Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 90,315,674 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Sales | $ 874 | $ 872 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 614 | 671 |
Depreciation and amortization | 53 | 51 |
Distribution costs | 116 | 110 |
Selling, general and administrative expenses | 43 | 42 |
Closure costs, impairment and other related charges | 0 | 7 |
Operating income (loss) | 48 | (9) |
Interest expense | (13) | (11) |
Non-operating pension and OPEB credits (costs) | 13 | 3 |
Other expense, net | (7) | 0 |
Income (loss) before income taxes | 41 | (17) |
Income tax provision | (31) | (29) |
Net income (loss) including noncontrolling interests | 10 | (46) |
Net income attributable to noncontrolling interests | 0 | (1) |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 10 | $ (47) |
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | ||
Basic (in dollars per share) | $ 0.11 | $ (0.52) |
Diluted (in dollars per share) | $ 0.11 | $ (0.52) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||
Basic | 91.2 | 90.2 |
Diluted | 93 | 90.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) including noncontrolling interests | $ 10 | $ (46) |
Unamortized prior service credits | ||
Change in unamortized prior service credits | (4) | (4) |
Income tax provision | 0 | 0 |
Change in unamortized prior service credits, net of tax | (4) | (4) |
Unamortized actuarial losses | ||
Change in unamortized actuarial losses | 9 | 14 |
Income tax provision | (2) | (2) |
Change in unamortized actuarial losses, net of tax | 7 | 12 |
Foreign currency translation | 0 | 1 |
Other comprehensive income (loss), net of tax | 3 | 9 |
Comprehensive income (loss) including noncontrolling interests | 13 | (37) |
Comprehensive income attributable to noncontrolling interests | 0 | (1) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ 13 | $ (38) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 13 | $ 6 |
Accounts receivable, net: | ||
Trade | 384 | 399 |
Other | 77 | 80 |
Inventories, net | 577 | 526 |
Other current assets | 32 | 33 |
Total current assets | 1,083 | 1,044 |
Fixed assets, less accumulated depreciation of $1,666 and $1,614 as of March 31, 2018 and December 31, 2017, respectively | 1,684 | 1,716 |
Amortizable intangible assets, less accumulated amortization of $22 and $21 as of March 31, 2018 and December 31, 2017, respectively | 64 | 65 |
Goodwill | 81 | 81 |
Deferred income tax assets | 1,023 | 1,076 |
Other assets | 187 | 165 |
Total assets | 4,122 | 4,147 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 444 | 420 |
Current portion of long-term debt | 1 | 1 |
Total current liabilities | 445 | 421 |
Long-term debt, net of current portion | 778 | 788 |
Pension and other postretirement benefit obligations | 1,198 | 1,257 |
Deferred income tax liabilities | 19 | 13 |
Other liabilities | 66 | 68 |
Total liabilities | 2,506 | 2,547 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 118.3 shares issued and 90.3 shares outstanding as of March 31, 2018; 118.2 shares issued and 90.2 shares outstanding as of December 31, 2017 | 0 | 0 |
Additional paid-in capital | 3,796 | 3,793 |
Deficit | (1,284) | (1,294) |
Accumulated other comprehensive loss | (777) | (780) |
Treasury stock at cost, 28.0 shares as of March 31, 2018 and December 31, 2017 | (120) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,615 | 1,599 |
Noncontrolling interests | 1 | 1 |
Total equity | 1,616 | 1,600 |
Total liabilities and equity | $ 4,122 | $ 4,147 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,666 | $ 1,614 |
Accumulated amortization | $ 22 | $ 21 |
Common stock, par value (per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 118.3 | 118.2 |
Common stock, shares outstanding | 90.3 | 90.2 |
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, 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 | 3 | 3 | |||||
Net income (loss) | (46) | (47) | 1 | ||||
Cumulative-effect adjustment upon deferred tax charge elimination | (3) | (3) | |||||
Other comprehensive income (loss), net of tax | 9 | 9 | 0 | ||||
Ending balance at Mar. 31, 2017 | 1,674 | 0 | 3,778 | (1,257) | (746) | (120) | 19 |
Beginning balance at Dec. 31, 2017 | 1,600 | 0 | 3,793 | (1,294) | (780) | (120) | 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation costs for equity-classified awards | 3 | 3 | |||||
Net income (loss) | 10 | 10 | |||||
Stock unit awards vested net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 3 | 3 | 0 | ||||
Ending balance at Mar. 31, 2018 | $ 1,616 | $ 0 | $ 3,796 | $ (1,284) | $ (777) | $ (120) | $ 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 100,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) including noncontrolling interests | $ 10 | $ (46) |
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by (used in) operating activities: | ||
Share-based compensation | 3 | 4 |
Depreciation and amortization | 53 | 51 |
(Reversal of) inventory write-downs related to closures | (1) | 4 |
Deferred income taxes | 30 | 28 |
Net pension contributions and other postretirement benefit payments | (35) | (30) |
Loss (gain) on translation of foreign currency denominated deferred income taxes | 27 | (10) |
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | (22) | 9 |
Net planned major maintenance amortization | 6 | 1 |
Changes in working capital: | ||
Accounts receivable | 19 | (11) |
Inventories | (50) | (40) |
Other current assets | (5) | 0 |
Accounts payable and accrued liabilities | 28 | 1 |
Other, net | (1) | 0 |
Net cash provided by (used in) operating activities | 62 | (39) |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (25) | (69) |
Increase in countervailing duty cash deposits on supercalendered paper | (5) | (5) |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (14) | 0 |
Increase in countervailing duty cash deposits on uncoated groundwood paper | (2) | 0 |
Net cash provided by (used in) investing activities | (46) | (74) |
Cash flows from financing activities: | ||
Net (repayments) borrowings under revolving credit facilities | (9) | 118 |
Payments of financing and credit facility fees | (1) | 0 |
Net cash provided by (used in) financing activities | (10) | 118 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 0 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 5 | 5 |
Cash and cash equivalents, and restricted cash: | ||
Beginning of period | 49 | 73 |
End of period | 54 | 78 |
Cash and cash equivalents, and restricted cash at period end: | ||
Cash and cash equivalents | 13 | 39 |
Restricted cash (included in Other current assets and Other assets) | $ 41 | $ 39 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Nature of operations Resolute Forest Products Inc. (with its subsidiaries and affiliates, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 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 (or the “ Consolidated Financial Statements ”) are unaudited and have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or 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 may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended March 31, 2018 , 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, 2017 , filed with the SEC on March 1, 2018 . Certain prior period amounts in our footnotes have been reclassified to conform to the 2018 presentation. New accounting pronouncements adopted ASU 2014-09 “Revenue from Contracts from Customers” Effective January 1, 2018, we adopted Accounting Standards Update (or “ ASU ”) 2014-09, “Revenue from Contracts from Customers,” issued by the Financial Accounting Standards Board (or the “ FASB ”), and the series of related accounting standard updates that followed (collectively, “ Topic 606 ”). We utilized the modified retrospective method, which required the application of Topic 606 to: (i) all new revenue contracts entered into after January 1, 2018; and (ii) all existing revenue contracts as of January 1, 2018. The adoption of Topic 606 had no impact on our revenues, results of operations, or financial position. As a result of the implementation of Topic 606, our revenue recognition policy was updated as follows: Revenue arises from contracts with customers in which the sale of goods is the main performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied, which is when (point in time) or as (over time) control of the promised good or service is transferred to the customer. Revenue is measured at the amount to which we are expected to be entitled in exchange for transferring goods based on consideration specified in the contract with the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that we collect from the customer, are excluded from revenue. When a contract with a customer includes variable consideration such as special pricing agreements and other volume-based incentives, revenue is recognized at the most likely amount based on sales forecasts, for which it is probable that a revenue reversal will not subsequently occur. Revenue is recorded at a point in time when control over the goods transfers to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts with customers. Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills primarily by truck or rail. Pulp and paper products are delivered to our international customers primarily by ship. For sales where control transfers to the customer at the shipping point, revenue is recorded when the product leaves the facility, whereas for sales where control transfers at the destination, revenue is recorded when the product is delivered to the customer’s delivery site. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Distribution costs” in our Consolidated Statements of Operations. Sales of our other products (green power produced from renewable sources, wood chips, and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments” In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. All amendments to the guidance shall be adopted in the same period on a retrospective basis. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not impact the presentation of our cash flows. ASU 2016-18 “Restricted Cash” In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. Prior period amounts have been reclassified to conform to the 2018 presentation. ASU 2017-05 “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact our results of operations, financial position or cash flows. ASU 2017-17 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” 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 pension cost and net periodic other postretirement benefit (or “ OPEB ”) cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic pension cost and net periodic OPEB cost (or “ Non-operating pension and OPEB costs ”) are 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. We adopted this ASU on January 1, 2018. The effect of this ASU on our Consolidated Statements of Operations for the three months ended March 31, 2018, and 2017 was as follows: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (Unaudited, in millions ) Before Accounting Standards Update Effect of Change As Reported As Previously Reported Effect of Change As Adjusted Cost of sales, excluding depreciation, amortization and distribution costs $ 600 $ 14 $ 614 $ 667 $ 4 $ 671 Selling, general and administrative expenses 44 (1 ) 43 43 (1 ) 42 Operating income (loss) 61 (13 ) 48 (6 ) (3 ) (9 ) Non-operating pension and other postretirement benefit credits — 13 13 — 3 3 |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 2. Closure Costs, Impairment and Other Related Charges During the three months ended March 31, 2017, we recorded severance and other costs of $7 million , as a result of the permanent closure of our Mokpo (South Korea), paper mill on March 9, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 3. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2018 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2017 $ 52 $ (826 ) $ (6 ) $ (780 ) Amounts reclassified from accumulated other comprehensive loss (1) (4 ) 7 — 3 Balance as of March 31, 2018 $ 48 $ (819 ) $ (6 ) $ (777 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2018 , 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 $ (4 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (4 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 9 Non-operating pension and other postretirement benefit credits (1) (2 ) Income tax provision $ 7 Net of tax Total Reclassifications $ 3 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 8, “Employee Benefit Plans .” |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 4. Net Income (Loss) Per Share The reconciliation of the basic and diluted net income (loss) per share for the three months ended March 31, 2018 and 2017 , was as follows: Three Months Ended (Unaudited, in millions, except per share amounts) 2018 2017 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 10 $ (47 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.2 90.2 Dilutive impact of nonvested stock unit awards 1.8 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.0 90.2 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.11 $ (0.52 ) Diluted $ 0.11 $ (0.52 ) 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 their impact would have been antidilutive, for the three months ended March 31, 2018 and 2017 , was as follows: Three Months Ended (Unaudited, in millions) 2018 2017 Stock options 1.3 1.4 Stock unit awards — 4.6 |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5. Inventories, Net Inventories, net as of March 31, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) March 31, December 31, Raw materials $ 126 $ 108 Work in process 46 38 Finished goods 193 175 Mill stores and other supplies 212 205 $ 577 $ 526 During the three months ended March 31, 2017 , we recorded charges of $4 million for write-downs of mill stores and other supplies primarily as a result of the permanent closure of our Mokpo paper 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 | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 6. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of March 31, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) March 31, December 31, Trade accounts payable $ 337 $ 306 Payroll, bonuses and severance payable 45 55 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 18 Income and other taxes payable 5 10 Environmental liabilities 2 2 Other 23 24 $ 444 $ 420 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7. Long-Term Debt Overview Long-term debt, including current portion, as of March 31, 2018 and December 31, 2017 , was comprised of the following: (Unaudited, in millions) March 31, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (6 ) (5 ) Unamortized discount (3 ) (3 ) Total senior notes due 2023 591 592 Term loan due 2025 46 46 Borrowings under revolving credit facilities 135 144 Capital lease obligation 7 7 Total debt 779 789 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 778 $ 788 2023 Notes We issued $600 million in aggregate principal amount of 5.875% senior unsecured notes due 2023 (or 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 (Level 1) was $614 million and $622 million as of March 31, 2018 and December 31, 2017 , respectively. Senior Secured Credit Facility On September 7, 2016, we entered into a senior secured credit facility (or 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 (the “ Term Loan ”), and a revolving credit facility of up to $139 million with a maturity date of September 7, 2022 (the “ Revolving Credit Facility ”). As of March 31, 2018 , we had $81 million of availability under the Revolving Credit Facility, net of $58 million of borrowings. The fair values of the Term Loan and Revolving Credit Facility (Level 2) approximated their carrying values as of March 31, 2018 . 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 March 31, 2018 , we had $358 million of availability under the ABL Credit Facility, net of $77 million of borrowings and $41 million of ordinary course letters of credit outstanding. The fair value of the ABL Credit Facility (Level 2) approximated its carrying value as of March 31, 2018 . Capital lease obligation We have a capital lease obligation for a warehouse with a maturity date of December 1, 2027, 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 | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8. Employee Benefit Plans Pension and OPEB plans The components of net periodic benefit cost relating to our pension and OPEB plans for the three months ended March 31, 2018 and 2017 , were as follows: Pension Plans: Three Months Ended (Unaudited, in millions) 2018 2017 Interest cost $ 48 $ 49 Expected return on plan assets (67 ) (63 ) Amortization of actuarial losses 10 14 Amortization of prior service credits (1 ) — Non-operating pension credits (10 ) — Service cost 5 5 $ (5 ) $ 5 OPEB Plans: Three Months Ended (Unaudited, in millions) 2018 2017 Interest cost $ 1 $ 2 Amortization of actuarial gains (1 ) (1 ) Amortization of prior service credits (3 ) (4 ) Non-operating OPEB credits (3 ) (3 ) Service cost — — $ (3 ) $ (3 ) Defined contribution plans Our expense for the defined contribution plans totaled $5 million for both the three months ended March 31, 2018 and 2017. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes Tax Cuts and Jobs Act On December 22, 2017, the Tax Cuts and Jobs Act (or the “ TCJA ”) was enacted into law which, among other changes, reduced the U.S. federal statutory income tax rate from 35% to 21%, and introduced the global intangible low-taxed income (or “ GILTI ”) regime, the base erosion anti-abuse tax, and the foreign-derived intangible income deduction. In the first quarter of 2018, the enactment of the TCJA resulted in a $7 million income tax provision attributable to the GILTI inclusion, which reduced income tax benefits on U.S. losses, with no other material impact on our results of operations. After having evaluated the impact of the TCJA on the reinvestment of foreign earnings, we have maintained the position that such earnings continue to be permanently reinvested. Accordingly, no provision was recorded for undistributed foreign earnings. The impacts of the TCJA on our 2017 financial results remain provisional and unchanged as of March 31, 2018. We have yet to adopt an accounting policy for the treatment of GILTI, and accordingly, no deferred tax amounts have been recorded. The final impact of the TCJA may differ due to, among other things, changes in interpretations, the issuance of additional legislative guidance and clarification, and actions we may take as a result of the TCJA. We will recognize any adjustments to our provisional estimates in the reporting period they are determined, up to a period not to exceed one year from the date of enactment. Effective income tax rate reconciliation The income tax provision attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three months ended March 31, 2018 and 2017 , as a result of the following: Three Months Ended (Unaudited, in millions) 2018 2017 Income (loss) before income taxes $ 41 $ (17 ) Income tax provision: Expected income tax (provision) benefit (9 ) 4 Changes resulting from: U.S. federal tax rate change reconciliation — 2 Valuation allowance (1) (5 ) (26 ) Enactment of change in foreign tax rate — (12 ) Foreign exchange (7 ) (1 ) State income taxes, net of federal income tax benefit 2 2 Foreign tax rate differences (2) (12 ) 3 Other, net — (1 ) $ (31 ) $ (29 ) (1) Relates to our U.S. operations for the three months ended March 31, 2018, and primarily to our U.S. operations for the three months ended March 31, 2017. (2) Includes a $7 million income tax provision attributable to the GILTI inclusion, which reduced the income tax benefits on U.S. losses for the three months ended March 31, 2018. 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. As a result, a cumulative-effect adjustment of $3 million was recorded to “Deficit” in our Consolidated Balance Sheet as of January 1, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Legal matters We become involved in various legal proceedings and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, financial reporting and disclosure obligations, corporate governance, antitrust, First Nations claims, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of March 31, 2018 , will not have a material adverse effect on our Consolidated Financial Statements. Countervailing duty and anti-dumping investigations on uncoated groundwood paper On August 9, 2017, countervailing duty and anti-dumping petitions were filed with the U.S. Department of Commerce (or “ Commerce ”) and the U.S. International Trade Commission (or “ ITC ”) by a U.S. uncoated groundwood (or “ UGW ”) paper producer requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin UGW paper exported to the U.S. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of UGW paper to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations. On January 9, 2018, Commerce announced its preliminary determination in its countervailing duty investigation on Canadian-origin UGW paper exported to the U.S. As a result, since January 16, 2018, we have been required to pay cash deposits to the U.S. Customs and Border Protection agency (or “ U.S. Customs ”) at a rate of 4.42% of the custom’s value for estimated countervailing duties on our U.S. imports of the UGW paper produced at our Canadian mills, with the exception of supercalendered (or “ SC ”) paper, which is subject to distinct countervailing duties, as further discussed below. On March 13, 2018, Commerce announced its preliminary determination in the anti-dumping investigation, whereby it determined that we did not sell Canadian-origin UGW paper exported to the U.S. below market value during the relevant period (from July 1, 2016 to June 30, 2017). As a result, we are not required to pay cash deposits to the U.S. Customs for estimated anti-dumping duties. The preliminary 4.42% rate set in the countervailing duty investigation can remain in effect for up to four months. If the ITC does not issue an affirmative material injury determination before the four -month period lapses, then we would not be required to pay deposits for countervailing duties on the affected UGW paper imports until the ITC makes an affirmative material injury determination. If, as a result of such a determination, Commerce imposes a countervailing duty order subjecting us to a countervailing duty deposit requirement on any of our affected UGW paper U.S. imports, then we would be required to resume making cash deposits at the rate set in the order until Commerce sets a countervailing duty rate in a subsequent administrative review. Through March 31, 2018 , our cash deposits on our imports of the affected UGW paper to the U.S. totaled $2 million , and, based on the 4.42% rate and our current operating parameters, would be approximately $6 million for the initial four -month period, and as high as $20 million per year if the rate were to remain in effect continuously. In addition, if as a result of an affirmative material injury determination by the ITC, Commerce were to impose an anti-dumping duty order subjecting us to an anti-dumping duty deposit requirement on any of our affected UGW paper U.S. imports, we would then be required to make cash deposits at the rate set in the order until Commerce sets an anti-dumping duty rate in a subsequent administrative review. 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, if any, on our Canadian-produced UGW that is exported to the U.S. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statement of Operations for the three months ended March 31, 2018 , and our cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Countervailing duty and anti-dumping investigations on softwood lumber On November 25, 2016, countervailing duty and anti-dumping petitions were filed with Commerce and the 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 exported to the U.S. One of our subsidiaries was identified in the petition as being a Canadian exporting producer of softwood lumber to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations. On April 24, 2017, Commerce announced its preliminary determination in the countervailing duty investigation and, as a result, after April 28, 2017, we were required to pay cash deposits to the U.S. Customs at a rate of 12.82% for estimated countervailing duties on our U.S. imports of softwood lumber produced at our Canadian sawmills. The preliminary rate remained in effect until August 26, 2017. Commerce changed the rate in its final affirmative determination on November 2, 2017, but the new rate did not take effect until December 28, 2017, following the ITC’s final affirmative determination and the publication by Commerce of a countervailing duty order. Since that date, we have been required to resume paying cash deposits to the U.S. Customs at a rate of 14.7% for our softwood lumber U.S. imports from our Canadian sawmills. This rate will continue until Commerce sets a duty rate in an administrative review, or a new rate may be set through a remand determination should a North American Free Trade Agreement (or “ NAFTA ”) binational panel on appeal remand the final determination to Commerce. Through March 31, 2018 , our cash deposits totaled $27 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 determination in the anti-dumping investigation and, as a result, after June 30, 2017, we were required to pay cash deposits to the U.S. Customs at a rate of 4.59% for estimated anti-dumping duties on our U.S. imports of softwood lumber produced at our Canadian sawmills. On November 2, 2017, Commerce announced its final affirmative determination in the anti-dumping investigation and, as a result, since November 8, 2017, we have been required to pay cash deposits to the U.S. Customs, at a rate of 3.2% for our softwood lumber U.S. imports from our Canadian sawmills, the rate that will apply until Commerce sets a duty rate in an administrative review or in a possible remand determination. Through March 31, 2018 , our cash deposits totaled $13 million and, based on the 3.2% rate and our current operating parameters, could be as high as $15 million per year. 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, if any, on our U.S. imports of Canadian-produced softwood lumber. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statement of Operations for the three months ended March 31, 2018 , 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. 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, after August 3, 2015, we were required to pay cash deposits to the U.S. Customs for estimated countervailing duties on our U.S. imports 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 or a new rate is set through a remand determination of a NAFTA binational panel. We were selected as a mandatory respondent in the first administrative review, which Commerce commenced on February 13, 2017. On January 3, 2018, Commerce announced its preliminary results in this administrative review, whereby it determined that we received countervailable subsidies of 1.79% that benefited our Canadian production of SC paper during the relevant period (from August 3, 2015 to December 31, 2015). Our countervailing duty rate for our SC paper exported to the U.S. market in 2015, if any, will be based on Commerce’s final results in this administrative review. Following the initial administrative review, 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 results in such future administrative reviews. The results in each administrative review are 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 would be converted into actual countervailing duties. Following Commerce’s rate determination in October 2015, we appealed that determination to a binational panel under the NAFTA (or 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 to an Extraordinary Challenge Committee, although not before the conclusion of the remand process. The Canadian government’s separate World Trade Organization challenge to Commerce’s countervailing duty determination in the SC paper investigation has produced a decision, however, at the request of the U.S. government, by mutual consent of the Canadian and U.S. governments, the release of the report has been postponed. On March 21, 2018, Verso Corporation, the sole remaining U.S. SC paper petitioner, filed a request with Commerce for a changed circumstances review to revoke the countervailing duty order, retroactive to August 3, 2015, and for Commerce to refund all countervailing duty deposits with interest. On May 8, 2018, Commerce announced the initiation of a changed circumstances review to consider the possible revocation of the countervailing duty order on SC paper from Canada. Commerce may revoke an order in whole or in part if it determines that the producers accounting for substantially all of the production of the domestic like products have expressed a lack of interest in the order. Commerce has determined that changed circumstances sufficient to warrant review exist. Should Commerce grant Verso Corporation’s request in its entirety, we would receive a refund of all outstanding cash deposits made on our U.S. imports of SC paper produced at our Canadian mills, plus interest, and no further cash deposits would be required going forward. In addition, this would result in the termination of the pending administrative reviews. Commerce reported to the NAFTA binational panel that it anticipated completion of the changed circumstances review within 60 days of its initiation. Through March 31, 2018 , our cumulative cash deposits totaled $54 million , and based on our current operating parameters, could be as high as $25 million per year. 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, if any, 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 three months ended March 31, 2018 . 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. (or 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 (Tennessee) 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, we 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 . Effective February 20, 2018, the parties entered into an agreement to submit their disputes to binding private arbitration. On February 23, 2018, the state court issued an order staying the consolidated court proceedings pending completion of the arbitration subject to limited exceptions regarding certain defined procedural matters. The Company disputes the 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 (or the “ District Court ”) on behalf of certain Medicare-eligible retirees who were previously unionized employees of our Calhoun, Catawba (South Carolina), and Coosa Pines (Alabama) mills, and their spouses and dependents (or 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. (or “ 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 March 31, 2018 ) for the eventual payment of those claims. The hearing in this matter is expected to occur 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) (or 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 March 31, 2018 ), would have to be funded if we do not obtain the relief sought. The hearing in this matter is expected to occur in 2018. 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 a hazardous waste site that is being addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as Superfund). We believe we will not be liable for any significant amounts at this site. We have recorded $8 million of environmental liabilities as of both March 31, 2018 and December 31, 2017 , 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 of asset retirement obligations as of both March 31, 2018 and December 31, 2017 , primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Other liabilities” in our Consolidated Balance Sheets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11. Segment Information We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: 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, 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.” Information about certain segment data for the three months ended March 31, 2018 and 2017 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales First three months 2018 $ 257 $ 22 $ 209 $ 198 $ 188 $ 874 $ — $ 874 2017 209 20 177 226 240 872 — 872 Depreciation and amortization First three months 2018 $ 7 $ 1 $ 8 $ 16 $ 12 $ 44 $ 9 $ 53 2017 8 1 9 16 12 46 5 51 Operating income (loss) First three months 2018 $ 33 $ (1 ) $ 53 $ (4 ) $ (7 ) $ 74 $ (26 ) $ 48 2017 7 — 20 (4 ) 4 27 (36 ) (9 ) (1) Inter-segment sales of $10 million and $9 million, which are transacted at cost, were excluded from market pulp sales for the three months ended March 31, 2018 and 2017, respectively. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $8 million and $4 million f or the three months ended March 31, 2018 and 2017, respectively. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 12. Condensed Consolidating Financial Information The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act of 1933, 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 (or the “ Guarantor Subsidiaries ”). The 2023 Notes are not guaranteed by our foreign subsidiaries (or the “ Non-guarantor Subsidiaries ”). The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2018 and 2017 , the Balance Sheets as of March 31, 2018 and December 31, 2017 , and the Statements of Cash Flows for the three months ended March 31, 2018 and 2017 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 March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 809 $ 592 $ (527 ) $ 874 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 771 366 (523 ) 614 Depreciation and amortization — 20 33 — 53 Distribution costs — 39 79 (2 ) 116 Selling, general and administrative expenses 5 17 21 — 43 Operating (loss) income (5 ) (38 ) 93 (2 ) 48 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Non-operating pension and other postretirement benefit credits — 4 9 — 13 Other income (expense), net — 14 (5 ) (16 ) (7 ) Equity in income of subsidiaries 38 21 — (59 ) — Income (loss) before income taxes 10 (2 ) 94 (61 ) 41 Income tax provision — — (32 ) 1 (31 ) Net income (loss) including noncontrolling interests 10 (2 ) 62 (60 ) 10 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 10 $ (2 ) $ 62 $ (60 ) $ 10 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 13 $ (5 ) $ 68 $ (63 ) $ 13 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 709 $ 550 $ (387 ) $ 872 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 678 381 (388 ) 671 Depreciation and amortization — 19 32 — 51 Distribution costs — 41 69 — 110 Selling, general and administrative expenses 9 17 16 — 42 Closure costs, impairment and other related charges — — 7 — 7 Operating (loss) income (9 ) (46 ) 45 1 (9 ) Interest expense (20 ) (1 ) (3 ) 13 (11 ) Non-operating pension and other postretirement benefit credits — 1 2 — 3 Other income, net — 13 — (13 ) — Equity in (loss) income of subsidiaries (18 ) 1 — 17 — (Loss) income before income taxes (47 ) (32 ) 44 18 (17 ) Income tax provision — — (29 ) — (29 ) Net (loss) income including noncontrolling interests (47 ) (32 ) 15 18 (46 ) Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (47 ) $ (32 ) $ 14 $ 18 $ (47 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (38 ) $ (33 ) $ 24 $ 9 $ (38 ) CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 8 $ 5 $ — $ 13 Accounts receivable, net — 315 146 — 461 Accounts receivable from affiliates — 540 745 (1,285 ) — Inventories, net — 246 342 (11 ) 577 Note, advance and interest receivable from parent — 552 — (552 ) — Notes and interest receivable from affiliates — 31 — (31 ) — Other current assets — 9 23 — 32 Total current assets — 1,701 1,261 (1,879 ) 1,083 Fixed assets, net — 677 1,007 — 1,684 Amortizable intangible assets, net — 13 51 — 64 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,019 3 1,023 Note receivable from parent — 330 — (330 ) — Note receivable from affiliate — 113 — (113 ) — Investments in consolidated subsidiaries and affiliates 3,980 2,132 — (6,112 ) — Other assets — 118 69 — 187 Total assets $ 3,980 $ 5,166 $ 3,407 $ (8,431 ) $ 4,122 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 169 $ 261 $ — $ 444 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 540 790 — (1,330 ) — Note, advance and interest payable to subsidiaries 552 — — (552 ) — Notes and interest payable to affiliate — — 31 (31 ) — Total current liabilities 1,106 960 292 (1,913 ) 445 Long-term debt, net of current portion 591 187 — — 778 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 113 (113 ) — Pension and other postretirement benefit obligations — 370 828 — 1,198 Deferred income tax liabilities — — 19 — 19 Other liabilities 3 24 39 — 66 Total liabilities 2,030 1,541 1,291 (2,356 ) 2,506 Total equity 1,950 3,625 2,116 (6,075 ) 1,616 Total liabilities and equity $ 3,980 $ 5,166 $ 3,407 $ (8,431 ) $ 4,122 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3 $ 3 $ — $ 6 Accounts receivable, net — 319 160 — 479 Accounts receivable from affiliates — 535 729 (1,264 ) — Inventories, net — 243 292 (9 ) 526 Note, advance and interest receivable from parent — 538 — (538 ) — Notes and interest receivable from affiliates — 32 — (32 ) — Other current assets — 16 17 — 33 Total current assets — 1,686 1,201 (1,843 ) 1,044 Fixed assets, net — 692 1,024 — 1,716 Amortizable intangible assets, net — 13 52 — 65 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,073 2 1,076 Notes receivable from parent — 330 — (330 ) — Note receivable from affiliate — 116 — (116 ) — Investments in consolidated subsidiaries and affiliates 3,939 2,111 — (6,050 ) — Other assets — 98 67 — 165 Total assets $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 4 $ 171 $ 245 $ — $ 420 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 536 728 — (1,264 ) — Note, advance and interest payable to subsidiaries 538 — — (538 ) — Notes and interest payable to affiliate — — 32 (32 ) — Total current liabilities 1,078 900 277 (1,834 ) 421 Long-term debt, net of current portion 592 196 — — 788 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 116 (116 ) — Pension and other postretirement benefit obligations — 378 879 — 1,257 Deferred income tax liabilities — — 13 — 13 Other liabilities 5 24 39 — 68 Total liabilities 2,005 1,498 1,324 (2,280 ) 2,547 Total equity 1,934 3,630 2,093 (6,057 ) 1,600 Total liabilities and equity $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 44 $ 18 $ — $ 62 Cash flows from investing activities: Cash invested in fixed assets — (8 ) (17 ) — (25 ) Increase in countervailing duty cash deposits on supercalendered paper — (5 ) — — (5 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (14 ) — — (14 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (2 ) — — (2 ) Advance to parent — (1 ) — 1 — Cash used in investing activities — (30 ) (17 ) 1 (46 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (9 ) — — (9 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Net cash used in financing activities — (9 ) — (1 ) (10 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (1 ) — (1 ) Net increase in cash and cash equivalents, and restricted cash — 5 — — 5 Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 8 $ 46 $ — $ 54 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 8 $ 5 $ — $ 13 Restricted cash — — 41 — 41 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash (used in) provided by operating activities $ — $ (47 ) $ 8 $ — $ (39 ) Cash flows from investing activities: Cash invested in fixed assets — (59 ) (10 ) — (69 ) Increase in countervailing duty cash deposits on supercalendered paper — (5 ) — — (5 ) Increase in notes receivable from affiliate — (7 ) — 7 — Cash used in investing activities — (71 ) (10 ) 7 (74 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 118 — — 118 Increase in notes payable to affiliate — — 7 (7 ) — Cash provided by financing activities — 118 7 (7 ) 118 Net increase in cash and cash equivalents, and restricted cash — — 5 — 5 Cash and cash equivalents, and restricted cash: Beginning of period — 2 71 — 73 End of period $ — $ 2 $ 76 $ — $ 78 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 2 $ 37 $ — $ 39 Restricted cash — — 39 — 39 |
Organization and Basis of Pre20
Organization and Basis of Presentation - New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New accounting pronouncements | New accounting pronouncements adopted ASU 2014-09 “Revenue from Contracts from Customers” Effective January 1, 2018, we adopted Accounting Standards Update (or “ ASU ”) 2014-09, “Revenue from Contracts from Customers,” issued by the Financial Accounting Standards Board (or the “ FASB ”), and the series of related accounting standard updates that followed (collectively, “ Topic 606 ”). We utilized the modified retrospective method, which required the application of Topic 606 to: (i) all new revenue contracts entered into after January 1, 2018; and (ii) all existing revenue contracts as of January 1, 2018. The adoption of Topic 606 had no impact on our revenues, results of operations, or financial position. As a result of the implementation of Topic 606, our revenue recognition policy was updated as follows: Revenue arises from contracts with customers in which the sale of goods is the main performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied, which is when (point in time) or as (over time) control of the promised good or service is transferred to the customer. Revenue is measured at the amount to which we are expected to be entitled in exchange for transferring goods based on consideration specified in the contract with the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that we collect from the customer, are excluded from revenue. When a contract with a customer includes variable consideration such as special pricing agreements and other volume-based incentives, revenue is recognized at the most likely amount based on sales forecasts, for which it is probable that a revenue reversal will not subsequently occur. Revenue is recorded at a point in time when control over the goods transfers to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts with customers. Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills primarily by truck or rail. Pulp and paper products are delivered to our international customers primarily by ship. For sales where control transfers to the customer at the shipping point, revenue is recorded when the product leaves the facility, whereas for sales where control transfers at the destination, revenue is recorded when the product is delivered to the customer’s delivery site. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Distribution costs” in our Consolidated Statements of Operations. Sales of our other products (green power produced from renewable sources, wood chips, and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which amends certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not have a material impact on our results of operations, financial position or cash flows. ASU 2016-15 “Classification of Certain Cash Receipts and Cash Payments” In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. All amendments to the guidance shall be adopted in the same period on a retrospective basis. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not impact the presentation of our cash flows. ASU 2016-18 “Restricted Cash” In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. Prior period amounts have been reclassified to conform to the 2018 presentation. ASU 2017-05 “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets,” which clarifies the scope of Subtopic 610-20, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets” and adds guidance for partial sales of nonfinancial assets. This update is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted this ASU on January 1, 2018. The adoption of this accounting guidance did not materially impact our results of operations, financial position or cash flows. ASU 2017-17 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” 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 pension cost and net periodic other postretirement benefit (or “ OPEB ”) cost in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic pension cost and net periodic OPEB cost (or “ Non-operating pension and OPEB costs ”) are 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. We adopted this ASU on January 1, 2018. The effect of this ASU on our Consolidated Statements of Operations for the three months ended March 31, 2018, and 2017 was as follows: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (Unaudited, in millions ) Before Accounting Standards Update Effect of Change As Reported As Previously Reported Effect of Change As Adjusted Cost of sales, excluding depreciation, amortization and distribution costs $ 600 $ 14 $ 614 $ 667 $ 4 $ 671 Selling, general and administrative expenses 44 (1 ) 43 43 (1 ) 42 Operating income (loss) 61 (13 ) 48 (6 ) (3 ) (9 ) Non-operating pension and other postretirement benefit credits — 13 13 — 3 3 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. As a result, a cumulative-effect adjustment of $3 million was recorded to “Deficit” in our Consolidated Balance Sheet as of January 1, 2017. |
Revenue recognition policy | Revenue is recorded at a point in time when control over the goods transfers to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts with customers. Pulp, tissue, paper and wood products are delivered to our customers in the United States and Canada directly from our mills primarily by truck or rail. Pulp and paper products are delivered to our international customers primarily by ship. For sales where control transfers to the customer at the shipping point, revenue is recorded when the product leaves the facility, whereas for sales where control transfers at the destination, revenue is recorded when the product is delivered to the customer’s delivery site. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Distribution costs” in our Consolidated Statements of Operations. Sales of our other products (green power produced from renewable sources, wood chips, and other wood related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Organization and Basis of Pre21
Organization and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of this ASU on our Consolidated Statements of Operations for the three months ended March 31, 2018, and 2017 was as follows: Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 (Unaudited, in millions ) Before Accounting Standards Update Effect of Change As Reported As Previously Reported Effect of Change As Adjusted Cost of sales, excluding depreciation, amortization and distribution costs $ 600 $ 14 $ 614 $ 667 $ 4 $ 671 Selling, general and administrative expenses 44 (1 ) 43 43 (1 ) 42 Operating income (loss) 61 (13 ) 48 (6 ) (3 ) (9 ) Non-operating pension and other postretirement benefit credits — 13 13 — 3 3 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2018 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2017 $ 52 $ (826 ) $ (6 ) $ (780 ) Amounts reclassified from accumulated other comprehensive loss (1) (4 ) 7 — 3 Balance as of March 31, 2018 $ 48 $ (819 ) $ (6 ) $ (777 ) (1) See the table below for details about these reclassifications. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2018 , 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 $ (4 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (4 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 9 Non-operating pension and other postretirement benefit credits (1) (2 ) Income tax provision $ 7 Net of tax Total Reclassifications $ 3 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 8, “Employee Benefit Plans .” |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 and 2017 , was as follows: Three Months Ended (Unaudited, in millions, except per share amounts) 2018 2017 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 10 $ (47 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.2 90.2 Dilutive impact of nonvested stock unit awards 1.8 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.0 90.2 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.11 $ (0.52 ) Diluted $ 0.11 $ (0.52 ) |
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 their impact would have been antidilutive, for the three months ended March 31, 2018 and 2017 , was as follows: Three Months Ended (Unaudited, in millions) 2018 2017 Stock options 1.3 1.4 Stock unit awards — 4.6 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of March 31, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) March 31, December 31, Raw materials $ 126 $ 108 Work in process 46 38 Finished goods 193 175 Mill stores and other supplies 212 205 $ 577 $ 526 |
Accounts Payable and Accrued 25
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of March 31, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) March 31, December 31, Trade accounts payable $ 337 $ 306 Payroll, bonuses and severance payable 45 55 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 18 Income and other taxes payable 5 10 Environmental liabilities 2 2 Other 23 24 $ 444 $ 420 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of March 31, 2018 and December 31, 2017 , was comprised of the following: (Unaudited, in millions) March 31, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (6 ) (5 ) Unamortized discount (3 ) (3 ) Total senior notes due 2023 591 592 Term loan due 2025 46 46 Borrowings under revolving credit facilities 135 144 Capital lease obligation 7 7 Total debt 779 789 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 778 $ 788 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 and 2017 , were as follows: Pension Plans: Three Months Ended (Unaudited, in millions) 2018 2017 Interest cost $ 48 $ 49 Expected return on plan assets (67 ) (63 ) Amortization of actuarial losses 10 14 Amortization of prior service credits (1 ) — Non-operating pension credits (10 ) — Service cost 5 5 $ (5 ) $ 5 OPEB Plans: Three Months Ended (Unaudited, in millions) 2018 2017 Interest cost $ 1 $ 2 Amortization of actuarial gains (1 ) (1 ) Amortization of prior service credits (3 ) (4 ) Non-operating OPEB credits (3 ) (3 ) Service cost — — $ (3 ) $ (3 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax provision attributable to income (loss) before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three months ended March 31, 2018 and 2017 , as a result of the following: Three Months Ended (Unaudited, in millions) 2018 2017 Income (loss) before income taxes $ 41 $ (17 ) Income tax provision: Expected income tax (provision) benefit (9 ) 4 Changes resulting from: U.S. federal tax rate change reconciliation — 2 Valuation allowance (1) (5 ) (26 ) Enactment of change in foreign tax rate — (12 ) Foreign exchange (7 ) (1 ) State income taxes, net of federal income tax benefit 2 2 Foreign tax rate differences (2) (12 ) 3 Other, net — (1 ) $ (31 ) $ (29 ) (1) Relates to our U.S. operations for the three months ended March 31, 2018, and primarily to our U.S. operations for the three months ended March 31, 2017. (2) Includes a $7 million income tax provision attributable to the GILTI inclusion, which reduced the income tax benefits on U.S. losses for the three months ended March 31, 2018. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three months ended March 31, 2018 and 2017 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales First three months 2018 $ 257 $ 22 $ 209 $ 198 $ 188 $ 874 $ — $ 874 2017 209 20 177 226 240 872 — 872 Depreciation and amortization First three months 2018 $ 7 $ 1 $ 8 $ 16 $ 12 $ 44 $ 9 $ 53 2017 8 1 9 16 12 46 5 51 Operating income (loss) First three months 2018 $ 33 $ (1 ) $ 53 $ (4 ) $ (7 ) $ 74 $ (26 ) $ 48 2017 7 — 20 (4 ) 4 27 (36 ) (9 ) (1) Inter-segment sales of $10 million and $9 million, which are transacted at cost, were excluded from market pulp sales for the three months ended March 31, 2018 and 2017, respectively. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $8 million and $4 million f or the three months ended March 31, 2018 and 2017, respectively. |
Condensed Consolidating Finan30
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 809 $ 592 $ (527 ) $ 874 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 771 366 (523 ) 614 Depreciation and amortization — 20 33 — 53 Distribution costs — 39 79 (2 ) 116 Selling, general and administrative expenses 5 17 21 — 43 Operating (loss) income (5 ) (38 ) 93 (2 ) 48 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Non-operating pension and other postretirement benefit credits — 4 9 — 13 Other income (expense), net — 14 (5 ) (16 ) (7 ) Equity in income of subsidiaries 38 21 — (59 ) — Income (loss) before income taxes 10 (2 ) 94 (61 ) 41 Income tax provision — — (32 ) 1 (31 ) Net income (loss) including noncontrolling interests 10 (2 ) 62 (60 ) 10 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 10 $ (2 ) $ 62 $ (60 ) $ 10 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 13 $ (5 ) $ 68 $ (63 ) $ 13 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 709 $ 550 $ (387 ) $ 872 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 678 381 (388 ) 671 Depreciation and amortization — 19 32 — 51 Distribution costs — 41 69 — 110 Selling, general and administrative expenses 9 17 16 — 42 Closure costs, impairment and other related charges — — 7 — 7 Operating (loss) income (9 ) (46 ) 45 1 (9 ) Interest expense (20 ) (1 ) (3 ) 13 (11 ) Non-operating pension and other postretirement benefit credits — 1 2 — 3 Other income, net — 13 — (13 ) — Equity in (loss) income of subsidiaries (18 ) 1 — 17 — (Loss) income before income taxes (47 ) (32 ) 44 18 (17 ) Income tax provision — — (29 ) — (29 ) Net (loss) income including noncontrolling interests (47 ) (32 ) 15 18 (46 ) Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (47 ) $ (32 ) $ 14 $ 18 $ (47 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (38 ) $ (33 ) $ 24 $ 9 $ (38 ) |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 8 $ 5 $ — $ 13 Accounts receivable, net — 315 146 — 461 Accounts receivable from affiliates — 540 745 (1,285 ) — Inventories, net — 246 342 (11 ) 577 Note, advance and interest receivable from parent — 552 — (552 ) — Notes and interest receivable from affiliates — 31 — (31 ) — Other current assets — 9 23 — 32 Total current assets — 1,701 1,261 (1,879 ) 1,083 Fixed assets, net — 677 1,007 — 1,684 Amortizable intangible assets, net — 13 51 — 64 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,019 3 1,023 Note receivable from parent — 330 — (330 ) — Note receivable from affiliate — 113 — (113 ) — Investments in consolidated subsidiaries and affiliates 3,980 2,132 — (6,112 ) — Other assets — 118 69 — 187 Total assets $ 3,980 $ 5,166 $ 3,407 $ (8,431 ) $ 4,122 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 169 $ 261 $ — $ 444 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 540 790 — (1,330 ) — Note, advance and interest payable to subsidiaries 552 — — (552 ) — Notes and interest payable to affiliate — — 31 (31 ) — Total current liabilities 1,106 960 292 (1,913 ) 445 Long-term debt, net of current portion 591 187 — — 778 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 113 (113 ) — Pension and other postretirement benefit obligations — 370 828 — 1,198 Deferred income tax liabilities — — 19 — 19 Other liabilities 3 24 39 — 66 Total liabilities 2,030 1,541 1,291 (2,356 ) 2,506 Total equity 1,950 3,625 2,116 (6,075 ) 1,616 Total liabilities and equity $ 3,980 $ 5,166 $ 3,407 $ (8,431 ) $ 4,122 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 3 $ 3 $ — $ 6 Accounts receivable, net — 319 160 — 479 Accounts receivable from affiliates — 535 729 (1,264 ) — Inventories, net — 243 292 (9 ) 526 Note, advance and interest receivable from parent — 538 — (538 ) — Notes and interest receivable from affiliates — 32 — (32 ) — Other current assets — 16 17 — 33 Total current assets — 1,686 1,201 (1,843 ) 1,044 Fixed assets, net — 692 1,024 — 1,716 Amortizable intangible assets, net — 13 52 — 65 Goodwill — 81 — — 81 Deferred income tax assets — 1 1,073 2 1,076 Notes receivable from parent — 330 — (330 ) — Note receivable from affiliate — 116 — (116 ) — Investments in consolidated subsidiaries and affiliates 3,939 2,111 — (6,050 ) — Other assets — 98 67 — 165 Total assets $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 4 $ 171 $ 245 $ — $ 420 Current portion of long-term debt — 1 — — 1 Accounts payable to affiliates 536 728 — (1,264 ) — Note, advance and interest payable to subsidiaries 538 — — (538 ) — Notes and interest payable to affiliate — — 32 (32 ) — Total current liabilities 1,078 900 277 (1,834 ) 421 Long-term debt, net of current portion 592 196 — — 788 Note payable to subsidiary 330 — — (330 ) — Note payable to affiliate — — 116 (116 ) — Pension and other postretirement benefit obligations — 378 879 — 1,257 Deferred income tax liabilities — — 13 — 13 Other liabilities 5 24 39 — 68 Total liabilities 2,005 1,498 1,324 (2,280 ) 2,547 Total equity 1,934 3,630 2,093 (6,057 ) 1,600 Total liabilities and equity $ 3,939 $ 5,128 $ 3,417 $ (8,337 ) $ 4,147 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 44 $ 18 $ — $ 62 Cash flows from investing activities: Cash invested in fixed assets — (8 ) (17 ) — (25 ) Increase in countervailing duty cash deposits on supercalendered paper — (5 ) — — (5 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (14 ) — — (14 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (2 ) — — (2 ) Advance to parent — (1 ) — 1 — Cash used in investing activities — (30 ) (17 ) 1 (46 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (9 ) — — (9 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Net cash used in financing activities — (9 ) — (1 ) (10 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (1 ) — (1 ) Net increase in cash and cash equivalents, and restricted cash — 5 — — 5 Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 8 $ 46 $ — $ 54 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 8 $ 5 $ — $ 13 Restricted cash — — 41 — 41 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash (used in) provided by operating activities $ — $ (47 ) $ 8 $ — $ (39 ) Cash flows from investing activities: Cash invested in fixed assets — (59 ) (10 ) — (69 ) Increase in countervailing duty cash deposits on supercalendered paper — (5 ) — — (5 ) Increase in notes receivable from affiliate — (7 ) — 7 — Cash used in investing activities — (71 ) (10 ) 7 (74 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 118 — — 118 Increase in notes payable to affiliate — — 7 (7 ) — Cash provided by financing activities — 118 7 (7 ) 118 Net increase in cash and cash equivalents, and restricted cash — — 5 — 5 Cash and cash equivalents, and restricted cash: Beginning of period — 2 71 — 73 End of period $ — $ 2 $ 76 $ — $ 78 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 2 $ 37 $ — $ 39 Restricted cash — — 39 — 39 |
Organization and Basis of Pre31
Organization and Basis of Presentation - Nature of Operations (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)sitecountry | Mar. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 614 | $ 671 |
Selling, general and administrative expenses | 43 | 42 |
Operating income (loss) | 48 | (9) |
Non-operating pension and OPEB credits (costs) | $ 13 | 3 |
Number of countries products are marketed in (approximate) | country | 70 | |
Number of manufacturing facilities (approximate) | site | 40 | |
Accounting Standards Update 2017-07 [Member] | Before Accounting Standards Update [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 600 | 667 |
Selling, general and administrative expenses | 44 | 43 |
Operating income (loss) | 61 | (6) |
Non-operating pension and OPEB credits (costs) | 0 | 0 |
Accounting Standards Update 2017-07 [Member] | Effect of Change [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 14 | 4 |
Selling, general and administrative expenses | (1) | (1) |
Operating income (loss) | (13) | (3) |
Non-operating pension and OPEB credits (costs) | $ 13 | $ 3 |
Closure Costs, Impairment and32
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | ||
Closure costs, impairment and other related charges | $ 0 | $ 7 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ (780) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | [1] |
Ending balance | (777) | |
Unamortized Prior Service Credits [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 52 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (4) | [1] |
Ending balance | 48 | |
Unamortized Actuarial Losses [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (826) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 7 | [1] |
Ending balance | (819) | |
Foreign Currency Translation [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (6) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | [1] |
Ending balance | $ (6) | |
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Non-operating pension and OPEB (credits) costs | $ (13) | $ (3) | |
Income tax (benefit) provision | 31 | 29 | |
Net of tax | (10) | $ 47 | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net of tax | 3 | ||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Prior Service Credits [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Non-operating pension and OPEB (credits) costs | [1] | (4) | |
Income tax (benefit) provision | 0 | ||
Net of tax | (4) | ||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Non-operating pension and OPEB (credits) costs | [1] | 9 | |
Income tax (benefit) provision | (2) | ||
Net of tax | $ 7 | ||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 8, “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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 10 | $ (47) |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding | 91.2 | 90.2 |
Dilutive impact of nonvested stock unit awards | 1.8 | 0 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 93 | 90.2 |
Basic earnings per share (in dollars per share) | $ 0.11 | $ (0.52) |
Diluted earnings per share (in dollars per share) | $ 0.11 | $ (0.52) |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1.3 | 1.4 |
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 | 4.6 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 126 | $ 108 |
Work in process | 46 | 38 |
Finished goods | 193 | 175 |
Mill stores and other supplies | 212 | 205 |
Inventories, net | $ 577 | $ 526 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | ||
(Reversal of) inventory write-downs related to closures | $ (1) | $ 4 |
Accounts Payable and Accrued 38
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 337 | $ 306 |
Payroll, bonuses and severance payable | 45 | 55 |
Accrued interest | 14 | 5 |
Pension and other postretirement benefit obligations | 18 | 18 |
Income and other taxes payable | 5 | 10 |
Environmental liabilities | 2 | 2 |
Other | 23 | 24 |
Accounts payable and accrued liabilities | $ 444 | $ 420 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facilities | $ 135 | $ 144 |
Capital lease obligation | 7 | 7 |
Total debt | 779 | 789 |
Less: Current portion of long-term debt | (1) | (1) |
Long-term debt, net of current portion | 778 | 788 |
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 | (6) | (5) |
Unamortized discount | (3) | (3) |
Net carrying amount | $ 591 | $ 592 |
Long-Term Debt - 2023 Notes (De
Long-Term Debt - 2023 Notes (Details) - Senior Notes [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | 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 | $ 614,000,000 | $ 622,000,000 | $ 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 ($) | Mar. 31, 2018 | 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 | $ 81,000,000 | |
Credit facility borrowings | $ 58,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) | Mar. 31, 2018 | May 22, 2015 |
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 600,000,000 | |
Available credit facility borrowing capacity | $ 358,000,000 | |
Credit facility borrowings | 77,000,000 | |
Letters of credit amount outstanding | $ 41,000,000 |
Long-Term Debt - Capital Lease
Long-Term Debt - Capital Lease Obligation (Details) | 3 Months Ended |
Mar. 31, 2018 | |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-operating pension and OPEB costs (credits) | $ (13) | $ (3) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 48 | 49 |
Expected return on plan assets | (67) | (63) |
Amortization of actuarial (gains) losses | 10 | 14 |
Amortization of prior service (credits) costs | (1) | 0 |
Non-operating pension and OPEB costs (credits) | (10) | 0 |
Service cost | 5 | 5 |
Net periodic benefit cost | (5) | 5 |
OPEB Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1 | 2 |
Amortization of actuarial (gains) losses | (1) | (1) |
Amortization of prior service (credits) costs | (3) | (4) |
Non-operating pension and OPEB costs (credits) | (3) | (3) |
Service cost | 0 | 0 |
Net periodic benefit cost | $ (3) | $ (3) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Expense for the defined contribution plans, total | $ 5 | $ 5 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 41 | $ (17) | |
Income tax provision: | |||
Expected income tax (provision) benefit | (9) | 4 | |
Changes resulting from: | |||
U.S. federal tax rate change reconciliation | 0 | 2 | |
Valuation allowance | [1] | (5) | (26) |
Enactment of change in foreign tax rate | 0 | (12) | |
Foreign exchange | (7) | (1) | |
State income taxes, net of federal income tax benefit | 2 | 2 | |
Foreign tax rate differences | [2] | (12) | 3 |
Other, net | 0 | (1) | |
Income tax provision | $ (31) | $ (29) | |
[1] | Relates to our U.S. operations for the three months ended March 31, 2018, and primarily to our U.S. operations for the three months ended March 31, 2017. | ||
[2] | Includes a $7 million income tax provision attributable to the GILTI inclusion, which reduced the income tax benefits on U.S. losses for the three months ended March 31, 2018. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision attributable to GILTI | $ 7 | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Deficit | $ 1,284 | $ 1,294 | ||
Accounting Standards Update 2016-16 [Member] | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Deficit | $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, $ in Millions | Jan. 16, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018CAD ($) | Mar. 31, 2018CAD ($) | Jan. 03, 2018 | Dec. 31, 2017USD ($) | Nov. 02, 2017 | Jun. 30, 2017 | Apr. 28, 2017 | Oct. 15, 2015 | Aug. 03, 2015 | Jul. 31, 2012 |
Loss Contingencies [Line Items] | ||||||||||||
Preliminary countervailing duty rate on U.S. imports of uncoated groundwood paper produced at Canadian mills | 4.42% | |||||||||||
Duration of preliminary countervailing duty deposit rate on U.S. imports of Canadian uncoated groundwood | 4 months | |||||||||||
Accumulated countervailing duty cash deposits made on uncoated groundwood paper | $ 2 | |||||||||||
Estimated countervailing duty cash deposits on U.S. imports of Canadian uncoated groundwood paper during initial four-month period | $ 6 | |||||||||||
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 12.82% | |||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market | 14.70% | |||||||||||
Accumulated countervailing cash deposits made on softwood lumber exports | 27 | |||||||||||
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 4.59% | |||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market | 3.20% | |||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | $ 13 | |||||||||||
Countervailing duty rate on supercalendered paper exports | 17.87% | 17.87% | 17.87% | 2.04% | ||||||||
Countervailing duty rate on supercalendered paper exports, portion considered punitive application | 17.10% | |||||||||||
Preliminary determination of countervailable subsidies benefiting the Canadian production of supercalendered paper exported to the U.S. in 2015 | 1.79% | |||||||||||
Accumulated countervailing duty cash deposits on supercalendered paper exports | $ 54 | |||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | 120 | $ 150 | ||||||||||
Environmental Remediation Obligations [Abstract] | ||||||||||||
Environmental liabilities | 8 | $ 8 | ||||||||||
Asset retirement obligations | 24 | $ 24 | ||||||||||
Uncoated Groundwood Paper Duties Investigations [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Contingent loss recorded | 0 | |||||||||||
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 | |||||||||||
Amount accrued to be contingently distributed | 11 | $ 14 | ||||||||||
Maximum [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated yearly countervailing duty cash deposits on U.S. imports of Canadian uncoated groundwood paper | 20 | |||||||||||
Yearly countervailing duty cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 65 | |||||||||||
Yearly anti-dumping cash deposits on imports of certain Canadian softwood lumber imported to the U.S. market | 15 | |||||||||||
Yearly countervailing duty cash deposits made on supercalendered paper exports | 25 | |||||||||||
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 | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 874 | $ 872 | |
Depreciation and amortization | 53 | 51 | |
Operating income (loss) | 48 | (9) | |
Operating segments [Member] | Market Pulp [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | [1] | 257 | 209 |
Depreciation and amortization | [1] | 7 | 8 |
Operating income (loss) | [1] | 33 | 7 |
Operating segments [Member] | Tissue [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 22 | 20 | |
Depreciation and amortization | 1 | 1 | |
Operating income (loss) | (1) | 0 | |
Operating segments [Member] | Wood Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | [2] | 209 | 177 |
Depreciation and amortization | [2] | 8 | 9 |
Operating income (loss) | [2] | 53 | 20 |
Operating segments [Member] | Newsprint [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 198 | 226 | |
Depreciation and amortization | 16 | 16 | |
Operating income (loss) | (4) | (4) | |
Operating segments [Member] | Specialty Papers [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 188 | 240 | |
Depreciation and amortization | 12 | 12 | |
Operating income (loss) | (7) | 4 | |
Operating segments [Member] | Segment Total [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 874 | 872 | |
Depreciation and amortization | 44 | 46 | |
Operating income (loss) | 74 | 27 | |
Corporate, non-segment [Member] | Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | |
Depreciation and amortization | 9 | 5 | |
Operating income (loss) | $ (26) | $ (36) | |
[1] | Inter-segment sales of $10 million and $9 million, which are transacted at cost, were excluded from market pulp sales for the three months ended March 31, 2018 and 2017, respectively. | ||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $8 million and $4 million for the three months ended March 31, 2018 and 2017, respectively. |
Segment Information - Schedul50
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 874 | $ 872 | |
Market Pulp [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 10 | 9 | |
Market Pulp [Member] | Operating segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | [1] | 257 | 209 |
Wood Products [Member] | Operating segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | [2] | 209 | 177 |
Joint venture sales | $ 8 | $ 4 | |
[1] | Inter-segment sales of $10 million and $9 million, which are transacted at cost, were excluded from market pulp sales for the three months ended March 31, 2018 and 2017, respectively. | ||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $8 million and $4 million for the three months ended March 31, 2018 and 2017, respectively. |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Sales | $ 874 | $ 872 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 614 | 671 |
Depreciation and amortization | 53 | 51 |
Distribution costs | 116 | 110 |
Selling, general and administrative expenses | 43 | 42 |
Closure costs, impairment and other related charges | 0 | 7 |
Operating income (loss) | 48 | (9) |
Interest expense | (13) | (11) |
Non-operating pension and OPEB credits (costs) | 13 | 3 |
Other income (expense), net | (7) | 0 |
Equity in income (loss) of subsidiaries | 0 | 0 |
Income (loss) before income taxes | 41 | (17) |
Income tax benefit (provision) | (31) | (29) |
Net income (loss) including noncontrolling interests | 10 | (46) |
Net (income) loss attributable to noncontrolling interests | 0 | (1) |
Net income (loss) attributable to Resolute Forest Products Inc. | 10 | (47) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 13 | (38) |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Distribution costs | 0 | 0 |
Selling, general and administrative expenses | 5 | 9 |
Closure costs, impairment and other related charges | 0 | |
Operating income (loss) | (5) | (9) |
Interest expense | (23) | (20) |
Non-operating pension and OPEB credits (costs) | 0 | 0 |
Other income (expense), net | 0 | 0 |
Equity in income (loss) of subsidiaries | 38 | (18) |
Income (loss) before income taxes | 10 | (47) |
Income tax benefit (provision) | 0 | 0 |
Net income (loss) including noncontrolling interests | 10 | (47) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 10 | (47) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 13 | (38) |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 809 | 709 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 771 | 678 |
Depreciation and amortization | 20 | 19 |
Distribution costs | 39 | 41 |
Selling, general and administrative expenses | 17 | 17 |
Closure costs, impairment and other related charges | 0 | |
Operating income (loss) | (38) | (46) |
Interest expense | (3) | (1) |
Non-operating pension and OPEB credits (costs) | 4 | 1 |
Other income (expense), net | 14 | 13 |
Equity in income (loss) of subsidiaries | 21 | 1 |
Income (loss) before income taxes | (2) | (32) |
Income tax benefit (provision) | 0 | 0 |
Net income (loss) including noncontrolling interests | (2) | (32) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (2) | (32) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | (5) | (33) |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 592 | 550 |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | 366 | 381 |
Depreciation and amortization | 33 | 32 |
Distribution costs | 79 | 69 |
Selling, general and administrative expenses | 21 | 16 |
Closure costs, impairment and other related charges | 7 | |
Operating income (loss) | 93 | 45 |
Interest expense | (3) | (3) |
Non-operating pension and OPEB credits (costs) | 9 | 2 |
Other income (expense), net | (5) | 0 |
Equity in income (loss) of subsidiaries | 0 | 0 |
Income (loss) before income taxes | 94 | 44 |
Income tax benefit (provision) | (32) | (29) |
Net income (loss) including noncontrolling interests | 62 | 15 |
Net (income) loss attributable to noncontrolling interests | 0 | (1) |
Net income (loss) attributable to Resolute Forest Products Inc. | 62 | 14 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 68 | 24 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | (527) | (387) |
Costs and expenses: | ||
Cost of sales, excluding depreciation, amortization and distribution costs | (523) | (388) |
Depreciation and amortization | 0 | 0 |
Distribution costs | (2) | 0 |
Selling, general and administrative expenses | 0 | 0 |
Closure costs, impairment and other related charges | 0 | |
Operating income (loss) | (2) | 1 |
Interest expense | 16 | 13 |
Non-operating pension and OPEB credits (costs) | 0 | 0 |
Other income (expense), net | (16) | (13) |
Equity in income (loss) of subsidiaries | (59) | 17 |
Income (loss) before income taxes | (61) | 18 |
Income tax benefit (provision) | 1 | 0 |
Net income (loss) including noncontrolling interests | (60) | 18 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (60) | 18 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ (63) | $ 9 |
Condensed Consolidating Finan52
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 13 | $ 6 | $ 39 | |
Accounts receivable, net | 461 | 479 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 577 | 526 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 32 | 33 | ||
Total current assets | 1,083 | 1,044 | ||
Fixed assets, net | 1,684 | 1,716 | ||
Amortizable intangible assets, net | 64 | 65 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1,023 | 1,076 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 187 | 165 | ||
Total assets | 4,122 | 4,147 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 444 | 420 | ||
Current portion of long-term debt | 1 | 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 | 445 | 421 | ||
Long-term debt, net of current portion | 778 | 788 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,198 | 1,257 | ||
Deferred income tax liabilities | 19 | 13 | ||
Other liabilities | 66 | 68 | ||
Total liabilities | 2,506 | 2,547 | ||
Total equity | 1,616 | 1,600 | 1,674 | $ 1,711 |
Total liabilities and equity | 4,122 | 4,147 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | 0 | 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 | 0 | 0 | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 0 | 0 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 3,980 | 3,939 | ||
Other assets | 0 | 0 | ||
Total assets | 3,980 | 3,939 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 14 | 4 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 540 | 536 | ||
Notes, advance and interest payable to subsidiaries | 552 | 538 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 1,106 | 1,078 | ||
Long-term debt, net of current portion | 591 | 592 | ||
Notes payable to subsidiaries | 330 | 330 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 3 | 5 | ||
Total liabilities | 2,030 | 2,005 | ||
Total equity | 1,950 | 1,934 | ||
Total liabilities and equity | 3,980 | 3,939 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 8 | 3 | 2 | |
Accounts receivable, net | 315 | 319 | ||
Accounts receivable from affiliates | 540 | 535 | ||
Inventories, net | 246 | 243 | ||
Notes, advance and interest receivable from parent | 552 | 538 | ||
Notes and interest receivable from affiliates | 31 | 32 | ||
Other current assets | 9 | 16 | ||
Total current assets | 1,701 | 1,686 | ||
Fixed assets, net | 677 | 692 | ||
Amortizable intangible assets, net | 13 | 13 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1 | 1 | ||
Notes receivable from parent | 330 | 330 | ||
Notes receivable from affiliates | 113 | 116 | ||
Investments in consolidated subsidiaries and affiliates | 2,132 | 2,111 | ||
Other assets | 118 | 98 | ||
Total assets | 5,166 | 5,128 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 169 | 171 | ||
Current portion of long-term debt | 1 | 1 | ||
Accounts payable to affiliates | 790 | 728 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 960 | 900 | ||
Long-term debt, net of current portion | 187 | 196 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 370 | 378 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 24 | 24 | ||
Total liabilities | 1,541 | 1,498 | ||
Total equity | 3,625 | 3,630 | ||
Total liabilities and equity | 5,166 | 5,128 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 5 | 3 | 37 | |
Accounts receivable, net | 146 | 160 | ||
Accounts receivable from affiliates | 745 | 729 | ||
Inventories, net | 342 | 292 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 23 | 17 | ||
Total current assets | 1,261 | 1,201 | ||
Fixed assets, net | 1,007 | 1,024 | ||
Amortizable intangible assets, net | 51 | 52 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 1,019 | 1,073 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 69 | 67 | ||
Total assets | 3,407 | 3,417 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 261 | 245 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | 0 | 0 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 31 | 32 | ||
Total current liabilities | 292 | 277 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 113 | 116 | ||
Pension and other postretirement benefit obligations | 828 | 879 | ||
Deferred income tax liabilities | 19 | 13 | ||
Other liabilities | 39 | 39 | ||
Total liabilities | 1,291 | 1,324 | ||
Total equity | 2,116 | 2,093 | ||
Total liabilities and equity | 3,407 | 3,417 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (1,285) | (1,264) | ||
Inventories, net | (11) | (9) | ||
Notes, advance and interest receivable from parent | (552) | (538) | ||
Notes and interest receivable from affiliates | (31) | (32) | ||
Other current assets | 0 | 0 | ||
Total current assets | (1,879) | (1,843) | ||
Fixed assets, net | 0 | 0 | ||
Amortizable intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 3 | 2 | ||
Notes receivable from parent | (330) | (330) | ||
Notes receivable from affiliates | (113) | (116) | ||
Investments in consolidated subsidiaries and affiliates | (6,112) | (6,050) | ||
Other assets | 0 | 0 | ||
Total assets | (8,431) | (8,337) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable to affiliates | (1,330) | (1,264) | ||
Notes, advance and interest payable to subsidiaries | (552) | (538) | ||
Notes and interest payable to affiliates | (31) | (32) | ||
Total current liabilities | (1,913) | (1,834) | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | (330) | (330) | ||
Notes payable to affiliates | (113) | (116) | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | (2,356) | (2,280) | ||
Total equity | (6,075) | (6,057) | ||
Total liabilities and equity | $ (8,431) | $ (8,337) |
Condensed Consolidating Finan53
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 62 | $ (39) | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (25) | (69) | |
Increase in countervailing duty cash deposits on supercalendered paper | (5) | (5) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (14) | 0 | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | (2) | 0 | |
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | ||
Net cash provided by (used in) investing activities | (46) | (74) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | (9) | 118 | |
Payments of financing and credit facility fees | (1) | 0 | |
Advance from subsidiary | 0 | ||
Increase in notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | (10) | 118 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 0 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 5 | 5 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 49 | 73 | |
End of period | 54 | 78 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 13 | 39 | $ 6 |
Restricted cash | 41 | 39 | |
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 | |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | 0 | |
Payments of financing and credit facility fees | (1) | ||
Advance from subsidiary | 1 | ||
Increase in notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 0 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 0 | 0 | |
End of period | 0 | 0 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Restricted cash | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 44 | (47) | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (8) | (59) | |
Increase in countervailing duty cash deposits on supercalendered paper | (5) | (5) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (14) | ||
Increase in countervailing duty cash deposits on uncoated groundwood paper | (2) | ||
Advance to parent | (1) | ||
Increase (decrease) in notes receivable from affiliate | 7 | ||
Net cash provided by (used in) investing activities | (30) | (71) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | (9) | 118 | |
Payments of financing and credit facility fees | 0 | ||
Advance from subsidiary | 0 | ||
Increase in notes payable to affiliate | 0 | ||
Net cash provided by (used in) financing activities | (9) | 118 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 5 | 0 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 3 | 2 | |
End of period | 8 | 2 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 8 | 2 | 3 |
Restricted cash | 0 | 0 | |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 18 | 8 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (17) | (10) | |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | ||
Net cash provided by (used in) investing activities | (17) | (10) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | 0 | |
Payments of financing and credit facility fees | 0 | ||
Advance from subsidiary | 0 | ||
Increase in notes payable to affiliate | 7 | ||
Net cash provided by (used in) financing activities | 0 | 7 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 5 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 46 | 71 | |
End of period | 46 | 76 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 5 | 37 | 3 |
Restricted cash | 41 | 39 | |
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 | |
Increase in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | ||
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 1 | ||
Increase (decrease) in notes receivable from affiliate | (7) | ||
Net cash provided by (used in) investing activities | 1 | 7 | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | 0 | |
Payments of financing and credit facility fees | 0 | ||
Advance from subsidiary | (1) | ||
Increase in notes payable to affiliate | (7) | ||
Net cash provided by (used in) financing activities | (1) | (7) | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | ||
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 0 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 0 | 0 | |
End of period | 0 | 0 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 0 | 0 | $ 0 |
Restricted cash | $ 0 | $ 0 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |