Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | |
Entity Central Index Key | 1,393,066 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | RFP | |
Entity Common Stock, Shares Outstanding | 90,344,530 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||||
Sales | $ 974 | $ 885 | $ 2,824 | $ 2,615 | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 628 | 628 | 1,881 | 1,945 | |
Depreciation and amortization | 54 | 52 | 161 | 153 | |
Distribution costs | 117 | 110 | 356 | 328 | |
Selling, general and administrative expenses | 40 | 43 | 125 | 122 | |
Closure costs, impairment and other related charges | 0 | 8 | 1 | 80 | |
Net gain on disposition of assets | 0 | 2 | 4 | 2 | |
Operating income (loss) | [1] | 135 | 46 | 304 | (11) |
Interest expense | (12) | (13) | (36) | (36) | |
Non-operating pension and other postretirement benefit credits | 13 | 2 | 38 | 6 | |
Other income, net | 14 | 6 | 4 | 11 | |
Income (loss) before income taxes | 150 | 41 | 310 | (30) | |
Income tax provision | (33) | (15) | (111) | (63) | |
Net income (loss) including noncontrolling interests | 117 | 26 | 199 | (93) | |
Net income attributable to noncontrolling interests | 0 | (2) | 0 | (4) | |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 117 | $ 24 | $ 199 | $ (97) | |
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | |||||
Basic (in dollars per share) | $ 1.28 | $ 0.27 | $ 2.18 | $ (1.07) | |
Diluted (in dollars per share) | $ 1.25 | $ 0.26 | $ 2.14 | $ (1.07) | |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | |||||
Basic | 91.3 | 90.5 | 91.3 | 90.4 | |
Diluted | 93.4 | 91.6 | 93.2 | 90.4 | |
[1] | In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) | 9 Months Ended |
Sep. 30, 2018 | |
Income Statement [Abstract] | |
Type of cost, good or service [Extensible List] | us-gaap:ShippingAndHandlingMember |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) including noncontrolling interests | $ 117 | $ 26 | $ 199 | $ (93) |
Unamortized prior service credits | ||||
Change in unamortized prior service credits | (9) | (5) | (17) | (12) |
Income tax provision | 0 | 0 | 0 | 0 |
Change in unamortized prior service credits, net of tax | (9) | (5) | (17) | (12) |
Unamortized actuarial losses | ||||
Change in unamortized actuarial losses | 11 | (2) | 29 | 25 |
Income tax provision | (2) | (3) | (6) | (8) |
Change in unamortized actuarial losses, net of tax | 9 | (5) | 23 | 17 |
Foreign currency translation | 0 | 1 | 0 | 1 |
Other comprehensive income (loss), net of tax | 0 | (9) | 6 | 6 |
Comprehensive income (loss) including noncontrolling interests | 117 | 17 | 205 | (87) |
Comprehensive income attributable to noncontrolling interests | 0 | (2) | 0 | (4) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ 117 | $ 15 | $ 205 | $ (91) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 72 | $ 6 |
Accounts receivable, net: | ||
Trade | 368 | 399 |
Other | 109 | 80 |
Inventories, net | 511 | 526 |
Assets held for sale | 242 | 0 |
Other current assets | 45 | 33 |
Total current assets | 1,347 | 1,044 |
Fixed assets, net | 1,545 | 1,716 |
Amortizable intangible assets, net | 62 | 65 |
Goodwill | 81 | 81 |
Deferred income tax assets | 924 | 1,076 |
Other assets | 186 | 165 |
Total assets | 4,145 | 4,147 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 447 | 420 |
Current portion of long-term debt | 1 | 1 |
Liabilities associated with assets held for sale | 79 | 0 |
Total current liabilities | 527 | 421 |
Long-term debt, net of current portion | 644 | 788 |
Pension and other postretirement benefit obligations | 1,090 | 1,257 |
Deferred income tax liabilities | 1 | 13 |
Other liabilities | 73 | 68 |
Total liabilities | 2,335 | 2,547 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,798 | 3,793 |
Deficit | (1,095) | (1,294) |
Accumulated other comprehensive loss | (774) | (780) |
Treasury stock at cost | (120) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,809 | 1,599 |
Noncontrolling interests | 1 | 1 |
Total equity | 1,810 | 1,600 |
Total liabilities and equity | $ 4,145 | $ 4,147 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,452 | $ 1,614 |
Accumulated amortization | $ 24 | $ 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 | 8 | 8 | |||||
Net income (loss) | (93) | (97) | 4 | ||||
Cumulative-effect adjustment upon deferred tax charge elimination | (3) | (3) | |||||
Other comprehensive income (loss), net of tax | 6 | 6 | 0 | ||||
Ending balance at Sep. 30, 2017 | 1,629 | 0 | 3,783 | (1,307) | (749) | (120) | 22 |
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 | 5 | 5 | |||||
Net income (loss) | 199 | 199 | |||||
Stock unit awards vested net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 6 | 6 | 0 | ||||
Ending balance at Sep. 30, 2018 | $ 1,810 | $ 0 | $ 3,798 | $ (1,095) | $ (774) | $ (120) | $ 1 |
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
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 | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) including noncontrolling interests | $ 199 | $ (93) |
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by operating activities: | ||
Share-based compensation | 6 | 8 |
Depreciation and amortization | 161 | 153 |
Closure costs, impairment and other related charges | 0 | 66 |
(Reversal of) inventory write-downs related to closures | (1) | 24 |
Deferred income taxes | 106 | 60 |
Net pension contributions and other postretirement benefit payments | (112) | (92) |
Net gain on disposition of assets | (4) | (2) |
Loss (gain) on translation of foreign currency denominated deferred income taxes | 28 | (80) |
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | (23) | 65 |
Net planned major maintenance payments | (7) | (6) |
Changes in working capital: | ||
Accounts receivable | (6) | (6) |
Inventories | (53) | (6) |
Other current assets | (13) | (8) |
Accounts payable and accrued liabilities | 61 | 12 |
Other, net | 9 | 4 |
Net cash provided by operating activities | 351 | 99 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (94) | (136) |
Disposition of assets | 2 | 3 |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 13 | (17) |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (62) | (18) |
Increase in countervailing duty cash deposits on uncoated groundwood paper | (6) | 0 |
Net cash provided by (used in) investing activities | (147) | (168) |
Cash flows from financing activities: | ||
Net (repayments) borrowings under revolving credit facilities | (144) | 70 |
Payments of debt | 0 | 1 |
Payments of financing and credit facility fees | (1) | 0 |
Net cash provided by (used in) financing activities | (145) | 69 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 6 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 58 | 6 |
Cash and cash equivalents, and restricted cash: | ||
Beginning of period | 49 | 73 |
End of period | 107 | 79 |
Cash and cash equivalents, and restricted cash at period end: | ||
Cash and cash equivalents | 72 | 38 |
Restricted cash (included in “Other current assets” and “Other assets”) | $ 35 | $ 41 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Sep. 30, 2018 |
Statement of Cash Flows [Abstract] | |
Restricted cash and cash equivalents, asset, statement of financial position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent us-gaap:OtherAssetsNoncurrent |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 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 September 30, 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 impact 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 impact our results of operations, financial position or cash flows. ASU 2017-07 “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 September 30, 2018 and 2017 , was as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 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 $ 615 $ 13 $ 628 $ 624 $ 4 $ 628 Closure costs, impairment and other related charges — — — 10 (2 ) 8 Operating income 148 (13 ) 135 48 (2 ) 46 Non-operating pension and other postretirement benefit credits — 13 13 — 2 2 The effect of this ASU on our Consolidated Statements of Operations for the nine months ended September 30, 2018 and 2017 , was as follows: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 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 $ 1,842 $ 39 $ 1,881 $ 1,936 $ 9 $ 1,945 Selling, general and administrative expenses 126 (1 ) 125 123 (1 ) 122 Closure costs, impairment and other related charges 1 — 1 82 (2 ) 80 Operating income (loss) 342 (38 ) 304 (5 ) (6 ) (11 ) Non-operating pension and other postretirement benefit credits — 38 38 — 6 6 Accounting pronouncements not yet adopted ASU 2016-02 “Leases” In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing, and uncertainty of cash flows arising from leases. We are currently in the process of evaluating our existing lease portfolio, which consists primarily of operating leases where we are the lessee. Upon adoption, we expect to recognize a liability and corresponding asset associated with in-scope leases. We are continuing our assessment and review of existing leases, which may identify other impacts, and are addressing necessary policy and process changes in preparation for adoption. This ASU may either be adopted on a modified retrospective approach at the beginning of the earliest comparative period, or through a cumulative-effect adjustment at the adoption date. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We plan to adopt this standard on January 1, 2019, through a cumulative-effect adjustment at the adoption date. ASU 2018-14 “Changes to the Disclosure Requirements for Defined Benefit Plans” In August 2018, the FASB issued ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans,” which intends to add, remove, and clarify disclosure requirements related to defined benefit pension and OPEB plans. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We are still evaluating the impact of this standard on our consolidated financial statements. ASU 2018-15 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We are still evaluating the impact of this standard on our consolidated financial statements. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 2. Closure Costs, Impairment and Other Related Charges Closure costs, impairment and other related charges were $1 million for the nine months ended September 30, 2018, and were comprised of the following for the three and nine months ended September 30, 2017 : (Unaudited, in millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Pulp mill at Coosa Pines (Alabama) (1) Third quarter $ — $ — $ — $ — First nine months 55 — — 55 Permanent closures Paper machine at Catawba (South Carolina) Third quarter — — — — First nine months 5 — 4 9 Paper machines at Calhoun (Tennessee) Third quarter — 6 2 8 First nine months — 6 2 8 Paper mill at Mokpo (South Korea) Third quarter — — — — First nine months — — 7 7 Other Third quarter — — — — First nine months — — 1 1 Total Third quarter $ — $ 6 $ 2 $ 8 First nine months 60 6 14 80 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 ) Other comprehensive (loss) income before reclassifications (5 ) 2 — (3 ) Amounts reclassified from accumulated other comprehensive loss (1) (12 ) 21 — 9 Net current period other comprehensive (loss) income (17 ) 23 — 6 Balance as of September 30, 2018 $ 35 $ (803 ) $ (6 ) $ (774 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 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 $ (12 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (12 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 26 Non-operating pension and other postretirement benefit credits (1) Settlement loss 1 Non-operating pension and other postretirement benefit credits (1) (6 ) Income tax provision $ 21 Net of tax Total Reclassifications $ 9 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 9, “Employee Benefit Plans .” |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 117 $ 24 $ 199 $ (97 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.3 90.5 91.3 90.4 Dilutive impact of nonvested stock unit awards 2.1 1.1 1.9 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.4 91.6 93.2 90.4 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.28 $ 0.27 $ 2.18 $ (1.07 ) Diluted 1.25 0.26 2.14 (1.07 ) 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 and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Stock options 0.9 1.4 1.3 1.4 Stock unit awards — — — 4.3 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5. Inventories, Net Inventories, net as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 99 $ 108 Work in process 39 38 Finished goods 190 175 Mill stores and other supplies 183 205 $ 511 $ 526 During the three months ended September 30, 2017 , we recorded charges for write-downs of mill stores and other supplies of $11 million, primarily related to the permanent closure of two paper machines at Calhoun. During the nine months ended September 30, 2017 , we also recorded charges of $13 million for write-downs of mill stores and other supplies primarily related to the permanent closures of a paper machine at our Catawba paper mill and our Mokpo paper mill. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Assets Held for Sale, Net
Assets Held for Sale, Net | 9 Months Ended |
Sep. 30, 2018 | |
Assets Held for Sale, Net [Abstract] | |
Assets Held for Sale, Net | Note 6. Assets Held for Sale, Net As of September 30, 2018, we held for sale our recycled bleached kraft (or “ RBK ”) pulp mill at Fairmont (West Virginia) and our paper and pulp mill at Catawba. On August 29, 2018, we entered into a definitive asset purchase agreement to sell our RBK pulp mill at Fairmont. The sale closed on November 1, 2018, for total cash consideration of $62 million , subject to final working capital adjustments, resulting in a net gain on disposition of assets of approximately $40 million , which will be recorded in the fourth quarter of 2018. On October 2, 2018, we entered into a definitive asset purchase agreement to sell our paper and pulp mill at Catawba for total consideration of approximately $300 million , consisting of $260 million in cash, and the assumption of $40 million of liabilities, largely net pension benefit obligations, subject to customary closing adjustments. Assets held for sale, net as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Assets held for sale: Accounts receivable, net $ 45 $ — Inventories, net 70 — Other current assets 5 — Fixed assets, net 121 — Other assets 1 — Total assets held for sale 242 — Liabilities associated with assets held for sale: Accounts payable and accrued liabilities 40 — Pension and other postretirement benefit obligations 34 — Other liabilities 5 — Total liabilities associated with assets held for sale 79 — $ 163 $ — |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 7. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 331 $ 306 Payroll, bonuses and severance payable 55 55 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 18 Income and other taxes payable 10 10 Environmental liabilities 2 2 Other 17 24 $ 447 $ 420 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8. Long-Term Debt Overview Long-term debt, including current portion, as of September 30, 2018 and December 31, 2017 , was comprised of the following: (Unaudited, in millions) September 30, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (5 ) Unamortized discount (3 ) (3 ) Total senior unsecured notes due 2023 592 592 Term loan due 2025 46 46 Borrowings under revolving credit facilities — 144 Capital lease obligation 7 7 Total debt 645 789 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 644 $ 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 $615 million and $622 million as of September 30, 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 September 30, 2018 , we had $139 million of availability under the Revolving Credit Facility. The fair values of the Term Loan and Revolving Credit Facility (Level 2) approximated their carrying values as of both September 30, 2018 and December 31, 2017 . ABL Credit Facility On May 22, 2015, we entered into a senior secured asset-based revolving credit facility (the “ ABL Credit Facility ”), with an aggregate lender commitment of up to $600 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. The ABL Credit Facility will mature on May 22, 2020. As of September 30, 2018 , we had $443 million of availability under the ABL Credit Facility, net of $53 million of ordinary course letters of credit outstanding. The fair value of the ABL Credit Facility (Level 2) approximated its carrying value as of both September 30, 2018 and December 31, 2017 . 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 | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 9. Employee Benefit Plans Pension and other postretirement benefit plans The components of net periodic benefit cost relating to our pension and OPEB plans for the three and nine months ended September 30, 2018 and 2017 , were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Interest cost $ 46 $ 51 $ 142 $ 149 Expected return on plan assets (65 ) (66 ) (199 ) (190 ) Amortization of actuarial losses 9 14 29 42 Amortization of prior service credits — — (1 ) — Non-operating pension (credits) costs (10 ) (1 ) (29 ) 1 Service cost 5 6 14 15 Net periodic benefit (credits) costs before special events (5 ) 5 (15 ) 16 Curtailment, settlement and other losses — 3 1 4 $ (5 ) $ 8 $ (14 ) $ 20 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Interest cost $ 1 $ 2 $ 4 $ 5 Amortization of actuarial gains — (1 ) (3 ) (4 ) Amortization of prior service credits (4 ) (4 ) (11 ) (11 ) Non-operating other postretirement benefit credits (3 ) (3 ) (10 ) (10 ) Service cost — — 1 1 Net periodic benefit credits before special events (3 ) (3 ) (9 ) (9 ) Curtailment gain — (1 ) — (1 ) $ (3 ) $ (4 ) $ (9 ) $ (10 ) Defined contribution plans Our expense for the defined contribution plans totaled $5 million for both the three months ended September 30, 2018 and 2017, and $15 million and $16 million for the nine months ended September 30, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. 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. During the three and nine months ended September 30, 2018, the enactment of the TCJA resulted in an income tax provision attributable to the GILTI inclusion of $28 million and $53 million , respectively, before valuation allowance, with no other 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 September 30, 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 and nine months ended September 30, 2018 and 2017 , as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Income (loss) before income taxes $ 150 $ 41 $ 310 $ (30 ) Income tax provision: Expected income tax (provision) benefit (31 ) (9 ) (65 ) 6 Changes resulting from: U.S. federal tax rate change reconciliation — (5 ) — 5 Valuation allowance (1) 32 (19 ) 40 (94 ) Enactment of change in foreign tax rate — — — (12 ) Foreign exchange 2 8 (12 ) 9 State income taxes, net of federal income tax benefit (1 ) 1 1 7 Foreign tax rate differences (2) (35 ) 7 (72 ) 15 Other, net — 2 (3 ) 1 $ (33 ) $ (15 ) $ (111 ) $ (63 ) (1) Relates to our U.S. operations for the three and nine months ended September 30, 2018, and the three months ended September 30, 2017, and primarily to our U.S. operations for the nine months ended September 30, 2017. (2) Includes an income tax provision attributable to the GILTI inclusion of $28 million and $53 million , before valuation allowance, for the three months and nine months ended September 30, 2018, respectively. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Legal matters We become involved in various legal proceedings and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, 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 September 30, 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 petitions 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, beginning January 16, 2018, we were 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 was subject to distinct countervailing duties, as further discussed below. The preliminary rate remained in effect until May 15, 2018. On March 13, 2018, Commerce also 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. for less than fair market value during the relevant period (from July 1, 2016 to June 30, 2017). On August 29, 2018, the ITC determined that the U.S. UGW paper producer was not materially injured nor threatened with material injury by U.S. imports of Canadian-origin UGW paper, and that no countervailing duty or anti-dumping orders will be issued. As a result, we will receive a refund of all cash deposits made on our U.S. imports of UGW paper produced at our Canadian mills, plus interest, and no further cash deposits are required going forward. Through September 30, 2018 , cash deposits to be refunded totaled $6 million . These cash deposits were recorded in “Accounts receivable, net – Other” 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 petitions 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 binational panel on appeal remand the final determination to Commerce. Through September 30, 2018 , our cash deposits totaled $67 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. This rate that will apply until Commerce sets a duty rate in an administrative review, or in a possible remand determination. Through September 30, 2018 , our cash deposits totaled $21 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 nine months ended September 30, 2018 , and our cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Countervailing duty investigation on supercalendered 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.” 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, and on July 6, 2018, Commerce signed the revocation order. As a result, we will receive a refund of all cash deposits made on our U.S. imports of SC paper produced at our Canadian mills, plus interest, and no further cash deposits are required going forward. In addition, this resulted in the termination of all pending administrative reviews. Through September 30, 2018 , cash deposits of $25 million were refunded. Remaining cash deposits to be refunded of $36 million , plus interest, were recorded in “Accounts receivable, net – Other” in our Consolidated Balance Sheets as of September 30, 2018 . 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 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 arbitration hearing is expected to occur in the first half of 2019. 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, and Coosa Pines mills, and their spouses and dependents (or the “ proposed class ”). The plaintiffs alleged that the modifications described above breached the collective bargaining agreements and plan covering the members of the proposed class in the lawsuit. Plaintiffs sought 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 subject to court approval. On June 5, 2018, the District Court i ssued an order providing for preliminary approval of the settlement . On August 3, 2018, a final order approving the class action settlement and dismissing the case was entered, resulting in an amendment of our U.S. OPEB plan and a corresponding increase of $3 million to both “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” was recorded in our Consolidated Balance Sheet in the third quarter of 2018. 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 September 30, 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 ( $115 million , based on the exchange rate in effect on September 30, 2018 ), would have to be funded if we do not obtain the relief sought. The hearing in this matter is expected to occur in 2019. 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 environmental liabilities of $8 million recorded as of both September 30, 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 asset retirement obligations of $23 million and $24 million recorded as of September 30, 2018 and December 31, 2017 , respectively, 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 | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. Segment Information We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: market pulp, tissue, wood products, newsprint, and specialty papers. None of the income or loss items following “ Operating income (loss) ” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs, gains and losses on disposition of assets, 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 and nine months ended September 30, 2018 and 2017 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Third quarter 2018 $ 288 $ 38 $ 203 $ 232 $ 213 $ 974 $ — $ 974 2017 227 21 219 199 219 885 — 885 First nine months 2018 809 95 666 660 594 2,824 — 2,824 2017 649 61 593 626 686 2,615 — 2,615 Depreciation and amortization Third quarter 2018 $ 7 $ 5 $ 8 $ 16 $ 12 $ 48 $ 6 $ 54 2017 8 2 9 16 11 46 6 52 First nine months 2018 22 11 23 49 36 141 20 161 2017 24 4 25 49 34 136 17 153 Operating income (loss) (4) Third quarter 2018 $ 57 $ (10 ) $ 45 $ 32 $ 26 $ 150 $ (15 ) $ 135 2017 19 (3 ) 64 (6 ) 7 81 (35 ) 46 First nine months 2018 131 (21 ) 177 46 23 356 (52 ) 304 2017 42 (4 ) 129 (17 ) 4 154 (165 ) (11 ) (1) Inter-segment sales of $10 million and $9 million for the three months ended September 30, 2018 and 2017, respectively, and $29 million and $28 million for the nine months ended September 30, 2018 and 2017, respectively, which are transacted at cost, were excluded from market pulp sales. (2) The operating results of our Calhoun tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $7 million and $6 million for the three months ended September 30, 2018 and 2017, respectively, and $23 million and $16 million for the nine months ended September 30, 2018 and 2017, respectively. (4) In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 13. Condensed Consolidating Financial Information The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act of 1933, as amended, in connection with Resolute Forest Products Inc.’s 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (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 and nine months ended September 30, 2018 and 2017 , the Balance Sheets as of September 30, 2018 and December 31, 2017 , and the Statements of Cash Flows for the nine months ended September 30, 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 For the Three Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 808 $ 609 $ (443 ) $ 974 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 708 366 (446 ) 628 Depreciation and amortization — 20 34 — 54 Distribution costs — 42 75 — 117 Selling, general and administrative expenses 6 17 17 — 40 Operating (loss) income (6 ) 21 117 3 135 Interest expense (20 ) (2 ) (3 ) 13 (12 ) Non-operating pension and other postretirement benefit credits — 4 9 — 13 Other income, net — 14 13 (13 ) 14 Equity in income of subsidiaries 143 7 — (150 ) — Income before income taxes 117 44 136 (147 ) 150 Income tax provision — — (32 ) (1 ) (33 ) Net income including noncontrolling interests 117 44 104 (148 ) 117 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 117 $ 44 $ 104 $ (148 ) $ 117 Comprehensive income attributable to Resolute Forest Products Inc. $ 117 $ 38 $ 110 $ (148 ) $ 117 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,348 $ 1,875 $ (1,399 ) $ 2,824 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,145 1,128 (1,392 ) 1,881 Depreciation and amortization — 61 100 — 161 Distribution costs — 119 239 (2 ) 356 Selling, general and administrative expenses 18 48 59 — 125 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (18 ) (25 ) 352 (5 ) 304 Interest expense (67 ) (6 ) (9 ) 46 (36 ) Non-operating pension and other postretirement benefit credits — 11 27 — 38 Other income, net — 47 3 (46 ) 4 Equity in income of subsidiaries 284 56 — (340 ) — Income before income taxes 199 83 373 (345 ) 310 Income tax provision — — (112 ) 1 (111 ) Net income including noncontrolling interests 199 83 261 (344 ) 199 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 199 $ 83 $ 261 $ (344 ) $ 199 Comprehensive income attributable to Resolute Forest Products Inc. $ 205 $ 72 $ 278 $ (350 ) $ 205 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 716 $ 570 $ (401 ) $ 885 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 670 360 (402 ) 628 Depreciation and amortization — 18 34 — 52 Distribution costs — 39 71 — 110 Selling, general and administrative expenses 4 19 20 — 43 Closure costs, impairment and other related charges — 8 — — 8 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (4 ) (38 ) 87 1 46 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Non-operating pension and other postretirement benefit (costs) credits — (1 ) 3 — 2 Other income, net — 20 2 (16 ) 6 Equity in income (loss) of subsidiaries 51 (3 ) — (48 ) — Income (loss) before income taxes 24 (25 ) 89 (47 ) 41 Income tax provision — — (15 ) — (15 ) Net income (loss) including noncontrolling interests 24 (25 ) 74 (47 ) 26 Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (25 ) $ 72 $ (47 ) $ 24 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 15 $ (41 ) $ 79 $ (38 ) $ 15 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,131 $ 1,660 $ (1,176 ) $ 2,615 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,030 1,091 (1,176 ) 1,945 Depreciation and amortization — 55 98 — 153 Distribution costs — 119 210 (1 ) 328 Selling, general and administrative expenses 18 53 51 — 122 Closure costs, impairment and other related charges — 72 8 — 80 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (198 ) 204 1 (11 ) Interest expense (65 ) (7 ) (9 ) 45 (36 ) Non-operating pension and other postretirement benefit credits — — 6 — 6 Other income, net — 53 3 (45 ) 11 Equity in loss of subsidiaries (14 ) (2 ) — 16 — (Loss) income before income taxes (97 ) (154 ) 204 17 (30 ) Income tax provision — (1 ) (62 ) — (63 ) Net (loss) income including noncontrolling interests (97 ) (155 ) 142 17 (93 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (97 ) $ (155 ) $ 138 $ 17 $ (97 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (91 ) $ (173 ) $ 162 $ 11 $ (91 ) CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 64 $ 8 $ — $ 72 Accounts receivable, net — 350 127 — 477 Accounts receivable from affiliates — 566 1,008 (1,574 ) — Inventories, net — 195 330 (14 ) 511 Assets held for sale — 228 14 — 242 Note, advance and interest receivable from parent — 419 — (419 ) — Notes and interest receivable from affiliates — 31 — (31 ) — Other current assets — 14 31 — 45 Total current assets — 1,867 1,518 (2,038 ) 1,347 Fixed assets, net — 554 991 — 1,545 Amortizable intangible assets, net — 12 50 — 62 Goodwill — 81 — — 81 Deferred income tax assets — 1 920 3 924 Note receivable from parent — 488 — (488 ) — Note receivable from affiliate — 113 — (113 ) — Investments in consolidated subsidiaries and affiliates 4,229 2,167 — (6,396 ) — Other assets — 107 79 — 186 Total assets $ 4,229 $ 5,390 $ 3,558 $ (9,032 ) $ 4,145 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 163 $ 270 $ — $ 447 Current portion of long-term debt — 1 — — 1 Liabilities associated with assets held for sale — 79 — — 79 Accounts payable to affiliates 566 1,053 — (1,619 ) — Note, advance and interest payable to subsidiaries 419 — — (419 ) — Notes and interest payable to affiliate — — 31 (31 ) — Total current liabilities 999 1,296 301 (2,069 ) 527 Long-term debt, net of current portion 592 52 — — 644 Note payable to subsidiary 488 — — (488 ) — Note payable to affiliate — — 113 (113 ) — Pension and other postretirement benefit obligations — 318 772 — 1,090 Deferred income tax liabilities — — 1 — 1 Other liabilities 6 22 45 — 73 Total liabilities 2,085 1,688 1,232 (2,670 ) 2,335 Total equity 2,144 3,702 2,326 (6,362 ) 1,810 Total liabilities and equity $ 4,229 $ 5,390 $ 3,558 $ (9,032 ) $ 4,145 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 Nine Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 291 $ 60 $ — $ 351 Cash flows from investing activities: Cash invested in fixed assets — (31 ) (63 ) — (94 ) Disposition of assets — — 2 — 2 Decrease in countervailing duty cash deposits on supercalendered paper, net — 13 — — 13 Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (62 ) — — (62 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (6 ) — — (6 ) Advance to parent — (1 ) — 1 — Decrease in notes receivable from affiliate — 1 — (1 ) — Net cash used in investing activities — (86 ) (61 ) — (147 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (144 ) — — (144 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Decrease in notes payable to affiliate — — (1 ) 1 — Net cash used in financing activities — (144 ) (1 ) — (145 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (1 ) — (1 ) Net increase (decrease) in cash and cash equivalents, and restricted cash — 61 (3 ) — 58 Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 64 $ 43 $ — $ 107 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 64 $ 8 $ — $ 72 Restricted cash — — 35 — 35 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 69 $ 30 $ — $ 99 Cash flows from investing activities: Cash invested in fixed assets — (106 ) (30 ) — (136 ) Disposition of assets — — 3 — 3 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (18 ) — — (18 ) Decrease in notes receivable from affiliate — 5 — (5 ) — Net cash used in investing activities — (136 ) (27 ) (5 ) (168 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 70 — — 70 Payments of debt — (1 ) — — (1 ) Decrease in notes payable to affiliate — — (5 ) 5 — Net cash provided by (used in) financing activities — 69 (5 ) 5 69 Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — 6 — 6 Net increase in cash and cash equivalents, and restricted cash — 2 4 — 6 Cash and cash equivalents, and restricted cash: Beginning of period — 2 71 — 73 End of period $ — $ 4 $ 75 $ — $ 79 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 4 $ 34 $ — $ 38 Restricted cash — — 41 — 41 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Event The following significant event occurred subsequent to September 30, 2018: • We announced a special cash dividend of $1.50 per share on November 1, 2018. The special dividend will be payable on December 20, 2018 to shareholders of record at the close of business on December 6, 2018. |
Organization and Basis of Pre_2
Organization and Basis of Presentation - New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 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 impact 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 impact our results of operations, financial position or cash flows. ASU 2017-07 “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 September 30, 2018 and 2017 , was as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 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 $ 615 $ 13 $ 628 $ 624 $ 4 $ 628 Closure costs, impairment and other related charges — — — 10 (2 ) 8 Operating income 148 (13 ) 135 48 (2 ) 46 Non-operating pension and other postretirement benefit credits — 13 13 — 2 2 The effect of this ASU on our Consolidated Statements of Operations for the nine months ended September 30, 2018 and 2017 , was as follows: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 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 $ 1,842 $ 39 $ 1,881 $ 1,936 $ 9 $ 1,945 Selling, general and administrative expenses 126 (1 ) 125 123 (1 ) 122 Closure costs, impairment and other related charges 1 — 1 82 (2 ) 80 Operating income (loss) 342 (38 ) 304 (5 ) (6 ) (11 ) Non-operating pension and other postretirement benefit credits — 38 38 — 6 6 Accounting pronouncements not yet adopted ASU 2016-02 “Leases” In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize leases on the balance sheet while continuing to recognize expenses in the income statement in a manner similar to current accounting standards. For lessors, the new standard modifies the classification criteria and the accounting for sales-type and direct financing leases. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing, and uncertainty of cash flows arising from leases. We are currently in the process of evaluating our existing lease portfolio, which consists primarily of operating leases where we are the lessee. Upon adoption, we expect to recognize a liability and corresponding asset associated with in-scope leases. We are continuing our assessment and review of existing leases, which may identify other impacts, and are addressing necessary policy and process changes in preparation for adoption. This ASU may either be adopted on a modified retrospective approach at the beginning of the earliest comparative period, or through a cumulative-effect adjustment at the adoption date. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We plan to adopt this standard on January 1, 2019, through a cumulative-effect adjustment at the adoption date. ASU 2018-14 “Changes to the Disclosure Requirements for Defined Benefit Plans” In August 2018, the FASB issued ASU 2018-14, “Changes to the Disclosure Requirements for Defined Benefit Plans,” which intends to add, remove, and clarify disclosure requirements related to defined benefit pension and OPEB plans. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. We are still evaluating the impact of this standard on our consolidated financial statements. ASU 2018-15 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” In August 2018, the FASB issued ASU 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. We are still evaluating the impact of this standard on our consolidated financial statements. 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 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. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2018 and 2017 , was as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 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 $ 615 $ 13 $ 628 $ 624 $ 4 $ 628 Closure costs, impairment and other related charges — — — 10 (2 ) 8 Operating income 148 (13 ) 135 48 (2 ) 46 Non-operating pension and other postretirement benefit credits — 13 13 — 2 2 The effect of this ASU on our Consolidated Statements of Operations for the nine months ended September 30, 2018 and 2017 , was as follows: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 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 $ 1,842 $ 39 $ 1,881 $ 1,936 $ 9 $ 1,945 Selling, general and administrative expenses 126 (1 ) 125 123 (1 ) 122 Closure costs, impairment and other related charges 1 — 1 82 (2 ) 80 Operating income (loss) 342 (38 ) 304 (5 ) (6 ) (11 ) Non-operating pension and other postretirement benefit credits — 38 38 — 6 6 |
Closure Costs, Impairment and_2
Closure Costs, Impairment and Other Related Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges were $1 million for the nine months ended September 30, 2018, and were comprised of the following for the three and nine months ended September 30, 2017 : (Unaudited, in millions) Impairment of Assets Accelerated Depreciation Severance and Other Costs Total Pulp mill at Coosa Pines (Alabama) (1) Third quarter $ — $ — $ — $ — First nine months 55 — — 55 Permanent closures Paper machine at Catawba (South Carolina) Third quarter — — — — First nine months 5 — 4 9 Paper machines at Calhoun (Tennessee) Third quarter — 6 2 8 First nine months — 6 2 8 Paper mill at Mokpo (South Korea) Third quarter — — — — First nine months — — 7 7 Other Third quarter — — — — First nine months — — 1 1 Total Third quarter $ — $ 6 $ 2 $ 8 First nine months 60 6 14 80 (1) As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 ) Other comprehensive (loss) income before reclassifications (5 ) 2 — (3 ) Amounts reclassified from accumulated other comprehensive loss (1) (12 ) 21 — 9 Net current period other comprehensive (loss) income (17 ) 23 — 6 Balance as of September 30, 2018 $ 35 $ (803 ) $ (6 ) $ (774 ) (1) See the table below for details about these reclassifications. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 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 $ (12 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (12 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 26 Non-operating pension and other postretirement benefit credits (1) Settlement loss 1 Non-operating pension and other postretirement benefit credits (1) (6 ) Income tax provision $ 21 Net of tax Total Reclassifications $ 9 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 9, “Employee Benefit Plans .” |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2018 2017 2018 2017 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 117 $ 24 $ 199 $ (97 ) Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 91.3 90.5 91.3 90.4 Dilutive impact of nonvested stock unit awards 2.1 1.1 1.9 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.4 91.6 93.2 90.4 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.28 $ 0.27 $ 2.18 $ (1.07 ) Diluted 1.25 0.26 2.14 (1.07 ) |
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 and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Stock options 0.9 1.4 1.3 1.4 Stock unit awards — — — 4.3 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 99 $ 108 Work in process 39 38 Finished goods 190 175 Mill stores and other supplies 183 205 $ 511 $ 526 |
Assets Held for Sale, Net (Tabl
Assets Held for Sale, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Assets Held for Sale, Net [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | Assets held for sale, net as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Assets held for sale: Accounts receivable, net $ 45 $ — Inventories, net 70 — Other current assets 5 — Fixed assets, net 121 — Other assets 1 — Total assets held for sale 242 — Liabilities associated with assets held for sale: Accounts payable and accrued liabilities 40 — Pension and other postretirement benefit obligations 34 — Other liabilities 5 — Total liabilities associated with assets held for sale 79 — $ 163 $ — |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of September 30, 2018 and December 31, 2017 , were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 331 $ 306 Payroll, bonuses and severance payable 55 55 Accrued interest 14 5 Pension and other postretirement benefit obligations 18 18 Income and other taxes payable 10 10 Environmental liabilities 2 2 Other 17 24 $ 447 $ 420 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of September 30, 2018 and December 31, 2017 , was comprised of the following: (Unaudited, in millions) September 30, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 600 $ 600 Deferred financing costs (5 ) (5 ) Unamortized discount (3 ) (3 ) Total senior unsecured notes due 2023 592 592 Term loan due 2025 46 46 Borrowings under revolving credit facilities — 144 Capital lease obligation 7 7 Total debt 645 789 Less: Current portion of long-term debt (1 ) (1 ) Long-term debt, net of current portion $ 644 $ 788 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2018 and 2017 , were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Interest cost $ 46 $ 51 $ 142 $ 149 Expected return on plan assets (65 ) (66 ) (199 ) (190 ) Amortization of actuarial losses 9 14 29 42 Amortization of prior service credits — — (1 ) — Non-operating pension (credits) costs (10 ) (1 ) (29 ) 1 Service cost 5 6 14 15 Net periodic benefit (credits) costs before special events (5 ) 5 (15 ) 16 Curtailment, settlement and other losses — 3 1 4 $ (5 ) $ 8 $ (14 ) $ 20 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Interest cost $ 1 $ 2 $ 4 $ 5 Amortization of actuarial gains — (1 ) (3 ) (4 ) Amortization of prior service credits (4 ) (4 ) (11 ) (11 ) Non-operating other postretirement benefit credits (3 ) (3 ) (10 ) (10 ) Service cost — — 1 1 Net periodic benefit credits before special events (3 ) (3 ) (9 ) (9 ) Curtailment gain — (1 ) — (1 ) $ (3 ) $ (4 ) $ (9 ) $ (10 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2018 and 2017 , as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2018 2017 2018 2017 Income (loss) before income taxes $ 150 $ 41 $ 310 $ (30 ) Income tax provision: Expected income tax (provision) benefit (31 ) (9 ) (65 ) 6 Changes resulting from: U.S. federal tax rate change reconciliation — (5 ) — 5 Valuation allowance (1) 32 (19 ) 40 (94 ) Enactment of change in foreign tax rate — — — (12 ) Foreign exchange 2 8 (12 ) 9 State income taxes, net of federal income tax benefit (1 ) 1 1 7 Foreign tax rate differences (2) (35 ) 7 (72 ) 15 Other, net — 2 (3 ) 1 $ (33 ) $ (15 ) $ (111 ) $ (63 ) (1) Relates to our U.S. operations for the three and nine months ended September 30, 2018, and the three months ended September 30, 2017, and primarily to our U.S. operations for the nine months ended September 30, 2017. (2) Includes an income tax provision attributable to the GILTI inclusion of $28 million and $53 million , before valuation allowance, for the three months and nine months ended September 30, 2018, respectively. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three and nine months ended September 30, 2018 and 2017 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Third quarter 2018 $ 288 $ 38 $ 203 $ 232 $ 213 $ 974 $ — $ 974 2017 227 21 219 199 219 885 — 885 First nine months 2018 809 95 666 660 594 2,824 — 2,824 2017 649 61 593 626 686 2,615 — 2,615 Depreciation and amortization Third quarter 2018 $ 7 $ 5 $ 8 $ 16 $ 12 $ 48 $ 6 $ 54 2017 8 2 9 16 11 46 6 52 First nine months 2018 22 11 23 49 36 141 20 161 2017 24 4 25 49 34 136 17 153 Operating income (loss) (4) Third quarter 2018 $ 57 $ (10 ) $ 45 $ 32 $ 26 $ 150 $ (15 ) $ 135 2017 19 (3 ) 64 (6 ) 7 81 (35 ) 46 First nine months 2018 131 (21 ) 177 46 23 356 (52 ) 304 2017 42 (4 ) 129 (17 ) 4 154 (165 ) (11 ) (1) Inter-segment sales of $10 million and $9 million for the three months ended September 30, 2018 and 2017, respectively, and $29 million and $28 million for the nine months ended September 30, 2018 and 2017, respectively, which are transacted at cost, were excluded from market pulp sales. (2) The operating results of our Calhoun tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $7 million and $6 million for the three months ended September 30, 2018 and 2017, respectively, and $23 million and $16 million for the nine months ended September 30, 2018 and 2017, respectively. (4) In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 808 $ 609 $ (443 ) $ 974 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 708 366 (446 ) 628 Depreciation and amortization — 20 34 — 54 Distribution costs — 42 75 — 117 Selling, general and administrative expenses 6 17 17 — 40 Operating (loss) income (6 ) 21 117 3 135 Interest expense (20 ) (2 ) (3 ) 13 (12 ) Non-operating pension and other postretirement benefit credits — 4 9 — 13 Other income, net — 14 13 (13 ) 14 Equity in income of subsidiaries 143 7 — (150 ) — Income before income taxes 117 44 136 (147 ) 150 Income tax provision — — (32 ) (1 ) (33 ) Net income including noncontrolling interests 117 44 104 (148 ) 117 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 117 $ 44 $ 104 $ (148 ) $ 117 Comprehensive income attributable to Resolute Forest Products Inc. $ 117 $ 38 $ 110 $ (148 ) $ 117 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,348 $ 1,875 $ (1,399 ) $ 2,824 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,145 1,128 (1,392 ) 1,881 Depreciation and amortization — 61 100 — 161 Distribution costs — 119 239 (2 ) 356 Selling, general and administrative expenses 18 48 59 — 125 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (18 ) (25 ) 352 (5 ) 304 Interest expense (67 ) (6 ) (9 ) 46 (36 ) Non-operating pension and other postretirement benefit credits — 11 27 — 38 Other income, net — 47 3 (46 ) 4 Equity in income of subsidiaries 284 56 — (340 ) — Income before income taxes 199 83 373 (345 ) 310 Income tax provision — — (112 ) 1 (111 ) Net income including noncontrolling interests 199 83 261 (344 ) 199 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 199 $ 83 $ 261 $ (344 ) $ 199 Comprehensive income attributable to Resolute Forest Products Inc. $ 205 $ 72 $ 278 $ (350 ) $ 205 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 716 $ 570 $ (401 ) $ 885 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 670 360 (402 ) 628 Depreciation and amortization — 18 34 — 52 Distribution costs — 39 71 — 110 Selling, general and administrative expenses 4 19 20 — 43 Closure costs, impairment and other related charges — 8 — — 8 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (4 ) (38 ) 87 1 46 Interest expense (23 ) (3 ) (3 ) 16 (13 ) Non-operating pension and other postretirement benefit (costs) credits — (1 ) 3 — 2 Other income, net — 20 2 (16 ) 6 Equity in income (loss) of subsidiaries 51 (3 ) — (48 ) — Income (loss) before income taxes 24 (25 ) 89 (47 ) 41 Income tax provision — — (15 ) — (15 ) Net income (loss) including noncontrolling interests 24 (25 ) 74 (47 ) 26 Net income attributable to noncontrolling interests — — (2 ) — (2 ) Net income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (25 ) $ 72 $ (47 ) $ 24 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 15 $ (41 ) $ 79 $ (38 ) $ 15 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 2,131 $ 1,660 $ (1,176 ) $ 2,615 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 2,030 1,091 (1,176 ) 1,945 Depreciation and amortization — 55 98 — 153 Distribution costs — 119 210 (1 ) 328 Selling, general and administrative expenses 18 53 51 — 122 Closure costs, impairment and other related charges — 72 8 — 80 Net gain on disposition of assets — — (2 ) — (2 ) Operating (loss) income (18 ) (198 ) 204 1 (11 ) Interest expense (65 ) (7 ) (9 ) 45 (36 ) Non-operating pension and other postretirement benefit credits — — 6 — 6 Other income, net — 53 3 (45 ) 11 Equity in loss of subsidiaries (14 ) (2 ) — 16 — (Loss) income before income taxes (97 ) (154 ) 204 17 (30 ) Income tax provision — (1 ) (62 ) — (63 ) Net (loss) income including noncontrolling interests (97 ) (155 ) 142 17 (93 ) Net income attributable to noncontrolling interests — — (4 ) — (4 ) Net (loss) income attributable to Resolute Forest Products Inc. $ (97 ) $ (155 ) $ 138 $ 17 $ (97 ) Comprehensive (loss) income attributable to Resolute Forest Products Inc. $ (91 ) $ (173 ) $ 162 $ 11 $ (91 ) |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 64 $ 8 $ — $ 72 Accounts receivable, net — 350 127 — 477 Accounts receivable from affiliates — 566 1,008 (1,574 ) — Inventories, net — 195 330 (14 ) 511 Assets held for sale — 228 14 — 242 Note, advance and interest receivable from parent — 419 — (419 ) — Notes and interest receivable from affiliates — 31 — (31 ) — Other current assets — 14 31 — 45 Total current assets — 1,867 1,518 (2,038 ) 1,347 Fixed assets, net — 554 991 — 1,545 Amortizable intangible assets, net — 12 50 — 62 Goodwill — 81 — — 81 Deferred income tax assets — 1 920 3 924 Note receivable from parent — 488 — (488 ) — Note receivable from affiliate — 113 — (113 ) — Investments in consolidated subsidiaries and affiliates 4,229 2,167 — (6,396 ) — Other assets — 107 79 — 186 Total assets $ 4,229 $ 5,390 $ 3,558 $ (9,032 ) $ 4,145 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 14 $ 163 $ 270 $ — $ 447 Current portion of long-term debt — 1 — — 1 Liabilities associated with assets held for sale — 79 — — 79 Accounts payable to affiliates 566 1,053 — (1,619 ) — Note, advance and interest payable to subsidiaries 419 — — (419 ) — Notes and interest payable to affiliate — — 31 (31 ) — Total current liabilities 999 1,296 301 (2,069 ) 527 Long-term debt, net of current portion 592 52 — — 644 Note payable to subsidiary 488 — — (488 ) — Note payable to affiliate — — 113 (113 ) — Pension and other postretirement benefit obligations — 318 772 — 1,090 Deferred income tax liabilities — — 1 — 1 Other liabilities 6 22 45 — 73 Total liabilities 2,085 1,688 1,232 (2,670 ) 2,335 Total equity 2,144 3,702 2,326 (6,362 ) 1,810 Total liabilities and equity $ 4,229 $ 5,390 $ 3,558 $ (9,032 ) $ 4,145 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 Nine Months Ended September 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 291 $ 60 $ — $ 351 Cash flows from investing activities: Cash invested in fixed assets — (31 ) (63 ) — (94 ) Disposition of assets — — 2 — 2 Decrease in countervailing duty cash deposits on supercalendered paper, net — 13 — — 13 Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (62 ) — — (62 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (6 ) — — (6 ) Advance to parent — (1 ) — 1 — Decrease in notes receivable from affiliate — 1 — (1 ) — Net cash used in investing activities — (86 ) (61 ) — (147 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (144 ) — — (144 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Decrease in notes payable to affiliate — — (1 ) 1 — Net cash used in financing activities — (144 ) (1 ) — (145 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (1 ) — (1 ) Net increase (decrease) in cash and cash equivalents, and restricted cash — 61 (3 ) — 58 Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 64 $ 43 $ — $ 107 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 64 $ 8 $ — $ 72 Restricted cash — — 35 — 35 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2017 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 69 $ 30 $ — $ 99 Cash flows from investing activities: Cash invested in fixed assets — (106 ) (30 ) — (136 ) Disposition of assets — — 3 — 3 Increase in countervailing duty cash deposits on supercalendered paper — (17 ) — — (17 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (18 ) — — (18 ) Decrease in notes receivable from affiliate — 5 — (5 ) — Net cash used in investing activities — (136 ) (27 ) (5 ) (168 ) Cash flows from financing activities: Net borrowings under revolving credit facilities — 70 — — 70 Payments of debt — (1 ) — — (1 ) Decrease in notes payable to affiliate — — (5 ) 5 — Net cash provided by (used in) financing activities — 69 (5 ) 5 69 Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — 6 — 6 Net increase in cash and cash equivalents, and restricted cash — 2 4 — 6 Cash and cash equivalents, and restricted cash: Beginning of period — 2 71 — 73 End of period $ — $ 4 $ 75 $ — $ 79 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 4 $ 34 $ — $ 38 Restricted cash — — 41 — 41 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Nature of Operations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)sitecountry | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)sitecountry | Sep. 30, 2017USD ($) | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of countries products are marketed in (approximate) | country | 70 | 70 | |||
Number of manufacturing facilities (approximate) | site | 40 | 40 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 628 | $ 628 | $ 1,881 | $ 1,945 | |
Selling, general and administrative expenses | 40 | 43 | 125 | 122 | |
Closure costs, impairment and other related charges | 0 | 8 | 1 | 80 | |
Operating income (loss) | [1] | 135 | 46 | 304 | (11) |
Non-operating pension and other postretirement benefit credits (costs) | 13 | 2 | 38 | 6 | |
Before accounting standards update [Member] | Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 615 | 624 | 1,842 | 1,936 | |
Selling, general and administrative expenses | 126 | 123 | |||
Closure costs, impairment and other related charges | 0 | 10 | 1 | 82 | |
Operating income (loss) | 148 | 48 | 342 | (5) | |
Non-operating pension and other postretirement benefit credits (costs) | 0 | 0 | 0 | 0 | |
Effect of change [Member] | Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 13 | 4 | 39 | 9 | |
Selling, general and administrative expenses | (1) | (1) | |||
Closure costs, impairment and other related charges | 0 | (2) | 0 | (2) | |
Operating income (loss) | (13) | (2) | (38) | (6) | |
Non-operating pension and other postretirement benefit credits (costs) | $ 13 | $ 2 | $ 38 | $ 6 | |
[1] | In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. |
Closure Costs, Impairment and_3
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | $ 0 | $ 60 | |||
Accelerated depreciation | 6 | 6 | |||
Severance and other costs | 2 | 14 | |||
Total | $ 0 | 8 | $ 1 | 80 | |
Pulp mill at Coosa Pines, Alabama [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | [1] | 0 | 55 | ||
Accelerated depreciation | [1] | 0 | 0 | ||
Severance and other costs | [1] | 0 | 0 | ||
Total | [1] | 0 | 55 | ||
Permanent closure at paper machine in Catawba, South Carolina [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 5 | |||
Accelerated depreciation | 0 | 0 | |||
Severance and other costs | 0 | 4 | |||
Total | 0 | 9 | |||
Permanent closure at paper machines in Calhoun, Tennessee [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 6 | 6 | |||
Severance and other costs | 2 | 2 | |||
Total | 8 | 8 | |||
Permanent closure at paper mill in Mokpo, South Korea [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 0 | 0 | |||
Severance and other costs | 0 | 7 | |||
Total | 0 | 7 | |||
Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of assets | 0 | 0 | |||
Accelerated depreciation | 0 | 0 | |||
Severance and other costs | 0 | 1 | |||
Total | $ 0 | $ 1 | |||
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Closure Costs, Impairment and_4
Closure Costs, Impairment and Other Related Charges - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Closure costs, impairment and other related charges | $ 0 | $ 8 | $ 1 | $ 80 | |
Long-lived asset impairment charges | 0 | 60 | |||
Pulp mill at Coosa Pines, Alabama [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Closure costs, impairment and other related charges | [1] | 0 | 55 | ||
Long-lived asset impairment charges | [1] | $ 0 | $ 55 | ||
[1] | As a result of the continued deterioration of actual and projected cash flows, we recorded long-lived asset impairment charges of $55 million for the nine months ended September 30, 2017, to reduce the carrying value of the assets to their estimated fair value, which was determined using the market approach, by reference to market transaction prices for similar assets. The fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (780) | ||||
Other comprehensive (loss) income before reclassifications | (3) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 9 | |||
Other comprehensive income (loss), net of tax | $ 0 | $ (9) | 6 | $ 6 | |
Ending balance | (774) | (774) | |||
Unamortized Prior Service Credits [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 52 | ||||
Other comprehensive (loss) income before reclassifications | (5) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (12) | |||
Other comprehensive income (loss), net of tax | (17) | ||||
Ending balance | 35 | 35 | |||
Unamortized Actuarial Losses [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (826) | ||||
Other comprehensive (loss) income before reclassifications | 2 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 21 | |||
Other comprehensive income (loss), net of tax | 23 | ||||
Ending balance | (803) | (803) | |||
Foreign Currency Translation [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (6) | ||||
Other comprehensive (loss) income before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | |||
Other comprehensive income (loss), net of tax | 0 | ||||
Ending balance | $ (6) | $ (6) | |||
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit (credits) costs | $ (13) | $ (2) | $ (38) | $ (6) | |
Income tax (provision) benefit | 33 | 15 | 111 | 63 | |
Net of tax | $ (117) | $ (24) | (199) | $ 97 | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net of tax | 9 | ||||
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 other postretirement benefit (credits) costs | [1] | (12) | |||
Income tax (provision) benefit | 0 | ||||
Net of tax | (12) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses, Portion Relating to Amortization of Actuarial Gains (Losses) [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit (credits) costs | [1] | 26 | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses, Portion Related to Settlement Gains (Losses) [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit (credits) costs | [1] | 1 | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Income tax (provision) benefit | (6) | ||||
Net of tax | $ 21 | ||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 9, “Employee Benefit Plans.” |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 117 | $ 24 | $ 199 | $ (97) |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding | 91.3 | 90.5 | 91.3 | 90.4 |
Dilutive impact of nonvested stock unit awards | 2.1 | 1.1 | 1.9 | 0 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 93.4 | 91.6 | 93.2 | 90.4 |
Basic earnings per share (in dollars per share) | $ 1.28 | $ 0.27 | $ 2.18 | $ (1.07) |
Diluted earnings per share (in dollars per share) | $ 1.25 | $ 0.26 | $ 2.14 | $ (1.07) |
Stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 0.9 | 1.4 | 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 | 0 | 0 | 4.3 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 99 | $ 108 |
Work in process | 39 | 38 |
Finished goods | 190 | 175 |
Mill stores and other supplies | 183 | 205 |
Inventories, net | $ 511 | $ 526 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | ||||
(Reversal of) inventory write-downs related to closures | $ 11 | $ 13 | $ (1) | $ 24 |
Assets Held for Sale, Net (Deta
Assets Held for Sale, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | ||||||
Accounts receivable, net | $ 45 | $ 45 | $ 0 | |||
Inventories, net | 70 | 70 | 0 | |||
Other current assets | 5 | 5 | 0 | |||
Fixed assets, net | 121 | 121 | 0 | |||
Other assets | 1 | 1 | 0 | |||
Total assets held for sale | 242 | 242 | 0 | |||
Accounts payable and accrued liabilities | 40 | 40 | 0 | |||
Pension and other postretirement benefit obligations | 34 | 34 | 0 | |||
Other liabilities | 5 | 5 | 0 | |||
Total liabilities associated with assets held for sale | 79 | 79 | 0 | |||
Assets held for sale, net | 163 | 163 | $ 0 | |||
Consideration received on disposal of assets | 2 | $ 3 | ||||
Net gain on disposition of assets | $ 0 | $ 2 | $ 4 | $ 2 | ||
Subsequent Event [Member] | Recycled Bleached Kraft Pulp Mill at Fairmont (West Virginia) [Member] | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Consideration received on disposal of assets | $ 62 | |||||
Net gain on disposition of assets | 40 | |||||
Subsequent Event [Member] | Paper and pulp mill at Catawba (South Carolina) [Member] | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Consideration received on disposal of assets | 260 | |||||
Total consideration received on disposal of assets | 300 | |||||
Consideration received on disposal of assets from liabilities assumed | $ 40 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 331 | $ 306 |
Payroll, bonuses and severance payable | 55 | 55 |
Accrued interest | 14 | 5 |
Pension and other postretirement benefit obligations | 18 | 18 |
Income and other taxes payable | 10 | 10 |
Environmental liabilities | 2 | 2 |
Other | 17 | 24 |
Accounts payable and accrued liabilities | $ 447 | $ 420 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Borrowings under revolving credit facilities | $ 0 | $ 144 |
Capital lease obligation | 7 | 7 |
Total debt | 645 | 789 |
Less: Current portion of long-term debt | (1) | (1) |
Long-term debt, net of current portion | 644 | 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 | (5) | (5) |
Unamortized discount | (3) | (3) |
Net carrying amount | $ 592 | $ 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 ($) | Sep. 30, 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 | $ 615,000,000 | $ 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 ($) | Sep. 30, 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 | $ 139,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility [Member] - USD ($) | Sep. 30, 2018 | May 22, 2015 |
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 600,000,000 | |
Available credit facility borrowing capacity | $ 443,000,000 | |
Letters of credit amount outstanding | $ 53,000,000 |
Long-Term Debt - Capital Lease
Long-Term Debt - Capital Lease Obligation (Details) | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-operating pension and other postretirement benefit costs (credits) | $ (13) | $ (2) | $ (38) | $ (6) |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 46 | 51 | 142 | 149 |
Expected return on plan assets | (65) | (66) | (199) | (190) |
Amortization of actuarial (gains) losses | 9 | 14 | 29 | 42 |
Amortization of prior service (credits) costs | 0 | 0 | (1) | 0 |
Non-operating pension and other postretirement benefit costs (credits) | (10) | (1) | (29) | 1 |
Service cost | 5 | 6 | 14 | 15 |
Net periodic benefit (credits) costs before special events | (5) | 5 | (15) | 16 |
Curtailment, settlement and other gains (losses) | 0 | (3) | (1) | (4) |
Net periodic benefit cost | (5) | 8 | (14) | 20 |
OPEB Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 2 | 4 | 5 |
Amortization of actuarial (gains) losses | 0 | (1) | (3) | (4) |
Amortization of prior service (credits) costs | (4) | (4) | (11) | (11) |
Non-operating pension and other postretirement benefit costs (credits) | (3) | (3) | (10) | (10) |
Service cost | 0 | 0 | 1 | 1 |
Net periodic benefit (credits) costs before special events | (3) | (3) | (9) | (9) |
Curtailment, settlement and other gains (losses) | 0 | 1 | 0 | 1 |
Net periodic benefit cost | $ (3) | $ (4) | $ (9) | $ (10) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Retirement Benefits [Abstract] | ||||
Expense for the defined contribution plans, total | $ 5 | $ 5 | $ 15 | $ 16 |
Interest cost, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent | |||
Expected return on plan assets, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent | |||
Amortization of actuarial gains (losses), statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent | |||
Amortization of prior service costs (credits), statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent | |||
Settlement loss, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Tax Disclosure [Abstract] | |||||
Income (loss) before income taxes | $ 150 | $ 41 | $ 310 | $ (30) | |
Income tax provision: | |||||
Expected income tax (provision) benefit | (31) | (9) | (65) | 6 | |
Changes resulting from: | |||||
U.S. federal tax rate change reconciliation | 0 | (5) | 0 | 5 | |
Valuation allowance | [1] | 32 | (19) | 40 | (94) |
Enactment of change in foreign tax rate | 0 | 0 | 0 | (12) | |
Foreign exchange | 2 | 8 | (12) | 9 | |
State income taxes, net of federal income tax benefit | (1) | 1 | 1 | 7 | |
Foreign tax rate differences | [2] | (35) | 7 | (72) | 15 |
Other, net | 0 | 2 | (3) | 1 | |
Income tax provision | $ (33) | $ (15) | $ (111) | $ (63) | |
[1] | Relates to our U.S. operations for the three and nine months ended September 30, 2018, and the three months ended September 30, 2017, and primarily to our U.S. operations for the nine months ended September 30, 2017. | ||||
[2] | Includes an income tax provision attributable to the GILTI inclusion of $28 million and $53 million, before valuation allowance, for the three months and nine months ended September 30, 2018, respectively. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax provision attributable to GILTI | $ 28 | $ 53 | ||||
U.S. federal statutory income tax rate (for rate rec) | 21.00% | 21.00% | 21.00% | 21.00% | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||||
Deficit | $ 1,095 | $ 1,095 | $ 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 | 9 Months Ended | ||||||||||
Sep. 30, 2018USD ($) | Sep. 30, 2018CAD ($) | Sep. 30, 2018CAD ($) | Jan. 16, 2018 | Dec. 31, 2017USD ($) | 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% | ||||||||||
Accumulated countervailing duty cash deposits made on uncoated groundwood paper | $ 6 | ||||||||||
Preliminary countervailing duty rate on Canadian softwood lumber imported to the U.S. market | 12.82% | ||||||||||
Final determination countervailing duty rate on Canadian softwood lumber imported to the U.S. market | 14.70% | ||||||||||
Accumulated countervailing cash deposits made on softwood lumber exports | 67 | ||||||||||
Preliminary anti-dumping rate on Canadian softwood lumber imported to the U.S. market | 4.59% | ||||||||||
Final determination anti-dumping rate on Canadian softwood lumber imported to the U.S. market | 3.20% | ||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | 21 | ||||||||||
Countervailing duty rate on supercalendered paper exports | 17.87% | 2.04% | |||||||||
Countervailing duty rate on supercalendered paper exports, portion considered punitive application | 17.10% | ||||||||||
Countervailing duty cash deposits made on supercalendered paper exports refunded | 25 | ||||||||||
Countervailing duty cash deposits made on supercalendered paper exports remaining to be refunded | 36 | ||||||||||
Increase to pension and other postretirement benefit obligations | 1,090 | $ 1,257 | |||||||||
Increase to accumulated other comprehensive loss | 774 | 780 | |||||||||
Maximum deficit from partial wind-up of pension plans to be funded | 115 | $ 150 | |||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||
Environmental liabilities | 8 | 8 | |||||||||
Asset retirement obligations | 23 | $ 24 | |||||||||
Softwood Lumber Duties Investigations [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Contingent loss | 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] | |||||||||||
Yearly countervailing duty cash deposits on imports of Canadian softwood lumber imported to the U.S. market | 65 | ||||||||||
Yearly anti-dumping cash deposits on imports of Canadian softwood lumber imported to the U.S. market | 15 | ||||||||||
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 | ||||||||||
U.S. OPEB litigation [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Increase to pension and other postretirement benefit obligations | 3 | ||||||||||
Increase to accumulated other comprehensive loss | $ 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 974 | $ 885 | $ 2,824 | $ 2,615 | |
Depreciation and amortization | 54 | 52 | 161 | 153 | |
Operating income (loss) | [1] | 135 | 46 | 304 | (11) |
Operating segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 288 | 227 | 809 | 649 |
Depreciation and amortization | [2] | 7 | 8 | 22 | 24 |
Operating income (loss) | [1],[2] | 57 | 19 | 131 | 42 |
Operating segments [Member] | Tissue [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [3] | 38 | 21 | 95 | 61 |
Depreciation and amortization | [3] | 5 | 2 | 11 | 4 |
Operating income (loss) | [1],[3] | (10) | (3) | (21) | (4) |
Operating segments [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [4] | 203 | 219 | 666 | 593 |
Depreciation and amortization | [4] | 8 | 9 | 23 | 25 |
Operating income (loss) | [1],[4] | 45 | 64 | 177 | 129 |
Operating segments [Member] | Newsprint [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 232 | 199 | 660 | 626 | |
Depreciation and amortization | 16 | 16 | 49 | 49 | |
Operating income (loss) | [1] | 32 | (6) | 46 | (17) |
Operating segments [Member] | Specialty Papers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 213 | 219 | 594 | 686 | |
Depreciation and amortization | 12 | 11 | 36 | 34 | |
Operating income (loss) | [1] | 26 | 7 | 23 | 4 |
Operating segments [Member] | Segment Total [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 974 | 885 | 2,824 | 2,615 | |
Depreciation and amortization | 48 | 46 | 141 | 136 | |
Operating income (loss) | [1] | 150 | 81 | 356 | 154 |
Corporate, non-segment [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 6 | 6 | 20 | 17 | |
Operating income (loss) | [1] | $ (15) | $ (35) | $ (52) | $ (165) |
[1] | In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. | ||||
[2] | Inter-segment sales of $10 million and $9 million for the three months ended September 30, 2018 and 2017, respectively, and $29 million and $28 million for the nine months ended September 30, 2018 and 2017, respectively, which are transacted at cost, were excluded from market pulp sales. | ||||
[3] | The operating results of our Calhoun tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. | ||||
[4] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $7 million and $6 million for the three months ended September 30, 2018 and 2017, respectively, and $23 million and $16 million for the nine months ended September 30, 2018 and 2017, respectively. |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 974 | $ 885 | $ 2,824 | $ 2,615 | |
Market Pulp [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 10 | 9 | 29 | 28 | |
Market Pulp [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [1] | 288 | 227 | 809 | 649 |
Wood Products [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 203 | 219 | 666 | 593 |
Joint venture sales | $ 7 | $ 6 | $ 23 | $ 16 | |
[1] | Inter-segment sales of $10 million and $9 million for the three months ended September 30, 2018 and 2017, respectively, and $29 million and $28 million for the nine months ended September 30, 2018 and 2017, respectively, which are transacted at cost, were excluded from market pulp sales. | ||||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $7 million and $6 million for the three months ended September 30, 2018 and 2017, respectively, and $23 million and $16 million for the nine months ended September 30, 2018 and 2017, respectively. |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Condensed Financial Statements, Captions [Line Items] | |||||
Sales | $ 974 | $ 885 | $ 2,824 | $ 2,615 | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 628 | 628 | 1,881 | 1,945 | |
Depreciation and amortization | 54 | 52 | 161 | 153 | |
Distribution costs | 117 | 110 | 356 | 328 | |
Selling, general and administrative expenses | 40 | 43 | 125 | 122 | |
Closure costs, impairment and other related charges | 0 | 8 | 1 | 80 | |
Net gain on disposition of assets | 0 | (2) | (4) | (2) | |
Operating income (loss) | [1] | 135 | 46 | 304 | (11) |
Interest expense | (12) | (13) | (36) | (36) | |
Non-operating pension and other postretirement benefit credits (costs) | 13 | 2 | 38 | 6 | |
Other income (expense), net | 14 | 6 | 4 | 11 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | 150 | 41 | 310 | (30) | |
Income tax benefit (provision) | (33) | (15) | (111) | (63) | |
Net income (loss) including noncontrolling interests | 117 | 26 | 199 | (93) | |
Net (income) loss attributable to noncontrolling interests | 0 | (2) | 0 | (4) | |
Net income (loss) attributable to Resolute Forest Products Inc. | 117 | 24 | 199 | (97) | |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 117 | 15 | 205 | (91) | |
Parent [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Distribution costs | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 6 | 4 | 18 | 18 | |
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||
Net gain on disposition of assets | 0 | 0 | 0 | ||
Operating income (loss) | (6) | (4) | (18) | (18) | |
Interest expense | (20) | (23) | (67) | (65) | |
Non-operating pension and other postretirement benefit credits (costs) | 0 | 0 | 0 | 0 | |
Other income (expense), net | 0 | 0 | 0 | 0 | |
Equity in income (loss) of subsidiaries | 143 | 51 | 284 | (14) | |
Income (loss) before income taxes | 117 | 24 | 199 | (97) | |
Income tax benefit (provision) | 0 | 0 | 0 | 0 | |
Net income (loss) including noncontrolling interests | 117 | 24 | 199 | (97) | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Resolute Forest Products Inc. | 117 | 24 | 199 | (97) | |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 117 | 15 | 205 | (91) | |
Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Sales | 808 | 716 | 2,348 | 2,131 | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 708 | 670 | 2,145 | 2,030 | |
Depreciation and amortization | 20 | 18 | 61 | 55 | |
Distribution costs | 42 | 39 | 119 | 119 | |
Selling, general and administrative expenses | 17 | 19 | 48 | 53 | |
Closure costs, impairment and other related charges | 8 | 0 | 72 | ||
Net gain on disposition of assets | 0 | 0 | 0 | ||
Operating income (loss) | 21 | (38) | (25) | (198) | |
Interest expense | (2) | (3) | (6) | (7) | |
Non-operating pension and other postretirement benefit credits (costs) | 4 | (1) | 11 | 0 | |
Other income (expense), net | 14 | 20 | 47 | 53 | |
Equity in income (loss) of subsidiaries | 7 | (3) | 56 | (2) | |
Income (loss) before income taxes | 44 | (25) | 83 | (154) | |
Income tax benefit (provision) | 0 | 0 | 0 | (1) | |
Net income (loss) including noncontrolling interests | 44 | (25) | 83 | (155) | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Resolute Forest Products Inc. | 44 | (25) | 83 | (155) | |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 38 | (41) | 72 | (173) | |
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Sales | 609 | 570 | 1,875 | 1,660 | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | 366 | 360 | 1,128 | 1,091 | |
Depreciation and amortization | 34 | 34 | 100 | 98 | |
Distribution costs | 75 | 71 | 239 | 210 | |
Selling, general and administrative expenses | 17 | 20 | 59 | 51 | |
Closure costs, impairment and other related charges | 0 | 1 | 8 | ||
Net gain on disposition of assets | (2) | (4) | (2) | ||
Operating income (loss) | 117 | 87 | 352 | 204 | |
Interest expense | (3) | (3) | (9) | (9) | |
Non-operating pension and other postretirement benefit credits (costs) | 9 | 3 | 27 | 6 | |
Other income (expense), net | 13 | 2 | 3 | 3 | |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | 136 | 89 | 373 | 204 | |
Income tax benefit (provision) | (32) | (15) | (112) | (62) | |
Net income (loss) including noncontrolling interests | 104 | 74 | 261 | 142 | |
Net (income) loss attributable to noncontrolling interests | 0 | (2) | 0 | (4) | |
Net income (loss) attributable to Resolute Forest Products Inc. | 104 | 72 | 261 | 138 | |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 110 | 79 | 278 | 162 | |
Consolidating Adjustments [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Sales | (443) | (401) | (1,399) | (1,176) | |
Costs and expenses: | |||||
Cost of sales, excluding depreciation, amortization and distribution costs | (446) | (402) | (1,392) | (1,176) | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Distribution costs | 0 | 0 | (2) | (1) | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Closure costs, impairment and other related charges | 0 | 0 | 0 | ||
Net gain on disposition of assets | 0 | 0 | 0 | ||
Operating income (loss) | 3 | 1 | (5) | 1 | |
Interest expense | 13 | 16 | 46 | 45 | |
Non-operating pension and other postretirement benefit credits (costs) | 0 | 0 | 0 | 0 | |
Other income (expense), net | (13) | (16) | (46) | (45) | |
Equity in income (loss) of subsidiaries | (150) | (48) | (340) | 16 | |
Income (loss) before income taxes | (147) | (47) | (345) | 17 | |
Income tax benefit (provision) | (1) | 0 | 1 | 0 | |
Net income (loss) including noncontrolling interests | (148) | (47) | (344) | 17 | |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Resolute Forest Products Inc. | (148) | (47) | (344) | 17 | |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ (148) | $ (38) | $ (350) | $ 11 | |
[1] | In the first quarter of 2018, we changed our presentation of operating income in accordance with FASB ASU 2017-07, to present only the service cost component of net periodic pension cost and OPEB cost in operating expenses (together with other employee compensation costs arising during the period). The non-operating pension and OPEB costs, presented under “corporate and other,” are reported separately outside any subtotal of operating income. Prior period amounts have been reclassified to conform to the 2018 presentation. See Note 1. Organization and Basis of Presentation – New accounting pronouncements adopted – ASU 2017-07 “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” for more information. |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 72 | $ 6 | $ 38 | |
Accounts receivable, net | 477 | 479 | ||
Accounts receivable from affiliates | 0 | 0 | ||
Inventories, net | 511 | 526 | ||
Assets held for sale | 242 | 0 | ||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 45 | 33 | ||
Total current assets | 1,347 | 1,044 | ||
Fixed assets, net | 1,545 | 1,716 | ||
Amortizable intangible assets, net | 62 | 65 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 924 | 1,076 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 186 | 165 | ||
Total assets | 4,145 | 4,147 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 447 | 420 | ||
Current portion of long-term debt | 1 | 1 | ||
Liabilities associated with assets held for sale | 79 | 0 | ||
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 | 527 | 421 | ||
Long-term debt, net of current portion | 644 | 788 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 1,090 | 1,257 | ||
Deferred income tax liabilities | 1 | 13 | ||
Other liabilities | 73 | 68 | ||
Total liabilities | 2,335 | 2,547 | ||
Total equity | 1,810 | 1,600 | 1,629 | $ 1,711 |
Total liabilities and equity | 4,145 | 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 | ||
Assets held for sale | 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 | 4,229 | 3,939 | ||
Other assets | 0 | 0 | ||
Total assets | 4,229 | 3,939 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 14 | 4 | ||
Current portion of long-term debt | 0 | 0 | ||
Liabilities associated with assets held for sale | 0 | |||
Accounts payable to affiliates | 566 | 536 | ||
Notes, advance and interest payable to subsidiaries | 419 | 538 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 999 | 1,078 | ||
Long-term debt, net of current portion | 592 | 592 | ||
Notes payable to subsidiaries | 488 | 330 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 6 | 5 | ||
Total liabilities | 2,085 | 2,005 | ||
Total equity | 2,144 | 1,934 | ||
Total liabilities and equity | 4,229 | 3,939 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 64 | 3 | 4 | |
Accounts receivable, net | 350 | 319 | ||
Accounts receivable from affiliates | 566 | 535 | ||
Inventories, net | 195 | 243 | ||
Assets held for sale | 228 | |||
Notes, advance and interest receivable from parent | 419 | 538 | ||
Notes and interest receivable from affiliates | 31 | 32 | ||
Other current assets | 14 | 16 | ||
Total current assets | 1,867 | 1,686 | ||
Fixed assets, net | 554 | 692 | ||
Amortizable intangible assets, net | 12 | 13 | ||
Goodwill | 81 | 81 | ||
Deferred income tax assets | 1 | 1 | ||
Notes receivable from parent | 488 | 330 | ||
Notes receivable from affiliates | 113 | 116 | ||
Investments in consolidated subsidiaries and affiliates | 2,167 | 2,111 | ||
Other assets | 107 | 98 | ||
Total assets | 5,390 | 5,128 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 163 | 171 | ||
Current portion of long-term debt | 1 | 1 | ||
Liabilities associated with assets held for sale | 79 | |||
Accounts payable to affiliates | 1,053 | 728 | ||
Notes, advance and interest payable to subsidiaries | 0 | 0 | ||
Notes and interest payable to affiliates | 0 | 0 | ||
Total current liabilities | 1,296 | 900 | ||
Long-term debt, net of current portion | 52 | 196 | ||
Notes payable to subsidiaries | 0 | 0 | ||
Notes payable to affiliates | 0 | 0 | ||
Pension and other postretirement benefit obligations | 318 | 378 | ||
Deferred income tax liabilities | 0 | 0 | ||
Other liabilities | 22 | 24 | ||
Total liabilities | 1,688 | 1,498 | ||
Total equity | 3,702 | 3,630 | ||
Total liabilities and equity | 5,390 | 5,128 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 8 | 3 | 34 | |
Accounts receivable, net | 127 | 160 | ||
Accounts receivable from affiliates | 1,008 | 729 | ||
Inventories, net | 330 | 292 | ||
Assets held for sale | 14 | |||
Notes, advance and interest receivable from parent | 0 | 0 | ||
Notes and interest receivable from affiliates | 0 | 0 | ||
Other current assets | 31 | 17 | ||
Total current assets | 1,518 | 1,201 | ||
Fixed assets, net | 991 | 1,024 | ||
Amortizable intangible assets, net | 50 | 52 | ||
Goodwill | 0 | 0 | ||
Deferred income tax assets | 920 | 1,073 | ||
Notes receivable from parent | 0 | 0 | ||
Notes receivable from affiliates | 0 | 0 | ||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | ||
Other assets | 79 | 67 | ||
Total assets | 3,558 | 3,417 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 270 | 245 | ||
Current portion of long-term debt | 0 | 0 | ||
Liabilities associated with assets held for sale | 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 | 301 | 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 | 772 | 879 | ||
Deferred income tax liabilities | 1 | 13 | ||
Other liabilities | 45 | 39 | ||
Total liabilities | 1,232 | 1,324 | ||
Total equity | 2,326 | 2,093 | ||
Total liabilities and equity | 3,558 | 3,417 | ||
Consolidating Adjustments [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | |
Accounts receivable, net | 0 | 0 | ||
Accounts receivable from affiliates | (1,574) | (1,264) | ||
Inventories, net | (14) | (9) | ||
Assets held for sale | 0 | |||
Notes, advance and interest receivable from parent | (419) | (538) | ||
Notes and interest receivable from affiliates | (31) | (32) | ||
Other current assets | 0 | 0 | ||
Total current assets | (2,038) | (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 | (488) | (330) | ||
Notes receivable from affiliates | (113) | (116) | ||
Investments in consolidated subsidiaries and affiliates | (6,396) | (6,050) | ||
Other assets | 0 | 0 | ||
Total assets | (9,032) | (8,337) | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Liabilities associated with assets held for sale | 0 | |||
Accounts payable to affiliates | (1,619) | (1,264) | ||
Notes, advance and interest payable to subsidiaries | (419) | (538) | ||
Notes and interest payable to affiliates | (31) | (32) | ||
Total current liabilities | (2,069) | (1,834) | ||
Long-term debt, net of current portion | 0 | 0 | ||
Notes payable to subsidiaries | (488) | (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 | (2,670) | (2,280) | ||
Total equity | (6,362) | (6,057) | ||
Total liabilities and equity | $ (9,032) | $ (8,337) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 351 | $ 99 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (94) | (136) | |
Disposition of assets | 2 | 3 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 13 | (17) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (62) | (18) | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | (6) | 0 | |
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | 0 | |
Net cash provided by (used in) investing activities | (147) | (168) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | (144) | 70 | |
Payments of financing and credit facility fees | (1) | 0 | |
Payments of debt | 0 | 1 | |
Advance from subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | 0 | 0 | |
Net cash provided by (used in) financing activities | (145) | 69 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 6 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 58 | 6 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 49 | 73 | |
End of period | 107 | 79 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 72 | 38 | $ 6 |
Restricted cash | 35 | 41 | |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | |
Disposition of assets | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | 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) | ||
Payments of debt | 0 | ||
Advance from subsidiary | 1 | ||
Increase (decrease) in notes payable to affiliate | 0 | 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 | 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 | 291 | 69 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (31) | (106) | |
Disposition of assets | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 13 | (17) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (62) | (18) | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | (6) | ||
Advance to parent | (1) | ||
Increase (decrease) in notes receivable from affiliate | (1) | (5) | |
Net cash provided by (used in) investing activities | (86) | (136) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | (144) | 70 | |
Payments of financing and credit facility fees | 0 | ||
Payments of debt | 1 | ||
Advance from subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | 0 | 0 | |
Net cash provided by (used in) financing activities | (144) | 69 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 61 | 2 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 3 | 2 | |
End of period | 64 | 4 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 64 | 4 | 3 |
Restricted cash | 0 | 0 | |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 60 | 30 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (63) | (30) | |
Disposition of assets | 2 | 3 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 0 | ||
Increase (decrease) in notes receivable from affiliate | 0 | 0 | |
Net cash provided by (used in) investing activities | (61) | (27) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | 0 | |
Payments of financing and credit facility fees | 0 | ||
Payments of debt | 0 | ||
Advance from subsidiary | 0 | ||
Increase (decrease) in notes payable to affiliate | (1) | (5) | |
Net cash provided by (used in) financing activities | (1) | (5) | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 6 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (3) | 4 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 46 | 71 | |
End of period | 43 | 75 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 8 | 34 | 3 |
Restricted cash | 35 | 41 | |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | |
Disposition of assets | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper, net | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Increase in countervailing duty cash deposits on uncoated groundwood paper | 0 | ||
Advance to parent | 1 | ||
Increase (decrease) in notes receivable from affiliate | 1 | 5 | |
Net cash provided by (used in) investing activities | 0 | (5) | |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | 0 | |
Payments of financing and credit facility fees | 0 | ||
Payments of debt | 0 | ||
Advance from subsidiary | (1) | ||
Increase (decrease) in notes payable to affiliate | 1 | 5 | |
Net cash provided by (used in) financing activities | 0 | 5 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | 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) | 9 Months Ended |
Sep. 30, 2018 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Event (Details) | Nov. 01, 2018USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Special cash dividend announced | $ 1.50 |