Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | |
Trading Symbol | RFP | |
Entity Common Stock, Shares Outstanding | 89,798,406 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 885 | $ 888 | $ 2,615 | $ 2,656 |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 624 | 681 | 1,936 | 2,026 |
Depreciation and amortization | 52 | 51 | 153 | 157 |
Distribution costs | 110 | 109 | 328 | 331 |
Selling, general and administrative expenses | 43 | 37 | 123 | 115 |
Closure costs, impairment and other related charges | 10 | 0 | 82 | 37 |
Net gain on disposition of assets | (2) | 0 | (2) | (2) |
Operating income (loss) | 48 | 10 | (5) | (8) |
Interest expense | (13) | (10) | (36) | (29) |
Other income, net | 6 | 1 | 11 | 14 |
Income (loss) before income taxes | 41 | 1 | (30) | (23) |
Income tax (provision) benefit | (15) | 14 | (63) | (9) |
Net income (loss) including noncontrolling interests | 26 | 15 | (93) | (32) |
Net income attributable to noncontrolling interests | (2) | (1) | (4) | (4) |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 24 | $ 14 | $ (97) | $ (36) |
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.16 | $ (1.07) | $ (0.40) |
Diluted (in dollars per share) | $ 0.26 | $ 0.15 | $ (1.07) | $ (0.40) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||
Basic | 90.5 | 89.9 | 90.4 | 89.8 |
Diluted | 91.6 | 90.4 | 90.4 | 89.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) including noncontrolling interests | $ 26 | $ 15 | $ (93) | $ (32) |
Unamortized prior service credits | ||||
Change in unamortized prior service credits | (5) | (4) | (12) | (12) |
Income tax provision | 0 | 0 | 0 | 0 |
Change in unamortized prior service credits, net of tax | (5) | (4) | (12) | (12) |
Unamortized actuarial losses | ||||
Change in unamortized actuarial losses | (2) | 12 | 25 | 36 |
Income tax provision | (3) | (3) | (8) | (9) |
Change in unamortized actuarial losses, net of tax | (5) | 9 | 17 | 27 |
Foreign currency translation | 1 | (1) | 1 | 0 |
Other comprehensive income (loss), net of tax | (9) | 4 | 6 | 15 |
Comprehensive income (loss) including noncontrolling interests | 17 | 19 | (87) | (17) |
Comprehensive income attributable to noncontrolling interests | (2) | (1) | (4) | (4) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ 15 | $ 18 | $ (91) | $ (21) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 38 | $ 35 |
Accounts receivable, net: | ||
Trade | 377 | 358 |
Other | 72 | 83 |
Inventories, net | 555 | 570 |
Other current assets | 53 | 35 |
Total current assets | 1,095 | 1,081 |
Fixed assets, less accumulated depreciation of $1,568 and $1,415 as of September 30, 2017 and December 31, 2016, respectively | 1,737 | 1,842 |
Amortizable intangible assets, less accumulated amortization of $20 and $16 as of September 30, 2017 and December 31, 2016, respectively | 66 | 70 |
Goodwill | 81 | 81 |
Deferred income tax assets | 1,090 | 1,039 |
Other assets | 163 | 164 |
Total assets | 4,232 | 4,277 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 449 | 466 |
Current portion of long-term debt | 0 | 1 |
Total current liabilities | 449 | 467 |
Long-term debt, net of current portion | 832 | 761 |
Pension and other postretirement benefit obligations | 1,249 | 1,281 |
Deferred income tax liabilities | 9 | 2 |
Other liabilities | 64 | 55 |
Total liabilities | 2,603 | 2,566 |
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 September 30, 2017 and December 31, 2016 | 0 | 0 |
Additional paid-in capital | 3,783 | 3,775 |
Deficit | (1,307) | (1,207) |
Accumulated other comprehensive loss | (749) | (755) |
Treasury stock at cost, 28.0 shares as of September 30, 2017 and December 31, 2016 | (120) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,607 | 1,693 |
Noncontrolling interests | 22 | 18 |
Total equity | 1,629 | 1,711 |
Total liabilities and equity | $ 4,232 | $ 4,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,568 | $ 1,415 |
Accumulated amortization | $ 20 | $ 16 |
Common stock, par value (per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 117.8 | 117.8 |
Common stock, shares outstanding | 89.8 | 89.8 |
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, 2015 | $ 1,945 | $ 0 | $ 3,765 | $ (1,126) | $ (587) | $ (120) | $ 13 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 8 | 8 | |||||
Net income (loss) | (32) | (36) | 4 | ||||
Other comprehensive income (loss), net of tax | 15 | 15 | 0 | ||||
Ending balance at Sep. 30, 2016 | 1,936 | 0 | 3,773 | (1,162) | (572) | (120) | 17 |
Beginning balance at Dec. 31, 2016 | 1,711 | 0 | 3,775 | (1,207) | (755) | (120) | 18 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 8 | 8 | |||||
Net income (loss) | (93) | (97) | 4 | ||||
Cumulative-effect adjustment upon deferred tax charge elimination | (3) | (3) | |||||
Other comprehensive income (loss), net of tax | 6 | 6 | 0 | ||||
Ending balance at Sep. 30, 2017 | $ 1,629 | $ 0 | $ 3,783 | $ (1,307) | $ (749) | $ (120) | $ 22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash flows from operating activities: | |||
Net income (loss) including noncontrolling interests | $ (93) | $ (32) | |
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | |||
Share-based compensation | 8 | 8 | |
Depreciation and amortization | 153 | 157 | |
Closure costs, impairment and other related charges | 68 | 36 | |
Inventory write-downs related to closures | 24 | 5 | |
Deferred income taxes | 60 | 5 | |
Net pension contributions and other postretirement benefit payments | (94) | (102) | |
Net gain on disposition of assets | (2) | (2) | |
Gain on translation of foreign currency denominated deferred income taxes | (80) | (53) | |
Loss on translation of foreign currency denominated pension and other postretirement benefit obligations | 65 | 44 | |
Gain on disposition of equity method investment | [1] | 0 | (5) |
Net planned major maintenance payments | (6) | (6) | |
Changes in working capital: | |||
Accounts receivable | (6) | 21 | |
Inventories | (6) | (27) | |
Other current assets | (8) | (3) | |
Accounts payable and accrued liabilities | 12 | 7 | |
Other, net | 4 | (2) | |
Net cash provided by operating activities | 99 | 51 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (136) | (177) | |
Disposition of assets | 3 | 5 | |
Increase in countervailing duty cash deposits on supercalendered paper | (17) | (17) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (18) | 0 | |
Decrease (increase) in restricted cash | (2) | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 2 | 0 | |
Net cash provided by (used in) investing activities | (168) | (189) | |
Cash flows from financing activities: | |||
Net borrowings under revolving credit facilities | 70 | 90 | |
Issuance of long-term debt | 0 | 46 | |
Payments of debt | (1) | (1) | |
Payments of financing and credit facility fees | 0 | (1) | |
Net cash provided by (used in) financing activities | 69 | 134 | |
Effect of exchange rate changes on cash and cash equivalents | 3 | 1 | |
Net increase (decrease) in cash and cash equivalents | 3 | (3) | |
Cash and cash equivalents: | |||
Beginning of period | 35 | 58 | |
End of period | $ 38 | $ 55 | |
[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. |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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 some 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Financial statements Our interim consolidated financial statements and related notes (“Consolidated Financial Statements”) are unaudited and have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended September 30, 2017 , are not necessarily indicative of the results to be expected for the full year. These unaudited interim Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 , filed with the SEC on March 1, 2017 . Certain prior period amounts in our footnotes have been reclassified to conform to the 2017 presentation. New accounting pronouncements adopted In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. For additional information, see Note 10, “Income Taxes .” Accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts from Customers,” which provides a framework that replaces existing revenue recognition guidance in GAAP. In March 2016, April 2016, May 2016, and December 2016, the FASB also 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. We plan to adopt these standards on January 1, 2018 using the modified retrospective approach. We are making progress in our assessment of the impact of these standards on our results of operations and financial position. Our current assessment is subject to change as we continue our analysis. Our preliminary findings are as follows: • The majority of our revenue arises from contracts with customers in which the sale of goods is generally expected to be the main performance obligation. Accordingly, we expect to recognize revenue for most of our revenue streams at a point in time when control of the asset is transferred to the customer, generally upon delivery of the goods, consistent with our current practice. However, we continue to review our current contracts with customers for the identification of any additional performance obligations, which could be treated differently and affect our preliminary assessment. • Certain of our contracts with customers provide incentive offerings, including special pricing agreements, and other volume-based incentives. Currently, we recognize revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of provisions for customer incentives. If revenue cannot be reliably measured, revenue recognition is deferred until the uncertainty is resolved. Such contract provisions give rise to variable consideration under ASU 2014-09, and will be required to be estimated at contract inception. ASU 2014-09 requires the estimated variable consideration to be constrained to prevent the over-recognition of revenue. We continue to assess individual contracts to determine the estimated variable consideration and related constraint. • ASU 2014-09 provides presentation and disclosure requirements, which are more detailed than under current GAAP. We are therefore in the process of developing procedures to collect the required information to comply with the additional required financial statement disclosures. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that present a measure of operating income in their statements of earnings to disaggregate and present only the service cost component of net periodic benefit cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic benefit cost are to be reported separately outside any subtotal of operating income. This update is effective retrospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 31, 2016. We plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our results of operations, the effect of which cannot be reasonably estimated due to the inherent uncertainties with respect to the variations in assumptions used to determine the net periodic benefit cost, and could be material. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 2. Closure Costs, Impairment and Other Related Charges Closure costs, impairment and other related charges for the three and nine months ended September 30, 2017 , were comprised of the following: (Unaudited, in millions) Impairment of Assets Accelerated Depreciation Pension and OPEB Plan Curtailments and Other Severance and Other Costs Total Pulp mill in Coosa Pines, Alabama (1) Third quarter $ — $ — $ — $ — $ — First nine months 55 — — — 55 Permanent closures Paper machine in Catawba, South Carolina Third quarter — — 2 — 2 First nine months 5 — 2 4 11 Paper machines in Calhoun, Tennessee Third quarter — 6 — 2 8 First nine months — 6 — 2 8 Paper mill in Mokpo, South Korea Third quarter — — — — — First nine months — — — 7 7 Other Third quarter — — — — — First nine months — — — 1 1 Total Third quarter $ — $ 6 $ 2 $ 2 $ 10 First nine months 60 6 2 14 82 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The 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 three and nine months ended September 30, 2016 , were comprised of the following: (Unaudited, in millions) Accelerated Depreciation Severance and Other Costs Total Permanent closure Paper machine in Augusta, Georgia Third quarter $ — $ — $ — First nine months 32 4 36 Other Third quarter — — — First nine months 1 — 1 Total Third quarter $ — $ — $ — First nine months 33 4 37 |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other (Expense) Income, Net | Note 3. Other Income, Net Other income, net for the three and nine months ended September 30, 2017 and 2016 , was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Foreign exchange gain $ 7 $ — $ 10 $ 3 Gain on disposition of equity method investment (1) — — — 5 Miscellaneous (expense) income (1 ) 1 1 6 $ 6 $ 1 $ 11 $ 14 (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 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 4. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the nine months ended September 30, 2017 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) Other comprehensive (loss) income before reclassifications — (15 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive loss (1) (12 ) 32 — 20 Net current period other comprehensive (loss) income (12 ) 17 1 6 Balance as of September 30, 2017 $ 55 $ (802 ) $ (2 ) $ (749 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2017 , were comprised of the following: (Unaudited, in millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (11 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment gain (1 ) Closure costs, impairment and other related charges (1) — Income tax (provision) benefit $ (12 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 38 Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment loss 1 Closure costs, impairment and other related charges (1) Settlement loss 1 Cost of sales, excluding depreciation, amortization and distribution costs (1) (8 ) Income tax (provision) benefit $ 32 Net of tax Total Reclassifications $ 20 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEB”) plans summarized in Note 9, “Employee Benefit Plans .” |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 5. Net Income (Loss) Per Share The reconciliation of the basic and diluted net income (loss) per share for the three and nine months ended September 30, 2017 and 2016 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2017 2016 2017 2016 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ 14 $ (97 ) $ (36 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 90.4 89.8 Dilutive impact of nonvested stock unit awards 1.1 0.5 — — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.6 90.4 90.4 89.8 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.27 $ 0.16 $ (1.07 ) $ (0.40 ) Diluted $ 0.26 $ 0.15 $ (1.07 ) $ (0.40 ) The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) that were excluded from the calculation of diluted net income (loss) per share, as the impact would have been antidilutive, for the three and nine months ended September 30, 2017 and 2016 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Stock options 1.4 1.5 1.4 1.5 Stock unit awards — — 4.3 2.2 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 6. Inventories, Net Inventories, net as of September 30, 2017 and December 31, 2016 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 111 $ 126 Work in process 36 45 Finished goods 205 183 Mill stores and other supplies 203 216 $ 555 $ 570 During the three months ended September 30, 2017 , we recorded charges for write-downs of mill stores and other supplies of $11 million , primarily related to the permanent closure of two paper machines in Calhoun. During the nine months ended September 30, 2017 , we also recorded charges of $13 million for write-downs of mill stores and other supplies primarily related to the permanent closures of a paper machine at our Catawba paper mill and our Mokpo paper mill. During the nine months ended September 30, 2016 , we recorded charges of $5 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. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 7. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of September 30, 2017 and December 31, 2016 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 325 $ 346 Payroll, bonuses and severance payable 56 51 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 17 Book overdrafts — 13 Income and other taxes payable 9 7 Environmental liabilities 2 5 Other 25 22 $ 449 $ 466 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8. Long-Term Debt Overview Long-term debt, including current portion, as of September 30, 2017 and December 31, 2016 , was comprised of the following: (Unaudited, in millions) September 30, December 31, 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (6 ) Unamortized discount (4 ) (4 ) Total senior notes due 2023 591 590 Term loan due 2025 46 46 Borrowings under revolving credit facilities 195 125 Capital lease obligation — 1 Total debt 832 762 Less: Current portion of long-term debt — (1 ) Long-term debt, net of current portion $ 832 $ 761 2023 Notes We issued $600 million in aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) on May 8, 2013. 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, 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. The fair value of the 2023 Notes was $595 million and $543 million as of September 30, 2017 and December 31, 2016 , 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”), and a revolving credit facility of up to $139 million with a maturity date of September 7, 2022 (“Revolving Credit Facility”). As of September 30, 2017 , we had $33 million of availability under the Revolving Credit Facility, net of $106 million of borrowings. The fair values of the Term Loan and Revolving Credit Facility approximated their carrying values as of September 30, 2017 , as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). We repaid $3 million of borrowings under the Revolving Credit Facility in the first 40 days of the fourth quarter of 2017. ABL Credit Facility On May 22, 2015, we entered into 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. The ABL Credit Facility will mature on May 22, 2020. As of September 30, 2017 , we had $329 million of availability under the ABL Credit Facility, net of $89 million of borrowings and $40 million of ordinary course letters of credit outstanding. The fair value of the ABL Credit Facility approximated its carrying value as of September 30, 2017 , as the variable interest rates reflect current interest rates for financial instruments with similar characteristics and maturities (Level 2). We repaid $27 million of borrowings under the ABL Credit Facility in the first 40 days of the fourth quarter of 2017. 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. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 9. Employee Benefit Plans Pension and OPEB plans The components of net periodic benefit cost relating to our pension and OPEB plans for the three and nine months ended September 30, 2017 and 2016 , were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Service cost $ 6 $ 5 $ 15 $ 15 Interest cost 51 54 149 161 Expected return on plan assets (66 ) (62 ) (190 ) (185 ) Amortization of actuarial losses 14 13 42 40 Amortization of prior service credits — — — (1 ) Net periodic benefit cost before special events 5 10 16 30 Curtailment, settlement and other losses 3 — 4 — $ 8 $ 10 $ 20 $ 30 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Service cost $ — $ 1 $ 1 $ 1 Interest cost 2 2 5 6 Amortization of actuarial gains (1 ) (1 ) (4 ) (4 ) Amortization of prior service credits (4 ) (4 ) (11 ) (11 ) Net periodic benefit cost before special events (3 ) (2 ) (9 ) (8 ) Curtailment gain (1 ) — (1 ) — $ (4 ) $ (2 ) $ (10 ) $ (8 ) Defined contribution plans Our expense for the defined contribution plans totaled $5 million and $6 million for the three months ended September 30, 2017 and 2016, respectively, and $16 million for both the nine months ended September 30, 2017 and 2016. Canadian pension funding On March 31, 2017, we reached an agreement with the province of Ontario with respect to the additional solvency deficit reduction contributions required for past capacity reductions in Ontario, as provided by the terms of the undertakings in connection with the funding relief regulations, stipulating that we are no longer required to make additional contributions for capacity reductions that occurred in Ontario after April 15, 2014. As a result, our requirement to make additional contributions to our material Canadian registered pension plans was reduced by Cdn $16 million for 2017 and Cdn $8 million for 2018. The expiration of the original 2010 undertaking in December 2015 did not eliminate the obligations already incurred under the terms of that undertaking prior to its expiration. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the three and nine months ended September 30, 2017 and 2016 , as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Income (loss) before income taxes $ 41 $ 1 $ (30 ) $ (23 ) Income tax (provision) benefit: Expected income tax (provision) benefit (14 ) — 11 8 Changes resulting from: Valuation allowance (1) (19 ) (20 ) (94 ) (65 ) Enactment of change in foreign tax rate — — (12 ) — Adjustments for unrecognized tax benefits — 37 — 37 Foreign exchange 8 (5 ) 9 (2 ) State income taxes, net of federal income tax benefit 1 2 7 5 Foreign tax rate differences 7 4 15 11 Research and development tax incentives 1 — 1 — Other, net 1 (4 ) — (3 ) $ (15 ) $ 14 $ (63 ) $ (9 ) (1) We recorded a valuation allowance of $19 million and $20 million for the three months ended September 30, 2017 and 2016, respectively, and $94 million and $65 million for the nine months ended September 30, 2017 and 2016, respectively, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. Deferred tax charge On January 1, 2017, we adopted 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. Accordingly, the deferred tax charge recognized in 2015 as a result of a gain on an intercompany asset transfer in connection with an operating company realignment was eliminated, 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 January 1, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. 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 and trade 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 September 30, 2017 , will not have a material adverse effect on our Consolidated Financial Statements. Countervailing and anti-dumping duty investigations on softwood lumber products On November 25, 2016, countervailing and anti-dumping duty petitions were filed with the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“ITC”) by certain U.S. softwood lumber producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing and anti-dumping duty investigations. On April 24, 2017, Commerce announced its preliminary determinations in the countervailing duty investigation, and, as a result, beginning April 28, 2017, we were required to pay cash deposits to the U.S. at a rate of 12.82% for estimated countervailing duties on our imports to the U.S. of softwood lumber products produced at our Canadian sawmills. The preliminary rate remained in effect until August 26, 2017, and we have not been required to pay countervailing duty deposits since then. On November 2, 2017, Commerce announced its final determinations in the countervailing duty investigation, including an estimated countervailing duty rate of 14.7% for our softwood lumber product imports to the U.S. from our Canadian sawmills. We will be required to pay cash deposits to the U.S. at that rate if and when the ITC publishes an affirmative final determination. If as a result of the ITC final determination, Commerce issues an order that we are subject to countervailing duty deposit requirements on any of our softwood lumber product imports to the U.S., then we will be required to resume making cash deposits at the 14.7% rate until Commerce sets a duty rate in a subsequent administrative review. Through September 30, 2017 , our cash deposits totaled $15 million , and based on the 14.7% rate and our current operating parameters, could be as high as $65 million per year. On June 26, 2017, Commerce announced its preliminary determinations in the anti-dumping duty investigation, and, as a result, since June 30, 2017, we have been required to pay cash deposits to the U.S. at a rate of 4.59% for estimated anti-dumping duties on our imports to the U.S. of softwood lumber products produced at our Canadian sawmills. On November 2, 2017, Commerce announced its final determinations in the investigation, including an estimated anti-dumping duty rate of 3.2% for our softwood lumber product imports to the U.S. from our Canadian sawmills. As a result, since November 8, 2017, we have been paying cash deposits for estimated anti-dumping duties at the 3.2% rate. Through September 30, 2017 , our cash deposits totaled $3 million , and based on the 3.2% rate and our current operating parameters, could be as high as $15 million per year. If the ITC does not publish its final determination before the date that is six months from the preliminary determination date, we would not be required to pay anti-dumping duty deposits until the ITC publishes its final determination. If as a result of the ITC final determination, Commerce issues an order that we are subject to anti-dumping duty deposit requirements on any of our softwood lumber product imports to the U.S., then we would be required to resume making cash deposits at the 3.2% rate until Commerce sets a duty rate in a subsequent administrative review. Based on the preliminary 4.59% rate until November 7, 2017, and the 3.2% rate thereafter, and our current operating parameters, cash deposits on our imports of the affected softwood lumber products to the U.S. would be approximately $8 million for the initial six -month period of the anti-dumping duty investigation. In addition, before Commerce issues any countervailing or anti-dumping duty order, the ITC must determine whether any alleged subsidization or dumping threatens injury to the U.S. softwood lumber industry or causes current injury. If the ITC determines that there is a threat of injury or no injury, rather than current injury, then all deposits paid between Commerce’s preliminary determination and the publication of the ITC’s final determination, would be returned. We are not presently able to determine the ultimate resolution of these matters, but we believe it is not probable that we will ultimately be assessed with significant duties on our Canadian-produced softwood lumber products that are exported to the U.S. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statement of Operations for the nine months ended September 30, 2017 , and our cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Countervailing duty investigation on SC paper On February 26, 2015, a countervailing duty petition was filed with Commerce and the ITC by certain U.S. supercalendered (“SC”) paper producers requesting that the U.S. government 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 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% , 17.10% of which was not based on any countervailable subsidy we received, but rather on a punitive application of “adverse facts available.” We are required to continue making cash deposits at the 17.87% rate until Commerce sets a countervailing duty rate in an administrative review. We were selected as a mandatory respondent in the first administrative review, which Commerce commenced on February 13, 2017. Our countervailing duty rate for our SC paper exported to the U.S. market in 2015, if any, will be based on Commerce’s determination in this administrative review as to whether we received countervailable subsidies that benefited our Canadian production of SC paper during the relevant period. Following the initial administrative review, which may not be finalized in 2017, we may remain subject to annual administrative reviews until December 2020, or possibly later, and the duty rate, if any, applicable to our SC paper exported to the U.S. market during periods subsequent to December 31, 2015, will be based on Commerce’s determinations in such future administrative reviews. The decision in each administrative review is subject to appeal. 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. Following Commerce’s rate determination in 2015, we appealed that determination to a bi-national panel under the North American Free Trade Agreement (the “Panel”). On April 13, 2017, the Panel issued its decision, remanding the matter to Commerce and upholding several of Commerce’s determinations, including among others its application of adverse facts available in setting our 17.87% subsidy rate. Notwithstanding the Panel’s decision, Commerce’s prior determination of adverse facts available does not apply in an administrative review. In addition, the Panel’s decision can be challenged by the Canadian government, although not until the conclusion of the remand process. The Canadian government has already filed a separate World Trade Organization challenge to Commerce’s countervailing duty determination in the SC paper investigation, including Commerce’s use of adverse facts available against us. Through September 30, 2017 , our cumulative cash deposits totaled $44 million , and based on our current operating parameters, could be as high as $25 million in 2017. We are not presently able to determine the ultimate resolution of this matter, but we believe it is not probable that we will ultimately be assessed with significant countervailing duties on our Canadian-produced SC paper. Accordingly, no contingent loss was recorded in respect of this petition in our Consolidated Statement of Operations for the nine months ended September 30, 2017 . These cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Jedson Case On March 9, 2017, Jedson Engineering, Inc. and Jedson C.M., Inc. (the “Jedson plaintiffs”) filed a complaint against our subsidiary, Resolute FP US Inc., and other defendants in state court in Tennessee. The complaint alleged breach of contract and violation of Tennessee's Prompt Pay Act for failure to pay for services in connection with the design and construction of our Calhoun tissue project, and sought a recovery of, and enforcement of mechanic’s liens for, approximately $10 million , plus interest and cost of litigation. On April 17, 2017, Resolute filed an answer and counterclaim alleging, among other things, breach of contract and professional negligence by the Jedson plaintiffs and seeking recovery for, among other things, resulting costs on the project. On April 4, 2017, the Jedson plaintiffs also filed a motion for an injunction under the Prompt Pay Act seeking immediate payment of monies claimed and, on April 20, 2017, a motion to abate Resolute FP US Inc.’s counterclaim, both of which we opposed and have not been heard by the court. On August 25, 2017, the Jedson plaintiffs amended their complaint. As amended, the complaint includes allegations of fraud, intentional and negligent misrepresentation, unjust enrichment, and a claim for punitive damages in an amount of up to approximately $20 million . The Company disputes the Jedson plaintiffs’ allegations, and intends to vigorously defend the action. The lawsuit is at a preliminary stage. 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. Modification of U.S. OPEB plan 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 (“District Court”) on behalf of certain Medicare-eligible retirees who were previously unionized employees of our Calhoun, Catawba, and Coosa Pines mills, and their spouses and dependents (the “proposed class”). 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. On May 23, 2016, the Company filed a motion to dismiss the complaint. The motion to dismiss was denied by the District Court on March 1, 2017. On June 28, 2017, a settlement agreement in principle was reached between the parties to the lawsuit. Because the settlement will resolve the claims of the proposed class, court approval of the settlement will be required. A final settlement order issued by the court would result in an amendment of our U.S. OPEB plan and a corresponding increase to both “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet, with any such increase to be recorded at the date the plan amendment is adopted. We do not expect that the resulting increase would have a material impact on our Consolidated Financial Statements. Fibrek acquisition 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 ( $11 million , based on the exchange rate in effect on September 30, 2017 ) for the eventual payment of those claims. The hearing in this matter is expected to begin in 2019. Partial wind-ups of pension plans 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 Companies’ Creditors Arrangement Act (Canada) (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 and Compromise , 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 ( $120 million , based on the exchange rate in effect on September 30, 2017 ), 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 of environmental liabilities as of both September 30, 2017 and December 31, 2016 , 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 $24 million and $23 million of asset retirement obligations as of September 30, 2017 and December 31, 2016 , respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and accrued liabilities” or “Other liabilities” in our Consolidated Balance Sheets. Other matters On October 30, 2014, we received a notice from the Ministry of Natural Resources and Forestry of Ontario (the “MNRF”) directing us to repay a conditional amount of Cdn $23 million ( $18 million , based on the exchange rate in effect on September 30, 2017 ) offered to us in 2007 toward the construction of an electricity-producing turbine, should we fail to restart our Fort Frances, Ontario, pulp and paper mill or otherwise implement an alternative remedy acceptable to the MNRF. Several extensions of the deadline to implement an alternative remedy were granted to us by the MNRF, the last of which extended the remedy date to June 30, 2017. However, as a result of an agreement reached on June 29, 2017, we will not be required to repay this amount. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. 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 income (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, 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 the first quarter of 2017, we changed our presentation of segment operating income to reallocate the amortization of prior service credits component of pension and OPEB costs from the reportable segments to “corporate and other.” Current service costs will continue to be allocated to the reportable segments. This approach is consistent with the indicators management uses internally to evaluate performance, including those used by the chief operating decision maker. Prior period amounts have been reclassified to conform to the 2017 presentation. Information about certain segment data for the three and nine months ended September 30, 2017 and 2016 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Third quarter 2017 $ 227 $ 21 $ 219 $ 199 $ 219 $ 885 $ — $ 885 2016 198 23 168 242 257 888 — 888 First nine months 2017 649 61 593 626 686 2,615 — 2,615 2016 619 70 432 756 779 2,656 — 2,656 Depreciation and amortization Third quarter 2017 $ 8 $ 2 $ 9 $ 16 $ 11 $ 46 $ 6 $ 52 2016 10 2 7 17 11 47 4 51 First nine months 2017 24 4 25 49 34 136 17 153 2016 28 6 23 56 34 147 10 157 Operating income (loss) Third quarter 2017 $ 19 $ (3 ) $ 64 $ (6 ) $ 7 $ 81 $ (33 ) $ 48 2016 4 (5 ) 36 (8 ) (4 ) 23 (13 ) 10 First nine months 2017 42 (4 ) 129 (17 ) 4 154 (159 ) (5 ) 2016 33 (11 ) 52 (17 ) 16 73 (81 ) (8 ) (1) Inter-segment sales of $9 million and $11 million for the three months ended September 30, 2017 and 2016, respectively, and $28 million and $26 million for the nine months ended September 30, 2017 and 2016, respectively, which are transacted at cost, were excluded from market pulp sales. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $4 million f or the three months ended September 30, 2017 and 2016, respectively, and $16 million and $14 million for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 13. 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 Income (Loss) for the three and nine months ended September 30, 2017 and 2016 , the Balance Sheets as of September 30, 2017 and December 31, 2016 , and the Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 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 entries to eliminate the investments in subsidiaries and intercompany balances and transactions. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 716 $ 570 $ (401 ) $ 885 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 669 357 (402 ) 624 Depreciation and amortization — 18 34 — 52 Distribution costs — 39 71 — 110 Selling, general and administrative expenses 4 19 20 — 43 Closure costs, impairment and other related charges — 10 — — 10 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (4 ) (39 ) 90 1 48 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Other income, net — 20 2 (16 ) 6 Equity in income (loss) of subsidiaries 51 (3 ) — (48 ) — Income (loss) before income taxes 24 (25 ) 89 (47 ) 41 Income tax provision — — (15 ) — (15 ) Net income (loss) including noncontrolling interests 24 (25 ) 74 (47 ) 26 Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (25 ) $ 72 $ (47 ) $ 24 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 15 $ (41 ) $ 79 $ (38 ) $ 15 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,131 $ 1,660 $ (1,176 ) $ 2,615 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,028 1,084 (1,176 ) 1,936 Depreciation and amortization — 55 98 — 153 Distribution costs — 119 210 (1 ) 328 Selling, general and administrative expenses 18 53 52 — 123 Closure costs, impairment and other related charges — 74 8 — 82 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (198 ) 210 1 (5 ) Interest expense (65 ) (7 ) (9 ) 45 (36 ) Other income, net — 53 3 (45 ) 11 Equity in loss of subsidiaries (14 ) (2 ) — 16 — (Loss) income before income taxes (97 ) (154 ) 204 17 (30 ) Income tax provision — (1 ) (62 ) — (63 ) Net (loss) income including noncontrolling interests (97 ) (155 ) 142 17 (93 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (97 ) $ (155 ) $ 138 $ 17 $ (97 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (91 ) $ (173 ) $ 162 $ 11 $ (91 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 722 $ 538 $ (372 ) $ 888 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 684 366 (369 ) 681 Depreciation and amortization — 19 32 — 51 Distribution costs — 43 66 — 109 Selling, general and administrative expenses 5 14 18 — 37 Operating (loss) income (5 ) (38 ) 56 (3 ) 10 Interest expense (20 ) — (3 ) 13 (10 ) Other income, net — 11 3 (13 ) 1 Equity in income of subsidiaries 39 11 — (50 ) — Income (loss) before income taxes 14 (16 ) 56 (53 ) 1 Income tax benefit — — 13 1 14 Net income (loss) including noncontrolling interests 14 (16 ) 69 (52 ) 15 Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 14 $ (16 ) $ 68 $ (52 ) $ 14 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 18 $ (19 ) $ 75 $ (56 ) $ 18 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,193 $ 1,591 $ (1,128 ) $ 2,656 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,067 1,084 (1,125 ) 2,026 Depreciation and amortization — 62 95 — 157 Distribution costs — 126 205 — 331 Selling, general and administrative expenses 15 46 54 — 115 Closure costs, impairment and other related charges — 37 — — 37 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (15 ) (145 ) 155 (3 ) (8 ) Interest expense (59 ) — (9 ) 39 (29 ) Other income, net — 46 7 (39 ) 14 Equity in income (loss) of subsidiaries 38 (11 ) — (27 ) — (Loss) income before income taxes (36 ) (110 ) 153 (30 ) (23 ) Income tax provision — (1 ) (9 ) 1 (9 ) Net (loss) income including noncontrolling interests (36 ) (111 ) 144 (29 ) (32 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (36 ) $ (111 ) $ 140 $ (29 ) $ (36 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (21 ) $ (120 ) $ 164 $ (44 ) $ (21 ) CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 4 $ 34 $ — $ 38 Accounts receivable, net — 301 148 — 449 Accounts receivable from affiliates 1 505 632 (1,138 ) — Inventories, net — 260 306 (11 ) 555 Note, advance and interest receivable from parent — 536 — (536 ) — Notes and interest receivable from affiliates — 47 — (47 ) — Other current assets — 23 30 — 53 Total current assets 1 1,676 1,150 (1,732 ) 1,095 Fixed assets, net — 698 1,039 — 1,737 Amortizable intangible assets, net — 13 53 — 66 Goodwill — 81 — — 81 Deferred income tax assets — — 1,087 3 1,090 Note receivable from parent — 318 — (318 ) — Note receivable from affiliate — 117 — (117 ) — Investments in consolidated subsidiaries and affiliates 3,907 2,066 — (5,973 ) — Other assets — 89 74 — 163 Total assets $ 3,908 $ 5,058 $ 3,403 $ (8,137 ) $ 4,232 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 186 $ 249 $ — $ 449 Accounts payable to affiliates 505 632 1 (1,138 ) — Note, advance and interest payable to subsidiaries 536 — — (536 ) — Notes and interest payable to affiliate — — 47 (47 ) — Total current liabilities 1,055 818 297 (1,721 ) 449 Long-term debt, net of current portion 591 241 — — 832 Note payable to subsidiary 318 — — (318 ) — Note payable to affiliate — — 117 (117 ) — Pension and other postretirement benefit obligations — 381 868 — 1,249 Deferred income tax liabilities — 2 7 — 9 Other liabilities 2 24 38 — 64 Total liabilities 1,966 1,466 1,327 (2,156 ) 2,603 Total equity 1,942 3,592 2,076 (5,981 ) 1,629 Total liabilities and equity $ 3,908 $ 5,058 $ 3,403 $ (8,137 ) $ 4,232 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (Unaudited, 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 STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 69 $ 30 $ — $ 99 Cash flows from investing activities: Cash invested in fixed assets — (106 ) (30 ) — (136 ) Disposition of assets — — 3 — 3 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (18 ) — — (18 ) Increase in restricted cash, net — — (2 ) — (2 ) Decrease in deposit requirements for letters of credit, net — — 2 — 2 Decrease in notes receivable from affiliate — 5 — (5 ) — Net cash used in investing activities — (136 ) (27 ) (5 ) (168 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 70 — — 70 Payments of debt — (1 ) — — (1 ) Decrease in notes payable to affiliate — — (5 ) 5 — Net cash provided by (used in) financing activities — 69 (5 ) 5 69 Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Net increase in cash and cash equivalents — 2 1 — 3 Cash and cash equivalents: Beginning of period — 2 33 — 35 End of period $ — $ 4 $ 34 $ — $ 38 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 21 $ 30 $ — $ 51 Cash flows from investing activities: Cash invested in fixed assets — (126 ) (51 ) — (177 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in notes receivable from affiliate — (4 ) — 4 — Net cash used in investing activities — (147 ) (46 ) 4 (189 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 90 — — 90 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 — — 4 (4 ) — Net cash provided by financing activities — 134 4 (4 ) 134 Effect of exchange rate changes on cash and cash equivalents — — 1 — 1 Net increase (decrease) in cash and cash equivalents — 8 (11 ) — (3 ) Cash and cash equivalents: Beginning of period — 13 45 — 58 End of period $ — $ 21 $ 34 $ — $ 55 |
Organization and Basis of Pre21
Organization and Basis of Presentation New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New accounting pronouncements | New accounting pronouncements adopted In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. For additional information, see Note 10, “Income Taxes .” Accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts from Customers,” which provides a framework that replaces existing revenue recognition guidance in GAAP. In March 2016, April 2016, May 2016, and December 2016, the FASB also 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. We plan to adopt these standards on January 1, 2018 using the modified retrospective approach. We are making progress in our assessment of the impact of these standards on our results of operations and financial position. Our current assessment is subject to change as we continue our analysis. Our preliminary findings are as follows: • The majority of our revenue arises from contracts with customers in which the sale of goods is generally expected to be the main performance obligation. Accordingly, we expect to recognize revenue for most of our revenue streams at a point in time when control of the asset is transferred to the customer, generally upon delivery of the goods, consistent with our current practice. However, we continue to review our current contracts with customers for the identification of any additional performance obligations, which could be treated differently and affect our preliminary assessment. • Certain of our contracts with customers provide incentive offerings, including special pricing agreements, and other volume-based incentives. Currently, we recognize revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of provisions for customer incentives. If revenue cannot be reliably measured, revenue recognition is deferred until the uncertainty is resolved. Such contract provisions give rise to variable consideration under ASU 2014-09, and will be required to be estimated at contract inception. ASU 2014-09 requires the estimated variable consideration to be constrained to prevent the over-recognition of revenue. We continue to assess individual contracts to determine the estimated variable consideration and related constraint. • ASU 2014-09 provides presentation and disclosure requirements, which are more detailed than under current GAAP. We are therefore in the process of developing procedures to collect the required information to comply with the additional required financial statement disclosures. In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires employers that present a measure of operating income in their statements of earnings to disaggregate and present only the service cost component of net periodic benefit cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic benefit cost are to be reported separately outside any subtotal of operating income. This update is effective retrospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 31, 2016. We plan to adopt this ASU on January 1, 2018. The adoption of this accounting guidance will impact the presentation of our results of operations, the effect of which cannot be reasonably estimated due to the inherent uncertainties with respect to the variations in assumptions used to determine the net periodic benefit cost, and could be material. Deferred tax charge On January 1, 2017, we adopted 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. Accordingly, the deferred tax charge recognized in 2015 as a result of a gain on an intercompany asset transfer in connection with an operating company realignment was eliminated, 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 January 1, 2017. |
Closure Costs, Impairment and22
Closure Costs, Impairment and Other Related Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the three and nine months ended September 30, 2017 , were comprised of the following: (Unaudited, in millions) Impairment of Assets Accelerated Depreciation Pension and OPEB Plan Curtailments and Other Severance and Other Costs Total Pulp mill in Coosa Pines, Alabama (1) Third quarter $ — $ — $ — $ — $ — First nine months 55 — — — 55 Permanent closures Paper machine in Catawba, South Carolina Third quarter — — 2 — 2 First nine months 5 — 2 4 11 Paper machines in Calhoun, Tennessee Third quarter — 6 — 2 8 First nine months — 6 — 2 8 Paper mill in Mokpo, South Korea Third quarter — — — — — First nine months — — — 7 7 Other Third quarter — — — — — First nine months — — — 1 1 Total Third quarter $ — $ 6 $ 2 $ 2 $ 10 First nine months 60 6 2 14 82 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The 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 three and nine months ended September 30, 2016 , were comprised of the following: (Unaudited, in millions) Accelerated Depreciation Severance and Other Costs Total Permanent closure Paper machine in Augusta, Georgia Third quarter $ — $ — $ — First nine months 32 4 36 Other Third quarter — — — First nine months 1 — 1 Total Third quarter $ — $ — $ — First nine months 33 4 37 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income, net for the three and nine months ended September 30, 2017 and 2016 , was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Foreign exchange gain $ 7 $ — $ 10 $ 3 Gain on disposition of equity method investment (1) — — — 5 Miscellaneous (expense) income (1 ) 1 1 6 $ 6 $ 1 $ 11 $ 14 (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 . |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2016 $ 67 $ (819 ) $ (3 ) $ (755 ) Other comprehensive (loss) income before reclassifications — (15 ) 1 (14 ) Amounts reclassified from accumulated other comprehensive loss (1) (12 ) 32 — 20 Net current period other comprehensive (loss) income (12 ) 17 1 6 Balance as of September 30, 2017 $ 55 $ (802 ) $ (2 ) $ (749 ) (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 nine months ended September 30, 2017 , were comprised of the following: (Unaudited, in millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (11 ) Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment gain (1 ) Closure costs, impairment and other related charges (1) — Income tax (provision) benefit $ (12 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 38 Cost of sales, excluding depreciation, amortization and distribution costs (1) Curtailment loss 1 Closure costs, impairment and other related charges (1) Settlement loss 1 Cost of sales, excluding depreciation, amortization and distribution costs (1) (8 ) Income tax (provision) benefit $ 32 Net of tax Total Reclassifications $ 20 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEB”) plans summarized in Note 9, “Employee Benefit Plans .” |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The reconciliation of the basic and diluted net income (loss) per share for the three and nine months ended September 30, 2017 and 2016 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2017 2016 2017 2016 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ 14 $ (97 ) $ (36 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 90.5 89.9 90.4 89.8 Dilutive impact of nonvested stock unit awards 1.1 0.5 — — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.6 90.4 90.4 89.8 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.27 $ 0.16 $ (1.07 ) $ (0.40 ) Diluted $ 0.26 $ 0.15 $ (1.07 ) $ (0.40 ) |
Schedule of weighted-average outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs | The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) that were excluded from the calculation of diluted net income (loss) per share, as the impact would have been antidilutive, for the three and nine months ended September 30, 2017 and 2016 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Stock options 1.4 1.5 1.4 1.5 Stock unit awards — — 4.3 2.2 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of September 30, 2017 and December 31, 2016 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 111 $ 126 Work in process 36 45 Finished goods 205 183 Mill stores and other supplies 203 216 $ 555 $ 570 |
Accounts Payable and Accrued 27
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of September 30, 2017 and December 31, 2016 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 325 $ 346 Payroll, bonuses and severance payable 56 51 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 17 Book overdrafts — 13 Income and other taxes payable 9 7 Environmental liabilities 2 5 Other 25 22 $ 449 $ 466 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of September 30, 2017 and December 31, 2016 , was comprised of the following: (Unaudited, in millions) September 30, December 31, 5.875% senior notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (6 ) Unamortized discount (4 ) (4 ) Total senior notes due 2023 591 590 Term loan due 2025 46 46 Borrowings under revolving credit facilities 195 125 Capital lease obligation — 1 Total debt 832 762 Less: Current portion of long-term debt — (1 ) Long-term debt, net of current portion $ 832 $ 761 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost relating to our pension and OPEB plans for the three and nine months ended September 30, 2017 and 2016 , were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Service cost $ 6 $ 5 $ 15 $ 15 Interest cost 51 54 149 161 Expected return on plan assets (66 ) (62 ) (190 ) (185 ) Amortization of actuarial losses 14 13 42 40 Amortization of prior service credits — — — (1 ) Net periodic benefit cost before special events 5 10 16 30 Curtailment, settlement and other losses 3 — 4 — $ 8 $ 10 $ 20 $ 30 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Service cost $ — $ 1 $ 1 $ 1 Interest cost 2 2 5 6 Amortization of actuarial gains (1 ) (1 ) (4 ) (4 ) Amortization of prior service credits (4 ) (4 ) (11 ) (11 ) Net periodic benefit cost before special events (3 ) (2 ) (9 ) (8 ) Curtailment gain (1 ) — (1 ) — $ (4 ) $ (2 ) $ (10 ) $ (8 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the three and nine months ended September 30, 2017 and 2016 , as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2017 2016 2017 2016 Income (loss) before income taxes $ 41 $ 1 $ (30 ) $ (23 ) Income tax (provision) benefit: Expected income tax (provision) benefit (14 ) — 11 8 Changes resulting from: Valuation allowance (1) (19 ) (20 ) (94 ) (65 ) Enactment of change in foreign tax rate — — (12 ) — Adjustments for unrecognized tax benefits — 37 — 37 Foreign exchange 8 (5 ) 9 (2 ) State income taxes, net of federal income tax benefit 1 2 7 5 Foreign tax rate differences 7 4 15 11 Research and development tax incentives 1 — 1 — Other, net 1 (4 ) — (3 ) $ (15 ) $ 14 $ (63 ) $ (9 ) (1) We recorded a valuation allowance of $19 million and $20 million for the three months ended September 30, 2017 and 2016, respectively, and $94 million and $65 million for the nine months ended September 30, 2017 and 2016, respectively, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three and nine months ended September 30, 2017 and 2016 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Third quarter 2017 $ 227 $ 21 $ 219 $ 199 $ 219 $ 885 $ — $ 885 2016 198 23 168 242 257 888 — 888 First nine months 2017 649 61 593 626 686 2,615 — 2,615 2016 619 70 432 756 779 2,656 — 2,656 Depreciation and amortization Third quarter 2017 $ 8 $ 2 $ 9 $ 16 $ 11 $ 46 $ 6 $ 52 2016 10 2 7 17 11 47 4 51 First nine months 2017 24 4 25 49 34 136 17 153 2016 28 6 23 56 34 147 10 157 Operating income (loss) Third quarter 2017 $ 19 $ (3 ) $ 64 $ (6 ) $ 7 $ 81 $ (33 ) $ 48 2016 4 (5 ) 36 (8 ) (4 ) 23 (13 ) 10 First nine months 2017 42 (4 ) 129 (17 ) 4 154 (159 ) (5 ) 2016 33 (11 ) 52 (17 ) 16 73 (81 ) (8 ) (1) Inter-segment sales of $9 million and $11 million for the three months ended September 30, 2017 and 2016, respectively, and $28 million and $26 million for the nine months ended September 30, 2017 and 2016, respectively, which are transacted at cost, were excluded from market pulp sales. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $4 million f or the three months ended September 30, 2017 and 2016, respectively, and $16 million and $14 million for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 716 $ 570 $ (401 ) $ 885 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 669 357 (402 ) 624 Depreciation and amortization — 18 34 — 52 Distribution costs — 39 71 — 110 Selling, general and administrative expenses 4 19 20 — 43 Closure costs, impairment and other related charges — 10 — — 10 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (4 ) (39 ) 90 1 48 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Other income, net — 20 2 (16 ) 6 Equity in income (loss) of subsidiaries 51 (3 ) — (48 ) — Income (loss) before income taxes 24 (25 ) 89 (47 ) 41 Income tax provision — — (15 ) — (15 ) Net income (loss) including noncontrolling interests 24 (25 ) 74 (47 ) 26 Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (25 ) $ 72 $ (47 ) $ 24 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 15 $ (41 ) $ 79 $ (38 ) $ 15 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,131 $ 1,660 $ (1,176 ) $ 2,615 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,028 1,084 (1,176 ) 1,936 Depreciation and amortization — 55 98 — 153 Distribution costs — 119 210 (1 ) 328 Selling, general and administrative expenses 18 53 52 — 123 Closure costs, impairment and other related charges — 74 8 — 82 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (198 ) 210 1 (5 ) Interest expense (65 ) (7 ) (9 ) 45 (36 ) Other income, net — 53 3 (45 ) 11 Equity in loss of subsidiaries (14 ) (2 ) — 16 — (Loss) income before income taxes (97 ) (154 ) 204 17 (30 ) Income tax provision — (1 ) (62 ) — (63 ) Net (loss) income including noncontrolling interests (97 ) (155 ) 142 17 (93 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (97 ) $ (155 ) $ 138 $ 17 $ (97 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (91 ) $ (173 ) $ 162 $ 11 $ (91 ) CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 722 $ 538 $ (372 ) $ 888 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 684 366 (369 ) 681 Depreciation and amortization — 19 32 — 51 Distribution costs — 43 66 — 109 Selling, general and administrative expenses 5 14 18 — 37 Operating (loss) income (5 ) (38 ) 56 (3 ) 10 Interest expense (20 ) — (3 ) 13 (10 ) Other income, net — 11 3 (13 ) 1 Equity in income of subsidiaries 39 11 — (50 ) — Income (loss) before income taxes 14 (16 ) 56 (53 ) 1 Income tax benefit — — 13 1 14 Net income (loss) including noncontrolling interests 14 (16 ) 69 (52 ) 15 Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 14 $ (16 ) $ 68 $ (52 ) $ 14 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 18 $ (19 ) $ 75 $ (56 ) $ 18 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,193 $ 1,591 $ (1,128 ) $ 2,656 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,067 1,084 (1,125 ) 2,026 Depreciation and amortization — 62 95 — 157 Distribution costs — 126 205 — 331 Selling, general and administrative expenses 15 46 54 — 115 Closure costs, impairment and other related charges — 37 — — 37 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (15 ) (145 ) 155 (3 ) (8 ) Interest expense (59 ) — (9 ) 39 (29 ) Other income, net — 46 7 (39 ) 14 Equity in income (loss) of subsidiaries 38 (11 ) — (27 ) — (Loss) income before income taxes (36 ) (110 ) 153 (30 ) (23 ) Income tax provision — (1 ) (9 ) 1 (9 ) Net (loss) income including noncontrolling interests (36 ) (111 ) 144 (29 ) (32 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (36 ) $ (111 ) $ 140 $ (29 ) $ (36 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (21 ) $ (120 ) $ 164 $ (44 ) $ (21 ) |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 4 $ 34 $ — $ 38 Accounts receivable, net — 301 148 — 449 Accounts receivable from affiliates 1 505 632 (1,138 ) — Inventories, net — 260 306 (11 ) 555 Note, advance and interest receivable from parent — 536 — (536 ) — Notes and interest receivable from affiliates — 47 — (47 ) — Other current assets — 23 30 — 53 Total current assets 1 1,676 1,150 (1,732 ) 1,095 Fixed assets, net — 698 1,039 — 1,737 Amortizable intangible assets, net — 13 53 — 66 Goodwill — 81 — — 81 Deferred income tax assets — — 1,087 3 1,090 Note receivable from parent — 318 — (318 ) — Note receivable from affiliate — 117 — (117 ) — Investments in consolidated subsidiaries and affiliates 3,907 2,066 — (5,973 ) — Other assets — 89 74 — 163 Total assets $ 3,908 $ 5,058 $ 3,403 $ (8,137 ) $ 4,232 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 186 $ 249 $ — $ 449 Accounts payable to affiliates 505 632 1 (1,138 ) — Note, advance and interest payable to subsidiaries 536 — — (536 ) — Notes and interest payable to affiliate — — 47 (47 ) — Total current liabilities 1,055 818 297 (1,721 ) 449 Long-term debt, net of current portion 591 241 — — 832 Note payable to subsidiary 318 — — (318 ) — Note payable to affiliate — — 117 (117 ) — Pension and other postretirement benefit obligations — 381 868 — 1,249 Deferred income tax liabilities — 2 7 — 9 Other liabilities 2 24 38 — 64 Total liabilities 1,966 1,466 1,327 (2,156 ) 2,603 Total equity 1,942 3,592 2,076 (5,981 ) 1,629 Total liabilities and equity $ 3,908 $ 5,058 $ 3,403 $ (8,137 ) $ 4,232 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2016 (Unaudited, 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 Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 69 $ 30 $ — $ 99 Cash flows from investing activities: Cash invested in fixed assets — (106 ) (30 ) — (136 ) Disposition of assets — — 3 — 3 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (18 ) — — (18 ) Increase in restricted cash, net — — (2 ) — (2 ) Decrease in deposit requirements for letters of credit, net — — 2 — 2 Decrease in notes receivable from affiliate — 5 — (5 ) — Net cash used in investing activities — (136 ) (27 ) (5 ) (168 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 70 — — 70 Payments of debt — (1 ) — — (1 ) Decrease in notes payable to affiliate — — (5 ) 5 — Net cash provided by (used in) financing activities — 69 (5 ) 5 69 Effect of exchange rate changes on cash and cash equivalents — — 3 — 3 Net increase in cash and cash equivalents — 2 1 — 3 Cash and cash equivalents: Beginning of period — 2 33 — 35 End of period $ — $ 4 $ 34 $ — $ 38 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 21 $ 30 $ — $ 51 Cash flows from investing activities: Cash invested in fixed assets — (126 ) (51 ) — (177 ) Disposition of assets — — 5 — 5 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in notes receivable from affiliate — (4 ) — 4 — Net cash used in investing activities — (147 ) (46 ) 4 (189 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 90 — — 90 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 — — 4 (4 ) — Net cash provided by financing activities — 134 4 (4 ) 134 Effect of exchange rate changes on cash and cash equivalents — — 1 — 1 Net increase (decrease) in cash and cash equivalents — 8 (11 ) — (3 ) Cash and cash equivalents: Beginning of period — 13 45 — 58 End of period $ — $ 21 $ 34 $ — $ 55 |
Organization and Basis of Pre33
Organization and Basis of Presentation - Nature of Operations (Details) | Sep. 30, 2017sitecountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | country | 70 |
Number of manufacturing facilities (approximate) | site | 40 |
Closure Costs, Impairment and34
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | $ 0 | $ 60 | |||
Accelerated depreciation | 6 | $ 0 | 6 | $ 33 | |
Pension and OPEB plan curtailments and other | 2 | 2 | |||
Severance and other costs | 2 | 0 | 14 | 4 | |
Total | 10 | 0 | 82 | 37 | |
Pulp mill in Coosa Pines [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [1] | 0 | 55 | ||
Accelerated depreciation | [1] | 0 | 0 | ||
Pension and OPEB plan curtailments and other | [1] | 0 | 0 | ||
Severance and other costs | [1] | 0 | 0 | ||
Total | [1] | 0 | 55 | ||
Paper machine in Catawba [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 5 | |||
Accelerated depreciation | 0 | 0 | |||
Pension and OPEB plan curtailments and other | 2 | 2 | |||
Severance and other costs | 0 | 4 | |||
Total | 2 | 11 | |||
Paper machines in Calhoun [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 6 | 6 | |||
Pension and OPEB plan curtailments and other | 0 | 0 | |||
Severance and other costs | 2 | 2 | |||
Total | 8 | 8 | |||
Paper mill in Mokpo [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 0 | 0 | |||
Pension and OPEB plan curtailments and other | 0 | 0 | |||
Severance and other costs | 0 | 7 | |||
Total | 0 | 7 | |||
Paper machine in Augusta [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Accelerated depreciation | 0 | 32 | |||
Severance and other costs | 0 | 4 | |||
Total | 0 | 36 | |||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 0 | 0 | 0 | 1 | |
Pension and OPEB plan curtailments and other | 0 | 0 | |||
Severance and other costs | 0 | 0 | 1 | 0 | |
Total | $ 0 | $ 0 | $ 1 | $ 1 | |
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Closure Costs, Impairment and35
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of assets | $ 0 | $ 60 | |
Pulp mill in Coosa Pines [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of assets | [1] | $ 0 | $ 55 |
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Other Income and Expenses [Abstract] | |||||
Foreign exchange gain | $ 7 | $ 0 | $ 10 | $ 3 | |
Gain on disposition of equity method investment | [1] | 0 | 0 | 0 | 5 |
Miscellaneous (expense) income | (1) | 1 | 1 | 6 | |
Other income (expense), net | $ 6 | $ 1 | $ 11 | $ 14 | |
[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 $5 million. |
Other Income (Expense), Net - A
Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Feb. 01, 2016 | ||
Other Income (Expense) [Line Items] | ||||||
Gain on disposition of equity method investment | [1] | $ 0 | $ 0 | $ 0 | $ 5 | |
Produits Forestiers Petit-Paris Inc. [Member] | ||||||
Other Income (Expense) [Line Items] | ||||||
Proceeds from sale of equity method investment | 5 | |||||
Ownership percentage of equity method investment | 50.00% | |||||
Gain on disposition of equity method investment | $ 5 | |||||
[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 $5 million. |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (755) | ||||
Other comprehensive (loss) income before reclassifications | (14) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 20 | |||
Other comprehensive income (loss), net of tax | $ (9) | $ 4 | 6 | $ 15 | |
Ending balance | (749) | (749) | |||
Unamortized Prior Service Credits [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 67 | ||||
Other comprehensive (loss) income before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (12) | |||
Other comprehensive income (loss), net of tax | (12) | ||||
Ending balance | 55 | 55 | |||
Unamortized Actuarial Losses [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (819) | ||||
Other comprehensive (loss) income before reclassifications | (15) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 32 | |||
Other comprehensive income (loss), net of tax | 17 | ||||
Ending balance | (802) | (802) | |||
Foreign Currency Translation [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (3) | ||||
Other comprehensive (loss) income before reclassifications | 1 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | |||
Other comprehensive income (loss), net of tax | 1 | ||||
Ending balance | $ (2) | $ (2) | |||
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 624 | $ 681 | $ 1,936 | $ 2,026 | |
Closure costs, impairment and other related charges | 10 | 0 | 82 | 37 | |
Income tax (benefit) provision | 15 | (14) | 63 | 9 | |
Net of tax | $ (24) | $ (14) | 97 | $ 36 | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net of tax | 20 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Prior Service Credits [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | (11) | |||
Closure costs, impairment and other related charges | [1] | (1) | |||
Income tax (benefit) provision | 0 | ||||
Net of tax | (12) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses - Amortization of Actuarial Losses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 38 | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses - Settlement Loss [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | [1] | 1 | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Closure costs, impairment and other related charges | [1] | 1 | |||
Income tax (benefit) provision | (8) | ||||
Net of tax | $ 32 | ||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (“OPEB”) plans summarized in Note 9, “Employee Benefit Plans.” |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 24 | $ 14 | $ (97) | $ (36) |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding | 90.5 | 89.9 | 90.4 | 89.8 |
Dilutive impact of nonvested stock unit awards | 1.1 | 0.5 | 0 | 0 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 91.6 | 90.4 | 90.4 | 89.8 |
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.16 | $ (1.07) | $ (0.40) |
Diluted earnings per share (in dollars per share) | $ 0.26 | $ 0.15 | $ (1.07) | $ (0.40) |
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 | 1.4 | 1.5 |
Stock unit awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 4.3 | 2.2 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 111 | $ 126 |
Work in process | 36 | 45 |
Finished goods | 205 | 183 |
Mill stores and other supplies | 203 | 216 |
Inventories, net | $ 555 | $ 570 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Inventory Disclosure [Abstract] | |||||
Inventory write-downs related to closures | $ 11 | $ 0 | $ 13 | $ 24 | $ 5 |
Number of permanently closed mills | 2 |
Accounts Payable and Accrued 43
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 325 | $ 346 |
Payroll, bonuses and severance payable | 56 | 51 |
Accrued interest | 14 | 5 |
Pension and other postretirement benefit obligations | 18 | 17 |
Book overdrafts | 0 | 13 |
Income and other taxes payable | 9 | 7 |
Environmental liabilities | 2 | 5 |
Other | 25 | 22 |
Accounts payable and accrued liabilities | $ 449 | $ 466 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facilities | $ 195 | $ 125 |
Capital lease obligation | 0 | 1 |
Total debt | 832 | 762 |
Less: Current portion of long-term debt | 0 | (1) |
Long-term debt, net of current portion | 832 | 761 |
Secured Debt [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 46 | 46 |
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 600 | 600 |
Deferred financing costs | (5) | (6) |
Unamortized discount | (4) | (4) |
Net carrying amount | $ 591 | $ 590 |
Long-Term Debt - 2023 Notes (De
Long-Term Debt - 2023 Notes (Details) - Senior Notes [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | May 08, 2013 |
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 600,000,000 | ||
Interest rate of notes | 5.875% | ||
Fair value of senior notes | $ 595,000,000 | $ 543,000,000 | $ 594,000,000 |
Unamortized discount | $ 6,000,000 | ||
Effective interest rate of debt | 6.00% | ||
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 ($) | 1 Months Ended | ||
Nov. 09, 2017 | Sep. 30, 2017 | Sep. 07, 2016 | |
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 185,000,000 | ||
Secured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | 46,000,000 | ||
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility lender commitment amount | $ 139,000,000 | ||
Available credit facility borrowing capacity | $ 33,000,000 | ||
Credit facility borrowings | $ 106,000,000 | ||
Subsequent Event [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of borrowings | $ 3,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) | 1 Months Ended | ||
Nov. 09, 2017 | Sep. 30, 2017 | May 22, 2015 | |
Line of Credit Facility [Line Items] | |||
Credit facility lender commitment amount | $ 600,000,000 | ||
Available credit facility borrowing capacity | $ 329,000,000 | ||
Credit facility borrowings | 89,000,000 | ||
Letters of credit amount outstanding | $ 40,000,000 | ||
Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Repayments of borrowings | $ 27,000,000 |
Long-Term Debt - Capital Lease
Long-Term Debt - Capital Lease Obligation (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Length of warehouse capital lease obligation renewal option | 20 years |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailments, settlements and other | $ 2 | $ 2 | ||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | $ 5 | 15 | $ 15 |
Interest cost | 51 | 54 | 149 | 161 |
Expected return on plan assets | (66) | (62) | (190) | (185) |
Amortization of actuarial (gains) losses | 14 | 13 | 42 | 40 |
Amortization of prior service (credits) costs | 0 | 0 | 0 | (1) |
Net periodic benefit cost before special events | 5 | 10 | 16 | 30 |
Curtailments, settlements and other | 3 | 0 | 4 | 0 |
Net periodic benefit cost | 8 | 10 | 20 | 30 |
OPEB Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 1 | 1 | 1 |
Interest cost | 2 | 2 | 5 | 6 |
Amortization of actuarial (gains) losses | (1) | (1) | (4) | (4) |
Amortization of prior service (credits) costs | (4) | (4) | (11) | (11) |
Net periodic benefit cost before special events | (3) | (2) | (9) | (8) |
Curtailments, settlements and other | (1) | 0 | (1) | 0 |
Net periodic benefit cost | $ (4) | $ (2) | $ (10) | $ (8) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) CAD in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD | Sep. 30, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Expense for the defined contribution plans, total | $ | $ 5 | $ 6 | $ 16 | $ 16 | |
Rfp Canada Inc [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Reduction in additional solvency deficit contributions for past capacity reduction in Ontario for 2017 | CAD 16 | ||||
Reduction in additional solvency deficit contributions for past capacity reduction in Ontario for 2018 | CAD 8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Income Tax Disclosure [Abstract] | |||||
Income (loss) before income taxes | $ 41 | $ 1 | $ (30) | $ (23) | |
Income tax (provision) benefit: | |||||
Expected income tax (provision) benefit | (14) | 0 | 11 | 8 | |
Changes resulting from: | |||||
Valuation allowance | [1] | (19) | (20) | (94) | (65) |
Enactment of change in foreign tax rate | 0 | 0 | (12) | 0 | |
Adjustments for unrecognized tax benefits | 0 | (37) | 0 | (37) | |
Foreign exchange | 8 | (5) | 9 | (2) | |
State income taxes, net of federal income tax benefit | 1 | 2 | 7 | 5 | |
Foreign tax rate differences | 7 | 4 | 15 | 11 | |
Research and development tax incentives | 1 | 0 | 1 | 0 | |
Other, net | 1 | (4) | 0 | (3) | |
Income tax (provision) benefit | $ (15) | $ 14 | $ (63) | $ (9) | |
[1] | We recorded a valuation allowance of $19 million and $20 million for the three months ended September 30, 2017 and 2016, respectively, and $94 million and $65 million for the nine months ended September 30, 2017 and 2016, respectively, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 01, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | |||||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% | |||
Increase (decrease) in valuation allowance | [1] | $ 19 | $ 20 | $ 94 | $ 65 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Other assets | (163) | (163) | $ (164) | ||||
Deferred income tax assets | 1,090 | 1,090 | 1,039 | ||||
Deficit | $ 1,307 | $ 1,307 | $ 1,207 | ||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||
Other assets | $ 35 | ||||||
Deferred income tax assets | 32 | ||||||
Deficit | $ 3 | ||||||
[1] | We recorded a valuation allowance of $19 million and $20 million for the three months ended September 30, 2017 and 2016, respectively, and $94 million and $65 million for the nine months ended September 30, 2017 and 2016, respectively, primarily related to our U.S. operations where we recognize a full valuation allowance against our net deferred income tax assets. |
Commitments and Contingencies (
Commitments and Contingencies (Details) CAD in Millions, $ in Millions | Sep. 30, 2017USD ($)site | Oct. 30, 2014USD ($) | Oct. 30, 2014CAD | Sep. 30, 2017USD ($)site | Sep. 30, 2017CAD | Nov. 02, 2017 | Sep. 30, 2017CADsite | Apr. 28, 2017 | Dec. 31, 2016USD ($) | Oct. 15, 2015 | Aug. 03, 2015 | Jul. 31, 2012 |
Loss Contingencies [Line Items] | ||||||||||||
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 12.82% | |||||||||||
Accumulated countervailing cash deposits made on softwood lumber exports | $ 15 | $ 15 | ||||||||||
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 4.59% | 4.59% | 4.59% | |||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | $ 3 | $ 3 | ||||||||||
Duration of preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 6 months | |||||||||||
Countervailing duty rate on supercalendered paper exports | 17.87% | 17.87% | 17.87% | 17.87% | 2.04% | |||||||
Countervailing duty rate on supercalendered paper exports, portion considered punitive application | 17.10% | |||||||||||
Accumulated countervailing duty cash deposits on supercalendered paper exports | $ 44 | $ 44 | ||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | $ 120 | CAD 150 | ||||||||||
Request of repayment of conditional amount | $ 18 | CAD 23 | ||||||||||
Environmental Remediation Obligations [Abstract] | ||||||||||||
Number of hazardous waste sites for which we may be a 'potentially responsible party' | site | 4 | 4 | 4 | |||||||||
Environmental liabilities | $ 8 | $ 8 | $ 8 | |||||||||
Asset retirement obligations | 24 | 24 | $ 23 | |||||||||
Softwood Lumber Duties Investigations [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Contingent loss recorded | 0 | |||||||||||
Supercalendered Paper Countervailing Duty Investigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Contingent loss recorded | 0 | |||||||||||
Fibrek [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Percentage of outstanding shares acquired | 25.40% | |||||||||||
Amount paid, contingent consideration, business combination | 0 | 0 | ||||||||||
Amount accrued to be contingently distributed | 11 | 11 | CAD 14 | |||||||||
Maximum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Yearly countervailing duty cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 65 | 65 | ||||||||||
Yearly anti-dumping cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 15 | 15 | ||||||||||
Estimated anti-dumping cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market for initial six-month period | $ 8 | |||||||||||
Yearly countervailing duty cash deposits made on supercalendered paper exports | 25 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 14.70% | |||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 3.20% | |||||||||||
Jedson Case Initial [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Complaint damages sought, value | 10 | |||||||||||
Jedson Case Amendment [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Complaint damages sought, value | $ 20 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 885 | $ 888 | $ 2,615 | $ 2,656 | |
Depreciation and amortization | 52 | 51 | 153 | 157 | |
Operating income (loss) | 48 | 10 | (5) | (8) | |
Operating segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [1] | 227 | 198 | 649 | 619 |
Depreciation and amortization | [1] | 8 | 10 | 24 | 28 |
Operating income (loss) | [1] | 19 | 4 | 42 | 33 |
Operating segments [Member] | Tissue [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 21 | 23 | 61 | 70 | |
Depreciation and amortization | 2 | 2 | 4 | 6 | |
Operating income (loss) | (3) | (5) | (4) | (11) | |
Operating segments [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 219 | 168 | 593 | 432 |
Depreciation and amortization | [2] | 9 | 7 | 25 | 23 |
Operating income (loss) | [2] | 64 | 36 | 129 | 52 |
Operating segments [Member] | Newsprint [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 199 | 242 | 626 | 756 | |
Depreciation and amortization | 16 | 17 | 49 | 56 | |
Operating income (loss) | (6) | (8) | (17) | (17) | |
Operating segments [Member] | Specialty Papers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 219 | 257 | 686 | 779 | |
Depreciation and amortization | 11 | 11 | 34 | 34 | |
Operating income (loss) | 7 | (4) | 4 | 16 | |
Operating segments [Member] | Segment Total [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 885 | 888 | 2,615 | 2,656 | |
Depreciation and amortization | 46 | 47 | 136 | 147 | |
Operating income (loss) | 81 | 23 | 154 | 73 | |
Corporate, non-segment [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 6 | 4 | 17 | 10 | |
Operating income (loss) | $ (33) | $ (13) | $ (159) | $ (81) | |
[1] | Inter-segment sales of $9 million and $11 million for the three months ended September 30, 2017 and 2016, respectively, and $28 million and $26 million for the nine months ended September 30, 2017 and 2016, respectively, which are transacted at cost, were excluded from market pulp sales. | ||||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $4 million for the three months ended September 30, 2017 and 2016, respectively, and $16 million and $14 million for the nine months ended September 30, 2017 and 2016, respectively. |
Segment Information - Schedul55
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 885 | $ 888 | $ 2,615 | $ 2,656 | |
Market Pulp [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 9 | 11 | 28 | 26 | |
Market Pulp [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [1] | 227 | 198 | 649 | 619 |
Wood Products [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 219 | 168 | 593 | 432 |
Joint venture sales | $ 6 | $ 4 | $ 16 | $ 14 | |
[1] | Inter-segment sales of $9 million and $11 million for the three months ended September 30, 2017 and 2016, respectively, and $28 million and $26 million for the nine months ended September 30, 2017 and 2016, respectively, which are transacted at cost, were excluded from market pulp sales. | ||||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $4 million for the three months ended September 30, 2017 and 2016, respectively, and $16 million and $14 million for the nine months ended September 30, 2017 and 2016, respectively. |
Condensed Consolidating Finan56
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | $ 885 | $ 888 | $ 2,615 | $ 2,656 |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 624 | 681 | 1,936 | 2,026 |
Depreciation and amortization | 52 | 51 | 153 | 157 |
Distribution costs | 110 | 109 | 328 | 331 |
Selling, general and administrative expenses | 43 | 37 | 123 | 115 |
Closure costs, impairment and other related charges | 10 | 0 | 82 | 37 |
Net gain on disposition of assets | (2) | 0 | (2) | (2) |
Operating income (loss) | 48 | 10 | (5) | (8) |
Interest expense | (13) | (10) | (36) | (29) |
Other income (expense), net | 6 | 1 | 11 | 14 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 41 | 1 | (30) | (23) |
Income tax benefit (provision) | (15) | 14 | (63) | (9) |
Net income (loss) including noncontrolling interests | 26 | 15 | (93) | (32) |
Net (income) loss attributable to noncontrolling interests | (2) | (1) | (4) | (4) |
Net income (loss) attributable to Resolute Forest Products Inc. | 24 | 14 | (97) | (36) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 15 | 18 | (91) | (21) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Distribution costs | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 4 | 5 | 18 | 15 |
Closure costs, impairment and other related charges | 0 | 0 | 0 | |
Net gain on disposition of assets | 0 | 0 | 0 | |
Operating income (loss) | (4) | (5) | (18) | (15) |
Interest expense | (23) | (20) | (65) | (59) |
Other income (expense), net | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | 51 | 39 | (14) | 38 |
Income (loss) before income taxes | 24 | 14 | (97) | (36) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Net income (loss) including noncontrolling interests | 24 | 14 | (97) | (36) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 24 | 14 | (97) | (36) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 15 | 18 | (91) | (21) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 716 | 722 | 2,131 | 2,193 |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 669 | 684 | 2,028 | 2,067 |
Depreciation and amortization | 18 | 19 | 55 | 62 |
Distribution costs | 39 | 43 | 119 | 126 |
Selling, general and administrative expenses | 19 | 14 | 53 | 46 |
Closure costs, impairment and other related charges | 10 | 74 | 37 | |
Net gain on disposition of assets | 0 | 0 | 0 | |
Operating income (loss) | (39) | (38) | (198) | (145) |
Interest expense | (3) | 0 | (7) | 0 |
Other income (expense), net | 20 | 11 | 53 | 46 |
Equity in income (loss) of subsidiaries | (3) | 11 | (2) | (11) |
Income (loss) before income taxes | (25) | (16) | (154) | (110) |
Income tax benefit (provision) | 0 | 0 | (1) | (1) |
Net income (loss) including noncontrolling interests | (25) | (16) | (155) | (111) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (25) | (16) | (155) | (111) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | (41) | (19) | (173) | (120) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 570 | 538 | 1,660 | 1,591 |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 357 | 366 | 1,084 | 1,084 |
Depreciation and amortization | 34 | 32 | 98 | 95 |
Distribution costs | 71 | 66 | 210 | 205 |
Selling, general and administrative expenses | 20 | 18 | 52 | 54 |
Closure costs, impairment and other related charges | 0 | 8 | 0 | |
Net gain on disposition of assets | (2) | (2) | (2) | |
Operating income (loss) | 90 | 56 | 210 | 155 |
Interest expense | (3) | (3) | (9) | (9) |
Other income (expense), net | 2 | 3 | 3 | 7 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 89 | 56 | 204 | 153 |
Income tax benefit (provision) | (15) | 13 | (62) | (9) |
Net income (loss) including noncontrolling interests | 74 | 69 | 142 | 144 |
Net (income) loss attributable to noncontrolling interests | (2) | (1) | (4) | (4) |
Net income (loss) attributable to Resolute Forest Products Inc. | 72 | 68 | 138 | 140 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 79 | 75 | 162 | 164 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | (401) | (372) | (1,176) | (1,128) |
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | (402) | (369) | (1,176) | (1,125) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Distribution costs | 0 | 0 | (1) | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Closure costs, impairment and other related charges | 0 | 0 | 0 | |
Net gain on disposition of assets | 0 | 0 | 0 | |
Operating income (loss) | 1 | (3) | 1 | (3) |
Interest expense | 16 | 13 | 45 | 39 |
Other income (expense), net | (16) | (13) | (45) | (39) |
Equity in income (loss) of subsidiaries | (48) | (50) | 16 | (27) |
Income (loss) before income taxes | (47) | (53) | 17 | (30) |
Income tax benefit (provision) | 0 | 1 | 0 | 1 |
Net income (loss) including noncontrolling interests | (47) | (52) | 17 | (29) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (47) | (52) | 17 | (29) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ (38) | $ (56) | $ 11 | $ (44) |
Condensed Consolidating Finan57
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 38 | $ 35 | $ 55 | $ 58 |
Accounts receivable, net | 449 | 441 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 555 | 570 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 53 | 35 | ||
Total current assets | 1,095 | 1,081 | ||
Fixed assets, net | 1,737 | 1,842 | ||
Amortizable intangible assets, net | 66 | 70 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1,090 | 1,039 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 163 | 164 | ||
Total assets | 4,232 | 4,277 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 449 | 466 | ||
Current portion of long-term debt | 0 | 1 | ||
Accounts payable to affiliates | 0 | 0 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 449 | 467 | ||
Long-term debt, net of current portion | 832 | 761 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,249 | 1,281 | ||
Deferred income tax liabilities | 9 | 2 | ||
Other liabilities | 64 | 55 | ||
Total liabilities | 2,603 | 2,566 | ||
Total equity | 1,629 | 1,711 | 1,936 | 1,945 |
Total liabilities and equity | 4,232 | 4,277 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 1 | 0 | ||
Inventories, net | 0 | 0 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 1 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
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 | 3,907 | 3,918 | ||
Other assets | 0 | 0 | ||
Total assets | 3,908 | 3,918 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 14 | 5 | ||
Current portion of long-term debt | 0 | |||
Accounts payable to affiliates | 505 | 479 | ||
Notes, advance and interest payable to subsidiaries | 536 | 373 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 1,055 | 857 | ||
Long-term debt, net of current portion | 591 | 590 | ||
Notes payable to subsidiaries | 318 | 443 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 2 | 0 | ||
Total liabilities | 1,966 | 1,890 | ||
Total equity | 1,942 | 2,028 | ||
Total liabilities and equity | 3,908 | 3,918 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 4 | 2 | 21 | 13 |
Accounts receivable, net | 301 | 283 | ||
Accounts receivable from affiliates | 505 | 479 | ||
Inventories, net | 260 | 259 | ||
Notes, advance and interest receivable from parent | 536 | 373 | ||
Notes and interest receivable from affiliates | 47 | 54 | ||
Other current assets | 23 | 16 | ||
Total current assets | 1,676 | 1,466 | ||
Fixed assets, net | 698 | 733 | ||
Amortizable intangible assets, net | 13 | 14 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 318 | 443 | ||
Notes receivable from affiliates | 117 | 109 | ||
Investments in consolidated subsidiaries and affiliates | 2,066 | 2,068 | ||
Other assets | 89 | 62 | ||
Total assets | 5,058 | 4,976 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 186 | 222 | ||
Current portion of long-term debt | 1 | |||
Accounts payable to affiliates | 632 | 395 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 818 | 618 | ||
Long-term debt, net of current portion | 241 | 171 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 381 | 397 | ||
Deferred income tax liabilities | 2 | 1 | ||
Other liabilities | 24 | 24 | ||
Total liabilities | 1,466 | 1,211 | ||
Total equity | 3,592 | 3,765 | ||
Total liabilities and equity | 5,058 | 4,976 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 34 | 33 | 34 | 45 |
Accounts receivable, net | 148 | 158 | ||
Accounts receivable from affiliates | 632 | 395 | ||
Inventories, net | 306 | 323 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 30 | 19 | ||
Total current assets | 1,150 | 928 | ||
Fixed assets, net | 1,039 | 1,109 | ||
Amortizable intangible assets, net | 53 | 56 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 1,087 | 1,036 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 74 | 102 | ||
Total assets | 3,403 | 3,231 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 249 | 239 | ||
Current portion of long-term debt | 0 | |||
Accounts payable to affiliates | 1 | 0 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 47 | 54 | ||
Total current liabilities | 297 | 293 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 117 | 109 | ||
Pension and other postretirement benefit obligations | 868 | 884 | ||
Deferred income tax liabilities | 7 | 1 | ||
Other liabilities | 38 | 31 | ||
Total liabilities | 1,327 | 1,318 | ||
Total equity | 2,076 | 1,913 | ||
Total liabilities and equity | 3,403 | 3,231 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (1,138) | (874) | ||
Inventories, net | (11) | (12) | ||
Notes, advance and interest receivable from parent | (536) | (373) | ||
Notes and interest receivable from affiliates | (47) | (54) | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,732) | (1,313) | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 3 | 3 | ||
Notes receivable from parent | (318) | (443) | ||
Notes receivable from affiliates | (117) | (109) | ||
Investments in consolidated subsidiaries and affiliates | (5,973) | (5,986) | ||
Other assets | 0 | 0 | ||
Total assets | (8,137) | (7,848) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Accounts payable to affiliates | (1,138) | (874) | ||
Notes, advance and interest payable to subsidiaries | (536) | (373) | ||
Notes and interest payable to affiliates | (47) | (54) | ||
Total current liabilities | (1,721) | (1,301) | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | (318) | (443) | ||
Notes payable to affiliates | (117) | (109) | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,156) | (1,853) | ||
Total equity | (5,981) | (5,995) | ||
Total liabilities and equity | $ (8,137) | $ (7,848) |
Condensed Consolidating Finan58
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 99 | $ 51 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (136) | (177) |
Disposition of assets | 3 | 5 |
Increase in countervailing duty cash deposits on supercalendered paper | (17) | (17) |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (18) | 0 |
Decrease (increase) in restricted cash | (2) | 0 |
Decrease (increase) in deposit requirements for letters of credit, net | 2 | 0 |
(Increase) decrease in notes receivable from affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | (168) | (189) |
Cash flows from financing activities: | ||
Net borrowings under revolving credit facilities | 70 | 90 |
Issuance of long-term debt | 0 | 46 |
Payments of debt | (1) | (1) |
Payments of financing and credit facility fees | 0 | (1) |
Increase (decrease) in notes payable to affiliates | 0 | 0 |
Net cash provided by (used in) financing activities | 69 | 134 |
Effect of exchange rate changes on cash and cash equivalents | 3 | 1 |
Net increase (decrease) in cash and cash equivalents | 3 | (3) |
Cash and cash equivalents: | ||
Beginning of period | 35 | 58 |
End of period | 38 | 55 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | 0 | 0 |
Disposition of assets | 0 | 0 |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | |
Decrease (increase) in restricted cash | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | |
(Increase) decrease in notes receivable from affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Net borrowings under revolving credit facilities | 0 | 0 |
Issuance of long-term debt | 0 | |
Payments of debt | 0 | 0 |
Payments of financing and credit facility fees | 0 | |
Increase (decrease) in notes payable to affiliates | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents: | ||
Beginning of period | 0 | 0 |
End of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 69 | 21 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (106) | (126) |
Disposition of assets | 0 | 0 |
Increase in countervailing duty cash deposits on supercalendered paper | (17) | (17) |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (18) | |
Decrease (increase) in restricted cash | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | |
(Increase) decrease in notes receivable from affiliates | 5 | (4) |
Net cash provided by (used in) investing activities | (136) | (147) |
Cash flows from financing activities: | ||
Net borrowings under revolving credit facilities | 70 | 90 |
Issuance of long-term debt | 46 | |
Payments of debt | (1) | (1) |
Payments of financing and credit facility fees | (1) | |
Increase (decrease) in notes payable to affiliates | 0 | 0 |
Net cash provided by (used in) financing activities | 69 | 134 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 2 | 8 |
Cash and cash equivalents: | ||
Beginning of period | 2 | 13 |
End of period | 4 | 21 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 30 | 30 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (30) | (51) |
Disposition of assets | 3 | 5 |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | |
Decrease (increase) in restricted cash | (2) | |
Decrease (increase) in deposit requirements for letters of credit, net | 2 | |
(Increase) decrease in notes receivable from affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | (27) | (46) |
Cash flows from financing activities: | ||
Net borrowings under revolving credit facilities | 0 | 0 |
Issuance of long-term debt | 0 | |
Payments of debt | 0 | 0 |
Payments of financing and credit facility fees | 0 | |
Increase (decrease) in notes payable to affiliates | (5) | 4 |
Net cash provided by (used in) financing activities | (5) | 4 |
Effect of exchange rate changes on cash and cash equivalents | 3 | 1 |
Net increase (decrease) in cash and cash equivalents | 1 | (11) |
Cash and cash equivalents: | ||
Beginning of period | 33 | 45 |
End of period | 34 | 34 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | 0 | 0 |
Disposition of assets | 0 | 0 |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | |
Decrease (increase) in restricted cash | 0 | |
Decrease (increase) in deposit requirements for letters of credit, net | 0 | |
(Increase) decrease in notes receivable from affiliates | (5) | 4 |
Net cash provided by (used in) investing activities | (5) | 4 |
Cash flows from financing activities: | ||
Net borrowings under revolving credit facilities | 0 | 0 |
Issuance of long-term debt | 0 | |
Payments of debt | 0 | 0 |
Payments of financing and credit facility fees | 0 | |
Increase (decrease) in notes payable to affiliates | 5 | (4) |
Net cash provided by (used in) financing activities | 5 | (4) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents: | ||
Beginning of period | 0 | 0 |
End of period | $ 0 | $ 0 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |