Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UFS | |
Entity Registrant Name | DOMTAR CORPORATION | |
Entity Central Index Key | 0001381531 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 50,245,328 | |
Entity File Number | 001-33164 | |
Entity Tax Identification Number | 20-5901152 | |
Entity Address, Address Line One | 234 Kingsley Park Drive | |
Entity Address, City or Town | Fort Mill | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29715 | |
City Area Code | 803 | |
Local Phone Number | 802-7500 | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | |
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Unaudited) shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Income Statement [Abstract] | |
Sales | $ 1,031 |
Operating expenses | |
Cost of sales, excluding depreciation and amortization | 906 |
Depreciation and amortization | 58 |
Selling, general and administrative | 66 |
Other operating (income) loss, net (NOTE 7) | 2 |
Operating expenses | 1,032 |
Operating income (loss) | (1) |
Interest expense, net | 14 |
Non-service components of net periodic benefit cost (NOTE 6) | (4) |
Loss before income taxes and equity loss | (11) |
Income tax expense (NOTE 8) | 3 |
Equity method investment loss, net of taxes | 1 |
Loss from continuing operations | (15) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | 20 |
Net (loss) earnings | $ 5 |
Basic net (loss) earnings | |
Loss from continuing operations | $ / shares | $ (0.27) |
(Loss) earnings from discontinued operations | $ / shares | 0.36 |
Basic net (loss) earnings | $ / shares | 0.09 |
Diluted net (loss) earnings | |
Loss from continuing operations | $ / shares | (0.27) |
(Loss) earnings from discontinued operations | $ / shares | 0.36 |
Diluted net (loss) earnings | $ / shares | $ 0.09 |
Weighted average number of common shares outstanding (millions) | |
Basic | shares | 56.1 |
Diluted | shares | 56.2 |
Cash dividends per common share | $ / shares | $ 0.46 |
Net (loss) earnings | $ 5 |
Net derivative gains (losses) on cash flow hedges: | |
Net gains (losses) arising during the period, net of tax of $(3) (2020 – $16) | (49) |
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of $(1) (2020 – $(2)) | 7 |
Foreign currency translation adjustments | (74) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $(1) (2020 – $(1)) | 1 |
Other comprehensive income (loss) | (115) |
Comprehensive income (loss) | $ (110) |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net (losses) gains arising during the period, tax | $ (3) | $ 16 |
Reclassification adjustment for losses included in net earnings 9loss), net, tax | (1) | (2) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax | $ (1) | $ (1) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 671 | $ 309 |
Receivables, less allowances of $5 and $6 | 450 | 380 |
Inventories (NOTE 9) | 600 | 630 |
Prepaid expenses | 53 | 50 |
Income and other taxes receivable | 49 | 54 |
Current assets held for sale (NOTE 3) | 1,133 | |
Total current assets | 1,823 | 2,556 |
Property, plant and equipment, net | 2,022 | 2,023 |
Operating lease right-of-use assets (NOTE 10) | 55 | 59 |
Intangible assets, net | 29 | 29 |
Other assets | 192 | 189 |
Total assets | 4,121 | 4,856 |
Current liabilities | ||
Bank indebtedness | 4 | |
Trade and other payables | 504 | 484 |
Income and other taxes payable | 16 | 15 |
Operating lease liabilities due within one year (NOTE 10) | 19 | 20 |
Long-term debt due within one year | 301 | 13 |
Current liabilities held for sale (NOTE 3) | 295 | |
Total current liabilities | 844 | 827 |
Long-term debt | 503 | 1,084 |
Operating lease liabilities (NOTE 10) | 47 | 50 |
Deferred income taxes and other | 324 | 321 |
Other liabilities and deferred credits | 312 | 314 |
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 | 1,493 | 1,717 |
Retained earnings | 817 | 846 |
Accumulated other comprehensive loss | (220) | (304) |
Total shareholders' equity | 2,091 | 2,260 |
Total liabilities and shareholders' equity | $ 4,121 | $ 4,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 5 | $ 6 |
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 | 14,758,312 | 9,806,566 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ 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, 2019 | $ 2,376 | $ 1 | $ 1,770 | $ 998 | $ (393) |
Balance, Shares at Dec. 31, 2019 | 56,900,000 | ||||
Stock-based compensation, net of tax | (1) | (1) | |||
Stock-based compensation, net of tax, shares | 100,000 | ||||
Net (loss) earnings | 5 | 5 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax of $(3) (2020 – $16) | (49) | (49) | |||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of $(1) (2020 – $(2)) | 7 | 7 | |||
Foreign currency translation adjustments | (74) | (74) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 1 | 1 | |||
Stock repurchase | $ (59) | (59) | |||
Stock repurchase, shares | (1,798,306) | (1,800,000) | |||
Cash dividends declared | $ (25) | (25) | |||
Balance at Mar. 31, 2020 | 2,181 | $ 1 | 1,710 | 978 | (508) |
Balance, Shares at Mar. 31, 2020 | 55,200,000 | ||||
Balance at Dec. 31, 2020 | 2,260 | $ 1 | 1,717 | 846 | (304) |
Balance, Shares at Dec. 31, 2020 | 55,200,000 | ||||
Stock-based compensation, net of tax | (1) | (1) | |||
Stock-based compensation, net of tax, shares | 100,000 | ||||
Net (loss) earnings | (29) | (29) | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax of $(3) (2020 – $16) | 9 | 9 | |||
Less: Reclassification adjustment for (gains) losses included in net (loss) earnings, net of tax of $(1) (2020 – $(2)) | (2) | (2) | |||
Foreign currency translation adjustments | 72 | 72 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 5 | 5 | |||
Stock repurchase | $ (223) | (223) | |||
Stock repurchase, shares | (629,959) | (5,100,000) | |||
Balance at Mar. 31, 2021 | $ 2,091 | $ 1 | $ 1,493 | $ 817 | $ (220) |
Balance, Shares at Mar. 31, 2021 | 50,200,000 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Net gains (losses) arising during the period, tax | $ (3) | $ 16 |
Reclassification adjustment for losses included in net earnings, net, tax | (1) | (2) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax | $ (1) | $ (1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net (loss) earnings | $ (29) | $ 5 |
Adjustments to reconcile net (loss) earnings to cash flows from operating activities | ||
Depreciation and amortization | 64 | 72 |
Deferred income taxes and tax uncertainties (NOTE 8) | (4) | 1 |
Impairment of long-lived assets (NOTE 11) | 6 | |
Net loss on disposition of discontinued operations (NOTE 3) | 32 | |
Stock-based compensation expense | 2 | 1 |
Equity method investment loss, net of taxes | 1 | |
Other | 2 | |
Changes in assets and liabilities, excluding the effect of sale of business | ||
Receivables | (68) | (28) |
Inventories | 32 | 28 |
Prepaid expenses | 3 | (5) |
Trade and other payables | (6) | (16) |
Income and other taxes | 4 | 39 |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (3) | (1) |
Other assets and other liabilities | (2) | (9) |
Cash flows from operating activities | 33 | 88 |
Investing activities | ||
Additions to property, plant and equipment | (51) | (62) |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | |
Cash flows provided from (used for) investing activities | 846 | (62) |
Financing activities | ||
Dividend payments | (26) | |
Stock repurchase | (223) | (59) |
Net change in bank indebtedness | 4 | (10) |
Change in revolving credit facility | 140 | |
Proceeds from receivables securitization facility | 25 | |
Repayments of long-term debt | (294) | |
Other | (3) | (3) |
Cash flows (used for) provided from financing activities | (516) | 67 |
Net increase in cash and cash equivalents | 363 | 93 |
Impact of foreign exchange on cash | (1) | (2) |
Cash and cash equivalents at beginning of period | 309 | 61 |
Cash and cash equivalents at end of period | 671 | 152 |
Supplemental cash flow information | ||
Interest | 18 | 17 |
Income taxes | $ (7) | $ (25) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
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 three 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, 2020, as filed with the Securities and Exchange Commission. The December 31, 2020 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 | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. _________________ RECENT ACCOUNTING PRONOUNCEMENTS FUTURE ACCOUNTING CHANGES TRANSITION AWAY FROM INTERBANK OFFERED RATES On March 12, 2020, the FASB issued ASU 2020-04, “ Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in the ASU are elective and apply to entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company has begun its impact assessment and while its evaluation of this guidance is in the early stages, the Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3. DISCONTINUED OPERATIONS Sale of Personal Care business On March 1, 2021, Domtar completed the previously announced sale of the Company’s Personal Care business to American Industrial Partners (“AIP”) for a purchase price of $920 million in cash, including elements of working capital estimated at $130 million, subject to customary adjustments. Domtar received a net amount of $897 million, which represents the selling price minus the estimated settlements of the net indebtedness and other elements of working capital adjustments. In connection with the sale, the Company entered into Transition Services Agreements with AIP pursuant to which the Company agreed to provide various back-office and information technology support until the business is fully separated from Domtar. The results of operations of the Company’s Personal Care business were reclassified to discontinued operations. These results have been summarized in (Loss) earnings from discontinued operations, net of taxes on the Company’s Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) for each period presented. The Consolidated Statements of Cash Flows were not reclassified to reflect discontinued operations. Personal Care was previously disclosed as a separate reportable business segment. Major components of (loss) earnings from discontinued operations: For the three months ended March 31, March 31, 2021 2020 $ $ Sales 154 266 Operating expenses Cost of sales, excluding depreciation and amortization 111 196 Depreciation and amortization 10 14 Selling, general and administrative 24 36 Closure and restructuring costs 1 — Other operating loss, net 1 — 147 246 Operating income 7 20 Net loss on disposition of discontinued operations (32 ) — (Loss) earnings from discontinued operations before income taxes (25 ) 20 Income tax benefit (3 ) — Net (loss) earnings from discontinued operations (22 ) 20 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At December 31, 2020 $ Assets Receivables 110 Inventories 138 Prepaid expenses 3 Income and other taxes receivable 3 Property, plant and equipment, net 351 Operating lease right-of-use assets 15 Intangible assets, net (2)(3) 554 Other assets 2 Total assets 1,176 Loss on classification as held for sale (43 ) Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 1,133 Liabilities Trade and other payables 128 Income and other taxes payable 12 Operating lease liabilities due within one year 8 Long-term debt 1 Operating lease liabilities 8 Deferred income taxes and other 130 Other liabilities and deferred credits 8 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 295 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheet at December 31, 2020. (2) Intangible assets, net at December 31, 2020 are comprised of $290 million of indefinite-lived assets and $264 million of definite-lived assets. (3) Indefinite-lived intangible assets of the disposal group held for sale consists of trade names ($248 million) and catalog rights ($42 million) following the business acquisitions in the Company’s former Personal Care segment. Cash Flows from Discontinued Operations: For the three months ended March 31, March 31, 2021 2020 $ $ Cash flows from operating activities 16 6 Cash flows used for investing activities (3 ) (8 ) Use of proceeds As previously announced, the Company intends to use $600 million of the proceeds of the sale to reduce debt and $300 million to repurchase shares. During the quarter, the Company used $223 million of the proceeds to repurchase shares and repaid the $294 million of outstanding indebtedness under its Term Loan Agreement. Additionally, on April 8, 2021, the Company redeemed the 4.4% Notes, originally due in 2022, at a redemption price of 100 percent of the principal amount of $300 million, plus accrued and unpaid interest, as well as a make-whole premium of $11 million. As at March 31, 2021, the 4.4% Notes were reclassified and presented under Long-term debt due within one year on the Consolidated Balance Sheets. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 4. _________________ 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, interest rates and prices of the Company’s common stock with regard to the Company’s stock-based compensation program. 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 Company does not hold derivative financial instruments for trading purposes. CREDIT RISK The Company is exposed to credit risk on accounts receivable 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 March 31, 2021, two customers located in the U.S. represented 13% or $59 million, and 11% or $51 million, respectively, of the Company’s receivables (December 31, 2020 – two customers located in the U.S. represented 15% or $58 million, and 12% or $46 million, respectively). 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 securitization, term loan 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. EQUITY RISK The Company is exposed to changes in share prices with regard to its stock-based compensation program. The Company manages its exposure through the use of derivative instruments such as equity swap contracts. In March 2020, the Company entered into a total return swap agreement covering 500,000 common shares maturing on March 4, 2022. 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 33 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of March 31, 2021 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 2021 (1) 6,575,000 $ 19 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) Represents the remaining nine months of 2021 (2) MMBtu: Millions of British thermal units The natural gas derivative contracts were effective as of March 31, 2021. FOREIGN CURRENCY RISK Cash flow hedges: The Company has manufacturing operations in the United States and Canada. As a result, it is exposed to movements in foreign currency exchange rates in Canada. Moreover, certain assets and liabilities are denominated in Canadian dollars 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. 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 24 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 March 31, 2021 to hedge forecasted purchases and sales: Currency exposure hedged Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate CAD/USD 2021 (1) 555 CAD 78% 1 USD = 1.3334 1 USD = 1.3520 CAD/USD 2022 442 CAD 47% 1 USD = 1.3327 1 USD = 1.3405 CAD/USD 2023 66 CAD 7% 1 USD = 1.2685 1 USD = 1.2685 (1) Represents the remaining nine months of 2021 The foreign exchange derivative contracts were effective as of March 31, 2021. 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) and (c) below) at March 31, 2021 and December 31, 2020, 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: March 31, 2021 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 34 — 34 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 14 — 14 — (a) Other assets Total Assets 49 — 49 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Other liabilities and deferred credits Total Liabilities 4 — 4 — Other instruments: Stock-based compensation - liability awards 4 4 — — Trade and other payables Stock-based compensation - liability awards 13 13 — — Other liabilities and deferred credits Equity swap contracts 5 5 — — Other assets Long-term debt due within one year 312 — 312 — (b) Long-term debt due within one year Long-term debt 632 — 632 — (c) Long-term debt The net cumulative loss recorded in Accumulated other comprehensive loss relating to natural gas contracts is $2 million at March 31, 2021, which will be recognized in Cost of sales upon maturity of the derivatives at the then prevailing values, which may be different from those at March 31, 2021. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $47 million at March 31, 2021, of which a gain of $33 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 March 31, 2021. Fair Value of financial instruments at: December 31, 2020 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 31 — 31 — (a) Prepaid expenses Currency derivatives 16 — 16 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 48 — 48 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Natural gas swap contracts 3 — 3 — (a) Other liabilities and deferred credits Total Liabilities 6 — 6 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 11 11 — — Other liabilities and deferred credits Equity swap contracts 2 2 Other assets Long-term debt due within one year 13 — 13 — (b) Long-term debt due within one year Long-term debt 1,221 — 1,221 — (c) 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: Foreign currency forward and option contracts are valued using standard valuation models. 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 March 31, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $301 million and $13 million at March 31, 2021 and December 31, 2020, respectively. ( c ) The carrying value of the Company’s long-term debt is $503 million and $1,084 million at March 31, 2021 and December 31, 2020, 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. |
(Loss) Earnings Per Common Shar
(Loss) Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Common Share | NOTE 5. _________________ (LOSS) EARNINGS PER COMMON SHARE The following table provides the reconciliation between basic and diluted (loss) earnings per common share: For the three months ended March 31, March 31, 2021 2020 Loss from continuing operations $ (7 ) $ (15 ) (Loss) earnings from discontinued operations, net of taxes $ (22 ) $ 20 Net (loss) earnings $ (29 ) $ 5 Weighted average number of common shares outstanding (millions) 53.5 56.1 Effect of dilutive securities (millions) — 0.1 Weighted average number of diluted common shares outstanding (millions) 53.5 56.2 Basic net (loss) earnings per common share (in dollars) Loss from continuing operations $ (0.13 ) $ (0.27 ) (Loss) earnings from discontinued operations $ (0.41 ) $ 0.36 Basic net (loss) earnings per common share $ (0.54 ) $ 0.09 Diluted Loss from continuing operations $ (0.13 ) $ (0.27 ) (Loss) earnings from discontinued operations $ (0.41 ) $ 0.36 Diluted $ (0.54 ) $ 0.09 The following table provides the securities that could potentially dilute basic (loss) earnings per common share in the future, but were not included in the computation of diluted (loss) earnings per common share because to do so would have been anti-dilutive: For the three months ended March 31, March 31, 2021 2020 Options to purchase common shares 191,720 410,547 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 6. _________________ 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 months ended March 31, 2021, the pension expense was $10 million (2020 – $11 million). 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: For the three months ended March 31, March 31, 2021 2020 $ $ Service cost 7 7 Interest expense 8 11 Expected return on plan assets (16 ) (17 ) Amortization of net actuarial loss 2 2 Net periodic benefit cost 1 3 The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than the service cost, are presented in Non-service components of net periodic benefit cost on the Consolidated Statements of Earnings (Loss) and Comprehensive (Loss) Income. For the three months ended March 31, 2021, the Company contributed $3 million (2020 – $2 million) to the pension plans and $1 million (2020 – $1 million) to the other post-retirement benefit plans. |
Other Operating (Income) Loss,
Other Operating (Income) Loss, Net | 3 Months Ended |
Mar. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Loss, Net | NOTE 7. _________________ OTHER OPERATING (INCOME) LOSS, NET Other operating (income) loss, net is an aggregate of both recurring and non-recurring 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 March 31, March 31, 2021 2020 $ $ Bad debt expense (2 ) 4 Environmental provision 1 1 Foreign exchange loss (gain) 1 (2 ) Other (2 ) (1 ) Other operating (income) loss, net (2 ) 2 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 8. _________________ INCOME TAXES For the first quarter of 2021, the Company had no income tax expense or benefit, as $1 million of current income tax benefit was offset by the deferred income tax expense of $1 million. This compares to an income tax expense of $3 million in the first quarter of 2020, consisting of $3 million of current income tax benefit and a deferred income tax expense of $6 million. The Company received refunds, net of income tax payments, of $7 million during the first quarter of 2021. The effective tax rate was 0% compared with an effective tax rate of -27% in the first quarter of 2020. The effective tax rate for the first quarter of 2021 was impacted by additional tax expense on stock-based compensation which vested during the quarter. Also, a weaker US dollar resulted in an increase in the Company’s deferred tax liability on unremitted foreign earnings. The effective tax rate for the first quarter of 2020 was impacted by an increase in the valuation allowance related to the expected realization of certain U.S. state tax credits. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 9. _________________ INVENTORIES The following table presents the components of inventories: March 31, December 31, 2021 2020 $ $ Work in process and finished goods 292 321 Raw materials 103 107 Operating and maintenance supplies 205 202 600 630 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 10. _________________ LEASES In the normal course of business, the Company enters into operating and finance leases mainly for manufacturing and warehousing facilities, corporate offices, motor vehicles, mobile equipment and manufacturing equipment. While the Company’s lease payments are generally fixed over the lease term, some leases may include price escalation terms that are fixed at the lease commencement date. The Company has remaining lease terms ranging from 1 year to 12 years, some of which may include options to extend the leases for up to 10 years, and some of which may include options to terminate the leases within 1 year. The components of lease expense were as follows: For the three months ended March 31, March 31, 2021 2020 $ $ Operating lease expense 6 5 Supplemental cash flow information related to leases was as follows: For the three months ended March 31, March 31, 2021 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6 5 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 1 2 Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2021 2020 $ $ Operating leases Operating leases right-of-use assets 55 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 47 50 66 70 Finance leases Property, plant and equipment 11 11 Accumulated depreciation (3 ) (3 ) 8 8 Long-term debt due within one year 1 1 Long-term debt 9 9 10 10 Weighted-average remaining lease term Operating leases 4.7 years 4.7 years Finance leases 8.6 years 8.8 years Weighted-average discount rate Operating leases 4.4 % 4.4 % Finance leases 6.1 % 6.1 % Maturities of lease liabilities at March 31, 2021 were as follows: Operating leases Finance leases March 31, March 31, 2021 2021 $ $ 2021 (1) 15 1 2022 18 2 2023 15 2 2024 10 2 2025 6 1 Thereafter 9 5 Total lease payments 73 13 Less: Imputed interest 7 3 Total lease liabilities 66 10 (1) Represents the remaining nine months of 2021. |
Closure and Restructuring Costs
Closure and Restructuring Costs and Impairment of Long-Lived Assets | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Impairment of Long-Lived Assets | NOTE 11. _________________ CLOSURE AND RESTRUCTURING COSTS AND IMPAIRMENT OF LONG-LIVED ASSETS Cost reduction program The Company is implementing a cost savings program. As part of this program, on August 7, 2020, the Company announced the permanent closure of the uncoated freesheet manufacturing at the Kingsport, Tennessee and Port Huron, Michigan mills, the remaining paper machine at the Ashdown, Arkansas mill and the converting center in Ridgefields, Tennessee. These actions will reduce the Company’s annual uncoated freesheet paper capacity by approximately 721,000 short tons, and result in a workforce reduction of approximately 750 employees. The Kingsport and Ashdown paper machines, which have been idled since April 2020, did not recommence operations. The Ridgefields converting center ceased operations at the end of the third quarter of 2020, while the Port Huron mill shut down at the end of February 2021. The Company plans to enter the linerboard market with the conversion of the Kingsport paper machine. Domtar estimates the conversion cost to be between $300 and $350 million. During the quarter, the Company also completed the conversion of the Ashdown mill to 100% softwood and fluff pulp, which was necessary for an eventual expansion into containerboard. For the three months ended March 31, 2021, the Company recorded $6 million of accelerated depreciation under Impairment of long-lived assets, and $3 million of severance and termination costs under Closure and restructuring costs on the Consolidated Statement of Earnings (Loss) and Comprehensive Income (Loss). Additionally , recorded $8 million under Asset conversion costs as part of the conversion of its Kingsport, Tennessee mill to a linerboard mill. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended |
Mar. 31, 2021 | |
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 derivative gains (losses) on cash flow hedges Pension items ( 2) Post-retirement benefit items ( 2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2019 (5 ) (197 ) 11 (202 ) (393 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 23 N/A N/A N/A 23 Net loss N/A (21 ) (1 ) N/A (22 ) Foreign currency items N/A N/A N/A 63 63 Other comprehensive income (loss) before reclassifications 27 (21 ) (1 ) 63 68 Amounts reclassified from Accumulated other comprehensive loss 12 11 (2 ) — 21 Net current period other comprehensive income (loss) 39 (10 ) (3 ) 63 89 Balance at December 31, 2020 34 (207 ) 8 (139 ) (304 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 7 N/A N/A N/A 7 Foreign currency items N/A N/A N/A 72 72 Other comprehensive income before reclassifications 9 — — 72 81 Amounts reclassified from Accumulated other comprehensive loss (2 ) 5 — — 3 Net current period other comprehensive income 7 5 — 72 84 Balance at March 31, 2021 41 (202 ) 8 (67 ) (220 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected 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 For the three months ended March 31, 2021 March 31, 2020 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) — (5 ) Currency options and forwards (1) 10 (4 ) Net investment hedge (2) (9 ) — Total before tax 1 (9 ) Tax benefit 1 2 Net of tax 2 (7 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (2 ) (2 ) Discontinued operations (4 ) — Total before tax (6 ) (2 ) Tax benefit 1 1 Net of tax (5 ) (1 ) (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (2) These amounts are included in (Loss) earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 13. _________________ SHAREHOLDERS’ EQUITY DIVIDENDS On February 18, 2020, the Company’s Board of Directors approved a quarterly dividend of $0.455 per share, to be paid to holders of the Company’s common stock. Total dividends of approximately $25 million were paid on April 15, 2020 to shareholders of record on April 2, 2020. On May 5, 2020, due to the unprecedented market conditions and uncertainty caused by COVID-19, the Company suspended the payment of its regular quarterly dividend and stock repurchase program in order to preserve cash and provide additional . STOCK REPURCHASE PROGRAM The Company’s Board of Directors has authorized a stock repurchase program (“the Program”) of up to $1.6 billion. 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. On February 11, 2021, the Company announced that it will resume its stock repurchase program. The Board of Directors will continue to evaluate the Company’s capital return program based upon customary considerations, including market conditions. On March 2, 2021, the Company announced that it entered into an accelerated share repurchase (“ASR”) agreement with JPMorgan Chase Bank, N.A. to repurchase $200 million of its common stock with available cash on hand, including cash received from the divestiture of its Personal Care segment closed on March 1, 2021. Under the ASR agreement, the Company paid $200 million in exchange for an initial delivery of 4,430,906 shares. The final number of shares to be repurchased by Domtar will be based on the average of the daily volume-weighted average stock prices of Domtar’s common stock during the valuation period of the agreement, less a discount and subject to adjustments. The resulting adjustments may affect the total amount spent by the Company or the aggregate number of shares it repurchases. During the first quarter of 2021, in addition to the ASR, the Company repurchased 629,959 shares on the open market at an average price of $35.72 for a total cost of $23 million. During the first quarter of 2020, the Company repurchased 1,798,306 shares at an average price of $33.05 for a total cost of $59 million. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. _________________ COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL MATTERS The Company is subject to environmental laws and regulations enacted by federal, provincial, state and local authorities. The Company may also incur substantial costs in relation to enforcement actions (including orders requiring corrective measures, installation of pollution control equipment or other remedial actions) as a result of violations of, or liabilities under, environmental laws and regulations applicable to its past and present properties. The Company’s ongoing efforts to identify potential environmental concerns that may be associated with such properties may result in additional environmental costs and liabilities which cannot be reasonably estimated at this time. A former owner of the Company’s Dryden, Ontario manufacturing site (the "Dryden Property") operated a chlor-alkali plant during the 1960s and 1970s, during which time, mercury and other pollutants were used and discharged into the environment. In conjunction with the sale and redevelopment of the Dryden Property, the Province of Ontario (the “Province”) provided a broad indemnity (the "Indemnity") in 1985 to the then purchaser of the Dryden Property and its successors and assigns with respect to the discharge of any pollutants, including mercury, by the historical operators of the Dryden Property. This Indemnity subsequently was assigned to the Company in connection with its 2007 purchase of the Dryden Property. As the current owner of the Dryden Property, the Company is actively engaged with the Province with respect to the management of the historical contamination. The Province issued a Director's order under environmental laws to certain prior owners of the Dryden Property in connection with a nearby waste disposal site that never has been owned by the Company. The Director's order required certain work to be conducted by those prior owners. The prior owners asserted that the Indemnity covered the work required by the Director’s order. Following extensive litigation, the Supreme Court of Canada found, among other things, that the Indemnity covered third-party claims, but not first-party claims, such as the Director's order. In the future, the Province may challenge whether the Company has the benefit of the Indemnity. In addition to the Indemnity, Domtar has other recourses relating to the historical contamination. The situation involving the historical contamination is continuing to develop, and the Company cannot predict its outcome. While the Company currently does not believe that it will be required to incur costs that would have a material impact on its results of operations or financial condition, there is no certainty that this is in fact the case. The following table reflects changes in the reserve for environmental remediation and asset retirement obligations: March 31, 2021 $ Balance at beginning of year 47 Additions and other changes 1 Environmental spending (1 ) Balance at end of period 47 The U.S. Environmental Protection Agency (the “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 former operating sites due to possible soil, sediment or groundwater contamination. 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 March 31, 2021, 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. 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, compliance with laws, 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 March 31, 2021, 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 March 31, 2021 the Company has not recorded a liability associated with these indemnifications, as it does not expect to make any payments pertaining to these indemnifications. CLIMATE CHANGE AND AIR QUALITY REGULATION Various national and local laws and regulations relating to climate change have been established or are emerging in jurisdictions where the Company currently has, or may have in the future, manufacturing facilities or investments. The EPA repealed the Clean Power Plan and replaced it with the “Affordable Clean Energy” (“ACE”) rule. The ACE rule was legally challenged in the U.S. Court of Appeals for the D.C. Circuit. The Court ruled the EPA wrongly understood the Clean Air Act and the ACE rule and its embedded repeal of the Clean Power Plan was vacated and sent back to the EPA for further consideration. Regardless of the outcome of the EPA’s further consideration, 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 province of Quebec has a greenhouse gases (“GHG”) cap-and-trade system 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 its facilities to be disproportionately affected by these measures compared to the other pulp and paper producers located in these provinces. The Government of Canada has established a federal carbon pricing system in provinces that do not already impose a cost on carbon emissions. The Government of Canada has imposed its carbon pricing program for regulating GHG emissions in Ontario, which took effect on January 1, 2019. To reduce GHG emissions and recognize the unique circumstances of the province’s diverse economy, Ontario finalized its own GHG Emission Performance Standards regulation. The Ontario Government has been in discussions with the Canadian Government to replace the federal program in Ontario with its provincial program. The Canadian Government has accepted Ontario’s program as an alternative to the federal program and work to transition has begun. The Company does not expect to be disproportionately affected compared with other pulp and paper producers located in Ontario. The EPA proposed to revise its Industrial Boiler Maximum Achievable Control Technology Standard (“MACT”), or Boiler MACT, in a notice published on August 24, 2020. The proposed rule is a response to two court decisions that remanded certain issues for further review by the EPA, and it includes revisions to 34 different emission limitations that could apply to some of the Company’s facilities. Although the EPA has indicated that a small number of facilities may need to reduce emissions further compared to the current limits, the Company does not expect its facilities to be disproportionately affected compared to other U.S. pulp and paper producers. |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 15. _________________ SEGMENT DISCLOSURES Following the sale of the Company’s Personal Care business on March 1, 2021, the Company now operates as a single • Pulp and Paper – consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, hardwood and fluff pulp and high quality airlaid and ultrathin laminated cores . 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 SEGMENT DATA March 31, 2021 March 31, 2020 $ $ Sales by product group Communication papers 488 623 Specialty and packaging papers 137 150 Market pulp 308 247 Absorbent core materials 11 11 Consolidated sales 944 1,031 Operating income (loss) from continuing operations (1) Pulp and Paper 12 4 Corporate (10 ) (5 ) Consolidated operating income (loss) from continuing operations 2 (1 ) Interest expense, net 15 14 Non-service components of net periodic benefit cost (6 ) (4 ) Loss before income taxes and equity loss (7 ) (11 ) Income tax expense — 3 Equity method investment loss, net of taxes — 1 Loss from continuing operations (7 ) (15 ) (Loss) earnings from discontinued operations, net of taxes (22 ) 20 Net (loss) earnings (29 ) 5 (1) The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. For the three months ended March 31, 2021, the Company recognized $4 million as a reduction of costs related to this program (CDN $5 million) ($3 million in Cost of sales (CDN $4 million) and $1 million in Selling, general and administrative (CDN $1 million)) |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2021 | |
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’s significant 100% owned domestic subsidiaries, including Domtar Paper Company, LLC, Domtar Industries LLC (and subsidiaries, excluding Domtar Funding LLC), Domtar A.W. LLC and EAM Corporation, (“Guarantor Subsidiaries”), on a joint and several basis. The Guaranteed Debt is not guaranteed by certain of Domtar’s foreign and non-significant domestic subsidiaries, all 100% owned, (collectively the “Non-Guarantor Subsidiaries”). A 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. Prior to the sale of the Company’s Personal Care Business on March 1, 2021, Attends Healthcare Products Inc., Associated Hygienic Products LLC and Home Delivery Incontinent Supplies Co, were Guarantor Subsidiaries. The following supplemental condensed consolidating financial information sets forth, on an unconsolidated basis, the Balance Sheets at March 31, 2021 and December 31, 2020, the Statements of Earnings (Loss) and Comprehensive Income (Loss) and Cash Flows for the three months ended March 31, 2021 and 2020 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 March 31, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 814 403 (273 ) 944 Operating expenses Cost of sales, excluding depreciation and amortization — 759 323 (273 ) 809 Depreciation and amortization — 38 16 — 54 Selling, general and administrative 2 29 33 — 64 Impairment of long-lived assets — 6 — — 6 Closure and restructuring costs — 3 — — 3 Asset conversion costs — 8 — — 8 Other operating income, net (2 ) — — — (2 ) — 843 372 (273 ) 942 Operating (loss) income — (29 ) 31 — 2 Interest expense (income), net 16 14 (15 ) — 15 Non-service components of net periodic benefit cost — (2 ) (4 ) — (6 ) (Loss) earnings before income taxes (16 ) (41 ) 50 — (7 ) Income tax (benefit) expense (9 ) (5 ) 14 — — Share in earnings of equity accounted investees (9 ) 43 — (34 ) — (Loss) earnings from continuing operations (16 ) 7 36 (34 ) (7 ) (Loss) earnings from discontinued operations, net of taxes (13 ) (16 ) 7 — (22 ) Net (loss) earnings (29 ) (9 ) 43 (34 ) (29 ) Other comprehensive income 84 82 76 (158 ) 84 Comprehensive income 55 73 119 (192 ) 55 For the three months ended March 31, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE LOSS Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 910 349 (228 ) 1,031 Operating expenses Cost of sales, excluding depreciation and amortization — 844 290 (228 ) 906 Depreciation and amortization — 43 15 — 58 Selling, general and administrative 2 4 60 — 66 Other operating loss (income), net — 3 (1 ) — 2 2 894 364 (228 ) 1,032 Operating (loss) income (2 ) 16 (15 ) — (1 ) Interest expense (income), net 16 19 (21 ) — 14 Non-service components of net periodic benefit cost — (1 ) (3 ) — (4 ) (Loss) earnings before income taxes and equity loss (18 ) (2 ) 9 — (11 ) Income tax (benefit) expense (2 ) 7 (2 ) — 3 Equity method investment loss, net of taxes — 1 — — 1 Share in earnings of equity accounted investees 21 26 — (47 ) — Earnings from continuing operations 5 16 11 (47 ) (15 ) Earnings from discontinued operations, net of taxes — 5 15 — 20 Net earnings 5 21 26 (47 ) 5 Other comprehensive loss (115 ) (117 ) (73 ) 190 (115 ) Comprehensive loss (110 ) (96 ) (47 ) 143 (110 ) March 31, 2021 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 646 2 23 — 671 Receivables 2 127 321 — 450 Inventories — 391 209 — 600 Prepaid expenses 5 43 5 — 53 Income and other taxes receivable 44 — 11 (6 ) 49 Intercompany accounts 942 989 618 (2,549 ) — Total current assets 1,639 1,552 1,187 (2,555 ) 1,823 Property, plant and equipment, net — 1,348 674 — 2,022 Operating lease right-of-use assets — 44 11 — 55 Intangible assets, net — 24 5 — 29 Investments in affiliates 2,746 1,834 — (4,580 ) — Intercompany long-term advances 5 — 1,266 (1,271 ) — Other assets 17 39 148 (12 ) 192 Total assets 4,407 4,841 3,291 (8,418 ) 4,121 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 4 — — 4 Trade and other payables 20 333 151 — 504 Intercompany accounts 859 667 1,023 (2,549 ) — Income and other taxes payable 10 9 3 (6 ) 16 Operating lease liabilities due within one year — 14 5 — 19 Long-term debt due within one year 300 — 1 — 301 Total current liabilities 1,189 1,027 1,183 (2,555 ) 844 Long-term debt 494 — 9 — 503 Operating lease liabilities — 41 6 — 47 Intercompany long-term loans 609 662 — (1,271 ) — Deferred income taxes and other 1 238 97 (12 ) 324 Other liabilities and deferred credits 23 127 162 — 312 Shareholders' equity 2,091 2,746 1,834 (4,580 ) 2,091 Total liabilities and shareholders' equity 4,407 4,841 3,291 (8,418 ) 4,121 December 31, 2020 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 208 5 96 — 309 Receivables — 65 315 — 380 Inventories — 425 205 — 630 Prepaid expenses 8 37 5 — 50 Income and other taxes receivable 36 — 18 — 54 Intercompany accounts 759 902 433 (2,094 ) — Asset held for sale — 488 648 (3 ) 1,133 Total current assets 1,011 1,922 1,720 (2,097 ) 2,556 Property, plant and equipment, net — 1,348 675 — 2,023 Operating lease right-of-use assets — 48 11 — 59 Intangible assets, net — 24 5 — 29 Investments in affiliates 3,558 2,169 — (5,727 ) — Intercompany long-term advances 5 — 1,157 (1,162 ) — Other assets 11 41 143 (6 ) 189 Total assets 4,585 5,552 3,711 (8,992 ) 4,856 Liabilities and shareholders' equity Current liabilities Trade and other payables 26 294 167 (3 ) 484 Intercompany accounts 677 491 926 (2,094 ) — Income and other taxes payable 3 11 1 — 15 Operating lease liabilities due within one year — 15 5 20 Long-term debt due within one year 12 — 1 — 13 Liabilities held for sale — 121 174 — 295 Total current liabilities 718 932 1,274 (2,097 ) 827 Long-term debt 1,075 — 9 — 1,084 Operating lease liabilities — 44 6 — 50 Intercompany long-term loans 509 653 — (1,162 ) — Deferred income taxes and other — 237 90 (6 ) 321 Other liabilities and deferred credits 23 128 163 — 314 Shareholders' equity 2,260 3,558 2,169 (5,727 ) 2,260 Total liabilities and shareholders' equity 4,585 5,552 3,711 (8,992 ) 4,856 For the three months ended March 31, 2021 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (29 ) (9 ) 43 (34 ) (29 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings (7 ) 96 (61 ) 34 62 Cash flows (used for) provided from operating activities (36 ) 87 (18 ) — 33 Investing activities Additions to property, plant and equipment — (40 ) (11 ) — (51 ) Proceeds from sale of business, net of cash disposed — — 897 — 897 Cash flows (used for) provided from investing activities — (40 ) 886 — 846 Financing activities Stock repurchase (223 ) — — — (223 ) Net change in bank indebtedness — 4 — — 4 Repayments of long-term debt (294 ) — — — (294 ) Increase in long-term advances to related parties — (54 ) (940 ) 994 — Decrease in long-term advances to related parties 994 — — (994 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 474 (50 ) (940 ) — (516 ) Net increase (decrease) in cash and cash equivalents 438 (3 ) (72 ) — 363 Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of period 208 5 96 — 309 Cash and cash equivalents at end of period 646 2 23 — 671 For the three months ended March 31, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 5 21 26 (47 ) 5 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 7 40 (11 ) 47 83 Cash flows from operating activities 12 61 15 — 88 Investing activities Additions to property, plant and equipment — (38 ) (24 ) — (62 ) Cash flows used for investing activities — (38 ) (24 ) — (62 ) Financing activities Dividend payments (26 ) — — — (26 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility 140 — — — 140 Proceeds from receivables securitization facility — — 25 — 25 Increase in long-term advances to related parties — (22 ) — 22 — Decrease in long-term advances to related parties 22 — — (22 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 74 (32 ) 25 — 67 Net increase (decrease) in cash and cash equivalents 86 (9 ) 16 — 93 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 87 2 63 — 152 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Future Accounting Changes [Member] | |
Transition Away from Interbank Offered Rates | FUTURE ACCOUNTING CHANGES TRANSITION AWAY FROM INTERBANK OFFERED RATES On March 12, 2020, the FASB issued ASU 2020-04, “ Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in the ASU are elective and apply to entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company has begun its impact assessment and while its evaluation of this guidance is in the early stages, the Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | Major components of (loss) earnings from discontinued operations: For the three months ended March 31, March 31, 2021 2020 $ $ Sales 154 266 Operating expenses Cost of sales, excluding depreciation and amortization 111 196 Depreciation and amortization 10 14 Selling, general and administrative 24 36 Closure and restructuring costs 1 — Other operating loss, net 1 — 147 246 Operating income 7 20 Net loss on disposition of discontinued operations (32 ) — (Loss) earnings from discontinued operations before income taxes (25 ) 20 Income tax benefit (3 ) — Net (loss) earnings from discontinued operations (22 ) 20 Major classes of assets and liabilities classified as held for sale in the accompanying Balance Sheets were as follows: At December 31, 2020 $ Assets Receivables 110 Inventories 138 Prepaid expenses 3 Income and other taxes receivable 3 Property, plant and equipment, net 351 Operating lease right-of-use assets 15 Intangible assets, net (2)(3) 554 Other assets 2 Total assets 1,176 Loss on classification as held for sale (43 ) Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 1,133 Liabilities Trade and other payables 128 Income and other taxes payable 12 Operating lease liabilities due within one year 8 Long-term debt 1 Operating lease liabilities 8 Deferred income taxes and other 130 Other liabilities and deferred credits 8 Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets (1) 295 (1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company’s Consolidated Balance Sheet at December 31, 2020. (2) Intangible assets, net at December 31, 2020 are comprised of $290 million of indefinite-lived assets and $264 million of definite-lived assets. (3) Indefinite-lived intangible assets of the disposal group held for sale consists of trade names ($248 million) and catalog rights ($42 million) following the business acquisitions in the Company’s former Personal Care segment. Cash Flows from Discontinued Operations: For the three months ended March 31, March 31, 2021 2020 $ $ Cash flows from operating activities 16 6 Cash flows used for investing activities (3 ) (8 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 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 2021 (1) 6,575,000 $ 19 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) Represents the remaining nine months of 2021 (2) MMBtu: Millions of British thermal units |
Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding | The following table presents the currency values under significant currency positions pursuant to currency derivatives outstanding as of March 31, 2021 to hedge forecasted purchases and sales: Currency exposure hedged Year of maturity Notional contractual value Percentage of forecasted net exposures under contracts Average Protection rate Average Obligation rate CAD/USD 2021 (1) 555 CAD 78% 1 USD = 1.3334 1 USD = 1.3520 CAD/USD 2022 442 CAD 47% 1 USD = 1.3327 1 USD = 1.3405 CAD/USD 2023 66 CAD 7% 1 USD = 1.2685 1 USD = 1.2685 (1) Represents the remaining nine months of 2021 |
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) and (c) below) at March 31, 2021 and December 31, 2020, 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: March 31, 2021 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 34 — 34 — (a) Prepaid expenses Natural gas swap contracts 1 — 1 — (a) Prepaid expenses Currency derivatives 14 — 14 — (a) Other assets Total Assets 49 — 49 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Other liabilities and deferred credits Total Liabilities 4 — 4 — Other instruments: Stock-based compensation - liability awards 4 4 — — Trade and other payables Stock-based compensation - liability awards 13 13 — — Other liabilities and deferred credits Equity swap contracts 5 5 — — Other assets Long-term debt due within one year 312 — 312 — (b) Long-term debt due within one year Long-term debt 632 — 632 — (c) Long-term debt Fair Value of financial instruments at: December 31, 2020 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 31 — 31 — (a) Prepaid expenses Currency derivatives 16 — 16 — (a) Other assets Natural gas swap contracts 1 — 1 — (a) Other assets Total Assets 48 — 48 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Natural gas swap contracts 2 — 2 — (a) Trade and other payables Natural gas swap contracts 3 — 3 — (a) Other liabilities and deferred credits Total Liabilities 6 — 6 — Other Instruments: Stock-based compensation - liability awards 5 5 — — Trade and other payables Stock-based compensation - liability awards 11 11 — — Other liabilities and deferred credits Equity swap contracts 2 2 Other assets Long-term debt due within one year 13 — 13 — (b) Long-term debt due within one year Long-term debt 1,221 — 1,221 — (c) 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: Foreign currency forward and option contracts are valued using standard valuation models. 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 March 31, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $301 million and $13 million at March 31, 2021 and December 31, 2020, respectively. ( c ) The carrying value of the Company’s long-term debt is $503 million and $1,084 million at March 31, 2021 and December 31, 2020, respectively. |
(Loss) Earnings Per Common Sh_2
(Loss) Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted (Loss) Earnings Per Common Share | The following table provides the reconciliation between basic and diluted (loss) earnings per common share: For the three months ended March 31, March 31, 2021 2020 Loss from continuing operations $ (7 ) $ (15 ) (Loss) earnings from discontinued operations, net of taxes $ (22 ) $ 20 Net (loss) earnings $ (29 ) $ 5 Weighted average number of common shares outstanding (millions) 53.5 56.1 Effect of dilutive securities (millions) — 0.1 Weighted average number of diluted common shares outstanding (millions) 53.5 56.2 Basic net (loss) earnings per common share (in dollars) Loss from continuing operations $ (0.13 ) $ (0.27 ) (Loss) earnings from discontinued operations $ (0.41 ) $ 0.36 Basic net (loss) earnings per common share $ (0.54 ) $ 0.09 Diluted Loss from continuing operations $ (0.13 ) $ (0.27 ) (Loss) earnings from discontinued operations $ (0.41 ) $ 0.36 Diluted $ (0.54 ) $ 0.09 |
Securities that Could Potentially Dilute Basic (Loss) Earnings Per Common Share in Future | The following table provides the securities that could potentially dilute basic (loss) earnings per common share in the future, but were not included in the computation of diluted (loss) earnings per common share because to do so would have been anti-dilutive: For the three months ended March 31, March 31, 2021 2020 Options to purchase common shares 191,720 410,547 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: For the three months ended March 31, March 31, 2021 2020 $ $ Service cost 7 7 Interest expense 8 11 Expected return on plan assets (16 ) (17 ) Amortization of net actuarial loss 2 2 Net periodic benefit cost 1 3 |
Other Operating (Income) Loss_2
Other Operating (Income) Loss, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, March 31, 2021 2020 $ $ Bad debt expense (2 ) 4 Environmental provision 1 1 Foreign exchange loss (gain) 1 (2 ) Other (2 ) (1 ) Other operating (income) loss, net (2 ) 2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: March 31, December 31, 2021 2020 $ $ Work in process and finished goods 292 321 Raw materials 103 107 Operating and maintenance supplies 205 202 600 630 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: For the three months ended March 31, March 31, 2021 2020 $ $ Operating lease expense 6 5 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the three months ended March 31, March 31, 2021 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 6 5 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 1 2 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: March 31, December 31, 2021 2020 $ $ Operating leases Operating leases right-of-use assets 55 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 47 50 66 70 Finance leases Property, plant and equipment 11 11 Accumulated depreciation (3 ) (3 ) 8 8 Long-term debt due within one year 1 1 Long-term debt 9 9 10 10 Weighted-average remaining lease term Operating leases 4.7 years 4.7 years Finance leases 8.6 years 8.8 years Weighted-average discount rate Operating leases 4.4 % 4.4 % Finance leases 6.1 % 6.1 % |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities at March 31, 2021 were as follows: Operating leases Finance leases March 31, March 31, 2021 2021 $ $ 2021 (1) 15 1 2022 18 2 2023 15 2 2024 10 2 2025 6 1 Thereafter 9 5 Total lease payments 73 13 Less: Imputed interest 7 3 Total lease liabilities 66 10 (1) Represents the remaining nine months of 2021. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 derivative gains (losses) on cash flow hedges Pension items ( 2) Post-retirement benefit items ( 2) Foreign currency items Total $ $ $ $ $ Balance at December 31, 2019 (5 ) (197 ) 11 (202 ) (393 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 23 N/A N/A N/A 23 Net loss N/A (21 ) (1 ) N/A (22 ) Foreign currency items N/A N/A N/A 63 63 Other comprehensive income (loss) before reclassifications 27 (21 ) (1 ) 63 68 Amounts reclassified from Accumulated other comprehensive loss 12 11 (2 ) — 21 Net current period other comprehensive income (loss) 39 (10 ) (3 ) 63 89 Balance at December 31, 2020 34 (207 ) 8 (139 ) (304 ) Natural gas swap contracts 1 N/A N/A N/A 1 Currency options 1 N/A N/A N/A 1 Foreign exchange forward contracts 7 N/A N/A N/A 7 Foreign currency items N/A N/A N/A 72 72 Other comprehensive income before reclassifications 9 — — 72 81 Amounts reclassified from Accumulated other comprehensive loss (2 ) 5 — — 3 Net current period other comprehensive income 7 5 — 72 84 Balance at March 31, 2021 41 (202 ) 8 (67 ) (220 ) (1) All amounts are after tax. Amounts in parentheses indicate losses. (2) The projected 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 For the three months ended March 31, 2021 March 31, 2020 $ $ Net derivative losses on cash flow hedge Natural gas swap contracts (1) — (5 ) Currency options and forwards (1) 10 (4 ) Net investment hedge (2) (9 ) — Total before tax 1 (9 ) Tax benefit 1 2 Net of tax 2 (7 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (2 ) (2 ) Discontinued operations (4 ) — Total before tax (6 ) (2 ) Tax benefit 1 1 Net of tax (5 ) (1 ) (1) These amounts are included in Cost of sales in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (2) These amounts are included in (Loss) earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss). (3) These amounts are included in the computation of net periodic benefit cost (see Note 6 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: March 31, 2021 $ Balance at beginning of year 47 Additions and other changes 1 Environmental spending (1 ) Balance at end of period 47 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 SEGMENT DATA March 31, 2021 March 31, 2020 $ $ Sales by product group Communication papers 488 623 Specialty and packaging papers 137 150 Market pulp 308 247 Absorbent core materials 11 11 Consolidated sales 944 1,031 Operating income (loss) from continuing operations (1) Pulp and Paper 12 4 Corporate (10 ) (5 ) Consolidated operating income (loss) from continuing operations 2 (1 ) Interest expense, net 15 14 Non-service components of net periodic benefit cost (6 ) (4 ) Loss before income taxes and equity loss (7 ) (11 ) Income tax expense — 3 Equity method investment loss, net of taxes — 1 Loss from continuing operations (7 ) (15 ) (Loss) earnings from discontinued operations, net of taxes (22 ) 20 Net (loss) earnings (29 ) 5 The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. For the three months ended March 31, 2021, the Company recognized $4 million as a reduction of costs related to this program (CDN $5 million) ($3 million in Cost of sales (CDN $4 million) and $1 million in Selling, general and administrative (CDN $1 million)) |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | For the three months ended March 31, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 814 403 (273 ) 944 Operating expenses Cost of sales, excluding depreciation and amortization — 759 323 (273 ) 809 Depreciation and amortization — 38 16 — 54 Selling, general and administrative 2 29 33 — 64 Impairment of long-lived assets — 6 — — 6 Closure and restructuring costs — 3 — — 3 Asset conversion costs — 8 — — 8 Other operating income, net (2 ) — — — (2 ) — 843 372 (273 ) 942 Operating (loss) income — (29 ) 31 — 2 Interest expense (income), net 16 14 (15 ) — 15 Non-service components of net periodic benefit cost — (2 ) (4 ) — (6 ) (Loss) earnings before income taxes (16 ) (41 ) 50 — (7 ) Income tax (benefit) expense (9 ) (5 ) 14 — — Share in earnings of equity accounted investees (9 ) 43 — (34 ) — (Loss) earnings from continuing operations (16 ) 7 36 (34 ) (7 ) (Loss) earnings from discontinued operations, net of taxes (13 ) (16 ) 7 — (22 ) Net (loss) earnings (29 ) (9 ) 43 (34 ) (29 ) Other comprehensive income 84 82 76 (158 ) 84 Comprehensive income 55 73 119 (192 ) 55 For the three months ended March 31, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE LOSS Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 910 349 (228 ) 1,031 Operating expenses Cost of sales, excluding depreciation and amortization — 844 290 (228 ) 906 Depreciation and amortization — 43 15 — 58 Selling, general and administrative 2 4 60 — 66 Other operating loss (income), net — 3 (1 ) — 2 2 894 364 (228 ) 1,032 Operating (loss) income (2 ) 16 (15 ) — (1 ) Interest expense (income), net 16 19 (21 ) — 14 Non-service components of net periodic benefit cost — (1 ) (3 ) — (4 ) (Loss) earnings before income taxes and equity loss (18 ) (2 ) 9 — (11 ) Income tax (benefit) expense (2 ) 7 (2 ) — 3 Equity method investment loss, net of taxes — 1 — — 1 Share in earnings of equity accounted investees 21 26 — (47 ) — Earnings from continuing operations 5 16 11 (47 ) (15 ) Earnings from discontinued operations, net of taxes — 5 15 — 20 Net earnings 5 21 26 (47 ) 5 Other comprehensive loss (115 ) (117 ) (73 ) 190 (115 ) Comprehensive loss (110 ) (96 ) (47 ) 143 (110 ) |
Condensed Consolidating Balance Sheet | March 31, 2021 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 646 2 23 — 671 Receivables 2 127 321 — 450 Inventories — 391 209 — 600 Prepaid expenses 5 43 5 — 53 Income and other taxes receivable 44 — 11 (6 ) 49 Intercompany accounts 942 989 618 (2,549 ) — Total current assets 1,639 1,552 1,187 (2,555 ) 1,823 Property, plant and equipment, net — 1,348 674 — 2,022 Operating lease right-of-use assets — 44 11 — 55 Intangible assets, net — 24 5 — 29 Investments in affiliates 2,746 1,834 — (4,580 ) — Intercompany long-term advances 5 — 1,266 (1,271 ) — Other assets 17 39 148 (12 ) 192 Total assets 4,407 4,841 3,291 (8,418 ) 4,121 Liabilities and shareholders' equity Current liabilities Bank indebtedness — 4 — — 4 Trade and other payables 20 333 151 — 504 Intercompany accounts 859 667 1,023 (2,549 ) — Income and other taxes payable 10 9 3 (6 ) 16 Operating lease liabilities due within one year — 14 5 — 19 Long-term debt due within one year 300 — 1 — 301 Total current liabilities 1,189 1,027 1,183 (2,555 ) 844 Long-term debt 494 — 9 — 503 Operating lease liabilities — 41 6 — 47 Intercompany long-term loans 609 662 — (1,271 ) — Deferred income taxes and other 1 238 97 (12 ) 324 Other liabilities and deferred credits 23 127 162 — 312 Shareholders' equity 2,091 2,746 1,834 (4,580 ) 2,091 Total liabilities and shareholders' equity 4,407 4,841 3,291 (8,418 ) 4,121 December 31, 2020 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 208 5 96 — 309 Receivables — 65 315 — 380 Inventories — 425 205 — 630 Prepaid expenses 8 37 5 — 50 Income and other taxes receivable 36 — 18 — 54 Intercompany accounts 759 902 433 (2,094 ) — Asset held for sale — 488 648 (3 ) 1,133 Total current assets 1,011 1,922 1,720 (2,097 ) 2,556 Property, plant and equipment, net — 1,348 675 — 2,023 Operating lease right-of-use assets — 48 11 — 59 Intangible assets, net — 24 5 — 29 Investments in affiliates 3,558 2,169 — (5,727 ) — Intercompany long-term advances 5 — 1,157 (1,162 ) — Other assets 11 41 143 (6 ) 189 Total assets 4,585 5,552 3,711 (8,992 ) 4,856 Liabilities and shareholders' equity Current liabilities Trade and other payables 26 294 167 (3 ) 484 Intercompany accounts 677 491 926 (2,094 ) — Income and other taxes payable 3 11 1 — 15 Operating lease liabilities due within one year — 15 5 20 Long-term debt due within one year 12 — 1 — 13 Liabilities held for sale — 121 174 — 295 Total current liabilities 718 932 1,274 (2,097 ) 827 Long-term debt 1,075 — 9 — 1,084 Operating lease liabilities — 44 6 — 50 Intercompany long-term loans 509 653 — (1,162 ) — Deferred income taxes and other — 237 90 (6 ) 321 Other liabilities and deferred credits 23 128 163 — 314 Shareholders' equity 2,260 3,558 2,169 (5,727 ) 2,260 Total liabilities and shareholders' equity 4,585 5,552 3,711 (8,992 ) 4,856 |
Condensed Consolidating Statement of Cash Flows | For the three months ended March 31, 2021 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net (loss) earnings (29 ) (9 ) 43 (34 ) (29 ) Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings (7 ) 96 (61 ) 34 62 Cash flows (used for) provided from operating activities (36 ) 87 (18 ) — 33 Investing activities Additions to property, plant and equipment — (40 ) (11 ) — (51 ) Proceeds from sale of business, net of cash disposed — — 897 — 897 Cash flows (used for) provided from investing activities — (40 ) 886 — 846 Financing activities Stock repurchase (223 ) — — — (223 ) Net change in bank indebtedness — 4 — — 4 Repayments of long-term debt (294 ) — — — (294 ) Increase in long-term advances to related parties — (54 ) (940 ) 994 — Decrease in long-term advances to related parties 994 — — (994 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 474 (50 ) (940 ) — (516 ) Net increase (decrease) in cash and cash equivalents 438 (3 ) (72 ) — 363 Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of period 208 5 96 — 309 Cash and cash equivalents at end of period 646 2 23 — 671 For the three months ended March 31, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 5 21 26 (47 ) 5 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings 7 40 (11 ) 47 83 Cash flows from operating activities 12 61 15 — 88 Investing activities Additions to property, plant and equipment — (38 ) (24 ) — (62 ) Cash flows used for investing activities — (38 ) (24 ) — (62 ) Financing activities Dividend payments (26 ) — — — (26 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility 140 — — — 140 Proceeds from receivables securitization facility — — 25 — 25 Increase in long-term advances to related parties — (22 ) — 22 — Decrease in long-term advances to related parties 22 — — (22 ) — Other (3 ) — — — (3 ) Cash flows provided from (used for) financing activities 74 (32 ) 25 — 67 Net increase (decrease) in cash and cash equivalents 86 (9 ) 16 — 93 Impact of foreign exchange on cash — — (2 ) — (2 ) Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 87 2 63 — 152 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Apr. 08, 2021 | Mar. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of business, net of cash disposed (NOTE 3) | $ 897 | |||
Proceeds of the sale to reduce debt | $ 600 | |||
Proceeds of the sale to repurchase shares | 300 | 223 | $ 59 | |
Term Loan | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Payment of debt | $ 294 | |||
4.4% Notes [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Debt Instrument, Redemption, Description | As at March 31, 2021, the 4.4% Notes were reclassified and presented under Long-term debt due within one year on the Consolidated Balance Sheets. The debt extinguishment as well as the related loss on debt extinguishment, will be recognized in the second quarter of 2021 | |||
4.4% Notes [Member] | Subsequent Event [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Redemption premium | $ 11 | |||
Redemption price percentage | 100.00% | |||
Principal Amount | $ 300 | |||
Personal Care [Member] | AIP [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Purchase price | 920 | |||
Estimated working capital | 130 | |||
Proceeds from sale of business, net of cash disposed (NOTE 3) | $ 897 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Components of Earnings (Loss) from Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | ||
Sales | $ 154 | $ 266 |
Operating expenses | ||
Cost of sales, excluding depreciation and amortization | 111 | 196 |
Depreciation and amortization | 10 | 14 |
Selling, general and administrative | 24 | 36 |
Closure and restructuring costs | 1 | |
Other operating loss, net | 1 | |
Operating expenses | 147 | 246 |
Operating income | 7 | 20 |
Net loss on disposition of discontinued operations | (32) | |
(Loss) earnings from discontinued operations before income taxes | (25) | 20 |
Income tax benefit | (3) | |
Net (loss) earnings from discontinued operations | $ (22) | $ 20 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale in Balance Sheets (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Assets | |
Receivables | $ 110 |
Inventories | 138 |
Prepaid expenses | 3 |
Income and other taxes receivable | 3 |
Property, plant and equipment, net | 351 |
Operating lease right-of-use assets | 15 |
Intangible assets, net | 554 |
Other assets | 2 |
Total assets | 1,176 |
Loss on classification as held for sale | (43) |
Total assets of the disposal group classified as held for sale on the Consolidated Balance Sheets | 1,133 |
Liabilities | |
Trade and other payables | 128 |
Income and other taxes payable | 12 |
Operating lease liabilities due within one year | 8 |
Long-term debt | 1 |
Operating lease liabilities | 8 |
Deferred income taxes and other | 130 |
Other liabilities and deferred credits | 8 |
Total liabilities of the disposal group classified as held for sale on the Consolidated Balance Sheets | $ 295 |
Discontinued Operations - Sch_3
Discontinued Operations - Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale in Balance Sheets (Parenthetical) (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Indefinite-lived intangible assets | $ 290 |
Definite-lived intangible assets | 264 |
Intangible assets, net | 554 |
Trade Names [Member] | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | 248 |
Catalog Rights [Member] | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |
Intangible assets, net | $ 42 |
Discontinued Operations - Sch_4
Discontinued Operations - Schedule of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Cash Provided By Used In Discontinued Operations [Abstract] | ||
Cash flows from operating activities | $ 16 | $ 6 |
Cash flows used for investing activities | $ (3) | $ (8) |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020shares | Mar. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer | |
Derivative [Line Items] | |||
Number of major customers | Customer | 2 | 2 | |
Maximum [Member] | Canadian Subsidiary [Member] | Canadian Dollars [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 24 months | ||
Equity Total Return Swap Agreement [Member] | |||
Derivative [Line Items] | |||
Number of common shares covered in swap agreement | shares | 500,000 | ||
Maturity date of swap agreement | Mar. 4, 2022 | ||
Forecasted Natural Gas and Oil Purchases [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 33 months | ||
Foreign Currency Investment [Member] | |||
Derivative [Line Items] | |||
Length of time current hedges cover | 3 years | ||
Natural Gas Swap Contracts [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | $ (2) | ||
Currency Derivatives [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 47 | ||
Currency Derivatives [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 33 | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | 59 | $ 58 | |
Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ 51 | $ 46 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Maximum percentage of receivables a single customer represents | 13.00% | 15.00% | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Maximum percentage of receivables a single customer represents | 11.00% | 12.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Mar. 31, 2021USD ($)MMBTU |
2021 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 6,575,000 |
Notional contractual value under derivative contracts | $ | $ 19,000,000 |
Percentage of forecasted purchases under derivative contracts | 37.00% |
2022 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 9,270,000 |
Notional contractual value under derivative contracts | $ | $ 25,000,000 |
Percentage of forecasted purchases under derivative contracts | 35.00% |
2023 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 4,210,000 |
Notional contractual value under derivative contracts | $ | $ 12,000,000 |
Percentage of forecasted purchases under derivative contracts | 15.00% |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities and Fair Value Measurement - Currency Values under Significant Currency Positions Pursuant to Currency Derivatives Outstanding (Detail) - Long [Member] | 3 Months Ended |
Mar. 31, 2021CAD ($) | |
CAD/USD Denominated Notional Contractual Value For 2021 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 555,000,000 |
Percentage of forecasted net exposures under contracts | 78.00% |
Currency exposure hedged, Average Protection rate | 1.3334 |
Currency exposure hedged, Average Obligation rate | 1.3520 |
CAD/USD Denominated Notional Contractual Value For 2022 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 442,000,000 |
Percentage of forecasted net exposures under contracts | 47.00% |
Currency exposure hedged, Average Protection rate | 1.3327 |
Currency exposure hedged, Average Obligation rate | 1.3405 |
CAD/USD Denominated Notional Contractual Value For 2023 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 66,000,000 |
Percentage of forecasted net exposures under contracts | 7.00% |
Currency exposure hedged, Average Protection rate | 1.2685 |
Currency exposure hedged, Average Obligation rate | 1.2685 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Total Assets | $ 49 | $ 48 |
Total Liabilities | 4 | 6 |
Long-term debt | 632 | 1,221 |
Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 4 | 5 |
Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 13 | 11 |
Long Term Debt Due within One Year [Member] | ||
Derivative [Line Items] | ||
Long-term debt | 312 | 13 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 34 | 31 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 14 | 16 |
Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 2 |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | 3 |
Equity Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Equity swap contracts | 5 | 2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Stock-based compensation - liability awards | 4 | 5 |
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 | 13 | 11 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Equity swap contracts | 5 | 2 |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 49 | 48 |
Total Liabilities | 4 | 6 |
Long-term debt | 632 | 1,221 |
Significant Observable Inputs (Level 2) [Member] | Long Term Debt Due within One Year [Member] | ||
Derivative [Line Items] | ||
Long-term debt | 312 | 13 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 34 | 31 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 14 | 16 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 1 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 1 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 1 | 2 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 2 | $ 3 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
The carrying value of the Company's long-term debt due within one year | $ 301 | $ 13 |
The carrying value of the Company's long-term debt | 503 | 1,084 |
Long Term Debt Due within One Year [Member] | ||
Derivative [Line Items] | ||
The carrying value of the Company's long-term debt due within one year | $ 301 | $ 13 |
(Loss) Earnings Per Common Sh_3
(Loss) Earnings Per Common Share - Reconciliation Between Basic and Diluted (Loss) Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Loss from continuing operations | $ (7) | $ (15) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (22) | 20 |
Net (loss) earnings | $ (29) | $ 5 |
Weighted average number of common shares outstanding (millions) | 53.5 | 56.1 |
Effect of dilutive securities (millions) | 0.1 | |
Weighted average number of diluted common shares outstanding (millions) | 53.5 | 56.2 |
Basic net (loss) earnings | ||
Loss from continuing operations | $ (0.13) | $ (0.27) |
(Loss) earnings from discontinued operations | (0.41) | 0.36 |
Basic net (loss) earnings | (0.54) | 0.09 |
Diluted net (loss) earnings | ||
Loss from continuing operations | (0.13) | (0.27) |
(Loss) earnings from discontinued operations | (0.41) | 0.36 |
Diluted net (loss) earnings | $ (0.54) | $ 0.09 |
(Loss) Earnings Per Common Sh_4
(Loss) Earnings Per Common Share - Securities that Could Potentially Dilute Basic (Loss) Earnings Per Common Share in Future (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Options to purchase common shares | 191,720 | 410,547 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Pension expense | $ 10 | $ 11 |
Pension Plans [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Plan contributions | 3 | 2 |
Other Post-Retirement Benefit Plans [Member] | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Plan contributions | $ 1 | $ 1 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans (Detail) - Pension Plans [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 7 | $ 7 |
Interest expense | 8 | 11 |
Expected return on plan assets | (16) | (17) |
Amortization of net actuarial loss | 2 | 2 |
Net periodic benefit cost | $ 1 | $ 3 |
Other Operating (Income) Loss_3
Other Operating (Income) Loss, Net - Components of Other Operating (Income) Loss, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | ||
Bad debt expense | $ (2) | $ 4 |
Environmental provision | 1 | 1 |
Foreign exchange loss (gain) | 1 | (2) |
Other | (2) | (1) |
Other operating (income) loss, net | $ (2) | $ 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $ 0 | $ 3 |
Current income tax expense (benefit) | 1 | 3 |
Deferred income tax expense (benefit) | 1 | 6 |
Tax refunds, net of tax payments | $ 7 | $ 25 |
Effective income tax rate | 0.00% | (27.00%) |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 292 | $ 321 |
Raw materials | 103 | 107 |
Operating and maintenance supplies | 205 | 202 |
Total inventories | $ 600 | $ 630 |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
Lessee Lease Description [Line Items] | |
Leases, terminable lease term | 1 year |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, remaining lease term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Leases, remaining lease term | 12 years |
Leases, extendable lease term | 10 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 6 | $ 5 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6 | $ 5 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 1 | $ 2 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Operating leases | ||
Operating leases right-of-use assets | $ 55 | $ 59 |
Lease liabilities due within one year | 19 | 20 |
Operating lease liabilities (NOTE 10) | 47 | 50 |
Operating lease liabilities, total | 66 | 70 |
Finance leases | ||
Property, plant and equipment | 11 | 11 |
Accumulated depreciation | (3) | (3) |
Property, plant and equipment, net | $ 8 | $ 8 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Long-term debt due within one year | $ 1 | $ 1 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term debt due within one year | Long-term debt due within one year |
Long-term debt | $ 9 | $ 9 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Finance leases liabilities, total | $ 10 | $ 10 |
Weighted-average remaining lease term | ||
Operating leases | 4 years 8 months 12 days | 4 years 8 months 12 days |
Finance leases | 8 years 7 months 6 days | 8 years 9 months 18 days |
Weighted-average discount rate | ||
Operating leases | 4.40% | 4.40% |
Finance leases | 6.10% | 6.10% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases, 2021 | $ 15 | |
Operating leases, 2022 | 18 | |
Operating leases, 2023 | 15 | |
Operating leases, 2024 | 10 | |
Operating leases, 2025 | 6 | |
Operating leases, Thereafter | 9 | |
Operating leases, Total lease payments | 73 | |
Operating leases, Imputed interest | 7 | |
Operating leases, Total lease liabilities | 66 | $ 70 |
Finance leases, 2021 | 1 | |
Finance leases, 2022 | 2 | |
Finance leases, 2023 | 2 | |
Finance leases, 2024 | 2 | |
Finance leases, 2025 | 1 | |
Finance leases, Thereafter | 5 | |
Finance leases, Total lease payments | 13 | |
Finance leases, Imputed interest | 3 | |
Finance leases, Total lease liabilities | $ 10 | $ 10 |
Closure and Restructuring Cos_2
Closure and Restructuring Costs and Impairment of Long-lived Assets - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)EmployeeT | |
Restructuring Cost And Reserve [Line Items] | |
Accelerated depreciation | $ 6 |
Severance and termination costs | 3 |
Asset conversion costs (NOTE 11) | 8 |
Kingsport, Tennessee Mill [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Asset conversion costs (NOTE 11) | $ 8 |
Cost reduction program [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Reduction of annual uncoated freesheet paper capacity | T | 721,000 |
Expected workforce reduction | Employee | 750 |
Cost reduction program [Member] | Kingsport, Tennessee Mill [Member] | Minimum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Forecasted conversion costs | $ 300 |
Cost reduction program [Member] | Kingsport, Tennessee Mill [Member] | Maximum [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Forecasted conversion costs | $ 350 |
Cost reduction program [Member] | Ashdown, Arkansas mill [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Conversion of mill to softwood and fluff pulp, percentage | 100.00% |
Changes in Accumulated Other _3
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 | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (304) | ||
Other comprehensive (loss) income before reclassifications | 81 | $ 68 | |
Amounts reclassified from Accumulated other comprehensive loss | 3 | 21 | |
Other comprehensive income (loss) | 84 | $ (115) | 89 |
Ending balance | (220) | (304) | |
Balance | 2,260 | 2,376 | 2,376 |
Balance | 2,091 | 2,181 | 2,260 |
Natural Gas Swap Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 1 | 1 | |
Currency Options [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 1 | 3 | |
Foreign Exchange Forward Contracts [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 7 | 23 | |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 72 | 63 | |
Net Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (22) | ||
Net Derivative (Losses) Gains on Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 34 | (5) | (5) |
Other comprehensive (loss) income before reclassifications | 9 | 27 | |
Amounts reclassified from Accumulated other comprehensive loss | (2) | 12 | |
Other comprehensive income (loss) | 7 | 39 | |
Ending balance | 41 | 34 | |
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 | 1 | 1 | |
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 | 1 | 3 | |
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 | 7 | 23 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (207) | (197) | (197) |
Other comprehensive (loss) income before reclassifications | (21) | ||
Amounts reclassified from Accumulated other comprehensive loss | 5 | 11 | |
Other comprehensive income (loss) | 5 | (10) | |
Ending balance | (202) | (207) | |
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plans [Member] | Net Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | (21) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 8 | 11 | 11 |
Other comprehensive (loss) income before reclassifications | (1) | ||
Amounts reclassified from Accumulated other comprehensive loss | (2) | ||
Other comprehensive income (loss) | (3) | ||
Ending balance | 8 | 8 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Other Post-Retirement Benefit Plans [Member] | Net 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 | (139) | (202) | (202) |
Other comprehensive (loss) income before reclassifications | 72 | 63 | |
Other comprehensive income (loss) | 72 | 63 | |
Ending balance | (67) | (139) | |
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Other comprehensive (loss) income before reclassifications | 72 | 63 | |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (304) | (393) | (393) |
Balance | $ (220) | $ (508) | $ (304) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss by Component - Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net derivative losses on cash flow hedge | $ (22) | $ 20 |
Loss before income taxes and equity loss | (7) | (11) |
Tax benefit (expense) | 0 | (3) |
Net (loss) earnings | (29) | 5 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains on Cash Flow Hedge [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Loss before income taxes and equity loss | 1 | (9) |
Tax benefit (expense) | 1 | 2 |
Net (loss) earnings | 2 | (7) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains on Cash Flow Hedge [Member] | Natural Gas Swap Contracts [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of Sales | (5) | |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains on Cash Flow Hedge [Member] | Currency Options and Forwards [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of Sales | 10 | (4) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains on Cash Flow Hedge [Member] | Net Investment Hedge | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net derivative losses on cash flow hedge | (9) | |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net derivative losses on cash flow hedge | (4) | |
Amortization of net actuarial gain (loss) | (2) | (2) |
Loss before income taxes and equity loss | (6) | (2) |
Tax benefit (expense) | 1 | 1 |
Net (loss) earnings | $ (5) | $ (1) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Mar. 02, 2021 | Apr. 15, 2020 | Feb. 18, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 04, 2019 |
Shareholders' Equity [Line Items] | ||||||
Dividend per share | $ 0.455 | |||||
Record date | Apr. 2, 2020 | |||||
Declared date | Feb. 18, 2020 | |||||
Dividends paid | $ 25,000,000 | |||||
Payment date | Apr. 15, 2020 | |||||
Treasury stock repurchased | $ 223,000,000 | $ 59,000,000 | ||||
Treasury stock shares repurchased | 629,959 | 1,798,306 | ||||
Stock repurchased, average price | $ 35.72 | $ 33.05 | ||||
Stock repurchased, value | $ 23,000,000 | $ 59,000,000 | ||||
JP Morgan Chase Bank [Member] | ASR Agreement [Member] | ||||||
Shareholders' Equity [Line Items] | ||||||
Treasury stock repurchased | $ 200,000,000 | |||||
Treasury stock shares repurchased | 4,430,906 | |||||
Maximum [Member] | ||||||
Shareholders' Equity [Line Items] | ||||||
Stock repurchase program authorized amount | $ 1,600,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Changes in Reserve for Environmental Remediation and Asset Retirement Obligations (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of year | $ 47 |
Additions and other changes | 1 |
Environmental spending | (1) |
Balance at end of period | $ 47 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Pension Plans [Member] | |
Commitments And Contingencies [Line Items] | |
Provision for liability | $ 0 |
Indemnification Guarantee [Member] | |
Commitments And Contingencies [Line Items] | |
Provision for liability | $ 0 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segment Disclosures - Analysis
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 944 | $ 1,031 |
Consolidated operating income (loss) from continuing operations | 2 | (1) |
Interest expense, net | 15 | 14 |
Non-service components of net periodic benefit cost (NOTE 6) | (6) | (4) |
Loss before income taxes and equity loss | (7) | (11) |
Income tax expense | 0 | 3 |
Equity method investment loss, net of taxes | 1 | |
Loss from continuing operations | (7) | (15) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (22) | 20 |
Net (loss) earnings | (29) | 5 |
Operating Segments | Communication Paper [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 488 | 623 |
Operating Segments | Specialty and Packaging Paper [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 137 | 150 |
Operating Segments | Market Pulp [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 308 | 247 |
Operating Segments | Absorbent Core Materials | ||
Segment Reporting Information [Line Items] | ||
Sales | 11 | 11 |
Operating Segments | Pulp and Paper [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated operating income (loss) from continuing operations | 12 | 4 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated operating income (loss) from continuing operations | $ (10) | $ (5) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - 3 months ended Mar. 31, 2021 - Canada Emergency Wage Subsidy [Member] $ in Millions, $ in Millions | USD ($) | CAD ($) |
Reduction of Costs [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 4 | $ 5 |
Cost of Sale [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 3 | 4 |
Selling, General And Administrative [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 1 | $ 1 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021 | |
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 Financ_4
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Condensed Income Statements Captions [Line Items] | |||
Sales | $ 944 | $ 1,031 | |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 809 | 906 | |
Depreciation and amortization | 54 | 58 | |
Selling, general and administrative | 64 | 66 | |
Impairment of long-lived assets | 6 | ||
Closure and restructuring costs (NOTE 11) | 3 | ||
Asset conversion costs (NOTE 11) | 8 | ||
Other operating (income) loss, net (NOTE 7) | (2) | 2 | |
Operating expenses | 942 | 1,032 | |
Operating income (loss) | 2 | (1) | |
Interest expense (income), net | 15 | 14 | |
Non-service components of net periodic benefit cost (NOTE 6) | (6) | (4) | |
Loss before income taxes and equity loss | (7) | (11) | |
Income tax expense (NOTE 8) | 0 | 3 | |
Equity method investment loss, net of taxes | 1 | ||
Loss from continuing operations | (7) | (15) | |
(Loss) earnings from discontinued operations, net of taxes | (22) | 20 | |
Net (loss) earnings | (29) | 5 | |
Other comprehensive income (loss) | 84 | (115) | $ 89 |
Comprehensive income (loss) | 55 | (110) | |
Reportable Legal Entities [Member] | Parent [Member] | |||
Operating expenses | |||
Selling, general and administrative | 2 | 2 | |
Other operating (income) loss, net (NOTE 7) | (2) | ||
Operating expenses | 2 | ||
Operating income (loss) | (2) | ||
Interest expense (income), net | 16 | 16 | |
Loss before income taxes and equity loss | (16) | (18) | |
Income tax expense (NOTE 8) | (9) | (2) | |
Share in earnings of equity accounted investees | (9) | 21 | |
Loss from continuing operations | (16) | 5 | |
(Loss) earnings from discontinued operations, net of taxes | (13) | ||
Net (loss) earnings | (29) | 5 | |
Other comprehensive income (loss) | 84 | (115) | |
Comprehensive income (loss) | 55 | (110) | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Sales | 814 | 910 | |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 759 | 844 | |
Depreciation and amortization | 38 | 43 | |
Selling, general and administrative | 29 | 4 | |
Impairment of long-lived assets | 6 | ||
Closure and restructuring costs (NOTE 11) | 3 | ||
Asset conversion costs (NOTE 11) | 8 | ||
Other operating (income) loss, net (NOTE 7) | 3 | ||
Operating expenses | 843 | 894 | |
Operating income (loss) | (29) | 16 | |
Interest expense (income), net | 14 | 19 | |
Non-service components of net periodic benefit cost (NOTE 6) | (2) | (1) | |
Loss before income taxes and equity loss | (41) | (2) | |
Income tax expense (NOTE 8) | (5) | 7 | |
Equity method investment loss, net of taxes | 1 | ||
Share in earnings of equity accounted investees | 43 | 26 | |
Loss from continuing operations | 7 | 16 | |
(Loss) earnings from discontinued operations, net of taxes | (16) | 5 | |
Net (loss) earnings | (9) | 21 | |
Other comprehensive income (loss) | 82 | (117) | |
Comprehensive income (loss) | 73 | (96) | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Sales | 403 | 349 | |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | 323 | 290 | |
Depreciation and amortization | 16 | 15 | |
Selling, general and administrative | 33 | 60 | |
Other operating (income) loss, net (NOTE 7) | (1) | ||
Operating expenses | 372 | 364 | |
Operating income (loss) | 31 | (15) | |
Interest expense (income), net | (15) | (21) | |
Non-service components of net periodic benefit cost (NOTE 6) | (4) | (3) | |
Loss before income taxes and equity loss | 50 | 9 | |
Income tax expense (NOTE 8) | 14 | (2) | |
Loss from continuing operations | 36 | 11 | |
(Loss) earnings from discontinued operations, net of taxes | 7 | 15 | |
Net (loss) earnings | 43 | 26 | |
Other comprehensive income (loss) | 76 | (73) | |
Comprehensive income (loss) | 119 | (47) | |
Consolidating Adjustments [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Sales | (273) | (228) | |
Operating expenses | |||
Cost of sales, excluding depreciation and amortization | (273) | (228) | |
Operating expenses | (273) | (228) | |
Share in earnings of equity accounted investees | (34) | (47) | |
Loss from continuing operations | (34) | (47) | |
Net (loss) earnings | (34) | (47) | |
Other comprehensive income (loss) | (158) | 190 | |
Comprehensive income (loss) | $ (192) | $ 143 |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||||
Cash and cash equivalents | $ 671 | $ 309 | ||
Receivables | 450 | 380 | ||
Inventories | 600 | 630 | ||
Prepaid expenses | 53 | 50 | ||
Income and other taxes receivable | 49 | 54 | ||
Asset held for sale | 1,133 | |||
Total current assets | 1,823 | 2,556 | ||
Property, plant and equipment, net | 2,022 | 2,023 | ||
Operating lease right-of-use assets | 55 | 59 | ||
Intangible assets, net | 29 | 29 | ||
Other assets | 192 | 189 | ||
Total assets | 4,121 | 4,856 | ||
Current liabilities | ||||
Bank indebtedness | 4 | |||
Trade and other payables | 504 | 484 | ||
Income and other taxes payable | 16 | 15 | ||
Operating lease liabilities due within one year | 19 | 20 | ||
Long-term debt due within one year | 301 | 13 | ||
Liabilities held for sale | 295 | |||
Total current liabilities | 844 | 827 | ||
Long-term debt | 503 | 1,084 | ||
Operating lease liabilities | 47 | 50 | ||
Deferred income taxes and other | 324 | 321 | ||
Other liabilities and deferred credits | 312 | 314 | ||
Shareholders' equity | 2,091 | 2,260 | $ 2,181 | $ 2,376 |
Total liabilities and shareholders' equity | 4,121 | 4,856 | ||
Reportable Legal Entities [Member] | Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 646 | 208 | ||
Receivables | 2 | |||
Prepaid expenses | 5 | 8 | ||
Income and other taxes receivable | 44 | 36 | ||
Intercompany accounts | 942 | 759 | ||
Total current assets | 1,639 | 1,011 | ||
Investments in affiliates | 2,746 | 3,558 | ||
Intercompany long-term advances | 5 | 5 | ||
Other assets | 17 | 11 | ||
Total assets | 4,407 | 4,585 | ||
Current liabilities | ||||
Trade and other payables | 20 | 26 | ||
Intercompany accounts | 859 | 677 | ||
Income and other taxes payable | 10 | 3 | ||
Long-term debt due within one year | 300 | 12 | ||
Total current liabilities | 1,189 | 718 | ||
Long-term debt | 494 | 1,075 | ||
Intercompany long-term loans | 609 | 509 | ||
Deferred income taxes and other | 1 | |||
Other liabilities and deferred credits | 23 | 23 | ||
Shareholders' equity | 2,091 | 2,260 | ||
Total liabilities and shareholders' equity | 4,407 | 4,585 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 2 | 5 | ||
Receivables | 127 | 65 | ||
Inventories | 391 | 425 | ||
Prepaid expenses | 43 | 37 | ||
Intercompany accounts | 989 | 902 | ||
Asset held for sale | 488 | |||
Total current assets | 1,552 | 1,922 | ||
Property, plant and equipment, net | 1,348 | 1,348 | ||
Operating lease right-of-use assets | 44 | 48 | ||
Intangible assets, net | 24 | 24 | ||
Investments in affiliates | 1,834 | 2,169 | ||
Other assets | 39 | 41 | ||
Total assets | 4,841 | 5,552 | ||
Current liabilities | ||||
Bank indebtedness | 4 | |||
Trade and other payables | 333 | 294 | ||
Intercompany accounts | 667 | 491 | ||
Income and other taxes payable | 9 | 11 | ||
Operating lease liabilities due within one year | 14 | 15 | ||
Liabilities held for sale | 121 | |||
Total current liabilities | 1,027 | 932 | ||
Operating lease liabilities | 41 | 44 | ||
Intercompany long-term loans | 662 | 653 | ||
Deferred income taxes and other | 238 | 237 | ||
Other liabilities and deferred credits | 127 | 128 | ||
Shareholders' equity | 2,746 | 3,558 | ||
Total liabilities and shareholders' equity | 4,841 | 5,552 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 23 | 96 | ||
Receivables | 321 | 315 | ||
Inventories | 209 | 205 | ||
Prepaid expenses | 5 | 5 | ||
Income and other taxes receivable | 11 | 18 | ||
Intercompany accounts | 618 | 433 | ||
Asset held for sale | 648 | |||
Total current assets | 1,187 | 1,720 | ||
Property, plant and equipment, net | 674 | 675 | ||
Operating lease right-of-use assets | 11 | 11 | ||
Intangible assets, net | 5 | 5 | ||
Intercompany long-term advances | 1,266 | 1,157 | ||
Other assets | 148 | 143 | ||
Total assets | 3,291 | 3,711 | ||
Current liabilities | ||||
Trade and other payables | 151 | 167 | ||
Intercompany accounts | 1,023 | 926 | ||
Income and other taxes payable | 3 | 1 | ||
Operating lease liabilities due within one year | 5 | 5 | ||
Long-term debt due within one year | 1 | 1 | ||
Liabilities held for sale | 174 | |||
Total current liabilities | 1,183 | 1,274 | ||
Long-term debt | 9 | 9 | ||
Operating lease liabilities | 6 | 6 | ||
Deferred income taxes and other | 97 | 90 | ||
Other liabilities and deferred credits | 162 | 163 | ||
Shareholders' equity | 1,834 | 2,169 | ||
Total liabilities and shareholders' equity | 3,291 | 3,711 | ||
Consolidating Adjustments [Member] | ||||
Current assets | ||||
Income and other taxes receivable | (6) | |||
Intercompany accounts | (2,549) | (2,094) | ||
Asset held for sale | (3) | |||
Total current assets | (2,555) | (2,097) | ||
Investments in affiliates | (4,580) | (5,727) | ||
Intercompany long-term advances | (1,271) | (1,162) | ||
Other assets | (12) | (6) | ||
Total assets | (8,418) | (8,992) | ||
Current liabilities | ||||
Trade and other payables | (3) | |||
Intercompany accounts | (2,549) | (2,094) | ||
Income and other taxes payable | (6) | |||
Total current liabilities | (2,555) | (2,097) | ||
Intercompany long-term loans | (1,271) | (1,162) | ||
Deferred income taxes and other | (12) | (6) | ||
Shareholders' equity | (4,580) | (5,727) | ||
Total liabilities and shareholders' equity | $ (8,418) | $ (8,992) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | Mar. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Operating activities | |||
Net (loss) earnings | $ (29) | $ 5 | |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 62 | 83 | |
Cash flows from operating activities | 33 | 88 | |
Investing activities | |||
Additions to property, plant and equipment | (51) | (62) | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | ||
Cash flows provided from (used for) investing activities | 846 | (62) | |
Financing activities | |||
Dividend payments | (26) | ||
Stock repurchase | $ (300) | (223) | (59) |
Net change in bank indebtedness | 4 | (10) | |
Change in revolving credit facility | 140 | ||
Proceeds from receivables securitization facility | 25 | ||
Repayments of long-term debt | (294) | ||
Other | (3) | (3) | |
Cash flows (used for) provided from financing activities | (516) | 67 | |
Net increase in cash and cash equivalents | 363 | 93 | |
Impact of foreign exchange on cash | (1) | (2) | |
Cash and cash equivalents at beginning of period | 309 | 61 | |
Cash and cash equivalents at end of period | 671 | 152 | |
Reportable Legal Entities [Member] | Parent [Member] | |||
Operating activities | |||
Net (loss) earnings | (29) | 5 | |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | (7) | 7 | |
Cash flows from operating activities | (36) | 12 | |
Financing activities | |||
Dividend payments | (26) | ||
Stock repurchase | (223) | (59) | |
Change in revolving credit facility | 140 | ||
Repayments of long-term debt | (294) | ||
Decrease in long-term advances to related parties | 994 | 22 | |
Other | (3) | (3) | |
Cash flows (used for) provided from financing activities | 474 | 74 | |
Net increase in cash and cash equivalents | 438 | 86 | |
Cash and cash equivalents at beginning of period | 208 | 1 | |
Cash and cash equivalents at end of period | 646 | 87 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||
Operating activities | |||
Net (loss) earnings | (9) | 21 | |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 96 | 40 | |
Cash flows from operating activities | 87 | 61 | |
Investing activities | |||
Additions to property, plant and equipment | (40) | (38) | |
Cash flows provided from (used for) investing activities | (40) | (38) | |
Financing activities | |||
Net change in bank indebtedness | 4 | (10) | |
Increase in long-term advances to related parties | (54) | (22) | |
Cash flows (used for) provided from financing activities | (50) | (32) | |
Net increase in cash and cash equivalents | (3) | (9) | |
Cash and cash equivalents at beginning of period | 5 | 11 | |
Cash and cash equivalents at end of period | 2 | 2 | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||
Operating activities | |||
Net (loss) earnings | 43 | 26 | |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | (61) | (11) | |
Cash flows from operating activities | (18) | 15 | |
Investing activities | |||
Additions to property, plant and equipment | (11) | (24) | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | ||
Cash flows provided from (used for) investing activities | 886 | (24) | |
Financing activities | |||
Proceeds from receivables securitization facility | 25 | ||
Increase in long-term advances to related parties | (940) | ||
Cash flows (used for) provided from financing activities | (940) | 25 | |
Net increase in cash and cash equivalents | (72) | 16 | |
Impact of foreign exchange on cash | (1) | (2) | |
Cash and cash equivalents at beginning of period | 96 | 49 | |
Cash and cash equivalents at end of period | 23 | 63 | |
Consolidating Adjustments [Member] | |||
Operating activities | |||
Net (loss) earnings | (34) | (47) | |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net (loss) earnings | 34 | 47 | |
Financing activities | |||
Increase in long-term advances to related parties | 994 | 22 | |
Decrease in long-term advances to related parties | $ (994) | $ (22) |