Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | |
Entity Central Index Key | 1393066 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | RFP | |
Entity Common Stock, Shares Outstanding | 94,801,259 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Sales | $920 | $1,016 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 718 | 821 |
Depreciation and amortization | 57 | 62 |
Distribution costs | 113 | 120 |
Selling, general and administrative expenses | 41 | 36 |
Closure costs, impairment and other related charges | 6 | 10 |
Operating income (loss) | -15 | -33 |
Interest expense | -12 | -12 |
Other income (expense), net | 5 | -13 |
Income (loss) before income taxes | -22 | -58 |
Income tax (provision) benefit | -10 | 8 |
Net income (loss) including noncontrolling interests | -32 | -50 |
Net income attributable to noncontrolling interests | -1 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | ($33) | ($50) |
Net loss per share attributable to Resolute Forest Products Inc. common shareholders: | ||
Basic (in dollars per share) | ($0.35) | ($0.53) |
Diluted (in dollars per share) | ($0.35) | ($0.53) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||
Basic | 94.9 | 94.6 |
Diluted | 94.9 | 94.6 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss including noncontrolling interests | ($32) | ($50) |
Other comprehensive (loss) income: | ||
Change in unamortized prior service credits, net of tax of $0 and $17 in 2015 and 2014, respectively | -5 | 24 |
Change in unamortized actuarial losses, net of tax of $5 and $1 in 2015 and 2014, respectively | 16 | 1 |
Foreign currency translation | -1 | -1 |
Other comprehensive income (loss), net of tax | 10 | 24 |
Comprehensive loss including noncontrolling interests | -22 | -26 |
Comprehensive income attributable to noncontrolling interests | -1 | 0 |
Comprehensive loss attributable to Resolute Forest Products Inc. | ($23) | ($26) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Change in unamortized prior service credits, including portion attributable to noncontrolling interests, tax portion | $0 | $17 |
Change in unamortized actuarial losses including portion attributable to noncontrolling interests, tax portion | $5 | ($1) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $324 | $337 |
Accounts receivable, net: | ||
Trade | 422 | 449 |
Other | 80 | 90 |
Inventories, net | 563 | 542 |
Deferred income tax assets | 64 | 70 |
Other current assets | 51 | 46 |
Total current assets | 1,504 | 1,534 |
Fixed assets, net | 1,956 | 1,985 |
Amortizable intangible assets, net | 62 | 62 |
Deferred income tax assets | 1,099 | 1,219 |
Other assets | 125 | 121 |
Total assets | 4,746 | 4,921 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 487 | 518 |
Current portion of long-term debt | 1 | 1 |
Total current liabilities | 488 | 519 |
Long-term debt, net of current portion | 596 | 596 |
Pension and other postretirement benefit obligations | 1,491 | 1,616 |
Deferred income tax liabilities | 3 | 3 |
Other liabilities | 68 | 70 |
Total liabilities | 2,646 | 2,804 |
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 March 31, 2015 and December 31, 2014 | 0 | 0 |
Additional paid-in capital | 3,759 | 3,754 |
Deficit | -902 | -869 |
Accumulated other comprehensive loss | -708 | -718 |
Treasury stock at cost, 22.5 shares as of March 31, 2015 and December 31, 2014 | -61 | -61 |
Total Resolute Forest Products Inc. shareholders’ equity | 2,088 | 2,106 |
Noncontrolling interests | 12 | 11 |
Total equity | 2,100 | 2,117 |
Total liabilities and equity | $4,746 | $4,921 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, par value (per share) | $0.00 | $0.00 |
Common stock, shares issued | 117.3 | 117.3 |
Common stock, shares outstanding | 94.8 | 94.8 |
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 Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2013 | $2,839 | $0 | $3,751 | ($592) | ($271) | ($61) | $12 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Net income (loss) | -50 | -50 | |||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes, value | 0 | ||||||
Other comprehensive income (loss), net of tax | 24 | 24 | |||||
Ending Balance at Mar. 31, 2014 | 2,813 | 0 | 3,751 | -642 | -247 | -61 | 12 |
Beginning Balance at Dec. 31, 2014 | 2,117 | 0 | 3,754 | -869 | -718 | -61 | 11 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 5 | 5 | |||||
Net income (loss) | -32 | -33 | 1 | ||||
Other comprehensive income (loss), net of tax | 10 | 10 | |||||
Ending Balance at Mar. 31, 2015 | $2,100 | $0 | $3,759 | ($902) | ($708) | ($61) | $12 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes, shares | 100,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss including noncontrolling interests | ($32) | ($50) |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by (used in) operating activities: | ||
Share-based compensation | 5 | 0 |
Depreciation and amortization | 57 | 62 |
Closure costs, impairment and other related charges | 2 | 4 |
Inventory write-downs related to closures | 1 | 1 |
Deferred income taxes | 14 | -8 |
Net pension contributions and other postretirement benefit payments | -9 | -34 |
Loss on translation of foreign currency denominated deferred income taxes | 107 | 48 |
Gain on translation of foreign currency denominated pension and other postretirement benefit obligations | -101 | -37 |
Changes in working capital: | ||
Accounts receivable | 38 | 29 |
Inventories | -22 | -64 |
Other current assets | -4 | -5 |
Accounts payable and accrued liabilities | -26 | 8 |
Other, net | -1 | 5 |
Net cash provided by (used in) operating activities | 29 | -41 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | -40 | -36 |
Decrease in restricted cash | 0 | 1 |
Decrease in deposit requirements for letters of credit, net | 0 | 1 |
Net cash provided by (used in) investing activities | -40 | -34 |
Cash flows from financing activities: | ||
Payments of debt | 0 | -1 |
Net cash provided by (used in) financing activities | 0 | -1 |
Effect of exchange rate changes on cash and cash equivalents | -2 | -6 |
Net increase (decrease) in cash and cash equivalents | -13 | -82 |
Cash and cash equivalents: | ||
Beginning of period | 337 | 322 |
End of period | $324 | $240 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
Financial statements | |
Our interim consolidated financial statements are unaudited and have been prepared in accordance with the requirements of the United States Securities and Exchange Commission (the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by United States generally accepted accounting principles may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim consolidated financial statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 2, 2015. | |
New accounting pronouncements | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis,” which affects the variable interest entity and voting entity consolidation models for all companies. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015. We are evaluating the impact of this standard on our result of operations or financial position. | |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015. The adoption of this accounting guidance will not materially impact our financial position. |
Closure_Costs_Impairment_and_O
Closure Costs, Impairment and Other Related Charges | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Closure Costs, Impairment and Other Related Charges | Note 2. Closure Costs, Impairment and Other Related Charges | ||||||||||||||||
Closure costs, impairment and other related charges for the three months ended March 31, 2015 were comprised of the following: | |||||||||||||||||
(Unaudited, in millions) | Accelerated | Severance | Total | ||||||||||||||
Depreciation | and Other | ||||||||||||||||
Costs | |||||||||||||||||
Permanent closures: | |||||||||||||||||
Paper mill in Iroquois Falls, Ontario | $ | — | $ | 4 | $ | 4 | |||||||||||
Paper machine in Clermont, Québec | 2 | — | 2 | ||||||||||||||
Total | $ | 2 | $ | 4 | $ | 6 | |||||||||||
Closure costs, impairment and other related charges for the three months ended March 31, 2014 were comprised of the following: | |||||||||||||||||
(Unaudited, in millions) | Impairment of Assets | Accelerated | Severance | Total | |||||||||||||
Depreciation | and Other | ||||||||||||||||
Costs | |||||||||||||||||
Permanent closures: | |||||||||||||||||
Pulp and paper mill in Fort Frances, Ontario | $ | — | $ | — | $ | 6 | $ | 6 | |||||||||
Paper machine in Iroquois Falls | — | 3 | — | 3 | |||||||||||||
Other | 1 | — | — | 1 | |||||||||||||
Total | $ | 1 | $ | 3 | $ | 6 | $ | 10 | |||||||||
Other_Income_Expense_Net
Other Income (Expense), Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Other (Expense) Income, Net | Note 3. Other Income (Expense), Net | ||||||||
Other income (expense), net for the three months ended March 31, 2015 and 2014 was comprised of the following: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Foreign exchange gain (loss) | $ | 2 | $ | (14 | ) | ||||
Miscellaneous income | 3 | 1 | |||||||
$ | 5 | $ | (13 | ) | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 4. Accumulated Other Comprehensive Loss | ||||||||||||||||
The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2015 was as follows: | |||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign | Total | |||||||||||||
Currency | |||||||||||||||||
Translation | |||||||||||||||||
Balance as of December 31, 2014 | $ | 94 | $ | (812 | ) | $ | — | $ | (718 | ) | |||||||
Other comprehensive loss before reclassifications | — | — | (1 | ) | (1 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss (1) | (5 | ) | 16 | — | 11 | ||||||||||||
Net current period other comprehensive (loss) income | (5 | ) | 16 | (1 | ) | 10 | |||||||||||
Balance as of March 31, 2015 | $ | 89 | $ | (796 | ) | $ | (1 | ) | $ | (708 | ) | ||||||
(1) | See the table below for details about these reclassifications. | ||||||||||||||||
The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 were comprised of the following: | |||||||||||||||||
(Unaudited, 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 | $ | (5 | ) | Cost of sales, excluding depreciation, amortization and distribution costs (1) | |||||||||||||
— | Income tax (provision) benefit | ||||||||||||||||
$ | (5 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 21 | Cost of sales, excluding depreciation, amortization and distribution costs (1) | ||||||||||||||
(5 | ) | Income tax (provision) benefit | |||||||||||||||
$ | 16 | Net of tax | |||||||||||||||
Total Reclassifications | $ | 11 | Net of tax | ||||||||||||||
(1) | These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEB”) plans summarized in Note 8, “Employee Benefit Plans.” |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Net Income (Loss) Per Share | Note 5. Net Loss Per Share | ||||||
The weighted-average number of stock options and equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) outstanding for the three months ended March 31, 2015 and 2014 was as follows: | |||||||
(Unaudited, in millions) | 2015 | 2014 | |||||
Stock options | 1.6 | 1.8 | |||||
Stock unit awards | 1.2 | 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 for all periods presented. |
Inventories_Net
Inventories, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories, Net | Note 6. Inventories, Net | ||||||||
Inventories, net as of March 31, 2015 and December 31, 2014 were comprised of the following: | |||||||||
(Unaudited, in millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials and work in process | $ | 175 | $ | 160 | |||||
Finished goods | 194 | 192 | |||||||
Mill stores and other supplies | 194 | 190 | |||||||
$ | 563 | $ | 542 | ||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Note 7. Long-Term Debt | ||||||||
Overview | |||||||||
Long-term debt, including current portion, as of March 31, 2015 and December 31, 2014 was comprised of the following: | |||||||||
(Unaudited, in millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | 600 | |||||
Unamortized discount | (5 | ) | (5 | ) | |||||
Total senior notes due 2023 | 595 | 595 | |||||||
Capital lease obligation | 2 | 2 | |||||||
Total debt | 597 | 597 | |||||||
Less: Current portion of long-term debt | (1 | ) | (1 | ) | |||||
Long-term debt, net of current portion | $ | 596 | $ | 596 | |||||
5.875% senior notes due 2023 | |||||||||
We issued $600 million in aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) on May 8, 2013. Interest on the notes is payable semi-annually on May 15 and November 15, until their maturity date of May 15, 2023. The fair value of the 2023 Notes was $577 million and $571 million as of March 31, 2015 and December 31, 2014, respectively, and was determined by reference to over-the-counter prices (Level 1). | |||||||||
ABL Credit Facility | |||||||||
Our senior secured asset-based revolving credit facility (the “ABL Credit Facility”), as amended, matures on October 28, 2016 and provides for an aggregate lender commitment of up to $665 million at any time outstanding, subject to borrowing base availability. As of March 31, 2015, we had no borrowings and $36 million of letters of credit outstanding under the ABL Credit Facility. As of March 31, 2015, we had $464 million of availability under the ABL Credit Facility, which was comprised of $281 million for the U.S. borrowers (Resolute Forest Products Inc., Resolute FP US Inc. and AbiBow Recycling LLC) and $183 million for the Canadian borrower (Resolute FP Canada Inc.). | |||||||||
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. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Employee Benefit Plans | Note 8. Employee Benefit Plans | ||||||||
Pension and OPEB plans | |||||||||
The components of net periodic benefit cost relating to our pension and OPEB plans for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Pension Plans: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Service cost | $ | 6 | $ | 7 | |||||
Interest cost | 58 | 69 | |||||||
Expected return on plan assets | (67 | ) | (75 | ) | |||||
Amortization of actuarial losses | 22 | 1 | |||||||
Amortization of prior service credits | (1 | ) | — | ||||||
$ | 18 | $ | 2 | ||||||
OPEB Plans: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Service cost | $ | — | $ | 1 | |||||
Interest cost | 2 | 3 | |||||||
Amortization of actuarial gains | (1 | ) | (1 | ) | |||||
Amortization of prior service credits | (4 | ) | (2 | ) | |||||
$ | (3 | ) | $ | 1 | |||||
Defined contribution plans | |||||||||
Our expense for the defined contribution plans totaled $6 million for both the three months ended March 31, 2015 and 2014. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Note 9. Income Taxes | ||||||||
The income tax (provision) benefit 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 three months ended March 31, 2015 and 2014 as a result of the following: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Loss before income taxes | $ | (22 | ) | $ | (58 | ) | |||
Income tax (provision) benefit: | |||||||||
Expected income tax benefit | 8 | 20 | |||||||
Changes resulting from: | |||||||||
Valuation allowance (1) | (19 | ) | (8 | ) | |||||
Foreign exchange | (5 | ) | (6 | ) | |||||
State income taxes and foreign tax rate differences | 3 | 2 | |||||||
Other, net | 3 | — | |||||||
$ | (10 | ) | $ | 8 | |||||
(1) | During the three months ended March 31, 2015 and 2014, we recorded a net increase in our valuation allowance of $19 million and $8 million, respectively, primarily because we no longer recognize tax benefits related to our U.S. operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. 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 March 31, 2015, 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 Inc. (“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 ($11 million, based on the exchange rate in effect on March 31, 2015) 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 jurisdiction in the creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada), from which our predecessor entity and all but one of its affiliates emerged in 2010, 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 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,” to our consolidated financial statements for the year ended December 31, 2014 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 plan of reorganization and the terms of our emergence from the 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 ($120 million based on the exchange rate in effect on March 31, 2015), 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 (commonly known as Superfund) or the Resource Conservation and Recovery Act corrective action authority. We believe we will not be liable for any significant amounts at any of these sites. | |
We have recorded $14 million and $18 million of environmental liabilities as of March 31, 2015 and December 31, 2014, respectively. 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 of asset retirement obligations as of both March 31, 2015 and December 31, 2014, 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 ($18 million based on the exchange rate in effect on March 31, 2015) 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. Several extensions to implement an alternative remedy have been granted to us by the MNRF, with the latest remedy date being July 31, 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 March 31, 2015. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Information | Note 11. 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, inventory write-downs related to closures, start-up costs, net gain on disposition of assets, 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 certain discretionary charges and credits, are allocated to our segments. | |||||||||||||||||||||||||
Information about certain segment data for the three months ended March 31, 2015 and 2014 was as follows: | |||||||||||||||||||||||||
(Unaudited, in millions) | Newsprint | Specialty | Market | Wood | Corporate | Consolidated | |||||||||||||||||||
Papers | Pulp (1) | Products | and Other | Total | |||||||||||||||||||||
Sales | |||||||||||||||||||||||||
First three months 2015 | $ | 291 | $ | 272 | $ | 218 | $ | 139 | $ | — | $ | 920 | |||||||||||||
First three months 2014 | 346 | 301 | 234 | 135 | — | 1,016 | |||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||
First three months 2015 | $ | 16 | $ | 17 | $ | 14 | $ | 8 | $ | 2 | $ | 57 | |||||||||||||
First three months 2014 | 18 | 22 | 13 | 8 | 1 | 62 | |||||||||||||||||||
Operating (loss) income | |||||||||||||||||||||||||
First three months 2015 | $ | (6 | ) | $ | 1 | $ | 10 | $ | 5 | $ | (25 | ) | $ | (15 | ) | ||||||||||
First three months 2014 | (15 | ) | (24 | ) | 8 | 12 | (14 | ) | (33 | ) | |||||||||||||||
(1) | Market pulp sales excluded inter-segment sales of $3 million for both the three months ended March 31, 2015 and 2014. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||
Condensed Consolidating Financial Information | Note 12. 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 of 1933 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) Income for the three months ended March 31, 2015 and 2014, the Balance Sheets as of March 31, 2015 and December 31, 2014, and the Statements of Cash Flows for the three months ended March 31, 2015 and 2014 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) INCOME | |||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 751 | $ | 581 | $ | (412 | ) | $ | 920 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 704 | 424 | (410 | ) | 718 | |||||||||||||||
Depreciation and amortization | — | 23 | 34 | — | 57 | ||||||||||||||||
Distribution costs | — | 41 | 73 | (1 | ) | 113 | |||||||||||||||
Selling, general and administrative expenses | 3 | 12 | 26 | — | 41 | ||||||||||||||||
Closure costs, impairment and other related charges | — | — | 6 | — | 6 | ||||||||||||||||
Operating (loss) income | (3 | ) | (29 | ) | 18 | (1 | ) | (15 | ) | ||||||||||||
Interest expense | (18 | ) | (1 | ) | (2 | ) | 9 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 12 | 3 | (9 | ) | 5 | ||||||||||||||
Parent’s equity in loss of subsidiaries | (11 | ) | — | — | 11 | — | |||||||||||||||
(Loss) income before income taxes | (33 | ) | (18 | ) | 19 | 10 | (22 | ) | |||||||||||||
Income tax benefit (provision) | — | 4 | (14 | ) | — | (10 | ) | ||||||||||||||
Net (loss) income including noncontrolling interests | (33 | ) | (14 | ) | 5 | 10 | (32 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (33 | ) | $ | (14 | ) | $ | 4 | $ | 10 | $ | (33 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (23 | ) | $ | (14 | ) | $ | 14 | $ | — | $ | (23 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 845 | $ | 701 | $ | (530 | ) | $ | 1,016 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 820 | 532 | (531 | ) | 821 | |||||||||||||||
Depreciation and amortization | — | 25 | 37 | — | 62 | ||||||||||||||||
Distribution costs | — | 37 | 84 | (1 | ) | 120 | |||||||||||||||
Selling, general and administrative expenses | 4 | 9 | 23 | — | 36 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 2 | 8 | — | 10 | ||||||||||||||||
Operating (loss) income | (4 | ) | (48 | ) | 17 | 2 | (33 | ) | |||||||||||||
Interest expense | (17 | ) | (1 | ) | (3 | ) | 9 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 11 | (14 | ) | (9 | ) | (13 | ) | ||||||||||||
Parent’s equity in loss of subsidiaries | (28 | ) | — | — | 28 | — | |||||||||||||||
Loss before income taxes | (50 | ) | (38 | ) | — | 30 | (58 | ) | |||||||||||||
Income tax benefit (provision) | — | 15 | (6 | ) | (1 | ) | 8 | ||||||||||||||
Net loss including noncontrolling interests | (50 | ) | (23 | ) | (6 | ) | 29 | (50 | ) | ||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | $ | (50 | ) | $ | (23 | ) | $ | (6 | ) | $ | 29 | $ | (50 | ) | |||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (26 | ) | $ | 1 | $ | (6 | ) | $ | 5 | $ | (26 | ) | ||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 277 | $ | 47 | $ | — | $ | 324 | |||||||||||
Accounts receivable, net | — | 353 | 149 | — | 502 | ||||||||||||||||
Accounts receivable from affiliates | 1 | 386 | 107 | (494 | ) | — | |||||||||||||||
Inventories, net | — | 240 | 333 | (10 | ) | 563 | |||||||||||||||
Deferred income tax assets | — | — | 64 | — | 64 | ||||||||||||||||
Interest receivable from parent | — | 6 | — | (6 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 321 | — | (321 | ) | — | |||||||||||||||
Other current assets | — | 22 | 29 | — | 51 | ||||||||||||||||
Total current assets | 1 | 1,605 | 729 | (831 | ) | 1,504 | |||||||||||||||
Fixed assets, net | — | 726 | 1,230 | — | 1,956 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 62 | — | 62 | ||||||||||||||||
Deferred income tax assets | — | — | 1,097 | 2 | 1,099 | ||||||||||||||||
Notes receivable from parent | — | 678 | — | (678 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,095 | 2,028 | — | (6,123 | ) | — | |||||||||||||||
Other assets | 7 | 56 | 62 | — | 125 | ||||||||||||||||
Total assets | $ | 4,103 | $ | 5,093 | $ | 3,180 | $ | (7,630 | ) | $ | 4,746 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 14 | $ | 184 | $ | 289 | $ | — | $ | 487 | |||||||||||
Current portion of long-term debt | — | 1 | — | — | 1 | ||||||||||||||||
Accounts payable to affiliates | 386 | 107 | 1 | (494 | ) | — | |||||||||||||||
Interest payable to subsidiary | 6 | — | — | (6 | ) | — | |||||||||||||||
Notes payable to affiliate | — | — | 321 | (321 | ) | — | |||||||||||||||
Total current liabilities | 406 | 292 | 611 | (821 | ) | 488 | |||||||||||||||
Long-term debt, net of current portion | 595 | 1 | — | — | 596 | ||||||||||||||||
Notes payable to subsidiaries | 678 | — | — | (678 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 416 | 1,075 | — | 1,491 | ||||||||||||||||
Deferred income tax liabilities | — | — | 3 | — | 3 | ||||||||||||||||
Other long-term liabilities | 1 | 29 | 38 | — | 68 | ||||||||||||||||
Total liabilities | 1,680 | 738 | 1,727 | (1,499 | ) | 2,646 | |||||||||||||||
Total equity | 2,423 | 4,355 | 1,453 | (6,131 | ) | 2,100 | |||||||||||||||
Total liabilities and equity | $ | 4,103 | $ | 5,093 | $ | 3,180 | $ | (7,630 | ) | $ | 4,746 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(Unaudited, 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 affiliate | — | — | 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 STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 34 | $ | (5 | ) | $ | — | $ | 29 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (14 | ) | (26 | ) | — | (40 | ) | |||||||||||||
Net cash used in investing activities | — | (14 | ) | (26 | ) | — | (40 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 20 | (33 | ) | — | (13 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 257 | 80 | — | 337 | ||||||||||||||||
End of period | $ | — | $ | 277 | $ | 47 | $ | — | $ | 324 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash used in operating activities | $ | — | $ | (29 | ) | $ | (12 | ) | $ | — | $ | (41 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (21 | ) | (15 | ) | — | (36 | ) | |||||||||||||
Decrease in restricted cash | — | — | 1 | — | 1 | ||||||||||||||||
Decrease in deposit requirements for letters of credit, net | — | — | 1 | — | 1 | ||||||||||||||||
Net cash used in investing activities | — | (21 | ) | (13 | ) | — | (34 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments of debt | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Net cash used in financing activities | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (51 | ) | (31 | ) | — | (82 | ) | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 165 | 157 | — | 322 | ||||||||||||||||
End of period | $ | — | $ | 114 | $ | 126 | $ | — | $ | 240 | |||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New accounting pronouncements | In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis,” which affects the variable interest entity and voting entity consolidation models for all companies. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015. We are evaluating the impact of this standard on our result of operations or financial position. |
In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This standard is effective for financial statements issued for fiscal years beginning after December 15, 2015. The adoption of this accounting guidance will not materially impact our financial position. |
Closure_Costs_Impairment_and_O1
Closure Costs, Impairment and Other Related Charges (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the three months ended March 31, 2015 were comprised of the following: | ||||||||||||||||
(Unaudited, in millions) | Accelerated | Severance | Total | ||||||||||||||
Depreciation | and Other | ||||||||||||||||
Costs | |||||||||||||||||
Permanent closures: | |||||||||||||||||
Paper mill in Iroquois Falls, Ontario | $ | — | $ | 4 | $ | 4 | |||||||||||
Paper machine in Clermont, Québec | 2 | — | 2 | ||||||||||||||
Total | $ | 2 | $ | 4 | $ | 6 | |||||||||||
Closure costs, impairment and other related charges for the three months ended March 31, 2014 were comprised of the following: | |||||||||||||||||
(Unaudited, in millions) | Impairment of Assets | Accelerated | Severance | Total | |||||||||||||
Depreciation | and Other | ||||||||||||||||
Costs | |||||||||||||||||
Permanent closures: | |||||||||||||||||
Pulp and paper mill in Fort Frances, Ontario | $ | — | $ | — | $ | 6 | $ | 6 | |||||||||
Paper machine in Iroquois Falls | — | 3 | — | 3 | |||||||||||||
Other | 1 | — | — | 1 | |||||||||||||
Total | $ | 1 | $ | 3 | $ | 6 | $ | 10 | |||||||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
Other (Expense) Income, Net | Other income (expense), net for the three months ended March 31, 2015 and 2014 was comprised of the following: | ||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Foreign exchange gain (loss) | $ | 2 | $ | (14 | ) | ||||
Miscellaneous income | 3 | 1 | |||||||
$ | 5 | $ | (13 | ) | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2015 was as follows: | ||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits | Unamortized Actuarial Losses | Foreign | Total | |||||||||||||
Currency | |||||||||||||||||
Translation | |||||||||||||||||
Balance as of December 31, 2014 | $ | 94 | $ | (812 | ) | $ | — | $ | (718 | ) | |||||||
Other comprehensive loss before reclassifications | — | — | (1 | ) | (1 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss (1) | (5 | ) | 16 | — | 11 | ||||||||||||
Net current period other comprehensive (loss) income | (5 | ) | 16 | (1 | ) | 10 | |||||||||||
Balance as of March 31, 2015 | $ | 89 | $ | (796 | ) | $ | (1 | ) | $ | (708 | ) | ||||||
(1) | See the table below for details about these reclassifications. | ||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 were comprised of the following: | ||||||||||||||||
(Unaudited, 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 | $ | (5 | ) | Cost of sales, excluding depreciation, amortization and distribution costs (1) | |||||||||||||
— | Income tax (provision) benefit | ||||||||||||||||
$ | (5 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 21 | Cost of sales, excluding depreciation, amortization and distribution costs (1) | ||||||||||||||
(5 | ) | Income tax (provision) benefit | |||||||||||||||
$ | 16 | Net of tax | |||||||||||||||
Total Reclassifications | $ | 11 | Net of tax | ||||||||||||||
(1) | These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEB”) plans summarized in Note 8, “Employee Benefit Plans.” |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) outstanding for the three months ended March 31, 2015 and 2014 was as follows: | ||||||
(Unaudited, in millions) | 2015 | 2014 | |||||
Stock options | 1.6 | 1.8 | |||||
Stock unit awards | 1.2 | 1 | |||||
Inventories_Net_Tables
Inventories, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories, net | Inventories, net as of March 31, 2015 and December 31, 2014 were comprised of the following: | ||||||||
(Unaudited, in millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Raw materials and work in process | $ | 175 | $ | 160 | |||||
Finished goods | 194 | 192 | |||||||
Mill stores and other supplies | 194 | 190 | |||||||
$ | 563 | $ | 542 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of March 31, 2015 and December 31, 2014 was comprised of the following: | ||||||||
(Unaudited, in millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | 600 | |||||
Unamortized discount | (5 | ) | (5 | ) | |||||
Total senior notes due 2023 | 595 | 595 | |||||||
Capital lease obligation | 2 | 2 | |||||||
Total debt | 597 | 597 | |||||||
Less: Current portion of long-term debt | (1 | ) | (1 | ) | |||||
Long-term debt, net of current portion | $ | 596 | $ | 596 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
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 three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Pension Plans: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Service cost | $ | 6 | $ | 7 | |||||
Interest cost | 58 | 69 | |||||||
Expected return on plan assets | (67 | ) | (75 | ) | |||||
Amortization of actuarial losses | 22 | 1 | |||||||
Amortization of prior service credits | (1 | ) | — | ||||||
$ | 18 | $ | 2 | ||||||
OPEB Plans: | |||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Service cost | $ | — | $ | 1 | |||||
Interest cost | 2 | 3 | |||||||
Amortization of actuarial gains | (1 | ) | (1 | ) | |||||
Amortization of prior service credits | (4 | ) | (2 | ) | |||||
$ | (3 | ) | $ | 1 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax (provision) benefit 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 three months ended March 31, 2015 and 2014 as a result of the following: | ||||||||
(Unaudited, in millions) | 2015 | 2014 | |||||||
Loss before income taxes | $ | (22 | ) | $ | (58 | ) | |||
Income tax (provision) benefit: | |||||||||
Expected income tax benefit | 8 | 20 | |||||||
Changes resulting from: | |||||||||
Valuation allowance (1) | (19 | ) | (8 | ) | |||||
Foreign exchange | (5 | ) | (6 | ) | |||||
State income taxes and foreign tax rate differences | 3 | 2 | |||||||
Other, net | 3 | — | |||||||
$ | (10 | ) | $ | 8 | |||||
(1) | During the three months ended March 31, 2015 and 2014, we recorded a net increase in our valuation allowance of $19 million and $8 million, respectively, primarily because we no longer recognize tax benefits related to our U.S. operations. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Schedule of Segment Reporting Information | Information about certain segment data for the three months ended March 31, 2015 and 2014 was as follows: | ||||||||||||||||||||||||
(Unaudited, in millions) | Newsprint | Specialty | Market | Wood | Corporate | Consolidated | |||||||||||||||||||
Papers | Pulp (1) | Products | and Other | Total | |||||||||||||||||||||
Sales | |||||||||||||||||||||||||
First three months 2015 | $ | 291 | $ | 272 | $ | 218 | $ | 139 | $ | — | $ | 920 | |||||||||||||
First three months 2014 | 346 | 301 | 234 | 135 | — | 1,016 | |||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||
First three months 2015 | $ | 16 | $ | 17 | $ | 14 | $ | 8 | $ | 2 | $ | 57 | |||||||||||||
First three months 2014 | 18 | 22 | 13 | 8 | 1 | 62 | |||||||||||||||||||
Operating (loss) income | |||||||||||||||||||||||||
First three months 2015 | $ | (6 | ) | $ | 1 | $ | 10 | $ | 5 | $ | (25 | ) | $ | (15 | ) | ||||||||||
First three months 2014 | (15 | ) | (24 | ) | 8 | 12 | (14 | ) | (33 | ) | |||||||||||||||
(1) | Market pulp sales excluded inter-segment sales of $3 million for both the three months ended March 31, 2015 and 2014. |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 751 | $ | 581 | $ | (412 | ) | $ | 920 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 704 | 424 | (410 | ) | 718 | |||||||||||||||
Depreciation and amortization | — | 23 | 34 | — | 57 | ||||||||||||||||
Distribution costs | — | 41 | 73 | (1 | ) | 113 | |||||||||||||||
Selling, general and administrative expenses | 3 | 12 | 26 | — | 41 | ||||||||||||||||
Closure costs, impairment and other related charges | — | — | 6 | — | 6 | ||||||||||||||||
Operating (loss) income | (3 | ) | (29 | ) | 18 | (1 | ) | (15 | ) | ||||||||||||
Interest expense | (18 | ) | (1 | ) | (2 | ) | 9 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 12 | 3 | (9 | ) | 5 | ||||||||||||||
Parent’s equity in loss of subsidiaries | (11 | ) | — | — | 11 | — | |||||||||||||||
(Loss) income before income taxes | (33 | ) | (18 | ) | 19 | 10 | (22 | ) | |||||||||||||
Income tax benefit (provision) | — | 4 | (14 | ) | — | (10 | ) | ||||||||||||||
Net (loss) income including noncontrolling interests | (33 | ) | (14 | ) | 5 | 10 | (32 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (33 | ) | $ | (14 | ) | $ | 4 | $ | 10 | $ | (33 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (23 | ) | $ | (14 | ) | $ | 14 | $ | — | $ | (23 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 845 | $ | 701 | $ | (530 | ) | $ | 1,016 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | — | 820 | 532 | (531 | ) | 821 | |||||||||||||||
Depreciation and amortization | — | 25 | 37 | — | 62 | ||||||||||||||||
Distribution costs | — | 37 | 84 | (1 | ) | 120 | |||||||||||||||
Selling, general and administrative expenses | 4 | 9 | 23 | — | 36 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 2 | 8 | — | 10 | ||||||||||||||||
Operating (loss) income | (4 | ) | (48 | ) | 17 | 2 | (33 | ) | |||||||||||||
Interest expense | (17 | ) | (1 | ) | (3 | ) | 9 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 11 | (14 | ) | (9 | ) | (13 | ) | ||||||||||||
Parent’s equity in loss of subsidiaries | (28 | ) | — | — | 28 | — | |||||||||||||||
Loss before income taxes | (50 | ) | (38 | ) | — | 30 | (58 | ) | |||||||||||||
Income tax benefit (provision) | — | 15 | (6 | ) | (1 | ) | 8 | ||||||||||||||
Net loss including noncontrolling interests | (50 | ) | (23 | ) | (6 | ) | 29 | (50 | ) | ||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net loss attributable to Resolute Forest Products Inc. | $ | (50 | ) | $ | (23 | ) | $ | (6 | ) | $ | 29 | $ | (50 | ) | |||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (26 | ) | $ | 1 | $ | (6 | ) | $ | 5 | $ | (26 | ) | ||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 277 | $ | 47 | $ | — | $ | 324 | |||||||||||
Accounts receivable, net | — | 353 | 149 | — | 502 | ||||||||||||||||
Accounts receivable from affiliates | 1 | 386 | 107 | (494 | ) | — | |||||||||||||||
Inventories, net | — | 240 | 333 | (10 | ) | 563 | |||||||||||||||
Deferred income tax assets | — | — | 64 | — | 64 | ||||||||||||||||
Interest receivable from parent | — | 6 | — | (6 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 321 | — | (321 | ) | — | |||||||||||||||
Other current assets | — | 22 | 29 | — | 51 | ||||||||||||||||
Total current assets | 1 | 1,605 | 729 | (831 | ) | 1,504 | |||||||||||||||
Fixed assets, net | — | 726 | 1,230 | — | 1,956 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 62 | — | 62 | ||||||||||||||||
Deferred income tax assets | — | — | 1,097 | 2 | 1,099 | ||||||||||||||||
Notes receivable from parent | — | 678 | — | (678 | ) | — | |||||||||||||||
Investments in consolidated subsidiaries and affiliates | 4,095 | 2,028 | — | (6,123 | ) | — | |||||||||||||||
Other assets | 7 | 56 | 62 | — | 125 | ||||||||||||||||
Total assets | $ | 4,103 | $ | 5,093 | $ | 3,180 | $ | (7,630 | ) | $ | 4,746 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 14 | $ | 184 | $ | 289 | $ | — | $ | 487 | |||||||||||
Current portion of long-term debt | — | 1 | — | — | 1 | ||||||||||||||||
Accounts payable to affiliates | 386 | 107 | 1 | (494 | ) | — | |||||||||||||||
Interest payable to subsidiary | 6 | — | — | (6 | ) | — | |||||||||||||||
Notes payable to affiliate | — | — | 321 | (321 | ) | — | |||||||||||||||
Total current liabilities | 406 | 292 | 611 | (821 | ) | 488 | |||||||||||||||
Long-term debt, net of current portion | 595 | 1 | — | — | 596 | ||||||||||||||||
Notes payable to subsidiaries | 678 | — | — | (678 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 416 | 1,075 | — | 1,491 | ||||||||||||||||
Deferred income tax liabilities | — | — | 3 | — | 3 | ||||||||||||||||
Other long-term liabilities | 1 | 29 | 38 | — | 68 | ||||||||||||||||
Total liabilities | 1,680 | 738 | 1,727 | (1,499 | ) | 2,646 | |||||||||||||||
Total equity | 2,423 | 4,355 | 1,453 | (6,131 | ) | 2,100 | |||||||||||||||
Total liabilities and equity | $ | 4,103 | $ | 5,093 | $ | 3,180 | $ | (7,630 | ) | $ | 4,746 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(Unaudited, 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 affiliate | — | — | 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 Statements of Cash Flows | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 34 | $ | (5 | ) | $ | — | $ | 29 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (14 | ) | (26 | ) | — | (40 | ) | |||||||||||||
Net cash used in investing activities | — | (14 | ) | (26 | ) | — | (40 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 20 | (33 | ) | — | (13 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 257 | 80 | — | 337 | ||||||||||||||||
End of period | $ | — | $ | 277 | $ | 47 | $ | — | $ | 324 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash used in operating activities | $ | — | $ | (29 | ) | $ | (12 | ) | $ | — | $ | (41 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (21 | ) | (15 | ) | — | (36 | ) | |||||||||||||
Decrease in restricted cash | — | — | 1 | — | 1 | ||||||||||||||||
Decrease in deposit requirements for letters of credit, net | — | — | 1 | — | 1 | ||||||||||||||||
Net cash used in investing activities | — | (21 | ) | (13 | ) | — | (34 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Payments of debt | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Net cash used in financing activities | — | (1 | ) | — | — | (1 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (6 | ) | — | (6 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (51 | ) | (31 | ) | — | (82 | ) | |||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 165 | 157 | — | 322 | ||||||||||||||||
End of period | $ | — | $ | 114 | $ | 126 | $ | — | $ | 240 | |||||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation - Nature of Operations (Details) | Mar. 31, 2015 |
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 |
Closure_Costs_Impairment_and_O2
Closure Costs, Impairment and Other Related Charges (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Impairment of assets | $1 | |
Accelerated depreciation | 2 | 3 |
Severance and other costs | 4 | 6 |
Total | 6 | 10 |
Permanent closure of paper mill in Iroquois Falls, Ontario [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment of assets | 0 | |
Accelerated depreciation | 0 | 3 |
Severance and other costs | 4 | 0 |
Total | 4 | 3 |
Permanent closure of paper machine in Clermont, Quebec [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accelerated depreciation | 2 | |
Severance and other costs | 0 | |
Total | 2 | |
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 | |
Severance and other costs | 6 | |
Total | 6 | |
Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment of assets | 1 | |
Accelerated depreciation | 0 | |
Severance and other costs | 0 | |
Total | $1 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income and Expenses [Abstract] | ||
Foreign exchange gain (loss) | $2 | ($14) |
Miscellaneous income | 3 | 1 |
Other income (expense), net | $5 | ($13) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | ($718) | ||
Other comprehensive loss before reclassifications | -1 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 11 | [1] | |
Other comprehensive income (loss), net of tax | 10 | 24 | |
Ending balance | -708 | ||
Unamortized Prior Service Credits [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 94 | ||
Other comprehensive loss before reclassifications | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | -5 | [1] | |
Other comprehensive income (loss), net of tax | -5 | ||
Ending balance | 89 | ||
Unamortized Actuarial Losses [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -812 | ||
Other comprehensive loss before reclassifications | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 16 | [1] | |
Other comprehensive income (loss), net of tax | 16 | ||
Ending balance | -796 | ||
Foreign Currency Translation [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 0 | ||
Other comprehensive loss before reclassifications | -1 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | [1] | |
Other comprehensive income (loss), net of tax | -1 | ||
Ending balance | ($1) | ||
[1] | See the table below for details about these reclassifications. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales, excluding depreciation, amortization and distribution costs | $718 | $821 | |
Income tax benefit (provision) | 10 | -8 | |
Net of tax | 33 | 50 | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net of tax | 11 | ||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Prior Service Credits [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales, excluding depreciation, amortization and distribution costs | -5 | [1] | |
Income tax benefit (provision) | 0 | ||
Net of tax | -5 | ||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cost of sales, excluding depreciation, amortization and distribution costs | 21 | [1] | |
Income tax benefit (provision) | -5 | ||
Net of tax | $16 | ||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEBâ€) plans summarized in Note 8, “Employee Benefit Plans.†|
Net_Income_Loss_Per_Share_Sche
Net Income (Loss) Per Share - Schedule of Weighted-Average Stock Options and Equity-Classified RSUs, DSUs and PSUs Outstanding (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of award shares outstanding | 1.6 | 1.8 |
Stock unit awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of award shares outstanding | 1.2 | 1 |
Inventories_Net_Details
Inventories, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $175 | $160 |
Finished goods | 194 | 192 |
Mill stores and other supplies | 194 | 190 |
Inventories, net | $563 | $542 |
LongTerm_Debt_LongTerm_Debt_In
Long-Term Debt - Long-Term Debt Including Current Portion (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Principal amount | $600 | $600 |
Unamortized discount | -5 | -5 |
Net carrying amount | 595 | 595 |
Capital lease obligation | 2 | 2 |
Total debt | 597 | 597 |
Less: Current portion of long-term debt | -1 | -1 |
Long-term debt, net of current portion | $596 | $596 |
LongTerm_Debt_Senior_Notes_Det
Long-Term Debt - Senior Notes (Details) (Senior Notes [Member], Senior Notes Due 2023 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 | 8-May-13 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $600,000,000 | ||
Interest rate of notes | 5.88% | ||
Fair value of senior notes | $577,000,000 | $571,000,000 |
LongTerm_Debt_ABL_Credit_Facil
Long-Term Debt - ABL Credit Facility (Details) (Revolving Credit Facility [Member], USD $) | Mar. 31, 2015 |
Line of Credit Facility [Line Items] | |
Maximum commitment amount | $665,000,000 |
Credit facility borrowings | 0 |
Letters of credit amount outstanding | 36,000,000 |
Available credit facility borrowing capacity | 464,000,000 |
U.S. Borrowers [Member] | |
Line of Credit Facility [Line Items] | |
Available credit facility borrowing capacity | 281,000,000 |
Canadian Borrower [Member] | |
Line of Credit Facility [Line Items] | |
Available credit facility borrowing capacity | $183,000,000 |
LongTerm_Debt_Capital_Lease_Ob
Long-Term Debt - Capital Lease Obligation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Length of warehouse capital lease obligation renewal option | 20 years |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $6 | $7 |
Interest cost | 58 | 69 |
Expected return on plan assets | -67 | -75 |
Amortization of actuarial (gains) losses | 22 | 1 |
Amortization of prior service (credits) costs | -1 | 0 |
Net periodic benefit cost | 18 | 2 |
OPEB Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 1 |
Interest cost | 2 | 3 |
Amortization of actuarial (gains) losses | -1 | -1 |
Amortization of prior service (credits) costs | -4 | -2 |
Net periodic benefit cost | ($3) | $1 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Expense for the defined contribution plans, total | $6 | $6 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | ($22) | ($58) | ||
Income tax (provision) benefit: | ||||
Expected income tax benefit | 8 | 20 | ||
Changes resulting from: | ||||
Valuation allowance | -19 | [1] | -8 | [1] |
Foreign exchange | -5 | -6 | ||
State income taxes and foreign tax rate differences | 3 | 2 | ||
Other, net | 3 | 0 | ||
Income tax (provision) benefit | ($10) | $8 | ||
[1] | During the three months ended March 31, 2015 and 2014, we recorded a net increase in our valuation allowance of $19Â million and $8 million, respectively, primarily because we no longer recognize tax benefits related to our U.S. operations. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | ||
Increase (decrease) in valuation allowance | $19 | [1] | $8 | [1] |
[1] | During the three months ended March 31, 2015 and 2014, we recorded a net increase in our valuation allowance of $19Â million and $8 million, respectively, primarily because we no longer recognize tax benefits related to our U.S. operations. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | |||||||
Oct. 30, 2014 | Oct. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2012 | |
USD ($) | CAD | USD ($) | CAD | USD ($) | Conditional Incentive Noncompliance [Member] | Fibrek [Member] | Fibrek [Member] | Fibrek [Member] | |
site | USD ($) | USD ($) | CAD | ||||||
Loss Contingencies [Line Items] | |||||||||
Percentage of outstanding shares acquired | 25.40% | ||||||||
Amount accrued to be contingently distributed | $11,000,000 | 14,000,000 | |||||||
Maximum deficit from partial wind-up of pension plans to be funded | 120,000,000 | 150,000,000 | |||||||
Request of repayment of conditional incentive | 18,000,000 | 23,000,000 | |||||||
Contingent liability recorded | 0 | ||||||||
Environmental Remediation Obligations [Abstract] | |||||||||
Number of hazardous waste sites | 4 | 4 | |||||||
Environmental liabilities | 14,000,000 | 18,000,000 | |||||||
Asset retirement obligations | $22,000,000 | $22,000,000 |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Reporting Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Sales | $920 | $1,016 | ||
Depreciation and amortization | 57 | 62 | ||
Operating income (loss) | -15 | -33 | ||
Newsprint [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 291 | 346 | ||
Depreciation and amortization | 16 | 18 | ||
Operating income (loss) | -6 | -15 | ||
Specialty Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 272 | 301 | ||
Depreciation and amortization | 17 | 22 | ||
Operating income (loss) | 1 | -24 | ||
Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 218 | [1] | 234 | [1] |
Depreciation and amortization | 14 | [1] | 13 | [1] |
Operating income (loss) | 10 | [1] | 8 | [1] |
Wood Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 139 | 135 | ||
Depreciation and amortization | 8 | 8 | ||
Operating income (loss) | 5 | 12 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | ||
Depreciation and amortization | 2 | 1 | ||
Operating income (loss) | ($25) | ($14) | ||
[1] | Market pulp sales excluded inter-segment sales of $3 million for both the three months ended March 31, 2015 and 2014. |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Sales | $920 | $1,016 | ||
Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 218 | [1] | 234 | [1] |
Market Pulp [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $3 | $3 | ||
[1] | Market pulp sales excluded inter-segment sales of $3 million for both the three months ended March 31, 2015 and 2014. |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Sales | $920 | $1,016 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 718 | 821 |
Depreciation and amortization | 57 | 62 |
Distribution costs | 113 | 120 |
Selling, general and administrative expenses | 41 | 36 |
Closure costs, impairment and other related charges | 6 | 10 |
Operating income (loss) | -15 | -33 |
Interest expense | -12 | -12 |
Other income (expense), net | 5 | -13 |
Parent's equity in income (loss) of subsidiaries | 0 | 0 |
Income (loss) before income taxes | -22 | -58 |
Income tax benefit (provision) | -10 | 8 |
Net income (loss) including noncontrolling interests | -32 | -50 |
Net (income) loss attributable to noncontrolling interests | -1 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | -33 | -50 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | -23 | -26 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Distribution costs | 0 | 0 |
Selling, general and administrative expenses | 3 | 4 |
Closure costs, impairment and other related charges | 0 | 0 |
Operating income (loss) | -3 | -4 |
Interest expense | -18 | -17 |
Other income (expense), net | -1 | -1 |
Parent's equity in income (loss) of subsidiaries | -11 | -28 |
Income (loss) before income taxes | -33 | -50 |
Income tax benefit (provision) | 0 | 0 |
Net income (loss) including noncontrolling interests | -33 | -50 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | -33 | -50 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | -23 | -26 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 751 | 845 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 704 | 820 |
Depreciation and amortization | 23 | 25 |
Distribution costs | 41 | 37 |
Selling, general and administrative expenses | 12 | 9 |
Closure costs, impairment and other related charges | 0 | 2 |
Operating income (loss) | -29 | -48 |
Interest expense | -1 | -1 |
Other income (expense), net | 12 | 11 |
Parent's equity in income (loss) of subsidiaries | 0 | 0 |
Income (loss) before income taxes | -18 | -38 |
Income tax benefit (provision) | 4 | 15 |
Net income (loss) including noncontrolling interests | -14 | -23 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | -14 | -23 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | -14 | 1 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 581 | 701 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 424 | 532 |
Depreciation and amortization | 34 | 37 |
Distribution costs | 73 | 84 |
Selling, general and administrative expenses | 26 | 23 |
Closure costs, impairment and other related charges | 6 | 8 |
Operating income (loss) | 18 | 17 |
Interest expense | -2 | -3 |
Other income (expense), net | 3 | -14 |
Parent's equity in income (loss) of subsidiaries | 0 | 0 |
Income (loss) before income taxes | 19 | 0 |
Income tax benefit (provision) | -14 | -6 |
Net income (loss) including noncontrolling interests | 5 | -6 |
Net (income) loss attributable to noncontrolling interests | -1 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 4 | -6 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 14 | -6 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | -412 | -530 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | -410 | -531 |
Depreciation and amortization | 0 | 0 |
Distribution costs | -1 | -1 |
Selling, general and administrative expenses | 0 | 0 |
Closure costs, impairment and other related charges | 0 | 0 |
Operating income (loss) | -1 | 2 |
Interest expense | 9 | 9 |
Other income (expense), net | -9 | -9 |
Parent's equity in income (loss) of subsidiaries | 11 | 28 |
Income (loss) before income taxes | 10 | 30 |
Income tax benefit (provision) | 0 | -1 |
Net income (loss) including noncontrolling interests | 10 | 29 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 10 | 29 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $0 | $5 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $324 | $337 | $240 | $322 |
Accounts receivable, net | 502 | 539 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 563 | 542 | ||
Deferred income tax assets | 64 | 70 | ||
Note and interest receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Other current assets | 51 | 46 | ||
Total current assets | 1,504 | 1,534 | ||
Fixed assets, net | 1,956 | 1,985 | ||
Amortizable intangible assets, net | 62 | 62 | ||
Deferred income tax assets | 1,099 | 1,219 | ||
Notes receivable from parent | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 125 | 121 | ||
Total assets | 4,746 | 4,921 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 487 | 518 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 0 | 0 | ||
Note and interest payable to subsidiary | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Total current liabilities | 488 | 519 | ||
Long-term debt, net of current portion | 596 | 596 | ||
Note payable to subsidiary | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,491 | 1,616 | ||
Deferred income tax liabilities | 3 | 3 | ||
Other liabilities | 68 | 70 | ||
Total liabilities | 2,646 | 2,804 | ||
Total equity | 2,100 | 2,117 | 2,813 | 2,839 |
Total liabilities and equity | 4,746 | 4,921 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 1 | 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 | ||
Other current assets | 0 | 0 | ||
Total current assets | 1 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 4,095 | 4,096 | ||
Other assets | 7 | 7 | ||
Total assets | 4,103 | 4,103 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 14 | 5 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 386 | 386 | ||
Note and interest payable to subsidiary | 6 | 287 | ||
Notes payable to affiliates | 0 | 0 | ||
Total current liabilities | 406 | 678 | ||
Long-term debt, net of current portion | 595 | 595 | ||
Note payable to subsidiary | 678 | 388 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 1 | 1 | ||
Total liabilities | 1,680 | 1,662 | ||
Total equity | 2,423 | 2,441 | ||
Total liabilities and equity | 4,103 | 4,103 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 277 | 257 | 114 | 165 |
Accounts receivable, net | 353 | 383 | ||
Accounts receivable from affiliates | 386 | 384 | ||
Inventories, net | 240 | 251 | ||
Deferred income tax assets | 0 | 0 | ||
Note and interest receivable from parent | 6 | 287 | ||
Notes receivable from affiliates | 321 | 318 | ||
Other current assets | 22 | 20 | ||
Total current assets | 1,605 | 1,900 | ||
Fixed assets, net | 726 | 742 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 678 | 388 | ||
Investments in consolidated subsidiaries and affiliates | 2,028 | 2,020 | ||
Other assets | 56 | 49 | ||
Total assets | 5,093 | 5,099 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 184 | 193 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 107 | 93 | ||
Note and interest payable to subsidiary | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Total current liabilities | 292 | 287 | ||
Long-term debt, net of current portion | 1 | 1 | ||
Note payable to subsidiary | 0 | 0 | ||
Pension and other postretirement benefit obligations | 416 | 414 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 29 | 29 | ||
Total liabilities | 738 | 731 | ||
Total equity | 4,355 | 4,368 | ||
Total liabilities and equity | 5,093 | 5,099 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 47 | 80 | 126 | 157 |
Accounts receivable, net | 149 | 156 | ||
Accounts receivable from affiliates | 107 | 95 | ||
Inventories, net | 333 | 300 | ||
Deferred income tax assets | 64 | 70 | ||
Note and interest receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Other current assets | 29 | 26 | ||
Total current assets | 729 | 727 | ||
Fixed assets, net | 1,230 | 1,243 | ||
Amortizable intangible assets, net | 62 | 62 | ||
Deferred income tax assets | 1,097 | 1,217 | ||
Notes receivable from parent | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 62 | 65 | ||
Total assets | 3,180 | 3,314 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 289 | 320 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 1 | 0 | ||
Note and interest payable to subsidiary | 0 | 0 | ||
Notes payable to affiliates | 321 | 318 | ||
Total current liabilities | 611 | 638 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Note payable to subsidiary | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,075 | 1,202 | ||
Deferred income tax liabilities | 3 | 3 | ||
Other liabilities | 38 | 40 | ||
Total liabilities | 1,727 | 1,883 | ||
Total equity | 1,453 | 1,431 | ||
Total liabilities and equity | 3,180 | 3,314 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | -494 | -479 | ||
Inventories, net | -10 | -9 | ||
Deferred income tax assets | 0 | 0 | ||
Note and interest receivable from parent | -6 | -287 | ||
Notes receivable from affiliates | -321 | -318 | ||
Other current assets | 0 | 0 | ||
Total current assets | -831 | -1,093 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Deferred income tax assets | 2 | 2 | ||
Notes receivable from parent | -678 | -388 | ||
Investments in consolidated subsidiaries and affiliates | -6,123 | -6,116 | ||
Other assets | 0 | 0 | ||
Total assets | -7,630 | -7,595 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | -494 | -479 | ||
Note and interest payable to subsidiary | -6 | -287 | ||
Notes payable to affiliates | -321 | -318 | ||
Total current liabilities | -821 | -1,084 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Note payable to subsidiary | -678 | -388 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | -1,499 | -1,472 | ||
Total equity | -6,131 | -6,123 | ||
Total liabilities and equity | ($7,630) | ($7,595) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $29 | ($41) |
Cash flows from investing activities: | ||
Cash invested in fixed assets | -40 | -36 |
Decrease in restricted cash | 0 | 1 |
Decrease in deposit requirements for letters of credit, net | 0 | 1 |
Net cash provided by (used in) investing activities | -40 | -34 |
Cash flows from financing activities: | ||
Payments of debt | 0 | -1 |
Net cash provided by (used in) financing activities | 0 | -1 |
Effect of exchange rate changes on cash and cash equivalents | -2 | -6 |
Net increase (decrease) in cash and cash equivalents | -13 | -82 |
Cash and cash equivalents: | ||
Beginning of period | 337 | 322 |
End of period | 324 | 240 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | 0 | 0 |
Decrease in restricted cash | 0 | |
Decrease in deposit requirements for letters of credit, net | 0 | |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Payments of debt | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents: | ||
Beginning of period | 0 | 0 |
End of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 34 | -29 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | -14 | -21 |
Decrease in restricted cash | 0 | |
Decrease in deposit requirements for letters of credit, net | 0 | |
Net cash provided by (used in) investing activities | -14 | -21 |
Cash flows from financing activities: | ||
Payments of debt | -1 | |
Net cash provided by (used in) financing activities | -1 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 20 | -51 |
Cash and cash equivalents: | ||
Beginning of period | 257 | 165 |
End of period | 277 | 114 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | -5 | -12 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | -26 | -15 |
Decrease in restricted cash | 1 | |
Decrease in deposit requirements for letters of credit, net | 1 | |
Net cash provided by (used in) investing activities | -26 | -13 |
Cash flows from financing activities: | ||
Payments of debt | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Effect of exchange rate changes on cash and cash equivalents | -2 | -6 |
Net increase (decrease) in cash and cash equivalents | -33 | -31 |
Cash and cash equivalents: | ||
Beginning of period | 80 | 157 |
End of period | 47 | 126 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | 0 | 0 |
Decrease in restricted cash | 0 | |
Decrease in deposit requirements for letters of credit, net | 0 | |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Payments of debt | 0 | |
Net cash provided by (used in) financing activities | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents: | ||
Beginning of period | 0 | 0 |
End of period | $0 | $0 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Information - Additional Information (Details) (Guarantor Subsidiaries [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |