Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | ||
Entity Central Index Key | 1,393,066 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RFP | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 89,492,774 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 698 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 3,645 | $ 4,258 | $ 4,461 |
Costs and expenses: | |||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,826 | 3,240 | 3,446 |
Depreciation and amortization | 237 | 243 | 243 |
Distribution costs | 460 | 518 | 521 |
Selling, general and administrative expenses | 160 | 155 | 166 |
Closure costs, impairment and other related charges | 181 | 278 | 89 |
Net gain on disposition of assets | 0 | (2) | (2) |
Operating income (loss) | (219) | (174) | (2) |
Interest expense | (41) | (47) | (51) |
Other income (expense), net | 4 | (83) | (62) |
Income (loss) before income taxes | (256) | (304) | (115) |
Income tax benefit (provision) | 1 | 30 | (524) |
Net income (loss) including noncontrolling interests | (255) | (274) | (639) |
Net income attributable to noncontrolling interests | (2) | (3) | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | $ (257) | $ (277) | $ (639) |
Net loss per share attributable to Resolute Forest Products Inc. common shareholders: | |||
Basic (in dollars per share) | $ (2.78) | $ (2.93) | $ (6.75) |
Diluted (in dollars per share) | $ (2.78) | $ (2.93) | $ (6.75) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | |||
Basic | 92.4 | 94.6 | 94.7 |
Diluted | 92.4 | 94.6 | 94.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss including noncontrolling interests | $ (255) | $ (274) | $ (639) |
Unamortized prior service credits: | |||
Change in unamortized prior service credits | (16) | 75 | (3) |
Income tax benefit | 6 | 1 | 0 |
Change in unamortized prior service credits, net of tax | (10) | 76 | (3) |
Unamortized actuarial losses: | |||
Change in unamortized actuarial losses | 208 | (638) | 471 |
Income tax (provision) benefit | (63) | 116 | (121) |
Change in unamortized actuarial losses, net of tax | 145 | (522) | 350 |
Foreign currency translation | (4) | (1) | (4) |
Other comprehensive income (loss), net of tax | 131 | (447) | 343 |
Comprehensive loss including noncontrolling interests | (124) | (721) | (296) |
Comprehensive income attributable to noncontrolling interests | (2) | (3) | 0 |
Comprehensive loss attributable to Resolute Forest Products Inc. | $ (126) | $ (724) | $ (296) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 58 | $ 337 |
Accounts receivable, net: | ||
Trade | 377 | 449 |
Other | 82 | 90 |
Inventories, net | 541 | 542 |
Other current assets | 53 | 46 |
Total current assets | 1,111 | 1,464 |
Fixed assets, net | 1,810 | 1,985 |
Amortizable intangible assets, net | 105 | 62 |
Goodwill | 59 | 0 |
Deferred income tax assets | 982 | 1,289 |
Other assets | 153 | 114 |
Total assets | 4,220 | 4,914 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 436 | 518 |
Current portion of long-term debt | 1 | 1 |
Total current liabilities | 437 | 519 |
Long-term debt, net of current portion | 590 | 589 |
Pension and other postretirement benefit obligations | 1,186 | 1,616 |
Deferred income tax liabilities | 2 | 3 |
Other liabilities | 60 | 70 |
Total liabilities | $ 2,275 | $ 2,797 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 117.5 shares issued and 89.5 shares outstanding as of December 31, 2015; 117.3 shares issued and 94.8 shares outstanding as of December 31, 2014 | $ 0 | $ 0 |
Additional paid-in capital | 3,765 | 3,754 |
Deficit | (1,126) | (869) |
Accumulated other comprehensive loss | (587) | (718) |
Treasury stock at cost, 28.0 shares and 22.5 shares as of December 31, 2015 and December 31, 2014, respectively | (120) | (61) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,932 | 2,106 |
Noncontrolling interests | 13 | 11 |
Total equity | 1,945 | 2,117 |
Total liabilities and equity | $ 4,220 | $ 4,914 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 117.5 | 117.3 |
Common stock, shares outstanding | 89.5 | 94.8 |
Treasury stock, shares | 28 | 22.5 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | 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] |
Beginning Balance at Dec. 31, 2012 | $ 3,125 | $ 0 | $ 3,730 | $ 47 | $ (614) | $ (61) | $ 23 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 7 | 7 | |||||
Net income (loss) | (639) | (639) | 0 | ||||
Contribution of capital from noncontrolling interest | 5 | 5 | |||||
Acquisition of noncontrolling interest | 0 | 14 | (14) | ||||
Transfer of common stock from the share reserve to the Company | 0 | ||||||
Dividend paid to noncontrolling interest | (2) | (2) | |||||
Other comprehensive income (loss), net of tax | 343 | 343 | 0 | ||||
Ending Balance at Dec. 31, 2013 | 2,839 | 0 | 3,751 | (592) | (271) | (61) | 12 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 3 | 3 | |||||
Net income (loss) | (274) | (277) | 3 | ||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Dividend paid to noncontrolling interest | (4) | (4) | |||||
Other comprehensive income (loss), net of tax | (447) | (447) | 0 | ||||
Ending Balance at Dec. 31, 2014 | 2,117 | 0 | 3,754 | (869) | (718) | (61) | 11 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 11 | 11 | |||||
Net income (loss) | (255) | (257) | 2 | ||||
Stock incentive awards exercised or vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Purchases of treasury stock | (59) | (59) | |||||
Other comprehensive income (loss), net of tax | 131 | 131 | 0 | ||||
Ending Balance at Dec. 31, 2015 | $ 1,945 | $ 0 | $ 3,765 | $ (1,126) | $ (587) | $ (120) | $ 13 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share repurchase program, shares, repurchased | 5.5 | ||
Common Stock [Member] | |||
Transfer of common stock from share reserve | 0.3 | ||
Stock incentive awards exercised or vested, net of forfeitures for employee withholding taxes | 0.2 | 0.3 | |
Treasury Stock [Member] | |||
Share repurchase program, shares, repurchased | 5.5 | ||
Non-controlling Interests [Member] | |||
Tax impact of contribution of capital to non-controlling interests | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from operating activities: | ||||
Net loss including noncontrolling interests | $ (255) | $ (274) | $ (639) | |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | ||||
Share-based compensation | 12 | 6 | 7 | |
Depreciation and amortization | 237 | 243 | 243 | |
Closure costs, impairment and other related charges | 176 | 263 | 80 | |
Inventory write-downs related to closures | 2 | 17 | 11 | |
Deferred income taxes | 3 | (36) | 523 | |
Net pension contributions and other postretirement benefit payments | (62) | (157) | (117) | |
Net gain on disposition of assets | 0 | (2) | (2) | |
Loss on translation of foreign currency denominated deferred income taxes | 199 | 107 | 93 | |
Gain on translation of foreign currency denominated pension and other postretirement benefit obligations | (184) | (82) | (88) | |
Gain on forgiveness of note payable | [1] | 0 | 0 | (12) |
Net loss on extinguishment of debt | 0 | 0 | 59 | |
Write-down of equity method investment | [2] | 0 | 61 | 0 |
Changes in working capital: | ||||
Accounts receivable | 87 | 106 | 62 | |
Inventories | 10 | (31) | 16 | |
Other current assets | (4) | (3) | 10 | |
Accounts payable and accrued liabilities | (85) | (44) | (37) | |
Other, net | 2 | 12 | (3) | |
Net cash provided by operating activities | 138 | 186 | 206 | |
Cash flows from investing activities: | ||||
Cash invested in fixed assets | (185) | (193) | (161) | |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | (159) | 0 | 0 | |
Monetization of timber notes | 0 | 22 | 0 | |
Disposition of assets | 0 | 10 | 4 | |
Proceeds from insurance settlements | 0 | 0 | 4 | |
Decrease (increase) in countervailing duties cash deposits | (4) | 0 | 0 | |
Decrease in restricted cash | 0 | 1 | 8 | |
(Increase) decrease in deposit requirements for letters of credit, net | (4) | 1 | (2) | |
Other investing activities, net | 0 | (2) | (4) | |
Net cash provided by (used in) investing activities | (352) | (161) | (151) | |
Cash flows from financing activities: | ||||
Issuance of long-term debt | 0 | 0 | 594 | |
Premium paid on extinguishment of debt | 0 | 0 | (84) | |
Payments of debt | 0 | (2) | (503) | |
Payments of financing and credit facility fees | (3) | (1) | (9) | |
Purchases of treasury stock | (59) | 0 | 0 | |
Dividend to noncontrolling interest | 0 | (4) | (2) | |
Contribution of capital from noncontrolling interest | 0 | 0 | 8 | |
Net cash provided by (used in) financing activities | (62) | (7) | 4 | |
Effect of exchange rate changes on cash and cash equivalents | (3) | (3) | 0 | |
Net increase (decrease) in cash and cash equivalents | (279) | 15 | 59 | |
Cash and cash equivalents: | ||||
Beginning of year | 337 | 322 | 263 | |
End of year | 58 | 337 | 322 | |
Cash paid (received) during the year for: | ||||
Interest | 40 | 42 | 54 | |
Income taxes, net | $ 3 | $ (1) | $ 2 | |
[1] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our Consolidated Financial Statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||
[2] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Capitalized interest paid | $ 5 | $ 3 | $ 2 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 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 market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 80 countries. We own or operate over 40 pulp, paper, tissue and wood products facilities in the United States, Canada and South Korea, as well as power generation assets in Canada. Financial statements We have prepared our Consolidated Financial Statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Consolidation Our Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2015 with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Ownership Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% Donohue Malbaie Inc. 51% NYT Capital Inc. 49% Equity method investments We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of estimates In preparing our Consolidated Financial Statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. Cash and cash equivalents Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. Accounts receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” in our Consolidated Balance Sheets and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” or “ Other income (expense), net ” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. Amortizable intangible assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. Impairment of long-lived assets The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. Goodwill Goodwill is not amortized and is evaluated every year, or more frequently, whenever indicators of potential impairment exist. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then an impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the impairment test. The first step of an impairment test is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. Using the income method to determine the fair value of a reporting unit, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in property, plant and equipment and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. Fair value of goodwill is estimated in the same way as goodwill was determined at the date of the acquisition in a business combination, that is, the excess of the fair value of the reporting unit over the fair value of the identifiable net assets of the business. Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We have not provided for U.S. income taxes on the undistributed earnings, if any, of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of the income tax expense. Pension and OPEB obligations For our defined benefit plans, we recognize an asset or a liability for pension and OPEB obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value (other than those measured at net asset value (“NAV”) per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. Share-based compensation We amortize the fair value of our equity-based awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. We estimate forfeitures of stock incentive awards and performance adjustments for our PSUs based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. Any excess tax benefit related to share-based compensation gets recorded in the additional paid-in capital (“APIC”) pool and is available to absorb future tax related deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we would record the excess as income tax expense in our Consolidated Statements of Operations. For each of the years ended December 31, 2015 , 2014 and 2013 , the balance of the APIC pool was nil . Any cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs, DSUs and PSUs that exceed the compensation cost recognized (excess tax benefits) are classified as financing cash flows. Revenue recognition Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Net loss per share We calculate basic net loss per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net loss by the weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the weighted-average number of outstanding common shares, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs). The incremental shares are calculated using the treasury stock method (stock options, RSUs, DSUs and PSUs). To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs) would be antidilutive. Translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported in “ Other income (expense), net ” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “ Accumulated other comprehensive loss .” Distribution costs Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. New accounting pronouncements In February 2015, the 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 update is effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact our 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. In August 2015, the FASB also issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which allows debt issuance costs associated with line-of-credit arrangements to be presented as an asset. These updates are effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Other assets $ 160 $ (7 ) $ 153 $ 121 $ (7 ) $ 114 Long-term debt, net of current portion 597 (7 ) 590 596 (7 ) 589 In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This update is effective either retrospectively or prospectively for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact our financial position. In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which eliminates the requirement to categorize investments in the fair value hierarchy if the fair value is measured at NAV per share, or its equivalent, using the practical expedient in FASB ASC 820, “Fair Value Measurements and Disclosures.” This update is effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015. The adoption of this accounting guidance modified the fair value hierarchy presentation of our pension plan assets in our Consolidated Financial Statements. In July 2015, the FASB approved a one-year deferral of ASU 2014-09, “Revenue from Contracts with Customers,” deferring the effective date to fiscal years beginning after December 15, 2017. Early adoption is permitted for financial statements issued for fiscal years beginning after December 15, 2016. We are still evaluating the impact of this standard on our results of operations or financial position. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires that inventory within the scope of this update, including inventory stated at average cost, be measured at the lower of cost and net realizable value. This update is effective prospectively for financial statements issued for fiscal years beginning after December 15, 2016. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The adoption of this ASU did not have a material impact on our financial position. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified as non-current in a classified balance sheet. This update is effective either retrospectively or prospectively for financial statements issued for fiscal years beginning after December 15, 2016. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Deferred income tax assets (current) $ 22 $ (22 ) $ — $ 70 $ (70 ) $ — Deferred income tax assets (non-current) 960 22 982 1,219 70 1,289 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted aside from certain exceptions. We are still evaluating the impact of this update on our results of operations and financial position. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We are still evaluating the impact of this standard on our results of operations and financial position. |
Acquisition of Atlas Inc.
Acquisition of Atlas Inc. | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition of Atlas Inc. | Note 3. Acquisition of Atlas Paper Holdings, Inc. On November 16, 2015 (the “acquisition date”), we acquired Atlas Paper Holdings, Inc. and its subsidiaries (“Atlas Paper”), a manufacturer of a range of tissue products for the away-from-home and private-label at-home markets, including virgin and recycled products, covering economy, value and premium grades and operating two tissue mills and a recycling facility in Florida. The acquisition of Atlas Paper provides us with an immediate position in the North American consumer tissue market. The acquisition was strategic in nature as it allows us to integrate forward our U.S. market pulp assets. The following summarizes our preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date: (In millions) Accounts receivable $ 13 Inventories 12 Other current assets 1 Current assets 26 Fixed assets 46 Amortizable intangible assets (1) 46 Goodwill (2) 59 Other assets 1 Total assets acquired $ 178 Cash overdraft $ 2 Accounts payable and accrued liabilities 11 Current liabilities assumed 13 Deferred income tax liabilities 10 Total liabilities assumed $ 23 Net assets acquired $ 155 Fair value of consideration transferred 157 Recovery of consideration recorded in “Other current assets” in our Consolidated Balance Sheet as of December 31, 2015 (2 ) $ 155 (1) Amortizable intangible assets identified relate primarily to customer relationships, which have a weighted-average amortization period of 13 years . The fair value of the amortizable intangible assets was determined using the income approach through an excess earnings analysis discounted at a rate of 12% . (2) Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to Atlas Paper’s assembled workforce, expected synergies with certain of our existing assets and expected future cash flows. Goodwill was assigned to the tissue segment for the purposes of impairment testing in the future. Goodwill recognized is not deductible for tax purposes. The allocation of the purchase price to assets acquired and liabilities assumed was based upon a preliminary valuation for all items and may be subject to adjustment during the 12-month measurement period following the acquisition date. We began consolidating the results of operations, financial position and cash flows of Atlas Paper in our Consolidated Financial Statements as of the acquisition date. Atlas Paper’s results of operations are included in the tissue segment. The amount of Atlas Paper’s sales and net loss included in our Consolidated Statement of Operations for the year ended December 31, 2015, was $11 million and $1 million , respectively. The following unaudited pro forma information for the years ended December 31, 2015 and 2014 represents our results of operations as if the acquisition of Atlas Paper had occurred on January 1, 2014. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. (Unaudited, in millions except per share data) 2015 2014 Sales $ 3,734 $ 4,332 Net loss attributable to Resolute Forest Products Inc. (261 ) (282 ) Basic net loss per share attributable to Resolute Forest Products Inc. (2.82 ) (2.98 ) Diluted net loss per share attributable to Resolute Forest Products Inc. (2.82 ) (2.98 ) The unaudited pro forma net loss attributable to Resolute Forest Products Inc. for the year ended December 31, 2015 excludes $16 million of Atlas Paper’s transaction costs, loss on extinguishment of debt and other acquisition-related costs. It also excludes $3 million of our transaction costs associated with the acquisition, which were recorded in “Selling, general and administrative expenses” in our Consolidated Statements of Operations. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 4. Closure Costs, Impairment and Other Related Charges Closure costs, impairment and other related charges for the year ended December 31, 2015 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Catawba, South Carolina (1) $ 176 $ — $ — $ 176 Permanent closures: Paper mill in Iroquois Falls, Ontario — — 3 3 Paper machine in Clermont, Quebec — 2 — 2 $ 176 $ 2 $ 3 $ 181 (1) As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12% . This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. Closure costs, impairment and other related charges for the year ended December 31, 2014 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Pension Plan Curtailments Severance and Other Costs Total Permanent closures: Laurentide, Quebec paper mill $ — $ 97 $ (2 ) $ 20 $ 115 Paper mill in Iroquois Falls — 60 6 17 83 Paper machine in Catawba — 45 — 1 46 Pulp and paper mill in Fort Frances, Ontario — — — 12 12 Restructuring initiative: Recycling operations (1) 6 — — 1 7 Other 8 6 — 1 15 $ 14 $ 208 $ 4 $ 52 $ 278 (1) We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. Closure costs, impairment and other related charges for the year ended December 31, 2013 , were comprised of the following: (In millions) Impairment of Assets (2) Accelerated Depreciation Pension Plan Curtailments Severance and Other Costs Total Indefinite idlings and extended market-related outage: Paper machine in Calhoun, Tennessee (1) $ — $ 44 $ — $ 6 $ 50 Pulp mill and paper machines in Fort Frances — — 2 15 17 Permanent closure: Paper machine in Iroquois Falls — 2 — 1 3 Other 11 4 1 3 19 $ 11 $ 50 $ 3 $ 25 $ 89 (1) Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, “Other Income (Expense), Net .” (2) Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 5. Other Income (Expense), Net Other income (expense), net for the years ended December 31, 2015 , 2014 and 2013 was comprised of the following: (In millions) 2015 2014 2013 Foreign exchange loss $ (4 ) $ (32 ) $ (24 ) Write-down of equity method investment (1) — (61 ) — Net loss on extinguishment of debt (Note 12) — — (59 ) Gain on forgiveness of note payable (2) — — 12 Gain on liquidation settlement (3) — — 12 Miscellaneous income (expense) 8 10 (3 ) $ 4 $ (83 ) $ (62 ) (1) As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil , which was determined using the discounted cash flow method. (2) On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our Consolidated Financial Statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. (3) On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986 , as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 6. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the year ended December 31, 2015 was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2014 $ 94 $ (812 ) $ — $ (718 ) Other comprehensive income (loss) before reclassifications — 79 (4 ) 75 Amounts reclassified from accumulated other comprehensive loss (1)(2) (10 ) 66 — 56 Net current period other comprehensive (loss) income (10 ) 145 (4 ) 131 Balance as of December 31, 2015 $ 84 $ (667 ) $ (4 ) $ (587 ) (1) In 2015, we recorded a $9 million (net of tax of $5 million ) settlement charge to unamortized actuarial losses related to annuity purchases for certain inactive U.S. employees. For additional information, see Note 13, “Pension and Other Postretirement Benefit Plans ” to our Consolidated Financial Statements. (2) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2015 were comprised of the following: (In millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (16 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) 6 Income tax benefit (provision) $ (10 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 79 Cost of sales, excluding depreciation, amortization and distribution costs (1) Settlement loss 14 Cost of sales, excluding depreciation, amortization and distribution costs (1) (27 ) Income tax benefit (provision) $ 66 Net of tax Total Reclassifications $ 56 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 13, “Pension and Other Postretirement Benefit Plans .” |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 7. Net Loss Per Share The weighted-average number of stock options and equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) outstanding for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) 2015 2014 2013 Stock options 1.5 1.6 2.0 Stock unit awards 1.4 1.3 1.0 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 | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 8. Inventories, Net Inventories, net as of December 31, 2015 and 2014 , were comprised of the following: (In millions) 2015 2014 Raw materials and work in process $ 152 $ 160 Finished goods 179 192 Mill stores and other supplies 210 190 $ 541 $ 542 In 2014, we recorded charges of $17 million for write-downs of mill stores and other supplies as a result of the permanent closure of our Laurentide and Iroquois Falls paper mills and the permanent closure of a paper machine in Catawba. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Note 9. Fixed Assets, Net Fixed assets, net as of December 31, 2015 and 2014 were comprised of the following: (Dollars in millions) Range of Estimated Useful Lives in Years 2015 2014 Land and land improvements 5 – 10 $ 93 $ 93 Buildings 3 – 40 302 293 Machinery and equipment (1) 3 – 20 2,313 2,318 Hydroelectric power plants 10 – 40 287 286 Timberlands and timberlands improvements 3 – 20 99 91 Construction in progress (1) 146 102 3,240 3,183 Less: Accumulated depreciation (1,430 ) (1,198 ) $ 1,810 $ 1,985 (1) Internal-use software included in fixed assets, net as of December 31, 2015 and 2014 was as follows: (In millions) 2015 2014 Machinery and equipment $ 58 $ 31 Construction in progress 10 24 68 55 Less: Accumulated depreciation (16 ) (8 ) $ 52 $ 47 Depreciation expense related to internal-use software is estimated to be $8 million for each of the next four years and $4 million in 2020. |
Amortizable Intangible Assets,
Amortizable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Amortizable Intangible Assets, Net | Note 10. Amortizable Intangible Assets, Net Amortizable intangible assets, net as of December 31, 2015 and 2014 were comprised of the following: 2015 2014 (Dollars in millions) Estimated Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 4 $ 15 $ 19 $ 3 $ 16 Energy contracts 15 – 25 52 8 44 52 6 46 Customer relationships (2) 10 – 15 44 — 44 — — — Other (2) 2 — 2 — — — $ 117 $ 12 $ 105 $ 71 $ 9 $ 62 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases/agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. (2) In connection with our acquisition of Atlas Paper, we identified amortizable intangible assets primarily related to customer relationships. See Note 3, “Acquisition of Atlas Paper Holdings, Inc. ,” for additional information. Amortization expense related to amortizable intangible assets was $3 million, $4 million and $3 million, for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense related to amortizable intangible assets is estimated to be $7 million per year for each of the next five years. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 11. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2015 and 2014 were comprised of the following: (In millions) 2015 2014 Trade accounts payable $ 324 $ 361 Payroll, bonuses and severance payable 56 85 Accrued interest 5 5 Pension and OPEB obligations 17 20 Income and other taxes payable 5 13 Environmental liabilities 5 8 Other 24 26 $ 436 $ 518 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 12. Long-Term Debt Overview Long-term debt, including current portion, as of December 31, 2015 and 2014 , was comprised of the following: (In millions) 2015 2014 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (7 ) (7 ) Unamortized discount (4 ) (5 ) Total senior notes due 2023 589 588 Capital lease obligation 2 2 Total debt 591 590 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 590 $ 589 2023 Notes We issued $600 million in aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) on May 8, 2013, pursuant to an indenture as of that date (the “indenture”). Upon their issuance, the notes were recorded at their fair value of $594 million , which reflected a discount of $6 million that is being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes, resulting in an effective interest rate of 6% . Interest on the notes is payable semi-annually on May 15 and November 15, beginning November 15, 2013, until their maturity date of May 15, 2023 . In connection with the issuance of the notes, we incurred financing costs of approximately $9 million , which were deferred and recorded as a reduction of the notes. These deferred financing costs are being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes. On May 8, 2013, we used the proceeds of the sale of the 2023 Notes to purchase $496 million aggregate principal amount of the 10.25% senior secured notes due 2018 (the “2018 Notes”), or 99% of the outstanding amount, in connection with the tender offer and consent solicitation that expired on May 21, 2013. Aggregate consideration for the purchase was $584 million , including accrued and unpaid interest of $4 million . We then redeemed the remaining $5 million of principal amount of the 2018 Notes on October 8, 2013, at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. Accordingly, we recorded a loss on extinguishment of debt of $59 million (net of $25 million write-down of unamortized premium) in “ Other income (expense), net ” in our Consolidated Statement of Operations for the year ended December 31, 2013. The 2023 Notes are guaranteed by all of our existing and subsequently acquired or organized direct or indirect wholly-owned U.S. subsidiaries (the “Note Guarantors”) that guarantee the ABL Credit Facility (as defined and discussed below). The notes are unsecured and effectively junior to indebtedness under the ABL Credit Facility to the extent of the value of the collateral that secures the ABL Credit Facility and to future secured indebtedness. In addition, the notes are structurally subordinated to all existing and future liabilities of our subsidiaries that do not guarantee the notes. The terms of the indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur, assume or guarantee additional indebtedness; issue redeemable stock and preferred stock; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain debt; make loans and investments; incur liens; issue dividends, make loans or transfer assets from our subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; consolidate or merge with or into, or sell substantially all of our assets to, another person; enter into transactions with affiliates; and enter into new lines of business. At any time prior to May 15, 2017, we may redeem some or all of the 2023 Notes at a redemption price of 100% of the principal amount, plus accrued and unpaid interest and a “make-whole” premium. We may redeem up to 35% of the notes before May 15, 2016 using proceeds from certain equity offerings at a price of 105.875% of the principal amount. In the event of a change of control, each holder will have the right to require us to repurchase all or any part of that holder’s notes at a purchase price in cash equal to 101% of the aggregate principal amount of the notes plus any accrued and unpaid interest. If we sell certain of our assets and do not use the proceeds to pay down certain indebtedness, purchase additional assets or make capital expenditures, each as specified in the indenture, we must offer to purchase the notes at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest with the net cash proceeds from the asset sale. On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning May 15) Redemption Price 2017 104.406% 2018 102.938% 2019 101.469% 2020 and thereafter 100.000% In connection with the offering of the 2023 Notes, we and the Note Guarantors entered into a registration rights agreement, dated as of May 8, 2013, with the initial purchasers of the 2023 Notes. On May 27, 2014, in accordance with the registration rights agreement, we completed an exchange offer whereby we: (i) exchanged the 2023 Notes for registered notes (which we refer to as the “exchange notes”), with substantially the same terms as the 2023 Notes; and (ii) exchanged the guarantees related to the 2023 Notes for registered guarantees relating to the exchange notes, with substantially the same terms as the original guarantees. The fair value of the 2023 Notes was $440 million and $571 million as of December 31, 2015 and 2014 , respectively. The fair value was determined by reference to over-the-counter prices (Level 1). ABL Credit Facility On May 22, 2015, we entered into a new five -year credit agreement for a senior secured asset-based revolving credit facility (the “ABL Credit Facility”), with an aggregate lender commitment of up to $600 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. This facility replaces our previous $665 million senior secured asset-based revolving credit facility, originally dated as of December 9, 2010. The ABL Credit Facility will mature on May 22, 2020. The aggregate lender commitment under the facility includes a $60 million swingline sub-facility and a $200 million letter of credit sub-facility, and we may convert up to $50 million of the commitments under the facility to a first-in last-out facility (“FILO Facility”), subject to the consent of each converting lender. The ABL Credit Facility also provides for an uncommitted ability to increase the revolving credit facility by up to $500 million , subject to certain terms and conditions set forth in the agreement. Revolving loan (and letter of credit) availability under the credit agreement is subject to a borrowing base, which at any time is equal to the sum of (i) 85% of eligible accounts receivable (or 90% with respect to certain insured or letter of credit backed accounts or with accounts owed by investment grade obligors), plus (ii) the lesser of (A) 70% of the lesser of the cost or market value of eligible inventory or (B) 85% of the net orderly liquidation value of eligible inventory, plus (iii) 100% of the value of eligible cash and 95% of the value of permitted investments held in deposit accounts controlled solely by the administrative and collateral agent (the “agent”). The FILO Facility will be subject to a borrowing base, which at any time will be equal to (i) 5% of the eligible accounts receivable, plus (ii) 10% of the appraised net orderly value of the eligible inventory (subject to reduction to 5% over the term of the facility). Each borrowing base described above is subject to customary reserves and eligibility criteria, in the exercise of the agent’s reasonable discretion. The obligations under the credit agreement are guaranteed by certain material subsidiaries of the Company and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets. Borrowings under the credit agreement bear interest at a rate equal to the base rate, the London Interbank Offered Rate (“LIBOR”), or the Canadian banker’s acceptance (“BA”) rate, in each case plus an applicable margin. The applicable margin is between 0.00% and 0.75% with respect to base rate borrowings and between 1.00% and 1.75% with respect to LIBOR and Canadian BA borrowings, in each case based on availability under the credit facility and a leverage ratio. Loans outstanding under the FILO Facility bear interest at a rate that is 1.25% per annum higher than the interest rate payable on revolving loans not made under the FILO Facility. In addition to paying interest on outstanding principal under the credit agreement, we are required to pay fees of up to 0.30% in respect of unutilized commitments, as well as a fee in respect of outstanding letters of credit (equal to the applicable margin in respect of LIBOR and Canadian BA borrowings plus a fronting fee of 0.125% and certain administrative fees). The Company is able to voluntarily repay outstanding loans and reduce unused commitments, in each case, in whole or in part, at any time without premium or penalty. However, no loans under the FILO Facility can be repaid unless all other loans under the credit agreement are repaid first. We are required to repay outstanding loans that exceed the maximum availability then in effect. The credit agreement contains customary covenants for asset-based credit agreements of this type, including, among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness by the Company and its subsidiaries; (iii) restrictions on the existence or incurrence of liens by the Company and its subsidiaries; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on the Company and certain of its subsidiaries making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on transactions with affiliates; (viii) restrictions on amendments or modifications to the Canadian pension and benefit plans; (ix) restrictions on modifications to material indebtedness; and (x) a springing requirement for the Company to maintain a minimum consolidated fixed charge coverage ratio, as determined under the credit agreement, of 1.0 :1.0, anytime availability under the facility falls below the greater of $50 million or 10% of the maximum available borrowing amount for two consecutive business days. Subject to customary grace periods and notice requirements, the credit agreement also contains certain customary events of default. As of December 31, 2015 , we had $444 million of availability under the ABL Credit Facility, which was undrawn except for $34 million of ordinary course letters of credit. The carrying value of assets pledged as collateral for our total debt obligations was approximately $1.0 billion as of December 31, 2015 . Capital lease obligation We have a capital lease obligation for a warehouse, which can be renewed for 20 years at our option. Minimum payments are determined by an escalatory price clause. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | Note 13. Pension and Other Postretirement Benefit Plans We have multiple contributory and non-contributory defined benefit pension plans covering a significant portion of our U.S. and Canadian employees. Benefits are based on years of service and, depending on the plan, average compensation earned by employees either during their last years of employment or over their careers. Our plan assets and cash contributions to the plans have been sufficient to provide pension benefits to participants and meet the funding requirements of the Employee Retirement Income Security Act of 1974 in the United States as well as applicable legislation in Canada. In particular, the cash contributions required for our material registered Canadian pension plans are specified in the funding relief regulations with regards to the solvency deficits in the affected plans, as further discussed below under “Canadian pension funding.” We also sponsor a number of OPEB plans (e.g., health care and life insurance plans) for retirees at certain locations. In addition to the previously described plans, we have a number of defined contribution plans covering substantially all of our U.S. employees and a significant portion of our Canadian employees. Under the U.S. defined contribution plan, employees are allowed to make contributions that we match. In addition, under the U.S. defined contribution plan, most employees also receive an automatic company contribution, regardless of the employee’s contribution. The amount of the automatic company contribution, in most instances, is a percentage of the employee’s pay, determined based on age and years of service. The Canadian registered defined contribution plans provide for mandatory contributions by employees and by us, as well as opportunities for employees to make additional optional contributions and receive, in some cases, matching contributions on those optional amounts. Our expense for the defined contribution plans totaled $20 million in 2015 and $22 million in both 2014 and 2013 . Certain of the above plans are covered under collective bargaining agreements. The following tables include both our foreign (Canada and South Korea) and domestic plans. The assumptions used to measure the obligations of each of our foreign and domestic plans are not significantly different from each other, with the exception of the health care trend rates, which are presented below. The changes in our pension and OPEB obligations and plan assets for the years ended December 31, 2015 and 2014 and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2015 and 2014 were as follows: Pension Plans OPEB Plans (In millions) 2015 2014 2015 2014 Change in benefit obligations: Benefit obligations as of beginning of year $ 6,229 $ 6,004 $ 210 $ 310 Service cost 23 26 1 1 Interest cost 225 274 8 11 Actuarial (gain) loss (140 ) 788 (11 ) 10 Participant contributions 7 11 2 4 Plan amendments — — — (91 ) Curtailments — 4 — — Settlements (65 ) (5 ) — — Benefits paid (410 ) (440 ) (15 ) (23 ) Effect of foreign currency exchange rate changes (801 ) (433 ) (21 ) (12 ) Benefit obligations as of end of year 5,068 6,229 174 210 Change in plan assets: Fair value of plan assets as of beginning of year 4,808 5,013 — — Actual return on plan assets 224 450 — — Employer contributions 123 142 13 19 Participant contributions 7 11 2 4 Settlements (65 ) (5 ) — — Benefits paid (410 ) (440 ) (15 ) (23 ) Effect of foreign currency exchange rate changes (638 ) (363 ) — — Fair value of plan assets as of end of year 4,049 4,808 — — Funded status as of end of year $ (1,019 ) $ (1,421 ) $ (174 ) $ (210 ) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 10 $ 5 $ — $ — Accounts payable and accrued liabilities (3 ) (4 ) (14 ) (16 ) Pension and OPEB obligations (1,026 ) (1,422 ) (160 ) (194 ) Net obligations recognized $ (1,019 ) $ (1,421 ) $ (174 ) $ (210 ) The total benefit obligations and the total fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $4,642 million and $3,613 million , respectively, as of December 31, 2015 , and were $5,947 million and $4,521 million , respectively, as of December 31, 2014 . The total accumulated benefit obligations and the total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $4,555 million and $3,583 million , respectively, as of December 31, 2015 , and were $5,765 million and $4,417 million , respectively, as of December 31, 2014 . The total accumulated benefit obligations for all pension plans were $5,007 million and $6,150 million as of December 31, 2015 and 2014 , respectively. Plan amendments In 2014, we modified our U.S. OPEB plan, whereby unionized participants, upon reaching Medicare eligibility, will be provided comparable Medicare coverage via a Medicare Exchange program, effective January 1, 2015. This plan amendment resulted in a prior service credit of $91 million . Components of net periodic benefit cost The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Pension Plans OPEB Plans (In millions) 2015 2014 2013 2015 2014 2013 Service cost $ 23 $ 26 $ 33 $ 1 $ 1 $ 3 Interest cost 225 274 274 8 11 16 Expected return on plan assets (260 ) (300 ) (308 ) — — — Amortization of prior service credits (2 ) (2 ) (2 ) (14 ) (11 ) (1 ) Amortization of actuarial losses (gains) 84 9 25 (5 ) (4 ) (2 ) Net periodic benefit cost before special events 70 7 22 (10 ) (3 ) 16 Curtailments and settlements 14 4 3 — — — $ 84 $ 11 $ 25 $ (10 ) $ (3 ) $ 16 The prior service credits and the actuarial gains and losses are amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations, over the expected average remaining service lifetime or the average future lifetime, as applicable, of the respective plans. We estimate that $48 million of actuarial losses and $15 million of prior service credits will be amortized from accumulated other comprehensive loss into our Consolidated Statements of Operations in 2016 . Curtailments and settlements In 2015, we recorded a settlement charge related to annuity purchases for certain inactive U.S. employees. The cost of this settlement was included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statement of Operations for the year ended December 31, 2015. In 2014, we recorded net charges for curtailments related to the permanent closure of our Laurentide and Iroquois Falls paper mills (eliminating approximately 470 positions and resulting in the curtailment of two of our pension plans). The net costs of these curtailments were included in “Closure costs, impairment, and other related charges” in our Consolidated Statement of Operations for the year ended December 31, 2014. In 2013, we recorded charges for curtailments primarily related to an extended period of market-related outage at our Fort Frances paper mill, which was permanently closed on May 6, 2014, resulting in the elimination of approximately 150 positions. The cost of this curtailment was included in “Closure costs, impairment, and other related charges” in our Consolidated Statement of Operations for the year ended December 31, 2013. Assumptions used to determine benefit obligations and net periodic benefit cost The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 were as follows: Pension Plans OPEB Plans 2015 2014 2013 2015 2014 2013 Benefit obligations: Discount rate 4.2 % 4.0 % 4.9 % 4.4 % 4.0 % 5.0 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 4.0 % 4.9 % 4.3 % 4.1 % 5.0 % 4.2 % Expected return on assets 6.3 % 6.5 % 6.3 % Rate of compensation increase 2.5 % 2.5 % 2.5 % The discount rate for our domestic and foreign plans was determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. The discount rate reflects the single rate that produces the same discounted values as the value of the theoretical bond portfolio. In determining the expected return on assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. In determining the rate of compensation increase, we reviewed historical salary increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with our employees and the outlook for our industry. In determining the life expectancy rate of our domestic and foreign plans, we used the most-recent actuarially-determined mortality tables and improvement scales. For the foreign plans, the mortality tables were adjusted with the result of our historical mortality experience study. The rates used are consistent with our future expectations of life expectancy for the employees who participate in our pension and OPEB plans. The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2015 and 2014 were as follows: 2015 2014 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.2 % 4.4 % 7.2 % 4.4 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 3.8 % 4.5 % 3.8 % Year that the rate reaches the ultimate trend rate 2028 2033 2028 2033 For the health care cost trend rates, we considered historical trends for these costs, actual experience of the plans, recently enacted health care legislation as well as future expectations. Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2015 OPEB obligation and costs for our domestic and foreign plans: 1% Increase 1% Decrease (In millions, except percentages) Domestic Plans Foreign Plans Domestic Plans Foreign Plans OPEB obligation $ 3 5 % $ 6 5 % $ (3 ) (5 )% $ (5 ) (5 )% Service and interest costs $ — 6 % $ — 6 % $ — (5 )% $ — (5 )% Fair value of plan assets The fair value of plan assets held by our pension plans as of December 31, 2015 was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 587 $ 587 $ — $ — Non-U.S. companies 626 626 — — Debt securities: Corporate and government securities 2,243 274 1,969 — Asset-backed securities 97 — 97 — Cash and cash equivalents 191 191 — — Accrued interest and dividends 36 — 36 — Total before investments measured at NAV $ 3,780 $ 1,678 $ 2,102 $ — Investments measured at NAV 269 $ 4,049 The fair value of plan assets held by our pension plans as of December 31, 2014 was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 678 $ 678 $ — $ — Non-U.S. companies 723 723 — — Debt securities: Corporate and government securities 2,665 494 2,171 — Asset-backed securities 110 — 110 — Bank loans/foreign annuities 4 — — 4 Cash and cash equivalents 197 197 — — Accrued interest and dividends 42 — 42 — Total before investments measured at NAV $ 4,419 $ 2,092 $ 2,323 $ 4 Investments measured at NAV 389 $ 4,808 Equity securities include large-cap, mid-cap and small-cap publicly-traded companies mainly located in the United States, Canada and other developed countries, as well as commingled equity funds invested in the same types of securities. The fair value of the equity securities is determined based on quoted market prices (Level 1). Debt securities include corporate bonds of U.S. and Canadian companies from diversified industries, bonds and Treasuries issued by the U.S. government and the Canadian federal and provincial governments, asset-backed securities and commingled fixed income funds invested in these same types of securities. The fair value of the debt securities is determined based on quoted market prices (Level 1), market-corroborated inputs such as matrix prices, yield curves and indices (Level 2). Bank loan investments are primarily located in the U.S. The fair value of bank loans is determined based on the mid-point of the bid and ask price points (Level 3). The fair value of accrued interest and dividends is determined based on market-corroborated inputs such as declared dividends and stated interest rates (Level 2). Investments measured at NAV are excluded from the fair value hierarchy tables. These investments are commingled funds, composed of either debt securities, equity securities or real estate investments, where the corresponding NAV per share is equal to the total net assets divided by the total number of shares. The changes in Level 3 pension plan assets for the years ended December 31, 2015 and 2014 were as follows: (In millions) Bank Loans / Foreign Annuities Balance as of December 31, 2013 $ 40 Unrealized losses relating to assets held as of December 31, 2014 (2 ) Realized gains 2 Purchases 11 Sales (44 ) Effect of foreign currency exchange rate changes (3 ) Balance as of December 31, 2014 4 Sales (4 ) Balance as of December 31, 2015 $ — Long-term strategy and objective Our investment strategy and objective is to maximize the long-term rate of return on our plan assets within an acceptable level of risk in order to meet our current and future obligations to pay benefits to qualifying employees and their beneficiaries while minimizing and stabilizing pension benefit costs and contributions. One way we accomplish this objective is to diversify our plan investments. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, experienced third-party investment management firms with complementary investment styles and philosophies to implement these allocations. Risk is further managed by reviewing our investment policies at least annually and monitoring our fund managers at least quarterly for compliance with mandates and performance measures. A series of permitted and prohibited investments are listed in our respective investment policies, which are provided to our fund managers. The use of derivative financial instruments for speculative purposes and investments in the equity or debt securities of Resolute Forest Products and its affiliates are prohibited. We have established a target asset allocation and an allowable range from such target asset allocation for our plans based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical returns, prospective capital market returns, forecasted benefit payments and the forecasted timing of those payments. The targeted asset allocation of the plan assets is designed to hedge the change in the pension liabilities resulting from fluctuations in the discount rate by investing in debt and other securities, while also generating excess returns required to reduce the unfunded pension deficit by investing in equity securities with higher potential returns. The targeted asset allocation of the plan assets is 50% equity securities, with an allowable range of 30% to 60% , and 50% debt and other securities, with an allowable range of 40% to 70% , including up to 5% in short-term instruments required for near-term liquidity needs. Approximately 60% of the equity securities are targeted to be invested in the U.S. and Canada, with the balance in other developed and emerging countries. Substantially all of the debt securities are targeted to be invested in the U.S. and Canada. The asset allocation for each plan is reviewed periodically and rebalanced toward the targeted asset mix when the fair value of the investments within an asset class falls outside the predetermined range. Expected benefit payments and future contributions As of December 31, 2015 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2016 $ 344 $ 14 2017 345 13 2018 343 13 2019 342 12 2020 339 12 2021 - 2025 1,638 56 (1) Benefit payments are expected be paid from the plans’ net assets. We expect our 2016 pension contributions (excluding contributions to our defined contribution plans) to be approximately $142 million , including pension contributions of Cdn $150 million ( $110 million , based on the exchange rate in effect on December 31, 2015 ) related to our Canadian plans. Patient Protection and Affordable Care Act In March 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was enacted, potentially impacting our cost to provide healthcare benefits to eligible active and retired employees. The PPACA has both short-term and long-term implications on benefit plan standards. Implementation of this legislation began in 2010 and is expected to continue in phases from 2011 through 2020. We have analyzed this legislation to determine: (i) the impact of the required plan standard changes on our employee healthcare plans, (ii) the effect of the excise tax on high cost healthcare plans and (iii) the resulting costs. The impact, for those changes that were currently estimable, was not material to our results of operations. In 2013, PPACA also introduced the health insurance exchange system to facilitate the purchase of state health insurance. Individuals may purchase insurance from a set of government standardized plans offering federal subsidies. In light of this new arrangement, we decided to transfer post‑Medicare coverage via a Medicare Exchange program starting in 2014 for U.S. non-unionized employees and in 2015 for U.S. unionized employees. Canadian pension funding Funding relief measures The funding of our material Canadian registered pension plans, which we refer to as the “affected plans,” representing 67% of our unfunded pension obligations as of December 31, 2015 , is governed by regulations specific to us, adopted by the provinces of Ontario and Quebec. We refer to these regulations, the effect of which will lapse in 2020, as the “funding relief regulations.” As amended, the funding relief regulations provide that our aggregate annual contribution in respect of the solvency deficits in the affected plans for each year until 2020 is limited to a Cdn $80 million basic contribution and a supplemental contribution, beginning in 2016, if the plans’ aggregate solvency ratio is more than 2% below the target specified in the regulations for the preceding year, subject to certain conditions. The supplemental contributions essentially prevent payments of benefits from further depleting the plans’ solvency ratio. The first such supplemental contribution is capped at Cdn $25 million . Any supplemental contribution payable in respect of any subsequent year would be payable over a three -year period. Since prevailing interest rates in Canada remained at low levels, the solvency ratio in the affected plans is more than 2% below the target specified in the regulations as of December 31, 2015 . As a result, we will be required to make a supplemental contribution up to the capped amount of Cdn $25 million in 2016. Should a plan move to surplus before the funding relief regulations expire in 2020, it will cease to be subject to the regulations. After 2020, the funding rules in place at the time will apply to any remaining deficit. We are permitted to exit the funding relief regulations of either province earlier than 2020, by providing a notice to that effect to the applicable province on December 31 of any year. Our exit from such regulations would take effect for the year following the date of notice. If we elect to exit the funding relief regulations in either province, our pension plans in such province would become subject to the pension plan funding regime otherwise applicable to pension plans in that province. Our principal Canadian operating subsidiary entered into an agreement (the “2015 agreement”) with the Government of Quebec, effective as of December 9, 2015, to renew certain undertakings originally made in 2010 in connection with funding relief regulations applicable to our material Canadian registered pension plans in the province of Quebec. The original undertakings agreed with the Government of Quebec were applicable until December 9, 2015, with a commitment to re-evaluate after the end of the initial term. A comparable undertaking entered into with the Government of Ontario in 2010, expired in December 2015. Subject to certain exceptions, the 2015 agreement renews the following prior undertakings to Quebec: • abide by the compensation plan detailed in the Plans of Reorganization (as defined in Note 16, “Share Capital – Common stock”) with respect to salaries, bonuses and severance; • direct at least 60% of the maintenance and value-creation investments earmarked for our Canadian pulp and paper operations to projects in Quebec; • maintain our head office and the then-current related functions in Quebec; and • make an additional solvency deficit reduction contribution to its Quebec pension plans of Cdn $75, payable over four years, for each metric ton of capacity reduced in Quebec, in the event of downtime of more than six consecutive months or nine cumulative months over a period of 18 months; The 2015 agreement effectively terminates the following undertakings, as of December 9, 2015: • the prohibition on the payment of dividends by our Canadian subsidiary at any time when the weighted average solvency ratio of the Quebec pension plans is less than 80%; • the requirement to invest a minimum of Cdn $75 million in strategic projects in Quebec over a five-year period; and • the obligation to create a diversification fund by contributing Cdn $2 million per year for five years for the benefit of the municipalities and workers in the Quebec operating regions. The 2015 agreement provides that the undertakings will remain in effect for so long as the Quebec funding relief regulations continue to apply to us, except that either we or the Government of Quebec may, subject to certain conditions, request a re-evaluation of our undertakings in the 2015 agreement should we continue to remain under the funding relief regulations. Concerning the original 2010 undertaking to make an additional solvency deficit reduction contribution for capacity reductions in Quebec or Ontario, it was determined that no additional contribution would be made in respect of any capacity reduction in Quebec before April 13, 2013. The extent of the application of the undertaking in respect of our Ontario capacity reductions that occurred while the Ontario undertaking remained in effect has yet to be settled. The undertaking with Ontario expired in December 2015. As a result of this undertaking to the provinces, we made additional contributions to the affected plans of Cdn $19 million in 2015, and we expect we will be required to make additional contributions of approximately Cdn $20 million for each of the next three years for past capacity reductions. Neither the 2015 agreement, nor the expiration of the Ontario undertaking, eliminate obligations already incurred under the original 2010 undertakings, including, but not limited to, obligations in respect of additional solvency deficit reduction contributions for past capacity reductions in Quebec or Ontario. As originally adopted, the funding relief regulations provided that corrective measures would be required if the aggregate solvency ratio in the affected plans fell below a prescribed level under the targets specified by the regulations as of December 31 in any year through 2014. This requirement was definitively removed in 2013, but under the Ontario regulations, the corresponding 2011 and 2012 amounts in respect of Ontario plans (Cdn $110 million in the aggregate) have been deferred to after the expiration of the funding relief regulations in 2020, and will then be payable over five years in equal monthly installments starting on December 31, 2021, but only up to the elimination of the then remaining deficit, if any. Solvency deficit The requirement to make supplemental contributions is based in part on the aggregate solvency ratio of the affected plans. The aggregate solvency ratio calculation is based on a number of factors and assumptions, including the accrued benefits to be provided by the plans, interest rate levels, membership data and demographic experience. The assumptions used in the solvency calculation are materially different from the assumptions used to arrive at net pension and OPEB obligations for purposes of our Consolidated Financial Statements. Under Canadian actuarial rules for solvency determinations, the liabilities are calculated on the assumption that the plans are terminated at the measurement date (each December 31 for the affected plans), and the liabilities are discounted primarily using a specified annuity purchase rate, which is that day’s spot interest rate on government securities in Canada plus a prescribed margin. By contrast, for purposes of our Consolidated Financial Statements, the discount rate is determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. As of December 31, 2015 , a 1% decrease in the discount rate for solvency purposes would result in an approximate Cdn $450 million ( $320 million , based on the exchange rate in effect on December 31, 2015 ) increase in the solvency deficit. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes Loss before income taxes by taxing jurisdiction for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) 2015 2014 2013 United States $ (355 ) $ (221 ) $ (168 ) Foreign 99 (83 ) 53 $ (256 ) $ (304 ) $ (115 ) The income tax benefit (provision) for the years ended December 31, 2015 , 2014 and 2013 was comprised of the following: (In millions) 2015 2014 2013 U.S. Federal and State: Current $ 4 $ (4 ) $ — Deferred 32 6 (504 ) 36 2 (504 ) Foreign: Current — (2 ) (1 ) Deferred (35 ) 30 (19 ) (35 ) 28 (20 ) Total: Current 4 (6 ) (1 ) Deferred (3 ) 36 (523 ) $ 1 $ 30 $ (524 ) The income tax benefit (provision) attributable to loss before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the years ended December 31, 2015 , 2014 and 2013 as a result of the following: (In millions) 2015 2014 2013 Loss before income taxes $ (256 ) $ (304 ) $ (115 ) Income tax benefit (provision): Expected income tax benefit 90 106 40 Changes resulting from: Valuation allowance (1) (109 ) (51 ) (572 ) Foreign exchange (20 ) (17 ) (4 ) Research and development tax incentives 1 1 2 State income taxes, net of federal income tax benefit 12 5 3 Foreign tax rate differences 8 (8 ) 4 Effect of change in tax rates (2) 18 — — Other, net 1 (6 ) 3 $ 1 $ 30 $ (524 ) (1) During 2015, we recorded a net increase in our valuation allowance of $109 million primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. During 2014, we recorded a net increase in our valuation allowance of $51 million , primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets, partly offset by an income tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary in 2014. During 2013, we recorded a net increase in the valuation allowance of $572 million , most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. (2) In 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. Deferred income taxes At each reporting period, we assess whether it is more likely than not that the deferred income tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results and prudent and feasible tax planning strategies. The carrying value of our deferred income tax assets reflects our expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits. In 2013, following the assessment of our ability to realize the deferred income tax assets of our U.S. operations, we concluded that existing negative evidence outweighed positive evidence and that a full valuation allowance against our net deferred income tax assets was required. The cumulative loss of our U.S. operations limited our ability to consider other subjective positive evidence, such as projections of future earnings. As a result, for the year ended December 31, 2013, we recorded a charge in order to establish a full valuation allowance against our net U.S. deferred income tax assets. For both the years ended December 31, 2015 and December 31, 2014, negative evidence still outweighed positive evidence and we maintained a full valuation allowance against our net U.S. deferred income tax assets. A valuation allowance does not reduce our underlying tax attributes, nor hinders our ability to use them in the future. The weight of positive evidence, which included a review of historical cumulative earnings and our expected future performance, resulted in the conclusion by management that valuation allowances were not required for our deferred income tax assets in Canada, as they were determined to be more likely than not to be realized. During 2014, Fibrek Holding Inc., a Canadian wholly-owned subsidiary, emerged from a three -year cumulative loss position, primarily due to improved profitability over the preceding two years . Considering its recent earnings history and positive outlook, we determined that a valuation allowance on the net deferred income tax assets was no longer required as of December 31, 2014, and a tax benefit was recorded as a result of the reversal of the valuation allowance. Deferred income taxes as of December 31, 2015 and 2014 were comprised of the following: (In millions) 2015 2014 Fixed assets $ (81 ) $ (191 ) Deferred gains (21 ) — Other liabilities (9 ) (13 ) Deferred income tax liabilities (111 ) (204 ) Fixed assets 489 591 Pension and OPEB plans 359 480 Ordinary loss carryforwards 773 767 Capital loss carryforwards (1) 12 3 Research and development expense pool 177 204 Tax credit carryforwards 103 109 Other assets 43 91 Deferred income tax assets 1,956 2,245 Valuation allowance (865 ) (755 ) Net deferred income tax assets $ 980 $ 1,286 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 982 $ 1,289 Deferred income tax liabilities (2 ) (3 ) Net deferred income tax assets $ 980 $ 1,286 (1) During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. The balance of tax attributes and their dates of expiration as of December 31, 2015 were as follows: (In millions) Related Year of Expiration Ordinary loss carryforwards: U.S. Federal ordinary loss carryforwards of $1,882 $ 659 (1 ) 2021 – 2035 U.S. State ordinary loss carryforwards of $1,663 69 (1 ) 2016 – 2035 Canadian Federal and provincial (excluding Quebec) ordinary loss carryforwards of $79 14 2025 – 2035 Quebec ordinary loss carryforwards of $62 7 2025 – 2032 Other ordinary loss carryforwards 24 2019 – 2025 $ 773 Capital loss carryforwards: Canadian capital loss carryforwards of $42 12 Indefinite $ 12 Research and development expense pool: Canadian Federal and provincial (excluding Quebec) research and development expense pool of $615 $ 103 Indefinite Quebec research and development expense pool of $752 74 Indefinite $ 177 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 91 2021 – 2036 U.S. State tax credit carryforwards 12 (1 ) 2016 – 2030 $ 103 (1) As of December 31, 2015, we had a full valuation allowance against our U.S. operations net deferred income tax assets. Our U.S. federal net operating loss carryforwards are subject to the U.S. Internal Revenue Code of 1986, as amended § 382 (“IRC § 382”) limitation, resulting from a previous ownership change. We do not expect that IRC § 382 would limit the utilization of our available U.S. federal net operating loss carryforwards prior to their expiration. We consider our foreign earnings to be permanently invested. Accordingly, we do not currently provide for the additional United States and foreign income taxes that would become payable upon remittance of undistributed earnings of foreign subsidiaries. The cumulative undistributed earnings of these subsidiaries as of December 31, 2015 are not material. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. Deferred tax charge As a result of a gain on an intercompany asset transfer in connection with an operating company realignment, a $38 million income tax provision was deferred and recorded in “Other assets” in our Consolidated Balance Sheet as of December 31, 2015. This deferred tax charge will be amortized, as the underlying assets are consumed or sold to an unrelated party, in “ Income tax benefit (provision) ” in our Consolidated Statements of Operations. Unrecognized tax benefits The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2015 and 2014 : (In millions) 2015 2014 Beginning of year $ 109 $ 81 Increase (decrease) in unrecognized tax benefits resulting from: Positions taken in the current period 2 38 Expirations of statute limitations (2 ) — Settlements with taxing authorities (1 ) (4 ) Change in Canadian foreign exchange rate (11 ) (6 ) End of year $ 97 $ 109 We recognize interest and penalties accrued on unrecognized tax benefits as components of the income tax provision. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $56 million . In the normal course of business, we are subject to audits from federal, state, provincial and other tax authorities. U.S. federal tax returns for 2012 and future years, as well as Canadian tax returns for 2010 and future years remain subject to examination by tax authorities. We do not expect a significant change to the amount of unrecognized tax benefits over the next twelve months. However, any adjustments arising from certain ongoing examinations by taxing authorities could alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions, and these adjustments could differ from the amount accrued. We believe that taxes accrued in our Consolidated Balance Sheets fairly represent the amount of income taxes to be settled or realized in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies Legal matters We become involved in various legal proceedings and other disputes in the normal course of business, including matters related to contracts, commercial disputes, taxes, environmental issues, activists’ damages, employment and workers’ compensation claims, Aboriginal claims and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of December 31, 2015 , will not have a material adverse effect on our Consolidated Financial Statements. On February 26, 2015, a countervailing duty petition was filed with the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“Trade Commission”) by certain U.S. supercalendered (“SC”) paper producers requesting the U.S. government to impose countervailing duties on Canadian-origin SC paper exported to the U.S. market. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of SC paper to the U.S. and was selected as a mandatory respondent to be individually investigated by Commerce. On August 3, 2015, Commerce assigned a preliminary subsidy rate of 2.04% to our SC paper produced at our Canadian mills. On October 15, 2015, Commerce issued a final determination and increased the subsidy rate applicable to our Canadian-produced SC paper to 17.87% . In December 2015, the Trade Commission ruled that exports of SC paper from Canada to the U.S. have caused or threatened to cause material injury to the U.S. SC paper industry and Commerce issued its final order on the basis of the 17.87% rate. As a result, since October 20, 2015, we have been required to make cash deposits at the 17.87% subsidy rate for estimated and projected countervailing duties on SC papers we import to the U.S. from our Canadian mills. We will be required to continue making cash deposits at that rate until Commerce sets a countervailing duty rate in an administrative review, which may not be finalized until December of 2017, or possibly later. Based on our current operating parameters, the cash deposits could be as high as $25 million per year. To the extent the countervailing duty rate set by Commerce is lower than 17.87% , we will recover excess deposits, plus interest. If the countervailing duty rate set by Commerce is at or above 17.87% , the deposits and any deficiency will be converted into actual countervailing duties. We are not presently able to determine the ultimate resolution of this matter, but we believe it is not probable that we will be assessed with significant countervailing duties. Accordingly, no contingent loss was recorded in respect of this petition in our Consolidated Statement of Operations for the year ended December 31, 2015. 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 Quebec 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 ( $10 million , based on the exchange rate in effect on December 31, 2015 ) for the eventual payment of those claims. The hearing in this matter is expected to begin in 2019. On June 12, 2012, we filed a motion for directives with the Quebec Superior Court, the Canadian court with jurisdiction in the creditor protection proceedings from which AbitibiBowater Inc. (our predecessor entity) and all but one of its affiliates emerged in 2010 (the “Creditor Protection Proceedings”), seeking an order to prevent pension regulators in each of Quebec, 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 13, “Pension and Other Postretirement Benefit Plans – Canadian pension funding,” and we contend, among other things, that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA Reorganization Plan (as defined in Note 16, “Share Capital – Common stock”) 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 ( $110 million , based on the exchange rate in effect on December 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 or national, 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 $12 million and $18 million of environmental liabilities as of December 31, 2015 and 2014 , respectively, primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions 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 liabilities” in our Consolidated Balance Sheets. We have also recorded $23 million and $22 million of asset retirement obligations as of December 31, 2015 and 2014 , respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and accrued liabilities” or “Other 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 ( $17 million , based on the exchange rate in effect on December 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 May 31, 2016. We announced the permanent closure of the mill in the second quarter of 2014 and have been exploring a number of opportunities for the mill. We are not presently able to determine the outcome of this process, but we currently believe that we could reach an acceptable outcome for the MNRF within the time limit prescribed. Accordingly, we have recorded no contingent liability in respect of this notice in our Consolidated Balance Sheet as of December 31, 2015 . |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Share Capital | Note 16. Share Capital Overview We are authorized under our certificate of incorporation, as amended and restated, to issue up to 200 million shares of capital stock, consisting of: (i) 190 million shares of common stock, par value $0.001 per share and (ii) 10 million shares of preferred stock, par value $0.001 per share. Preferred stock As of December 31, 2015 and 2014 , no preferred shares were issued and outstanding. Common stock In 2010 and pursuant to the Plans of Reorganization, we issued an aggregate of 97,134,954 shares of common stock for the benefit of unsecured creditors of the debtors in the Creditor Protection Proceedings and also reserved 9,020,960 shares for issuance under the predecessor to the Resolute Forest Products Equity Incentive Plan (as amended, the “Incentive Plan”). As of December 31, 2012, 93,117,807 shares of common stock had been distributed to the holders of unsecured claims as of the applicable distribution record date under the Plans of Reorganization on account of allowed unsecured creditor claims. During the year ended December 31, 2013, an additional 3,693,601 shares of common stock had been distributed to the holders of unsecured claims from the share reserve established for disputed claims, leaving no remaining unresolved claim. Because the aggregate of allowed claims against certain Chapter 11 of the United States Bankruptcy Code, as amended (“Chapter 11”) debtors was resolved for less than was originally reserved when the disputed claim share reserve was established, and because certain of the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) debtors had no creditor, the remaining 276,662 shares and 46,884 shares, respectively, unallocated under the respective Plan of Reorganization were transferred to us in 2013 and accounted as treasury stock. The debtors’ Chapter 11 cases are closed; the CCAA proceedings have yet to be closed as the monitor is continuing to assist in certain post-emergence court proceedings. Consistent with the confirmation order in respect of our Chapter 11 Reorganization Plan and applicable law, we relied on section 1145(a)(1) of Chapter 11 to exempt the issuance of these shares of common stock and their distribution to unsecured creditors from the registration requirements of the Securities Act of 1933 (as amended, the “Securities Act”). We refer to the Chapter 11 Debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code together with the CCAA debtors’ CCAA Plan of Reorganization and Compromise , in each case as amended and including all exhibits and supplements thereto, as the “Plans of Reorganization”, each as a “Plan of Reorganization”, and individually as the “Chapter 11 Reorganization Plan” and the “CCAA Reorganization Plan,” respectively. Treasury stock On May 28, 2015, our board of directors authorized a $50 million increase to our existing $100 million share repurchase program, which was originally launched in May of 2012. During the year ended December 31, 2015, we repurchased an additional 5.5 million shares, at a cost of $59 million . There remains $24 million under the program. In 2013, we also transferred 323,546 shares of common stock from the disputed share reserve, as described above. Dividends We did not declare or pay any dividends on our common stock during the years ended December 31, 2015 , 2014 and 2013 . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 17. Share-Based Compensation Incentive Plan The Incentive Plan, which became effective in 2010 and is administered by the human resources and compensation/nominating and governance committee of the board of directors, provides for the grant of equity-based awards, including stock options, stock appreciation rights, restricted stock, RSUs, DSUs, PSUs (collectively, “stock incentive awards”) and cash incentive awards to certain of our officers, directors, employees, consultants and advisors. As discussed in Note 16, “Share Capital ,” we have been authorized to issue stock incentive awards for up to 9 million shares under the Incentive Plan. As of December 31, 2015 , approximately 4 million shares were available for issuance. Employees who retire (upon meeting certain age and service criteria) at least six months after the grant date and prior to the end of the vesting period will be allowed to continue vesting in their awards after retirement in accordance with the normal vesting schedule. The requisite service periods for the stock incentive awards are reduced on an individual basis, as necessary, to reflect the grantee’s individual retirement eligibility date. For the years ended December 31, 2015 , 2014 and 2013 , share-based compensation expense was $12 million ( no tax benefit), $6 million ( no tax benefit) and $8 million ( no tax benefit), respectively. As of December 31, 2015 , there was approximately $16 million of unrecognized compensation cost, which is expected to be recognized over a remaining service period of three years . All of our incentive awards pursuant to the Incentive Plan were accounted for as equity-classified, service-based awards. Stock options In 2015 and 2014, we did not grant any stock options. In 2013, we made grants of 692,759 stock options to our non-employee directors and to certain employees using the following weighted-average assumptions: 2013 Exercise price $ 15.66 Fair value $ 7.65 Expected dividend yield — Expected volatility 50.0 % Risk-free interest rate 1.8 % Expected life in years 6.25 The stock options become exercisable ratably over a period of four years and, unless terminated earlier in accordance with their terms, expire 10 years from the date of grant. New shares of our common stock are issued upon the exercise of a stock option. In certain cases, we withhold shares in respect of option costs and applicable taxes. We calculated the grant-date fair value of the stock options granted in 2013 using the Black-Scholes option pricing model. The payment of dividends is subject to certain restrictions under the 2023 Notes indenture and the credit agreement that governs the ABL Credit Facility; therefore, we assumed an expected dividend yield of zero . Due to the short trading history of our common stock, we estimated the expected volatility based on the historical volatility of a peer group within our industry measured over a term approximating the expected life of the options. We estimated the risk-free interest rate based on a zero-coupon U.S. Treasury instrument with a remaining term approximating the expected life of the options. Historical exercise data attributable to stock incentive awards granted after our common stock began publicly trading is limited; therefore, we used the simplified method permitted by Staff Accounting Bulletin Topic 14 to estimate the expected life of the options. Under this approach, the expected life is presumed to be the midpoint between the vesting date and the end of the contractual term. The activity of outstanding stock options for the year ended December 31, 2015 was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2014 1,583,941 $ 15.87 7.8 $ 4 Exercised (41,115 ) 13.18 Forfeited (16,317 ) 16.21 Expired (48,896 ) 21.55 Balance as of December 31, 2015 1,477,613 $ 15.76 6.8 $ — Exercisable as of December 31, 2015 983,081 $ 16.49 6.5 $ — The total intrinsic value of stock options exercised in 2015, 2014 and 2013 was less than $1 million, $2 million and less than $1 million, respectively. Restricted stock units and deferred stock units Under the Incentive Plan, each RSU and DSU granted provides the holder the right to receive one share of our common stock upon vesting. The awards vest ratably over a period of one year for directors and four years for employees. Awards to employees are settled upon vesting, while awards to directors are settled ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. New shares of our common stock are issued upon the settlement of a RSU or DSU issued. We withhold shares in respect of applicable taxes. The activity of nonvested RSUs and DSUs for the year ended December 31, 2015 was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2014 938,720 $ 15.91 Granted 885,761 7.94 Vested (374,936 ) 15.58 Forfeited (30,091 ) 15.53 Balance as of December 31, 2015 1,419,454 $ 11.03 There were 115,026 RSUs and DSUs granted to directors that vested but were not settled as of December 31, 2015. The weighted-average grant-date fair value of all RSUs and DSUs granted in 2014 and 2013 was $18.62 and $16.15 , respectively. The total fair value of RSUs and DSUs vested in 2015 , 2014 and 2013 was $3 million , $5 million and $3 million , respectively. Performance stock units In 2015 and 2014 , we made grants of PSUs to certain employees pursuant to the Incentive Plan. Each PSU provides the holder the right to receive one share of our common stock upon vesting, subject to a performance adjustment. The awards vest after a period of 40 months upon which they are settled. New shares of our common stock are issued upon the settlement of a PSU issued pursuant to the Incentive Plan. We withhold shares in respect of applicable taxes. The activity of nonvested PSUs for the year ended December 31, 2015 was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2014 294,761 $ 18.61 Granted 702,829 7.54 Forfeited (6,204 ) 18.61 Balance as of December 31, 2015 991,386 $ 10.76 The weighted-average grant-date fair value of all PSUs granted in 2014 was $18.61 . Deferred Compensation Plan In 2011, the board of directors adopted the Resolute Forest Products Outside Director Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows non-employee directors to surrender 50% or 100% of their cash fees in exchange for DSUs or RSUs, as applicable, based on the director’s country of residency. The number of awards issued pursuant to the Deferred Compensation Plan is based on 110% of the fees earned, resulting in a 10% premium incentive. Under the Deferred Compensation Plan, each RSU and DSU granted provides the holder the right to receive payment in cash in an amount equal to the fair market value of one share of our common stock upon vesting. The awards have a nonforfeitable right or vest ratably over a period of three years , as applicable, and are settled with cash ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. All of our outstanding stock incentive awards pursuant to the Deferred Compensation Plan were accounted for as liability awards. RSUs and DSUs outstanding under the Deferred Compensation Plan as of December 31, 2015 and 2014 were 79,020 and 49,868 , respectively. The total fair value of RSUs and DSUs vested in each of 2015, 2014 and 2013 was less than $1 million. |
Operating Leases and Purchase O
Operating Leases and Purchase Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases and Purchase Obligations | Note 18. Operating Leases and Purchase Obligations We lease office and manufacturing premises, and office equipment under operating leases for which total expense was $8 million in 2015 , $7 million in 2014 and $12 million in 2013 . In the normal course of business, we have also entered into various supply agreements, guarantees, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). As of December 31, 2015 , the future minimum rental payments under operating leases and commitments for purchase obligations were as follows: (In millions) Purchase Obligations (1) Operating Leases 2016 $ 119 $ 6 2017 91 5 2018 64 4 2019 50 4 2020 41 4 Thereafter 24 14 $ 389 $ 37 (1) Includes energy purchase obligations of $254 million through 2020 for certain of our pulp and paper mills. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19. Segment Information We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: market pulp, tissue, wood products, newsprint and specialty papers. 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 , acquisition-related costs, certain components of pension and OPEB costs and credits 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. In 2015, we changed our presentation of segment operating income to reallocate certain components of pension and OPEB costs, which consist of interest cost, expected return on plan assets, amortization of actuarial losses and gains and settlement losses, from the reportable segments to “corporate and other” in the segment presentation of operating income. Current service costs and amortization of prior service credits will continue to be allocated to the reportable segments. This approach is consistent with the indicators management uses internally to evaluate performance, including those used by our chief operating decision maker (the chief executive officer). Prior period amounts have been reclassified to conform to the 2015 presentation. In each of 2015 , 2014 and 2013 , no assets were identifiable by segment and reviewed by management. Information about certain segment data for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2015 $ 889 $ 11 $ 536 $ 1,105 $ 1,104 $ 3,645 $ — $ 3,645 2014 974 — 610 1,402 1,272 4,258 — 4,258 2013 1,053 — 569 1,473 1,366 4,461 — 4,461 Depreciation and amortization 2015 $ 53 $ 1 $ 37 $ 64 $ 71 $ 226 $ 11 $ 237 2014 53 — 33 69 82 237 6 243 2013 52 — 36 73 77 238 5 243 Operating income (loss) 2015 $ 76 $ (1 ) $ 2 $ (23 ) $ 29 $ 83 $ (302 ) $ (219 ) 2014 63 — 69 20 (19 ) 133 (307 ) (174 ) 2013 43 — 41 39 39 162 (164 ) (2 ) Capital expenditures 2015 $ 60 $ 41 $ 43 $ 10 $ 13 $ 167 $ 18 $ 185 2014 23 — 77 39 34 173 20 193 2013 40 — 31 57 17 145 16 161 (1) Market pulp sales excluded inter-segment sales of $20 million , $19 million and $17 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (2) Tissue capital expenditures of $41 million for the year ended December 31, 2015 consisted of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. (3) Wood sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million , $24 million and $18 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Sales are attributed to countries based on the location of the customer. No single customer, related or otherwise, accounted for 10% or more of our 2015 , 2014 or 2013 consolidated sales. No country in the “Other countries” group in the table below exceeded 2% of consolidated sales. Sales by country for the years ended December 31, 2015 , 2014 and 2013 were as follows: (In millions) 2015 2014 2013 United States $ 2,421 $ 2,809 $ 2,834 Foreign countries: Canada 476 540 546 Mexico 150 174 168 Brazil 70 107 122 Other countries 528 628 791 1,224 1,449 1,627 $ 3,645 $ 4,258 $ 4,461 Certain long-lived assets by country (comprised of fixed assets, net, water rights, net, energy contracts, net and other assets) as of December 31, 2015 and 2014 were as follows: (In millions) 2015 2014 United States $ 677 $ 791 Foreign countries: Canada 1,323 1,346 South Korea 22 24 1,345 1,370 $ 2,022 $ 2,161 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 20. Condensed Consolidating Financial Information The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act in connection with Resolute Forest Products Inc.’s 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (the “Guarantor Subsidiaries”). The 2023 Notes are not guaranteed by our foreign subsidiaries and our less than 100% owned U.S. subsidiaries (the “Non-guarantor Subsidiaries”). The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive Loss for the years ended December 31, 2015 , 2014 and 2013 , the Balance Sheets as of December 31, 2015 and 2014 , and the Statements of Cash Flows for the years ended December 31, 2015 , 2014 and 2013 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 Year Ended December 31, 2015 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,975 $ 2,223 $ (1,553 ) $ 3,645 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,780 1,601 (1,555 ) 2,826 Depreciation and amortization — 93 144 — 237 Distribution costs — 168 293 (1 ) 460 Selling, general and administrative expenses 19 55 86 — 160 Closure costs, impairment and other related charges — 176 5 — 181 Operating (loss) income (19 ) (297 ) 94 3 (219 ) Interest expense (75 ) — (12 ) 46 (41 ) Other income, net — 37 13 (46 ) 4 Equity in (loss) income of subsidiaries (163 ) 20 — 143 — (Loss) income before income taxes (257 ) (240 ) 95 146 (256 ) Income tax benefit (provision) — 36 (34 ) (1 ) 1 Net (loss) income including noncontrolling interests (257 ) (204 ) 61 145 (255 ) Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (257 ) $ (204 ) $ 59 $ 145 $ (257 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (126 ) $ (169 ) $ 155 $ 14 $ (126 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS For the Year Ended December 31, 2014 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 3,475 $ 2,807 $ (2,024 ) $ 4,258 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 3,225 2,036 (2,021 ) 3,240 Depreciation and amortization — 94 149 — 243 Distribution costs — 168 352 (2 ) 518 Selling, general and administrative expenses 17 46 92 — 155 Closure costs, impairment and other related charges — 51 227 — 278 Net gain on disposition of assets — — (2 ) — (2 ) Operating loss (17 ) (109 ) (47 ) (1 ) (174 ) Interest expense (71 ) (4 ) (8 ) 36 (47 ) Other expense, net (1 ) (20 ) (26 ) (36 ) (83 ) Equity in loss of subsidiaries (188 ) — — 188 — Loss before income taxes (277 ) (133 ) (81 ) 187 (304 ) Income tax benefit — 2 27 1 30 Net loss including noncontrolling interests (277 ) (131 ) (54 ) 188 (274 ) Net income attributable to noncontrolling interests — — (3 ) — (3 ) Net loss attributable to Resolute Forest Products Inc. $ (277 ) $ (131 ) $ (57 ) $ 188 $ (277 ) Comprehensive loss attributable to Resolute Forest Products Inc. $ (724 ) $ (250 ) $ (385 ) $ 635 $ (724 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2013 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Sales $ — $ 3,674 $ 2,956 $ (2,169 ) $ 4,461 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 3,356 2,247 (2,157 ) 3,446 Depreciation and amortization — 100 143 — 243 Distribution costs — 172 357 (8 ) 521 Selling, general and administrative expenses 18 47 101 — 166 Closure costs, impairment and other related charges — 61 28 — 89 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (62 ) 82 (4 ) (2 ) Interest expense (89 ) (4 ) (8 ) 50 (51 ) Other (expense) income, net (60 ) 66 (18 ) (50 ) (62 ) Equity in loss of subsidiaries (472 ) — — 472 — (Loss) income before income taxes (639 ) — 56 468 (115 ) Income tax provision — (564 ) (21 ) 61 (524 ) Net (loss) income including noncontrolling interests (639 ) (564 ) 35 529 (639 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to Resolute Forest Products Inc. $ (639 ) $ (564 ) $ 35 $ 529 $ (639 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (296 ) $ (346 ) $ 217 $ 129 $ (296 ) CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 13 $ 45 $ — $ 58 Accounts receivable, net — 322 137 — 459 Accounts receivable from affiliates — 421 272 (693 ) — Inventories, net — 257 290 (6 ) 541 Advance and interest receivable from parent — 62 — (62 ) — Notes and interest receivable from affiliates — 48 — (48 ) — Other current assets — 22 31 — 53 Total current assets — 1,145 775 (809 ) 1,111 Fixed assets, net — 629 1,181 — 1,810 Amortizable intangible assets, net — 46 59 — 105 Goodwill — 59 — — 59 Deferred income tax assets — — 981 1 982 Notes receivable from parent — 710 — (710 ) — Note receivable from affiliate — 105 — (105 ) — Investments in consolidated subsidiaries and affiliates 4,067 2,047 — (6,114 ) — Other assets — 48 105 — 153 Total assets $ 4,067 $ 4,789 $ 3,101 $ (7,737 ) $ 4,220 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 189 $ 242 $ — $ 436 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 433 260 — (693 ) — Advance and interest payable to subsidiaries 62 — — (62 ) — Notes and interest payable to affiliate — — 48 (48 ) — Total current liabilities 500 450 290 (803 ) 437 Long-term debt, net of current portion 589 1 — — 590 Notes payable to subsidiaries 710 — — (710 ) — Note payable to affiliate — — 105 (105 ) — Pension and other postretirement benefit obligations — 352 834 — 1,186 Deferred income tax liabilities — — 2 — 2 Other liabilities 1 24 35 — 60 Total liabilities 1,800 827 1,266 (1,618 ) 2,275 Total equity 2,267 3,962 1,835 (6,119 ) 1,945 Total liabilities and equity $ 4,067 $ 4,789 $ 3,101 $ (7,737 ) $ 4,220 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated 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 Note and interest receivable from parent — 287 — (287 ) — Notes receivable from affiliates — 318 — (318 ) — Other current assets — 20 26 — 46 Total current assets — 1,900 657 (1,093 ) 1,464 Fixed assets, net — 742 1,243 — 1,985 Amortizable intangible assets, net — — 62 — 62 Deferred income tax assets — — 1,287 2 1,289 Note receivable from parent — 388 — (388 ) — Investments in consolidated subsidiaries and affiliates 4,096 2,020 — (6,116 ) — Other assets — 49 65 — 114 Total assets $ 4,096 $ 5,099 $ 3,314 $ (7,595 ) $ 4,914 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 588 1 — — 589 Note payable to subsidiary 388 — — (388 ) — Pension and other postretirement benefit obligations — 414 1,202 — 1,616 Deferred income tax liabilities — — 3 — 3 Other liabilities 1 29 40 — 70 Total liabilities 1,655 731 1,883 (1,472 ) 2,797 Total equity 2,441 4,368 1,431 (6,123 ) 2,117 Total liabilities and equity $ 4,096 $ 5,099 $ 3,314 $ (7,595 ) $ 4,914 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by (used in) operating activities $ — $ 151 $ (13 ) $ — $ 138 Cash flows from investing activities: Cash invested in fixed assets — (101 ) (84 ) — (185 ) Acquisition of Atlas Paper, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duties cash deposits — (4 ) — — (4 ) Increase in deposit requirements for letters of credit, net — — (4 ) — (4 ) Investment in common stock of subsidiary — (234 ) — 234 — Advance to parent — (59 ) — 59 — Decrease of notes receivable from affiliates — 164 — (164 ) — Net cash used in investing activities — (393 ) (88 ) 129 (352 ) Cash flows from financing activities: Payments of financing and credit facility fees — (2 ) (1 ) — (3 ) Purchases of treasury stock (59 ) — — — (59 ) Issuance of common stock — — 234 (234 ) — Advance to subsidiary 59 — — (59 ) — Decrease of notes payable to affiliate — — (164 ) 164 — Net cash (used in) provided by financing activities — (2 ) 69 (129 ) (62 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net decrease in cash and cash equivalents — (244 ) (35 ) — (279 ) Cash and cash equivalents: Beginning of year — 257 80 — 337 End of year $ — $ 13 $ 45 $ — $ 58 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2014 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 144 $ 42 $ — $ 186 Cash flows from investing activities: Cash invested in fixed assets — (76 ) (117 ) — (193 ) Monetization of timber notes — 22 — — 22 Disposition of assets — 4 6 — 10 Decrease in restricted cash — — 1 — 1 Decrease in deposit requirements for letters of credit, net — — 1 — 1 Other investing activities, net — — (2 ) — (2 ) Net cash used in investing activities — (50 ) (111 ) — (161 ) Cash flows from financing activities: Dividend to noncontrolling interest — — (4 ) — (4 ) Payments of debt — (1 ) (1 ) — (2 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Net cash used in financing activities — (2 ) (5 ) — (7 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net increase (decrease) in cash and cash equivalents — 92 (77 ) — 15 Cash and cash equivalents: Beginning of year — 165 157 — 322 End of year $ — $ 257 $ 80 $ — $ 337 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2013 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash (used in) provided by operating activities $ (5 ) $ 41 $ 170 $ — $ 206 Cash flows from investing activities: Cash invested in fixed assets — (55 ) (106 ) — (161 ) Disposition of assets — — 4 — 4 Proceeds from insurance settlements — — 4 — 4 Decrease in restricted cash — — 8 — 8 Increase in deposit requirements for letters of credit, net — — (2 ) — (2 ) Other investing activities, net — — (4 ) — (4 ) Net cash used in investing activities — (55 ) (96 ) — (151 ) Cash flows from financing activities: Issuance of long-term debt 594 — — — 594 Premium paid on extinguishment of debt (84 ) — — — (84 ) Dividend to noncontrolling interest — — (2 ) — (2 ) Payments of debt (501 ) — (2 ) — (503 ) Payments of financing and credit facility fees (9 ) — — — (9 ) Contribution of capital from noncontrolling interest — 8 — — 8 Net cash provided by (used in) financing activities — 8 (4 ) — 4 Net (decrease) increase in cash and cash equivalents (5 ) (6 ) 70 — 59 Cash and cash equivalents: Beginning of year 5 171 87 — 263 End of year $ — $ 165 $ 157 $ — $ 322 |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Note 21. Quarterly Information (Unaudited) Year ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 920 $ 926 $ 905 $ 894 $ 3,645 Operating (loss) income (15 ) 16 6 (226 ) (219 ) Net loss attributable to Resolute Forest Products Inc. (33 ) (4 ) (6 ) (214 ) (257 ) Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.35 ) (0.04 ) (0.07 ) (2.39 ) (2.78 ) Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.35 ) (0.04 ) (0.07 ) (2.39 ) (2.78 ) Year ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 1,016 $ 1,091 $ 1,096 $ 1,055 $ 4,258 Operating loss (33 ) (8 ) (40 ) (93 ) (174 ) Net loss attributable to Resolute Forest Products Inc. (50 ) (2 ) (116 ) (109 ) (277 ) Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.53 ) (0.02 ) (1.23 ) (1.15 ) (2.93 ) Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.53 ) (0.02 ) (1.23 ) (1.15 ) (2.93 ) |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Financial statements | Financial statements We have prepared our Consolidated Financial Statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. |
Consolidation | Consolidation Our Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its controlled subsidiaries. All transactions and balances between these companies have been eliminated. |
Equity method investments | Equity method investments We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting. |
Use of estimates | Use of estimates In preparing our Consolidated Financial Statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (“OPEB”) plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. |
Accounts receivable | Accounts receivable Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. |
Fixed assets | Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” in our Consolidated Balance Sheets and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. |
Environmental costs | Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” or “ Other income (expense), net ” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. |
Amortizable intangible assets | Amortizable intangible assets Amortizable intangible assets are stated at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. |
Impairment of long-lived assets | Impairment of long-lived assets The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, net, amortizable intangible assets, net, and liabilities directly related to those assets (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell). Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. |
Goodwill | Goodwill Goodwill is not amortized and is evaluated every year, or more frequently, whenever indicators of potential impairment exist. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then an impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the impairment test. The first step of an impairment test is to compare the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. Using the income method to determine the fair value of a reporting unit, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in property, plant and equipment and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized. Fair value of goodwill is estimated in the same way as goodwill was determined at the date of the acquisition in a business combination, that is, the excess of the fair value of the reporting unit over the fair value of the identifiable net assets of the business. |
Income taxes | Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred tax assets related to operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We have not provided for U.S. income taxes on the undistributed earnings, if any, of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of the income tax expense. |
Pension and other postretirement benefit obligations | Pension and OPEB obligations For our defined benefit plans, we recognize an asset or a liability for pension and OPEB obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB. Amounts we contribute to our defined contribution plans are expensed as incurred. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value (other than those measured at net asset value (“NAV”) per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. |
Share-based compensation | Share-based compensation We amortize the fair value of our equity-based awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”), deferred stock units (“DSUs”) and performance stock units (“PSUs”) is determined based on the market price of a share of our common stock on the grant date. We estimate forfeitures of stock incentive awards and performance adjustments for our PSUs based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. Any excess tax benefit related to share-based compensation gets recorded in the additional paid-in capital (“APIC”) pool and is available to absorb future tax related deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we would record the excess as income tax expense in our Consolidated Statements of Operations. For each of the years ended December 31, 2015 , 2014 and 2013 , the balance of the APIC pool was nil . Any cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs, DSUs and PSUs that exceed the compensation cost recognized (excess tax benefits) are classified as financing cash flows. |
Revenue recognition | Revenue recognition Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills by either truck or rail. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. Revenue is recorded when risk of loss and title of the product passes to the customer. For sales with the terms free on board (“FOB”) shipping point, revenue is recorded when the product leaves the mill, whereas for sales transactions FOB destination, revenue is recorded when the product is delivered to the customer’s delivery site, when the title and risk of loss are transferred. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured. Sales of our other products (green power produced from renewable sources, wood chips and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Net (loss) income per share | Net loss per share We calculate basic net loss per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net loss by the weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the weighted-average number of outstanding common shares, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs). The incremental shares are calculated using the treasury stock method (stock options, RSUs, DSUs and PSUs). To calculate diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders, no adjustments to our basic weighted-average number of outstanding common shares are made, since the impact of potentially dilutive securities (such as stock options, RSUs, DSUs and PSUs) would be antidilutive. |
Translation | Translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported in “ Other income (expense), net ” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “ Accumulated other comprehensive loss .” |
Distribution costs | Distribution costs Distribution costs represent costs associated with handling finished goods and shipping products to customers. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations. |
New accounting pronouncements | New accounting pronouncements In February 2015, the 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 update is effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact our 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. In August 2015, the FASB also issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which allows debt issuance costs associated with line-of-credit arrangements to be presented as an asset. These updates are effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Other assets $ 160 $ (7 ) $ 153 $ 121 $ (7 ) $ 114 Long-term debt, net of current portion 597 (7 ) 590 596 (7 ) 589 In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This update is effective either retrospectively or prospectively for financial statements issued for fiscal years beginning after December 15, 2015, with early adoption permitted as of the beginning of an interim or annual reporting period. The adoption of this accounting guidance will not materially impact our financial position. In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which eliminates the requirement to categorize investments in the fair value hierarchy if the fair value is measured at NAV per share, or its equivalent, using the practical expedient in FASB ASC 820, “Fair Value Measurements and Disclosures.” This update is effective retrospectively for financial statements issued for fiscal years beginning after December 15, 2015. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015. The adoption of this accounting guidance modified the fair value hierarchy presentation of our pension plan assets in our Consolidated Financial Statements. In July 2015, the FASB approved a one-year deferral of ASU 2014-09, “Revenue from Contracts with Customers,” deferring the effective date to fiscal years beginning after December 15, 2017. Early adoption is permitted for financial statements issued for fiscal years beginning after December 15, 2016. We are still evaluating the impact of this standard on our results of operations or financial position. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires that inventory within the scope of this update, including inventory stated at average cost, be measured at the lower of cost and net realizable value. This update is effective prospectively for financial statements issued for fiscal years beginning after December 15, 2016. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The adoption of this ASU did not have a material impact on our financial position. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified as non-current in a classified balance sheet. This update is effective either retrospectively or prospectively for financial statements issued for fiscal years beginning after December 15, 2016. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU effective as of October 1, 2015, with retrospective application. The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Deferred income tax assets (current) $ 22 $ (22 ) $ — $ 70 $ (70 ) $ — Deferred income tax assets (non-current) 960 22 982 1,219 70 1,289 In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted aside from certain exceptions. We are still evaluating the impact of this update on our results of operations and financial position. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We are still evaluating the impact of this standard on our results of operations and financial position. |
Organization and Basis of Pre32
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of less than wholly-owned consolidated subsidiaries | All consolidated subsidiaries are wholly-owned as of December 31, 2015 with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Ownership Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% Donohue Malbaie Inc. 51% NYT Capital Inc. 49% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncement, Early Adoption [Table Text Block] | The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Deferred income tax assets (current) $ 22 $ (22 ) $ — $ 70 $ (70 ) $ — Deferred income tax assets (non-current) 960 22 982 1,219 70 1,289 The effect of this change in accounting policy on our Consolidated Balance Sheets as of December 31, 2015 and 2014 was as follows: 2015 2014 (In millions) Before Accounting Policy Change Adjustment As Reported As Previously Reported Effect of Change As Adjusted Other assets $ 160 $ (7 ) $ 153 $ 121 $ (7 ) $ 114 Long-term debt, net of current portion 597 (7 ) 590 596 (7 ) 589 |
Acquisition of Atlas Inc. Acqui
Acquisition of Atlas Inc. Acquisition of Atlas Inc. (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following summarizes our preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date: (In millions) Accounts receivable $ 13 Inventories 12 Other current assets 1 Current assets 26 Fixed assets 46 Amortizable intangible assets (1) 46 Goodwill (2) 59 Other assets 1 Total assets acquired $ 178 Cash overdraft $ 2 Accounts payable and accrued liabilities 11 Current liabilities assumed 13 Deferred income tax liabilities 10 Total liabilities assumed $ 23 Net assets acquired $ 155 Fair value of consideration transferred 157 Recovery of consideration recorded in “Other current assets” in our Consolidated Balance Sheet as of December 31, 2015 (2 ) $ 155 (1) Amortizable intangible assets identified relate primarily to customer relationships, which have a weighted-average amortization period of 13 years . The fair value of the amortizable intangible assets was determined using the income approach through an excess earnings analysis discounted at a rate of 12% . (2) Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to Atlas Paper’s assembled workforce, expected synergies with certain of our existing assets and expected future cash flows. Goodwill was assigned to the tissue segment for the purposes of impairment testing in the future. Goodwill recognized is not deductible for tax purposes. |
Pro Forma Information | The following unaudited pro forma information for the years ended December 31, 2015 and 2014 represents our results of operations as if the acquisition of Atlas Paper had occurred on January 1, 2014. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. (Unaudited, in millions except per share data) 2015 2014 Sales $ 3,734 $ 4,332 Net loss attributable to Resolute Forest Products Inc. (261 ) (282 ) Basic net loss per share attributable to Resolute Forest Products Inc. (2.82 ) (2.98 ) Diluted net loss per share attributable to Resolute Forest Products Inc. (2.82 ) (2.98 ) |
Closure Costs, Impairment and35
Closure Costs, Impairment and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the year ended December 31, 2015 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Catawba, South Carolina (1) $ 176 $ — $ — $ 176 Permanent closures: Paper mill in Iroquois Falls, Ontario — — 3 3 Paper machine in Clermont, Quebec — 2 — 2 $ 176 $ 2 $ 3 $ 181 (1) As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12% . This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. Closure costs, impairment and other related charges for the year ended December 31, 2014 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Pension Plan Curtailments Severance and Other Costs Total Permanent closures: Laurentide, Quebec paper mill $ — $ 97 $ (2 ) $ 20 $ 115 Paper mill in Iroquois Falls — 60 6 17 83 Paper machine in Catawba — 45 — 1 46 Pulp and paper mill in Fort Frances, Ontario — — — 12 12 Restructuring initiative: Recycling operations (1) 6 — — 1 7 Other 8 6 — 1 15 $ 14 $ 208 $ 4 $ 52 $ 278 (1) We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. Closure costs, impairment and other related charges for the year ended December 31, 2013 , were comprised of the following: (In millions) Impairment of Assets (2) Accelerated Depreciation Pension Plan Curtailments Severance and Other Costs Total Indefinite idlings and extended market-related outage: Paper machine in Calhoun, Tennessee (1) $ — $ 44 $ — $ 6 $ 50 Pulp mill and paper machines in Fort Frances — — 2 15 17 Permanent closure: Paper machine in Iroquois Falls — 2 — 1 3 Other 11 4 1 3 19 $ 11 $ 50 $ 3 $ 25 $ 89 (1) Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, “Other Income (Expense), Net .” (2) Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net for the years ended December 31, 2015 , 2014 and 2013 was comprised of the following: (In millions) 2015 2014 2013 Foreign exchange loss $ (4 ) $ (32 ) $ (24 ) Write-down of equity method investment (1) — (61 ) — Net loss on extinguishment of debt (Note 12) — — (59 ) Gain on forgiveness of note payable (2) — — 12 Gain on liquidation settlement (3) — — 12 Miscellaneous income (expense) 8 10 (3 ) $ 4 $ (83 ) $ (62 ) (1) As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil , which was determined using the discounted cash flow method. (2) On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our Consolidated Financial Statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. (3) On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986 , as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 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 year ended December 31, 2015 was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2014 $ 94 $ (812 ) $ — $ (718 ) Other comprehensive income (loss) before reclassifications — 79 (4 ) 75 Amounts reclassified from accumulated other comprehensive loss (1)(2) (10 ) 66 — 56 Net current period other comprehensive (loss) income (10 ) 145 (4 ) 131 Balance as of December 31, 2015 $ 84 $ (667 ) $ (4 ) $ (587 ) (1) In 2015, we recorded a $9 million (net of tax of $5 million ) settlement charge to unamortized actuarial losses related to annuity purchases for certain inactive U.S. employees. For additional information, see Note 13, “Pension and Other Postretirement Benefit Plans ” to our Consolidated Financial Statements. (2) 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 year ended December 31, 2015 were comprised of the following: (In millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (16 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) 6 Income tax benefit (provision) $ (10 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 79 Cost of sales, excluding depreciation, amortization and distribution costs (1) Settlement loss 14 Cost of sales, excluding depreciation, amortization and distribution costs (1) (27 ) Income tax benefit (provision) $ 66 Net of tax Total Reclassifications $ 56 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 13, “Pension and Other Postretirement Benefit Plans .” |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 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 RSUs, DSUs and PSUs (collectively, “stock unit awards”) outstanding for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) 2015 2014 2013 Stock options 1.5 1.6 2.0 Stock unit awards 1.4 1.3 1.0 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of December 31, 2015 and 2014 , were comprised of the following: (In millions) 2015 2014 Raw materials and work in process $ 152 $ 160 Finished goods 179 192 Mill stores and other supplies 210 190 $ 541 $ 542 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net as of December 31, 2015 and 2014 were comprised of the following: (Dollars in millions) Range of Estimated Useful Lives in Years 2015 2014 Land and land improvements 5 – 10 $ 93 $ 93 Buildings 3 – 40 302 293 Machinery and equipment (1) 3 – 20 2,313 2,318 Hydroelectric power plants 10 – 40 287 286 Timberlands and timberlands improvements 3 – 20 99 91 Construction in progress (1) 146 102 3,240 3,183 Less: Accumulated depreciation (1,430 ) (1,198 ) $ 1,810 $ 1,985 (1) Internal-use software included in fixed assets, net as of December 31, 2015 and 2014 was as follows: (In millions) 2015 2014 Machinery and equipment $ 58 $ 31 Construction in progress 10 24 68 55 Less: Accumulated depreciation (16 ) (8 ) $ 52 $ 47 Depreciation expense related to internal-use software is estimated to be $8 million for each of the next four years and $4 million in 2020. |
Amortizable Intangible Assets41
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Summary of Amortizable Intangible Assets, Net | Amortizable intangible assets, net as of December 31, 2015 and 2014 were comprised of the following: 2015 2014 (Dollars in millions) Estimated Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 4 $ 15 $ 19 $ 3 $ 16 Energy contracts 15 – 25 52 8 44 52 6 46 Customer relationships (2) 10 – 15 44 — 44 — — — Other (2) 2 — 2 — — — $ 117 $ 12 $ 105 $ 71 $ 9 $ 62 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases/agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. (2) In connection with our acquisition of Atlas Paper, we identified amortizable intangible assets primarily related to customer relationships. See Note 3, “Acquisition of Atlas Paper Holdings, Inc. ,” for additional information. |
Accounts Payable and Accrued 42
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of December 31, 2015 and 2014 were comprised of the following: (In millions) 2015 2014 Trade accounts payable $ 324 $ 361 Payroll, bonuses and severance payable 56 85 Accrued interest 5 5 Pension and OPEB obligations 17 20 Income and other taxes payable 5 13 Environmental liabilities 5 8 Other 24 26 $ 436 $ 518 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of December 31, 2015 and 2014 , was comprised of the following: (In millions) 2015 2014 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (7 ) (7 ) Unamortized discount (4 ) (5 ) Total senior notes due 2023 589 588 Capital lease obligation 2 2 Total debt 591 590 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 590 $ 589 |
Debt Redemption Schedule | On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning May 15) Redemption Price 2017 104.406% 2018 102.938% 2019 101.469% 2020 and thereafter 100.000% |
Pension and Other Postretirem44
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Changes in Benefit Obligations | Pension Plans OPEB Plans (In millions) 2015 2014 2015 2014 Change in benefit obligations: Benefit obligations as of beginning of year $ 6,229 $ 6,004 $ 210 $ 310 Service cost 23 26 1 1 Interest cost 225 274 8 11 Actuarial (gain) loss (140 ) 788 (11 ) 10 Participant contributions 7 11 2 4 Plan amendments — — — (91 ) Curtailments — 4 — — Settlements (65 ) (5 ) — — Benefits paid (410 ) (440 ) (15 ) (23 ) Effect of foreign currency exchange rate changes (801 ) (433 ) (21 ) (12 ) Benefit obligations as of end of year 5,068 6,229 174 210 |
Summary of Change in Plan Assets | Change in plan assets: Fair value of plan assets as of beginning of year 4,808 5,013 — — Actual return on plan assets 224 450 — — Employer contributions 123 142 13 19 Participant contributions 7 11 2 4 Settlements (65 ) (5 ) — — Benefits paid (410 ) (440 ) (15 ) (23 ) Effect of foreign currency exchange rate changes (638 ) (363 ) — — Fair value of plan assets as of end of year 4,049 4,808 — — Funded status as of end of year $ (1,019 ) $ (1,421 ) $ (174 ) $ (210 ) |
Summary of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 10 $ 5 $ — $ — Accounts payable and accrued liabilities (3 ) (4 ) (14 ) (16 ) Pension and OPEB obligations (1,026 ) (1,422 ) (160 ) (194 ) Net obligations recognized $ (1,019 ) $ (1,421 ) $ (174 ) $ (210 ) |
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2015 , 2014 and 2013 , were as follows: Pension Plans OPEB Plans (In millions) 2015 2014 2013 2015 2014 2013 Service cost $ 23 $ 26 $ 33 $ 1 $ 1 $ 3 Interest cost 225 274 274 8 11 16 Expected return on plan assets (260 ) (300 ) (308 ) — — — Amortization of prior service credits (2 ) (2 ) (2 ) (14 ) (11 ) (1 ) Amortization of actuarial losses (gains) 84 9 25 (5 ) (4 ) (2 ) Net periodic benefit cost before special events 70 7 22 (10 ) (3 ) 16 Curtailments and settlements 14 4 3 — — — $ 84 $ 11 $ 25 $ (10 ) $ (3 ) $ 16 |
Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 were as follows: Pension Plans OPEB Plans 2015 2014 2013 2015 2014 2013 Benefit obligations: Discount rate 4.2 % 4.0 % 4.9 % 4.4 % 4.0 % 5.0 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 4.0 % 4.9 % 4.3 % 4.1 % 5.0 % 4.2 % Expected return on assets 6.3 % 6.5 % 6.3 % Rate of compensation increase 2.5 % 2.5 % 2.5 % |
Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations | The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2015 and 2014 were as follows: 2015 2014 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.2 % 4.4 % 7.2 % 4.4 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 3.8 % 4.5 % 3.8 % Year that the rate reaches the ultimate trend rate 2028 2033 2028 2033 |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate | Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2015 OPEB obligation and costs for our domestic and foreign plans: 1% Increase 1% Decrease (In millions, except percentages) Domestic Plans Foreign Plans Domestic Plans Foreign Plans OPEB obligation $ 3 5 % $ 6 5 % $ (3 ) (5 )% $ (5 ) (5 )% Service and interest costs $ — 6 % $ — 6 % $ — (5 )% $ — (5 )% |
Fair Value of Plan Assets Held by Pension Plans | The fair value of plan assets held by our pension plans as of December 31, 2015 was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 587 $ 587 $ — $ — Non-U.S. companies 626 626 — — Debt securities: Corporate and government securities 2,243 274 1,969 — Asset-backed securities 97 — 97 — Cash and cash equivalents 191 191 — — Accrued interest and dividends 36 — 36 — Total before investments measured at NAV $ 3,780 $ 1,678 $ 2,102 $ — Investments measured at NAV 269 $ 4,049 The fair value of plan assets held by our pension plans as of December 31, 2014 was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 678 $ 678 $ — $ — Non-U.S. companies 723 723 — — Debt securities: Corporate and government securities 2,665 494 2,171 — Asset-backed securities 110 — 110 — Bank loans/foreign annuities 4 — — 4 Cash and cash equivalents 197 197 — — Accrued interest and dividends 42 — 42 — Total before investments measured at NAV $ 4,419 $ 2,092 $ 2,323 $ 4 Investments measured at NAV 389 $ 4,808 |
Changes in Level 3 Pension Plan Assets | The changes in Level 3 pension plan assets for the years ended December 31, 2015 and 2014 were as follows: (In millions) Bank Loans / Foreign Annuities Balance as of December 31, 2013 $ 40 Unrealized losses relating to assets held as of December 31, 2014 (2 ) Realized gains 2 Purchases 11 Sales (44 ) Effect of foreign currency exchange rate changes (3 ) Balance as of December 31, 2014 4 Sales (4 ) Balance as of December 31, 2015 $ — |
Expected Benefit Payments and Future Contributions | As of December 31, 2015 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2016 $ 344 $ 14 2017 345 13 2018 343 13 2019 342 12 2020 339 12 2021 - 2025 1,638 56 (1) Benefit payments are expected be paid from the plans’ net assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Taxing Jurisdiction | Loss before income taxes by taxing jurisdiction for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) 2015 2014 2013 United States $ (355 ) $ (221 ) $ (168 ) Foreign 99 (83 ) 53 $ (256 ) $ (304 ) $ (115 ) |
Income Tax (Provision) Benefit | The income tax benefit (provision) for the years ended December 31, 2015 , 2014 and 2013 was comprised of the following: (In millions) 2015 2014 2013 U.S. Federal and State: Current $ 4 $ (4 ) $ — Deferred 32 6 (504 ) 36 2 (504 ) Foreign: Current — (2 ) (1 ) Deferred (35 ) 30 (19 ) (35 ) 28 (20 ) Total: Current 4 (6 ) (1 ) Deferred (3 ) 36 (523 ) $ 1 $ 30 $ (524 ) |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax benefit (provision) attributable to loss before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the years ended December 31, 2015 , 2014 and 2013 as a result of the following: (In millions) 2015 2014 2013 Loss before income taxes $ (256 ) $ (304 ) $ (115 ) Income tax benefit (provision): Expected income tax benefit 90 106 40 Changes resulting from: Valuation allowance (1) (109 ) (51 ) (572 ) Foreign exchange (20 ) (17 ) (4 ) Research and development tax incentives 1 1 2 State income taxes, net of federal income tax benefit 12 5 3 Foreign tax rate differences 8 (8 ) 4 Effect of change in tax rates (2) 18 — — Other, net 1 (6 ) 3 $ 1 $ 30 $ (524 ) (1) During 2015, we recorded a net increase in our valuation allowance of $109 million primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. During 2014, we recorded a net increase in our valuation allowance of $51 million , primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets, partly offset by an income tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary in 2014. During 2013, we recorded a net increase in the valuation allowance of $572 million , most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. (2) In 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. |
Deferred Income Taxes | Deferred income taxes as of December 31, 2015 and 2014 were comprised of the following: (In millions) 2015 2014 Fixed assets $ (81 ) $ (191 ) Deferred gains (21 ) — Other liabilities (9 ) (13 ) Deferred income tax liabilities (111 ) (204 ) Fixed assets 489 591 Pension and OPEB plans 359 480 Ordinary loss carryforwards 773 767 Capital loss carryforwards (1) 12 3 Research and development expense pool 177 204 Tax credit carryforwards 103 109 Other assets 43 91 Deferred income tax assets 1,956 2,245 Valuation allowance (865 ) (755 ) Net deferred income tax assets $ 980 $ 1,286 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 982 $ 1,289 Deferred income tax liabilities (2 ) (3 ) Net deferred income tax assets $ 980 $ 1,286 (1) During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. |
Balance of Tax Attributes and Their Dates of Expiration | The balance of tax attributes and their dates of expiration as of December 31, 2015 were as follows: (In millions) Related Year of Expiration Ordinary loss carryforwards: U.S. Federal ordinary loss carryforwards of $1,882 $ 659 (1 ) 2021 – 2035 U.S. State ordinary loss carryforwards of $1,663 69 (1 ) 2016 – 2035 Canadian Federal and provincial (excluding Quebec) ordinary loss carryforwards of $79 14 2025 – 2035 Quebec ordinary loss carryforwards of $62 7 2025 – 2032 Other ordinary loss carryforwards 24 2019 – 2025 $ 773 Capital loss carryforwards: Canadian capital loss carryforwards of $42 12 Indefinite $ 12 Research and development expense pool: Canadian Federal and provincial (excluding Quebec) research and development expense pool of $615 $ 103 Indefinite Quebec research and development expense pool of $752 74 Indefinite $ 177 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 91 2021 – 2036 U.S. State tax credit carryforwards 12 (1 ) 2016 – 2030 $ 103 (1) As of December 31, 2015, we had a full valuation allowance against our U.S. operations net deferred income tax assets. |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2015 and 2014 : (In millions) 2015 2014 Beginning of year $ 109 $ 81 Increase (decrease) in unrecognized tax benefits resulting from: Positions taken in the current period 2 38 Expirations of statute limitations (2 ) — Settlements with taxing authorities (1 ) (4 ) Change in Canadian foreign exchange rate (11 ) (6 ) End of year $ 97 $ 109 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Assumptions | In 2015 and 2014, we did not grant any stock options. In 2013, we made grants of 692,759 stock options to our non-employee directors and to certain employees using the following weighted-average assumptions: 2013 Exercise price $ 15.66 Fair value $ 7.65 Expected dividend yield — Expected volatility 50.0 % Risk-free interest rate 1.8 % Expected life in years 6.25 |
Stock Options Activity | The activity of outstanding stock options for the year ended December 31, 2015 was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Aggregate Intrinsic Value (in millions) Balance as of December 31, 2014 1,583,941 $ 15.87 7.8 $ 4 Exercised (41,115 ) 13.18 Forfeited (16,317 ) 16.21 Expired (48,896 ) 21.55 Balance as of December 31, 2015 1,477,613 $ 15.76 6.8 $ — Exercisable as of December 31, 2015 983,081 $ 16.49 6.5 $ — |
RSU and DSU Activity | The activity of nonvested RSUs and DSUs for the year ended December 31, 2015 was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2014 938,720 $ 15.91 Granted 885,761 7.94 Vested (374,936 ) 15.58 Forfeited (30,091 ) 15.53 Balance as of December 31, 2015 1,419,454 $ 11.03 |
PSU Activity | The activity of nonvested PSUs for the year ended December 31, 2015 was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2014 294,761 $ 18.61 Granted 702,829 7.54 Forfeited (6,204 ) 18.61 Balance as of December 31, 2015 991,386 $ 10.76 |
Operating Leases and Purchase47
Operating Leases and Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations | As of December 31, 2015 , the future minimum rental payments under operating leases and commitments for purchase obligations were as follows: (In millions) Purchase Obligations (1) Operating Leases 2016 $ 119 $ 6 2017 91 5 2018 64 4 2019 50 4 2020 41 4 Thereafter 24 14 $ 389 $ 37 (1) Includes energy purchase obligations of $254 million through 2020 for certain of our pulp and paper mills. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the years ended December 31, 2015 , 2014 and 2013 was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2015 $ 889 $ 11 $ 536 $ 1,105 $ 1,104 $ 3,645 $ — $ 3,645 2014 974 — 610 1,402 1,272 4,258 — 4,258 2013 1,053 — 569 1,473 1,366 4,461 — 4,461 Depreciation and amortization 2015 $ 53 $ 1 $ 37 $ 64 $ 71 $ 226 $ 11 $ 237 2014 53 — 33 69 82 237 6 243 2013 52 — 36 73 77 238 5 243 Operating income (loss) 2015 $ 76 $ (1 ) $ 2 $ (23 ) $ 29 $ 83 $ (302 ) $ (219 ) 2014 63 — 69 20 (19 ) 133 (307 ) (174 ) 2013 43 — 41 39 39 162 (164 ) (2 ) Capital expenditures 2015 $ 60 $ 41 $ 43 $ 10 $ 13 $ 167 $ 18 $ 185 2014 23 — 77 39 34 173 20 193 2013 40 — 31 57 17 145 16 161 (1) Market pulp sales excluded inter-segment sales of $20 million , $19 million and $17 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. (2) Tissue capital expenditures of $41 million for the year ended December 31, 2015 consisted of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. |
Summary of Sales by Country | Sales by country for the years ended December 31, 2015 , 2014 and 2013 were as follows: (In millions) 2015 2014 2013 United States $ 2,421 $ 2,809 $ 2,834 Foreign countries: Canada 476 540 546 Mexico 150 174 168 Brazil 70 107 122 Other countries 528 628 791 1,224 1,449 1,627 $ 3,645 $ 4,258 $ 4,461 |
Summary of Long-Lived Assets, Excluding Intangible Assets and Deferred Income Tax Assets, by Country | Certain long-lived assets by country (comprised of fixed assets, net, water rights, net, energy contracts, net and other assets) as of December 31, 2015 and 2014 were as follows: (In millions) 2015 2014 United States $ 677 $ 791 Foreign countries: Canada 1,323 1,346 South Korea 22 24 1,345 1,370 $ 2,022 $ 2,161 |
Condensed Consolidating Finan49
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2015 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,975 $ 2,223 $ (1,553 ) $ 3,645 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,780 1,601 (1,555 ) 2,826 Depreciation and amortization — 93 144 — 237 Distribution costs — 168 293 (1 ) 460 Selling, general and administrative expenses 19 55 86 — 160 Closure costs, impairment and other related charges — 176 5 — 181 Operating (loss) income (19 ) (297 ) 94 3 (219 ) Interest expense (75 ) — (12 ) 46 (41 ) Other income, net — 37 13 (46 ) 4 Equity in (loss) income of subsidiaries (163 ) 20 — 143 — (Loss) income before income taxes (257 ) (240 ) 95 146 (256 ) Income tax benefit (provision) — 36 (34 ) (1 ) 1 Net (loss) income including noncontrolling interests (257 ) (204 ) 61 145 (255 ) Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (257 ) $ (204 ) $ 59 $ 145 $ (257 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (126 ) $ (169 ) $ 155 $ 14 $ (126 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS For the Year Ended December 31, 2014 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 3,475 $ 2,807 $ (2,024 ) $ 4,258 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 3,225 2,036 (2,021 ) 3,240 Depreciation and amortization — 94 149 — 243 Distribution costs — 168 352 (2 ) 518 Selling, general and administrative expenses 17 46 92 — 155 Closure costs, impairment and other related charges — 51 227 — 278 Net gain on disposition of assets — — (2 ) — (2 ) Operating loss (17 ) (109 ) (47 ) (1 ) (174 ) Interest expense (71 ) (4 ) (8 ) 36 (47 ) Other expense, net (1 ) (20 ) (26 ) (36 ) (83 ) Equity in loss of subsidiaries (188 ) — — 188 — Loss before income taxes (277 ) (133 ) (81 ) 187 (304 ) Income tax benefit — 2 27 1 30 Net loss including noncontrolling interests (277 ) (131 ) (54 ) 188 (274 ) Net income attributable to noncontrolling interests — — (3 ) — (3 ) Net loss attributable to Resolute Forest Products Inc. $ (277 ) $ (131 ) $ (57 ) $ 188 $ (277 ) Comprehensive loss attributable to Resolute Forest Products Inc. $ (724 ) $ (250 ) $ (385 ) $ 635 $ (724 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Year Ended December 31, 2013 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Sales $ — $ 3,674 $ 2,956 $ (2,169 ) $ 4,461 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 3,356 2,247 (2,157 ) 3,446 Depreciation and amortization — 100 143 — 243 Distribution costs — 172 357 (8 ) 521 Selling, general and administrative expenses 18 47 101 — 166 Closure costs, impairment and other related charges — 61 28 — 89 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (62 ) 82 (4 ) (2 ) Interest expense (89 ) (4 ) (8 ) 50 (51 ) Other (expense) income, net (60 ) 66 (18 ) (50 ) (62 ) Equity in loss of subsidiaries (472 ) — — 472 — (Loss) income before income taxes (639 ) — 56 468 (115 ) Income tax provision — (564 ) (21 ) 61 (524 ) Net (loss) income including noncontrolling interests (639 ) (564 ) 35 529 (639 ) Net income attributable to noncontrolling interests — — — — — Net (loss) income attributable to Resolute Forest Products Inc. $ (639 ) $ (564 ) $ 35 $ 529 $ (639 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (296 ) $ (346 ) $ 217 $ 129 $ (296 ) |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2015 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 13 $ 45 $ — $ 58 Accounts receivable, net — 322 137 — 459 Accounts receivable from affiliates — 421 272 (693 ) — Inventories, net — 257 290 (6 ) 541 Advance and interest receivable from parent — 62 — (62 ) — Notes and interest receivable from affiliates — 48 — (48 ) — Other current assets — 22 31 — 53 Total current assets — 1,145 775 (809 ) 1,111 Fixed assets, net — 629 1,181 — 1,810 Amortizable intangible assets, net — 46 59 — 105 Goodwill — 59 — — 59 Deferred income tax assets — — 981 1 982 Notes receivable from parent — 710 — (710 ) — Note receivable from affiliate — 105 — (105 ) — Investments in consolidated subsidiaries and affiliates 4,067 2,047 — (6,114 ) — Other assets — 48 105 — 153 Total assets $ 4,067 $ 4,789 $ 3,101 $ (7,737 ) $ 4,220 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 189 $ 242 $ — $ 436 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 433 260 — (693 ) — Advance and interest payable to subsidiaries 62 — — (62 ) — Notes and interest payable to affiliate — — 48 (48 ) — Total current liabilities 500 450 290 (803 ) 437 Long-term debt, net of current portion 589 1 — — 590 Notes payable to subsidiaries 710 — — (710 ) — Note payable to affiliate — — 105 (105 ) — Pension and other postretirement benefit obligations — 352 834 — 1,186 Deferred income tax liabilities — — 2 — 2 Other liabilities 1 24 35 — 60 Total liabilities 1,800 827 1,266 (1,618 ) 2,275 Total equity 2,267 3,962 1,835 (6,119 ) 1,945 Total liabilities and equity $ 4,067 $ 4,789 $ 3,101 $ (7,737 ) $ 4,220 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2014 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated 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 Note and interest receivable from parent — 287 — (287 ) — Notes receivable from affiliates — 318 — (318 ) — Other current assets — 20 26 — 46 Total current assets — 1,900 657 (1,093 ) 1,464 Fixed assets, net — 742 1,243 — 1,985 Amortizable intangible assets, net — — 62 — 62 Deferred income tax assets — — 1,287 2 1,289 Note receivable from parent — 388 — (388 ) — Investments in consolidated subsidiaries and affiliates 4,096 2,020 — (6,116 ) — Other assets — 49 65 — 114 Total assets $ 4,096 $ 5,099 $ 3,314 $ (7,595 ) $ 4,914 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 588 1 — — 589 Note payable to subsidiary 388 — — (388 ) — Pension and other postretirement benefit obligations — 414 1,202 — 1,616 Deferred income tax liabilities — — 3 — 3 Other liabilities 1 29 40 — 70 Total liabilities 1,655 731 1,883 (1,472 ) 2,797 Total equity 2,441 4,368 1,431 (6,123 ) 2,117 Total liabilities and equity $ 4,096 $ 5,099 $ 3,314 $ (7,595 ) $ 4,914 |
Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by (used in) operating activities $ — $ 151 $ (13 ) $ — $ 138 Cash flows from investing activities: Cash invested in fixed assets — (101 ) (84 ) — (185 ) Acquisition of Atlas Paper, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duties cash deposits — (4 ) — — (4 ) Increase in deposit requirements for letters of credit, net — — (4 ) — (4 ) Investment in common stock of subsidiary — (234 ) — 234 — Advance to parent — (59 ) — 59 — Decrease of notes receivable from affiliates — 164 — (164 ) — Net cash used in investing activities — (393 ) (88 ) 129 (352 ) Cash flows from financing activities: Payments of financing and credit facility fees — (2 ) (1 ) — (3 ) Purchases of treasury stock (59 ) — — — (59 ) Issuance of common stock — — 234 (234 ) — Advance to subsidiary 59 — — (59 ) — Decrease of notes payable to affiliate — — (164 ) 164 — Net cash (used in) provided by financing activities — (2 ) 69 (129 ) (62 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net decrease in cash and cash equivalents — (244 ) (35 ) — (279 ) Cash and cash equivalents: Beginning of year — 257 80 — 337 End of year $ — $ 13 $ 45 $ — $ 58 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2014 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 144 $ 42 $ — $ 186 Cash flows from investing activities: Cash invested in fixed assets — (76 ) (117 ) — (193 ) Monetization of timber notes — 22 — — 22 Disposition of assets — 4 6 — 10 Decrease in restricted cash — — 1 — 1 Decrease in deposit requirements for letters of credit, net — — 1 — 1 Other investing activities, net — — (2 ) — (2 ) Net cash used in investing activities — (50 ) (111 ) — (161 ) Cash flows from financing activities: Dividend to noncontrolling interest — — (4 ) — (4 ) Payments of debt — (1 ) (1 ) — (2 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Net cash used in financing activities — (2 ) (5 ) — (7 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Net increase (decrease) in cash and cash equivalents — 92 (77 ) — 15 Cash and cash equivalents: Beginning of year — 165 157 — 322 End of year $ — $ 257 $ 80 $ — $ 337 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2013 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash (used in) provided by operating activities $ (5 ) $ 41 $ 170 $ — $ 206 Cash flows from investing activities: Cash invested in fixed assets — (55 ) (106 ) — (161 ) Disposition of assets — — 4 — 4 Proceeds from insurance settlements — — 4 — 4 Decrease in restricted cash — — 8 — 8 Increase in deposit requirements for letters of credit, net — — (2 ) — (2 ) Other investing activities, net — — (4 ) — (4 ) Net cash used in investing activities — (55 ) (96 ) — (151 ) Cash flows from financing activities: Issuance of long-term debt 594 — — — 594 Premium paid on extinguishment of debt (84 ) — — — (84 ) Dividend to noncontrolling interest — — (2 ) — (2 ) Payments of debt (501 ) — (2 ) — (503 ) Payments of financing and credit facility fees (9 ) — — — (9 ) Contribution of capital from noncontrolling interest — 8 — — 8 Net cash provided by (used in) financing activities — 8 (4 ) — 4 Net (decrease) increase in cash and cash equivalents (5 ) (6 ) 70 — 59 Cash and cash equivalents: Beginning of year 5 171 87 — 263 End of year $ — $ 165 $ 157 $ — $ 322 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | Year ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 920 $ 926 $ 905 $ 894 $ 3,645 Operating (loss) income (15 ) 16 6 (226 ) (219 ) Net loss attributable to Resolute Forest Products Inc. (33 ) (4 ) (6 ) (214 ) (257 ) Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.35 ) (0.04 ) (0.07 ) (2.39 ) (2.78 ) Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.35 ) (0.04 ) (0.07 ) (2.39 ) (2.78 ) Year ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 1,016 $ 1,091 $ 1,096 $ 1,055 $ 4,258 Operating loss (33 ) (8 ) (40 ) (93 ) (174 ) Net loss attributable to Resolute Forest Products Inc. (50 ) (2 ) (116 ) (109 ) (277 ) Basic net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.53 ) (0.02 ) (1.23 ) (1.15 ) (2.93 ) Diluted net loss per share attributable to Resolute Forest Products Inc. common shareholders (0.53 ) (0.02 ) (1.23 ) (1.15 ) (2.93 ) |
Organization and Basis of Pre51
Organization and Basis of Presentation - Nature of Operations (Details) | Dec. 31, 2015ManufacturingSitesCountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | Country | 80 |
Number of operating pulp and paper mills and wood products facilities (approximate) | ManufacturingSites | 40 |
Organization and Basis of Pre52
Organization and Basis of Presentation - Summary of Less Than Wholly-Owned Consolidated Subsidiaries (Details) | Dec. 31, 2015 |
Forest Products Mauricie L.P. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Resolute Forest Products ownership | 93.20% |
Partner ownership | 6.80% |
Donohue Malbaie Inc. [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Resolute Forest Products ownership | 51.00% |
Partner ownership | 49.00% |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Line Items] | |||
Balance of the APIC pool | $ 0 | $ 0 | $ 0 |
Maximum [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Maturity period of demand deposits and other short-term, highly liquid securities included in cash and cash equivalents | 3 months | 3 months | 3 months |
Summary of Significant Accoun54
Summary of Significant Accounting Policies Impact of New Accounting Pronouncements on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other assets | $ 153 | $ 114 |
Long-term debt, net of current portion | 590 | 589 |
Deferred income tax assets - current | 0 | 0 |
Deferred income tax assets - noncurrent | 982 | 1,289 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other assets | (7) | (7) |
Long-term debt, net of current portion | (7) | (7) |
Deferred income tax assets - current | (22) | (70) |
Deferred income tax assets - noncurrent | 22 | 70 |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Other assets | 160 | 121 |
Long-term debt, net of current portion | 597 | 596 |
Deferred income tax assets - current | 22 | 70 |
Deferred income tax assets - noncurrent | $ 960 | $ 1,219 |
Acquisition of Atlas Inc. - Sch
Acquisition of Atlas Inc. - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Nov. 16, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Business Combinations [Abstract] | |||||
Accounts receivable | $ 13 | ||||
Inventories | 12 | ||||
Other current assets | 1 | ||||
Current assets | 26 | ||||
Fixed assets | 46 | ||||
Amortizable intangible assets | [1] | 46 | |||
Goodwill | 59 | [2] | $ 59 | $ 0 | |
Other assets | 1 | ||||
Total assets acquired | 178 | ||||
Cash overdraft | 2 | ||||
Accounts payable and accrued liabilities | 11 | ||||
Current liabilities assumed | 13 | ||||
Deferred income tax liabilities | 10 | ||||
Total liabilities assumed | 23 | ||||
Net assets acquired | 155 | ||||
Fair value of consideration transferred | 157 | ||||
Recovery of consideration previously recorded | (2) | ||||
Fair value of consideration transferred, net | $ 155 | ||||
[1] | Amortizable intangible assets identified relate primarily to customer relationships, which have a weighted-average amortization period of 13 years. The fair value of the amortizable intangible assets was determined using the income approach through an excess earnings analysis discounted at a rate of 12%. | ||||
[2] | Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to Atlas Paper’s assembled workforce, expected synergies with certain of our existing assets and expected future cash flows. Goodwill was assigned to the tissue segment for the purposes of impairment testing in the future. Goodwill recognized is not deductible for tax purposes. |
Acquisition of Atlas Inc. - S56
Acquisition of Atlas Inc. - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed - Additional Information (Details) - Customer Relationships [Member] | Nov. 16, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 13 years |
Fair value inputs, discount rate | 12.00% |
Acquisition of Atlas Inc. - Pro
Acquisition of Atlas Inc. - Pro Forma Information (Details) - Atlas Inc. [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | $ 3,734 | $ 4,332 |
Net loss attributable to Resolute Forest Products Inc. | $ (261) | $ (282) |
Basic net loss per share attributable to Resolute Forest Products Inc. | $ (2.82) | $ (2.98) |
Diluted net loss per share attributable to Resolute Forest Products Inc. | $ (2.82) | $ (2.98) |
Acquisition of Atlas Inc. - P58
Acquisition of Atlas Inc. - Pro Forma Information - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Transaction costs | $ 3 |
Atlas Inc. [Member] | |
Acquiree costs excluded from pro forma information consideration | $ 16 |
Acquisition of Atlas Inc. - Add
Acquisition of Atlas Inc. - Additional Information (Details) (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 | |
Net income (loss) | $ (214) | $ (6) | $ (4) | $ (33) | $ (109) | $ (116) | $ (2) | $ (50) | $ (257) | $ (277) | $ (639) | |
Atlas Inc. [Member] | ||||||||||||
Sales | $ 11 | |||||||||||
Net income (loss) | $ 1 |
Closure Costs, Impairment and60
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | $ 176 | $ 14 | $ 11 | [1] | |
Accelerated depreciation | 2 | 208 | 50 | ||
Pension plan curtailments | 4 | 3 | |||
Severance and other costs | 3 | 52 | 25 | ||
Total | 181 | 278 | 89 | ||
Impairment at the paper mill in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [2] | 176 | |||
Accelerated depreciation | [2] | 0 | |||
Severance and other costs | [2] | 0 | |||
Total | [2] | 176 | |||
Permanent closure of paper mill in Iroquois Falls, Ontario [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | 0 | [1] | |
Accelerated depreciation | 0 | 60 | 2 | ||
Pension plan curtailments | 6 | 0 | |||
Severance and other costs | 3 | 17 | 1 | ||
Total | 3 | 83 | 3 | ||
Permanent closure of paper machine in Clermont, Quebec [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 2 | ||||
Severance and other costs | 0 | ||||
Total | $ 2 | ||||
Permanent closure of Laurentide, Quebec paper mill [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 97 | ||||
Pension plan curtailments | (2) | ||||
Severance and other costs | 20 | ||||
Total | 115 | ||||
Permanent closure of paper machine in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 45 | ||||
Pension plan curtailments | 0 | ||||
Severance and other costs | 1 | ||||
Total | 46 | ||||
Permanent closure of pulp and paper mill in Fort Frances, Ontario [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | ||||
Accelerated depreciation | 0 | ||||
Pension plan curtailments | 0 | ||||
Severance and other costs | 12 | ||||
Total | 12 | ||||
Recycling operations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [3] | 6 | |||
Accelerated depreciation | [3] | 0 | |||
Pension plan curtailments | [3] | 0 | |||
Severance and other costs | [3] | 1 | |||
Total | [3] | 7 | |||
Indefinite idling of paper machine in Calhoun, Tennessee [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [1],[4] | 0 | |||
Accelerated depreciation | [4] | 44 | |||
Pension plan curtailments | [4] | 0 | |||
Severance and other costs | [4] | 6 | |||
Total | [4] | 50 | |||
Extended market-related outage of pulp mill and paper machines in Fort Frances, Ontario [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [1] | 0 | |||
Accelerated depreciation | 0 | ||||
Pension plan curtailments | 2 | ||||
Severance and other costs | 15 | ||||
Total | 17 | ||||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 8 | 11 | [1] | ||
Accelerated depreciation | 6 | 4 | |||
Pension plan curtailments | 0 | 1 | |||
Severance and other costs | 1 | 3 | |||
Total | $ 15 | $ 19 | |||
[1] | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | ||||
[2] | As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12%. This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. | ||||
[3] | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. | ||||
[4] | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. In 2014, we restarted the paper machine to produce specialty paper. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, “Other Income (Expense), Net.” |
Closure Costs, Impairment and61
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [1] | ||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | $ 176 | $ 14 | $ 11 | ||
Impairment at the paper mill in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | [2] | $ 176 | |||
Fair value inputs, discount rate | 12.00% | ||||
Recycling operations [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Long-lived asset impairment charges | [3] | $ 6 | |||
[1] | Due to declining market conditions, we recorded long-lived asset impairment charges related to our recycling assets to reduce the carrying value of the assets to their estimated fair value, which was determined based on estimated market prices for similar assets. | ||||
[2] | As a result of declining market conditions, we recorded long-lived asset impairment charges of $176 million for the year ended December 31, 2015, related to our Catawba paper assets, to reduce the carrying value of the assets to fair value. Management estimated the fair value using the income approach. Projected discounted cash flows utilized under the income approach included estimates regarding future revenues and expenses attributable to the Catawba paper activities, projected capital expenditures and a discount rate of 12%. This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. | ||||
[3] | We recorded long-lived asset impairment charges of $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. |
Other Income (Expense), Net - (
Other Income (Expense), Net - (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss | $ (4) | $ (32) | $ (24) | |
Write-down of equity method investment | [1] | 0 | (61) | 0 |
Net (loss) gain on extinguishment of debt | 0 | 0 | (59) | |
Gain on forgiveness of note payable | [2] | 0 | 0 | 12 |
Gain on liquidation settlement | [3] | 0 | 0 | 12 |
Miscellaneous income (expense) | 8 | 10 | (3) | |
Other income (expense), net | $ 4 | $ (83) | $ (62) | |
[1] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | |||
[2] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our Consolidated Financial Statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||
[3] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Other Income (Expense), Net - A
Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 10, 2013 | ||
Other Income (Expense) [Line Items] | |||||
Write-down of equity method investment | [1] | $ 0 | $ 61 | $ 0 | |
Gain on forgiveness of note payable | [2] | 0 | 0 | 12 | |
Liquidation settlement received | [3] | $ 0 | 0 | 12 | |
Ponderay Newsprint Company [Member] | |||||
Other Income (Expense) [Line Items] | |||||
Ownership percentage of equity method investment | 40.00% | ||||
Write-down of equity method investment | $ 61 | ||||
Fair value of investment | $ 0 | ||||
Calhoun Newsprint Company [Member] | |||||
Other Income (Expense) [Line Items] | |||||
Previous percentage of entity owned | 51.00% | ||||
Gain on forgiveness of note payable | 12 | ||||
Bridgewater Paper Company Limited [Member] | |||||
Other Income (Expense) [Line Items] | |||||
Liquidation settlement received | $ 12 | ||||
[1] | As a result of the continued deterioration of actual and projected cash flows in Ponderay Newsprint Company, a partnership in which we have a 40% interest, we recorded an other-than-temporary write-down of $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. | ||||
[2] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our Consolidated Financial Statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | ||||
[3] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $12 million in 2013. |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (718) | |||
Other comprehensive income (loss) before reclassifications | 75 | |||
Amounts reclassified from accumulated other comprehensive loss | [1],[2] | 56 | ||
Other comprehensive income (loss), net of tax | 131 | $ (447) | $ 343 | |
Ending balance | (587) | (718) | ||
Unamortized Prior Service Credits [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 94 | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | [1],[2] | (10) | ||
Other comprehensive income (loss), net of tax | (10) | |||
Ending balance | 84 | 94 | ||
Unamortized Actuarial Losses [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (812) | |||
Other comprehensive income (loss) before reclassifications | 79 | |||
Amounts reclassified from accumulated other comprehensive loss | [1],[2] | 66 | ||
Other comprehensive income (loss), net of tax | 145 | |||
Ending balance | (667) | (812) | ||
Foreign Currency Translation [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 0 | |||
Other comprehensive income (loss) before reclassifications | (4) | |||
Amounts reclassified from accumulated other comprehensive loss | [1],[2] | 0 | ||
Other comprehensive income (loss), net of tax | (4) | |||
Ending balance | $ (4) | $ 0 | ||
[1] | In 2015, we recorded a $9 million (net of tax of $5 million) settlement charge to unamortized actuarial losses related to annuity purchases for certain inactive U.S. employees. For additional information, see Note 13, “Pension and Other Postretirement Benefit Plans” to our Consolidated Financial Statements. | |||
[2] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Equity [Abstract] | |
Settlement charge, net of tax | $ 9 |
Settlement charge, tax | $ 5 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 2,826 | $ 3,240 | $ 3,446 | |||||||||
Income tax (provision) benefit | (1) | (30) | 524 | |||||||||
Net of tax | $ 214 | $ 6 | $ 4 | $ 33 | $ 109 | $ 116 | $ 2 | $ 50 | 257 | $ 277 | $ 639 | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Net of tax | 56 | |||||||||||
Unamortized Prior Service Credits [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | (16) | ||||||||||
Income tax (provision) benefit | 6 | |||||||||||
Net of tax | (10) | |||||||||||
Unamortized Actuarial Losses - Amortization of Actuarial Losses [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 79 | ||||||||||
Unamortized Actuarial Losses - Settlement Loss [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 14 | ||||||||||
Unamortized Actuarial Losses [Member] | Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Income tax (provision) benefit | (27) | |||||||||||
Net of tax | $ 66 | |||||||||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 13, “Pension and Other Postretirement Benefit Plans.” |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Schedule of Weighted-Average Stock Options and Equity-Classified RSUs, DSUs and PSUs Outstanding (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of award shares outstanding | 1.5 | 1.6 | 2 |
Stock unit awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of award shares outstanding | 1.4 | 1.3 | 1 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 152 | $ 160 |
Finished goods | 179 | 192 |
Mill stores and other supplies | 210 | 190 |
Inventories, net | $ 541 | $ 542 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | |||
Inventory write-downs related to closures | $ 2 | $ 17 | $ 11 |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Land and land improvements | $ 93 | $ 93 | |
Buildings | 302 | 293 | |
Machinery and equipment | [1] | 2,313 | 2,318 |
Hydroelectric power plants | 287 | 286 | |
Timberlands and timberlands improvements | 99 | 91 | |
Construction in progress | [1] | 146 | 102 |
Fixed assets, gross | 3,240 | 3,183 | |
Less: accumulated depreciation | (1,430) | (1,198) | |
Fixed assets, net | 1,810 | 1,985 | |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | 58 | 31 | |
Construction in progress | 10 | 24 | |
Fixed assets, gross | 68 | 55 | |
Less: accumulated depreciation | (16) | (8) | |
Fixed assets, net | $ 52 | $ 47 | |
[1] | Internal-use software included in fixed assets, net as of December 31, 2015 and 2014 was as follows: (In millions)2015 2014 Machinery and equipment$58 $31 Construction in progress 10 24 68 55 Less: Accumulated depreciation (16) (8) $52 $47 Depreciation expense related to internal-use software is estimated to be $8 million for each of the next four years and $4 million in 2020. |
Fixed Assets, Net Fixed Assets,
Fixed Assets, Net Fixed Assets, Net (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Land and land improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Land and land improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Hydroelectric power plants [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Hydroelectric power plants [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Timber and timberlands improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Timber and timberlands improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Internal-use software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated amortization expense, 2016 | $ 8 |
Estimated amortization expense, 2017 | 8 |
Estimated amortization expense, 2018 | 8 |
Estimated amortization expense, 2019 | 8 |
Estimated amortization expense, 2020 | $ 4 |
Amortizable Intangible Assets72
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | $ 117 | $ 71 | |
Accumulated amortization | 12 | 9 | |
Net | 105 | 62 | |
Water rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [1] | 19 | 19 |
Accumulated amortization | [1] | 4 | 3 |
Net | [1] | 15 | 16 |
Energy contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 52 | 52 | |
Accumulated amortization | 8 | 6 | |
Net | 44 | 46 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [2] | 44 | 0 |
Accumulated amortization | [2] | 0 | 0 |
Net | [2] | 44 | 0 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [2] | 2 | 0 |
Accumulated amortization | [2] | 0 | 0 |
Net | [2] | $ 2 | $ 0 |
[1] | In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power leases/agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). Terms of these agreements typically range from 10 to 25 years and are generally renewable, under certain conditions. In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. | ||
[2] | In connection with our acquisition of Atlas Paper, we identified amortizable intangible assets primarily related to customer relationships. See Note 3, “Acquisition of Atlas Paper Holdings, Inc.,” for additional information. |
Amortizable Intangible Assets73
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Water rights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 10 years |
Water rights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 40 years |
Energy contracts [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 15 years |
Energy contracts [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 25 years |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 10 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated life (years) | 15 years |
Amortizable Intangible Assets74
Amortizable Intangible Assets, Net - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Term of water power agreements | 10 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Term of water power agreements | 25 years |
Amortizable Intangible Assets75
Amortizable Intangible Assets, Net - Additional Information (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense related to amortizable intangible assets | $ 3 | $ 4 | $ 3 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2016 | 7 | ||
Estimated amortization expense, 2017 | 7 | ||
Estimated amortization expense, 2018 | 7 | ||
Estimated amortization expense, 2019 | 7 | ||
Estimated amortization expense, 2020 | $ 7 |
Accounts Payable and Accrued 76
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 324 | $ 361 |
Payroll, bonuses and severance payable | 56 | 85 |
Accrued interest | 5 | 5 |
Pension and OPEB obligations | 17 | 20 |
Income and other taxes payable | 5 | 13 |
Environmental liabilities | 5 | 8 |
Other | 24 | 26 |
Accounts payable and accrued liabilities | $ 436 | $ 518 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 600 | $ 600 |
Deferred finance costs | (7) | (7) |
Unamortized discount | (4) | (5) |
Net carrying amount | 589 | 588 |
Capital lease obligation | 2 | 2 |
Total debt | 591 | 590 |
Less: Current portion of long-term debt | (1) | (1) |
Long-term debt, net of current portion | $ 590 | $ 589 |
Long-Term Debt - Debt Redemptio
Long-Term Debt - Debt Redemption Schedule (Details) - Redemption Including Accrued And Unpaid Interest [Member] - Senior Notes Due 2023 [Member] - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Twelve Month Period Beginning May 15, 2017 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 104.406% |
Twelve Month Period Beginning May 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 102.938% |
Twelve Month Period Beginning May 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 101.469% |
Twelve Month Period Beginning May 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption price | 100.00% |
Long-Term Debt - Debt Redempt79
Long-Term Debt - Debt Redemption Schedule - Additional Information (Details) - Senior Notes [Member] - Senior Notes Due 2023 [Member] | 12 Months Ended |
Dec. 31, 2015 | |
Redemption Including Accrued and Unpaid Interest and Supplemented with a Make-Whole Premium Prior to May 15, 2017 [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Redemption Using Proceeds Of Equity Offerings Prior To May 15, 2016 [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 105.875% |
Redemption Using Proceeds Of Equity Offerings Prior To May 15, 2016 [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Percentage of notes that may be redeemed using proceeds of equity offerings before May 15, 2016 | 35.00% |
Redemption Including Accrued And Unpaid Interest Upon A Change Of Control [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 101.00% |
Redemption Including Accrued And Unpaid Interest Using Net Cash Proceeds From Asset Sales [Member] | |
Debt Instrument [Line Items] | |
Redemption price | 100.00% |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion - 2023 Notes (Details) - USD ($) | Oct. 08, 2013 | May. 08, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||||
Net loss on extinguishment of debt | $ 0 | $ 0 | $ 59,000,000 | ||
Senior Notes Due 2023 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 600,000,000 | ||||
Interest rate of notes | 5.875% | ||||
Fair value of senior notes | $ 594,000,000 | $ 440,000,000 | $ 571,000,000 | ||
Unamortized discount | $ 6,000,000 | ||||
Effective interest rate of debt | 6.00% | ||||
Maturity date | May 15, 2023 | ||||
Deferred financing costs | 9,000,000 | ||||
Senior Secured Notes Due 2018 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of notes | 10.25% | ||||
Principal amount of debt repurchased | $ 5,000,000 | $ 496,000,000 | |||
Percentage of principal amount of outstanding debt redeemed | 99.00% | ||||
Debt repurchase - consideration paid, total | $ 584,000,000 | ||||
Debt repurchase - consideration paid, accrued and unpaid interest | $ 4,000,000 | ||||
Redemption price | 103.00% | ||||
Net loss on extinguishment of debt | 59,000,000 | ||||
Write-down of unamortized premium | $ 25,000,000 |
Long-Term Debt - Long-Term De81
Long-Term Debt - Long-Term Debt Including Current Portion - ABL Credit Facility (Details) - Revolving Credit Facility [Member] | 12 Months Ended | |
Dec. 31, 2015USD ($)consecutive_business_days | May. 21, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Credit facility, term | 5 years | |
Credit facility lender commitment amount | $ 600,000,000 | $ 665,000,000 |
Uncommitted ability to increase borrowing capacity, maximum | $ 500,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
Credit facility, fronting fee percentage | 0.125% | |
Minimum fixed charge coverage ratio required if excess availability falls below certain conditions | 1 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, amount | $ 50,000,000 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, percentage of the maximum available borrowing amount | 10.00% | |
Number of consecutive business days minimum excess availability of credit facility conditions must persist before triggering fixed coverage ratio requirement | consecutive_business_days | 2 | |
Available credit facility borrowing capacity | $ 444,000,000 | |
Credit facility amount outstanding | 0 | |
Letters of credit amount outstanding | 34,000,000 | |
Swingline [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | 60,000,000 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 200,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base availability, eligible accounts receivable, percentage | 5.00% | |
Interest Rate on Revolving Loans Not Made Under the FILO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.25% | |
Minimum [Member] | FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 5.00% | |
Minimum [Member] | Canadian Banker's Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.00% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.30% | |
Maximum [Member] | FIFO Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitments of the ABL Credit Facility convertible to a first-in last-out facility | $ 50,000,000 | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 10.00% | |
Maximum [Member] | Canadian Banker's Acceptance Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% | |
Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.75% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.75% |
Long-Term Debt - Long-Term Incl
Long-Term Debt - Long-Term Including Current Portion - Other Debt (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Disclosure [Abstract] | |
Carrying value of assets pledged as collateral for total debt | $ 1 |
Length of warehouse capital lease obligation renewal option | 20 years |
Pension and Other Postretirem83
Pension and Other Postretirement Benefit Plans - Additional Information (Details) $ in Millions | May. 06, 2014Positions | Dec. 31, 2015USD ($) | Dec. 31, 2015CAD | Dec. 31, 2014USD ($)Pension_PlansPositions |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Total benefit obligations for pension plans with benefit obligations in excess of plan assets | $ | $ 4,642 | $ 5,947 | ||
Total fair value of plan assets for pension plans with benefit obligations in excess of plan assets | $ | 3,613 | 4,521 | ||
Total accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | $ | 4,555 | 5,765 | ||
Total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | $ | 3,583 | 4,417 | ||
Total accumulated benefit obligations for all pension plans | $ | 5,007 | 6,150 | ||
Prior service cost (credit), before tax | $ | $ 91 | |||
Estimated amount of actuarial gains (losses) to be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 48 | |||
Estimated amount of prior service costs (credits) that will be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 15 | |||
Number of pension plans curtailed | Pension_Plans | 2 | |||
Estimated pension contributions in the next fiscal year | $ | $ 142 | |||
Percentage of total unfunded pension obligations represented by the pension plans subject to Canadian pension funding relief measures | 67.00% | 67.00% | ||
Revised annual contribution to pension plans subject to Canadian pension funding relief measures | CAD | CAD 80,000,000 | |||
Percentage threshold by which solvency ratio of pension plans subject to canadian pension funding relief measures is less than the target of the previous year before triggering additional contribution | 2.00% | 2.00% | ||
Maximum additional contribution triggered if the percentage of the solvency ratio of the pension plans subject to canadian pension funding relief measures is less than the target of the previous year | CAD | CAD 25,000,000 | |||
Period over which subsequent year supplemental contribution payments under the Canadian pension funding relief regulations must be made | 3 years | 3 years | ||
Percentage by which solvency ratio of pension plans subject to Canadian pension funding relief measures is less than the target | 2.00% | 2.00% | ||
Supplemental contribution required in the following year | CAD | CAD 25,000,000 | |||
Period any additional contributions related to downtime under the Canadian pension funding relief regulations could be required | 3 years | 3 years | ||
Corrective measures amount payable under the Canadian pension funding relief regulations at expiration | CAD | CAD 110,000,000 | |||
Corrective measures amount payable under the Canadian pension funding relief regulations, payment period | 5 years | 5 years | ||
Change in assumption, discount rate, percentage | 1.00% | 1.00% | ||
Change in assumption, discount rate, change in solvency deficit | $ 320 | CAD 450,000,000 | ||
Canada [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Estimated pension contributions in the next fiscal year | $ 110 | CAD 150,000,000 | ||
Equity Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 50.00% | 50.00% | ||
Targeted asset allocation of plan assets, minimum | 30.00% | 30.00% | ||
Targeted asset allocation of plan assets, maximum | 60.00% | 60.00% | ||
Equity Securities [Member] | United States and Canada [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 60.00% | 60.00% | ||
Debt Securities [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets | 50.00% | 50.00% | ||
Targeted asset allocation of plan assets, minimum | 40.00% | 40.00% | ||
Targeted asset allocation of plan assets, maximum | 70.00% | 70.00% | ||
Short-term Instruments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Targeted asset allocation of plan assets, maximum | 5.00% | 5.00% | ||
RFP Canada Inc. [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations | CAD | CAD 75 | |||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, payment period | 4 years | 4 years | ||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, consecutive period of continued downtime threshold | 6 months | 6 months | ||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, cumulative period of downtime threshold | 9 months | 9 months | ||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, period covering cumulative period of downtime threshold | 18 months | 18 months | ||
Minimum weighted average solvency ratio before dividend payments are restricted under the Canadian pension funding relief regulations | 80.00% | 80.00% | ||
Minimum amount of investments in strategic projects required under the Canadian pension funding relief regulations | CAD | CAD 75,000,000 | |||
Period over which the investments in strategic projects required under the Canadian pension funding relief regulations must be made | 5 years | 5 years | ||
Annual diversification fund contribution required under the Canadian pension funding relief regulations | CAD | CAD 2,000,000 | |||
Period covering annual diversification fund contributions under the Canadian pension funding relief regulations | 5 years | 5 years | ||
Annual additional contribution related to downtime under the Canadian pension funding relief regulations | CAD | CAD 19,000,000 | |||
Expected annual additional contribution related to downtime expected in the next three years under the Canadian pension funding relief regulations | CAD | CAD 20,000,000 | |||
RFP Canada Inc. [Member] | Quebec [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Minimum geographic concentration of maintenance and value creation investments in Canadian pulp and paper operations under the Canadian pension funding relief regulations | 60.00% | 60.00% | ||
Permanent closure of the Laurentide, Quebec paper mill and the paper mill in Iroquois Falls, Ontario [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Approximate number of positions eliminated | Positions | 470 | |||
Permanent closure of pulp and paper mill in Fort Frances, Ontario [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Approximate number of positions eliminated | Positions | 150 |
Pension and Other Postretirem84
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans - Additional Information (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Expense for the defined contribution plans, total | $ 20 | $ 22 | $ 22 |
Pension and Other Postretirem85
Pension and Other Postretirement Benefit Plans - Summary of Changes in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | $ 6,229 | $ 6,004 | |
Service cost | 23 | 26 | $ 33 |
Interest cost | 225 | 274 | 274 |
Actuarial (gain) loss | (140) | 788 | |
Participant contributions | 7 | 11 | |
Plan amendments | 0 | 0 | |
Curtailments | 0 | 4 | |
Settlements | (65) | (5) | |
Benefits paid | (410) | (440) | |
Effect of foreign currency exchange rate changes | (801) | (433) | |
Benefit obligations as of end of year | 5,068 | 6,229 | 6,004 |
OPEB Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | 210 | 310 | |
Service cost | 1 | 1 | 3 |
Interest cost | 8 | 11 | 16 |
Actuarial (gain) loss | (11) | 10 | |
Participant contributions | 2 | 4 | |
Plan amendments | 0 | (91) | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Benefits paid | (15) | (23) | |
Effect of foreign currency exchange rate changes | (21) | (12) | |
Benefit obligations as of end of year | $ 174 | $ 210 | $ 310 |
Pension and Other Postretirem86
Pension and Other Postretirement Benefit Plans - Summary of Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | $ 4,808 | |
Fair value of plan assets as of end of year | 4,049 | $ 4,808 |
Pension Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 4,808 | 5,013 |
Actual return on plan assets | 224 | 450 |
Employer contributions | 123 | 142 |
Participant contributions | 7 | 11 |
Settlements | (65) | (5) |
Benefits paid | (410) | (440) |
Effect of foreign currency exchange rate changes | (638) | (363) |
Fair value of plan assets as of end of year | 4,049 | 4,808 |
Funded status as of end of year | (1,019) | (1,421) |
OPEB Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 13 | 19 |
Participant contributions | 2 | 4 |
Settlements | 0 | 0 |
Benefits paid | (15) | (23) |
Effect of foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets as of end of year | 0 | 0 |
Funded status as of end of year | $ (174) | $ (210) |
Pension and Other Postretirem87
Pension and Other Postretirement Benefit Plans - Summary of Amounts Recognized in our Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accounts payable and accrued liabilities | $ (17) | $ (20) |
Pension and OPEB obligations | (1,186) | (1,616) |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 10 | 5 |
Accounts payable and accrued liabilities | (3) | (4) |
Pension and OPEB obligations | (1,026) | (1,422) |
Net obligations recognized | (1,019) | (1,421) |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 0 | 0 |
Accounts payable and accrued liabilities | (14) | (16) |
Pension and OPEB obligations | (160) | (194) |
Net obligations recognized | $ (174) | $ (210) |
Pension and Other Postretirem88
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments and settlements | $ 4 | $ 3 | |
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | $ 23 | 26 | 33 |
Interest cost | 225 | 274 | 274 |
Expected return on plan assets | (260) | (300) | (308) |
Amortization of prior service credits | (2) | (2) | (2) |
Amortization of actuarial losses (gains) | 84 | 9 | 25 |
Net periodic benefit cost before special events | 70 | 7 | 22 |
Curtailments and settlements | 14 | 4 | 3 |
Net periodic benefit cost | 84 | 11 | 25 |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 1 | 1 | 3 |
Interest cost | 8 | 11 | 16 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | (14) | (11) | (1) |
Amortization of actuarial losses (gains) | (5) | (4) | (2) |
Net periodic benefit cost before special events | (10) | (3) | 16 |
Curtailments and settlements | 0 | 0 | 0 |
Net periodic benefit cost | $ (10) | $ (3) | $ 16 |
Pension and Other Postretirem89
Pension and Other Postretirement Benefit Plans - Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.20% | 4.00% | 4.90% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.00% | 4.90% | 4.30% |
Expected return on assets | 6.30% | 6.50% | 6.30% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
OPEB Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.40% | 4.00% | 5.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.10% | 5.00% | 4.20% |
Pension and Other Postretirem90
Pension and Other Postretirement Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 7.20% | 7.20% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,028 | 2,028 |
Foreign Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 4.40% | 4.40% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 3.80% | 3.80% |
Year that the rate reaches the ultimate trend rate | 2,033 | 2,033 |
Pension and Other Postretirem91
Pension and Other Postretirement Benefit Plans - Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Domestic Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $ 3 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 6.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | $ (3) |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | (5.00%) |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | (5.00%) |
Foreign Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $ 6 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 5.00% |
Service and interest costs, monetary impact of 1% increase in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% increase in health care cost trend rate | 6.00% |
Benefit obligation, monetary impact of 1% decrease in health care cost trend rate | $ (5) |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | (5.00%) |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | (5.00%) |
Pension and Other Postretirem92
Pension and Other Postretirement Benefit Plans - Fair Value of Plan Assets Held by Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | $ 4,049 | $ 4,808 | |
U.S. company equity securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 587 | 678 | |
U.S. company equity securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 587 | 678 | |
U.S. company equity securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
U.S. company equity securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Non-U.S. company equity securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 626 | 723 | |
Non-U.S. company equity securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 626 | 723 | |
Non-U.S. company equity securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Non-U.S. company equity securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Corporate and government debt securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,243 | 2,665 | |
Corporate and government debt securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 274 | 494 | |
Corporate and government debt securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 1,969 | 2,171 | |
Corporate and government debt securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Asset-backed securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 97 | 110 | |
Asset-backed securities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Asset-backed securities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 97 | 110 | |
Asset-backed securities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Bank loans/foreign annuities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 4 | ||
Bank loans/foreign annuities [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | ||
Bank loans/foreign annuities [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | ||
Bank loans/foreign annuities [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 4 | $ 40 |
Cash and cash equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 191 | 197 | |
Cash and cash equivalents [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 191 | 197 | |
Cash and cash equivalents [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Cash and cash equivalents [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Accrued interest and dividends [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 36 | 42 | |
Accrued interest and dividends [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Accrued interest and dividends [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 36 | 42 | |
Accrued interest and dividends [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 0 | |
Subtotal before investments measured at NAV [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 3,780 | 4,419 | |
Subtotal before investments measured at NAV [Member] | Level 1 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 1,678 | 2,092 | |
Subtotal before investments measured at NAV [Member] | Level 2 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 2,102 | 2,323 | |
Subtotal before investments measured at NAV [Member] | Level 3 [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | 0 | 4 | |
Investments measured at NAV [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Fair value of plan assets held by pension plans | $ 269 | $ 389 |
Pension and Other Postretirem93
Pension and Other Postretirement Benefit Plans - Changes in Level 3 Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | $ 4,808 | |
Fair value of plan assets as of end of year | 4,049 | $ 4,808 |
Bank loans/foreign annuities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 4 | |
Fair value of plan assets as of end of year | 4 | |
Level 3 [Member] | Bank loans/foreign annuities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 4 | 40 |
Unrealized gains (losses) relating to assets held | (2) | |
Realized gains | 2 | |
Purchases | 11 | |
Sales | (4) | (44) |
Effect of foreign currency exchange rate changes | (3) | |
Fair value of plan assets as of end of year | $ 0 | $ 4 |
Pension and Other Postretirem94
Pension and Other Postretirement Benefit Plans - Expected Benefit Payments and Future Contributions (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2016 expected benefit payments | $ 344 | [1] |
2017 Expected benefit payments | 345 | [1] |
2018 Expected benefit payments | 343 | [1] |
2019 Expected benefit payments | 342 | [1] |
2020 Expected benefit payments | 339 | [1] |
2021 - 2025 Expected benefit payments | 1,638 | [1] |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2016 expected benefit payments | 14 | |
2017 Expected benefit payments | 13 | |
2018 Expected benefit payments | 13 | |
2019 Expected benefit payments | 12 | |
2020 Expected benefit payments | 12 | |
2021 - 2025 Expected benefit payments | $ 56 | |
[1] | Benefit payments are expected be paid from the plans’ net assets. |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes by Taxing Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (355) | $ (221) | $ (168) |
Foreign | 99 | (83) | 53 |
Income (loss) before income taxes | $ (256) | $ (304) | $ (115) |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Federal and State: | |||
Current | $ 4 | $ (4) | $ 0 |
Deferred | 32 | 6 | (504) |
U.S. Federal and State, Total | 36 | 2 | (504) |
Foreign: | |||
Current | 0 | (2) | (1) |
Deferred | (35) | 30 | (19) |
Foreign, Total | (35) | 28 | (20) |
Total: | |||
Current | 4 | (6) | (1) |
Deferred | (3) | 36 | (523) |
Income tax benefit (provision) | $ 1 | $ 30 | $ (524) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (256) | $ (304) | $ (115) | |
Income tax benefit (provision): | ||||
Expected income tax benefit | 90 | 106 | 40 | |
Changes resulting from: | ||||
Valuation allowance | [1] | (109) | (51) | (572) |
Foreign exchange | (20) | (17) | (4) | |
Research and development tax incentives | 1 | 1 | 2 | |
State income taxes, net of federal income tax benefit | 12 | 5 | 3 | |
Foreign tax rate differences | 8 | (8) | 4 | |
Effect of change in tax rates | [2] | 18 | 0 | 0 |
Other, net | 1 | (6) | 3 | |
Income tax benefit (provision) | $ 1 | $ 30 | $ (524) | |
[1] | During 2015, we recorded a net increase in our valuation allowance of $109 million primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets.During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets, partly offset by an income tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary in 2014.During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. | |||
[2] | In 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Fixed assets | $ (81) | $ (191) | |
Deferred gains | (21) | 0 | |
Other liabilities | (9) | (13) | |
Deferred income tax liabilities | (111) | (204) | |
Fixed assets | 489 | 591 | |
Pension and OPEB plans | 359 | 480 | |
Ordinary loss carryforwards | 773 | 767 | |
Capital loss carryforwards | [1] | 12 | 3 |
Research and development expense pool | 177 | 204 | |
Tax credit carryforwards | 103 | 109 | |
Other assets | 43 | 91 | |
Deferred income tax assets | 1,956 | 2,245 | |
Valuation allowance | (865) | (755) | |
Net deferred income tax assets | 980 | 1,286 | |
Amounts recognized in our Consolidated Balance Sheets consisted of: | |||
Deferred income tax assets | 982 | 1,289 | |
Deferred income tax liabilities | 2 | 3 | |
Net deferred income tax assets | $ 980 | $ 1,286 | |
[1] | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. |
Income Taxes - Balance of Tax A
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | $ 773 | $ 767 | |
Capital loss carryforwards | [1] | 12 | 3 |
Research and development expense pool | 177 | 204 | |
Tax credit carryforwards | 103 | $ 109 | |
U.S. Federal [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | [2] | 659 | |
U.S. State [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | [2] | 69 | |
Tax credit carryforwards | [2] | 12 | |
Canada Federal and Provincial (Excluding Quebec) [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | 14 | ||
Research and development expense pool | 103 | ||
Quebec [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | 7 | ||
Research and development expense pool | 74 | ||
Other [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Ordinary loss carryforwards | 24 | ||
Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Capital loss carryforwards | 12 | ||
Research Tax Credit Carryforward [Member] | Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Tax credit carryforwards | $ 91 | ||
[1] | During 2014, all of our U.S. capital loss carryforwards expired unutilized. Accordingly, $440 million of U.S. deferred income tax assets related to the capital loss carryforwards were offset by a corresponding reduction in the valuation allowance. | ||
[2] | As of December 31, 2015, we had a full valuation allowance against our U.S. operations net deferred income tax assets. |
Income Taxes - Balance of Ta100
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Parenthetical) (Details) $ in Millions | Dec. 31, 2015USD ($) |
U.S. Federal [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | $ 1,882 |
U.S. State [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 1,663 |
Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 79 |
Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 62 |
Research Tax Credit Carryforward [Member] | Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 615 |
Research Tax Credit Carryforward [Member] | Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 752 |
Capital Loss Carryforward [Member] | Canadian [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | $ 42 |
Income Taxes - Reconciliatio101
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | ||
Beginning of year | $ 109 | $ 81 |
Increase (decrease) in unrecognized tax benefits resulting from: [Roll Forward] | ||
Positions taken in the current period | 2 | 38 |
Expirations of statute limitations | (2) | 0 |
Settlements with taxing authorities | (1) | (4) |
Change in Canadian foreign exchange rate | (11) | (6) |
End of year | $ 97 | $ 109 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Increase (decrease) in valuation allowance | [1] | $ 109 | $ 51 | $ 572 |
Effect of change in tax rates | [2] | 18 | 0 | 0 |
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | (1) | $ (30) | $ 524 | |
Unrecognized tax benefits that would impact the effective tax rate | 56 | |||
Fibrek Holding Inc. [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Cumulative loss position, period | 3 years | |||
Period of improved profitability | 2 years | |||
Capital Loss Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
(Increase) decrease in valuation allowance | $ 440 | |||
Deferred income tax provision following an operating company realignment [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | $ 38 | |||
[1] | During 2015, we recorded a net increase in our valuation allowance of $109 million primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets.During 2014, we recorded a net increase in our valuation allowance of $51 million, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets, partly offset by an income tax benefit related to the reversal of our valuation allowance related to Fibrek Holding Inc., a Canadian wholly-owned subsidiary in 2014.During 2013, we recorded a net increase in the valuation allowance of $572 million, most of which related to a charge recorded to establish a full valuation allowance against our net U.S. deferred income tax assets. | |||
[2] | In 2015, we recorded an income tax benefit of $18 million as a result of a change in tax rates on deferred income taxes, primarily due to an intercompany asset transfer in connection with an operating company realignment. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) CAD in Millions | Oct. 30, 2014USD ($) | Oct. 30, 2014CAD | Dec. 31, 2015USD ($)site | Dec. 31, 2015CADsite | Dec. 31, 2015CAD | Aug. 03, 2015 | Dec. 31, 2014USD ($) | Jul. 31, 2012 |
Loss Contingencies [Line Items] | ||||||||
Subsidy rate on supercalendered paper exports | 17.87% | 17.87% | 2.04% | |||||
Maximum deficit from partial wind-up of pension plans to be funded | $ 110,000,000 | CAD 150 | ||||||
Number of hazardous waste sites | site | 4 | 4 | ||||||
Environmental liabilities | $ 12,000,000 | $ 18,000,000 | ||||||
Asset retirement obligations | 23,000,000 | $ 22,000,000 | ||||||
Request of repayment of conditional incentive | $ 17,000,000 | CAD 23 | ||||||
Fibrek [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of outstanding shares acquired | 25.40% | |||||||
Amount paid, contingent consideration, business combination | 0 | |||||||
Amount accrued to be contingently distributed | 10,000,000 | CAD 14 | ||||||
Countervailing Duty Investigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contingent loss recorded | 0 | |||||||
Conditional Incentive Noncompliance [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contingent liability recorded | 0 | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Yearly cash deposits made on supercalendered paper exports | $ 25,000,000 |
Share Capital (Details)
Share Capital (Details) - USD ($) | May. 28, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | May. 22, 2012 | Dec. 09, 2010 |
Equity [Line Items] | |||||||
Capital stock, shares authorized | 200,000,000 | ||||||
Common stock, shares authorized | 190,000,000 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares authorized | 10,000,000 | ||||||
Preferred stock, par value | $ 0.001 | ||||||
Preferred stock, shares issued | 0 | 0 | |||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Common stock, shares issued to debtors in creditor protection proceedings | 97,134,954 | ||||||
Shares authorized for issuance as stock incentive awards | 9,000,000 | ||||||
Common stock, shares distributed to debtors in creditor protection proceedings | 3,693,601 | 93,117,807 | |||||
Treasury stock, shares, transferred from plans of reorganization | 323,546 | ||||||
Share repurchase program, aggregate purchase price, increase | $ 50,000,000 | ||||||
Share repurchase program, aggregate purchase price | $ 100,000,000 | ||||||
Share repurchase program, shares, repurchased | 5,500,000 | ||||||
Share repurchase program, cost, repurchased | $ 59,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 24,000,000 | ||||||
Common stock, dividends declared | $ 0 | $ 0 | $ 0 | ||||
Common stock, dividends paid | $ 0 | $ 0 | $ 0 | ||||
Chapter 11 Plan of Reorganization [Member] | |||||||
Equity [Line Items] | |||||||
Treasury stock, shares, transferred from plans of reorganization | 276,662 | ||||||
CCAA Plan of Reorganization [Member] | |||||||
Equity [Line Items] | |||||||
Treasury stock, shares, transferred from plans of reorganization | 46,884 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance as stock incentive awards | 9,000,000 | ||
Share-based compensation expense | $ 12 | $ 6 | $ 8 |
Tax benefit from share-based compensation expense | 0 | $ 0 | $ 0 |
Unrecognized compensation cost related to equity awards | $ 16 | ||
Remaining requisite service period for equity awards to be recognized | 3 years | ||
Stock options granted | 0 | 0 | 692,759 |
Total intrinsic value - stock options exercised | $ 0 | $ 2 | $ 0 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period from the grant date for stock options | 10 years | ||
Expected dividend yield | 0.00% | 0.00% | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period stock options become exercisable | 40 months | ||
Number of shares of common stock received per stock unit converted | 1 | ||
Weighted-average grant-date fair value of awards granted | $ 7.54 | ||
Stock units outstanding | 991,386 | 294,761 | |
Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance | 4,000,000 | ||
Incentive Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock received per stock unit converted | 1 | ||
Weighted-average grant-date fair value of awards granted | $ 7.94 | $ 18.62 | $ 16.15 |
Total fair value - stock units vested | $ 3 | $ 5 | $ 3 |
Stock units outstanding | 1,419,454 | 938,720 | |
Incentive Plan [Member] | Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value of awards granted | $ 18.61 | ||
Deferred Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Director cash fees eligible to be surrendered for equity-based awards, low option | 50.00% | ||
Director cash fees eligible to be surrendered for equity-based awards, high option | 100.00% | ||
Equity-based awards issuable as a percentage of director cash fees surrendered | 110.00% | ||
Premium incentive in the form of additional equity-based awards for cash fees surrendered | 10.00% | ||
Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | $ 0 | $ 0 | $ 0 |
Number of common shares upon which value of cash payments on conversion of stock units is derived | 1 | ||
Stock units outstanding | 79,020 | 49,868 | |
Director [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted to directors that vested but were not settled in period | 115,026 | ||
Maximum [Member] | Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period stock options become exercisable | 4 years | ||
Maximum [Member] | Deferred Compensation Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period stock options become exercisable | 3 years | ||
Settlement period for awards once vested | 3 years | ||
Maximum [Member] | Director [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period stock options become exercisable | 1 year | ||
Settlement period for awards once vested | 3 years | ||
Maximum [Member] | Employees [Member] | Incentive Plan [Member] | RSUs and DSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period stock options become exercisable | 4 years | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retirement eligibility period | 6 months |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price | $ 15.66 | |
Fair value | $ 7.65 | |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 50.00% | |
Risk-free interest rate | 1.80% | |
Expected life in years | 6 years 3 months |
Share-Based Compensation - S107
Share-Based Compensation - Stock Options Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | 1,583,941 | |
Exercised | (41,115) | |
Forfeited | (16,317) | |
Expired | (48,896) | |
Outstanding - end of year | 1,477,613 | 1,583,941 |
Exercisable as of December 31, 2015 | 983,081 | |
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | $ 15.87 | |
Exercised | 13.18 | |
Forfeited | 16.21 | |
Expired | 21.55 | |
Outstanding - end of year | 15.76 | $ 15.87 |
Exercisable as of December 31, 2015 | $ 16.49 | |
Stock Options, Additional Disclosures [Abstract] | ||
Weighted average contractual life - stock options outstanding | 6 years 9 months | 7 years 10 months |
Weighted average contractual life - stock options exercisable | 6 years 6 months | |
Aggregate intrinsic value - stock options outstanding | $ 0 | $ 4,000,000 |
Aggregate intrinsic value - stock options exercisable | $ 0 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and DSU Activity (Details) - Incentive Plan [Member] - RSUs and DSUs [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Nonvested Units Activity [Roll Forward] | |||
Outstanding - beginning of year | 938,720 | ||
Granted | 885,761 | ||
Vested | (374,936) | ||
Forfeited | (30,091) | ||
Outstanding - end of year | 1,419,454 | 938,720 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |||
Outstanding as of December 31, 2014 | $ 15.91 | ||
Granted | 7.94 | $ 18.62 | $ 16.15 |
Vested | 15.58 | ||
Forfeited | 15.53 | ||
Outstanding as of December 31, 2015 | $ 11.03 | $ 15.91 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - PSU Activity (Details) - Performance Shares [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Stock Units Outstanding [Roll Forward] | |
Outstanding - beginning of year | shares | 294,761 |
Granted | shares | 702,829 |
Forfeited | shares | (6,204) |
Outstanding - end of year | shares | 991,386 |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |
Outstanding as of December 31, 2014 | $ / shares | $ 18.61 |
Granted | $ / shares | 7.54 |
Forfeited | $ / shares | 18.61 |
Outstanding as of December 31, 2015 | $ / shares | $ 10.76 |
Operating Leases and Purchas110
Operating Leases and Purchase Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 8 | $ 7 | $ 12 |
Purchase obligations - energy purchase obligations | $ 254 |
Operating Leases and Purchas111
Operating Leases and Purchase Obligations - Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations (Details) $ in Millions | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase Obligations, 2016 | $ 119 | [1] |
Purchase Obligations, 2017 | 91 | [1] |
Purchase Obligations, 2018 | 64 | [1] |
Purchase Obligations, 2019 | 50 | [1] |
Purchase Obligations, 2020 | 41 | [1] |
Purchase Obligations, Thereafter | 24 | [1] |
Purchase Obligations, Total | 389 | [1] |
Operating Leases, 2016 | 6 | |
Operating Leases, 2017 | 5 | |
Operating Leases, 2018 | 4 | |
Operating Leases, 2019 | 4 | |
Operating Leases, 2020 | 4 | |
Operating Leases, Thereafter | 14 | |
Operating Leases, Total | $ 37 | |
[1] | Includes energy purchase obligations of $254 million through 2020 for certain of our pulp and paper mills. |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 | |
Depreciation and amortization | 237 | 243 | 243 | |||||||||
Operating income (loss) | $ (226) | $ 6 | $ 16 | $ (15) | $ (93) | $ (40) | $ (8) | $ (33) | (219) | (174) | (2) | |
Capital expenditures | 185 | 193 | 161 | |||||||||
Market Pulp [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [1] | 889 | 974 | 1,053 | ||||||||
Depreciation and amortization | [1] | 53 | 53 | 52 | ||||||||
Operating income (loss) | [1] | 76 | 63 | 43 | ||||||||
Capital expenditures | [1] | 60 | 23 | 40 | ||||||||
Tissue [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 11 | 0 | 0 | ||||||||
Depreciation and amortization | [2] | 1 | 0 | 0 | ||||||||
Operating income (loss) | [2] | (1) | 0 | 0 | ||||||||
Capital expenditures | [2] | 41 | 0 | 0 | ||||||||
Wood Products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [3] | 536 | 610 | 569 | ||||||||
Depreciation and amortization | [3] | 37 | 33 | 36 | ||||||||
Operating income (loss) | [3] | 2 | 69 | 41 | ||||||||
Capital expenditures | [3] | 43 | 77 | 31 | ||||||||
Newsprint [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,105 | 1,402 | 1,473 | |||||||||
Depreciation and amortization | 64 | 69 | 73 | |||||||||
Operating income (loss) | (23) | 20 | 39 | |||||||||
Capital expenditures | 10 | 39 | 57 | |||||||||
Specialty Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,104 | 1,272 | 1,366 | |||||||||
Depreciation and amortization | 71 | 82 | 77 | |||||||||
Operating income (loss) | 29 | (19) | 39 | |||||||||
Capital expenditures | 13 | 34 | 17 | |||||||||
Segment Total [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 3,645 | 4,258 | 4,461 | |||||||||
Depreciation and amortization | 226 | 237 | 238 | |||||||||
Operating income (loss) | 83 | 133 | 162 | |||||||||
Capital expenditures | 167 | 173 | 145 | |||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 11 | 6 | 5 | |||||||||
Operating income (loss) | (302) | (307) | (164) | |||||||||
Capital expenditures | $ 18 | $ 20 | $ 16 | |||||||||
[1] | Market pulp sales excluded inter-segment sales of $20 million, $19 million and $17 million for the years ended December 31, 2015, 2014 and 2013, respectively. | |||||||||||
[2] | Tissue capital expenditures of $41 million for the year ended December 31, 2015 consisted of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. | |||||||||||
[3] | Wood sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $20 million, $24 million and $18 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Segment Information - Schedu113
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 | |
Capital expenditures | 185 | 193 | 161 | |||||||||
Sales to joint-ventures | 20 | 24 | 18 | |||||||||
Market Pulp [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [1] | 889 | 974 | 1,053 | ||||||||
Capital expenditures | [1] | 60 | 23 | 40 | ||||||||
Market Pulp [Member] | Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 20 | 19 | 17 | |||||||||
Tissue [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 11 | 0 | 0 | ||||||||
Capital expenditures | [2] | $ 41 | $ 0 | $ 0 | ||||||||
[1] | Market pulp sales excluded inter-segment sales of $20 million, $19 million and $17 million for the years ended December 31, 2015, 2014 and 2013, respectively. | |||||||||||
[2] | Tissue capital expenditures of $41 million for the year ended December 31, 2015 consisted of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. |
Segment Information - Summary o
Segment Information - Summary of Sales by Country (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,421 | 2,809 | 2,834 | ||||||||
Foreign countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,224 | 1,449 | 1,627 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 476 | 540 | 546 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 150 | 174 | 168 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 70 | 107 | 122 | ||||||||
Other countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 528 | $ 628 | $ 791 |
Segment Information - Summar115
Segment Information - Summary of Sales by Country (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Percentage (of consolidated sales) used to determine a significant portion of sales per individual country (in the other countries group) | 2.00% | 2.00% | 2.00% |
Segment Information - Summar116
Segment Information - Summary of Long-Lived Assets, by Country (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 2,022 | $ 2,161 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 677 | 791 |
Foreign countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,345 | 1,370 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,323 | 1,346 |
South Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 22 | $ 24 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |
Condensed Consolidating Fina118
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 |
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,826 | 3,240 | 3,446 | ||||||||
Depreciation and amortization | 237 | 243 | 243 | ||||||||
Distribution costs | 460 | 518 | 521 | ||||||||
Selling, general and administrative expenses | 160 | 155 | 166 | ||||||||
Closure costs, impairment and other related charges | 181 | 278 | 89 | ||||||||
Net gain on disposition of assets | 0 | (2) | (2) | ||||||||
Operating income (loss) | (226) | 6 | 16 | (15) | (93) | (40) | (8) | (33) | (219) | (174) | (2) |
Interest expense | (41) | (47) | (51) | ||||||||
Other income (expense), net | 4 | (83) | (62) | ||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | (256) | (304) | (115) | ||||||||
Income tax benefit (provision) | 1 | 30 | (524) | ||||||||
Net income (loss) including noncontrolling interests | (255) | (274) | (639) | ||||||||
Net (income) loss attributable to noncontrolling interests | (2) | (3) | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ (214) | $ (6) | $ (4) | $ (33) | $ (109) | $ (116) | $ (2) | $ (50) | (257) | (277) | (639) |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (126) | (724) | (296) | ||||||||
Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Distribution costs | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 19 | 17 | 18 | ||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | (19) | (17) | (18) | ||||||||
Interest expense | (75) | (71) | (89) | ||||||||
Other income (expense), net | 0 | (1) | (60) | ||||||||
Equity in (loss) income of subsidiaries | (163) | (188) | (472) | ||||||||
Income (loss) before income taxes | (257) | (277) | (639) | ||||||||
Income tax benefit (provision) | 0 | 0 | 0 | ||||||||
Net income (loss) including noncontrolling interests | (257) | (277) | (639) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (257) | (277) | (639) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (126) | (724) | (296) | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 2,975 | 3,475 | 3,674 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,780 | 3,225 | 3,356 | ||||||||
Depreciation and amortization | 93 | 94 | 100 | ||||||||
Distribution costs | 168 | 168 | 172 | ||||||||
Selling, general and administrative expenses | 55 | 46 | 47 | ||||||||
Closure costs, impairment and other related charges | 176 | 51 | 61 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | (297) | (109) | (62) | ||||||||
Interest expense | 0 | (4) | (4) | ||||||||
Other income (expense), net | 37 | (20) | 66 | ||||||||
Equity in (loss) income of subsidiaries | 20 | 0 | 0 | ||||||||
Income (loss) before income taxes | (240) | (133) | 0 | ||||||||
Income tax benefit (provision) | 36 | 2 | (564) | ||||||||
Net income (loss) including noncontrolling interests | (204) | (131) | (564) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (204) | (131) | (564) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (169) | (250) | (346) | ||||||||
Non-guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 2,223 | 2,807 | 2,956 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 1,601 | 2,036 | 2,247 | ||||||||
Depreciation and amortization | 144 | 149 | 143 | ||||||||
Distribution costs | 293 | 352 | 357 | ||||||||
Selling, general and administrative expenses | 86 | 92 | 101 | ||||||||
Closure costs, impairment and other related charges | 5 | 227 | 28 | ||||||||
Net gain on disposition of assets | (2) | (2) | |||||||||
Operating income (loss) | 94 | (47) | 82 | ||||||||
Interest expense | (12) | (8) | (8) | ||||||||
Other income (expense), net | 13 | (26) | (18) | ||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | 95 | (81) | 56 | ||||||||
Income tax benefit (provision) | (34) | 27 | (21) | ||||||||
Net income (loss) including noncontrolling interests | 61 | (54) | 35 | ||||||||
Net (income) loss attributable to noncontrolling interests | (2) | (3) | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | 59 | (57) | 35 | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | 155 | (385) | 217 | ||||||||
Consolidating Adjustments [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | (1,553) | (2,024) | (2,169) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | (1,555) | (2,021) | (2,157) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Distribution costs | (1) | (2) | (8) | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||||||||
Net gain on disposition of assets | 0 | 0 | |||||||||
Operating income (loss) | 3 | (1) | (4) | ||||||||
Interest expense | 46 | 36 | 50 | ||||||||
Other income (expense), net | (46) | (36) | (50) | ||||||||
Equity in (loss) income of subsidiaries | 143 | 188 | 472 | ||||||||
Income (loss) before income taxes | 146 | 187 | 468 | ||||||||
Income tax benefit (provision) | (1) | 1 | 61 | ||||||||
Net income (loss) including noncontrolling interests | 145 | 188 | 529 | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | 145 | 188 | 529 | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ 14 | $ 635 | $ 129 |
Condensed Consolidating Fina119
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Nov. 16, 2015 | [1] | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||||
Cash and cash equivalents | $ 58 | $ 337 | $ 322 | $ 263 | ||
Accounts receivable, net | 459 | 539 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories, net | 541 | 542 | ||||
Note, advance and interest receivable from parent | 0 | 0 | ||||
Notes and interest receivable from affiliates | 0 | 0 | ||||
Other current assets | 53 | 46 | ||||
Total current assets | 1,111 | 1,464 | ||||
Fixed assets, net | 1,810 | 1,985 | ||||
Amortizable intangible assets, net | 105 | 62 | ||||
Goodwill | 59 | $ 59 | 0 | |||
Deferred income tax assets | 982 | 1,289 | ||||
Notes receivable from parent | 0 | 0 | ||||
Notes receivable from affiliates | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||||
Other assets | 153 | 114 | ||||
Total assets | 4,220 | 4,914 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 436 | 518 | ||||
Current portion of long-term debt | 1 | 1 | ||||
Accounts payable to affiliates | 0 | 0 | ||||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||||
Notes and interest payable to affiliates | 0 | 0 | ||||
Total current liabilities | 437 | 519 | ||||
Long-term debt, net of current portion | 590 | 589 | ||||
Notes payable to subsidiaries | 0 | 0 | ||||
Notes payable to affiliates | 0 | |||||
Pension and other postretirement benefit obligations | 1,186 | 1,616 | ||||
Deferred income tax liabilities | 2 | 3 | ||||
Other liabilities | 60 | 70 | ||||
Total liabilities | 2,275 | 2,797 | ||||
Total equity | 1,945 | 2,117 | 2,839 | 3,125 | ||
Total liabilities and equity | 4,220 | 4,914 | ||||
Parent [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 5 | ||
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable from affiliates | 0 | 0 | ||||
Inventories, net | 0 | 0 | ||||
Note, advance and interest receivable from parent | 0 | 0 | ||||
Notes and interest receivable from affiliates | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Fixed assets, net | 0 | 0 | ||||
Amortizable intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | |||||
Deferred income tax assets | 0 | 0 | ||||
Notes receivable from parent | 0 | 0 | ||||
Notes receivable from affiliates | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 4,067 | 4,096 | ||||
Other assets | 0 | 0 | ||||
Total assets | 4,067 | 4,096 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 5 | 5 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Accounts payable to affiliates | 433 | 386 | ||||
Note, advance and interest payable to subsidiaries | 62 | 287 | ||||
Notes and interest payable to affiliates | 0 | 0 | ||||
Total current liabilities | 500 | 678 | ||||
Long-term debt, net of current portion | 589 | 588 | ||||
Notes payable to subsidiaries | 710 | 388 | ||||
Notes payable to affiliates | 0 | |||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 1 | 1 | ||||
Total liabilities | 1,800 | 1,655 | ||||
Total equity | 2,267 | 2,441 | ||||
Total liabilities and equity | 4,067 | 4,096 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 13 | 257 | 165 | 171 | ||
Accounts receivable, net | 322 | 383 | ||||
Accounts receivable from affiliates | 421 | 384 | ||||
Inventories, net | 257 | 251 | ||||
Note, advance and interest receivable from parent | 62 | 287 | ||||
Notes and interest receivable from affiliates | 48 | 318 | ||||
Other current assets | 22 | 20 | ||||
Total current assets | 1,145 | 1,900 | ||||
Fixed assets, net | 629 | 742 | ||||
Amortizable intangible assets, net | 46 | 0 | ||||
Goodwill | 59 | |||||
Deferred income tax assets | 0 | 0 | ||||
Notes receivable from parent | 710 | 388 | ||||
Notes receivable from affiliates | 105 | |||||
Investments in consolidated subsidiaries and affiliates | 2,047 | 2,020 | ||||
Other assets | 48 | 49 | ||||
Total assets | 4,789 | 5,099 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 189 | 193 | ||||
Current portion of long-term debt | 1 | 1 | ||||
Accounts payable to affiliates | 260 | 93 | ||||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||||
Notes and interest payable to affiliates | 0 | 0 | ||||
Total current liabilities | 450 | 287 | ||||
Long-term debt, net of current portion | 1 | 1 | ||||
Notes payable to subsidiaries | 0 | 0 | ||||
Notes payable to affiliates | 0 | |||||
Pension and other postretirement benefit obligations | 352 | 414 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 24 | 29 | ||||
Total liabilities | 827 | 731 | ||||
Total equity | 3,962 | 4,368 | ||||
Total liabilities and equity | 4,789 | 5,099 | ||||
Non-guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 45 | 80 | 157 | 87 | ||
Accounts receivable, net | 137 | 156 | ||||
Accounts receivable from affiliates | 272 | 95 | ||||
Inventories, net | 290 | 300 | ||||
Note, advance and interest receivable from parent | 0 | 0 | ||||
Notes and interest receivable from affiliates | 0 | 0 | ||||
Other current assets | 31 | 26 | ||||
Total current assets | 775 | 657 | ||||
Fixed assets, net | 1,181 | 1,243 | ||||
Amortizable intangible assets, net | 59 | 62 | ||||
Goodwill | 0 | |||||
Deferred income tax assets | 981 | 1,287 | ||||
Notes receivable from parent | 0 | 0 | ||||
Notes receivable from affiliates | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||||
Other assets | 105 | 65 | ||||
Total assets | 3,101 | 3,314 | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 242 | 320 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Accounts payable to affiliates | 0 | 0 | ||||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||||
Notes and interest payable to affiliates | 48 | 318 | ||||
Total current liabilities | 290 | 638 | ||||
Long-term debt, net of current portion | 0 | 0 | ||||
Notes payable to subsidiaries | 0 | 0 | ||||
Notes payable to affiliates | 105 | |||||
Pension and other postretirement benefit obligations | 834 | 1,202 | ||||
Deferred income tax liabilities | 2 | 3 | ||||
Other liabilities | 35 | 40 | ||||
Total liabilities | 1,266 | 1,883 | ||||
Total equity | 1,835 | 1,431 | ||||
Total liabilities and equity | 3,101 | 3,314 | ||||
Consolidating Adjustments [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable from affiliates | (693) | (479) | ||||
Inventories, net | (6) | (9) | ||||
Note, advance and interest receivable from parent | (62) | (287) | ||||
Notes and interest receivable from affiliates | (48) | (318) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (809) | (1,093) | ||||
Fixed assets, net | 0 | 0 | ||||
Amortizable intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | |||||
Deferred income tax assets | 1 | 2 | ||||
Notes receivable from parent | (710) | (388) | ||||
Notes receivable from affiliates | (105) | |||||
Investments in consolidated subsidiaries and affiliates | (6,114) | (6,116) | ||||
Other assets | 0 | 0 | ||||
Total assets | (7,737) | (7,595) | ||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Accounts payable to affiliates | (693) | (479) | ||||
Note, advance and interest payable to subsidiaries | (62) | (287) | ||||
Notes and interest payable to affiliates | (48) | (318) | ||||
Total current liabilities | (803) | (1,084) | ||||
Long-term debt, net of current portion | 0 | 0 | ||||
Notes payable to subsidiaries | (710) | (388) | ||||
Notes payable to affiliates | (105) | |||||
Pension and other postretirement benefit obligations | 0 | 0 | ||||
Deferred income tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | (1,618) | (1,472) | ||||
Total equity | (6,119) | (6,123) | ||||
Total liabilities and equity | $ (7,737) | $ (7,595) | ||||
[1] | Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to Atlas Paper’s assembled workforce, expected synergies with certain of our existing assets and expected future cash flows. Goodwill was assigned to the tissue segment for the purposes of impairment testing in the future. Goodwill recognized is not deductible for tax purposes. |
Condensed Consolidating Fina120
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 138 | $ 186 | $ 206 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (185) | (193) | (161) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | (159) | 0 | 0 |
Monetization of timber notes | 0 | 22 | 0 |
Disposition of assets | 0 | 10 | 4 |
Proceeds from insurance settlements | 0 | 0 | 4 |
Decrease (increase) in countervailing duties cash deposits | (4) | 0 | 0 |
Decrease (increase) in restricted cash | 0 | 1 | 8 |
Decrease (increase) in deposit requirements for letters of credit, net | (4) | 1 | (2) |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
Decrease of notes receivable from affiliates | 0 | ||
Other investing activities, net | 0 | (2) | (4) |
Net cash provided by (used in) investing activities | (352) | (161) | (151) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 594 |
Premium paid on extinguishment of debt | 0 | 0 | (84) |
Payments of debt | 0 | (2) | (503) |
Payments of financing and credit facility fees | (3) | (1) | (9) |
Purchases of treasury stock | (59) | 0 | 0 |
Dividend to noncontrolling interest | 0 | (4) | (2) |
Contribution of capital from noncontrolling interest | 0 | 0 | 8 |
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Decrease of notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | (62) | (7) | 4 |
Effect of exchange rate changes on cash and cash equivalents | (3) | (3) | 0 |
Net increase (decrease) in cash and cash equivalents | (279) | 15 | 59 |
Cash and cash equivalents: | |||
Beginning of year | 337 | 322 | 263 |
End of year | 58 | 337 | 322 |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | (5) |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 0 | 0 | |
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in countervailing duties cash deposits | 0 | ||
Decrease (increase) in restricted cash | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
Decrease of notes receivable from affiliates | 0 | ||
Other investing activities, net | 0 | 0 | |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 594 | ||
Premium paid on extinguishment of debt | (84) | ||
Payments of debt | 0 | (501) | |
Payments of financing and credit facility fees | 0 | 0 | (9) |
Purchases of treasury stock | (59) | ||
Dividend to noncontrolling interest | 0 | 0 | |
Contribution of capital from noncontrolling interest | 0 | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 59 | ||
Decrease of notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | (5) |
Cash and cash equivalents: | |||
Beginning of year | 0 | 0 | 5 |
End of year | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 151 | 144 | 41 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (101) | (76) | (55) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | (159) | ||
Monetization of timber notes | 22 | ||
Disposition of assets | 4 | 0 | |
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in countervailing duties cash deposits | (4) | ||
Decrease (increase) in restricted cash | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Investment in common stock of subsidiary | (234) | ||
Advance to parent | (59) | ||
Decrease of notes receivable from affiliates | 164 | ||
Other investing activities, net | 0 | 0 | |
Net cash provided by (used in) investing activities | (393) | (50) | (55) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Payments of debt | (1) | 0 | |
Payments of financing and credit facility fees | (2) | (1) | 0 |
Purchases of treasury stock | 0 | ||
Dividend to noncontrolling interest | 0 | 0 | |
Contribution of capital from noncontrolling interest | 8 | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Decrease of notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | (2) | (2) | 8 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | (244) | 92 | (6) |
Cash and cash equivalents: | |||
Beginning of year | 257 | 165 | 171 |
End of year | 13 | 257 | 165 |
Non-guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | (13) | 42 | 170 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (84) | (117) | (106) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 6 | 4 | |
Proceeds from insurance settlements | 4 | ||
Decrease (increase) in countervailing duties cash deposits | 0 | ||
Decrease (increase) in restricted cash | 1 | 8 | |
Decrease (increase) in deposit requirements for letters of credit, net | (4) | 1 | (2) |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
Decrease of notes receivable from affiliates | 0 | ||
Other investing activities, net | (2) | (4) | |
Net cash provided by (used in) investing activities | (88) | (111) | (96) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Payments of debt | (1) | (2) | |
Payments of financing and credit facility fees | (1) | 0 | 0 |
Purchases of treasury stock | 0 | ||
Dividend to noncontrolling interest | (4) | (2) | |
Contribution of capital from noncontrolling interest | 0 | ||
Issuance of common stock | 234 | ||
Advance to subsidiary | 0 | ||
Decrease of notes payable to affiliate | (164) | ||
Net cash provided by (used in) financing activities | 69 | (5) | (4) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (3) | |
Net increase (decrease) in cash and cash equivalents | (35) | (77) | 70 |
Cash and cash equivalents: | |||
Beginning of year | 80 | 157 | 87 |
End of year | 45 | 80 | 157 |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | 0 |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 0 | 0 | |
Proceeds from insurance settlements | 0 | ||
Decrease (increase) in countervailing duties cash deposits | 0 | ||
Decrease (increase) in restricted cash | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | 0 |
Investment in common stock of subsidiary | 234 | ||
Advance to parent | 59 | ||
Decrease of notes receivable from affiliates | (164) | ||
Other investing activities, net | 0 | 0 | |
Net cash provided by (used in) investing activities | 129 | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | ||
Premium paid on extinguishment of debt | 0 | ||
Payments of debt | 0 | 0 | |
Payments of financing and credit facility fees | 0 | 0 | 0 |
Purchases of treasury stock | 0 | ||
Dividend to noncontrolling interest | 0 | 0 | |
Contribution of capital from noncontrolling interest | 0 | ||
Issuance of common stock | (234) | ||
Advance to subsidiary | (59) | ||
Decrease of notes payable to affiliate | 164 | ||
Net cash provided by (used in) financing activities | (129) | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning of year | 0 | 0 | 0 |
End of year | $ 0 | $ 0 | $ 0 |
Quarterly Information - Schedul
Quarterly Information - Schedule of Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 894 | $ 905 | $ 926 | $ 920 | $ 1,055 | $ 1,096 | $ 1,091 | $ 1,016 | $ 3,645 | $ 4,258 | $ 4,461 |
Operating (loss) income | (226) | 6 | 16 | (15) | (93) | (40) | (8) | (33) | (219) | (174) | (2) |
Net income (loss) attributable to Resolute Forest Products Inc. | $ (214) | $ (6) | $ (4) | $ (33) | $ (109) | $ (116) | $ (2) | $ (50) | $ (257) | $ (277) | $ (639) |
Basic net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (1.15) | $ (1.23) | $ (0.02) | $ (0.53) | $ (2.78) | $ (2.93) | $ (6.75) |
Diluted net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (1.15) | $ (1.23) | $ (0.02) | $ (0.53) | $ (2.78) | $ (2.93) | $ (6.75) |