||
Canadian Federal and provincial (excluding Québec) ordinary loss carryforwards of $131 | 20 | 2023 – 2032 | |||||||||||
Québec ordinary loss carryforwards of $289 | 28 | 2023 – 2032 | |||||||||||
Other ordinary loss carryforwards | 23 | 2019 – 2024 | |||||||||||
$ | 767 | ||||||||||||
Capital loss carryforwards: | |||||||||||||
Canadian capital loss carryforwards of $11 | 3 | Indefinite | |||||||||||
$ | 3 | ||||||||||||
Research and development expense pool: | |||||||||||||
Canadian Federal and provincial (excluding Québec) research and development expense pool of $722 | $ | 129 | Indefinite | ||||||||||
Québec research and development expense pool of $884 | 75 | Indefinite | |||||||||||
$ | 204 | ||||||||||||
Tax credit carryforwards: | |||||||||||||
Canadian research and development tax credit carryforwards | $ | 106 | 2022 – 2034 | ||||||||||
U.S. State tax credit carryforwards | 3 | (1 | ) | 2015 – 2029 | |||||||||
$ | 109 | ||||||||||||
(1) | As of December 31, 2014, we had a full valuation allowance against our U.S. operations net deferred income tax assets. | ||||||||||||
Our U.S. federal net operating loss carryforwards are subject to the U.S. Internal Revenue Code of 1986, as amended § 382 (“IRC § 382”) limitation, resulting from a previous ownership change. We do not expect that IRC § 382 would limit the utilization of our available U.S. federal net operating loss carryforwards prior to their expiration. | |||||||||||||
We consider our foreign earnings to be permanently invested. Accordingly, we do not currently provide for the additional United States and foreign income taxes that would become payable upon remittance of undistributed earnings of foreign subsidiaries. The cumulative undistributed earnings of these subsidiaries as of December 31, 2014 are not material. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. | |||||||||||||
Unrecognized tax benefits | |||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2014 and 2013: | |||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Beginning of year | $ | 81 | $ | 84 | |||||||||
(Decrease) increase in unrecognized tax benefits resulting from: | |||||||||||||
Positions taken in a prior period | — | (1 | ) | ||||||||||
Positions taken in the current period | 38 | 4 | |||||||||||
Settlements with taxing authorities | (4 | ) | — | ||||||||||
Change in Canadian foreign exchange rate | (6 | ) | (6 | ) | |||||||||
End of year | $ | 109 | $ | 81 | |||||||||
We recognize interest and penalties accrued on unrecognized tax benefits as components of the income tax provision. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $68 million. | |||||||||||||
In the normal course of business, we are subject to audits from federal, state, provincial and other tax authorities. U.S. federal tax returns for 2011 and future years, as well as Canadian tax returns for 2009 and future years remain subject to examination by tax authorities. | |||||||||||||
We do not expect a significant change to the amount of unrecognized tax benefits over the next twelve months. However, any adjustments arising from certain ongoing examinations by taxing authorities could alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions, and these adjustments could differ from the amount accrued. We believe that taxes accrued in our Consolidated Balance Sheets fairly represent the amount of income taxes to be settled or realized in the future. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies |
Legal matters | |
We become involved in various legal proceedings and other disputes in the normal course of business, including matters related to contracts, commercial disputes, taxes, environmental issues, activists damages, employment and workers’ compensation claims, Aboriginal claims and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of December 31, 2014, will not have a material adverse effect on our consolidated financial statements. | |
Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.4% of the outstanding Fibrek shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Québec Superior Court in Canada approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised (or purported to exercise) rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act. No consideration has to date been paid to the former Fibrek shareholders who exercised (or purported to exercise) rights of dissent. Any such consideration will only be paid out upon settlement or judicial determination of the fair value of their claims and will be paid entirely in cash. Accordingly, we cannot presently determine the amount that ultimately will be paid to former holders of Fibrek shares in connection with the proceedings, but we have accrued approximately Cdn $14 million ($12 million, based on the exchange rate in effect on December 31, 2014) for the eventual payment of those claims. | |
On June 12, 2012, we filed a motion for directives with the Québec Superior Court in Canada, the court with the jurisdiction in the CCAA Creditor Protection Proceedings, seeking an order to prevent pension regulators in each of Québec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. These plans are subject to the funding relief regulations described in Note 14, “Pension and Other Postretirement Benefit Plans - Canadian pension funding,” and we contend, among other things, that any such declaration, if issued, would be inconsistent with the Québec Superior Court in Canada’s sanction order confirming the CCAA Reorganization Plan and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to Cdn $150 million ($130 million based on the exchange rate in effect on December 31, 2014), would have to be funded if we do not obtain the relief sought. No hearing date has been set to date. | |
Environmental matters | |
We are subject to a variety of federal, state, provincial and local environmental laws and regulations in the jurisdictions in which we operate. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated in the future could require substantial additional expenditures for compliance and could have a material impact on us, in particular, and the industry in general. | |
We may be a “potentially responsible party” with respect to four hazardous waste sites that are being addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“Superfund”) or the Resource Conservation and Recovery Act (“RCRA”) corrective action authority. We believe we will not be liable for any significant amounts at any of these sites. | |
We have recorded $18 million and $9 million of environmental liabilities as of December 31, 2014 and 2013, respectively. The increase in 2014 is mostly related to the permanent closure of our Laurentide and Iroquois Falls paper mills. The amount of these liabilities represents management’s estimate based on an assessment of relevant factors and assumptions of the ultimate settlement and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time. These liabilities are included in “Accounts payable and accrued liabilities” or “Other long-term liabilities” in our Consolidated Balance Sheets. | |
We have also recorded $22 million and $17 million of asset retirement obligations as of December 31, 2014 and 2013, respectively, primarily consisting of liabilities for landfills, sludge basins and decontamination of closed sites. These liabilities are included in “Accounts payable and accrued liabilities” or “Other long-term liabilities” in our Consolidated Balance Sheets. | |
Other matters | |
On October 30, 2014, we received a notice from the Ministry of Natural Resources and Forestry of Ontario (the “MNRF”) directing us to repay a conditional incentive of Cdn $23 million ($20 million based on the exchange rate in effect on December 31, 2014) offered in 2007 toward the construction of an electricity-producing turbine, should we fail to restart our Fort Frances pulp and paper mill or otherwise implement an alternative remedy that is acceptable to the MNRF by December 2, 2014 (the “remedy date”). On December 22, 2014, the MNRF extended the remedy date to May 1, 2015. We announced the permanent closure of the mill in the second quarter of 2014 and have been exploring a number of opportunities for the mill. We are not presently able to determine the outcome of this process, but we currently believe that we could reach an acceptable outcome for the MNRF within the time limit prescribed. Accordingly, we have recorded no contingent liability in respect of this notice in our Consolidated Balance Sheet as of December 31, 2014. | |
Other representations, warranties and indemnifications | |
In the normal course of our business, we make representations and warranties, and offer indemnities to counterparties in connection with commercial transactions such as asset sales and other commercial agreements. Indemnification obligations generally are related to contingencies that are not expected to occur at the time of the agreement. We cannot predict with any degree of certainty the potential maximum exposure in respect of these indemnification obligations 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, we have recognized no material liabilities in this respect in our consolidated financial statements. |
Share_Capital
Share Capital | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Share Capital | Note 17. Share Capital |
Overview | |
We are authorized under our certificate of incorporation, as amended and restated, to issue up to 200 million shares of capital stock, consisting of: (i) 190 million shares of common stock, par value $0.001 per share and (ii) 10 million shares of preferred stock, par value $0.001 per share. | |
Preferred stock | |
As of December 31, 2014 and 2013, no preferred shares were issued and outstanding. | |
Common stock | |
In 2010 and pursuant to the Plans of Reorganization, we issued an aggregate of 97,134,954 shares of common stock for the benefit of unsecured creditors of the Debtors in the Creditor Protection Proceedings and also reserved 9,020,960 shares for issuance under the predecessor to the Resolute Forest Products Equity Incentive Plan (as amended, the “Incentive Plan”). | |
As of December 31, 2012, 93,117,807 shares of common stock had been distributed to the holders of unsecured claims as of the applicable distribution record date under the Plans of Reorganization on account of allowed unsecured creditor claims. During the year ended December 31, 2013, an additional 3,693,601 shares of common stock had been distributed to the holders of unsecured claims from the share reserve established for disputed claims, leaving no remaining unresolved claim. | |
Because the aggregate of allowed claims against certain Chapter 11 Debtors was resolved for less than was originally reserved when the disputed claim share reserve was established, and because certain of the CCAA Debtors had no creditor, the remaining 276,662 shares and 46,884 shares, respectively, unallocated under the respective Plan of Reorganization were transferred to us in 2013 and accounted as treasury stock. The Debtors’ Chapter 11 cases are closed; the CCAA proceedings have yet to be closed as the monitor is continuing to assist in certain post-emergence court proceedings. | |
Consistent with the confirmation order in respect of our Chapter 11 Reorganization Plan and applicable law, we relied on section 1145(a)(1) of Chapter 11 to exempt the issuance of these shares of common stock and their distribution to unsecured creditors from the registration requirements of the Securities Act of 1933 (as amended, the “Securities Act”). | |
Treasury stock | |
On May 22, 2012, our board of directors approved a share repurchase program of up to 10% of our common stock, for an aggregate purchase price of up to $100 million. During the year ended December 31, 2012, we repurchased 5,610,152 shares at a cost of $67 million. We did not repurchase shares since then. | |
On July 31, 2012, we distributed 503,054 shares from treasury as part of the consideration in the final step of the transaction to acquire the remaining non-controlling interest in Fibrek. For additional information, see Note 3, “Acquisition of Fibrek Inc.” | |
In 2013, we also transferred 323,546 shares of common stock from the disputed share reserve, as described above. | |
Dividends | |
We did not declare or pay any dividends on our common stock during the years ended December 31, 2014, 2013 and 2012. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Share-Based Compensation | Note 18. Share-Based Compensation | |||||||||||||
Overview | ||||||||||||||
The Incentive Plan, which became effective in 2010 and is administered by the human resources and compensation/nominating and governance committee of the board of directors, provides for the grant of equity-based awards, including stock options, stock appreciation rights, restricted stock, RSUs, DSUs, PSUs (collectively, “stock incentive awards”) and cash incentive awards to certain of our officers, directors, employees, consultants and advisors. As discussed in Note 17, “Share Capital,” we have been authorized to issue stock incentive awards for up to 9 million shares under the Incentive Plan. | ||||||||||||||
In 2011, the board of directors adopted the Resolute Forest Products Outside Director Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows non-employee directors to surrender 50% or 100% of their cash fees in exchange for DSUs or RSUs, as applicable based on the director’s country of residency. The number of awards issued pursuant to the Deferred Compensation Plan is based on 110% of the fees earned, resulting in a 10% premium incentive. | ||||||||||||||
As of December 31, 2014 and 2013, all of our outstanding stock incentive awards pursuant to the Incentive Plan were accounted for as equity-classified, service-based awards and all of our outstanding stock incentive awards pursuant to the Deferred Compensation Plan were accounted for as liability awards. As of December 31, 2014, approximately 5.5 million shares were available for issuance under the Incentive Plan. | ||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, share-based compensation expense was $6 million (no tax benefit), $8 million (no tax benefit) and $5 million ($1 million of tax benefit), respectively. As of December 31, 2014, there was approximately $18 million of unrecognized compensation cost, which is expected to be recognized over a remaining service period of 2.9 years. | ||||||||||||||
Retirement eligibility period | ||||||||||||||
Employees who retire (upon meeting certain age and service criteria) at least six months after the grant date and prior to the end of the four-year vesting period will be allowed to continue vesting in their awards after retirement in accordance with the normal vesting schedule. The requisite service periods for the stock incentive awards are reduced on an individual basis, as necessary, to reflect the grantee’s individual retirement eligibility date (“the retirement eligibility period”). | ||||||||||||||
Stock options | ||||||||||||||
In 2014, we did not grant any stock options. In 2013 and 2012, we made grants of 692,759 and 785,885 stock options, respectively, to our non-employee directors and to certain employees using the following weighted-average assumptions: | ||||||||||||||
2013 | 2012 | |||||||||||||
Exercise price | $ | 15.66 | $ | 11.41 | ||||||||||
Fair value | $ | 7.65 | $ | 5.59 | ||||||||||
Expected dividend yield | — | — | ||||||||||||
Expected volatility | 50 | % | 50.6 | % | ||||||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | ||||||||||
Expected life in years | 6.25 | 6.25 | ||||||||||||
The stock options become exercisable ratably over a period of four years, or the retirement eligibility period, whichever is shorter, and, unless terminated earlier in accordance with their terms, expire 10 years from the date of grant. New shares of our common stock are issued upon the exercise of a stock option. In certain cases, we withhold shares in respect of option costs and applicable taxes. | ||||||||||||||
We calculated the grant-date fair value of the stock options using the Black-Scholes option pricing model. The payment of dividends is subject to certain restrictions under the 2023 Notes indenture and the credit agreement that governs the ABL Credit Facility; therefore, we assumed an expected dividend yield of zero. Due to the short trading history of our common stock, we estimated the expected volatility based on the historical volatility of a peer group within our industry measured over a term approximating the expected life of the options. We estimated the risk-free interest rate based on a zero-coupon U.S. Treasury instrument with a remaining term approximating the expected life of the options. Historical exercise data attributable to stock incentive awards granted after our common stock began publicly trading is limited; therefore, we used the simplified method permitted by Staff Accounting Bulletin Topic 14 to estimate the expected life of the options. Under this approach, the expected life is presumed to be the midpoint between the vesting date and the end of the contractual term. | ||||||||||||||
The activity of stock options for the year ended December 31, 2014 was as follows: | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Contractual | Value | ||||||||||||
Price | Life (years) | (in millions) | ||||||||||||
Outstanding as of December 31, 2013 | 2,029,303 | $ | 15.56 | 8.7 | $ | — | ||||||||
Exercised | (399,356 | ) | 14.01 | |||||||||||
Forfeited / expired | (46,006 | ) | 18.12 | |||||||||||
Outstanding as of December 31, 2014 | 1,583,941 | $ | 15.87 | 7.8 | $ | 4 | ||||||||
Exercisable as of December 31, 2014 | 656,959 | $ | 18.16 | 7 | $ | 1 | ||||||||
The total intrinsic value of stock options exercised in 2014 was $2 million. | ||||||||||||||
Restricted stock units and deferred stock units | ||||||||||||||
In 2014 and 2013, we made grants of RSUs and DSUs to certain employees and to our non-employee directors pursuant to the Incentive Plan and the Deferred Compensation Plan, respectively. | ||||||||||||||
Under the Incentive Plan, each RSU and DSU provides the holder the right to receive one share of our common stock upon vesting. The awards vest ratably over a period of one year for directors and four years for employees, or over the retirement eligibility period, whichever is shorter. Awards to employees are settled with shares of stock upon vesting, while awards to directors are settled with shares of stock ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. New shares of our common stock are issued upon the settlement of a RSU or DSU issued. In certain cases, we withhold shares in respect of applicable taxes. | ||||||||||||||
Under the Deferred Compensation Plan, each RSU and DSU provides the holder the right to receive payment in cash in an amount equal to the fair market value of one share of our common stock upon vesting. The awards have a nonforfeitable right or vest ratably over a period of three years, as applicable, and are settled with cash ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. | ||||||||||||||
The activity of RSUs and DSUs for the year ended December 31, 2014 was as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Units | Average Fair | |||||||||||||
Value at Grant | ||||||||||||||
Date | ||||||||||||||
Outstanding as of December 31, 2013 | 960,451 | $ | 15.13 | |||||||||||
Granted (1) | 411,791 | 18.62 | ||||||||||||
Vested and settled (2) | (304,997 | ) | 14.65 | |||||||||||
Forfeited | (26,826 | ) | 13.46 | |||||||||||
Outstanding as of December 31, 2014 (3) | 1,040,419 | $ | 16.69 | |||||||||||
(1) | Includes 17,064 DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | |||||||||||||
(2) | Includes 9,653 awards that vested prior to 2014, but settled in 2014. | |||||||||||||
(3) | Includes 80,844 vested awards that have not been settled, of which 46,955 awards are DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | |||||||||||||
The weighted-average grant-date fair value of all RSUs and DSUs granted in 2013 and 2012 was $16.15 and $11.66, respectively. The total fair value of RSUs and DSUs vested in 2014, 2013 and 2012 was $5 million, $3 million and $1 million, respectively. | ||||||||||||||
Performance stock units | ||||||||||||||
In 2014, we made grants of PSUs to certain employees pursuant to the Incentive Plan. Each PSU provides the holder the right to receive one share of our common stock as of the settlement date, subject to vesting and a performance adjustment. The awards vest after a period of 40 months. New shares of our common stock are issued upon the settlement of a PSU issued pursuant to the Incentive Plan. We withhold shares in respect of applicable taxes. | ||||||||||||||
The activity of PSUs for the year ended December 31, 2014 was as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Units | Average Fair | |||||||||||||
Value at Grant | ||||||||||||||
Date | ||||||||||||||
Outstanding as of December 31, 2013 | — | $ | — | |||||||||||
Granted | 296,443 | 18.61 | ||||||||||||
Forfeited | (1,682 | ) | 18.61 | |||||||||||
Outstanding as of December 31, 2014 | 294,761 | $ | 18.61 | |||||||||||
Operating_Leases_and_Purchase_
Operating Leases and Purchase Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Operating Leases and Purchase Obligations | Note 19. Operating Leases and Purchase Obligations | ||||||||
We lease office premises, office equipment and transportation equipment under operating leases for which total expense was $7 million in 2014, $12 million in 2013 and $13 million in 2012. In the normal course of business, we have also entered into various supply agreements, guarantees, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). | |||||||||
As of December 31, 2014, the future minimum rental payments under operating leases and commitments for purchase obligations were as follows: | |||||||||
(In millions) | Purchase Obligations (1) | Operating | |||||||
Leases | |||||||||
2015 | $ | 155 | $ | 3 | |||||
2016 | 119 | 3 | |||||||
2017 | 96 | 3 | |||||||
2018 | 69 | 3 | |||||||
2019 | 34 | 2 | |||||||
Thereafter | 56 | 6 | |||||||
$ | 529 | $ | 20 | ||||||
(1) | Includes energy purchase obligations of $296 million through 2026 for certain of our pulp and paper mills. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information | Note 20. Segment Information | ||||||||||||||||||||||||
We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: newsprint, specialty papers, market pulp and wood products. | |||||||||||||||||||||||||
None of the income or loss items following “Operating loss” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, severance costs, inventory write-downs related to closures, start-up costs, net gain on disposition of assets, transaction costs, as well as other discretionary charges or credits are not allocated to our segments. We allocate depreciation and amortization expense to our segments, although the related fixed assets and amortizable intangible assets are not allocated to segment assets. Additionally, all selling, general and administrative expenses, excluding severance costs and certain discretionary charges and credits, are allocated to our segments. | |||||||||||||||||||||||||
In each of 2014, 2013 and 2012, no assets were identifiable by segment and reviewed by management. All assets were therefore included in Corporate and other. | |||||||||||||||||||||||||
Information about certain segment data for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
(In millions) | Newsprint | Specialty | Market | Wood | Corporate | Consolidated | |||||||||||||||||||
Papers | Pulp (1) | Products | and Other | Total | |||||||||||||||||||||
Sales | |||||||||||||||||||||||||
2014 | $ | 1,402 | $ | 1,272 | $ | 974 | $ | 610 | $ | — | $ | 4,258 | |||||||||||||
2013 | 1,473 | 1,366 | 1,053 | 569 | — | 4,461 | |||||||||||||||||||
2012 | 1,627 | 1,562 | 814 | 500 | — | 4,503 | |||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||
2014 | $ | 69 | $ | 82 | $ | 53 | $ | 33 | $ | 6 | $ | 243 | |||||||||||||
2013 | 73 | 77 | 52 | 36 | 5 | 243 | |||||||||||||||||||
2012 | 72 | 83 | 44 | 34 | — | 233 | |||||||||||||||||||
Operating income (loss) (2) | |||||||||||||||||||||||||
2014 | $ | 23 | $ | (17 | ) | $ | 66 | $ | 69 | $ | (315 | ) | $ | (174 | ) | ||||||||||
2013 | 40 | 35 | 42 | 41 | (160 | ) | (2 | ) | |||||||||||||||||
2012 | 97 | 85 | (43 | ) | 26 | (193 | ) | (28 | ) | ||||||||||||||||
Capital expenditures | |||||||||||||||||||||||||
2014 | $ | 39 | $ | 34 | $ | 23 | $ | 77 | $ | 20 | $ | 193 | |||||||||||||
2013 | 57 | 17 | 40 | 31 | 16 | 161 | |||||||||||||||||||
2012 | 58 | 22 | 40 | 22 | 27 | 169 | |||||||||||||||||||
(1) | For the years ended December 31, 2014, 2013 and 2012, market pulp sales excluded inter-segment sales of $19 million, $17 million and $36 million, respectively. | ||||||||||||||||||||||||
(2)Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net gain on disposition of assets | $ | 2 | $ | 2 | $ | 35 | |||||||||||||||||||
Closure costs, impairment and other related charges | (278 | ) | (89 | ) | (185 | ) | |||||||||||||||||||
Inventory write-downs related to closures | (17 | ) | (11 | ) | (12 | ) | |||||||||||||||||||
Severance costs | — | — | (5 | ) | |||||||||||||||||||||
Transaction costs | — | (6 | ) | (8 | ) | ||||||||||||||||||||
Start-up costs | (4 | ) | (32 | ) | (13 | ) | |||||||||||||||||||
$ | (297 | ) | $ | (136 | ) | $ | (188 | ) | |||||||||||||||||
Sales are attributed to countries based on the location of the customer. No single customer, related or otherwise, accounted for 10% or more of our 2014, 2013 or 2012 consolidated sales. No country in the “Other countries” group in the table below exceeded 2% of consolidated sales. Sales by country for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
United States | $ | 2,809 | $ | 2,834 | $ | 2,766 | |||||||||||||||||||
Foreign countries: | |||||||||||||||||||||||||
Canada | 540 | 546 | 636 | ||||||||||||||||||||||
Mexico | 174 | 168 | 140 | ||||||||||||||||||||||
Brazil | 107 | 122 | 154 | ||||||||||||||||||||||
Italy | 51 | 85 | 105 | ||||||||||||||||||||||
Other countries | 577 | 706 | 702 | ||||||||||||||||||||||
1,449 | 1,627 | 1,737 | |||||||||||||||||||||||
$ | 4,258 | $ | 4,461 | $ | 4,503 | ||||||||||||||||||||
Long-lived assets by country (excluding deferred income tax assets) as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||||||||
United States | $ | 798 | $ | 967 | |||||||||||||||||||||
Foreign countries: | |||||||||||||||||||||||||
Canada | 1,346 | 1,564 | |||||||||||||||||||||||
South Korea | 24 | 26 | |||||||||||||||||||||||
1,370 | 1,590 | ||||||||||||||||||||||||
$ | 2,168 | $ | 2,557 | ||||||||||||||||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||
Condensed Consolidating Financial Information | Note 21. Condensed Consolidating Financial Information | ||||||||||||||||||||
The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act in connection with Resolute Forest Products Inc.’s 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (the “Guarantor Subsidiaries”). The 2023 Notes are not guaranteed by our foreign subsidiaries and our less than 100% owned U.S. subsidiaries (the “Non-guarantor Subsidiaries”). | |||||||||||||||||||||
The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive Loss for the years ended December 31, 2014, 2013 and 2012, the Balance Sheets as of December 31, 2014 and 2013, and the Statements of Cash Flows for the years ended December 31, 2014, 2013 and 2012 for the Parent, the Guarantor Subsidiaries on a combined basis, and the Non-guarantor Subsidiaries on a combined basis. The condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries and Non-guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-guarantor Subsidiaries, using the equity method of accounting. The principal consolidating adjustments are elimination entries to eliminate the investments in subsidiaries and intercompany balances and transactions. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,475 | $ | 2,807 | $ | (2,024 | ) | $ | 4,258 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 3,225 | 2,036 | (2,021 | ) | 3,240 | |||||||||||||||
Depreciation and amortization | — | 94 | 149 | — | 243 | ||||||||||||||||
Distribution costs | — | 168 | 352 | (2 | ) | 518 | |||||||||||||||
Selling, general and administrative expenses | 17 | 46 | 92 | — | 155 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 51 | 227 | — | 278 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating loss | (17 | ) | (109 | ) | (47 | ) | (1 | ) | (174 | ) | |||||||||||
Interest expense | (71 | ) | (4 | ) | (8 | ) | 36 | (47 | ) | ||||||||||||
Other expense, net | (1 | ) | (20 | ) | (26 | ) | (36 | ) | (83 | ) | |||||||||||
Parent’s equity in loss of subsidiaries | (188 | ) | — | — | 188 | — | |||||||||||||||
Loss before income taxes | (277 | ) | (133 | ) | (81 | ) | 187 | (304 | ) | ||||||||||||
Income tax benefit | — | 2 | 27 | 1 | 30 | ||||||||||||||||
Net loss including noncontrolling interests | (277 | ) | (131 | ) | (54 | ) | 188 | (274 | ) | ||||||||||||
Net income attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | $ | (277 | ) | $ | (131 | ) | $ | (57 | ) | $ | 188 | $ | (277 | ) | |||||||
Comprehensive loss attributable to Resolute Forest Products Inc. | $ | (724 | ) | $ | (250 | ) | $ | (385 | ) | $ | 635 | $ | (724 | ) | |||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,674 | $ | 2,956 | $ | (2,169 | ) | $ | 4,461 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 3,356 | 2,247 | (2,157 | ) | 3,446 | |||||||||||||||
Depreciation and amortization | — | 100 | 143 | — | 243 | ||||||||||||||||
Distribution costs | — | 172 | 357 | (8 | ) | 521 | |||||||||||||||
Selling, general and administrative expenses | 18 | 47 | 101 | — | 166 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 61 | 28 | — | 89 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | (62 | ) | 82 | (4 | ) | (2 | ) | ||||||||||||
Interest expense | (89 | ) | (4 | ) | (8 | ) | 50 | (51 | ) | ||||||||||||
Other (expense) income, net | (60 | ) | 66 | (18 | ) | (50 | ) | (62 | ) | ||||||||||||
Parent’s equity in loss of subsidiaries | (472 | ) | — | — | 472 | — | |||||||||||||||
(Loss) income before income taxes | (639 | ) | — | 56 | 468 | (115 | ) | ||||||||||||||
Income tax provision | — | (564 | ) | (21 | ) | 61 | (524 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (639 | ) | (564 | ) | 35 | 529 | (639 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (639 | ) | $ | (564 | ) | $ | 35 | $ | 529 | $ | (639 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (296 | ) | $ | (346 | ) | $ | 217 | $ | 129 | $ | (296 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,139 | $ | 2,894 | $ | (1,530 | ) | $ | 4,503 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 2,774 | 2,228 | (1,517 | ) | 3,485 | |||||||||||||||
Depreciation and amortization | — | 93 | 140 | — | 233 | ||||||||||||||||
Distribution costs | — | 162 | 361 | (9 | ) | 514 | |||||||||||||||
Selling, general and administrative expenses | 18 | 56 | 75 | — | 149 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 12 | 173 | — | 185 | ||||||||||||||||
Net gain on disposition of assets | — | — | (35 | ) | — | (35 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | 42 | (48 | ) | (4 | ) | (28 | ) | ||||||||||||
Interest expense | (214 | ) | (13 | ) | (8 | ) | 169 | (66 | ) | ||||||||||||
Other income, net | 2 | 171 | 18 | (169 | ) | 22 | |||||||||||||||
Parent’s equity in income of subsidiaries | 147 | — | — | (147 | ) | — | |||||||||||||||
(Loss) income before income taxes | (83 | ) | 200 | (38 | ) | (151 | ) | (72 | ) | ||||||||||||
Income tax benefit (provision) | 84 | (69 | ) | 23 | 1 | 39 | |||||||||||||||
Net income (loss) including noncontrolling interests | 1 | 131 | (15 | ) | (150 | ) | (33 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 1 | $ | 131 | $ | 19 | $ | (150 | ) | $ | 1 | ||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (318 | ) | $ | 69 | $ | (238 | ) | $ | 169 | $ | (318 | ) | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 257 | $ | 80 | $ | — | $ | 337 | |||||||||||
Accounts receivable, net | — | 383 | 156 | — | 539 | ||||||||||||||||
Accounts receivable from affiliates | — | 384 | 95 | (479 | ) | — | |||||||||||||||
Inventories, net | — | 251 | 300 | (9 | ) | 542 | |||||||||||||||
Deferred income tax assets | — | — | 70 | — | 70 | ||||||||||||||||
Note and interest receivable from parent | — | 287 | — | (287 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 318 | — | (318 | ) | — | |||||||||||||||
Other current assets | — | 20 | 26 | — | 46 | ||||||||||||||||
Total current assets | — | 1,900 | 727 | (1,093 | ) | 1,534 | |||||||||||||||
Fixed assets, net | — | 742 | 1,243 | — | 1,985 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 62 | — | 62 | ||||||||||||||||
Deferred income tax assets | — | — | 1,217 | 2 | 1,219 | ||||||||||||||||
Note receivable from parent | — | 388 | — | (388 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,096 | 2,020 | — | (6,116 | ) | — | |||||||||||||||
Other assets | 7 | 49 | 65 | — | 121 | ||||||||||||||||
Total assets | $ | 4,103 | $ | 5,099 | $ | 3,314 | $ | (7,595 | ) | $ | 4,921 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5 | $ | 193 | $ | 320 | $ | — | $ | 518 | |||||||||||
Current portion of long-term debt | — | 1 | — | — | 1 | ||||||||||||||||
Accounts payable to affiliates | 386 | 93 | — | (479 | ) | — | |||||||||||||||
Note and interest payable to subsidiary | 287 | — | — | (287 | ) | — | |||||||||||||||
Notes payable to affiliates | — | — | 318 | (318 | ) | — | |||||||||||||||
Total current liabilities | 678 | 287 | 638 | (1,084 | ) | 519 | |||||||||||||||
Long-term debt, net of current portion | 595 | 1 | — | — | 596 | ||||||||||||||||
Note payable to subsidiary | 388 | — | — | (388 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 414 | 1,202 | — | 1,616 | ||||||||||||||||
Deferred income tax liabilities | — | — | 3 | — | 3 | ||||||||||||||||
Other long-term liabilities | 1 | 29 | 40 | — | 70 | ||||||||||||||||
Total liabilities | 1,662 | 731 | 1,883 | (1,472 | ) | 2,804 | |||||||||||||||
Total equity | 2,441 | 4,368 | 1,431 | (6,123 | ) | 2,117 | |||||||||||||||
Total liabilities and equity | $ | 4,103 | $ | 5,099 | $ | 3,314 | $ | (7,595 | ) | $ | 4,921 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 165 | $ | 157 | $ | — | $ | 322 | |||||||||||
Accounts receivable, net | — | 433 | 201 | — | 634 | ||||||||||||||||
Accounts receivable from affiliates | — | 335 | 135 | (470 | ) | — | |||||||||||||||
Inventories, net | — | 211 | 326 | (8 | ) | 529 | |||||||||||||||
Deferred income tax assets | — | — | 32 | — | 32 | ||||||||||||||||
Interest receivable from parent | — | 14 | — | (14 | ) | — | |||||||||||||||
Note receivable from affiliate | — | 350 | — | (350 | ) | — | |||||||||||||||
Note receivable from subsidiary | 13 | — | — | (13 | ) | — | |||||||||||||||
Other current assets | — | 18 | 27 | — | 45 | ||||||||||||||||
Total current assets | 13 | 1,526 | 878 | (855 | ) | 1,562 | |||||||||||||||
Fixed assets, net | — | 847 | 1,442 | — | 2,289 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 66 | — | 66 | ||||||||||||||||
Deferred income tax assets | — | 28 | 1,236 | 2 | 1,266 | ||||||||||||||||
Notes receivable from parent | — | 627 | — | (627 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 170 | — | (170 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,734 | 2,085 | — | (6,819 | ) | — | |||||||||||||||
Other assets | 8 | 112 | 82 | — | 202 | ||||||||||||||||
Total assets | $ | 4,755 | $ | 5,395 | $ | 3,704 | $ | (8,469 | ) | $ | 5,385 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5 | $ | 190 | $ | 338 | $ | — | $ | 533 | |||||||||||
Current portion of long-term debt | — | 1 | 1 | — | 2 | ||||||||||||||||
Accounts payable to affiliates | 352 | 118 | — | (470 | ) | — | |||||||||||||||
Deferred income tax liabilities | — | 32 | — | — | 32 | ||||||||||||||||
Interest payable to subsidiaries | 14 | — | — | (14 | ) | — | |||||||||||||||
Note payable to affiliate | — | — | 350 | (350 | ) | — | |||||||||||||||
Note payable to parent | — | — | 13 | (13 | ) | — | |||||||||||||||
Total current liabilities | 371 | 341 | 702 | (847 | ) | 567 | |||||||||||||||
Long-term debt, net of current portion | 595 | 2 | — | — | 597 | ||||||||||||||||
Notes payable to subsidiaries | 627 | — | — | (627 | ) | — | |||||||||||||||
Notes payable to affiliate | — | — | 170 | (170 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 340 | 954 | — | 1,294 | ||||||||||||||||
Deferred income tax liabilities | — | 1 | 25 | — | 26 | ||||||||||||||||
Other long-term liabilities | — | 26 | 36 | — | 62 | ||||||||||||||||
Total liabilities | 1,593 | 710 | 1,887 | (1,644 | ) | 2,546 | |||||||||||||||
Total equity | 3,162 | 4,685 | 1,817 | (6,825 | ) | 2,839 | |||||||||||||||
Total liabilities and equity | $ | 4,755 | $ | 5,395 | $ | 3,704 | $ | (8,469 | ) | $ | 5,385 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 144 | $ | 42 | $ | — | $ | 186 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (76 | ) | (117 | ) | — | (193 | ) | |||||||||||||
Monetization of timber notes | — | 22 | — | — | 22 | ||||||||||||||||
Disposition of assets | — | 4 | 6 | — | 10 | ||||||||||||||||
Decrease in restricted cash | — | — | 1 | — | 1 | ||||||||||||||||
Decrease in deposit requirements for letters of credit, net | — | — | 1 | — | 1 | ||||||||||||||||
Other investing activities, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Net cash used in investing activities | — | (50 | ) | (111 | ) | — | (161 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Dividend to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Payments of debt | — | (1 | ) | (1 | ) | — | (2 | ) | |||||||||||||
Payments of financing and credit facility fees | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | — | — | — | — | ||||||||||||||||
Net cash used in financing activities | — | (2 | ) | (5 | ) | — | (7 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 92 | (77 | ) | — | 15 | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | — | 165 | 157 | — | 322 | ||||||||||||||||
End of year | $ | — | $ | 257 | $ | 80 | $ | — | $ | 337 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (5 | ) | $ | 41 | $ | 170 | $ | — | $ | 206 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (55 | ) | (106 | ) | — | (161 | ) | |||||||||||||
Disposition of assets | — | — | 4 | — | 4 | ||||||||||||||||
Proceeds from insurance settlements | — | — | 4 | — | 4 | ||||||||||||||||
Decrease in restricted cash | — | — | 8 | — | 8 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Other investing activities, net | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Net cash used in investing activities | — | (55 | ) | (96 | ) | — | (151 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Issuance of long-term debt | 594 | — | — | — | 594 | ||||||||||||||||
Premium paid on extinguishment of debt | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Payments of debt | (501 | ) | — | (2 | ) | — | (503 | ) | |||||||||||||
Payments of financing and credit facility fees | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | 8 | — | — | 8 | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 8 | (4 | ) | — | 4 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (5 | ) | (6 | ) | 70 | — | 59 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | 5 | 171 | 87 | — | 263 | ||||||||||||||||
End of year | $ | — | $ | 165 | $ | 157 | $ | — | $ | 322 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 249 | $ | 17 | $ | — | $ | 266 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (42 | ) | (127 | ) | — | (169 | ) | |||||||||||||
Disposition of our interest in our Mersey operations, net of cash | — | — | 14 | — | 14 | ||||||||||||||||
Disposition of other assets | — | 1 | 35 | — | 36 | ||||||||||||||||
Acquisition of Fibrek, net of cash acquired | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
Decrease in restricted cash | — | — | 76 | — | 76 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (12 | ) | — | (12 | ) | ||||||||||||||
Advances from (to) affiliates | 72 | (56 | ) | (16 | ) | — | — | ||||||||||||||
Other investing activities, net | — | — | 4 | — | 4 | ||||||||||||||||
Net cash provided by (used in) investing activities | 72 | (97 | ) | (50 | ) | — | (75 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Purchases of treasury stock | (67 | ) | — | — | — | (67 | ) | ||||||||||||||
Dividends to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (27 | ) | — | (27 | ) | ||||||||||||||
Payments of debt | — | (109 | ) | (89 | ) | — | (198 | ) | |||||||||||||
Net cash used in financing activities | (67 | ) | (109 | ) | (121 | ) | — | (297 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 5 | 43 | (154 | ) | — | (106 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | — | 128 | 241 | — | 369 | ||||||||||||||||
End of year | $ | 5 | $ | 171 | $ | 87 | $ | — | $ | 263 | |||||||||||
Quarterly_Information
Quarterly Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Information | Note 22. Quarterly Information (Unaudited) | ||||||||||||||||||||
Year ended December 31, 2014 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In millions, except per share amounts) | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
Sales | $ | 1,016 | $ | 1,091 | $ | 1,096 | $ | 1,055 | $ | 4,258 | |||||||||||
Operating loss (1) | (33 | ) | (8 | ) | (40 | ) | (93 | ) | (174 | ) | |||||||||||
Net loss attributable to Resolute Forest Products Inc. | (50 | ) | (2 | ) | (116 | ) | (109 | ) | (277 | ) | |||||||||||
Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.53 | ) | (0.02 | ) | (1.23 | ) | (1.15 | ) | (2.93 | ) | |||||||||||
Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.53 | ) | (0.02 | ) | (1.23 | ) | (1.15 | ) | (2.93 | ) | |||||||||||
Year ended December 31, 2013 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In millions, except per share amounts) | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
Sales | $ | 1,074 | $ | 1,107 | $ | 1,130 | $ | 1,150 | $ | 4,461 | |||||||||||
Operating (loss) income (2) | (49 | ) | 3 | 36 | 8 | (2 | ) | ||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | (5 | ) | (43 | ) | (588 | ) | (3 | ) | (639 | ) | |||||||||||
Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.05 | ) | (0.45 | ) | (6.22 | ) | (0.03 | ) | (6.75 | ) | |||||||||||
Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.05 | ) | (0.45 | ) | (6.22 | ) | (0.03 | ) | (6.75 | ) | |||||||||||
(1)Operating loss for the year ended December 31, 2014 included the following significant items: | |||||||||||||||||||||
(In millions) | First | Second | Third | Fourth | Year | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Closure costs, impairment and other related charges | (10 | ) | (52 | ) | (85 | ) | (131 | ) | (278 | ) | |||||||||||
Inventory write-downs related to closures | (1 | ) | (3 | ) | (6 | ) | (7 | ) | (17 | ) | |||||||||||
Start-up costs | — | (1 | ) | (1 | ) | (2 | ) | (4 | ) | ||||||||||||
$ | (11 | ) | $ | (54 | ) | $ | (92 | ) | $ | (140 | ) | $ | (297 | ) | |||||||
(2)Operating loss for the year ended December 31, 2013 included the following significant items: | |||||||||||||||||||||
(In millions) | First | Second | Third | Fourth | Year | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Closure costs, impairment and other related charges | (40 | ) | (12 | ) | (4 | ) | (33 | ) | (89 | ) | |||||||||||
Inventory write-downs related to closures | (4 | ) | (1 | ) | — | (6 | ) | (11 | ) | ||||||||||||
Transaction costs | (3 | ) | (2 | ) | — | (1 | ) | (6 | ) | ||||||||||||
Start-up costs | (15 | ) | (13 | ) | (3 | ) | (1 | ) | (32 | ) | |||||||||||
$ | (62 | ) | $ | (26 | ) | $ | (7 | ) | $ | (41 | ) | $ | (136 | ) |
Schedule_I_Condensed_Financial
Schedule I - Condensed Financial Statements and Notes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure | Resolute Forest Products Inc. | ||||||||||||||||||||||||
(Parent Company Only) | |||||||||||||||||||||||||
Condensed Statements of Operations and Comprehensive Loss | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 17 | $ | 18 | $ | 18 | |||||||||||||||||||
Operating loss | (17 | ) | (18 | ) | (18 | ) | |||||||||||||||||||
Interest expense | (71 | ) | (89 | ) | (214 | ) | |||||||||||||||||||
Other (expense) income, net | (1 | ) | (60 | ) | 2 | ||||||||||||||||||||
Equity in (loss) income of subsidiaries | (188 | ) | (472 | ) | 147 | ||||||||||||||||||||
Loss before income taxes | (277 | ) | (639 | ) | (83 | ) | |||||||||||||||||||
Income tax benefit | — | — | 84 | ||||||||||||||||||||||
Net (loss) income | (277 | ) | (639 | ) | 1 | ||||||||||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (447 | ) | 343 | (319 | ) | ||||||||||||||||||||
Comprehensive loss | $ | (724 | ) | $ | (296 | ) | $ | (318 | ) | ||||||||||||||||
Resolute Forest Products Inc. | |||||||||||||||||||||||||
(Parent Company Only) | |||||||||||||||||||||||||
Condensed Balance Sheets | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Note receivable from subsidiary | — | 13 | |||||||||||||||||||||||
Total current assets | — | 13 | |||||||||||||||||||||||
Investments in consolidated subsidiaries | 4,096 | 4,734 | |||||||||||||||||||||||
Other assets | 7 | 8 | |||||||||||||||||||||||
Total assets | $ | 4,103 | $ | 4,755 | |||||||||||||||||||||
Liabilities and equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5 | $ | 5 | |||||||||||||||||||||
Accounts payable to subsidiaries | 386 | 352 | |||||||||||||||||||||||
Note and interest payable to subsidiaries | 287 | 14 | |||||||||||||||||||||||
Total current liabilities | 678 | 371 | |||||||||||||||||||||||
Long-term debt | 595 | 595 | |||||||||||||||||||||||
Notes payable to subsidiaries | 388 | 627 | |||||||||||||||||||||||
Other long-term liabilities | 1 | — | |||||||||||||||||||||||
Total liabilities | 1,662 | 1,593 | |||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||
Common stock | — | — | |||||||||||||||||||||||
Additional paid-in capital | 4,089 | 4,086 | |||||||||||||||||||||||
Deficit | (869 | ) | (592 | ) | |||||||||||||||||||||
Accumulated other comprehensive loss | (718 | ) | (271 | ) | |||||||||||||||||||||
Treasury stock | (61 | ) | (61 | ) | |||||||||||||||||||||
Total Resolute Forest Products Inc. equity | 2,441 | 3,162 | |||||||||||||||||||||||
Total liabilities and equity | $ | 4,103 | $ | 4,755 | |||||||||||||||||||||
Resolute Forest Products Inc. | |||||||||||||||||||||||||
(Parent Company Only) | |||||||||||||||||||||||||
Condensed Statements of Changes in Equity | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | Total Equity | ||||||||||||||||||||
Balance as of December 31, 2011 | $ | — | $ | 4,022 | $ | 47 | $ | (311 | ) | $ | — | $ | 3,758 | ||||||||||||
Share-based compensation costs for equity-classified awards | — | 5 | — | — | — | 5 | |||||||||||||||||||
Net income | — | — | 1 | — | — | 1 | |||||||||||||||||||
Distribution of common stock to wholly-owned subsidiary (2.8 newly-issued shares and 0.5 shares of treasury stock) | — | 38 | (1 | ) | — | 6 | 43 | ||||||||||||||||||
Disposition of investment in wholly-owned subsidiary | — | — | — | 16 | — | 16 | |||||||||||||||||||
Purchases of treasury stock (5.6 shares) | — | — | — | — | (67 | ) | (67 | ) | |||||||||||||||||
Distribution of common stock from the share reserve to wholly-owned subsidiaries (0.1 shares in treasury) | — | — | — | — | — | — | |||||||||||||||||||
Stock incentive awards vested (0.1 shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | |||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (319 | ) | — | (319 | ) | |||||||||||||||||
Balance as of December 31, 2012 | — | 4,065 | 47 | (614 | ) | (61 | ) | 3,437 | |||||||||||||||||
Share-based compensation costs for equity-classified awards | — | 7 | — | — | — | 7 | |||||||||||||||||||
Net loss | — | — | (639 | ) | — | — | (639 | ) | |||||||||||||||||
Acquisition of non-controlling interest in wholly-owned subsidiary | — | 14 | — | — | — | 14 | |||||||||||||||||||
Transfer of common stock from the share reserve to the Company (0.3 shares in treasury) | — | — | — | — | — | — | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 343 | — | 343 | |||||||||||||||||||
Balance as of December 31, 2013 | — | 4,086 | (592 | ) | (271 | ) | (61 | ) | 3,162 | ||||||||||||||||
Share-based compensation costs for equity-classified awards | — | 3 | — | — | — | 3 | |||||||||||||||||||
Net loss | — | — | (277 | ) | — | — | (277 | ) | |||||||||||||||||
Stock incentive awards exercised or vested (0.3 shares), net of shares forfeited for employee withholding taxes | — | — | — | — | — | — | |||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (447 | ) | — | (447 | ) | |||||||||||||||||
Balance as of December 31, 2014 | $ | — | $ | 4,089 | $ | (869 | ) | $ | (718 | ) | $ | (61 | ) | $ | 2,441 | ||||||||||
Resolute Forest Products Inc. | |||||||||||||||||||||||||
(Parent Company Only) | |||||||||||||||||||||||||
Condensed Statements of Cash Flows | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | (5 | ) | $ | — | ||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Advances from affiliates | — | — | 72 | ||||||||||||||||||||||
Net cash provided by investing activities | — | — | 72 | ||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Issuance of long-term debt | — | 594 | — | ||||||||||||||||||||||
Premium paid on extinguishment of debt | — | (84 | ) | — | |||||||||||||||||||||
Purchases of treasury stock | — | — | (67 | ) | |||||||||||||||||||||
Payments of debt | — | (501 | ) | — | |||||||||||||||||||||
Payments of financing and credit facility fees | — | (9 | ) | — | |||||||||||||||||||||
Net cash used in financing activities | — | — | (67 | ) | |||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (5 | ) | 5 | |||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||||
Beginning of year | — | 5 | — | ||||||||||||||||||||||
End of year | $ | — | $ | — | $ | 5 | |||||||||||||||||||
Resolute Forest Products Inc. | |||||||||||||||||||||||||
(Parent Company Only) | |||||||||||||||||||||||||
Notes to Condensed Financial Statements | |||||||||||||||||||||||||
Note A. Organization and Basis of Presentation | |||||||||||||||||||||||||
The accompanying condensed financial statements, including the notes thereto, should be read in conjunction with the consolidated financial statements of Resolute Forest Products Inc. included in Item 8 of this Form 10-K (“Consolidated Financial Statements”). When the term “Resolute Forest Products Inc.” (also referred to as “Resolute Forest Products,” “we,” “us” or “our”) is used, we mean Resolute Forest Products Inc., the parent company only. Resolute Forest Products Inc. is incorporated in Delaware and is a holding company whose only significant asset is an investment in the common stock of our subsidiaries. | |||||||||||||||||||||||||
All amounts are expressed in U.S. dollars, unless otherwise indicated. Defined terms in this Schedule I have the meanings ascribed to them in the Consolidated Financial Statements. | |||||||||||||||||||||||||
Note B. Financing Arrangements | |||||||||||||||||||||||||
Our financing arrangements include our 2023 Notes and ABL Credit Facility. See Note 13, “Long-Term Debt,” to our Consolidated Financial Statements for a discussion of these financing arrangements. | |||||||||||||||||||||||||
Note C. Transactions with Related Parties | |||||||||||||||||||||||||
Note Receivable | |||||||||||||||||||||||||
On December 9, 2010, Resolute FP Canada Inc. entered into a promissory note payable to us in the amount of $250 million, bearing interest at the Applicable Federal Rate set forth by the Internal Revenue Service for obligations of this type, due on demand by us. Interest recorded on the note was less than $1 million in each of 2014, 2013 and 2012, and is included in “Other (expense) income, net” in our Statements of Operations. As of December 31, 2013, the outstanding balance of the note and accrued interest on the note totaled $13 million, approximated fair value and was included in “Note receivable from subsidiary” in our Condensed Balance Sheets. As of December 31, 2014, the outstanding balance of the note and the related interest receivable on the note was settled in full. | |||||||||||||||||||||||||
Notes Payable | |||||||||||||||||||||||||
Notes payable to subsidiaries, including current portion and interest payable, as of December 31, 2014 and 2013, was comprised of the following: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||||||||
Notes payable to subsidiaries, including current portion and interest payable | |||||||||||||||||||||||||
RFP US note | $ | 388 | $ | 364 | |||||||||||||||||||||
Donohue note | 287 | 277 | |||||||||||||||||||||||
675 | 641 | ||||||||||||||||||||||||
Less: Current portion of notes payable to subsidiaries including interest payable | |||||||||||||||||||||||||
RFP US note | — | (11 | ) | ||||||||||||||||||||||
Donohue note | (287 | ) | (3 | ) | |||||||||||||||||||||
(287 | ) | (14 | ) | ||||||||||||||||||||||
Notes payable to subsidiaries, net of current portion and interest payable | $ | 388 | $ | 627 | |||||||||||||||||||||
Interest expense on notes payable to subsidiaries for the years ended December 31, 2014, 2013 and 2012 was comprised of the following: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
RFP US note | $ | 24 | $ | 32 | $ | 127 | |||||||||||||||||||
Donohue note | 10 | 16 | 32 | ||||||||||||||||||||||
$ | 34 | $ | 48 | $ | 159 | ||||||||||||||||||||
In 2008, we contributed to Resolute FP US Inc. a promissory note due June 30, 2013, executed by us in favor of Resolute FP US Inc. in exchange for the ownership interest it held in one of its subsidiaries (“RFP US note”). On June 30, 2013, we entered into an agreement to amend and restate our RFP US note. As amended, the amount of the promissory note was $353 million (decreased from $650 million) with an interest rate of 6.5% (decreased from 12.5%) due June 30, 2018. As of December 31, 2014 and 2013, the fair value of the RFP US note approximated its carrying value. | |||||||||||||||||||||||||
In 2008, AbitibiBowater US Holding LLC (“Holding”), a subsidiary of ours, entered into a promissory note payable to Donohue Corp. (“Donohue,” a wholly-owned subsidiary of ours) due March 31, 2013 (the “Donohue note”). In 2010, we assumed, by merger with Holding, its obligations with respect to this promissory note. On March 28, 2013, we entered into an agreement to amend and restate our Donohue note. As amended, the amount of the promissory note was $270 million (increased from $139 million) with an interest rate of 3.57% (decreased from 13.75%) due March 31, 2015. As of December 31, 2014 and 2013, the fair value of the Donohue note approximated its carrying value. | |||||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||||
We guarantee debt and other obligations of our subsidiaries with certain third parties. These guarantees are primarily to companies that provide energy required to operate certain facilities within our subsidiaries. Such obligations include the guarantee of payments owing by subsidiaries when due under various agreements to their respective counterparties. These guarantees would require payment from us only in the event of default on payment by the subsidiary. As of December 31, 2014 and 2013, the maximum potential amount of future payments that we could be required to make under these guarantees was $27 million and $35 million, respectively. The guarantees have terms ranging from 10 to 90 days. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Financial statements | Financial statements | |
We have prepared our consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. | ||
Consolidation | Consolidation | |
Our consolidated financial statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. | ||
Equity method investments | Equity method investments | |
We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. | ||
Use of estimates | Use of estimates | |
In preparing our consolidated financial statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. | ||
Cash and cash equivalents | Cash and cash equivalents | |
Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. | ||
Accounts receivable | Accounts receivable | |
Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. | ||
Inventories | Inventories | |
Inventories are stated at the lower of cost or market value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. | ||
Fixed assets | Fixed assets | |
Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” in our Consolidated Balance Sheets and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. | ||
Environmental costs | Environmental costs | |
We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” or “Other (expense) income, net” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. | ||
Amortizable intangible assets | Amortizable intangible assets | |
Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. | ||
Impairment of long-lived assets | Impairment of long-lived assets | |
The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. | ||
Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. | ||
When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). | ||
Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed or use of the asset group has ceased. | ||
Income taxes | Income taxes | |
We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We have not provided for U.S. income taxes on the undistributed earnings, if any, of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. | ||
Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. | ||
Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of the income tax expense. | ||
Pension and other postretirement benefit obligations | Pension and OPEB obligations | |
For our defined benefit plans, we recognize an asset or a liability for pension and OPEB obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. | ||
Fair value measurements | Fair value measurements | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: | ||
Level 1 - | Valuations based on quoted prices in active markets for identical assets and liabilities. | |
Level 2 - | Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. | |
Level 3 - | Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. | |
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. | ||
Share-based compensation | Share-based compensation | |
We amortize the fair value of our equity-based awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. We estimate forfeitures of stock incentive awards based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures are updated to reflect new information or actual experience, as it becomes available. | ||
Any excess tax benefits related to share-based compensation gets recorded in the additional paid-in capital (“APIC”) pool and is available to absorb future tax related deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we would record the excess as income tax expense in our Consolidated Statements of Operations. For each of the years ended December 31, 2014, 2013 and 2012 the balance of the APIC pool was zero. | ||
Any cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs, DSUs and PSUs that exceed the compensation cost recognized (excess tax benefits) are classified as financing cash flows. | ||
Revenue recognition | Revenue recognition | |
Pulp, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. | ||
Net (loss) income per share | Net (loss) income per share | |
We calculate basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net (loss) income by the weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the weighted-average number of outstanding common shares, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs). The incremental shares are calculated using the treasury stock method (stock options, RSUs, DSUs and PSUs). To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs) would be antidilutive. | ||
Translation | Translation | |
The functional currency of the majority of our operations is the U.S. dollar. However, some of these operations maintain their books and records in their local currency in accordance with certain statutory requirements. Non-monetary assets and liabilities of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported as “Other (expense) income, net” in our Consolidated Statements of Operations. | ||
The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.” | ||
Distribution costs | Distribution costs | |
Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. | ||
New accounting pronouncements | New accounting pronouncements | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts from Customers” (“ASU 2014-09”). ASU 2014-09 provides a framework that replaces existing revenue recognition guidance in U.S. GAAP. This standard is effective for fiscal years beginning after December 15, 2016 and early adoption is prohibited. We are still evaluating the impact of this standard on our results of operations or financial position. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Summary of less than wholly-owned consolidated subsidiaries | All consolidated subsidiaries are wholly-owned as of December 31, 2014 with the exception of the following: | |||
Consolidated Subsidiary | Resolute Forest Products Ownership | Partner | Partner | |
Ownership | ||||
Forest Products Mauricie L.P. | 93.20% | Cooperative Forestière du Haut Saint-Maurice | 6.80% | |
Donohue Malbaie Inc. | 51% | NYT Capital Inc. | 49% |
Acquisition_of_Fibrek_Inc_Tabl
Acquisition of Fibrek Inc. (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Schedule of Business Acquisition, Fair Value of Consideration Transferred | The following summarizes the fair value as of the acquisition date of all of the consideration transferred through May 2, 2012 to acquire our controlling interest in Fibrek: | ||||
(In millions) | |||||
Cash | $ | 36 | |||
Common stock issued (1.9 million shares) | 24 | ||||
$ | 60 | ||||
Pro Forma Results of Operations | The following unaudited pro forma information for the year ended December 31, 2012 represents our results of operations as if the acquisition of Fibrek had occurred on January 1, 2012. This pro forma information does not purport to be indicative of the results that would have occurred for the period presented or that may be expected in the future. | ||||
(Unaudited, in millions except per share data) | 2012 | ||||
Sales | $ | 4,669 | |||
Net loss attributable to Resolute Forest Products Inc. | (2 | ) | |||
Basic net loss per share attributable to Resolute Forest Products Inc. | (0.02 | ) | |||
Diluted net loss per share attributable to Resolute Forest Products Inc. | (0.02 | ) |
Amortizable_Intangible_Assets_1
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||
Summary of Amortizable Intangible Assets, Net | Amortizable intangible assets, net as of December 31, 2014 and 2013 were comprised of the following: | ||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in millions) | Estimated | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Lives | Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||||
(Years) | Value | Value | |||||||||||||||||||||||||
Water rights | 10 – 40 | $ | 19 | $ | 3 | $ | 16 | $ | 19 | $ | 2 | $ | 17 | ||||||||||||||
Energy contracts | 15 – 25 | 52 | 6 | 46 | 52 | 3 | 49 | ||||||||||||||||||||
$ | 71 | $ | 9 | $ | 62 | $ | 71 | $ | 5 | $ | 66 | ||||||||||||||||
Closure_Costs_Impairment_and_O1
Closure Costs, Impairment and Other Related Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the year ended December 31, 2014, were comprised of the following: | ||||||||||||||||||||
(In millions) | Impairment of Assets | Accelerated Depreciation | Pension Plan Curtailments | Severance and Other Costs | Total | ||||||||||||||||
Permanent closures: | |||||||||||||||||||||
Laurentide, Québec paper mill | $ | — | $ | 97 | $ | (2 | ) | $ | 20 | $ | 115 | ||||||||||
Paper mill in Iroquois Falls, Ontario | — | 60 | 6 | 17 | 83 | ||||||||||||||||
Paper machine in Catawba, South Carolina | — | 45 | — | 1 | 46 | ||||||||||||||||
Pulp and paper mill in Fort Frances, Ontario | — | — | — | 12 | 12 | ||||||||||||||||
Restructuring initiative: | |||||||||||||||||||||
Recycling operations (1) | 6 | — | — | 1 | 7 | ||||||||||||||||
Other | 8 | 6 | — | 1 | 15 | ||||||||||||||||
$ | 14 | $ | 208 | $ | 4 | $ | 52 | $ | 278 | ||||||||||||
(1) | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. | ||||||||||||||||||||
Closure costs, impairment and other related charges for the year ended December 31, 2013, were comprised of the following: | |||||||||||||||||||||
(In millions) | Impairment of Assets (2) | Accelerated Depreciation | Pension Plan Curtailments | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings and extended market-related outage: | |||||||||||||||||||||
Paper machine in Calhoun, Tennessee (1) | $ | — | $ | 44 | $ | — | $ | 6 | $ | 50 | |||||||||||
Kraft mill and paper machines in Fort Frances | — | — | 2 | 15 | 17 | ||||||||||||||||
Permanent closure: | |||||||||||||||||||||
Paper machine in Iroquois Falls | — | 2 | — | 1 | 3 | ||||||||||||||||
Other | 11 | 4 | 1 | 3 | 19 | ||||||||||||||||
$ | 11 | $ | 50 | $ | 3 | $ | 25 | $ | 89 | ||||||||||||
-1 | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 7, “Other (Expense) Income, Net.” | ||||||||||||||||||||
(2) | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | ||||||||||||||||||||
Closure costs, impairment and other related charges for the year ended December 31, 2012, were comprised of the following: | |||||||||||||||||||||
(In millions) | Impairment of Assets | Accelerated Depreciation | Pension and OPEB Plan Curtailments and Settlements | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Mersey operations, Nova Scotia (1) | $ | 72 | $ | — | $ | 8 | $ | 15 | $ | 95 | |||||||||||
Pulp mill and paper machine in Fort Frances (2) | 36 | 2 | 1 | 6 | 45 | ||||||||||||||||
Permanent closure: | |||||||||||||||||||||
Paper machine in Laurentide | — | 18 | — | 4 | 22 | ||||||||||||||||
Restructuring initiatives: | |||||||||||||||||||||
Catawba paper mill | — | — | — | 4 | 4 | ||||||||||||||||
Baie-Comeau, Québec paper mill | — | — | 3 | 1 | 4 | ||||||||||||||||
Lump-sum payments to vested terminated employees (Note 14) | — | — | 7 | — | 7 | ||||||||||||||||
Other | 3 | 1 | 2 | 2 | 8 | ||||||||||||||||
$ | 111 | $ | 21 | $ | 21 | $ | 32 | $ | 185 | ||||||||||||
(1) | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling and subsequent sale of our interest in our Mersey operations, to reduce the carrying value of our net assets to fair value less costs to sell. | ||||||||||||||||||||
(2) | We recorded long-lived asset impairment charges to reduce the carrying value of the assets to their estimated fair value, which was determined based on the assets’ estimated salvage values. |
Other_Expense_Income_Net_Table
Other (Expense) Income, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||
Other (Expense) Income, Net | Other (expense) income, net for the years ended December 31, 2014, 2013 and 2012 was comprised of the following: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Foreign exchange (loss) gain | $ | (32 | ) | $ | (24 | ) | $ | 17 | |||||
Write-down of equity method investment (1) | (61 | ) | — | — | |||||||||
Net (loss) gain on extinguishment of debt (Note 13) | — | (59 | ) | 2 | |||||||||
Gain on forgiveness of note payable (2) | — | 12 | — | ||||||||||
Gain on liquidation settlement (3) | — | 12 | — | ||||||||||
Miscellaneous income (expense) | 10 | (3 | ) | 3 | |||||||||
$ | (83 | ) | $ | (62 | ) | $ | 22 | ||||||
(1) | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | ||||||||||||
(2) | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | ||||||||||||
(3) | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Loss by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the year ended December 31, 2014 was as follows: | ||||||||||||||||
(In millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 18 | $ | (290 | ) | $ | 1 | $ | (271 | ) | |||||||
Other comprehensive income (loss) before reclassifications (1)(2) | 91 | (534 | ) | (1 | ) | (444 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss (3) | (15 | ) | 12 | — | (3 | ) | |||||||||||
Net current period other comprehensive income (loss) | 76 | (522 | ) | (1 | ) | (447 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 94 | $ | (812 | ) | $ | — | $ | (718 | ) | |||||||
-1 | In 2014, we modified our U.S. OPEB plan, whereby unionized participants, upon reaching Medicare eligibility, will be provided comparable Medicare coverage via a Medicare Exchange program, effective January 1, 2015. As a result of this plan amendment, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of December 31, 2014, were both decreased by $84 million ($91 million of unamortized prior service credits offset by the remeasurement impact resulting in $7 million of unamortized actuarial losses). | ||||||||||||||||
(2) | In 2014, we announced the permanent closure of our Laurentide and Iroquois Falls paper mills, resulting in the elimination of approximately 470 positions and the curtailment of two of our pension plans. Accordingly, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of December 31, 2014 were increased by $208 million and $152 million (net of tax of $56 million), respectively, which consisted of unamortized actuarial losses. | ||||||||||||||||
(3) | See the table below for details about these reclassifications. | ||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Loss | The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2014 were comprised of the following: | ||||||||||||||||
(In millions) | Amounts Reclassified From Accumulated Other Comprehensive Loss | Affected Line in the Consolidated Statements of Operations | |||||||||||||||
Unamortized Prior Service Credits | |||||||||||||||||
Amortization of prior service credits | $ | (13 | ) | Cost of sales, excluding depreciation, amortization and distribution costs (1) | |||||||||||||
Curtailment gains | (3 | ) | Closure costs, impairment and other related charges (1) | ||||||||||||||
1 | Income tax benefit (provision) | ||||||||||||||||
$ | (15 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 5 | Cost of sales, excluding depreciation, amortization and distribution costs (1) | ||||||||||||||
Curtailment loss | 7 | Closure costs, impairment and other related charges (1) | |||||||||||||||
Write-down of actuarial losses | 4 | Other (expense) income, net | |||||||||||||||
(4 | ) | Income tax benefit (provision) | |||||||||||||||
$ | 12 | Net of tax | |||||||||||||||
Total Reclassifications | $ | (3 | ) | Net of tax | |||||||||||||
-1 | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans.” |
Net_Loss_Income_Per_Share_Tabl
Net (Loss) Income Per Share (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings Per Share [Abstract] | |||||||
Schedule of weighted-average stock options and equity-classified RSUs, DSUs and PSUs outstanding | The weighted-average number of stock options and equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) outstanding for the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||
(In millions) | 2014 (1) | 2013 (1) | 2012 (2) | ||||
Stock options | 1.6 | 2 | 1.5 | ||||
Stock unit awards | 1.3 | 1 | 0.8 | ||||
(1) | These stock options and stock unit awards were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | ||||||
(2) | The dilutive impact of these stock options and stock unit awards on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. |
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories, Net | Inventories, net as of December 31, 2014 and 2013 were comprised of the following: | ||||||||
(In millions) | 2014 | 2013 | |||||||
Raw materials and work in process | $ | 160 | $ | 153 | |||||
Finished goods | 192 | 195 | |||||||
Mill stores and other supplies | 190 | 181 | |||||||
$ | 542 | $ | 529 | ||||||
Fixed_Assets_Net_Tables
Fixed Assets, Net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Fixed Assets, Net | Fixed assets, net as of December 31, 2014 and 2013 were comprised of the following: | |||||||||
(Dollars in millions) | Range of Estimated Useful Lives in Years | 2014 | 2013 | |||||||
Land and land improvements | 3 – 10 | $ | 93 | $ | 89 | |||||
Buildings | 3 – 40 | 293 | 291 | |||||||
Machinery and equipment (1) | 3 – 20 | 2,318 | 2,239 | |||||||
Hydroelectric power plants | 10 – 40 | 286 | 286 | |||||||
Timberlands and timberlands improvements | 3 – 20 | 91 | 83 | |||||||
Construction in progress (1) | 102 | 61 | ||||||||
3,183 | 3,049 | |||||||||
Less: Accumulated depreciation | (1,198 | ) | (760 | ) | ||||||
$ | 1,985 | $ | 2,289 | |||||||
(1)Internal-use software included in fixed assets, net as of December 31, 2014 and 2013 was as follows: | ||||||||||
(Dollars in millions) | 2014 | 2013 | ||||||||
Machinery and equipment | $ | 31 | $ | 30 | ||||||
Construction in progress | 24 | 9 | ||||||||
55 | 39 | |||||||||
Less: Accumulated depreciation | (8 | ) | (4 | ) | ||||||
$ | 47 | $ | 35 | |||||||
Amortization expense related to internal-use software is estimated to be $8 million per year for each of the next five years. |
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of December 31, 2014 and 2013 were comprised of the following: | ||||||||
(In millions) | 2014 | 2013 | |||||||
Trade accounts payable | $ | 361 | $ | 361 | |||||
Payroll, bonuses and severance payable | 85 | 97 | |||||||
Accrued interest | 5 | 5 | |||||||
Pension and OPEB obligations | 20 | 24 | |||||||
Income and other taxes payable | 13 | 6 | |||||||
Environmental liabilities | 8 | 5 | |||||||
Other | 26 | 35 | |||||||
$ | 518 | $ | 533 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of December 31, 2014 and 2013, was comprised of the following: | ||||||||
(In millions) | 2014 | 2013 | |||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | 600 | |||||
Unamortized discount | (5 | ) | (5 | ) | |||||
Total senior notes due 2023 | 595 | 595 | |||||||
Other debt: | |||||||||
PSIF – Investissement Québec loan | — | 1 | |||||||
Capital lease obligation | 2 | 3 | |||||||
Total other debt | 2 | 4 | |||||||
Total debt | 597 | 599 | |||||||
Less: Current portion of long-term debt | (1 | ) | (2 | ) | |||||
Long-term debt, net of current portion | $ | 596 | $ | 597 | |||||
Debt Redemption Schedule | On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: | ||||||||
Year (beginning May 15) | Redemption Price | ||||||||
2017 | 104.41% | ||||||||
2018 | 102.94% | ||||||||
2019 | 101.47% | ||||||||
2020 and thereafter | 100.00% |
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Summary of Changes in Benefit Obligations | ||||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||||||||||||
Benefit obligations as of beginning of year | $ | 6,004 | $ | 6,724 | $ | 310 | $ | 424 | ||||||||||||||||||||||
Service cost | 26 | 33 | 1 | 3 | ||||||||||||||||||||||||||
Interest cost | 274 | 274 | 11 | 16 | ||||||||||||||||||||||||||
Actuarial loss (gain) | 788 | (208 | ) | 10 | (79 | ) | ||||||||||||||||||||||||
Participant contributions | 11 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Plan amendments | — | 18 | (91 | ) | (21 | ) | ||||||||||||||||||||||||
Curtailments | 4 | 7 | — | — | ||||||||||||||||||||||||||
Settlements | (5 | ) | (6 | ) | — | — | ||||||||||||||||||||||||
Benefits paid | (440 | ) | (489 | ) | (23 | ) | (27 | ) | ||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (433 | ) | (367 | ) | (12 | ) | (11 | ) | ||||||||||||||||||||||
Benefit obligations as of end of year | 6,229 | 6,004 | 210 | 310 | ||||||||||||||||||||||||||
Summary of Change in Plan Assets | ||||||||||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||||
Fair value of plan assets as of beginning of year | 5,013 | 5,175 | — | — | ||||||||||||||||||||||||||
Actual return on plan assets | 450 | 472 | — | — | ||||||||||||||||||||||||||
Employer contributions | 142 | 133 | 19 | 22 | ||||||||||||||||||||||||||
Participant contributions | 11 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Settlements | (5 | ) | (6 | ) | — | — | ||||||||||||||||||||||||
Benefits paid | (440 | ) | (489 | ) | (23 | ) | (27 | ) | ||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (363 | ) | (290 | ) | — | — | ||||||||||||||||||||||||
Fair value of plan assets as of end of year | 4,808 | 5,013 | — | — | ||||||||||||||||||||||||||
Funded status as of end of year | $ | (1,421 | ) | $ | (991 | ) | $ | (210 | ) | $ | (310 | ) | ||||||||||||||||||
Summary of Amounts Recognized in Consolidated Balance Sheets | ||||||||||||||||||||||||||||||
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||||||||||||||||||||||||||||||
Other assets | $ | 5 | $ | 17 | $ | — | $ | — | ||||||||||||||||||||||
Accounts payable and accrued liabilities | (4 | ) | (3 | ) | (16 | ) | (21 | ) | ||||||||||||||||||||||
Pension and OPEB obligations | (1,422 | ) | (1,005 | ) | (194 | ) | (289 | ) | ||||||||||||||||||||||
Net obligations recognized | $ | (1,421 | ) | $ | (991 | ) | $ | (210 | ) | $ | (310 | ) | ||||||||||||||||||
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | $ | 26 | $ | 33 | $ | 36 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||||||||
Interest cost | 274 | 274 | 312 | 11 | 16 | 20 | ||||||||||||||||||||||||
Expected return on plan assets | (300 | ) | (308 | ) | (340 | ) | — | — | — | |||||||||||||||||||||
Amortization of prior service credits | (2 | ) | (2 | ) | — | (11 | ) | (1 | ) | — | ||||||||||||||||||||
Amortization of actuarial losses (gains) | 9 | 25 | — | (4 | ) | (2 | ) | — | ||||||||||||||||||||||
Net periodic benefit cost before special events | 7 | 22 | 8 | (3 | ) | 16 | 23 | |||||||||||||||||||||||
Curtailments and settlements | 4 | 3 | 21 | — | — | — | ||||||||||||||||||||||||
$ | 11 | $ | 25 | $ | 29 | $ | (3 | ) | $ | 16 | $ | 23 | ||||||||||||||||||
Summary of Special Events that Impacted Net Periodic Benefit Costs as Curtailment or Settlement | The following is a summary of the special events that impacted our net periodic benefit costs as a curtailment or settlement for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Settlements resulting from lump-sum payouts | $ | — | $ | — | $ | 10 | $ | — | $ | — | $ | — | ||||||||||||||||||
Curtailments resulting from closure related and other workforce reductions | 4 | 3 | 11 | — | — | — | ||||||||||||||||||||||||
$ | 4 | $ | 3 | $ | 21 | $ | — | $ | — | $ | — | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||
Pension Plans | OPEB Plans | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Benefit obligations: | ||||||||||||||||||||||||||||||
Discount rate | 4 | % | 4.9 | % | 4.3 | % | 4 | % | 5 | % | 4.2 | % | ||||||||||||||||||
Rate of compensation increase | 2.5 | % | 2.5 | % | 2.5 | % | ||||||||||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.3 | % | 4.9 | % | 5 | % | 4.2 | % | 4.9 | % | ||||||||||||||||||
Expected return on assets | 6.5 | % | 6.3 | % | 6.5 | % | ||||||||||||||||||||||||
Rate of compensation increase | 2.5 | % | 2.5 | % | 1.2 | % | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations | The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Domestic Plans | Foreign Plans | Domestic Plans | Foreign Plans | |||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.2 | % | 4.4 | % | 7.5 | % | 4.4 | % | ||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.5 | % | 3.8 | % | 4.5 | % | 3.8 | % | ||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2028 | 2033 | 2028 | 2033 | ||||||||||||||||||||||||||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate | Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2014 OPEB obligation and costs for our domestic and foreign plans: | |||||||||||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||||||||||||
(Dollars in millions) | Domestic Plans | Foreign Plans | Domestic Plans | Foreign Plans | ||||||||||||||||||||||||||
OPEB obligation | $ | 4 | 5 | % | $ | 7 | 5 | % | $ | (3 | ) | (4 | )% | $ | (6 | ) | (4 | )% | ||||||||||||
Service and interest costs | $ | 1 | 15 | % | $ | — | 5 | % | $ | (1 | ) | (13 | )% | $ | — | (4 | )% | |||||||||||||
Fair Value of Plan Assets Held by Pension Plans | The fair value of plan assets held by our pension plans as of December 31, 2014 was as follows: | |||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
U.S. companies | $ | 678 | $ | 678 | $ | — | $ | — | ||||||||||||||||||||||
Non-U.S. companies | 1,015 | 723 | 292 | — | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||
Corporate and government securities | 2,715 | 494 | 2,221 | — | ||||||||||||||||||||||||||
Asset-backed securities | 110 | — | 110 | — | ||||||||||||||||||||||||||
Bank loans/foreign annuities | 4 | — | — | 4 | ||||||||||||||||||||||||||
Real estate | 47 | — | — | 47 | ||||||||||||||||||||||||||
Cash and cash equivalents | 197 | 197 | — | — | ||||||||||||||||||||||||||
Accrued interest and dividends | 42 | — | 42 | — | ||||||||||||||||||||||||||
$ | 4,808 | $ | 2,092 | $ | 2,665 | $ | 51 | |||||||||||||||||||||||
The fair value of plan assets held by our pension plans as of December 31, 2013 was as follows: | ||||||||||||||||||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||
U.S. companies | $ | 751 | $ | 751 | $ | — | $ | — | ||||||||||||||||||||||
Non-U.S. companies | 912 | 636 | 276 | — | ||||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||||||||
Corporate and government securities | 2,611 | 240 | 2,371 | — | ||||||||||||||||||||||||||
Asset-backed securities | 161 | — | 161 | — | ||||||||||||||||||||||||||
Bank loans/foreign annuities | 40 | — | — | 40 | ||||||||||||||||||||||||||
Real estate | 48 | — | — | 48 | ||||||||||||||||||||||||||
Cash and cash equivalents | 444 | 444 | — | — | ||||||||||||||||||||||||||
Accrued interest and dividends | 46 | — | 46 | — | ||||||||||||||||||||||||||
$ | 5,013 | $ | 2,071 | $ | 2,854 | $ | 88 | |||||||||||||||||||||||
Changes in Level 3 Pension Plan Assets | The changes in Level 3 pension plan assets for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||
(In millions) | Bank Loans/Foreign | Real Estate | Total | |||||||||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 41 | $ | 46 | $ | 87 | ||||||||||||||||||||||||
Unrealized gains relating to assets held as of December 31, 2013 | 2 | 5 | 7 | |||||||||||||||||||||||||||
Purchases | 40 | — | 40 | |||||||||||||||||||||||||||
Sales | (41 | ) | — | (41 | ) | |||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (2 | ) | (3 | ) | (5 | ) | ||||||||||||||||||||||||
Balance as of December 31, 2013 | 40 | 48 | 88 | |||||||||||||||||||||||||||
Unrealized (losses) gains relating to assets held as of December 31, 2014 | (2 | ) | 3 | 1 | ||||||||||||||||||||||||||
Realized gains | 2 | — | 2 | |||||||||||||||||||||||||||
Purchases | 11 | — | 11 | |||||||||||||||||||||||||||
Sales | (44 | ) | — | (44 | ) | |||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | (3 | ) | (4 | ) | (7 | ) | ||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 4 | $ | 47 | $ | 51 | ||||||||||||||||||||||||
Expected Benefit Payments and Future Contributions | As of December 31, 2014, benefit payments expected to be paid over the next 10 years are as follows: | |||||||||||||||||||||||||||||
(In millions) | Pension Plans (1) | OPEB Plans | ||||||||||||||||||||||||||||
2015 | $ | 406 | $ | 16 | ||||||||||||||||||||||||||
2016 | 407 | 16 | ||||||||||||||||||||||||||||
2017 | 407 | 15 | ||||||||||||||||||||||||||||
2018 | 407 | 15 | ||||||||||||||||||||||||||||
2019 | 406 | 14 | ||||||||||||||||||||||||||||
2020 - 2024 | 1,976 | 67 | ||||||||||||||||||||||||||||
(1) | Benefit payments are expected be paid from the plans’ net assets. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Loss Before Income Taxes by Taxing Jurisdiction | Loss before income taxes by taxing jurisdiction for the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
United States | $ | (221 | ) | $ | (168 | ) | $ | (34 | ) | ||||
Foreign | (83 | ) | 53 | (38 | ) | ||||||||
$ | (304 | ) | $ | (115 | ) | $ | (72 | ) | |||||
Income Tax (Provision) Benefit | The income tax benefit (provision) for the years ended December 31, 2014, 2013 and 2012 was comprised of the following: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
U.S. Federal and State: | |||||||||||||
Current | $ | (4 | ) | $ | — | $ | (2 | ) | |||||
Deferred | 6 | (504 | ) | 17 | |||||||||
2 | (504 | ) | 15 | ||||||||||
Foreign: | |||||||||||||
Current | (2 | ) | (1 | ) | 5 | ||||||||
Deferred | 30 | (19 | ) | 19 | |||||||||
28 | (20 | ) | 24 | ||||||||||
Total: | |||||||||||||
Current | (6 | ) | (1 | ) | 3 | ||||||||
Deferred | 36 | (523 | ) | 36 | |||||||||
$ | 30 | $ | (524 | ) | $ | 39 | |||||||
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax benefit (provision) attributable to loss before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the years ended December 31, 2014, 2013 and 2012 as a result of the following: | ||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||
Loss before income taxes | $ | (304 | ) | $ | (115 | ) | $ | (72 | ) | ||||
Income tax benefit (provision): | |||||||||||||
Expected income tax benefit | 106 | 40 | 25 | ||||||||||
Changes resulting from: | |||||||||||||
Valuation allowance (1) | (51 | ) | (572 | ) | (24 | ) | |||||||
Reorganization-related and other tax adjustments (2) | — | — | 13 | ||||||||||
Foreign exchange | (17 | ) | (4 | ) | 10 | ||||||||
Research and development tax incentives | 1 | 2 | 8 | ||||||||||
State income taxes, net of federal income tax benefit | 5 | 3 | 1 | ||||||||||
Foreign tax rate differences | (8 | ) | 4 | 1 | |||||||||
Other, net | (6 | ) | 3 | 5 | |||||||||
$ | 30 | $ | (524 | ) | $ | 39 | |||||||
(1) | During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily due to an increase in the valuation allowance related to our U.S. operations, where we do not recognize net deferred income tax assets, partly offset by a tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary. See “Deferred income taxes” section below for a further discussion of the valuation allowance. | ||||||||||||
During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. | |||||||||||||
During 2012, the increase in the valuation allowance primarily related to costs associated with the indefinite idling of our Mersey operations prior to the sale, where we did not recognize tax benefits, as well as an increase in the valuation allowance for certain benefits in Canada and the U.S. that were expected to expire unused. Partially offsetting these increases was a release of valuation allowance related to the U.S. Fibrek operations, following an internal reorganization where the U.S. Fibrek group joined our U.S. consolidated group. | |||||||||||||
(2) | During 2012, we recorded reorganization-related and other tax adjustments, which represented adjustments to our previously-reported tax balance sheet accounts. | ||||||||||||
Deferred Income Taxes | Deferred income taxes as of December 31, 2014 and 2013 were comprised of the following: | ||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Fixed assets | $ | (191 | ) | $ | (236 | ) | |||||||
Deferred gains | — | (41 | ) | ||||||||||
Other liabilities | (13 | ) | (54 | ) | |||||||||
Deferred income tax liabilities | (204 | ) | (331 | ) | |||||||||
Fixed assets | 591 | 575 | |||||||||||
Pension and OPEB plans | 480 | 389 | |||||||||||
Ordinary loss carryforwards | 767 | 843 | |||||||||||
Capital loss carryforwards (1) | 3 | 444 | |||||||||||
Research and development expense pool | 204 | 223 | |||||||||||
Tax credit carryforwards | 109 | 119 | |||||||||||
Other assets | 91 | 99 | |||||||||||
Deferred income tax assets | 2,245 | 2,692 | |||||||||||
Valuation allowance | (755 | ) | (1,121 | ) | |||||||||
Net deferred income tax assets | $ | 1,286 | $ | 1,240 | |||||||||
Amounts recognized in our Consolidated Balance Sheets consisted of: | |||||||||||||
Deferred income tax assets – current | $ | 70 | $ | 32 | |||||||||
Deferred income tax assets – noncurrent | 1,219 | 1,266 | |||||||||||
Deferred income tax liabilities - current | — | (32 | ) | ||||||||||
Deferred income tax liabilities – noncurrent | (3 | ) | (26 | ) | |||||||||
Net deferred income tax assets | $ | 1,286 | $ | 1,240 | |||||||||
(1) | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. | ||||||||||||
Balance of Tax Attributes and Their Dates of Expiration | The balance of tax attributes and their dates of expiration as of December 31, 2014 were as follows: | ||||||||||||
(In millions) | Related | Year of | |||||||||||
Deferred | Expiration | ||||||||||||
Income Tax | |||||||||||||
Asset | |||||||||||||
Ordinary loss carryforwards: | |||||||||||||
U.S. Federal ordinary loss carryforwards of $1,788 | $ | 626 | (1 | ) | 2021 – 2034 | ||||||||
U.S. State ordinary loss carryforwards of $1,710 | 70 | (1 | ) | 2015 – 2034 | |||||||||
Canadian Federal and provincial (excluding Québec) ordinary loss carryforwards of $131 | 20 | 2023 – 2032 | |||||||||||
Québec ordinary loss carryforwards of $289 | 28 | 2023 – 2032 | |||||||||||
Other ordinary loss carryforwards | 23 | 2019 – 2024 | |||||||||||
$ | 767 | ||||||||||||
Capital loss carryforwards: | |||||||||||||
Canadian capital loss carryforwards of $11 | 3 | Indefinite | |||||||||||
$ | 3 | ||||||||||||
Research and development expense pool: | |||||||||||||
Canadian Federal and provincial (excluding Québec) research and development expense pool of $722 | $ | 129 | Indefinite | ||||||||||
Québec research and development expense pool of $884 | 75 | Indefinite | |||||||||||
$ | 204 | ||||||||||||
Tax credit carryforwards: | |||||||||||||
Canadian research and development tax credit carryforwards | $ | 106 | 2022 – 2034 | ||||||||||
U.S. State tax credit carryforwards | 3 | (1 | ) | 2015 – 2029 | |||||||||
$ | 109 | ||||||||||||
(1) | As of December 31, 2014, we had a full valuation allowance against our U.S. operations net deferred income tax assets. | ||||||||||||
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2014 and 2013: | ||||||||||||
(In millions) | 2014 | 2013 | |||||||||||
Beginning of year | $ | 81 | $ | 84 | |||||||||
(Decrease) increase in unrecognized tax benefits resulting from: | |||||||||||||
Positions taken in a prior period | — | (1 | ) | ||||||||||
Positions taken in the current period | 38 | 4 | |||||||||||
Settlements with taxing authorities | (4 | ) | — | ||||||||||
Change in Canadian foreign exchange rate | (6 | ) | (6 | ) | |||||||||
End of year | $ | 109 | $ | 81 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock Options Assumptions | In 2014, we did not grant any stock options. In 2013 and 2012, we made grants of 692,759 and 785,885 stock options, respectively, to our non-employee directors and to certain employees using the following weighted-average assumptions: | |||||||||||||
2013 | 2012 | |||||||||||||
Exercise price | $ | 15.66 | $ | 11.41 | ||||||||||
Fair value | $ | 7.65 | $ | 5.59 | ||||||||||
Expected dividend yield | — | — | ||||||||||||
Expected volatility | 50 | % | 50.6 | % | ||||||||||
Risk-free interest rate | 1.8 | % | 1.6 | % | ||||||||||
Expected life in years | 6.25 | 6.25 | ||||||||||||
Stock Options Activity | The activity of stock options for the year ended December 31, 2014 was as follows: | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Contractual | Value | ||||||||||||
Price | Life (years) | (in millions) | ||||||||||||
Outstanding as of December 31, 2013 | 2,029,303 | $ | 15.56 | 8.7 | $ | — | ||||||||
Exercised | (399,356 | ) | 14.01 | |||||||||||
Forfeited / expired | (46,006 | ) | 18.12 | |||||||||||
Outstanding as of December 31, 2014 | 1,583,941 | $ | 15.87 | 7.8 | $ | 4 | ||||||||
Exercisable as of December 31, 2014 | 656,959 | $ | 18.16 | 7 | $ | 1 | ||||||||
RSU and DSU Activity | The activity of RSUs and DSUs for the year ended December 31, 2014 was as follows: | |||||||||||||
Number of | Weighted- | |||||||||||||
Units | Average Fair | |||||||||||||
Value at Grant | ||||||||||||||
Date | ||||||||||||||
Outstanding as of December 31, 2013 | 960,451 | $ | 15.13 | |||||||||||
Granted (1) | 411,791 | 18.62 | ||||||||||||
Vested and settled (2) | (304,997 | ) | 14.65 | |||||||||||
Forfeited | (26,826 | ) | 13.46 | |||||||||||
Outstanding as of December 31, 2014 (3) | 1,040,419 | $ | 16.69 | |||||||||||
(1) | Includes 17,064 DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | |||||||||||||
(2) | Includes 9,653 awards that vested prior to 2014, but settled in 2014. | |||||||||||||
(3) | Includes 80,844 vested awards that have not been settled, of which 46,955 awards are DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | |||||||||||||
PSU Activity | The activity of PSUs for the year ended December 31, 2014 was as follows: | |||||||||||||
Number of | Weighted- | |||||||||||||
Units | Average Fair | |||||||||||||
Value at Grant | ||||||||||||||
Date | ||||||||||||||
Outstanding as of December 31, 2013 | — | $ | — | |||||||||||
Granted | 296,443 | 18.61 | ||||||||||||
Forfeited | (1,682 | ) | 18.61 | |||||||||||
Outstanding as of December 31, 2014 | 294,761 | $ | 18.61 | |||||||||||
Operating_Leases_and_Purchase_1
Operating Leases and Purchase Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations | We lease office premises, office equipment and transportation equipment under operating leases for which total expense was $7 million in 2014, $12 million in 2013 and $13 million in 2012. In the normal course of business, we have also entered into various supply agreements, guarantees, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). | ||||||||
As of December 31, 2014, the future minimum rental payments under operating leases and commitments for purchase obligations were as follows: | |||||||||
(In millions) | Purchase Obligations (1) | Operating | |||||||
Leases | |||||||||
2015 | $ | 155 | $ | 3 | |||||
2016 | 119 | 3 | |||||||
2017 | 96 | 3 | |||||||
2018 | 69 | 3 | |||||||
2019 | 34 | 2 | |||||||
Thereafter | 56 | 6 | |||||||
$ | 529 | $ | 20 | ||||||
(1) | Includes energy purchase obligations of $296 million through 2026 for certain of our pulp and paper mills. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Schedule of Segment Reporting Information | Information about certain segment data for the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||
(In millions) | Newsprint | Specialty | Market | Wood | Corporate | Consolidated | |||||||||||||||||||
Papers | Pulp (1) | Products | and Other | Total | |||||||||||||||||||||
Sales | |||||||||||||||||||||||||
2014 | $ | 1,402 | $ | 1,272 | $ | 974 | $ | 610 | $ | — | $ | 4,258 | |||||||||||||
2013 | 1,473 | 1,366 | 1,053 | 569 | — | 4,461 | |||||||||||||||||||
2012 | 1,627 | 1,562 | 814 | 500 | — | 4,503 | |||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||
2014 | $ | 69 | $ | 82 | $ | 53 | $ | 33 | $ | 6 | $ | 243 | |||||||||||||
2013 | 73 | 77 | 52 | 36 | 5 | 243 | |||||||||||||||||||
2012 | 72 | 83 | 44 | 34 | — | 233 | |||||||||||||||||||
Operating income (loss) (2) | |||||||||||||||||||||||||
2014 | $ | 23 | $ | (17 | ) | $ | 66 | $ | 69 | $ | (315 | ) | $ | (174 | ) | ||||||||||
2013 | 40 | 35 | 42 | 41 | (160 | ) | (2 | ) | |||||||||||||||||
2012 | 97 | 85 | (43 | ) | 26 | (193 | ) | (28 | ) | ||||||||||||||||
Capital expenditures | |||||||||||||||||||||||||
2014 | $ | 39 | $ | 34 | $ | 23 | $ | 77 | $ | 20 | $ | 193 | |||||||||||||
2013 | 57 | 17 | 40 | 31 | 16 | 161 | |||||||||||||||||||
2012 | 58 | 22 | 40 | 22 | 27 | 169 | |||||||||||||||||||
(1) | For the years ended December 31, 2014, 2013 and 2012, market pulp sales excluded inter-segment sales of $19 million, $17 million and $36 million, respectively. | ||||||||||||||||||||||||
(2)Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items: | |||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net gain on disposition of assets | $ | 2 | $ | 2 | $ | 35 | |||||||||||||||||||
Closure costs, impairment and other related charges | (278 | ) | (89 | ) | (185 | ) | |||||||||||||||||||
Inventory write-downs related to closures | (17 | ) | (11 | ) | (12 | ) | |||||||||||||||||||
Severance costs | — | — | (5 | ) | |||||||||||||||||||||
Transaction costs | — | (6 | ) | (8 | ) | ||||||||||||||||||||
Start-up costs | (4 | ) | (32 | ) | (13 | ) | |||||||||||||||||||
$ | (297 | ) | $ | (136 | ) | $ | (188 | ) | |||||||||||||||||
Summary of Sales by Country | Sales by country for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
United States | $ | 2,809 | $ | 2,834 | $ | 2,766 | |||||||||||||||||||
Foreign countries: | |||||||||||||||||||||||||
Canada | 540 | 546 | 636 | ||||||||||||||||||||||
Mexico | 174 | 168 | 140 | ||||||||||||||||||||||
Brazil | 107 | 122 | 154 | ||||||||||||||||||||||
Italy | 51 | 85 | 105 | ||||||||||||||||||||||
Other countries | 577 | 706 | 702 | ||||||||||||||||||||||
1,449 | 1,627 | 1,737 | |||||||||||||||||||||||
$ | 4,258 | $ | 4,461 | $ | 4,503 | ||||||||||||||||||||
Summary of Long-Lived Assets, Excluding Intangible Assets and Deferred Income Tax Assets, by Country | Long-lived assets by country (excluding deferred income tax assets) as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
(In millions) | 2014 | 2013 | |||||||||||||||||||||||
United States | $ | 798 | $ | 967 | |||||||||||||||||||||
Foreign countries: | |||||||||||||||||||||||||
Canada | 1,346 | 1,564 | |||||||||||||||||||||||
South Korea | 24 | 26 | |||||||||||||||||||||||
1,370 | 1,590 | ||||||||||||||||||||||||
$ | 2,168 | $ | 2,557 | ||||||||||||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,475 | $ | 2,807 | $ | (2,024 | ) | $ | 4,258 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 3,225 | 2,036 | (2,021 | ) | 3,240 | |||||||||||||||
Depreciation and amortization | — | 94 | 149 | — | 243 | ||||||||||||||||
Distribution costs | — | 168 | 352 | (2 | ) | 518 | |||||||||||||||
Selling, general and administrative expenses | 17 | 46 | 92 | — | 155 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 51 | 227 | — | 278 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating loss | (17 | ) | (109 | ) | (47 | ) | (1 | ) | (174 | ) | |||||||||||
Interest expense | (71 | ) | (4 | ) | (8 | ) | 36 | (47 | ) | ||||||||||||
Other expense, net | (1 | ) | (20 | ) | (26 | ) | (36 | ) | (83 | ) | |||||||||||
Parent’s equity in loss of subsidiaries | (188 | ) | — | — | 188 | — | |||||||||||||||
Loss before income taxes | (277 | ) | (133 | ) | (81 | ) | 187 | (304 | ) | ||||||||||||
Income tax benefit | — | 2 | 27 | 1 | 30 | ||||||||||||||||
Net loss including noncontrolling interests | (277 | ) | (131 | ) | (54 | ) | 188 | (274 | ) | ||||||||||||
Net income attributable to noncontrolling interests | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | $ | (277 | ) | $ | (131 | ) | $ | (57 | ) | $ | 188 | $ | (277 | ) | |||||||
Comprehensive loss attributable to Resolute Forest Products Inc. | $ | (724 | ) | $ | (250 | ) | $ | (385 | ) | $ | 635 | $ | (724 | ) | |||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,674 | $ | 2,956 | $ | (2,169 | ) | $ | 4,461 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 3,356 | 2,247 | (2,157 | ) | 3,446 | |||||||||||||||
Depreciation and amortization | — | 100 | 143 | — | 243 | ||||||||||||||||
Distribution costs | — | 172 | 357 | (8 | ) | 521 | |||||||||||||||
Selling, general and administrative expenses | 18 | 47 | 101 | — | 166 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 61 | 28 | — | 89 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | (62 | ) | 82 | (4 | ) | (2 | ) | ||||||||||||
Interest expense | (89 | ) | (4 | ) | (8 | ) | 50 | (51 | ) | ||||||||||||
Other (expense) income, net | (60 | ) | 66 | (18 | ) | (50 | ) | (62 | ) | ||||||||||||
Parent’s equity in loss of subsidiaries | (472 | ) | — | — | 472 | — | |||||||||||||||
(Loss) income before income taxes | (639 | ) | — | 56 | 468 | (115 | ) | ||||||||||||||
Income tax provision | — | (564 | ) | (21 | ) | 61 | (524 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (639 | ) | (564 | ) | 35 | 529 | (639 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (639 | ) | $ | (564 | ) | $ | 35 | $ | 529 | $ | (639 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (296 | ) | $ | (346 | ) | $ | 217 | $ | 129 | $ | (296 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 3,139 | $ | 2,894 | $ | (1,530 | ) | $ | 4,503 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 2,774 | 2,228 | (1,517 | ) | 3,485 | |||||||||||||||
Depreciation and amortization | — | 93 | 140 | — | 233 | ||||||||||||||||
Distribution costs | — | 162 | 361 | (9 | ) | 514 | |||||||||||||||
Selling, general and administrative expenses | 18 | 56 | 75 | — | 149 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 12 | 173 | — | 185 | ||||||||||||||||
Net gain on disposition of assets | — | — | (35 | ) | — | (35 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | 42 | (48 | ) | (4 | ) | (28 | ) | ||||||||||||
Interest expense | (214 | ) | (13 | ) | (8 | ) | 169 | (66 | ) | ||||||||||||
Other income, net | 2 | 171 | 18 | (169 | ) | 22 | |||||||||||||||
Parent’s equity in income of subsidiaries | 147 | — | — | (147 | ) | — | |||||||||||||||
(Loss) income before income taxes | (83 | ) | 200 | (38 | ) | (151 | ) | (72 | ) | ||||||||||||
Income tax benefit (provision) | 84 | (69 | ) | 23 | 1 | 39 | |||||||||||||||
Net income (loss) including noncontrolling interests | 1 | 131 | (15 | ) | (150 | ) | (33 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 34 | — | 34 | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 1 | $ | 131 | $ | 19 | $ | (150 | ) | $ | 1 | ||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (318 | ) | $ | 69 | $ | (238 | ) | $ | 169 | $ | (318 | ) | ||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 257 | $ | 80 | $ | — | $ | 337 | |||||||||||
Accounts receivable, net | — | 383 | 156 | — | 539 | ||||||||||||||||
Accounts receivable from affiliates | — | 384 | 95 | (479 | ) | — | |||||||||||||||
Inventories, net | — | 251 | 300 | (9 | ) | 542 | |||||||||||||||
Deferred income tax assets | — | — | 70 | — | 70 | ||||||||||||||||
Note and interest receivable from parent | — | 287 | — | (287 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 318 | — | (318 | ) | — | |||||||||||||||
Other current assets | — | 20 | 26 | — | 46 | ||||||||||||||||
Total current assets | — | 1,900 | 727 | (1,093 | ) | 1,534 | |||||||||||||||
Fixed assets, net | — | 742 | 1,243 | — | 1,985 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 62 | — | 62 | ||||||||||||||||
Deferred income tax assets | — | — | 1,217 | 2 | 1,219 | ||||||||||||||||
Note receivable from parent | — | 388 | — | (388 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,096 | 2,020 | — | (6,116 | ) | — | |||||||||||||||
Other assets | 7 | 49 | 65 | — | 121 | ||||||||||||||||
Total assets | $ | 4,103 | $ | 5,099 | $ | 3,314 | $ | (7,595 | ) | $ | 4,921 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5 | $ | 193 | $ | 320 | $ | — | $ | 518 | |||||||||||
Current portion of long-term debt | — | 1 | — | — | 1 | ||||||||||||||||
Accounts payable to affiliates | 386 | 93 | — | (479 | ) | — | |||||||||||||||
Note and interest payable to subsidiary | 287 | — | — | (287 | ) | — | |||||||||||||||
Notes payable to affiliates | — | — | 318 | (318 | ) | — | |||||||||||||||
Total current liabilities | 678 | 287 | 638 | (1,084 | ) | 519 | |||||||||||||||
Long-term debt, net of current portion | 595 | 1 | — | — | 596 | ||||||||||||||||
Note payable to subsidiary | 388 | — | — | (388 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 414 | 1,202 | — | 1,616 | ||||||||||||||||
Deferred income tax liabilities | — | — | 3 | — | 3 | ||||||||||||||||
Other long-term liabilities | 1 | 29 | 40 | — | 70 | ||||||||||||||||
Total liabilities | 1,662 | 731 | 1,883 | (1,472 | ) | 2,804 | |||||||||||||||
Total equity | 2,441 | 4,368 | 1,431 | (6,123 | ) | 2,117 | |||||||||||||||
Total liabilities and equity | $ | 4,103 | $ | 5,099 | $ | 3,314 | $ | (7,595 | ) | $ | 4,921 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 165 | $ | 157 | $ | — | $ | 322 | |||||||||||
Accounts receivable, net | — | 433 | 201 | — | 634 | ||||||||||||||||
Accounts receivable from affiliates | — | 335 | 135 | (470 | ) | — | |||||||||||||||
Inventories, net | — | 211 | 326 | (8 | ) | 529 | |||||||||||||||
Deferred income tax assets | — | — | 32 | — | 32 | ||||||||||||||||
Interest receivable from parent | — | 14 | — | (14 | ) | — | |||||||||||||||
Note receivable from affiliate | — | 350 | — | (350 | ) | — | |||||||||||||||
Note receivable from subsidiary | 13 | — | — | (13 | ) | — | |||||||||||||||
Other current assets | — | 18 | 27 | — | 45 | ||||||||||||||||
Total current assets | 13 | 1,526 | 878 | (855 | ) | 1,562 | |||||||||||||||
Fixed assets, net | — | 847 | 1,442 | — | 2,289 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 66 | — | 66 | ||||||||||||||||
Deferred income tax assets | — | 28 | 1,236 | 2 | 1,266 | ||||||||||||||||
Notes receivable from parent | — | 627 | — | (627 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 170 | — | (170 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,734 | 2,085 | — | (6,819 | ) | — | |||||||||||||||
Other assets | 8 | 112 | 82 | — | 202 | ||||||||||||||||
Total assets | $ | 4,755 | $ | 5,395 | $ | 3,704 | $ | (8,469 | ) | $ | 5,385 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 5 | $ | 190 | $ | 338 | $ | — | $ | 533 | |||||||||||
Current portion of long-term debt | — | 1 | 1 | — | 2 | ||||||||||||||||
Accounts payable to affiliates | 352 | 118 | — | (470 | ) | — | |||||||||||||||
Deferred income tax liabilities | — | 32 | — | — | 32 | ||||||||||||||||
Interest payable to subsidiaries | 14 | — | — | (14 | ) | — | |||||||||||||||
Note payable to affiliate | — | — | 350 | (350 | ) | — | |||||||||||||||
Note payable to parent | — | — | 13 | (13 | ) | — | |||||||||||||||
Total current liabilities | 371 | 341 | 702 | (847 | ) | 567 | |||||||||||||||
Long-term debt, net of current portion | 595 | 2 | — | — | 597 | ||||||||||||||||
Notes payable to subsidiaries | 627 | — | — | (627 | ) | — | |||||||||||||||
Notes payable to affiliate | — | — | 170 | (170 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 340 | 954 | — | 1,294 | ||||||||||||||||
Deferred income tax liabilities | — | 1 | 25 | — | 26 | ||||||||||||||||
Other long-term liabilities | — | 26 | 36 | — | 62 | ||||||||||||||||
Total liabilities | 1,593 | 710 | 1,887 | (1,644 | ) | 2,546 | |||||||||||||||
Total equity | 3,162 | 4,685 | 1,817 | (6,825 | ) | 2,839 | |||||||||||||||
Total liabilities and equity | $ | 4,755 | $ | 5,395 | $ | 3,704 | $ | (8,469 | ) | $ | 5,385 | ||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 144 | $ | 42 | $ | — | $ | 186 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (76 | ) | (117 | ) | — | (193 | ) | |||||||||||||
Monetization of timber notes | — | 22 | — | — | 22 | ||||||||||||||||
Disposition of assets | — | 4 | 6 | — | 10 | ||||||||||||||||
Decrease in restricted cash | — | — | 1 | — | 1 | ||||||||||||||||
Decrease in deposit requirements for letters of credit, net | — | — | 1 | — | 1 | ||||||||||||||||
Other investing activities, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Net cash used in investing activities | — | (50 | ) | (111 | ) | — | (161 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Dividend to noncontrolling interest | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Payments of debt | — | (1 | ) | (1 | ) | — | (2 | ) | |||||||||||||
Payments of financing and credit facility fees | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | — | — | — | — | ||||||||||||||||
Net cash used in financing activities | — | (2 | ) | (5 | ) | — | (7 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 92 | (77 | ) | — | 15 | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | — | 165 | 157 | — | 322 | ||||||||||||||||
End of year | $ | — | $ | 257 | $ | 80 | $ | — | $ | 337 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (5 | ) | $ | 41 | $ | 170 | $ | — | $ | 206 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (55 | ) | (106 | ) | — | (161 | ) | |||||||||||||
Disposition of assets | — | — | 4 | — | 4 | ||||||||||||||||
Proceeds from insurance settlements | — | — | 4 | — | 4 | ||||||||||||||||
Decrease in restricted cash | — | — | 8 | — | 8 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Other investing activities, net | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Net cash used in investing activities | — | (55 | ) | (96 | ) | — | (151 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Issuance of long-term debt | 594 | — | — | — | 594 | ||||||||||||||||
Premium paid on extinguishment of debt | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Payments of debt | (501 | ) | — | (2 | ) | — | (503 | ) | |||||||||||||
Payments of financing and credit facility fees | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | 8 | — | — | 8 | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 8 | (4 | ) | — | 4 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (5 | ) | (6 | ) | 70 | — | 59 | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | 5 | 171 | 87 | — | 263 | ||||||||||||||||
End of year | $ | — | $ | 165 | $ | 157 | $ | — | $ | 322 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(In millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 249 | $ | 17 | $ | — | $ | 266 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (42 | ) | (127 | ) | — | (169 | ) | |||||||||||||
Disposition of our interest in our Mersey operations, net of cash | — | — | 14 | — | 14 | ||||||||||||||||
Disposition of other assets | — | 1 | 35 | — | 36 | ||||||||||||||||
Acquisition of Fibrek, net of cash acquired | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
Decrease in restricted cash | — | — | 76 | — | 76 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (12 | ) | — | (12 | ) | ||||||||||||||
Advances from (to) affiliates | 72 | (56 | ) | (16 | ) | — | — | ||||||||||||||
Other investing activities, net | — | — | 4 | — | 4 | ||||||||||||||||
Net cash provided by (used in) investing activities | 72 | (97 | ) | (50 | ) | — | (75 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Purchases of treasury stock | (67 | ) | — | — | — | (67 | ) | ||||||||||||||
Dividends to noncontrolling interests | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (27 | ) | — | (27 | ) | ||||||||||||||
Payments of debt | — | (109 | ) | (89 | ) | — | (198 | ) | |||||||||||||
Net cash used in financing activities | (67 | ) | (109 | ) | (121 | ) | — | (297 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 5 | 43 | (154 | ) | — | (106 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of year | — | 128 | 241 | — | 369 | ||||||||||||||||
End of year | $ | 5 | $ | 171 | $ | 87 | $ | — | $ | 263 | |||||||||||
Quarterly_Information_Tables
Quarterly Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Unaudited Quarterly Financial Data | |||||||||||||||||||||
Year ended December 31, 2014 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In millions, except per share amounts) | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
Sales | $ | 1,016 | $ | 1,091 | $ | 1,096 | $ | 1,055 | $ | 4,258 | |||||||||||
Operating loss (1) | (33 | ) | (8 | ) | (40 | ) | (93 | ) | (174 | ) | |||||||||||
Net loss attributable to Resolute Forest Products Inc. | (50 | ) | (2 | ) | (116 | ) | (109 | ) | (277 | ) | |||||||||||
Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.53 | ) | (0.02 | ) | (1.23 | ) | (1.15 | ) | (2.93 | ) | |||||||||||
Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.53 | ) | (0.02 | ) | (1.23 | ) | (1.15 | ) | (2.93 | ) | |||||||||||
Year ended December 31, 2013 | First | Second | Third | Fourth | Year | ||||||||||||||||
(In millions, except per share amounts) | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||
Sales | $ | 1,074 | $ | 1,107 | $ | 1,130 | $ | 1,150 | $ | 4,461 | |||||||||||
Operating (loss) income (2) | (49 | ) | 3 | 36 | 8 | (2 | ) | ||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | (5 | ) | (43 | ) | (588 | ) | (3 | ) | (639 | ) | |||||||||||
Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.05 | ) | (0.45 | ) | (6.22 | ) | (0.03 | ) | (6.75 | ) | |||||||||||
Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders | (0.05 | ) | (0.45 | ) | (6.22 | ) | (0.03 | ) | (6.75 | ) | |||||||||||
(1)Operating loss for the year ended December 31, 2014 included the following significant items: | |||||||||||||||||||||
(In millions) | First | Second | Third | Fourth | Year | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Closure costs, impairment and other related charges | (10 | ) | (52 | ) | (85 | ) | (131 | ) | (278 | ) | |||||||||||
Inventory write-downs related to closures | (1 | ) | (3 | ) | (6 | ) | (7 | ) | (17 | ) | |||||||||||
Start-up costs | — | (1 | ) | (1 | ) | (2 | ) | (4 | ) | ||||||||||||
$ | (11 | ) | $ | (54 | ) | $ | (92 | ) | $ | (140 | ) | $ | (297 | ) | |||||||
(2)Operating loss for the year ended December 31, 2013 included the following significant items: | |||||||||||||||||||||
(In millions) | First | Second | Third | Fourth | Year | ||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||
Closure costs, impairment and other related charges | (40 | ) | (12 | ) | (4 | ) | (33 | ) | (89 | ) | |||||||||||
Inventory write-downs related to closures | (4 | ) | (1 | ) | — | (6 | ) | (11 | ) | ||||||||||||
Transaction costs | (3 | ) | (2 | ) | — | (1 | ) | (6 | ) | ||||||||||||
Start-up costs | (15 | ) | (13 | ) | (3 | ) | (1 | ) | (32 | ) | |||||||||||
$ | (62 | ) | $ | (26 | ) | $ | (7 | ) | $ | (41 | ) | $ | (136 | ) |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Nature of Operations (Details) | Dec. 31, 2014 |
ManufacturingSites | |
Country | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | 80 |
Number of operating pulp and paper mills and wood products facilities (approximate) | 40 |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation - Summary of Less Than Wholly-Owned Consolidated Subsidiaries (Details) | Dec. 31, 2014 |
Forest Products Mauricie L.P. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Resolute Forest Products ownership | 93.20% |
Partner ownership | 6.80% |
Donohue Malbaie Inc. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Resolute Forest Products ownership | 51.00% |
Partner ownership | 49.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||
Balance of the APIC pool | $0 | $0 | $0 |
Maturity period of demand deposits and other short-term, highly liquid securities included in cash and cash equivalents | 3 months | 3 months | 3 months |
Acquisition_of_Fibrek_Inc_Addi
Acquisition of Fibrek Inc. - Additional Information (Details) | Dec. 31, 2014 | 2-May-12 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Jul. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ManufacturingSites | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] |
USD ($) | USD ($) | CAD | USD ($) | CAD | USD ($) | ||
ManufacturingSites | |||||||
Business Acquisition [Line Items] | |||||||
Number of operating mills | 40 | 3 | |||||
Business acquisition, equity interest distributed ( in shares) | 1.9 | 1.4 | 1.4 | 3.3 | 3.3 | ||
Business acquisition, cash paid | $36 | $63 | 63 | ||||
Cash consideration paid for additional equity interest | 27 | 27 | |||||
Transaction costs associated with the acquisition of the noncontrolling interest | $1 |
Acquisition_of_Fibrek_Inc_Sche
Acquisition of Fibrek Inc. - Schedule of Business Acquisition - Fair Value of Consideration Transferred (Details) (Fibrek [Member]) | 1 Months Ended | 4 Months Ended | |
In Millions, unless otherwise specified | 2-May-12 | Jul. 31, 2012 | Jul. 31, 2012 |
USD ($) | USD ($) | CAD | |
Business Acquisition [Line Items] | |||
Cash | $36 | $63 | 63 |
Common stock issued | 24 | ||
Total fair value of the consideration transferred for the acquisition | $60 |
Acquisition_of_Fibrek_Inc_Sche1
Acquisition of Fibrek Inc. - Schedule of Business Acquisition - Fair Value of Consideration Transferred (Parenthetical) (Details) (Fibrek [Member]) | 1 Months Ended | 3 Months Ended | 4 Months Ended |
In Millions, unless otherwise specified | 2-May-12 | Jul. 31, 2012 | Jul. 31, 2012 |
Fibrek [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares issued, business acquisition | 1.9 | 1.4 | 3.3 |
Acquisition_of_Fibrek_Inc_Pro_
Acquisition of Fibrek Inc. - Pro Forma Results of Operations (Details) (Fibrek [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Fibrek [Member] | |
Business Acquisition [Line Items] | |
Sales | $4,669 |
Net loss attributable to Resolute Forest Products Inc. | ($2) |
Basic net loss per share attributable to Resolute Forest Products Inc. | ($0.02) |
Diluted net loss per share attributable to Resolute Forest Products Inc. | ($0.02) |
Acquisition_of_Fibrek_Inc_Pro_1
Acquisition of Fibrek Inc. - Pro Forma Results of Operations - Additional Information (Details) (Fibrek [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Fibrek [Member] | |
Business Acquisition [Line Items] | |
Transaction costs excluded from pro forma information | $19 |
Amortizable_Intangible_Assets_2
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $71 | $71 |
Accumulated amortization | 9 | 5 |
Net | 62 | 66 |
Water rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 19 | 19 |
Accumulated amortization | 3 | 2 |
Net | 16 | 17 |
Energy contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 52 | 52 |
Accumulated amortization | 6 | 3 |
Net | $46 | $49 |
Amortizable_Intangible_Assets_3
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Water rights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 10 years |
Water rights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 40 years |
Energy contracts [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 15 years |
Energy contracts [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 25 years |
Amortizable_Intangible_Assets_4
Amortizable Intangible Assets, Net - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Minimum term of water power agreements | 10 years | |
Maximum term of water power agreements | 25 years | |
Finite-lived intangible assets, future amortization expense, years presented | 5 years |
Amortizable_Intangible_Assets_5
Amortizable Intangible Assets, Net - Additional Information (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense related to amortizable intangible assets | $4 | $3 | $1 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2015 | 3 | ||
Estimated amortization expense, 2016 | 3 | ||
Estimated amortization expense, 2017 | 3 | ||
Estimated amortization expense, 2018 | 3 | ||
Estimated amortization expense, 2019 | $3 |
Closure_Costs_Impairment_and_O2
Closure Costs, Impairment and Other Related Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | $14 | $11 | [1] | $111 | ||||||||||
Accelerated depreciation | 208 | 50 | 21 | |||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 4 | 3 | 21 | |||||||||||
Severance and other costs | 52 | 25 | 32 | |||||||||||
Total | 131 | 85 | 52 | 10 | 33 | 4 | 12 | 40 | 278 | 89 | 185 | |||
Permanent closure of Laurentide, Quebec paper mill [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 97 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | -2 | |||||||||||||
Severance and other costs | 20 | |||||||||||||
Total | 115 | |||||||||||||
Permanent closure of paper mill in Iroquois Falls, Ontario [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | 0 | [1] | |||||||||||
Accelerated depreciation | 60 | 2 | ||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 6 | 0 | ||||||||||||
Severance and other costs | 17 | 1 | ||||||||||||
Total | 83 | 3 | ||||||||||||
Permanent closure of paper machine in Catawba, South Carolina [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 45 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | |||||||||||||
Severance and other costs | 1 | |||||||||||||
Total | 46 | |||||||||||||
Permanent closure of pulp and paper mill in Fort Frances, Ontario [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 0 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | |||||||||||||
Severance and other costs | 12 | |||||||||||||
Total | 12 | |||||||||||||
Recycling operations [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 6 | [2] | ||||||||||||
Accelerated depreciation | 0 | [2] | ||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | [2] | ||||||||||||
Severance and other costs | 1 | [2] | ||||||||||||
Total | 7 | [2] | ||||||||||||
Indefinite idling of paper machine in Calhoun, Tennessee [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | [1],[3] | ||||||||||||
Accelerated depreciation | 44 | [3] | ||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | [3] | ||||||||||||
Severance and other costs | 6 | [3] | ||||||||||||
Total | 50 | [3] | ||||||||||||
Extended market-related outage of kraft mill and paper machines in Fort Frances, Ontario [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | [1] | 36 | [4] | ||||||||||
Accelerated depreciation | 0 | 2 | [4] | |||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 2 | 1 | [4] | |||||||||||
Severance and other costs | 15 | 6 | [4] | |||||||||||
Total | 17 | 45 | [4] | |||||||||||
Indefinite idling of our Mersey operations in Nova Scotia [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 72 | [5] | ||||||||||||
Accelerated depreciation | 0 | [5] | ||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 8 | [5] | ||||||||||||
Severance and other costs | 15 | [5] | ||||||||||||
Total | 95 | [5] | ||||||||||||
Permanent closure of paper machine in Laurentide, Quebec [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 18 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | |||||||||||||
Severance and other costs | 4 | |||||||||||||
Total | 22 | |||||||||||||
Restructuring initiative at Baie-Comeau, Quebec paper mill [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 0 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 3 | |||||||||||||
Severance and other costs | 1 | |||||||||||||
Total | 4 | |||||||||||||
Restructuring initiative at Catawba, South Carolina paper mill [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 0 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | |||||||||||||
Severance and other costs | 4 | |||||||||||||
Total | 4 | |||||||||||||
Lump-sum payments to vested terminated employees [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 0 | |||||||||||||
Accelerated depreciation | 0 | |||||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 7 | |||||||||||||
Severance and other costs | 0 | |||||||||||||
Total | 7 | |||||||||||||
Other [Member] | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Impairment of assets | 8 | 11 | [1] | 3 | ||||||||||
Accelerated depreciation | 6 | 4 | 1 | |||||||||||
Pension and OPEB plan curtailment and settlement (gains) losses | 0 | 1 | 2 | |||||||||||
Severance and other costs | 1 | 3 | 2 | |||||||||||
Total | $15 | $19 | $8 | |||||||||||
[1] | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | |||||||||||||
[2] | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. | |||||||||||||
[3] | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNCâ€), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 7, “Other (Expense) Income, Net.†| |||||||||||||
[4] | We recorded long-lived asset impairment charges to reduce the carrying value of the assets to their estimated fair value, which was determined based on the assets’ estimated salvage values. | |||||||||||||
[5] | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling and subsequent sale of our interest in our Mersey operations, to reduce the carrying value of our net assets to fair value less costs to sell. |
Closure_Costs_Impairment_and_O3
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived asset impairment charges | $14 | $11 | [1] | $111 | ||
Recycling operations [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived asset impairment charges | 6 | [2] | ||||
Indefinite idling of our Mersey operations in Nova Scotia [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived asset impairment charges | 72 | [3] | ||||
Asset retirement obligation [Member] | Indefinite idling of our Mersey operations in Nova Scotia [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Long-lived asset impairment charges | $7 | |||||
[1] | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | |||||
[2] | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. | |||||
[3] | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling and subsequent sale of our interest in our Mersey operations, to reduce the carrying value of our net assets to fair value less costs to sell. |
Net_Gain_on_Disposition_of_Ass1
Net Gain on Disposition of Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
parcel | |||||||||||
Gain (Loss) on Disposition of Assets [Abstract] | |||||||||||
Net gain on disposition of assets | $0 | $0 | $2 | $0 | $0 | $0 | $2 | $0 | $2 | $2 | $35 |
Parcels of land sold | 2 | ||||||||||
Proceeds from sale of property, plant, and equipment, and businesses | $55 |
Other_Expense_Income_Net_Detai
Other (Expense) Income, Net - (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Income and Expenses [Abstract] | ||||||
Foreign exchange (loss) gain | ($32) | ($24) | $17 | |||
Write-down of equity method investment | -61 | [1] | 0 | [1] | 0 | [1] |
Net (loss) gain on extinguishment of debt | 0 | -59 | 2 | |||
Gain on forgiveness of note payable | 0 | [2] | 12 | [2] | 0 | [2] |
Gain on liquidation settlement | 0 | [3] | 12 | [3] | 0 | [3] |
Miscellaneous income (expense) | 10 | -3 | 3 | |||
Other (expense) income, net | ($83) | ($62) | $22 | |||
[1] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | |||||
[2] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||
[3] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCLâ€), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Other_Expense_Income_Net_Addit
Other (Expense) Income, Net - Additional Information (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 10, 2013 | |||
Other (Expense) Income [Line Items] | ||||||||
Write-down of equity method investment | $61 | [1] | $0 | [1] | $0 | [1] | ||
Gain on forgiveness of note payable | 0 | [2] | 12 | [2] | 0 | [2] | ||
Liquidation settlement received | 0 | [3] | 12 | [3] | 0 | [3] | ||
Ponderay Newsprint Company [Member] | ||||||||
Other (Expense) Income [Line Items] | ||||||||
Ownership percentage of equity method investment | 40.00% | |||||||
Write-down of equity method investment | 61 | |||||||
Fair value of investment | 0 | |||||||
Calhoun Newsprint Company [Member] | ||||||||
Other (Expense) Income [Line Items] | ||||||||
Previous percentage of entity owned | 51.00% | |||||||
Gain on forgiveness of note payable | 12 | |||||||
Bridgewater Paper Company Limited [Member] | ||||||||
Other (Expense) Income [Line Items] | ||||||||
Liquidation settlement received | $12 | |||||||
[1] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | |||||||
[2] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||||
[3] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCLâ€), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | ($271) | |||
Other comprehensive income (loss) before reclassifications | -444 | [1],[2] | ||
Amounts reclassified from accumulated other comprehensive loss | -3 | [3] | ||
Other comprehensive (loss) income, net of tax | -447 | 343 | -327 | |
Ending balance | -718 | -271 | ||
Unamortized Prior Service Credits [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 18 | |||
Other comprehensive income (loss) before reclassifications | 91 | [1],[2] | ||
Amounts reclassified from accumulated other comprehensive loss | -15 | [3] | ||
Other comprehensive (loss) income, net of tax | 76 | |||
Ending balance | 94 | |||
Unamortized Actuarial Losses [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -290 | |||
Other comprehensive income (loss) before reclassifications | -534 | [1],[2] | ||
Amounts reclassified from accumulated other comprehensive loss | 12 | [3] | ||
Other comprehensive (loss) income, net of tax | -522 | |||
Ending balance | -812 | |||
Foreign Currency Translation [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 1 | |||
Other comprehensive income (loss) before reclassifications | -1 | [1],[2] | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | [3] | ||
Other comprehensive (loss) income, net of tax | -1 | |||
Ending balance | $0 | |||
[1] | In 2014, we modified our U.S. OPEB plan, whereby unionized participants, upon reaching Medicare eligibility, will be provided comparable Medicare coverage via a Medicare Exchange program, effective January 1, 2015. As a result of this plan amendment, “Pension and other postretirement benefit obligations†and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of December 31, 2014, were both decreased by $84 million ($91 million of unamortized prior service credits offset by the remeasurement impact resulting in $7 million of unamortized actuarial losses). | |||
[2] | In 2014, we announced the permanent closure of our Laurentide and Iroquois Falls paper mills, resulting in the elimination of approximately 470 positions and the curtailment of two of our pension plans. Accordingly, “Pension and other postretirement benefit obligations†and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of December 31, 2014 were increased by $208 million and $152 million (net of tax of $56 million), respectively, which consisted of unamortized actuarial losses. | |||
[3] | See the table below for details about these reclassifications. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) - Additional Information (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension_Plans | |
Accumulated Other Comprehensive Loss [Line Items] | |
Number of pension plans curtailed | 2 |
U.S. OPEB Plan for Unionized U.S. Post-Medicare Participants [Member] | |
Accumulated Other Comprehensive Loss [Line Items] | |
Decrease (increase) in pension and other postretirement benefit obligations | 84 |
Decrease in accumulated other comprehensive loss, unamortized prior service credits, net | 91 |
Increase in accumulated other comprehensive loss, unamortized actuarial losses, net | 7 |
Permanent closure of the Laurentide, Quebec paper mill and the paper mill in Iroquois Falls, Ontario [Member] | |
Accumulated Other Comprehensive Loss [Line Items] | |
Decrease (increase) in pension and other postretirement benefit obligations | -208 |
Increase in accumulated other comprehensive loss, unamortized actuarial losses, net | 152 |
Approximate number of positions eliminated | 470 |
Increase in accumulated other comprehensive loss, unamortized actuarial losses, tax benefit | 56 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) - Addtitional Information (Parenthetical) (Details) (U.S. OPEB Plan for Unionized U.S. Post-Medicare Participants [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
U.S. OPEB Plan for Unionized U.S. Post-Medicare Participants [Member] | |
Accumulated Other Comprehensive Loss [Line Items] | |
Decrease in accumulated other comprehensive loss, net | $84 |
Accumulated_Other_Comprehensiv5
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $3,240 | $3,446 | $3,485 | |||||||||
Closure costs, impairment and other related charges | 131 | 85 | 52 | 10 | 33 | 4 | 12 | 40 | 278 | 89 | 185 | |
Other (expense) income, net | 83 | 62 | -22 | |||||||||
Income tax (provision) benefit | -30 | 524 | -39 | |||||||||
Net of tax | 109 | 116 | 2 | 50 | 3 | 588 | 43 | 5 | 277 | 639 | -1 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net of tax | -3 | |||||||||||
Unamortized Prior Service Credits [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | -13 | [1] | ||||||||||
Closure costs, impairment and other related charges | -3 | [1] | ||||||||||
Income tax (provision) benefit | 1 | |||||||||||
Net of tax | -15 | |||||||||||
Unamortized Actuarial Losses [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 5 | [1] | ||||||||||
Closure costs, impairment and other related charges | 7 | [1] | ||||||||||
Other (expense) income, net | 4 | |||||||||||
Income tax (provision) benefit | -4 | |||||||||||
Net of tax | $12 | |||||||||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 14, “Pension and Other Postretirement Benefit Plans.†|
Net_Loss_Income_Per_Share_Sche
Net (Loss) Income Per Share - Schedule of Weighted-Average Stock Options and Equity-Classified RSUs, DSUs and PSUs Outstanding (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Stock options [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of award shares outstanding (with antidilutive impact) | 1.6 | [1] | 2 | [1] | ||
Number of award shares outstanding (with dilutive impact) | 1.5 | [2] | ||||
Stock unit awards [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of award shares outstanding (with antidilutive impact) | 1.3 | [1] | 1 | [1] | ||
Number of award shares outstanding (with dilutive impact) | 0.8 | [2] | ||||
[1] | These stock options and stock unit awards were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | |||||
[2] | The dilutive impact of these stock options and stock unit awards on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. |
Net_Loss_Income_Per_Share_Addi
Net (Loss) Income Per Share - Additional Information (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Adjustments to net (loss) income attributable to Resolute Forest Products Inc. for calculation of per share amounts | 0 | 0 | 0 |
Inventories_Net_Details
Inventories, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $160 | $153 |
Finished goods | 192 | 195 |
Mill stores and other supplies | 190 | 181 |
Inventories, net | $542 | $529 |
Inventories_Net_Additional_Inf
Inventories, Net - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||||||||||
Inventory write-downs related to closures | $7 | $6 | $3 | $1 | $6 | $0 | $1 | $4 | $17 | $11 | $12 |
Fixed_Assets_Net_Details
Fixed Assets, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land and land improvements | $93 | $89 |
Buildings | 293 | 291 |
Machinery and equipment | 2,318 | 2,239 |
Hydroelectric power plants | 286 | 286 |
Timberlands and timberlands improvements | 91 | 83 |
Construction in progress | 102 | 61 |
Fixed assets, gross | 3,183 | 3,049 |
Less: accumulated depreciation | -1,198 | -760 |
Fixed assets, net | 1,985 | 2,289 |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | 31 | 30 |
Construction in progress | 24 | 9 |
Fixed assets, gross | 55 | 39 |
Less: accumulated depreciation | -8 | -4 |
Fixed assets, net | $47 | $35 |
Fixed_Assets_Net_Fixed_Assets_
Fixed Assets, Net Fixed Assets, Net (Parenthetical) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Finite-lived intangible assets, future amortization expense, years presented | 5 years | |
Land and land improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Land and land improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Hydroelectric power plants [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Hydroelectric power plants [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Timber and timberlands improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Timber and timberlands improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Internal-use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated amortization expense, 2015 | 8 | |
Estimated amortization expense, 2016 | 8 | |
Estimated amortization expense, 2017 | 8 | |
Estimated amortization expense, 2018 | 8 | |
Estimated amortization expense, 2019 | 8 |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Trade accounts payable | $361 | $361 |
Payroll, bonuses and severance payable | 85 | 97 |
Accrued interest | 5 | 5 |
Pension and OPEB obligations | 20 | 24 |
Income and other taxes payable | 13 | 6 |
Environmental liabilities | 8 | 5 |
Other | 26 | 35 |
Accounts payable and accrued liabilities | $518 | $533 |
LongTerm_Debt_Long_Term_Debt_I
Long-Term Debt - Long Term Debt Including Current Portion (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $597 | $599 |
Less: Current portion of long-term debt | -1 | -2 |
Long-term debt, net of current portion | 596 | 597 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital lease obligation | 2 | 3 |
Total debt | 2 | 4 |
Senior Notes Due 2023 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 600 | 600 |
Unamortized discount | -5 | -5 |
Net carrying amount | 595 | 595 |
PSIF-Investissement Quebec [Member] | Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | $0 | $1 |
LongTerm_Debt_Debt_Redemption_
Long-Term Debt - Debt Redemption Schedule (Details) (Redemption Including Accrued And Unpaid Interest [Member], Senior Notes Due 2023 [Member], Senior Notes [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Twelve Month Period Beginning May 15, 2017 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 104.41% |
Twelve Month Period Beginning May 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 102.94% |
Twelve Month Period Beginning May 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 101.47% |
Twelve Month Period Beginning May 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 100.00% |
LongTerm_Debt_Debt_Redemption_1
Long-Term Debt - Debt Redemption Schedule - Additional Information (Details) (Senior Notes [Member], Senior Notes Due 2023 [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Redemption Including Accrued and Unpaid Interest and Supplemented with a Make-Whole Premium Prior to May 15, 2017 [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Redemption Using Proceeds Of Equity Offerings Prior To May 15, 2016 [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 105.88% |
Redemption Using Proceeds Of Equity Offerings Prior To May 15, 2016 [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Percentage of notes that may be redeemed using proceeds of equity offerings before May 15, 2016 | 35.00% |
Redemption Including Accrued And Unpaid Interest Upon A Change Of Control [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 101.00% |
Redemption Including Accrued And Unpaid Interest Using Net Cash Proceeds From Asset Sales [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
LongTerm_Debt_LongTerm_Debt_In
Long-Term Debt - Long-Term Debt Including Current Portion - 2023 Notes (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 8-May-13 | Oct. 08, 2013 | Oct. 10, 2012 | |
Debt Instrument [Line Items] | ||||||
Net loss on extinguishment of debt | $0 | $59,000,000 | ($2,000,000) | |||
Senior Notes Due 2023 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | 600,000,000 | |||||
Interest rate of notes | 5.88% | |||||
Fair value of senior notes | 571,000,000 | 554,000,000 | 594,000,000 | |||
Unamortized discount | 6,000,000 | |||||
Effective interest rate of debt | 6.00% | |||||
Maturity date | 15-May-23 | |||||
Deferred financing costs | 9,000,000 | |||||
Senior Secured Notes Due 2018 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of notes | 10.25% | |||||
Principal amount of debt repurchased | 496,000,000 | 5,000,000 | 85,000,000 | |||
Percentage of principal amount of outstanding debt redeemed | 99.00% | |||||
Debt repurchase - consideration paid, total | 584,000,000 | |||||
Debt repurchase - consideration paid, accrued and unpaid interest | 4,000,000 | |||||
Redemption price | 103.00% | 103.00% | ||||
Net loss on extinguishment of debt | 59,000,000 | |||||
Write-down of unamortized premium | $25,000,000 |
LongTerm_Debt_LongTerm_Debt_In1
Long-Term Debt - Long-Term Debt Including Current Portion - ABL Credit Facility (Details) (Revolving Credit Facility [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2010 | |
entity | ||
Line of Credit Facility [Line Items] | ||
Number of entities entered in agreement | 4 | |
Maturity date | 28-Oct-16 | |
Credit facility lender commitment amount | $665,000,000 | |
Credit facility uncommitted incremental loan borrowing capacity | 200,000,000 | |
Borrowing base availability, eligible domestic accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible international accounts receivable, percentage | 90.00% | |
Borrowing base availability, eligible inventory, percentage | 65.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, cash deposits, percentage | 100.00% | |
Minimum fixed charge coverage ratio required if excess availability falls below certain conditions | 1 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, amount | 50,000,000 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, percentage of the lesser of total commitments and the borrowing base In effect | 10.00% | |
Credit facility amount outstanding | 0 | |
Available credit facility borrowing capacity | 521,000,000 | |
Swingline Sub-Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 60,000,000 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 200,000,000 | |
Letters of credit amount outstanding | 37,000,000 | |
U.S. and Canadian Borrowers [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 465,000,000 | |
U.S. Borrowers [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 200,000,000 | |
Available credit facility borrowing capacity | 318,000,000 | |
Canadian Borrower [Member] | ||
Line of Credit Facility [Line Items] | ||
Available credit facility borrowing capacity | 203,000,000 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Unutilized commitment fee payable per annum | 0.38% | |
Minimum [Member] | Bankers Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% | |
Minimum [Member] | Eurodollar Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% | |
Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.75% | |
Minimum [Member] | Canadian Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.75% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base availability, cash deposits, amount | $100,000,000 | |
Unutilized commitment fee payable per annum | 0.50% | |
Maximum [Member] | Bankers Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 2.25% | |
Maximum [Member] | Eurodollar Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 2.25% | |
Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.25% | |
Maximum [Member] | Canadian Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.25% | |
Eurodollar Rate [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
Federal Funds Rate [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.50% | |
Rate For Certificates Of Deposit [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.50% |
LongTerm_Debt_LongTerm_Includi
Long-Term Debt - Long-Term Including Current Portion - Other Debt (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Feb. 23, 2007 | Dec. 31, 2012 |
USD ($) | Other Debt [Member] | Other Debt [Member] | Other Debt [Member] | Fibrek [Member] | |
PSIF-Investissement Quebec [Member] | PSIF-Investissement Quebec [Member] | USD ($) | |||
CAD | |||||
Debt Instrument [Line Items] | |||||
Carrying value of assets pledged as collateral for total debt | $1,400,000,000 | ||||
Repayments of term loan and credit facility | 112,000,000 | ||||
Principal amount of loan | 6,000,000 | ||||
Interest free loan maximum installment period | 4 years | ||||
Renewal period of warehouse | 20 years |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans - Additional Information (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | 6-May-14 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | CAD | USD ($) | USD ($) | Canada [Member] | Canada [Member] | Equity Securities [Member] | Equity Securities [Member] | Debt Securities [Member] | U.S. OPEB Plan for Unionized U.S. Post-Medicare Participants [Member] | U.S. OPEB For U.S. Salaried Post-Medicare Retirees [Member] | OPEB Plans [Member] | RFP Canada Inc. [Member] | RFP Canada Inc. [Member] | RFP Canada Inc. [Member] | Minimum [Member] | Maximum [Member] | Restart of previously closed Gatineau, Quebec paper mill [Member] | Permanent closure of the Laurentide, Quebec paper mill and the paper mill in Iroquois Falls, Ontario [Member] | Permanent closure of pulp and paper mill in Fort Frances, Ontario [Member] | Indefinite idling of our Mersey operations in Nova Scotia [Member] | Restructuring initiative at Baie-Comeau, Quebec paper mill [Member] | Unamortized Actuarial Losses [Member] | Unamortized Prior Service Credits [Member] | |
Pension_Plans | USD ($) | CAD | United States and Canada [Member] | USD ($) | USD ($) | CAD | Quebec [Member] | Ontario [Member] | RFP Canada Inc. [Member] | RFP Canada Inc. [Member] | USD ($) | Positions | Positions | Positions | Positions | USD ($) | USD ($) | |||||||
Employees | ||||||||||||||||||||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||||||||||||||||||||
Expense for the defined contribution plans, total | $22,000,000 | $22,000,000 | $21,000,000 | |||||||||||||||||||||
Total benefit obligations for pension plans with benefit obligations in excess of plan assets | 5,947,000,000 | 5,079,000,000 | ||||||||||||||||||||||
Total fair value of plan assets for pension plans with benefit obligations in excess of plan assets | 4,521,000,000 | 4,071,000,000 | ||||||||||||||||||||||
Total accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | 5,765,000,000 | 5,014,000,000 | ||||||||||||||||||||||
Total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 4,417,000,000 | 4,071,000,000 | ||||||||||||||||||||||
Total accumulated benefit obligations for all pension plans | 6,150,000,000 | 5,931,000,000 | ||||||||||||||||||||||
Number of employees reinstated to pension plan | 119 | |||||||||||||||||||||||
Prior service cost (credit), before tax | 91,000,000 | 21,000,000 | -18,000,000 | |||||||||||||||||||||
Actuarial gain (loss), before tax | -36,000,000 | |||||||||||||||||||||||
Estimated amount that will be amortized from accumulated other comprehensive loss in the next fiscal year | 78,000,000 | -15,000,000 | ||||||||||||||||||||||
Approximate number of positions eliminated | 470 | 150 | 176 | 90 | ||||||||||||||||||||
Number of pension plans curtailed | 2 | 2 | ||||||||||||||||||||||
Assumed percentage change in the health care cost trend rate | 1.00% | |||||||||||||||||||||||
Targeted asset allocation of plan assets | 50.00% | 60.00% | 50.00% | |||||||||||||||||||||
Targeted asset allocation of plan assets, minimum | 30.00% | 40.00% | ||||||||||||||||||||||
Targeted asset allocation of plan assets, maximum | 60.00% | 70.00% | ||||||||||||||||||||||
Targeted asset allocation, maximum, short-term instruments | 5.00% | 5.00% | ||||||||||||||||||||||
Years disclosed of expected future benefit payments | 10 years | 10 years | ||||||||||||||||||||||
Estimated pension contributions in the next fiscal year | 129,000,000 | 104,000,000 | 121,000,000 | |||||||||||||||||||||
Corridor of years over which the discount rate for pension plan funding purposes can be determined | 25 years | 25 years | ||||||||||||||||||||||
Discount rate corridor as percentage of the 25-year average used in determining pension plan funding requirements | 10.00% | 10.00% | 15.00% | |||||||||||||||||||||
Discount rate corridor as percentage of the 25-year average used in determining pension plan funding requirements through 2017 | 10.00% | 10.00% | ||||||||||||||||||||||
Discount rate corridor yearly widening as percentage of the 25-year average used in determining pension plan funding requirements post 2017 | 5.00% | 5.00% | ||||||||||||||||||||||
Discount rate corridor as percentage of the 25-year average used in determining pension plan funding requirements in 2021 and beyond | 30.00% | 30.00% | ||||||||||||||||||||||
Reduction in minimum required contributions from using discount rate corridor | 35,000,000 | 23,000,000 | ||||||||||||||||||||||
Percentage of total unfunded pension obligations represented by the pension plans subject to Canadian pension funding relief measures | 70.00% | 70.00% | ||||||||||||||||||||||
Revised annual contribution to pension plans subject to Canadian pension funding relief measures | 80,000,000 | |||||||||||||||||||||||
Percentage threshold by which solvency ratio of pension plans subject to canadian pension funding relief measures is less than the target of the previous year before triggering additional contribution | 2.00% | 2.00% | ||||||||||||||||||||||
Maximum additional contribution triggered if the percentage of the solvency ratio of the pension plans subject to canadian pension funding relief measures is less than the target of the previous year | 25,000,000 | |||||||||||||||||||||||
Period over which subsequent year supplemental contribution payments under the Canadian pension funding relief regulations must be made | 3 years | 3 years | ||||||||||||||||||||||
Basic annual contribution to pension plans subject to Canadian pension funding relief measures | 50,000,000 | |||||||||||||||||||||||
Minimum weighted average solvency ratio before dividend payments are restricted under the Canadian pension funding relief regulations | 80.00% | |||||||||||||||||||||||
Minimum geographic concentration of maintenance and value creation investments in Canadian pulp and paper operations under the Canadian pension funding relief regulations | 60.00% | 30.00% | ||||||||||||||||||||||
Minimum amount of construction spending required under the Canadian pension funding relief regulations | 50,000,000 | |||||||||||||||||||||||
Length of the construction period stipulated under the Canadian pension funding relief regulations | 2 years | 3 years | ||||||||||||||||||||||
Minimum amount of investments in strategic projects required under the Canadian pension funding relief regulations | 75,000,000 | |||||||||||||||||||||||
Period over which the investments in strategic projects required under the Canadian pension funding relief regulations must be made | 5 years | |||||||||||||||||||||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations | 75 | |||||||||||||||||||||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, payment period | 4 years | |||||||||||||||||||||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, consecutive period of continued downtime threshold | 6 months | |||||||||||||||||||||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, cumulative period of downtime threshold | 9 months | |||||||||||||||||||||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, period covering cumulative period of downtime threshold | 18 months | |||||||||||||||||||||||
Annual diversification fund contribution required under the Canadian pension funding relief regulations | 2,000,000 | |||||||||||||||||||||||
Period covering annual diversification fund contributions under the Canadian pension funding relief regulations | 5 years | |||||||||||||||||||||||
Aggregate amount of environmental remediation required under the Canadian pension funding relief regulations | 5,000,000 | |||||||||||||||||||||||
Period covering environmental remediation required under the Canadian pension funding relief regulations | 5 years | |||||||||||||||||||||||
Period any additional contributions related to downtime under the Canadian pension funding relief regulations could be required | 3 years | 3 years | ||||||||||||||||||||||
Maximum expected annual additional contribution related to downtime expected in the years 2015 to 2018 under the Canadian pension funding relief regulations | 20,000,000 | |||||||||||||||||||||||
Corrective measures amount payable under the Canadian pension funding relief regulations at expiration | 110,000,000 | |||||||||||||||||||||||
Corrective measures amount payable under the Canadian pension funding relief regulations, payment period | 5 years | 5 years | ||||||||||||||||||||||
Change in assumption, discount rate, percentage | 1.00% | 1.00% | ||||||||||||||||||||||
Change in assumption, discount rate, change in solvency deficit | $330,000,000 | 380,000,000 |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans - Additional Information (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Expense for the defined contribution plans, total | $22 | $22 | $21 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefit Plans - Summary of Changes in Benefit Obligations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | $6,004 | $6,724 | |
Service cost | 26 | 33 | 36 |
Interest cost | 274 | 274 | 312 |
Actuarial loss (gain) | 788 | -208 | |
Participant contributions | 11 | 18 | |
Plan amendments | 0 | 18 | |
Curtailments | 4 | 7 | |
Settlements | -5 | -6 | |
Benefits paid | -440 | -489 | |
Effect of foreign currency exchange rate changes | -433 | -367 | |
Benefit obligations as of end of year | 6,229 | 6,004 | 6,724 |
OPEB Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | 310 | 424 | |
Service cost | 1 | 3 | 3 |
Interest cost | 11 | 16 | 20 |
Actuarial loss (gain) | 10 | -79 | |
Participant contributions | 4 | 5 | |
Plan amendments | -91 | -21 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Benefits paid | -23 | -27 | |
Effect of foreign currency exchange rate changes | -12 | -11 | |
Benefit obligations as of end of year | $210 | $310 | $424 |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefit Plans - Summary of Change in Plan Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of end of year | $4,808 | $5,013 |
Pension Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 5,013 | 5,175 |
Actual return on plan assets | 450 | 472 |
Employer contributions | 142 | 133 |
Participant contributions | -11 | -18 |
Settlements | -5 | -6 |
Benefits paid | -440 | -489 |
Effect of foreign currency exchange rate changes | -363 | -290 |
Fair value of plan assets as of end of year | 4,808 | 5,013 |
Funded status as of end of year | -1,421 | -991 |
OPEB Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 19 | 22 |
Participant contributions | -4 | -5 |
Settlements | 0 | 0 |
Benefits paid | -23 | -27 |
Effect of foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets as of end of year | 0 | 0 |
Funded status as of end of year | ($210) | ($310) |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefit Plans - Summary of Amounts Recognized in our Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accounts payable and accrued liabilities | ($20) | ($24) |
Pension and OPEB obligations | -1,616 | -1,294 |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 5 | 17 |
Accounts payable and accrued liabilities | -4 | -3 |
Pension and OPEB obligations | -1,422 | -1,005 |
Net obligations recognized | -1,421 | -991 |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 0 | 0 |
Accounts payable and accrued liabilities | -16 | -21 |
Pension and OPEB obligations | -194 | -289 |
Net obligations recognized | ($210) | ($310) |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments and settlements | $4 | $3 | $21 |
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 26 | 33 | 36 |
Interest cost | 274 | 274 | 312 |
Expected return on plan assets | -300 | -308 | -340 |
Amortization of prior service credits | -2 | -2 | 0 |
Amortization of actuarial losses (gains) | 9 | 25 | 0 |
Net periodic benefit cost before special events | 7 | 22 | 8 |
Curtailments and settlements | 4 | 3 | 21 |
Net periodic benefit cost | 11 | 25 | 29 |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 1 | 3 | 3 |
Interest cost | 11 | 16 | 20 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | -11 | -1 | 0 |
Amortization of actuarial losses (gains) | -4 | -2 | 0 |
Net periodic benefit cost before special events | -3 | 16 | 23 |
Curtailments and settlements | 0 | 0 | 0 |
Net periodic benefit cost | ($3) | $16 | $23 |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefit Plans - Summary of Special Events that Impacted Net Periodic Benefit Costs as Curtailment or Settlement (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments and settlements | $4 | $3 | $21 |
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Settlements resulting from lump-sum payouts | 0 | 0 | 10 |
Curtailments resulting from closure related and other workforce reductions | 4 | 3 | 11 |
Curtailments and settlements | 4 | 3 | 21 |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Settlements resulting from lump-sum payouts | 0 | 0 | 0 |
Curtailments resulting from closure related and other workforce reductions | 0 | 0 | 0 |
Curtailments and settlements | $0 | $0 | $0 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefit Plans - Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 4.00% | 4.90% | 4.30% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Discount rate | 4.90% | 4.30% | 4.90% |
Expected return on assets | 6.50% | 6.30% | 6.50% |
Rate of compensation increase | 2.50% | 2.50% | 1.20% |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 4.00% | 5.00% | 4.20% |
Discount rate | 5.00% | 4.20% | 4.90% |
Recovered_Sheet1
Pension and Other Postretirement Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 7.20% | 7.50% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2028 | 2028 |
Foreign Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 4.40% | 4.40% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 3.80% | 3.80% |
Year that the rate reaches the ultimate trend rate | 2033 | 2033 |
Recovered_Sheet2
Pension and Other Postretirement Benefit Plans - Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Domestic Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $4 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | 1 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 15.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | -3 |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | -4.00% |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | -1 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | -13.00% |
Foreign Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | 7 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | 0 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | -6 |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | -4.00% |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | -4.00% |
Recovered_Sheet3
Pension and Other Postretirement Benefit Plans - Fair Value of Plan Assets Held by Pension Plans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | $4,808 | $5,013 | |
Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,092 | 2,071 | |
Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,665 | 2,854 | |
Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 51 | 88 | 87 |
U.S. company equity securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 678 | 751 | |
U.S. company equity securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 678 | 751 | |
U.S. company equity securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
U.S. company equity securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Non-U.S. company equity securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 1,015 | 912 | |
Non-U.S. company equity securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 723 | 636 | |
Non-U.S. company equity securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 292 | 276 | |
Non-U.S. company equity securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Corporate and government debt securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,715 | 2,611 | |
Corporate and government debt securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 494 | 240 | |
Corporate and government debt securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,221 | 2,371 | |
Corporate and government debt securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Asset-backed securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 110 | 161 | |
Asset-backed securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Asset-backed securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 110 | 161 | |
Asset-backed securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Bank loans/foreign annuities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 4 | 40 | |
Bank loans/foreign annuities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Bank loans/foreign annuities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Bank loans/foreign annuities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 4 | 40 | 41 |
Real estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 47 | 48 | |
Real estate [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Real estate [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Real estate [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 47 | 48 | 46 |
Cash and cash equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 197 | 444 | |
Cash and cash equivalents [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 197 | 444 | |
Cash and cash equivalents [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Cash and cash equivalents [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Accrued interest and dividends [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 42 | 46 | |
Accrued interest and dividends [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Accrued interest and dividends [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 42 | 46 | |
Accrued interest and dividends [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | $0 | $0 |
Recovered_Sheet4
Pension and Other Postretirement Benefit Plans - Changes in Level 3 Pension Plan Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of end of year | $4,808 | $5,013 |
Bank loans/foreign annuities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of end of year | 4 | 40 |
Real estate [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of end of year | 47 | 48 |
Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 88 | 87 |
Unrealized gains (losses) relating to assets held | 1 | 7 |
Realized gains | 2 | |
Purchases | 11 | 40 |
Sales | -44 | -41 |
Effect of foreign currency exchange rate changes | -7 | -5 |
Fair value of plan assets as of end of year | 51 | 88 |
Level 3 [Member] | Bank loans/foreign annuities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 40 | 41 |
Unrealized gains (losses) relating to assets held | -2 | 2 |
Realized gains | 2 | |
Purchases | 11 | 40 |
Sales | -44 | -41 |
Effect of foreign currency exchange rate changes | -3 | -2 |
Fair value of plan assets as of end of year | 4 | 40 |
Level 3 [Member] | Real estate [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 48 | 46 |
Unrealized gains (losses) relating to assets held | 3 | 5 |
Realized gains | 0 | |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Effect of foreign currency exchange rate changes | -4 | -3 |
Fair value of plan assets as of end of year | $47 | $48 |
Recovered_Sheet5
Pension and Other Postretirement Benefit Plans - Expected Benefit Payments and Future Contributions (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2015 expected benefit payments | $406 | [1] |
2016 Expected benefit payments | 407 | [1] |
2017 Expected benefit payments | 407 | [1] |
2018 Expected benefit payments | 407 | [1] |
2019 Expected benefit payments | 406 | [1] |
2020 - 2024 Expected benefit payments | 1,976 | [1] |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2015 expected benefit payments | 16 | |
2016 Expected benefit payments | 16 | |
2017 Expected benefit payments | 15 | |
2018 Expected benefit payments | 15 | |
2019 Expected benefit payments | 14 | |
2020 - 2024 Expected benefit payments | $67 | |
[1] | Benefit payments are expected be paid from the plans’ net assets. |
Income_Taxes_Loss_Before_Incom
Income Taxes - Loss Before Income Taxes by Taxing Jurisdiction (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | ($221) | ($168) | ($34) |
Foreign | -83 | 53 | -38 |
(Loss) income before income taxes | ($304) | ($115) | ($72) |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax (Provision) Benefit (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Federal and State: | |||
Current | ($4) | $0 | ($2) |
Deferred | 6 | -504 | 17 |
U.S. Federal and State, Total | 2 | -504 | 15 |
Foreign: | |||
Current | -2 | -1 | 5 |
Deferred | 30 | -19 | 19 |
Foreign, Total | 28 | -20 | 24 |
Total: | |||
Current | -6 | -1 | 3 |
Deferred | 36 | -523 | 36 |
Income tax benefit (provision) | $30 | ($524) | $39 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Disclosure [Abstract] | ||||||
Loss before income taxes | ($304) | ($115) | ($72) | |||
Income tax benefit (provision): | ||||||
Expected income tax benefit | 106 | 40 | 25 | |||
Changes resulting from: | ||||||
Valuation allowance | -51 | [1] | -572 | [1] | -24 | [1] |
Reorganization-related and other tax adjustments | 0 | [2] | 0 | [2] | 13 | [2] |
Foreign exchange | -17 | -4 | 10 | |||
Research and development tax incentives | 1 | 2 | 8 | |||
State income taxes, net of federal income tax benefit | 5 | 3 | 1 | |||
Foreign tax rate differences | -8 | 4 | 1 | |||
Other, net | -6 | 3 | 5 | |||
Income tax benefit (provision) | $30 | ($524) | $39 | |||
[1] | During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily due to an increase in the valuation allowance related to our U.S. operations, where we do not recognize net deferred income tax assets, partly offset by a tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary. See “Deferred income taxes†section below for a further discussion of the valuation allowance.During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets.During 2012, the increase in the valuation allowance primarily related to costs associated with the indefinite idling of our Mersey operations prior to the sale, where we did not recognize tax benefits, as well as an increase in the valuation allowance for certain benefits in Canada and the U.S. that were expected to expire unused. Partially offsetting these increases was a release of valuation allowance related to the U.S. Fibrek operations, following an internal reorganization where the U.S. Fibrek group joined our U.S. consolidated group. | |||||
[2] | During 2012, we recorded reorganization-related and other tax adjustments, which represented adjustments to our previously-reported tax balance sheet accounts. |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Taxes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ||||
Fixed assets | ($191) | ($236) | ||
Deferred gains | 0 | -41 | ||
Other liabilities | -13 | -54 | ||
Deferred income tax liabilities | -204 | -331 | ||
Fixed assets | 591 | 575 | ||
Pension and OPEB plans | 480 | 389 | ||
Ordinary loss carryforwards | 767 | 843 | ||
Capital loss carryforwards | 3 | [1] | 444 | [1] |
Research and development expense pool | 204 | 223 | ||
Tax credit carryforwards | 109 | 119 | ||
Other assets | 91 | 99 | ||
Deferred income tax assets | 2,245 | 2,692 | ||
Valuation allowance | -755 | -1,121 | ||
Net deferred income tax assets | 1,286 | 1,240 | ||
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||||
Deferred income tax assets - current | 70 | 32 | ||
Deferred income tax assets - noncurrent | 1,219 | 1,266 | ||
Deferred income tax liabilities - current | 0 | -32 | ||
Deferred income tax liabilities - noncurrent | -3 | -26 | ||
Net deferred income tax assets | $1,286 | $1,240 | ||
[1] | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. |
Income_Taxes_Balance_of_Tax_At
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | $767 | $843 | ||
Capital loss carryforwards | 3 | [1] | 444 | [1] |
Research and development expense pool | 204 | 223 | ||
Tax credit carryforwards | 109 | 119 | ||
U.S. Federal [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | 626 | [2] | ||
U.S. State [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | 70 | [2] | ||
Tax credit carryforwards | 3 | [2] | ||
Canada Federal and Provincial (Excluding Quebec) [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | 20 | |||
Research and development expense pool | 129 | |||
Quebec [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | 28 | |||
Research and development expense pool | 75 | |||
Other [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Ordinary loss carryforwards | 23 | |||
Canadian [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Capital loss carryforwards | 3 | |||
Research Tax Credit Carryforward [Member] | Canadian [Member] | ||||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||||
Tax credit carryforwards | $106 | |||
[1] | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. | |||
[2] | As of December 31, 2014, we had a full valuation allowance against our U.S. operations net deferred income tax assets. |
Income_Taxes_Balance_of_Tax_At1
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Parenthetical) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
U.S. Federal [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | $1,788 |
U.S. State [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 1,710 |
Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 131 |
Research and development expense pool | 722 |
Canadian [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Capital loss carryforwards | 11 |
Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 289 |
Research and development expense pool | $884 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits | ||
Beginning of year | $81 | $84 |
(Decrease) increase in unrecognized tax benefits resulting from: [Roll Forward] | ||
Positions taken in a prior period | 0 | -1 |
Positions taken in the current period | 38 | 4 |
Settlements with taxing authorities | -4 | 0 |
Change in Canadian foreign exchange rate | -6 | -6 |
End of year | $109 | $81 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Disclosure [Abstract] | ||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
Increase (decrease) in valuation allowance | $51 | [1] | $572 | [1] | $24 | [1] |
Operating Loss Carryforwards [Line Items] | ||||||
Unrecognized tax benefits that would impact the effective tax rate | 68 | |||||
Fibrek Holding Inc. [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Cumulative loss position, period | 3 years | |||||
Period of improved profitability | 2 years | |||||
Capital Loss Carryforward [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
(Increase) decrease in valuation allowance | $440 | |||||
[1] | During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily due to an increase in the valuation allowance related to our U.S. operations, where we do not recognize net deferred income tax assets, partly offset by a tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary. See “Deferred income taxes†section below for a further discussion of the valuation allowance.During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets.During 2012, the increase in the valuation allowance primarily related to costs associated with the indefinite idling of our Mersey operations prior to the sale, where we did not recognize tax benefits, as well as an increase in the valuation allowance for certain benefits in Canada and the U.S. that were expected to expire unused. Partially offsetting these increases was a release of valuation allowance related to the U.S. Fibrek operations, following an internal reorganization where the U.S. Fibrek group joined our U.S. consolidated group. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Details) | 0 Months Ended | 12 Months Ended | |||||||
Oct. 30, 2014 | Oct. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Jul. 31, 2012 | Dec. 31, 2014 | |
USD ($) | CAD | USD ($) | CAD | USD ($) | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] | Conditional Incentive Noncompliance [Member] | |
site | USD ($) | CAD | USD ($) | ||||||
Commitments And Contingencies [Line Items] | |||||||||
Percentage of outstanding shares acquired | 25.40% | ||||||||
Amount accrued to be contingently distributed | $12,000,000 | 14,000,000 | |||||||
Maximum deficit from partial wind-up of pension plans to be funded | 130,000,000 | 150,000,000 | |||||||
Number of hazardous waste sites | 4 | 4 | |||||||
Environmental liabilities | 18,000,000 | 9,000,000 | |||||||
Asset retirement obligations | 22,000,000 | 17,000,000 | |||||||
Request of repayment of conditional incentive | 20,000,000 | 23,000,000 | |||||||
Contingent liability recorded | $0 |
Share_Capital_Details
Share Capital (Details) (USD $) | 12 Months Ended | 25 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jul. 31, 2012 | 22-May-12 | Dec. 09, 2010 | |
Equity [Line Items] | |||||||
Capital stock, shares authorized | 200,000,000 | ||||||
Common stock, shares authorized | 190,000,000 | ||||||
Common stock, par value | $0.00 | $0.00 | |||||
Preferred stock, shares authorized | 10,000,000 | ||||||
Preferred stock, par value | $0.00 | ||||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Common stock, shares issued to debtors in creditor protection proceedings | 97,134,954 | ||||||
Common stock, shares reserved for equity incentives | 9,020,960 | ||||||
Common stock, shares distributed to debtors in creditor protection proceedings | 3,693,601 | 93,117,807 | |||||
Treasury stock, shares, transferred from plans of reorganization | 323,546 | ||||||
Stock repurchase program, percentage of common stock authorized eligible to be repurchased | 10.00% | ||||||
Stock repurchase program, aggregate purchase price | $100,000,000 | ||||||
Stock repurchase program, shares, repurchased | 5,600,000 | ||||||
Stock repurchase program, cost, repurchased | 67,000,000 | ||||||
Common stock, dividends declared | $0 | $0 | $0 | ||||
Common stock, dividends paid | $0 | $0 | $0 | ||||
Fibrek [Member] | |||||||
Equity [Line Items] | |||||||
Treasury stock, shares, reissued | 503,054 | ||||||
Share Repurchase Program [Member] | |||||||
Equity [Line Items] | |||||||
Stock repurchase program, shares, repurchased | 0 | 0 | 5,610,152 | ||||
Stock repurchase program, cost, repurchased | $67,000,000 | ||||||
Chapter 11 Plan of Reorganization [Member] | |||||||
Equity [Line Items] | |||||||
Treasury stock, shares, transferred from plans of reorganization | 276,662 | ||||||
CCAA Plan of Reorganization [Member] | |||||||
Equity [Line Items] | |||||||
Treasury stock, shares, transferred from plans of reorganization | 46,884 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $6,000,000 | $8,000,000 | $5,000,000 | ||
Tax benefit from share-based compensation expense | 0 | 0 | 1,000,000 | ||
Unrecognized compensation cost related to equity awards | 18,000,000 | ||||
Remaining requisite service period for equity awards to be recognized | 2 years 11 months | ||||
Stock options granted | 0 | 692,759 | 785,885 | ||
Total intrinsic value - stock options exercised | 2,000,000 | ||||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period from the grant date for stock options | 10 years | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | ||
RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant-date fair value of awards granted | $18.62 | [1] | $16.15 | $11.66 | |
Total fair value - stock units vested | $5,000,000 | $3,000,000 | $1,000,000 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period stock options become exercisable | 40 months | ||||
Number of shares of common stock received per stock unit converted | 1 | ||||
Weighted-average grant-date fair value of awards granted | $18.61 | ||||
Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance as stock incentive awards | 9,000,000 | ||||
Shares available for issuance | 5,500,000 | ||||
Incentive Plan [Member] | RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock received per stock unit converted | 1 | ||||
Deferred Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Director cash fees eligible to be surrendered for equity-based awards, low option | 50.00% | ||||
Director cash fees eligible to be surrendered for equity-based awards, high option | 100.00% | ||||
Equity-based awards issuable as a percentage of director cash fees surrendered | 110.00% | ||||
Premium incentive in the form of additional equity-based awards for cash fees surrendered | 10.00% | ||||
Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common shares upon which value of cash payments on conversion of stock units is derived | 1 | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Retirement eligibility period | 4 years | ||||
Maximum [Member] | Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period stock options become exercisable | 4 years | ||||
Maximum [Member] | Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period stock options become exercisable | 3 years | ||||
Settlement period for awards once vested | 3 years | ||||
Maximum [Member] | Director [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period stock options become exercisable | 1 year | ||||
Settlement period for awards once vested | 3 years | ||||
Maximum [Member] | Employees [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period stock options become exercisable | 4 years | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Retirement eligibility period | 6 months | ||||
[1] | Includes 17,064 DSUs to non-employee directors pursuant to the Deferred Compensation Plan. |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Options Assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | 15.66 | 11.41 | |
Fair value | 7.65 | 5.59 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 50.00% | 50.60% | |
Risk-free interest rate | 1.80% | 1.60% | |
Expected life in years | 6 years 3 months | 6 years 3 months |
ShareBased_Compensation_Stock_1
Share-Based Compensation - Stock Options Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | 2,029,303 | |
Exercised | -399,356 | |
Forfeited / expired | -46,006 | |
Outstanding - end of year | 1,583,941 | 2,029,303 |
Exercisable as of December 31, 2014 | 656,959 | |
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | $15.56 | |
Exercised | $14.01 | |
Forfeited / expired | $18.12 | |
Outstanding - end of year | $15.87 | $15.56 |
Exercisable as of December 31, 2014 | $18.16 | |
Stock Options, Additional Disclosures [Abstract] | ||
Weighted average contractual life - stock options outstanding | 7 years 9 months | 8 years 8 months 30 days |
Weighted average contractual life - stock options exercisable | 7 years | |
Aggregate intrinsic value - stock options outstanding | $4,000,000 | $0 |
Aggregate intrinsic value - stock options exercisable | $1,000,000 |
ShareBased_Compensation_RSU_an
Share-Based Compensation - RSU and DSU Activity (Details) (RSUs and DSUs [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
RSUs and DSUs [Member] | ||||
Stock Units Outstanding [Roll Forward] | ||||
Outstanding - beginning of year | 960,451 | |||
Granted | 411,791 | [1] | ||
Vested and settled | -304,997 | [2] | ||
Forfeited | -26,826 | |||
Outstanding - end of year | 1,040,419 | [3] | 960,451 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | ||||
Outstanding as of December 31, 2013 | $15.13 | |||
Granted | $18.62 | [1] | $16.15 | $11.66 |
Vested and settled | $14.65 | [2] | ||
Forfeited | $13.46 | |||
Outstanding as of December 31, 2014 | $16.69 | [3] | $15.13 | |
[1] | Includes 17,064 DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | |||
[2] | Includes 9,653 awards that vested prior to 2014, but settled in 2014. | |||
[3] | Includes 80,844 vested awards that have not been settled, of which 46,955 awards are DSUs to non-employee directors pursuant to the Deferred Compensation Plan. |
ShareBased_Compensation_RSU_an1
Share-Based Compensation - RSU and DSU Activity - Additional Information (Details) (RSUs and DSUs [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock units granted | 411,791 | [1] | |
Stock units vested and settled | 304,997 | [2] | |
Stock units outstanding | 1,040,419 | [3] | 960,451 |
Non Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock units granted | 17,064 | ||
Stock Units Vested In Prior Year But Not Settled Until Current Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units vested and settled | 9,653 | ||
Stock Units Vested In Current Year But Not Yet Settled [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units outstanding | 80,844 | ||
Stock Units Vested In Current Year But Not Yet Settled [Member] | Non Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units outstanding | 46,955 | ||
[1] | Includes 17,064 DSUs to non-employee directors pursuant to the Deferred Compensation Plan. | ||
[2] | Includes 9,653 awards that vested prior to 2014, but settled in 2014. | ||
[3] | Includes 80,844 vested awards that have not been settled, of which 46,955 awards are DSUs to non-employee directors pursuant to the Deferred Compensation Plan. |
ShareBased_Compensation_ShareB
Share-Based Compensation Share-Based Compensation - PSU Activity (Details) (Performance Shares [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Performance Shares [Member] | |
Stock Units Outstanding [Roll Forward] | |
Outstanding - beginning of year | 0 |
Granted | 296,443 |
Forfeited | -1,682 |
Outstanding - end of year | 294,761 |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |
Outstanding as of December 31, 2013 | $0 |
Granted | $18.61 |
Forfeited | $18.61 |
Outstanding as of December 31, 2014 | $18.61 |
Operating_Leases_and_Purchase_2
Operating Leases and Purchase Obligations - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $7 | $12 | $13 |
Purchase obligations - energy purchase obligations | $296 |
Operating_Leases_and_Purchase_3
Operating Leases and Purchase Obligations - Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase Obligations, 2015 | $155 | [1] |
Purchase Obligations, 2016 | 119 | [1] |
Purchase Obligations, 2017 | 96 | [1] |
Purchase Obligations, 2018 | 69 | [1] |
Purchase Obligations, 2019 | 34 | [1] |
Purchase Obligations, Thereafter | 56 | [1] |
Purchase Obligations, Total | 529 | [1] |
Operating Leases, 2015 | 3 | |
Operating Leases, 2016 | 3 | |
Operating Leases, 2017 | 3 | |
Operating Leases, 2018 | 3 | |
Operating Leases, 2019 | 2 | |
Operating Leases, Thereafter | 6 | |
Operating Leases, Total | $20 | |
[1] | Includes energy purchase obligations of $296Â million through 2026 for certain of our pulp and paper mills. |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Reporting Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | $1,055 | $1,096 | $1,091 | $1,016 | $1,150 | $1,130 | $1,107 | $1,074 | $4,258 | $4,461 | $4,503 | |||||||||||
Depreciation and amortization | 243 | 243 | 233 | |||||||||||||||||||
Operating income (loss) | -93 | [1] | -40 | [1] | -8 | [1] | -33 | [1] | 8 | [2] | 36 | [2] | 3 | [2] | -49 | [2] | -174 | [1],[3] | -2 | [2],[3] | -28 | [3] |
Capital expenditures | 193 | 161 | 169 | |||||||||||||||||||
Significant Items Included in Corporate and Other Operating Loss [Line Items] | ||||||||||||||||||||||
Net gain on disposition of assets | 0 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | 2 | 2 | 35 | |||||||||||
Closure costs, impairment and other related charges | -131 | -85 | -52 | -10 | -33 | -4 | -12 | -40 | -278 | -89 | -185 | |||||||||||
Inventory write-downs related to closures | -7 | -6 | -3 | -1 | -6 | 0 | -1 | -4 | -17 | -11 | -12 | |||||||||||
Transaction costs | -1 | 0 | -2 | -3 | -6 | |||||||||||||||||
Start-up costs | -2 | -1 | -1 | 0 | -1 | -3 | -13 | -15 | -4 | -32 | ||||||||||||
Significant items included in corporate and other operating loss | -140 | -92 | -54 | -11 | -41 | -7 | -26 | -62 | -297 | -136 | ||||||||||||
Newsprint [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 1,402 | 1,473 | 1,627 | |||||||||||||||||||
Depreciation and amortization | 69 | 73 | 72 | |||||||||||||||||||
Operating income (loss) | 23 | [3] | 40 | [3] | 97 | [3] | ||||||||||||||||
Capital expenditures | 39 | 57 | 58 | |||||||||||||||||||
Specialty Papers [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 1,272 | 1,366 | 1,562 | |||||||||||||||||||
Depreciation and amortization | 82 | 77 | 83 | |||||||||||||||||||
Operating income (loss) | -17 | [3] | 35 | [3] | 85 | [3] | ||||||||||||||||
Capital expenditures | 34 | 17 | 22 | |||||||||||||||||||
Market Pulp [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 974 | [4] | 1,053 | [4] | 814 | [4] | ||||||||||||||||
Depreciation and amortization | 53 | [4] | 52 | [4] | 44 | [4] | ||||||||||||||||
Operating income (loss) | 66 | [3],[4] | 42 | [3],[4] | -43 | [3],[4] | ||||||||||||||||
Capital expenditures | 23 | [4] | 40 | [4] | 40 | [4] | ||||||||||||||||
Wood Products [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 610 | 569 | 500 | |||||||||||||||||||
Depreciation and amortization | 33 | 36 | 34 | |||||||||||||||||||
Operating income (loss) | 69 | [3] | 41 | [3] | 26 | [3] | ||||||||||||||||
Capital expenditures | 77 | 31 | 22 | |||||||||||||||||||
Corporate and Other [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 0 | 0 | 0 | |||||||||||||||||||
Depreciation and amortization | 6 | 5 | 0 | |||||||||||||||||||
Operating income (loss) | -315 | [3] | -160 | [3] | -193 | [3] | ||||||||||||||||
Capital expenditures | 20 | 16 | 27 | |||||||||||||||||||
Significant Items Included in Corporate and Other Operating Loss [Line Items] | ||||||||||||||||||||||
Net gain on disposition of assets | 2 | 2 | 35 | |||||||||||||||||||
Closure costs, impairment and other related charges | -278 | -89 | -185 | |||||||||||||||||||
Inventory write-downs related to closures | -17 | -11 | -12 | |||||||||||||||||||
Severance costs | 0 | 0 | -5 | |||||||||||||||||||
Transaction costs | 0 | -6 | -8 | |||||||||||||||||||
Start-up costs | -4 | -32 | -13 | |||||||||||||||||||
Significant items included in corporate and other operating loss | ($297) | ($136) | ($188) | |||||||||||||||||||
[1] | Operating loss for the year ended December 31, 2014 included the following significant items:(In millions)First QuarterSecond QuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (10) (52) (85) (131) (278) Inventory write-downs related to closures (1) (3) (6) (7) (17) Start-up costs — (1) (1) (2) (4) $(11) $(54) $(92) $(140) $(297) | |||||||||||||||||||||
[2] | Operating loss for the year ended December 31, 2013 included the following significant items:(In millions)First QuarterSecondQuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (40) (12) (4) (33) (89) Inventory write-downs related to closures (4) (1) — (6) (11) Transaction costs (3) (2) — (1) (6) Start-up costs (15) (13) (3) (1) (32) $(62) $(26) $(7) $(41) $(136) | |||||||||||||||||||||
[3] | Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items:(In millions)2014 2013 2012 Net gain on disposition of assets$2 $2 $35 Closure costs, impairment and other related charges (278) (89) (185) Inventory write-downs related to closures (17) (11) (12) Severance costs — — (5) Transaction costs — (6) (8) Start-up costs (4) (32) (13) $(297) $(136) $(188) | |||||||||||||||||||||
[4] | For the years ended December 31, 2014, 2013 and 2012, market pulp sales excluded inter-segment sales of $19 million, $17 million and $36 million, respectively. |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales | $1,055 | $1,096 | $1,091 | $1,016 | $1,150 | $1,130 | $1,107 | $1,074 | $4,258 | $4,461 | $4,503 | |||
Market Pulp [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales | 974 | [1] | 1,053 | [1] | 814 | [1] | ||||||||
Market Pulp [Member] | Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Sales | $19 | $17 | $36 | |||||||||||
[1] | For the years ended December 31, 2014, 2013 and 2012, market pulp sales excluded inter-segment sales of $19 million, $17 million and $36 million, respectively. |
Segment_Information_Summary_of
Segment Information - Summary of Sales by Country (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $1,055 | $1,096 | $1,091 | $1,016 | $1,150 | $1,130 | $1,107 | $1,074 | $4,258 | $4,461 | $4,503 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,809 | 2,834 | 2,766 | ||||||||
Foreign countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,449 | 1,627 | 1,737 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 540 | 546 | 636 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 174 | 168 | 140 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 107 | 122 | 154 | ||||||||
Italy [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 51 | 85 | 105 | ||||||||
Other countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $577 | $706 | $702 |
Segment_Information_Summary_of1
Segment Information - Summary of Sales by Country (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customers | Country | Customers | |
Country | Customers | Country | |
Segment Reporting [Abstract] | |||
Number of customers accounting for a significant portion of sales | 0 | 0 | 0 |
Percentage (of consolidated sales) used to determine a significant portion of sales per individual customer | 10.00% | 10.00% | 10.00% |
Number of countries (in other countries group) exceeding threshold representing a significant percentage of sales | 0 | 0 | 0 |
Percentage (of consolidated sales) used to determine a significant portion of sales per individual country (in the other countries group) | 2.00% | 2.00% | 2.00% |
Segment_Information_Summary_of2
Segment Information - Summary of Long-Lived Assets, Excluding Deferred Tax Assets, by Country (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $2,168 | $2,557 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 798 | 967 |
Foreign countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,370 | 1,590 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,346 | 1,564 |
South Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $24 | $26 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Information - Additional Information (Details) (Guarantor Subsidiaries [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales | $1,055 | $1,096 | $1,091 | $1,016 | $1,150 | $1,130 | $1,107 | $1,074 | $4,258 | $4,461 | $4,503 | |||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 3,240 | 3,446 | 3,485 | |||||||||||||||||||
Depreciation and amortization | 243 | 243 | 233 | |||||||||||||||||||
Distribution costs | 518 | 521 | 514 | |||||||||||||||||||
Selling, general and administrative expenses | 155 | 166 | 149 | |||||||||||||||||||
Closure costs, impairment and other related charges | 131 | 85 | 52 | 10 | 33 | 4 | 12 | 40 | 278 | 89 | 185 | |||||||||||
Net gain on disposition of assets | 0 | 0 | -2 | 0 | 0 | 0 | -2 | 0 | -2 | -2 | -35 | |||||||||||
Operating (loss) income | -93 | [1] | -40 | [1] | -8 | [1] | -33 | [1] | 8 | [2] | 36 | [2] | 3 | [2] | -49 | [2] | -174 | [1],[3] | -2 | [2],[3] | -28 | [3] |
Interest expense | -47 | -51 | -66 | |||||||||||||||||||
Other (expense) income, net | -83 | -62 | 22 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
(Loss) income before income taxes | -304 | -115 | -72 | |||||||||||||||||||
Income tax benefit (provision) | 30 | -524 | 39 | |||||||||||||||||||
Net (loss) income including noncontrolling interests | -274 | -639 | -33 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | -3 | 0 | 34 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -109 | -116 | -2 | -50 | -3 | -588 | -43 | -5 | -277 | -639 | 1 | |||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -724 | -296 | -318 | |||||||||||||||||||
Parent [Member] | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales | 0 | 0 | 0 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | |||||||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||||||
Distribution costs | 0 | 0 | 0 | |||||||||||||||||||
Selling, general and administrative expenses | 17 | 18 | 18 | |||||||||||||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | |||||||||||||||||||
Net gain on disposition of assets | 0 | 0 | 0 | |||||||||||||||||||
Operating (loss) income | -17 | -18 | -18 | |||||||||||||||||||
Interest expense | -71 | -89 | -214 | |||||||||||||||||||
Other (expense) income, net | -1 | -60 | 2 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | -188 | -472 | 147 | |||||||||||||||||||
(Loss) income before income taxes | -277 | -639 | -83 | |||||||||||||||||||
Income tax benefit (provision) | 0 | 0 | 84 | |||||||||||||||||||
Net (loss) income including noncontrolling interests | -277 | -639 | 1 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -277 | -639 | 1 | |||||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -724 | -296 | -318 | |||||||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales | 3,475 | 3,674 | 3,139 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 3,225 | 3,356 | 2,774 | |||||||||||||||||||
Depreciation and amortization | 94 | 100 | 93 | |||||||||||||||||||
Distribution costs | 168 | 172 | 162 | |||||||||||||||||||
Selling, general and administrative expenses | 46 | 47 | 56 | |||||||||||||||||||
Closure costs, impairment and other related charges | 51 | 61 | 12 | |||||||||||||||||||
Net gain on disposition of assets | 0 | 0 | 0 | |||||||||||||||||||
Operating (loss) income | -109 | -62 | 42 | |||||||||||||||||||
Interest expense | -4 | -4 | -13 | |||||||||||||||||||
Other (expense) income, net | -20 | 66 | 171 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
(Loss) income before income taxes | -133 | 0 | 200 | |||||||||||||||||||
Income tax benefit (provision) | 2 | -564 | -69 | |||||||||||||||||||
Net (loss) income including noncontrolling interests | -131 | -564 | 131 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -131 | -564 | 131 | |||||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -250 | -346 | 69 | |||||||||||||||||||
Non-guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales | 2,807 | 2,956 | 2,894 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,036 | 2,247 | 2,228 | |||||||||||||||||||
Depreciation and amortization | 149 | 143 | 140 | |||||||||||||||||||
Distribution costs | 352 | 357 | 361 | |||||||||||||||||||
Selling, general and administrative expenses | 92 | 101 | 75 | |||||||||||||||||||
Closure costs, impairment and other related charges | 227 | 28 | 173 | |||||||||||||||||||
Net gain on disposition of assets | -2 | -2 | -35 | |||||||||||||||||||
Operating (loss) income | -47 | 82 | -48 | |||||||||||||||||||
Interest expense | -8 | -8 | -8 | |||||||||||||||||||
Other (expense) income, net | -26 | -18 | 18 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
(Loss) income before income taxes | -81 | 56 | -38 | |||||||||||||||||||
Income tax benefit (provision) | 27 | -21 | 23 | |||||||||||||||||||
Net (loss) income including noncontrolling interests | -54 | 35 | -15 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | -3 | 0 | 34 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -57 | 35 | 19 | |||||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -385 | 217 | -238 | |||||||||||||||||||
Consolidating Adjustments [Member] | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales | -2,024 | -2,169 | -1,530 | |||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | -2,021 | -2,157 | -1,517 | |||||||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||||||
Distribution costs | -2 | -8 | -9 | |||||||||||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||||||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | |||||||||||||||||||
Net gain on disposition of assets | 0 | 0 | 0 | |||||||||||||||||||
Operating (loss) income | -1 | -4 | -4 | |||||||||||||||||||
Interest expense | 36 | 50 | 169 | |||||||||||||||||||
Other (expense) income, net | -36 | -50 | -169 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | 188 | 472 | -147 | |||||||||||||||||||
(Loss) income before income taxes | 187 | 468 | -151 | |||||||||||||||||||
Income tax benefit (provision) | 1 | 61 | 1 | |||||||||||||||||||
Net (loss) income including noncontrolling interests | 188 | 529 | -150 | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | 188 | 529 | -150 | |||||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $635 | $129 | $169 | |||||||||||||||||||
[1] | Operating loss for the year ended December 31, 2014 included the following significant items:(In millions)First QuarterSecond QuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (10) (52) (85) (131) (278) Inventory write-downs related to closures (1) (3) (6) (7) (17) Start-up costs — (1) (1) (2) (4) $(11) $(54) $(92) $(140) $(297) | |||||||||||||||||||||
[2] | Operating loss for the year ended December 31, 2013 included the following significant items:(In millions)First QuarterSecondQuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (40) (12) (4) (33) (89) Inventory write-downs related to closures (4) (1) — (6) (11) Transaction costs (3) (2) — (1) (6) Start-up costs (15) (13) (3) (1) (32) $(62) $(26) $(7) $(41) $(136) | |||||||||||||||||||||
[3] | Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items:(In millions)2014 2013 2012 Net gain on disposition of assets$2 $2 $35 Closure costs, impairment and other related charges (278) (89) (185) Inventory write-downs related to closures (17) (11) (12) Severance costs — — (5) Transaction costs — (6) (8) Start-up costs (4) (32) (13) $(297) $(136) $(188) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $337 | $322 | $263 | $369 |
Accounts receivable, net | 539 | 634 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 542 | 529 | ||
Deferred income tax assets | 70 | 32 | ||
Note and interest receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Note receivable from subsidiary | 0 | |||
Other current assets | 46 | 45 | ||
Total current assets | 1,534 | 1,562 | ||
Fixed assets, net | 1,985 | 2,289 | ||
Amortizable intangible assets, net | 62 | 66 | ||
Deferred income tax assets | 1,219 | 1,266 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | |||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 121 | 202 | ||
Total assets | 4,921 | 5,385 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 518 | 533 | ||
Current portion of long-term debt | 1 | 2 | ||
Accounts payable to affiliates | 0 | 0 | ||
Deferred income tax liabilities | 0 | 32 | ||
Note and interest payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Note payable to parent | 0 | |||
Total current liabilities | 519 | 567 | ||
Long-term debt, net of current portion | 596 | 597 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliate | 0 | |||
Pension and other postretirement benefit obligations | 1,616 | 1,294 | ||
Deferred income tax liabilities | 3 | 26 | ||
Other long-term liabilities | 70 | 62 | ||
Total liabilities | 2,804 | 2,546 | ||
Total equity | 2,117 | 2,839 | 3,125 | 3,483 |
Total liabilities and equity | 4,921 | 5,385 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 5 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Note and interest receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Note receivable from subsidiary | 0 | 13 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 13 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | |||
Investments in consolidated subsidiaries and affiliates | 4,096 | 4,734 | ||
Other assets | 7 | 8 | ||
Total assets | 4,103 | 4,755 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 5 | 5 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 386 | 352 | ||
Deferred income tax liabilities | 0 | |||
Note and interest payable to subsidiaries | 287 | 14 | ||
Notes payable to affiliates | 0 | 0 | ||
Note payable to parent | 0 | |||
Total current liabilities | 678 | 371 | ||
Long-term debt, net of current portion | 595 | 595 | ||
Notes payable to subsidiaries | 388 | 627 | ||
Notes payable to affiliate | 0 | |||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | 1 | 0 | ||
Total liabilities | 1,662 | 1,593 | ||
Total equity | 2,441 | 3,162 | ||
Total liabilities and equity | 4,103 | 4,755 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 257 | 165 | 171 | 128 |
Accounts receivable, net | 383 | 433 | ||
Accounts receivable from affiliates | 384 | 335 | ||
Inventories, net | 251 | 211 | ||
Deferred income tax assets | 0 | 0 | ||
Note and interest receivable from parent | 287 | 14 | ||
Notes receivable from affiliates | 318 | 350 | ||
Note receivable from subsidiary | 0 | |||
Other current assets | 20 | 18 | ||
Total current assets | 1,900 | 1,526 | ||
Fixed assets, net | 742 | 847 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 0 | 28 | ||
Notes receivable from parent | 388 | 627 | ||
Notes receivable from affiliates | 170 | |||
Investments in consolidated subsidiaries and affiliates | 2,020 | 2,085 | ||
Other assets | 49 | 112 | ||
Total assets | 5,099 | 5,395 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 193 | 190 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 93 | 118 | ||
Deferred income tax liabilities | 32 | |||
Note and interest payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Note payable to parent | 0 | |||
Total current liabilities | 287 | 341 | ||
Long-term debt, net of current portion | 1 | 2 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliate | 0 | |||
Pension and other postretirement benefit obligations | 414 | 340 | ||
Deferred income tax liabilities | 0 | 1 | ||
Other long-term liabilities | 29 | 26 | ||
Total liabilities | 731 | 710 | ||
Total equity | 4,368 | 4,685 | ||
Total liabilities and equity | 5,099 | 5,395 | ||
Non-guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 80 | 157 | 87 | 241 |
Accounts receivable, net | 156 | 201 | ||
Accounts receivable from affiliates | 95 | 135 | ||
Inventories, net | 300 | 326 | ||
Deferred income tax assets | 70 | 32 | ||
Note and interest receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Note receivable from subsidiary | 0 | |||
Other current assets | 26 | 27 | ||
Total current assets | 727 | 878 | ||
Fixed assets, net | 1,243 | 1,442 | ||
Amortizable intangible assets, net | 62 | 66 | ||
Deferred income tax assets | 1,217 | 1,236 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | |||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 65 | 82 | ||
Total assets | 3,314 | 3,704 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 320 | 338 | ||
Current portion of long-term debt | 0 | 1 | ||
Accounts payable to affiliates | 0 | 0 | ||
Deferred income tax liabilities | 0 | |||
Note and interest payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 318 | 350 | ||
Note payable to parent | 13 | |||
Total current liabilities | 638 | 702 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliate | 170 | |||
Pension and other postretirement benefit obligations | 1,202 | 954 | ||
Deferred income tax liabilities | 3 | 25 | ||
Other long-term liabilities | 40 | 36 | ||
Total liabilities | 1,883 | 1,887 | ||
Total equity | 1,431 | 1,817 | ||
Total liabilities and equity | 3,314 | 3,704 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | -479 | -470 | ||
Inventories, net | -9 | -8 | ||
Deferred income tax assets | 0 | 0 | ||
Note and interest receivable from parent | -287 | -14 | ||
Notes receivable from affiliates | -318 | -350 | ||
Note receivable from subsidiary | -13 | |||
Other current assets | 0 | 0 | ||
Total current assets | -1,093 | -855 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 2 | 2 | ||
Notes receivable from parent | -388 | -627 | ||
Notes receivable from affiliates | -170 | |||
Investments in consolidated subsidiaries and affiliates | -6,116 | -6,819 | ||
Other assets | 0 | 0 | ||
Total assets | -7,595 | -8,469 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | -479 | -470 | ||
Deferred income tax liabilities | 0 | |||
Note and interest payable to subsidiaries | -287 | -14 | ||
Notes payable to affiliates | -318 | -350 | ||
Note payable to parent | -13 | |||
Total current liabilities | -1,084 | -847 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | -388 | -627 | ||
Notes payable to affiliate | -170 | |||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | -1,472 | -1,644 | ||
Total equity | -6,123 | -6,825 | ||
Total liabilities and equity | ($7,595) | ($8,469) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $186 | $206 | $266 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | -193 | -161 | -169 |
Monetization of timber notes | 22 | 0 | 0 |
Disposition of our interest in our Mersey operations, net of cash | 0 | 0 | 14 |
Disposition of other assets | 10 | 4 | 36 |
Acquisition of Fibrek Inc., net of cash acquired | 0 | 0 | -24 |
Proceeds from insurance settlements | 0 | 4 | 0 |
Decrease (increase) in restricted cash | 1 | 8 | 76 |
Decrease (increase) in deposit requirements for letters of credit, net | 1 | -2 | -12 |
Advances from (to) affiliates | 0 | ||
Other investing activities, net | -2 | -4 | 4 |
Net cash (used in) provided by investing activities | -161 | -151 | -75 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 594 | 0 |
Premium paid on extinguishment of debt | 0 | -84 | 0 |
Purchases of treasury stock | 0 | 0 | -67 |
Dividends to noncontrolling interests | -4 | -2 | -5 |
Acquisition of noncontrolling interest | 0 | 0 | -27 |
Payments of debt | -2 | -503 | -198 |
Payments of financing and credit facility fees | -1 | -9 | 0 |
Contribution of capital from noncontrolling interest | 0 | 8 | 0 |
Net cash provided by (used in) financing activities | -7 | 4 | -297 |
Effect of exchange rate changes on cash and cash equivalents | -3 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 15 | 59 | -106 |
Cash and cash equivalents: | |||
Beginning of year | 322 | 263 | 369 |
End of year | 337 | 322 | 263 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | -5 | 0 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Monetization of timber notes | 0 | ||
Disposition of our interest in our Mersey operations, net of cash | 0 | ||
Disposition of other assets | 0 | 0 | 0 |
Acquisition of Fibrek Inc., net of cash acquired | 0 | ||
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in restricted cash | 0 | 0 | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Advances from (to) affiliates | 0 | 0 | 72 |
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | 72 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 594 | 0 |
Premium paid on extinguishment of debt | 0 | -84 | 0 |
Purchases of treasury stock | 0 | 0 | -67 |
Dividends to noncontrolling interests | 0 | 0 | 0 |
Acquisition of noncontrolling interest | 0 | ||
Payments of debt | 0 | -501 | 0 |
Payments of financing and credit facility fees | 0 | -9 | 0 |
Contribution of capital from noncontrolling interest | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 | -67 |
Effect of exchange rate changes on cash and cash equivalents | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | -5 | 5 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 5 | 0 |
End of year | 0 | 0 | 5 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 144 | 41 | 249 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | -76 | -55 | -42 |
Monetization of timber notes | 22 | ||
Disposition of our interest in our Mersey operations, net of cash | 0 | ||
Disposition of other assets | 4 | 0 | 1 |
Acquisition of Fibrek Inc., net of cash acquired | 0 | ||
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in restricted cash | 0 | 0 | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Advances from (to) affiliates | -56 | ||
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | -50 | -55 | -97 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Dividends to noncontrolling interests | 0 | 0 | 0 |
Acquisition of noncontrolling interest | 0 | ||
Payments of debt | -1 | 0 | -109 |
Payments of financing and credit facility fees | -1 | 0 | |
Contribution of capital from noncontrolling interest | 0 | 8 | |
Net cash provided by (used in) financing activities | -2 | 8 | -109 |
Effect of exchange rate changes on cash and cash equivalents | 0 | ||
Net increase (decrease) in cash and cash equivalents | 92 | -6 | 43 |
Cash and cash equivalents: | |||
Beginning of year | 165 | 171 | 128 |
End of year | 257 | 165 | 171 |
Non-guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 42 | 170 | 17 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | -117 | -106 | -127 |
Monetization of timber notes | 0 | ||
Disposition of our interest in our Mersey operations, net of cash | 14 | ||
Disposition of other assets | 6 | 4 | 35 |
Acquisition of Fibrek Inc., net of cash acquired | -24 | ||
Proceeds from insurance settlements | 4 | ||
Decrease (increase) in restricted cash | 1 | 8 | 76 |
Decrease (increase) in deposit requirements for letters of credit, net | 1 | -2 | -12 |
Advances from (to) affiliates | -16 | ||
Other investing activities, net | -2 | -4 | 4 |
Net cash (used in) provided by investing activities | -111 | -96 | -50 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Dividends to noncontrolling interests | -4 | -2 | -5 |
Acquisition of noncontrolling interest | -27 | ||
Payments of debt | -1 | -2 | -89 |
Payments of financing and credit facility fees | 0 | 0 | |
Contribution of capital from noncontrolling interest | 0 | 0 | |
Net cash provided by (used in) financing activities | -5 | -4 | -121 |
Effect of exchange rate changes on cash and cash equivalents | -3 | ||
Net increase (decrease) in cash and cash equivalents | -77 | 70 | -154 |
Cash and cash equivalents: | |||
Beginning of year | 157 | 87 | 241 |
End of year | 80 | 157 | 87 |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Monetization of timber notes | 0 | ||
Disposition of our interest in our Mersey operations, net of cash | 0 | ||
Disposition of other assets | 0 | 0 | 0 |
Acquisition of Fibrek Inc., net of cash acquired | 0 | ||
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in restricted cash | 0 | 0 | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Advances from (to) affiliates | 0 | ||
Other investing activities, net | 0 | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Dividends to noncontrolling interests | 0 | 0 | 0 |
Acquisition of noncontrolling interest | 0 | ||
Payments of debt | 0 | 0 | 0 |
Payments of financing and credit facility fees | 0 | 0 | |
Contribution of capital from noncontrolling interest | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 0 | 0 |
End of year | $0 | $0 | $0 |
Quarterly_Information_Schedule
Quarterly Information - Schedule of Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Sales | $1,055 | $1,096 | $1,091 | $1,016 | $1,150 | $1,130 | $1,107 | $1,074 | $4,258 | $4,461 | $4,503 | |||||||||||
Operating (loss) income | -93 | [1] | -40 | [1] | -8 | [1] | -33 | [1] | 8 | [2] | 36 | [2] | 3 | [2] | -49 | [2] | -174 | [1],[3] | -2 | [2],[3] | -28 | [3] |
Net loss attributable to Resolute Forest Products Inc. | -109 | -116 | -2 | -50 | -3 | -588 | -43 | -5 | -277 | -639 | 1 | |||||||||||
Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders | ($1.15) | ($1.23) | ($0.02) | ($0.53) | ($0.03) | ($6.22) | ($0.45) | ($0.05) | ($2.93) | ($6.75) | $0.01 | |||||||||||
Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders | ($1.15) | ($1.23) | ($0.02) | ($0.53) | ($0.03) | ($6.22) | ($0.45) | ($0.05) | ($2.93) | ($6.75) | $0.01 | |||||||||||
Significant Items Included in Operating Loss [Abstract] | ||||||||||||||||||||||
Net gain on disposition of assets | 0 | 0 | 2 | 0 | 0 | 0 | 2 | 0 | 2 | 2 | 35 | |||||||||||
Closure costs, impairment and other related charges | -131 | -85 | -52 | -10 | -33 | -4 | -12 | -40 | -278 | -89 | -185 | |||||||||||
Inventory write-downs related to closures | -7 | -6 | -3 | -1 | -6 | 0 | -1 | -4 | -17 | -11 | -12 | |||||||||||
Transaction costs | -1 | 0 | -2 | -3 | -6 | |||||||||||||||||
Start-up costs | -2 | -1 | -1 | 0 | -1 | -3 | -13 | -15 | -4 | -32 | ||||||||||||
Significant items included in corporate and other operating loss | ($140) | ($92) | ($54) | ($11) | ($41) | ($7) | ($26) | ($62) | ($297) | ($136) | ||||||||||||
[1] | Operating loss for the year ended December 31, 2014 included the following significant items:(In millions)First QuarterSecond QuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (10) (52) (85) (131) (278) Inventory write-downs related to closures (1) (3) (6) (7) (17) Start-up costs — (1) (1) (2) (4) $(11) $(54) $(92) $(140) $(297) | |||||||||||||||||||||
[2] | Operating loss for the year ended December 31, 2013 included the following significant items:(In millions)First QuarterSecondQuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (40) (12) (4) (33) (89) Inventory write-downs related to closures (4) (1) — (6) (11) Transaction costs (3) (2) — (1) (6) Start-up costs (15) (13) (3) (1) (32) $(62) $(26) $(7) $(41) $(136) | |||||||||||||||||||||
[3] | Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items:(In millions)2014 2013 2012 Net gain on disposition of assets$2 $2 $35 Closure costs, impairment and other related charges (278) (89) (185) Inventory write-downs related to closures (17) (11) (12) Severance costs — — (5) Transaction costs — (6) (8) Start-up costs (4) (32) (13) $(297) $(136) $(188) |
Schedule_I_Condensed_Financial1
Schedule I - Condensed Financial Statements and Notes - Condensed Statements of Operations and Comprehensive Loss (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Expenses: | ||||||||||||||||||||||
Selling, general and administrative expenses | $155 | $166 | $149 | |||||||||||||||||||
Operating (loss) income | -93 | [1] | -40 | [1] | -8 | [1] | -33 | [1] | 8 | [2] | 36 | [2] | 3 | [2] | -49 | [2] | -174 | [1],[3] | -2 | [2],[3] | -28 | [3] |
Interest expense | -47 | -51 | -66 | |||||||||||||||||||
Other (expense) income, net | -83 | -62 | 22 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||||||||||||
(Loss) income before income taxes | -304 | -115 | -72 | |||||||||||||||||||
Income tax benefit (provision) | 30 | -524 | 39 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -109 | -116 | -2 | -50 | -3 | -588 | -43 | -5 | -277 | -639 | 1 | |||||||||||
Comprehensive loss attributable to Resolute Forest Products Inc. | -724 | -296 | -318 | |||||||||||||||||||
Parent [Member] | ||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||
Selling, general and administrative expenses | 17 | 18 | 18 | |||||||||||||||||||
Operating (loss) income | -17 | -18 | -18 | |||||||||||||||||||
Interest expense | -71 | -89 | -214 | |||||||||||||||||||
Other (expense) income, net | -1 | -60 | 2 | |||||||||||||||||||
Equity in (loss) income of subsidiaries | -188 | -472 | 147 | |||||||||||||||||||
(Loss) income before income taxes | -277 | -639 | -83 | |||||||||||||||||||
Income tax benefit (provision) | 0 | 0 | 84 | |||||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | -277 | -639 | 1 | |||||||||||||||||||
Equity in other comprehensive (loss) income of subsidiaries, net of tax | -447 | 343 | -319 | |||||||||||||||||||
Comprehensive loss attributable to Resolute Forest Products Inc. | ($724) | ($296) | ($318) | |||||||||||||||||||
[1] | Operating loss for the year ended December 31, 2014 included the following significant items:(In millions)First QuarterSecond QuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (10) (52) (85) (131) (278) Inventory write-downs related to closures (1) (3) (6) (7) (17) Start-up costs — (1) (1) (2) (4) $(11) $(54) $(92) $(140) $(297) | |||||||||||||||||||||
[2] | Operating loss for the year ended December 31, 2013 included the following significant items:(In millions)First QuarterSecondQuarterThird QuarterFourth QuarterYearNet gain on disposition of assets$— $2 $— $— $2 Closure costs, impairment and other related charges (40) (12) (4) (33) (89) Inventory write-downs related to closures (4) (1) — (6) (11) Transaction costs (3) (2) — (1) (6) Start-up costs (15) (13) (3) (1) (32) $(62) $(26) $(7) $(41) $(136) | |||||||||||||||||||||
[3] | Corporate and other operating loss for the years ended December 31, 2014, 2013 and 2012 included the following significant items:(In millions)2014 2013 2012 Net gain on disposition of assets$2 $2 $35 Closure costs, impairment and other related charges (278) (89) (185) Inventory write-downs related to closures (17) (11) (12) Severance costs — — (5) Transaction costs — (6) (8) Start-up costs (4) (32) (13) $(297) $(136) $(188) |
Schedule_I_Condensed_Financial2
Schedule I - Condensed Financial Statements and Notes - Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $337 | $322 | $263 | $369 |
Note receivable from subsidiary | 0 | |||
Total current assets | 1,534 | 1,562 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Other assets | 121 | 202 | ||
Total assets | 4,921 | 5,385 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 518 | 533 | ||
Accounts payable to subsidiaries | 0 | 0 | ||
Note and interest payable to subsidiaries | 0 | 0 | ||
Total current liabilities | 519 | 567 | ||
Long-term debt | 596 | 597 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Other long-term liabilities | 70 | 62 | ||
Total liabilities | 2,804 | 2,546 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 3,754 | 3,751 | ||
Deficit | -869 | -592 | ||
Accumulated other comprehensive loss | -718 | -271 | ||
Treasury stock | -61 | -61 | ||
Total Resolute Forest Products Inc. equity | 2,106 | 2,827 | ||
Total liabilities and equity | 4,921 | 5,385 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 5 | 0 |
Note receivable from subsidiary | 0 | 13 | ||
Total current assets | 0 | 13 | ||
Investments in consolidated subsidiaries | 4,096 | 4,734 | ||
Other assets | 7 | 8 | ||
Total assets | 4,103 | 4,755 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 5 | 5 | ||
Accounts payable to subsidiaries | 386 | 352 | ||
Note and interest payable to subsidiaries | 287 | 14 | ||
Total current liabilities | 678 | 371 | ||
Long-term debt | 595 | 595 | ||
Notes payable to subsidiaries | 388 | 627 | ||
Other long-term liabilities | 1 | 0 | ||
Total liabilities | 1,662 | 1,593 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 4,089 | 4,086 | ||
Deficit | -869 | -592 | ||
Accumulated other comprehensive loss | -718 | -271 | ||
Treasury stock | -61 | -61 | ||
Total Resolute Forest Products Inc. equity | 2,441 | 3,162 | 3,437 | 3,758 |
Total liabilities and equity | $4,103 | $4,755 |
Schedule_I_Condensed_Financial3
Schedule I - Condensed Financial Statements and Notes - Condensed Statements of Changes in Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | $2,827 | $2,827 | ||||||||||
Share-based compensation costs for equity-classified awards | 3 | 7 | 5 | |||||||||
Net income (loss) | -109 | -116 | -2 | -50 | -3 | -588 | -43 | -5 | -277 | -639 | 1 | |
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 43 | |||||||||||
Disposition of investment | 25 | |||||||||||
Purchases of treasury stock (5.6 shares) | -67 | |||||||||||
Distribution of common stock from the share reserve | 0 | 0 | ||||||||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | 0 | ||||||||||
Acquisition of noncontrolling interest | 0 | |||||||||||
Other comprehensive income (loss), net of tax | -447 | 343 | -327 | |||||||||
Ending Balance | 2,106 | 2,827 | 2,106 | 2,827 | ||||||||
Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 3,162 | 3,437 | 3,162 | 3,437 | 3,758 | |||||||
Share-based compensation costs for equity-classified awards | 3 | 7 | 5 | |||||||||
Net income (loss) | -277 | -639 | 1 | |||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 43 | |||||||||||
Disposition of investment | 16 | |||||||||||
Purchases of treasury stock (5.6 shares) | -67 | |||||||||||
Distribution of common stock from the share reserve | 0 | 0 | ||||||||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | 0 | ||||||||||
Acquisition of noncontrolling interest | 14 | |||||||||||
Other comprehensive income (loss), net of tax | -447 | 343 | -319 | |||||||||
Ending Balance | 2,441 | 3,162 | 2,441 | 3,162 | 3,437 | |||||||
Common Stock [Member] | Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 0 | |||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Additional Paid-in Capital [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Share-based compensation costs for equity-classified awards | 3 | 7 | 5 | |||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 38 | |||||||||||
Acquisition of noncontrolling interest | 14 | |||||||||||
Additional Paid-in Capital [Member] | Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 4,086 | 4,065 | 4,086 | 4,065 | 4,022 | |||||||
Share-based compensation costs for equity-classified awards | 3 | 7 | 5 | |||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 38 | |||||||||||
Acquisition of noncontrolling interest | 14 | |||||||||||
Ending Balance | 4,089 | 4,086 | 4,089 | 4,086 | 4,065 | |||||||
Retained Earnings (Deficit) [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | -1 | |||||||||||
Retained Earnings (Deficit) [Member] | Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 47 | |||||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | -1 | |||||||||||
Ending Balance | -869 | -592 | -869 | -592 | 47 | |||||||
Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Disposition of investment | 16 | |||||||||||
Other comprehensive income (loss), net of tax | -447 | 343 | -319 | |||||||||
Accumulated Other Comprehensive Loss [Member] | Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | -271 | -614 | -271 | -614 | -311 | |||||||
Disposition of investment | 16 | |||||||||||
Other comprehensive income (loss), net of tax | -447 | 343 | -319 | |||||||||
Ending Balance | -718 | -271 | -718 | -271 | -614 | |||||||
Treasury Stock [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 6 | |||||||||||
Purchases of treasury stock (5.6 shares) | -67 | |||||||||||
Treasury Stock [Member] | Parent [Member] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Beginning Balance | 0 | |||||||||||
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) | 6 | |||||||||||
Purchases of treasury stock (5.6 shares) | -67 | |||||||||||
Ending Balance | ($61) | ($61) | ($61) | ($61) | ($61) |
Schedule_I_Condensed_Financial4
Schedule I - Condensed Financial Statements and Notes - Condensed Statements of Changes in Equity (Details) (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | |||
Stock repurchase program, shares, repurchased | 5,600,000 | ||
Distribution of common stock from share reserve | 300,000 | 100,000 | |
Stock incentive awards exercised or vested, net of forfeitures for employee withholding taxes | 300,000 | 100,000 | |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stock repurchase program, shares, repurchased | 5,600,000 | ||
Distribution of common stock from share reserve | 300,000 | 100,000 | |
Stock incentive awards exercised or vested, net of forfeitures for employee withholding taxes | 300,000 | 100,000 | |
Common Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Acquisition of Fibrek Inc., shares issued | 2,800,000 | ||
Common Stock [Member] | Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Acquisition of Fibrek Inc., shares issued | 2,800,000 | ||
Treasury Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Acquisition of Fibrek Inc., shares issued | 500,000 | ||
Treasury Stock [Member] | Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Acquisition of Fibrek Inc., shares issued | 500,000 |
Schedule_I_Condensed_Financial5
Schedule I - Condensed Financial Statements and Notes - Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $186 | $206 | $266 |
Cash flows from investing activities: | |||
Advances from affiliates | 0 | ||
Net cash (used in) provided by investing activities | -161 | -151 | -75 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 594 | 0 |
Premium paid on extinguishment of debt | 0 | -84 | 0 |
Purchases of treasury stock | 0 | 0 | -67 |
Payments of debt | -2 | -503 | -198 |
Payments of financing and credit facility fees | -1 | -9 | 0 |
Net cash provided by (used in) financing activities | -7 | 4 | -297 |
Net increase (decrease) in cash and cash equivalents | 15 | 59 | -106 |
Cash and cash equivalents: | |||
Beginning of year | 322 | 263 | 369 |
End of year | 337 | 322 | 263 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | -5 | 0 |
Cash flows from investing activities: | |||
Advances from affiliates | 0 | 0 | 72 |
Net cash (used in) provided by investing activities | 0 | 0 | 72 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 594 | 0 |
Premium paid on extinguishment of debt | 0 | -84 | 0 |
Purchases of treasury stock | 0 | 0 | -67 |
Payments of debt | 0 | -501 | 0 |
Payments of financing and credit facility fees | 0 | -9 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | -67 |
Net increase (decrease) in cash and cash equivalents | 0 | -5 | 5 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 5 | 0 |
End of year | $0 | $0 | $5 |
Schedule_I_Condensed_Financial6
Schedule I - Condensed Financial Statements and Notes - Transactions with Related Parties - Notes Payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 29, 2013 | Mar. 28, 2013 | Mar. 27, 2013 |
In Millions, unless otherwise specified | ||||||
Related Party Transaction [Line Items] | ||||||
Current portion of notes payable to subsidiaries including accrued interest | $0 | $0 | ||||
Notes payable to subsidiaries | 0 | 0 | ||||
Parent [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Notes payable to subsidiaries including current portion and accrued interest | 675 | 641 | ||||
Current portion of notes payable to subsidiaries including accrued interest | -287 | -14 | ||||
Notes payable to subsidiaries | 388 | 627 | ||||
RFP US [Member] | Parent [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Notes payable to subsidiaries including current portion and accrued interest | 388 | 364 | ||||
Current portion of notes payable to subsidiaries including accrued interest | 0 | -11 | ||||
Notes payable to subsidiaries | 353 | 650 | ||||
Donohue Corp. [Member] | Parent [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Notes payable to subsidiaries including current portion and accrued interest | 287 | 277 | ||||
Current portion of notes payable to subsidiaries including accrued interest | -287 | -3 | ||||
Notes payable to subsidiaries | $270 | $139 |
Schedule_I_Condensed_Financial7
Schedule I - Condensed Financial Statements and Notes - Transactions with Related Parties - Interest Expense on Notes Payable (Details) (Parent [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Interest expense | $34 | $48 | $159 |
RFP US [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense | 24 | 32 | 127 |
Donohue Corp. [Member] | |||
Related Party Transaction [Line Items] | |||
Interest expense | $10 | $16 | $32 |
Schedule_I_Condensed_Financial8
Schedule I - Condensed Financial Statements and Notes - Transactions with Related Parties - Additional Information (Details) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 28, 2013 | Mar. 27, 2013 | Jun. 30, 2013 | Jun. 29, 2013 | Dec. 09, 2010 |
Related Party Transaction [Line Items] | ||||||||
Note receivable from subsidiary | $0 | |||||||
Notes payable to subsidiaries | 0 | 0 | ||||||
Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Note receivable from subsidiary | 0 | 13 | ||||||
Notes payable to subsidiaries | 388 | 627 | ||||||
Maximum potential amount of future payment under guarantees of related parties | 27 | 35 | ||||||
Parent [Member] | Minimum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Terms of guarantees of related parties (days) | 10 | |||||||
Parent [Member] | Maximum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Terms of guarantees of related parties (days) | 90 | |||||||
Donohue Corp. [Member] | Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes payable to subsidiaries | 270 | 139 | ||||||
Resolute Fp Us Inc [Member] | Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Notes payable to subsidiaries | 353 | 650 | ||||||
RFP Canada Inc. [Member] | Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Note receivable from subsidiary | 13 | 250 | ||||||
Interest income from note receivable from subsidiary | 1 | $1 | $1 | |||||
Intercompany Debt [Member] | Donohue Corp. [Member] | Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate of notes | 3.57% | 13.75% | ||||||
Intercompany Debt [Member] | Resolute Fp Us Inc [Member] | Parent [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rate of notes | 6.50% | 12.50% |