Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
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 | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RFP | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 89,750,964 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 320 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
Sales | $ 3,545 | $ 3,645 | $ 4,258 | |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,716 | 2,826 | 3,240 | |
Depreciation and amortization | [1] | 206 | 237 | 243 |
Distribution costs | 440 | 460 | 518 | |
Selling, general and administrative expenses | 149 | 160 | 155 | |
Closure costs, impairment and other related charges | 62 | 181 | 278 | |
Net gain on disposition of assets | (2) | 0 | (2) | |
Operating income (loss) | (26) | (219) | (174) | |
Interest expense | (38) | (41) | (47) | |
Other income (expense), net | 7 | 4 | (83) | |
Income (loss) before income taxes | (57) | (256) | (304) | |
Income tax benefit (provision) | (19) | 1 | 30 | |
Net income (loss) including noncontrolling interests | (76) | (255) | (274) | |
Net income attributable to noncontrolling interests | (5) | (2) | (3) | |
Net income (loss) attributable to Resolute Forest Products Inc. | $ (81) | $ (257) | $ (277) | |
Net loss per share attributable to Resolute Forest Products Inc. common shareholders: | ||||
Basic (in dollars per share) | $ (0.90) | $ (2.78) | $ (2.93) | |
Diluted (in dollars per share) | $ (0.90) | $ (2.78) | $ (2.93) | |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||
Basic | 89.9 | 92.4 | 94.6 | |
Diluted | 89.9 | 92.4 | 94.6 | |
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss including noncontrolling interests | $ (76) | $ (255) | $ (274) |
Unamortized prior service credits | |||
Change in unamortized prior service credits | (17) | (16) | 75 |
Income tax benefit | 0 | 6 | 1 |
Change in unamortized prior service credits, net of tax | (17) | (10) | 76 |
Unamortized actuarial losses | |||
Change in unamortized actuarial losses | (183) | 208 | (638) |
Income tax benefit (provision) | 31 | (63) | 116 |
Change in unamortized actuarial losses, net of tax | (152) | 145 | (522) |
Foreign currency translation | 1 | (4) | (1) |
Other comprehensive (loss) income, net of tax | (168) | 131 | (447) |
Comprehensive loss including noncontrolling interests | (244) | (124) | (721) |
Comprehensive income attributable to noncontrolling interests | (5) | (2) | (3) |
Comprehensive loss attributable to Resolute Forest Products Inc. | $ (249) | $ (126) | $ (724) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 35 | $ 58 |
Accounts receivable, net: | ||
Trade | 358 | 377 |
Other | 83 | 92 |
Inventories, net | 570 | 541 |
Other current assets | 35 | 43 |
Total current assets | 1,081 | 1,111 |
Fixed assets, net | 1,842 | 1,810 |
Amortizable intangible assets, net | 70 | 105 |
Goodwill | 81 | 59 |
Deferred income tax assets | 1,039 | 982 |
Other assets | 164 | 153 |
Total assets | 4,277 | 4,220 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 466 | 436 |
Current portion of long-term debt | 1 | 1 |
Total current liabilities | 467 | 437 |
Long-term debt, net of current portion | 761 | 590 |
Pension and other postretirement benefit obligations | 1,281 | 1,186 |
Deferred income tax liabilities | 2 | 2 |
Other liabilities | 55 | 60 |
Total liabilities | 2,566 | 2,275 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 117.8 shares issued and 89.8 shares outstanding as of December 31, 2016; 117.5 shares issued and 89.5 shares outstanding as of December 31, 2015 | 0 | 0 |
Additional paid-in capital | 3,775 | 3,765 |
Deficit | (1,207) | (1,126) |
Accumulated other comprehensive loss | (755) | (587) |
Treasury stock at cost, 28.0 shares as of December 31, 2016 and December 31, 2015 | (120) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,693 | 1,932 |
Noncontrolling interests | 18 | 13 |
Total equity | 1,711 | 1,945 |
Total liabilities and equity | $ 4,277 | $ 4,220 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 117.8 | 117.5 |
Common stock, shares outstanding | 89.8 | 89.5 |
Treasury stock, shares | 28 | 28 |
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, 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 options exercised and stock unit awards 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 options exercised and stock unit awards 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 10 | 10 | |||||
Net income (loss) | (76) | (81) | 5 | ||||
Stock options exercised and stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | (168) | (168) | 0 | ||||
Ending Balance at Dec. 31, 2016 | $ 1,711 | $ 0 | $ 3,775 | $ (1,207) | $ (755) | $ (120) | $ 18 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share repurchase program, shares, repurchased | 0 | 5.5 | |
Common Stock [Member] | |||
Stock options exercised and stock unit awards vested, net of forfeitures for employee withholding taxes | 0.3 | 0.2 | 0.3 |
Treasury Stock [Member] | |||
Share repurchase program, shares, repurchased | 5.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash flows from operating activities: | ||||
Net loss including noncontrolling interests | $ (76) | $ (255) | $ (274) | |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | ||||
Share-based compensation | 11 | 12 | 6 | |
Depreciation and amortization | [1] | 206 | 237 | 243 |
Closure costs, impairment and other related charges | 59 | 176 | 263 | |
Inventory write-downs related to closures | 7 | 2 | 17 | |
Deferred income taxes | 14 | 3 | (36) | |
Net pension contributions and other postretirement benefit payments | (125) | (62) | (157) | |
Net gain on disposition of assets | (2) | 0 | (2) | |
(Gain) loss on translation of foreign currency denominated deferred income taxes | (28) | 199 | 107 | |
Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | 27 | (184) | (82) | |
Gain on disposition of equity method investment | [2] | (5) | 0 | 0 |
Net planned major maintenance payments | 3 | 3 | 0 | |
Write-down of equity method investment | [3] | 0 | 0 | 61 |
Changes in working capital: | ||||
Accounts receivable | 26 | 87 | 106 | |
Inventories | (37) | 10 | (31) | |
Other current assets | 7 | (4) | (3) | |
Accounts payable and accrued liabilities | (3) | (85) | (44) | |
Other, net | 3 | 5 | 12 | |
Net cash provided by operating activities | 81 | 138 | 186 | |
Cash flows from investing activities: | ||||
Cash invested in fixed assets | (249) | (185) | (193) | |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | (159) | 0 | |
Acquisition of a sawmill in Senneterre, Quebec | (6) | 0 | 0 | |
Monetization of timber notes | 0 | 0 | 22 | |
Disposition of assets | 5 | 0 | 10 | |
Increase in countervailing duty cash deposits | (23) | (4) | 0 | |
(Increase) decrease in deposit requirements for letters of credit, net | 0 | (4) | 1 | |
Other investing activities, net | 0 | 0 | (1) | |
Net cash provided by (used in) investing activities | (273) | (352) | (161) | |
Cash flows from financing activities: | ||||
Net borrowings under revolving credit facilities | 125 | 0 | 0 | |
Issuance of long-term debt | 46 | 0 | 0 | |
Payments of debt | (1) | 0 | (2) | |
Payments of financing and credit facility fees | (1) | (3) | (1) | |
Purchases of treasury stock | 0 | (59) | 0 | |
Dividend to noncontrolling interest | 0 | 0 | (4) | |
Net cash provided by (used in) financing activities | 169 | (62) | (7) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | (3) | (3) | |
Net increase (decrease) in cash and cash equivalents | (23) | (279) | 15 | |
Cash and cash equivalents: | ||||
Beginning of year | 58 | 337 | 322 | |
End of year | 35 | 58 | 337 | |
Cash paid (received) during the year for: | ||||
Interest | 40 | 40 | 42 | |
Income taxes, net | $ 3 | $ 3 | $ (1) | |
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) | |||
[2] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot, Quebec, in which we had a 50% interest, resulting in a gain on disposition of $5 million. | |||
[3] | 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Capitalized interest paid | $ 7 | $ 5 | $ 3 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
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 over 70 countries. We own or operate over 40 pulp, paper, tissue and wood products facilities, as well as power generation assets in the United States and 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. Certain prior period amounts in our Consolidated Balance Sheets and footnotes have been reclassified to conform to the 2016 presentation. The reclassifications had no effect on total assets. 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, 2016 , 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. Change in depreciable lives of machinery and equipment We periodically review the estimated economic useful lives of our fixed assets. Based on this review, during the first quarter of 2016, we prospectively changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. As a result, effective January 1, 2016, the estimated useful lives of machinery and equipment were changed to a range of five to 25 years , increasing the weighted-average estimated useful lives of machinery and equipment by two years . The effect of this change in estimate for the year ended December 31, 2016 was to reduce “Depreciation and amortization”, “ Net loss attributable to Resolute Forest Products Inc. ”, and basic and diluted “ Net loss per share attributable to Resolute Forest Products Inc. common shareholders ” in our Consolidated Statement of Operations as follows: (In millions, except per share amounts) 2016 Depreciation and amortization $ 12 Net loss attributable to Resolute Forest Products Inc. 6 Basic net loss per share attributable to Resolute Forest Products Inc. 0.07 Diluted net loss per share attributable to Resolute Forest Products Inc. 0.07 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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 and goodwill. 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 in “ Interest expense ” in our Consolidated Statements of Operations 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” or “Other 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” 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. Business Combination We use the acquisition method in accounting for a business combination. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Transaction costs, as well as costs to integrate acquired companies, are expensed as incurred in our Consolidated Statements of Operations. 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 fixed assets, 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 carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income 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 accrued interest and penalties related to unrecognized tax benefits as a component of the income tax expense. Pension and OPEB plans For our defined benefit plans, we recognize a liability or an asset for pension and OPEB obligations net of the fair value of plan assets. A liability is recognized for a plan’s under-funded status and an asset is recognized for a plan’s over-funded status. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. We recognize net periodic benefit cost 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 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 (as defined in Note 17, “Share-Based Compensation ”) 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. 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 rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly 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 rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate 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 adopted In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”, which requires that the acquirer record a measurement-period adjustment and the cumulative effect of the adjustment on earnings in the reporting period in which the adjustment amount is determined. This ASU is effective for fiscal year beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We adopted this ASU on October 1, 2016, in connection with the accounting for measurement-period adjustments related to the acquisition of Atlas Paper Holdings, Inc. and its subsidiaries (“Atlas Tissue”), as further discussed in Note 3, “Acquisition of Atlas Paper Holdings, Inc. ” In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which is intended to simplify several aspects of the accounting for share-based payment transactions. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU on October 1, 2016. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. Accounting pronouncements not yet adopted 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 plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will not materially impact our results of operations, financial position or cash flows. 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 plan to adopt this standard on January 1, 2019. We are still evaluating the impact of this standard on our results of operations and financial position as implementation of this project is at the assessment stage. In March 2016, April 2016, May 2016, and December 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing,” ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” respectively, which further affect the guidance of ASU 2014-09. These updates are effective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016. We plan to adopt these standards on January 1, 2018. We are still evaluating the impact of these standards on our results of operations and financial position as implementation of this project is at the assessment stage. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which introduces the current expected credit losses model in the estimation of credit losses on financial instruments. This update is effective retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We plan to adopt this ASU on January 1, 2019. We are still evaluating the impact of this accounting guidance on our results of operations and financial position as implementation of this project is at the assessment stage. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual period. All amendments to the guidance shall be adopted in the same period on a retrospective basis. The adoption of this accounting guidance will not materially impact the presentation of our cash flows. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory until the transferred assets are sold to a third party or recovered through use. This update is effective on a modified retrospective approach for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an annual period, we adopted this ASU on January 1, 2017, resulting in a decrease in “Other assets” of $35 million and an increase in deferred tax assets of $32 million , with a cumulative-effect adjustment of $3 million to “Deficit” in our Consolidated Balance Sheet as of that date. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual period. We plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our Consolidated Statements of Cash Flows. Restricted cash included in our Consolidated Balance Sheet as of December 31, 2016, was $38 million . In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is not permitted. The adoption of this accounting guidance will not materially impact our results of operations, financial position or cash flows. |
Acquisition of Atlas Inc.
Acquisition of Atlas Inc. | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition of Atlas Paper Holdings Inc. | Note 3. Acquisition of Atlas Paper Holdings, Inc. On November 16, 2015 (the “acquisition date”), we acquired Atlas Tissue, a manufacturer of a range of tissue products for the away-from-home and 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 Tissue 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 final allocation of the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date: (In millions) Preliminary Allocation of Purchase Price Measurement-Period Adjustments (1) Final Allocation of Purchase Price Accounts receivable $ 13 $ — $ 13 Inventories 12 (1 ) 11 Other current assets 1 — 1 Current assets 26 (1 ) 25 Fixed assets 46 — 46 Amortizable intangible assets (2) 46 (31 ) 15 Goodwill (3) 59 22 81 Other assets 1 — 1 Total assets acquired $ 178 $ (10 ) $ 168 Cash overdraft $ 2 $ — $ 2 Accounts payable and accrued liabilities 11 — 11 Current liabilities assumed 13 — 13 Deferred income tax liabilities 10 (10 ) — Total liabilities assumed $ 23 $ (10 ) $ 13 Net assets acquired $ 155 $ — $ 155 Fair value of consideration transferred 157 — 157 Recovery of consideration recorded in “Accounts receivable, net” in our Consolidated Balance Sheet as of December 31, 2015 (2 ) — (2 ) $ 155 $ — $ 155 (1) Based on new information relating to facts and circumstances that existed as of the acquisition date, we finalized the allocation of the purchase price of Atlas Tissue during the measurement period. (2) 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% . (3) 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 Tissue’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. Goodwill recognized is not deductible for tax purposes. We began consolidating the results of operations, financial position and cash flows of Atlas Tissue in our Consolidated Financial Statements as of the acquisition date. Atlas Tissue’s results of operations are included in the tissue segment. The amount of Atlas Tissue’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 Tissue 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 $ 3,730 $ 4,330 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 Tissue’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, 2016 | |
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, 2016 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Mokpo, South Korea (1) $ 13 $ — $ — $ 13 Permanent closure Paper machine in Augusta, Georgia — 32 4 36 Other 9 3 1 13 $ 22 $ 35 $ 5 $ 62 (1) Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. 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. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 2015 and 2014 , was comprised of the following: (In millions) 2016 2015 2014 Foreign exchange loss $ (7 ) $ (4 ) $ (32 ) Gain on disposition of equity method investment (1) 5 — — Write-down of equity method investment (2) — — (61 ) Miscellaneous income 9 8 10 $ 7 $ 4 $ (83 ) (1) On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot, Quebec, in which we had a 50% interest, resulting in a gain on disposition of $5 million . (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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2015 $ 84 $ (667 ) $ (4 ) $ (587 ) Other comprehensive (loss) income before reclassifications (1 ) (189 ) 1 (189 ) Amounts reclassified from accumulated other comprehensive loss (1) (16 ) 37 — 21 Net current period other comprehensive (loss) income (17 ) (152 ) 1 (168 ) Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2016 , 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) — Income tax (provision) benefit $ (16 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 49 Cost of sales, excluding depreciation, amortization and distribution costs (1) (12 ) Income tax (provision) benefit $ 37 Net of tax Total Reclassifications $ 21 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, 2016 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Note 7. Net Loss Per Share The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) 2016 2015 2014 Stock options 1.4 1.5 1.6 Stock unit awards 2.6 1.4 1.3 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, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 8. Inventories, Net Inventories, net as of December 31, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Raw materials and work in process $ 171 $ 152 Finished goods 183 179 Mill stores and other supplies 216 210 $ 570 $ 541 In 2016, we recorded charges of $7 million for write-downs of mill stores and other supplies, primarily as a result of the permanent closure of a newsprint machine at our Augusta mill. 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, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Note 9. Fixed Assets, Net Fixed assets, net as of December 31, 2016 and 2015 , were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2016 2015 Land and land improvements 5 – 10 $ 77 $ 93 Buildings 2 – 40 257 302 Machinery and equipment (1)(2) 5 – 25 2,264 2,313 Hydroelectric power plants 10 – 40 287 287 Timberlands and timberlands improvements 3 – 20 109 99 Construction in progress (2) 263 146 3,257 3,240 Less: Accumulated depreciation (1,415 ) (1,430 ) $ 1,842 $ 1,810 (1) As discussed in Note 1, “Organization and Basis of Presentation ,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. As a result, effective January 1, 2016, the estimated useful lives of machinery and equipment were changed to a range of five to 25 years , increasing the weighted-average estimated useful lives of machinery and equipment by two years . (2) Internal-use software included in fixed assets, net as of December 31, 2016 and 2015 , was as follows: (In millions) 2016 2015 Machinery and equipment $ 83 $ 58 Construction in progress 13 10 96 68 Less: Accumulated depreciation (27 ) (16 ) $ 69 $ 52 Depreciation expense related to internal-use software is estimated to be $12 million for each of the next three years and $8 million in both 2020 and 2021. |
Amortizable Intangible Assets,
Amortizable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Amortizable Intangible Assets, Net | Note 10. Amortizable Intangible Assets, Net Amortizable intangible assets, net as of December 31, 2016 and 2015 , were comprised of the following: 2016 2015 (Dollars in millions) Estimated Useful Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 4 $ 15 $ 19 $ 4 $ 15 Energy contracts 15 – 25 52 11 41 52 8 44 Customer relationships (2) 10 – 15 14 1 13 44 — 44 Other (2) 1 — 1 2 — 2 $ 86 $ 16 $ 70 $ 117 $ 12 $ 105 (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 or 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 Tissue, we identified amortizable intangible assets primarily related to customer relationships. In 2016, we recorded a decrease of $31 million due to measurement-period adjustments of the purchase price allocation for Atlas Tissue. For additional information, see Note 3, “Acquisition of Atlas Paper Holdings, Inc. ” Amortization expense related to amortizable intangible assets was $4 million, $3 million and $4 million, for the years ended December 31, 2016, 2015 and 2014, respectively. Amortization expense related to amortizable intangible assets is estimated to be $5 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, 2016 | |
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, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Trade accounts payable $ 346 $ 324 Payroll, bonuses and severance payable 51 56 Accrued interest 5 5 Pension and OPEB obligations 17 17 Book overdrafts 13 — Income and other taxes payable 7 5 Environmental liabilities 5 5 Other 22 24 $ 466 $ 436 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 12. Long-Term Debt Overview Long-term debt, including current portion, as of December 31, 2016 and 2015 , was comprised of the following: (In millions) 2016 2015 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (6 ) (7 ) Unamortized discount (4 ) (4 ) Total senior notes due 2023 590 589 Term loan due 2025 46 — Borrowings under revolving credit facilities 125 — Capital lease obligation 1 2 Total debt 762 591 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 761 $ 590 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 27, 2014, the 2023 Notes and related guarantees were registered under the Securities Act of 1933 (as amended, the “Securities Act”). The 2023 Notes are guaranteed by all of our existing and subsequently acquired or organized direct or indirect wholly-owned U.S. subsidiaries 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. 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% The fair value of the 2023 Notes was $543 million and $440 million as of December 31, 2016 and 2015 , respectively, and was determined by reference to over-the-counter prices (Level 1). Senior Secured Credit Facility On September 7, 2016, we entered into a senior secured credit facility (the “Senior Secured Credit Facility”) for up to $185 million . The Senior Secured Credit Facility provides a term loan of $46 million with a maturity date of September 7, 2025 (“Term Loan”), a revolving credit facility of up to $139 million with a maturity date of September 7, 2022 (“Revolving Credit Facility”), and also provides an uncommitted option to increase the Senior Secured Credit Facility by up to $175 million , subject to certain terms and conditions. The obligations under the Senior Secured Credit Facility are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of our Calhoun, Tennessee, facility and a first priority security interest on the fixtures and equipment located therein. Interest rates under the Senior Secured Credit Facility are based, at the Company’s election, on either a floating rate based on the London Interbank Offered Rate (“LIBOR”), or a base rate, in each case plus a spread over the index. The base rate is the highest of (i) the prime rate; (ii) the federal funds effective rate plus 0.5% ; and (iii) the one-month LIBOR rate plus 1% . The applicable spread over the index fluctuates quarterly based upon the Company’s capitalization ratio, which is defined as the ratio of the Company’s funded indebtedness to the sum of the Company’s funded indebtedness and its net worth. For the Term Loan, the initial applicable spread is 1% for base rate loans and 2% for LIBOR rate loans and thereafter will range from 0.875% to 1.5% for base rate loans, and from 1.875% to 2.5% for LIBOR rate loans. For loans under the Revolving Credit Facility, the initial applicable spread is 0.625% for base rate loans and 1.625% for LIBOR rate loans and thereafter will range from 0.5% to 1.125% for base rate loans, and from 1.5% to 2.125% for LIBOR rate loans. The Senior Secured Credit Facility was issued by eight lenders within the farm credit system and will be eligible for patronage refunds. Patronage refunds are distributions of profits from lenders in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage distributions, which are made in either cash or stock, are received in the year after they were earned. Future refunds will be dependent on future farm credit lender profits, made at the discretion of each farm credit lender. In addition to paying interest on outstanding principal under the Senior Secured Credit Facility, we are required to pay a fee in respect of unutilized commitments under the Revolving Credit Facility equal to 0.325% per annum when average daily utilization under the Revolving Credit Facility for the prior fiscal quarter is less than or equal to 35% of the total revolving commitments, and 0.275% per annum when average daily utilization under the Revolving Credit Facility for the prior fiscal quarter is greater than 35% of the total revolving commitments. The applicable fee for unutilized commitments was initially established at 0.325% per annum. Base rate loans under the Senior Secured Credit Facility may be repaid from time to time at our discretion without premium or penalty. LIBOR rate loans may be repaid from time to time at our discretion, subject to breakage costs, if any. Amounts repaid on the Term Loan may not be subsequently re-borrowed. Principal amounts under the Revolving Credit Facility may be drawn, repaid, and redrawn until September 6, 2022. Pursuant to the Senior Secured Credit Facility, we are also required to maintain a capitalization ratio not greater than 45% at all times, available liquidity of not less than $100 million , and a collateral coverage ratio of not less than 1.8 to 1.0 (each as defined in the Senior Secured Credit Facility). In addition, the Senior Secured Credit Facility contains certain covenants applicable to the Company and its subsidiaries, including, among others: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness; (iii) restrictions on the existence or incurrence of liens; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations, and asset dispositions; (vii) restrictions on transactions with affiliates; and (viii) restrictions on modifications to material indebtedness. The Senior Secured Credit Facility includes customary representations and warranties, and, subject to customary grace periods and notice requirements, also contains certain customary events of default. As of December 31, 2016 , we had $49 million of availability under the Revolving Credit Facility, net of $90 million of borrowings. As of December 31, 2016 , the fair values of the Term Loan and Revolving Credit Facility approximated their carrying values as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). We borrowed an additional $35 million under the Revolving Credit Facility in the first two months of 2017. 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 replaced 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 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, 2016 , we had $384 million of availability under the ABL Credit Facility, net of $35 million of borrowings and $31 million of ordinary course letters of credit outstanding. As of December 31, 2016 , the fair value of the ABL Credit Facility approximated its carrying value as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). We borrowed an additional $80 million under the ABL Credit Facility in the first two months of 2017. The carrying value of assets pledged as collateral for our total debt obligations was approximately $1.3 billion as of December 31, 2016 . Capital lease obligation We have a capital lease obligation for a warehouse with a maturity date of December 1, 2017, which can be renewed for 20 years at our option. Minimum monthly payments are determined by an escalatory price clause. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | Note 13. Pension and Other Postretirement Benefit Plans We have a number of defined contribution plans covering a portion of our U.S. and Canadian employees. Under the U.S. qualified defined contribution plan, employees are allowed to make contributions that we match. In addition, under the U.S. qualified 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 $21 million in 2016 , $20 million in 2015 , and $22 million in 2014 . In addition to the previously described plans, we have multiple contributory and non-contributory defined benefit pension plans covering a 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. We also sponsor a number of OPEB plans (e.g., health care and life insurance plans) for retirees at certain locations. 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, 2016 and 2015 , and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2016 and 2015 , were as follows: Pension Plans OPEB Plans (In millions) 2016 2015 2016 2015 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,068 $ 6,229 $ 174 $ 210 Service cost 20 23 1 1 Interest cost 215 225 7 8 Actuarial loss (gain) 169 (140 ) — (11 ) Participant contributions 8 7 2 2 Plan amendment 1 — — — Settlements (28 ) (65 ) — — Benefits paid (380 ) (410 ) (15 ) (15 ) Effect of foreign currency exchange rate changes 123 (801 ) 3 (21 ) Benefit obligations as of end of year 5,196 5,068 172 174 Change in plan assets: Fair value of plan assets as of beginning of year 4,049 4,808 — — Actual return on plan assets 184 224 — — Employer contributions 141 123 13 13 Participant contributions 8 7 2 2 Settlements (28 ) (65 ) — — Benefits paid (380 ) (410 ) (15 ) (15 ) Effect of foreign currency exchange rate changes 99 (638 ) — — Fair value of plan assets as of end of year 4,073 4,049 — — Funded status as of end of year $ (1,123 ) $ (1,019 ) $ (172 ) $ (174 ) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 3 $ 10 $ — $ — Accounts payable and accrued liabilities (3 ) (3 ) (14 ) (14 ) Pension and OPEB obligations (1,123 ) (1,026 ) (158 ) (160 ) Net obligations recognized $ (1,123 ) $ (1,019 ) $ (172 ) $ (174 ) The total benefit obligations and the total fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $4,958 million and $3,832 million , respectively, as of December 31, 2016 , and were $4,642 million and $3,613 million , respectively, as of December 31, 2015 . 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 $4,903 million and $3,832 million , respectively, as of December 31, 2016 , and were $4,555 million and $3,583 million , respectively, as of December 31, 2015 . The total accumulated benefit obligations for all pension plans were $5,141 million and $5,007 million as of December 31, 2016 and 2015 , respectively. 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, 2016 , 2015 and 2014 , were as follows: Pension Plans OPEB Plans (In millions) 2016 2015 2014 2016 2015 2014 Service cost $ 20 $ 23 $ 26 $ 1 $ 1 $ 1 Interest cost 215 225 274 7 8 11 Expected return on plan assets (247 ) (260 ) (300 ) — — — Amortization of prior service credits (1 ) (2 ) (2 ) (15 ) (14 ) (11 ) Amortization of actuarial losses (gains) 54 84 9 (5 ) (5 ) (4 ) Net periodic benefit cost before special events 41 70 7 (12 ) (10 ) (3 ) Curtailments and settlements — 14 4 — — — $ 41 $ 84 $ 11 $ (12 ) $ (10 ) $ (3 ) 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 $51 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 2017 . 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. 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, 2016 , 2015 and 2014 , were as follows: Pension Plans OPEB Plans 2016 2015 2014 2016 2015 2014 Benefit obligations: Discount rate 3.8 % 4.2 % 4.0 % 3.9 % 4.4 % 4.0 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 4.2 % 4.0 % 4.9 % 4.4 % 4.1 % 5.0 % Expected return on assets 6.2 % 6.3 % 6.5 % 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, 2016 and 2015 , were as follows: 2016 2015 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.0 % 4.2 % 7.2 % 4.4 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.0 % 4.5 % 3.8 % Year that the rate reaches the ultimate trend rate 2028 2028 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 of the 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 2016 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 $ 4 6 % $ 5 4 % $ (3 ) (5 )% $ (4 ) (4 )% 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, 2016 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 865 $ 865 $ — Non-U.S. companies 889 889 — Debt securities: Corporate and government securities 1,281 163 1,118 Asset-backed securities 71 — 71 Cash and cash equivalents 320 320 — Accrued interest and dividends 45 — 45 Total before investments measured at NAV $ 3,471 $ 2,237 $ 1,234 Investments measured at NAV 602 $ 4,073 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 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 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). 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. 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 is 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, 2016 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2017 $ 355 $ 14 2018 352 14 2019 350 14 2020 346 13 2021 342 13 2022 - 2026 1,637 60 (1) Benefit payments are expected be paid from the plans’ net assets. We expect our 2017 pension contributions (excluding contributions to our defined contribution plans) to be approximately $130 million , including pension contributions of Cdn $127 million ( $95 million , based on the exchange rate in effect on December 31, 2016 ) 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 Prior to December 31, 2016, the funding of our material Canadian registered pension plans, which we refer to as the “affected plans,” representing 65% of our unfunded pension obligations as of December 31, 2016 , was governed by regulations specific to us, adopted by the provinces of Quebec and Ontario. We refer to these regulations, as the “funding relief regulations.” On December 16, 2016, the province of Ontario amended the Ontario funding relief regulation, which we refer to as the “Ontario amendment,” following which, on December 19, 2016, we provided notice to the Quebec pension plan regulatory authorities that we would voluntarily exit the Quebec funding relief regulation as of December 31, 2016. As a result, since January 1, 2017, all of our Quebec pension plans have been subject to Quebec’s Supplemental Pension Plans Act , or the “SPPA,” which is the pension plan funding regime generally applicable to pension plans in that province. The Ontario funding relief regulation, as amended by the Ontario amendment, continues to apply to us and will lapse on December 31, 2020. The funding relief regulations provided that our aggregate annual contribution in respect of the solvency deficits in the Quebec and Ontario affected plans for each year until 2020 was limited to a Cdn $80 million basic contribution. As a result of the Ontario amendment and our exit from the Quebec funding relief regulation, from July 2017 through December 2020, our annual basic contribution to the Ontario affected plans will be Cdn $9 million , while the basic contribution from January 2017 to June 2017 will be Cdn $5 million in the aggregate, reflecting the portion of the Cdn $80 million annual basic contribution related to the Ontario plans. Our contributions to our Quebec plans will be determined annually on a going concern basis under the Quebec’s SPPA. In addition to the basic contribution, the funding relief regulations required us to make a supplemental contribution, beginning in 2016, should the affected plans’ aggregate solvency ratio be more than 2% below the target specified in the regulations for the preceding year, subject to certain conditions. In 2016, we made a supplemental contribution of Cdn $25 million in aggregate to the Quebec and Ontario plans. Following the Ontario amendment and our exit from the Quebec funding relief regulation, we are still required to make a supplemental contribution to the Ontario plans, payable over a three -year period, should the Ontario affected plans’ aggregate solvency ratio be below the 2% target. Given the prevailing interest rates, we do not expect to make a supplemental contribution in 2017. Should an Ontario plan move to surplus before the funding relief regulation expires in 2020, it will cease to be subject to the regulation. After 2020, the Ontario funding rules in effect at the time will apply to any remaining deficit. We are permitted to exit the Ontario funding relief regulation earlier than December 31, 2020, by providing a notice to that effect to the province of Ontario by December 31 of any year. Our exit from such regulation would take effect for the year following the date of notice. If we elect to exit the Ontario funding relief regulation, our pension plans in Ontario would become subject to the pension plan funding regime generally applicable at that time to pension plans in that province. Our principal Canadian subsidiaries entered into certain undertakings with the Government of Quebec and Ontario in connection with the adoption of the funding relief regulations in 2010. As a result of our exit from the Quebec funding relief regulation, effective December 31, 2016, the undertakings we had made with the Government of Quebec, as amended, expired in accordance with their terms. These undertakings required us to: • abide by the compensation plan detailed in the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) debtors’ CCAA Plan of Reorganization and Compromise , as amended, (the “CCAA Plan of Reorganization”) with respect to salaries, bonuses and severance; • direct at least 60% of the maintenance and value-creation investments earmarked for our Canadian pulp and paper operations to projects in Quebec; • maintain our head office and the then-current related functions in Quebec; and • make an additional solvency deficit reduction contribution to our 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. Comparable undertakings we had entered into with the Government of Ontario expired in December 2015. Neither the expiration of the Quebec undertakings, nor the previous expiration of the Ontario undertakings, eliminates ongoing obligations we incurred under the terms of those undertakings prior to their expiration. As a result, we made additional contributions for past capacity reductions to the affected plans of Cdn $13 million in 2016. We will also be required to make our final remaining contributions for past capacity reductions of approximately Cdn $31 million , Cdn $21 million , Cdn $5 million , and Cdn $2 million in 2017, 2018, 2019, and 2020, respectively. As part of the 2014 amendments to the funding relief regulations, it was determined that no additional contribution would be made in respect of any capacity reduction in Quebec before April 13, 2013. The application of this undertaking in respect of the capacity reductions in Ontario has yet to be settled. 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 regulation, 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) 2016 2015 2014 United States $ (227 ) $ (355 ) $ (221 ) Foreign 170 99 (83 ) $ (57 ) $ (256 ) $ (304 ) The income tax (provision) benefit for the years ended December 31, 2016 , 2015 and 2014 , was comprised of the following: (In millions) 2016 2015 2014 U.S. Federal and State: Current $ — $ 4 $ (4 ) Deferred (11 ) 32 6 (11 ) 36 2 Foreign: Current (5 ) — (2 ) Deferred (3 ) (35 ) 30 (8 ) (35 ) 28 Total: Current (5 ) 4 (6 ) Deferred (14 ) (3 ) 36 $ (19 ) $ 1 $ 30 The income tax (provision) benefit attributable to loss before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the years ended December 31, 2016 , 2015 and 2014 , as a result of the following: (In millions) 2016 2015 2014 Loss before income taxes $ (57 ) $ (256 ) $ (304 ) Income tax (provision) benefit: Expected income tax benefit 20 90 106 Changes resulting from: Valuation allowance (1) (99 ) (109 ) (51 ) Adjustments for unrecognized tax benefits (2) 55 — 1 Foreign exchange (9 ) (20 ) (17 ) Research and development, and other tax incentives — 1 1 State income taxes, net of federal income tax benefit 6 12 5 Foreign tax rate differences 11 8 (8 ) Effect of change in tax rates (3) — 18 — Other, net (4) (3 ) 1 (7 ) $ (19 ) $ 1 $ 30 (1) During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million , respectively, 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 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. (2) During 2016, we recorded tax benefits of $55 million , almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. (3) During 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. (4) During 2016, we recorded an income tax provision of $4 million , upon the completion of a tax audit. 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. 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. As a result, we recognize a full valuation allowance against our net U.S. deferred income tax assets. The cumulative loss of our U.S. operations limited our ability to consider other subjective positive evidence. 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 forecasted future earnings, resulted in the conclusion by management that no significant valuation allowances were required for our deferred income tax assets in Canada, as they were determined to be more likely than not to be realized. Deferred income taxes as of December 31, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Fixed assets $ (44 ) $ (81 ) Deferred gains — (14 ) Other liabilities (21 ) (16 ) Deferred income tax liabilities (65 ) (111 ) Fixed assets 520 489 Pension and OPEB plans 392 359 Operating loss carryforwards 838 773 Capital loss carryforwards 11 12 Undeducted research and development expenditures 185 177 Tax credit carryforwards 107 103 Other assets 49 43 Deferred income tax assets 2,102 1,956 Valuation allowance (1,000 ) (865 ) Net deferred income tax assets $ 1,037 $ 980 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 1,039 $ 982 Deferred income tax liabilities (2 ) (2 ) Net deferred income tax assets $ 1,037 $ 980 The balance of tax attributes and their dates of expiration as of December 31, 2016 , were as follows: (In millions) Related Year of Expiration Operating loss carryforwards: U.S. Federal operating loss carryforwards of $2,026 $ 710 (1 ) 2022 – 2036 U.S. State operating loss carryforwards of $1,747 72 (1 ) 2017 – 2036 Canadian Federal and provincial (excluding Quebec) operating loss carryforwards of $81 17 2026 – 2036 Quebec operating loss carryforwards of $127 13 2026 – 2032 Other operating loss carryforwards 26 2019 – 2026 $ 838 Capital loss carryforwards: Canadian net capital loss carryforwards of $40 11 Indefinite $ 11 Undeducted research and development expenditures: Canadian Federal and provincial (excluding Quebec) undeducted research and development expenditures of $643 $ 107 Indefinite Quebec undeducted research and development expenditures of $783 78 Indefinite $ 185 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 91 2021 – 2036 U.S. State tax credit carryforwards 16 (1 ) 2017 – 2031 $ 107 (1) As of December 31, 2016 , 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, 2016 , 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 in 2015, an income tax provision was deferred and recorded in “Other assets” in our Consolidated Balance Sheet. This deferred tax charge is amortized, as the underlying assets are consumed or sold to an unrelated party, in “ Income tax (provision) benefit ” in our Consolidated Statements of Operations. The deferred tax charge was $35 million and $38 million as of December 31, 2016 and 2015 , respectively. Unrecognized tax benefits The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2016 and 2015 : (In millions) 2016 2015 Beginning of year $ 97 $ 109 Increase (decrease) in unrecognized tax benefits resulting from: Positions taken in the current period 1 2 Expirations of statute limitations (1) (55 ) (2 ) Settlements with taxing authorities (1 ) (1 ) Change in foreign exchange rate 2 (11 ) End of year $ 44 $ 97 (1) During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. We recognize accrued interest and penalties 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 $3 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 2013 and future years, as well as Canadian tax returns for 2012 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 12 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, 2016 | |
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, 2016 , will not have a material adverse effect on our Consolidated Financial Statements. Effective January 1, 2015, we modified our U.S. OPEB plan so that unionized participants, upon reaching Medicare eligibility, are provided Medicare coverage via a Medicare Exchange program rather than via a Company-sponsored medical plan. On March 2, 2016, a proposed class action lawsuit ( Reynolds, et al v. Resolute Forest Products Inc., Resolute FP US Inc., Resolute FP US Health and Resolute Welfare Benefit Plan ) was filed in the United States District Court for the Eastern District of Tennessee on behalf of certain Medicare-eligible retirees who were previously unionized employees of our Calhoun, Tennessee; Catawba, South Carolina; and Coosa Pines, Alabama, mills, and their spouses and dependents. The plaintiffs allege that the modifications described above breach the collective bargaining agreements and plan covering the members of the proposed class in the lawsuit. Plaintiffs seek reinstatement of the health care benefits as in effect before January 1, 2015, for the proposed class in the lawsuit. The Company disputes the allegations in the complaint and intends to defend the action. On May 23, 2016, the Company filed a motion to dismiss the complaint. The proposed class action lawsuit is at a preliminary stage and no class has been certified. Accordingly, we are not presently able to determine the ultimate resolution of this matter or to reasonably estimate the potential impact 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 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. As a result of that investigation, since August 3, 2015, we have been required to pay cash deposits to the U.S. for estimated countervailing duties on our imports to the U.S. of SC paper produced at our Canadian mills. Between August 3, 2015 and October 15, 2015, we were required to make cash deposits at a rate of 2.04% . On October 15, 2015, that rate increased to 17.87% . 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. We requested an administrative review in December 2016, which is when we were first eligible to do so. Commerce commenced the review on February 13, 2017, although it has not yet announced whether we will be a respondent in that review. We may remain subject to annual administrative reviews until December 2020, or possibly later. Resolute has appealed the determination of Commerce to a bi-national panel under the North American Free Trade Agreement. A hearing on that appeal was held on October 25, 2016, and Resolute is waiting for the panel’s decision. Through December 31, 2016 , our cash deposits totaled $27 million , and based on our current operating parameters, could be as high as $25 million in 2017. 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, 2016 . 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, 2016 ) 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 court with jurisdiction in the creditor protection proceedings under the CCAA (the “CCAA 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 CCAA Creditor Protection Proceedings. 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 debtors’ CCAA Plan of Reorganization, as amended, and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to Cdn $150 million ( $110 million , based on the exchange rate in effect on December 31, 2016 ), 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 $8 million and $12 million of environmental liabilities as of December 31, 2016 and 2015 , 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 of asset retirement obligations as of both December 31, 2016 and 2015 , 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, 2016 ) 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 March 31, 2017. 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 with the MNRF. Accordingly, we have recorded no contingent liability in respect of this notice in our Consolidated Balance Sheet as of December 31, 2016 . |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Share Capital | Note 16. Share Capital Common stock We are authorized under our certificate of incorporation, as amended and restated, to issue up to 190 million shares of common stock, par value $0.001 per share, of which 9,020,960 shares are reserved for issuance under the Resolute Forest Products Equity Incentive Plan (as amended, the “Incentive Plan”). 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 . We did not repurchase any shares during 2016. There remains $24 million under the program. Dividends We did not declare or pay any dividends on our common stock during the years ended December 31, 2016 , 2015 and 2014 . Preferred stock We are authorized under our certificate of incorporation, as amended and restated, to issue 10 million shares of preferred stock, par value $0.001 per share. As of December 31, 2016 and 2015 , no preferred shares were issued and outstanding. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , approximately 1 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, 2016 , 2015 and 2014 , share-based compensation expense was $11 million ( no tax benefit), $12 million ( no tax benefit) and $6 million ( no tax benefit), respectively. As of December 31, 2016 , there was approximately $14 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 Under the Incentive Plan, 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 did not grant any stock options since 2013. The activity of outstanding stock options for the year ended December 31, 2016 , was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Balance as of December 31, 2015 1,477,613 $ 15.76 6.8 Forfeited (17,289 ) 15.23 Expired (44,353 ) 18.05 Balance as of December 31, 2016 1,415,971 $ 15.77 5.8 Exercisable as of December 31, 2016 1,255,763 $ 15.78 5.7 The total intrinsic value of stock options exercised in 2015 and 2014 was less than $1 million and $2 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. We withhold shares in respect of applicable taxes. The activity of nonvested RSUs and DSUs for the year ended December 31, 2016 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2015 1,419,454 $ 11.03 Granted 1,829,188 3.97 Vested (627,740 ) 10.12 Forfeited (66,263 ) 10.90 Balance as of December 31, 2016 2,554,639 $ 6.20 There were 248,010 RSUs and DSUs granted to directors that vested but were not settled as of December 31, 2016. The weighted-average grant-date fair value of all RSUs and DSUs granted in 2015 and 2014 , was $7.94 and $18.62 , respectively. The total fair value of RSUs and DSUs vested in 2016 , 2015 and 2014 , was $3 million , $3 million and $5 million , respectively. Performance stock units Under 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. We withhold shares in respect of applicable taxes. The activity of nonvested PSUs for the year ended December 31, 2016 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2015 991,386 $ 10.76 Granted 1,399,056 3.95 Forfeited (45,022 ) 10.40 Balance as of December 31, 2016 2,345,420 $ 6.71 The weighted-average grant-date fair value of all PSUs granted in 2015 and 2014 , was $7.54 and $18.61 , respectively. 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, 2016 and 2015, were 127,521 and 79,020 , respectively. The total fair value of RSUs and DSUs vested in each of 2016, 2015 and 2014, was less than $1 million. |
Operating Leases and Purchase O
Operating Leases and Purchase Obligations | 12 Months Ended |
Dec. 31, 2016 | |
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 $9 million in 2016 , $8 million in 2015 and $7 million in 2014 . 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, 2016 , the commitments for purchase obligations and future minimum rental payments under operating leases were as follows: (In millions) Purchase Obligations (1) Operating Leases 2017 $ 111 $ 6 2018 66 6 2019 52 5 2020 52 5 2021 44 5 Thereafter 24 11 $ 349 $ 38 (1) Includes energy purchase obligations of $256 million through 2021 for certain of our pulp and paper mills. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
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, gains and losses 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 are allocated to our segments, with the exception of certain discretionary charges and credits, which we present under “corporate and other.” In each of 2016 , 2015 and 2014 , no assets were identifiable by segment and reviewed by management. Information about certain segment data for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2016 $ 836 $ 89 $ 596 $ 1,009 $ 1,015 $ 3,545 $ — $ 3,545 2015 889 11 536 1,105 1,104 3,645 — 3,645 2014 974 — 610 1,402 1,272 4,258 — 4,258 Depreciation and amortization (4) 2016 $ 37 $ 5 $ 31 $ 74 $ 45 $ 192 $ 14 $ 206 2015 53 1 37 64 71 226 11 237 2014 53 — 33 69 82 237 6 243 Operating income (loss) 2016 $ 43 $ (10 ) $ 69 $ (15 ) $ 25 $ 112 $ (138 ) $ (26 ) 2015 76 (1 ) 2 (23 ) 29 83 (302 ) (219 ) 2014 63 — 69 20 (19 ) 133 (307 ) (174 ) Capital expenditures 2016 $ 20 $ 156 $ 23 $ 2 $ 23 $ 224 $ 25 $ 249 2015 60 41 43 10 13 167 18 185 2014 23 — 77 39 34 173 20 193 (1) Inter-segment sales of $33 million , $20 million and $19 million , which are transacted at cost, are excluded from market pulp sales for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Tissue capital expenditures for the years ended December 31, 2016 and 2015, consisted almost entirely of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $17 million , $20 million and $24 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) As discussed in Note 1, “Organization and Basis of Presentation ,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows: (In millions) Market Pulp Tissue Wood Products Newsprint Specialty Papers Total 2016 $ (18 ) $ — $ (12 ) $ 23 $ (5 ) $ (12 ) 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 2016 , 2015 or 2014 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, 2016 , 2015 and 2014 , were as follows: (In millions) 2016 2015 2014 United States $ 2,464 $ 2,421 $ 2,809 Foreign countries: Canada 428 476 540 Mexico 126 150 174 Brazil 34 70 107 Other countries 493 528 628 1,081 1,224 1,449 $ 3,545 $ 3,645 $ 4,258 Certain long-lived assets by country (comprised of fixed assets, net, water rights, net, energy contracts, net and other assets) as of December 31, 2016 and 2015 , were as follows: (In millions) 2016 2015 United States $ 795 $ 677 Foreign countries: Canada 1,259 1,323 South Korea 8 22 1,267 1,345 $ 2,062 $ 2,022 |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
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 of 1933, as amended, 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 (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, 2016 , 2015 and 2014 , the Balance Sheets as of December 31, 2016 and 2015 , and the Statements of Cash Flows for the years ended December 31, 2016 , 2015 and 2014 , for the Parent, the Guarantor Subsidiaries on a combined basis, and the Non-guarantor Subsidiaries also 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, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,907 $ 2,166 $ (1,528 ) $ 3,545 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,745 1,492 (1,521 ) 2,716 Depreciation and amortization — 78 128 — 206 Distribution costs — 168 273 (1 ) 440 Selling, general and administrative expenses 20 61 68 — 149 Closure costs, impairment and other related charges — 38 24 — 62 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (20 ) (183 ) 183 (6 ) (26 ) Interest expense (80 ) — (10 ) 52 (38 ) Other income, net — 57 2 (52 ) 7 Equity in income of subsidiaries 19 24 — (43 ) — (Loss) income before income taxes (81 ) (102 ) 175 (49 ) (57 ) Income tax provision — (11 ) (10 ) 2 (19 ) Net (loss) income including noncontrolling interests (81 ) (113 ) 165 (47 ) (76 ) Net income attributable to noncontrolling interests — — (5 ) — (5 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (81 ) $ (113 ) $ 160 $ (47 ) $ (81 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (249 ) $ (197 ) $ 73 $ 124 $ (249 ) 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 Non-guarantor Consolidating 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 BALANCE SHEET As of December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 2 $ 33 $ — $ 35 Accounts receivable, net — 283 158 — 441 Accounts receivable from affiliates — 479 395 (874 ) — Inventories, net — 259 323 (12 ) 570 Note, advance and interest receivable from parent — 373 — (373 ) — Notes and interest receivable from affiliates — 54 — (54 ) — Other current assets — 16 19 — 35 Total current assets — 1,466 928 (1,313 ) 1,081 Fixed assets, net — 733 1,109 — 1,842 Amortizable intangible assets, net — 14 56 — 70 Goodwill — 81 — — 81 Deferred income tax assets — — 1,036 3 1,039 Note receivable from parent — 443 — (443 ) — Note receivable from affiliate — 109 — (109 ) — Investments in consolidated subsidiaries and affiliates 3,918 2,068 — (5,986 ) — Other assets — 62 102 — 164 Total assets $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 222 $ 239 $ — $ 466 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 479 395 — (874 ) — Note, advance and interest payable to subsidiaries 373 — — (373 ) — Notes and interest payable to affiliate — — 54 (54 ) — Total current liabilities 857 618 293 (1,301 ) 467 Long-term debt, net of current portion 590 171 — — 761 Note payable to subsidiary 443 — — (443 ) — Note payable to affiliate — — 109 (109 ) — Pension and other postretirement benefit obligations — 397 884 — 1,281 Deferred income tax liabilities — 1 1 — 2 Other liabilities — 24 31 — 55 Total liabilities 1,890 1,211 1,318 (1,853 ) 2,566 Total equity 2,028 3,765 1,913 (5,995 ) 1,711 Total liabilities and equity $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 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 — 323 146 — 469 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 — 21 22 — 43 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 STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 30 $ 51 $ — $ 81 Cash flows from investing activities: Cash invested in fixed assets — (179 ) (70 ) — (249 ) Acquisition of a sawmill in Senneterre — — (6 ) — (6 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits — (23 ) — — (23 ) Increase in notes receivable from affiliate — (8 ) — 8 — Net cash used in investing activities — (210 ) (71 ) 8 (273 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 125 — — 125 Issuance of long-term debt — 46 — — 46 Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Increase in notes payable to affiliate — — 8 (8 ) — Net cash provided by financing activities — 169 8 (8 ) 169 Effect of exchange rate changes on cash and cash equivalents — — — — — Net decrease in cash and cash equivalents — (11 ) (12 ) — (23 ) Cash and cash equivalents: Beginning of year — 13 45 — 58 End of year $ — $ 2 $ 33 $ — $ 35 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 Tissue, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duty 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 in 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 deposit requirements for letters of credit, net — — 1 — 1 Other investing activities, net — — (1 ) — (1 ) Net cash used in investing activities — (50 ) (111 ) — (161 ) Cash flows from financing activities: Payments of debt — (1 ) (1 ) — (2 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Dividend to noncontrolling interest — — (4 ) — (4 ) 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 |
Quarterly Information
Quarterly Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Note 21. Quarterly Information (Unaudited) Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 877 $ 891 $ 888 $ 889 $ 3,545 Operating (loss) income — (18 ) 10 (18 ) (26 ) Net (loss) income attributable to Resolute Forest Products Inc. (8 ) (42 ) 14 (45 ) (81 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.16 (0.50 ) (0.90 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.15 (0.50 ) (0.90 ) 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 ) |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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. Certain prior period amounts in our Consolidated Balance Sheets and footnotes have been reclassified to conform to the 2016 presentation. The reclassifications had no effect on total assets. |
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 and goodwill. 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 | Change in depreciable lives of machinery and equipment We periodically review the estimated economic useful lives of our fixed assets. Based on this review, during the first quarter of 2016, we prospectively changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. As a result, effective January 1, 2016, the estimated useful lives of machinery and equipment were changed to a range of five to 25 years , increasing the weighted-average estimated useful lives of machinery and equipment by two years . 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 in “ Interest expense ” in our Consolidated Statements of Operations 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” or “Other 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” 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. |
Business Combination | Business Combination We use the acquisition method in accounting for a business combination. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair market values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Transaction costs, as well as costs to integrate acquired companies, are expensed as incurred in our Consolidated Statements of Operations. |
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 fixed assets, 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 carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income 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 accrued interest and penalties related to unrecognized tax benefits as a component of the income tax expense. |
Pension and other postretirement benefit obligations | Pension and OPEB plans For our defined benefit plans, we recognize a liability or an asset for pension and OPEB obligations net of the fair value of plan assets. A liability is recognized for a plan’s under-funded status and an asset is recognized for a plan’s over-funded status. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “ Accumulated other comprehensive loss ” in our Consolidated Balance Sheets. We recognize net periodic benefit cost 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 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 (as defined in Note 17, “Share-Based Compensation ”) 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. |
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 rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly 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 rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate 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 adopted In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments”, which requires that the acquirer record a measurement-period adjustment and the cumulative effect of the adjustment on earnings in the reporting period in which the adjustment amount is determined. This ASU is effective for fiscal year beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We adopted this ASU on October 1, 2016, in connection with the accounting for measurement-period adjustments related to the acquisition of Atlas Paper Holdings, Inc. and its subsidiaries (“Atlas Tissue”), as further discussed in Note 3, “Acquisition of Atlas Paper Holdings, Inc. ” In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which is intended to simplify several aspects of the accounting for share-based payment transactions. This update is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an interim or annual reporting period, we adopted this ASU on October 1, 2016. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. Accounting pronouncements not yet adopted 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 plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will not materially impact our results of operations, financial position or cash flows. 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 plan to adopt this standard on January 1, 2019. We are still evaluating the impact of this standard on our results of operations and financial position as implementation of this project is at the assessment stage. In March 2016, April 2016, May 2016, and December 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” ASU 2016-10, “Identifying Performance Obligations and Licensing,” ASU 2016-12, “Narrow-Scope Improvements and Practical Expedients,” and ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” respectively, which further affect the guidance of ASU 2014-09. These updates are effective for fiscal years beginning after December 15, 2017, with early adoption permitted for fiscal years beginning after December 15, 2016. We plan to adopt these standards on January 1, 2018. We are still evaluating the impact of these standards on our results of operations and financial position as implementation of this project is at the assessment stage. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” which introduces the current expected credit losses model in the estimation of credit losses on financial instruments. This update is effective retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2018. We plan to adopt this ASU on January 1, 2019. We are still evaluating the impact of this accounting guidance on our results of operations and financial position as implementation of this project is at the assessment stage. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual period. All amendments to the guidance shall be adopted in the same period on a retrospective basis. The adoption of this accounting guidance will not materially impact the presentation of our cash flows. In October 2016, the FASB issued ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” which eliminates the deferral of the tax effects of intra-entity asset transfers other than inventory until the transferred assets are sold to a third party or recovered through use. This update is effective on a modified retrospective approach for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As early adoption is permitted as of the beginning of an annual period, we adopted this ASU on January 1, 2017, resulting in a decrease in “Other assets” of $35 million and an increase in deferred tax assets of $32 million , with a cumulative-effect adjustment of $3 million to “Deficit” in our Consolidated Balance Sheet as of that date. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual period. We plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our Consolidated Statements of Cash Flows. Restricted cash included in our Consolidated Balance Sheet as of December 31, 2016, was $38 million . In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is not permitted. The adoption of this accounting guidance will not materially impact our results of operations, financial position or cash flows. |
Organization and Basis of Pre32
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 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% |
Schedule of change in accounting estimate | The effect of this change in estimate for the year ended December 31, 2016 was to reduce “Depreciation and amortization”, “ Net loss attributable to Resolute Forest Products Inc. ”, and basic and diluted “ Net loss per share attributable to Resolute Forest Products Inc. common shareholders ” in our Consolidated Statement of Operations as follows: (In millions, except per share amounts) 2016 Depreciation and amortization $ 12 Net loss attributable to Resolute Forest Products Inc. 6 Basic net loss per share attributable to Resolute Forest Products Inc. 0.07 Diluted net loss per share attributable to Resolute Forest Products Inc. 0.07 |
Acquisition of Atlas Inc. Acqui
Acquisition of Atlas Inc. Acquisition of Atlas Inc. (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following summarizes our final allocation of the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date: (In millions) Preliminary Allocation of Purchase Price Measurement-Period Adjustments (1) Final Allocation of Purchase Price Accounts receivable $ 13 $ — $ 13 Inventories 12 (1 ) 11 Other current assets 1 — 1 Current assets 26 (1 ) 25 Fixed assets 46 — 46 Amortizable intangible assets (2) 46 (31 ) 15 Goodwill (3) 59 22 81 Other assets 1 — 1 Total assets acquired $ 178 $ (10 ) $ 168 Cash overdraft $ 2 $ — $ 2 Accounts payable and accrued liabilities 11 — 11 Current liabilities assumed 13 — 13 Deferred income tax liabilities 10 (10 ) — Total liabilities assumed $ 23 $ (10 ) $ 13 Net assets acquired $ 155 $ — $ 155 Fair value of consideration transferred 157 — 157 Recovery of consideration recorded in “Accounts receivable, net” in our Consolidated Balance Sheet as of December 31, 2015 (2 ) — (2 ) $ 155 $ — $ 155 (1) Based on new information relating to facts and circumstances that existed as of the acquisition date, we finalized the allocation of the purchase price of Atlas Tissue during the measurement period. (2) 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% . (3) 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 Tissue’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. 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 Tissue 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 $ 3,730 $ 4,330 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 and34
Closure Costs, Impairment and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , were comprised of the following: (In millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Paper mill in Mokpo, South Korea (1) $ 13 $ — $ — $ 13 Permanent closure Paper machine in Augusta, Georgia — 32 4 36 Other 9 3 1 13 $ 22 $ 35 $ 5 $ 62 (1) Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. 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. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income (expense), net for the years ended December 31, 2016 , 2015 and 2014 , was comprised of the following: (In millions) 2016 2015 2014 Foreign exchange loss $ (7 ) $ (4 ) $ (32 ) Gain on disposition of equity method investment (1) 5 — — Write-down of equity method investment (2) — — (61 ) Miscellaneous income 9 8 10 $ 7 $ 4 $ (83 ) (1) On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot, Quebec, in which we had a 50% interest, resulting in a gain on disposition of $5 million . (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. |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , was as follows: (In millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2015 $ 84 $ (667 ) $ (4 ) $ (587 ) Other comprehensive (loss) income before reclassifications (1 ) (189 ) 1 (189 ) Amounts reclassified from accumulated other comprehensive loss (1) (16 ) 37 — 21 Net current period other comprehensive (loss) income (17 ) (152 ) 1 (168 ) Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) (1) See the table below for details about these reclassifications. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2016 , 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) — Income tax (provision) benefit $ (16 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 49 Cost of sales, excluding depreciation, amortization and distribution costs (1) (12 ) Income tax (provision) benefit $ 37 Net of tax Total Reclassifications $ 21 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, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of outstanding weighted-average stock options and nonvested equity-classified RSUs, DSUs and PSUs | The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “stock unit awards”) for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) 2016 2015 2014 Stock options 1.4 1.5 1.6 Stock unit awards 2.6 1.4 1.3 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of December 31, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Raw materials and work in process $ 171 $ 152 Finished goods 183 179 Mill stores and other supplies 216 210 $ 570 $ 541 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Fixed assets, net as of December 31, 2016 and 2015 , were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2016 2015 Land and land improvements 5 – 10 $ 77 $ 93 Buildings 2 – 40 257 302 Machinery and equipment (1)(2) 5 – 25 2,264 2,313 Hydroelectric power plants 10 – 40 287 287 Timberlands and timberlands improvements 3 – 20 109 99 Construction in progress (2) 263 146 3,257 3,240 Less: Accumulated depreciation (1,415 ) (1,430 ) $ 1,842 $ 1,810 (1) As discussed in Note 1, “Organization and Basis of Presentation ,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. As a result, effective January 1, 2016, the estimated useful lives of machinery and equipment were changed to a range of five to 25 years , increasing the weighted-average estimated useful lives of machinery and equipment by two years . (2) Internal-use software included in fixed assets, net as of December 31, 2016 and 2015 , was as follows: (In millions) 2016 2015 Machinery and equipment $ 83 $ 58 Construction in progress 13 10 96 68 Less: Accumulated depreciation (27 ) (16 ) $ 69 $ 52 Depreciation expense related to internal-use software is estimated to be $12 million for each of the next three years and $8 million in both 2020 and 2021. |
Amortizable Intangible Assets40
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Summary of Amortizable Intangible Assets, Net | Amortizable intangible assets, net as of December 31, 2016 and 2015 , were comprised of the following: 2016 2015 (Dollars in millions) Estimated Useful Lives (Years) Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 4 $ 15 $ 19 $ 4 $ 15 Energy contracts 15 – 25 52 11 41 52 8 44 Customer relationships (2) 10 – 15 14 1 13 44 — 44 Other (2) 1 — 1 2 — 2 $ 86 $ 16 $ 70 $ 117 $ 12 $ 105 (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 or 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 Tissue, we identified amortizable intangible assets primarily related to customer relationships. In 2016, we recorded a decrease of $31 million due to measurement-period adjustments of the purchase price allocation for Atlas Tissue. For additional information, see Note 3, “Acquisition of Atlas Paper Holdings, Inc. ” |
Accounts Payable and Accrued 41
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of December 31, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Trade accounts payable $ 346 $ 324 Payroll, bonuses and severance payable 51 56 Accrued interest 5 5 Pension and OPEB obligations 17 17 Book overdrafts 13 — Income and other taxes payable 7 5 Environmental liabilities 5 5 Other 22 24 $ 466 $ 436 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of December 31, 2016 and 2015 , was comprised of the following: (In millions) 2016 2015 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (6 ) (7 ) Unamortized discount (4 ) (4 ) Total senior notes due 2023 590 589 Term loan due 2025 46 — Borrowings under revolving credit facilities 125 — Capital lease obligation 1 2 Total debt 762 591 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 761 $ 590 |
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 Postretirem43
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Changes in Benefit Obligations | Pension Plans OPEB Plans (In millions) 2016 2015 2016 2015 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,068 $ 6,229 $ 174 $ 210 Service cost 20 23 1 1 Interest cost 215 225 7 8 Actuarial loss (gain) 169 (140 ) — (11 ) Participant contributions 8 7 2 2 Plan amendment 1 — — — Settlements (28 ) (65 ) — — Benefits paid (380 ) (410 ) (15 ) (15 ) Effect of foreign currency exchange rate changes 123 (801 ) 3 (21 ) Benefit obligations as of end of year 5,196 5,068 172 174 |
Summary of Change in Plan Assets | Change in plan assets: Fair value of plan assets as of beginning of year 4,049 4,808 — — Actual return on plan assets 184 224 — — Employer contributions 141 123 13 13 Participant contributions 8 7 2 2 Settlements (28 ) (65 ) — — Benefits paid (380 ) (410 ) (15 ) (15 ) Effect of foreign currency exchange rate changes 99 (638 ) — — Fair value of plan assets as of end of year 4,073 4,049 — — Funded status as of end of year $ (1,123 ) $ (1,019 ) $ (172 ) $ (174 ) |
Summary of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 3 $ 10 $ — $ — Accounts payable and accrued liabilities (3 ) (3 ) (14 ) (14 ) Pension and OPEB obligations (1,123 ) (1,026 ) (158 ) (160 ) Net obligations recognized $ (1,123 ) $ (1,019 ) $ (172 ) $ (174 ) |
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, 2016 , 2015 and 2014 , were as follows: Pension Plans OPEB Plans (In millions) 2016 2015 2014 2016 2015 2014 Service cost $ 20 $ 23 $ 26 $ 1 $ 1 $ 1 Interest cost 215 225 274 7 8 11 Expected return on plan assets (247 ) (260 ) (300 ) — — — Amortization of prior service credits (1 ) (2 ) (2 ) (15 ) (14 ) (11 ) Amortization of actuarial losses (gains) 54 84 9 (5 ) (5 ) (4 ) Net periodic benefit cost before special events 41 70 7 (12 ) (10 ) (3 ) Curtailments and settlements — 14 4 — — — $ 41 $ 84 $ 11 $ (12 ) $ (10 ) $ (3 ) |
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, 2016 , 2015 and 2014 , were as follows: Pension Plans OPEB Plans 2016 2015 2014 2016 2015 2014 Benefit obligations: Discount rate 3.8 % 4.2 % 4.0 % 3.9 % 4.4 % 4.0 % Rate of compensation increase 2.5 % 2.5 % 2.5 % Net periodic benefit cost: Discount rate 4.2 % 4.0 % 4.9 % 4.4 % 4.1 % 5.0 % Expected return on assets 6.2 % 6.3 % 6.5 % 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, 2016 and 2015 , were as follows: 2016 2015 Domestic Plans Foreign Plans Domestic Plans Foreign Plans Health care cost trend rate assumed for next year 7.0 % 4.2 % 7.2 % 4.4 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.0 % 4.5 % 3.8 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 2033 |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate | Variations of the 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 2016 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 $ 4 6 % $ 5 4 % $ (3 ) (5 )% $ (4 ) (4 )% 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, 2016 , was as follows: (In millions) Total Level 1 Level 2 Equity securities: U.S. companies $ 865 $ 865 $ — Non-U.S. companies 889 889 — Debt securities: Corporate and government securities 1,281 163 1,118 Asset-backed securities 71 — 71 Cash and cash equivalents 320 320 — Accrued interest and dividends 45 — 45 Total before investments measured at NAV $ 3,471 $ 2,237 $ 1,234 Investments measured at NAV 602 $ 4,073 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 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 |
Expected Benefit Payments and Future Contributions | As of December 31, 2016 , benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2017 $ 355 $ 14 2018 352 14 2019 350 14 2020 346 13 2021 342 13 2022 - 2026 1,637 60 (1) Benefit payments are expected be paid from the plans’ net assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes by Taxing Jurisdiction | (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) 2016 2015 2014 United States $ (227 ) $ (355 ) $ (221 ) Foreign 170 99 (83 ) $ (57 ) $ (256 ) $ (304 ) |
Income Tax (Provision) Benefit | The income tax (provision) benefit for the years ended December 31, 2016 , 2015 and 2014 , was comprised of the following: (In millions) 2016 2015 2014 U.S. Federal and State: Current $ — $ 4 $ (4 ) Deferred (11 ) 32 6 (11 ) 36 2 Foreign: Current (5 ) — (2 ) Deferred (3 ) (35 ) 30 (8 ) (35 ) 28 Total: Current (5 ) 4 (6 ) Deferred (14 ) (3 ) 36 $ (19 ) $ 1 $ 30 |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax (provision) benefit attributable to loss before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the years ended December 31, 2016 , 2015 and 2014 , as a result of the following: (In millions) 2016 2015 2014 Loss before income taxes $ (57 ) $ (256 ) $ (304 ) Income tax (provision) benefit: Expected income tax benefit 20 90 106 Changes resulting from: Valuation allowance (1) (99 ) (109 ) (51 ) Adjustments for unrecognized tax benefits (2) 55 — 1 Foreign exchange (9 ) (20 ) (17 ) Research and development, and other tax incentives — 1 1 State income taxes, net of federal income tax benefit 6 12 5 Foreign tax rate differences 11 8 (8 ) Effect of change in tax rates (3) — 18 — Other, net (4) (3 ) 1 (7 ) $ (19 ) $ 1 $ 30 (1) During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million , respectively, 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 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. (2) During 2016, we recorded tax benefits of $55 million , almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. (3) During 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. (4) During 2016, we recorded an income tax provision of $4 million , upon the completion of a tax audit. |
Deferred Income Taxes | Deferred income taxes as of December 31, 2016 and 2015 , were comprised of the following: (In millions) 2016 2015 Fixed assets $ (44 ) $ (81 ) Deferred gains — (14 ) Other liabilities (21 ) (16 ) Deferred income tax liabilities (65 ) (111 ) Fixed assets 520 489 Pension and OPEB plans 392 359 Operating loss carryforwards 838 773 Capital loss carryforwards 11 12 Undeducted research and development expenditures 185 177 Tax credit carryforwards 107 103 Other assets 49 43 Deferred income tax assets 2,102 1,956 Valuation allowance (1,000 ) (865 ) Net deferred income tax assets $ 1,037 $ 980 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 1,039 $ 982 Deferred income tax liabilities (2 ) (2 ) Net deferred income tax assets $ 1,037 $ 980 |
Balance of Tax Attributes and Their Dates of Expiration | The balance of tax attributes and their dates of expiration as of December 31, 2016 , were as follows: (In millions) Related Year of Expiration Operating loss carryforwards: U.S. Federal operating loss carryforwards of $2,026 $ 710 (1 ) 2022 – 2036 U.S. State operating loss carryforwards of $1,747 72 (1 ) 2017 – 2036 Canadian Federal and provincial (excluding Quebec) operating loss carryforwards of $81 17 2026 – 2036 Quebec operating loss carryforwards of $127 13 2026 – 2032 Other operating loss carryforwards 26 2019 – 2026 $ 838 Capital loss carryforwards: Canadian net capital loss carryforwards of $40 11 Indefinite $ 11 Undeducted research and development expenditures: Canadian Federal and provincial (excluding Quebec) undeducted research and development expenditures of $643 $ 107 Indefinite Quebec undeducted research and development expenditures of $783 78 Indefinite $ 185 Tax credit carryforwards: Canadian research and development tax credit carryforwards $ 91 2021 – 2036 U.S. State tax credit carryforwards 16 (1 ) 2017 – 2031 $ 107 (1) As of December 31, 2016 , 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, 2016 and 2015 : (In millions) 2016 2015 Beginning of year $ 97 $ 109 Increase (decrease) in unrecognized tax benefits resulting from: Positions taken in the current period 1 2 Expirations of statute limitations (1) (55 ) (2 ) Settlements with taxing authorities (1 ) (1 ) Change in foreign exchange rate 2 (11 ) End of year $ 44 $ 97 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options Activity | The activity of outstanding stock options for the year ended December 31, 2016 , was as follows: Number of Shares Weighted- Average Exercise Price Weighted- Average Contractual Life (years) Balance as of December 31, 2015 1,477,613 $ 15.76 6.8 Forfeited (17,289 ) 15.23 Expired (44,353 ) 18.05 Balance as of December 31, 2016 1,415,971 $ 15.77 5.8 Exercisable as of December 31, 2016 1,255,763 $ 15.78 5.7 |
RSU and DSU Activity | The activity of nonvested RSUs and DSUs for the year ended December 31, 2016 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2015 1,419,454 $ 11.03 Granted 1,829,188 3.97 Vested (627,740 ) 10.12 Forfeited (66,263 ) 10.90 Balance as of December 31, 2016 2,554,639 $ 6.20 |
PSU Activity | The activity of nonvested PSUs for the year ended December 31, 2016 , was as follows: Number of Units Weighted- Average Fair Value at Grant Date Balance as of December 31, 2015 991,386 $ 10.76 Granted 1,399,056 3.95 Forfeited (45,022 ) 10.40 Balance as of December 31, 2016 2,345,420 $ 6.71 |
Operating Leases and Purchase46
Operating Leases and Purchase Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations | As of December 31, 2016 , the commitments for purchase obligations and future minimum rental payments under operating leases were as follows: (In millions) Purchase Obligations (1) Operating Leases 2017 $ 111 $ 6 2018 66 6 2019 52 5 2020 52 5 2021 44 5 Thereafter 24 11 $ 349 $ 38 (1) Includes energy purchase obligations of $256 million through 2021 for certain of our pulp and paper mills. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the years ended December 31, 2016 , 2015 and 2014 , was as follows: (In millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales 2016 $ 836 $ 89 $ 596 $ 1,009 $ 1,015 $ 3,545 $ — $ 3,545 2015 889 11 536 1,105 1,104 3,645 — 3,645 2014 974 — 610 1,402 1,272 4,258 — 4,258 Depreciation and amortization (4) 2016 $ 37 $ 5 $ 31 $ 74 $ 45 $ 192 $ 14 $ 206 2015 53 1 37 64 71 226 11 237 2014 53 — 33 69 82 237 6 243 Operating income (loss) 2016 $ 43 $ (10 ) $ 69 $ (15 ) $ 25 $ 112 $ (138 ) $ (26 ) 2015 76 (1 ) 2 (23 ) 29 83 (302 ) (219 ) 2014 63 — 69 20 (19 ) 133 (307 ) (174 ) Capital expenditures 2016 $ 20 $ 156 $ 23 $ 2 $ 23 $ 224 $ 25 $ 249 2015 60 41 43 10 13 167 18 185 2014 23 — 77 39 34 173 20 193 (1) Inter-segment sales of $33 million , $20 million and $19 million , which are transacted at cost, are excluded from market pulp sales for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Tissue capital expenditures for the years ended December 31, 2016 and 2015, consisted almost entirely of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $17 million , $20 million and $24 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) As discussed in Note 1, “Organization and Basis of Presentation ,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows: (In millions) Market Pulp Tissue Wood Products Newsprint Specialty Papers Total 2016 $ (18 ) $ — $ (12 ) $ 23 $ (5 ) $ (12 ) |
Summary of Sales by Country | Sales by country for the years ended December 31, 2016 , 2015 and 2014 , were as follows: (In millions) 2016 2015 2014 United States $ 2,464 $ 2,421 $ 2,809 Foreign countries: Canada 428 476 540 Mexico 126 150 174 Brazil 34 70 107 Other countries 493 528 628 1,081 1,224 1,449 $ 3,545 $ 3,645 $ 4,258 |
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, 2016 and 2015 , were as follows: (In millions) 2016 2015 United States $ 795 $ 677 Foreign countries: Canada 1,259 1,323 South Korea 8 22 1,267 1,345 $ 2,062 $ 2,022 |
Condensed Consolidating Finan48
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,907 $ 2,166 $ (1,528 ) $ 3,545 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,745 1,492 (1,521 ) 2,716 Depreciation and amortization — 78 128 — 206 Distribution costs — 168 273 (1 ) 440 Selling, general and administrative expenses 20 61 68 — 149 Closure costs, impairment and other related charges — 38 24 — 62 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (20 ) (183 ) 183 (6 ) (26 ) Interest expense (80 ) — (10 ) 52 (38 ) Other income, net — 57 2 (52 ) 7 Equity in income of subsidiaries 19 24 — (43 ) — (Loss) income before income taxes (81 ) (102 ) 175 (49 ) (57 ) Income tax provision — (11 ) (10 ) 2 (19 ) Net (loss) income including noncontrolling interests (81 ) (113 ) 165 (47 ) (76 ) Net income attributable to noncontrolling interests — — (5 ) — (5 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (81 ) $ (113 ) $ 160 $ (47 ) $ (81 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (249 ) $ (197 ) $ 73 $ 124 $ (249 ) 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 Non-guarantor Consolidating 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 Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (In millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 2 $ 33 $ — $ 35 Accounts receivable, net — 283 158 — 441 Accounts receivable from affiliates — 479 395 (874 ) — Inventories, net — 259 323 (12 ) 570 Note, advance and interest receivable from parent — 373 — (373 ) — Notes and interest receivable from affiliates — 54 — (54 ) — Other current assets — 16 19 — 35 Total current assets — 1,466 928 (1,313 ) 1,081 Fixed assets, net — 733 1,109 — 1,842 Amortizable intangible assets, net — 14 56 — 70 Goodwill — 81 — — 81 Deferred income tax assets — — 1,036 3 1,039 Note receivable from parent — 443 — (443 ) — Note receivable from affiliate — 109 — (109 ) — Investments in consolidated subsidiaries and affiliates 3,918 2,068 — (5,986 ) — Other assets — 62 102 — 164 Total assets $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 5 $ 222 $ 239 $ — $ 466 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 479 395 — (874 ) — Note, advance and interest payable to subsidiaries 373 — — (373 ) — Notes and interest payable to affiliate — — 54 (54 ) — Total current liabilities 857 618 293 (1,301 ) 467 Long-term debt, net of current portion 590 171 — — 761 Note payable to subsidiary 443 — — (443 ) — Note payable to affiliate — — 109 (109 ) — Pension and other postretirement benefit obligations — 397 884 — 1,281 Deferred income tax liabilities — 1 1 — 2 Other liabilities — 24 31 — 55 Total liabilities 1,890 1,211 1,318 (1,853 ) 2,566 Total equity 2,028 3,765 1,913 (5,995 ) 1,711 Total liabilities and equity $ 3,918 $ 4,976 $ 3,231 $ (7,848 ) $ 4,277 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 — 323 146 — 469 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 — 21 22 — 43 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 Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2016 (In millions) Parent Guarantor Non-guarantor Consolidating Consolidated Net cash provided by operating activities $ — $ 30 $ 51 $ — $ 81 Cash flows from investing activities: Cash invested in fixed assets — (179 ) (70 ) — (249 ) Acquisition of a sawmill in Senneterre — — (6 ) — (6 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits — (23 ) — — (23 ) Increase in notes receivable from affiliate — (8 ) — 8 — Net cash used in investing activities — (210 ) (71 ) 8 (273 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 125 — — 125 Issuance of long-term debt — 46 — — 46 Payments of debt — (1 ) — — (1 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Increase in notes payable to affiliate — — 8 (8 ) — Net cash provided by financing activities — 169 8 (8 ) 169 Effect of exchange rate changes on cash and cash equivalents — — — — — Net decrease in cash and cash equivalents — (11 ) (12 ) — (23 ) Cash and cash equivalents: Beginning of year — 13 45 — 58 End of year $ — $ 2 $ 33 $ — $ 35 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 Tissue, including cash overdraft acquired — (159 ) — — (159 ) Increase in countervailing duty 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 in 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 deposit requirements for letters of credit, net — — 1 — 1 Other investing activities, net — — (1 ) — (1 ) Net cash used in investing activities — (50 ) (111 ) — (161 ) Cash flows from financing activities: Payments of debt — (1 ) (1 ) — (2 ) Payments of financing and credit facility fees — (1 ) — — (1 ) Dividend to noncontrolling interest — — (4 ) — (4 ) 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 |
Quarterly Information (Tables)
Quarterly Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | Year ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (In millions, except per share amounts) Sales $ 877 $ 891 $ 888 $ 889 $ 3,545 Operating (loss) income — (18 ) 10 (18 ) (26 ) Net (loss) income attributable to Resolute Forest Products Inc. (8 ) (42 ) 14 (45 ) (81 ) Basic net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.16 (0.50 ) (0.90 ) Diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders (0.09 ) (0.47 ) 0.15 (0.50 ) (0.90 ) 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 ) |
Organization and Basis of Pre50
Organization and Basis of Presentation - Nature of Operations (Details) | Dec. 31, 2016sitecountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (over) | country | 70 |
Number of operating pulp and paper mills and wood products facilities (over) | site | 40 |
Organization and Basis of Pre51
Organization and Basis of Presentation - Summary of Less Than Wholly-Owned Consolidated Subsidiaries (Details) | Dec. 31, 2016 |
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% |
Organization and Basis of Pre52
Organization and Basis of Presentation - Change in Accounting Policy on Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Change in Accounting Estimate [Line Items] | ||||||||||||
Depreciation and amortization (reduction) | [1] | $ (206) | $ (237) | $ (243) | ||||||||
Net loss attributable to Resolute Forest Products Inc. (reduction) | $ (45) | $ 14 | $ (42) | $ (8) | $ (214) | $ (6) | $ (4) | $ (33) | $ (81) | $ (257) | $ (277) | |
Basic (in dollars per share) (reduction) | $ (0.50) | $ 0.16 | $ (0.47) | $ (0.09) | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (0.90) | $ (2.78) | $ (2.93) | |
Diluted (in dollars per share) (reduction) | $ (0.50) | $ 0.15 | $ (0.47) | $ (0.09) | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (0.90) | $ (2.78) | $ (2.93) | |
Scenario, Adjustment [Member] | ||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||
Depreciation and amortization (reduction) | $ 12 | |||||||||||
Net loss attributable to Resolute Forest Products Inc. (reduction) | $ 6 | |||||||||||
Basic (in dollars per share) (reduction) | $ 0.07 | |||||||||||
Diluted (in dollars per share) (reduction) | $ 0.07 | |||||||||||
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) |
Organization and Basis of Pre53
Organization and Basis of Presentation - Change in Accounting Policy on Consolidated Statements of Operations - Additional Information (Details) - Machinery and equipment [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Minimum [Member] | |
Change in Accounting Estimate [Line Items] | |
Estimated useful life | 5 years |
Maximum [Member] | |
Change in Accounting Estimate [Line Items] | |
Estimated useful life | 25 years |
Scenario, Adjustment [Member] | |
Change in Accounting Estimate [Line Items] | |
Increase in weighted-average useful life | 2 years |
Scenario, Adjustment [Member] | Minimum [Member] | |
Change in Accounting Estimate [Line Items] | |
Estimated useful life | 5 years |
Scenario, Adjustment [Member] | Maximum [Member] | |
Change in Accounting Estimate [Line Items] | |
Estimated useful life | 25 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||
Other assets (decrease) | $ (164) | $ (153) |
Deferred income tax assets (increase) | 1,039 | 982 |
Deficit (cumulative-effect adjustment) | 1,207 | $ 1,126 |
Restricted cash | 38 | |
Adjustments for New Accounting Pronouncement [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Other assets (decrease) | 35 | |
Deferred income tax assets (increase) | 32 | |
Deficit (cumulative-effect adjustment) | $ 3 |
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, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 81 | $ 59 | ||
Preliminary Allocation of Purchase Price [Member] | Atlas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
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 previously recorded | (2) | |||
Fair value of consideration transferred, net | 155 | |||
Measurement Period Adjustments [Member] | Atlas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | [3] | 0 | ||
Inventories | [3] | (1) | ||
Other current assets | [3] | 0 | ||
Current assets | [3] | (1) | ||
Fixed assets | [3] | 0 | ||
Amortizable intangible assets | [1],[3] | (31) | ||
Goodwill | [2],[3] | 22 | ||
Other assets | [3] | 0 | ||
Total assets acquired | [3] | (10) | ||
Cash overdraft | [3] | 0 | ||
Accounts payable and accrued liabilities | [3] | 0 | ||
Current liabilities assumed | [3] | 0 | ||
Deferred income tax liabilities | [3] | (10) | ||
Total liabilities assumed | [3] | (10) | ||
Net assets acquired | [3] | 0 | ||
Fair value of consideration transferred | [3] | 0 | ||
Recovery of consideration previously recorded | [3] | 0 | ||
Fair value of consideration transferred, net | [3] | 0 | ||
Final Allocation of Purchase Price [Member] | Atlas Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 13 | |||
Inventories | 11 | |||
Other current assets | 1 | |||
Current assets | 25 | |||
Fixed assets | 46 | |||
Amortizable intangible assets | [1] | 15 | ||
Goodwill | [2] | 81 | ||
Other assets | 1 | |||
Total assets acquired | 168 | |||
Cash overdraft | 2 | |||
Accounts payable and accrued liabilities | 11 | |||
Current liabilities assumed | 13 | |||
Deferred income tax liabilities | 0 | |||
Total liabilities assumed | 13 | |||
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 Tissue’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. Goodwill recognized is not deductible for tax purposes. | |||
[3] | Based on new information relating to facts and circumstances that existed as of the acquisition date, we finalized the allocation of the purchase price of Atlas Tissue during the measurement period. |
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 | $ 3,730 | $ 4,330 |
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) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 |
Net income (loss) attributable to Resolute Forest Products Inc. | $ (45) | $ 14 | $ (42) | $ (8) | $ (214) | $ (6) | $ (4) | $ (33) | $ (81) | (257) | $ (277) |
Atlas Inc. [Member] | |||||||||||
Sales | 11 | ||||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 1 |
Closure Costs, Impairment and60
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of assets | $ 22 | $ 176 | $ 14 | |
Accelerated depreciation | 35 | 2 | 208 | |
Pension plan curtailments | 4 | |||
Severance and other costs | 5 | 3 | 52 | |
Total | 62 | 181 | 278 | |
Paper mill in Mokpo, South Korea [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of assets | [1] | 13 | ||
Accelerated depreciation | [1] | 0 | ||
Severance and other costs | [1] | 0 | ||
Total | [1] | 13 | ||
Permanent closure of paper machine in Augusta, Georgia [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of assets | 0 | |||
Accelerated depreciation | 32 | |||
Severance and other costs | 4 | |||
Total | 36 | |||
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 | ||
Accelerated depreciation | 0 | 60 | ||
Pension plan curtailments | 6 | |||
Severance and other costs | 3 | 17 | ||
Total | 3 | 83 | ||
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 paper mill in Laurentide, Quebec [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 | ||
Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of assets | 9 | 8 | ||
Accelerated depreciation | 3 | 6 | ||
Pension plan curtailments | 0 | |||
Severance and other costs | 1 | 1 | ||
Total | $ 13 | $ 15 | ||
[1] | Due to declining market conditions and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. | |||
[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 $6 million for the year ended December 31, 2014, related to our recycling assets, to reduce the carrying value of the assets to fair value less costs to sell. We disposed of most of these assets in 2014. |
Closure Costs, Impairment and61
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Long-lived asset impairment charges | $ 22 | $ 176 | $ 14 | |
Paper mill in Mokpo, South Korea [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Long-lived asset impairment charges | [1] | $ 13 | ||
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 and rising recycled fiber prices, we recorded long-lived asset impairment charges of $13 million for the year ended December 31, 2016, to reduce the carrying value of the assets to fair value. Management estimated fair value using the market approach, by reference to transactions on comparable assets adjusted for additional risks and uncertainties associated with the deteriorating market environment, as well as increased competition in Asia. The fair value measurement is considered a level 3 measurement due to the significance of its unobservable inputs. In 2017, we announced the permanent closure of our Mokpo paper mill effective March 9, 2017. | |||
[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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss | $ (7) | $ (4) | $ (32) | |
Gain on disposition of equity method investment | [1] | 5 | 0 | 0 |
Write-down of equity method investment | [2] | 0 | 0 | (61) |
Miscellaneous income | 9 | 8 | 10 | |
Other income (expense), net | $ 7 | $ 4 | $ (83) | |
[1] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot, Quebec, in which we had a 50% interest, resulting in a gain on disposition of $5 million. | |||
[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 $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. |
Other Income (Expense), Net - A
Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 01, 2016 | ||
Other Income (Expense) [Line Items] | |||||
Gain on disposition of equity method investment | [1] | $ 5 | $ 0 | $ 0 | |
Write-down of equity method investment | [2] | 0 | $ 0 | 61 | |
Produits Forestiers Petit-Paris Inc. [Member] | |||||
Other Income (Expense) [Line Items] | |||||
Proceeds from sale of equity method investments | 5 | ||||
Gain on disposition of equity method investment | $ 5 | ||||
Ownership percentage of equity method investment | 50.00% | ||||
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 | ||||
[1] | On February 1, 2016, we sold for total consideration of $5 million our interest in Produits Forestiers Petit-Paris Inc., an unconsolidated entity located in Saint-Ludger-de-Milot, Quebec, in which we had a 50% interest, resulting in a gain on disposition of $5 million. | ||||
[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 $61 million in 2014. The carrying value of the investment was reduced to a fair value of nil, which was determined using the discounted cash flow method. |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (587) | |||
Other comprehensive income (loss) before reclassifications | (189) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 21 | ||
Other comprehensive (loss) income, net of tax | (168) | $ 131 | $ (447) | |
Ending balance | (755) | (587) | ||
Unamortized Prior Service Credits [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 84 | |||
Other comprehensive income (loss) before reclassifications | (1) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | (16) | ||
Other comprehensive (loss) income, net of tax | (17) | |||
Ending balance | 67 | 84 | ||
Unamortized Actuarial Losses [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (667) | |||
Other comprehensive income (loss) before reclassifications | (189) | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 37 | ||
Other comprehensive (loss) income, net of tax | (152) | |||
Ending balance | (819) | (667) | ||
Foreign Currency Translation [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (4) | |||
Other comprehensive income (loss) before reclassifications | 1 | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | ||
Other comprehensive (loss) income, net of tax | 1 | |||
Ending balance | $ (3) | $ (4) | ||
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi65
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 2,716 | $ 2,826 | $ 3,240 | |||||||||
Income tax provision (benefit) | 19 | (1) | (30) | |||||||||
Net of tax | $ 45 | $ (14) | $ 42 | $ 8 | $ 214 | $ 6 | $ 4 | $ 33 | 81 | $ 257 | $ 277 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Net of tax | 21 | |||||||||||
Unamortized Prior Service Credits [Member] | Amounts Reclassified from Accumulated Other Comprehensive 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) | 0 | |||||||||||
Net of tax | (16) | |||||||||||
Unamortized Actuarial Losses [Member] | Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 49 | ||||||||||
Income tax provision (benefit) | (12) | |||||||||||
Net of tax | $ 37 | |||||||||||
[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 Outstanding Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1.4 | 1.5 | 1.6 |
Stock unit awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 2.6 | 1.4 | 1.3 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 171 | $ 152 |
Finished goods | 183 | 179 |
Mill stores and other supplies | 216 | 210 |
Inventories, net | $ 570 | $ 541 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Inventory write-downs related to closures | $ 7 | $ 2 | $ 17 |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | $ 3,257 | $ 3,240 | |
Less: accumulated depreciation | (1,415) | (1,430) | |
Fixed assets, net | 1,842 | 1,810 | |
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 77 | 93 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 257 | 302 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | [1],[2] | 2,264 | 2,313 |
Hydroelectric power plants [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 287 | 287 | |
Timber and timberlands improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | 109 | 99 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fixed assets, gross | [2] | 263 | 146 |
Internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment, gross | 83 | 58 | |
Construction in progress, gross | 13 | 10 | |
Fixed assets, gross | 96 | 68 | |
Less: accumulated depreciation | (27) | (16) | |
Fixed assets, net | $ 69 | $ 52 | |
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. As a result, effective January 1, 2016, the estimated useful lives of machinery and equipment were changed to a range of five to 25 years, increasing the weighted-average estimated useful lives of machinery and equipment by two years. | ||
[2] | Internal-use software included in fixed assets, net as of December 31, 2016 and 2015, was as follows: (In millions)2016 2015 Machinery and equipment$83 $58 Construction in progress 13 10 96 68 Less: Accumulated depreciation (27) (16) $69 $52 Depreciation expense related to internal-use software is estimated to be $12 million for each of the next three years and $8 million in both 2020 and 2021. |
Fixed Assets, Net Fixed Assets,
Fixed Assets, Net Fixed Assets, Net (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
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 | 2 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 | 5 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 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, 2017 | $ 12 |
Estimated amortization expense, 2018 | 12 |
Estimated amortization expense, 2019 | 12 |
Estimated amortization expense, 2020 | 8 |
Estimated amortization expense, 2021 | $ 8 |
Scenario, Adjustment [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Increase in weighted-average useful life | 2 years |
Scenario, Adjustment [Member] | Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Scenario, Adjustment [Member] | Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Amortizable Intangible Assets71
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | $ 86 | $ 117 | |
Accumulated amortization | 16 | 12 | |
Net | 70 | 105 | |
Water rights [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [1] | 19 | 19 |
Accumulated amortization | [1] | 4 | 4 |
Net | [1] | 15 | 15 |
Energy contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | 52 | 52 | |
Accumulated amortization | 11 | 8 | |
Net | 41 | 44 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [2] | 14 | 44 |
Accumulated amortization | [2] | 1 | 0 |
Net | [2] | 13 | 44 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value | [2] | 1 | 2 |
Accumulated amortization | [2] | 0 | 0 |
Net | [2] | $ 1 | $ 2 |
[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 or 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 Tissue, we identified amortizable intangible assets primarily related to customer relationships. In 2016, we recorded a decrease of $31 million due to measurement-period adjustments of the purchase price allocation for Atlas Tissue. For additional information, see Note 3, “Acquisition of Atlas Paper Holdings, Inc.” |
Amortizable Intangible Assets72
Amortizable Intangible Assets, Net - Summary of Amortizable Intangible Assets, Net (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Water rights [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Water rights [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 40 years |
Energy contracts [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Energy contracts [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 25 years |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Amortizable Intangible Assets73
Amortizable Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Nov. 16, 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 | ||
Atlas Inc. [Member] | Scenario, Adjustment [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Measure-period adjustment to intangible assets | [1],[2] | $ 31 | |
[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] | Based on new information relating to facts and circumstances that existed as of the acquisition date, we finalized the allocation of the purchase price of Atlas Tissue during the measurement period. |
Amortizable Intangible Assets74
Amortizable Intangible Assets, Net - Additional Information (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense related to amortizable intangible assets | $ 4 | $ 3 | $ 4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Estimated amortization expense, 2017 | 5 | ||
Estimated amortization expense, 2018 | 5 | ||
Estimated amortization expense, 2019 | 5 | ||
Estimated amortization expense, 2020 | 5 | ||
Estimated amortization expense, 2021 | $ 5 |
Accounts Payable and Accrued 75
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 346 | $ 324 |
Payroll, bonuses and severance payable | 51 | 56 |
Accrued interest | 5 | 5 |
Pension and OPEB obligations | 17 | 17 |
Book overdrafts | 13 | 0 |
Income and other taxes payable | 7 | 5 |
Environmental liabilities | 5 | 5 |
Other | 22 | 24 |
Accounts payable and accrued liabilities | $ 466 | $ 436 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facilities | $ 125 | $ 0 |
Capital lease obligation | 1 | 2 |
Total debt | 762 | 591 |
Less: Current portion of long-term debt | (1) | (1) |
Long-term debt, net of current portion | 761 | 590 |
Secured Debt [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 46 | 0 |
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 600 | 600 |
Deferred finance costs | (6) | (7) |
Unamortized discount | (4) | (4) |
Net carrying amount | $ 590 | $ 589 |
Long-Term Debt - Debt Redemptio
Long-Term Debt - Debt Redemption Schedule (Details) - Redemption Including Accrued And Unpaid Interest [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2016 | |
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 Redempt78
Long-Term Debt - Debt Redemption Schedule - Additional Information (Details) - Senior Notes [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] | 12 Months Ended |
Dec. 31, 2016 | |
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 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) - Senior Notes Due Two Thousand Twenty-Three [Member] - Senior Notes [Member] - USD ($) | May 08, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
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 | $ 543,000,000 | $ 440,000,000 |
Unamortized discount | $ 6,000,000 | ||
Effective interest rate of debt | 6.00% | ||
Maturity date | May 15, 2023 | ||
Deferred financing costs | $ 9,000,000 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - Senior Secured Credit Facility [Member] - USD ($) | 2 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2016 | Sep. 07, 2016 | |
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 185,000,000 | ||
Maximum capitalization ratio | 45.00% | ||
Minimum available liquidity | $ 100,000,000 | ||
Minimum collateral coverage ratio | 1.8 | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | 46,000,000 | ||
Secured Debt [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.00% | ||
Secured Debt [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 0.875% | ||
Secured Debt [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.50% | ||
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 2.00% | ||
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.875% | ||
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 2.50% | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility lender commitment amount | 139,000,000 | ||
Credit facility uncommitted option amount | $ 175,000,000 | ||
Credit facility commitment fee percentage, unutilized commitments | 0.325% | ||
Average daily utilization threshold, percentage | 35.00% | ||
Available credit facility borrowing capacity | $ 49,000,000 | ||
Credit facility borrowings | $ 90,000,000 | ||
Line of Credit [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility commitment fee percentage, unutilized commitments | 0.275% | ||
Line of Credit [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility commitment fee percentage, unutilized commitments | 0.325% | ||
Line of Credit [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 0.625% | ||
Line of Credit [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 0.50% | ||
Line of Credit [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.125% | ||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.625% | ||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.50% | ||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 2.125% | ||
Federal Funds Effective Swap Rate [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate margin applicable to borrowings | 1.00% | ||
Subsequent Event [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, additional borrowings | $ 35,000,000 |
Long-Term Debt - Long-Term De81
Long-Term Debt - Long-Term Debt Including Current Portion - ABL Credit Facility (Details) - Revolving Credit Facility [Member] | May 22, 2015 | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($)day | 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 | day | 2 | |||
Available credit facility borrowing capacity | $ 384,000,000 | |||
Credit facility borrowings | 35,000,000 | |||
Letters of credit amount outstanding | 31,000,000 | |||
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% | |||
Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Revolving credit facility, additional borrowings | $ 80,000,000 |
Long-Term Debt - Long-Term Incl
Long-Term Debt - Long-Term Including Current Portion - Other Debt (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Debt Disclosure [Abstract] | |
Carrying value of assets pledged as collateral for total debt | $ 1.3 |
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 | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2016CAD | Dec. 31, 2014planposition | Dec. 31, 2015USD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Total benefit obligations for pension plans with benefit obligations in excess of plan assets | $ | $ 4,958 | $ 4,642 | ||
Total fair value of plan assets for pension plans with benefit obligations in excess of plan assets | $ | 3,832 | 3,613 | ||
Total accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | $ | 4,903 | 4,555 | ||
Total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | $ | 3,832 | 3,583 | ||
Total accumulated benefit obligations for all pension plans | $ | 5,141 | $ 5,007 | ||
Estimated amount of actuarial gains (losses) to be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 51 | |||
Estimated amount of prior service credits (costs) that will be amortized from accumulated other comprehensive income (loss) in the next fiscal year | $ | 15 | |||
Estimated pension contributions in the next fiscal year | $ | $ 130 | |||
Percentage of total unfunded pension obligations represented by the pension plans subject to Canadian pension funding relief measures | 65.00% | 65.00% | ||
Annual basic contribution to pension plans subject to Canadian pension funding relief measures | 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% | ||
Supplemental contribution required by the funding relief regulations | 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% | ||
Corrective measures amount payable under the Canadian pension funding relief regulations at expiration | CAD 110,000,000 | |||
Corrective measures amount payable under the Canadian pension funding relief regulations, payment period | 5 years | 5 years | ||
Canada [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Estimated pension contributions in the next fiscal year | $ 95 | CAD 127,000,000 | ||
Ontario [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Revised annual contribution to pension plans subject to Canadian pension funding relief measures | 9,000,000 | |||
Prorated remaining annual contribution to pension plans subject to canadian pension funding relief measures in 2017 prior to amendement | CAD 5,000,000 | |||
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] | ||||
Annual additional contribution related to downtime under the Canadian pension funding relief regulations | CAD 13,000,000 | |||
Expected annual additional contribution related to downtime expected in 2017 under the Canadian pension funding relief regulations | 31,000,000 | |||
Expected annual additional contribution related to downtime expected in 2018 under the Canadian pension funding relief regulations | 21,000,000 | |||
Expected annual additional contribution related to downtime expected in 2019 under the Canadian pension funding relief regulations | 5,000,000 | |||
Expected annual additional contribution related to downtime expected in 2020 under the Canadian pension funding relief regulations | CAD 2,000,000 | |||
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% | ||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations | 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 | ||
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 | position | 470 | |||
Number of pension plans curtailed | plan | 2 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Expense for the defined contribution plans, total | $ 21 | $ 20 | $ 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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | $ 5,068 | $ 6,229 | |
Service cost | 20 | 23 | $ 26 |
Interest cost | 215 | 225 | 274 |
Actuarial loss (gain) | 169 | (140) | |
Participant contributions | 8 | 7 | |
Plan amendment | 1 | 0 | |
Settlements | (28) | (65) | |
Benefits paid | (380) | (410) | |
Effect of foreign currency exchange rate changes | 123 | (801) | |
Benefit obligations as of end of year | 5,196 | 5,068 | 6,229 |
OPEB Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | 174 | 210 | |
Service cost | 1 | 1 | 1 |
Interest cost | 7 | 8 | 11 |
Actuarial loss (gain) | 0 | (11) | |
Participant contributions | 2 | 2 | |
Plan amendment | 0 | 0 | |
Settlements | 0 | 0 | |
Benefits paid | (15) | (15) | |
Effect of foreign currency exchange rate changes | 3 | (21) | |
Benefit obligations as of end of year | $ 172 | $ 174 | $ 210 |
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, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | $ 4,049 | |
Fair value of plan assets as of end of year | 4,073 | $ 4,049 |
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 | 4,049 | 4,808 |
Actual return on plan assets | 184 | 224 |
Employer contributions | 141 | 123 |
Participant contributions | 8 | 7 |
Settlements | (28) | (65) |
Benefits paid | (380) | (410) |
Effect of foreign currency exchange rate changes | 99 | (638) |
Fair value of plan assets as of end of year | 4,073 | 4,049 |
Funded status as of end of year | (1,123) | (1,019) |
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 | 13 |
Participant contributions | 2 | 2 |
Settlements | 0 | 0 |
Benefits paid | (15) | (15) |
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 | $ (172) | $ (174) |
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, 2016 | Dec. 31, 2015 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accounts payable and accrued liabilities | $ (17) | $ (17) |
Pension and OPEB obligations | (1,281) | (1,186) |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 3 | 10 |
Accounts payable and accrued liabilities | (3) | (3) |
Pension and OPEB obligations | (1,123) | (1,026) |
Net obligations recognized | (1,123) | (1,019) |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 0 | 0 |
Accounts payable and accrued liabilities | (14) | (14) |
Pension and OPEB obligations | (158) | (160) |
Net obligations recognized | $ (172) | $ (174) |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments and settlements | $ 4 | ||
Pension Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | $ 20 | $ 23 | 26 |
Interest cost | 215 | 225 | 274 |
Expected return on plan assets | (247) | (260) | (300) |
Amortization of prior service credits | (1) | (2) | (2) |
Amortization of actuarial losses (gains) | 54 | 84 | 9 |
Net periodic benefit cost before special events | 41 | 70 | 7 |
Curtailments and settlements | 0 | 14 | 4 |
Net periodic benefit cost | 41 | 84 | 11 |
OPEB Plans [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 7 | 8 | 11 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credits | (15) | (14) | (11) |
Amortization of actuarial losses (gains) | (5) | (5) | (4) |
Net periodic benefit cost before special events | (12) | (10) | (3) |
Curtailments and settlements | 0 | 0 | 0 |
Net periodic benefit cost | $ (12) | $ (10) | $ (3) |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.80% | 4.20% | 4.00% |
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 | 4.20% | 4.00% | 4.90% |
Expected return on assets | 6.20% | 6.30% | 6.50% |
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 | 3.90% | 4.40% | 4.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.40% | 4.10% | 5.00% |
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, 2016 | Dec. 31, 2015 | |
Domestic Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year | 7.00% | 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 | 4.20% | 4.40% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.00% | 3.80% |
Year that the rate reaches the ultimate trend rate | 2,028 | 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, 2016USD ($) | |
Domestic Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Benefit obligation, monetary impact of 1% increase in health care cost trend rate | $ 4 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 6.00% |
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 | $ 5 |
Benefit obligation, percentage impact of 1% increase in health care cost trend rate | 4.00% |
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 | $ (4) |
Benefit obligation, percentage impact of 1% decrease in health care cost trend rate | (4.00%) |
Service and interest costs, monetary impact of 1% decrease in health care cost trend rate | $ 0 |
Service and interest costs, percentage impact of 1% decrease in health care cost trend rate | (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, 2016 | Dec. 31, 2015 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 4,073 | $ 4,049 |
U.S. company equity securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 865 | 587 |
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 | 865 | 587 |
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] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 889 | 626 |
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 | 889 | 626 |
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 |
Corporate and government debt securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,281 | 2,243 |
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 | 163 | 274 |
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 | 1,118 | 1,969 |
Asset-backed securities [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 71 | 97 |
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 | 71 | 97 |
Cash and cash equivalents [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 320 | 191 |
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 | 320 | 191 |
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 |
Accrued interest and dividends [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 45 | 36 |
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 | 45 | 36 |
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 | 3,471 | 3,780 |
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 | 2,237 | 1,678 |
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 | 1,234 | 2,102 |
Investments measured at NAV [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 602 | $ 269 |
Pension and Other Postretirem93
Pension and Other Postretirement Benefit Plans - Expected Benefit Payments and Future Contributions (Details) $ in Millions | Dec. 31, 2016USD ($) | |
Pension Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2017 Expected benefit payments | $ 355 | [1] |
2018 Expected benefit payments | 352 | [1] |
2019 Expected benefit payments | 350 | [1] |
2020 Expected benefit payments | 346 | [1] |
2021 Expected benefit payments | 342 | [1] |
2022 - 2026 Expected benefit payments | 1,637 | [1] |
OPEB Plans [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
2017 Expected benefit payments | 14 | |
2018 Expected benefit payments | 14 | |
2019 Expected benefit payments | 14 | |
2020 Expected benefit payments | 13 | |
2021 Expected benefit payments | 13 | |
2022 - 2026 Expected benefit payments | $ 60 | |
[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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (227) | $ (355) | $ (221) |
Foreign | 170 | 99 | (83) |
Income (loss) before income taxes | $ (57) | $ (256) | $ (304) |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Federal and State: | |||
Current | $ 0 | $ 4 | $ (4) |
Deferred | (11) | 32 | 6 |
U.S. Federal and State, Total | (11) | 36 | 2 |
Foreign: | |||
Current | (5) | 0 | (2) |
Deferred | (3) | (35) | 30 |
Foreign, Total | (8) | (35) | 28 |
Total: | |||
Current | (5) | 4 | (6) |
Deferred | (14) | (3) | 36 |
Income tax benefit (provision) | $ (19) | $ 1 | $ 30 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
Loss before income taxes | $ (57) | $ (256) | $ (304) | |
Income tax (provision) benefit: | ||||
Expected income tax benefit | 20 | 90 | 106 | |
Changes resulting from: | ||||
Valuation allowance | [1] | (99) | (109) | (51) |
Adjustments for unrecognized tax benefits | [2] | 55 | 0 | 1 |
Foreign exchange | (9) | (20) | (17) | |
Research and development, and other tax incentives | 0 | 1 | 1 | |
State income taxes, net of federal income tax benefit | 6 | 12 | 5 | |
Foreign tax rate differences | 11 | 8 | (8) | |
Effect of change in tax rates | [3] | 0 | 18 | 0 |
Other, net | [4] | (3) | 1 | (7) |
Income tax benefit (provision) | $ (19) | $ 1 | $ 30 | |
[1] | During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million, respectively, 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 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. | |||
[2] | During 2016, we recorded tax benefits of $55 million, almost all of which related to the release of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. | |||
[3] | During 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. | |||
[4] | During 2016, we recorded an income tax provision of $4 million, upon the completion of a tax audit. |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Fixed assets | $ (44) | $ (81) |
Deferred gains | 0 | (14) |
Other liabilities | (21) | (16) |
Deferred income tax liabilities | (65) | (111) |
Fixed assets | 520 | 489 |
Pension and OPEB plans | 392 | 359 |
Operating loss carryforwards | 838 | 773 |
Capital loss carryforwards | 11 | 12 |
Undeducted research and development expenditures | 185 | 177 |
Tax credit carryforwards | 107 | 103 |
Other assets | 49 | 43 |
Deferred income tax assets | 2,102 | 1,956 |
Valuation allowance | (1,000) | (865) |
Net deferred income tax assets | 1,037 | 980 |
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||
Deferred income tax assets | 1,039 | 982 |
Deferred income tax liabilities | (2) | (2) |
Net deferred income tax assets | $ 1,037 | $ 980 |
Income Taxes - Balance of Tax A
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | $ 838 | $ 773 | |
Capital loss carryforwards | 11 | 12 | |
Undeducted research and development expenditures | 185 | 177 | |
Tax credit carryforwards | 107 | $ 103 | |
U.S. Federal [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | [1] | 710 | |
U.S. State [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | [1] | 72 | |
Tax credit carryforwards | [1] | 16 | |
Canada Federal and Provincial (Excluding Quebec) [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | 17 | ||
Undeducted research and development expenditures | 107 | ||
Quebec [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | 13 | ||
Undeducted research and development expenditures | 78 | ||
Other [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Operating loss carryforwards | 26 | ||
Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Capital loss carryforwards | 11 | ||
Research Tax Credit Carryforward [Member] | Canadian [Member] | |||
Significant Tax Attributes And Dates Of Expiration [Line Items] | |||
Tax credit carryforwards | $ 91 | ||
[1] | As of December 31, 2016, we had a full valuation allowance against our U.S. operations net deferred income tax assets. |
Income Taxes - Balance of Tax99
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Parenthetical) (Details) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Federal [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | $ 2,026 |
U.S. State [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 1,747 |
Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 81 |
Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Operating loss carryforwards | 127 |
Research Tax Credit Carryforward [Member] | Canada Federal and Provincial (Excluding Quebec) [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 643 |
Research Tax Credit Carryforward [Member] | Quebec [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | 783 |
Capital Loss Carryforward [Member] | Canadian [Member] | |
Significant Tax Attributes And Dates Of Expiration [Line Items] | |
Tax credit carryforwards | $ 40 |
Income Taxes - Reconciliatio100
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Reconciliation of Unrecognized Tax Benefits | |||
Beginning of year | $ 97 | $ 109 | |
Increase (decrease) in unrecognized tax benefits resulting from: [Roll Forward] | |||
Positions taken in the current period | 1 | 2 | |
Expirations of statute limitations (1) | [1] | (55) | (2) |
Settlements with taxing authorities | (1) | (1) | |
Change in foreign exchange rate | 2 | ||
Change in foreign exchange rate | (11) | ||
End of year | $ 44 | $ 97 | |
[1] | During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Increase (decrease) in valuation allowance | [1] | $ 99 | $ 109 | $ 51 |
Unrecognized tax benefits recognized - expirations of statute limitations | [2] | 55 | 2 | |
Effect of change in tax rates | [3] | 0 | 18 | 0 |
Income tax provision recognized upon completion of an tax audit | 4 | |||
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | 19 | (1) | $ (30) | |
Unrecognized tax benefits that would impact the effective tax rate | 3 | |||
Deferred income tax provision following an operating company realignment [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax provision (benefit) | $ 35 | $ 38 | ||
[1] | During 2016 and 2015, we recorded a valuation allowance of $99 million and $109 million, respectively, 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 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. | |||
[2] | During 2016, we released $55 million of previously unrecognized tax benefits due to the lapse of the statute of limitations of the applicable jurisdictions. | |||
[3] | During 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, $ in Millions | Oct. 30, 2014USD ($) | Oct. 30, 2014CAD | Dec. 31, 2016USD ($)site | Dec. 31, 2016CADsite | Dec. 31, 2016CAD | Dec. 31, 2015USD ($) | Oct. 15, 2015 | Aug. 03, 2015 | Jul. 31, 2012 |
Loss Contingencies [Line Items] | |||||||||
Subsidy rate on supercalendered paper exports | 17.87% | 17.87% | 17.87% | 2.04% | |||||
Accumulated cash deposits on supercalendered paper exports | $ 27 | ||||||||
Maximum deficit from partial wind-up of pension plans to be funded | $ 110 | CAD 150 | |||||||
Environmental Remediation Obligations [Abstract] | |||||||||
Number of hazardous waste sites | site | 4 | 4 | |||||||
Environmental liabilities | $ 8 | $ 12 | |||||||
Asset retirement obligations | 23 | $ 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 | CAD 14 | |||||||
Countervailing Duty Investigation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Contingent loss recorded | 0 | ||||||||
Conditional Incentive Noncompliance [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Request of repayment of conditional incentive | $ 17 | CAD 23 | |||||||
Contingent liability recorded | 0 | ||||||||
Maximum [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Yearly cash deposits made on supercalendered paper exports | $ 25 |
Share Capital (Details)
Share Capital (Details) - USD ($) | May 28, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 22, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized | 190,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Share repurchase program, aggregate purchase price, increase | $ 50,000,000 | ||||
Share repurchase program, aggregate purchase price | $ 100,000,000 | ||||
Share repurchase program, shares, repurchased | 0 | 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 | ||
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 | |||
Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance as stock incentive awards | 9,020,960 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance as stock incentive awards | 9,020,960 | ||
Shares available for issuance | 719,357 | ||
Share-based compensation expense | $ 11 | $ 12 | $ 6 |
Tax benefit from share-based compensation expense | 0 | $ 0 | $ 0 |
Unrecognized compensation cost related to equity awards | $ 14 | ||
Remaining requisite service period for equity awards to be recognized | 3 years | ||
Incentive Plan [Member] | 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 | ||
Stock options granted | 0 | 0 | 0 |
Total intrinsic value - stock options exercised | $ 0 | $ 0 | $ 2 |
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 | $ 3.97 | $ 7.94 | $ 18.62 |
Total fair value - stock units vested | $ 3 | $ 3 | $ 5 |
Stock units outstanding | 2,554,639 | 1,419,454 | |
Incentive Plan [Member] | 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 | $ 3.95 | $ 7.54 | $ 18.61 |
Stock units outstanding | 2,345,420 | 991,386 | |
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 | 127,521 | 79,020 | |
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 | 248,010 | ||
Maximum [Member] | Incentive Plan [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] | Incentive Plan [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 Activity (Details) - Stock options [Member] - Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | 1,477,613 | |
Forfeited | (17,289) | |
Expired | (44,353) | |
Outstanding - end of year | 1,415,971 | 1,477,613 |
Exercisable as of December 31, 2016 | 1,255,763 | |
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | ||
Outstanding - beginning of year | $ 15.76 | |
Forfeited | 15.23 | |
Expired | 18.05 | |
Outstanding - end of year | 15.77 | $ 15.76 |
Exercisable as of December 31, 2016 | $ 15.78 | |
Stock Options, Additional Disclosures [Abstract] | ||
Weighted average contractual life - stock options outstanding | 5 years 10 months | 6 years 10 months |
Weighted average contractual life - stock options exercisable | 5 years 8 months |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Nonvested Units Activity [Roll Forward] | |||
Outstanding - beginning of year | 1,419,454 | ||
Granted | 1,829,188 | ||
Vested | (627,740) | ||
Forfeited | (66,263) | ||
Outstanding - end of year | 2,554,639 | 1,419,454 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |||
Outstanding - beginning of year | $ 11.03 | ||
Granted | 3.97 | $ 7.94 | $ 18.62 |
Vested | 10.12 | ||
Forfeited | 10.90 | ||
Outstanding - end of year | $ 6.20 | $ 11.03 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - PSU Activity (Details) - Incentive Plan [Member] - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Units Outstanding [Roll Forward] | |||
Outstanding - beginning of year | 991,386 | ||
Granted | 1,399,056 | ||
Forfeited | (45,022) | ||
Outstanding - end of year | 2,345,420 | 991,386 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |||
Outstanding - beginning of year | $ 10.76 | ||
Granted | 3.95 | $ 7.54 | $ 18.61 |
Forfeited | 10.40 | ||
Outstanding - end of year | $ 6.71 | $ 10.76 |
Operating Leases and Purchas108
Operating Leases and Purchase Obligations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease expense | $ 9 | $ 8 | $ 7 |
Purchase obligations - energy purchase obligations | $ 256 |
Operating Leases and Purchas109
Operating Leases and Purchase Obligations - Schedule of Future Minimum Rental Payments for Operating Leases and Commitments for Purchase Obligations (Details) $ in Millions | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase Obligations, 2017 | $ 111 | [1] |
Purchase Obligations, 2018 | 66 | [1] |
Purchase Obligations, 2019 | 52 | [1] |
Purchase Obligations, 2020 | 52 | [1] |
Purchase Obligations, 2021 | 44 | [1] |
Purchase Obligations, Thereafter | 24 | [1] |
Purchase Obligations, Total | 349 | [1] |
Operating Leases, 2017 | 6 | |
Operating Leases, 2018 | 6 | |
Operating Leases, 2019 | 5 | |
Operating Leases, 2020 | 5 | |
Operating Leases, 2021 | 5 | |
Operating Leases, Thereafter | 11 | |
Operating Leases, Total | $ 38 | |
[1] | Includes energy purchase obligations of $256 million through 2021 for certain of our pulp and paper mills. |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 | |
Depreciation and amortization | [1] | 206 | 237 | 243 | ||||||||
Operating income (loss) | $ (18) | $ 10 | $ (18) | $ 0 | $ (226) | $ 6 | $ 16 | $ (15) | (26) | (219) | (174) | |
Capital expenditures | 249 | 185 | 193 | |||||||||
Scenario, Adjustment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (12) | |||||||||||
Operating segments [Member] | Market Pulp [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 836 | 889 | 974 | ||||||||
Depreciation and amortization | [1],[2] | 37 | 53 | 53 | ||||||||
Operating income (loss) | [2] | 43 | 76 | 63 | ||||||||
Capital expenditures | [2] | 20 | 60 | 23 | ||||||||
Operating segments [Member] | Tissue [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [3] | 89 | 11 | 0 | ||||||||
Depreciation and amortization | [1],[3] | 5 | 1 | 0 | ||||||||
Operating income (loss) | [3] | (10) | (1) | 0 | ||||||||
Capital expenditures | [3] | 156 | 41 | 0 | ||||||||
Operating segments [Member] | Wood Products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [4] | 596 | 536 | 610 | ||||||||
Depreciation and amortization | [1],[4] | 31 | 37 | 33 | ||||||||
Operating income (loss) | [4] | 69 | 2 | 69 | ||||||||
Capital expenditures | [4] | 23 | 43 | 77 | ||||||||
Operating segments [Member] | Newsprint [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,009 | 1,105 | 1,402 | |||||||||
Depreciation and amortization | [1] | 74 | 64 | 69 | ||||||||
Operating income (loss) | (15) | (23) | 20 | |||||||||
Capital expenditures | 2 | 10 | 39 | |||||||||
Operating segments [Member] | Specialty Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,015 | 1,104 | 1,272 | |||||||||
Depreciation and amortization | [1] | 45 | 71 | 82 | ||||||||
Operating income (loss) | 25 | 29 | (19) | |||||||||
Capital expenditures | 23 | 13 | 34 | |||||||||
Operating segments [Member] | Segment Total [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 3,545 | 3,645 | 4,258 | |||||||||
Depreciation and amortization | [1] | 192 | 226 | 237 | ||||||||
Operating income (loss) | 112 | 83 | 133 | |||||||||
Capital expenditures | 224 | 167 | 173 | |||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Market Pulp [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (18) | |||||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Tissue [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 0 | |||||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Wood Products [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (12) | |||||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Newsprint [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 23 | |||||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Specialty Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (5) | |||||||||||
Operating segments [Member] | Scenario, Adjustment [Member] | Segment Total [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (12) | |||||||||||
Corporate, non-segment [Member] | Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 0 | 0 | 0 | |||||||||
Depreciation and amortization | [1] | 14 | 11 | 6 | ||||||||
Operating income (loss) | (138) | (302) | (307) | |||||||||
Capital expenditures | $ 25 | $ 18 | $ 20 | |||||||||
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) | |||||||||||
[2] | Inter-segment sales of $33 million, $20 million and $19 million, which are transacted at cost, are excluded from market pulp sales for the years ended December 31, 2016, 2015 and 2014, respectively. | |||||||||||
[3] | Tissue capital expenditures for the years ended December 31, 2016 and 2015, consisted almost entirely of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. | |||||||||||
[4] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $17 million, $20 million and $24 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Segment Information - Schedu111
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 | |
Depreciation and amortization | [1] | 206 | 237 | 243 | ||||||||
Market Pulp [Member] | Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 33 | 20 | 19 | |||||||||
Market Pulp [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [2] | 836 | 889 | 974 | ||||||||
Depreciation and amortization | [1],[2] | 37 | 53 | 53 | ||||||||
Tissue [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [3] | 89 | 11 | 0 | ||||||||
Depreciation and amortization | [1],[3] | 5 | 1 | 0 | ||||||||
Wood Products [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | [4] | 596 | 536 | 610 | ||||||||
Sales to joint-ventures | 17 | 20 | 24 | |||||||||
Depreciation and amortization | [1],[4] | 31 | 37 | 33 | ||||||||
Newsprint [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,009 | 1,105 | 1,402 | |||||||||
Depreciation and amortization | [1] | 74 | 64 | 69 | ||||||||
Specialty Papers [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 1,015 | 1,104 | 1,272 | |||||||||
Depreciation and amortization | [1] | 45 | 71 | 82 | ||||||||
Segment Total [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Sales | 3,545 | 3,645 | 4,258 | |||||||||
Depreciation and amortization | [1] | 192 | $ 226 | $ 237 | ||||||||
Scenario, Adjustment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (12) | |||||||||||
Scenario, Adjustment [Member] | Market Pulp [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (18) | |||||||||||
Scenario, Adjustment [Member] | Tissue [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 0 | |||||||||||
Scenario, Adjustment [Member] | Wood Products [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (12) | |||||||||||
Scenario, Adjustment [Member] | Newsprint [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 23 | |||||||||||
Scenario, Adjustment [Member] | Specialty Papers [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | (5) | |||||||||||
Scenario, Adjustment [Member] | Segment Total [Member] | Operating segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | $ (12) | |||||||||||
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) | |||||||||||
[2] | Inter-segment sales of $33 million, $20 million and $19 million, which are transacted at cost, are excluded from market pulp sales for the years ended December 31, 2016, 2015 and 2014, respectively. | |||||||||||
[3] | Tissue capital expenditures for the years ended December 31, 2016 and 2015, consisted almost entirely of construction in progress expenditures for the tissue manufacturing and converting facility in Calhoun. | |||||||||||
[4] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $17 million, $20 million and $24 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Segment Information - Summary o
Segment Information - Summary of Sales by Country (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,464 | 2,421 | 2,809 | ||||||||
Foreign countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,081 | 1,224 | 1,449 | ||||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 428 | 476 | 540 | ||||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 126 | 150 | 174 | ||||||||
Brazil [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 34 | 70 | 107 | ||||||||
Other countries [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 493 | $ 528 | $ 628 |
Segment Information - Summar113
Segment Information - Summary of Sales by Country (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 - Summar114
Segment Information - Summary of Long-Lived Assets, by Country (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,062 | $ 2,022 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 795 | 677 |
Foreign countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,267 | 1,345 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,259 | 1,323 |
South Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8 | $ 22 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |
Condensed Consolidating Fina116
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 | |
Costs and expenses: | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,716 | 2,826 | 3,240 | |||||||||
Depreciation and amortization | [1] | 206 | 237 | 243 | ||||||||
Distribution costs | 440 | 460 | 518 | |||||||||
Selling, general and administrative expenses | 149 | 160 | 155 | |||||||||
Closure costs, impairment and other related charges | 62 | 181 | 278 | |||||||||
Net gain on disposition of assets | (2) | 0 | (2) | |||||||||
Operating income (loss) | (18) | 10 | (18) | 0 | (226) | 6 | 16 | (15) | (26) | (219) | (174) | |
Interest expense | (38) | (41) | (47) | |||||||||
Other income (expense), net | 7 | 4 | (83) | |||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes | (57) | (256) | (304) | |||||||||
Income tax benefit (provision) | (19) | 1 | 30 | |||||||||
Net income (loss) including noncontrolling interests | (76) | (255) | (274) | |||||||||
Net (income) loss attributable to noncontrolling interests | (5) | (2) | (3) | |||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ (45) | $ 14 | $ (42) | $ (8) | $ (214) | $ (6) | $ (4) | $ (33) | (81) | (257) | (277) | |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (249) | (126) | (724) | |||||||||
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 | 20 | 19 | 17 | |||||||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | |||||||||
Net gain on disposition of assets | 0 | 0 | ||||||||||
Operating income (loss) | (20) | (19) | (17) | |||||||||
Interest expense | (80) | (75) | (71) | |||||||||
Other income (expense), net | 0 | 0 | (1) | |||||||||
Equity in (loss) income of subsidiaries | 19 | (163) | (188) | |||||||||
Income (loss) before income taxes | (81) | (257) | (277) | |||||||||
Income tax benefit (provision) | 0 | 0 | 0 | |||||||||
Net income (loss) including noncontrolling interests | (81) | (257) | (277) | |||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (81) | (257) | (277) | |||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (249) | (126) | (724) | |||||||||
Guarantor Subsidiaries [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Sales | 2,907 | 2,975 | 3,475 | |||||||||
Costs and expenses: | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 2,745 | 2,780 | 3,225 | |||||||||
Depreciation and amortization | 78 | 93 | 94 | |||||||||
Distribution costs | 168 | 168 | 168 | |||||||||
Selling, general and administrative expenses | 61 | 55 | 46 | |||||||||
Closure costs, impairment and other related charges | 38 | 176 | 51 | |||||||||
Net gain on disposition of assets | 0 | 0 | ||||||||||
Operating income (loss) | (183) | (297) | (109) | |||||||||
Interest expense | 0 | 0 | (4) | |||||||||
Other income (expense), net | 57 | 37 | (20) | |||||||||
Equity in (loss) income of subsidiaries | 24 | 20 | 0 | |||||||||
Income (loss) before income taxes | (102) | (240) | (133) | |||||||||
Income tax benefit (provision) | (11) | 36 | 2 | |||||||||
Net income (loss) including noncontrolling interests | (113) | (204) | (131) | |||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (113) | (204) | (131) | |||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (197) | (169) | (250) | |||||||||
Non-guarantor Subsidiaries [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Sales | 2,166 | 2,223 | 2,807 | |||||||||
Costs and expenses: | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | 1,492 | 1,601 | 2,036 | |||||||||
Depreciation and amortization | 128 | 144 | 149 | |||||||||
Distribution costs | 273 | 293 | 352 | |||||||||
Selling, general and administrative expenses | 68 | 86 | 92 | |||||||||
Closure costs, impairment and other related charges | 24 | 5 | 227 | |||||||||
Net gain on disposition of assets | (2) | (2) | ||||||||||
Operating income (loss) | 183 | 94 | (47) | |||||||||
Interest expense | (10) | (12) | (8) | |||||||||
Other income (expense), net | 2 | 13 | (26) | |||||||||
Equity in (loss) income of subsidiaries | 0 | 0 | 0 | |||||||||
Income (loss) before income taxes | 175 | 95 | (81) | |||||||||
Income tax benefit (provision) | (10) | (34) | 27 | |||||||||
Net income (loss) including noncontrolling interests | 165 | 61 | (54) | |||||||||
Net (income) loss attributable to noncontrolling interests | (5) | (2) | (3) | |||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | 160 | 59 | (57) | |||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | 73 | 155 | (385) | |||||||||
Consolidating Adjustments [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Sales | (1,528) | (1,553) | (2,024) | |||||||||
Costs and expenses: | ||||||||||||
Cost of sales, excluding depreciation, amortization and distribution costs | (1,521) | (1,555) | (2,021) | |||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||
Distribution costs | (1) | (1) | (2) | |||||||||
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) | (6) | 3 | (1) | |||||||||
Interest expense | 52 | 46 | 36 | |||||||||
Other income (expense), net | (52) | (46) | (36) | |||||||||
Equity in (loss) income of subsidiaries | (43) | 143 | 188 | |||||||||
Income (loss) before income taxes | (49) | 146 | 187 | |||||||||
Income tax benefit (provision) | 2 | (1) | 1 | |||||||||
Net income (loss) including noncontrolling interests | (47) | 145 | 188 | |||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to Resolute Forest Products Inc. | (47) | 145 | 188 | |||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ 124 | $ 14 | $ 635 | |||||||||
[1] | As discussed in Note 1, “Organization and Basis of Presentation,” we changed our estimate of the useful lives of certain of our machinery and equipment to reflect a net increase of estimated periods during which these assets will remain in service. The effect of this change in estimate was to (decrease) increase “Depreciation and amortization” by reportable segment for the year ended December 31, 2016, as follows:(In millions)Market PulpTissueWood ProductsNewsprintSpecialtyPapersTotal2016$(18) $— $(12) $23 $(5) $(12) |
Condensed Consolidating Fina117
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 35 | $ 58 | $ 337 | $ 322 |
Accounts receivable, net | 441 | 469 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 570 | 541 | ||
Note, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 35 | 43 | ||
Total current assets | 1,081 | 1,111 | ||
Fixed assets, net | 1,842 | 1,810 | ||
Amortizable intangible assets, net | 70 | 105 | ||
Goodwill | 81 | 59 | ||
Deferred income tax assets | 1,039 | 982 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 164 | 153 | ||
Total assets | 4,277 | 4,220 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 466 | 436 | ||
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 | 467 | 437 | ||
Long-term debt, net of current portion | 761 | 590 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,281 | 1,186 | ||
Deferred income tax liabilities | 2 | 2 | ||
Other liabilities | 55 | 60 | ||
Total liabilities | 2,566 | 2,275 | ||
Total equity | 1,711 | 1,945 | 2,117 | 2,839 |
Total liabilities and equity | 4,277 | 4,220 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
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 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 3,918 | 4,067 | ||
Other assets | 0 | 0 | ||
Total assets | 3,918 | 4,067 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 5 | 5 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 479 | 433 | ||
Note, advance and interest payable to subsidiaries | 373 | 62 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 857 | 500 | ||
Long-term debt, net of current portion | 590 | 589 | ||
Notes payable to subsidiaries | 443 | 710 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 1 | ||
Total liabilities | 1,890 | 1,800 | ||
Total equity | 2,028 | 2,267 | ||
Total liabilities and equity | 3,918 | 4,067 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 2 | 13 | 257 | 165 |
Accounts receivable, net | 283 | 323 | ||
Accounts receivable from affiliates | 479 | 421 | ||
Inventories, net | 259 | 257 | ||
Note, advance and interest receivable from parent | 373 | 62 | ||
Notes and interest receivable from affiliates | 54 | 48 | ||
Other current assets | 16 | 21 | ||
Total current assets | 1,466 | 1,145 | ||
Fixed assets, net | 733 | 629 | ||
Amortizable intangible assets, net | 14 | 46 | ||
Goodwill | 81 | 59 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 443 | 710 | ||
Notes receivable from affiliates | 109 | 105 | ||
Investments in consolidated subsidiaries and affiliates | 2,068 | 2,047 | ||
Other assets | 62 | 48 | ||
Total assets | 4,976 | 4,789 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 222 | 189 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 395 | 260 | ||
Note, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 618 | 450 | ||
Long-term debt, net of current portion | 171 | 1 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 397 | 352 | ||
Deferred income tax liabilities | 1 | 0 | ||
Other liabilities | 24 | 24 | ||
Total liabilities | 1,211 | 827 | ||
Total equity | 3,765 | 3,962 | ||
Total liabilities and equity | 4,976 | 4,789 | ||
Non-guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 33 | 45 | 80 | 157 |
Accounts receivable, net | 158 | 146 | ||
Accounts receivable from affiliates | 395 | 272 | ||
Inventories, net | 323 | 290 | ||
Note, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 19 | 22 | ||
Total current assets | 928 | 775 | ||
Fixed assets, net | 1,109 | 1,181 | ||
Amortizable intangible assets, net | 56 | 59 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 1,036 | 981 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 102 | 105 | ||
Total assets | 3,231 | 3,101 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 239 | 242 | ||
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 | 54 | 48 | ||
Total current liabilities | 293 | 290 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 109 | 105 | ||
Pension and other postretirement benefit obligations | 884 | 834 | ||
Deferred income tax liabilities | 1 | 2 | ||
Other liabilities | 31 | 35 | ||
Total liabilities | 1,318 | 1,266 | ||
Total equity | 1,913 | 1,835 | ||
Total liabilities and equity | 3,231 | 3,101 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (874) | (693) | ||
Inventories, net | (12) | (6) | ||
Note, advance and interest receivable from parent | (373) | (62) | ||
Notes and interest receivable from affiliates | (54) | (48) | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,313) | (809) | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 3 | 1 | ||
Notes receivable from parent | (443) | (710) | ||
Notes receivable from affiliates | (109) | (105) | ||
Investments in consolidated subsidiaries and affiliates | (5,986) | (6,114) | ||
Other assets | 0 | 0 | ||
Total assets | (7,848) | (7,737) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | (874) | (693) | ||
Note, advance and interest payable to subsidiaries | (373) | (62) | ||
Notes and interest payable to affiliates | (54) | (48) | ||
Total current liabilities | (1,301) | (803) | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | (443) | (710) | ||
Notes payable to affiliates | (109) | (105) | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (1,853) | (1,618) | ||
Total equity | (5,995) | (6,119) | ||
Total liabilities and equity | $ (7,848) | $ (7,737) |
Condensed Consolidating Fina118
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | $ 81 | $ 138 | $ 186 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (249) | (185) | (193) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | (159) | 0 |
Acquisition of a sawmill in Senneterre, Quebec | (6) | 0 | 0 |
Monetization of timber notes | 0 | 0 | 22 |
Disposition of assets | 5 | 0 | 10 |
Increase in countervailing duty cash deposits | (23) | (4) | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | (4) | 1 |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates | 0 | 0 | |
Other investing activities, net | 0 | 0 | (1) |
Net cash provided by (used in) investing activities | (273) | (352) | (161) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 125 | 0 | 0 |
Issuance of long-term debt | 46 | 0 | 0 |
Payments of debt | (1) | 0 | (2) |
Payments of financing and credit facility fees | (1) | (3) | (1) |
Purchases of treasury stock | 0 | (59) | 0 |
Dividend to noncontrolling interest | 0 | 0 | (4) |
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | 0 | 0 | |
Net cash provided by (used in) financing activities | 169 | (62) | (7) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (3) | (3) |
Net increase (decrease) in cash and cash equivalents | (23) | (279) | 15 |
Cash and cash equivalents: | |||
Beginning of year | 58 | 337 | 322 |
End of year | 35 | 58 | 337 |
Parent [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 | ||
Acquisition of a sawmill in Senneterre, Quebec | 0 | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 0 | 0 | |
Increase in countervailing duty cash deposits | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates | 0 | 0 | |
Other investing activities, net | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | ||
Issuance of long-term debt | 0 | ||
Payments of debt | 0 | 0 | |
Payments of financing and credit facility fees | 0 | 0 | 0 |
Purchases of treasury stock | (59) | ||
Dividend to noncontrolling interest | 0 | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 59 | ||
Increase (decrease) in notes payable to affiliate | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 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 |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 30 | 151 | 144 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (179) | (101) | (76) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | (159) | ||
Acquisition of a sawmill in Senneterre, Quebec | 0 | ||
Monetization of timber notes | 22 | ||
Disposition of assets | 0 | 4 | |
Increase in countervailing duty cash deposits | (23) | (4) | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | (234) | ||
Advance to parent | (59) | ||
(Increase) decrease in notes receivable from affiliates | (8) | 164 | |
Other investing activities, net | 0 | ||
Net cash provided by (used in) investing activities | (210) | (393) | (50) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 125 | ||
Issuance of long-term debt | 46 | ||
Payments of debt | (1) | (1) | |
Payments of financing and credit facility fees | (1) | (2) | (1) |
Purchases of treasury stock | 0 | ||
Dividend to noncontrolling interest | 0 | ||
Issuance of common stock | 0 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | 0 | 0 | |
Net cash provided by (used in) financing activities | 169 | (2) | (2) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (11) | (244) | 92 |
Cash and cash equivalents: | |||
Beginning of year | 13 | 257 | 165 |
End of year | 2 | 13 | 257 |
Non-guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 51 | (13) | 42 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (70) | (84) | (117) |
Acquisition of Atlas Paper Holdings, Inc., including cash overdraft acquired | 0 | ||
Acquisition of a sawmill in Senneterre, Quebec | (6) | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 5 | 6 | |
Increase in countervailing duty cash deposits | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | (4) | 1 | |
Investment in common stock of subsidiary | 0 | ||
Advance to parent | 0 | ||
(Increase) decrease in notes receivable from affiliates | 0 | 0 | |
Other investing activities, net | (1) | ||
Net cash provided by (used in) investing activities | (71) | (88) | (111) |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | ||
Issuance of long-term debt | 0 | ||
Payments of debt | 0 | (1) | |
Payments of financing and credit facility fees | 0 | (1) | 0 |
Purchases of treasury stock | 0 | ||
Dividend to noncontrolling interest | (4) | ||
Issuance of common stock | 234 | ||
Advance to subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | 8 | (164) | |
Net cash provided by (used in) financing activities | 8 | 69 | (5) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (3) | (3) |
Net increase (decrease) in cash and cash equivalents | (12) | (35) | (77) |
Cash and cash equivalents: | |||
Beginning of year | 45 | 80 | 157 |
End of year | 33 | 45 | 80 |
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 | ||
Acquisition of a sawmill in Senneterre, Quebec | 0 | ||
Monetization of timber notes | 0 | ||
Disposition of assets | 0 | 0 | |
Increase in countervailing duty cash deposits | 0 | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | 0 | |
Investment in common stock of subsidiary | 234 | ||
Advance to parent | 59 | ||
(Increase) decrease in notes receivable from affiliates | 8 | (164) | |
Other investing activities, net | 0 | ||
Net cash provided by (used in) investing activities | 8 | 129 | 0 |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 0 | ||
Issuance of long-term 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 | ||
Issuance of common stock | (234) | ||
Advance to subsidiary | (59) | ||
Increase (decrease) in notes payable to affiliate | (8) | 164 | |
Net cash provided by (used in) financing activities | (8) | (129) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 889 | $ 888 | $ 891 | $ 877 | $ 894 | $ 905 | $ 926 | $ 920 | $ 3,545 | $ 3,645 | $ 4,258 |
Operating income (loss) | (18) | 10 | (18) | 0 | (226) | 6 | 16 | (15) | (26) | (219) | (174) |
Net income (loss) attributable to Resolute Forest Products Inc. | $ (45) | $ 14 | $ (42) | $ (8) | $ (214) | $ (6) | $ (4) | $ (33) | $ (81) | $ (257) | $ (277) |
Basic net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ (0.50) | $ 0.16 | $ (0.47) | $ (0.09) | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (0.90) | $ (2.78) | $ (2.93) |
Diluted net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders | $ (0.50) | $ 0.15 | $ (0.47) | $ (0.09) | $ (2.39) | $ (0.07) | $ (0.04) | $ (0.35) | $ (0.90) | $ (2.78) | $ (2.93) |