Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 | 1010 De La Gauchetière Street West | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City | Montreal | |
Entity Address, Province | QC | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | H3B 2N2 | |
City Area Code | 514 | |
Local Phone Number | 875-2160 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | RFP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 76,811,811 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001393066 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales | $ 974 | $ 817 | $ 2,977 | $ 2,830 |
Costs and expenses: | ||||
Depreciation and amortization | 34 | 42 | 101 | 123 |
Selling, general and administrative expenses | 57 | 32 | 133 | 114 |
Closure costs, impairment and other related charges (Note 3) | (1) | 0 | 8 | 2 |
Net loss on disposition of assets | 0 | 0 | 2 | 0 |
Operating income | 124 | 102 | 576 | 685 |
Interest expense | (5) | (5) | (16) | (16) |
Non-operating pension and other postretirement benefit (costs) credits | (3) | 3 | (13) | 8 |
Other income (expense), net (Note 4) | 37 | 20 | 95 | (74) |
Income before income taxes | 153 | 120 | 642 | 603 |
Income tax provision (Note 12) | (66) | (40) | (89) | (167) |
Net income including noncontrolling interest | 87 | 80 | 553 | 436 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | (1) |
Net income attributable to Resolute Forest Products Inc. | $ 87 | $ 80 | $ 553 | $ 435 |
Net income per share attributable to Resolute Forest Products Inc. common shareholders (Note 6): | ||||
Basic (USD per share) | $ 1.12 | $ 1 | $ 7.14 | $ 5.44 |
Diluted (USD per share) | $ 1.11 | $ 0.99 | $ 7.07 | $ 5.39 |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||
Basic (shares) | 77.5 | 79.4 | 77.4 | 80 |
Diluted (shares) | 78.4 | 80.1 | 78.2 | 80.8 |
Product | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 653 | $ 554 | $ 1,847 | $ 1,642 |
Distribution costs | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 107 | $ 87 | $ 310 | $ 264 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interest | $ 87 | $ 80 | $ 553 | $ 436 |
Unamortized prior service costs | ||||
Change in unamortized prior service costs (Note 5) | 0 | 0 | 0 | (3) |
Income tax provision | 0 | 0 | 0 | 0 |
Change in unamortized prior service costs, net of tax | 0 | 0 | 0 | (3) |
Unamortized actuarial losses | ||||
Change in unamortized actuarial losses (Note 5) | 16 | 16 | 61 | 84 |
Income tax provision | (3) | (4) | (11) | (20) |
Change in unamortized actuarial losses, net of tax | 13 | 12 | 50 | 64 |
Foreign currency translation | (3) | 0 | (3) | 0 |
Other comprehensive income, net of tax | 10 | 12 | 47 | 61 |
Comprehensive income including noncontrolling interest | 97 | 92 | 600 | 497 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | (1) |
Comprehensive income attributable to Resolute Forest Products Inc. | $ 97 | $ 92 | $ 600 | $ 496 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 446 | $ 112 |
Accounts receivable, net: | ||
Trade | 297 | 257 |
Other | 60 | 56 |
Inventories, net (Note 7) | 609 | 510 |
Other current assets | 49 | 54 |
Total current assets | 1,461 | 989 |
Fixed assets, less accumulated depreciation of $1,840 and $1,752 as of September 30, 2022 and December 31, 2021, respectively | 1,275 | 1,270 |
Amortizable intangible assets, less accumulated amortization of $41 and $37 as of September 30, 2022 and December 31, 2021, respectively | 57 | 57 |
Goodwill (Note 2) | 85 | 31 |
Deferred income tax assets | 515 | 653 |
Operating lease right-of-use assets | 54 | 54 |
Other assets (Note 8) | 606 | 484 |
Total assets | 4,053 | 3,538 |
Current liabilities: | ||
Accounts payable and other (Note 9) | 493 | 421 |
Current portion of long-term debt (Note 10) | 1 | 2 |
Current portion of operating lease liabilities | 8 | 8 |
Total current liabilities | 502 | 431 |
Long-term debt, net of current portion (Note 10) | 300 | 300 |
Pension and other postretirement benefit obligations | 991 | 1,151 |
Deferred income tax liabilities | 2 | 0 |
Operating lease liabilities, net of current portion | 48 | 51 |
Other liabilities | 91 | 88 |
Total liabilities | 1,934 | 2,021 |
Commitments and contingencies (Note 13) | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 121.3 million shares issued and 76.8 million shares outstanding as of September 30, 2022; 121.2 million shares issued and 76.8 million shares outstanding as of December 31, 2021 | 0 | 0 |
Additional paid-in capital | 3,811 | 3,807 |
Deficit | (456) | (1,009) |
Accumulated other comprehensive loss (Note 5) | (1,015) | (1,062) |
Treasury stock at cost, 44.5 million shares and 44.4 million shares as of September 30, 2022 and December 31, 2021, respectively | (224) | (222) |
Total Resolute Forest Products Inc. shareholders’ equity | 2,116 | 1,514 |
Noncontrolling interest | 3 | 3 |
Total equity | 2,119 | 1,517 |
Total liabilities and equity | $ 4,053 | $ 3,538 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation on fixed assets | $ 1,840 | $ 1,752 |
Accumulated amortization on intangible assets | $ 41 | $ 37 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock issued (shares) | 121.3 | 121.2 |
Common stock outstanding (shares) | 76.8 | 76.8 |
Treasury stock (shares) | 44.5 | 44.4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | 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, 2020 | $ 1,082,000,000 | $ 0 | $ 3,804,000,000 | $ (1,235,000,000) | $ (1,314,000,000) | $ (174,000,000) | $ 1,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | (1,000,000) | (1,000,000) | |||||
Net income | 436,000,000 | 435,000,000 | 1,000,000 | ||||
Purchases of treasury stock | (34,000,000) | (34,000,000) | |||||
Special dividend (Note 14) | (79,000,000) | 2,000,000 | (81,000,000) | ||||
Stock unit awards vested and stock options exercised, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income, net of tax | 61,000,000 | 61,000,000 | |||||
Balance at end of period at Sep. 30, 2021 | 1,465,000,000 | 0 | 3,805,000,000 | (881,000,000) | (1,253,000,000) | (208,000,000) | 2,000,000 |
Balance at beginning of period at Jun. 30, 2021 | 1,387,000,000 | 0 | 3,805,000,000 | (961,000,000) | (1,265,000,000) | (194,000,000) | 2,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 0 | 0 | |||||
Net income | 80,000,000 | 80,000,000 | |||||
Purchases of treasury stock | (14,000,000) | (14,000,000) | |||||
Other comprehensive income, net of tax | 12,000,000 | 12,000,000 | |||||
Balance at end of period at Sep. 30, 2021 | 1,465,000,000 | 0 | 3,805,000,000 | (881,000,000) | (1,253,000,000) | (208,000,000) | 2,000,000 |
Balance at beginning of period at Dec. 31, 2021 | 1,517,000,000 | 0 | 3,807,000,000 | (1,009,000,000) | (1,062,000,000) | (222,000,000) | 3,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 4,000,000 | 4,000,000 | |||||
Net income | 553,000,000 | 553,000,000 | |||||
Purchases of treasury stock | (2,000,000) | (2,000,000) | |||||
Special dividend (Note 14) | 0 | ||||||
Stock unit awards vested and stock options exercised, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income, net of tax | 47,000,000 | 47,000,000 | |||||
Balance at end of period at Sep. 30, 2022 | 2,119,000,000 | 0 | 3,811,000,000 | (456,000,000) | (1,015,000,000) | (224,000,000) | 3,000,000 |
Balance at beginning of period at Jun. 30, 2022 | 2,022,000,000 | 0 | 3,811,000,000 | (543,000,000) | (1,025,000,000) | (224,000,000) | 3,000,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 0 | 0 | |||||
Net income | 87,000,000 | 87,000,000 | |||||
Special dividend (Note 14) | 0 | ||||||
Other comprehensive income, net of tax | 10,000,000 | 10,000,000 | |||||
Balance at end of period at Sep. 30, 2022 | $ 2,119,000,000 | $ 0 | $ 3,811,000,000 | $ (456,000,000) | $ (1,015,000,000) | $ (224,000,000) | $ 3,000,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Treasury stock acquired (shares) | 125,482 | 3,340,599 |
Common Stock | ||
Stock unit awards vested, net of shares forfeited for employee withholding taxes (shares) | 100,000 | 400,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interest | $ 553 | $ 436 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ||
Share-based compensation | 6 | 3 |
Depreciation and amortization | 101 | 123 |
Deferred income taxes | 85 | 167 |
Net pension contributions and other postretirement benefit payments | (34) | (71) |
Gain on previously-held equity investments (Note 2) | (42) | 0 |
Net loss on disposition of assets | 2 | 0 |
Loss (gain) on translation of foreign currency denominated deferred income taxes | 42 | (7) |
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | (70) | 6 |
Net planned major maintenance amortization (payments) | 19 | (15) |
Changes in working capital: | ||
Accounts receivable | (39) | (45) |
Inventories | (81) | (48) |
Other current assets | (19) | (11) |
Accounts payable and other | 48 | 34 |
Other, net | 20 | 8 |
Net cash provided by operating activities | 591 | 580 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (68) | (79) |
Cash invested in intangible assets | (3) | 0 |
Acquisitions of businesses, net of cash acquired (Note 2) | (49) | 0 |
Disposition of assets | 5 | 0 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber (Note 8) | (138) | (128) |
Other investing activities, net | 0 | 3 |
Net cash used in investing activities | (253) | (204) |
Cash flows from financing activities: | ||
Issuance of long-term debt (Note 10) | 0 | 300 |
Payment of special dividend | 0 | (79) |
Repayments of debt (Note 10) | (2) | (557) |
Purchases of treasury stock (Note 14) | (2) | (34) |
Payments of financing fees | 0 | (7) |
Other financing activities, net | 0 | 2 |
Net cash used in financing activities | (4) | (375) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (7) | (1) |
Net increase in cash and cash equivalents, and restricted cash | 327 | 0 |
Cash and cash equivalents, and restricted cash: | ||
Beginning of period | 152 | 159 |
End of period | 479 | 159 |
Cash and cash equivalents, and restricted cash at end of period: | ||
Cash and cash equivalents | 446 | 119 |
Restricted cash (included in “Other assets”) | $ 33 | $ 40 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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 60 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, 2022, 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, 2021, filed with the SEC on March 1, 2022. Certain prior period amounts in the notes to our Consolidated Financial Statements have been reclassified to conform to the 2022 presentation. New accounting pronouncement adopted in 2022 ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” Effective January 1, 2022, we adopted ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” issued by the Financial Accounting Standards Board in 2021, which revises the accounting for acquired revenue contracts with customers in a business combination. The adoption of this accounting guidance, which was applied prospectively, did not impact our Consolidated Financial Statements and disclosures. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Note 2. Business Combinations Potential acquisition by Paper Excellence On July 5, 2022, Resolute and Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation (or, “ Domtar ”), entered into a business combination agreement (or, the “ Transaction ”) under which Domtar will acquire all of the issued and outstanding common shares of Resolute for $20.50 per share, in cash, without interest, and one contractual contingent value right per share (or, the “ CVR ”). Under the CVR, stockholders will receive any refunds on approximately $500 million of deposits on softwood lumber duties paid by Resolute through June 30, 2022, including any interest thereon, net of certain expenses and of applicable taxes. Any proceeds attributable to the CVR will be distributed proportionally to the CVR holders, and the value will ultimately be determined by the terms and timing of the resolution of the softwood lumber dispute between Canada and the United States. The terms and timing of such resolution is uncertain. On October 31, 2022, Resolute's stockholders approved the Transaction. The Transaction, which is subject to applicable regulatory approvals and the satisfaction of certain other customary closing conditions, is expected to close in the first half of 2023. See Note 16, “Subsequent Events.” Acquisition of Larouche and St-Prime On March 4, 2022 (or, the “ Acquisition Date ”), we acquired control of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership (or, “ Larouche and St-Prime ”), that were previously held as 50% owned joint ventures, by acquiring the remaining 50% equity interests from Louisiana-Pacific Canada Ltd., a wholly-owned subsidiary of Louisiana-Pacific Corporation, for a cash consideration of $51 million (including $1 million of working capital adjustment, and net of cash acquired of $8 million). Larouche and St-Prime, which are engineered wood product facilities located in Quebec, produce I-joists for the construction industry. This acquisition solidifies our presence in the engineered wood product segment. We accounted for our previously held equity investments in Larouche and St-Prime using the equity method of accounting since we had joint control prior to acquiring a controlling interest on the Acquisition Date . We accounted for the acquisition of Larouche and St-Prime as a business combination in accordance with the acquisition method of accounting, which requires us to record the identifiable assets acquired and liabilities assumed at fair value. The amount by which the purchase price exceeds the fair value of the net assets acquired is recorded as goodwill. The following table summarizes our preliminary allocation of the purchase price to the fair values of assets acquired and liabilities assumed at the Acquisition Date: (Unaudited, in millions) Cash and cash equivalents $ 16 Accounts receivable 10 Inventories 16 Current assets acquired $ 42 Fixed assets $ 28 Goodwill (1) 54 Total assets acquired and goodwill $ 124 Accounts payable and other $ 3 Current liabilities assumed 3 Pension and other postretirement benefit obligations 1 Deferred income tax liabilities 2 Total liabilities assumed $ 6 Net assets acquired $ 118 Cash consideration transferred 59 Fair value of the previously held interests in Larouche and St-Prime 59 Total fair value of consideration $ 118 (1) The goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to securing downstream integration and the Larouche and St-Prime assembled workforce. Goodwill has been assigned to the wood products segment, and is included in such segment for goodwill impairment testing purposes. The total amount of goodwill is not deductible for tax purposes. The allocation of the purchase price to assets acquired and liabilities assumed was based upon a preliminary valuation for all items and may be subject to adjustment during the 12-month measurement period following the Acquisition Date since we are finalizing the assumptions in regards to the fair values of these assets and liabilities. The allocation of the purchase price was based on management’s estimate of the fair values of the acquired identifiable assets and assumed liabilities using valuation techniques including income, cost and market approaches. We utilized both the cost and market approaches to value fixed assets (Level 3). At the Acquisition Date, our previously-held equity investments of $17 million were remeasured at a fair value of $59 million, which resulted in a gain of $42 million. The gain was recorded in “Other income (expense), net” in our Consolidated Statements of Operations for the nine months ended September 30, 2022. We applied an income approach, specifically the discounted cash flow (or, the “ DCF ”) method, to measure the fair value of our equity interest in Larouche and St-Prime, as of immediately prior to the business acquisition. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, discount rate and tax rate. The cash flows employed in the DCF analysis are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, existing firm orders, long-term business plans and recent operating performance. The discount rate utilized in the DCF analysis is based on the respective company’s weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital, adjusted as appropriate to consider the risk inherent in future cash flows of the Company. We ceased applying the equity method for our investments in Larouche and St-Prime and the net assets acquired and results of operations are consolidated from the Acquisition Date and are included in the wood products segment. From the Acquisition Date to September 30, 2022, our consolidated financial results included sales of $127 million and net income of $36 million attributable to Larouche and St-Prime. The following unaudited pro forma information for the three and nine months ended September 30, 2022, represents our results of operations as if the acquisition of Larouche and St-Prime had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Sales $ 974 $ 853 $ 2,997 $ 2,903 Net income attributable to Resolute Forest Products Inc. (1) $ 87 $ 86 $ 521 $ 476 (1) For the pro forma information, the gain on previously-held equity investments of $42 million was considered realized in the nine months ended September 30, 2021, and deducted from the nine months ended September 30, 2022. Acquisition of a power generation facility On April 1, 2022, we acquired a 34.5 megawatt power generation facility in Senneterre (Quebec) for $8 million, including a contingent consideration. With this acquisition, we will maximize the use of biomass from our regional operations. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Costs | Note 3. Closure Costs, Impairment and Other Related Charges In December 2021, the Company announced the indefinite idling of pulp and paper operations at our Calhoun (Tennessee) mill. We have revised our expected 2022 additional cash closure costs, disclosed in our December 31, 2021 Consolidated Financial Statements, from $32 million to $12 million, due to lower than expected chemical disposal costs. During the three and nine months ended September 30, 2022, we recognized nil and $7 million, respectively, of these costs. In March 2021, the Company announced the indefinite idling of the Amos and Baie-Comeau (Quebec) paper mills. During the three and nine months ended September 30, 2022, we recognized additional other costs of nil and $4 million, respectively, for the Baie-Comeau paper mill. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Note 4. Other Income (Expense), Net Other income (expense), net for the three and nine months ended September 30, 2022 and 2021, was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Foreign exchange gain $ 37 $ 12 $ 45 $ 1 Gain (loss) on commodity contracts (1) — 1 1 (85) Income from equity method investments — 8 7 12 Gain on previously-held equity investments (Note 2) — — 42 — Miscellaneous expense — (1) — (2) $ 37 $ 20 $ 95 $ (74) (1) The loss for the nine months ended September 30, 2021, was principally related to lumber futures contracts; none of these contracts were outstanding as of September 30, 2022 and 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 5. 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, 2022 and 2021, was as follows: (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2022 $ (5) $ (1,014) $ (6) $ (1,025) Other comprehensive loss before reclassifications — — (3) (3) Amounts reclassified from accumulated other comprehensive loss — 13 — 13 Net current period other comprehensive income (loss) — 13 (3) 10 Balance as of September 30, 2022 $ (5) $ (1,001) $ (9) $ (1,015) (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2021 $ (5) $ (1,051) $ (6) $ (1,062) Other comprehensive income (loss) before reclassifications (1) — 10 (3) 7 Amounts reclassified from accumulated other comprehensive loss — 40 — 40 Net current period other comprehensive income (loss) — 50 (3) 47 Balance as of September 30, 2022 $ (5) $ (1,001) $ (9) $ (1,015) (1) The indefinite idling of pulp and paper operations at our Calhoun mill triggered pension special termination benefit costs and remeasurement of the pension and other postretirement benefit (or, “ OPEB ”) obligations related to its plans as of January 31, 2022, resulting in a loss of $4 million and an actuarial gain of $14 million, totaling a net gain of $10 million ($10 million net of tax). (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 mills triggered curtailment and remeasurement of the pension and 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). The reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2022 and 2021, were comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs Amortization of prior service costs or credits $ — $ — $ — $ (2) Non-operating pension and other postretirement benefit (costs) credits (1) Curtailment gain — — — (1) Non-operating pension and other postretirement benefit (costs) credits (1) Income tax effect of the above — — — — Income tax provision Net of tax — — — (3) Unamortized Actuarial Losses Amortization of actuarial losses 16 16 48 54 Non-operating pension and other postretirement benefit (costs) credits (1) Other items — — 3 — Non-operating pension and other postretirement benefit (costs) credits (1) Income tax effect of the above (3) (4) (11) (12) Income tax provision Net of tax 13 12 40 42 Total Reclassifications $ 13 $ 12 $ 40 $ 39 (1) These items are included in the computation of net periodic benefit costs (credits) related to our pension and OPEB plans summarized in Note 11, “Employee Benefit Plans.” |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 6. Net Income Per Share The reconciliation of the basic and diluted net income per share for the three and nine months ended September 30, 2022 and 2021, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2022 2021 2022 2021 Numerator: Net income attributable to Resolute Forest Products Inc. $ 87 $ 80 $ 553 $ 435 Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 77.5 79.4 77.4 80.0 Dilutive impact of nonvested stock unit awards and stock options 0.9 0.7 0.8 0.8 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 78.4 80.1 78.2 80.8 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.12 $ 1.00 $ 7.14 $ 5.44 Diluted $ 1.11 $ 0.99 $ 7.07 $ 5.39 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, 2022 and 2021, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Stock options — 0.4 — 0.5 Stock unit awards — — — — |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 7. Inventories, Net Inventories, net as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 186 $ 159 Work in process 80 57 Finished goods 183 148 Mill stores and other supplies 160 146 $ 609 $ 510 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
Other Assets | Note 8. Other Assets Other assets as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Countervailing duty cash deposits on softwood lumber (Note 13) $ 424 $ 339 Anti-dumping duty cash deposits on softwood lumber (Note 13) 111 58 Equity method investments 11 22 Restricted cash 33 40 Other 27 25 $ 606 $ 484 |
Accounts Payable and Other
Accounts Payable and Other | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Note 9. Accounts Payable and Other Accounts payable and other as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 338 $ 262 Accrued compensation 86 89 Accrued interest 2 6 Pension and other postretirement benefit obligations 13 14 Accrued provision related to Fibrek Inc. litigation (Note 13) 20 21 Income and other taxes payable 7 4 Other 27 25 $ 493 $ 421 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 10. Long-Term Debt Overview Long-term debt, including current portion, as of September 30, 2022 and December 31, 2021, was comprised of the following: (Unaudited, in millions) September 30, December 31, 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ 300 Deferred financing costs (4) (5) Total 4.875% senior unsecured notes due 2026 296 295 Finance lease obligations 4 6 Other debt 1 1 Total debt 301 302 Less: Current portion of finance lease obligations and other debt (1) (2) Long-term debt, net of current portion $ 300 $ 300 Debt availabilities (Unaudited, in millions) September 30, December 31, Term Loan Facility $ 180 $ 180 Revolving Credit Facility 180 180 ABL Credit Facility (1) 355 307 Secured delayed draw term loan facility (C$220 million as of September 30, 2022 and December 31, 2021) 159 174 Total availability $ 874 $ 841 (1) The availability as of September 30, 2022, was $355 million, net of $82 million of ordinary course letters of credit outstanding, of which $62 million were to guarantee surety bonds of $101 million related to the U.S. softwood lumber cash deposits. The availability as of December 31, 2021, was $307 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. 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. 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 fair value of the 2026 Notes (Level 1) was $291 million as of September 30, 2022. 2023 Notes 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 5.875% senior unsecured notes due 2023 (or, the “ 2023 Notes ”) to redeem all of the $375 million outstanding 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. Senior Secured Credit Facility 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 are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of the Company’s facility in Calhoun and a first priority security interest on the fixtures and equipment located therein. On March 2, 2022, the Company entered into agreements to provide the following additional security under the Senior Secured Credit Facility: (i) a first priority mortgage on the real property of the Company’s sawmill facilities in Glenwood and El Dorado (Arkansas) and a first priority security interest on the fixtures and equipment located therein, and (ii) a first priority security interest on the fixtures and equipment at the Company’s sawmill facility in Cross City (Florida). 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. 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. On December 15, 2021, we entered into an amendment to the credit agreement, which reset the facility and extended the maturity date to December 15, 2026. The agreement also contains hardwired benchmark replacement provisions for future transition of the London Interbank Offered Rate and may be amended based on agreed upon Environmental, Social and Governance key performance indicators as described in the credit agreement. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 11. 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, 2022 and 2021, were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Interest cost $ 35 $ 33 $ 106 $ 100 Expected return on plan assets (49) (53) (147) (162) Amortization of actuarial losses 17 18 52 59 Amortization of prior service costs — 1 — 1 Non-operating pension costs (credits) 3 (1) 11 (2) Service cost 5 4 12 12 Net periodic benefit costs before special events 8 3 23 10 Other loss (gain) — — 3 (1) $ 8 $ 3 $ 26 $ 9 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Interest cost $ 1 $ 1 $ 3 $ 3 Amortization of actuarial gains (1) (2) (4) (5) Amortization of prior service credits — (1) — (3) Non-operating other postretirement benefit credits — (2) (1) (5) Service cost — 1 — 1 Net periodic benefit credits before special events — (1) (1) (4) Other — — — — $ — $ (1) $ (1) $ (4) Defined contribution plans Our expense for the defined contribution plans totaled $4 million and $5 million for the three months ended September 30, 2022 and 2021, and $13 million and $14 million for the nine months ended September 30, 2022 and 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. 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, 2022 and 2021, as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Income before income taxes $ 153 $ 120 $ 642 $ 603 Income tax provision: Expected income tax provision (32) (26) (135) (127) Changes resulting from: Valuation allowance 33 11 219 89 Foreign exchange (27) (5) (34) (2) U.S. tax on non-U.S. earnings (34) (13) (106) (96) State income taxes, net of federal income tax benefit — (1) (3) 1 Foreign tax rate differences (9) (6) (33) (33) Other, net 3 — 3 1 $ (66) $ (40) $ (89) $ (167) During the three and nine months ended September 30, 2022, we released $33 million and $219 million, respectively, of the $673 million valuation allowance on our U.S. deferred income tax assets that existed at January 1, 2022. Of the released amount for the nine months ended September 30, 2022, $105 million was to offset future projected tax implications of the global intangible low-taxed income (or, “ GILTI ”) inclusion, which impacted the overall effective tax rate. The remaining amount released for the nine months ended September 30, 2022, and the amount released for the three months ended September 30, 2022, were mainly to offset tax implications relating to the GILTI inclusion. 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 GILTI. At each reporting period, we assess whether it is more likely than not that the deferred income tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. In our evaluation process, we give the most weight to historical income or losses. During the second quarter of 2022, after evaluating all available positive and negative evidence, although realization is not assured, we determined that it is more likely than not that the $105 million of the U.S. deferred income tax assets released during the second quarter, will be realized in the future prior to expiration. The key factor contributing to the conclusion that the positive evidence ultimately outweighed existing negative evidence is the continuous GILTI inclusion. The rapidly changing dynamics in the wood products, pulp and paper segments resulted or are expected to result in significant GILTI inclusions for 2021, 2022 and some future years. These significant GILTI inclusions have created or are expected to create U.S. taxable income, which has been, or is expected to be entirely offset by existing U.S. tax attributes included in deferred income tax assets that have been fully reserved. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. 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, 2022, 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, which may not be covered in whole or in part by our insurance coverage. 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 twelve 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 duty 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, from December 1, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 19.10%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the countervailing investigation; as a result, from December 2, 2021, to August 8, 2022, we were required to pay cash deposits to U.S. Customs at a rate of 18.07%. Commerce issued its final determination dated August 3, 2022, in the third administrative review of the countervailing investigation; as a result, since August 9, 2022, we have been required to pay cash deposits to U.S. Customs at a new rate of 10.10%. Through September 30, 2022, our cash deposits totaled $424 million. Anti-dumping 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, from November 30, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 1.15%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the anti-dumping investigation; as a result, from December 2, 2021, to August 8, 2022, we were required to pay cash deposits to U.S. Customs at a rate of 11.59%. Commerce issued its final determination dated August 3, 2022, in the third administrative review of the anti-dumping investigation; as a result, since August 9, 2022, we have been required to pay cash deposits to U.S. Customs at a new rate of 4.76%. Through September 30, 2022, our cash deposits totaled $111 million. Ongoing Administrative Reviews – Following Commerce’s completion of the Canadian softwood lumber investigation and the first, second, and third administrative reviews, the fourth administrative review remains pending. On March 9, 2022, Commerce published a notice initiating the fourth administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. According to a decision published by Commerce on April 27 and 29, 2022, we were not selected as a mandatory respondent for the fourth administrative reviews of the countervailing duty order and anti-dumping order, respectively. 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 anti-dumping 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 scheduling of the hearings remains pending. The full formation of the anti-dumping Panel was announced on October 17, 2022, and that of the countervailing Panel was announced on November 1, 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 anti-dumping first administrative reviews. We filed similar complaints with respect to the second administrative reviews on January 12, 2022, and with respect to the third administrative reviews on September 16, 2022. ITC Injury Determination – In parallel, on December 28, 2017, the ITC published its affirmative final injury determinations in the anti-dumping 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. Financial assurance – We are required by U.S. Customs to provide surety bonds to secure the payment of our cash deposits. As of September 30, 2022, we had unpaid deposits of $8 million related to products exported to the U.S. up to the end of the quarter since our last payment, and we had $101 million of surety bonds outstanding in favor of U.S. Customs, of which $62 million were secured by letters of credit. See Note 10, “Long-Term Debt – ABL Credit Facility” for more information. 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 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), and as a result recorded $23 million in “Other expense, net” in our Consolidated Statement of Operations for the year ended on December 31, 2019. Of the total amount of C$44 million, C$19 million ($14 million) was payable immediately and paid on October 2, 2019. The remaining balances of C$28 million ($20 million) and C$27 million ($21 million) as of September 30, 2022 and December 31, 2021, respectively, which include accrued interest, are recorded in “Accounts payable and other” 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 scheduled to occur in 2022. 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 ($108 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. Contingent gain In 2016, we filed a lawsuit against Greenpeace International, Greenpeace Inc. and certain individuals related to loss of business following false allegations concerning the impact of our harvesting operations in certain regions in Quebec. The claims alleged certain damages resulting from defamation and unfair competition. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery, if any, is uncertain. As a result, any recovery from this litigation or settlement of this claim is a contingent gain and will be recognized if, and when, realized or realizable. 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 $16 million and $13 million recorded as of September 30, 2022 and December 31, 2021, respectively, primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time. We also have asset retirement obligations of $36 million recorded as of September 30, 2022 and December 31, 2021, 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, 2022 | |
Equity [Abstract] | |
Share Capital | Note 14. Share Capital Treasury stock On December 7, 2021, we announced a new share repurchase program, authorized by our board of directors, of up to ten million shares of our common stock or $100 million, whichever occurs first. We repurchased no shares during the three months ended September 30, 2022, and 125,482 shares at an average price of $11.34 for a total of $2 million during the nine months ended September 30, 2022. 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 1,248,251 shares at an average price of $10.95 for a total of $14 million and 3,340,599 shares at an average price of $10.22 for a total of $34 million, respectively. This share repurchase program was completed in December 2021. Dividends We did not declare or pay any dividends on our common stock during the three and nine months ended September 30, 2022. 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 dividend was paid to shareholders on July 7, 2021. 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 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15. 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, 2022 and 2021, was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales Third quarter 2022 $ 265 $ 50 $ 379 $ 280 $ 974 $ — $ 974 2021 $ 234 $ 38 $ 293 $ 252 $ 817 $ — $ 817 First nine months 2022 $ 687 $ 150 $ 1,324 $ 816 $ 2,977 $ — $ 2,977 2021 $ 609 $ 115 $ 1,387 $ 719 $ 2,830 $ — $ 2,830 Depreciation and amortization Third quarter 2022 $ 5 $ 4 $ 11 $ 10 $ 30 $ 4 $ 34 2021 $ 6 $ 5 $ 11 $ 15 $ 37 $ 5 $ 42 First nine months 2022 $ 16 $ 13 $ 33 $ 29 $ 91 $ 10 $ 101 2021 $ 18 $ 14 $ 32 $ 46 $ 110 $ 13 $ 123 Operating income (loss) Third quarter 2022 $ 81 $ (12) $ 42 $ 52 $ 163 $ (39) $ 124 2021 $ 46 $ (9) $ 64 $ 16 $ 117 $ (15) $ 102 First nine months 2022 $ 144 $ (30) $ 441 $ 114 $ 669 $ (93) $ 576 2021 $ 80 $ (18) $ 690 $ (15) $ 737 $ (52) $ 685 (1) Inter-segment sales were $19 million and $7 million for the three months ended September 30, 2022 and 2021, respectively, and $47 million and $22 million for the nine months ended September 30, 2022 and 2021, respectively. 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. (2) Wood products sales to our previously-held joint ventures, which were transacted at arm’s length negotiated prices, were $22 million for three months ended September 30, 2021, and were $12 million for the period up to the Acquisition Date and $55 million for the nine months ended September 30, 2021. See Note 2, “Business Combinations” for more information. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The following significant events occurred subsequent to September 30, 2022: • On October 31, 2022, Resolute’s stockholders approved the Transaction. The Transaction is subject to applicable regulatory approvals and the satisfaction of certain other customary closing conditions. See Note 2, “Business Combinations” for more information. • On October 6, 2022, a fire started at our Menominee (Michigan) recycled pulp mill, which resulted in the temporary idling of the facility. We cannot yet estimate the extent of the losses, but aim to restart the mill in the coming months. We maintain insurance coverage for the mill, which is subject to customary deductible and limits. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022, 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, 2021, filed with the SEC on March 1, 2022. Certain prior period amounts in the notes to our Consolidated Financial Statements have been reclassified to conform to the 2022 presentation. |
New accounting pronouncements | New accounting pronouncement adopted in 2022 ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” Effective January 1, 2022, we adopted ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” issued by the Financial Accounting Standards Board in 2021, which revises the accounting for acquired revenue contracts with customers in a business combination. The adoption of this accounting guidance, which was applied prospectively, did not impact our Consolidated Financial Statements and disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Final Allocation of Purchase Price of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes our preliminary allocation of the purchase price to the fair values of assets acquired and liabilities assumed at the Acquisition Date: (Unaudited, in millions) Cash and cash equivalents $ 16 Accounts receivable 10 Inventories 16 Current assets acquired $ 42 Fixed assets $ 28 Goodwill (1) 54 Total assets acquired and goodwill $ 124 Accounts payable and other $ 3 Current liabilities assumed 3 Pension and other postretirement benefit obligations 1 Deferred income tax liabilities 2 Total liabilities assumed $ 6 Net assets acquired $ 118 Cash consideration transferred 59 Fair value of the previously held interests in Larouche and St-Prime 59 Total fair value of consideration $ 118 (1) The goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to securing downstream integration and the Larouche and St-Prime assembled workforce. Goodwill has been assigned to the wood products segment, and is included in such segment for goodwill impairment testing purposes. The total amount of goodwill is not deductible for tax purposes. |
Schedule of Pro Forma Information | The following unaudited pro forma information for the three and nine months ended September 30, 2022, represents our results of operations as if the acquisition of Larouche and St-Prime had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Sales $ 974 $ 853 $ 2,997 $ 2,903 Net income attributable to Resolute Forest Products Inc. (1) $ 87 $ 86 $ 521 $ 476 (1) For the pro forma information, the gain on previously-held equity investments of $42 million was considered realized in the nine months ended September 30, 2021, and deducted from the nine months ended September 30, 2022. |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense), Net | Other income (expense), net for the three and nine months ended September 30, 2022 and 2021, was comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Foreign exchange gain $ 37 $ 12 $ 45 $ 1 Gain (loss) on commodity contracts (1) — 1 1 (85) Income from equity method investments — 8 7 12 Gain on previously-held equity investments (Note 2) — — 42 — Miscellaneous expense — (1) — (2) $ 37 $ 20 $ 95 $ (74) (1) The loss for the nine months ended September 30, 2021, was principally related to lumber futures contracts; none of these contracts were outstanding as of September 30, 2022 and 2021. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021, was as follows: (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of June 30, 2022 $ (5) $ (1,014) $ (6) $ (1,025) Other comprehensive loss before reclassifications — — (3) (3) Amounts reclassified from accumulated other comprehensive loss — 13 — 13 Net current period other comprehensive income (loss) — 13 (3) 10 Balance as of September 30, 2022 $ (5) $ (1,001) $ (9) $ (1,015) (Unaudited, in millions) Unamortized Prior Service Costs Unamortized Actuarial Losses Foreign Total Balance as of December 31, 2021 $ (5) $ (1,051) $ (6) $ (1,062) Other comprehensive income (loss) before reclassifications (1) — 10 (3) 7 Amounts reclassified from accumulated other comprehensive loss — 40 — 40 Net current period other comprehensive income (loss) — 50 (3) 47 Balance as of September 30, 2022 $ (5) $ (1,001) $ (9) $ (1,015) (1) The indefinite idling of pulp and paper operations at our Calhoun mill triggered pension special termination benefit costs and remeasurement of the pension and other postretirement benefit (or, “ OPEB ”) obligations related to its plans as of January 31, 2022, resulting in a loss of $4 million and an actuarial gain of $14 million, totaling a net gain of $10 million ($10 million net of tax). (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 mills triggered curtailment and remeasurement of the pension and 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). |
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, 2022 and 2021, were comprised of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs Amortization of prior service costs or credits $ — $ — $ — $ (2) Non-operating pension and other postretirement benefit (costs) credits (1) Curtailment gain — — — (1) Non-operating pension and other postretirement benefit (costs) credits (1) Income tax effect of the above — — — — Income tax provision Net of tax — — — (3) Unamortized Actuarial Losses Amortization of actuarial losses 16 16 48 54 Non-operating pension and other postretirement benefit (costs) credits (1) Other items — — 3 — Non-operating pension and other postretirement benefit (costs) credits (1) Income tax effect of the above (3) (4) (11) (12) Income tax provision Net of tax 13 12 40 42 Total Reclassifications $ 13 $ 12 $ 40 $ 39 (1) These items are included in the computation of net periodic benefit costs (credits) related to our pension and OPEB plans summarized in Note 11, “Employee Benefit Plans.” |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Net Income Per Share | The reconciliation of the basic and diluted net income per share for the three and nine months ended September 30, 2022 and 2021, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions, except per share amounts) 2022 2021 2022 2021 Numerator: Net income attributable to Resolute Forest Products Inc. $ 87 $ 80 $ 553 $ 435 Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 77.5 79.4 77.4 80.0 Dilutive impact of nonvested stock unit awards and stock options 0.9 0.7 0.8 0.8 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 78.4 80.1 78.2 80.8 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 1.12 $ 1.00 $ 7.14 $ 5.44 Diluted $ 1.11 $ 0.99 $ 7.07 $ 5.39 |
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, 2022 and 2021, was as follows: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Stock options — 0.4 — 0.5 Stock unit awards — — — — |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Raw materials $ 186 $ 159 Work in process 80 57 Finished goods 183 148 Mill stores and other supplies 160 146 $ 609 $ 510 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Countervailing duty cash deposits on softwood lumber (Note 13) $ 424 $ 339 Anti-dumping duty cash deposits on softwood lumber (Note 13) 111 58 Equity method investments 11 22 Restricted cash 33 40 Other 27 25 $ 606 $ 484 |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of September 30, 2022 and December 31, 2021, were comprised of the following: (Unaudited, in millions) September 30, December 31, Trade accounts payable $ 338 $ 262 Accrued compensation 86 89 Accrued interest 2 6 Pension and other postretirement benefit obligations 13 14 Accrued provision related to Fibrek Inc. litigation (Note 13) 20 21 Income and other taxes payable 7 4 Other 27 25 $ 493 $ 421 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of September 30, 2022 and December 31, 2021, was comprised of the following: (Unaudited, in millions) September 30, December 31, 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ 300 Deferred financing costs (4) (5) Total 4.875% senior unsecured notes due 2026 296 295 Finance lease obligations 4 6 Other debt 1 1 Total debt 301 302 Less: Current portion of finance lease obligations and other debt (1) (2) Long-term debt, net of current portion $ 300 $ 300 (Unaudited, in millions) September 30, December 31, Term Loan Facility $ 180 $ 180 Revolving Credit Facility 180 180 ABL Credit Facility (1) 355 307 Secured delayed draw term loan facility (C$220 million as of September 30, 2022 and December 31, 2021) 159 174 Total availability $ 874 $ 841 (1) The availability as of September 30, 2022, was $355 million, net of $82 million of ordinary course letters of credit outstanding, of which $62 million were to guarantee surety bonds of $101 million related to the U.S. softwood lumber cash deposits. The availability as of December 31, 2021, was $307 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021, were as follows: Pension Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Interest cost $ 35 $ 33 $ 106 $ 100 Expected return on plan assets (49) (53) (147) (162) Amortization of actuarial losses 17 18 52 59 Amortization of prior service costs — 1 — 1 Non-operating pension costs (credits) 3 (1) 11 (2) Service cost 5 4 12 12 Net periodic benefit costs before special events 8 3 23 10 Other loss (gain) — — 3 (1) $ 8 $ 3 $ 26 $ 9 OPEB Plans: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Interest cost $ 1 $ 1 $ 3 $ 3 Amortization of actuarial gains (1) (2) (4) (5) Amortization of prior service credits — (1) — (3) Non-operating other postretirement benefit credits — (2) (1) (5) Service cost — 1 — 1 Net periodic benefit credits before special events — (1) (1) (4) Other — — — — $ — $ (1) $ (1) $ (4) |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021, as a result of the following: Three Months Ended Nine Months Ended (Unaudited, in millions) 2022 2021 2022 2021 Income before income taxes $ 153 $ 120 $ 642 $ 603 Income tax provision: Expected income tax provision (32) (26) (135) (127) Changes resulting from: Valuation allowance 33 11 219 89 Foreign exchange (27) (5) (34) (2) U.S. tax on non-U.S. earnings (34) (13) (106) (96) State income taxes, net of federal income tax benefit — (1) (3) 1 Foreign tax rate differences (9) (6) (33) (33) Other, net 3 — 3 1 $ (66) $ (40) $ (89) $ (167) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three and nine months ended September 30, 2022 and 2021, was as follows: (Unaudited, in millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales Third quarter 2022 $ 265 $ 50 $ 379 $ 280 $ 974 $ — $ 974 2021 $ 234 $ 38 $ 293 $ 252 $ 817 $ — $ 817 First nine months 2022 $ 687 $ 150 $ 1,324 $ 816 $ 2,977 $ — $ 2,977 2021 $ 609 $ 115 $ 1,387 $ 719 $ 2,830 $ — $ 2,830 Depreciation and amortization Third quarter 2022 $ 5 $ 4 $ 11 $ 10 $ 30 $ 4 $ 34 2021 $ 6 $ 5 $ 11 $ 15 $ 37 $ 5 $ 42 First nine months 2022 $ 16 $ 13 $ 33 $ 29 $ 91 $ 10 $ 101 2021 $ 18 $ 14 $ 32 $ 46 $ 110 $ 13 $ 123 Operating income (loss) Third quarter 2022 $ 81 $ (12) $ 42 $ 52 $ 163 $ (39) $ 124 2021 $ 46 $ (9) $ 64 $ 16 $ 117 $ (15) $ 102 First nine months 2022 $ 144 $ (30) $ 441 $ 114 $ 669 $ (93) $ 576 2021 $ 80 $ (18) $ 690 $ (15) $ 737 $ (52) $ 685 (1) Inter-segment sales were $19 million and $7 million for the three months ended September 30, 2022 and 2021, respectively, and $47 million and $22 million for the nine months ended September 30, 2022 and 2021, respectively. 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. (2) Wood products sales to our previously-held joint ventures, which were transacted at arm’s length negotiated prices, were $22 million for three months ended September 30, 2021, and were $12 million for the period up to the Acquisition Date and $55 million for the nine months ended September 30, 2021. See Note 2, “Business Combinations” for more information. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Narrative (Details) | Sep. 30, 2022 site country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | country | 60 |
Number of manufacturing facilities (approximate) | site | 40 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ / shares in Units, $ in Millions | 7 Months Ended | 9 Months Ended | ||||
Jul. 05, 2022 USD ($) $ / shares shares | Apr. 01, 2022 USD ($) MWh | Mar. 04, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Cash consideration paid, net of cash acquired | $ 49 | $ 0 | ||||
Cogeneration Facility Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cogeneration facility acquired | MWh | 34.5 | |||||
Asset acquisition, consideration transferred, contingent consideration | $ 8 | |||||
Resolute-LP Engineered Wood Larouche Inc. And Resolute-LP Engineered Wood St-Prime Limited Partnership | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest (as percentage) | 50% | |||||
Domtar Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, share price (in USD per share) | $ / shares | $ 20.50 | |||||
Contractual contingent share right (in shares) | shares | 1 | |||||
Business combination, consideration transferred, liabilities incurred | $ 500 | |||||
Larouche and St-Prime | ||||||
Business Acquisition [Line Items] | ||||||
Proportion of outstanding shares acquired (as a percent) | 50% | |||||
Cash consideration paid, net of cash acquired | $ 51 | |||||
Purchase price adjustment | 1 | |||||
Cash acquired in acquisition | 8 | |||||
Initial equity investments | 17 | |||||
Fair value of the previously held interests in Larouche and St-Prime | 59 | |||||
Gain on equity investments | $ 42 | |||||
Business combination, revenue of acquiree since acquisition date, actual | $ 127 | |||||
Business combination, earnings or loss of acquiree since acquisition date, actual | $ 36 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Millions | Mar. 04, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 85 | $ 31 | |
Larouche and St-Prime | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 16 | ||
Accounts receivable | 10 | ||
Inventories | 16 | ||
Current assets acquired | 42 | ||
Fixed assets | 28 | ||
Goodwill | 54 | ||
Total assets acquired and goodwill | 124 | ||
Accounts payable and other | 3 | ||
Current liabilities assumed | 3 | ||
Pension and other postretirement benefit obligations | 1 | ||
Deferred income tax liabilities | 2 | ||
Total liabilities assumed | 6 | ||
Net assets acquired | 118 | ||
Cash consideration transferred | 59 | ||
Fair value of the previously held interests in Larouche and St-Prime | 59 | ||
Total fair value of consideration | $ 118 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Larouche and St-Prime - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 04, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Sales | $ 974 | $ 853 | $ 2,997 | $ 2,903 | |
Net income attributable to Resolute Forest Products Inc. | $ 87 | $ 86 | $ 521 | $ 476 | |
Gain on equity investments | $ 42 |
Closure Costs, Impairment and_2
Closure Costs, Impairment and Other Related Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Pulp and Paper Mill at Calhoun (Tennessee) | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected decommissioning costs in 2022 | $ 12 | $ 12 | $ 32 |
Indefinite idling costs | 0 | 7 | |
Paper Mills at Amos and Baie-Comeau (Quebec) | |||
Restructuring Cost and Reserve [Line Items] | |||
Indefinite idling costs | $ 0 | $ 4 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange gain | $ 37 | $ 12 | $ 45 | $ 1 |
Gain (loss) on commodity contracts | 0 | 1 | 1 | (85) |
Income from equity method investments | 0 | 8 | 7 | 12 |
Gain on previously-held equity investments (Note 2) | 0 | 0 | 42 | 0 |
Miscellaneous expense | 0 | (1) | 0 | (2) |
Other expense, net | $ 37 | $ 20 | $ 95 | $ (74) |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | $ 2,022 | $ 1,387 | $ 1,517 | $ 1,082 |
Other comprehensive income (loss) before reclassifications | (3) | 7 | 22 | |
Amounts reclassified from accumulated other comprehensive loss | 13 | 12 | 40 | 39 |
Other comprehensive income, net of tax | 10 | 12 | 47 | 61 |
Balance at end of period | 2,119 | 1,465 | 2,119 | 1,465 |
Curtailment gain (loss) | (4) | 8 | ||
Curtailment and actuarial gain, before tax | 10 | 30 | ||
Curtailment and actuarial gain, net of tax | 10 | 22 | ||
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (1,025) | (1,265) | (1,062) | (1,314) |
Other comprehensive income, net of tax | 10 | 12 | 47 | 61 |
Balance at end of period | (1,015) | (1,253) | (1,015) | (1,253) |
Unamortized Prior Service Costs | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (5) | (4) | (5) | (1) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | (3) |
Other comprehensive income, net of tax | 0 | 0 | 0 | (3) |
Balance at end of period | (5) | (4) | (5) | (4) |
Unamortized Actuarial Losses | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (1,014) | (1,255) | (1,051) | (1,307) |
Other comprehensive income (loss) before reclassifications | 0 | 10 | 22 | |
Amounts reclassified from accumulated other comprehensive loss | 13 | 12 | 40 | 42 |
Other comprehensive income, net of tax | 13 | 12 | 50 | 64 |
Balance at end of period | (1,001) | (1,243) | (1,001) | (1,243) |
Actuarial gain | 14 | 22 | ||
Foreign Currency Translation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Balance at beginning of period | (6) | (6) | (6) | (6) |
Other comprehensive income (loss) before reclassifications | (3) | (3) | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax | (3) | 0 | (3) | 0 |
Balance at end of period | $ (9) | $ (6) | $ (9) | $ (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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Curtailment gain | $ 4 | $ (8) | ||
Income tax effect of the above | $ (66) | $ (40) | (89) | (167) |
Total reclassification, net of tax | 87 | 80 | 553 | 435 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total reclassification, net of tax | 13 | 12 | 40 | 39 |
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 | 0 | 0 | (2) |
Curtailment gain | 0 | 0 | 0 | (1) |
Income tax effect of the above | 0 | 0 | 0 | 0 |
Total reclassification, net of tax | 0 | 0 | 0 | (3) |
Unamortized Actuarial Losses | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of actuarial losses | (16) | (16) | (48) | (54) |
Other items | 0 | 0 | 3 | 0 |
Income tax effect of the above | (3) | (4) | (11) | (12) |
Total reclassification, net of tax | $ 13 | $ 12 | $ 40 | $ 42 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net income attributable to Resolute Forest Products Inc. | $ 87 | $ 80 | $ 553 | $ 435 |
Denominator: | ||||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 77.5 | 79.4 | 77.4 | 80 |
Dilutive impact of nonvested stock unit awards and stock options (shares) | 0.9 | 0.7 | 0.8 | 0.8 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 78.4 | 80.1 | 78.2 | 80.8 |
Net income per share attributable to Resolute Forest Products Inc. common shareholders: | ||||
Basic (USD per share) | $ 1.12 | $ 1 | $ 7.14 | $ 5.44 |
Diluted (USD per share) | $ 1.11 | $ 0.99 | $ 7.07 | $ 5.39 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0.4 | 0 | 0.5 |
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 | 0 | 0 |
Inventories, Net - Summary (Det
Inventories, Net - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 186 | $ 159 |
Work in process | 80 | 57 |
Finished goods | 183 | 148 |
Mill stores and other supplies | 160 | 146 |
Inventories, net | $ 609 | $ 510 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Other Assets [Abstract] | |||
Countervailing duty cash deposits on softwood lumber (Note 13) | $ 424 | $ 339 | |
Anti-dumping duty cash deposits on softwood lumber (Note 13) | 111 | 58 | |
Equity method investments | 11 | 22 | |
Restricted cash | 33 | 40 | $ 40 |
Other | 27 | 25 | |
Other assets | $ 606 | $ 484 |
Accounts Payable and Other - Su
Accounts Payable and Other - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 338 | $ 262 |
Accrued compensation | 86 | 89 |
Accrued interest | 2 | 6 |
Pension and other postretirement benefit obligations | 13 | 14 |
Accrued provision related to Fibrek Inc. litigation (Note 13) | 20 | 21 |
Income and other taxes payable | 7 | 4 |
Other | 27 | 25 |
Accounts payable and accrued liabilities | $ 493 | $ 421 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt, including Current Portion (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Feb. 02, 2021 |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 4 | $ 6 | |
Other debt | 1 | 1 | |
Total debt | 301 | 302 | |
Less: Current portion of finance lease obligations and other debt | (1) | (2) | |
Long-term debt, net of current portion | 300 | 300 | |
Senior Notes | Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Principal amount | 300 | 300 | |
Deferred financing costs | (4) | (5) | |
Net carrying amount | $ 296 | $ 295 | |
Interest rate of notes (as a percent) | 4.875% | 4.875% |
Long-Term Debt - Debt Availabil
Long-Term Debt - Debt Availabilities (Details) $ in Millions, $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2022 CAD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) |
Debt Instrument [Line Items] | ||||
Available credit facility borrowing capacity | $ 874 | $ 841 | ||
Letters of credit outstanding to guarantee surety bonds | 62 | 53 | ||
Letters of credit outstanding related to lumber deposits | 101 | 83 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit amount outstanding | 82 | 73 | ||
ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Available credit facility borrowing capacity | 355 | 307 | ||
Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Available credit facility borrowing capacity | 159 | $ 220 | 174 | $ 220 |
Senior Secured Credit Facility | Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Available credit facility borrowing capacity | 180 | 180 | ||
Senior Secured Credit Facility | Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Available credit facility borrowing capacity | $ 180 | $ 180 |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes (Details) - Senior Notes - USD ($) | 9 Months Ended | ||
Feb. 02, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | $ 300,000,000 | ||
Interest rate of notes (as a percent) | 4.875% | 4.875% | |
Issue price (as a percent) | 100% | ||
Fair value of senior notes | $ 300,000,000 | $ 291,000,000 | |
Deferred financing costs | $ 6,000,000 | ||
Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate of notes (as a percent) | 5.875% | ||
Fair value of senior notes | $ 375,000,000 | ||
Redemption price (as a percent) | 100% | ||
Loss on extinguishment of debt | $ 3,000,000 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - Amended Senior Secured Credit Facility | Apr. 19, 2021 USD ($) |
Debt Instrument [Line Items] | |
Principal amount of debt | $ 360,000,000 |
Secured Debt | |
Debt Instrument [Line Items] | |
Principal amount of debt | $ 180,000,000 |
Delay draw period of debt instrument | 3 years |
Secured Debt | Term Loan Facility | |
Debt Instrument [Line Items] | |
Repayment of debt | $ 180,000,000 |
Secured Debt | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, term | 6 years |
Secured Debt | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, term | 10 years |
Line of Credit | |
Debt Instrument [Line Items] | |
Debt instrument, term | 6 years |
Maximum borrowing capacity of credit facility | $ 180,000,000 |
Uncommitted ability to increase borrowing capacity, maximum | $ 360,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility - USD ($) | Jan. 21, 2021 | May 14, 2019 |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity of credit facility | $ 450,000,000 | $ 500,000,000 |
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 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Costs Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-operating pension costs (credits) | $ 3 | $ (3) | $ 13 | $ (8) |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 35 | 33 | 106 | 100 |
Expected return on plan assets | (49) | (53) | (147) | (162) |
Amortization of actuarial losses | 17 | 18 | 52 | 59 |
Amortization of prior service costs | 0 | 1 | ||
Non-operating pension costs (credits) | 3 | (1) | 11 | (2) |
Service cost | 5 | 4 | 12 | 12 |
Net periodic benefit costs before special events | 8 | 3 | 23 | 10 |
Other loss (gain) | 0 | 0 | 3 | (1) |
Net periodic benefit cost | 8 | 3 | 26 | 9 |
OPEB Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 1 | 3 | 3 |
Amortization of actuarial losses | (1) | (2) | (4) | (5) |
Amortization of prior service costs | 0 | (1) | 0 | (3) |
Non-operating pension costs (credits) | 0 | (2) | (1) | (5) |
Service cost | 0 | 1 | 0 | 1 |
Net periodic benefit costs before special events | 0 | (1) | (1) | (4) |
Other loss (gain) | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0 | $ (1) | $ (1) | $ (4) |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Expense for the defined contribution plans | $ 4 | $ 5 | $ 13 | $ 14 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 153 | $ 120 | $ 642 | $ 603 |
Income tax provision: | ||||
Expected income tax provision | (32) | (26) | (135) | (127) |
Changes resulting from: | ||||
Valuation allowance | 33 | 11 | 219 | 89 |
Foreign exchange | (27) | (5) | (34) | (2) |
U.S. tax on non-U.S. earnings | (34) | (13) | (106) | (96) |
State income taxes, net of federal income tax benefit | 0 | (1) | (3) | 1 |
Foreign tax rate differences | (9) | (6) | (33) | (33) |
Other, net | 3 | 0 | 3 | 1 |
Income tax provision | $ (66) | $ (40) | $ (89) | $ (167) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | ||||
Valuation allowance | $ 33 | $ 11 | $ 219 | $ 89 |
U.S. | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | 673 | |||
Deferred income tax assets, amount likely to be realized before expiration | $ 105 | $ 105 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |||||||||||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 CAD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 CAD ($) | Sep. 30, 2022 CAD ($) | Aug. 09, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CAD ($) | Nov. 24, 2021 | Dec. 01, 2020 | Nov. 23, 2020 | Nov. 13, 2019 CAD ($) | Sep. 26, 2019 CAD ($) $ / shares | Nov. 02, 2017 | Jun. 26, 2017 | Apr. 24, 2017 | Jul. 31, 2012 | |
Loss Contingencies [Line Items] | |||||||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 18.07% | 18.07% | 10.10% | 19.10% | 14.70% | 12.82% | |||||||||||
Accumulated countervailing cash deposits made on softwood lumber exports | $ 424,000,000 | ||||||||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 4.76% | 11.59% | 1.15% | 3.20% | 4.59% | ||||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | 111,000,000 | ||||||||||||||||
Unpaid deposits for secured payment | 8,000,000 | ||||||||||||||||
Other liabilities | 91,000,000 | $ 88,000,000 | |||||||||||||||
Legal hypothec on immovable and movable property | $ 30 | ||||||||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | 108,000,000 | $ 150 | |||||||||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||||||||
Environmental liabilities | 16,000,000 | 13,000,000 | |||||||||||||||
Asset retirement obligations | 36,000,000 | 36,000,000 | |||||||||||||||
Fibrek | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Other liabilities | 20,000,000 | $ 28 | $ 21,000,000 | $ 27 | |||||||||||||
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 | $ 23,000,000 | $ 30 | |||||||||||||||
Amount paid, contingent consideration, business combination | 14,000,000 | $ 19 | |||||||||||||||
Surety Bond | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Surety bonds outstanding | 101,000,000 | ||||||||||||||||
Standby Letters of Credit | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Surety bonds outstanding | 62,000,000 | ||||||||||||||||
Softwood Lumber Duties Investigations | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Contingent loss recorded | $ 0 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 07, 2021 | Mar. 02, 2020 | |
Dividends Payable [Line Items] | ||||||
Share repurchase program, authorized amount | $ 100,000,000 | |||||
Share repurchase program, stock repurchased (shares) | 0 | 1,248,251 | 125,482 | 3,340,599 | ||
Average price of treasury stock acquired (USD per share) | $ 10.95 | $ 11.34 | $ 10.22 | |||
Share repurchase program, aggregate purchase price | $ 14,000,000 | $ 2,000,000 | $ 34,000,000 | |||
Share repurchase program, authorized maximum percentage of common stock to be repurchased (as a percent) | 15% | |||||
Special dividend | $ 0 | $ 0 | $ 79,000,000 | |||
Common stock, dividends declared (USD per share) | $ 1 | |||||
Dividend Declared | ||||||
Dividends Payable [Line Items] | ||||||
Stock-based compensation expense | $ 3,000,000 | |||||
Increase in additional paid-in capital | 2,000,000 | 2,000,000 | ||||
Increase in deficit | 2,000,000 | 2,000,000 | ||||
Increase in liabilities | $ 3,000,000 | $ 3,000,000 | ||||
December 2021 Share Repurchase Program | ||||||
Dividends Payable [Line Items] | ||||||
Share repurchase program, authorized amount (in shares) | 10,000,000 | |||||
Share repurchase program, authorized amount | $ 100,000,000 |
Segment Information - Segment R
Segment Information - Segment Reporting Information (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 03, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 974 | $ 817 | $ 2,977 | $ 2,830 | |
Depreciation and amortization | 34 | 42 | 101 | 123 | |
Operating income (loss) | 124 | 102 | 576 | 685 | |
Operating segments | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 265 | 234 | 687 | 609 | |
Depreciation and amortization | 5 | 6 | 16 | 18 | |
Operating income (loss) | 81 | 46 | 144 | 80 | |
Operating segments | Tissue | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 50 | 38 | 150 | 115 | |
Depreciation and amortization | 4 | 5 | 13 | 14 | |
Operating income (loss) | (12) | (9) | (30) | (18) | |
Operating segments | Wood Products | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 379 | 293 | 1,324 | 1,387 | |
Depreciation and amortization | 11 | 11 | 33 | 32 | |
Operating income (loss) | 42 | 64 | 441 | 690 | |
Joint venture sales | $ 12 | 22 | 55 | ||
Operating segments | Paper | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 280 | 252 | 816 | 719 | |
Depreciation and amortization | 10 | 15 | 29 | 46 | |
Operating income (loss) | 52 | 16 | 114 | (15) | |
Operating segments | Segment Total | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 974 | 817 | 2,977 | 2,830 | |
Depreciation and amortization | 30 | 37 | 91 | 110 | |
Operating income (loss) | 163 | 117 | 669 | 737 | |
Corporate and Other | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 4 | 5 | 10 | 13 | |
Operating income (loss) | (39) | (15) | (93) | (52) | |
Intersegment eliminations | Market Pulp | |||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 19 | $ 7 | $ 47 | $ 22 |