Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
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 | 50,358,876 | |
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 $0.01 Per Share | |
Security Exchange Name | NYSE |
Consolidated Statements of Earn
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 802 | $ 1,833 |
Operating expenses | ||
Cost of sales, excluding depreciation and amortization | 693 | 1,599 |
Depreciation and amortization | 56 | 114 |
Selling, general and administrative | 61 | 127 |
Closure and restructuring costs (NOTE 12) | 1 | 1 |
Other operating loss (income), net (NOTE 8) | (5) | (3) |
Operating expenses | 806 | 1,838 |
Operating income (loss) | (4) | (5) |
Interest expense, net | 15 | 29 |
Non-service components of net periodic benefit cost (NOTE 7) | (5) | (9) |
Earnings (loss) before income taxes and equity loss | (14) | (25) |
Income tax expense (benefit) (NOTE 9) | (11) | (8) |
Equity method investment loss, net of taxes | 1 | |
Earnings (loss) from continuing operations | (3) | (18) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | 22 | 42 |
Net (loss) earnings | $ 19 | $ 24 |
Basic net (loss) earnings | ||
Earnings (loss) from continuing operations | $ (0.05) | $ (0.32) |
(Loss) earnings from discontinued operations | 0.39 | 0.75 |
Basic net (loss) earnings | 0.34 | 0.43 |
Diluted net (loss) earnings | ||
Earnings (loss) from continuing operations | (0.05) | (0.32) |
(Loss) earnings from discontinued operations | 0.39 | 0.75 |
Diluted net (loss) earnings | $ 0.34 | $ 0.43 |
Weighted average number of common shares outstanding (millions) | ||
Basic | 55.2 | 55.6 |
Diluted | 55.3 | 55.7 |
Cash dividends per common share | $ 0.46 | $ 0.91 |
Net earnings | $ 19 | $ 24 |
Net derivative gains (losses) on cash flow hedges: | ||
Net gains (losses) arising during the period, net of tax of $(5) and $(8), respectively (2020 – $(9) and $7, respectively) | 29 | (20) |
Less: Reclassification adjustment for (gains) losses included in net earnings, net of tax of $3 and $2, respectively (2020 – $(2) and $(4), respectively) | 6 | 13 |
Foreign currency translation adjustments | 39 | (35) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, net of tax of $(7) and $(8), respectively (2020 – nil and $(1), respectively) | 2 | 3 |
Other comprehensive income (loss) | 76 | (39) |
Comprehensive income (loss) | $ 95 | $ (15) |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings and Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net (losses) gains arising during the period, tax | $ (5) | $ (9) | $ (8) | $ 7 |
Reclassification adjustment for losses included in net earnings, net, tax | 3 | (2) | 2 | (4) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax | $ (7) | $ 0 | $ (8) | $ (1) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 346 | $ 309 |
Receivables, less allowances of $4 and $6 | 520 | 380 |
Inventories (NOTE 10) | 617 | 630 |
Prepaid expenses | 67 | 50 |
Income and other taxes receivable | 44 | 54 |
Current assets held for sale (NOTE 3) | 1,133 | |
Total current assets | 1,594 | 2,556 |
Property, plant and equipment, net | 2,040 | 2,023 |
Operating lease right-of-use assets (NOTE 11) | 50 | 59 |
Intangible assets, net | 29 | 29 |
Other assets | 209 | 189 |
Total assets | 3,922 | 4,856 |
Current liabilities | ||
Trade and other payables | 539 | 484 |
Income and other taxes payable | 19 | 15 |
Operating lease liabilities due within one year (NOTE 11) | 19 | 20 |
Long-term debt due within one year | 1 | 13 |
Current liabilities held for sale (NOTE 3) | 295 | |
Total current liabilities | 578 | 827 |
Long-term debt | 503 | 1,084 |
Operating lease liabilities (NOTE 11) | 44 | 50 |
Deferred income taxes and other | 334 | 321 |
Other liabilities and deferred credits | 290 | 314 |
Commitments and contingencies (NOTE 16) | ||
Shareholders' equity (NOTE 15) | ||
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 | 1,500 | 1,717 |
Retained earnings | 854 | 846 |
Accumulated other comprehensive loss | (182) | (304) |
Total shareholders' equity | 2,173 | 2,260 |
Total liabilities and shareholders' equity | $ 3,922 | $ 4,856 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 4 | $ 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 | 14,644,774 | 9,806,566 |
Consolidated Statements of Shar
Consolidated Statements 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, shares | 100,000 | ||||
Net earnings | 24 | 24 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | (20) | (20) | |||
Less: Reclassification adjustment for losses (gains) included in net earnings, net of tax | 13 | 13 | |||
Foreign currency translation adjustments | (35) | (35) | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 3 | 3 | |||
Stock repurchase | $ (59) | (59) | |||
Stock repurchase, shares | (1,798,306) | (1,800,000) | |||
Cash dividends declared | $ (25) | (25) | |||
Balance at Jun. 30, 2020 | 2,277 | $ 1 | 1,711 | 997 | (432) |
Balance, Shares at Jun. 30, 2020 | 55,200,000 | ||||
Balance at Mar. 31, 2020 | 2,181 | $ 1 | 1,710 | 978 | (508) |
Balance, Shares at Mar. 31, 2020 | 55,200,000 | ||||
Stock-based compensation, net of tax | 1 | 1 | |||
Net earnings | 19 | 19 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 29 | 29 | |||
Less: Reclassification adjustment for losses (gains) included in net earnings, net of tax | 6 | 6 | |||
Foreign currency translation adjustments | 39 | 39 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 2 | 2 | |||
Balance at Jun. 30, 2020 | 2,277 | $ 1 | 1,711 | 997 | (432) |
Balance, Shares at Jun. 30, 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 | 6 | 6 | |||
Stock-based compensation, net of tax, shares | 300,000 | ||||
Net earnings | 8 | 8 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 27 | 27 | |||
Less: Reclassification adjustment for losses (gains) included in net earnings, net of tax | (14) | (14) | |||
Foreign currency translation adjustments | 84 | 84 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 25 | 25 | |||
Stock repurchase | $ (223) | (223) | |||
Stock repurchase, shares | (629,959) | (5,100,000) | |||
Balance at Jun. 30, 2021 | $ 2,173 | $ 1 | 1,500 | 854 | (182) |
Balance, Shares at Jun. 30, 2021 | 50,400,000 | ||||
Balance at Mar. 31, 2021 | 2,091 | $ 1 | 1,493 | 817 | (220) |
Balance, Shares at Mar. 31, 2021 | 50,200,000 | ||||
Stock-based compensation, net of tax | 7 | 7 | |||
Stock-based compensation, net of tax, shares | 200,000 | ||||
Net earnings | 37 | 37 | |||
Net derivative gains (losses) on cash flow hedges: | |||||
Net gains (losses) arising during the period, net of tax | 18 | 18 | |||
Less: Reclassification adjustment for losses (gains) included in net earnings, net of tax | (12) | (12) | |||
Foreign currency translation adjustments | 12 | 12 | |||
Change in unrecognized gains (losses) and prior service cost related to pension and post-retirement benefit plans, net of tax | 20 | 20 | |||
Balance at Jun. 30, 2021 | $ 2,173 | $ 1 | $ 1,500 | $ 854 | $ (182) |
Balance, Shares at Jun. 30, 2021 | 50,400,000 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Net (gains) losses arising during the period, tax | $ (5) | $ (9) | $ (8) | $ 7 |
Reclassification adjustment for losses included in net earnings, net, tax | 3 | (2) | 2 | (4) |
Change in unrecognized gains and prior service cost related to pension and post-retirement benefit plans, tax | $ (7) | $ 0 | $ (8) | $ (1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net earnings | $ 8 | $ 24 |
Adjustments to reconcile net earnings to cash flows from operating activities | ||
Depreciation and amortization | 117 | 143 |
Deferred income taxes and tax uncertainties (NOTE 9) | (4) | (12) |
Impairment of long-lived assets (NOTE 12) | 7 | |
Net loss on disposition of discontinued operations (NOTE 3) | 33 | |
Stock-based compensation expense | 4 | 3 |
Equity method investment loss, net of taxes | 1 | |
Make-whole premium on repayment of long-term debt | 11 | |
Other | 6 | |
Changes in assets and liabilities, excluding the effect of acquisition and sale of business | ||
Receivables | (137) | 42 |
Inventories | 18 | 20 |
Prepaid expenses | 1 | 2 |
Trade and other payables | 32 | (95) |
Income and other taxes | 12 | 40 |
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense | (8) | (1) |
Other assets and other liabilities | (10) | (12) |
Cash flows from operating activities | 90 | 155 |
Investing activities | ||
Additions to property, plant and equipment | (122) | (102) |
Proceeds from disposals of property, plant and equipment | 1 | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | |
Acquisition of business, net of cash acquired | (30) | |
Cash flows provided from (used for) investing activities | 776 | (132) |
Financing activities | ||
Dividend payments | (51) | |
Stock repurchase | (223) | (59) |
Net change in bank indebtedness | (10) | |
Change in revolving credit facility | (80) | |
Proceeds from receivables securitization facility | 25 | |
Repayments of receivables securitization facility | (80) | |
Issuance of long-term debt | 300 | |
Repayments of long-term debt, including make-whole premium | (606) | |
Other | (4) | |
Cash flows (used for) provided from financing activities | (829) | 41 |
Net increase in cash and cash equivalents | 37 | 64 |
Impact of foreign exchange on cash | (1) | |
Cash and cash equivalents at beginning of period | 309 | 61 |
Cash and cash equivalents at end of period | 346 | 124 |
Supplemental cash flow information | ||
Interest (including $11 million of make-whole premium in 2021) | 37 | 25 |
Income taxes | $ 1 | $ (24) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Millions | Apr. 08, 2021 | Jun. 30, 2021 |
Additional cash flow elements and supplemental cash flow information | ||
Make-whole premium | $ 11 | $ 11 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 six 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 | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 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 For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Sales — 229 154 495 Operating expenses Cost of sales, excluding depreciation and amortization — 163 111 359 Depreciation and amortization — 15 10 29 Selling, general and administrative — 32 24 68 Closure and restructuring costs — — 1 — Other operating loss, net — 1 1 1 — 211 147 457 Operating income — 18 7 38 Net loss on disposition of discontinued operations (1 ) — (33 ) — (Loss) earnings from discontinued operations before income taxes (1 ) 18 (26 ) 38 Income tax benefit — (4 ) (3 ) (4 ) Net (loss) earnings from discontinued operations (1 ) 22 (23 ) 42 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 six months ended June 30, June 30, 2021 2020 $ $ Cash flows from operating activities 16 42 Cash flows used for investing activities (3 ) (16 ) Use of proceeds The Company used $223 million of the proceeds to repurchase shares (see Note 15 “Shareholder’s equity” for more details). Additionally, the Company repaid the $294 million of outstanding indebtedness under its Term Loan Agreement and redeemed the 4.4% Notes, originally due in 2022, at a redemption price of 100% of the principal amount of $300 million, plus accrued and unpaid interest, as well as a make-whole premium of $11 million (see Note 13 “Long-term debt” for more details). |
Acquisition of Business
Acquisition of Business | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition of Business | NOTE 4. _________________ ACQUISITION OF BUSINESS Purchase of Appvion Point of Sale business On April 27, 2020, Domtar Corporation completed the acquisition of the Point of Sale paper business from Appvion Operation Inc. The business includes the coater and related equipment located at Appvion’s West Carrollton, Ohio, facility as well as a license for all corresponding intellectual property and assumed liabilities related to post-retirement benefits. The results of this business have been included in the consolidated financial statements as of April 27, 2020. The purchase price was $20 million in cash plus the book value of raw materials and finished goods inventory, subject to post-closing adjustments. The acquisition was accounted for as a business combination under the acquisition method of accounting. The total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on the Company’s estimates of their fair value, which was based on information currently available. The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Inventories $ 11 Property, plant and equipment 23 Operating lease right-of-use assets 2 Total assets 36 Less: Assumed Liabilities 6 Fair value of net assets acquired at the date of acquisition 30 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities and Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities and Fair Value Measurement | NOTE 5. ________________ 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 June 30, 2021, two customers located in the U.S. represented 16% or $83 million, and 12% or $64 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, securitization 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 30 months. The following table presents the volumes under derivative financial instruments for natural gas contracts outstanding as of June 30, 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) 4,490,000 $ 13 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) Represents the remaining six months of 2021 (2) MMBtu: Millions of British thermal units The natural gas derivative contracts were effective as of June 30, 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 22 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 June 30, 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) 353 CAD 74% 1 USD = 1.3222 1 USD = 1.3409 CAD/USD 2022 499 CAD 53% 1 USD = 1.3164 1 USD = 1.3302 CAD/USD 2023 85 CAD 9% 1 USD = 1.2655 1 USD = 1.2655 (1) The foreign exchange derivative contracts were effective as of June 30, 2021. FAIR VALUE MEASUREMENT The accounting standards for fair value measurements and disclosures establish 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 June 30, 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: June 30, 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 37 — 37 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 9 — 9 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 54 — 54 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Total Liabilities 1 — 1 — 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 14 14 — — Other assets Long-term debt due within one year 1 — 1 — (b) Long-term debt due within one year Long-term debt 564 — 564 — (c) Long-term debt The net cumulative gain recorded in Accumulated other comprehensive loss relating to natural gas contracts is $8 million at June 30, 2021, of which a gain of $6 million is expected to be recognized in Cost of sales upon maturity of the derivatives over the next 12 months at the then prevailing values, which may be different from those at June 30, 2021. The net cumulative gain recorded in Accumulated other comprehensive loss relating to currency options and forwards hedging forecasted purchases is $45 million at June 30, 2021, of which a gain of $36 million is expected to 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 June 30, 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 June 30, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $1 million and $13 million at June 30, 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 June 30, 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. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | NOTE 6. _________________ EARNINGS PER COMMON SHARE The following table provides the reconciliation between basic and diluted earnings per common share: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Earnings (loss) from continuing operations $ 38 $ (3 ) $ 31 $ (18 ) (Loss) earnings from discontinued operations, net of taxes $ (1 ) $ 22 $ (23 ) $ 42 Net earnings $ 37 $ 19 8 24 Weighted average number of common shares outstanding (millions) 50.3 55.2 51.9 55.6 Effect of dilutive securities (millions) 0.2 0.1 0.2 0.1 Weighted average number of diluted common shares outstanding (millions) 50.5 55.3 52.1 55.7 Basic net earnings per common share (in dollars) Earnings (loss) from continuing operations $ 0.76 $ (0.05 ) $ 0.59 $ (0.32 ) (Loss) earnings from discontinued operations $ (0.02 ) $ 0.39 $ (0.44 ) $ 0.75 Basic net earnings per common share $ 0.74 $ 0.34 $ 0.15 $ 0.43 Diluted Earnings (loss) from continuing operations $ 0.75 $ (0.05 ) $ 0.59 $ (0.32 ) (Loss) earnings from discontinued operations $ (0.02 ) $ 0.39 $ (0.44 ) $ 0.75 Diluted $ 0.73 $ 0.34 $ 0.15 $ 0.43 The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Options to purchase common shares — 409,776 76,123 409,776 |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension Plans and Other Post-Retirement Benefit Plans | NOTE 7. _________________ PENSION PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS DEFINED CONTRIBUTION PLANS The Company has several defined contribution plans and multiemployer plans. The pension expense under these plans is equal to the Company’s contribution. For the three and six months ended June 30, 2021, the pension expense was $8 million and $18 million, respectively (2020 – $8 million and $19 million, respectively). DEFINED BENEFIT PLANS AND OTHER POST-RETIREMENT BENEFIT PLANS The Company sponsors both contributory and non-contributory U.S. and non-U.S. defined benefit pension plans. Non-unionized employees in Canada joining the Company after January 1, 1998 participate in a defined contribution pension plan. Salaried employees in the U.S. joining the Company after January 1, 2008 participate in a defined contribution pension plan. Unionized and non-union hourly employees in the U.S. who are not grandfathered under the existing defined benefit pension plans, participate in a defined contribution pension plan for future service. The Company also sponsors a number of other post-retirement benefit plans for eligible U.S. and non-U.S. employees; the plans are unfunded and include life insurance programs and medical and dental benefits. The Company also provides supplemental unfunded defined benefit pension plans and supplemental unfunded defined contribution pension plans to certain senior management employees. Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the six months ended June 30, 2021 June 30, 2021 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 — 14 — Interest expense 8 1 16 1 Expected return on plan assets (17 ) — (33 ) — Amortization of net actuarial loss (gain) 2 (1 ) 4 (1 ) Settlement loss 1 — 1 — Amortization of prior year service costs 1 — 1 — Net periodic benefit cost 2 — 3 — Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the six months ended June 30, 2020 June 30, 2020 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 1 14 1 Interest expense 9 1 20 1 Expected return on plan assets (17 ) — (34 ) — Amortization of net actuarial loss (gain) 2 (1 ) 4 (1 ) Amortization of prior year service costs 1 — 1 — Net periodic benefit cost 2 1 5 1 The components of net periodic benefit cost for pension plans and other post-retirement benefits plans, other than service cost, are presented in Non-service components of net periodic benefit cost on the Consolidated Statement of Earnings and Comprehensive Income (Loss). For the three and six months ended June 30, 2021, the Company contributed $5 million and $8 million, respectively (2020 – $2 million and $4 million, respectively) to the pension plans and $1 million and $2 million, respectively (2020 – $1 million and $2 million, respectively) to the other post-retirement benefit plans. |
Other Operating Loss (Income),
Other Operating Loss (Income), Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other Operating Loss (Income), Net | NOTE 8. _________________ OTHER OPERATING LOSS (INCOME), NET Other operating loss (income), 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 loss (income), net includes the following: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Bad debt expense — 1 (2 ) 5 Environmental provision — — 1 1 Non-production agreement terminated — (7 ) — (7 ) Foreign exchange loss (gain) 1 1 2 (1 ) Other — — (2 ) (1 ) Other operating loss (income), net 1 (5 ) (1 ) (3 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9. _________________ INCOME TAXES For the second quarter of 2021, the Company’s income tax expense was $16 million, consisting of a current income tax expense of $16 million and no deferred income tax expense. This compares to an income tax benefit of $11 million in the second quarter of 2020, consisting of a current income tax benefit of $2 million and a deferred income tax benefit of $9 million. The Company made income tax payments, net of refunds, of $8 million during the second quarter of 2021. The effective tax rate for the second quarter of 2021 was 30% compared with an effective tax rate of 79% in the second quarter of 2020. The effective tax rate for the second quarter of 2021 was impacted by certain transaction costs incurred during the quarter related to the potential acquisition of the Company by Paper Excellence which provided no tax benefit. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate and then adjusting for discrete items arising in that quarter. In each interim quarter the Company updates its estimate of the annual effective tax rate and, if the estimated annual tax rate changes, makes a cumulative adjustment in that quarter. The effective tax rate for the second quarter of 2020 was significantly impacted by such an adjustment. The effective tax rate for the second quarter of 2020 was also favorably impacted by the recognition of additional tax credits in various jurisdictions, as well as by the CARES Act, which granted the ability to carry back tax losses generated in the U.S. in 2020 to a tax year with a higher statutory tax rate. For the first six months of 2021, the Company’s income tax expense was $16 million, consisting of a current income tax expense of $15 million and a deferred income tax expense of $1 million. This compares to an income tax benefit of $8 million in the first six months of 2020, consisting of a current income tax benefit of $5 million and a deferred income tax benefit of $3 million. The Company made income tax payments, net of refunds, of $1 million during the first six months of 2021. The effective tax rate was 34% compared to an effective tax rate of 32% in the first six months of 2020. The effective tax rate for the first six months of 2021 was significantly impacted by certain transaction costs incurred during the period related to the potential acquisition of the Company by Paper Excellence which provided no tax benefit. The effective tax rate for the first six months of 2020 was significantly impacted by our mix of earnings and loss in the Company’s major jurisdictions, by our recognition of additional tax credits in various jurisdictions, and by our ability to carry back U.S. tax losses generated in 2020 to a tax year with a higher statutory tax rate. These favorable impacts were partially offset by an increase in the valuation allowance related to the expected realization of certain U.S. state tax credits. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 10. _________________ INVENTORIES The following table presents the components of inventories: June 30, December 31, 2021 2020 $ $ Work in process and finished goods 304 321 Raw materials 103 107 Operating and maintenance supplies 210 202 617 630 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 11. _________________ 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 For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Operating lease expense 5 6 11 11 Supplemental cash flow information related to leases was as follows: For the six months ended June 30, June 30, 2021 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 12 11 Operating cash flows from finance leases 1 — Right-of-use assets obtained in exchange for lease liabilities: Operating leases 2 4 Supplemental balance sheet information related to leases was as follows: June 30, December 31, 2021 2020 $ $ Operating leases Operating leases right-of-use assets 50 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 44 50 63 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 4.5 years 4.7 years Finance leases 8.4 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 June 30, 2021 were as follows: Operating leases Finance leases June 30, June 30, 2021 2021 $ $ 2021 (1) 10 1 2022 19 1 2023 15 2 2024 11 2 2025 6 1 Thereafter 9 5 Total lease payments 70 12 Less: Imputed interest 7 2 Total lease liabilities 63 10 (1) Represents the remaining six months of 2021. |
Closure and Restructuring Costs
Closure and Restructuring Costs and Impairment of Long-Lived Assets | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Closure and Restructuring Costs and Impairment of Long-Lived Assets | NOTE 12. _________________ CLOSURE AND RESTRUCTURING COSTS AND IMPAIRMENT OF LONG-LIVED ASSETS Paper Excellence to Acquire Domtar Corporation On May 10, 2021, Domtar and Paper Excellence, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, entered into a business combination agreement under which the Paper Excellence group of companies will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash. The all-cash transaction represents an enterprise value of approximately $3 billion. The transaction is expected to close in the second half of 2021, subject to receipt of the required regulatory approvals and other customary closing conditions. As a result, during the second quarter of 2021, the Company recorded $18 million of transaction fees under Closure and restructuring costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss). Cost reduction program The Company implemented 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. Additionally, on May 7, 2021, the Company announced the closure of the converting center in Dallas, Texas. These actions reduced the Company’s annual uncoated freesheet paper capacity by approximately 721,000 short tons, and resulted 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 and the Dallas converting center ceased operations at the beginning of July 2021. For the three and six months ended June 30, 2021, the Company recorded $1 million and $7 million, respectively, of accelerated depreciation under Impairment of long-lived assets, $1 million and $4 million, respectively, of severance and termination costs, $1 million and $1 million, respectively, of pension settlement loss and $4 million and $4 million, respectively, of other costs under Closure and restructuring costs on the Consolidated Statement of Earnings and Comprehensive Income (Loss). Conversion of Kingsport, Tennessee mill The Company plans to enter the linerboard market with the conversion of the Kingsport paper machine. Once in full operation, the mill will produce and market approximately 600,000 tons annually of high-quality recycled linerboard and medium, providing the Company with a strategic footprint in a growing adjacent market. The conversion is expected to be completed by the end of 2022. The Company Restart of the paper machine at Ashdown, Arkansas mill On July 15, 2021, Domtar announced its intention to restart the paper machine at the Ashdown, Arkansas mill to add an additional 185,000 tons per year of uncoated freesheet production capacity to its manufacturing network. The increase is necessary to meet growing customer demand as the economy recovers from the COVID-19 pandemic. The additional paper capacity will result in a capacity reduction of 185,000 ADMT per year of baled SBSK pulp at the mill. However, it will not impact Ashdown's fluff pulp production capacity, or Domtar's commitment to serving its key hygiene customers around the world. Additionally, the Company has a dedicated team developing a kraft linerboard project for the Ashdown Mill, and the decision to restart the paper machine will not impact the Company's intention to produce containerboard and other packaging products at the facility. The machine is expected to resume full operation in January 2022 following a period of time to ramp up to full production. The Company estimates the restart will cost approximately $10 million. Other costs During the second quarter of 2021, other costs related to previous and ongoing closures and restructuring included $1 million of other costs (2020 – $1 million of severance and termination costs). |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 13. _________________ LONG-TERM DEBT 4.4% UNSECURED NOTES On April 8, 2021, the Company redeemed the 4.4% Notes, originally due in 2022, at a redemption price of 100% of the principal amount of $300 million, plus accrued and unpaid interest, as well as a make-whole premium of $11 million. TERM LOAN On March 11, 2021, the Company fully repaid its Term Loan Agreement, originally maturing on May 5, 2025, in the amount of $294 million and wrote-off $2 million of unamortized debt issuance costs related to this repayment. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | NOTE 14. _________________ 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 9 N/A N/A N/A 9 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 15 N/A N/A N/A 15 Net gain N/A 18 — N/A 18 Foreign currency items N/A N/A N/A 84 84 Other comprehensive income before reclassifications 27 18 — 84 129 Amounts reclassified from Accumulated other comprehensive loss (14 ) 8 (1 ) — (7 ) Net current period other comprehensive income (loss) 13 26 (1 ) 84 122 Balance at June 30, 2021 47 (181 ) 7 (55 ) (182 ) (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 tables present reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2021 and 2020: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss For the three months ended June 30, 2021 June 30, 2020 $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) (1 ) (3 ) Currency options and forwards (1) 16 (5 ) Total before tax 15 (8 ) Tax (expense) benefit (3 ) 2 Net of tax 12 (6 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (3 ) (2 ) Amortization of prior year service costs (3) (1 ) (1 ) Total before tax (4 ) (3 ) Tax benefit 1 — Net of tax (3 ) (3 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) 1 1 Total before tax 1 1 Tax expense — — Net of tax 1 1 Amounts reclassified from Accumulated other comprehensive loss For the six months ended June 30, 2021 June 30, 2020 $ $ Net derivatives gains (losses) on cash flow hedge Natural gas swap contracts (1) (1 ) (8 ) Currency options and forwards (1) 26 (9 ) Net investment hedge (2) (9 ) — Total before tax 16 (17 ) Tax (expense) benefit (2 ) 4 Net of tax 14 (13 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (5 ) (4 ) Amortization of prior year service costs (3) (1 ) (1 ) Discontinued operations (4 ) — Total before tax (10 ) (5 ) Tax benefit 2 1 Net of tax (8 ) (4 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) 1 1 Total before tax 1 1 Tax expense — — Net of tax 1 1 ( 1 ) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (2) This amount is included in (Loss) earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings and Comprehensive Income (Loss). ( 3 ) These amounts are included in the computation of net periodic benefit cost (see Note 7 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 15. _________________ 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 flexibility in the current environment . 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 would 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 six months of 2021, in addition to the ASR, During the first six months 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 | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 16. _________________ 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: June 30, 2021 $ Balance at beginning of year 47 Additions and other changes 2 Environmental spending (2 ) 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 June 30, 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 June 30, 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 . As of June 30, 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 vacated the ACE rule, sending it back to EPA for further consideration. The court also rejected the embedded repeal of the Clean Power Plan, but the court stayed its mandate as to that part of its decision to avoid reinstating that now outdated Clean Power Plan. Four petitions of certiorari have been filed with the United States Supreme Court seeking review of the D.C. Circuit’s decision, and the Supreme Court is expected to decide whether to take the case this Fall. Regardless of the outcome of the petitions for certiorari and 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 gas (“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 Canadian Government has accepted Ontario’s program as an alternative to the federal program and the transition for Ontario facilities from the federal program to the Ontario program is expected to occur on January 1, 2022. 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. The EPA has indicated that it plans to issue the final rule in September 2021. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Disclosures | NOTE 17. _________________ 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 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 For the six months ended SEGMENT DATA June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 $ $ $ $ Sales by product group Communication papers 498 385 986 1,008 Specialty and packaging papers 145 127 282 277 Market pulp 357 278 665 525 Absorbent core materials 10 12 21 23 Consolidated sales 1,010 802 1,954 1,833 Operating income (loss) from continuing operations (1) Pulp and Paper 95 3 107 7 Corporate (27 ) (7 ) (37 ) (12 ) Consolidated operating income (loss) from continuing operations 68 (4 ) 70 (5 ) Interest expense, net 20 15 35 29 Non-service components of net periodic benefit cost (6 ) (5 ) (12 ) (9 ) Earnings (loss) before income taxes and equity loss 54 (14 ) 47 (25 ) Income tax expense (benefit) 16 (11 ) 16 (8 ) Equity method investment loss, net of taxes — — — 1 Earnings (loss) from continuing operations 38 (3 ) 31 (18 ) (Loss) earnings from discontinued operations, net of taxes (1 ) 22 (23 ) 42 Net earnings 37 19 8 24 (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 six months ended June 30, 2021, the Company recognized $6 million as a reduction of costs related to this program (CDN $8 million) ($5 million in Cost of sales (CDN $6 million) and $1 million in Selling, general and administrative (CDN $2 million)). |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | NOTE 18. _________________ 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 June 30, 2021 and December 31, 2020, the Statements of Earnings and Comprehensive Income (Loss) for the three and six months ended June 30, 2021 and 2020 and the Statements of Cash Flows for the six months ended June 30, 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 June 30, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 857 415 (262 ) 1,010 Operating expenses Cost of sales, excluding depreciation and amortization — 728 323 (262 ) 789 Depreciation and amortization — 38 15 — 53 Selling, general and administrative (3 ) (19 ) 90 — 68 Impairment of long-lived assets — 1 — — 1 Closure and restructuring costs 15 9 1 — 25 Asset conversion costs — 5 — — 5 Other operating loss (income), net 1 (2 ) 2 — 1 13 760 431 (262 ) 942 Operating (loss) income (13 ) 97 (16 ) — 68 Interest expense (income), net 20 16 (16 ) — 20 Non-service components of net periodic benefit cost — (3 ) (3 ) — (6 ) (Loss) earnings before income taxes (33 ) 84 3 — 54 Income tax expense — 16 — — 16 Share in earnings of equity accounted investees 70 2 — (72 ) — Earnings from continuing operations 37 70 3 (72 ) 38 Loss from discontinued operations, net of taxes — — (1 ) — (1 ) Net earnings 37 70 2 (72 ) 37 Other comprehensive income 38 30 13 (43 ) 38 Comprehensive income 75 100 15 (115 ) 75 For the six months ended June 30, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,671 818 (535 ) 1,954 Operating expenses Cost of sales, excluding depreciation and amortization — 1,487 646 (535 ) 1,598 Depreciation and amortization — 76 31 — 107 Selling, general and administrative (1 ) 10 123 — 132 Impairment of long-lived assets — 7 — — 7 Closure and restructuring costs 15 12 1 — 28 Asset conversion costs — 13 — — 13 Other operating (income) loss, net (1 ) (2 ) 2 — (1 ) 13 1,603 803 (535 ) 1,884 Operating (loss) income (13 ) 68 15 — 70 Interest expense (income), net 36 30 (31 ) — 35 Non-service components of net periodic benefit cost — (5 ) (7 ) — (12 ) (Loss) earnings before income taxes (49 ) 43 53 — 47 Income tax (benefit) expense (9 ) 11 14 — 16 Share in earnings of equity accounted investees 61 45 — (106 ) — Earnings from continuing operations 21 77 39 (106 ) 31 (Loss) earnings from discontinued operations, net of taxes (13 ) (16 ) 6 — (23 ) Net earnings 8 61 45 (106 ) 8 Other comprehensive income 122 112 89 (201 ) 122 Comprehensive income 130 173 134 (307 ) 130 For the three months ended June 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 703 315 (216 ) 802 Operating expenses Cost of sales, excluding depreciation and amortization — 665 244 (216 ) 693 Depreciation and amortization — 42 14 — 56 Selling, general and administrative 3 27 31 — 61 Closure and restructuring costs — 1 — — 1 Other operating loss (income), net 1 — (6 ) — (5 ) 4 735 283 (216 ) 806 Operating (loss) income (4 ) (32 ) 32 — (4 ) Interest expense (income), net 16 19 (20 ) — 15 Non-service components of net periodic benefit cost — (3 ) (2 ) — (5 ) (Loss) earnings before income taxes (20 ) (48 ) 54 — (14 ) Income tax (benefit) expense (92 ) 53 28 — (11 ) Share in earnings of equity accounted investees (53 ) (112 ) — 165 — Earnings (loss) from continuing operations 19 (213 ) 26 165 (3 ) Earnings (loss) from discontinued operations, net of taxes — 160 (138 ) — 22 Net earnings (loss) 19 (53 ) (112 ) 165 19 Other comprehensive income 76 74 40 (114 ) 76 Comprehensive income (loss) 95 21 (72 ) 51 95 For the six months ended June 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE LOSS Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,613 664 (444 ) 1,833 Operating expenses Cost of sales, excluding depreciation and amortization — 1,509 534 (444 ) 1,599 Depreciation and amortization — 85 29 — 114 Selling, general and administrative 5 31 91 — 127 Closure and restructuring costs — 1 — — 1 Other operating loss (income), net 1 3 (7 ) — (3 ) 6 1,629 647 (444 ) 1,838 Operating (loss) income (6 ) (16 ) 17 — (5 ) Interest expense (income), net 32 38 (41 ) — 29 Non-service components of net periodic benefit cost — (4 ) (5 ) — (9 ) (Loss) earnings before income taxes and equity loss (38 ) (50 ) 63 — (25 ) Income tax (benefit) expense (94 ) 60 26 — (8 ) Equity method investment loss, net of taxes — 1 — — 1 Share in earnings of equity accounted investees (32 ) (86 ) — 118 — Earnings (loss) from continuing operations 24 (197 ) 37 118 (18 ) Earnings (loss) from discontinued operations, net of taxes — 165 (123 ) — 42 Net earnings (loss) 24 (32 ) (86 ) 118 24 Other comprehensive loss (39 ) (43 ) (33 ) 76 (39 ) Comprehensive loss (15 ) (75 ) (119 ) 194 (15 ) June 30, 2021 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 331 8 7 — 346 Receivables 1 109 410 — 520 Inventories — 396 221 — 617 Prepaid expenses 15 44 8 — 67 Income and other taxes receivable 44 — 16 (16 ) 44 Intercompany accounts 1,080 1,237 730 (3,047 ) — Total current assets 1,471 1,794 1,392 (3,063 ) 1,594 Property, plant and equipment, net — 1,361 679 — 2,040 Operating lease right-of-use assets — 41 9 — 50 Intangible assets, net — 24 5 — 29 Investments in affiliates 2,846 1,825 — (4,671 ) — Intercompany long-term advances 5 — 1,266 (1,271 ) — Other assets 28 40 153 (12 ) 209 Total assets 4,350 5,085 3,504 (9,017 ) 3,922 Liabilities and shareholders' equity Current liabilities Trade and other payables 18 363 158 — 539 Intercompany accounts 1,028 780 1,239 (3,047 ) — Income and other taxes payable 3 24 8 (16 ) 19 Operating lease liabilities due within one year — 15 4 — 19 Long-term debt due within one year — — 1 — 1 Total current liabilities 1,049 1,182 1,410 (3,063 ) 578 Long-term debt 495 — 8 — 503 Operating lease liabilities — 39 5 — 44 Intercompany long-term loans 602 669 — (1,271 ) — Deferred income taxes and other 3 251 92 (12 ) 334 Other liabilities and deferred credits 28 98 164 — 290 Shareholders' equity 2,173 2,846 1,825 (4,671 ) 2,173 Total liabilities and shareholders' equity 4,350 5,085 3,504 (9,017 ) 3,922 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 six months ended June 30, 2021 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 8 61 45 (106 ) 8 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (48 ) 59 (35 ) 106 82 Cash flows (used for) provided from operating activities (40 ) 120 10 — 90 Investing activities Additions to property, plant and equipment — (97 ) (25 ) — (122 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Proceeds from sale of business, net of cash disposed — — 897 — 897 Cash flows (used for) provided from investing activities — (96 ) 872 — 776 Financing activities Stock repurchase (223 ) — — — (223 ) Repayments of long-term debt, including make-whole premium (605 ) — (1 ) — (606 ) Increase in long-term advances to related parties — (21 ) (970 ) 991 — Decrease in long-term advances to related parties 991 — — (991 ) — Cash flows provided from (used for) financing activities 163 (21 ) (971 ) — (829 ) Net increase (decrease) in cash and cash equivalents 123 3 (89 ) — 37 Cash and cash equivalents at beginning of period 208 5 96 — 309 Cash and cash equivalents at end of period 331 8 7 — 346 For the six months ended June 30, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings (loss) 24 (32 ) (86 ) 118 24 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) (182 ) 57 374 (118 ) 131 Cash flows (used for) provided from operating activities (158 ) 25 288 — 155 Investing activities Additions to property, plant and equipment — (61 ) (41 ) — (102 ) Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows used for investing activities — (61 ) (71 ) — (132 ) Financing activities Dividend payments (51 ) — — — (51 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility (80 ) — — — (80 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (80 ) — (80 ) Issuance of long-term debt 300 — — — 300 Increase in long-term advances to related parties — — (141 ) 141 — Decrease in long-term advances to related parties 75 66 — (141 ) — Other (4 ) — — — (4 ) Cash flows provided from (used for) financing activities 181 56 (196 ) — 41 Net increase in cash and cash equivalents 23 20 21 — 64 Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 24 31 69 — 124 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 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 For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Sales — 229 154 495 Operating expenses Cost of sales, excluding depreciation and amortization — 163 111 359 Depreciation and amortization — 15 10 29 Selling, general and administrative — 32 24 68 Closure and restructuring costs — — 1 — Other operating loss, net — 1 1 1 — 211 147 457 Operating income — 18 7 38 Net loss on disposition of discontinued operations (1 ) — (33 ) — (Loss) earnings from discontinued operations before income taxes (1 ) 18 (26 ) 38 Income tax benefit — (4 ) (3 ) (4 ) Net (loss) earnings from discontinued operations (1 ) 22 (23 ) 42 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 six months ended June 30, June 30, 2021 2020 $ $ Cash flows from operating activities 16 42 Cash flows used for investing activities (3 ) (16 ) |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Purchase Price Allocation | The table below illustrates the purchase price allocation: Fair value of net assets acquired at the date of acquisition Inventories $ 11 Property, plant and equipment 23 Operating lease right-of-use assets 2 Total assets 36 Less: Assumed Liabilities 6 Fair value of net assets acquired at the date of acquisition 30 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities and Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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) 4,490,000 $ 13 37% 2022 9,270,000 $ 25 35% 2023 4,210,000 $ 12 15% (1) Represents the remaining six 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 June 30, 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) 353 CAD 74% 1 USD = 1.3222 1 USD = 1.3409 CAD/USD 2022 499 CAD 53% 1 USD = 1.3164 1 USD = 1.3302 CAD/USD 2023 85 CAD 9% 1 USD = 1.2655 1 USD = 1.2655 (1) |
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 June 30, 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: June 30, 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 37 — 37 — (a) Prepaid expenses Natural gas swap contracts 6 — 6 — (a) Prepaid expenses Currency derivatives 9 — 9 — (a) Other assets Natural gas swap contracts 2 — 2 — (a) Other assets Total Assets 54 — 54 — Liabilities derivatives Currency derivatives 1 — 1 — (a) Trade and other payables Total Liabilities 1 — 1 — 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 14 14 — — Other assets Long-term debt due within one year 1 — 1 — (b) Long-term debt due within one year Long-term debt 564 — 564 — (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 June 30, 2021 and December 31, 2020. The carrying value of the Company’s long-term debt due within one year is $1 million and $13 million at June 30, 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 June 30, 2021 and December 31, 2020, respectively. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation Between Basic and Diluted Earnings Per Common Share | The following table provides the reconciliation between basic and diluted earnings per common share: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Earnings (loss) from continuing operations $ 38 $ (3 ) $ 31 $ (18 ) (Loss) earnings from discontinued operations, net of taxes $ (1 ) $ 22 $ (23 ) $ 42 Net earnings $ 37 $ 19 8 24 Weighted average number of common shares outstanding (millions) 50.3 55.2 51.9 55.6 Effect of dilutive securities (millions) 0.2 0.1 0.2 0.1 Weighted average number of diluted common shares outstanding (millions) 50.5 55.3 52.1 55.7 Basic net earnings per common share (in dollars) Earnings (loss) from continuing operations $ 0.76 $ (0.05 ) $ 0.59 $ (0.32 ) (Loss) earnings from discontinued operations $ (0.02 ) $ 0.39 $ (0.44 ) $ 0.75 Basic net earnings per common share $ 0.74 $ 0.34 $ 0.15 $ 0.43 Diluted Earnings (loss) from continuing operations $ 0.75 $ (0.05 ) $ 0.59 $ (0.32 ) (Loss) earnings from discontinued operations $ (0.02 ) $ 0.39 $ (0.44 ) $ 0.75 Diluted $ 0.73 $ 0.34 $ 0.15 $ 0.43 |
Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future | The following table provides the securities that could potentially dilute basic earnings per common share in the future, but were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Options to purchase common shares — 409,776 76,123 409,776 |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 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 and other post-retirement benefit plans: For the three months ended For the six months ended June 30, 2021 June 30, 2021 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 — 14 — Interest expense 8 1 16 1 Expected return on plan assets (17 ) — (33 ) — Amortization of net actuarial loss (gain) 2 (1 ) 4 (1 ) Settlement loss 1 — 1 — Amortization of prior year service costs 1 — 1 — Net periodic benefit cost 2 — 3 — Components of net periodic benefit cost for pension plans and other post-retirement benefit plans: For the three months ended For the six months ended June 30, 2020 June 30, 2020 Pension plans Other post-retirement benefit plans Pension plans Other post-retirement benefit plans $ $ $ $ Service cost 7 1 14 1 Interest expense 9 1 20 1 Expected return on plan assets (17 ) — (34 ) — Amortization of net actuarial loss (gain) 2 (1 ) 4 (1 ) Amortization of prior year service costs 1 — 1 — Net periodic benefit cost 2 1 5 1 |
Other Operating Loss (Income)_2
Other Operating Loss (Income), Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating Loss (Income), Net | The Company’s other operating loss (income), net includes the following: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Bad debt expense — 1 (2 ) 5 Environmental provision — — 1 1 Non-production agreement terminated — (7 ) — (7 ) Foreign exchange loss (gain) 1 1 2 (1 ) Other — — (2 ) (1 ) Other operating loss (income), net 1 (5 ) (1 ) (3 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table presents the components of inventories: June 30, December 31, 2021 2020 $ $ Work in process and finished goods 304 321 Raw materials 103 107 Operating and maintenance supplies 210 202 617 630 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows: For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 $ $ $ $ Operating lease expense 5 6 11 11 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the six months ended June 30, June 30, 2021 2020 $ $ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 12 11 Operating cash flows from finance leases 1 — Right-of-use assets obtained in exchange for lease liabilities: Operating leases 2 4 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: June 30, December 31, 2021 2020 $ $ Operating leases Operating leases right-of-use assets 50 59 Lease liabilities due within one year 19 20 Long-term operating lease liabilities 44 50 63 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 4.5 years 4.7 years Finance leases 8.4 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 June 30, 2021 were as follows: Operating leases Finance leases June 30, June 30, 2021 2021 $ $ 2021 (1) 10 1 2022 19 1 2023 15 2 2024 11 2 2025 6 1 Thereafter 9 5 Total lease payments 70 12 Less: Imputed interest 7 2 Total lease liabilities 63 10 (1) Represents the remaining six months of 2021. |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 6 Months Ended |
Jun. 30, 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 9 N/A N/A N/A 9 Currency options 3 N/A N/A N/A 3 Foreign exchange forward contracts 15 N/A N/A N/A 15 Net gain N/A 18 — N/A 18 Foreign currency items N/A N/A N/A 84 84 Other comprehensive income before reclassifications 27 18 — 84 129 Amounts reclassified from Accumulated other comprehensive loss (14 ) 8 (1 ) — (7 ) Net current period other comprehensive income (loss) 13 26 (1 ) 84 122 Balance at June 30, 2021 47 (181 ) 7 (55 ) (182 ) (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 tables present reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2021 and 2020: Details about Accumulated other comprehensive loss components Amounts reclassified from Accumulated other comprehensive loss For the three months ended June 30, 2021 June 30, 2020 $ $ Net derivative gains (losses) on cash flow hedge Natural gas swap contracts (1) (1 ) (3 ) Currency options and forwards (1) 16 (5 ) Total before tax 15 (8 ) Tax (expense) benefit (3 ) 2 Net of tax 12 (6 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (3 ) (2 ) Amortization of prior year service costs (3) (1 ) (1 ) Total before tax (4 ) (3 ) Tax benefit 1 — Net of tax (3 ) (3 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) 1 1 Total before tax 1 1 Tax expense — — Net of tax 1 1 Amounts reclassified from Accumulated other comprehensive loss For the six months ended June 30, 2021 June 30, 2020 $ $ Net derivatives gains (losses) on cash flow hedge Natural gas swap contracts (1) (1 ) (8 ) Currency options and forwards (1) 26 (9 ) Net investment hedge (2) (9 ) — Total before tax 16 (17 ) Tax (expense) benefit (2 ) 4 Net of tax 14 (13 ) Amortization of defined benefit pension items Amortization of net actuarial loss (3) (5 ) (4 ) Amortization of prior year service costs (3) (1 ) (1 ) Discontinued operations (4 ) — Total before tax (10 ) (5 ) Tax benefit 2 1 Net of tax (8 ) (4 ) Amortization of other post-retirement benefit items Amortization of net actuarial gain (3) 1 1 Total before tax 1 1 Tax expense — — Net of tax 1 1 ( 1 ) These amounts are included in Cost of Sales in the Consolidated Statements of Earnings and Comprehensive Income (Loss). (2) This amount is included in (Loss) earnings from discontinued operations, net of taxes in the Consolidated Statements of Earnings and Comprehensive Income (Loss). ( 3 ) These amounts are included in the computation of net periodic benefit cost (see Note 7 “Pension Plans and Other Post-Retirement Benefit Plans” for more details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2021 $ Balance at beginning of year 47 Additions and other changes 2 Environmental spending (2 ) Balance at end of period 47 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 6 Months Ended |
Jun. 30, 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 For the six months ended SEGMENT DATA June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 $ $ $ $ Sales by product group Communication papers 498 385 986 1,008 Specialty and packaging papers 145 127 282 277 Market pulp 357 278 665 525 Absorbent core materials 10 12 21 23 Consolidated sales 1,010 802 1,954 1,833 Operating income (loss) from continuing operations (1) Pulp and Paper 95 3 107 7 Corporate (27 ) (7 ) (37 ) (12 ) Consolidated operating income (loss) from continuing operations 68 (4 ) 70 (5 ) Interest expense, net 20 15 35 29 Non-service components of net periodic benefit cost (6 ) (5 ) (12 ) (9 ) Earnings (loss) before income taxes and equity loss 54 (14 ) 47 (25 ) Income tax expense (benefit) 16 (11 ) 16 (8 ) Equity method investment loss, net of taxes — — — 1 Earnings (loss) from continuing operations 38 (3 ) 31 (18 ) (Loss) earnings from discontinued operations, net of taxes (1 ) 22 (23 ) 42 Net earnings 37 19 8 24 (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 six months ended June 30, 2021, the Company recognized $6 million as a reduction of costs related to this program (CDN $8 million) ($5 million in Cost of sales (CDN $6 million) and $1 million in Selling, general and administrative (CDN $2 million)). |
Supplemental Guarantor Financ_2
Supplemental Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Loss) | For the three months ended June 30, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 857 415 (262 ) 1,010 Operating expenses Cost of sales, excluding depreciation and amortization — 728 323 (262 ) 789 Depreciation and amortization — 38 15 — 53 Selling, general and administrative (3 ) (19 ) 90 — 68 Impairment of long-lived assets — 1 — — 1 Closure and restructuring costs 15 9 1 — 25 Asset conversion costs — 5 — — 5 Other operating loss (income), net 1 (2 ) 2 — 1 13 760 431 (262 ) 942 Operating (loss) income (13 ) 97 (16 ) — 68 Interest expense (income), net 20 16 (16 ) — 20 Non-service components of net periodic benefit cost — (3 ) (3 ) — (6 ) (Loss) earnings before income taxes (33 ) 84 3 — 54 Income tax expense — 16 — — 16 Share in earnings of equity accounted investees 70 2 — (72 ) — Earnings from continuing operations 37 70 3 (72 ) 38 Loss from discontinued operations, net of taxes — — (1 ) — (1 ) Net earnings 37 70 2 (72 ) 37 Other comprehensive income 38 30 13 (43 ) 38 Comprehensive income 75 100 15 (115 ) 75 For the six months ended June 30, 2021 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating AND COMPREHENSIVE INCOME Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,671 818 (535 ) 1,954 Operating expenses Cost of sales, excluding depreciation and amortization — 1,487 646 (535 ) 1,598 Depreciation and amortization — 76 31 — 107 Selling, general and administrative (1 ) 10 123 — 132 Impairment of long-lived assets — 7 — — 7 Closure and restructuring costs 15 12 1 — 28 Asset conversion costs — 13 — — 13 Other operating (income) loss, net (1 ) (2 ) 2 — (1 ) 13 1,603 803 (535 ) 1,884 Operating (loss) income (13 ) 68 15 — 70 Interest expense (income), net 36 30 (31 ) — 35 Non-service components of net periodic benefit cost — (5 ) (7 ) — (12 ) (Loss) earnings before income taxes (49 ) 43 53 — 47 Income tax (benefit) expense (9 ) 11 14 — 16 Share in earnings of equity accounted investees 61 45 — (106 ) — Earnings from continuing operations 21 77 39 (106 ) 31 (Loss) earnings from discontinued operations, net of taxes (13 ) (16 ) 6 — (23 ) Net earnings 8 61 45 (106 ) 8 Other comprehensive income 122 112 89 (201 ) 122 Comprehensive income 130 173 134 (307 ) 130 For the three months ended June 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE INCOME (LOSS) Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 703 315 (216 ) 802 Operating expenses Cost of sales, excluding depreciation and amortization — 665 244 (216 ) 693 Depreciation and amortization — 42 14 — 56 Selling, general and administrative 3 27 31 — 61 Closure and restructuring costs — 1 — — 1 Other operating loss (income), net 1 — (6 ) — (5 ) 4 735 283 (216 ) 806 Operating (loss) income (4 ) (32 ) 32 — (4 ) Interest expense (income), net 16 19 (20 ) — 15 Non-service components of net periodic benefit cost — (3 ) (2 ) — (5 ) (Loss) earnings before income taxes (20 ) (48 ) 54 — (14 ) Income tax (benefit) expense (92 ) 53 28 — (11 ) Share in earnings of equity accounted investees (53 ) (112 ) — 165 — Earnings (loss) from continuing operations 19 (213 ) 26 165 (3 ) Earnings (loss) from discontinued operations, net of taxes — 160 (138 ) — 22 Net earnings (loss) 19 (53 ) (112 ) 165 19 Other comprehensive income 76 74 40 (114 ) 76 Comprehensive income (loss) 95 21 (72 ) 51 95 For the six months ended June 30, 2020 Non- CONDENSED CONSOLIDATING STATEMENT OF EARNINGS Guarantor Guarantor Consolidating (LOSS) AND COMPREHENSIVE LOSS Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Sales — 1,613 664 (444 ) 1,833 Operating expenses Cost of sales, excluding depreciation and amortization — 1,509 534 (444 ) 1,599 Depreciation and amortization — 85 29 — 114 Selling, general and administrative 5 31 91 — 127 Closure and restructuring costs — 1 — — 1 Other operating loss (income), net 1 3 (7 ) — (3 ) 6 1,629 647 (444 ) 1,838 Operating (loss) income (6 ) (16 ) 17 — (5 ) Interest expense (income), net 32 38 (41 ) — 29 Non-service components of net periodic benefit cost — (4 ) (5 ) — (9 ) (Loss) earnings before income taxes and equity loss (38 ) (50 ) 63 — (25 ) Income tax (benefit) expense (94 ) 60 26 — (8 ) Equity method investment loss, net of taxes — 1 — — 1 Share in earnings of equity accounted investees (32 ) (86 ) — 118 — Earnings (loss) from continuing operations 24 (197 ) 37 118 (18 ) Earnings (loss) from discontinued operations, net of taxes — 165 (123 ) — 42 Net earnings (loss) 24 (32 ) (86 ) 118 24 Other comprehensive loss (39 ) (43 ) (33 ) 76 (39 ) Comprehensive loss (15 ) (75 ) (119 ) 194 (15 ) |
Condensed Consolidating Balance Sheet | June 30, 2021 Non- Guarantor Guarantor Consolidating CONDENSED CONSOLIDATING BALANCE SHEET Parent Subsidiaries Subsidiaries Adjustments Consolidated $ $ $ $ $ Assets Current assets Cash and cash equivalents 331 8 7 — 346 Receivables 1 109 410 — 520 Inventories — 396 221 — 617 Prepaid expenses 15 44 8 — 67 Income and other taxes receivable 44 — 16 (16 ) 44 Intercompany accounts 1,080 1,237 730 (3,047 ) — Total current assets 1,471 1,794 1,392 (3,063 ) 1,594 Property, plant and equipment, net — 1,361 679 — 2,040 Operating lease right-of-use assets — 41 9 — 50 Intangible assets, net — 24 5 — 29 Investments in affiliates 2,846 1,825 — (4,671 ) — Intercompany long-term advances 5 — 1,266 (1,271 ) — Other assets 28 40 153 (12 ) 209 Total assets 4,350 5,085 3,504 (9,017 ) 3,922 Liabilities and shareholders' equity Current liabilities Trade and other payables 18 363 158 — 539 Intercompany accounts 1,028 780 1,239 (3,047 ) — Income and other taxes payable 3 24 8 (16 ) 19 Operating lease liabilities due within one year — 15 4 — 19 Long-term debt due within one year — — 1 — 1 Total current liabilities 1,049 1,182 1,410 (3,063 ) 578 Long-term debt 495 — 8 — 503 Operating lease liabilities — 39 5 — 44 Intercompany long-term loans 602 669 — (1,271 ) — Deferred income taxes and other 3 251 92 (12 ) 334 Other liabilities and deferred credits 28 98 164 — 290 Shareholders' equity 2,173 2,846 1,825 (4,671 ) 2,173 Total liabilities and shareholders' equity 4,350 5,085 3,504 (9,017 ) 3,922 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 six months ended June 30, 2021 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings 8 61 45 (106 ) 8 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (48 ) 59 (35 ) 106 82 Cash flows (used for) provided from operating activities (40 ) 120 10 — 90 Investing activities Additions to property, plant and equipment — (97 ) (25 ) — (122 ) Proceeds from disposals of property, plant and equipment — 1 — — 1 Proceeds from sale of business, net of cash disposed — — 897 — 897 Cash flows (used for) provided from investing activities — (96 ) 872 — 776 Financing activities Stock repurchase (223 ) — — — (223 ) Repayments of long-term debt, including make-whole premium (605 ) — (1 ) — (606 ) Increase in long-term advances to related parties — (21 ) (970 ) 991 — Decrease in long-term advances to related parties 991 — — (991 ) — Cash flows provided from (used for) financing activities 163 (21 ) (971 ) — (829 ) Net increase (decrease) in cash and cash equivalents 123 3 (89 ) — 37 Cash and cash equivalents at beginning of period 208 5 96 — 309 Cash and cash equivalents at end of period 331 8 7 — 346 For the six months ended June 30, 2020 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Adjustments Consolidated $ $ $ $ $ Operating activities Net earnings (loss) 24 (32 ) (86 ) 118 24 Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings (loss) (182 ) 57 374 (118 ) 131 Cash flows (used for) provided from operating activities (158 ) 25 288 — 155 Investing activities Additions to property, plant and equipment — (61 ) (41 ) — (102 ) Acquisition of business, net of cash acquired — — (30 ) — (30 ) Cash flows used for investing activities — (61 ) (71 ) — (132 ) Financing activities Dividend payments (51 ) — — — (51 ) Stock repurchase (59 ) — — — (59 ) Net change in bank indebtedness — (10 ) — — (10 ) Change in revolving credit facility (80 ) — — — (80 ) Proceeds from receivables securitization facility — — 25 — 25 Repayments of receivables securitization facility — — (80 ) — (80 ) Issuance of long-term debt 300 — — — 300 Increase in long-term advances to related parties — — (141 ) 141 — Decrease in long-term advances to related parties 75 66 — (141 ) — Other (4 ) — — — (4 ) Cash flows provided from (used for) financing activities 181 56 (196 ) — 41 Net increase in cash and cash equivalents 23 20 21 — 64 Impact of foreign exchange on cash — — (1 ) — (1 ) Cash and cash equivalents at beginning of period 1 11 49 — 61 Cash and cash equivalents at end of period 24 31 69 — 124 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | Apr. 08, 2021 | Mar. 01, 2021 | Jun. 30, 2021 | Jun. 30, 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 repurchase shares | 223 | $ 59 | ||
Payment of debt | 606 | |||
Redemption price percentage | 100.00% | |||
Principal Amount | $ 300 | |||
Make-whole premium | $ 11 | 11 | ||
Term Loan | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Payment of debt | $ 294 | |||
Four Point Four Percent | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Redemption price percentage | 100.00% | |||
Principal Amount | $ 300 | |||
Make-whole premium | $ 11 | |||
Personal Care | 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disposal Group Not Discontinued Operation Income Statement Disclosures [Abstract] | ||||
Sales | $ 229 | $ 154 | $ 495 | |
Operating expenses | ||||
Cost of sales, excluding depreciation and amortization | 163 | 111 | 359 | |
Depreciation and amortization | 15 | 10 | 29 | |
Selling, general and administrative | 32 | 24 | 68 | |
Closure and restructuring costs | 1 | |||
Other operating loss, net | 1 | 1 | 1 | |
Operating expenses | 211 | 147 | 457 | |
Operating income | 18 | 7 | 38 | |
Net loss on disposition of discontinued operations | $ (1) | (33) | ||
(Loss) earnings from discontinued operations before income taxes | (1) | 18 | (26) | 38 |
Income tax benefit | (4) | (3) | (4) | |
Net (loss) earnings from discontinued operations | $ (1) | $ 22 | $ (23) | $ 42 |
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 | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net Cash Provided By Used In Discontinued Operations [Abstract] | ||
Cash flows from operating activities | $ 16 | $ 42 |
Cash flows used for investing activities | $ (3) | $ (16) |
Acquisition of Business - Addit
Acquisition of Business - Additional Information (Detail) - USD ($) $ in Millions | Apr. 27, 2020 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Purchase price | $ 30 | |
Appvion Operations, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 20 |
Acquisition of Business - Sched
Acquisition of Business - Schedule of Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Operating lease right-of-use assets (NOTE 11) | $ 50 | $ 59 |
Appvion Operations, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Inventories | 11 | |
Property, plant and equipment | 23 | |
Operating lease right-of-use assets (NOTE 11) | 2 | |
Total assets | 36 | |
Less: Assumed Liabilities | 6 | |
Fair value of net assets acquired at the date of acquisition | $ 30 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities and Fair Value Measurement - Additional Information (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2020shares | Jun. 30, 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 | 22 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 | 30 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 | $ 8 | ||
Natural Gas Swap Contracts [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss will be recognized upon maturity of derivatives | 6 | ||
Currency Derivatives [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 45 | ||
Currency Derivatives [Member] | Cost of Sale [Member] | |||
Derivative [Line Items] | |||
Cumulative (loss) gain recorded in accumulated other comprehensive loss | 36 | ||
Pulp and Paper Segment Customer One [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | 83 | $ 58 | |
Pulp and Paper Segment Customer Two [Member] | |||
Derivative [Line Items] | |||
Receivables from major customers | $ 64 | $ 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 | 16.00% | 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 | 12.00% | 12.00% |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities and Fair Value Measurement - Derivative Financial Instruments for Natural Gas Contracts Outstanding (Detail) | Jun. 30, 2021USD ($)MMBTU |
2021 [Member] | |
Derivative [Line Items] | |
Notional contractual quantity under derivative contracts | MMBTU | 4,490,000 |
Notional contractual value under derivative contracts | $ | $ 13,000,000 |
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] | 6 Months Ended |
Jun. 30, 2021CAD ($) | |
CAD/USD Denominated Notional Contractual Value For 2021 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 353,000,000 |
Percentage of forecasted net exposures under contracts | 74.00% |
Currency exposure hedged, Average Protection rate | 1.3222 |
Currency exposure hedged, Average Obligation rate | 1.3409 |
CAD/USD Denominated Notional Contractual Value For 2022 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 499,000,000 |
Percentage of forecasted net exposures under contracts | 53.00% |
Currency exposure hedged, Average Protection rate | 1.3164 |
Currency exposure hedged, Average Obligation rate | 1.3302 |
CAD/USD Denominated Notional Contractual Value For 2023 [Member] | |
Derivative [Line Items] | |
Notional contractual value | $ 85,000,000 |
Percentage of forecasted net exposures under contracts | 9.00% |
Currency exposure hedged, Average Protection rate | 1.2655 |
Currency exposure hedged, Average Obligation rate | 1.2655 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Total Assets | $ 54 | $ 48 |
Total Liabilities | 1 | 6 |
Long-term debt | 564 | 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 | 1 | 13 |
Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 37 | 31 |
Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 9 | 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 | 6 | |
Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 2 | 1 |
Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | |
Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 3 | |
Equity Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Equity swap contracts | 14 | 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 | 14 | 2 |
Significant Observable Inputs (Level 2) [Member] | ||
Derivative [Line Items] | ||
Total Assets | 54 | 48 |
Total Liabilities | 1 | 6 |
Long-term debt | 564 | 1,221 |
Significant Observable Inputs (Level 2) [Member] | Long Term Debt Due within One Year [Member] | ||
Derivative [Line Items] | ||
Long-term debt | 1 | 13 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Prepaid Expenses [Member] | ||
Derivative [Line Items] | ||
Total Assets | 37 | 31 |
Significant Observable Inputs (Level 2) [Member] | Currency Derivatives [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | 9 | 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 | 6 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Total Assets | $ 2 | 1 |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Trade and Other Payables [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | 2 | |
Significant Observable Inputs (Level 2) [Member] | Natural Gas Swap Contracts [Member] | Other Liabilities and Deferred Credits [Member] | ||
Derivative [Line Items] | ||
Total Liabilities | $ 3 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities and Fair Value Measurement - Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
The carrying value of the Company's long-term debt due within one year | $ 1 | $ 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 | $ 1 | $ 13 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation Between Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Earnings (loss) from continuing operations | $ 38 | $ (3) | $ 31 | $ (18) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (1) | 22 | (23) | 42 |
Net (loss) earnings | $ 37 | $ 19 | $ 8 | $ 24 |
Basic | 50.3 | 55.2 | 51.9 | 55.6 |
Effect of dilutive securities (millions) | 0.2 | 0.1 | 0.2 | 0.1 |
Weighted average number of diluted common shares outstanding (millions) | 50.5 | 55.3 | 52.1 | 55.7 |
Basic net (loss) earnings | ||||
Earnings (loss) from continuing operations | $ 0.76 | $ (0.05) | $ 0.59 | $ (0.32) |
(Loss) earnings from discontinued operations | (0.02) | 0.39 | (0.44) | 0.75 |
Basic net (loss) earnings | 0.74 | 0.34 | 0.15 | 0.43 |
Diluted net (loss) earnings | ||||
Earnings (loss) from continuing operations | 0.75 | (0.05) | 0.59 | (0.32) |
(Loss) earnings from discontinued operations | (0.02) | 0.39 | (0.44) | 0.75 |
Diluted net (loss) earnings | $ 0.73 | $ 0.34 | $ 0.15 | $ 0.43 |
Earnings Per Common Share - Sec
Earnings Per Common Share - Securities that Could Potentially Dilute Basic Earnings Per Common Share in Future (Detail) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Options to purchase common shares | 409,776 | 76,123 | 409,776 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Pension expense | $ 8 | $ 8 | $ 18 | $ 19 |
Pension Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | 5 | 2 | 8 | 4 |
Other Post-Retirement Benefit Plans [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Plan contributions | $ 1 | $ 1 | $ 2 | $ 2 |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 7 | $ 7 | $ 14 | $ 14 |
Interest expense | 8 | 9 | 16 | 20 |
Expected return on plan assets | (17) | (17) | (33) | (34) |
Amortization of net actuarial loss (gain) | 2 | 2 | 4 | 4 |
Settlement loss | 1 | 1 | ||
Amortization of prior year service costs | 1 | 1 | 1 | 1 |
Net periodic benefit cost | 2 | 2 | 3 | 5 |
Other Post-Retirement Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | ||
Interest expense | 1 | 1 | 1 | 1 |
Amortization of net actuarial loss (gain) | $ (1) | (1) | $ (1) | (1) |
Net periodic benefit cost | $ 1 | $ 1 |
Other Operating Loss (Income)_3
Other Operating Loss (Income), Net - Components of Other Operating Loss (Income), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income And Expenses [Abstract] | ||||
Bad debt expense | $ 1 | $ (2) | $ 5 | |
Environmental provision | 1 | 1 | ||
Non-production agreement terminated | (7) | (7) | ||
Foreign exchange loss (gain) | $ 1 | 1 | 2 | (1) |
Other | (2) | (1) | ||
Other operating loss (income), net | $ 1 | $ (5) | $ (1) | $ (3) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ 16 | $ (11) | $ 16 | $ (8) |
Current income tax expense (benefit) | 16 | (2) | 15 | (5) |
Deferred income tax expense (benefit) | 0 | $ (9) | 1 | (3) |
Income tax payments, net of refunds | $ 8 | $ 1 | $ (24) | |
Effective income tax rate | 30.00% | 79.00% | 34.00% | 32.00% |
Income tax (expense) benefit related to potential acquisition of company. | $ 0 | $ 0 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Work in process and finished goods | $ 304 | $ 321 |
Raw materials | 103 | 107 |
Operating and maintenance supplies | 210 | 202 |
Total inventories | $ 617 | $ 630 |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 5 | $ 6 | $ 11 | $ 11 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related To Leases (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 12 | $ 11 |
Operating cash flows from finance leases | 1 | |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 2 | $ 4 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Operating leases | ||
Operating leases right-of-use assets | $ 50 | $ 59 |
Lease liabilities due within one year | 19 | 20 |
Operating lease liabilities (NOTE 11) | 44 | 50 |
Operating lease liabilities, total | 63 | 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 6 months | 4 years 8 months 12 days |
Finance leases | 8 years 4 months 24 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases, 2021 | $ 10 | |
Operating leases, 2022 | 19 | |
Operating leases, 2023 | 15 | |
Operating leases, 2024 | 11 | |
Operating leases, 2025 | 6 | |
Operating leases, Thereafter | 9 | |
Operating leases, Total lease payments | 70 | |
Operating leases, Imputed interest | 7 | |
Operating leases, Total lease liabilities | 63 | $ 70 |
Finance leases, 2021 | 1 | |
Finance leases, 2022 | 1 | |
Finance leases, 2023 | 2 | |
Finance leases, 2024 | 2 | |
Finance leases, 2025 | 1 | |
Finance leases, Thereafter | 5 | |
Finance leases, Total lease payments | 12 | |
Finance leases, Imputed interest | 2 | |
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) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)EmployeeT$ / shares | Jun. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||||
Severance and termination costs | $ 25 | $ 1 | $ 28 | $ 1 |
Other restructuring costs | 1 | |||
Asset conversion costs (NOTE 12) | $ 5 | $ 13 | ||
Previous and Ongoing Closures and Restructuring [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Severance and termination costs | $ 1 | |||
Restart of Paper Machine at Ashdown, Arkansas Mill [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Addition of annual uncoated freesheet paper capacity | T | 185,000 | |||
Reduction in annual production capacity of baled SBSK pulp | T | 185,000 | |||
Estimated Restart Cost | $ 10 | |||
Acquisition [Member] | Paper Excellence | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Business acquisition share price | $ / shares | $ 55.50 | $ 55.50 | ||
Enterprise value of business entity | $ 3,000 | |||
Restructuring costs | $ 18 | |||
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 | |||
Accelerated depreciation | 1 | $ 7 | ||
Severance and termination costs | 1 | 4 | ||
Pension settlement loss | 1 | 1 | ||
Other restructuring costs | 4 | $ 4 | ||
Conversion Of Kingsport Tennessee Mill | Kingsport, Tennessee Mill [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Forecasted production of high quality recycled linerboard and medium | T | 600,000 | |||
Forecasted conversion costs | $ 350 | |||
Asset conversion costs (NOTE 12) | $ 5 | $ 13 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | Apr. 08, 2021 | Mar. 11, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | |||
Debt instrument, interest rate of notes | 4.40% | ||
Principal Amount | $ 300 | ||
Redemption price percentage | 100.00% | ||
Debt instrument, redemption premium | $ 11 | $ 11 | |
Repayments of debt | $ 606 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity date | May 5, 2025 | ||
Unamortized debt issuance cost | $ 2 | ||
Repayments of debt | $ 294 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Beginning balance | $ (304) | ||||
Other comprehensive (loss) income before reclassifications | 129 | $ 68 | |||
Amounts reclassified from Accumulated other comprehensive loss | (7) | 21 | |||
Other comprehensive income (loss) | $ 38 | $ 76 | 122 | $ (39) | 89 |
Ending balance | (182) | (182) | (304) | ||
Balance | 2,091 | 2,181 | 2,260 | 2,376 | 2,376 |
Balance | 2,173 | 2,277 | 2,173 | 2,277 | 2,260 |
Natural Gas Swap Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 9 | 1 | |||
Currency Options [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 3 | 3 | |||
Foreign Exchange Forward Contracts [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 15 | 23 | |||
Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 84 | 63 | |||
Net Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 18 | (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 | 27 | 27 | |||
Amounts reclassified from Accumulated other comprehensive loss | (14) | 12 | |||
Other comprehensive income (loss) | 13 | 39 | |||
Ending balance | 47 | 47 | 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 | 9 | 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 | 3 | 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 | 15 | 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 | 18 | (21) | |||
Amounts reclassified from Accumulated other comprehensive loss | 8 | 11 | |||
Other comprehensive income (loss) | 26 | (10) | |||
Ending balance | (181) | (181) | (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 | 18 | (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 | (1) | (2) | |||
Other comprehensive income (loss) | (1) | (3) | |||
Ending balance | 7 | 7 | 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 | 84 | 63 | |||
Other comprehensive income (loss) | 84 | 63 | |||
Ending balance | (55) | (55) | (139) | ||
Foreign Currency Items [Member] | Foreign Currency Items [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | 84 | 63 | |||
Accumulated Other Comprehensive Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (220) | (508) | (304) | (393) | (393) |
Balance | $ (182) | $ (432) | (182) | $ (432) | $ (304) |
Accumulated Other Comprehensive Loss [Member] | Net Loss [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Other comprehensive (loss) income before reclassifications | $ 18 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings (loss) before income taxes and equity loss | $ 54 | $ (14) | $ 47 | $ (25) |
Tax (expense) benefit | (16) | 11 | (16) | 8 |
Net (loss) earnings | 37 | 19 | 8 | 24 |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (1) | 22 | (23) | 42 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings (loss) before income taxes and equity loss | 15 | (8) | 16 | (17) |
Tax (expense) benefit | (3) | 2 | (2) | 4 |
Net (loss) earnings | 12 | (6) | 14 | (13) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Natural Gas Swap Contracts [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | (1) | (3) | (1) | (8) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Currency Options and Forwards [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Sales | 16 | (5) | 26 | (9) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Net Derivative Gains (Losses) on Cash Flow Hedge [Member] | Net Investment Hedge | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (9) | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial gain (loss) | (3) | (2) | (5) | (4) |
Amortization of prior year service cost | (1) | (1) | (1) | (1) |
Earnings (loss) before income taxes and equity loss | (4) | (3) | (10) | (5) |
Tax (expense) benefit | 1 | 2 | 1 | |
Net (loss) earnings | (3) | (3) | (8) | (4) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (4) | |||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Other Post-Retirement Benefit Plans [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net actuarial gain (loss) | 1 | 1 | 1 | 1 |
Earnings (loss) before income taxes and equity loss | 1 | 1 | 1 | 1 |
Net (loss) earnings | $ 1 | $ 1 | $ 1 | $ 1 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Mar. 02, 2021 | Apr. 15, 2020 | Feb. 18, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Shareholders' Equity [Line Items] | |||||
Declared date | Feb. 18, 2020 | ||||
Dividend per share | $ 0.455 | ||||
Dividends paid | $ 25,000,000 | ||||
Payment date | Apr. 15, 2020 | ||||
Record date | Apr. 2, 2020 | ||||
Treasury stock shares repurchased | 629,959 | 1,798,306 | |||
Treasury stock repurchased | $ 223,000,000 | $ 59,000,000 | |||
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 shares repurchased | 4,430,906 | ||||
Treasury stock repurchased | $ 200,000,000 | ||||
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 | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Balance at beginning of year | $ 47 |
Additions and other changes | 2 |
Environmental spending | (2) |
Balance at end of period | $ 47 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,010 | $ 802 | $ 1,954 | $ 1,833 |
Consolidated operating income (loss) from continuing operations | 68 | (4) | 70 | (5) |
Interest expense, net | 20 | 15 | 35 | 29 |
Non-service components of net periodic benefit cost | (6) | (5) | (12) | (9) |
Earnings (loss) before income taxes and equity loss | 54 | (14) | 47 | (25) |
Income tax expense (benefit) (NOTE 9) | 16 | (11) | 16 | (8) |
Equity method investment loss, net of taxes | 1 | |||
Earnings (loss) from continuing operations | 38 | (3) | 31 | (18) |
(Loss) earnings from discontinued operations, net of taxes (NOTE 3) | (1) | 22 | (23) | 42 |
Net earnings | 37 | 19 | 8 | 24 |
Absorbent Core Materials | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 10 | 12 | 21 | 23 |
Operating Segments [Member] | Communication Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 498 | 385 | 986 | 1,008 |
Operating Segments [Member] | Specialty and Packaging Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 145 | 127 | 282 | 277 |
Operating Segments [Member] | Market Pulp [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 357 | 278 | 665 | 525 |
Operating Segments [Member] | Pulp and Paper [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated operating income (loss) from continuing operations | 95 | 3 | 107 | 7 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Consolidated operating income (loss) from continuing operations | $ (27) | $ (7) | $ (37) | $ (12) |
Segment Disclosures - Analysi_2
Segment Disclosures - Analysis and Reconciliation of Reportable Segment Information (Parenthetical) (Detail) - 6 months ended Jun. 30, 2021 - Canada Emergency Wage Subsidy [Member] $ in Millions, $ in Millions | USD ($) | CAD ($) |
Reduction of Costs [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 6 | $ 8 |
Cost of Sale [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 5 | 6 |
Selling, General And Administrative [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ 1 | $ 2 |
Supplemental Guarantor Financ_3
Supplemental Guarantor Financial Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Condensed Income Statements Captions [Line Items] | |||||
Sales | $ 1,010 | $ 802 | $ 1,954 | $ 1,833 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 789 | 693 | 1,598 | 1,599 | |
Depreciation and amortization | 53 | 56 | 107 | 114 | |
Selling, general and administrative | 68 | 61 | 132 | 127 | |
Impairment of long-lived assets | 1 | 7 | |||
Closure and restructuring costs | 25 | 1 | 28 | 1 | |
Asset conversion costs (NOTE 12) | 5 | 13 | |||
Other operating loss (income), net (NOTE 8) | 1 | (5) | (1) | (3) | |
Operating expenses | 942 | 806 | 1,884 | 1,838 | |
Operating income (loss) | 68 | (4) | 70 | (5) | |
Interest expense (income), net | 20 | 15 | 35 | 29 | |
Non-service components of net periodic benefit cost | (6) | (5) | (12) | (9) | |
Earnings (loss) before income taxes and equity loss | 54 | (14) | 47 | (25) | |
Income tax (benefit) expense | 16 | (11) | 16 | (8) | |
Equity method investment loss, net of taxes | 1 | ||||
Earnings (loss) from continuing operations | 38 | (3) | 31 | (18) | |
Loss from discontinued operations, net of taxes | (1) | 22 | (23) | 42 | |
Net (loss) earnings | 37 | 19 | 8 | 24 | |
Other comprehensive income (loss) | 38 | 76 | 122 | (39) | $ 89 |
Comprehensive income (loss) | 75 | 95 | 130 | (15) | |
Reportable Legal Entities [Member] | Parent [Member] | |||||
Operating expenses | |||||
Selling, general and administrative | (3) | 3 | (1) | 5 | |
Closure and restructuring costs | 15 | 15 | |||
Other operating loss (income), net (NOTE 8) | 1 | 1 | (1) | 1 | |
Operating expenses | 13 | 4 | 13 | 6 | |
Operating income (loss) | (13) | (4) | (13) | (6) | |
Interest expense (income), net | 20 | 16 | 36 | 32 | |
Earnings (loss) before income taxes and equity loss | (33) | (20) | (49) | (38) | |
Income tax (benefit) expense | (92) | (9) | (94) | ||
Share in earnings of equity accounted investees | 70 | (53) | 61 | (32) | |
Earnings (loss) from continuing operations | 37 | 19 | 21 | 24 | |
Loss from discontinued operations, net of taxes | (13) | ||||
Net (loss) earnings | 37 | 19 | 8 | 24 | |
Other comprehensive income (loss) | 38 | 76 | 122 | (39) | |
Comprehensive income (loss) | 75 | 95 | 130 | (15) | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 857 | 703 | 1,671 | 1,613 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 728 | 665 | 1,487 | 1,509 | |
Depreciation and amortization | 38 | 42 | 76 | 85 | |
Selling, general and administrative | (19) | 27 | 10 | 31 | |
Impairment of long-lived assets | 1 | 7 | |||
Closure and restructuring costs | 9 | 1 | 12 | 1 | |
Asset conversion costs (NOTE 12) | 5 | 13 | |||
Other operating loss (income), net (NOTE 8) | (2) | (2) | 3 | ||
Operating expenses | 760 | 735 | 1,603 | 1,629 | |
Operating income (loss) | 97 | (32) | 68 | (16) | |
Interest expense (income), net | 16 | 19 | 30 | 38 | |
Non-service components of net periodic benefit cost | (3) | (3) | (5) | (4) | |
Earnings (loss) before income taxes and equity loss | 84 | (48) | 43 | (50) | |
Income tax (benefit) expense | 16 | 53 | 11 | 60 | |
Equity method investment loss, net of taxes | 1 | ||||
Share in earnings of equity accounted investees | 2 | (112) | 45 | (86) | |
Earnings (loss) from continuing operations | 70 | (213) | 77 | (197) | |
Loss from discontinued operations, net of taxes | 160 | (16) | 165 | ||
Net (loss) earnings | 70 | (53) | 61 | (32) | |
Other comprehensive income (loss) | 30 | 74 | 112 | (43) | |
Comprehensive income (loss) | 100 | 21 | 173 | (75) | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | 415 | 315 | 818 | 664 | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | 323 | 244 | 646 | 534 | |
Depreciation and amortization | 15 | 14 | 31 | 29 | |
Selling, general and administrative | 90 | 31 | 123 | 91 | |
Closure and restructuring costs | 1 | 1 | |||
Other operating loss (income), net (NOTE 8) | 2 | (6) | 2 | (7) | |
Operating expenses | 431 | 283 | 803 | 647 | |
Operating income (loss) | (16) | 32 | 15 | 17 | |
Interest expense (income), net | (16) | (20) | (31) | (41) | |
Non-service components of net periodic benefit cost | (3) | (2) | (7) | (5) | |
Earnings (loss) before income taxes and equity loss | 3 | 54 | 53 | 63 | |
Income tax (benefit) expense | 28 | 14 | 26 | ||
Earnings (loss) from continuing operations | 3 | 26 | 39 | 37 | |
Loss from discontinued operations, net of taxes | (1) | (138) | 6 | (123) | |
Net (loss) earnings | 2 | (112) | 45 | (86) | |
Other comprehensive income (loss) | 13 | 40 | 89 | (33) | |
Comprehensive income (loss) | 15 | (72) | 134 | (119) | |
Consolidating Adjustments [Member] | |||||
Condensed Income Statements Captions [Line Items] | |||||
Sales | (262) | (216) | (535) | (444) | |
Operating expenses | |||||
Cost of sales, excluding depreciation and amortization | (262) | (216) | (535) | (444) | |
Operating expenses | (262) | (216) | (535) | (444) | |
Share in earnings of equity accounted investees | (72) | 165 | (106) | 118 | |
Earnings (loss) from continuing operations | (72) | 165 | (106) | 118 | |
Net (loss) earnings | (72) | 165 | (106) | 118 | |
Other comprehensive income (loss) | (43) | (114) | (201) | 76 | |
Comprehensive income (loss) | $ (115) | $ 51 | $ (307) | $ 194 |
Supplemental Guarantor Financ_5
Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||||||
Cash and cash equivalents | $ 346 | $ 309 | ||||
Receivables | 520 | 380 | ||||
Inventories | 617 | 630 | ||||
Prepaid expenses | 67 | 50 | ||||
Income and other taxes receivable | 44 | 54 | ||||
Current assets held for sale (NOTE 3) | 1,133 | |||||
Total current assets | 1,594 | 2,556 | ||||
Property, plant and equipment, net | 2,040 | 2,023 | ||||
Operating lease right-of-use assets | 50 | 59 | ||||
Intangible assets, net | 29 | 29 | ||||
Other assets | 209 | 189 | ||||
Total assets | 3,922 | 4,856 | ||||
Current liabilities | ||||||
Trade and other payables | 539 | 484 | ||||
Income and other taxes payable | 19 | 15 | ||||
Operating lease liabilities due within one year | 19 | 20 | ||||
Long-term debt due within one year | 1 | 13 | ||||
Liabilities held for sale | 295 | |||||
Total current liabilities | 578 | 827 | ||||
Long-term debt | 503 | 1,084 | ||||
Operating lease liabilities | 44 | 50 | ||||
Deferred income taxes and other | 334 | 321 | ||||
Other liabilities and deferred credits | 290 | 314 | ||||
Shareholders' equity | 2,173 | $ 2,091 | 2,260 | $ 2,277 | $ 2,181 | $ 2,376 |
Total liabilities and shareholders' equity | 3,922 | 4,856 | ||||
Reportable Legal Entities [Member] | Parent [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 331 | 208 | ||||
Receivables | 1 | |||||
Prepaid expenses | 15 | 8 | ||||
Income and other taxes receivable | 44 | 36 | ||||
Intercompany accounts | 1,080 | 759 | ||||
Total current assets | 1,471 | 1,011 | ||||
Investments in affiliates | 2,846 | 3,558 | ||||
Intercompany long-term advances | 5 | 5 | ||||
Other assets | 28 | 11 | ||||
Total assets | 4,350 | 4,585 | ||||
Current liabilities | ||||||
Trade and other payables | 18 | 26 | ||||
Intercompany accounts | 1,028 | 677 | ||||
Income and other taxes payable | 3 | 3 | ||||
Long-term debt due within one year | 12 | |||||
Total current liabilities | 1,049 | 718 | ||||
Long-term debt | 495 | 1,075 | ||||
Intercompany long-term loans | 602 | 509 | ||||
Deferred income taxes and other | 3 | |||||
Other liabilities and deferred credits | 28 | 23 | ||||
Shareholders' equity | 2,173 | 2,260 | ||||
Total liabilities and shareholders' equity | 4,350 | 4,585 | ||||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 8 | 5 | ||||
Receivables | 109 | 65 | ||||
Inventories | 396 | 425 | ||||
Prepaid expenses | 44 | 37 | ||||
Intercompany accounts | 1,237 | 902 | ||||
Current assets held for sale (NOTE 3) | 488 | |||||
Total current assets | 1,794 | 1,922 | ||||
Property, plant and equipment, net | 1,361 | 1,348 | ||||
Operating lease right-of-use assets | 41 | 48 | ||||
Intangible assets, net | 24 | 24 | ||||
Investments in affiliates | 1,825 | 2,169 | ||||
Other assets | 40 | 41 | ||||
Total assets | 5,085 | 5,552 | ||||
Current liabilities | ||||||
Trade and other payables | 363 | 294 | ||||
Intercompany accounts | 780 | 491 | ||||
Income and other taxes payable | 24 | 11 | ||||
Operating lease liabilities due within one year | 15 | 15 | ||||
Liabilities held for sale | 121 | |||||
Total current liabilities | 1,182 | 932 | ||||
Operating lease liabilities | 39 | 44 | ||||
Intercompany long-term loans | 669 | 653 | ||||
Deferred income taxes and other | 251 | 237 | ||||
Other liabilities and deferred credits | 98 | 128 | ||||
Shareholders' equity | 2,846 | 3,558 | ||||
Total liabilities and shareholders' equity | 5,085 | 5,552 | ||||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 7 | 96 | ||||
Receivables | 410 | 315 | ||||
Inventories | 221 | 205 | ||||
Prepaid expenses | 8 | 5 | ||||
Income and other taxes receivable | 16 | 18 | ||||
Intercompany accounts | 730 | 433 | ||||
Current assets held for sale (NOTE 3) | 648 | |||||
Total current assets | 1,392 | 1,720 | ||||
Property, plant and equipment, net | 679 | 675 | ||||
Operating lease right-of-use assets | 9 | 11 | ||||
Intangible assets, net | 5 | 5 | ||||
Intercompany long-term advances | 1,266 | 1,157 | ||||
Other assets | 153 | 143 | ||||
Total assets | 3,504 | 3,711 | ||||
Current liabilities | ||||||
Trade and other payables | 158 | 167 | ||||
Intercompany accounts | 1,239 | 926 | ||||
Income and other taxes payable | 8 | 1 | ||||
Operating lease liabilities due within one year | 4 | 5 | ||||
Long-term debt due within one year | 1 | 1 | ||||
Liabilities held for sale | 174 | |||||
Total current liabilities | 1,410 | 1,274 | ||||
Long-term debt | 8 | 9 | ||||
Operating lease liabilities | 5 | 6 | ||||
Deferred income taxes and other | 92 | 90 | ||||
Other liabilities and deferred credits | 164 | 163 | ||||
Shareholders' equity | 1,825 | 2,169 | ||||
Total liabilities and shareholders' equity | 3,504 | 3,711 | ||||
Consolidating Adjustments [Member] | ||||||
Current assets | ||||||
Income and other taxes receivable | (16) | |||||
Intercompany accounts | (3,047) | (2,094) | ||||
Current assets held for sale (NOTE 3) | (3) | |||||
Total current assets | (3,063) | (2,097) | ||||
Investments in affiliates | (4,671) | (5,727) | ||||
Intercompany long-term advances | (1,271) | (1,162) | ||||
Other assets | (12) | (6) | ||||
Total assets | (9,017) | (8,992) | ||||
Current liabilities | ||||||
Trade and other payables | (3) | |||||
Intercompany accounts | (3,047) | (2,094) | ||||
Income and other taxes payable | (16) | |||||
Total current liabilities | (3,063) | (2,097) | ||||
Intercompany long-term loans | (1,271) | (1,162) | ||||
Deferred income taxes and other | (12) | (6) | ||||
Shareholders' equity | (4,671) | (5,727) | ||||
Total liabilities and shareholders' equity | $ (9,017) | $ (8,992) |
Supplemental Guarantor Financ_6
Supplemental Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net earnings | $ 8 | $ 24 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 82 | 131 |
Cash flows from operating activities | 90 | 155 |
Investing activities | ||
Additions to property, plant and equipment | (122) | (102) |
Acquisition of business, net of cash acquired | (30) | |
Proceeds from disposals of property, plant and equipment | 1 | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | |
Cash flows provided from (used for) investing activities | 776 | (132) |
Financing activities | ||
Dividend payments | (51) | |
Stock repurchase | (223) | (59) |
Repayments of long-term debt, including make-whole premium | (606) | |
Net change in bank indebtedness | (10) | |
Change in revolving credit facility | (80) | |
Proceeds from receivables securitization facility | 25 | |
Repayments of receivables securitization facility | (80) | |
Issuance of long-term debt | 300 | |
Other | (4) | |
Cash flows (used for) provided from financing activities | (829) | 41 |
Net increase in cash and cash equivalents | 37 | 64 |
Impact of foreign exchange on cash | (1) | |
Cash and cash equivalents at beginning of period | 309 | 61 |
Cash and cash equivalents at end of period | 346 | 124 |
Reportable Legal Entities [Member] | Parent [Member] | ||
Operating activities | ||
Net earnings | 8 | 24 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (48) | (182) |
Cash flows from operating activities | (40) | (158) |
Financing activities | ||
Dividend payments | (51) | |
Stock repurchase | (223) | (59) |
Repayments of long-term debt, including make-whole premium | (605) | |
Change in revolving credit facility | (80) | |
Issuance of long-term debt | 300 | |
Decrease in long-term advances to related parties | 991 | 75 |
Other | (4) | |
Cash flows (used for) provided from financing activities | 163 | 181 |
Net increase in cash and cash equivalents | 123 | 23 |
Cash and cash equivalents at beginning of period | 208 | 1 |
Cash and cash equivalents at end of period | 331 | 24 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net earnings | 61 | (32) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 59 | 57 |
Cash flows from operating activities | 120 | 25 |
Investing activities | ||
Additions to property, plant and equipment | (97) | (61) |
Proceeds from disposals of property, plant and equipment | 1 | |
Cash flows provided from (used for) investing activities | (96) | (61) |
Financing activities | ||
Net change in bank indebtedness | (10) | |
Increase in long-term advances to related parties | (21) | |
Decrease in long-term advances to related parties | 66 | |
Cash flows (used for) provided from financing activities | (21) | 56 |
Net increase in cash and cash equivalents | 3 | 20 |
Cash and cash equivalents at beginning of period | 5 | 11 |
Cash and cash equivalents at end of period | 8 | 31 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Net earnings | 45 | (86) |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | (35) | 374 |
Cash flows from operating activities | 10 | 288 |
Investing activities | ||
Additions to property, plant and equipment | (25) | (41) |
Acquisition of business, net of cash acquired | (30) | |
Proceeds from sale of business, net of cash disposed (NOTE 3) | 897 | |
Cash flows provided from (used for) investing activities | 872 | (71) |
Financing activities | ||
Repayments of long-term debt, including make-whole premium | (1) | |
Proceeds from receivables securitization facility | 25 | |
Repayments of receivables securitization facility | (80) | |
Increase in long-term advances to related parties | (970) | (141) |
Cash flows (used for) provided from financing activities | (971) | (196) |
Net increase in cash and cash equivalents | (89) | 21 |
Impact of foreign exchange on cash | (1) | |
Cash and cash equivalents at beginning of period | 96 | 49 |
Cash and cash equivalents at end of period | 7 | 69 |
Consolidating Adjustments [Member] | ||
Operating activities | ||
Net earnings | (106) | 118 |
Changes in operating and intercompany assets and liabilities and non-cash items, included in net earnings | 106 | (118) |
Financing activities | ||
Increase in long-term advances to related parties | 991 | 141 |
Decrease in long-term advances to related parties | $ (991) | $ (141) |