Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33776 | |
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0526415 | |
Entity Address, Address Line One | 111 Robert-Bourassa Boulevard | |
Entity Address, Address Line Two | Suite 5000 | |
Entity Address, City | Montreal | |
Entity Address, Province | QC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | H3C 2M1 | |
City Area Code | 514 | |
Local Phone Number | 875-2160 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | RFP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,662,976 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001393066 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Sales | $ 817 | $ 730 | $ 2,830 | $ 2,031 |
Costs and expenses: | ||||
Depreciation and amortization | 42 | 43 | 123 | 125 |
Selling, general and administrative expenses | 32 | 35 | 114 | 101 |
Closure costs, impairment and other related charges | 0 | 0 | 2 | (2) |
Net gain on disposition of assets | 0 | 0 | 0 | (9) |
Operating income | 102 | 97 | 685 | 95 |
Interest expense | (5) | (8) | (16) | (26) |
Non-operating pension and other postretirement benefit credits | 3 | 5 | 8 | 24 |
Other income (expense), net | 20 | (14) | (74) | 24 |
Income before income taxes | 120 | 80 | 603 | 117 |
Income tax provision | (40) | (23) | (167) | (55) |
Net income including noncontrolling interest | 80 | 57 | 436 | 62 |
Net income attributable to noncontrolling interest | 0 | 0 | (1) | 0 |
Net income attributable to Resolute Forest Products Inc. | $ 80 | $ 57 | $ 435 | $ 62 |
Net income per share attributable to Resolute Forest Products Inc. common shareholders: | ||||
Basic (USD per share) | $ 1 | $ 0.66 | $ 5.44 | $ 0.71 |
Diluted (USD per share) | $ 0.99 | $ 0.66 | $ 5.39 | $ 0.71 |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||
Basic (shares) | 79.4 | 86 | 80 | 87.4 |
Diluted (shares) | 80.1 | 86.2 | 80.8 | 87.6 |
Product | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation and amortization | $ 554 | $ 475 | $ 1,642 | $ 1,463 |
Distribution costs | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation and amortization | $ 87 | $ 80 | $ 264 | $ 258 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interest | $ 80 | $ 57 | $ 436 | $ 62 |
Unamortized prior service costs or credits | ||||
Change in unamortized prior service costs or credits | 0 | (1) | (3) | (17) |
Income tax provision | 0 | 0 | 0 | 0 |
Change in unamortized prior service costs or credits, net of tax | 0 | (1) | (3) | (17) |
Unamortized actuarial losses | ||||
Change in unamortized actuarial losses | 16 | 14 | 84 | 46 |
Income tax provision | (4) | (3) | (20) | (10) |
Change in unamortized actuarial losses, net of tax | 12 | 11 | 64 | 36 |
Foreign currency translation | 0 | 1 | 0 | 0 |
Other comprehensive income, net of tax | 12 | 11 | 61 | 19 |
Comprehensive income including noncontrolling interest | 92 | 68 | 497 | 81 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | (1) | 0 |
Comprehensive income attributable to Resolute Forest Products Inc. | $ 92 | $ 68 | $ 496 | $ 81 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 119 | $ 113 |
Accounts receivable, net: | ||
Trade | 279 | 230 |
Other | 48 | 48 |
Inventories, net | 509 | 462 |
Other current assets | 68 | 47 |
Total current assets | 1,023 | 900 |
Fixed assets, less accumulated depreciation of $1,720 and $1,604 as of September 30, 2021 and December 31, 2020, respectively | 1,406 | 1,441 |
Amortizable intangible assets, less accumulated amortization of $37 and $33 as of September 30, 2021 and December 31, 2020, respectively | 59 | 63 |
Goodwill | 31 | 31 |
Deferred income tax assets | 735 | 915 |
Operating lease right-of-use assets | 58 | 60 |
Other assets | 455 | 320 |
Total assets | 3,767 | 3,730 |
Current liabilities: | ||
Accounts payable and other | 437 | 369 |
Current portion of long-term debt | 3 | 2 |
Current portion of operating lease liabilities | 7 | 9 |
Total current liabilities | 447 | 380 |
Long-term debt, net of current portion | 300 | 559 |
Pension and other postretirement benefit obligations | 1,415 | 1,562 |
Operating lease liabilities, net of current portion | 55 | 55 |
Other liabilities | 85 | 92 |
Total liabilities | 2,302 | 2,648 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 121.0 million shares issued and 77.9 million shares outstanding as of September 30, 2021; 120.6 million shares issued and 80.8 million shares outstanding as of December 31, 2020 | 0 | 0 |
Additional paid-in capital | 3,805 | 3,804 |
Deficit | (881) | (1,235) |
Accumulated other comprehensive loss | (1,253) | (1,314) |
Treasury stock at cost, 43.1 million shares and 39.8 million shares as of September 30, 2021 and December 31, 2020, respectively | (208) | (174) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,463 | 1,081 |
Noncontrolling interest | 2 | 1 |
Total equity | 1,465 | 1,082 |
Total liabilities and equity | $ 3,767 | $ 3,730 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on fixed assets | $ 1,720 | $ 1,604 |
Accumulated amortization on intangible assets | $ 37 | $ 33 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock issued (shares) | 121 | 120.6 |
Common stock outstanding (shares) | 77.9 | 80.8 |
Treasury stock (shares) | 43.1 | 39.8 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 1,235 | $ 0 | $ 3,802 | $ (1,245) | $ (1,179) | $ (144) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 3 | 3 | |||||
Net income | 62 | 62 | 0 | ||||
Purchases of treasury stock | (19) | (19) | |||||
Special dividend | 0 | ||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income, net of tax | 19 | 19 | 0 | ||||
Balance at end of period at Sep. 30, 2020 | 1,300 | 0 | 3,805 | (1,183) | (1,160) | (163) | 1 |
Balance at beginning of period at Jun. 30, 2020 | 1,250 | 0 | 3,805 | (1,240) | (1,171) | (145) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 0 | 0 | |||||
Net income | 57 | 57 | 0 | ||||
Purchases of treasury stock | (18) | (18) | |||||
Other comprehensive income, net of tax | 11 | 11 | 0 | ||||
Balance at end of period at Sep. 30, 2020 | 1,300 | 0 | 3,805 | (1,183) | (1,160) | (163) | 1 |
Balance at beginning of period at Dec. 31, 2020 | 1,082 | 0 | 3,804 | (1,235) | (1,314) | (174) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | (1) | (1) | |||||
Net income | 436 | 435 | 1 | ||||
Purchases of treasury stock | (34) | (34) | |||||
Special dividend | (79) | 2 | (81) | ||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income, net of tax | 61 | 61 | 0 | ||||
Balance at end of period at Sep. 30, 2021 | 1,465 | 0 | 3,805 | (881) | (1,253) | (208) | 2 |
Balance at beginning of period at Jun. 30, 2021 | 1,387 | 0 | 3,805 | (961) | (1,265) | (194) | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 0 | 0 | |||||
Net income | 80 | 80 | 0 | ||||
Purchases of treasury stock | (14) | (14) | |||||
Other comprehensive income, net of tax | 12 | 12 | 0 | ||||
Balance at end of period at Sep. 30, 2021 | $ 1,465 | $ 0 | $ 3,805 | $ (881) | $ (1,253) | $ (208) | $ 2 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Treasury stock acquired (shares) | 3.3 | 4.8 |
Common Stock | ||
Stock unit awards vested, net of shares forfeited for employee withholding taxes (shares) | 0.4 | 0.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interest | $ 436 | $ 62 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Share-based compensation | 3 | 4 |
Depreciation and amortization | 123 | 125 |
Deferred income taxes | 167 | 55 |
Net pension contributions and other postretirement benefit payments | (71) | (66) |
Net gain on disposition of assets | 0 | (9) |
(Gain) loss on translation of foreign currency denominated deferred income taxes | (7) | 23 |
Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | 6 | (28) |
Net planned major maintenance payments | (15) | (2) |
Changes in working capital: | ||
Accounts receivable | (45) | 20 |
Inventories | (48) | 21 |
Other current assets | (11) | (21) |
Accounts payable and other | 34 | (14) |
Other, net | 8 | 6 |
Net cash provided by operating activities | 580 | 176 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (79) | (53) |
Acquisition of business, net of cash acquired | 0 | (172) |
Disposition of assets | 0 | 9 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (128) | (52) |
Proceeds from insurance settlement | 0 | 15 |
Other investing activities, net | 3 | 5 |
Net cash used in investing activities | (204) | (248) |
Cash flows from financing activities: | ||
Net repayments under revolving credit facilities | 0 | (71) |
Issuance of long-term debt | 300 | 0 |
Payment of special dividend | (79) | 0 |
Proceeds from long-term debt | 0 | 180 |
Repayments of debt | (557) | (1) |
Purchases of treasury stock | (34) | (19) |
Payments of financing fees | (7) | 0 |
Other financing activities, net | 2 | 0 |
Net cash (used in) provided by financing activities | (375) | 89 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 0 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 17 |
Cash and cash equivalents, and restricted cash: | ||
Beginning of period | 159 | 42 |
End of period | 159 | 59 |
Cash and cash equivalents, and restricted cash at end of period: | ||
Cash and cash equivalents | 119 | 20 |
Restricted cash (included in “Other assets”) | $ 40 | $ 39 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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, 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, and paper, which are marketed in over 50 countries. We own or operate some 40 facilities as well as power generation assets, in the U.S. and Canada. Financial statements Our unaudited interim consolidated financial statements and accompanying notes (or, the “ Consolidated Financial Statements ”) 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 (or, “ GAAP ”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the 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, 2021, are not necessarily indicative of the results to be expected for the full year. These Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. Certain prior period amounts in the notes to our Consolidated Financial Statements have been reclassified to conform to the 2021 presentation. New accounting pronouncement adopted in 2021 ASU 2019-12 “Simplifying the Accounting for Income Taxes” Effective January 1, 2021, we adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” issued by the Financial Accounting Standards Board (or, “ FASB ”) in 2019, which removes the specific exceptions to the general principles in ASC 740, “Income Taxes,” and clarifies certain aspects of the existing guidance. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. Accounting pronouncement not yet adopted as of September 30, 2021 ASU 2020-04 “Reference Rate Reform” In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” amended in January by ASU 2021-01, “Reference Rate Reform - Scope,” which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (or, the “ LIBOR ”) or another reference rate expected to be discontinued because of reference rate reform. This update is effective as of March 12, 2020, through December 31, 2022. We are currently evaluating this accounting guidance and have not elected an adoption date. We do not expect this accounting guidance to materially impact our results of operations or financial position. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 2. Other Income (Expense), Net Other income (expense), net for the three and nine months ended September 30, 2021 and 2020, was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Foreign exchange gain (loss) $ 12 $ (5) $ 1 $ 9 Gain (loss) on commodity contracts (1) 1 (11) (85) (7) Insurance recovery (2) — — — 15 Miscellaneous income 7 2 10 7 $ 20 $ (14) $ (74) $ 24 (1) Principally related to lumber futures contracts; none of these contracts were outstanding as of September 30, 2021. (2) We recorded $15 million as other income for the nine months ended September 30, 2020, from the settlement of an insurance claim in connection with our acquisition of Atlas Paper Holdings, Inc. (or, “ Atlas ”) in 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 3. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the three and nine months ended September 30, 2021 and 2020, was as follows: (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2021 $ (4) $ (1,255) $ (6) $ (1,265) Amounts reclassified from accumulated other comprehensive loss — 12 — 12 Net current period other comprehensive income — 12 — 12 Balance as of September 30, 2021 $ (4) $ (1,243) $ (6) $ (1,253) (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2020 $ (1) $ (1,307) $ (6) $ (1,314) Other comprehensive income before reclassifications (1) — 22 — 22 Amounts reclassified from accumulated other comprehensive loss (3) 42 — 39 Net current period other comprehensive (loss) income (3) 64 — 61 Balance as of September 30, 2021 $ (4) $ (1,243) $ (6) $ (1,253) (1) The indefinite idling of the Amos and Baie-Comeau (Quebec) mills triggered curtailment and remeasurement of the pension and other postretirement benefit (or, “ OPEB ”) obligations related to their plans as of March 31, 2021, resulting in a curtailment gain of $8 million and an actuarial gain of $22 million, totaling $30 million ($22 million net of tax). (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2020 $ — $ (1,164) $ (7) $ (1,171) Other comprehensive income before reclassifications — — 1 1 Amounts reclassified from accumulated other comprehensive loss (1) 11 — 10 Net current period other comprehensive (loss) income (1) 11 1 11 Balance as of September 30, 2020 $ (1) $ (1,153) $ (6) $ (1,160) (Unaudited, in millions) Unamortized Prior Service Credits (Costs) Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2019 $ 16 $ (1,189) $ (6) $ (1,179) Amounts reclassified from accumulated other comprehensive loss (17) 36 — 19 Net current period other comprehensive (loss) income (17) 36 — 19 Balance as of September 30, 2020 $ (1) $ (1,153) $ (6) $ (1,160) The reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020, were comprised of the following: Three Months Ended September 30, Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs or Credits Amortization of prior service costs or credits $ — $ (1) $ (2) $ (3) Non-operating pension and other postretirement benefit credits (1) Curtailment gain — — (1) (14) Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above — — — — Income tax provision Net of tax — (1) (3) (17) Unamortized Actuarial Losses Amortization of actuarial losses 16 14 54 43 Non-operating pension and other postretirement benefit credits (1) Other items — — — 3 Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above (4) (3) (12) (10) Income tax provision Net of tax 12 11 42 36 Total Reclassifications $ 12 $ 10 $ 39 $ 19 (1) These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 9, “Employee Benefit Plans.” |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4. Net Income Per Share The reconciliation of the basic and diluted net income per share for the three and nine months ended September 30, 2021 and 2020, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2021 2020 2021 2020 Numerator: Net income attributable to Resolute Forest Products Inc. $ 80 $ 57 $ 435 $ 62 Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 79.4 86.0 80.0 87.4 Dilutive impact of nonvested stock unit awards and stock options 0.7 0.2 0.8 0.2 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 80.1 86.2 80.8 87.6 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.00 $ 0.66 $ 5.44 $ 0.71 Diluted $ 0.99 $ 0.66 $ 5.39 $ 0.71 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 per share, as their impact would have been antidilutive, for the three and nine months ended September 30, 2021 and 2020, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Stock options 0.4 0.9 0.5 0.9 Stock unit awards — 0.6 — 0.7 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 5. Inventories, Net Inventories, net as of September 30, 2021 and December 31, 2020, were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 145 $ 132 Work in process 60 46 Finished goods 133 120 Mill stores and other supplies 171 164 $ 509 $ 462 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 6. Other Assets Other assets include countervailing and anti-dumping duty cash deposits on softwood lumber of $315 million and $56 million, respectively, as of September 30, 2021, and of $194 million and $49 million, respectively, as of December 31, 2020. See Note 11, “Commitments and Contingencies” for more information. |
Accounts Payable and Other
Accounts Payable and Other | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Note 7. Accounts Payable and Other Accounts payable and other as of September 30, 2021 and December 31, 2020, were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 296 $ 251 Accrued compensation 73 76 Accrued interest 2 4 Pension and other postretirement benefit obligations 15 14 Accrued provision related to Fibrek Inc. litigation (Note 11) 21 — Income and other taxes payable 4 5 Other 26 19 $ 437 $ 369 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 8. Long-Term Debt Overview Long-term debt, including current portion, as of September 30, 2021 and December 31, 2020, was comprised of the following: (Unaudited, in millions) September 30, December 31, 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ — Deferred financing costs (6) — Total 4.875% senior unsecured notes due 2026 294 — 5.875% senior unsecured notes due 2023: Principal amount — 375 Deferred financing costs — (2) Unamortized discount — (1) Total 5.875% senior unsecured notes due 2023 — 372 Senior secured credit facility - Term loans due 2030 — 180 Finance lease obligations 7 9 Other debt 2 — Total debt 303 561 Less: Current portion of finance lease obligations and other debt (3) (2) Long-term debt, net of current portion $ 300 $ 559 Senior Unsecured Notes 2026 Notes On February 2, 2021, we issued $300 million aggregate principal amount of 4.875% senior unsecured notes due 2026 (or, the “ 2026 Notes ”) at an issue price of 100%, pursuant to an indenture as of that date (or, the “ Indenture ”). Upon their issuance, the 2026 Notes were recorded at their fair value of $300 million. Interest on the 2026 Notes is payable semi-annually on March 1 and September 1 of each year, beginning on September 1, 2021, until their maturity date of March 1, 2026. In connection with the issuance of the 2026 Notes, we incurred financing costs of $6 million, which were deferred and recorded as a reduction of the principal. Deferred financing costs are amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes. The 2026 Notes are guaranteed by current and future wholly-owned U.S. subsidiaries that guarantee the ABL Credit Facility and the Senior Secured Credit Facility (each, as defined and discussed below). The notes are unsecured and effectively junior to indebtedness under each of the ABL Credit Facility, the Senior Secured Credit Facility, the Loan Facility and future secured indebtedness to the extent of the value of the collateral that secures such indebtedness. In addition, the notes are structurally subordinated to all existing and future indebtedness (including the Loan Facility) and other liabilities of our subsidiaries that do not guarantee the notes, including all our non-U.S. subsidiaries. The terms of the Indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur additional indebtedness or issue certain preferred shares; make dividend payments on or make other distributions in respect of our capital stock or make other restricted payments; make certain investments; sell certain assets; create liens on assets; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and enter into certain transactions with our affiliates. In the event of specified change of control triggering events, we shall be required to offer to repurchase the 2026 Notes at 101% of the principal amount, plus accrued and unpaid interest. On or after March 1, 2023, we may redeem the notes at our option, in whole at any time or in part from time to time, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning March 1) Redemption Price 2023 102.438 % 2024 101.219 % 2025 and thereafter 100.000 % The fair value of the 2026 Notes (Level 1) was $308 million as of September 30, 2021. 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 2023 Notes were recorded at their fair value of $594 million, which reflected a discount of $6 million that was being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the 2023 Notes, resulting in an effective interest rate of 6%. Interest on the 2023 Notes was payable semi-annually beginning November 15, 2013. In connection with the issuance of the 2023 Notes, we incurred financing costs of $9 million, which were deferred and recorded as a reduction of the 2023 Notes. Deferred financing costs were amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the 2023 Notes. On January 3, 2019, we repurchased $225 million in aggregate principal amount of the 2023 Notes, pursuant to a notes purchase agreement entered into on December 21, 2018, with certain noteholders, at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest. On February 2, 2021, we placed the net proceeds from the issuance of the 2026 Notes together with additional cash, into trust for the benefit of the holders of the 2023 Notes to redeem all of the $375 million aggregate principal amount of the 2023 Notes (or, the “Redemption”) at a price of 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The Redemption occurred on February 18, 2021. As a result of the repurchase, we recorded a net loss on extinguishment of debt of $3 million in “Other income (expense), net” in our Consolidated Statement of Operations for the nine months ended September 30, 2021. The fair value of the 2023 Notes (Level 1) was $375 million as of December 31, 2020. Senior Secured Credit Facility On October 28, 2019, we entered into an amended and restated senior secured credit facility for up to $360 million, which provided a term loan facility of up to $180 million and a revolving credit facility of up to $180 million with a maturity date of October 28, 2025, for the latter. In March 2020, we borrowed $180 million in term loans for ten years, maturing in March 2030. On April 19, 2021 (or, the “ Effective Date ”), we entered into a first amendment to the amended and restated senior secured credit facility (or, the “ Senior Secured Credit Facility ”). The amount available under the Senior Secured Credit Facility remains unchanged for up to $360 million and is comprised of a term loan facility of up to $180 million with a delayed draw period of up to three years and the choice of maturities of six Term Loan Facility ”); and a six-year revolving credit facility of up to $180 million (or, the “ Revolving Credit Facility ”). On the Effective Date, we repaid our $180 million term loans under the amended and restated senior secured credit facility with a combination of proceeds of borrowings under the Revolving Credit Facility and cash on hand. The amendment then reinstated the full amount of the Term Loan Facility. There is also an uncommitted option to increase the Senior Secured Credit Facility by up to an additional $360 million, subject to certain terms and conditions. The obligations under the Senior Secured Credit Facility continue to be guaranteed by certain material U.S. subsidiaries of the Company and remain secured by first priority liens on assets of our Calhoun (Tennessee) facility. Interest rates under the Senior Secured Credit Facility are based, at the Company’s election, on either a floating rate based on the LIBOR, or a base rate, in each case plus a spread over the index. In addition, loans under the Term Loan Facility can bear interest at a fixed rate plus a spread. For loans under the Term Loan Facility, the applicable spread ranges from 0.5% to 1.4% for base rate loans, from 1.5% to 2.4% for LIBOR rate loans, and from 1.7% to 2.1% for fixed rate loans. For the Revolving Credit Facility, the applicable spread ranges from 0.5% to 1.0% for base rate loans, and from 1.5% to 2.0% for LIBOR rate loans. The amended credit agreement contains customary covenants, representations and warranties, and events of default. As of September 30, 2021, we had $180 million of availability under the Term Loan Facility and $180 million of availability under the Revolving Credit Facility, which were undrawn. The fair values of the term loans (Level 2) approximated their carrying values and were bearing interest at LIBOR plus a spread of 2.13% as of December 31, 2020. ABL Credit Facility On May 14, 2019, we entered into an amended senior secured asset-based revolving credit facility (or, the “ ABL Credit Facility ”) with an aggregate lender commitment of up to $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. The amended credit agreement provides for an extension of the maturity date to May 14, 2024. Effective January 21, 2021, we reduced the commitment under the Canadian tranche of our senior secured asset-based revolving credit facility by $50 million, to $250 million, resulting in an aggregate commitment of $450 million, subject to borrowing base limitations. The obligations under the ABL Credit Facility are guaranteed by certain of our material subsidiaries. As of September 30, 2021, we had $278 million of borrowing base availability under the ABL Credit Facility, which was undrawn except for $74 million of ordinary course letters of credit outstanding. Loan Facility On November 4, 2020, our Canadian subsidiary, Resolute FP Canada Inc., entered into a secured delayed draw term loan facility (or, the “ Loan Facility ”) with Investissement Québec as lender for up to C$220 million ($173 million as of September 30, 2021), subject to borrowing base availability based on 75% of the countervailing and anti-dumping duty deposits imposed by the U.S. Department of Commerce and collected by Customs and Border Protection Agency on U.S. imports of applicable softwood lumber products produced at sawmills of the Borrower and its affiliates located in the province of Quebec, Canada from April 28, 2017 to December 31, 2022. The Loan Facility will bear interest at a floating rate equal to 1.45% above the one month Canadian banker’s acceptance rate. The principal shall be repayable in monthly installments over a period of eight years after an interest only period of two years from the date of the first draw. The Loan Facility is subject to prepayment requirements under certain conditions and may be repaid earlier without premium or penalty, but subject to prepayment of accrued and unpaid interest. The Loan Facility provides for a maximum of ten draws and the fulfillment of certain conditions upon each draw. Borrowings are subject to certain restrictions. As of September 30, 2021, we had C$220 million ($173 million) of borrowing base availability under the Loan Facility , which was undrawn. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 9. Employee Benefit Plans Pension and other postretirement benefit plans The components of net periodic benefit costs (credits) relating to our pension and OPEB plans for the three and nine months ended September 30, 2021 and 2020, were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Interest cost $ 33 $ 38 $ 100 $ 112 Expected return on plan assets (53) (57) (162) (168) Amortization of actuarial losses 18 15 59 47 Amortization of prior service costs 1 — 1 — Non-operating pension credits (1) (4) (2) (9) Service cost 4 4 12 11 Net periodic benefit costs before special events 3 — 10 2 Other (gain) loss — — (1) 3 $ 3 $ — $ 9 $ 5 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Interest cost $ 1 $ 1 $ 3 $ 3 Amortization of actuarial gains (2) (1) (5) (4) Amortization of prior service credits (1) (1) (3) (3) Non-operating other postretirement benefit credits (2) (1) (5) (4) Service cost 1 (1) 1 — Net periodic benefit credits before special events (1) (2) (4) (4) Curtailment gain — — — (14) $ (1) $ (2) $ (4) $ (18) Defined contribution plans Our expense for the defined contribution plans totaled $5 million and $4 million for the three months ended September 30, 2021 and 2020, respectively, and $14 million and $12 million for the nine months ended September 30, 2021 and 2020, respectively. U.S. pension funding |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The income tax provision attributable to income 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, 2021 and 2020, as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Income before income taxes $ 120 $ 80 $ 603 $ 117 Income tax provision: Expected income tax provision (26) (17) (127) (25) Changes resulting from: Valuation allowance on our U.S. operations 11 (5) 89 (21) Foreign exchange (5) 2 (2) (8) U.S. tax on non-U.S. earnings (13) (1) (96) (1) State income taxes, net of federal income tax benefit (1) 1 1 3 Foreign tax rate differences (6) (5) (33) (10) Other, net (1) — 2 1 7 $ (40) $ (23) $ (167) $ (55) (1) Includes $4 million for the nine months ended September 30, 2020, related to the settlement of an insurance claim in connection with our acquisition of Atlas. During the three and nine months ended September 30, 2021, we used $11 million and $89 million, respectively, of deferred income tax assets that were fully reserved to offset the tax implications relating to the global intangible low-taxed income inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Legal matters We become involved in various legal proceedings, claims and governmental inquiries, investigations, 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, product safety and liability, asbestos exposure, financial reporting and disclosure obligations, corporate governance, Indigenous peoples’ claims, antitrust, governmental regulations, 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. Any recovery from litigation or settlement of claims that is a gain contingency is recognized if, and when, realized or realizable. 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, 2021, will not have a material adverse effect on our Consolidated Financial Statements. Asbestos-related lawsuits We are involved in a number of asbestos-related lawsuits filed primarily in U.S. state courts, including certain cases involving multiple defendants. These lawsuits principally allege direct or indirect personal injury or death resulting from exposure to asbestos-containing premises. While we dispute the plaintiffs’ allegations and intend to vigorously defend these claims, the ultimate resolution of these matters cannot be determined at this time. These lawsuits frequently involve claims for unspecified compensatory and punitive damages, and we are unable to reasonably estimate a range of possible losses. However, unfavorable rulings, judgments or settlement terms could materially impact our Consolidated Financial Statements. Hearings for certain of these matters are scheduled to occur in the next 12 months. Countervailing duty and anti-dumping investigations on softwood lumber On November 25, 2016, 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 certain U.S. softwood lumber products producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petitions as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations. Countervailing Duties – On April 24, 2017, Commerce announced its preliminary determination in the countervailing investigation; as a result, from April 28, 2017 to August 25, 2017, we were required to pay cash deposits to the U.S. Customs and Border Protection agency (or, “ U.S. Customs ”) at a rate of 12.82% for countervailing duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the countervailing investigation; as a result, from December 28, 2017 to November 30, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 14.70%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the countervailing investigation; as a result, since December 1, 2020, we have been required to pay cash deposits to U.S. Customs at new rate of 19.10%. Commerce is expected to issue its final determination in the second administrative review of the countervailing investigation in November 2021, following which a new rate will take effect for Resolute; this new rate was estimated at 18.17% in a non-binding, preliminary determination issued on May 21, 2021, but is subject to modification in the upcoming final determination. During the nine months ended September 30, 2021, we made additional cash deposits of $121 million, bringing our total to $315 million. Antidumping Duties – On June 26, 2017, Commerce announced its preliminary determination in the anti-dumping investigation; as a result, from June 30, 2017 to November 7, 2017, we were required to pay cash deposits to U.S. Customs at a rate of 4.59% for anti-dumping duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the anti-dumping investigation; as a result, from November 8, 2017 to November 29, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 3.20%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the anti-dumping investigation; as a result, since November 30, 2020, we have been required to pay cash deposits to U.S. Customs at a new rate of 1.15%. Commerce is expected to issue its final determination in the second administrative review of the anti-dumping investigation in November 2021, following which a new rate will take effect for Resolute; this new rate was estimated at 12.05% in a non-binding, preliminary determination issued on May 21, 2021, but is subject to modification in the upcoming final determination. During the nine months ended September 30, 2021, we made additional cash deposits of $7 million, bringing our total to $56 million. Ongoing Administrative Reviews – Following Commerce’s completion of the Canadian softwood lumber investigation and first administrative review, two further administrative reviews remain pending. On March 10, 2020, Commerce published a notice initiating the second administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the second administrative review of the countervailing duty order and we have completed our answers to Commerce with the information requested. On March 4, 2021, Commerce published a notice initiating the third administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the third administrative review of the countervailing duty order and we have responded to Commerce with the information requested to date. Ongoing Appellate Reviews – On December 14, 2017 and January 4, 2018, we filed complaints supporting appellate reviews of the final results of Commerce’s countervailing and antidumping investigations on softwood lumber from Canada, respectively, before a binational panel formed pursuant to the North American Free Trade Agreement or United States-Mexico-Canada Agreement, as the case may be (or, “ Panel ”). Briefing for these appeals has been completed, and the constitution of the Panel reviewing countervailing duties was announced on August 24, 2021; the hearing in this matter is scheduled to occur in March 2022. Further, on January 6, 2021 and January 19, 2021, we filed our complaints supporting appellate Panel reviews of the final results in the countervailing and antidumping first administrative reviews. Briefing for these appeals has also been completed; we are awaiting the constitution of the Panel in both instances. ITC Injury Determination – In parallel, on December 28, 2017, the ITC published its affirmative final injury determinations in the antidumping and countervailing investigations on softwood lumber from Canada. On September 4, 2019, a Panel issued an interim decision upholding the affirmative final injury determinations of the ITC in both investigations of softwood lumber products from Canada. The Panel remanded the ITC to reconsider several findings and ordered the ITC to submit its redetermination on remand within 90 days from the date of the Panel interim decision. On December 19, 2019, the ITC issued its redetermination on remand that maintained the affirmative final injury determinations, and on May 22, 2020, the Panel issued its final decision and affirmed in its entirety the ITC’s injury determination on remand. WTO Appeal – In addition, on August 24, 2020, the World Trade Organization’s (or, “ WTO ”) dispute panel issued a report (or, the “ Panel Report ”) in the case brought by the government of Canada in “United States — Countervailing Measures on Softwood Lumber from Canada” (DS533), concluding, among other things, that Commerce acted inconsistently with the Agreement on Subsidies and Countervailing Measures on most of the matters. On September 28, 2020, the United States notified the WTO’s dispute settlement body of its decision to appeal the Panel Report. 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 products. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statements of Operations, and our cash deposits are recorded in “Other assets” in our Consolidated Balance Sheets. Fibrek acquisition Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.40% of the outstanding Fibrek Inc. shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order by the Quebec Superior Court in Canada (or, the “ Quebec Superior Court ”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised 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 . On September 26, 2019, the Quebec Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at C$1.99 per share, or C$31 million in aggregate, plus interest and an additional indemnity, for a total then estimated at C$44 million payable in cash. We had previously accrued C$14 million for the payment of the dissenting shareholders’ claims. Following the court decision, we accrued an additional C$30 million ($23 million). Of the total amount of C$44 million, C$19 million ($14 million) was payable immediately and paid on October 2, 2019. The remaining balance of C$27 million ($21 million) as of September 30, 2021 and C$26 million ($20 million) as of December 31, 2020, which includes accrued interest, is recorded in “Accounts payable and other” as of September 30, 2021, and in “Other liabilities” as of December 31, 2020, in our Consolidated Balance Sheets. We are appealing the decision, therefore the payment of any additional consideration and its timing will depend on the outcome of the appeal. On November 13, 2019, a legal hypothec in the amount of C$30 million was registered on our Saint-Félicien (Quebec) immovable and movable property to secure the payment of any additional amounts following the outcome of the appeal. The hearing in this matter is expected to occur in the next 12 months. 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 C$150 million ($118 million), would have to be funded if we do not obtain the relief sought. The hearing in this matter has not yet been scheduled but could occur in the next 12 months. Environmental matters We are subject to a number of federal or national, state, provincial, and local environmental laws, regulations, and orders in various jurisdictions. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated and orders issued 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 have environmental liabilities of $13 million and $15 million recorded as of September 30, 2021 and December 31, 2020, respectively, primarily related to environmental remediation, assessment, monitoring and management related to closed or idled 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. We also have asset retirement obligations of $36 million and $25 million recorded as of September 30, 2021 and December 31, 2020, respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and other” and “Other liabilities” in our Consolidated Balance Sheets. |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Share Capital | Note 12. Share Capital Treasury stock On March 2, 2020, our board of directors authorized a share repurchase program of up to 15% of our common stock, for an aggregate consideration of up to $100 million. During the three and nine months ended September 30, 2021, we repurchased 1.2 million shares at an average price of $10.95 for a total of $14 million and 3.3 million shares at an average price of $10.22 for a total of $34 million, respectively. During the three and nine months ended September 30, 2020, we repurchased 4.5 million shares at an average price of $4.12 for a total of $18 million and 4.8 million shares at an average price of $4.01 for a total of $19 million, respectively. Dividends We declared a special dividend of $1.00 per share ($79 million) on our common stock during the nine months ended September 30, 2021. The special dividend was paid to shareholders on July 7, 2021. We did not declare or pay any dividends on our common stock during the nine months ended September 30, 2020. Under some of our compensation plans, participants are credited additional units when a dividend is declared. The impact of the special dividend was as follows: for the nine months ended September 30, 2021, $3 million was recognized as a compensation expense, and $2 million as an increase in deficit and in additional paid-in capital; and $3 million as an increase in liabilities as of September 30, 2021. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13. 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, and paper. None of the income or loss items following “Operating income” 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, 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, 2021 and 2020, was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales Third quarter 2021 $ 234 $ 38 $ 293 $ 252 $ 817 $ — $ 817 2020 $ 161 $ 39 $ 322 $ 208 $ 730 $ — $ 730 First nine months 2021 $ 609 $ 115 $ 1,387 $ 719 $ 2,830 $ — $ 2,830 2020 $ 499 $ 132 $ 695 $ 705 $ 2,031 $ — $ 2,031 Depreciation and amortization Third quarter 2021 $ 6 $ 5 $ 11 $ 15 $ 37 $ 5 $ 42 2020 $ 6 $ 4 $ 11 $ 18 $ 39 $ 4 $ 43 First nine months 2021 $ 18 $ 14 $ 32 $ 46 $ 110 $ 13 $ 123 2020 $ 18 $ 13 $ 32 $ 51 $ 114 $ 11 $ 125 Operating income (loss) Third quarter 2021 $ 46 $ (9) $ 64 $ 16 $ 117 $ (15) $ 102 2020 $ (4) $ 2 $ 128 $ (12) $ 114 $ (17) $ 97 First nine months 2021 $ 80 $ (18) $ 690 $ (15) $ 737 $ (52) $ 685 2020 $ 3 $ 2 $ 148 $ (27) $ 126 $ (31) $ 95 (1) Inter-segment sales were $7 million and $8 million for the three months ended September 30, 2021 and 2020, respectively, and $22 million for the nine months ended September 30, 2021 and 2020. These inter-segment sales, which were transacted at either the lowest market price of the previous month or cost, were excluded from market pulp sales. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial statements | Financial statements Our unaudited interim consolidated financial statements and accompanying notes (or, the “ Consolidated Financial Statements ”) 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 (or, “ GAAP ”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the 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, 2021, are not necessarily indicative of the results to be expected for the full year. These Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. Certain prior period amounts in the notes to our Consolidated Financial Statements have been reclassified to conform to the 2021 presentation. |
New accounting pronouncements adopted and Accounting pronouncement not yet adopted | New accounting pronouncement adopted in 2021 ASU 2019-12 “Simplifying the Accounting for Income Taxes” Effective January 1, 2021, we adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” issued by the Financial Accounting Standards Board (or, “ FASB ”) in 2019, which removes the specific exceptions to the general principles in ASC 740, “Income Taxes,” and clarifies certain aspects of the existing guidance. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. Accounting pronouncement not yet adopted as of September 30, 2021 ASU 2020-04 “Reference Rate Reform” In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform,” amended in January by ASU 2021-01, “Reference Rate Reform - Scope,” which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (or, the “ LIBOR ”) or another reference rate expected to be discontinued because of reference rate reform. This update is effective as of March 12, 2020, through December 31, 2022. We are currently evaluating this accounting guidance and have not elected an adoption date. We do not expect this accounting guidance to materially impact our results of operations or financial position. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Other income (expense), net for the three and nine months ended September 30, 2021 and 2020, was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Foreign exchange gain (loss) $ 12 $ (5) $ 1 $ 9 Gain (loss) on commodity contracts (1) 1 (11) (85) (7) Insurance recovery (2) — — — 15 Miscellaneous income 7 2 10 7 $ 20 $ (14) $ (74) $ 24 (1) Principally related to lumber futures contracts; none of these contracts were outstanding as of September 30, 2021. (2) We recorded $15 million as other income for the nine months ended September 30, 2020, from the settlement of an insurance claim in connection with our acquisition of Atlas Paper Holdings, Inc. (or, “ Atlas ”) in 2015. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the three and nine months ended September 30, 2021 and 2020, was as follows: (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2021 $ (4) $ (1,255) $ (6) $ (1,265) Amounts reclassified from accumulated other comprehensive loss — 12 — 12 Net current period other comprehensive income — 12 — 12 Balance as of September 30, 2021 $ (4) $ (1,243) $ (6) $ (1,253) (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2020 $ (1) $ (1,307) $ (6) $ (1,314) Other comprehensive income before reclassifications (1) — 22 — 22 Amounts reclassified from accumulated other comprehensive loss (3) 42 — 39 Net current period other comprehensive (loss) income (3) 64 — 61 Balance as of September 30, 2021 $ (4) $ (1,243) $ (6) $ (1,253) (1) The indefinite idling of the Amos and Baie-Comeau (Quebec) mills triggered curtailment and remeasurement of the pension and other postretirement benefit (or, “ OPEB ”) obligations related to their plans as of March 31, 2021, resulting in a curtailment gain of $8 million and an actuarial gain of $22 million, totaling $30 million ($22 million net of tax). (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2020 $ — $ (1,164) $ (7) $ (1,171) Other comprehensive income before reclassifications — — 1 1 Amounts reclassified from accumulated other comprehensive loss (1) 11 — 10 Net current period other comprehensive (loss) income (1) 11 1 11 Balance as of September 30, 2020 $ (1) $ (1,153) $ (6) $ (1,160) (Unaudited, in millions) Unamortized Prior Service Credits (Costs) Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2019 $ 16 $ (1,189) $ (6) $ (1,179) Amounts reclassified from accumulated other comprehensive loss (17) 36 — 19 Net current period other comprehensive (loss) income (17) 36 — 19 Balance as of September 30, 2020 $ (1) $ (1,153) $ (6) $ (1,160) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020, were comprised of the following: Three Months Ended September 30, Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs or Credits Amortization of prior service costs or credits $ — $ (1) $ (2) $ (3) Non-operating pension and other postretirement benefit credits (1) Curtailment gain — — (1) (14) Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above — — — — Income tax provision Net of tax — (1) (3) (17) Unamortized Actuarial Losses Amortization of actuarial losses 16 14 54 43 Non-operating pension and other postretirement benefit credits (1) Other items — — — 3 Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above (4) (3) (12) (10) Income tax provision Net of tax 12 11 42 36 Total Reclassifications $ 12 $ 10 $ 39 $ 19 (1) These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 9, “Employee Benefit Plans.” |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Net Income (Loss) Per Share | The reconciliation of the basic and diluted net income per share for the three and nine months ended September 30, 2021 and 2020, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2021 2020 2021 2020 Numerator: Net income attributable to Resolute Forest Products Inc. $ 80 $ 57 $ 435 $ 62 Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 79.4 86.0 80.0 87.4 Dilutive impact of nonvested stock unit awards and stock options 0.7 0.2 0.8 0.2 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 80.1 86.2 80.8 87.6 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.00 $ 0.66 $ 5.44 $ 0.71 Diluted $ 0.99 $ 0.66 $ 5.39 $ 0.71 |
Schedule of Outstanding Weighted-Average Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs | The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “ stock unit awards ”) that were excluded from the calculation of diluted net income per share, as their impact would have been antidilutive, for the three and nine months ended September 30, 2021 and 2020, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Stock options 0.4 0.9 0.5 0.9 Stock unit awards — 0.6 — 0.7 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net as of September 30, 2021 and December 31, 2020, were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 145 $ 132 Work in process 60 46 Finished goods 133 120 Mill stores and other supplies 171 164 $ 509 $ 462 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of September 30, 2021 and December 31, 2020, were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 296 $ 251 Accrued compensation 73 76 Accrued interest 2 4 Pension and other postretirement benefit obligations 15 14 Accrued provision related to Fibrek Inc. litigation (Note 11) 21 — Income and other taxes payable 4 5 Other 26 19 $ 437 $ 369 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of September 30, 2021 and December 31, 2020, was comprised of the following: (Unaudited, in millions) September 30, December 31, 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ — Deferred financing costs (6) — Total 4.875% senior unsecured notes due 2026 294 — 5.875% senior unsecured notes due 2023: Principal amount — 375 Deferred financing costs — (2) Unamortized discount — (1) Total 5.875% senior unsecured notes due 2023 — 372 Senior secured credit facility - Term loans due 2030 — 180 Finance lease obligations 7 9 Other debt 2 — Total debt 303 561 Less: Current portion of finance lease obligations and other debt (3) (2) Long-term debt, net of current portion $ 300 $ 559 |
Schedule of Debt Redemption Prices | On or after March 1, 2023, we may redeem the notes at our option, in whole at any time or in part from time to time, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning March 1) Redemption Price 2023 102.438 % 2024 101.219 % 2025 and thereafter 100.000 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit costs (credits) relating to our pension and OPEB plans for the three and nine months ended September 30, 2021 and 2020, were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Interest cost $ 33 $ 38 $ 100 $ 112 Expected return on plan assets (53) (57) (162) (168) Amortization of actuarial losses 18 15 59 47 Amortization of prior service costs 1 — 1 — Non-operating pension credits (1) (4) (2) (9) Service cost 4 4 12 11 Net periodic benefit costs before special events 3 — 10 2 Other (gain) loss — — (1) 3 $ 3 $ — $ 9 $ 5 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Interest cost $ 1 $ 1 $ 3 $ 3 Amortization of actuarial gains (2) (1) (5) (4) Amortization of prior service credits (1) (1) (3) (3) Non-operating other postretirement benefit credits (2) (1) (5) (4) Service cost 1 (1) 1 — Net periodic benefit credits before special events (1) (2) (4) (4) Curtailment gain — — — (14) $ (1) $ (2) $ (4) $ (18) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax provision attributable to income 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, 2021 and 2020, as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2021 2020 2021 2020 Income before income taxes $ 120 $ 80 $ 603 $ 117 Income tax provision: Expected income tax provision (26) (17) (127) (25) Changes resulting from: Valuation allowance on our U.S. operations 11 (5) 89 (21) Foreign exchange (5) 2 (2) (8) U.S. tax on non-U.S. earnings (13) (1) (96) (1) State income taxes, net of federal income tax benefit (1) 1 1 3 Foreign tax rate differences (6) (5) (33) (10) Other, net (1) — 2 1 7 $ (40) $ (23) $ (167) $ (55) (1) Includes $4 million for the nine months ended September 30, 2020, related to the settlement of an insurance claim in connection with our acquisition of Atlas. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three and nine months ended September 30, 2021 and 2020, was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales Third quarter 2021 $ 234 $ 38 $ 293 $ 252 $ 817 $ — $ 817 2020 $ 161 $ 39 $ 322 $ 208 $ 730 $ — $ 730 First nine months 2021 $ 609 $ 115 $ 1,387 $ 719 $ 2,830 $ — $ 2,830 2020 $ 499 $ 132 $ 695 $ 705 $ 2,031 $ — $ 2,031 Depreciation and amortization Third quarter 2021 $ 6 $ 5 $ 11 $ 15 $ 37 $ 5 $ 42 2020 $ 6 $ 4 $ 11 $ 18 $ 39 $ 4 $ 43 First nine months 2021 $ 18 $ 14 $ 32 $ 46 $ 110 $ 13 $ 123 2020 $ 18 $ 13 $ 32 $ 51 $ 114 $ 11 $ 125 Operating income (loss) Third quarter 2021 $ 46 $ (9) $ 64 $ 16 $ 117 $ (15) $ 102 2020 $ (4) $ 2 $ 128 $ (12) $ 114 $ (17) $ 97 First nine months 2021 $ 80 $ (18) $ 690 $ (15) $ 737 $ (52) $ 685 2020 $ 3 $ 2 $ 148 $ (27) $ 126 $ (31) $ 95 (1) Inter-segment sales were $7 million and $8 million for the three months ended September 30, 2021 and 2020, respectively, and $22 million for the nine months ended September 30, 2021 and 2020. These inter-segment sales, which were transacted at either the lowest market price of the previous month or cost, were excluded from market pulp sales. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Narrative (Details) | Sep. 30, 2021countrysite |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | country | 50 |
Number of manufacturing facilities (approximate) | site | 40 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange gain (loss) | $ 12 | $ (5) | $ 1 | $ 9 |
Gain (loss) on commodity contracts | 1 | (11) | (85) | (7) |
Insurance recovery | 0 | 0 | 0 | 15 |
Miscellaneous income | 7 | 2 | 10 | 7 |
Other income (expense), net | $ 20 | $ (14) | $ (74) | 24 |
Accrued legal costs | $ 15 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 1,387 | $ 1,250 | $ 1,082 | $ 1,235 |
Other comprehensive income before reclassifications | 22 | |||
Amounts reclassified from accumulated other comprehensive loss | 12 | 10 | 39 | 19 |
Other comprehensive income, net of tax | 12 | 11 | 61 | 19 |
Balance at end of period | 1,465 | 1,300 | 1,465 | 1,300 |
Curtailment gain | 8 | |||
Curtailment and actuarial gain, before tax | 30 | |||
Curtailment and actuarial gain, net of tax | 22 | |||
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (1,265) | (1,171) | (1,314) | (1,179) |
Other comprehensive income before reclassifications | 1 | |||
Other comprehensive income, net of tax | 12 | 11 | 61 | 19 |
Balance at end of period | (1,253) | (1,160) | (1,253) | (1,160) |
Unamortized Prior Service Costs | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (4) | 0 | (1) | 16 |
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | (1) | (3) | (17) |
Other comprehensive income, net of tax | 0 | (1) | (3) | (17) |
Balance at end of period | (4) | (1) | (4) | (1) |
Unamortized Actuarial Losses | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (1,255) | (1,164) | (1,307) | (1,189) |
Other comprehensive income before reclassifications | 0 | 22 | ||
Amounts reclassified from accumulated other comprehensive loss | 12 | 11 | 42 | 36 |
Other comprehensive income, net of tax | 12 | 11 | 64 | 36 |
Balance at end of period | (1,243) | (1,153) | (1,243) | (1,153) |
Actuarial gain | 22 | |||
Foreign Currency Translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (6) | (7) | (6) | (6) |
Other comprehensive income before reclassifications | 1 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax | 0 | 1 | 0 | 0 |
Balance at end of period | $ (6) | $ (6) | $ (6) | $ (6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Curtailment gain | $ (8) | |||
Income tax effect of the above | (40) | $ (23) | $ (167) | $ (55) |
Total reclassification, net of tax | 80 | 57 | 435 | 62 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassification, net of tax | 12 | 10 | 39 | 19 |
Unamortized Prior Service Costs | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service costs or credits | 0 | (1) | (2) | (3) |
Curtailment gain | 0 | 0 | (1) | (14) |
Income tax effect of the above | 0 | 0 | 0 | 0 |
Total reclassification, net of tax | 0 | (1) | (3) | (17) |
Unamortized Actuarial Losses | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
losses | (16) | (14) | (54) | (43) |
Other items | 0 | 0 | 0 | 3 |
Income tax effect of the above | (4) | (3) | (12) | (10) |
Total reclassification, net of tax | $ 12 | $ 11 | $ 42 | $ 36 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Weighted-Average Outstanding Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Resolute Forest Products Inc. | $ 80 | $ 57 | $ 435 | $ 62 |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 79.4 | 86 | 80 | 87.4 |
Dilutive impact of nonvested stock unit awards and stock options (shares) | 0.7 | 0.2 | 0.8 | 0.2 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 80.1 | 86.2 | 80.8 | 87.6 |
Basic (USD per share) | $ 1 | $ 0.66 | $ 5.44 | $ 0.71 |
Diluted (USD per share) | $ 0.99 | $ 0.66 | $ 5.39 | $ 0.71 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 0.4 | 0.9 | 0.5 | 0.9 |
Stock unit awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0.6 | 0 | 0.7 |
Inventories, Net - Summary (Det
Inventories, Net - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 145 | $ 132 |
Work in process | 60 | 46 |
Finished goods | 133 | 120 |
Mill stores and other supplies | 171 | 164 |
Inventories, net | $ 509 | $ 462 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Accumulated countervailing cash deposits made on softwood lumber exports | $ 315 | $ 194 |
Accumulated anti-dumping cash deposits made on softwood lumber exports | $ 56 | $ 49 |
Accounts Payable and Other - Su
Accounts Payable and Other - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 296 | $ 251 |
Accrued compensation | 73 | 76 |
Accrued interest | 2 | 4 |
Pension and other postretirement benefit obligations | 15 | 14 |
Accrued provision related to Fibrek Inc. litigation (Note 11) | 21 | 0 |
Income and other taxes payable | 4 | 5 |
Other | 26 | 19 |
Accounts payable and accrued liabilities | $ 437 | $ 369 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt, including Current Portion (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | May 08, 2013 |
Debt Instrument [Line Items] | ||||
Finance lease obligations | $ 7 | $ 9 | ||
Other debt | 2 | 0 | ||
Total debt | 303 | 561 | ||
Less: Current portion of finance lease obligations and other debt | (3) | (2) | ||
Long-term debt, net of current portion | 300 | 559 | ||
Senior Notes | Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 300 | 0 | ||
Deferred financing costs | (6) | 0 | ||
Net carrying amount | 294 | 0 | ||
Interest rate of notes (as a percent) | 4.875% | |||
Senior Notes | Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 0 | 375 | ||
Deferred financing costs | 0 | (2) | ||
Unamortized discount | 0 | (1) | ||
Net carrying amount | 0 | 372 | ||
Interest rate of notes (as a percent) | 5.875% | |||
Secured Debt | Term Loans due 2030 | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 0 | $ 180 |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes (Details) - Senior Notes - USD ($) | Feb. 02, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Jan. 03, 2019 | May 08, 2013 |
Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 300,000,000 | ||||
Interest rate of notes (as a percent) | 4.875% | ||||
Issue price (as a percent) | 100.00% | ||||
Fair value of senior notes | $ 300,000,000 | $ 308,000,000 | |||
Deferred financing costs | $ 6,000,000 | ||||
Redemption price (as a percent) | 101.00% | ||||
Senior Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 600,000,000 | ||||
Interest rate of notes (as a percent) | 5.875% | ||||
Fair value of senior notes | $ 375,000,000 | $ 375,000,000 | $ 594,000,000 | ||
Deferred financing costs | 9,000,000 | ||||
Redemption price (as a percent) | 100.00% | ||||
Unamortized discount | $ 6,000,000 | ||||
Effective interest rate of debt (as a percent) | 6.00% | ||||
Debt Instrument, repurchased face amount | $ 225,000,000 | ||||
Purchase price to principal amount (as a percent) | 100.00% | ||||
Loss on extinguishment of debt | $ 3,000,000 |
Long-Term Debt - Redemption Pri
Long-Term Debt - Redemption Price (Details) - Senior Notes - Senior Notes due 2026 | 9 Months Ended |
Sep. 30, 2021 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 101.00% |
2023 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 102.438% |
2024 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 101.219% |
2025 and thereafter | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 100.00% |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - USD ($) | Apr. 19, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2021 | Oct. 28, 2019 |
Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 360,000,000 | ||||
Senior Secured Credit Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | 180,000,000 | ||||
Available credit facility borrowing capacity | $ 180,000,000 | ||||
Senior Secured Credit Facility | Secured Debt | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 180,000,000 | ||||
Debt instrument, term | 10 years | ||||
Senior Secured Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 180,000,000 | ||||
Available credit facility borrowing capacity | $ 180,000,000 | ||||
Senior Secured Credit Facility | Line of Credit | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 2.13% | ||||
Amended Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 360,000,000 | ||||
Amended Senior Secured Credit Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 180,000,000 | ||||
Delay draw period of debt instrument | 3 years | ||||
Amended Senior Secured Credit Facility | Secured Debt | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Repayment of debt | $ 180,000,000 | ||||
Amended Senior Secured Credit Facility | Secured Debt | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 6 years | ||||
Interest rate for fixed rate loans (as a percent) | 1.70% | ||||
Amended Senior Secured Credit Facility | Secured Debt | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, term | 10 years | ||||
Interest rate for fixed rate loans (as a percent) | 2.10% | ||||
Amended Senior Secured Credit Facility | Secured Debt | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% | ||||
Amended Senior Secured Credit Facility | Secured Debt | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 2.40% | ||||
Amended Senior Secured Credit Facility | Secured Debt | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 0.50% | ||||
Amended Senior Secured Credit Facility | Secured Debt | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.40% | ||||
Amended Senior Secured Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 180,000,000 | ||||
Debt instrument, term | 6 years | ||||
Uncommitted ability to increase borrowing capacity, maximum | $ 360,000,000 | ||||
Amended Senior Secured Credit Facility | Line of Credit | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% | ||||
Amended Senior Secured Credit Facility | Line of Credit | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 2.00% | ||||
Amended Senior Secured Credit Facility | Line of Credit | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 0.50% | ||||
Amended Senior Secured Credit Facility | Line of Credit | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.00% |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility - USD ($) | Jan. 21, 2021 | Sep. 30, 2021 | May 14, 2019 |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity of credit facility | $ 450,000,000 | $ 500,000,000 | |
Available credit facility borrowing capacity | $ 278,000,000 | ||
Letters of credit amount outstanding | $ 74,000,000 | ||
Canadian Tranche of Senior Secured Asset-Based Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity of credit facility | 250,000,000 | ||
Increase (decrease) in borrowings | $ 50,000,000 |
Long-Term Debt - Loan Facility
Long-Term Debt - Loan Facility (Details) - Loan Facility | Nov. 04, 2020CAD ($)draw | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity of credit facility | $ 220,000,000 | $ 173,000,000 | |
Maximum borrowing capacity, proportion representing countervailing and anti-dumping duty deposits (as a percent) | 75.00% | ||
Period of repayment in consecutive monthly installments | 8 years | ||
Interest-only payment period | 2 years | ||
Number of draws available | 10 | ||
Available credit facility borrowing capacity | $ 173,000,000 | $ 220,000,000 | |
Canadian Banker's Acceptance Rate | |||
Line of Credit Facility [Line Items] | |||
Interest rate margin applicable to borrowings (as a percent) | 1.45% |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-operating pension and other postretirement benefit costs (credits) | $ (3) | $ (5) | $ (8) | $ (24) |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 33 | 38 | 100 | 112 |
Expected return on plan assets | (53) | (57) | (162) | (168) |
Amortization of actuarial losses | 18 | 15 | 59 | 47 |
Amortization of prior service costs (credits) | 1 | 0 | 1 | 0 |
Non-operating pension and other postretirement benefit costs (credits) | (1) | (4) | (2) | (9) |
Service cost | 4 | 4 | 12 | 11 |
Net periodic benefit costs (credits) before special events | 3 | 0 | 10 | 2 |
Other (gain) loss and curtailment gain | 0 | 0 | (1) | 3 |
Net periodic benefit cost | 3 | 0 | 9 | 5 |
OPEB Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 1 | 3 | 3 |
Amortization of actuarial losses | (2) | (1) | (5) | (4) |
Amortization of prior service costs (credits) | (1) | (1) | (3) | (3) |
Non-operating pension and other postretirement benefit costs (credits) | (2) | (1) | (5) | (4) |
Service cost | 1 | (1) | 1 | 0 |
Net periodic benefit costs (credits) before special events | (1) | (2) | (4) | (4) |
Other (gain) loss and curtailment gain | 0 | 0 | 0 | (14) |
Net periodic benefit cost | $ (1) | $ (2) | $ (4) | $ (18) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Expense for the defined contribution plans | $ 5 | $ 4 | $ 14 | $ 12 |
Reduction in estimated contributions due to the Act | $ (13) | $ (13) |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 120 | $ 80 | $ 603 | $ 117 |
Income tax provision: | ||||
Expected income tax provision | (26) | (17) | (127) | (25) |
Changes resulting from: | ||||
Valuation allowance on our U.S. operations | 11 | (5) | 89 | (21) |
Foreign exchange | (5) | 2 | (2) | (8) |
U.S. tax on non-U.S. earnings | (13) | (1) | (96) | (1) |
State income taxes, net of federal income tax benefit | (1) | 1 | 1 | 3 |
Foreign tax rate differences | (6) | (5) | (33) | (10) |
Other, net | 0 | 2 | 1 | 7 |
Income tax provision | (40) | (23) | (167) | (55) |
Effective income tax rate reconciliation nondeductible expense insurance recovery amount | $ 4 | $ 4 | ||
Deferred income tax assets used | $ 11 | $ 89 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ / shares in Units, $ in Millions, $ in Millions | May 20, 2021 | Apr. 28, 2017 | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Sep. 30, 2021CAD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 01, 2020 | Nov. 30, 2020 | Sep. 30, 2020USD ($) | Nov. 13, 2019CAD ($) | Nov. 02, 2017 | Jun. 30, 2017 | Jul. 31, 2012 |
Loss Contingencies [Line Items] | ||||||||||||||
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 18.17% | 12.82% | ||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 19.10% | 14.70% | ||||||||||||
Additional countervailing cash deposits made on softwood lumber exports | $ 121 | |||||||||||||
Accumulated countervailing cash deposits made on softwood lumber exports | 315 | $ 194 | ||||||||||||
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 4.59% | |||||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 12.05% | 1.15% | 3.20% | |||||||||||
Additional anti-dumping cash deposits made on softwood lumber exports | 7 | |||||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | 56 | 49 | ||||||||||||
Other liabilities | 85 | 92 | ||||||||||||
Legal hypothec on immovable and movable property | $ 30 | |||||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | 118 | $ 150 | ||||||||||||
Environmental liabilities | 13 | 15 | ||||||||||||
Asset retirement obligations | 36 | 25 | ||||||||||||
Fibrek | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Proportion of outstanding shares acquired (as a percent) | 25.40% | |||||||||||||
Determined per share fair value of dissenting shareholders' shares | $ / shares | $ 1.99 | |||||||||||||
Determined fair value of dissenting shareholders' shares | $ 31 | |||||||||||||
Determined fair value of dissenting shareholders' shares including interest and indemnity | 44 | |||||||||||||
Amount accrued to be contingently distributed | $ 14 | |||||||||||||
Change in amount of contingent consideration | 23 | $ 30 | ||||||||||||
Amount paid, contingent consideration, business combination | 14 | 19 | ||||||||||||
Softwood Lumber Duties Investigations | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contingent loss recorded | $ 0 | |||||||||||||
Fibrek | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Other liabilities | $ 27 | $ 20 | $ 26 | $ 21 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 02, 2020 | |
Dividends Payable [Line Items] | |||||
Share repurchase program, authorized maximum percentage of common stock to be repurchased (as a percent) | 15.00% | ||||
Share repurchase program, authorized amount | $ 100,000,000 | ||||
Share repurchase program, stock repurchased (shares) | 1.2 | 4.5 | 3.3 | 4.8 | |
Average price of treasury stock acquired (USD per share) | $ 10.95 | $ 4.12 | $ 10.22 | $ 4.01 | |
Share repurchase program, aggregate purchase price | $ 14,000,000 | $ 18,000,000 | $ 34,000,000 | $ 19,000,000 | |
Common stock, dividends declared (USD per share) | $ 1 | ||||
Common stock, dividends paid | $ 79,000,000 | $ 0 | |||
Dividend Declared | |||||
Dividends Payable [Line Items] | |||||
Stock-based compensation expense | 3,000,000 | ||||
Increase in deficit | 2,000,000 | ||||
Increase in additional paid-in capital | 2,000,000 | ||||
Increase in liabilities | $ 3,000,000 |
Segment Information - Segment R
Segment Information - Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 817 | $ 730 | $ 2,830 | $ 2,031 |
Depreciation and amortization | 42 | 43 | 123 | 125 |
Operating income (loss) | 102 | 97 | 685 | 95 |
Operating segments | Market Pulp | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 234 | 161 | 609 | 499 |
Depreciation and amortization | 6 | 6 | 18 | 18 |
Operating income (loss) | 46 | (4) | 80 | 3 |
Operating segments | Tissue | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 38 | 39 | 115 | 132 |
Depreciation and amortization | 5 | 4 | 14 | 13 |
Operating income (loss) | (9) | 2 | (18) | 2 |
Operating segments | Wood Products | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 293 | 322 | 1,387 | 695 |
Depreciation and amortization | 11 | 11 | 32 | 32 |
Operating income (loss) | 64 | 128 | 690 | 148 |
Joint venture sales | 22 | 7 | 55 | 17 |
Operating segments | Paper | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 252 | 208 | 719 | 705 |
Depreciation and amortization | 15 | 18 | 46 | 51 |
Operating income (loss) | 16 | (12) | (15) | (27) |
Operating segments | Segment Total | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 817 | 730 | 2,830 | 2,031 |
Depreciation and amortization | 37 | 39 | 110 | 114 |
Operating income (loss) | 117 | 114 | 737 | 126 |
Corporate and Other | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Depreciation and amortization | 5 | 4 | 13 | 11 |
Operating income (loss) | (15) | (17) | (52) | (31) |
Intersegment eliminations | Market Pulp | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 7 | $ 8 | $ 22 | $ 22 |