Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'RESOLUTE FOREST PRODUCTS INC. | ' |
Entity Central Index Key | '0001393066 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 94,479,131 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Statement [Abstract] | ' | ' | ' | ' | ||||
Sales | $1,130 | $1,153 | $3,311 | $3,375 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | 857 | 890 | 2,572 | 2,602 | ||||
Depreciation and amortization | 61 | 59 | 182 | 174 | ||||
Distribution costs | 134 | 131 | 387 | 385 | ||||
Selling, general and administrative expenses | 38 | 41 | 126 | 114 | ||||
Closure costs, impairment and other related charges | 4 | 5 | 56 | 98 | ||||
Net gain on disposition of assets | 0 | -4 | -2 | -28 | ||||
Operating income (loss) | 36 | [1] | 31 | [1] | -10 | [1] | 30 | [1] |
Interest expense | -12 | -17 | -39 | -51 | ||||
Other income (expense), net | 5 | 19 | -42 | 22 | ||||
Income (loss) before income taxes | 29 | 33 | -91 | 1 | ||||
Income tax (provision) benefit | -617 | 4 | -546 | 10 | ||||
Net (loss) income including noncontrolling interests | -588 | 37 | -637 | 11 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 1 | 35 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | ($588) | $37 | ($636) | $46 | ||||
Net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders: | ' | ' | ' | ' | ||||
Basic (in dollars per share) | ($6.22) | $0.38 | ($6.72) | $0.47 | ||||
Diluted (in dollars per share) | ($6.22) | $0.38 | ($6.72) | $0.47 | ||||
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ' | ' | ' | ' | ||||
Basic (in shares) | 94.6 | 98.1 | 94.7 | 98 | ||||
Diluted (in shares) | 94.6 | 98.1 | 94.7 | 98.1 | ||||
[1] | Corporate and other operating loss for the three and nine months ended September 30, 2013 and 2012 included the following significant items: Three Months Ended September 30, Nine Months Ended September 30,(Unaudited, in millions)2013 2012 2013 2012 Net gain on disposition of assets$— $4 $2 $28 Closure costs, impairment and other related charges (4) (5) (56) (98) Inventory write-downs related to closures — — (5) (7) Severance costs — — — (3) Transaction costs — — (5) (7) Start up costs of idled mill (3) (5) (31) (5) $(7) $(6) $(95) $(92) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (loss) income including noncontrolling interests | ($588) | $37 | ($637) | $11 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Change in unamortized prior service credits, net of tax | 11 | 0 | -3 | 11 |
Change in unamortized actuarial losses, net of tax | 31 | 1 | 55 | -20 |
Foreign currency translation | 2 | 2 | -3 | 0 |
Other comprehensive income (loss), net of tax | 44 | 3 | 49 | -9 |
Comprehensive (loss) income including noncontrolling interests | -544 | 40 | -588 | 2 |
Less: Comprehensive loss attributable to noncontrolling interests: | ' | ' | ' | ' |
Net loss | 0 | 0 | 1 | 35 |
Change in unamortized actuarial losses, net of tax, portion attributable to noncontrolling interests | 0 | 0 | 0 | 5 |
Foreign currency translation | 0 | 0 | 0 | 3 |
Comprehensive loss attributable to noncontrolling interests | ' | ' | 1 | 43 |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | ($544) | $40 | ($587) | $45 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Change in unamortized prior service credits and costs, including portion attributable to noncontrolling interests, tax portion | $8 | $0 | $3 | $0 |
Change in unamortized actuarial losses including portion attributable to noncontrolling interest, tax portion | 17 | 0 | 30 | 0 |
Change in unamortized actuarial losses attributable to noncontrolling interests, tax portion | ' | $0 | ' | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $271 | $263 |
Accounts receivable, net: | ' | ' |
Trade | 577 | 576 |
Other | 127 | 121 |
Inventories, net | 528 | 545 |
Deferred income tax assets | 44 | 56 |
Other current assets | 81 | 69 |
Total current assets | 1,628 | 1,630 |
Fixed assets, net | 2,330 | 2,440 |
Amortizable intangible assets, net | 66 | 69 |
Deferred income tax assets | 1,340 | 2,000 |
Other assets | 191 | 194 |
Total assets | 5,555 | 6,333 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 560 | 581 |
Current portion of long-term debt | 7 | 2 |
Total current liabilities | 567 | 583 |
Long-term debt, net of current portion | 597 | 532 |
Pension and other postretirement benefit obligations | 1,742 | 1,946 |
Deferred income tax liabilities | 38 | 75 |
Other long-term liabilities | 65 | 72 |
Total liabilities | 3,009 | 3,208 |
Commitments and contingencies | ' | ' |
Resolute Forest Products Inc. shareholders’ equity: | ' | ' |
Common stock, $0.001 par value. 117.0 shares issued and 94.5 shares outstanding as of September 30, 2013; 117.0 shares issued and 94.8 shares outstanding as of December 31, 2012 | 0 | 0 |
Additional paid-in capital | 3,749 | 3,730 |
(Deficit) retained earnings | -589 | 47 |
Accumulated other comprehensive loss | -565 | -614 |
Treasury stock at cost, 22.5 shares and 22.2 shares as of September 30, 2013 and December 31, 2012, respectively | -61 | -61 |
Total Resolute Forest Products Inc. shareholders’ equity | 2,534 | 3,102 |
Noncontrolling interests | 12 | 23 |
Total equity | 2,546 | 3,125 |
Total liabilities and equity | $5,555 | $6,333 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 117 | 117 |
Common stock, shares outstanding | 94.5 | 94.8 |
Treasury stock, shares | 22.5 | 22.2 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $3,483 | $0 | $3,687 | $47 | ($311) | $0 | $60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation costs for equity-classified awards | 4 | ' | 4 | ' | ' | ' | ' |
Net income (loss) | 11 | ' | ' | 46 | ' | ' | -35 |
Acquisition of Fibrek Inc. (2.8 newly-issued shares and 0.5 shares of treasury stock) (Note 2) | 43 | ' | 38 | -1 | ' | 6 | ' |
Purchases of treasury stock (3.7 shares) (Note 14) | -45 | ' | ' | ' | ' | -45 | ' |
Dividend paid to noncontrolling interest | -3 | ' | ' | ' | ' | ' | -3 |
Other comprehensive income (loss), net of tax | -9 | ' | ' | ' | -1 | ' | -8 |
Ending Balance at Sep. 30, 2012 | 3,484 | ' | 3,729 | 92 | -312 | -39 | 14 |
Beginning Balance at Dec. 31, 2012 | 3,125 | 0 | 3,730 | 47 | -614 | -61 | 23 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation costs for equity-classified awards | 5 | ' | 5 | ' | ' | ' | ' |
Net income (loss) | -637 | ' | ' | -636 | ' | ' | -1 |
Contribution of capital from noncontrolling interest | 5 | ' | ' | ' | ' | ' | 5 |
Acquisition of noncontrolling interest | ' | ' | 14 | ' | ' | ' | -14 |
Dividend paid to noncontrolling interest | -1 | ' | ' | ' | ' | ' | -1 |
Other comprehensive income (loss), net of tax | 49 | ' | ' | ' | 49 | ' | ' |
Ending Balance at Sep. 30, 2013 | $2,546 | ' | $3,749 | ($589) | ($565) | ($61) | $12 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity (Parenthetical) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Purchases of treasury stock, shares | 0 | 3,700,000 |
Distribution of common stock from the share reserve, shares | 300,000 | ' |
Common Stock [Member] | ' | ' |
Acquisition of Fibrek Inc, shares | ' | 2,800,000 |
Treasury Stock [Member] | ' | ' |
Acquisition of Fibrek Inc, shares | ' | 500,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash flows from operating activities: | ' | ' | ||
Net (loss) income including noncontrolling interests | ($637) | $11 | ||
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities: | ' | ' | ||
Share-based compensation | 5 | 4 | ||
Depreciation and amortization | 182 | 174 | ||
Closure costs, impairment and other related charges | 47 | 89 | ||
Inventory write-downs related to closures | 5 | 7 | ||
Deferred income taxes | 546 | -6 | ||
Net pension contributions | -65 | -71 | ||
Net gain on disposition of assets | -2 | -28 | ||
Loss (gain) on translation of foreign currency denominated deferred income taxes | 53 | -49 | ||
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations | -52 | 39 | ||
Gain on forgiveness of note payable | -12 | [1] | 0 | [1] |
Net loss on extinguishment of debt | 59 | 0 | ||
Net planned major maintenance payments (Note 1) | -6 | -14 | ||
Dividends received from equity method investees in excess of income | 5 | 2 | ||
Changes in working capital: | ' | ' | ||
Accounts receivable | -8 | 51 | ||
Inventories | 12 | -9 | ||
Other current assets | -5 | 9 | ||
Accounts payable and accrued liabilities | -5 | -11 | ||
Other, net | -12 | -6 | ||
Net cash provided by operating activities | 110 | 192 | ||
Cash flows from investing activities: | ' | ' | ||
Cash invested in fixed assets | -124 | -102 | ||
Disposition of assets | 4 | 31 | ||
Proceeds from insurance settlements | 4 | 0 | ||
Acquisition of Fibrek Inc., net of cash acquired | 0 | -24 | ||
Decrease in restricted cash | 3 | 76 | ||
Increase in deposit requirements for letters of credit, net | 0 | -12 | ||
Net cash (used in) provided by investing activities | -113 | -31 | ||
Cash flows from financing activities: | ' | ' | ||
Issuance of long-term debt | 594 | 0 | ||
Premium paid on extinguishment of debt | -84 | 0 | ||
Purchases of treasury stock | 0 | -45 | ||
Dividends to noncontrolling interests | -1 | -3 | ||
Acquisition of noncontrolling interest | 0 | -27 | ||
Payments of debt | -497 | -112 | ||
Payments of financing and credit facility fees | -9 | 0 | ||
Contribution of capital from noncontrolling interest | 8 | 0 | ||
Net cash provided by (used in) financing activities | 11 | -187 | ||
Net increase (decrease) in cash and cash equivalents | 8 | -26 | ||
Cash and cash equivalents: | ' | ' | ||
Beginning of period | 263 | 369 | ||
End of period | $271 | $343 | ||
[1] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Organization and Basis of Presentation | ' | ||||||||||||||||||||||||
Note 1. Organization and Basis of Presentation | |||||||||||||||||||||||||
Nature of operations | |||||||||||||||||||||||||
Resolute Forest Products Inc. (with its subsidiaries and affiliates, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry, operating pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. We offer a diverse range of products, including newsprint, coated papers, specialty papers, market pulp and wood products. | |||||||||||||||||||||||||
Financial statements | |||||||||||||||||||||||||
Our interim consolidated financial statements are unaudited and have been prepared in accordance with the requirements of the United States Securities and Exchange Commission (the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by United States generally accepted accounting principles (“U.S. GAAP”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim consolidated financial statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. These unaudited interim consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on March 1, 2013. | |||||||||||||||||||||||||
Change in accounting policy for repairs and maintenance costs | |||||||||||||||||||||||||
In the second quarter of 2013, we changed our accounting policy for repairs and maintenance costs associated with planned major maintenance activities. Previously, all repairs and maintenance costs, including those associated with planned major maintenance, were expensed as incurred. We elected to change our accounting policy for planned major maintenance costs to the deferral method, whereby the costs of each planned major maintenance activity are amortized on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repairs and maintenance costs continue to be expensed as incurred. We believe that the deferral method is preferable as the economic benefit associated with planned major maintenance activities are more appropriately recognized over the period of future benefit, which is not limited to the period the expense is incurred. In addition, the deferral method enhances the comparability of our financial results with our peer companies. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 250, “Accounting Changes and Error Corrections,” we have applied the change in accounting policy retroactively by adjusting our comparative consolidated financial statements for the effect of this change. As a result of the change, retained earnings as of December 31, 2011 increased by $6 million, which represents the cumulative effect of the change on prior periods. | |||||||||||||||||||||||||
The effect of the change in accounting policy on our Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | Before | Adjustment | As | As | Effect of | As Adjusted | |||||||||||||||||||
Accounting | Reported | Previously | Change | ||||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | $ | 856 | $ | 1 | $ | 857 | $ | 895 | $ | (5 | ) | $ | 890 | ||||||||||||
Income before income taxes | 30 | (1 | ) | 29 | 28 | 5 | 33 | ||||||||||||||||||
Income tax (provision) benefit | (621 | ) | 4 | (617 | ) | 3 | 1 | 4 | |||||||||||||||||
Net (loss) income including noncontrolling interests | (591 | ) | 3 | (588 | ) | 31 | 6 | 37 | |||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | (591 | ) | 3 | (588 | ) | 31 | 6 | 37 | |||||||||||||||||
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | (6.25 | ) | 0.03 | (6.22 | ) | 0.32 | 0.06 | 0.38 | |||||||||||||||||
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | (6.25 | ) | 0.03 | (6.22 | ) | 0.32 | 0.06 | 0.38 | |||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (547 | ) | 3 | (544 | ) | 34 | 6 | 40 | |||||||||||||||||
The effect of the change in accounting policy on our Consolidated Statements of Operations for the nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | Before | Adjustment | As | As | Effect of | As | |||||||||||||||||||
Accounting | Reported | Previously | Change | Adjusted | |||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | $ | 2,578 | $ | (6 | ) | $ | 2,572 | $ | 2,616 | $ | (14 | ) | $ | 2,602 | |||||||||||
(Loss) income before income taxes | (97 | ) | 6 | (91 | ) | (13 | ) | 14 | 1 | ||||||||||||||||
Income tax (provision) benefit | (546 | ) | — | (546 | ) | 12 | (2 | ) | 10 | ||||||||||||||||
Net (loss) income including noncontrolling interests | (643 | ) | 6 | (637 | ) | (1 | ) | 12 | 11 | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | (642 | ) | 6 | (636 | ) | 34 | 12 | 46 | |||||||||||||||||
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | (6.78 | ) | 0.06 | (6.72 | ) | 0.35 | 0.12 | 0.47 | |||||||||||||||||
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | (6.78 | ) | 0.06 | (6.72 | ) | 0.35 | 0.12 | 0.47 | |||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (593 | ) | 6 | (587 | ) | 33 | 12 | 45 | |||||||||||||||||
The effect of the change in accounting policy on our Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions) | Before | Adjustment | As | As | Effect of | As Adjusted | |||||||||||||||||||
Accounting | Reported | Previously | Change | ||||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Other current assets | $ | 64 | $ | 17 | $ | 81 | $ | 58 | $ | 11 | $ | 69 | |||||||||||||
Deferred income tax assets (non-current) | 1,342 | (2 | ) | 1,340 | 2,002 | (2 | ) | 2,000 | |||||||||||||||||
(Deficit) retained earnings | (604 | ) | 15 | (589 | ) | 38 | 9 | 47 | |||||||||||||||||
There was no impact on net cash provided by operating activities for all periods as a result of the change in accounting policy. |
Acquisition_of_Fibrek_Inc
Acquisition of Fibrek Inc. | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition of Fibrek Inc. | ' | ||||||||
Note 2. Acquisition of Fibrek Inc. | |||||||||
On May 2, 2012, in connection with an offer to purchase all of the issued and outstanding shares of Fibrek Inc. (“Fibrek”), a producer and marketer of virgin and recycled kraft pulp operating three mills, we acquired a controlling interest in Fibrek and began consolidating its results of operations, financial position and cash flows in our consolidated financial statements. Fibrek’s results of operations have been included in the market pulp segment. | |||||||||
Our acquisition of Fibrek was achieved in stages. In connection with the offer, between April 11, 2012 and April 25, 2012, we acquired approximately 48.8% of the then outstanding Fibrek shares. We accounted for this equity interest in Fibrek as an available for sale investment since we had no ability to exert significant influence over Fibrek at any time prior to acquiring a controlling interest. | |||||||||
On May 2, 2012 (the “acquisition date”), we acquired additional shares of Fibrek, after which we owned a controlling interest in Fibrek (approximately 50.1% of the then outstanding Fibrek shares) and Fibrek became a consolidated subsidiary. The acquisition of a controlling interest in Fibrek was accounted for as a business combination in accordance with the acquisition method of accounting pursuant to Financial Accounting Standards Board Accounting Standards Codification 805, “Business Combinations.” On the acquisition date, we remeasured our initial equity investment in Fibrek at the acquisition-date fair value, resulting in a loss of $1 million, which was recorded in “Other income (expense), net” in our Consolidated Statements of Operations for the nine months ended September 30, 2012. Additionally, “Selling, general and administrative expenses” in our Consolidated Statements of Operations for the nine months ended September 30, 2012 included $7 million of transaction costs associated with the acquisition of our controlling interest in Fibrek. | |||||||||
Subsequent to the May 2, 2012 acquisition date and prior to September 30, 2012, we acquired the remaining noncontrolling interest in Fibrek, which we accounted for as equity transactions whereby we adjusted the carrying amount of the noncontrolling interest in Fibrek to reflect the change in our ownership interest in Fibrek. As consideration for this additional equity interest in Fibrek, we distributed approximately 1.4 million shares of our common stock and Cdn$27 million ($27 million, based on the exchange rates in effect on each of the dates we acquired the shares of Fibrek) in cash. Transaction costs of approximately $1 million associated with this acquisition of noncontrolling interest in Fibrek were recorded in “Additional paid-in capital” in our Consolidated Balance Sheet as of September 30, 2012. | |||||||||
As aggregate consideration for all of the Fibrek shares we purchased, we distributed approximately 3.3 million shares of our common stock and Cdn$63 million ($63 million, based on the exchange rates in effect on each of the dates we acquired the shares of Fibrek) in cash. See Note 13, "Commitments and Contingencies,” for additional information. | |||||||||
The following unaudited pro forma information for the three and nine months ended September 30, 2012 represents our results of operations as if the acquisition of Fibrek had occurred on January 1, 2012. 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. | |||||||||
(Unaudited, in millions except per share data) | Three Months Ended September 30, 2012 | Nine Months Ended | |||||||
September 30, 2012 | |||||||||
Sales | $ | 1,153 | $ | 3,540 | |||||
Net income attributable to Resolute Forest Products Inc. | 37 | 42 | |||||||
Basic net income per share attributable to Resolute Forest Products Inc. | 0.38 | 0.43 | |||||||
Diluted net income per share attributable to Resolute Forest Products Inc. | 0.38 | 0.43 | |||||||
The unaudited pro forma net income attributable to Resolute Forest Products Inc. for the nine months ended September 30, 2012 excludes $18 million of both our and Fibrek’s transaction costs associated with the acquisition. |
Closure_Costs_Impairment_and_O
Closure Costs, Impairment and Other Related Charges | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Closure Costs, Impairment and Other Related Charges | ' | ||||||||||||||||||||
Note 3. Closure Costs, Impairment and Other Related Charges | |||||||||||||||||||||
Closure costs, impairment and other related charges for the three and nine months ended September 30, 2013 were comprised of the following: | |||||||||||||||||||||
(Unaudited, in millions) | Accelerated Depreciation | Pension Plan Curtailment Loss and Settlement (Gain) | Severance and Other Costs | Total | |||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Paper machine in Calhoun, Tennessee (1) | |||||||||||||||||||||
Third quarter | $ | — | $ | — | $ | — | $ | — | |||||||||||||
First nine months | 44 | — | 5 | 49 | |||||||||||||||||
Kraft mill and paper machine in Fort Frances, Ontario | |||||||||||||||||||||
Third quarter | — | — | — | — | |||||||||||||||||
First nine months | — | — | 4 | 4 | |||||||||||||||||
Restructuring initiative: | |||||||||||||||||||||
Baie-Comeau, Québec paper mill | |||||||||||||||||||||
Third quarter | — | 2 | 2 | 4 | |||||||||||||||||
First nine months | — | 2 | 2 | 4 | |||||||||||||||||
Other | |||||||||||||||||||||
Third quarter | — | — | — | — | |||||||||||||||||
First nine months | — | (1 | ) | — | (1 | ) | |||||||||||||||
Total | |||||||||||||||||||||
Third quarter | $ | — | $ | 2 | $ | 2 | $ | 4 | |||||||||||||
First nine months | 44 | 1 | 11 | 56 | |||||||||||||||||
(1) | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, "Other Income (Expense), Net.” | ||||||||||||||||||||
Closure costs, impairment and other related charges for the three and nine months ended September 30, 2012 were comprised of the following: | |||||||||||||||||||||
(Unaudited, in millions) | Impairment of Assets | Accelerated Depreciation | Pension Plan Curtailment and Settlement Losses | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Bowater Mersey Paper Company Limited (1) | |||||||||||||||||||||
Third quarter | $ | (7 | ) | $ | — | $ | — | $ | 5 | $ | (2 | ) | |||||||||
First nine months | 63 | — | 9 | 14 | 86 | ||||||||||||||||
Kraft mill in Fort Frances, Ontario | |||||||||||||||||||||
Third quarter | — | 1 | — | 2 | 3 | ||||||||||||||||
First nine months | — | 1 | — | 2 | 3 | ||||||||||||||||
Paper machine in Catawba, South Carolina | |||||||||||||||||||||
Third quarter | 1 | — | — | — | 1 | ||||||||||||||||
First nine months | 1 | — | — | — | 1 | ||||||||||||||||
Restructuring initiatives: | |||||||||||||||||||||
Catawba paper mill | |||||||||||||||||||||
Third quarter | — | — | — | 3 | 3 | ||||||||||||||||
First nine months | — | — | — | 3 | 3 | ||||||||||||||||
Baie-Comeau, paper mill | |||||||||||||||||||||
Third quarter | — | — | — | — | — | ||||||||||||||||
First nine months | — | — | 3 | 1 | 4 | ||||||||||||||||
Other | |||||||||||||||||||||
Third quarter | — | — | — | — | — | ||||||||||||||||
First nine months | — | — | 2 | (1 | ) | 1 | |||||||||||||||
Total | |||||||||||||||||||||
Third quarter | $ | (6 | ) | $ | 1 | $ | — | $ | 10 | $ | 5 | ||||||||||
First nine months | 64 | 1 | 14 | 19 | 98 | ||||||||||||||||
(1) | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling of our operations in Bowater Mersey Paper Company Limited (our “Mersey operations”) to reduce the carrying value of our net assets to fair value less costs to sell. |
Net_Gain_on_Disposition_of_Ass
Net Gain on Disposition of Assets | 9 Months Ended |
Sep. 30, 2013 | |
Gain (Loss) on Disposition of Assets [Abstract] | ' |
Net Gain on Disposition of Assets | ' |
Note 4. Net Gain on Disposition of Assets | |
During the nine months ended September 30, 2013, we sold a parcel of land in Fort Frances and various other assets for total consideration of $2 million, resulting in a net gain on disposition of assets of approximately $2 million. | |
During the three months ended September 30, 2012, we sold a parcel of land in Gatineau, Québec and various other assets for total consideration of $9 million, resulting in a net gain on disposition of assets of $4 million. During the nine months ended September 30, 2012, we also sold our Petit Saguenay, Québec sawmill, our recycling division’s assets located in Phoenix, Arizona, a portion of our Mersey timberlands in Nova Scotia and various other assets for total consideration of $27 million, resulting in a net gain on disposition of assets of $24 million. |
Other_Income_Expense_Net
Other Income (Expense), Net | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||||
Note 5. Other Income (Expense), Net | ||||||||||||||||||
Other income (expense), net for the three and nine months ended September 30, 2013 and 2012 was comprised of the following: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign exchange gain (loss) | $ | 3 | $ | 18 | $ | (9 | ) | $ | 21 | |||||||||
Net loss on extinguishment of debt (Note 10) | — | — | (59 | ) | — | |||||||||||||
Post-emergence costs (1) | — | (2 | ) | (1 | ) | (7 | ) | |||||||||||
Gain on forgiveness of note payable (2) | — | — | 12 | — | ||||||||||||||
Gain on liquidation settlement (3) | 3 | — | 12 | — | ||||||||||||||
Income from equity method investments | 1 | 1 | 1 | 3 | ||||||||||||||
Interest income | — | — | 1 | 3 | ||||||||||||||
Miscellaneous (expense) income | (2 | ) | 2 | 1 | 2 | |||||||||||||
$ | 5 | $ | 19 | $ | (42 | ) | $ | 22 | ||||||||||
(1) | Primarily represents legal and other professional fees for the resolution and settlement of disputed creditor claims, as well as costs for other post-emergence activities associated with the creditor protection proceedings, from which we emerged on December 9, 2010. For additional information, see Note 14, "Share Capital.” | |||||||||||||||||
(2) | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||||||||||||||
(3) | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $3 million and $12 million during the three and nine months ended September 30, 2013, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Note 6. Accumulated Other Comprehensive Loss | |||||||||||||||||
The change in our accumulated other comprehensive loss by component (net of tax) for the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits (1)(3) | Unamortized Actuarial Losses (1)(2)(4) | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2012 | $ | 21 | $ | (640 | ) | $ | 5 | $ | (614 | ) | |||||||
Other comprehensive (loss) income before reclassifications | (1 | ) | 42 | (3 | ) | 38 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss (5) | (2 | ) | 13 | — | 11 | ||||||||||||
Net current period other comprehensive (loss) income | (3 | ) | 55 | (3 | ) | 49 | |||||||||||
Balance as of September 30, 2013 | $ | 18 | $ | (585 | ) | $ | 2 | $ | (565 | ) | |||||||
(1) | In the third quarter of 2013, we approved the reduction in benefits for U.S. salaried post-65 retirees in our other postretirement benefit (“OPEB”) plan, effective January 1, 2014. As a result of this plan amendment, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013, were decreased by $57 million and $35 million (net of tax of $22 million), respectively, and consisted of $13 million (net of tax of $8 million ) of unamortized prior service credits and $22 million (net of tax of $14 million) of unamortized actuarial losses. | ||||||||||||||||
(2) | In September 2013, we announced a workforce reduction at our Baie-Comeau paper mill, which will result in the elimination of approximately 90 positions. As a result, "Pension and other postretirement benefit obligations" and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $8 million and $6 million (net of tax of $2 million), respectively. | ||||||||||||||||
(3) | In the second quarter of 2013, following the restart of our previously idled Gatineau paper mill, 119 employees were reinstated to our pension plans. As a result, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were increased by $18 million and $13 million (net of tax of $5 million), respectively. | ||||||||||||||||
(4) | In the second quarter of 2013, we recorded certain adjustments associated with our previously reported pension and OPEB obligations. As a result, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $27 million and $17 million (net of tax of $10 million), respectively. | ||||||||||||||||
(5) | See the table below for details about these reclassifications. | ||||||||||||||||
The reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2013 were comprised of the following: | |||||||||||||||||
(Unaudited, in millions) | Amounts Reclassified From Accumulated Other Comprehensive Loss | Affected Line in the Consolidated Statements of Operations | |||||||||||||||
Unamortized Prior Service Credits | |||||||||||||||||
Amortization of prior service credits | $ | (2 | ) | Cost of sales, excluding depreciation and amortization (1) | |||||||||||||
— | Income tax (provision) benefit | ||||||||||||||||
$ | (2 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 18 | Cost of sales, excluding depreciation and amortization (1) | ||||||||||||||
(5 | ) | Income tax (provision) benefit | |||||||||||||||
$ | 13 | Net of tax | |||||||||||||||
Total Reclassifications | $ | 11 | Net of tax | ||||||||||||||
(1) | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 11, "Employee Benefit Plans.” |
Net_Loss_Income_Per_Share
Net (Loss) Income Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Net (Loss) Income Per Share | ' | |||||||||||||
Note 7. Net (Loss) Income Per Share | ||||||||||||||
The weighted-average number of common shares outstanding used to calculate the basic and diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Basic weighted-average number of common shares outstanding | 94.6 | 98.1 | 94.7 | 98 | ||||||||||
Diluted weighted-average number of common shares outstanding | 94.6 | 98.1 | 94.7 | 98.1 | ||||||||||
No adjustments to net (loss) income attributable to Resolute Forest Products Inc. common shareholders were necessary to calculate basic and diluted net (loss) income per share for all periods presented. | ||||||||||||||
The weighted-average number of option shares and equity-classified restricted stock units (“RSUs”) and deferred stock units (“DSUs”) outstanding for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Unaudited, in millions) | 2013 (1) | 2012 (2) | 2013 (1) | 2012 (2) | ||||||||||
Option shares | 1.4 | 0.8 | 1.4 | 0.8 | ||||||||||
RSUs and DSUs | 0.7 | 0.4 | 0.7 | 0.4 | ||||||||||
(1) | These option shares and RSUs and DSUs were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | |||||||||||||
(2) | The dilutive impact of these option shares and RSUs and DSUs on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. |
Inventories_Net
Inventories, Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories, Net | ' | ||||||||
Note 8. Inventories, Net | |||||||||
Inventories, net as of September 30, 2013 and December 31, 2012 were comprised of the following: | |||||||||
(Unaudited, in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Raw materials and work in process | $ | 147 | $ | 181 | |||||
Finished goods | 198 | 188 | |||||||
Mill stores and other supplies | 183 | 176 | |||||||
$ | 528 | $ | 545 | ||||||
During the nine months ended September 30, 2013, we recorded charges for write-downs of inventory of $4 million and $1 million related to the indefinite idling of a paper machine in Calhoun and Fort Frances, respectively. During the nine months ended September 30, 2012, we recorded charges of $7 million for write-downs of inventory as a result of the indefinite idling of our Mersey operations. These charges were included in “Cost of sales, excluding depreciation and amortization” in our Consolidated Statements of Operations. |
Severance_Related_Liabilities
Severance Related Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Severance Related Liabilities | ' | ||||||||||||||||
Note 9. Severance Related Liabilities | |||||||||||||||||
The activity in our severance related liabilities for the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Unaudited, in millions) | Initiatives | Initiatives | Initiatives | Total | |||||||||||||
Balance as of December 31, 2012 | $ | — | $ | 13 | $ | 2 | $ | 15 | |||||||||
Charges | 6 | 3 | (1 | ) | 8 | ||||||||||||
Payments | (4 | ) | (11 | ) | (1 | ) | (16 | ) | |||||||||
Balance as of September 30, 2013 | $ | 2 | $ | 5 | $ | — | $ | 7 | |||||||||
During the nine months ended September 30, 2013, we recorded severance costs primarily as a result of the indefinite idling of a paper machine in both Calhoun and Fort Frances as well as a workforce reduction at our Baie-Comeau paper mill. The remaining severance liability is expected to be paid within one year. | |||||||||||||||||
Severance costs were included in “Cost of sales, excluding depreciation and amortization,” “Selling, general and administrative expenses” or “Closure costs, impairment and other related charges” in our Consolidated Statements of Operations. The severance accruals were included in “Accounts payable and accrued liabilities” in our Consolidated Balance Sheets. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Note 10. Long-Term Debt | |||||||||
Overview | |||||||||
Long-term debt, including current portion, as of September 30, 2013 and December 31, 2012 was comprised of the following: | |||||||||
(Unaudited, in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | — | |||||
Unamortized discount | (6 | ) | — | ||||||
Total senior notes due 2023 | 594 | — | |||||||
10.25% senior secured notes due 2018: | |||||||||
Principal amount | 5 | 501 | |||||||
Unamortized premium | — | 27 | |||||||
Total senior secured notes due 2018 | 5 | 528 | |||||||
Other debt: | |||||||||
PSIF – Investissement Québec loan | 2 | 3 | |||||||
Capital lease obligation | 3 | 3 | |||||||
Total other debt | 5 | 6 | |||||||
Total debt | 604 | 534 | |||||||
Less: Current portion of long-term debt | (7 | ) | (2 | ) | |||||
Long-term debt, net of current portion | $ | 597 | $ | 532 | |||||
Senior notes | |||||||||
2023 Notes | |||||||||
On May 8, 2013, we issued $600 million aggregate principal amount of 5.875% senior notes due 2023 (the “2023 Notes”) pursuant to an indenture as of that date (the “indenture”). Upon their issuance, the 2023 Notes were recorded at their fair value of $594 million, which reflected a discount of $6 million that is being amortized to interest expense using the interest method over the term of the notes, resulting in an effective interest rate of 6.0%. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, beginning November 15, 2013, until their maturity date of May 15, 2023. | |||||||||
The notes are guaranteed by our current and future wholly-owned U.S. subsidiaries (the “guarantors”). The notes are unsecured and effectively junior to indebtedness under the ABL Credit Facility (as defined and discussed below) to the extent of the value of the collateral that secures the ABL Credit Facility and to future secured indebtedness. In addition, the notes are structurally subordinated to all existing and future liabilities of our subsidiaries that do not guarantee the notes. | |||||||||
The terms of the indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur, assume or guarantee additional indebtedness; issue redeemable stock and preferred stock; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain debt; make loans and investments; incur liens; issue dividends, make loans or transfer assets from our subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; consolidate or merge with or into, or sell substantially all of our assets to, another person; enter into transactions with affiliates; and enter into new lines of business. | |||||||||
At any time prior to May 15, 2017, we may redeem some or all of the notes at a redemption price of 100% of the principal amount, plus accrued and unpaid interest and a “make-whole” premium. We may redeem up to 35% of the notes before May 15, 2016 using proceeds from certain equity offerings at a price of 105.875% of the principal amount. In the event of a change of control, each holder will have the right to require us to repurchase all or any part of that holder’s notes at a purchase price in cash equal to 101% of the aggregate principal amount of the notes plus any accrued and unpaid interest. If we sell certain of our assets and do not use the proceeds to pay down certain indebtedness, purchase additional assets or make capital expenditures, each as specified in the indenture, we must offer to purchase the notes at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest with the net cash proceeds from the asset sale. | |||||||||
On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: | |||||||||
Year (beginning May 15) | Redemption Price | ||||||||
2017 | 104.41% | ||||||||
2018 | 102.94% | ||||||||
2019 | 101.47% | ||||||||
2020 and thereafter | 100.00% | ||||||||
In connection with the offering of the 2023 Notes, we and the guarantors entered into a registration rights agreement, dated as of May 8, 2013, with the initial purchasers of the 2023 Notes. Under the terms of the registration rights agreement, we agreed to use our commercially reasonable efforts to file with the SEC and cause to become effective a registration statement relating to an offer (which we refer to as the “exchange offer”) to: (i) exchange the 2023 Notes for registered notes (which we refer to as the “exchange notes”), with substantially the same terms as the 2023 Notes; and (ii) exchange the guarantees related to the 2023 Notes for registered guarantees relating to the exchange notes, with substantially the same terms as the original guarantees. We have agreed to use our commercially reasonable efforts to cause the exchange offer to be completed within 400 days after the issuance of the 2023 Notes. In addition, we have agreed to file (and seek effectiveness of) a shelf registration statement, in certain circumstances, that would allow certain holders to offer some or all of the 2023 Notes to the public. | |||||||||
If the exchange offer is not so completed, or if the shelf registration statement is not effective in the required circumstances, the annual interest rate on the 2023 notes will increase by 0.25% per annum for the first 90-day period following the event triggering the increase. The interest rate on the 2023 Notes will increase by 0.25% per annum at the beginning of each subsequent 90-day period, up to a maximum of 1.0% additional interest per annum, until the exchange offer is completed or the shelf registration statement is filed, as applicable. | |||||||||
The fair value of the 2023 Notes was $530 million as of September 30, 2013 and was determined by reference to over-the-counter prices (Level 2). | |||||||||
In connection with the issuance of the notes, we incurred fees of approximately $9 million, which were recorded as deferred financing costs in “Other assets” in our Consolidated Balance Sheet as of September 30, 2013, and are being amortized to interest expense using the interest method over the term of the notes. | |||||||||
2018 Notes | |||||||||
Our 10.25% senior secured notes (the “2018 Notes”) had a maturity date of October 15, 2018. Interest was payable on the notes on April 15 and October 15 of each year until maturity. | |||||||||
On May 8, 2013, we used the proceeds of the sale of the 2023 Notes to purchase $496 million aggregate principal amount of the 2018 Notes, or 99% of the outstanding amount, in connection with the tender offer and consent solicitation that expired on May 21, 2013. Aggregate consideration for the purchase was $584 million, including accrued and unpaid interest of $4 million, and in connection therewith, we entered into a supplemental indenture to implement certain changes to the 2018 Notes indenture and to release the collateral securing the 2018 Notes. Accordingly, we recorded a loss on extinguishment of debt of $59 million (net of $25 million write-down of unamortized premium) in “Other income (expense), net” in our Consolidated Statements of Operations for the nine months ended September 30, 2013. | |||||||||
On October 8, 2013, we redeemed the remaining $5 million of principal amount of the 2018 Notes at a redemption price of 103% of the principal amount, plus accrued and unpaid interest and this amount was included in "Current portion of long-term debt" in our Consolidated Balance Sheet as of September 30, 2013. | |||||||||
The fair value of the 2018 Notes was $5 million and $576 million as of September 30, 2013 and December 31, 2012, respectively, and was determined by reference to quoted market prices. In the second quarter of 2013, the 2018 Notes were reclassified from Level 1 to Level 2 as they were no longer traded in active markets. | |||||||||
ABL Credit Facility | |||||||||
Our senior secured asset-based revolving credit facility (the “ABL Credit Facility”), as amended, matures October 28, 2016. On April 29, 2013, we entered into an agreement with the administrative agent for the ABL Credit Facility and Bank of America, N.A., Canadian Branch, in order to add Bank of America as a lender thereunder, and also increase the aggregate commitments of the ABL Credit Facility by $65 million to $665 million, subject to borrowing base limitations. As of September 30, 2013, we had no borrowings and $45 million of letters of credit outstanding under the ABL Credit Facility. As of September 30, 2013, we had $566 million of availability under the ABL Credit Facility, which was comprised of $357 million for the U.S. borrowers (Resolute Forest Products Inc., Resolute FP US Inc. and AbiBow Recycling LLC) and $209 million for the Canadian borrower (Resolute FP Canada Inc.). | |||||||||
PSIF – Investissement Québec | |||||||||
Our loan granted by Investissement Québec through the Soutien à l’industrie forestière program (“PSIF”) is interest-free and payable in monthly installments over a maximum of four years, starting December 31, 2010. As of September 30, 2013, the fair value of the loan approximated its carrying value of $2 million. The fair value was determined by discounting the cash flows using a current interest rate (4.4%) for financial instruments with similar characteristics and maturities (Level 3). | |||||||||
Capital lease obligation | |||||||||
We have a capital lease obligation for a warehouse, which can be renewed for 20 years at our option. Minimal payments are determined by an escalatory price clause. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||
Note 11. Employee Benefit Plans | ||||||||||||||||||
Pension and OPEB plans | ||||||||||||||||||
The components of net periodic benefit cost relating to our pension and OPEB plans for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||
Pension Plans: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 8 | $ | 8 | $ | 24 | $ | 26 | ||||||||||
Interest cost | 68 | 79 | 208 | 231 | ||||||||||||||
Expected return on plan assets | (77 | ) | (86 | ) | (232 | ) | (253 | ) | ||||||||||
Amortization of actuarial losses | 7 | 1 | 19 | 1 | ||||||||||||||
Amortization of prior service credits | (1 | ) | — | (2 | ) | — | ||||||||||||
Settlement and curtailments | 2 | — | 1 | 14 | ||||||||||||||
$ | 7 | $ | 2 | $ | 18 | $ | 19 | |||||||||||
OPEB Plans: | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 3 | $ | 2 | ||||||||||
Interest cost | 3 | 5 | 11 | 15 | ||||||||||||||
Amortization of actuarial gains | (1 | ) | — | (1 | ) | — | ||||||||||||
$ | 3 | $ | 6 | $ | 13 | $ | 17 | |||||||||||
Event impacting net periodic benefit cost for the three and nine months ended September 30, 2013 | ||||||||||||||||||
In September 2013, we announced a workforce reduction at our Baie-Comeau paper mill, which will result in the elimination of approximately 90 positions. A curtailment loss of $2 million was included in the net periodic benefit cost of our pension plans for the three months ended September 30, 2013. | ||||||||||||||||||
Events impacting net periodic benefit cost for the nine months ended September 30, 2012 | ||||||||||||||||||
In June 2012, we announced the indefinite idling of part of our Mersey operations, which resulted in the elimination of approximately 176 positions. A curtailment loss of $7 million was included in the net periodic benefit cost of our pension plans for the nine months ended September 30, 2012. In addition, as a result of a workforce reduction at our Mersey operations in the fourth quarter of 2011, approximately 97 positions were eliminated. A settlement loss of $2 million was included in the net periodic benefit cost of our pension plans for the nine months ended September 30, 2012. | ||||||||||||||||||
In March 2012, we announced a workforce reduction at our Baie-Comeau paper mill, which resulted in the elimination of approximately 90 positions. A curtailment loss of $3 million was included in the net periodic benefit cost of our pension plans for the nine months ended September 30, 2012. | ||||||||||||||||||
The cost of these curtailments and settlement was included in “Closure costs, impairment and other related charges” in our Consolidated Statements of Operations for the respective periods. | ||||||||||||||||||
Defined contribution plans | ||||||||||||||||||
The expense for our defined contribution plans totaled $6 million and $5 million for the three months ended September 30, 2013 and 2012, respectively, and $17 million and $16 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
Canadian pension funding | ||||||||||||||||||
On April 26, 2013, we reached an agreement in principle with our stakeholders in Québec, the provincial government, and its pension regulator, concerning the previously-disclosed funding relief measures, solvency deficit and corrective measures related to our material Canadian registered pension plans. Under the agreement in principle, we would agree to make incremental contributions beyond the basic funding requirements under the existing framework in order to secure longer-term funding stability. We continue to engage our Ontario stakeholders and the provincial government of Ontario and its pension regulator. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||
Income Taxes | ' | |||||||||||||||||
Note 12. Income Taxes | ||||||||||||||||||
The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the three and nine months ended September 30, 2013 and 2012 as a result of the following: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income (loss) before income taxes | $ | 29 | $ | 33 | $ | (91 | ) | $ | 1 | |||||||||
Income tax (provision) benefit: | ||||||||||||||||||
Expected income tax (provision) benefit | (10 | ) | (11 | ) | 32 | — | ||||||||||||
Changes resulting from: | ||||||||||||||||||
Valuation allowance (1) | (615 | ) | (5 | ) | (582 | ) | (33 | ) | ||||||||||
Adjustments for unrecognized tax benefits (2) | 2 | 2 | 2 | 6 | ||||||||||||||
Foreign exchange | (1 | ) | 8 | (2 | ) | 11 | ||||||||||||
Reorganization-related and other tax adjustments (3) | — | 6 | — | 16 | ||||||||||||||
Research and development tax incentives | 1 | 1 | 2 | 4 | ||||||||||||||
State income taxes and foreign tax rate differences | 4 | 4 | 8 | 5 | ||||||||||||||
Other, net | 2 | (1 | ) | (6 | ) | 1 | ||||||||||||
$ | (617 | ) | $ | 4 | $ | (546 | ) | $ | 10 | |||||||||
-1 | During the three and nine months ended September 30, 2013, we recorded a net increase in valuation allowances of $615 million and $582 million, respectively, mostly due to a charge of $619 million recorded in the third quarter in order to establish a full valuation allowance against our net U.S. deferred income tax assets, as explained below. The increase in the valuation allowance during the nine months ended September 30, 2012 mostly related to costs associated with the indefinite idling of our Mersey operations, where we did not recognize tax benefits. | |||||||||||||||||
(2) | During the nine months ended September 30, 2012, we recorded previously unrecognized tax benefits of $6 million, following the conclusion of tax examinations related to prior years. | |||||||||||||||||
(3) | During the three and nine months ended September 30, 2012, we recorded a tax benefit related to favorable reorganization and other tax adjustments of $6 million and $16 million, respectively, representing adjustments to our previously reported tax balances. | |||||||||||||||||
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. A cumulative loss position is considered significant negative evidence in assessing the realizability of deferred income tax assets that is difficult to overcome. Considering the impacts of mill rationalization efforts, executed to improve our cost structure and asset base going forward, as well as changing dynamics in the pulp and paper industry, our U.S. operations concluded the period ended September 30, 2013 in a cumulative three year loss, as determined based on applicable FASB ASC 740, "Income Taxes" accounting guidance. Considering that the weight given to the potential effect of negative and positive evidence reviewed must be commensurate with the extent to which that evidence may be objectively verified, the recent cumulative loss of our U.S. operations limits our ability to consider other subjective positive evidence, such as our projections of future earnings. As a result, we recorded for the three months ended September 30, 2013 an increase to the income tax provision of $619 million in order to establish a full valuation allowance against our net U.S. deferred income tax assets. | ||||||||||||||||||
The non-cash charge to establish a valuation allowance does not have any impact on our consolidated operating income or cash flow, nor does such an allowance preclude us from using our tax loss carryforwards or utilizing other deferred tax assets in the future. If, in the future, sufficient objective positive evidence becomes available such that, based on the weight of available evidence, it is determined to be more-likely-than-not that some or all of the deferred income tax assets associated with our U.S. operations can be realized, the valuation allowance will be reduced as appropriate, with the related adjustment being recognized as a decrease to the income tax provision. | ||||||||||||||||||
As a result of the contribution of capital from the noncontrolling interest and the subsequent acquisition of the noncontrolling interest in CNC, we established a deferred income tax provision of $3 million in the first quarter of 2013. Since this acquisition was accounted for as an equity transaction, as discussed in Note 5, "Other Income (Expense), Net,” the recording of this deferred tax provision resulted in a reduction of “Additional paid-in capital” in our Consolidated Balance Sheet as of September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 13. Commitments and Contingencies | |
Legal matters | |
We are involved in various legal proceedings relating to contracts, commercial disputes, taxes, environmental issues, employment and workers’ compensation claims, Aboriginal claims and other matters. We periodically review the status of these proceedings with both inside and outside counsel. Although the final outcome of any of these matters is subject to many variables and cannot be predicted with any degree of certainty, we establish reserves for a matter (including legal costs expected to be incurred) when we believe an adverse outcome is probable and the amount can be reasonably estimated. We believe that the ultimate disposition of these matters will not have a material adverse effect on our financial condition, but it could have a material adverse effect on our results of operations in any given quarter or year. | |
Effective July 31, 2012, we completed the second step transaction pursuant to which we acquired the remaining 25.4% of the outstanding Fibrek shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Québec Superior Court in Canada approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised (or purported to exercise) rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act. No consideration has to date been paid to the former Fibrek shareholders who exercised (or purported to exercise) rights of dissent. Any such consideration will only be paid out upon settlement or judicial determination of the fair value of their claims and will be paid entirely in cash. Accordingly, we cannot presently determine the amount that ultimately will be paid to former holders of Fibrek shares in connection with the proceedings, but we have reserved approximately Cdn$14 million ($14 million, based on the exchange rate in effect on September 30, 2013) for the eventual payment of those claims. | |
On June 12, 2012, we filed a motion for directives with the Québec Superior Court in Canada, the court with jurisdiction in our 2010 creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada), seeking an order to prevent pension regulators in each of Québec, 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 creditor protection proceedings. These plans are subject to the funding relief regulations described in Note 18, “Pension and Other Postretirement Benefit Plans - Canadian pension funding,” to our consolidated financial statements for the year ended December 31, 2012 and we contend, among other things, that any such declaration, if issued, would be inconsistent with the court’s sanction order confirming the plan of reorganization and the terms of our emergence from the creditor protection proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could exceed $150 million, would have to be funded if we do not obtain the relief sought. No hearing date has been set to date. | |
Information on our commitments and contingencies is presented in Note 20, “Commitments and Contingencies,” included in our consolidated financial statements for the year ended December 31, 2012. Except as updated above, there has been no material development to the commitments and contingencies described in our consolidated financial statements for the year ended December 31, 2012. |
Share_Capital
Share Capital | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Share Capital | ' |
Note 14. Share Capital | |
Common stock | |
On May 22, 2013, we completed the final distribution of shares of common stock from the disputed claim share reserve established under the Chapter 11 Reorganization Plan. There is no remaining unresolved claim under that plan. As the aggregate of allowed claims against certain Chapter 11 debtors was resolved for less than was originally reserved when the disputed claim share reserve was established, the 276,662 remaining shares reserved for Chapter 11 unsecured claims were transferred to us pursuant to the Chapter 11 Reorganization Plan. | |
On August 8 and 9, 2013, we distributed from the disputed claim share reserve 1,268,420 shares of common stock for the benefit of unsecured creditors under the Plans of Reorganization. The remaining 203,791 shares from the disputed claim reserve have been definitively allocated for distribution as follows: (1) as certain debtors had no creditor, 46,884 shares will be transferred to the Company pursuant to the CCAA Reorganization Plan; and (2) 156,907 shares will be transferred to other claimholders, mostly current or former Canadian employees, subject to certain required regulatory clearances. There being no remaining unresolved unsecured claim under the CCAA Reorganization Plan, this was the final distribution to unsecured creditors under that plan of reorganization. Of these distributions and allocations, 9,497 shares related to Chapter 11 general unsecured claims further distributed or allocated, as the case may be, in connection with this final CCAA distribution for administrative purposes. | |
Accordingly, all of the 23,382,073 shares initially set aside in the disputed claim share reserve have now been distributed, with the exception of 203,791 shares definitively allocated to the Company or to specific claimholders, mostly current or former Canadian employees, the final distribution of which is subject to certain regulatory clearances. | |
When we refer to “creditor protection proceedings,” we mean the proceedings under Chapter 11 of the United States Bankruptcy Code, as amended (or “ Chapter 11”), and the Companies’ Creditors Arrangement Act (Canada), as applicable (or “CCAA”), from which AbitibiBowater Inc. (our predecessor entity) and all but one of its debtor affiliates successfully emerged on December 9, 2010. We refer to the Chapter 11 debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and the CCAA debtors’ CCAA Plan of Reorganization and Compromise, in each case as amended and including all exhibits and supplements thereto, together as the “Plans of Reorganization”, and individually as the “Chapter 11 Reorganization Plan” and the “CCAA Reorganization Plan”, respectively. When we refer to “ disputed claim share reserve,” we mean the reserve of 23,382,073 shares established under the plans of reorganization for claims that remained in dispute as of the emergence date, from which there have been interim distributions to unsecured creditors as disputed claims were resolved. | |
Treasury stock | |
On May 22, 2012, our board approved a share repurchase program of up to 10% of our common stock, for an aggregate purchase price of up to $100 million. During the three and nine months ended September 30, 2012, we repurchased 2.6 million and 3.7 million shares, respectively, at a cost of $33 million and $45 million, respectively. In 2013, we repurchased no shares. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
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 primary product lines: newsprint, coated papers, specialty papers, market pulp and wood products. | |||||||||||||||||||||||||||||
None of the income or loss items following “Operating income (loss)” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, net gain on disposition of assets and other discretionary charges or credits are not allocated to our segments. We allocate depreciation expense to our segments, although the related fixed assets are not allocated to segment assets. Additionally, all selling, general and administrative expenses, excluding severance costs and certain discretionary charges and credits, are allocated to our segments. | |||||||||||||||||||||||||||||
Information about certain segment data for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||||||
(Unaudited, in millions) | Newsprint | Coated | Specialty | Market | Wood | Corporate | Consolidated | ||||||||||||||||||||||
Papers | Papers | Pulp (1) | Products | and Other | Total | ||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 376 | $ | 92 | $ | 247 | $ | 269 | $ | 146 | $ | — | $ | 1,130 | |||||||||||||||
Third quarter 2012 | 404 | 109 | 279 | 233 | 128 | — | 1,153 | ||||||||||||||||||||||
First nine months 2013 | 1,096 | 290 | 727 | 772 | 426 | — | 3,311 | ||||||||||||||||||||||
First nine months 2012 | 1,236 | 358 | 839 | 571 | 371 | — | 3,375 | ||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 18 | $ | 9 | $ | 10 | $ | 13 | $ | 9 | $ | 2 | $ | 61 | |||||||||||||||
Third quarter 2012 | 18 | 9 | 11 | 13 | 8 | — | 59 | ||||||||||||||||||||||
First nine months 2013 | 54 | 27 | 30 | 39 | 27 | 5 | 182 | ||||||||||||||||||||||
First nine months 2012 | 54 | 28 | 35 | 31 | 26 | — | 174 | ||||||||||||||||||||||
Operating income (loss) (2) | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 13 | $ | (3 | ) | $ | 17 | $ | 21 | $ | — | $ | (12 | ) | $ | 36 | |||||||||||||
Third quarter 2012 | 26 | 2 | 28 | (18 | ) | 6 | (13 | ) | 31 | ||||||||||||||||||||
First nine months 2013 | 21 | (1 | ) | 25 | 26 | 32 | (113 | ) | (10 | ) | |||||||||||||||||||
First nine months 2012 | 79 | 6 | 70 | (38 | ) | 12 | (99 | ) | 30 | ||||||||||||||||||||
(1) | Market pulp sales excluded inter-segment sales of $4 million and $12 million for the three months ended September 30, 2013 and 2012, respectively, and $12 million and $31 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||
(2) | Corporate and other operating loss for the three and nine months ended September 30, 2013 and 2012 included the following significant items: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 4 | $ | 2 | $ | 28 | |||||||||||||||||||||
Closure costs, impairment and other related charges | (4 | ) | (5 | ) | (56 | ) | (98 | ) | |||||||||||||||||||||
Inventory write-downs related to closures | — | — | (5 | ) | (7 | ) | |||||||||||||||||||||||
Severance costs | — | — | — | (3 | ) | ||||||||||||||||||||||||
Transaction costs | — | — | (5 | ) | (7 | ) | |||||||||||||||||||||||
Start up costs of idled mill | (3 | ) | (5 | ) | (31 | ) | (5 | ) | |||||||||||||||||||||
$ | (7 | ) | $ | (6 | ) | $ | (95 | ) | $ | (92 | ) |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||||||
Note 16. Condensed Consolidating Financial Information | |||||||||||||||||||||
The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act of 1933, as amended, in connection with Resolute Forest Products Inc.’s 2018 Notes and 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (the “Guarantor Subsidiaries”). The 2018 Notes and 2023 Notes are not guaranteed by our foreign subsidiaries and our less than 100% owned U.S. subsidiaries (the “Non-guarantor Subsidiaries”). | |||||||||||||||||||||
The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive (Loss) Income for the three and nine months ended September 30, 2013 and 2012, the Balance Sheets as of September 30, 2013 and December 31, 2012 and the Statements of Cash Flows for the nine months ended September 30, 2013 and 2012 for Resolute Forest Products Inc. (the “Parent”), the Guarantor Subsidiaries on a combined basis and the Non-guarantor Subsidiaries on a combined basis. The condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries and Non-guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-guarantor Subsidiaries, using the equity method of accounting. The principal consolidating adjustments are elimination entries to eliminate the investments in subsidiaries and intercompany balances and transactions. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 933 | $ | 775 | $ | (578 | ) | $ | 1,130 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 848 | 587 | (578 | ) | 857 | |||||||||||||||
Depreciation and amortization | — | 25 | 36 | — | 61 | ||||||||||||||||
Distribution costs | — | 42 | 95 | (3 | ) | 134 | |||||||||||||||
Selling, general and administrative expenses | 6 | 9 | 23 | — | 38 | ||||||||||||||||
Closure costs, impairment and other related charges | — | — | 4 | — | 4 | ||||||||||||||||
Operating (loss) income | (6 | ) | 9 | 30 | 3 | 36 | |||||||||||||||
Interest expense | (16 | ) | (2 | ) | (2 | ) | 8 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 12 | 2 | (8 | ) | 5 | ||||||||||||||
Parent’s equity in loss of subsidiaries | (521 | ) | — | — | 521 | — | |||||||||||||||
(Loss) income before income taxes | (544 | ) | 19 | 30 | 524 | 29 | |||||||||||||||
Income tax (provision) benefit | (44 | ) | (574 | ) | 1 | — | (617 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (588 | ) | (555 | ) | 31 | 524 | (588 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (588 | ) | $ | (555 | ) | $ | 31 | $ | 524 | $ | (588 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (544 | ) | $ | (520 | ) | $ | 40 | $ | 480 | $ | (544 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 2,715 | $ | 2,195 | $ | (1,599 | ) | $ | 3,311 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,481 | 1,681 | (1,590 | ) | 2,572 | |||||||||||||||
Depreciation and amortization | — | 75 | 107 | — | 182 | ||||||||||||||||
Distribution costs | — | 127 | 266 | (6 | ) | 387 | |||||||||||||||
Selling, general and administrative expenses | 16 | 36 | 74 | — | 126 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 49 | 7 | — | 56 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating (loss) income | (16 | ) | (53 | ) | 62 | (3 | ) | (10 | ) | ||||||||||||
Interest expense | (71 | ) | (3 | ) | (6 | ) | 41 | (39 | ) | ||||||||||||
Other (expense) income, net | (60 | ) | 57 | 2 | (41 | ) | (42 | ) | |||||||||||||
Parent’s equity in loss of subsidiaries | (489 | ) | — | — | 489 | — | |||||||||||||||
(Loss) income before income taxes | (636 | ) | 1 | 58 | 486 | (91 | ) | ||||||||||||||
Income tax provision | — | (534 | ) | (13 | ) | 1 | (546 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (636 | ) | (533 | ) | 45 | 487 | (637 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (636 | ) | $ | (533 | ) | $ | 46 | $ | 487 | $ | (636 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (587 | ) | $ | (480 | ) | $ | 42 | $ | 438 | $ | (587 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 718 | $ | 797 | $ | (362 | ) | $ | 1,153 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 635 | 617 | (362 | ) | 890 | |||||||||||||||
Depreciation and amortization | — | 23 | 36 | — | 59 | ||||||||||||||||
Distribution costs | — | 36 | 95 | — | 131 | ||||||||||||||||
Selling, general and administrative expenses | 6 | 10 | 25 | — | 41 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 4 | 1 | — | 5 | ||||||||||||||||
Net gain on disposition of assets | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Operating (loss) income | (6 | ) | 10 | 27 | — | 31 | |||||||||||||||
Interest expense | (57 | ) | (1 | ) | (1 | ) | 42 | (17 | ) | ||||||||||||
Other income, net | — | 47 | 14 | (42 | ) | 19 | |||||||||||||||
Parent’s equity in income of subsidiaries | 78 | — | — | (78 | ) | — | |||||||||||||||
Income before income taxes | 15 | 56 | 40 | (78 | ) | 33 | |||||||||||||||
Income tax benefit (provision) | 22 | (33 | ) | 15 | — | 4 | |||||||||||||||
Net income including noncontrolling interests | 37 | 23 | 55 | (78 | ) | 37 | |||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 37 | $ | 23 | $ | 55 | $ | (78 | ) | $ | 37 | ||||||||||
Comprehensive income attributable to Resolute Forest Products Inc. | $ | 40 | $ | 23 | $ | 58 | $ | (81 | ) | $ | 40 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 2,163 | $ | 2,328 | $ | (1,116 | ) | $ | 3,375 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,914 | 1,804 | (1,116 | ) | 2,602 | |||||||||||||||
Depreciation and amortization | — | 69 | 105 | — | 174 | ||||||||||||||||
Distribution costs | — | 106 | 279 | — | 385 | ||||||||||||||||
Selling, general and administrative expenses | 18 | 33 | 63 | — | 114 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 4 | 94 | — | 98 | ||||||||||||||||
Net gain on disposition of assets | — | — | (28 | ) | — | (28 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | 37 | 11 | — | 30 | |||||||||||||||
Interest expense | (163 | ) | (3 | ) | (6 | ) | 121 | (51 | ) | ||||||||||||
Other income, net | — | 130 | 13 | (121 | ) | 22 | |||||||||||||||
Parent’s equity in income of subsidiaries | 162 | — | — | (162 | ) | — | |||||||||||||||
(Loss) income before income taxes | (19 | ) | 164 | 18 | (162 | ) | 1 | ||||||||||||||
Income tax benefit (provision) | 65 | (66 | ) | 11 | — | 10 | |||||||||||||||
Net income including noncontrolling interests | 46 | 98 | 29 | (162 | ) | 11 | |||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 35 | — | 35 | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 46 | $ | 98 | $ | 64 | $ | (162 | ) | $ | 46 | ||||||||||
Comprehensive income attributable to Resolute Forest Products Inc. | $ | 45 | $ | 98 | $ | 63 | $ | (161 | ) | $ | 45 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 181 | $ | 90 | $ | — | $ | 271 | |||||||||||
Accounts receivable, net | — | 458 | 246 | — | 704 | ||||||||||||||||
Accounts receivable from affiliates | — | 132 | 196 | (328 | ) | — | |||||||||||||||
Inventories, net | — | 220 | 315 | (7 | ) | 528 | |||||||||||||||
Deferred income tax assets | — | — | 44 | — | 44 | ||||||||||||||||
Interest receivable from parent | — | 11 | — | (11 | ) | — | |||||||||||||||
Note receivable from subsidiary | 13 | — | — | (13 | ) | — | |||||||||||||||
Other current assets | — | 32 | 49 | — | 81 | ||||||||||||||||
Total current assets | 13 | 1,034 | 940 | (359 | ) | 1,628 | |||||||||||||||
Fixed assets, net | — | 874 | 1,456 | — | 2,330 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 66 | — | 66 | ||||||||||||||||
Deferred income tax assets | — | — | 1,338 | 2 | 1,340 | ||||||||||||||||
Notes receivable from parent | — | 622 | — | (622 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 520 | — | (520 | ) | — | |||||||||||||||
Investments in and advances to consolidated subsidiaries | 4,417 | 2,085 | — | (6,502 | ) | — | |||||||||||||||
Other assets | 8 | 115 | 68 | — | 191 | ||||||||||||||||
Total assets | $ | 4,438 | $ | 5,250 | $ | 3,868 | $ | (8,001 | ) | $ | 5,555 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 15 | $ | 191 | $ | 354 | $ | — | $ | 560 | |||||||||||
Current portion of long-term debt | 5 | — | 2 | — | 7 | ||||||||||||||||
Accounts payable to affiliates | 328 | — | — | (328 | ) | — | |||||||||||||||
Interest payable to subsidiary | 11 | — | — | (11 | ) | — | |||||||||||||||
Note payable to parent | — | — | 13 | (13 | ) | — | |||||||||||||||
Total current liabilities | 359 | 191 | 369 | (352 | ) | 567 | |||||||||||||||
Long-term debt, net of current portion | 594 | 3 | — | — | 597 | ||||||||||||||||
Long-term debt due to subsidiaries | 622 | — | — | (622 | ) | — | |||||||||||||||
Long-term debt due to affiliate | — | — | 520 | (520 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 463 | 1,279 | — | 1,742 | ||||||||||||||||
Deferred income tax liabilities | — | 11 | 27 | — | 38 | ||||||||||||||||
Other long-term liabilities | — | 28 | 37 | — | 65 | ||||||||||||||||
Total liabilities | 1,575 | 696 | 2,232 | (1,494 | ) | 3,009 | |||||||||||||||
Total equity | 2,863 | 4,554 | 1,636 | (6,507 | ) | 2,546 | |||||||||||||||
Total liabilities and equity | $ | 4,438 | $ | 5,250 | $ | 3,868 | $ | (8,001 | ) | $ | 5,555 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 171 | $ | 87 | $ | — | $ | 263 | |||||||||||
Accounts receivable, net | — | 383 | 366 | (52 | ) | 697 | |||||||||||||||
Accounts receivable from affiliates | — | 262 | 211 | (473 | ) | — | |||||||||||||||
Inventories, net | — | 221 | 328 | (4 | ) | 545 | |||||||||||||||
Deferred income tax assets | — | 11 | 45 | — | 56 | ||||||||||||||||
Notes and interest receivable from parent | — | 593 | — | (593 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 9 | 138 | (147 | ) | — | |||||||||||||||
Note receivable from subsidiary | 41 | — | — | (41 | ) | — | |||||||||||||||
Other current assets | — | 22 | 47 | — | 69 | ||||||||||||||||
Total current assets | 46 | 1,672 | 1,222 | (1,310 | ) | 1,630 | |||||||||||||||
Fixed assets, net | — | 908 | 1,532 | — | 2,440 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 69 | — | 69 | ||||||||||||||||
Deferred income tax assets | — | 594 | 1,405 | 1 | 2,000 | ||||||||||||||||
Note receivable from affiliate | — | 531 | — | (531 | ) | — | |||||||||||||||
Investments in and advances to consolidated subsidiaries | 4,859 | 2,089 | — | (6,948 | ) | — | |||||||||||||||
Other assets | — | 98 | 96 | — | 194 | ||||||||||||||||
Total assets | $ | 4,905 | $ | 5,892 | $ | 4,324 | $ | (8,788 | ) | $ | 6,333 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 11 | $ | 198 | $ | 424 | $ | (52 | ) | $ | 581 | ||||||||||
Current portion of long-term debt | — | — | 2 | — | 2 | ||||||||||||||||
Accounts payable to affiliates | 336 | 135 | 2 | (473 | ) | — | |||||||||||||||
Notes and interest payable to subsidiaries | 593 | — | — | (593 | ) | — | |||||||||||||||
Notes payable to affiliates | — | 138 | 9 | (147 | ) | — | |||||||||||||||
Note payable to parent | — | — | 41 | (41 | ) | — | |||||||||||||||
Total current liabilities | 940 | 471 | 478 | (1,306 | ) | 583 | |||||||||||||||
Long-term debt, net of current portion | 528 | 3 | 1 | — | 532 | ||||||||||||||||
Long-term debt due to affiliate | — | — | 531 | (531 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 559 | 1,387 | — | 1,946 | ||||||||||||||||
Deferred income tax liabilities | — | — | 75 | — | 75 | ||||||||||||||||
Other long-term liabilities | — | 36 | 36 | — | 72 | ||||||||||||||||
Total liabilities | 1,468 | 1,069 | 2,508 | (1,837 | ) | 3,208 | |||||||||||||||
Total equity | 3,437 | 4,823 | 1,816 | (6,951 | ) | 3,125 | |||||||||||||||
Total liabilities and equity | $ | 4,905 | $ | 5,892 | $ | 4,324 | $ | (8,788 | ) | $ | 6,333 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 37 | $ | 73 | $ | — | $ | 110 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (45 | ) | (79 | ) | — | (124 | ) | |||||||||||||
Disposition of assets | — | — | 4 | — | 4 | ||||||||||||||||
Proceeds from insurance settlements | — | — | 4 | — | 4 | ||||||||||||||||
Decrease in restricted cash | — | — | 3 | — | 3 | ||||||||||||||||
Advances (to) from affiliates | (10 | ) | 10 | — | — | — | |||||||||||||||
Net cash used in investing activities | (10 | ) | (35 | ) | (68 | ) | — | (113 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Issuance of long-term debt | 594 | — | — | — | 594 | ||||||||||||||||
Premium paid on extinguishment of debt | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Payments of debt | (496 | ) | — | (1 | ) | — | (497 | ) | |||||||||||||
Payments of financing and credit facility fees | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | 8 | — | — | 8 | ||||||||||||||||
Net cash provided by (used in) financing activities | 5 | 8 | (2 | ) | — | 11 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (5 | ) | 10 | 3 | — | 8 | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | 5 | 171 | 87 | — | 263 | ||||||||||||||||
End of period | $ | — | $ | 181 | $ | 90 | $ | — | $ | 271 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 126 | $ | 66 | $ | — | $ | 192 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (29 | ) | (73 | ) | — | (102 | ) | |||||||||||||
Disposition of assets | — | — | 31 | — | 31 | ||||||||||||||||
Acquisition of Fibrek, net of cash acquired | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
Decrease in restricted cash | — | — | 76 | — | 76 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (12 | ) | — | (12 | ) | ||||||||||||||
Advances from (to) affiliates | 47 | (31 | ) | (16 | ) | — | — | ||||||||||||||
Net cash provided by (used in) investing activities | 47 | (60 | ) | (18 | ) | — | (31 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Purchases of treasury stock | (45 | ) | — | — | — | (45 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (27 | ) | — | (27 | ) | ||||||||||||||
Payments of long-term debt | — | — | (112 | ) | — | (112 | ) | ||||||||||||||
Net cash used in financing activities | (45 | ) | — | (142 | ) | — | (187 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 2 | 66 | (94 | ) | — | (26 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 128 | 241 | — | 369 | ||||||||||||||||
End of period | $ | 2 | $ | 194 | $ | 147 | $ | — | $ | 343 | |||||||||||
Subsequent_Event
Subsequent Event | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Event | ' | |
Note 17. Subsequent Events | ||
The following significant events occurred subsequent to September 30, 2013: | ||
• | On October 8, 2013, we redeemed the remaining $5 million of principal amount of the 2018 Notes at a redemption price of 103% of the principal amount, plus accrued and unpaid interest and this amount was included in "Current portion of long-term debt" in our Consolidated Balance Sheet as of September 30, 2013. | |
• | The province of Québec informed us on December 30, 2011 that it intended not to renew our water rights associated with our Jim-Gray hydroelectric dam and to require us to transfer the property to the province for no consideration. The province of Québec has granted us several extensions to transfer the property, with the latest received on October 30, 2013 . As extended, an agreement on the terms of the transfer would need to be entered into at the latest on March 1, 2014. The province’s actions are contrary to our understanding of the water power lease in question. We continue to evaluate our legal options. At this time, we believe that the remaining useful life of the assets remains unchanged. The carrying value of the hydroelectric assets and the intangible assets associated with the Jim-Gray dam as of September 30, 2013 was approximately $90 million. If we are unable to renew the water rights at this dam, we will reevaluate the remaining useful life of these assets, which may result in accelerated depreciation and amortization charges at that time. Additional information regarding our Jim-Gray hydroelectric dam is presented in Note 5, “Amortizable Intangible Assets, Net,” and Note 13, “Fixed Assets, Net,” included in our consolidated financial statements for the year ended December 31, 2012. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Change in Accounting Policy for Repairs and Maintenance Costs | ' |
Change in accounting policy for repairs and maintenance costs | |
In the second quarter of 2013, we changed our accounting policy for repairs and maintenance costs associated with planned major maintenance activities. Previously, all repairs and maintenance costs, including those associated with planned major maintenance, were expensed as incurred. We elected to change our accounting policy for planned major maintenance costs to the deferral method, whereby the costs of each planned major maintenance activity are amortized on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repairs and maintenance costs continue to be expensed as incurred. We believe that the deferral method is preferable as the economic benefit associated with planned major maintenance activities are more appropriately recognized over the period of future benefit, which is not limited to the period the expense is incurred. In addition, the deferral method enhances the comparability of our financial results with our peer companies. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 250, “Accounting Changes and Error Corrections,” we have applied the change in accounting policy retroactively by adjusting our comparative consolidated financial statements for the effect of this change. As a result of the change, retained earnings as of December 31, 2011 increased by $6 million, which represents the cumulative effect of the change on prior periods. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Effect of Change in Accounting Policy on Consolidated Statements of Operations and Balance Sheets | ' | ||||||||||||||||||||||||
The effect of the change in accounting policy on our Consolidated Statements of Operations for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | Before | Adjustment | As | As | Effect of | As Adjusted | |||||||||||||||||||
Accounting | Reported | Previously | Change | ||||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | $ | 856 | $ | 1 | $ | 857 | $ | 895 | $ | (5 | ) | $ | 890 | ||||||||||||
Income before income taxes | 30 | (1 | ) | 29 | 28 | 5 | 33 | ||||||||||||||||||
Income tax (provision) benefit | (621 | ) | 4 | (617 | ) | 3 | 1 | 4 | |||||||||||||||||
Net (loss) income including noncontrolling interests | (591 | ) | 3 | (588 | ) | 31 | 6 | 37 | |||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | (591 | ) | 3 | (588 | ) | 31 | 6 | 37 | |||||||||||||||||
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | (6.25 | ) | 0.03 | (6.22 | ) | 0.32 | 0.06 | 0.38 | |||||||||||||||||
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | (6.25 | ) | 0.03 | (6.22 | ) | 0.32 | 0.06 | 0.38 | |||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (547 | ) | 3 | (544 | ) | 34 | 6 | 40 | |||||||||||||||||
The effect of the change in accounting policy on our Consolidated Statements of Operations for the nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | Before | Adjustment | As | As | Effect of | As | |||||||||||||||||||
Accounting | Reported | Previously | Change | Adjusted | |||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | $ | 2,578 | $ | (6 | ) | $ | 2,572 | $ | 2,616 | $ | (14 | ) | $ | 2,602 | |||||||||||
(Loss) income before income taxes | (97 | ) | 6 | (91 | ) | (13 | ) | 14 | 1 | ||||||||||||||||
Income tax (provision) benefit | (546 | ) | — | (546 | ) | 12 | (2 | ) | 10 | ||||||||||||||||
Net (loss) income including noncontrolling interests | (643 | ) | 6 | (637 | ) | (1 | ) | 12 | 11 | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | (642 | ) | 6 | (636 | ) | 34 | 12 | 46 | |||||||||||||||||
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | (6.78 | ) | 0.06 | (6.72 | ) | 0.35 | 0.12 | 0.47 | |||||||||||||||||
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | (6.78 | ) | 0.06 | (6.72 | ) | 0.35 | 0.12 | 0.47 | |||||||||||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | (593 | ) | 6 | (587 | ) | 33 | 12 | 45 | |||||||||||||||||
The effect of the change in accounting policy on our Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(Unaudited, in millions) | Before | Adjustment | As | As | Effect of | As Adjusted | |||||||||||||||||||
Accounting | Reported | Previously | Change | ||||||||||||||||||||||
Policy | Reported | ||||||||||||||||||||||||
Change | |||||||||||||||||||||||||
Other current assets | $ | 64 | $ | 17 | $ | 81 | $ | 58 | $ | 11 | $ | 69 | |||||||||||||
Deferred income tax assets (non-current) | 1,342 | (2 | ) | 1,340 | 2,002 | (2 | ) | 2,000 | |||||||||||||||||
(Deficit) retained earnings | (604 | ) | 15 | (589 | ) | 38 | 9 | 47 | |||||||||||||||||
Acquisition_of_Fibrek_Inc_Tabl
Acquisition of Fibrek Inc. (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Pro Forma Results of Operations | ' | ||||||||
The following unaudited pro forma information for the three and nine months ended September 30, 2012 represents our results of operations as if the acquisition of Fibrek had occurred on January 1, 2012. 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. | |||||||||
(Unaudited, in millions except per share data) | Three Months Ended September 30, 2012 | Nine Months Ended | |||||||
September 30, 2012 | |||||||||
Sales | $ | 1,153 | $ | 3,540 | |||||
Net income attributable to Resolute Forest Products Inc. | 37 | 42 | |||||||
Basic net income per share attributable to Resolute Forest Products Inc. | 0.38 | 0.43 | |||||||
Diluted net income per share attributable to Resolute Forest Products Inc. | 0.38 | 0.43 | |||||||
Closure_Costs_Impairment_and_O1
Closure Costs, Impairment and Other Related Charges (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Closure Costs, Impairment and Other Related Charges | ' | ||||||||||||||||||||
Closure costs, impairment and other related charges for the three and nine months ended September 30, 2013 were comprised of the following: | |||||||||||||||||||||
(Unaudited, in millions) | Accelerated Depreciation | Pension Plan Curtailment Loss and Settlement (Gain) | Severance and Other Costs | Total | |||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Paper machine in Calhoun, Tennessee (1) | |||||||||||||||||||||
Third quarter | $ | — | $ | — | $ | — | $ | — | |||||||||||||
First nine months | 44 | — | 5 | 49 | |||||||||||||||||
Kraft mill and paper machine in Fort Frances, Ontario | |||||||||||||||||||||
Third quarter | — | — | — | — | |||||||||||||||||
First nine months | — | — | 4 | 4 | |||||||||||||||||
Restructuring initiative: | |||||||||||||||||||||
Baie-Comeau, Québec paper mill | |||||||||||||||||||||
Third quarter | — | 2 | 2 | 4 | |||||||||||||||||
First nine months | — | 2 | 2 | 4 | |||||||||||||||||
Other | |||||||||||||||||||||
Third quarter | — | — | — | — | |||||||||||||||||
First nine months | — | (1 | ) | — | (1 | ) | |||||||||||||||
Total | |||||||||||||||||||||
Third quarter | $ | — | $ | 2 | $ | 2 | $ | 4 | |||||||||||||
First nine months | 44 | 1 | 11 | 56 | |||||||||||||||||
(1) | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNC”), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, "Other Income (Expense), Net.” | ||||||||||||||||||||
Closure costs, impairment and other related charges for the three and nine months ended September 30, 2012 were comprised of the following: | |||||||||||||||||||||
(Unaudited, in millions) | Impairment of Assets | Accelerated Depreciation | Pension Plan Curtailment and Settlement Losses | Severance and Other Costs | Total | ||||||||||||||||
Indefinite idlings: | |||||||||||||||||||||
Bowater Mersey Paper Company Limited (1) | |||||||||||||||||||||
Third quarter | $ | (7 | ) | $ | — | $ | — | $ | 5 | $ | (2 | ) | |||||||||
First nine months | 63 | — | 9 | 14 | 86 | ||||||||||||||||
Kraft mill in Fort Frances, Ontario | |||||||||||||||||||||
Third quarter | — | 1 | — | 2 | 3 | ||||||||||||||||
First nine months | — | 1 | — | 2 | 3 | ||||||||||||||||
Paper machine in Catawba, South Carolina | |||||||||||||||||||||
Third quarter | 1 | — | — | — | 1 | ||||||||||||||||
First nine months | 1 | — | — | — | 1 | ||||||||||||||||
Restructuring initiatives: | |||||||||||||||||||||
Catawba paper mill | |||||||||||||||||||||
Third quarter | — | — | — | 3 | 3 | ||||||||||||||||
First nine months | — | — | — | 3 | 3 | ||||||||||||||||
Baie-Comeau, paper mill | |||||||||||||||||||||
Third quarter | — | — | — | — | — | ||||||||||||||||
First nine months | — | — | 3 | 1 | 4 | ||||||||||||||||
Other | |||||||||||||||||||||
Third quarter | — | — | — | — | — | ||||||||||||||||
First nine months | — | — | 2 | (1 | ) | 1 | |||||||||||||||
Total | |||||||||||||||||||||
Third quarter | $ | (6 | ) | $ | 1 | $ | — | $ | 10 | $ | 5 | ||||||||||
First nine months | 64 | 1 | 14 | 19 | 98 | ||||||||||||||||
(1) | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling of our operations in Bowater Mersey Paper Company Limited (our “Mersey operations”) to reduce the carrying value of our net assets to fair value less costs to sell. |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||||
Other income (expense), net for the three and nine months ended September 30, 2013 and 2012 was comprised of the following: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign exchange gain (loss) | $ | 3 | $ | 18 | $ | (9 | ) | $ | 21 | |||||||||
Net loss on extinguishment of debt (Note 10) | — | — | (59 | ) | — | |||||||||||||
Post-emergence costs (1) | — | (2 | ) | (1 | ) | (7 | ) | |||||||||||
Gain on forgiveness of note payable (2) | — | — | 12 | — | ||||||||||||||
Gain on liquidation settlement (3) | 3 | — | 12 | — | ||||||||||||||
Income from equity method investments | 1 | 1 | 1 | 3 | ||||||||||||||
Interest income | — | — | 1 | 3 | ||||||||||||||
Miscellaneous (expense) income | (2 | ) | 2 | 1 | 2 | |||||||||||||
$ | 5 | $ | 19 | $ | (42 | ) | $ | 22 | ||||||||||
(1) | Primarily represents legal and other professional fees for the resolution and settlement of disputed creditor claims, as well as costs for other post-emergence activities associated with the creditor protection proceedings, from which we emerged on December 9, 2010. For additional information, see Note 14, "Share Capital.” | |||||||||||||||||
(2) | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||||||||||||||
(3) | On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $3 million and $12 million during the three and nine months ended September 30, 2013, respectively. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss by Component (Net of Tax) | ' | ||||||||||||||||
The change in our accumulated other comprehensive loss by component (net of tax) for the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
(Unaudited, in millions) | Unamortized Prior Service Credits (1)(3) | Unamortized Actuarial Losses (1)(2)(4) | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2012 | $ | 21 | $ | (640 | ) | $ | 5 | $ | (614 | ) | |||||||
Other comprehensive (loss) income before reclassifications | (1 | ) | 42 | (3 | ) | 38 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss (5) | (2 | ) | 13 | — | 11 | ||||||||||||
Net current period other comprehensive (loss) income | (3 | ) | 55 | (3 | ) | 49 | |||||||||||
Balance as of September 30, 2013 | $ | 18 | $ | (585 | ) | $ | 2 | $ | (565 | ) | |||||||
(1) | In the third quarter of 2013, we approved the reduction in benefits for U.S. salaried post-65 retirees in our other postretirement benefit (“OPEB”) plan, effective January 1, 2014. As a result of this plan amendment, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013, were decreased by $57 million and $35 million (net of tax of $22 million), respectively, and consisted of $13 million (net of tax of $8 million ) of unamortized prior service credits and $22 million (net of tax of $14 million) of unamortized actuarial losses. | ||||||||||||||||
(2) | In September 2013, we announced a workforce reduction at our Baie-Comeau paper mill, which will result in the elimination of approximately 90 positions. As a result, "Pension and other postretirement benefit obligations" and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $8 million and $6 million (net of tax of $2 million), respectively. | ||||||||||||||||
(3) | In the second quarter of 2013, following the restart of our previously idled Gatineau paper mill, 119 employees were reinstated to our pension plans. As a result, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were increased by $18 million and $13 million (net of tax of $5 million), respectively. | ||||||||||||||||
(4) | In the second quarter of 2013, we recorded certain adjustments associated with our previously reported pension and OPEB obligations. As a result, “Pension and other postretirement benefit obligations” and “Accumulated other comprehensive loss” in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $27 million and $17 million (net of tax of $10 million), respectively. | ||||||||||||||||
(5) | See the table below for details about these reclassifications. | ||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
The reclassifications out of accumulated other comprehensive loss for the nine months ended September 30, 2013 were comprised of the following: | |||||||||||||||||
(Unaudited, in millions) | Amounts Reclassified From Accumulated Other Comprehensive Loss | Affected Line in the Consolidated Statements of Operations | |||||||||||||||
Unamortized Prior Service Credits | |||||||||||||||||
Amortization of prior service credits | $ | (2 | ) | Cost of sales, excluding depreciation and amortization (1) | |||||||||||||
— | Income tax (provision) benefit | ||||||||||||||||
$ | (2 | ) | Net of tax | ||||||||||||||
Unamortized Actuarial Losses | |||||||||||||||||
Amortization of actuarial losses | $ | 18 | Cost of sales, excluding depreciation and amortization (1) | ||||||||||||||
(5 | ) | Income tax (provision) benefit | |||||||||||||||
$ | 13 | Net of tax | |||||||||||||||
Total Reclassifications | $ | 11 | Net of tax | ||||||||||||||
(1) | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 11, "Employee Benefit Plans.” |
Net_Loss_Income_Per_Share_Tabl
Net (Loss) Income Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of weighted-average shares | ' | |||||||||||||
The weighted-average number of option shares and equity-classified restricted stock units (“RSUs”) and deferred stock units (“DSUs”) outstanding for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Unaudited, in millions) | 2013 (1) | 2012 (2) | 2013 (1) | 2012 (2) | ||||||||||
Option shares | 1.4 | 0.8 | 1.4 | 0.8 | ||||||||||
RSUs and DSUs | 0.7 | 0.4 | 0.7 | 0.4 | ||||||||||
(1) | These option shares and RSUs and DSUs were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | |||||||||||||
(2) | The dilutive impact of these option shares and RSUs and DSUs on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. | |||||||||||||
The weighted-average number of common shares outstanding used to calculate the basic and diluted net (loss) income per share attributable to Resolute Forest Products Inc. common shareholders for the three and nine months ended September 30, 2013 and 2012 was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Basic weighted-average number of common shares outstanding | 94.6 | 98.1 | 94.7 | 98 | ||||||||||
Diluted weighted-average number of common shares outstanding | 94.6 | 98.1 | 94.7 | 98.1 | ||||||||||
Inventories_Net_Tables
Inventories, Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Components of Inventories | ' | ||||||||
Inventories, net as of September 30, 2013 and December 31, 2012 were comprised of the following: | |||||||||
(Unaudited, in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Raw materials and work in process | $ | 147 | $ | 181 | |||||
Finished goods | 198 | 188 | |||||||
Mill stores and other supplies | 183 | 176 | |||||||
$ | 528 | $ | 545 | ||||||
Severance_Related_Liabilities_
Severance Related Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Schedule of Activity in Severance Related Liabilities | ' | ||||||||||||||||
The activity in our severance related liabilities for the nine months ended September 30, 2013 was as follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Unaudited, in millions) | Initiatives | Initiatives | Initiatives | Total | |||||||||||||
Balance as of December 31, 2012 | $ | — | $ | 13 | $ | 2 | $ | 15 | |||||||||
Charges | 6 | 3 | (1 | ) | 8 | ||||||||||||
Payments | (4 | ) | (11 | ) | (1 | ) | (16 | ) | |||||||||
Balance as of September 30, 2013 | $ | 2 | $ | 5 | $ | — | $ | 7 | |||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long Term Debt Including Current Portion | ' | ||||||||
Long-term debt, including current portion, as of September 30, 2013 and December 31, 2012 was comprised of the following: | |||||||||
(Unaudited, in millions) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
5.875% senior notes due 2023: | |||||||||
Principal amount | $ | 600 | $ | — | |||||
Unamortized discount | (6 | ) | — | ||||||
Total senior notes due 2023 | 594 | — | |||||||
10.25% senior secured notes due 2018: | |||||||||
Principal amount | 5 | 501 | |||||||
Unamortized premium | — | 27 | |||||||
Total senior secured notes due 2018 | 5 | 528 | |||||||
Other debt: | |||||||||
PSIF – Investissement Québec loan | 2 | 3 | |||||||
Capital lease obligation | 3 | 3 | |||||||
Total other debt | 5 | 6 | |||||||
Total debt | 604 | 534 | |||||||
Less: Current portion of long-term debt | (7 | ) | (2 | ) | |||||
Long-term debt, net of current portion | $ | 597 | $ | 532 | |||||
Debt Instrument Redemption | ' | ||||||||
On or after May 15, 2017, the 2023 Notes will be redeemable, in whole or in part, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: | |||||||||
Year (beginning May 15) | Redemption Price | ||||||||
2017 | 104.41% | ||||||||
2018 | 102.94% | ||||||||
2019 | 101.47% | ||||||||
2020 and thereafter | 100.00% |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | ' | |||||||||||||||||
The components of net periodic benefit cost relating to our pension and OPEB plans for the three and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||||
Pension Plans: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 8 | $ | 8 | $ | 24 | $ | 26 | ||||||||||
Interest cost | 68 | 79 | 208 | 231 | ||||||||||||||
Expected return on plan assets | (77 | ) | (86 | ) | (232 | ) | (253 | ) | ||||||||||
Amortization of actuarial losses | 7 | 1 | 19 | 1 | ||||||||||||||
Amortization of prior service credits | (1 | ) | — | (2 | ) | — | ||||||||||||
Settlement and curtailments | 2 | — | 1 | 14 | ||||||||||||||
$ | 7 | $ | 2 | $ | 18 | $ | 19 | |||||||||||
OPEB Plans: | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 3 | $ | 2 | ||||||||||
Interest cost | 3 | 5 | 11 | 15 | ||||||||||||||
Amortization of actuarial gains | (1 | ) | — | (1 | ) | — | ||||||||||||
$ | 3 | $ | 6 | $ | 13 | $ | 17 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||
Reconciliation of Statutory Tax (Provision) Benefit to Income Tax Benefit (Provision) | ' | |||||||||||||||||
The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the three and nine months ended September 30, 2013 and 2012 as a result of the following: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Income (loss) before income taxes | $ | 29 | $ | 33 | $ | (91 | ) | $ | 1 | |||||||||
Income tax (provision) benefit: | ||||||||||||||||||
Expected income tax (provision) benefit | (10 | ) | (11 | ) | 32 | — | ||||||||||||
Changes resulting from: | ||||||||||||||||||
Valuation allowance (1) | (615 | ) | (5 | ) | (582 | ) | (33 | ) | ||||||||||
Adjustments for unrecognized tax benefits (2) | 2 | 2 | 2 | 6 | ||||||||||||||
Foreign exchange | (1 | ) | 8 | (2 | ) | 11 | ||||||||||||
Reorganization-related and other tax adjustments (3) | — | 6 | — | 16 | ||||||||||||||
Research and development tax incentives | 1 | 1 | 2 | 4 | ||||||||||||||
State income taxes and foreign tax rate differences | 4 | 4 | 8 | 5 | ||||||||||||||
Other, net | 2 | (1 | ) | (6 | ) | 1 | ||||||||||||
$ | (617 | ) | $ | 4 | $ | (546 | ) | $ | 10 | |||||||||
-1 | During the three and nine months ended September 30, 2013, we recorded a net increase in valuation allowances of $615 million and $582 million, respectively, mostly due to a charge of $619 million recorded in the third quarter in order to establish a full valuation allowance against our net U.S. deferred income tax assets, as explained below. The increase in the valuation allowance during the nine months ended September 30, 2012 mostly related to costs associated with the indefinite idling of our Mersey operations, where we did not recognize tax benefits. | |||||||||||||||||
(2) | During the nine months ended September 30, 2012, we recorded previously unrecognized tax benefits of $6 million, following the conclusion of tax examinations related to prior years. | |||||||||||||||||
(3) | During the three and nine months ended September 30, 2012, we recorded a tax benefit related to favorable reorganization and other tax adjustments of $6 million and $16 million, respectively, representing adjustments to our previously reported tax balances. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | ' | ||||||||||||||||||||||||||||
Information about certain segment data for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||||||
(Unaudited, in millions) | Newsprint | Coated | Specialty | Market | Wood | Corporate | Consolidated | ||||||||||||||||||||||
Papers | Papers | Pulp (1) | Products | and Other | Total | ||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 376 | $ | 92 | $ | 247 | $ | 269 | $ | 146 | $ | — | $ | 1,130 | |||||||||||||||
Third quarter 2012 | 404 | 109 | 279 | 233 | 128 | — | 1,153 | ||||||||||||||||||||||
First nine months 2013 | 1,096 | 290 | 727 | 772 | 426 | — | 3,311 | ||||||||||||||||||||||
First nine months 2012 | 1,236 | 358 | 839 | 571 | 371 | — | 3,375 | ||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 18 | $ | 9 | $ | 10 | $ | 13 | $ | 9 | $ | 2 | $ | 61 | |||||||||||||||
Third quarter 2012 | 18 | 9 | 11 | 13 | 8 | — | 59 | ||||||||||||||||||||||
First nine months 2013 | 54 | 27 | 30 | 39 | 27 | 5 | 182 | ||||||||||||||||||||||
First nine months 2012 | 54 | 28 | 35 | 31 | 26 | — | 174 | ||||||||||||||||||||||
Operating income (loss) (2) | |||||||||||||||||||||||||||||
Third quarter 2013 | $ | 13 | $ | (3 | ) | $ | 17 | $ | 21 | $ | — | $ | (12 | ) | $ | 36 | |||||||||||||
Third quarter 2012 | 26 | 2 | 28 | (18 | ) | 6 | (13 | ) | 31 | ||||||||||||||||||||
First nine months 2013 | 21 | (1 | ) | 25 | 26 | 32 | (113 | ) | (10 | ) | |||||||||||||||||||
First nine months 2012 | 79 | 6 | 70 | (38 | ) | 12 | (99 | ) | 30 | ||||||||||||||||||||
(1) | Market pulp sales excluded inter-segment sales of $4 million and $12 million for the three months ended September 30, 2013 and 2012, respectively, and $12 million and $31 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||
(2) | Corporate and other operating loss for the three and nine months ended September 30, 2013 and 2012 included the following significant items: | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
(Unaudited, in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net gain on disposition of assets | $ | — | $ | 4 | $ | 2 | $ | 28 | |||||||||||||||||||||
Closure costs, impairment and other related charges | (4 | ) | (5 | ) | (56 | ) | (98 | ) | |||||||||||||||||||||
Inventory write-downs related to closures | — | — | (5 | ) | (7 | ) | |||||||||||||||||||||||
Severance costs | — | — | — | (3 | ) | ||||||||||||||||||||||||
Transaction costs | — | — | (5 | ) | (7 | ) | |||||||||||||||||||||||
Start up costs of idled mill | (3 | ) | (5 | ) | (31 | ) | (5 | ) | |||||||||||||||||||||
$ | (7 | ) | $ | (6 | ) | $ | (95 | ) | $ | (92 | ) |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 933 | $ | 775 | $ | (578 | ) | $ | 1,130 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 848 | 587 | (578 | ) | 857 | |||||||||||||||
Depreciation and amortization | — | 25 | 36 | — | 61 | ||||||||||||||||
Distribution costs | — | 42 | 95 | (3 | ) | 134 | |||||||||||||||
Selling, general and administrative expenses | 6 | 9 | 23 | — | 38 | ||||||||||||||||
Closure costs, impairment and other related charges | — | — | 4 | — | 4 | ||||||||||||||||
Operating (loss) income | (6 | ) | 9 | 30 | 3 | 36 | |||||||||||||||
Interest expense | (16 | ) | (2 | ) | (2 | ) | 8 | (12 | ) | ||||||||||||
Other (expense) income, net | (1 | ) | 12 | 2 | (8 | ) | 5 | ||||||||||||||
Parent’s equity in loss of subsidiaries | (521 | ) | — | — | 521 | — | |||||||||||||||
(Loss) income before income taxes | (544 | ) | 19 | 30 | 524 | 29 | |||||||||||||||
Income tax (provision) benefit | (44 | ) | (574 | ) | 1 | — | (617 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (588 | ) | (555 | ) | 31 | 524 | (588 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (588 | ) | $ | (555 | ) | $ | 31 | $ | 524 | $ | (588 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (544 | ) | $ | (520 | ) | $ | 40 | $ | 480 | $ | (544 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||||
For the For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 2,715 | $ | 2,195 | $ | (1,599 | ) | $ | 3,311 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 2,481 | 1,681 | (1,590 | ) | 2,572 | |||||||||||||||
Depreciation and amortization | — | 75 | 107 | — | 182 | ||||||||||||||||
Distribution costs | — | 127 | 266 | (6 | ) | 387 | |||||||||||||||
Selling, general and administrative expenses | 16 | 36 | 74 | — | 126 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 49 | 7 | — | 56 | ||||||||||||||||
Net gain on disposition of assets | — | — | (2 | ) | — | (2 | ) | ||||||||||||||
Operating (loss) income | (16 | ) | (53 | ) | 62 | (3 | ) | (10 | ) | ||||||||||||
Interest expense | (71 | ) | (3 | ) | (6 | ) | 41 | (39 | ) | ||||||||||||
Other (expense) income, net | (60 | ) | 57 | 2 | (41 | ) | (42 | ) | |||||||||||||
Parent’s equity in loss of subsidiaries | (489 | ) | — | — | 489 | — | |||||||||||||||
(Loss) income before income taxes | (636 | ) | 1 | 58 | 486 | (91 | ) | ||||||||||||||
Income tax provision | — | (534 | ) | (13 | ) | 1 | (546 | ) | |||||||||||||
Net (loss) income including noncontrolling interests | (636 | ) | (533 | ) | 45 | 487 | (637 | ) | |||||||||||||
Net loss attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||||||||
Net (loss) income attributable to Resolute Forest Products Inc. | $ | (636 | ) | $ | (533 | ) | $ | 46 | $ | 487 | $ | (636 | ) | ||||||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $ | (587 | ) | $ | (480 | ) | $ | 42 | $ | 438 | $ | (587 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 718 | $ | 797 | $ | (362 | ) | $ | 1,153 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 635 | 617 | (362 | ) | 890 | |||||||||||||||
Depreciation and amortization | — | 23 | 36 | — | 59 | ||||||||||||||||
Distribution costs | — | 36 | 95 | — | 131 | ||||||||||||||||
Selling, general and administrative expenses | 6 | 10 | 25 | — | 41 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 4 | 1 | — | 5 | ||||||||||||||||
Net gain on disposition of assets | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Operating (loss) income | (6 | ) | 10 | 27 | — | 31 | |||||||||||||||
Interest expense | (57 | ) | (1 | ) | (1 | ) | 42 | (17 | ) | ||||||||||||
Other income, net | — | 47 | 14 | (42 | ) | 19 | |||||||||||||||
Parent’s equity in income of subsidiaries | 78 | — | — | (78 | ) | — | |||||||||||||||
Income before income taxes | 15 | 56 | 40 | (78 | ) | 33 | |||||||||||||||
Income tax benefit (provision) | 22 | (33 | ) | 15 | — | 4 | |||||||||||||||
Net income including noncontrolling interests | 37 | 23 | 55 | (78 | ) | 37 | |||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 37 | $ | 23 | $ | 55 | $ | (78 | ) | $ | 37 | ||||||||||
Comprehensive income attributable to Resolute Forest Products Inc. | $ | 40 | $ | 23 | $ | 58 | $ | (81 | ) | $ | 40 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Sales | $ | — | $ | 2,163 | $ | 2,328 | $ | (1,116 | ) | $ | 3,375 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation and amortization | — | 1,914 | 1,804 | (1,116 | ) | 2,602 | |||||||||||||||
Depreciation and amortization | — | 69 | 105 | — | 174 | ||||||||||||||||
Distribution costs | — | 106 | 279 | — | 385 | ||||||||||||||||
Selling, general and administrative expenses | 18 | 33 | 63 | — | 114 | ||||||||||||||||
Closure costs, impairment and other related charges | — | 4 | 94 | — | 98 | ||||||||||||||||
Net gain on disposition of assets | — | — | (28 | ) | — | (28 | ) | ||||||||||||||
Operating (loss) income | (18 | ) | 37 | 11 | — | 30 | |||||||||||||||
Interest expense | (163 | ) | (3 | ) | (6 | ) | 121 | (51 | ) | ||||||||||||
Other income, net | — | 130 | 13 | (121 | ) | 22 | |||||||||||||||
Parent’s equity in income of subsidiaries | 162 | — | — | (162 | ) | — | |||||||||||||||
(Loss) income before income taxes | (19 | ) | 164 | 18 | (162 | ) | 1 | ||||||||||||||
Income tax benefit (provision) | 65 | (66 | ) | 11 | — | 10 | |||||||||||||||
Net income including noncontrolling interests | 46 | 98 | 29 | (162 | ) | 11 | |||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 35 | — | 35 | ||||||||||||||||
Net income attributable to Resolute Forest Products Inc. | $ | 46 | $ | 98 | $ | 64 | $ | (162 | ) | $ | 46 | ||||||||||
Comprehensive income attributable to Resolute Forest Products Inc. | $ | 45 | $ | 98 | $ | 63 | $ | (161 | ) | $ | 45 | ||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 181 | $ | 90 | $ | — | $ | 271 | |||||||||||
Accounts receivable, net | — | 458 | 246 | — | 704 | ||||||||||||||||
Accounts receivable from affiliates | — | 132 | 196 | (328 | ) | — | |||||||||||||||
Inventories, net | — | 220 | 315 | (7 | ) | 528 | |||||||||||||||
Deferred income tax assets | — | — | 44 | — | 44 | ||||||||||||||||
Interest receivable from parent | — | 11 | — | (11 | ) | — | |||||||||||||||
Note receivable from subsidiary | 13 | — | — | (13 | ) | — | |||||||||||||||
Other current assets | — | 32 | 49 | — | 81 | ||||||||||||||||
Total current assets | 13 | 1,034 | 940 | (359 | ) | 1,628 | |||||||||||||||
Fixed assets, net | — | 874 | 1,456 | — | 2,330 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 66 | — | 66 | ||||||||||||||||
Deferred income tax assets | — | — | 1,338 | 2 | 1,340 | ||||||||||||||||
Notes receivable from parent | — | 622 | — | (622 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 520 | — | (520 | ) | — | |||||||||||||||
Investments in and advances to consolidated subsidiaries | 4,417 | 2,085 | — | (6,502 | ) | — | |||||||||||||||
Other assets | 8 | 115 | 68 | — | 191 | ||||||||||||||||
Total assets | $ | 4,438 | $ | 5,250 | $ | 3,868 | $ | (8,001 | ) | $ | 5,555 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 15 | $ | 191 | $ | 354 | $ | — | $ | 560 | |||||||||||
Current portion of long-term debt | 5 | — | 2 | — | 7 | ||||||||||||||||
Accounts payable to affiliates | 328 | — | — | (328 | ) | — | |||||||||||||||
Interest payable to subsidiary | 11 | — | — | (11 | ) | — | |||||||||||||||
Note payable to parent | — | — | 13 | (13 | ) | — | |||||||||||||||
Total current liabilities | 359 | 191 | 369 | (352 | ) | 567 | |||||||||||||||
Long-term debt, net of current portion | 594 | 3 | — | — | 597 | ||||||||||||||||
Long-term debt due to subsidiaries | 622 | — | — | (622 | ) | — | |||||||||||||||
Long-term debt due to affiliate | — | — | 520 | (520 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 463 | 1,279 | — | 1,742 | ||||||||||||||||
Deferred income tax liabilities | — | 11 | 27 | — | 38 | ||||||||||||||||
Other long-term liabilities | — | 28 | 37 | — | 65 | ||||||||||||||||
Total liabilities | 1,575 | 696 | 2,232 | (1,494 | ) | 3,009 | |||||||||||||||
Total equity | 2,863 | 4,554 | 1,636 | (6,507 | ) | 2,546 | |||||||||||||||
Total liabilities and equity | $ | 4,438 | $ | 5,250 | $ | 3,868 | $ | (8,001 | ) | $ | 5,555 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 171 | $ | 87 | $ | — | $ | 263 | |||||||||||
Accounts receivable, net | — | 383 | 366 | (52 | ) | 697 | |||||||||||||||
Accounts receivable from affiliates | — | 262 | 211 | (473 | ) | — | |||||||||||||||
Inventories, net | — | 221 | 328 | (4 | ) | 545 | |||||||||||||||
Deferred income tax assets | — | 11 | 45 | — | 56 | ||||||||||||||||
Notes and interest receivable from parent | — | 593 | — | (593 | ) | — | |||||||||||||||
Notes receivable from affiliates | — | 9 | 138 | (147 | ) | — | |||||||||||||||
Note receivable from subsidiary | 41 | — | — | (41 | ) | — | |||||||||||||||
Other current assets | — | 22 | 47 | — | 69 | ||||||||||||||||
Total current assets | 46 | 1,672 | 1,222 | (1,310 | ) | 1,630 | |||||||||||||||
Fixed assets, net | — | 908 | 1,532 | — | 2,440 | ||||||||||||||||
Amortizable intangible assets, net | — | — | 69 | — | 69 | ||||||||||||||||
Deferred income tax assets | — | 594 | 1,405 | 1 | 2,000 | ||||||||||||||||
Note receivable from affiliate | — | 531 | — | (531 | ) | — | |||||||||||||||
Investments in and advances to consolidated subsidiaries | 4,859 | 2,089 | — | (6,948 | ) | — | |||||||||||||||
Other assets | — | 98 | 96 | — | 194 | ||||||||||||||||
Total assets | $ | 4,905 | $ | 5,892 | $ | 4,324 | $ | (8,788 | ) | $ | 6,333 | ||||||||||
Liabilities and equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 11 | $ | 198 | $ | 424 | $ | (52 | ) | $ | 581 | ||||||||||
Current portion of long-term debt | — | — | 2 | — | 2 | ||||||||||||||||
Accounts payable to affiliates | 336 | 135 | 2 | (473 | ) | — | |||||||||||||||
Notes and interest payable to subsidiaries | 593 | — | — | (593 | ) | — | |||||||||||||||
Notes payable to affiliates | — | 138 | 9 | (147 | ) | — | |||||||||||||||
Note payable to parent | — | — | 41 | (41 | ) | — | |||||||||||||||
Total current liabilities | 940 | 471 | 478 | (1,306 | ) | 583 | |||||||||||||||
Long-term debt, net of current portion | 528 | 3 | 1 | — | 532 | ||||||||||||||||
Long-term debt due to affiliate | — | — | 531 | (531 | ) | — | |||||||||||||||
Pension and other postretirement benefit obligations | — | 559 | 1,387 | — | 1,946 | ||||||||||||||||
Deferred income tax liabilities | — | — | 75 | — | 75 | ||||||||||||||||
Other long-term liabilities | — | 36 | 36 | — | 72 | ||||||||||||||||
Total liabilities | 1,468 | 1,069 | 2,508 | (1,837 | ) | 3,208 | |||||||||||||||
Total equity | 3,437 | 4,823 | 1,816 | (6,951 | ) | 3,125 | |||||||||||||||
Total liabilities and equity | $ | 4,905 | $ | 5,892 | $ | 4,324 | $ | (8,788 | ) | $ | 6,333 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor | Non-guarantor | Consolidating | Consolidated | ||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | |||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 37 | $ | 73 | $ | — | $ | 110 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (45 | ) | (79 | ) | — | (124 | ) | |||||||||||||
Disposition of assets | — | — | 4 | — | 4 | ||||||||||||||||
Proceeds from insurance settlements | — | — | 4 | — | 4 | ||||||||||||||||
Decrease in restricted cash | — | — | 3 | — | 3 | ||||||||||||||||
Advances (to) from affiliates | (10 | ) | 10 | — | — | — | |||||||||||||||
Net cash used in investing activities | (10 | ) | (35 | ) | (68 | ) | — | (113 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Issuance of long-term debt | 594 | — | — | — | 594 | ||||||||||||||||
Premium paid on extinguishment of debt | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (1 | ) | — | (1 | ) | ||||||||||||||
Payments of debt | (496 | ) | — | (1 | ) | — | (497 | ) | |||||||||||||
Payments of financing and credit facility fees | (9 | ) | — | — | — | (9 | ) | ||||||||||||||
Contribution of capital from noncontrolling interest | — | 8 | — | — | 8 | ||||||||||||||||
Net cash provided by (used in) financing activities | 5 | 8 | (2 | ) | — | 11 | |||||||||||||||
Net (decrease) increase in cash and cash equivalents | (5 | ) | 10 | 3 | — | 8 | |||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | 5 | 171 | 87 | — | 263 | ||||||||||||||||
End of period | $ | — | $ | 181 | $ | 90 | $ | — | $ | 271 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
(Unaudited, in millions) | Parent | Guarantor Subsidiaries | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 126 | $ | 66 | $ | — | $ | 192 | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Cash invested in fixed assets | — | (29 | ) | (73 | ) | — | (102 | ) | |||||||||||||
Disposition of assets | — | — | 31 | — | 31 | ||||||||||||||||
Acquisition of Fibrek, net of cash acquired | — | — | (24 | ) | — | (24 | ) | ||||||||||||||
Decrease in restricted cash | — | — | 76 | — | 76 | ||||||||||||||||
Increase in deposit requirements for letters of credit, net | — | — | (12 | ) | — | (12 | ) | ||||||||||||||
Advances from (to) affiliates | 47 | (31 | ) | (16 | ) | — | — | ||||||||||||||
Net cash provided by (used in) investing activities | 47 | (60 | ) | (18 | ) | — | (31 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Purchases of treasury stock | (45 | ) | — | — | — | (45 | ) | ||||||||||||||
Dividend to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (27 | ) | — | (27 | ) | ||||||||||||||
Payments of long-term debt | — | — | (112 | ) | — | (112 | ) | ||||||||||||||
Net cash used in financing activities | (45 | ) | — | (142 | ) | — | (187 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 2 | 66 | (94 | ) | — | (26 | ) | ||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||
Beginning of period | — | 128 | 241 | — | 369 | ||||||||||||||||
End of period | $ | 2 | $ | 194 | $ | 147 | $ | — | $ | 343 | |||||||||||
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Cumulative effect of change in retained earnings due to change in accounting policy | $6 |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation - Change in Accounting Policy on Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | $857 | $890 | $2,572 | $2,602 |
Income (loss) before income taxes | 29 | 33 | -91 | 1 |
Income tax (provision) benefit | -617 | 4 | -546 | 10 |
Net (loss) income including noncontrolling interests | -588 | 37 | -637 | 11 |
Net (loss) income attributable to Resolute Forest Products Inc. | -588 | 37 | -636 | 46 |
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | ($6.22) | $0.38 | ($6.72) | $0.47 |
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | ($6.22) | $0.38 | ($6.72) | $0.47 |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -544 | 40 | -587 | 45 |
Before Accounting Policy Change [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 856 | 895 | 2,578 | 2,616 |
Income (loss) before income taxes | 30 | 28 | -97 | -13 |
Income tax (provision) benefit | -621 | 3 | -546 | 12 |
Net (loss) income including noncontrolling interests | -591 | 31 | -643 | -1 |
Net (loss) income attributable to Resolute Forest Products Inc. | -591 | 31 | -642 | 34 |
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | ($6.25) | $0.32 | ($6.78) | $0.35 |
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | ($6.25) | $0.32 | ($6.78) | $0.35 |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -547 | 34 | -593 | 33 |
Adjustment [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Cost of sales, excluding depreciation and amortization | 1 | -5 | -6 | -14 |
Income (loss) before income taxes | -1 | 5 | 6 | 14 |
Income tax (provision) benefit | 4 | 1 | 0 | -2 |
Net (loss) income including noncontrolling interests | 3 | 6 | 6 | 12 |
Net (loss) income attributable to Resolute Forest Products Inc. | 3 | 6 | 6 | 12 |
Basic net (loss) income per share attributable to Resolute Forest Products Inc. | $0.03 | $0.06 | $0.06 | $0.12 |
Diluted net (loss) income per share attributable to Resolute Forest Products Inc. | $0.03 | $0.06 | $0.06 | $0.12 |
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $3 | $6 | $6 | $12 |
Organization_and_Basis_of_Pres5
Organization and Basis of Presentation - Change in Accounting Policy on Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Other current assets | $81 | $69 |
Deferred income tax assets (non-current) | 1,340 | 2,000 |
(Deficit) retained earnings | -589 | 47 |
Before Accounting Policy Change [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Other current assets | 64 | 58 |
Deferred income tax assets (non-current) | 1,342 | 2,002 |
(Deficit) retained earnings | -604 | 38 |
Adjustment [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Other current assets | 17 | 11 |
Deferred income tax assets (non-current) | -2 | -2 |
(Deficit) retained earnings | $15 | $9 |
Acquisition_of_Fibrek_Inc_Addi
Acquisition of Fibrek Inc - Additional Information (Detail) (Fibrek [Member]) | 5 Months Ended | 6 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | 2-May-12 | Apr. 25, 2012 |
USD ($) | CAD | USD ($) | CAD | USD ($) | ManufacturingSites | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of operating mills | ' | ' | ' | ' | ' | 3 | ' |
Percentage of outstanding shares | ' | ' | ' | ' | ' | ' | 48.80% |
Percentage of owned entity | ' | ' | ' | ' | ' | 50.10% | ' |
Acquisition-related loss | ' | ' | ' | ' | $1 | ' | ' |
Transaction costs in connection with our acquisition of Fibrek | ' | ' | ' | ' | 7 | ' | ' |
Business Acquisition, Number of shares issued | 1.4 | 1.4 | 3.3 | 3.3 | ' | ' | ' |
Business Acquisition, cash paid | 27 | 27 | 63 | 63 | ' | ' | ' |
Transaction cost on acquisition of non-controlling interest in Fibrek | 1 | ' | 1 | ' | 1 | ' | ' |
Transaction costs excluded from the pro forma | ' | ' | ' | ' | $18 | ' | ' |
Acquisition_of_Fibrek_Inc_Pro_
Acquisition of Fibrek Inc - Pro Forma Results of Operations (Detail) (Fibrek [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Fibrek [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Sales | $1,153 | $3,540 |
Net income attributable to Resolute Forest Products Inc. | $37 | $42 |
Basic net income per share attributable to Resolute Forest Products Inc. | $0.38 | $0.43 |
Diluted net income per share attributable to Resolute Forest Products Inc. | $0.38 | $0.43 |
Closure_Costs_Impairment_and_O2
Closure Costs, Impairment and Other Related Charges - Closure Costs, Impairment and Other Related Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | ($6) | ' | $64 | ||||
Accelerated Depreciation | 0 | 1 | 44 | 1 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | 2 | 0 | 1 | 14 | ||||
Severance and Other Costs | 2 | 10 | 11 | 19 | ||||
Total | 4 | 5 | 56 | 98 | ||||
Bowater Mersey Paper Company Limited [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | -7 | [1] | ' | 63 | [1] | ||
Accelerated Depreciation | ' | 0 | [1] | ' | 0 | [1] | ||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | ' | 0 | [1] | ' | 9 | [1] | ||
Severance and Other Costs | ' | 5 | [1] | ' | 14 | [1] | ||
Total | ' | -2 | [1] | ' | 86 | [1] | ||
Kraft Mill in Fort Frances, Ontario [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | 0 | ' | 0 | ||||
Accelerated Depreciation | ' | 1 | ' | 1 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | ' | 0 | ' | 0 | ||||
Severance and Other Costs | ' | 2 | ' | 2 | ||||
Total | ' | 3 | ' | 3 | ||||
Paper machine in Catawba, South Carolina [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | 1 | ' | 1 | ||||
Accelerated Depreciation | ' | 0 | ' | 0 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | ' | 0 | ' | 0 | ||||
Severance and Other Costs | ' | 0 | ' | 0 | ||||
Total | ' | 1 | ' | 1 | ||||
Catawba Paper Mill [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | 0 | ' | 0 | ||||
Accelerated Depreciation | ' | 0 | ' | 0 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | ' | 0 | ' | 0 | ||||
Severance and Other Costs | ' | 3 | ' | 3 | ||||
Total | ' | 3 | ' | 3 | ||||
Paper Machine in Calhoun, Tennessee [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Accelerated Depreciation | 0 | [2] | ' | 44 | [2] | ' | ||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | 0 | [2] | ' | 0 | [2] | ' | ||
Severance and Other Costs | 0 | [2] | ' | 5 | [2] | ' | ||
Total | 0 | [2] | ' | 49 | [2] | ' | ||
Fort Frances Kraft Mill and Paper Machine [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Accelerated Depreciation | 0 | ' | 0 | ' | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | 0 | ' | 0 | ' | ||||
Severance and Other Costs | 0 | ' | 4 | ' | ||||
Total | 0 | ' | 4 | ' | ||||
Baie-Comeau Paper Mill [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | 0 | ' | 0 | ||||
Accelerated Depreciation | 0 | 0 | 0 | 0 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | 2 | 0 | 2 | 3 | ||||
Severance and Other Costs | 2 | 0 | 2 | 1 | ||||
Total | 4 | 0 | 4 | 4 | ||||
Other [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Impairment of Assets | ' | 0 | ' | 0 | ||||
Accelerated Depreciation | 0 | 0 | 0 | 0 | ||||
Pension Plan Curtailment Losses and Settlement Losses (Gains) | 0 | 0 | -1 | 2 | ||||
Severance and Other Costs | 0 | 0 | 0 | -1 | ||||
Total | $0 | $0 | ($1) | $1 | ||||
[1] | We recorded long-lived asset impairment charges (including a $7 million write-down of an asset retirement obligation for environmental liabilities) related to the indefinite idling of our operations in Bowater Mersey Paper Company Limited (our “Mersey operationsâ€) to reduce the carrying value of our net assets to fair value less costs to sell. | |||||||
[2] | Following our acquisition of the noncontrolling interest in Calhoun Newsprint Company (“CNCâ€), we indefinitely idled a paper machine at the Calhoun mill on March 12, 2013, resulting in accelerated depreciation charges to reduce the carrying value of the assets to reflect their revised estimated remaining useful lives. For additional information regarding our acquisition of the noncontrolling interest in CNC, see Note 5, "Other Income (Expense), Net.†|
Closure_Costs_Impairment_and_O3
Closure Costs, Impairment and Other Related Charges - Closure Costs, Impairment and Other Related Charges (Parenthetical) (Detail) (Bowater Mersey Paper Company Limited [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Bowater Mersey Paper Company Limited [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Write down of asset retirement obligation in long lived assets | $7 | $7 |
Net_Gain_on_Disposition_of_Ass1
Net Gain on Disposition of Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Gain (Loss) on Disposition of Assets [Abstract] | ' | ' | ' |
Proceeds from sale of assets | $9 | $2 | $27 |
Net gain on disposition of assets | $4 | $2 | $24 |
Other_Income_Expense_Net_Other
Other Income (Expense), Net - Other Income, Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Other Income and Expenses [Abstract] | ' | ' | ' | ' | ||||
Foreign exchange gain (loss) | $3 | $18 | ($9) | $21 | ||||
Net loss on extinguishment of debt | 0 | 0 | -59 | 0 | ||||
Post-emergence costs | 0 | [1] | -2 | [1] | -1 | [1] | -7 | [1] |
Gain on forgiveness of note payable | 0 | [2] | 0 | [2] | 12 | [2] | 0 | [2] |
Gain on liquidation settlement | 3 | [3] | 0 | [3] | 12 | [3] | 0 | [3] |
Income from equity method investments | 1 | 1 | 1 | 3 | ||||
Interest income | 0 | 0 | 1 | 3 | ||||
Miscellaneous (expense) income | -2 | 2 | 1 | 2 | ||||
Other income (expense), net | $5 | $19 | ($42) | $22 | ||||
[1] | Primarily represents legal and other professional fees for the resolution and settlement of disputed creditor claims, as well as costs for other post-emergence activities associated with the creditor protection proceedings, from which we emerged on December 9, 2010. For additional information, see Note 14, "Share Capital.†| |||||||
[2] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | |||||||
[3] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCLâ€), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $3 million and $12 million during the three and nine months ended September 30, 2013, respectively. |
Other_Income_Expense_Net_Other1
Other Income (Expense), Net - Other Income, Net (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 11, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Calhoun Newsprint Company [Member] | Bridgewater Paper Company Limited [Member] | Bridgewater Paper Company Limited [Member] | |||||||||
Other Income Expense [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of entity owned | ' | ' | ' | ' | 51.00% | ' | ' | ||||
Gain on forgiveness of note payable | $0 | [1] | $0 | [1] | $12 | [1] | $0 | [1] | $12 | ' | ' |
Liquidation settlement received | $3 | [2] | $0 | [2] | $12 | [2] | $0 | [2] | ' | $3 | $12 |
[1] | On March 11, 2013, we acquired the noncontrolling interest in CNC, which was previously owned 51% by us and included in our consolidated financial statements on a fully consolidated basis. As a result, CNC became a wholly-owned subsidiary of ours. In connection with this transaction, we recognized a gain on the forgiveness of a $12 million note issued by CNC. The acquisition of the noncontrolling interest in CNC was accounted for as an equity transaction. | ||||||||||
[2] | On February 2, 2010, Bridgewater Paper Company Limited (“BPCLâ€), a subsidiary of ours, filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended. As a result, we became a creditor of BPCL and lost control over their operations. In connection with our claims, we received a liquidation settlement of $3 million and $12 million during the three and nine months ended September 30, 2013, respectively. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | ($614) | ' | ||
Other comprehensive (loss) income before reclassifications | ' | ' | 38 | ' | ||
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 11 | [1] | ' | |
Other comprehensive income (loss), net of tax | 44 | 3 | 49 | -9 | ||
Ending balance | -565 | ' | -565 | ' | ||
Unamortized Prior Service Credits [Member] | ' | ' | ' | ' | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 21 | [2],[3] | ' | |
Other comprehensive (loss) income before reclassifications | ' | ' | -1 | [2],[3] | ' | |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | -2 | [1],[2],[3] | ' | |
Other comprehensive income (loss), net of tax | ' | ' | -3 | [2],[3] | ' | |
Ending balance | 18 | [2],[3] | ' | 18 | [2],[3] | ' |
Unamortized Actuarial Losses [Member] | ' | ' | ' | ' | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | -640 | [3],[4],[5] | ' | |
Other comprehensive (loss) income before reclassifications | ' | ' | 42 | [3],[4],[5] | ' | |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 13 | [1],[3],[4],[5] | ' | |
Other comprehensive income (loss), net of tax | ' | ' | 55 | [3],[4],[5] | ' | |
Ending balance | -585 | [3],[4],[5] | ' | -585 | [3],[4],[5] | ' |
Foreign Currency Translation [Member] | ' | ' | ' | ' | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ||
Beginning balance | ' | ' | 5 | ' | ||
Other comprehensive (loss) income before reclassifications | ' | ' | -3 | ' | ||
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 0 | [1] | ' | |
Other comprehensive income (loss), net of tax | ' | ' | -3 | ' | ||
Ending balance | $2 | ' | $2 | ' | ||
[1] | See the table below for details about these reclassifications. | |||||
[2] | In the second quarter of 2013, following the restart of our previously idled Gatineau paper mill, 119 employees were reinstated to our pension plans. As a result, “Pension and other postretirement benefit obligations†and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of September 30, 2013 were increased by $18 million and $13 million (net of tax of $5 million), respectively. | |||||
[3] | In the third quarter of 2013, we approved the reduction in benefits for U.S. salaried post-65 retirees in our other postretirement benefit (“OPEBâ€) plan, effective January 1, 2014. As a result of this plan amendment, “Pension and other postretirement benefit obligations†and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of September 30, 2013, were decreased by $57 million and $35 million (net of tax of $22 million), respectively, and consisted of $13 million (net of tax of $8 million ) of unamortized prior service credits and $22 million (net of tax of $14 million) of unamortized actuarial losses. | |||||
[4] | In the second quarter of 2013, we recorded certain adjustments associated with our previously reported pension and OPEB obligations. As a result, “Pension and other postretirement benefit obligations†and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $27 million and $17 million (net of tax of $10 million), respectively. | |||||
[5] | In September 2013, we announced a workforce reduction at our Baie-Comeau paper mill, which will result in the elimination of approximately 90 positions. As a result, "Pension and other postretirement benefit obligations" and “Accumulated other comprehensive loss†in our Consolidated Balance Sheet as of September 30, 2013 were decreased by $8 million and $6 million (net of tax of $2 million), respectively. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) (Parenthetical) (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
US OPEB For U.S. Salaried Post-65 Retirees [Member] | US OPEB For U.S. Salaried Post-65 Retirees [Member] | US OPEB For U.S. Salaried Post-65 Retirees [Member] | Previously Reported Pension and OPEB Obligations [Member] | Previously Reported Pension and OPEB Obligations [Member] | Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Gatineau Paper Mill [Member] | Gatineau Paper Mill [Member] | Gatineau Paper Mill [Member] | |
Unamortized Prior Service Credits [Member] | Unamortized Actuarial Losses [Member] | Unamortized Actuarial Losses [Member] | Positions | Positions | Unamortized Actuarial Losses [Member] | Employees | Unamortized Prior Service Credits [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions affected due to closure of mills and idling of mills and machines | ' | ' | ' | ' | ' | 90 | 90 | ' | ' | ' | ' | ' |
Number of employees reinstated to pension plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119 | ' | ' |
Increased (decreased) pension and other postretirement benefit obligations | ($57) | ' | ' | ($27) | ' | ' | ' | ($8) | ' | ' | $18 | ' |
Increased (decreased) accumulated other comprehensive loss | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased (decreased) accumulated other comprehensive loss, tax | -22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased (decreased) accumulated other comprehensive loss, unamortized prior service credits | ' | -13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 |
Increased (decreased) accumulated other comprehensive loss, unamortized prior service credits, tax | ' | -8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Increased (decreased) accumulated other comprehensive loss, unamortized actuarial losses | ' | 22 | ' | ' | 17 | ' | ' | ' | 6 | ' | ' | ' |
Increased (decreased) accumulated other comprehensive loss, unamortized actuarial losses, tax | ' | ' | $14 | ' | $10 | ' | ' | ' | ($2) | ' | ' | ' |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | |
Cost of sales, excluding depreciation and amortization, Reclassifying adjustment | $857 | $890 | $2,572 | $2,602 | |
Income tax (benefit) provision, Reclassifying adjustment | 617 | -4 | 546 | -10 | |
Net loss (income) including noncontrolling interests | 588 | -37 | 637 | -11 | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | |
Net loss (income) including noncontrolling interests | ' | ' | 11 | ' | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | Unamortized Prior Service Credits [Member] | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | |
Cost of sales, excluding depreciation and amortization, Reclassifying adjustment | ' | ' | -2 | [1] | ' |
Income tax (benefit) provision, Reclassifying adjustment | ' | ' | 0 | ' | |
Net loss (income) including noncontrolling interests | ' | ' | -2 | ' | |
Amounts Reclassified from Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | ' | ' | ' | ' | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | |
Cost of sales, excluding depreciation and amortization, Reclassifying adjustment | ' | ' | 18 | [1] | ' |
Income tax (benefit) provision, Reclassifying adjustment | ' | ' | -5 | ' | |
Net loss (income) including noncontrolling interests | ' | ' | $13 | ' | |
[1] | These items are included in the computation of net periodic benefit cost related to our pension and OPEB plans summarized in Note 11, "Employee Benefit Plans.†|
Net_Loss_Income_Per_Share_Addi
Net (Loss) Income Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Adjustment To Net Income Loss For Earnings Per Share Calculation | $0 | $0 | $0 | $0 | ||||
Weighted-average number of common shares outstanding, basic | 94.6 | 98.1 | 94.7 | 98 | ||||
Weighted-average number of common shares outstanding, diluted | 94.6 | 98.1 | 94.7 | 98.1 | ||||
Stock Option [Member] | ' | ' | ' | ' | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Number of award shares outstanding | 1.4 | [1] | 0.8 | [2] | 1.4 | [1] | 0.8 | [2] |
RSUs and DSUs [Member] | ' | ' | ' | ' | ||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Number of award shares outstanding | 0.7 | [1] | 0.4 | [2] | 0.7 | [1] | 0.4 | [2] |
[1] | These option shares and RSUs and DSUs were excluded from the calculation of diluted net loss per share as the impact would have been antidilutive. | |||||||
[2] | The dilutive impact of these option shares and RSUs and DSUs on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. |
Inventories_Net_Components_of_
Inventories, Net - Components of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and work in process | $147 | $181 |
Finished goods | 198 | 188 |
Mill stores and other supplies | 183 | 176 |
Inventories, net | $528 | $545 |
Inventories_Net_Additional_Inf
Inventories, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Inventory [Line Items] | ' | ' | ' | ' |
Inventory write-downs related to closures | $0 | $0 | $5 | $7 |
Paper Machine in Calhoun, Tennessee [Member] | ' | ' | ' | ' |
Inventory [Line Items] | ' | ' | ' | ' |
Inventory write-downs related to closures | ' | ' | 4 | ' |
Fort Frances Kraft Mill and Paper Machine [Member] | ' | ' | ' | ' |
Inventory [Line Items] | ' | ' | ' | ' |
Inventory write-downs related to closures | ' | ' | $1 | ' |
Severance_Related_Liabilities_1
Severance Related Liabilities - Schedule of Activity in Severance Related Liabilities (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Restructuring Reserve [Roll Forward] | ' |
Severance liability, beginning balance | $15 |
Charges | 8 |
Payments | -16 |
Severance liability, ending balance | 7 |
2013 Initiatives [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Severance liability, beginning balance | 0 |
Charges | 6 |
Payments | -4 |
Severance liability, ending balance | 2 |
2012 Initiatives [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Severance liability, beginning balance | 13 |
Charges | 3 |
Payments | -11 |
Severance liability, ending balance | 5 |
2011 Initiatives [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Severance liability, beginning balance | 2 |
Charges | -1 |
Payments | -1 |
Severance liability, ending balance | $0 |
LongTerm_Debt_Long_Term_Debt_I
Long-Term Debt - Long Term Debt Including Current Portion (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $604 | $534 |
Less: Current portion of long-term debt | -7 | -2 |
Long-term debt, net of current portion | 597 | 532 |
Senior Notes Due 2023 [Member] | Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount | 600 | 0 |
Unamortized discount | -6 | 0 |
Net carrying amount | 594 | 0 |
Senior Secured Notes Due 2018 [Member] | Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount | 5 | 501 |
Unamortized discount | 0 | 27 |
Net carrying amount | 5 | 528 |
Other Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Capital lease obligation | 3 | 3 |
Total debt | 5 | 6 |
Other Debt [Member] | PSIF-Investissement Quebec [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Net carrying amount | $2 | $3 |
LongTerm_Debt_Debt_Instrument_
Long-Term Debt - Debt Instrument Redemption (Detail) (Senior Notes Due 2023 [Member], Senior Notes [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Twelve Month Period Beginning May 15, 2017 [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption Price | 104.41% |
Twelve Month Period Beginning May 15, 2018 [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption Price | 102.94% |
Twelve Month Period Beginning May 15, 2019 [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption Price | 101.47% |
Twelve Month Period Beginning May 15, 2020 and Thereafter [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption Price | 100.00% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 29, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 8-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 8-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 08, 2013 | |
ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | Senior Notes Due 2023 [Member] | Senior Notes Due 2023 [Member] | Senior Notes Due 2023 [Member] | Senior Notes Due 2023 [Member] | Senior Notes Due 2023 [Member] | Senior Secured Notes Due 2018 [Member] | Senior Secured Notes Due 2018 [Member] | Senior Secured Notes Due 2018 [Member] | Other Debt [Member] | Other Debt [Member] | Subsequent Event [Member] | |||||
Letter of Credit [Member] | U.S. Borrowers [Member] | Canadian Borrower [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | PSIF-Investissement Quebec [Member] | Senior Secured Notes Due 2018 [Member] | ||||||||
Interest Increase Triggering Event First Ninety Days [Member] | Interest Increase Triggering Event Subsequent Ninety Days [Member] | Maximum [Member] | Senior Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of senior note | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.88% | ' | ' | ' | ' | ' | 10.25% | ' | ' | ' | ' |
Fair value of notes recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | 594,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization to interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | 28-Oct-16 | ' | ' | ' | 15-May-23 | ' | ' | ' | ' | ' | 15-Oct-18 | ' | ' | ' | ' |
Redemption price as percentage of principal prior to May 15, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of redemption of notes from proceeds of equity offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price as percentage of principal before May 15, 2016 from proceeds from equity offerings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price percentage of the principal amount to be purchased if change in control exists | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price as percentage of principal from the sale of certain assets if proceeds are not used to pay certain debt or for capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Registration rights agreement, date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8-May-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange offer period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '400 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.25% | 1.00% | ' | ' | ' | ' | ' | ' |
Fair value of senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 530,000,000 | ' | ' | ' | ' | 5,000,000 | 576,000,000 | ' | ' | ' |
Fees incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 496,000,000 | ' | ' | ' | ' | 5,000,000 |
Redemption price, percent of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103.00% |
Percentage of outstanding principal amount tendered as of early tender deadline | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' | ' | ' | ' |
Purchase of tender including accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 584,000,000 | ' | ' | ' | ' | ' |
Accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' |
Net loss on extinguishment of debt | 0 | 0 | 59,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,000,000 | ' | ' | ' | ' |
Write-down of unamortized premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' |
Tender offer expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-May-13 | ' | ' | ' | ' | ' |
Increase of aggregate commitments | ' | ' | ' | ' | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate commitments | ' | ' | ' | ' | 665,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity | ' | ' | ' | ' | ' | 566,000,000 | ' | 357,000,000 | 209,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility amount outstanding | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest free loan maximum installment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Fair value of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' |
Current interest rate for financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.40% | ' |
Renewal period of warehouse | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Settlement and curtailments | $2 | $0 | $1 | $14 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 8 | 8 | 24 | 26 |
Interest cost | 68 | 79 | 208 | 231 |
Expected return on plan assets | -77 | -86 | -232 | -253 |
Amortization of actuarial losses | 7 | 1 | 19 | 1 |
Amortization of prior service credits | -1 | 0 | -2 | 0 |
Settlement and curtailments | 2 | 0 | 1 | 14 |
Net periodic benefit cost | 7 | 2 | 18 | 19 |
OPEB Plans [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 1 | 1 | 3 | 2 |
Interest cost | 3 | 5 | 11 | 15 |
Amortization of actuarial losses | -1 | 0 | -1 | 0 |
Net periodic benefit cost | $3 | $6 | $13 | $17 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 |
Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Baie-Comeau Paper Mill [Member] | Mersey Operations [Member] | Mersey Operations [Member] | Mersey Operations [Member] | |||||
Positions | Positions | Positions | Positions | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of positions affected due to closure of mills and idling of mills and machines | ' | ' | ' | ' | 90 | 90 | ' | ' | 176 | 97 | ' |
Curtailment loss included in the net periodic benefit cost | ' | ' | ' | ' | ' | ' | $2 | $3 | ' | ' | $7 |
Settlement loss included in the net periodic benefit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Expense for the defined contribution plans, total | $6 | $5 | $17 | $16 | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Tax (Provision) Benefit to Income Tax Benefit (Provision) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Income (loss) before income taxes | $29 | $33 | ($91) | $1 | ||||
Income tax (provision) benefit: | ' | ' | ' | ' | ||||
Expected income tax (provision) benefit | -10 | -11 | 32 | 0 | ||||
Changes resulting from: | ' | ' | ' | ' | ||||
Valuation allowance | -615 | [1] | -5 | [1] | -582 | [1] | -33 | [1] |
Adjustments for unrecognized tax benefits | 2 | [2] | 2 | [2] | 2 | [2] | 6 | [2] |
Foreign exchange | -1 | 8 | -2 | 11 | ||||
Reorganization-related and other tax adjustments | 0 | [3] | 6 | [3] | 0 | [3] | 16 | [3] |
Research and development tax incentives | 1 | 1 | 2 | 4 | ||||
State income taxes and foreign tax rate differences | 4 | 4 | 8 | 5 | ||||
Other, net | 2 | -1 | -6 | 1 | ||||
Income tax (provision) benefit | ($617) | $4 | ($546) | $10 | ||||
[1] | During the three and nine months ended September 30, 2013, we recorded a net increase in valuation allowances of $615 million and $582 million, respectively, mostly due to a charge of $619 million recorded in the third quarter in order to establish a full valuation allowance against our net U.S. deferred income tax assets, as explained below. The increase in the valuation allowance during the nine months ended September 30, 2012 mostly related to costs associated with the indefinite idling of our Mersey operations, where we did not recognize tax benefits. | |||||||
[2] | During the nine months ended September 30, 2012, we recorded previously unrecognized tax benefits of $6 million, following the conclusion of tax examinations related to prior years. | |||||||
[3] | During the three and nine months ended September 30, 2012, we recorded a tax benefit related to favorable reorganization and other tax adjustments of $6 million and $16 million, respectively, representing adjustments to our previously reported tax balances. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ||||
Net increase in valuation allowances | $615 | ' | ' | $582 | ' | ||||
Deferred income taxes | ' | ' | ' | 546 | -6 | ||||
Recorded benefits for previously unrecognized tax benefits | ' | ' | ' | ' | 6 | ||||
Tax benefit related to favorable reorganization and other tax adjustments | 0 | [1] | ' | 6 | [1] | 0 | [1] | 16 | [1] |
Deferred Income Tax Provision Allocated to Equity Transaction | ' | 3 | ' | ' | ' | ||||
Federal and State Jurisdictions [Member] | ' | ' | ' | ' | ' | ||||
Valuation Allowance [Line Items] | ' | ' | ' | ' | ' | ||||
Deferred income taxes | $619 | ' | ' | ' | ' | ||||
[1] | During the three and nine months ended September 30, 2012, we recorded a tax benefit related to favorable reorganization and other tax adjustments of $6 million and $16 million, respectively, representing adjustments to our previously reported tax balances. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2012 |
USD ($) | CAD | Fibrek [Member] | |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Percentage of outstanding shares | ' | ' | 25.40% |
Remaining consideration to be distributed | $14 | 14 | ' |
Maximum deficit from partial wind up of pension plans to be funded | $150 | ' | ' |
Share_Capital_Additional_Infor
Share Capital - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Aug. 09, 2013 | 22-May-12 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 09, 2010 | |
Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Remaining Unresolved Claims Under Chapter 11 Reorganization Plan | ' | ' | ' | 0 | ' | ' |
Excess shares in disputed claim share reserve definitely allocated for distribution | 203,791 | ' | ' | 276,662 | ' | ' |
Shares distributed to the holders of unsecured claims | 1,268,420 | ' | ' | ' | ' | ' |
Excess shares in disputed claim share reserve transferred to treasury stock, debtor had no creditor | 46,884 | ' | ' | ' | ' | ' |
Excess shares in disputed claim share reserve transferred to other claimholders | 156,907 | ' | ' | ' | ' | ' |
Remaining Unresolved Unsecured Claims under CCAA Reorganization Plan | 0 | ' | ' | ' | ' | ' |
Shares distributed related to Chapter 11 general unsecured claims further distributed or allocated | 9,497 | ' | ' | ' | ' | ' |
Common stock in disputed claim share reserve | ' | ' | ' | ' | ' | 23,382,073 |
Percentage of shares of common stock authorized to be repurchased | ' | 10.00% | ' | ' | ' | ' |
Aggregate purchase price of common stock | ' | $100,000,000 | ' | ' | ' | ' |
Repurchase of treasury stock, shares | ' | ' | 2,600,000 | 0 | 3,700,000 | ' |
Cost of common stock repurchased | ' | ' | $33,000,000 | ' | $45,000,000 | ' |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | $1,130 | $1,153 | $3,311 | $3,375 | ||||
Depreciation and amortization | 61 | 59 | 182 | 174 | ||||
Operating income (loss) | 36 | [1] | 31 | [1] | -10 | [1] | 30 | [1] |
Net gain on disposition of assets | 0 | 4 | 2 | 28 | ||||
Closure costs, impairment and other related charges | -4 | -5 | -56 | -98 | ||||
Inventory write-downs related to closures | 0 | 0 | -5 | -7 | ||||
Severance | 0 | 0 | 0 | -3 | ||||
Transaction costs | 0 | 0 | -5 | -7 | ||||
Start up costs of idled mill | -3 | -5 | -31 | -5 | ||||
Significant items included in Corporate/Other operating Income/loss, Total | -7 | -6 | -95 | -92 | ||||
Newsprint [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 376 | 404 | 1,096 | 1,236 | ||||
Depreciation and amortization | 18 | 18 | 54 | 54 | ||||
Operating income (loss) | 13 | [1] | 26 | [1] | 21 | [1] | 79 | [1] |
Coated Papers [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 92 | 109 | 290 | 358 | ||||
Depreciation and amortization | 9 | 9 | 27 | 28 | ||||
Operating income (loss) | -3 | [1] | 2 | [1] | -1 | [1] | 6 | [1] |
Specialty Papers [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 247 | 279 | 727 | 839 | ||||
Depreciation and amortization | 10 | 11 | 30 | 35 | ||||
Operating income (loss) | 17 | [1] | 28 | [1] | 25 | [1] | 70 | [1] |
Market Pulp [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 269 | [2] | 233 | [2] | 772 | [2] | 571 | [2] |
Depreciation and amortization | 13 | [2] | 13 | [2] | 39 | [2] | 31 | [2] |
Operating income (loss) | 21 | [1],[2] | -18 | [1],[2] | 26 | [1],[2] | -38 | [1],[2] |
Wood Products [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 146 | 128 | 426 | 371 | ||||
Depreciation and amortization | 9 | 8 | 27 | 26 | ||||
Operating income (loss) | 0 | [1] | 6 | [1] | 32 | [1] | 12 | [1] |
Corporate and Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 2 | 0 | 5 | 0 | ||||
Operating income (loss) | ($12) | [1] | ($13) | [1] | ($113) | [1] | ($99) | [1] |
[1] | Corporate and other operating loss for the three and nine months ended September 30, 2013 and 2012 included the following significant items: Three Months Ended September 30, Nine Months Ended September 30,(Unaudited, in millions)2013 2012 2013 2012 Net gain on disposition of assets$— $4 $2 $28 Closure costs, impairment and other related charges (4) (5) (56) (98) Inventory write-downs related to closures — — (5) (7) Severance costs — — — (3) Transaction costs — — (5) (7) Start up costs of idled mill (3) (5) (31) (5) $(7) $(6) $(95) $(92) | |||||||
[2] | Market pulp sales excluded inter-segment sales of $4 million and $12 million for the three months ended September 30, 2013 and 2012, respectively, and $12 million and $31 million for the nine months ended September 30, 2013 and 2012, respectively. |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | $1,130 | $1,153 | $3,311 | $3,375 | ||||
Market Pulp [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | 269 | [1] | 233 | [1] | 772 | [1] | 571 | [1] |
Market Pulp [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Sales | $4 | $12 | $12 | $31 | ||||
[1] | Market pulp sales excluded inter-segment sales of $4 million and $12 million for the three months ended September 30, 2013 and 2012, respectively, and $12 million and $31 million for the nine months ended September 30, 2013 and 2012, respectively. |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales | $1,130 | $1,153 | $3,311 | $3,375 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | 857 | 890 | 2,572 | 2,602 | ||||
Depreciation and amortization | 61 | 59 | 182 | 174 | ||||
Distribution costs | 134 | 131 | 387 | 385 | ||||
Selling, general and administrative expenses | 38 | 41 | 126 | 114 | ||||
Closure costs, impairment and other related charges | 4 | 5 | 56 | 98 | ||||
Net gain on disposition of assets | 0 | -4 | -2 | -28 | ||||
Operating income (loss) | 36 | [1] | 31 | [1] | -10 | [1] | 30 | [1] |
Interest expense | -12 | -17 | -39 | -51 | ||||
Other income (expense), net | 5 | 19 | -42 | 22 | ||||
Parent's equity in income (loss) of subsidiaries | ' | 0 | 0 | 0 | ||||
Income (loss) before income taxes | 29 | 33 | -91 | 1 | ||||
Income tax (provision) benefit | -617 | 4 | -546 | 10 | ||||
Net (loss) income including noncontrolling interests | -588 | 37 | -637 | 11 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 1 | 35 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | -588 | 37 | -636 | 46 | ||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -544 | 40 | -587 | 45 | ||||
Parent [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales | 0 | 0 | 0 | 0 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | ' | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Distribution costs | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 6 | 6 | 16 | 18 | ||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | 0 | ||||
Net gain on disposition of assets | ' | 0 | 0 | 0 | ||||
Operating income (loss) | -6 | -6 | -16 | -18 | ||||
Interest expense | -16 | -57 | -71 | -163 | ||||
Other income (expense), net | -1 | 0 | -60 | 0 | ||||
Parent's equity in income (loss) of subsidiaries | -521 | 78 | -489 | 162 | ||||
Income (loss) before income taxes | -544 | 15 | -636 | -19 | ||||
Income tax (provision) benefit | -44 | 22 | 0 | 65 | ||||
Net (loss) income including noncontrolling interests | -588 | 37 | -636 | 46 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | -588 | 37 | -636 | 46 | ||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -544 | 40 | -587 | 45 | ||||
Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales | 933 | 718 | 2,715 | 2,163 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | 848 | 635 | 2,481 | 1,914 | ||||
Depreciation and amortization | 25 | 23 | 75 | 69 | ||||
Distribution costs | 42 | 36 | 127 | 106 | ||||
Selling, general and administrative expenses | 9 | 10 | 36 | 33 | ||||
Closure costs, impairment and other related charges | 0 | 4 | 49 | 4 | ||||
Net gain on disposition of assets | ' | 0 | 0 | 0 | ||||
Operating income (loss) | 9 | 10 | -53 | 37 | ||||
Interest expense | -2 | -1 | -3 | -3 | ||||
Other income (expense), net | 12 | 47 | 57 | 130 | ||||
Parent's equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||
Income (loss) before income taxes | 19 | 56 | 1 | 164 | ||||
Income tax (provision) benefit | -574 | -33 | -534 | -66 | ||||
Net (loss) income including noncontrolling interests | -555 | 23 | -533 | 98 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | -555 | 23 | -533 | 98 | ||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | -520 | 23 | -480 | 98 | ||||
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales | 775 | 797 | 2,195 | 2,328 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | 587 | 617 | 1,681 | 1,804 | ||||
Depreciation and amortization | 36 | 36 | 107 | 105 | ||||
Distribution costs | 95 | 95 | 266 | 279 | ||||
Selling, general and administrative expenses | 23 | 25 | 74 | 63 | ||||
Closure costs, impairment and other related charges | 4 | 1 | 7 | 94 | ||||
Net gain on disposition of assets | ' | -4 | -2 | -28 | ||||
Operating income (loss) | 30 | 27 | 62 | 11 | ||||
Interest expense | -2 | -1 | -6 | -6 | ||||
Other income (expense), net | 2 | 14 | 2 | 13 | ||||
Parent's equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 | ||||
Income (loss) before income taxes | 30 | 40 | 58 | 18 | ||||
Income tax (provision) benefit | 1 | 15 | -13 | 11 | ||||
Net (loss) income including noncontrolling interests | 31 | 55 | 45 | 29 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 1 | 35 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | 31 | 55 | 46 | 64 | ||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | 40 | 58 | 42 | 63 | ||||
Consolidating Adjustments [Member] | ' | ' | ' | ' | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Sales | -578 | -362 | -1,599 | -1,116 | ||||
Costs and expenses: | ' | ' | ' | ' | ||||
Cost of sales, excluding depreciation and amortization | -578 | -362 | -1,590 | -1,116 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Distribution costs | -3 | 0 | -6 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Closure costs, impairment and other related charges | 0 | 0 | 0 | 0 | ||||
Net gain on disposition of assets | ' | 0 | 0 | 0 | ||||
Operating income (loss) | 3 | 0 | -3 | 0 | ||||
Interest expense | 8 | 42 | 41 | 121 | ||||
Other income (expense), net | -8 | -42 | -41 | -121 | ||||
Parent's equity in income (loss) of subsidiaries | 521 | -78 | 489 | -162 | ||||
Income (loss) before income taxes | 524 | -78 | 486 | -162 | ||||
Income tax (provision) benefit | 0 | 0 | 1 | 0 | ||||
Net (loss) income including noncontrolling interests | 524 | -78 | 487 | -162 | ||||
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net (loss) income attributable to Resolute Forest Products Inc. | 524 | -78 | 487 | -162 | ||||
Comprehensive (loss) income attributable to Resolute Forest Products Inc. | $480 | ($81) | $438 | ($161) | ||||
[1] | Corporate and other operating loss for the three and nine months ended September 30, 2013 and 2012 included the following significant items: Three Months Ended September 30, Nine Months Ended September 30,(Unaudited, in millions)2013 2012 2013 2012 Net gain on disposition of assets$— $4 $2 $28 Closure costs, impairment and other related charges (4) (5) (56) (98) Inventory write-downs related to closures — — (5) (7) Severance costs — — — (3) Transaction costs — — (5) (7) Start up costs of idled mill (3) (5) (31) (5) $(7) $(6) $(95) $(92) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $271 | $263 | $343 | $369 |
Accounts receivable, net | 704 | 697 | ' | ' |
Accounts receivable from affiliates | 0 | 0 | ' | ' |
Inventories, net | 528 | 545 | ' | ' |
Deferred income tax assets | 44 | 56 | ' | ' |
Interest receivable from parent | 0 | ' | ' | ' |
Notes and interest receivable from parent | ' | 0 | ' | ' |
Notes receivable from affiliates | ' | 0 | ' | ' |
Note receivable from subsidiary | 0 | 0 | ' | ' |
Other current assets | 81 | 69 | ' | ' |
Total current assets | 1,628 | 1,630 | ' | ' |
Fixed assets, net | 2,330 | 2,440 | ' | ' |
Amortizable intangible assets, net | 66 | 69 | ' | ' |
Deferred income tax assets | 1,340 | 2,000 | ' | ' |
Notes receivable from parent | 0 | ' | ' | ' |
Notes receivable from affiliates | 0 | 0 | ' | ' |
Investments in and advances to consolidated subsidiaries | 0 | 0 | ' | ' |
Other assets | 191 | 194 | ' | ' |
Total assets | 5,555 | 6,333 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 560 | 581 | ' | ' |
Current portion of long-term debt | 7 | 2 | ' | ' |
Accounts payable to affiliates | 0 | 0 | ' | ' |
Interest payable to subsidiary | 0 | ' | ' | ' |
Notes and interest payable to subsidiaries | ' | 0 | ' | ' |
Notes payable to affiliates | ' | 0 | ' | ' |
Note payable to parent | 0 | 0 | ' | ' |
Total current liabilities | 567 | 583 | ' | ' |
Long-term debt, net of current portion | 597 | 532 | ' | ' |
Long-term debt due to subsidiaries | 0 | ' | ' | ' |
Long-term debt due to affiliate | 0 | 0 | ' | ' |
Pension and other postretirement benefit obligations | 1,742 | 1,946 | ' | ' |
Deferred income tax liabilities | 38 | 75 | ' | ' |
Other long-term liabilities | 65 | 72 | ' | ' |
Total liabilities | 3,009 | 3,208 | ' | ' |
Total equity | 2,546 | 3,125 | 3,484 | 3,483 |
Total liabilities and equity | 5,555 | 6,333 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 5 | 2 | 0 |
Accounts receivable, net | 0 | 0 | ' | ' |
Accounts receivable from affiliates | 0 | 0 | ' | ' |
Inventories, net | 0 | 0 | ' | ' |
Deferred income tax assets | 0 | 0 | ' | ' |
Interest receivable from parent | 0 | ' | ' | ' |
Notes and interest receivable from parent | ' | 0 | ' | ' |
Notes receivable from affiliates | ' | 0 | ' | ' |
Note receivable from subsidiary | 13 | 41 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | 13 | 46 | ' | ' |
Fixed assets, net | 0 | 0 | ' | ' |
Amortizable intangible assets, net | 0 | 0 | ' | ' |
Deferred income tax assets | 0 | 0 | ' | ' |
Notes receivable from parent | 0 | ' | ' | ' |
Notes receivable from affiliates | 0 | 0 | ' | ' |
Investments in and advances to consolidated subsidiaries | 4,417 | 4,859 | ' | ' |
Other assets | 8 | 0 | ' | ' |
Total assets | 4,438 | 4,905 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 15 | 11 | ' | ' |
Current portion of long-term debt | 5 | 0 | ' | ' |
Accounts payable to affiliates | 328 | 336 | ' | ' |
Interest payable to subsidiary | 11 | ' | ' | ' |
Notes and interest payable to subsidiaries | ' | 593 | ' | ' |
Notes payable to affiliates | ' | 0 | ' | ' |
Note payable to parent | 0 | 0 | ' | ' |
Total current liabilities | 359 | 940 | ' | ' |
Long-term debt, net of current portion | 594 | 528 | ' | ' |
Long-term debt due to subsidiaries | 622 | ' | ' | ' |
Long-term debt due to affiliate | 0 | 0 | ' | ' |
Pension and other postretirement benefit obligations | 0 | 0 | ' | ' |
Deferred income tax liabilities | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 1,575 | 1,468 | ' | ' |
Total equity | 2,863 | 3,437 | ' | ' |
Total liabilities and equity | 4,438 | 4,905 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 181 | 171 | 194 | 128 |
Accounts receivable, net | 458 | 383 | ' | ' |
Accounts receivable from affiliates | 132 | 262 | ' | ' |
Inventories, net | 220 | 221 | ' | ' |
Deferred income tax assets | 0 | 11 | ' | ' |
Interest receivable from parent | 11 | ' | ' | ' |
Notes and interest receivable from parent | ' | 593 | ' | ' |
Notes receivable from affiliates | ' | 9 | ' | ' |
Note receivable from subsidiary | 0 | 0 | ' | ' |
Other current assets | 32 | 22 | ' | ' |
Total current assets | 1,034 | 1,672 | ' | ' |
Fixed assets, net | 874 | 908 | ' | ' |
Amortizable intangible assets, net | 0 | 0 | ' | ' |
Deferred income tax assets | 0 | 594 | ' | ' |
Notes receivable from parent | 622 | ' | ' | ' |
Notes receivable from affiliates | 520 | 531 | ' | ' |
Investments in and advances to consolidated subsidiaries | 2,085 | 2,089 | ' | ' |
Other assets | 115 | 98 | ' | ' |
Total assets | 5,250 | 5,892 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 191 | 198 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable to affiliates | 0 | 135 | ' | ' |
Interest payable to subsidiary | 0 | ' | ' | ' |
Notes and interest payable to subsidiaries | ' | 0 | ' | ' |
Notes payable to affiliates | ' | 138 | ' | ' |
Note payable to parent | 0 | 0 | ' | ' |
Total current liabilities | 191 | 471 | ' | ' |
Long-term debt, net of current portion | 3 | 3 | ' | ' |
Long-term debt due to subsidiaries | 0 | ' | ' | ' |
Long-term debt due to affiliate | 0 | 0 | ' | ' |
Pension and other postretirement benefit obligations | 463 | 559 | ' | ' |
Deferred income tax liabilities | 11 | 0 | ' | ' |
Other long-term liabilities | 28 | 36 | ' | ' |
Total liabilities | 696 | 1,069 | ' | ' |
Total equity | 4,554 | 4,823 | ' | ' |
Total liabilities and equity | 5,250 | 5,892 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 90 | 87 | 147 | 241 |
Accounts receivable, net | 246 | 366 | ' | ' |
Accounts receivable from affiliates | 196 | 211 | ' | ' |
Inventories, net | 315 | 328 | ' | ' |
Deferred income tax assets | 44 | 45 | ' | ' |
Interest receivable from parent | 0 | ' | ' | ' |
Notes and interest receivable from parent | ' | 0 | ' | ' |
Notes receivable from affiliates | ' | 138 | ' | ' |
Note receivable from subsidiary | 0 | 0 | ' | ' |
Other current assets | 49 | 47 | ' | ' |
Total current assets | 940 | 1,222 | ' | ' |
Fixed assets, net | 1,456 | 1,532 | ' | ' |
Amortizable intangible assets, net | 66 | 69 | ' | ' |
Deferred income tax assets | 1,338 | 1,405 | ' | ' |
Notes receivable from parent | 0 | ' | ' | ' |
Notes receivable from affiliates | 0 | 0 | ' | ' |
Investments in and advances to consolidated subsidiaries | 0 | 0 | ' | ' |
Other assets | 68 | 96 | ' | ' |
Total assets | 3,868 | 4,324 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 354 | 424 | ' | ' |
Current portion of long-term debt | 2 | 2 | ' | ' |
Accounts payable to affiliates | 0 | 2 | ' | ' |
Interest payable to subsidiary | 0 | ' | ' | ' |
Notes and interest payable to subsidiaries | ' | 0 | ' | ' |
Notes payable to affiliates | ' | 9 | ' | ' |
Note payable to parent | 13 | 41 | ' | ' |
Total current liabilities | 369 | 478 | ' | ' |
Long-term debt, net of current portion | 0 | 1 | ' | ' |
Long-term debt due to subsidiaries | 0 | ' | ' | ' |
Long-term debt due to affiliate | 520 | 531 | ' | ' |
Pension and other postretirement benefit obligations | 1,279 | 1,387 | ' | ' |
Deferred income tax liabilities | 27 | 75 | ' | ' |
Other long-term liabilities | 37 | 36 | ' | ' |
Total liabilities | 2,232 | 2,508 | ' | ' |
Total equity | 1,636 | 1,816 | ' | ' |
Total liabilities and equity | 3,868 | 4,324 | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | -52 | ' | ' |
Accounts receivable from affiliates | -328 | -473 | ' | ' |
Inventories, net | -7 | -4 | ' | ' |
Deferred income tax assets | 0 | 0 | ' | ' |
Interest receivable from parent | -11 | ' | ' | ' |
Notes and interest receivable from parent | ' | -593 | ' | ' |
Notes receivable from affiliates | ' | -147 | ' | ' |
Note receivable from subsidiary | -13 | -41 | ' | ' |
Other current assets | 0 | 0 | ' | ' |
Total current assets | -359 | -1,310 | ' | ' |
Fixed assets, net | 0 | 0 | ' | ' |
Amortizable intangible assets, net | 0 | 0 | ' | ' |
Deferred income tax assets | 2 | 1 | ' | ' |
Notes receivable from parent | -622 | ' | ' | ' |
Notes receivable from affiliates | -520 | -531 | ' | ' |
Investments in and advances to consolidated subsidiaries | -6,502 | -6,948 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -8,001 | -8,788 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable and accrued liabilities | 0 | -52 | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable to affiliates | -328 | -473 | ' | ' |
Interest payable to subsidiary | -11 | ' | ' | ' |
Notes and interest payable to subsidiaries | ' | -593 | ' | ' |
Notes payable to affiliates | ' | -147 | ' | ' |
Note payable to parent | -13 | -41 | ' | ' |
Total current liabilities | -352 | -1,306 | ' | ' |
Long-term debt, net of current portion | 0 | 0 | ' | ' |
Long-term debt due to subsidiaries | -622 | ' | ' | ' |
Long-term debt due to affiliate | -520 | -531 | ' | ' |
Pension and other postretirement benefit obligations | 0 | 0 | ' | ' |
Deferred income tax liabilities | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | -1,494 | -1,837 | ' | ' |
Total equity | -6,507 | -6,951 | ' | ' |
Total liabilities and equity | ($8,001) | ($8,788) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash (used in) provided by operating activities | $110 | $192 |
Cash flows from investing activities: | ' | ' |
Cash invested in fixed assets | -124 | -102 |
Disposition of assets | 4 | 31 |
Proceeds from insurance settlements | 4 | 0 |
Acquisition of Fibrek, net of cash acquired | 0 | -24 |
Decrease in restricted cash | 3 | 76 |
Increase in deposit requirements for letters of credit, net | 0 | -12 |
Advances (to) from affiliates | 0 | 0 |
Net cash (used in) provided by investing activities | -113 | -31 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 594 | 0 |
Purchases of treasury stock | 0 | -45 |
Premium paid on extinguishment of debt | -84 | 0 |
Dividend to noncontrolling interests | -1 | -3 |
Acquisition of noncontrolling interest | 0 | -27 |
Payments of debt | -497 | -112 |
Payments of financing and credit facility fees | -9 | 0 |
Contribution of capital from noncontrolling interest | 8 | ' |
Net cash provided by (used in) financing activities | 11 | -187 |
Net increase (decrease) in cash and cash equivalents | 8 | -26 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 263 | 369 |
End of period | 271 | 343 |
Parent [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ' | ' |
Cash invested in fixed assets | 0 | 0 |
Disposition of assets | 0 | 0 |
Proceeds from insurance settlements | 0 | ' |
Acquisition of Fibrek, net of cash acquired | ' | 0 |
Decrease in restricted cash | 0 | 0 |
Increase in deposit requirements for letters of credit, net | ' | 0 |
Advances (to) from affiliates | 10 | 47 |
Net cash (used in) provided by investing activities | -10 | 47 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 594 | ' |
Purchases of treasury stock | ' | -45 |
Premium paid on extinguishment of debt | -84 | ' |
Dividend to noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling interest | ' | 0 |
Payments of debt | -496 | 0 |
Payments of financing and credit facility fees | -9 | ' |
Contribution of capital from noncontrolling interest | 0 | ' |
Net cash provided by (used in) financing activities | 5 | -45 |
Net increase (decrease) in cash and cash equivalents | -5 | 2 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 5 | 0 |
End of period | 0 | 2 |
Guarantor Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash (used in) provided by operating activities | 37 | 126 |
Cash flows from investing activities: | ' | ' |
Cash invested in fixed assets | -45 | -29 |
Disposition of assets | 0 | 0 |
Proceeds from insurance settlements | 0 | ' |
Acquisition of Fibrek, net of cash acquired | ' | 0 |
Decrease in restricted cash | 0 | 0 |
Increase in deposit requirements for letters of credit, net | ' | 0 |
Advances (to) from affiliates | 10 | -31 |
Net cash (used in) provided by investing activities | -35 | -60 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 0 | ' |
Purchases of treasury stock | ' | 0 |
Premium paid on extinguishment of debt | 0 | ' |
Dividend to noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling interest | ' | 0 |
Payments of debt | 0 | 0 |
Payments of financing and credit facility fees | 0 | ' |
Contribution of capital from noncontrolling interest | 8 | ' |
Net cash provided by (used in) financing activities | 8 | 0 |
Net increase (decrease) in cash and cash equivalents | 10 | 66 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 171 | 128 |
End of period | 181 | 194 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash (used in) provided by operating activities | 73 | 66 |
Cash flows from investing activities: | ' | ' |
Cash invested in fixed assets | -79 | -73 |
Disposition of assets | 4 | 31 |
Proceeds from insurance settlements | 4 | ' |
Acquisition of Fibrek, net of cash acquired | ' | -24 |
Decrease in restricted cash | 3 | 76 |
Increase in deposit requirements for letters of credit, net | ' | -12 |
Advances (to) from affiliates | 0 | -16 |
Net cash (used in) provided by investing activities | -68 | -18 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 0 | ' |
Purchases of treasury stock | ' | 0 |
Premium paid on extinguishment of debt | 0 | ' |
Dividend to noncontrolling interests | -1 | -3 |
Acquisition of noncontrolling interest | ' | -27 |
Payments of debt | -1 | -112 |
Payments of financing and credit facility fees | 0 | ' |
Contribution of capital from noncontrolling interest | 0 | ' |
Net cash provided by (used in) financing activities | -2 | -142 |
Net increase (decrease) in cash and cash equivalents | 3 | -94 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 87 | 241 |
End of period | 90 | 147 |
Consolidating Adjustments [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ' | ' |
Cash invested in fixed assets | 0 | 0 |
Disposition of assets | 0 | 0 |
Proceeds from insurance settlements | 0 | ' |
Acquisition of Fibrek, net of cash acquired | ' | 0 |
Decrease in restricted cash | 0 | 0 |
Increase in deposit requirements for letters of credit, net | ' | 0 |
Advances (to) from affiliates | 0 | 0 |
Net cash (used in) provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ' | ' |
Issuance of long-term debt | 0 | ' |
Purchases of treasury stock | ' | 0 |
Premium paid on extinguishment of debt | 0 | ' |
Dividend to noncontrolling interests | 0 | 0 |
Acquisition of noncontrolling interest | ' | 0 |
Payments of debt | 0 | 0 |
Payments of financing and credit facility fees | 0 | ' |
Contribution of capital from noncontrolling interest | 0 | ' |
Net cash provided by (used in) financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents: | ' | ' |
Beginning of period | 0 | 0 |
End of period | $0 | $0 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Guarantor Subsidiaries [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Percentage of owned material U S Subsidiaries | 100.00% |
Non-Guarantor Subsidiaries [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Percentage of owned material U S Subsidiaries | 100.00% |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | Sep. 30, 2013 | 8-May-13 | Oct. 08, 2013 |
In Millions, unless otherwise specified | Senior Notes [Member] | Senior Notes [Member] | |
Senior Secured Notes Due 2018 [Member] | Senior Secured Notes Due 2018 [Member] | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Aggregate principal amount repurchased | ' | $496 | $5 |
Redemption price, percent of principal amount | ' | ' | 103.00% |
Carrying value of Jim-Gray hydroelectric assets and intangible assets | $90 | ' | ' |