Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | UFS | |
Entity Registrant Name | Domtar CORP | |
Entity Central Index Key | 1,381,531 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 62,693,709 |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 1,292 | $ 1,270 | $ 3,820 | $ 3,824 |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 1,012 | 969 | 3,055 | 3,032 |
Depreciation and amortization | 80 | 87 | 239 | 263 |
Selling, general and administrative | 118 | 107 | 337 | 314 |
Impairment of property, plant and equipment (NOTE 11) | 5 | 29 | ||
Closure and restructuring costs (NOTE 11) | 10 | 33 | ||
Other operating (income) loss, net (NOTE 6) | (7) | (6) | 4 | |
Operating expenses | 1,203 | 1,178 | 3,625 | 3,675 |
Operating income | 89 | 92 | 195 | 149 |
Interest expense, net | 16 | 17 | 50 | 49 |
Earnings before income taxes | 73 | 75 | 145 | 100 |
Income tax expense (NOTE 7) | 3 | 16 | 17 | 19 |
Net earnings | $ 70 | $ 59 | $ 128 | $ 81 |
Per common share (in dollars) (NOTE 4) | ||||
Basic | $ 1.12 | $ 0.94 | $ 2.04 | $ 1.29 |
Diluted | $ 1.11 | $ 0.94 | $ 2.04 | $ 1.29 |
Weighted average number of common shares outstanding (millions) | ||||
Basic | 62.7 | 62.6 | 62.6 | 62.6 |
Diluted | 62.9 | 62.7 | 62.8 | 62.7 |
Cash dividends per common share | $ 0.42 | $ 0.42 | $ 0.83 | $ 1.22 |
Net derivative gains (losses) on cash flow hedges: | ||||
Net gains (losses) arising during the period, net of tax of $(6) and $(8), respectively (2016 – $4 and $(14), respectively) | $ 9 | $ (6) | $ 11 | $ 23 |
Less: Reclassification adjustment for (gains) losses included in net earnings, net of tax of $2 and $4, respectively (2016 – $(2) and $(10), respectively) | (2) | 1 | (6) | 14 |
Foreign currency translation adjustments | 60 | 6 | 142 | 61 |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $(1) and $(3), respectively (2016 – nil and $(2), respectively) | 2 | 2 | 7 | 5 |
Other comprehensive income | 69 | 3 | 154 | 103 |
Comprehensive income | $ 139 | $ 62 | $ 282 | $ 184 |
Consolidated Statements of Ear3
Consolidated Statements of Earnings and Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net gains (losses) arising during the period, tax | $ (6) | $ 4 | $ (8) | $ (14) |
Reclassification adjustment for (gains) losses included in net earnings, tax | 2 | $ (2) | 4 | (10) |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | $ (1) | $ (3) | $ (2) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 143 | $ 125 |
Receivables, less allowances of $7 and $7 | 659 | 613 |
Inventories (NOTE 8) | 787 | 759 |
Prepaid expenses | 47 | 40 |
Income and other taxes receivable | 13 | 31 |
Total current assets | 1,649 | 1,568 |
Property, plant and equipment, net | 2,774 | 2,825 |
Goodwill (NOTE 9) | 578 | 550 |
Intangible assets, net (NOTE 10) | 632 | 608 |
Other assets | 151 | 129 |
Total assets | 5,784 | 5,680 |
Current liabilities | ||
Bank indebtedness | 12 | |
Trade and other payables | 687 | 656 |
Income and other taxes payable | 32 | 22 |
Long-term debt due within one year | 1 | 63 |
Total current liabilities | 720 | 753 |
Long-term debt | 1,164 | 1,218 |
Deferred income taxes and other | 681 | 675 |
Other liabilities and deferred credits | 333 | 358 |
Commitments and contingencies (NOTE 14) | ||
Shareholders' equity (NOTE 13) | ||
Common stock $0.01 par value; authorized 2,000,000,000 shares; issued: 65,001,104 and 65,001,104 shares | 1 | 1 |
Additional paid-in capital | 1,969 | 1,963 |
Retained earnings | 1,261 | 1,211 |
Accumulated other comprehensive loss | (345) | (499) |
Total shareholders' equity | 2,886 | 2,676 |
Total liabilities and shareholders' equity | $ 5,784 | $ 5,680 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 7 | $ 7 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 65,001,104 | 65,001,104 |
Treasury stock, par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 2,308,483 | 2,412,267 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) shares in Millions, $ in Millions | Total | Issued and Outstanding Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2016 | $ 2,676 | $ 1 | $ 1,963 | $ 1,211 | $ (499) |
Balance, Shares at Dec. 31, 2016 | 62.6 | ||||
Stock-based compensation, net of tax | 6 | 6 | |||
Stock-based compensation, shares | 0.1 | ||||
Net earnings | 128 | 128 | |||
Net derivative gains on cash flow hedges: | |||||
Net gains arising during the period, net of tax | 11 | 11 | |||
Less: Reclassification adjustments for gains included in net earnings, net of tax | (6) | (6) | |||
Foreign currency translation adjustments | 142 | 142 | |||
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | 7 | 7 | |||
Cash dividends declared | (78) | (78) | |||
Balance at Sep. 30, 2017 | $ 2,886 | $ 1 | $ 1,969 | $ 1,261 | $ (345) |
Balance, Shares at Sep. 30, 2017 | 62.7 |
Consolidated Statement of Shar7
Consolidated Statement of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||||
Net gains arising during the period, tax | $ (6) | $ 4 | $ (8) | $ (14) |
Reclassification adjustment for (gains) losses included in net earnings, tax | 2 | $ (2) | 4 | (10) |
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, tax | $ (1) | $ (3) | $ (2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net earnings | $ 128 | $ 81 |
Adjustments to reconcile net earnings to cash flows from operating activities | ||
Depreciation and amortization | 239 | 263 |
Deferred income taxes and tax uncertainties | (19) | 6 |
Impairment of property, plant and equipment | 29 | |
Net gains on disposals of property, plant and equipment | (4) | |
Stock-based compensation expense | 6 | 5 |
Other | 1 | (3) |
Changes in assets and liabilities, excluding the effect of acquisition of business | ||
Receivables | (28) | 19 |
Inventories | (10) | 6 |
Prepaid expenses | (2) | (5) |
Trade and other payables | 11 | (53) |
Income and other taxes | 30 | (18) |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (33) | (16) |
Other assets and other liabilities | 5 | (4) |
Cash flows from operating activities | 324 | 310 |
Investing activities | ||
Additions to property, plant and equipment | (111) | (302) |
Proceeds from disposals of property, plant and equipment | 8 | |
Acquisition of business, net of cash acquired | (1) | |
Other | 1 | |
Cash flows used for investing activities | (103) | (302) |
Financing activities | ||
Dividend payments | (78) | (76) |
Stock repurchase | (10) | |
Net change in bank indebtedness | (12) | 1 |
Change in revolving credit facility | (50) | 60 |
Proceeds from receivables securitization facility | 25 | 140 |
Repayments of receivables securitization facility | (35) | (40) |
Repayments of long-term debt | (63) | (40) |
Other | 1 | (3) |
Cash flows (used for) provided from financing activities | (212) | 32 |
Net increase in cash and cash equivalents | 9 | 40 |
Impact of foreign exchange on cash | 9 | 2 |
Cash and cash equivalents at beginning of period | 125 | 126 |
Cash and cash equivalents at end of period | 143 | 168 |
Supplemental cash flow information | ||
Interest | 49 | 50 |
Income taxes | $ 18 | $ 37 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1. _________________ BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of Management, include all adjustments that are necessary for the fair statement of Domtar Corporation’s (“the Company”) financial position, results of operations, and cash flows for the interim periods presented. Results for the first nine months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Domtar Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as filed with the Securities and Exchange Commission. The December 31, 2016 Consolidated Balance Sheet, presented for comparative purposes in this interim report, was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2017 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 2. _________________ RECENT ACCOUNTING PRONOUNCEMENTS FUTURE ACCOUNTING CHANGES REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early adoption is permitted only for annual and interim periods beginning after December 15, 2016. Entities are permitted to adopt the new revenue standard by restating all prior periods under the full retrospective approach following ASC 250 “ Accounting Changes and Error Corrections” The Company is currently finalizing its assessment of the impact that the guidance will have on the consolidated financial statements and related disclosures. The Company will adopt the new revenue standards in its first quarter of 2018 utilizing the full retrospective transition method. The Company has identified similar performance obligations under the new guidance as compared with deliverables previously identified. As a result, the Company expects the timing and amount of its revenue to remain substantially the same. The Company does not expect this new guidance to have a material impact on the consolidated financial statements aside from the additional required disclosures. FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, The amendments in this update are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. To adopt the amendments, companies will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. Early adoption is permitted. The Company does not expect this new guidance to have a material impact on the consolidated financial statements. LEASES In February 2016 Leases, As a lessee, Domtar’s various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of earnings as expense is incurred. Upon adoption of the new guidance, the Company will be required to record substantially all leases on the Consolidated Balance Sheets as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the Consolidated Statements of Earnings and Comprehensive Income could change based on the classification of leases as either operating or financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will adopt the ASU on January 1, 2019 using the modified retrospective approach required by the guidance. The Company has begun its impact assessment, including taking an inventory of its outstanding leases and analyzing all contracts that contain a lease. While the Company’s evaluation of this guidance is in the early stages, the Company currently expects the adoption of this guidance to have a material impact on its consolidated balance sheet. DERIVATIVES AND HEDGING In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. CLASSIFICATION OF CASH FLOWS In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. GOODWILL IMPAIRMENT In January 2017, the FASB issued ASU 2017-04, “ Simplifying the Test for Goodwill Impairment,” The Company expects to adopt this new guidance concurrently with its 2017 annual goodwill impairment test. RETIREMENT BENEFITS In March 2017, the FASB issued ASU 2017-07, “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, The Company will adopt the ASU on January 1, 2018 using a retrospective approach for the presentation of the service cost component and the other components of net periodic benefit costs in the Consolidated Statement of Earnings and prospectively for the capitalization of the service cost component of net periodic benefit costs in assets. The guidance includes a practical expedient that permits an entity to estimate amounts for comparative periods using the information previously disclosed in its pension plans and other post-retirement benefit plans footnote. While the Company is still evaluating the impact of adopting this new guidance, it does not expect this new guidance to have a material impact on the consolidated earnings. DERIVATIVES AND HEDGING In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Entities are permitted to early adopt the new guidance in any interim or annual period after issuance of the ASU. If an entity early adopts the updated guidance in an interim period, any transition adjustments should be reflected as of the beginning of the fiscal year. While the Company is still evaluating the impact of adopting this new guidance, it does not expect this new guidance to have a material impact on the consolidated financial statements. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2017 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) NOTE 3. _________________ DERIVATIVES AND HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENT HEDGING PROGRAMS The Company is exposed to market risk, such as changes in currency exchange rates, commodity prices, and interest rates. To the extent the Company decides to manage the volatility related to these exposures, the Company may enter into various financial derivatives that are accounted for under the derivatives and hedging guidance. These transactions are governed by the Company's hedging policies which provide direction on acceptable hedging activities, including instrument type and acceptable counterparty exposure. Upon inception, the Company formally documents the relationship between hedging instruments and hedged items. At inception and quarterly thereafter, the Company formally assesses whether the financial instruments used in hedging transactions are effective at offsetting changes in either the cash flow or the fair value of the underlying exposures. The ineffective portion of the qualifying instrument is immediately recognized to earnings. The amount of ineffectiveness recognized was immaterial for all periods presented. The Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivables from its customers. In order to reduce this risk, the Company reviews new customers’ credit history before granting credit and conducts regular reviews of existing customers’ credit performance. As of September 30, 2017, one of Domtar’s Pulp and Paper segment customers located in the U.S. represented 12% or $82 million (2016 – 12% or $74 million) of the Company’s receivables. The Company is exposed to credit risk in the event of non-performance by counterparties to its financial instruments. The Company attempts to minimize this exposure by entering into contracts with counterparties that are believed to be of high credit quality. Collateral or other security to support financial instruments subject to credit risk is usually not obtained. The credit standing of counterparties is regularly monitored. INTEREST RATE RISK The Company is exposed to interest rate risk arising from fluctuations in interest rates on its cash and cash equivalents, bank indebtedness, revolving credit facility and long-term debt. The Company’s objective in managing exposure to interest rate changes is to minimize the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs. The Company may manage this interest rate exposure through the use of derivative instruments such as interest rate swap contracts, whereby it agrees to exchange the difference between fixed and variable interest amounts calculated by reference to an agreed upon notional principal amount. COST RISK Cash flow hedges: The Company is exposed to price volatility for raw materials and energy used in its manufacturing process. The Company manages its exposure to cost risk primarily through the use of supplier contracts. The Company purchases natural gas at the prevailing market price at the time of delivery. To reduce the impact on cash flow and earnings due to pricing volatility, the Company may utilize derivatives to fix the price of forecasted natural gas purchases. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Cost of sales in the period during which the hedged transaction affects earnings. Current contracts are used to hedge a portion of forecasted purchases over the next 57 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2017 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural Gas 2017 (1) 2,310,000 $ 7 33% 2018 12,695,000 $ 38 49% 2019 11,430,000 $ 34 44% 2020 8,880,000 $ 27 34% 2021 3,920,000 $ 12 15% 2022 2,070,000 $ 6 8% (1) Represents the remaining three months of 2017 (2) MMBTU: Millions of British thermal units The natural gas derivative contracts were fully effective as of September 30, 2017. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2017 resulting from hedge ineffectiveness (three and nine months ended September 30, 2016 – nil). FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States, Canada and Europe. As a result, it is exposed to movements in foreign currency exchange rates in Canada and Europe. Moreover, certain assets and liabilities are denominated in currencies other than the U.S. dollar and are exposed to foreign currency movements. Accordingly, the Company’s earnings are affected by increases or decreases in the value of the Canadian dollar and the European currencies. The Company’s European subsidiaries are also exposed to movements in foreign currency exchange rates on transactions denominated in a currency other than their Euro functional currency. The Company’s risk management policy allows it to hedge a significant portion of its exposure to fluctuations in foreign currency exchange rates for periods up to three years. The Company may use derivative financial instruments (currency options and foreign exchange forward contracts) to mitigate its exposure to fluctuations in foreign currency exchange rates. Derivatives are used to hedge forecasted purchases in Canadian dollars by the Company’s Canadian subsidiary over the next 21 months and to hedge a portion of forecasted sales by its U.S. subsidiaries in British pounds over the next 3 months. Derivatives are also currently used to hedge a portion of forecasted sales in British pounds and Norwegian krone and a portion of forecasted purchases in U.S. dollars and Swedish krona by its European subsidiaries over the next 12 months. Such derivatives are designated as cash flow hedges. The changes in the fair value on qualifying instruments are included in Accumulated other comprehensive loss to the extent effective, and reclassified into Sales or Cost of sales in the period during which the hedged transaction affects earnings. The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of September 30, 2017 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate 2017 (1) CDN/USD Pulp and Paper 128 CDN 66% 1 USD = 1.3316 1 USD = 1.3817 USD/Euro Personal Care 16 USD 74% 1 Euro = 1.1414 1 Euro = 1.1414 2018 CDN/USD Pulp and Paper 424 CDN 55% 1 USD = 1.2922 1 USD = 1.3455 USD/Euro Personal Care 49 USD 56% 1 Euro = 1.1462 1 Euro = 1.1696 2019 CDN/USD Pulp and Paper 109 CDN 14% 1 USD = 1.2875 1 USD = 1.3451 (1) Represents the remaining three months of 2017 The foreign exchange derivative contracts were fully effective as of September 30, 2017. There were no amounts reflected in the Consolidated Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2017 resulting from hedge ineffectiveness (three and nine months ended September 30, 2016 – nil). FAIR VALUE MEASUREMENT The accounting standards for fair value measurements and disclosures, establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) below) at September 30, 2017 and December 31, 2016, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: September 30, 2017 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 22 — 22 — (a) Prepaid expenses Natural gas swap contracts 2 — 2 — (a) Prepaid expenses Currency derivatives 7 — 7 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 11 — 11 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 16 16 — — Other liabilities and deferred credits Long-term debt 1,241 — 1,241 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $2 million at September 30, 2017, of which a gain of $1 million will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2017. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $23 million at September 30, 2017, of which a gain of $17 million will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2017. Fair Value of financial instruments at: December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 10 — 10 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 6 — 6 — (a) Other liabilities and deferred credits Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 21 — 21 — Other Instruments: Stock-based compensation - liability awards 2 2 — — Trade and other payables Stock-based compensation - liability awards 17 17 — — Other liabilities and deferred credits Long-term debt 1,313 — 1,313 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at September 30, 2017 and December 31, 2016. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,165 million and $1,281 million at September 30, 2017 and December 31, 2016, respectively. Due to their short-term maturity, the carrying amounts of cash and cash equivalents, receivables, bank indebtedness, trade and other payables and income and other taxes approximate their fair values. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 4. _________________ EARNINGS PER COMMON SHARE The following table provides the reconciliation between basic and diluted earnings per common share: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Net earnings $ 70 $ 59 $ 128 $ 81 Weighted average number of common shares outstanding (millions) 62.7 62.6 62.6 62.6 Effect of dilutive securities (millions) 0.2 0.1 0.2 0.1 Weighted average number of diluted common shares outstanding (millions) 62.9 62.7 62.8 62.7 Basic net earnings per common share (in dollars) $ 1.12 $ 0.94 $ 2.04 $ 1.29 Diluted $ 1.11 $ 0.94 $ 2.04 $ 1.29 The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Options 312,893 412,372 419,161 412,372 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 5. _________________ PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the three and nine months ended September 30, 2017, the pension expense was $9 million and $28 million, respectively (2016 – $11 million and $29 million, respectively). DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS The Company sponsors both contributory and non-contributory U.S. and non-U.S. defined benefit pension plans. Non-unionized employees in Canada joining the Company after January 1, 1998 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Unionized and non-union hourly employees in the U.S. that are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2017 September 30, 2017 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 8 1 23 2 Interest expense 13 — 38 2 Expected return on plan assets (20 ) — (60 ) — Amortization of net actuarial loss 2 — 6 — Amortization of prior year service costs 1 — 4 — Net periodic benefit cost 4 1 11 4 Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2016 September 30, 2016 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 1 23 2 Interest expense 12 — 37 2 Expected return on plan assets (19 ) — (58 ) — Amortization of net actuarial loss 1 — 3 — Amortization of prior year service costs 2 — 4 — Net periodic benefit cost 3 1 9 4 For the three and nine months ended September 30, 2017, the Company contributed $38 million and $44 million, respectively (2016 – $18 million and $27 million, respectively) to the pension plans and nil and $2 million, respectively (2016 – $1 million and $3 million, respectively) to the other post-retirement benefit plans. |
Other Operating (Income) Loss,
Other Operating (Income) Loss, Net | 9 Months Ended |
Sep. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Loss, Net | NOTE 6. _________________ OTHER OPERATING (INCOME) LOSS, NET Other operating (income) loss, net is an aggregate of both recurring and occasional loss or income items and, as a result, can fluctuate from period to period. The Company’s other operating (income) loss, net includes the following: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 $ $ $ $ Gain on sale of property, plant and equipment (4 ) — (4 ) — Reversal of contingent consideration (2 ) — (2 ) — Bad debt expense — — 1 — Environmental provision — — 2 — Litigation settlement — — — 2 Foreign exchange loss — 1 1 5 Other (1 ) (1 ) (4 ) (3 ) Other operating (income) loss, net (7 ) — (6 ) 4 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7. _________________ INCOME TAXES In the third quarter of 2017, the Company’s income tax expense was $3 million, consisting of a current income tax expense of $10 million and a deferred income tax benefit of $7 million. This compares to an income tax expense of $16 million in the third quarter of 2016, consisting of a current income tax expense of $5 million and a deferred income tax expense of $11 million. The Company made income tax payments, net of refunds, of $3 million during the third quarter of 2017. The effective tax rate was 4% compared with an effective tax rate of 21% in the third quarter of 2016. The effective tax rate for the third quarter of 2017 was favorably impacted by the recognition of previously unrecognized tax benefits due to the expiration of certain statutes of limitations. The effective tax rates for both the third quarter of 2017 and third quarter of 2016 were impacted by the finalization of certain estimates in connection with the filing of the Company’s 2016 and 2015 income tax returns, respectively. In the first nine months of 2017, the Company’s income tax expense was $17 million, consisting of a current income tax expense of $36 million and a deferred income tax benefit of $19 million. This compares to an income tax expense of $19 million in the first nine months of 2016, consisting of a current income tax expense of $13 million and a deferred income tax expense of $6 million. The Company made income tax payments, net of refunds, of $18 million during the first nine months of 2017. The effective tax rate was 12% compared to an effective tax rate of 19% in the first nine months of 2016. The effective tax rate for the first nine months of 2017 was favorably impacted by the recognition of previously unrecognized tax benefits, due to the expiration of certain statutes of limitations as well as by various enacted law changes in several U.S. states. The effective tax rates for both the first nine months of 2017 and 2016 were impacted by the finalization of certain estimates in connection with the filing of the Company’s 2016 and 2015 income tax returns, respectively. Additionally, the effective tax rate for the first nine months of 2016 was impacted by the approval of a state tax credit in the U.S. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 8. _________________ INVENTORIES The following table presents the components of inventories: September 30, December 31, 2017 2016 $ $ Work in process and finished goods 429 413 Raw materials 133 132 Operating and maintenance supplies 225 214 787 759 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 9. _________________ GOODWILL Changes in the carrying value of goodwill are as follows: September 30, 2017 $ Balance at December 31, 2016 550 Effect of foreign currency exchange rate change 28 Balance at end of period 578 The goodwill at September 30, 2017 is entirely related to the Personal Care reporting segment. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 10. _________________ INTANGIBLE ASSETS The following table presents the components of intangible assets: September 30, 2017 December 31, 2016 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 389 (75 ) 314 369 (60 ) 309 Technology 7 – 20 8 (3 ) 5 8 (3 ) 5 Non-Compete 9 1 (1 ) — 1 — 1 License rights 12 29 (11 ) 18 28 (8 ) 20 430 (91 ) 339 409 (72 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 243 — 243 225 — 225 License rights 6 — 6 6 — 6 Catalog rights 40 — 40 36 — 36 Total 723 (91 ) 632 680 (72 ) 608 Amortization expense related to intangible assets for the three and nine months ended September 30, 2017 was $4 million and $14 million, respectively (2016 – $5 million and $14 million, respectively). Amortization expense for the next five years related to intangible assets is expected to be as follows: 2017 2018 2019 2020 2021 $ $ $ $ $ Amortization expense related to intangible assets 21 (1) 21 21 21 21 (1) |
Closure and Restructuring Costs
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment | NOTE 11. _________________ CLOSURE AND RESTRUCTURING COSTS AND LIABILITY AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT Plymouth, North Carolina mill On September 23, 2016, the Company announced a plan to optimize fluff pulp manufacturing at the Plymouth, North Carolina mill. The restructuring, which is expected to be completed in 2018, includes the permanent closure of a pulp dryer and idling of assets, in addition to a workforce reduction of approximately 100 positions. The streamlining process will right-size the mill to an annualized production target of approximately 380,000 metric tons of fluff pulp. The Company recorded $5 million of severance and termination costs under Closure and restructuring costs during the third quarter of 2016. Ashdown, Arkansas mill On December 10, 2014, the Company announced a project to convert a paper machine at its Ashdown, Arkansas mill to a high quality fluff pulp line used in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products. The Company also invested in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions. The conversion work commenced during the second quarter of 2016 and the production of bale softwood pulp began in the third quarter of 2016. The fluff pulp line will allow for the production of up to 516,000 metric tons of fluff pulp per year once the machine is in full operation. The project resulted in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity on March 31, 2016. The Company recorded $5 million and $29 million for the three and nine months ended September 30, 2016, respectively, of accelerated depreciation under Impairment of property, plant and equipment on the Consolidated Statement of Earnings and Comprehensive Income. The Company also recorded $5 million and $26 million of costs related to the fluff pulp conversion outage under Closure and restructuring costs for the three and nine months ended September 30, 2016. During the first quarter of 2016, the Company recorded $1 million of severance and termination costs under Closure and restructuring costs. Other costs For the three and nine months ended September 30, 2016, other costs related to previous and ongoing closures include nil and $1 million, respectively, of severance and termination costs related to the Pulp and Paper reporting segment. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 12. _________________ CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The following table presents the changes in Accumulated other comprehensive loss by component ( 1) Net (losses) gains cash Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2015 (30 ) (190 ) (10 ) (271 ) (501 ) Natural gas swap contracts 4 N/A N/A N/A 4 Net investment hedge (1 ) N/A N/A N/A (1 ) Currency options 8 N/A N/A N/A 8 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A (38 ) (1 ) N/A (39 ) Foreign currency items N/A N/A N/A (7 ) (7 ) Other comprehensive income (loss) before reclassifications 27 (38 ) (1 ) (7 ) (19 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 — — 21 Net current period other comprehensive income (loss) 41 (31 ) (1 ) (7 ) 2 Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) Natural gas swap contracts (3 ) N/A N/A N/A (3 ) Currency options 13 N/A N/A N/A 13 Foreign exchange forward contracts 1 N/A N/A N/A 1 Foreign currency items N/A N/A N/A 142 142 Other comprehensive income before reclassifications 11 — — 142 153 Amounts reclassified from Accumulated other comprehensive loss (6 ) 7 — — 1 Net current period other comprehensive income 5 7 — 142 154 Balance at September 30, 2017 16 (214 ) (11 ) (136 ) (345 ) (1) All amounts are after tax. Amounts in parenthesis indicate losses. (2) The accrued benefit obligation is actuarially determined on an annual basis as of December 31. The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss (1) For the three months ended September 30, 2017 September 30, 2016 $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts 1 2 (2) Currency options and forwards (5 ) 1 (2) Total before tax (4 ) 3 Tax benefit (expense) 2 (2 ) Net of tax (2 ) 1 Amortization of defined benefit pension items Amortization of net actuarial loss and prior year service cost 3 2 (3) Tax expense (1 ) — Net of tax 2 2 Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss (1) For the nine months ended September 30, 2017 September 30, 2016 $ $ Net derivative (losses) gains on cash flow hedges Natural gas swap contracts — 12 (2) Currency options and forwards (10 ) 12 (2) Total before tax (10 ) 24 Tax benefit (expense) 4 (10 ) Net of tax (6 ) 14 Amortization of defined benefit pension items Amortization of net actuarial loss and prior year service cost 10 7 (3) Tax expense (3 ) (2 ) Net of tax 7 5 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income. (3) These amounts are included in the computation of net periodic benefit cost (see Note 5 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 13. _________________ SHAREHOLDERS’ EQUITY On February 21, 2017, May 3, 2017, and August 1, 2017, the Company’s Board of Directors approved a quarterly dividend of $0.42 per share, respectively, to be paid to holders of the Company’s common stock. Dividends of $26 million were paid on April 17, 2017, July 17, 2017 and October 16, 2017, respectively, to shareholders of record on April 3, 2017, July 3, 2017 and October 2, 2017, respectively. On October 31, 2017, the Company’s Board of Directors approved a quarterly dividend of $0.42 per share to be paid to holders of the Company’s common stock. This dividend is to be paid on January 15, 2018, to shareholders of record on January 2, 2018. STOCK REPURCHASE PROGRAM The Company’s Board of Directors has authorized a stock repurchase program (the “Program”) of up to $1.3 billion. Under the Program, the Company is authorized to repurchase, from time to time, shares of its outstanding common stock on the open market or in privately negotiated transactions. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The Program may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common stock under the Program. The Program has no set expiration date. The Company repurchases its common stock in part to reduce the dilutive effects of stock options and awards, and to improve shareholders’ returns. The Company makes open market purchases of its common stock using general corporate funds. Additionally, the Company may enter into structured stock repurchase agreements with large financial institutions using general corporate funds in order to lower the average cost to acquire shares. The agreements would require the Company to make up-front payments to the counterparty financial institutions, which would result in either the receipt of stock at the beginning of the term of the agreements followed by a share adjustment at the maturity of the agreements, or the receipt of either stock or cash at the maturity of the agreements, depending upon the price of the stock. During the first nine months of 2017, there were no shares repurchased under the Program. During the first nine months of 2016, the Company repurchased 304,915 shares at an average price of $32.21 for a total cost of $10 million. Since the inception of the Program, the Company has repurchased 24,853,827 shares at an average price of $39.33 for a total cost of $977 million. All shares repurchased are recorded as Treasury stock on the Consolidated Balance Sheets under the par value method at $0.01 per share. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. _________________ COMMITMENTS AND CONTINGENCIES ENVIRONMENT The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: September 30, 2017 $ Balance at beginning of year 50 Additions 3 Environmental spending (6 ) Effect of foreign currency exchange rate change 3 Balance at end of period 50 The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. On February 16, 2010, the government of British Columbia issued a Remediation Order to Seaspan International Ltd. (“Seaspan”) and the Company, in order to define and implement a remediation plan to address soil, sediment and groundwater issues. Construction began in January 2017 and is expected to be completed in 2019. The Company previously recorded an environmental reserve to address its estimated exposure. The possible cost in excess of the reserve is not considered to be material for this matter. The U.S. Environmental Protection Agency (“EPA”) and/or various state agencies have notified the Company that it may be a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as “Superfund,” and similar state laws with respect to other hazardous waste sites as to which no proceedings have been instituted against the Company. The Company continues to take remedial action under its Care and Control Program at its former wood preserving sites, and at a number of operating sites, due to possible soil, sediment or groundwater contamination. Climate change regulation Various national and local laws and regulations have been established or are emerging in jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. The Company does not expect to be disproportionately affected by these measures compared with other pulp and paper producers located in these jurisdictions. The United States EPA Clean Power Plan regulation is being litigated and has been stayed. EPA is also proposing to repeal the Clean Power Plan in accordance with President Trump’s Executive Order issued on March 28, 2017. The EPA has filed a motion with the D.C. Circuit to hold the case in abeyance while it reconsiders the rule, which the D.C. Circuit granted in part to allow time for additional briefing on how and whether the litigation should proceed. Regardless of the outcome for the Clean Power Plan, the Company does not expect to be disproportionately affected compared with other pulp and paper producers located in the states where the Company operates. The Government of Canada is reviewing national policies to further reduce greenhouse gases (“GHG”) and has announced its intent to impose a cost on carbon emissions. The Company does not expect its facilities to be disproportionately affected by these measures compared with other pulp and paper producers in Canada. The provinces of Quebec and Ontario have GHG cap-and-trade systems with reduction targets. British Columbia has a carbon tax that applies to the purchase of fossil fuels within the province. The Company does not expect to be disproportionately affected compared to the other pulp and paper producers located in these provinces. CONTINGENCIES In the normal course of operations, the Company becomes involved in various legal actions mostly related to contract disputes, patent infringements, environmental and product warranty claims, and labor issues. While the final outcome with respect to actions outstanding or pending at September 30, 2017 cannot be predicted with certainty, it is management’s opinion that their resolution will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. Spanish Competition Investigation On October 15, 2015, the Competition Directorate of Spain’s National Commission of Markets and Competition (“CNMC”) filed a Statement of Objections against a number of industry participants alleging the existence of a series of agreements between manufacturers, distributors and pharmacists to fix prices and to allocate margins for heavy adult incontinence products within the pharmacy channel On January 4, 2016, the Competition Directorate issued a proposed decision confirming the allegations of the Statement of Objections. The proposed decision recommended the imposition of fines on the parties without recommending the amount of any fines. The Company recorded a €0.2 million ($0.2 million) provision in the fourth quarter of 2015 in Other operating (income) loss, net. On May 26, 2016, the CNMC rendered its final decision, which declared that a number of manufacturers of adult heavy incontinence products, the sector association and certain individuals participated in price fixing during the period from December 1996 through January 2014. Indas and one of its subsidiaries were fined a total of €13.5 million ($14.9 million) for their participation. A provision was recorded in the second quarter of 2016 in the amount of €13.3 million ($14.7 million) in Other operating (income) loss, net. The sellers of Indas made representations and warranties to the Company in the purchase agreement regarding, among other things, Indas’ and its subsidiary’s compliance with competition laws. The liability retained by the sellers was backed by a retained purchase price of €3 million ($3.3 million) and bank guarantees of €9 million ($9.9 million). On June 27, 2016, in light of the CNMC decision, the sellers, in terms of their indemnity obligations, agreed to the appropriation by the Company of the retained purchase price and the release of the bank guarantees. Accordingly, a recovery of €12 million ($13.2 million) was recorded in the second quarter of 2016 and included in Other operating (income) loss, net. In July 2016, the fines were paid and Indas and two of its affiliates named in the final decision appealed the decision to the Spanish courts. The Company purchased limited insurance coverage with respect to the purchase agreement, and is seeking to recover the remaining €1.5 million ($1.7 million) under the insurance policy. Any recovery from the insurers would be recorded in the period when the proceeds are received. INDEMNIFICATIONS In the normal course of business, the Company offers indemnifications relating to the sale of its businesses and real estate. In general, these indemnifications may relate to claims from past business operations, the failure to abide by covenants and the breach of representations and warranties included in the sales agreements. Typically, such representations and warranties relate to taxation, environmental, product and employee matters. The terms of these indemnification agreements are generally for an unlimited period of time. At September 30, 2017, the Company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provision has been recorded. These indemnifications have not yielded a significant expense in the past. Pension Plans The Company has indemnified and held harmless the trustees of its pension funds, and the respective officers, directors, employees and agents of such trustees, from any and all costs and expenses arising out of the performance of their obligations under the relevant trust agreements, including in respect of their reliance on authorized instructions from the Company or for failing to act in the absence of authorized instructions. These indemnifications survive the termination of such agreements. At September 30, 2017, the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. |
Segment Disclosures
Segment Disclosures | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 15. _________________ SEGMENT DISCLOSURES The Company’s two reportable segments described below also represent its two operating segments. Each reportable segment offers different products and services and requires different manufacturing processes, technology and marketing strategies. The following summary briefly describes the operations included in each of the Company’s reportable segments: • Pulp and Paper – consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. • Personal Care – consists of the design, manufacturing, marketing and distribution of absorbent hygiene products. An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, SEGMENT DATA 2017 2016 2017 2016 $ $ $ $ Sales by segment Pulp and Paper 1,054 1,054 3,126 3,193 Personal Care 253 231 743 675 Total for reportable segments 1,307 1,285 3,869 3,868 Intersegment sales (15 ) (15 ) (49 ) (44 ) Consolidated sales 1,292 1,270 3,820 3,824 Sales by product group Communication papers 597 638 1,798 1,952 Specialty and packaging papers 167 172 486 518 Market pulp 275 229 793 679 Absorbent hygiene products 253 231 743 675 Consolidated sales 1,292 1,270 3,820 3,824 Depreciation and amortization of property, plant and equipment Pulp and Paper 63 71 190 216 Personal Care 17 16 49 47 Total for reportable segments 80 87 239 263 Impairment of property, plant and equipment - Pulp and Paper — 5 — 29 Consolidated depreciation and amortization and impairment of property, plant and equipment 80 92 239 292 Operating income (loss) Pulp and Paper 93 89 192 143 Personal Care 8 15 37 44 Corporate (12 ) (12 ) (34 ) (38 ) Consolidated operating income 89 92 195 149 Interest expense, net 16 17 50 49 Earnings before income taxes 73 75 145 100 Income tax expense 3 16 17 19 Net earnings 70 59 128 81 |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | NOTE 16. _________________ SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the Company’s issuance of debt securities that are fully and unconditionally guaranteed by Domtar Paper Company, LLC, a 100% owned subsidiary of the Company, Domtar Industries LLC (and subsidiaries, excluding Domtar Funding LLC), Domtar A.W. LLC, Attends Healthcare Products Inc., EAM Corporation, Associated Hygienic Products LLC and Home Delivery Incontinent Supplies Co., all 100% owned subsidiaries of the Company (“Guarantor Subsidiaries”), on a joint and several basis. Pursuant to the amendment and restatement of the 2016 Credit Agreement on August 18, 2016, the Guaranteed Debt will not be guaranteed by certain of Domtar’s 100% owned subsidiaries; including Domtar Delaware Holdings Inc. and its foreign subsidiaries, including Attends Healthcare Limited, Domtar Inc. and Laboratorios Indas. S.A.U.. Also excluded are Ariva Distribution Inc., Domtar Delaware Investments Inc., Domtar Delaware Holdings LLC, Domtar AI Inc., Domtar Personal Care Absorbent Hygiene Inc., Domtar Wisconsin Dam Corp. and Palmetto Enterprises LLC, (collectively the “Non-Guarantor Subsidiaries”). The subsidiary’s guarantee may be released in certain customary circumstances, such as if the subsidiary is sold or sells all of its assets, if the subsidiary’s guarantee of the Credit Agreement is terminated or released and if the requirements for legal defeasance to discharge the indenture have been satisfied. The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at September 30, 2017 and December 31, 2016, the Statements of Earnings and Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 and the Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 for Domtar Corporation (the “Parent”), and on a combined basis for the Guarantor Subsidiaries and, on a combined basis, the Non-Guarantor Subsidiaries. The supplemental condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-Guarantor Subsidiaries, using the equity method. For the three months ended September 30, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,059 522 (289 ) 1,292 Operating expenses Cost of sales, excluding depreciation and amortization — 901 400 (289 ) 1,012 Depreciation and amortization — 58 22 — 80 Selling, general and administrative 4 37 77 — 118 Other operating income, net — — (7 ) — (7 ) 4 996 492 (289 ) 1,203 Operating (loss) income (4 ) 63 30 — 89 Interest expense (income), net 15 21 (20 ) — 16 (Loss) earnings before income taxes (19 ) 42 50 — 73 Income tax (benefit) expense (4 ) (4 ) 11 — 3 Share in earnings of equity accounted investees 85 39 — (124 ) — Net earnings 70 85 39 (124 ) 70 Other comprehensive income 69 69 61 (130 ) 69 Comprehensive income 139 154 100 (254 ) 139 For the nine months ended September 30, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,156 1,537 (873 ) 3,820 Operating expenses Cost of sales, excluding depreciation and amortization — 2,749 1,179 (873 ) 3,055 Depreciation and amortization — 175 64 — 239 Selling, general and administrative 8 101 228 — 337 Other operating income, net — (2 ) (4 ) — (6 ) 8 3,023 1,467 (873 ) 3,625 Operating (loss) income (8 ) 133 70 — 195 Interest expense (income), net 48 63 (61 ) — 50 (Loss) earnings before income taxes (56 ) 70 131 — 145 Income tax (benefit) expense (13 ) 1 29 — 17 Share in earnings of equity accounted investees 171 102 — (273 ) — Net earnings 128 171 102 (273 ) 128 Other comprehensive income 154 163 146 (309 ) 154 Comprehensive income 282 334 248 (582 ) 282 For the three months ended September 30, 2016 Non- CONDENSED CONSOLIDATING STATEMENT OF Guarantor Guarantor Consolidating EARNINGS AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,044 516 (290 ) 1,270 Operating expenses Cost of sales, excluding depreciation and amortization — 879 380 (290 ) 969 Depreciation and amortization — 65 22 — 87 Selling, general and administrative 3 28 76 — 107 Impairment of property, plant and equipment — 5 — — 5 Closure and restructuring costs — 10 — — 10 Other operating (income) loss, net — (1 ) 1 — — 3 986 479 (290 ) 1,178 Operating (loss) income (3 ) 58 37 — 92 Interest expense (income), net 16 14 (13 ) — 17 (Loss) earnings before income taxes (19 ) 44 50 — 75 Income tax (benefit) expense (4 ) (3 ) 23 — 16 Share in earnings of equity accounted investees 74 27 — (101 ) — Net earnings 59 74 27 (101 ) 59 Other comprehensive income 3 7 7 (14 ) 3 Comprehensive income 62 81 34 (115 ) 62 For the nine months ended September 30, 2016 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,150 1,535 (861 ) 3,824 Operating expenses Cost of sales, excluding depreciation and amortization — 2,725 1,168 (861 ) 3,032 Depreciation and amortization — 193 70 — 263 Selling, general and administrative 13 80 221 — 314 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 33 — — 33 Other operating loss (income), net 1 (2 ) 5 — 4 14 3,058 1,464 (861 ) 3,675 Operating (loss) income (14 ) 92 71 — 149 Interest expense (income), net 48 30 (29 ) — 49 (Loss) earnings before income taxes (62 ) 62 100 — 100 Income tax (benefit) expense (14 ) 1 32 — 19 Share in earnings of equity accounted investees 129 68 — (197 ) — Net earnings 81 129 68 (197 ) 81 Other comprehensive income 103 97 63 (160 ) 103 Comprehensive income 184 226 131 (357 ) 184 September 30, 2017 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 10 3 130 — 143 Receivables — 335 324 — 659 Inventories — 536 251 — 787 Prepaid expenses 11 27 9 — 47 Income and other taxes receivable — 3 14 (4 ) 13 Intercompany accounts 292 367 85 (744 ) — Total current assets 313 1,271 813 (748 ) 1,649 Property, plant and equipment, net — 1,888 886 — 2,774 Goodwill — 313 265 — 578 Intangible assets, net — 270 362 — 632 Investments in affiliates 4,310 2,898 — (7,208 ) — Intercompany long-term advances 6 81 1,466 (1,553 ) — Other assets 36 28 134 (47 ) 151 Total assets 4,665 6,749 3,926 (9,556 ) 5,784 Liabilities and shareholders' equity Current liabilities Trade and other payables 47 405 235 — 687 Intercompany accounts 299 97 348 (744 ) — Income and other taxes payable 11 — 25 (4 ) 32 Long-term debt due within one year — — 1 — 1 Total current liabilities 357 502 609 (748 ) 720 Long-term debt 792 299 73 — 1,164 Intercompany long-term loans 610 942 1 (1,553 ) — Deferred income taxes and other — 558 170 (47 ) 681 Other liabilities and deferred credits 20 138 175 — 333 Shareholders' equity 2,886 4,310 2,898 (7,208 ) 2,886 Total liabilities and shareholders' equity 4,665 6,749 3,926 (9,556 ) 5,784 December 31, 2016 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 17 14 94 — 125 Receivables — 305 308 — 613 Inventories — 548 211 — 759 Prepaid expenses 15 19 6 — 40 Income and other taxes receivable — 16 15 — 31 Intercompany accounts 331 184 47 (562 ) — Total current assets 363 1,086 681 (562 ) 1,568 Property, plant and equipment, net — 2,000 825 — 2,825 Goodwill — 313 237 — 550 Intangible assets, net — 279 329 — 608 Investments in affiliates 3,976 2,678 — (6,654 ) — Intercompany long-term advances 6 80 1,411 (1,497 ) — Other assets 15 18 103 (7 ) 129 Total assets 4,360 6,454 3,586 (8,720 ) 5,680 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 12 — — 12 Trade and other payables 48 391 217 — 656 Intercompany accounts 136 115 311 (562 ) — Income and other taxes payable 16 — 6 — 22 Long-term debt due within one year 63 — — — 63 Total current liabilities 263 518 534 (562 ) 753 Long-term debt 841 299 78 — 1,218 Intercompany long-term loans 560 937 — (1,497 ) — Deferred income taxes and other — 556 126 (7 ) 675 Other liabilities and deferred credits 20 168 170 — 358 Shareholders' equity 2,676 3,976 2,678 (6,654 ) 2,676 Total liabilities and shareholders' equity 4,360 6,454 3,586 (8,720 ) 5,680 For the nine months ended September 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 171 102 (273 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 43 (176 ) 56 273 196 Cash flows provided from (used for) operating activities 171 (5 ) 158 — 324 Investing activities Additions to property, plant and equipment — (61 ) (50 ) — (111 ) Proceeds from disposals of property, plant and equipment — — 8 — 8 Cash flows used for investing activities — (61 ) (42 ) — (103 ) Financing activities Dividend payments (78 ) — — — (78 ) Net change in bank indebtedness — (12 ) — — (12 ) Change in revolving credit facility (50 ) — — — (50 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (35 ) — (35 ) Repayments of long-term debt (63 ) — — — (63 ) Increase in long-term advances to related parties — — (79 ) 79 — Decrease in long-term advances to related parties 12 67 — (79 ) — Other 1 — — — 1 Cash flows (used for) provided from financing activities (178 ) 55 (89 ) — (212 ) Net (decrease) increase in cash and cash equivalents (7 ) (11 ) 27 — 9 Impact of foreign exchange on cash — — 9 — 9 Cash and cash equivalents at beginning of period 17 14 94 — 125 Cash and cash equivalents at end of period 10 3 130 — 143 For the nine months ended September 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 81 129 68 (197 ) 81 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,288 ) 4,205 115 197 229 Cash flows (used for) provided from operating activities (4,207 ) 4,334 183 — 310 Investing activities Additions to property, plant and equipment — (246 ) (56 ) — (302 ) Acquisition of business, net of cash acquired — (1 ) — — (1 ) Other — — 1 — 1 Cash flows used for investing activities — (247 ) (55 ) — (302 ) Financing activities Dividend payments (76 ) — — — (76 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 1 — — 1 Change in revolving credit facility 60 — — — 60 Proceeds from receivables securitization facility — — 140 — 140 Repayments of receivables securitization facility — — (40 ) — (40 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,089 ) (172 ) 4,261 — Decrease in long-term advances to related parties 4,261 — — (4,261 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,194 (4,089 ) (73 ) — 32 Net (decrease) increase in cash and cash equivalents (13 ) (2 ) 55 — 40 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 49 2 75 — 126 Cash and cash equivalents at end of period 36 — 132 — 168 |
Recent Accounting Pronounceme25
Recent Accounting Pronouncements (Policies) - Future Accounting Changes [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Revenue Recognition | REVENUE FROM CONTRACTS WITH CUSTOMERS In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers. ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. Early adoption is permitted only for annual and interim periods beginning after December 15, 2016. Entities are permitted to adopt the new revenue standard by restating all prior periods under the full retrospective approach following ASC 250 “ Accounting Changes and Error Corrections” The Company is currently finalizing its assessment of the impact that the guidance will have on the consolidated financial statements and related disclosures. The Company will adopt the new revenue standards in its first quarter of 2018 utilizing the full retrospective transition method. The Company has identified similar performance obligations under the new guidance as compared with deliverables previously identified. As a result, the Company expects the timing and amount of its revenue to remain substantially the same. The Company does not expect this new guidance to have a material impact on the consolidated financial statements aside from the additional required disclosures. |
Financial Instruments | FINANCIAL INSTRUMENTS In January 2016, the FASB issued ASU 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities, The amendments in this update are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. To adopt the amendments, companies will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. Early adoption is permitted. The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Leases | DOMTAR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2017 (IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED (UNAUDITED) LEASES In February 2016 Leases, As a lessee, Domtar’s various leases under existing guidance are classified as operating leases that are not recorded on the balance sheet but are recorded in the statement of earnings as expense is incurred. Upon adoption of the new guidance, the Company will be required to record substantially all leases on the Consolidated Balance Sheets as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the Consolidated Statements of Earnings and Comprehensive Income could change based on the classification of leases as either operating or financing. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will adopt the ASU on January 1, 2019 using the modified retrospective approach required by the guidance. The Company has begun its impact assessment, including taking an inventory of its outstanding leases and analyzing all contracts that contain a lease. While the Company’s evaluation of this guidance is in the early stages, the Company currently expects the adoption of this guidance to have a material impact on its consolidated balance sheet. |
Derivatives and Hedging | DERIVATIVES AND HEDGING In March 2016, the FASB issued ASU 2016-05, “ Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. DERIVATIVES AND HEDGING In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods therein. Entities are permitted to early adopt the new guidance in any interim or annual period after issuance of the ASU. If an entity early adopts the updated guidance in an interim period, any transition adjustments should be reflected as of the beginning of the fiscal year. While the Company is still evaluating the impact of adopting this new guidance, it does not expect this new guidance to have a material impact on the consolidated financial statements. |
Classification of Cash Flows | CLASSIFICATION OF CASH FLOWS In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows, The Company does not expect this new guidance to have a material impact on the consolidated financial statements. |
Goodwill Impairment | GOODWILL IMPAIRMENT In January 2017, the FASB issued ASU 2017-04, “ Simplifying the Test for Goodwill Impairment,” The Company expects to adopt this new guidance concurrently with its 2017 annual goodwill impairment test. |
Retirement Benefits | RETIREMENT BENEFITS In March 2017, the FASB issued ASU 2017-07, “ Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, The Company will adopt the ASU on January 1, 2018 using a retrospective approach for the presentation of the service cost component and the other components of net periodic benefit costs in the Consolidated Statement of Earnings and prospectively for the capitalization of the service cost component of net periodic benefit costs in assets. The guidance includes a practical expedient that permits an entity to estimate amounts for comparative periods using the information previously disclosed in its pension plans and other post-retirement benefit plans footnote. While the Company is still evaluating the impact of adopting this new guidance, it does not expect this new guidance to have a material impact on the consolidated earnings. |
Derivatives and Hedging Activ26
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments for Natural Gas Contracts Outstanding | The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of September 30, 2017 to hedge forecasted purchases: Commodity Notional contractual quantity under derivative contracts MMBTU (2) Notional contractual value under derivative contracts (in millions of dollars) Percentage of forecasted purchases under derivative contracts Natural Gas 2017 (1) 2,310,000 $ 7 33% 2018 12,695,000 $ 38 49% 2019 11,430,000 $ 34 44% 2020 8,880,000 $ 27 34% 2021 3,920,000 $ 12 15% 2022 2,070,000 $ 6 8% (1) Represents the remaining three months of 2017 (2) MMBTU: Millions of British thermal units |
Currency Values under Significant Contracts Pursuant to Currency Options Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of September 30, 2017 to hedge forecasted purchases and sales: Currency exposure hedged Business Segment Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate 2017 (1) CDN/USD Pulp and Paper 128 CDN 66% 1 USD = 1.3316 1 USD = 1.3817 USD/Euro Personal Care 16 USD 74% 1 Euro = 1.1414 1 Euro = 1.1414 2018 CDN/USD Pulp and Paper 424 CDN 55% 1 USD = 1.2922 1 USD = 1.3455 USD/Euro Personal Care 49 USD 56% 1 Euro = 1.1462 1 Euro = 1.1696 2019 CDN/USD Pulp and Paper 109 CDN 14% 1 USD = 1.2875 1 USD = 1.3451 |
Fair Value of Financial Instruments | The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis (except Long-term debt, see (b) below) at September 30, 2017 and December 31, 2016, in accordance with the accounting standards for fair value measurements and disclosures and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair Value of financial instruments at: September 30, 2017 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 22 — 22 — (a) Prepaid expenses Natural gas swap contracts 2 — 2 — (a) Prepaid expenses Currency derivatives 7 — 7 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 5 — 5 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 1 — 1 — (a) Other Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 11 — 11 — Other Instruments: Stock-based compensation - liability awards 6 6 — — Trade and other payables Stock-based compensation - liability awards 16 16 — — Other liabilities and deferred credits Long-term debt 1,241 — 1,241 — (b) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $2 million at September 30, 2017, of which a gain of $1 million will be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2017. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $23 million at September 30, 2017, of which a gain of $17 million will be recognized in Cost of sales or Sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at September 30, 2017. Fair Value of financial instruments at: December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Balance sheet classification $ $ $ $ Derivatives designated as hedging instruments: Asset derivatives Currency derivatives 18 — 18 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 6 — 6 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 32 — 32 — Liabilities derivatives Currency derivatives 10 — 10 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Currency derivatives 6 — 6 — (a) Other liabilities and deferred credits Natural gas swap contracts 4 — 4 — (a) Other liabilities and deferred credits Total Liabilities 21 — 21 — Other Instruments: Stock-based compensation - liability awards 2 2 — — Trade and other payables Stock-based compensation - liability awards 17 17 — — Other liabilities and deferred credits Long-term debt 1,313 — 1,313 — (b) Long-term debt (a) Fair value of the Company’s derivatives are classified under Level 2 (inputs that are observable; directly or indirectly) as it is measured as follows: - For currency derivatives: Fair value is measured using techniques derived from the Black-Scholes pricing model. Interest rates, forward market rates and volatility are used as inputs for such valuation techniques. - For natural gas contracts: Fair value is measured using the discounted difference between contractual rates and quoted market future rates. (b) Fair value of the Company’s long-term debt is measured by comparison to market prices of its debt. The Company’s long-term debt is not carried at fair value on the Consolidated Balance Sheets at September 30, 2017 and December 31, 2016. However, fair value disclosure is required. The carrying value of the Company’s long-term debt is $1,165 million and $1,281 million at September 30, 2017 and December 31, 2016, respectively. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Common Share | The following table provides the reconciliation between basic and diluted earnings per common share: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Net earnings $ 70 $ 59 $ 128 $ 81 Weighted average number of common shares outstanding (millions) 62.7 62.6 62.6 62.6 Effect of dilutive securities (millions) 0.2 0.1 0.2 0.1 Weighted average number of diluted common shares outstanding (millions) 62.9 62.7 62.8 62.7 Basic net earnings per common share (in dollars) $ 1.12 $ 0.94 $ 2.04 $ 1.29 Diluted $ 1.11 $ 0.94 $ 2.04 $ 1.29 |
Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future | The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 Options 312,893 412,372 419,161 412,372 |
Pension Plans and Other Post-28
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans | Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2017 September 30, 2017 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 8 1 23 2 Interest expense 13 — 38 2 Expected return on plan assets (20 ) — (60 ) — Amortization of net actuarial loss 2 — 6 — Amortization of prior year service costs 1 — 4 — Net periodic benefit cost 4 1 11 4 Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the nine months ended September 30, 2016 September 30, 2016 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 1 23 2 Interest expense 12 — 37 2 Expected return on plan assets (19 ) — (58 ) — Amortization of net actuarial loss 1 — 3 — Amortization of prior year service costs 2 — 4 — Net periodic benefit cost 3 1 9 4 |
Other Operating (Income) Loss29
Other Operating (Income) Loss, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating (Income) Loss, Net | The Company’s other operating (income) loss, net includes the following: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, 2017 2016 2017 2016 $ $ $ $ Gain on sale of property, plant and equipment (4 ) — (4 ) — Reversal of contingent consideration (2 ) — (2 ) — Bad debt expense — — 1 — Environmental provision — — 2 — Litigation settlement — — — 2 Foreign exchange loss — 1 1 5 Other (1 ) (1 ) (4 ) (3 ) Other operating (income) loss, net (7 ) — (6 ) 4 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: September 30, December 31, 2017 2016 $ $ Work in process and finished goods 429 413 Raw materials 133 132 Operating and maintenance supplies 225 214 787 759 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill | Changes in the carrying value of goodwill are as follows: September 30, 2017 $ Balance at December 31, 2016 550 Effect of foreign currency exchange rate change 28 Balance at end of period 578 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The following table presents the components of intangible assets: September 30, 2017 December 31, 2016 Estimated useful lives (in years) Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net $ $ $ $ $ $ Definite-lived intangible assets subject to amortization Water rights 40 3 (1 ) 2 3 (1 ) 2 Customer relationships 10 – 40 389 (75 ) 314 369 (60 ) 309 Technology 7 – 20 8 (3 ) 5 8 (3 ) 5 Non-Compete 9 1 (1 ) — 1 — 1 License rights 12 29 (11 ) 18 28 (8 ) 20 430 (91 ) 339 409 (72 ) 337 Indefinite-lived intangible assets not subject to amortization Water rights 4 — 4 4 — 4 Trade names 243 — 243 225 — 225 License rights 6 — 6 6 — 6 Catalog rights 40 — 40 36 — 36 Total 723 (91 ) 632 680 (72 ) 608 |
Amortization Expense Related to Intangible Assets | Amortization expense for the next five years related to intangible assets is expected to be as follows: 2017 2018 2019 2020 2021 $ $ $ $ $ Amortization expense related to intangible assets 21 (1) 21 21 21 21 (1) |
Changes in Accumulated Other 33
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | The following table presents the changes in Accumulated other comprehensive loss by component ( 1) Net (losses) gains cash Pension items (2) Post-retirement benefit items (2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2015 (30 ) (190 ) (10 ) (271 ) (501 ) Natural gas swap contracts 4 N/A N/A N/A 4 Net investment hedge (1 ) N/A N/A N/A (1 ) Currency options 8 N/A N/A N/A 8 Foreign exchange forward contracts 16 N/A N/A N/A 16 Net gain N/A (38 ) (1 ) N/A (39 ) Foreign currency items N/A N/A N/A (7 ) (7 ) Other comprehensive income (loss) before reclassifications 27 (38 ) (1 ) (7 ) (19 ) Amounts reclassified from Accumulated other comprehensive loss 14 7 — — 21 Net current period other comprehensive income (loss) 41 (31 ) (1 ) (7 ) 2 Balance at December 31, 2016 11 (221 ) (11 ) (278 ) (499 ) Natural gas swap contracts (3 ) N/A N/A N/A (3 ) Currency options 13 N/A N/A N/A 13 Foreign exchange forward contracts 1 N/A N/A N/A 1 Foreign currency items N/A N/A N/A 142 142 Other comprehensive income before reclassifications 11 — — 142 153 Amounts reclassified from Accumulated other comprehensive loss (6 ) 7 — — 1 Net current period other comprehensive income 5 7 — 142 154 Balance at September 30, 2017 16 (214 ) (11 ) (136 ) (345 ) (1) All amounts are after tax. Amounts in parenthesis indicate losses. (2) The accrued benefit obligation is actuarially determined on an annual basis as of December 31. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of Accumulated other comprehensive loss: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss (1) For the three months ended September 30, 2017 September 30, 2016 $ $ Net derivative (losses) gains on cash flow hedge Natural gas swap contracts 1 2 (2) Currency options and forwards (5 ) 1 (2) Total before tax (4 ) 3 Tax benefit (expense) 2 (2 ) Net of tax (2 ) 1 Amortization of defined benefit pension items Amortization of net actuarial loss and prior year service cost 3 2 (3) Tax expense (1 ) — Net of tax 2 2 Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss (1) For the nine months ended September 30, 2017 September 30, 2016 $ $ Net derivative (losses) gains on cash flow hedges Natural gas swap contracts — 12 (2) Currency options and forwards (10 ) 12 (2) Total before tax (10 ) 24 Tax benefit (expense) 4 (10 ) Net of tax (6 ) 14 Amortization of defined benefit pension items Amortization of net actuarial loss and prior year service cost 10 7 (3) Tax expense (3 ) (2 ) Net of tax 7 5 (1) Amounts in parentheses indicate losses. (2) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income. (3) These amounts are included in the computation of net periodic benefit cost (see Note 5 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Environmental Remediation Obligations [Abstract] | |
Changes in Reserve for Environmental Remediation and Asset Retirement Obligations | The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: September 30, 2017 $ Balance at beginning of year 50 Additions 3 Environmental spending (6 ) Effect of foreign currency exchange rate change 3 Balance at end of period 50 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Analysis and Reconciliation of Reportable Segment Information | An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows: For the three months ended For the nine months ended September 30, September 30, September 30, September 30, SEGMENT DATA 2017 2016 2017 2016 $ $ $ $ Sales by segment Pulp and Paper 1,054 1,054 3,126 3,193 Personal Care 253 231 743 675 Total for reportable segments 1,307 1,285 3,869 3,868 Intersegment sales (15 ) (15 ) (49 ) (44 ) Consolidated sales 1,292 1,270 3,820 3,824 Sales by product group Communication papers 597 638 1,798 1,952 Specialty and packaging papers 167 172 486 518 Market pulp 275 229 793 679 Absorbent hygiene products 253 231 743 675 Consolidated sales 1,292 1,270 3,820 3,824 Depreciation and amortization of property, plant and equipment Pulp and Paper 63 71 190 216 Personal Care 17 16 49 47 Total for reportable segments 80 87 239 263 Impairment of property, plant and equipment - Pulp and Paper — 5 — 29 Consolidated depreciation and amortization and impairment of property, plant and equipment 80 92 239 292 Operating income (loss) Pulp and Paper 93 89 192 143 Personal Care 8 15 37 44 Corporate (12 ) (12 ) (34 ) (38 ) Consolidated operating income 89 92 195 149 Interest expense, net 16 17 50 49 Earnings before income taxes 73 75 145 100 Income tax expense 3 16 17 19 Net earnings 70 59 128 81 |
Supplemental Guarantor Financ36
Supplemental Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings and Comprehensive Income (Loss) | For the three months ended September 30, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,059 522 (289 ) 1,292 Operating expenses Cost of sales, excluding depreciation and amortization — 901 400 (289 ) 1,012 Depreciation and amortization — 58 22 — 80 Selling, general and administrative 4 37 77 — 118 Other operating income, net — — (7 ) — (7 ) 4 996 492 (289 ) 1,203 Operating (loss) income (4 ) 63 30 — 89 Interest expense (income), net 15 21 (20 ) — 16 (Loss) earnings before income taxes (19 ) 42 50 — 73 Income tax (benefit) expense (4 ) (4 ) 11 — 3 Share in earnings of equity accounted investees 85 39 — (124 ) — Net earnings 70 85 39 (124 ) 70 Other comprehensive income 69 69 61 (130 ) 69 Comprehensive income 139 154 100 (254 ) 139 For the nine months ended September 30, 2017 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,156 1,537 (873 ) 3,820 Operating expenses Cost of sales, excluding depreciation and amortization — 2,749 1,179 (873 ) 3,055 Depreciation and amortization — 175 64 — 239 Selling, general and administrative 8 101 228 — 337 Other operating income, net — (2 ) (4 ) — (6 ) 8 3,023 1,467 (873 ) 3,625 Operating (loss) income (8 ) 133 70 — 195 Interest expense (income), net 48 63 (61 ) — 50 (Loss) earnings before income taxes (56 ) 70 131 — 145 Income tax (benefit) expense (13 ) 1 29 — 17 Share in earnings of equity accounted investees 171 102 — (273 ) — Net earnings 128 171 102 (273 ) 128 Other comprehensive income 154 163 146 (309 ) 154 Comprehensive income 282 334 248 (582 ) 282 For the three months ended September 30, 2016 Non- CONDENSED CONSOLIDATING STATEMENT OF Guarantor Guarantor Consolidating EARNINGS AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,044 516 (290 ) 1,270 Operating expenses Cost of sales, excluding depreciation and amortization — 879 380 (290 ) 969 Depreciation and amortization — 65 22 — 87 Selling, general and administrative 3 28 76 — 107 Impairment of property, plant and equipment — 5 — — 5 Closure and restructuring costs — 10 — — 10 Other operating (income) loss, net — (1 ) 1 — — 3 986 479 (290 ) 1,178 Operating (loss) income (3 ) 58 37 — 92 Interest expense (income), net 16 14 (13 ) — 17 (Loss) earnings before income taxes (19 ) 44 50 — 75 Income tax (benefit) expense (4 ) (3 ) 23 — 16 Share in earnings of equity accounted investees 74 27 — (101 ) — Net earnings 59 74 27 (101 ) 59 Other comprehensive income 3 7 7 (14 ) 3 Comprehensive income 62 81 34 (115 ) 62 For the nine months ended September 30, 2016 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 3,150 1,535 (861 ) 3,824 Operating expenses Cost of sales, excluding depreciation and amortization — 2,725 1,168 (861 ) 3,032 Depreciation and amortization — 193 70 — 263 Selling, general and administrative 13 80 221 — 314 Impairment of property, plant and equipment — 29 — — 29 Closure and restructuring costs — 33 — — 33 Other operating loss (income), net 1 (2 ) 5 — 4 14 3,058 1,464 (861 ) 3,675 Operating (loss) income (14 ) 92 71 — 149 Interest expense (income), net 48 30 (29 ) — 49 (Loss) earnings before income taxes (62 ) 62 100 — 100 Income tax (benefit) expense (14 ) 1 32 — 19 Share in earnings of equity accounted investees 129 68 — (197 ) — Net earnings 81 129 68 (197 ) 81 Other comprehensive income 103 97 63 (160 ) 103 Comprehensive income 184 226 131 (357 ) 184 |
Condensed Consolidating Balance Sheet | September 30, 2017 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 10 3 130 — 143 Receivables — 335 324 — 659 Inventories — 536 251 — 787 Prepaid expenses 11 27 9 — 47 Income and other taxes receivable — 3 14 (4 ) 13 Intercompany accounts 292 367 85 (744 ) — Total current assets 313 1,271 813 (748 ) 1,649 Property, plant and equipment, net — 1,888 886 — 2,774 Goodwill — 313 265 — 578 Intangible assets, net — 270 362 — 632 Investments in affiliates 4,310 2,898 — (7,208 ) — Intercompany long-term advances 6 81 1,466 (1,553 ) — Other assets 36 28 134 (47 ) 151 Total assets 4,665 6,749 3,926 (9,556 ) 5,784 Liabilities and shareholders' equity Current liabilities Trade and other payables 47 405 235 — 687 Intercompany accounts 299 97 348 (744 ) — Income and other taxes payable 11 — 25 (4 ) 32 Long-term debt due within one year — — 1 — 1 Total current liabilities 357 502 609 (748 ) 720 Long-term debt 792 299 73 — 1,164 Intercompany long-term loans 610 942 1 (1,553 ) — Deferred income taxes and other — 558 170 (47 ) 681 Other liabilities and deferred credits 20 138 175 — 333 Shareholders' equity 2,886 4,310 2,898 (7,208 ) 2,886 Total liabilities and shareholders' equity 4,665 6,749 3,926 (9,556 ) 5,784 December 31, 2016 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 17 14 94 — 125 Receivables — 305 308 — 613 Inventories — 548 211 — 759 Prepaid expenses 15 19 6 — 40 Income and other taxes receivable — 16 15 — 31 Intercompany accounts 331 184 47 (562 ) — Total current assets 363 1,086 681 (562 ) 1,568 Property, plant and equipment, net — 2,000 825 — 2,825 Goodwill — 313 237 — 550 Intangible assets, net — 279 329 — 608 Investments in affiliates 3,976 2,678 — (6,654 ) — Intercompany long-term advances 6 80 1,411 (1,497 ) — Other assets 15 18 103 (7 ) 129 Total assets 4,360 6,454 3,586 (8,720 ) 5,680 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 12 — — 12 Trade and other payables 48 391 217 — 656 Intercompany accounts 136 115 311 (562 ) — Income and other taxes payable 16 — 6 — 22 Long-term debt due within one year 63 — — — 63 Total current liabilities 263 518 534 (562 ) 753 Long-term debt 841 299 78 — 1,218 Intercompany long-term loans 560 937 — (1,497 ) — Deferred income taxes and other — 556 126 (7 ) 675 Other liabilities and deferred credits 20 168 170 — 358 Shareholders' equity 2,676 3,976 2,678 (6,654 ) 2,676 Total liabilities and shareholders' equity 4,360 6,454 3,586 (8,720 ) 5,680 |
Condensed Consolidating Statement of Cash Flows | For the nine months ended September 30, 2017 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 128 171 102 (273 ) 128 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 43 (176 ) 56 273 196 Cash flows provided from (used for) operating activities 171 (5 ) 158 — 324 Investing activities Additions to property, plant and equipment — (61 ) (50 ) — (111 ) Proceeds from disposals of property, plant and equipment — — 8 — 8 Cash flows used for investing activities — (61 ) (42 ) — (103 ) Financing activities Dividend payments (78 ) — — — (78 ) Net change in bank indebtedness — (12 ) — — (12 ) Change in revolving credit facility (50 ) — — — (50 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (35 ) — (35 ) Repayments of long-term debt (63 ) — — — (63 ) Increase in long-term advances to related parties — — (79 ) 79 — Decrease in long-term advances to related parties 12 67 — (79 ) — Other 1 — — — 1 Cash flows (used for) provided from financing activities (178 ) 55 (89 ) — (212 ) Net (decrease) increase in cash and cash equivalents (7 ) (11 ) 27 — 9 Impact of foreign exchange on cash — — 9 — 9 Cash and cash equivalents at beginning of period 17 14 94 — 125 Cash and cash equivalents at end of period 10 3 130 — 143 For the nine months ended September 30, 2016 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 81 129 68 (197 ) 81 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (4,288 ) 4,205 115 197 229 Cash flows (used for) provided from operating activities (4,207 ) 4,334 183 — 310 Investing activities Additions to property, plant and equipment — (246 ) (56 ) — (302 ) Acquisition of business, net of cash acquired — (1 ) — — (1 ) Other — — 1 — 1 Cash flows used for investing activities — (247 ) (55 ) — (302 ) Financing activities Dividend payments (76 ) — — — (76 ) Stock repurchase (10 ) — — — (10 ) Net change in bank indebtedness — 1 — — 1 Change in revolving credit facility 60 — — — 60 Proceeds from receivables securitization facility — — 140 — 140 Repayments of receivables securitization facility — — (40 ) — (40 ) Repayments of long-term debt (38 ) (1 ) (1 ) — (40 ) Increase in long-term advances to related parties — (4,089 ) (172 ) 4,261 — Decrease in long-term advances to related parties 4,261 — — (4,261 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 4,194 (4,089 ) (73 ) — 32 Net (decrease) increase in cash and cash equivalents (13 ) (2 ) 55 — 40 Impact of foreign exchange on cash — — 2 — 2 Cash and cash equivalents at beginning of period 49 2 75 — 126 Cash and cash equivalents at end of period 36 — 132 — 168 |
Derivatives and Hedging Activ37
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)Customer | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Customer | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||||
Number of major customers | Customer | 1 | 1 | |||
Receivables from major customers | $ 82,000,000 | $ 82,000,000 | $ 74,000,000 | ||
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 21 months | ||||
Maximum [Member] | U S Subsidiaries [Member] | British Pounds [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 3 months | ||||
Maximum [Member] | European Subsidiaries [Member] | Swedish Krona [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 12 months | ||||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 57 months | ||||
Natural Gas Swap Contracts [Member] | |||||
Derivative [Line Items] | |||||
Earnings hedge ineffectiveness | 0 | $ 0 | $ 0 | $ 0 | |
Cumulative gain (loss) recorded in accumulated other comprehensive loss | (2,000,000) | ||||
Natural Gas Swap Contracts [Member] | Cost of Sale [Member] | |||||
Derivative [Line Items] | |||||
Cumulative gain (loss) recorded in accumulated other comprehensive loss | $ 1,000,000 | ||||
Recognition of OCI in Cost of sales | 12 months | ||||
Foreign Currency Investment [Member] | |||||
Derivative [Line Items] | |||||
Length of time current hedges cover | 3 years | ||||
Currency Derivatives [Member] | |||||
Derivative [Line Items] | |||||
Earnings hedge ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
Cumulative gain (loss) recorded in accumulated other comprehensive loss | 23,000,000 | ||||
Currency Derivatives [Member] | Cost of Sale [Member] | |||||
Derivative [Line Items] | |||||
Cumulative gain (loss) recorded in accumulated other comprehensive loss | $ 17,000,000 | ||||
Recognition of OCI in Cost of sales | 12 months | ||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||
Derivative [Line Items] | |||||
Maximum percentage of receivables a single customer represents | 12.00% | 12.00% |
Derivatives and Hedging Activ38
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Sep. 30, 2017USD ($)MMBTU |
2017 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 2,310,000 |
Notional contractual value under derivative contracts | $ | $ 7,000,000 |
Percentage of forecasted purchases under derivative contracts | 33.00% |
2018 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 12,695,000 |
Notional contractual value under derivative contracts | $ | $ 38,000,000 |
Percentage of forecasted purchases under derivative contracts | 49.00% |
2019 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 11,430,000 |
Notional contractual value under derivative contracts | $ | $ 34,000,000 |
Percentage of forecasted purchases under derivative contracts | 44.00% |
2020 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 8,880,000 |
Notional contractual value under derivative contracts | $ | $ 27,000,000 |
Percentage of forecasted purchases under derivative contracts | 34.00% |
2021 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 3,920,000 |
Notional contractual value under derivative contracts | $ | $ 12,000,000 |
Percentage of forecasted purchases under derivative contracts | 15.00% |
2022 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 2,070,000 |
Notional contractual value under derivative contracts | $ | $ 6,000,000 |
Percentage of forecasted purchases under derivative contracts | 8.00% |
Derivatives and Hedging Activ39
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member] | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017CAD | |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2017 [Member] | ||
Derivative [Line Items] | ||
Notional contractual value | CAD 128,000,000 | |
Percentage of forecasted net exposures under contracts | 66.00% | |
Currency exposure hedged, Average Protection rate | 1.3316 | 1.3316 |
Currency exposure hedged, Average Obligation rate | 1.3817 | 1.3817 |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2018 [Member] | ||
Derivative [Line Items] | ||
Notional contractual value | CAD 424,000,000 | |
Percentage of forecasted net exposures under contracts | 55.00% | |
Currency exposure hedged, Average Protection rate | 1.2922 | 1.2922 |
Currency exposure hedged, Average Obligation rate | 1.3455 | 1.3455 |
Pulp and Paper [Member] | CDN/USD Denominated Notional Contractual Value For 2019 [Member] | ||
Derivative [Line Items] | ||
Notional contractual value | CAD 109,000,000 | |
Percentage of forecasted net exposures under contracts | 14.00% | |
Currency exposure hedged, Average Protection rate | 1.2875 | 1.2875 |
Currency exposure hedged, Average Obligation rate | 1.3451 | 1.3451 |
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2017 [Member] | ||
Derivative [Line Items] | ||
Notional contractual value | $ | $ 16,000,000 | |
Percentage of forecasted net exposures under contracts | 74.00% | |
Currency exposure hedged, Average Protection rate | 1.1414 | 1.1414 |
Currency exposure hedged, Average Obligation rate | 1.1414 | 1.1414 |
Personal Care [Member] | USD/Euro Denominated Notional Contractual Value For 2018 [Member] | ||
Derivative [Line Items] | ||
Notional contractual value | $ | $ 49,000,000 | |
Percentage of forecasted net exposures under contracts | 56.00% | |
Currency exposure hedged, Average Protection rate | 1.1462 | 1.1462 |
Currency exposure hedged, Average Obligation rate | 1.1696 | 1.1696 |
Derivatives and Hedging Activ40
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total Assets | $ 32 | $ 32 |
Total Liabilities | 11 | 21 |
Long-term debt | 1,241 | 1,313 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 6 | 2 |
Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 16 | 17 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 22 | 18 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 7 | 6 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 10 |
Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 6 |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 6 |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 2 |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 4 | 4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 6 | 2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 16 | 17 |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 32 | 32 |
Total Liabilities | 11 | 21 |
Long-term debt | 1,241 | 1,313 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 22 | 18 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 7 | 6 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 5 | 10 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 6 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 6 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | 2 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 4 | $ 4 |
Derivatives and Hedging Activ41
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
The carrying value of the Company's long-term debt | $ 1,165 | $ 1,281 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation Between Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 70 | $ 59 | $ 128 | $ 81 |
Weighted average number of common shares outstanding (millions) | 62.7 | 62.6 | 62.6 | 62.6 |
Effect of dilutive securities (millions) | 0.2 | 0.1 | 0.2 | 0.1 |
Weighted average number of diluted common shares outstanding (millions) | 62.9 | 62.7 | 62.8 | 62.7 |
Basic net earnings per common share (in dollars) | $ 1.12 | $ 0.94 | $ 2.04 | $ 1.29 |
Diluted net earnings per common share (in dollars) | $ 1.11 | $ 0.94 | $ 2.04 | $ 1.29 |
Earnings Per Common Share - Sec
Earnings Per Common Share - Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share amount | 312,893 | 412,372 | 419,161 | 412,372 |
Pension Plans and Other Post-44
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension expense | $ 9 | $ 11 | $ 28 | $ 29 |
Pension Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | 38 | 18 | 44 | 27 |
Other Post-Retirement Benefit Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | $ 0 | $ 1 | $ 2 | $ 3 |
Pension Plans and Other Post-45
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 8 | $ 7 | $ 23 | $ 23 |
Interest expense | 13 | 12 | 38 | 37 |
Expected return on plan assets | (20) | (19) | (60) | (58) |
Amortization of net actuarial loss | 2 | 1 | 6 | 3 |
Amortization of prior year service costs | 1 | 2 | 4 | 4 |
Net periodic benefit cost | 4 | 3 | 11 | 9 |
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest expense | 2 | 2 | ||
Net periodic benefit cost | $ 1 | $ 1 | $ 4 | $ 4 |
Other Operating (Income) Loss46
Other Operating (Income) Loss, Net - Components of Other Operating (Income) Loss, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income And Expenses [Abstract] | ||||
Net gains on disposals of property, plant and equipment | $ (4) | $ (4) | ||
Reversal of contingent consideration | (2) | (2) | ||
Bad debt expense | 1 | |||
Environmental provision | 2 | |||
Litigation settlement | $ 2 | |||
Foreign exchange loss | $ 1 | 1 | 5 | |
Other | (1) | $ (1) | (4) | (3) |
Other operating (income) loss, net | $ (7) | $ (6) | $ 4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 3 | $ 16 | $ 17 | $ 19 |
Current income tax expense (benefit) | 10 | 5 | 36 | 13 |
Deferred income tax expense (benefit) | $ (7) | $ 11 | $ (19) | $ 6 |
Effective income tax rate | 4.00% | 21.00% | 12.00% | 19.00% |
Income tax payments, net of refunds | $ 3 | $ 18 | $ 37 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 429 | $ 413 |
Raw materials | 133 | 132 |
Operating and maintenance supplies | 225 | 214 |
Total inventories | $ 787 | $ 759 |
Goodwill - Carrying Value and A
Goodwill - Carrying Value and Any Changes in Carrying Value of Goodwilll (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill Roll Forward | |
Balance at beginning of period | $ 550 |
Effect of foreign currency exchange rate change | 28 |
Balance at end of period | $ 578 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 430 | $ 409 |
Accumulated amortization | (91) | (72) |
Intangible assets, net | 339 | 337 |
Total, Gross carrying amount | 723 | 680 |
Intangible assets, net of amortization | 632 | 608 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 4 | 4 |
Trade Names [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 243 | 225 |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | 6 | 6 |
Catalog Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | $ 40 | 36 |
Water Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 40 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 3 | 3 |
Accumulated amortization | (1) | (1) |
Intangible assets, net | 2 | 2 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | 389 | 369 |
Accumulated amortization | (75) | (60) |
Intangible assets, net | $ 314 | 309 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 10 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 40 years | |
Technology [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 8 | 8 |
Accumulated amortization | (3) | (3) |
Intangible assets, net | $ 5 | 5 |
Technology [Member] | Minimum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 7 years | |
Technology [Member] | Maximum [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 20 years | |
Non-Compete [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 9 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 1 | 1 |
Accumulated amortization | $ (1) | |
Intangible assets, net | 1 | |
License Rights [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Estimated useful lives (in years) | 12 years | |
Definite-lived intangible assets subject to amortization, gross carrying amount | $ 29 | 28 |
Accumulated amortization | (11) | (8) |
Intangible assets, net | $ 18 | $ 20 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 4 | $ 5 | $ 14 | $ 14 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets, 2017 | $ 21 |
Amortization expense related to intangible assets, 2018 | 21 |
Amortization expense related to intangible assets, 2019 | 21 |
Amortization expense related to intangible assets, 2020 | 21 |
Amortization expense related to intangible assets, 2021 | $ 21 |
Closure and Restructuring Cos53
Closure and Restructuring Costs and Liability and Impairment of Property, Plant and Equipment - Additional Information (Detail) $ in Millions | Sep. 23, 2016Positiont | Mar. 31, 2016t | Dec. 10, 2014t | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($) |
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | $ 10 | $ 33 | ||||
Previous and Ongoing Closures [Member] | Pulp and Paper [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | 0 | 1 | ||||
Plymouth, North Carolina Mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Expected number of positions eliminated | Position | 100 | |||||
Production capacity of pulp machine | t | 380,000 | |||||
Severance and termination costs | 5 | |||||
Ashdown, Arkansas Mill [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance and termination costs | $ 1 | |||||
Permanent reduction of annual uncoated freesheet production capacity | t | 364,000 | |||||
Accelerated depreciation | 5 | 29 | ||||
Other costs | $ 5 | $ 26 | ||||
Ashdown, Arkansas Mill [Member] | Maximum [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Production capacity of pulp machine | t | 516,000 |
Changes in Accumulated Other 54
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ (499) | $ (501) | $ (501) | ||
Other comprehensive (loss) income before reclassifications | 153 | (19) | |||
Amounts reclassified from Accumulated other comprehensive loss | 1 | 21 | |||
Other comprehensive income | $ 69 | $ 3 | 154 | 103 | 2 |
Ending balance | (345) | (345) | (499) | ||
Natural Gas Swap Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (3) | 4 | |||
Currency Options [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 13 | 8 | |||
Foreign Exchange Forward Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 1 | 16 | |||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 142 | (7) | |||
Net (Gain) Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (39) | ||||
Net Investment Hedging [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (1) | ||||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | 11 | (30) | (30) | ||
Other comprehensive (loss) income before reclassifications | 11 | 27 | |||
Amounts reclassified from Accumulated other comprehensive loss | (6) | 14 | |||
Other comprehensive income | 5 | 41 | |||
Ending balance | 16 | 16 | 11 | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (3) | 4 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 13 | 8 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 1 | 16 | |||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Net Investment Hedging [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (1) | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (221) | (190) | (190) | ||
Other comprehensive (loss) income before reclassifications | (38) | ||||
Amounts reclassified from Accumulated other comprehensive loss | 7 | 7 | |||
Other comprehensive income | 7 | (31) | |||
Ending balance | (214) | (214) | (221) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net (Gain) Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (38) | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (11) | (10) | (10) | ||
Other comprehensive (loss) income before reclassifications | (1) | ||||
Other comprehensive income | (1) | ||||
Ending balance | (11) | (11) | (11) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Net (Gain) Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | (1) | ||||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | (278) | $ (271) | (271) | ||
Other comprehensive (loss) income before reclassifications | 142 | (7) | |||
Other comprehensive income | 142 | (7) | |||
Ending balance | $ (136) | (136) | (278) | ||
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | $ 142 | $ (7) |
Changes in Accumulated Other 55
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings before income taxes | $ 73 | $ 75 | $ 145 | $ 100 |
Tax benefit (expense) | (3) | (16) | (17) | (19) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings before income taxes | (4) | 3 | (10) | 24 |
Tax benefit (expense) | 2 | (2) | 4 | (10) |
Net of tax | (2) | 1 | (6) | 14 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Natural Gas Swap Contracts [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | 1 | 2 | 12 | |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | Currency Options and Forwards [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (5) | 1 | (10) | 12 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial loss and prior year service cost | 3 | 2 | 10 | 7 |
Tax benefit (expense) | (1) | (3) | (2) | |
Net of tax | $ 2 | $ 2 | $ 7 | $ 5 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Oct. 31, 2017 | Oct. 16, 2017 | Aug. 01, 2017 | Jul. 17, 2017 | May 03, 2017 | Apr. 17, 2017 | Feb. 21, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Shareholders' Equity [Line Items] | |||||||||||
Dividend per share | $ 0.42 | $ 0.42 | $ 0.42 | ||||||||
Record date | Oct. 2, 2017 | Jul. 3, 2017 | Apr. 3, 2017 | ||||||||
Declared date | Aug. 1, 2017 | May 3, 2017 | Feb. 21, 2017 | ||||||||
Dividends paid | $ 26,000,000 | $ 26,000,000 | |||||||||
Payment date | Oct. 16, 2017 | Jul. 17, 2017 | Apr. 17, 2017 | ||||||||
Stock repurchased, shares | 0 | 304,915 | 24,853,827 | ||||||||
Stock repurchased, average price | $ 32.21 | $ 39.33 | |||||||||
Stock repurchased, value | $ 10,000,000 | $ 977,000,000 | |||||||||
Treasury stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Maximum [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Stock repurchase program authorized amount | $ 1,300,000,000 | $ 1,300,000,000 | |||||||||
Subsequent Event [Member] | |||||||||||
Shareholders' Equity [Line Items] | |||||||||||
Dividend per share | $ 0.42 | ||||||||||
Record date | Jan. 2, 2018 | ||||||||||
Declared date | Oct. 31, 2017 | ||||||||||
Dividends paid | $ 26,000,000 | ||||||||||
Payment date | Jan. 15, 2018 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of year | $ 50 |
Additions | 3 |
Environmental spending | (6) |
Effect of foreign currency exchange rate change | 3 |
Balance at end of period | $ 50 |
Commitments and Contingencies58
Commitments and Contingencies - Additional Information (Detail) € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2014Affiliate | Jun. 30, 2016USD ($) | Jun. 30, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017EUR (€) | May 26, 2016USD ($) | May 26, 2016EUR (€) | |
Commitments And Contingencies [Line Items] | ||||||||||
Number of affiliated companies acquired | Affiliate | 2 | |||||||||
Retained Purchase Price | $ 3,300,000 | € 3 | ||||||||
Bank guarantees | 9,900,000 | € 9 | ||||||||
Recoveries from retained purchase price and bank guarantees | $ 13,200,000 | € 12 | ||||||||
Remaining recoveries from retained purchase price and bank guarantees | 1,700,000 | € 1.5 | ||||||||
Pension Plans [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Provision for liability | 0 | |||||||||
Indas and Affiliates [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Penalties for violations of competition laws | $ 14,900,000 | € 13.5 | ||||||||
Spanish Competition Investigation [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Provision for liability | $ 14,700,000 | € 13.3 | $ 200,000 | € 0.2 | ||||||
Indemnification Guarantee [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ||||||||||
Provision for liability | $ 0 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Number of operating segments | 2 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,292 | $ 1,270 | $ 3,820 | $ 3,824 |
Depreciation and amortization of property, plant and equipment | 80 | 87 | 239 | 263 |
Impairment of property, plant and equipment | 5 | 29 | ||
Consolidated depreciation and amortization and impairment of property, plant and equipment | 80 | 92 | 239 | 292 |
Consolidated operating income (loss) | 89 | 92 | 195 | 149 |
Interest expense, net | 16 | 17 | 50 | 49 |
Earnings before income taxes | 73 | 75 | 145 | 100 |
Income tax expense (benefit) | 3 | 16 | 17 | 19 |
Net earnings | 70 | 59 | 128 | 81 |
Communication Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 597 | 638 | 1,798 | 1,952 |
Specialty and Packaging Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 167 | 172 | 486 | 518 |
Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 275 | 229 | 793 | 679 |
Absorbent Hygiene Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 253 | 231 | 743 | 675 |
Pulp and Paper [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property, plant and equipment | 63 | 71 | 190 | 216 |
Impairment of property, plant and equipment | 5 | 29 | ||
Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of property, plant and equipment | 17 | 16 | 49 | 47 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,307 | 1,285 | 3,869 | 3,868 |
Operating Segments [Member] | Pulp and Paper [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,054 | 1,054 | 3,126 | 3,193 |
Consolidated operating income (loss) | 93 | 89 | 192 | 143 |
Operating Segments [Member] | Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 253 | 231 | 743 | 675 |
Consolidated operating income (loss) | 8 | 15 | 37 | 44 |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (15) | (15) | (49) | (44) |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated operating income (loss) | $ (12) | $ (12) | $ (34) | $ (38) |
Supplemental Guarantor Financ61
Supplemental Guarantor Financial Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Domtar (Canada) Paper Company, LLC [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Non-Guarantor Subsidiaries [Member] | |
Condensed Financial Statements Captions [Line Items] | |
Ownership percentage | 100.00% |
Supplemental Guarantor Financ62
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings and Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Condensed Income Statements Captions [Line Items] | |||||
Sales | $ 1,292 | $ 1,270 | $ 3,820 | $ 3,824 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 1,012 | 969 | 3,055 | 3,032 | |
Depreciation and amortization | 80 | 87 | 239 | 263 | |
Selling, general and administrative | 118 | 107 | 337 | 314 | |
Impairment of property, plant and equipment | 5 | 29 | |||
Closure and restructuring costs | 10 | 33 | |||
Other operating income, net | (7) | (6) | 4 | ||
Operating expenses | 1,203 | 1,178 | 3,625 | 3,675 | |
Operating income | 89 | 92 | 195 | 149 | |
Interest expense, net | 16 | 17 | 50 | 49 | |
(Loss) earnings before income taxes | 73 | 75 | 145 | 100 | |
Income tax (benefit) expense | 3 | 16 | 17 | 19 | |
Net earnings | 70 | 59 | 128 | 81 | |
Other comprehensive income | 69 | 3 | 154 | 103 | $ 2 |
Comprehensive income | 139 | 62 | 282 | 184 | |
Consolidating Adjustments [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | (289) | (290) | (873) | (861) | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | (289) | (290) | (873) | (861) | |
Operating expenses | (289) | (290) | (873) | (861) | |
Share in earnings of equity accounted investees | (124) | (101) | (273) | (197) | |
Net earnings | (124) | (101) | (273) | (197) | |
Other comprehensive income | (130) | (14) | (309) | (160) | |
Comprehensive income | (254) | (115) | (582) | (357) | |
Parent [Member] | |||||
Operating expenses | |||||
Selling, general and administrative | 4 | 3 | 8 | 13 | |
Other operating income, net | 1 | ||||
Operating expenses | 4 | 3 | 8 | 14 | |
Operating income | (4) | (3) | (8) | (14) | |
Interest expense, net | 15 | 16 | 48 | 48 | |
(Loss) earnings before income taxes | (19) | (19) | (56) | (62) | |
Income tax (benefit) expense | (4) | (4) | (13) | (14) | |
Share in earnings of equity accounted investees | 85 | 74 | 171 | 129 | |
Net earnings | 70 | 59 | 128 | 81 | |
Other comprehensive income | 69 | 3 | 154 | 103 | |
Comprehensive income | 139 | 62 | 282 | 184 | |
Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 1,059 | 1,044 | 3,156 | 3,150 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 901 | 879 | 2,749 | 2,725 | |
Depreciation and amortization | 58 | 65 | 175 | 193 | |
Selling, general and administrative | 37 | 28 | 101 | 80 | |
Impairment of property, plant and equipment | 5 | 29 | |||
Closure and restructuring costs | 10 | 33 | |||
Other operating income, net | (1) | (2) | (2) | ||
Operating expenses | 996 | 986 | 3,023 | 3,058 | |
Operating income | 63 | 58 | 133 | 92 | |
Interest expense, net | 21 | 14 | 63 | 30 | |
(Loss) earnings before income taxes | 42 | 44 | 70 | 62 | |
Income tax (benefit) expense | (4) | (3) | 1 | 1 | |
Share in earnings of equity accounted investees | 39 | 27 | 102 | 68 | |
Net earnings | 85 | 74 | 171 | 129 | |
Other comprehensive income | 69 | 7 | 163 | 97 | |
Comprehensive income | 154 | 81 | 334 | 226 | |
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 522 | 516 | 1,537 | 1,535 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 400 | 380 | 1,179 | 1,168 | |
Depreciation and amortization | 22 | 22 | 64 | 70 | |
Selling, general and administrative | 77 | 76 | 228 | 221 | |
Other operating income, net | (7) | 1 | (4) | 5 | |
Operating expenses | 492 | 479 | 1,467 | 1,464 | |
Operating income | 30 | 37 | 70 | 71 | |
Interest expense, net | (20) | (13) | (61) | (29) | |
(Loss) earnings before income taxes | 50 | 50 | 131 | 100 | |
Income tax (benefit) expense | 11 | 23 | 29 | 32 | |
Net earnings | 39 | 27 | 102 | 68 | |
Other comprehensive income | 61 | 7 | 146 | 63 | |
Comprehensive income | $ 100 | $ 34 | $ 248 | $ 131 |
Supplemental Guarantor Financ63
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 143 | $ 125 | $ 168 | $ 126 |
Receivables | 659 | 613 | ||
Inventories | 787 | 759 | ||
Prepaid expenses | 47 | 40 | ||
Income and other taxes receivable | 13 | 31 | ||
Total current assets | 1,649 | 1,568 | ||
Property, plant and equipment, net | 2,774 | 2,825 | ||
Goodwill | 578 | 550 | ||
Intangible assets, net | 632 | 608 | ||
Other assets | 151 | 129 | ||
Total assets | 5,784 | 5,680 | ||
Current liabilities | ||||
Bank indebtedness | 12 | |||
Trade and other payables | 687 | 656 | ||
Income and other taxes payable | 32 | 22 | ||
Long-term debt due within one year | 1 | 63 | ||
Total current liabilities | 720 | 753 | ||
Long-term debt | 1,164 | 1,218 | ||
Deferred income taxes and other | 681 | 675 | ||
Other liabilities and deferred credits | 333 | 358 | ||
Shareholders' equity | 2,886 | 2,676 | ||
Total liabilities and shareholders' equity | 5,784 | 5,680 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Income and other taxes receivable | (4) | |||
Intercompany accounts | (744) | (562) | ||
Total current assets | (748) | (562) | ||
Investments in affiliates | (7,208) | (6,654) | ||
Intercompany long-term advances | (1,553) | (1,497) | ||
Other assets | (47) | (7) | ||
Total assets | (9,556) | (8,720) | ||
Current liabilities | ||||
Intercompany accounts | (744) | (562) | ||
Income and other taxes payable | (4) | |||
Total current liabilities | (748) | (562) | ||
Intercompany long-term loans | (1,553) | (1,497) | ||
Deferred income taxes and other | (47) | (7) | ||
Shareholders' equity | (7,208) | (6,654) | ||
Total liabilities and shareholders' equity | (9,556) | (8,720) | ||
Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 10 | 17 | 36 | 49 |
Prepaid expenses | 11 | 15 | ||
Intercompany accounts | 292 | 331 | ||
Total current assets | 313 | 363 | ||
Investments in affiliates | 4,310 | 3,976 | ||
Intercompany long-term advances | 6 | 6 | ||
Other assets | 36 | 15 | ||
Total assets | 4,665 | 4,360 | ||
Current liabilities | ||||
Trade and other payables | 47 | 48 | ||
Intercompany accounts | 299 | 136 | ||
Income and other taxes payable | 11 | 16 | ||
Long-term debt due within one year | 63 | |||
Total current liabilities | 357 | 263 | ||
Long-term debt | 792 | 841 | ||
Intercompany long-term loans | 610 | 560 | ||
Other liabilities and deferred credits | 20 | 20 | ||
Shareholders' equity | 2,886 | 2,676 | ||
Total liabilities and shareholders' equity | 4,665 | 4,360 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 3 | 14 | 2 | |
Receivables | 335 | 305 | ||
Inventories | 536 | 548 | ||
Prepaid expenses | 27 | 19 | ||
Income and other taxes receivable | 3 | 16 | ||
Intercompany accounts | 367 | 184 | ||
Total current assets | 1,271 | 1,086 | ||
Property, plant and equipment, net | 1,888 | 2,000 | ||
Goodwill | 313 | 313 | ||
Intangible assets, net | 270 | 279 | ||
Investments in affiliates | 2,898 | 2,678 | ||
Intercompany long-term advances | 81 | 80 | ||
Other assets | 28 | 18 | ||
Total assets | 6,749 | 6,454 | ||
Current liabilities | ||||
Bank indebtedness | 12 | |||
Trade and other payables | 405 | 391 | ||
Intercompany accounts | 97 | 115 | ||
Total current liabilities | 502 | 518 | ||
Long-term debt | 299 | 299 | ||
Intercompany long-term loans | 942 | 937 | ||
Deferred income taxes and other | 558 | 556 | ||
Other liabilities and deferred credits | 138 | 168 | ||
Shareholders' equity | 4,310 | 3,976 | ||
Total liabilities and shareholders' equity | 6,749 | 6,454 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 130 | 94 | $ 132 | $ 75 |
Receivables | 324 | 308 | ||
Inventories | 251 | 211 | ||
Prepaid expenses | 9 | 6 | ||
Income and other taxes receivable | 14 | 15 | ||
Intercompany accounts | 85 | 47 | ||
Total current assets | 813 | 681 | ||
Property, plant and equipment, net | 886 | 825 | ||
Goodwill | 265 | 237 | ||
Intangible assets, net | 362 | 329 | ||
Intercompany long-term advances | 1,466 | 1,411 | ||
Other assets | 134 | 103 | ||
Total assets | 3,926 | 3,586 | ||
Current liabilities | ||||
Trade and other payables | 235 | 217 | ||
Intercompany accounts | 348 | 311 | ||
Income and other taxes payable | 25 | 6 | ||
Long-term debt due within one year | 1 | |||
Total current liabilities | 609 | 534 | ||
Long-term debt | 73 | 78 | ||
Intercompany long-term loans | 1 | |||
Deferred income taxes and other | 170 | 126 | ||
Other liabilities and deferred credits | 175 | 170 | ||
Shareholders' equity | 2,898 | 2,678 | ||
Total liabilities and shareholders' equity | $ 3,926 | $ 3,586 |
Supplemental Guarantor Financ64
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||||
Net earnings | $ 70 | $ 59 | $ 128 | $ 81 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 196 | 229 | ||
Cash flows from operating activities | 324 | 310 | ||
Investing activities | ||||
Additions to property, plant and equipment | (111) | (302) | ||
Acquisition of business, net of cash acquired | (1) | |||
Other | 1 | |||
Proceeds from disposals of property, plant and equipment | 8 | |||
Cash flows used for investing activities | (103) | (302) | ||
Financing activities | ||||
Dividend payments | (78) | (76) | ||
Stock repurchase | (10) | |||
Net change in bank indebtedness | (12) | 1 | ||
Change in revolving credit facility | (50) | 60 | ||
Proceeds from receivables securitization facility | 25 | 140 | ||
Repayments of receivables securitization facility | (35) | (40) | ||
Repayments of long-term debt | (63) | (40) | ||
Other | 1 | (3) | ||
Cash flows (used for) provided from financing activities | (212) | 32 | ||
Net increase in cash and cash equivalents | 9 | 40 | ||
Impact of foreign exchange on cash | 9 | 2 | ||
Cash and cash equivalents at beginning of period | 125 | 126 | ||
Cash and cash equivalents at end of period | 143 | 168 | 143 | 168 |
Consolidating Adjustments [Member] | ||||
Operating activities | ||||
Net earnings | (124) | (101) | (273) | (197) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 273 | 197 | ||
Financing activities | ||||
Increase in long-term advances to related parties | 79 | 4,261 | ||
Decrease in long-term advances to related parties | (79) | (4,261) | ||
Parent [Member] | ||||
Operating activities | ||||
Net earnings | 70 | 59 | 128 | 81 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 43 | (4,288) | ||
Cash flows from operating activities | 171 | (4,207) | ||
Financing activities | ||||
Dividend payments | (78) | (76) | ||
Stock repurchase | (10) | |||
Change in revolving credit facility | (50) | 60 | ||
Repayments of long-term debt | (63) | (38) | ||
Decrease in long-term advances to related parties | 12 | 4,261 | ||
Other | 1 | (3) | ||
Cash flows (used for) provided from financing activities | (178) | 4,194 | ||
Net increase in cash and cash equivalents | (7) | (13) | ||
Cash and cash equivalents at beginning of period | 17 | 49 | ||
Cash and cash equivalents at end of period | 10 | 36 | 10 | 36 |
Guarantor Subsidiaries [Member] | ||||
Operating activities | ||||
Net earnings | 85 | 74 | 171 | 129 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (176) | 4,205 | ||
Cash flows from operating activities | (5) | 4,334 | ||
Investing activities | ||||
Additions to property, plant and equipment | (61) | (246) | ||
Acquisition of business, net of cash acquired | (1) | |||
Cash flows used for investing activities | (61) | (247) | ||
Financing activities | ||||
Net change in bank indebtedness | (12) | 1 | ||
Repayments of long-term debt | (1) | |||
Increase in long-term advances to related parties | (4,089) | |||
Decrease in long-term advances to related parties | 67 | |||
Cash flows (used for) provided from financing activities | 55 | (4,089) | ||
Net increase in cash and cash equivalents | (11) | (2) | ||
Cash and cash equivalents at beginning of period | 14 | 2 | ||
Cash and cash equivalents at end of period | 3 | 3 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Operating activities | ||||
Net earnings | 39 | 27 | 102 | 68 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 56 | 115 | ||
Cash flows from operating activities | 158 | 183 | ||
Investing activities | ||||
Additions to property, plant and equipment | (50) | (56) | ||
Other | 1 | |||
Proceeds from disposals of property, plant and equipment | 8 | |||
Cash flows used for investing activities | (42) | (55) | ||
Financing activities | ||||
Proceeds from receivables securitization facility | 25 | 140 | ||
Repayments of receivables securitization facility | (35) | (40) | ||
Repayments of long-term debt | (1) | |||
Increase in long-term advances to related parties | (79) | (172) | ||
Cash flows (used for) provided from financing activities | (89) | (73) | ||
Net increase in cash and cash equivalents | 27 | 55 | ||
Impact of foreign exchange on cash | 9 | 2 | ||
Cash and cash equivalents at beginning of period | 94 | 75 | ||
Cash and cash equivalents at end of period | $ 130 | $ 132 | $ 130 | $ 132 |