Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33776 | |
Entity Registrant Name | RESOLUTE FOREST PRODUCTS INC. | |
Entity Tax Identification Number | 98-0526415 | |
Entity Address, Address Line One | 111 Robert-Bourassa Boulevard | |
Entity Address, Address Line Two | Suite 5000 | |
Entity Address, City | Montreal | |
Entity Address, Postal Zip Code | H3C 2M1 | |
City Area Code | 514 | |
Local Phone Number | 875-2160 | |
Title of 12(g) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | RFP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,293,752 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001393066 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Province | QC | |
Entity Address, Country | CA | |
NEW YORK STOCK EXCHANGE, INC. [Member] | ||
Entity Listings [Line Items] | ||
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales | $ 755 | $ 976 | $ 1,550 | $ 1,850 |
Costs and expenses: | ||||
Depreciation and amortization | 42 | 54 | 82 | 107 |
Selling, general and administrative expenses | 36 | 42 | 73 | 85 |
Closure costs, impairment and other related charges | 0 | 1 | 0 | 1 |
Net gain on disposition of assets | 0 | (4) | 0 | (4) |
Operating income (loss) | 40 | 121 | 104 | 169 |
Interest expense | (7) | (11) | (16) | (24) |
Non-operating pension and other postretirement benefit credits | 12 | 12 | 24 | 25 |
Other expense, net | (1) | (3) | (5) | (10) |
Income (loss) before income taxes | 44 | 119 | 107 | 160 |
Income tax provision | (19) | (47) | (40) | (78) |
Net income (loss) including noncontrolling interests | 25 | 72 | 67 | 82 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 25 | $ 72 | $ 67 | $ 82 |
Net income per share attributable to Resolute Forest Products Inc. common shareholders: | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.79 | $ 0.73 | $ 0.90 |
Diluted (in dollars per share) | $ 0.27 | $ 0.77 | $ 0.71 | $ 0.88 |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | ||||
Basic | 92.4 | 91.3 | 92.4 | 91.2 |
Diluted | 93.6 | 93.2 | 93.8 | 93.1 |
Product [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 536 | $ 639 | $ 1,090 | $ 1,253 |
Distribution costs [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 101 | $ 123 | $ 201 | $ 239 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) | 6 Months Ended |
Jun. 30, 2019 | |
Income Statement [Abstract] | |
Type of cost, good or service [Extensible List] | us-gaap:ProductMember us-gaap:ShippingAndHandlingMember |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 25 | $ 72 | $ 67 | $ 82 |
Unamortized prior service credits | ||||
Change in unamortized prior service credits | (4) | (4) | (7) | (8) |
Income tax provision | 0 | 0 | 0 | 0 |
Change in unamortized prior service credits, net of tax | (4) | (4) | (7) | (8) |
Unamortized actuarial losses | ||||
Change in unamortized actuarial losses | 3 | 9 | 11 | 18 |
Income tax provision | 0 | (2) | (2) | (4) |
Change in unamortized actuarial losses, net of tax | 3 | 7 | 9 | 14 |
Other comprehensive income (loss), net of tax | (1) | 3 | 2 | 6 |
Comprehensive income including noncontrolling interests | 24 | 75 | 69 | 88 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Resolute Forest Products Inc. | $ 24 | $ 75 | $ 69 | $ 88 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 98 | $ 304 |
Accounts receivable, net: | ||
Trade | 333 | 347 |
Other | 67 | 102 |
Inventories, net | 530 | 508 |
Other current assets | 42 | 43 |
Total current assets | 1,070 | 1,304 |
Fixed assets, net | 1,479 | 1,515 |
Amortizable intangible assets, net | 50 | 50 |
Deferred income tax assets | 869 | 876 |
Operating lease right-of-use assets | 63 | 0 |
Other assets | 221 | 190 |
Total assets | 3,752 | 3,935 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 376 | 427 |
Current portion of long-term debt | 1 | 223 |
Current portion of operating lease liabilities | 8 | 0 |
Total current liabilities | 385 | 650 |
Long-term debt, net of current portion | 422 | 422 |
Pension and other postretirement benefit obligations | 1,231 | 1,257 |
Operating lease liabilities, net of current portion | 59 | 0 |
Other liabilities | 55 | 71 |
Total liabilities | 2,152 | 2,400 |
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,803 | 3,802 |
Deficit | (1,131) | (1,198) |
Accumulated other comprehensive loss | (948) | (950) |
Treasury stock at cost | (125) | (120) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,599 | 1,534 |
Noncontrolling interests | 1 | 1 |
Total equity | 1,600 | 1,535 |
Total liabilities and equity | $ 3,752 | $ 3,935 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 1,579 | $ 1,498 |
Accumulated amortization | 25 | 24 |
Commitments and contingencies | ||
Common stock, par value (per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 119.1 | 118.8 |
Common stock, shares outstanding | 90.4 | 90.8 |
Treasury stock, shares | 28.7 | 28 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interests [Member] |
Beginning balance at Dec. 31, 2017 | $ 1,600 | $ 0 | $ 3,793 | $ (1,294) | $ (780) | $ (120) | $ 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 4 | 4 | |||||
Net income (loss) | 82 | 82 | 0 | ||||
Stock unit awards vested net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 6 | 6 | 0 | ||||
Ending balance at Jun. 30, 2018 | $ 1,692 | 0 | 3,797 | (1,212) | (774) | (120) | 1 |
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 100,000 | ||||||
Treasury stock, shares, acquired | 0 | ||||||
Beginning balance at Mar. 31, 2018 | $ 1,616 | 0 | 3,796 | (1,284) | (777) | (120) | 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 1 | 1 | |||||
Net income (loss) | 72 | 72 | 0 | ||||
Other comprehensive income (loss), net of tax | 3 | 3 | 0 | ||||
Ending balance at Jun. 30, 2018 | $ 1,692 | 0 | 3,797 | (1,212) | (774) | (120) | 1 |
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Treasury stock, shares, acquired | 0 | ||||||
Beginning balance at Dec. 31, 2018 | $ 1,535 | 0 | 3,802 | (1,198) | (950) | (120) | 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 1 | 1 | |||||
Net income (loss) | 67 | 67 | 0 | ||||
Purchases of treasury stock | (5) | (5) | |||||
Stock unit awards vested net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 2 | 2 | 0 | ||||
Ending balance at Jun. 30, 2019 | $ 1,600 | 0 | 3,803 | (1,131) | (948) | (125) | 1 |
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 300,000 | ||||||
Treasury stock, shares, acquired | 720,000 | ||||||
Beginning balance at Mar. 31, 2019 | $ 1,580 | 0 | 3,802 | (1,156) | (947) | (120) | 1 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 1 | 1 | |||||
Net income (loss) | 25 | 25 | 0 | ||||
Purchases of treasury stock | (5) | (5) | |||||
Other comprehensive income (loss), net of tax | (1) | (1) | 0 | ||||
Ending balance at Jun. 30, 2019 | $ 1,600 | $ 0 | $ 3,803 | $ (1,131) | $ (948) | $ (125) | $ 1 |
Stock Transactions, Parenthetical Disclosures [Abstract] | |||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Treasury stock, shares, acquired | 720,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 67 | $ 82 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ||
Share-based compensation | 3 | 5 |
Depreciation and amortization | 82 | 107 |
Reversal of inventory write-downs related to closures | 0 | (1) |
Deferred income taxes | 40 | 75 |
Net pension contributions and other postretirement benefit payments | (57) | (70) |
Net gain on disposition of assets | 0 | (4) |
(Gain) loss on translation of foreign currency denominated deferred income taxes | (35) | 44 |
Loss (gain) on translation of foreign currency denominated pension and other postretirement benefit obligations | 37 | (36) |
Net planned major maintenance amortization (payments) | 7 | (3) |
Changes in working capital: | ||
Accounts receivable | 38 | 17 |
Inventories | (21) | (20) |
Other current assets | (3) | (1) |
Accounts payable and accrued liabilities | (64) | 18 |
Other, net | 1 | 7 |
Net cash provided by operating activities | 95 | 220 |
Cash flows from investing activities: | ||
Cash invested in fixed assets | (45) | (53) |
Disposition of assets | 2 | 2 |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 1 | (11) |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (33) | (41) |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 6 | (6) |
Net cash provided by (used in) investing activities | (69) | (109) |
Cash flows from financing activities: | ||
Net repayments under revolving credit facilities | 0 | (114) |
Payments of debt | (225) | 0 |
Purchases of treasury stock | (5) | 0 |
Payments of financing and credit facility fees | (2) | (1) |
Net cash provided by (used in) financing activities | (232) | (115) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 1 | (2) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (205) | (6) |
Cash and cash equivalents, and restricted cash: | ||
Beginning of period | 345 | 49 |
End of period | 140 | 43 |
Cash and cash equivalents, and restricted cash at period end: | ||
Cash and cash equivalents | 98 | 6 |
Restricted cash (included in “Other current assets” and “Other assets”) | $ 42 | $ 37 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Jun. 30, 2019 |
Statement of Cash Flows [Abstract] | |
Restricted cash and cash equivalents, asset, statement of financial position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssetsCurrent us-gaap:OtherAssetsNoncurrent |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1. Organization and Basis of Presentation Nature of operations Resolute Forest Products Inc. (with its subsidiaries, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent,” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. We own or operate some 40 facilities, as well as power generation assets, in the United States and Canada. Financial statements Our interim consolidated financial statements and accompanying notes (or the “ Consolidated Financial Statements ”) are unaudited and have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or the “ SEC ”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended June 30, 2019 , are not necessarily indicative of the results to be expected for the full year. These unaudited interim Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 1, 2019 . Certain prior period amounts in our footnotes have been reclassified to conform to the 2019 presentation. New accounting pronouncement adopted in 2019 ASU 2016-02 “Leases” Effective January 1, 2019, we adopted Accounting Standards Update (or “ ASU ”) 2016-02, “Leases,” issued by the Financial Accounting Standards Board, and the series of related accounting standard updates that followed (collectively, “ Topic 842 ”), through a cumulative-effect adjustment as of that date. The effect of this ASU on our Consolidated Balance Sheet as of January 1, 2019, was as follows: (Unaudited, in millions ) Before ASU Effect of Change As Adjusted Amortizable intangible assets, net $ 50 $ 1 $ 51 Operating lease right-of-use assets — 65 65 Current portion of operating lease liabilities — 7 7 Operating lease liabilities, net of current portion — 60 60 Other liabilities 71 (1 ) 70 On adoption, we elected to apply the package of practical expedients that allows us not to reassess whether expired or existing contracts contain leases, the classification of these leases, and whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. Furthermore, we elected to use hindsight in determining the lease term and assessing impairment of the operating lease right-of-use assets. As a result of the implementation of Topic 842, our leases accounting policy was updated as follows: We determine if a contract contains a lease at inception. Leases are classified as either operating leases or finance leases. Operating leases are included in “Operating lease right-of-use assets,” “Current portion of operating lease liabilities,” and “Operating lease liabilities, net of current portion,” whereas finance leases are included in “Fixed assets, net,” “Current portion of long-term debt,” and “Long-term debt, net of current portion” in our Consolidated Balance Sheets. Leases with a term of less than 12 months are not recorded in our Consolidated Balance Sheets, and are expensed over the term of the lease in our Consolidated Statements of Operations. Operating lease right-of-use assets represent our right to use an underlying asset for the term of the lease, and the related liabilities represent our obligation to make the lease payments arising from the lease. Operating lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the lease payments over the term of the lease. Renewal and termination options are included in our lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, we use the implicit rate when readily determinable, or our estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in our Consolidated Statements of Operations on a straight-line basis over the term of the lease. For buildings, we account for the lease and non-lease components as a single lease component. For all other contracts, we account for the lease and non-lease components separately. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 2. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the six months ended June 30, 2019 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2018 $ 28 $ (971 ) $ (7 ) $ (950 ) Other comprehensive loss before reclassifications — (3 ) — (3 ) Amounts reclassified from accumulated other comprehensive loss (1) (7 ) 12 — 5 Net current period other comprehensive (loss) income (7 ) 9 — 2 Balance as of June 30, 2019 $ 21 $ (962 ) $ (7 ) $ (948 ) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the six months ended June 30, 2019 , were comprised of the following: (Unaudited, in millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (6 ) Non-operating pension and other postretirement benefit credits (1) Curtailment gain (1 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (7 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 15 Non-operating pension and other postretirement benefit credits (1) (3 ) Income tax provision $ 12 Net of tax Total Reclassifications $ 5 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (or “ OPEB ”) plans summarized in Note 8, “Employee Benefit Plans .” |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 3. Net Income Per Share The reconciliation of the basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 , was as follows: Three Months Ended Six Months Ended (Unaudited, in millions, except per share amounts) 2019 2018 2019 2018 Numerator: Net income attributable to Resolute Forest Products Inc. $ 25 $ 72 $ 67 $ 82 Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 92.4 91.3 92.4 91.2 Dilutive impact of nonvested stock unit awards (1) 1.2 1.9 1.4 1.9 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.6 93.2 93.8 93.1 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.27 $ 0.79 $ 0.73 $ 0.90 Diluted 0.27 0.77 0.71 0.88 (1) When we refer to stock unit awards we mean equity-classified restricted stock units, deferred stock units and performance stock units. The weighted-average number of outstanding stock options that were excluded from the calculation of diluted net income per share, as their impact would have been antidilutive, was 1.0 million and 1.3 million for the three months ended June 30, 2019 and 2018 , respectively, and 1.0 million and 1.3 million for the six months ended June 30, 2019 and 2018 , respectively. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 4. Inventories, Net Inventories, net as of June 30, 2019 and December 31, 2018 , were comprised of the following: (Unaudited, in millions) June 30, December 31, Raw materials $ 102 $ 106 Work in process 41 39 Finished goods 194 180 Mill stores and other supplies 193 183 $ 530 $ 508 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 5. Operating leases We have operating leases for buildings, machinery, chemical equipment, rail cars, and office equipment with remaining terms from less than one year to 24 years . These leases may include renewal options for up to 13 years . The components of lease expense for the three and six months ended June 30, 2019 , were as follows: (Unaudited, in millions) Three Months Ended Six Months Ended Operating lease cost $ 3 $ 6 Variable lease cost (1) 4 10 (1) Variable lease cost is determined by the consumption of the underlying asset. Supplemental information related to operating leases was as follows: (Unaudited) June 30, Weighted-average remaining operating lease term (in years) 11.4 Weighted-average operating lease discount rate 4.7 % (Unaudited, in millions) Six Months Ended Operating cash flow payments for operating lease liabilities $ 5 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 2 The maturities of operating lease liabilities as of June 30, 2019 , were as follows: (Unaudited, in millions) Operating Leases Years ending December 31, 2019 $ 5 2020 11 2021 9 2022 9 2023 7 2024 and thereafter 46 Total lease payments 87 Less: imputed interest (20 ) Total operating lease liabilities $ 67 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 6. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of June 30, 2019 and December 31, 2018 , were comprised of the following: (Unaudited, in millions) June 30, December 31, Trade accounts payable $ 270 $ 299 Accrued compensation 49 66 Accrued interest 3 5 Pension and other postretirement benefit obligations 17 17 Accrued provision for former Fibrek Inc. dissenting shareholders 11 — Income and other taxes payable 4 4 Deposits 10 20 Other 12 16 $ 376 $ 427 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7. Long-Term Debt Overview Long-term debt, including current portion, as of June 30, 2019 and December 31, 2018 , was comprised of the following: (Unaudited, in millions) June 30, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 375 $ 600 Deferred financing costs (3 ) (5 ) Unamortized discount (2 ) (3 ) Total 5.875% senior unsecured notes due 2023 370 592 Term loan due 2025 46 46 Finance lease obligation 7 7 Total debt 423 645 Less: Current portion of 5.875% senior unsecured notes due 2023 — (222 ) Less: Current portion of finance lease obligation (1 ) (1 ) Long-term debt, net of current portion $ 422 $ 422 2023 Notes We issued $600 million in aggregate principal amount of 5.875% senior unsecured notes due 2023 (or the “ 2023 Notes ”) on May 8, 2013. Upon their issuance, the notes were recorded at their fair value of $594 million , which reflected a discount of $6 million that is being amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes, resulting in an effective interest rate of 6% . Interest on the notes is payable semi-annually beginning November 15, 2013, until their maturity date of May 15, 2023. In connection with the issuance of the notes, we incurred financing costs of $9 million , which were deferred and recorded as a reduction of the notes. Deferred financing costs are amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes. On January 3, 2019 (or the “ closing date ”), we repurchased $225 million in aggregate principal amount of the 2023 Notes, pursuant to a notes purchase agreement entered into on December 21, 2018, with certain noteholders, at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the closing date. The aggregate principal amount and related deferred financing costs and unamortized discount were included in “Current portion of long-term debt” in our Consolidated Balance Sheet as of December 31, 2018. As a result of the repurchase, we recorded a net loss on extinguishment of debt of $3 million in “ Other expense, net ” in our Consolidated Statement of Operations for the six months ended June 30, 2019. The fair value of the 2023 Notes (Level 1) was $379 million and $598 million as of June 30, 2019 and December 31, 2018 , respectively. Senior Secured Credit Facility On September 7, 2016, we entered into a senior secured credit facility (or the “ Senior Secured Credit Facility ”) for up to $185 million . The Senior Secured Credit Facility provides a term loan of $46 million with a maturity date of September 7, 2025 (or the “ Term Loan ”), and a revolving credit facility of up to $139 million with a maturity date of September 7, 2022 (or the “ Revolving Credit Facility ”). As of June 30, 2019 , we had $139 million of availability under the Revolving Credit Facility, which was undrawn. The fair value of the Term Loan (Level 2) approximated its carrying value as of both June 30, 2019 and December 31, 2018 . ABL Credit Facility On May 14, 2019, we entered into an amendment to the credit agreement dated May 22, 2015, for a senior secured asset-based revolving credit facility (or the “ ABL Credit Facility ”). The amended credit agreement provides for an extension of the maturity date to May 14, 2024, with an aggregate lender commitment of $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. The aggregate lender commitment under the facility includes a $60 million swingline sub-facility and a $200 million letter of credit sub-facility, and we may convert up to $50 million of the commitments under the facility to a first-in last-out facility (or “ FILO Facility ”), subject to the consent of each converting lender. The ABL Credit Facility also provides for an uncommitted ability to increase the revolving credit facility by up to $500 million , subject to certain terms and conditions set forth in the agreement. Revolving loan (and letter of credit) availability under the facility is subject to a borrowing base, which at any time is equal to the sum of (i) 85% of eligible accounts receivable (or 90% with respect to certain insured or letter of credit backed accounts or with accounts owed by investment grade obligors), plus (ii) the lesser of (A) 70% of the lesser of the cost or market value of eligible inventory or (B) 85% of the net orderly liquidation value of eligible inventory, plus (iii) 100% of the value of eligible cash and 95% of the value of permitted investments held in deposit accounts controlled solely by the administrative and collateral agent (or the “a gent ”). The credit agreement includes reserves that reduce the borrowing base, including: (i) a reserve commencing March 16, 2023 for the outstanding principal amount due under the 2023 Notes; and (ii) a reserve for the outstanding principal amount due under the Senior Secured Credit Facility, commencing 60 days before its maturity. The borrowing base is subject to other customary reserves and eligibility criteria, in the exercise of the agent’s reasonable discretion. The obligations under the credit agreement are guaranteed by certain material subsidiaries of the Company and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets. Loans under the credit agreement bear interest at a rate equal to a base rate, the London Interbank Offered Rate (or the “ LIBOR ”), or the Canadian Dollar Offered Rate (or the “ CDOR ”), in each case plus an applicable margin. The applicable margin is between 0.00% and 0.50% with respect to base rate loans and between 1.00% and 1.50% with respect to LIBOR and CDOR loans, in each case based on availability under the credit facility and a leverage ratio. In addition to paying interest on outstanding principal under the ABL Credit Facility, we are required to pay a fee in respect of unutilized commitments under the ABL Credit Facility equal to 0.30% per annum when average daily utilization under the ABL Credit Facility for the prior fiscal quarter is less than 35% of the total revolving commitments, and 0.25% per annum when average daily utilization under the ABL Credit Facility for the prior fiscal quarter is greater than or equal to 35% of the total revolving commitments, as well as a fee in respect of outstanding letters of credit (equal to the applicable margin in respect of LIBOR and CDOR loans plus a fronting fee of 0.125% and certain administrative fees). Loans under the ABL Credit Facility may be repaid from time to time at our discretion without premium or penalty, with the exception of breakage costs for LIBOR and CDOR loans, if any. However, no loans under the FILO Facility can be repaid unless all other loans under the credit agreement are repaid first. We are required to repay outstanding loans that exceed the maximum availability then in effect. The credit agreement contains customary covenants for asset-based credit agreements of this type, including, among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness by the Company and its subsidiaries; (iii) restrictions on the existence or incurrence of liens by the Company and its subsidiaries; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on the Company and certain of its subsidiaries making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on transactions with affiliates; (viii) restrictions on amendments or modifications to the Canadian pension and benefit plans; (ix) restrictions on modifications to material indebtedness; and (x) a springing requirement for the Company to maintain a minimum consolidated fixed charge coverage ratio, as determined under the credit agreement, of 1.0 :1.0, anytime availability under the facility falls below the greater of $45 million or 10% of the maximum available borrowing amount for two consecutive business days. Subject to customary grace periods and notice requirements, the credit agreement also contains certain customary events of default. As of June 30, 2019 , we had $353 million of availability under the ABL Credit Facility, which was undrawn except for $51 million of ordinary course letters of credit outstanding. Finance lease obligation We have a finance lease obligation for a warehouse with a maturity date of December 1, 2027, which can be renewed for 20 years at our option. Minimum monthly payments are determined by an escalatory price clause. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 8. Employee Benefit Plans Pension and other postretirement benefit plans The components of net periodic benefit cost relating to our pension and OPEB plans for the three and six months ended June 30, 2019 and 2018 , were as follows: Pension Plans: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Interest cost $ 45 $ 48 $ 90 $ 96 Expected return on plan assets (61 ) (67 ) (124 ) (134 ) Amortization of actuarial losses 9 10 18 20 Amortization of prior service credits (1 ) — (1 ) (1 ) Non-operating pension credits (8 ) (9 ) (17 ) (19 ) Service cost 3 4 7 9 Net periodic benefit credits before special events (5 ) (5 ) (10 ) (10 ) Curtailment and settlement (gain) loss (1 ) 1 (1 ) 1 $ (6 ) $ (4 ) $ (11 ) $ (9 ) OPEB Plans: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Interest cost $ 1 $ 2 $ 2 $ 3 Amortization of actuarial gains (2 ) (2 ) (3 ) (3 ) Amortization of prior service credits (2 ) (4 ) (5 ) (7 ) Non-operating other postretirement benefit credits (3 ) (4 ) (6 ) (7 ) Service cost — 1 — 1 $ (3 ) $ (3 ) $ (6 ) $ (6 ) Defined contribution plans Our expense for the defined contribution plans totaled $4 million and $5 million for the three months ended June 30, 2019 and 2018, respectively, and $9 million and $10 million for the six months ended June 30, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The income tax provision attributable to income before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three and six months ended June 30, 2019 and 2018 , as a result of the following: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Income before income taxes $ 44 $ 119 $ 107 $ 160 Income tax provision: Expected income tax provision (9 ) (25 ) (22 ) (34 ) Changes resulting from: Valuation allowance (1) (4 ) 13 (11 ) 8 Foreign exchange 1 (7 ) 4 (14 ) U.S. tax on non-U.S. earnings (2) (5 ) (18 ) (5 ) (25 ) State income taxes, net of federal income tax benefit 1 — 2 2 Foreign tax rate differences (4 ) (7 ) (9 ) (12 ) Other, net 1 (3 ) 1 (3 ) $ (19 ) $ (47 ) $ (40 ) $ (78 ) (1) Relates to our U.S. operations. (2) Reduces income tax benefits on U.S. losses for the three and six months ended June 30, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Legal matters We become involved in various legal proceedings, claims and governmental inquiries, investigations, and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, product safety and liability, asbestos exposure, financial reporting and disclosure obligations, corporate governance, First Nations claims, antitrust, governmental regulations, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of June 30, 2019 , will not have a material adverse effect on our Consolidated Financial Statements. Asbestos-related lawsuits We are involved in a number of asbestos-related lawsuits filed primarily in U.S. state courts, including certain cases involving multiple defendants. These lawsuits principally allege direct or indirect personal injury or death resulting from exposure to asbestos-containing premises. While we dispute the plaintiffs’ allegations and intend to vigorously defend these claims, the ultimate resolution of these matters cannot be determined at this time. These lawsuits frequently involve claims for unspecified compensatory and punitive damages, and we are unable to reasonably estimate a range of possible losses. However, unfavorable rulings, judgments or settlement terms could materially impact our Consolidated Financial Statements. Certain cases, including cases that were scheduled in March 2019, were settled without any material impact in our Consolidated Statements of Operations for the three and six months ended June 30, 2019. Countervailing duty and anti-dumping investigations on softwood lumber On November 25, 2016, countervailing duty and anti-dumping petitions were filed with the U.S. Department of Commerce (or “ Commerce ”) and the U.S. International Trade Commission (or “ ITC ”) by certain U.S. softwood lumber products producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petitions as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations. On April 24, 2017, Commerce announced its preliminary determination in the countervailing duty investigation and, as a result, after April 28, 2017, we were required to pay cash deposits to the U.S. Customs and Border Protection agency (or “ U.S. Customs ”) at a rate of 12.82% for estimated countervailing duties on our U.S. imports of softwood lumber products produced at our Canadian sawmills. The preliminary rate remained in effect until August 26, 2017. Commerce changed the rate in its final affirmative determination on November 2, 2017, but the new rate did not take effect until December 28, 2017, following the ITC’s final affirmative determination and the publication by Commerce of a countervailing duty order. Since that date, we have been required to resume paying cash deposits to the U.S. Customs at a rate of 14.7% for our softwood lumber products U.S. imports from our Canadian sawmills. This rate will continue until Commerce sets a duty rate in an administrative review, or a new rate may be set through a remand determination by a North American Free Trade Agreement (or “ NAFTA ”) binational panel on appeal. Through June 30, 2019 , our cash deposits totaled $106 million and, based on the 14.7% rate and our current operating parameters, could be as high as $60 million per year. On June 26, 2017, Commerce announced its preliminary determination in the anti-dumping investigation and, as a result, after June 30, 2017, we were required to pay cash deposits to the U.S. Customs at a rate of 4.59% for estimated anti-dumping duties on our U.S. imports of softwood lumber products produced at our Canadian sawmills. On November 2, 2017, Commerce announced its final affirmative determination in the anti-dumping investigation and, as a result, since November 8, 2017, we have been required to pay cash deposits to the U.S. Customs, at a rate of 3.2% for our softwood lumber products U.S. imports from our Canadian sawmills. This rate will apply until Commerce sets a duty rate in an administrative review, or a new rate may be set through a remand determination by a NAFTA binational panel on appeal. Through June 30, 2019 , our cash deposits totaled $30 million and, based on the 3.2% rate and our current operating parameters, could be as high as $15 million per year. On April 1, 2019, Commerce published a notice initiating the administrative reviews of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent in these administrative reviews and we are in the process of responding to Commerce with the information requested. We are not presently able to determine the ultimate resolution of these matters, but we believe it is not probable that we will ultimately be assessed with significant duties, if any, on our U.S. imports of Canadian-produced softwood lumber products. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statements of Operations, and our cash deposits were recorded in “Other assets” in our Consolidated Balance Sheets. Fibrek acquisition Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.4% of the outstanding Fibrek Inc. (or “ Fibrek ”) shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order of the Quebec Superior Court in Canada approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised (or purported to exercise) rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act . No consideration has to date been paid to the former Fibrek shareholders who exercised (or purported to exercise) rights of dissent. Any such consideration will only be paid out upon settlement or judicial determination of the fair value of their claims and will be paid entirely in cash. Accordingly, we cannot presently determine the amount that ultimately will be paid to former holders of Fibrek shares in connection with the proceedings, but we have accrued Cdn $14 million ( $11 million , based on the exchange rate in effect on June 30, 2019 ) for the eventual payment of those claims. The hearing in this matter occurred in 2019 and we are awaiting the decision of the court. Partial wind-ups of pension plans On June 12, 2012, we filed a motion for directives with the Quebec Superior Court, the court with jurisdiction in the creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada) (or the “ CCAA Creditor Protection Proceedings ”), seeking an order to prevent pension regulators in each of Quebec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. We contend, among other things, that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA debtors’ CCAA Plan of Reorganization and Compromise , as amended, and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to Cdn $150 million ( $115 million , based on the exchange rate in effect on June 30, 2019 ), would have to be funded if we do not obtain the relief sought. The hearing in this matter could occur in 2019 or 2020. Environmental matters We are subject to a variety of federal or national, state, provincial, and local environmental laws and regulations in the jurisdictions in which we operate. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated in the future could require substantial additional expenditures for compliance and could have a material impact on us, in particular, and the industry in general. We may be a “potentially responsible party” with respect to a hazardous waste site that is being addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (commonly known as Superfund). We believe we will not be liable for any significant amounts at this site. We have environmental liabilities of $8 million recorded as of both June 30, 2019 and December 31, 2018 , primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time. These liabilities are included in “Accounts payable and accrued liabilities” or “Other liabilities” in our Consolidated Balance Sheets. We also have asset retirement obligations of $26 million and $23 million recorded as of June 30, 2019 and December 31, 2018 , respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and accrued liabilities” or “Other liabilities” in our Consolidated Balance Sheets. |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Share Capital | Note 11. Share Capital During the three and six months ended June 30, 2019 , we repurchased 720,000 shares, at a cost of $5 million under our $150 million share repurchase program, which was launched in 2012. We did not repurchase any shares during the three and six months ended June 30, 2018 . There remains $19 million under the program. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12. Segment Information We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: market pulp, tissue, wood products, newsprint, and specialty papers. None of the income or loss items following “ Operating income ” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs, gains and losses on disposition of assets, as well as other discretionary charges or credits are not allocated to our segments. We allocate depreciation and amortization expense to our segments, although the related fixed assets and amortizable intangible assets are not allocated to segment assets. Additionally, all selling, general and administrative expenses are allocated to our segments, with the exception of certain discretionary charges and credits, which we present under “corporate and other.” Information about certain segment data for the three and six months ended June 30, 2019 and 2018 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Second quarter 2019 $ 189 $ 43 $ 168 $ 209 $ 146 $ 755 $ — $ 755 2018 264 35 254 230 193 976 — 976 First six months 2019 420 82 329 421 298 1,550 — 1,550 2018 521 57 463 428 381 1,850 — 1,850 Depreciation and amortization Second quarter 2019 $ 5 $ 4 $ 9 $ 8 $ 11 $ 37 $ 5 $ 42 2018 8 5 7 17 12 49 5 54 First six months 2019 10 9 17 15 21 72 10 82 2018 15 6 15 33 24 93 14 107 Operating income (loss) Second quarter 2019 $ 27 $ (4 ) $ (3 ) $ 17 $ 15 $ 52 $ (12 ) $ 40 2018 41 (10 ) 79 18 4 132 (11 ) 121 First six months 2019 69 (12 ) 3 45 30 135 (31 ) 104 2018 74 (11 ) 132 14 (3 ) 206 (37 ) 169 (1) Inter-segment sales of $11 million and $9 million for the three months ended June 30, 2019 and 2018, respectively, and $22 million and $19 million for the six months ended June 30, 2019 and 2018, which are transacted at cost, were excluded from market pulp sales. (2) The operating results of our Calhoun (Tennessee) tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $16 million for the six months ended June 30, 2019 and 2018, respectively. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Note 13. Condensed Consolidating Financial Information The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act of 1933, as amended, in connection with Resolute Forest Products Inc.’s 2023 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (or the “ Guarantor Subsidiaries ”). The 2023 Notes are not guaranteed by our foreign subsidiaries (or the “ Non-guarantor Subsidiaries ”). The following condensed consolidating financial information sets forth the Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2019 and 2018 , the Balance Sheets as of June 30, 2019 and December 31, 2018 , and the Statements of Cash Flows for the six months ended June 30, 2019 and 2018 for the Parent, the Guarantor Subsidiaries on a combined basis, and the Non-guarantor Subsidiaries also on a combined basis. The condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries and Non-guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-guarantor Subsidiaries, using the equity method of accounting. The principal consolidating adjustments are entries to eliminate the investments in subsidiaries and intercompany balances and transactions. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 613 $ 569 $ (427 ) $ 755 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 599 371 (434 ) 536 Depreciation and amortization — 9 33 — 42 Distribution costs — 23 76 2 101 Selling, general and administrative expenses 4 15 17 — 36 Operating (loss) income (4 ) (33 ) 72 5 40 Interest expense (17 ) — (2 ) 12 (7 ) Non-operating pension and other postretirement benefit credits — 2 10 — 12 Other income (expense), net — 15 (4 ) (12 ) (1 ) Equity in income of subsidiaries 46 7 — (53 ) — Income (loss) before income taxes 25 (9 ) 76 (48 ) 44 Income tax provision — — (18 ) (1 ) (19 ) Net income (loss) including noncontrolling interests 25 (9 ) 58 (49 ) 25 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 25 $ (9 ) $ 58 $ (49 ) $ 25 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (12 ) $ 60 $ (48 ) $ 24 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 1,285 $ 1,166 $ (901 ) $ 1,550 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 1,247 742 (899 ) 1,090 Depreciation and amortization — 19 63 — 82 Distribution costs — 49 155 (3 ) 201 Selling, general and administrative expenses 10 24 39 — 73 Operating (loss) income (10 ) (54 ) 167 1 104 Interest expense (34 ) (2 ) (6 ) 26 (16 ) Non-operating pension and other postretirement benefit credits — 5 19 — 24 Other (expense) income, net (3 ) 32 (8 ) (26 ) (5 ) Equity in income of subsidiaries 114 18 — (132 ) — Income (loss) before income taxes 67 (1 ) 172 (131 ) 107 Income tax provision — — (40 ) — (40 ) Net income (loss) including noncontrolling interests 67 (1 ) 132 (131 ) 67 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 67 $ (1 ) $ 132 $ (131 ) $ 67 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 69 $ (6 ) $ 139 $ (133 ) $ 69 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 731 $ 674 $ (429 ) $ 976 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 666 396 (423 ) 639 Depreciation and amortization — 21 33 — 54 Distribution costs — 38 85 — 123 Selling, general and administrative expenses 7 14 21 — 42 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (7 ) (8 ) 142 (6 ) 121 Interest expense (24 ) (1 ) (3 ) 17 (11 ) Non-operating pension and other postretirement benefit credits — 3 9 — 12 Other income (expense), net — 19 (5 ) (17 ) (3 ) Equity in income of subsidiaries 103 28 — (131 ) — Income before income taxes 72 41 143 (137 ) 119 Income tax provision — — (48 ) 1 (47 ) Net income including noncontrolling interests 72 41 95 (136 ) 72 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 72 $ 41 $ 95 $ (136 ) $ 72 Comprehensive income attributable to Resolute Forest Products Inc. $ 75 $ 39 $ 100 $ (139 ) $ 75 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 1,540 $ 1,266 $ (956 ) $ 1,850 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 1,437 762 (946 ) 1,253 Depreciation and amortization — 41 66 — 107 Distribution costs — 77 164 (2 ) 239 Selling, general and administrative expenses 12 31 42 — 85 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (12 ) (46 ) 235 (8 ) 169 Interest expense (47 ) (4 ) (6 ) 33 (24 ) Non-operating pension and other postretirement benefit credits — 7 18 — 25 Other income (expense), net — 33 (10 ) (33 ) (10 ) Equity in income of subsidiaries 141 49 — (190 ) — Income before income taxes 82 39 237 (198 ) 160 Income tax provision — — (80 ) 2 (78 ) Net income including noncontrolling interests 82 39 157 (196 ) 82 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 82 $ 39 $ 157 $ (196 ) $ 82 Comprehensive income attributable to Resolute Forest Products Inc. $ 88 $ 34 $ 168 $ (202 ) $ 88 CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 91 $ 7 $ — $ 98 Accounts receivable, net — 270 130 — 400 Accounts receivable from affiliates — 248 748 (996 ) — Inventories, net — 214 328 (12 ) 530 Advance and interest receivable from parent — 66 — (66 ) — Interest receivable from affiliate — 4 — (4 ) — Other current assets — 16 26 — 42 Total current assets — 909 1,239 (1,078 ) 1,070 Fixed assets, net — 525 954 — 1,479 Amortizable intangible assets, net — 3 47 — 50 Deferred income tax assets — 1 865 3 869 Operating lease right-of-use assets — 29 34 — 63 Notes receivable from parent — 1,264 — (1,264 ) — Note receivable from affiliate — 111 — (111 ) — Investments in consolidated subsidiaries and affiliates 3,875 2,083 — (5,958 ) — Other assets — 158 63 — 221 Total assets $ 3,875 $ 5,083 $ 3,202 $ (8,408 ) $ 3,752 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 10 $ 122 $ 244 $ — $ 376 Current portion of long-term debt — 1 — — 1 Current portion of operating lease liabilities — 4 4 — 8 Accounts payable to affiliates 257 784 — (1,041 ) — Advance and interest payable to subsidiaries 66 — — (66 ) — Interest payable to affiliate — — 4 (4 ) — Total current liabilities 333 911 252 (1,111 ) 385 Long-term debt, net of current portion 370 52 — — 422 Notes payable to subsidiaries 1,264 — — (1,264 ) — Note payable to affiliate — — 111 (111 ) — Pension and other postretirement benefit obligations — 330 901 — 1,231 Operating lease liabilities, net of current portion — 26 33 — 59 Other liabilities — 22 33 — 55 Total liabilities 1,967 1,341 1,330 (2,486 ) 2,152 Total equity 1,908 3,742 1,872 (5,922 ) 1,600 Total liabilities and equity $ 3,875 $ 5,083 $ 3,202 $ (8,408 ) $ 3,752 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 301 $ 3 $ — $ 304 Accounts receivable, net — 301 148 — 449 Accounts receivable from affiliates — 588 1,071 (1,659 ) — Inventories, net — 194 327 (13 ) 508 Note, advance and interest receivable from parent — 422 — (422 ) — Interest receivable from affiliate — 4 — (4 ) — Other current assets — 15 28 — 43 Total current assets — 1,825 1,577 (2,098 ) 1,304 Fixed assets, net — 523 992 — 1,515 Amortizable intangible assets, net — 2 48 — 50 Deferred income tax assets — 1 872 3 876 Notes receivable from parent — 657 — (657 ) — Note receivable from affiliate — 107 — (107 ) — Investments in consolidated subsidiaries and affiliates 4,119 2,205 — (6,324 ) — Other assets — 126 64 — 190 Total assets $ 4,119 $ 5,446 $ 3,553 $ (9,183 ) $ 3,935 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 7 $ 170 $ 250 $ — $ 427 Current portion of long-term debt 222 1 — — 223 Accounts payable to affiliates 592 1,112 — (1,704 ) — Note, advance and interest payable to subsidiaries 422 — — (422 ) — Interest payable to affiliate — — 4 (4 ) — Total current liabilities 1,243 1,283 254 (2,130 ) 650 Long-term debt, net of current portion 370 52 — — 422 Notes payable to subsidiaries 657 — — (657 ) — Note payable to affiliate — — 107 (107 ) — Pension and other postretirement benefit obligations — 342 915 — 1,257 Other liabilities 6 21 44 — 71 Total liabilities 2,276 1,698 1,320 (2,894 ) 2,400 Total equity 1,843 3,748 2,233 (6,289 ) 1,535 Total liabilities and equity $ 4,119 $ 5,446 $ 3,553 $ (9,183 ) $ 3,935 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 64 $ 31 $ — $ 95 Cash flows from investing activities: Cash invested in fixed assets — (19 ) (26 ) — (45 ) Disposition of assets — 2 — — 2 Decrease in countervailing duty cash deposits on supercalendered paper — 1 — — 1 Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (33 ) — — (33 ) Decrease in countervailing duty cash deposits on uncoated groundwood paper — 6 — — 6 Increase in notes receivable from and advance to parent — (230 ) — 230 — Net cash used in investing activities — (273 ) (26 ) 230 (69 ) Cash flows from financing activities: Payments of debt (225 ) — — — (225 ) Purchases of treasury stock (5 ) — — — (5 ) Payments of financing and credit facility fees — (1 ) (1 ) — (2 ) Increase in notes payable to and advance from subsidiaries 230 — — (230 ) — Net cash used in financing activities — (1 ) (1 ) (230 ) (232 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — 1 — 1 Net (decrease) increase in cash and cash equivalents, and restricted cash — (210 ) 5 — (205 ) Cash and cash equivalents, and restricted cash: Beginning of period — 306 39 — 345 End of period $ — $ 96 $ 44 $ — $ 140 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 91 $ 7 $ — $ 98 Restricted cash — 5 37 — 42 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 187 $ 33 $ — $ 220 Cash flows from investing activities: Cash invested in fixed assets — (16 ) (37 ) — (53 ) Disposition of assets — — 2 — 2 Increase in countervailing duty cash deposits on supercalendered paper — (11 ) — — (11 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (41 ) — — (41 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (6 ) — — (6 ) Advance to parent — (1 ) — 1 — Net cash used in investing activities — (75 ) (35 ) 1 (109 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (114 ) — — (114 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Net cash used in financing activities — (114 ) — (1 ) (115 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (2 ) — (2 ) Net decrease in cash and cash equivalents, and restricted cash — (2 ) (4 ) — (6 ) Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 1 $ 42 $ — $ 43 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 1 $ 5 $ — $ 6 Restricted cash — — 37 — 37 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial statements | Our interim consolidated financial statements and accompanying notes (or the “ Consolidated Financial Statements ”) are unaudited and have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or the “ SEC ”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the unaudited interim Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended June 30, 2019 , are not necessarily indicative of the results to be expected for the full year. These unaudited interim Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 1, 2019 . Certain prior period amounts in our footnotes have been reclassified to conform to the 2019 presentation. |
New accounting pronouncements | ASU 2016-02 “Leases” Effective January 1, 2019, we adopted Accounting Standards Update (or “ ASU ”) 2016-02, “Leases,” issued by the Financial Accounting Standards Board, and the series of related accounting standard updates that followed (collectively, “ Topic 842 ”), through a cumulative-effect adjustment as of that date. The effect of this ASU on our Consolidated Balance Sheet as of January 1, 2019, was as follows: (Unaudited, in millions ) Before ASU Effect of Change As Adjusted Amortizable intangible assets, net $ 50 $ 1 $ 51 Operating lease right-of-use assets — 65 65 Current portion of operating lease liabilities — 7 7 Operating lease liabilities, net of current portion — 60 60 Other liabilities 71 (1 ) 70 On adoption, we elected to apply the package of practical expedients that allows us not to reassess whether expired or existing contracts contain leases, the classification of these leases, and whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. Furthermore, we elected to use hindsight in determining the lease term and assessing impairment of the operating lease right-of-use assets. As a result of the implementation of Topic 842, our leases accounting policy was updated as follows: We determine if a contract contains a lease at inception. Leases are classified as either operating leases or finance leases. Operating leases are included in “Operating lease right-of-use assets,” “Current portion of operating lease liabilities,” and “Operating lease liabilities, net of current portion,” whereas finance leases are included in “Fixed assets, net,” “Current portion of long-term debt,” and “Long-term debt, net of current portion” in our Consolidated Balance Sheets. Leases with a term of less than 12 months are not recorded in our Consolidated Balance Sheets, and are expensed over the term of the lease in our Consolidated Statements of Operations. Operating lease right-of-use assets represent our right to use an underlying asset for the term of the lease, and the related liabilities represent our obligation to make the lease payments arising from the lease. Operating lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the lease payments over the term of the lease. Renewal and termination options are included in our lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, we use the implicit rate when readily determinable, or our estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in our Consolidated Statements of Operations on a straight-line basis over the term of the lease. For buildings, we account for the lease and non-lease components as a single lease component. For all other contracts, we account for the lease and non-lease components separately. |
Leases | We determine if a contract contains a lease at inception. Leases are classified as either operating leases or finance leases. Operating leases are included in “Operating lease right-of-use assets,” “Current portion of operating lease liabilities,” and “Operating lease liabilities, net of current portion,” whereas finance leases are included in “Fixed assets, net,” “Current portion of long-term debt,” and “Long-term debt, net of current portion” in our Consolidated Balance Sheets. Leases with a term of less than 12 months are not recorded in our Consolidated Balance Sheets, and are expensed over the term of the lease in our Consolidated Statements of Operations. Operating lease right-of-use assets represent our right to use an underlying asset for the term of the lease, and the related liabilities represent our obligation to make the lease payments arising from the lease. Operating lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the lease payments over the term of the lease. Renewal and termination options are included in our lease terms when it is reasonably certain that they will be exercised. In determining the present value of lease payments, we use the implicit rate when readily determinable, or our estimated incremental borrowing rate, which is based on information available at the lease commencement date. Lease payments are expensed in our Consolidated Statements of Operations on a straight-line basis over the term of the lease. For buildings, we account for the lease and non-lease components as a single lease component. For all other contracts, we account for the lease and non-lease components separately. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The effect of this ASU on our Consolidated Balance Sheet as of January 1, 2019, was as follows: (Unaudited, in millions ) Before ASU Effect of Change As Adjusted Amortizable intangible assets, net $ 50 $ 1 $ 51 Operating lease right-of-use assets — 65 65 Current portion of operating lease liabilities — 7 7 Operating lease liabilities, net of current portion — 60 60 Other liabilities 71 (1 ) 70 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the six months ended June 30, 2019 , was as follows: (Unaudited, in millions) Unamortized Prior Service Credits Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2018 $ 28 $ (971 ) $ (7 ) $ (950 ) Other comprehensive loss before reclassifications — (3 ) — (3 ) Amounts reclassified from accumulated other comprehensive loss (1) (7 ) 12 — 5 Net current period other comprehensive (loss) income (7 ) 9 — 2 Balance as of June 30, 2019 $ 21 $ (962 ) $ (7 ) $ (948 ) (1) See the table below for details about these reclassifications. |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The reclassifications out of accumulated other comprehensive loss for the six months ended June 30, 2019 , were comprised of the following: (Unaudited, in millions) Amounts Reclassified From Accumulated Other Comprehensive Loss Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Credits Amortization of prior service credits $ (6 ) Non-operating pension and other postretirement benefit credits (1) Curtailment gain (1 ) Non-operating pension and other postretirement benefit credits (1) — Income tax provision $ (7 ) Net of tax Unamortized Actuarial Losses Amortization of actuarial losses $ 15 Non-operating pension and other postretirement benefit credits (1) (3 ) Income tax provision $ 12 Net of tax Total Reclassifications $ 5 Net of tax (1) These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (or “ OPEB ”) plans summarized in Note 8, “Employee Benefit Plans .” |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The reconciliation of the basic and diluted net income per share for the three and six months ended June 30, 2019 and 2018 , was as follows: Three Months Ended Six Months Ended (Unaudited, in millions, except per share amounts) 2019 2018 2019 2018 Numerator: Net income attributable to Resolute Forest Products Inc. $ 25 $ 72 $ 67 $ 82 Denominator: Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding 92.4 91.3 92.4 91.2 Dilutive impact of nonvested stock unit awards (1) 1.2 1.9 1.4 1.9 Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 93.6 93.2 93.8 93.1 Net income per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 0.27 $ 0.79 $ 0.73 $ 0.90 Diluted 0.27 0.77 0.71 0.88 (1) When we refer to stock unit awards we mean equity-classified restricted stock units, deferred stock units and performance stock units. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, net as of June 30, 2019 and December 31, 2018 , were comprised of the following: (Unaudited, in millions) June 30, December 31, Raw materials $ 102 $ 106 Work in process 41 39 Finished goods 194 180 Mill stores and other supplies 193 183 $ 530 $ 508 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense for the three and six months ended June 30, 2019 , were as follows: (Unaudited, in millions) Three Months Ended Six Months Ended Operating lease cost $ 3 $ 6 Variable lease cost (1) 4 10 (1) Variable lease cost is determined by the consumption of the underlying asset. |
Schedule of supplemental balance sheet information related to leases | Supplemental information related to operating leases was as follows: (Unaudited) June 30, Weighted-average remaining operating lease term (in years) 11.4 Weighted-average operating lease discount rate 4.7 % |
Schedule of supplemental cash flow information related to leases | (Unaudited, in millions) Six Months Ended Operating cash flow payments for operating lease liabilities $ 5 Operating lease right-of-use assets obtained in exchange for operating lease liabilities 2 |
Maturities of operating lease liabilities | The maturities of operating lease liabilities as of June 30, 2019 , were as follows: (Unaudited, in millions) Operating Leases Years ending December 31, 2019 $ 5 2020 11 2021 9 2022 9 2023 7 2024 and thereafter 46 Total lease payments 87 Less: imputed interest (20 ) Total operating lease liabilities $ 67 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities as of June 30, 2019 and December 31, 2018 , were comprised of the following: (Unaudited, in millions) June 30, December 31, Trade accounts payable $ 270 $ 299 Accrued compensation 49 66 Accrued interest 3 5 Pension and other postretirement benefit obligations 17 17 Accrued provision for former Fibrek Inc. dissenting shareholders 11 — Income and other taxes payable 4 4 Deposits 10 20 Other 12 16 $ 376 $ 427 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Including Current Portion | Long-term debt, including current portion, as of June 30, 2019 and December 31, 2018 , was comprised of the following: (Unaudited, in millions) June 30, December 31, 5.875% senior unsecured notes due 2023: Principal amount $ 375 $ 600 Deferred financing costs (3 ) (5 ) Unamortized discount (2 ) (3 ) Total 5.875% senior unsecured notes due 2023 370 592 Term loan due 2025 46 46 Finance lease obligation 7 7 Total debt 423 645 Less: Current portion of 5.875% senior unsecured notes due 2023 — (222 ) Less: Current portion of finance lease obligation (1 ) (1 ) Long-term debt, net of current portion $ 422 $ 422 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost relating to our pension and OPEB plans for the three and six months ended June 30, 2019 and 2018 , were as follows: Pension Plans: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Interest cost $ 45 $ 48 $ 90 $ 96 Expected return on plan assets (61 ) (67 ) (124 ) (134 ) Amortization of actuarial losses 9 10 18 20 Amortization of prior service credits (1 ) — (1 ) (1 ) Non-operating pension credits (8 ) (9 ) (17 ) (19 ) Service cost 3 4 7 9 Net periodic benefit credits before special events (5 ) (5 ) (10 ) (10 ) Curtailment and settlement (gain) loss (1 ) 1 (1 ) 1 $ (6 ) $ (4 ) $ (11 ) $ (9 ) OPEB Plans: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Interest cost $ 1 $ 2 $ 2 $ 3 Amortization of actuarial gains (2 ) (2 ) (3 ) (3 ) Amortization of prior service credits (2 ) (4 ) (5 ) (7 ) Non-operating other postretirement benefit credits (3 ) (4 ) (6 ) (7 ) Service cost — 1 — 1 $ (3 ) $ (3 ) $ (6 ) $ (6 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) | The income tax provision attributable to income before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three and six months ended June 30, 2019 and 2018 , as a result of the following: Three Months Ended Six Months Ended (Unaudited, in millions) 2019 2018 2019 2018 Income before income taxes $ 44 $ 119 $ 107 $ 160 Income tax provision: Expected income tax provision (9 ) (25 ) (22 ) (34 ) Changes resulting from: Valuation allowance (1) (4 ) 13 (11 ) 8 Foreign exchange 1 (7 ) 4 (14 ) U.S. tax on non-U.S. earnings (2) (5 ) (18 ) (5 ) (25 ) State income taxes, net of federal income tax benefit 1 — 2 2 Foreign tax rate differences (4 ) (7 ) (9 ) (12 ) Other, net 1 (3 ) 1 (3 ) $ (19 ) $ (47 ) $ (40 ) $ (78 ) (1) Relates to our U.S. operations. (2) Reduces income tax benefits on U.S. losses for the three and six months ended June 30, 2019 and 2018. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the three and six months ended June 30, 2019 and 2018 , was as follows: (Unaudited, in millions) Market Pulp (1) Tissue (2) Wood Products (3) Newsprint Specialty Papers Segment Total Corporate and Other Total Sales Second quarter 2019 $ 189 $ 43 $ 168 $ 209 $ 146 $ 755 $ — $ 755 2018 264 35 254 230 193 976 — 976 First six months 2019 420 82 329 421 298 1,550 — 1,550 2018 521 57 463 428 381 1,850 — 1,850 Depreciation and amortization Second quarter 2019 $ 5 $ 4 $ 9 $ 8 $ 11 $ 37 $ 5 $ 42 2018 8 5 7 17 12 49 5 54 First six months 2019 10 9 17 15 21 72 10 82 2018 15 6 15 33 24 93 14 107 Operating income (loss) Second quarter 2019 $ 27 $ (4 ) $ (3 ) $ 17 $ 15 $ 52 $ (12 ) $ 40 2018 41 (10 ) 79 18 4 132 (11 ) 121 First six months 2019 69 (12 ) 3 45 30 135 (31 ) 104 2018 74 (11 ) 132 14 (3 ) 206 (37 ) 169 (1) Inter-segment sales of $11 million and $9 million for the three months ended June 30, 2019 and 2018, respectively, and $22 million and $19 million for the six months ended June 30, 2019 and 2018, which are transacted at cost, were excluded from market pulp sales. (2) The operating results of our Calhoun (Tennessee) tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. (3) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $16 million for the six months ended June 30, 2019 and 2018, respectively. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 613 $ 569 $ (427 ) $ 755 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 599 371 (434 ) 536 Depreciation and amortization — 9 33 — 42 Distribution costs — 23 76 2 101 Selling, general and administrative expenses 4 15 17 — 36 Operating (loss) income (4 ) (33 ) 72 5 40 Interest expense (17 ) — (2 ) 12 (7 ) Non-operating pension and other postretirement benefit credits — 2 10 — 12 Other income (expense), net — 15 (4 ) (12 ) (1 ) Equity in income of subsidiaries 46 7 — (53 ) — Income (loss) before income taxes 25 (9 ) 76 (48 ) 44 Income tax provision — — (18 ) (1 ) (19 ) Net income (loss) including noncontrolling interests 25 (9 ) 58 (49 ) 25 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 25 $ (9 ) $ 58 $ (49 ) $ 25 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 24 $ (12 ) $ 60 $ (48 ) $ 24 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Six Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 1,285 $ 1,166 $ (901 ) $ 1,550 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 1,247 742 (899 ) 1,090 Depreciation and amortization — 19 63 — 82 Distribution costs — 49 155 (3 ) 201 Selling, general and administrative expenses 10 24 39 — 73 Operating (loss) income (10 ) (54 ) 167 1 104 Interest expense (34 ) (2 ) (6 ) 26 (16 ) Non-operating pension and other postretirement benefit credits — 5 19 — 24 Other (expense) income, net (3 ) 32 (8 ) (26 ) (5 ) Equity in income of subsidiaries 114 18 — (132 ) — Income (loss) before income taxes 67 (1 ) 172 (131 ) 107 Income tax provision — — (40 ) — (40 ) Net income (loss) including noncontrolling interests 67 (1 ) 132 (131 ) 67 Net income attributable to noncontrolling interests — — — — — Net income (loss) attributable to Resolute Forest Products Inc. $ 67 $ (1 ) $ 132 $ (131 ) $ 67 Comprehensive income (loss) attributable to Resolute Forest Products Inc. $ 69 $ (6 ) $ 139 $ (133 ) $ 69 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 731 $ 674 $ (429 ) $ 976 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 666 396 (423 ) 639 Depreciation and amortization — 21 33 — 54 Distribution costs — 38 85 — 123 Selling, general and administrative expenses 7 14 21 — 42 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (7 ) (8 ) 142 (6 ) 121 Interest expense (24 ) (1 ) (3 ) 17 (11 ) Non-operating pension and other postretirement benefit credits — 3 9 — 12 Other income (expense), net — 19 (5 ) (17 ) (3 ) Equity in income of subsidiaries 103 28 — (131 ) — Income before income taxes 72 41 143 (137 ) 119 Income tax provision — — (48 ) 1 (47 ) Net income including noncontrolling interests 72 41 95 (136 ) 72 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 72 $ 41 $ 95 $ (136 ) $ 72 Comprehensive income attributable to Resolute Forest Products Inc. $ 75 $ 39 $ 100 $ (139 ) $ 75 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Sales $ — $ 1,540 $ 1,266 $ (956 ) $ 1,850 Costs and expenses: Cost of sales, excluding depreciation, amortization and distribution costs — 1,437 762 (946 ) 1,253 Depreciation and amortization — 41 66 — 107 Distribution costs — 77 164 (2 ) 239 Selling, general and administrative expenses 12 31 42 — 85 Closure costs, impairment and other related charges — — 1 — 1 Net gain on disposition of assets — — (4 ) — (4 ) Operating (loss) income (12 ) (46 ) 235 (8 ) 169 Interest expense (47 ) (4 ) (6 ) 33 (24 ) Non-operating pension and other postretirement benefit credits — 7 18 — 25 Other income (expense), net — 33 (10 ) (33 ) (10 ) Equity in income of subsidiaries 141 49 — (190 ) — Income before income taxes 82 39 237 (198 ) 160 Income tax provision — — (80 ) 2 (78 ) Net income including noncontrolling interests 82 39 157 (196 ) 82 Net income attributable to noncontrolling interests — — — — — Net income attributable to Resolute Forest Products Inc. $ 82 $ 39 $ 157 $ (196 ) $ 82 Comprehensive income attributable to Resolute Forest Products Inc. $ 88 $ 34 $ 168 $ (202 ) $ 88 |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET As of June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 91 $ 7 $ — $ 98 Accounts receivable, net — 270 130 — 400 Accounts receivable from affiliates — 248 748 (996 ) — Inventories, net — 214 328 (12 ) 530 Advance and interest receivable from parent — 66 — (66 ) — Interest receivable from affiliate — 4 — (4 ) — Other current assets — 16 26 — 42 Total current assets — 909 1,239 (1,078 ) 1,070 Fixed assets, net — 525 954 — 1,479 Amortizable intangible assets, net — 3 47 — 50 Deferred income tax assets — 1 865 3 869 Operating lease right-of-use assets — 29 34 — 63 Notes receivable from parent — 1,264 — (1,264 ) — Note receivable from affiliate — 111 — (111 ) — Investments in consolidated subsidiaries and affiliates 3,875 2,083 — (5,958 ) — Other assets — 158 63 — 221 Total assets $ 3,875 $ 5,083 $ 3,202 $ (8,408 ) $ 3,752 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 10 $ 122 $ 244 $ — $ 376 Current portion of long-term debt — 1 — — 1 Current portion of operating lease liabilities — 4 4 — 8 Accounts payable to affiliates 257 784 — (1,041 ) — Advance and interest payable to subsidiaries 66 — — (66 ) — Interest payable to affiliate — — 4 (4 ) — Total current liabilities 333 911 252 (1,111 ) 385 Long-term debt, net of current portion 370 52 — — 422 Notes payable to subsidiaries 1,264 — — (1,264 ) — Note payable to affiliate — — 111 (111 ) — Pension and other postretirement benefit obligations — 330 901 — 1,231 Operating lease liabilities, net of current portion — 26 33 — 59 Other liabilities — 22 33 — 55 Total liabilities 1,967 1,341 1,330 (2,486 ) 2,152 Total equity 1,908 3,742 1,872 (5,922 ) 1,600 Total liabilities and equity $ 3,875 $ 5,083 $ 3,202 $ (8,408 ) $ 3,752 CONDENSED CONSOLIDATING BALANCE SHEET As of December 31, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Assets Current assets: Cash and cash equivalents $ — $ 301 $ 3 $ — $ 304 Accounts receivable, net — 301 148 — 449 Accounts receivable from affiliates — 588 1,071 (1,659 ) — Inventories, net — 194 327 (13 ) 508 Note, advance and interest receivable from parent — 422 — (422 ) — Interest receivable from affiliate — 4 — (4 ) — Other current assets — 15 28 — 43 Total current assets — 1,825 1,577 (2,098 ) 1,304 Fixed assets, net — 523 992 — 1,515 Amortizable intangible assets, net — 2 48 — 50 Deferred income tax assets — 1 872 3 876 Notes receivable from parent — 657 — (657 ) — Note receivable from affiliate — 107 — (107 ) — Investments in consolidated subsidiaries and affiliates 4,119 2,205 — (6,324 ) — Other assets — 126 64 — 190 Total assets $ 4,119 $ 5,446 $ 3,553 $ (9,183 ) $ 3,935 Liabilities and equity Current liabilities: Accounts payable and accrued liabilities $ 7 $ 170 $ 250 $ — $ 427 Current portion of long-term debt 222 1 — — 223 Accounts payable to affiliates 592 1,112 — (1,704 ) — Note, advance and interest payable to subsidiaries 422 — — (422 ) — Interest payable to affiliate — — 4 (4 ) — Total current liabilities 1,243 1,283 254 (2,130 ) 650 Long-term debt, net of current portion 370 52 — — 422 Notes payable to subsidiaries 657 — — (657 ) — Note payable to affiliate — — 107 (107 ) — Pension and other postretirement benefit obligations — 342 915 — 1,257 Other liabilities 6 21 44 — 71 Total liabilities 2,276 1,698 1,320 (2,894 ) 2,400 Total equity 1,843 3,748 2,233 (6,289 ) 1,535 Total liabilities and equity $ 4,119 $ 5,446 $ 3,553 $ (9,183 ) $ 3,935 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2019 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 64 $ 31 $ — $ 95 Cash flows from investing activities: Cash invested in fixed assets — (19 ) (26 ) — (45 ) Disposition of assets — 2 — — 2 Decrease in countervailing duty cash deposits on supercalendered paper — 1 — — 1 Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (33 ) — — (33 ) Decrease in countervailing duty cash deposits on uncoated groundwood paper — 6 — — 6 Increase in notes receivable from and advance to parent — (230 ) — 230 — Net cash used in investing activities — (273 ) (26 ) 230 (69 ) Cash flows from financing activities: Payments of debt (225 ) — — — (225 ) Purchases of treasury stock (5 ) — — — (5 ) Payments of financing and credit facility fees — (1 ) (1 ) — (2 ) Increase in notes payable to and advance from subsidiaries 230 — — (230 ) — Net cash used in financing activities — (1 ) (1 ) (230 ) (232 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — 1 — 1 Net (decrease) increase in cash and cash equivalents, and restricted cash — (210 ) 5 — (205 ) Cash and cash equivalents, and restricted cash: Beginning of period — 306 39 — 345 End of period $ — $ 96 $ 44 $ — $ 140 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 91 $ 7 $ — $ 98 Restricted cash — 5 37 — 42 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Six Months Ended June 30, 2018 (Unaudited, in millions) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Consolidating Adjustments Consolidated Net cash provided by operating activities $ — $ 187 $ 33 $ — $ 220 Cash flows from investing activities: Cash invested in fixed assets — (16 ) (37 ) — (53 ) Disposition of assets — — 2 — 2 Increase in countervailing duty cash deposits on supercalendered paper — (11 ) — — (11 ) Increase in countervailing and anti-dumping duty cash deposits on softwood lumber — (41 ) — — (41 ) Increase in countervailing duty cash deposits on uncoated groundwood paper — (6 ) — — (6 ) Advance to parent — (1 ) — 1 — Net cash used in investing activities — (75 ) (35 ) 1 (109 ) Cash flows from financing activities: Net repayments under revolving credit facilities — (114 ) — — (114 ) Payments of financing and credit facility fees (1 ) — — — (1 ) Advance from subsidiary 1 — — (1 ) — Net cash used in financing activities — (114 ) — (1 ) (115 ) Effect of exchange rate changes on cash and cash equivalents, and restricted cash — — (2 ) — (2 ) Net decrease in cash and cash equivalents, and restricted cash — (2 ) (4 ) — (6 ) Cash and cash equivalents, and restricted cash: Beginning of period — 3 46 — 49 End of period $ — $ 1 $ 42 $ — $ 43 Cash and cash equivalents, and restricted cash at period end: Cash and cash equivalents $ — $ 1 $ 5 $ — $ 6 Restricted cash — — 37 — 37 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Nature of Operations (Details) $ in Millions | Jun. 30, 2019USD ($)sitecountry | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of countries products are marketed in (approximate) | country | 70 | ||
Number of manufacturing facilities (approximate) | site | 40 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortizable intangible assets, net | $ 50 | $ 51 | $ 50 |
Operating lease right-of-use assets | 63 | 65 | 0 |
Current portion of operating lease liabilities | 8 | 7 | 0 |
Operating lease liabilities, net of current portion | 59 | 60 | 0 |
Other liabilities | $ 55 | 70 | $ 71 |
Before accounting standards update [Member] | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortizable intangible assets, net | 50 | ||
Operating lease right-of-use assets | 0 | ||
Current portion of operating lease liabilities | 0 | ||
Operating lease liabilities, net of current portion | 0 | ||
Other liabilities | 71 | ||
Effect of change [Member] | Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amortizable intangible assets, net | 1 | ||
Operating lease right-of-use assets | 65 | ||
Current portion of operating lease liabilities | 7 | ||
Operating lease liabilities, net of current portion | 60 | ||
Other liabilities | $ (1) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (950) | ||||
Other comprehensive loss before reclassifications | (3) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 5 | |||
Other comprehensive income (loss), net of tax | $ (1) | $ 3 | 2 | $ 6 | |
Ending balance | (948) | (948) | |||
Unamortized Prior Service Credits [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 28 | ||||
Other comprehensive loss before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | (7) | |||
Other comprehensive income (loss), net of tax | (7) | ||||
Ending balance | 21 | 21 | |||
Unamortized Actuarial Losses [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (971) | ||||
Other comprehensive loss before reclassifications | (3) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 12 | |||
Other comprehensive income (loss), net of tax | 9 | ||||
Ending balance | (962) | (962) | |||
Foreign Currency Translation [Member] | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (7) | ||||
Other comprehensive loss before reclassifications | 0 | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | [1] | 0 | |||
Other comprehensive income (loss), net of tax | 0 | ||||
Ending balance | $ (7) | $ (7) | |||
[1] | See the table below for details about these reclassifications. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit credits (costs) | $ 12 | $ 12 | $ 24 | $ 25 | |
Income tax (provision) benefit | (19) | (47) | (40) | (78) | |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 25 | $ 72 | 67 | $ 82 | |
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net income (loss) attributable to Resolute Forest Products Inc. | 5 | ||||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Amortization of Prior Service Costs (Credits) [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit credits (costs) | [1] | (6) | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Net Prior Service - Curtailment (Gains) Losses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit credits (costs) | [1] | (1) | |||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Prior Service Credits [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Income tax (provision) benefit | 0 | ||||
Net income (loss) attributable to Resolute Forest Products Inc. | (7) | ||||
Amounts Reclassified From Accumulated Other Comprehensive Loss [Member] | Unamortized Actuarial Losses [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Non-operating pension and other postretirement benefit credits (costs) | [1] | 15 | |||
Income tax (provision) benefit | (3) | ||||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 12 | ||||
[1] | These items are included in the computation of net periodic benefit cost related to our pension and other postretirement benefit (or “ OPEB ”) plans summarized in Note 8, “Employee Benefit Plans .” |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||
Net income attributable to Resolute Forest Products Inc. | $ 25 | $ 72 | $ 67 | $ 82 | |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding | 92.4 | 91.3 | 92.4 | 91.2 | |
Dilutive impact of nonvested stock unit awards | [1] | 1.2 | 1.9 | 1.4 | 1.9 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding | 93.6 | 93.2 | 93.8 | 93.1 | |
Basic earnings per share (in dollars per share) | $ 0.27 | $ 0.79 | $ 0.73 | $ 0.90 | |
Diluted earnings per share (in dollars per share) | $ 0.27 | $ 0.77 | $ 0.71 | $ 0.88 | |
Stock options [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 1 | 1.3 | 1 | 1.3 | |
[1] | When we refer to stock unit awards we mean equity-classified restricted stock units, deferred stock units and performance stock units. |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 102 | $ 106 |
Work in process | 41 | 39 |
Finished goods | 194 | 180 |
Mill stores and other supplies | 193 | 183 |
Inventories, net | $ 530 | $ 508 |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | ||
Leases [Abstract] | |||
Operating lease cost | $ 3 | $ 6 | |
Variable lease cost | [1] | $ 4 | $ 10 |
[1] | Variable lease cost is determined by the consumption of the underlying asset. |
Operating Leases - Supplemental
Operating Leases - Supplemental Balance Sheet Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining operating lease term (in years) | 11 years 4 months 24 days |
Weighted-average operating lease discount rate | 4.70% |
Operating Leases - Supplement_2
Operating Leases - Supplemental Cash Flow Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flow payments for operating lease liabilities | $ 5 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 2 |
Operating Leases - Maturities o
Operating Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Lease payments maturing in 2019 | $ 5 |
Lease payments maturing in 2020 | 11 |
Lease payments maturing in 2021 | 9 |
Lease payments maturing in 2022 | 9 |
Lease payments maturing in 2023 | 7 |
Lease payments maturing in 2024 and thereafter | 46 |
Total lease payments | 87 |
Less: imputed interest | (20) |
Total operating lease liabilities | $ 67 |
Operating Leases - Additional I
Operating Leases - Additional Information (Details) | Jun. 30, 2019 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term of contracts | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease term of contracts | 24 years |
Operating lease renewal term | 13 years |
Operating Leases - Parenthetica
Operating Leases - Parenthetical (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 270 | $ 299 |
Accrued compensation | 49 | 66 |
Accrued interest | 3 | 5 |
Pension and other postretirement benefit obligations | 17 | 17 |
Accrued provision for former Fibrek Inc. dissenting shareholders | 11 | 0 |
Income and other taxes payable | 4 | 4 |
Deposits | 10 | 20 |
Other | 12 | 16 |
Accounts payable and accrued liabilities | $ 376 | $ 427 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Finance lease obligation | $ 7 | $ 7 |
Total debt | 423 | 645 |
Less: Current portion of 5.875% senior unsecured notes due 2023 | 0 | (222) |
Less: Current portion of finance lease obligation | (1) | (1) |
Long-term debt, net of current portion | 422 | 422 |
Secured Debt [Member] | Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Net carrying amount | 46 | 46 |
Senior Notes [Member] | Senior Notes Due Two Thousand Twenty-Three [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 375 | 600 |
Deferred financing costs | (3) | (5) |
Unamortized discount | (2) | (3) |
Net carrying amount | $ 370 | $ 592 |
Long-Term Debt - 2023 Notes (De
Long-Term Debt - 2023 Notes (Details) - Senior Notes [Member] - Senior Notes Due Two Thousand Twenty-Three [Member] - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jan. 03, 2019 | Dec. 31, 2018 | May 08, 2013 | |
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 600,000,000 | |||
Interest rate of notes | 5.875% | |||
Fair value of senior notes | $ 379,000,000 | $ 598,000,000 | $ 594,000,000 | |
Unamortized discount | $ 6,000,000 | |||
Effective interest rate of debt | 6.00% | |||
Deferred financing costs | $ 9,000,000 | |||
Notes repurchased face amount | $ 225,000,000 | |||
Purchase price to principal amount, percentage | 100.00% | |||
Loss on extinguishment of debt | $ 3,000,000 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - Senior Secured Credit Facility [Member] - USD ($) | Jun. 30, 2019 | Sep. 07, 2016 |
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 185,000,000 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 46,000,000 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility lender commitment amount | $ 139,000,000 | |
Available credit facility borrowing capacity | $ 139,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) - Revolving credit facility [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | May 14, 2019 | |
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 500,000,000 | |
Uncommitted ability to increase borrowing capacity, maximum | $ 500,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
Number of days before the maturity date of the senior secured credit facility that the credit agreement reserve commences | 60 days | |
Average daily utilization threshold, percentage | 35.00% | |
Credit facility, fronting fee percentage | 0.125% | |
Minimum fixed charge coverage ratio required if excess availability falls below certain conditions | 1 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, amount | $ 45,000,000 | |
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, percentage of the maximum available borrowing amount | 10.00% | |
Available credit facility borrowing capacity | $ 353,000,000 | |
Letters of credit amount outstanding | 51,000,000 | |
Letter of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 200,000,000 | |
Borrowing base availability, eligible accounts receivable, percentage | 85.00% | |
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors, percentage | 90.00% | |
Borrowing base availability, cost or market value of eligible inventory, percentage | 70.00% | |
Borrowing base availability, net orderly liquidation value of eligible inventory, percentage | 85.00% | |
Borrowing base availability, value of eligible cash, percentage | 100.00% | |
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent, percentage | 95.00% | |
Swingline [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility lender commitment amount | $ 60,000,000 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.30% | |
Maximum [Member] | FILO facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitments of the ABL credit facility convertible to a first-in last-out facility | $ 50,000,000 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility commitment fee percentage, unutilized commitments | 0.25% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.50% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 0.00% | |
Canadian Dollar Offered Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.50% | |
Canadian Dollar Offered Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate margin applicable to borrowings | 1.00% |
Long-Term Debt - Capital Lease
Long-Term Debt - Capital Lease Obligation (Details) | Jun. 30, 2019 |
Debt Disclosure [Abstract] | |
Length of warehouse capital lease obligation renewal option | 20 years |
Long-Term Debt Long-Term Debt -
Long-Term Debt Long-Term Debt - Parenthetical (Details) | Jun. 30, 2019 |
Debt Disclosure [Abstract] | |
Current portion of finance lease obligation, balance sheet [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Finance lease obligation, balance sheet [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Non-operating pension and other postretirement benefit costs (credits) | $ (12) | $ (12) | $ (24) | $ (25) |
Expense for the defined contribution plans, total | 4 | 5 | 9 | 10 |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 45 | 48 | 90 | 96 |
Expected return on plan assets | (61) | (67) | (124) | (134) |
Amortization of actuarial (gains) losses | 9 | 10 | 18 | 20 |
Amortization of prior service (credits) costs | (1) | 0 | (1) | (1) |
Non-operating pension and other postretirement benefit costs (credits) | (8) | (9) | (17) | (19) |
Service cost | 3 | 4 | 7 | 9 |
Net periodic benefit costs (credits) before special events | (5) | (5) | (10) | (10) |
Curtailment and settlement (gain) loss | (1) | 1 | (1) | 1 |
Net periodic benefit cost | (6) | (4) | (11) | (9) |
OPEB Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 2 | 2 | 3 |
Amortization of actuarial (gains) losses | (2) | (2) | (3) | (3) |
Amortization of prior service (credits) costs | (2) | (4) | (5) | (7) |
Non-operating pension and other postretirement benefit costs (credits) | (3) | (4) | (6) | (7) |
Service cost | 0 | 1 | 0 | 1 |
Net periodic benefit cost | $ (3) | $ (3) | $ (6) | $ (6) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Interest cost, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Expected return on plan assets, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Amortization of actuarial gains (losses), statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Amortization of prior service costs (credits), statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Net periodic benefit cost (credit) excluding service cost, statement of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Settlement loss, statements of operations [Extensible List] | us-gaap:NetPeriodicDefinedBenefitsExpenseReversalOfExpenseExcludingServiceCostComponent |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory income tax rate (for rate rec) | 21.00% | 21.00% | 21.00% | 21.00% | |
Income before income taxes | $ 44 | $ 119 | $ 107 | $ 160 | |
Income tax provision: | |||||
Expected income tax provision | (9) | (25) | (22) | (34) | |
Changes resulting from: | |||||
Valuation allowance | [1] | (4) | 13 | (11) | 8 |
Foreign exchange | 1 | (7) | 4 | (14) | |
U.S. tax on non-U.S. earnings | [2] | (5) | (18) | (5) | (25) |
State income taxes, net of federal income tax benefit | 1 | 0 | 2 | 2 | |
Foreign tax rate differences | (4) | (7) | (9) | (12) | |
Other, net | 1 | (3) | 1 | (3) | |
Income tax provision | $ (19) | $ (47) | $ (40) | $ (78) | |
[1] | Relates to our U.S. operations. | ||||
[2] | Reduces income tax benefits on U.S. losses for the three and six months ended June 30, 2019 and 2018. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate (for rate rec) | 21.00% | 21.00% | 21.00% | 21.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, $ in Millions | 6 Months Ended | |||||||
Jun. 30, 2019USD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2019CAD ($) | Dec. 31, 2018USD ($) | Nov. 02, 2017 | Jun. 30, 2017 | Apr. 28, 2017 | Jul. 31, 2012 | |
Loss Contingencies [Line Items] | ||||||||
Preliminary countervailing duty rate on Canadian softwood lumber imported to the U.S. market | 12.82% | |||||||
Final determination countervailing duty rate on Canadian softwood lumber imported to the U.S. market | 14.70% | |||||||
Accumulated countervailing cash deposits made on softwood lumber exports | $ 106 | |||||||
Preliminary anti-dumping rate on Canadian softwood lumber imported to the U.S. market | 4.59% | |||||||
Final determination anti-dumping rate on Canadian softwood lumber imported to the U.S. market | 3.20% | |||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | 30 | |||||||
Maximum deficit from partial wind-up of pension plans to be funded | 115 | $ 150 | ||||||
Environmental Remediation Obligations [Abstract] | ||||||||
Environmental liabilities | 8 | $ 8 | ||||||
Asset retirement obligations | 26 | $ 23 | ||||||
Softwood Lumber Duties Investigations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Contingent loss | 0 | |||||||
Fibrek [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Percentage of outstanding shares acquired | 25.40% | |||||||
Amount paid, contingent consideration, business combination | 0 | |||||||
Amount accrued to be contingently distributed | 11 | $ 14 | ||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Yearly countervailing duty cash deposits on imports of Canadian softwood lumber imported to the U.S. market | 60 | |||||||
Yearly anti-dumping cash deposits on imports of Canadian softwood lumber imported to the U.S. market | $ 15 |
Share Capital (Details)
Share Capital (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Treasury stock, shares, acquired | 720,000 | 0 | 720,000 | 0 |
Shares repurchased, cost | $ 5 | $ 5 | ||
Stock repurchase program, authorized amount | 150 | 150 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 19 | $ 19 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 755 | $ 976 | $ 1,550 | $ 1,850 | |
Depreciation and amortization | 42 | 54 | 82 | 107 | |
Operating income (loss) | 40 | 121 | 104 | 169 | |
Operating segments [Member] | Market Pulp [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [1] | 189 | 264 | 420 | 521 |
Depreciation and amortization | [1] | 5 | 8 | 10 | 15 |
Operating income (loss) | [1] | 27 | 41 | 69 | 74 |
Operating segments [Member] | Tissue [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 43 | 35 | 82 | 57 |
Depreciation and amortization | [2] | 4 | 5 | 9 | 6 |
Operating income (loss) | [2] | (4) | (10) | (12) | (11) |
Operating segments [Member] | Wood Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [3] | 168 | 254 | 329 | 463 |
Depreciation and amortization | [3] | 9 | 7 | 17 | 15 |
Operating income (loss) | [3] | (3) | 79 | 3 | 132 |
Operating segments [Member] | Newsprint [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 209 | 230 | 421 | 428 | |
Depreciation and amortization | 8 | 17 | 15 | 33 | |
Operating income (loss) | 17 | 18 | 45 | 14 | |
Operating segments [Member] | Specialty Papers [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 146 | 193 | 298 | 381 | |
Depreciation and amortization | 11 | 12 | 21 | 24 | |
Operating income (loss) | 15 | 4 | 30 | (3) | |
Operating segments [Member] | Segment Total [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 755 | 976 | 1,550 | 1,850 | |
Depreciation and amortization | 37 | 49 | 72 | 93 | |
Operating income (loss) | 52 | 132 | 135 | 206 | |
Corporate, non-segment [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 5 | 5 | 10 | 14 | |
Operating income (loss) | $ (12) | $ (11) | $ (31) | $ (37) | |
[1] | Inter-segment sales of $11 million and $9 million for the three months ended June 30, 2019 and 2018, respectively, and $22 million and $19 million for the six months ended June 30, 2019 and 2018, which are transacted at cost, were excluded from market pulp sales. | ||||
[2] | The operating results of our Calhoun (Tennessee) tissue operations, previously recorded under “corporate and other,” have been recorded in our tissue segment since April 1, 2018. | ||||
[3] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $16 million for the six months ended June 30, 2019 and 2018, respectively. |
Segment Information - Schedul_2
Segment Information - Schedule of Segment Reporting Information - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||||
Sales | $ 755 | $ 976 | $ 1,550 | $ 1,850 | |
Market Pulp [Member] | Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 11 | 9 | 22 | 19 | |
Market Pulp [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [1] | 189 | 264 | 420 | 521 |
Wood Products [Member] | Operating segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | [2] | 168 | 254 | 329 | 463 |
Joint venture sales | $ 6 | $ 8 | $ 11 | $ 16 | |
[1] | Inter-segment sales of $11 million and $9 million for the three months ended June 30, 2019 and 2018, respectively, and $22 million and $19 million for the six months ended June 30, 2019 and 2018, which are transacted at cost, were excluded from market pulp sales. | ||||
[2] | Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $6 million and $8 million for the three months ended June 30, 2019 and 2018, respectively, and $11 million and $16 million for the six months ended June 30, 2019 and 2018, respectively. |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | $ 755 | $ 976 | $ 1,550 | $ 1,850 |
Costs and expenses: | ||||
Depreciation and amortization | 42 | 54 | 82 | 107 |
Selling, general and administrative expenses | 36 | 42 | 73 | 85 |
Closure costs, impairment and other related charges | 0 | 1 | 0 | 1 |
Net gain on disposition of assets | 0 | (4) | 0 | (4) |
Operating income (loss) | 40 | 121 | 104 | 169 |
Interest expense | (7) | (11) | (16) | (24) |
Non-operating pension and other postretirement benefit credits | 12 | 12 | 24 | 25 |
Other income (expense), net | (1) | (3) | (5) | (10) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 44 | 119 | 107 | 160 |
Income tax provision | (19) | (47) | (40) | (78) |
Net income (loss) including noncontrolling interests | 25 | 72 | 67 | 82 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 25 | 72 | 67 | 82 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 24 | 75 | 69 | 88 |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 4 | 7 | 10 | 12 |
Closure costs, impairment and other related charges | 0 | 0 | ||
Net gain on disposition of assets | 0 | 0 | ||
Operating income (loss) | (4) | (7) | (10) | (12) |
Interest expense | (17) | (24) | (34) | (47) |
Non-operating pension and other postretirement benefit credits | 0 | 0 | 0 | 0 |
Other income (expense), net | 0 | 0 | (3) | 0 |
Equity in income (loss) of subsidiaries | 46 | 103 | 114 | 141 |
Income (loss) before income taxes | 25 | 72 | 67 | 82 |
Income tax provision | 0 | 0 | 0 | 0 |
Net income (loss) including noncontrolling interests | 25 | 72 | 67 | 82 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 25 | 72 | 67 | 82 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 24 | 75 | 69 | 88 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 613 | 731 | 1,285 | 1,540 |
Costs and expenses: | ||||
Depreciation and amortization | 9 | 21 | 19 | 41 |
Selling, general and administrative expenses | 15 | 14 | 24 | 31 |
Closure costs, impairment and other related charges | 0 | 0 | ||
Net gain on disposition of assets | 0 | 0 | ||
Operating income (loss) | (33) | (8) | (54) | (46) |
Interest expense | 0 | (1) | (2) | (4) |
Non-operating pension and other postretirement benefit credits | 2 | 3 | 5 | 7 |
Other income (expense), net | 15 | 19 | 32 | 33 |
Equity in income (loss) of subsidiaries | 7 | 28 | 18 | 49 |
Income (loss) before income taxes | (9) | 41 | (1) | 39 |
Income tax provision | 0 | 0 | 0 | 0 |
Net income (loss) including noncontrolling interests | (9) | 41 | (1) | 39 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (9) | 41 | (1) | 39 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | (12) | 39 | (6) | 34 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 569 | 674 | 1,166 | 1,266 |
Costs and expenses: | ||||
Depreciation and amortization | 33 | 33 | 63 | 66 |
Selling, general and administrative expenses | 17 | 21 | 39 | 42 |
Closure costs, impairment and other related charges | 1 | 1 | ||
Net gain on disposition of assets | (4) | (4) | ||
Operating income (loss) | 72 | 142 | 167 | 235 |
Interest expense | (2) | (3) | (6) | (6) |
Non-operating pension and other postretirement benefit credits | 10 | 9 | 19 | 18 |
Other income (expense), net | (4) | (5) | (8) | (10) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 76 | 143 | 172 | 237 |
Income tax provision | (18) | (48) | (40) | (80) |
Net income (loss) including noncontrolling interests | 58 | 95 | 132 | 157 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | 58 | 95 | 132 | 157 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | 60 | 100 | 139 | 168 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | (427) | (429) | (901) | (956) |
Costs and expenses: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Closure costs, impairment and other related charges | 0 | 0 | ||
Net gain on disposition of assets | 0 | 0 | ||
Operating income (loss) | 5 | (6) | 1 | (8) |
Interest expense | 12 | 17 | 26 | 33 |
Non-operating pension and other postretirement benefit credits | 0 | 0 | 0 | 0 |
Other income (expense), net | (12) | (17) | (26) | (33) |
Equity in income (loss) of subsidiaries | (53) | (131) | (132) | (190) |
Income (loss) before income taxes | (48) | (137) | (131) | (198) |
Income tax provision | (1) | 1 | 0 | 2 |
Net income (loss) including noncontrolling interests | (49) | (136) | (131) | (196) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | (49) | (136) | (131) | (196) |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | (48) | (139) | (133) | (202) |
Product [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 536 | 639 | 1,090 | 1,253 |
Product [Member] | Parent [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | 0 |
Product [Member] | Guarantor Subsidiaries [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 599 | 666 | 1,247 | 1,437 |
Product [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 371 | 396 | 742 | 762 |
Product [Member] | Consolidating Adjustments [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | (434) | (423) | (899) | (946) |
Distribution costs [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 101 | 123 | 201 | 239 |
Distribution costs [Member] | Parent [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 0 | 0 | 0 | 0 |
Distribution costs [Member] | Guarantor Subsidiaries [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 23 | 38 | 49 | 77 |
Distribution costs [Member] | Non-Guarantor Subsidiaries [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | 76 | 85 | 155 | 164 |
Distribution costs [Member] | Consolidating Adjustments [Member] | ||||
Costs and expenses: | ||||
Cost of sales, excluding depreciation, amortization and distribution costs | $ 2 | $ 0 | $ (3) | $ (2) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | |||||||
Cash and cash equivalents | $ 98 | $ 304 | $ 6 | ||||
Accounts receivable, net | 400 | 449 | |||||
Accounts receivable from affiliates | 0 | 0 | |||||
Inventories, net | 530 | 508 | |||||
Notes, advance and interest receivable from parent | 0 | 0 | |||||
Notes and interest receivable from affiliates | 0 | 0 | |||||
Other current assets | 42 | 43 | |||||
Total current assets | 1,070 | 1,304 | |||||
Fixed assets, net | 1,479 | 1,515 | |||||
Amortizable intangible assets, net | 50 | $ 51 | 50 | ||||
Deferred income tax assets | 869 | 876 | |||||
Operating lease right-of-use assets | 63 | 65 | 0 | ||||
Notes receivable from parent | 0 | 0 | |||||
Notes receivable from affiliates | 0 | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | |||||
Other assets | 221 | 190 | |||||
Total assets | 3,752 | 3,935 | |||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | 376 | 427 | |||||
Current portion of long-term debt | 1 | 223 | |||||
Current portion of operating lease liabilities | 8 | 7 | 0 | ||||
Accounts payable to affiliates | 0 | 0 | |||||
Notes, advance and interest payable to subsidiaries | 0 | 0 | |||||
Notes and interest payable to affiliates | 0 | 0 | |||||
Total current liabilities | 385 | 650 | |||||
Long-term debt, net of current portion | 422 | 422 | |||||
Notes payable to subsidiaries | 0 | 0 | |||||
Notes payable to affiliates | 0 | 0 | |||||
Pension and other postretirement benefit obligations | 1,231 | 1,257 | |||||
Operating lease liabilities, net of current portion | 59 | 60 | 0 | ||||
Other liabilities | 55 | $ 70 | 71 | ||||
Total liabilities | 2,152 | 2,400 | |||||
Total equity | 1,600 | $ 1,580 | 1,535 | 1,692 | $ 1,616 | $ 1,600 | |
Total liabilities and equity | 3,752 | 3,935 | |||||
Parent [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||
Accounts receivable, net | 0 | 0 | |||||
Accounts receivable from affiliates | 0 | 0 | |||||
Inventories, net | 0 | 0 | |||||
Notes, advance and interest receivable from parent | 0 | 0 | |||||
Notes and interest receivable from affiliates | 0 | 0 | |||||
Other current assets | 0 | 0 | |||||
Total current assets | 0 | 0 | |||||
Fixed assets, net | 0 | 0 | |||||
Amortizable intangible assets, net | 0 | 0 | |||||
Deferred income tax assets | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | ||||||
Notes receivable from parent | 0 | 0 | |||||
Notes receivable from affiliates | 0 | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 3,875 | 4,119 | |||||
Other assets | 0 | 0 | |||||
Total assets | 3,875 | 4,119 | |||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | 10 | 7 | |||||
Current portion of long-term debt | 0 | 222 | |||||
Current portion of operating lease liabilities | 0 | ||||||
Accounts payable to affiliates | 257 | 592 | |||||
Notes, advance and interest payable to subsidiaries | 66 | 422 | |||||
Notes and interest payable to affiliates | 0 | 0 | |||||
Total current liabilities | 333 | 1,243 | |||||
Long-term debt, net of current portion | 370 | 370 | |||||
Notes payable to subsidiaries | 1,264 | 657 | |||||
Notes payable to affiliates | 0 | 0 | |||||
Pension and other postretirement benefit obligations | 0 | 0 | |||||
Operating lease liabilities, net of current portion | 0 | ||||||
Other liabilities | 0 | 6 | |||||
Total liabilities | 1,967 | 2,276 | |||||
Total equity | 1,908 | 1,843 | |||||
Total liabilities and equity | 3,875 | 4,119 | |||||
Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 91 | 301 | 1 | ||||
Accounts receivable, net | 270 | 301 | |||||
Accounts receivable from affiliates | 248 | 588 | |||||
Inventories, net | 214 | 194 | |||||
Notes, advance and interest receivable from parent | 66 | 422 | |||||
Notes and interest receivable from affiliates | 4 | 4 | |||||
Other current assets | 16 | 15 | |||||
Total current assets | 909 | 1,825 | |||||
Fixed assets, net | 525 | 523 | |||||
Amortizable intangible assets, net | 3 | 2 | |||||
Deferred income tax assets | 1 | 1 | |||||
Operating lease right-of-use assets | 29 | ||||||
Notes receivable from parent | 1,264 | 657 | |||||
Notes receivable from affiliates | 111 | 107 | |||||
Investments in consolidated subsidiaries and affiliates | 2,083 | 2,205 | |||||
Other assets | 158 | 126 | |||||
Total assets | 5,083 | 5,446 | |||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | 122 | 170 | |||||
Current portion of long-term debt | 1 | 1 | |||||
Current portion of operating lease liabilities | 4 | ||||||
Accounts payable to affiliates | 784 | 1,112 | |||||
Notes, advance and interest payable to subsidiaries | 0 | 0 | |||||
Notes and interest payable to affiliates | 0 | 0 | |||||
Total current liabilities | 911 | 1,283 | |||||
Long-term debt, net of current portion | 52 | 52 | |||||
Notes payable to subsidiaries | 0 | 0 | |||||
Notes payable to affiliates | 0 | 0 | |||||
Pension and other postretirement benefit obligations | 330 | 342 | |||||
Operating lease liabilities, net of current portion | 26 | ||||||
Other liabilities | 22 | 21 | |||||
Total liabilities | 1,341 | 1,698 | |||||
Total equity | 3,742 | 3,748 | |||||
Total liabilities and equity | 5,083 | 5,446 | |||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 7 | 3 | 5 | ||||
Accounts receivable, net | 130 | 148 | |||||
Accounts receivable from affiliates | 748 | 1,071 | |||||
Inventories, net | 328 | 327 | |||||
Notes, advance and interest receivable from parent | 0 | 0 | |||||
Notes and interest receivable from affiliates | 0 | 0 | |||||
Other current assets | 26 | 28 | |||||
Total current assets | 1,239 | 1,577 | |||||
Fixed assets, net | 954 | 992 | |||||
Amortizable intangible assets, net | 47 | 48 | |||||
Deferred income tax assets | 865 | 872 | |||||
Operating lease right-of-use assets | 34 | ||||||
Notes receivable from parent | 0 | 0 | |||||
Notes receivable from affiliates | 0 | 0 | |||||
Investments in consolidated subsidiaries and affiliates | 0 | 0 | |||||
Other assets | 63 | 64 | |||||
Total assets | 3,202 | 3,553 | |||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | 244 | 250 | |||||
Current portion of long-term debt | 0 | 0 | |||||
Current portion of operating lease liabilities | 4 | ||||||
Accounts payable to affiliates | 0 | 0 | |||||
Notes, advance and interest payable to subsidiaries | 0 | 0 | |||||
Notes and interest payable to affiliates | 4 | 4 | |||||
Total current liabilities | 252 | 254 | |||||
Long-term debt, net of current portion | 0 | 0 | |||||
Notes payable to subsidiaries | 0 | 0 | |||||
Notes payable to affiliates | 111 | 107 | |||||
Pension and other postretirement benefit obligations | 901 | 915 | |||||
Operating lease liabilities, net of current portion | 33 | ||||||
Other liabilities | 33 | 44 | |||||
Total liabilities | 1,330 | 1,320 | |||||
Total equity | 1,872 | 2,233 | |||||
Total liabilities and equity | 3,202 | 3,553 | |||||
Consolidating Adjustments [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | $ 0 | ||||
Accounts receivable, net | 0 | 0 | |||||
Accounts receivable from affiliates | (996) | (1,659) | |||||
Inventories, net | (12) | (13) | |||||
Notes, advance and interest receivable from parent | (66) | (422) | |||||
Notes and interest receivable from affiliates | (4) | (4) | |||||
Other current assets | 0 | 0 | |||||
Total current assets | (1,078) | (2,098) | |||||
Fixed assets, net | 0 | 0 | |||||
Amortizable intangible assets, net | 0 | 0 | |||||
Deferred income tax assets | 3 | 3 | |||||
Operating lease right-of-use assets | 0 | ||||||
Notes receivable from parent | (1,264) | (657) | |||||
Notes receivable from affiliates | (111) | (107) | |||||
Investments in consolidated subsidiaries and affiliates | (5,958) | (6,324) | |||||
Other assets | 0 | 0 | |||||
Total assets | (8,408) | (9,183) | |||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | 0 | 0 | |||||
Current portion of long-term debt | 0 | 0 | |||||
Current portion of operating lease liabilities | 0 | ||||||
Accounts payable to affiliates | (1,041) | (1,704) | |||||
Notes, advance and interest payable to subsidiaries | (66) | (422) | |||||
Notes and interest payable to affiliates | (4) | (4) | |||||
Total current liabilities | (1,111) | (2,130) | |||||
Long-term debt, net of current portion | 0 | 0 | |||||
Notes payable to subsidiaries | (1,264) | (657) | |||||
Notes payable to affiliates | (111) | (107) | |||||
Pension and other postretirement benefit obligations | 0 | 0 | |||||
Operating lease liabilities, net of current portion | 0 | ||||||
Other liabilities | 0 | 0 | |||||
Total liabilities | (2,486) | (2,894) | |||||
Total equity | (5,922) | (6,289) | |||||
Total liabilities and equity | $ (8,408) | $ (9,183) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 95 | $ 220 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (45) | (53) | |
Disposition of assets | 2 | 2 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 1 | (11) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (33) | (41) | |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 6 | (6) | |
Increase in notes receivable from and advance to parent | 0 | ||
Advance to parent | 0 | ||
Net cash provided by (used in) investing activities | (69) | (109) | |
Cash flows from financing activities: | |||
Payments of debt | 225 | 0 | |
Purchases of treasury stock | (5) | 0 | |
Net repayments under revolving credit facilities | 0 | (114) | |
Payments of financing and credit facility fees | (2) | (1) | |
Increase in notes payable to and advance from subsidiaries | 0 | ||
Advance from subsidiary | 0 | ||
Net cash provided by (used in) financing activities | (232) | (115) | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 1 | (2) | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (205) | (6) | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 345 | 49 | |
End of period | 140 | 43 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 98 | 6 | $ 304 |
Restricted cash | 42 | 37 | |
Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | |
Disposition of assets | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 0 | 0 | |
Increase in notes receivable from and advance to parent | 0 | ||
Advance to parent | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Payments of debt | 225 | ||
Purchases of treasury stock | (5) | ||
Net repayments under revolving credit facilities | 0 | ||
Payments of financing and credit facility fees | 0 | (1) | |
Increase in notes payable to and advance from subsidiaries | 230 | ||
Advance from subsidiary | 1 | ||
Net cash provided by (used in) financing activities | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 0 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 0 | 0 | |
End of period | 0 | 0 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Restricted cash | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 64 | 187 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (19) | (16) | |
Disposition of assets | 2 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 1 | (11) | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (33) | (41) | |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 6 | (6) | |
Increase in notes receivable from and advance to parent | (230) | ||
Advance to parent | (1) | ||
Net cash provided by (used in) investing activities | (273) | (75) | |
Cash flows from financing activities: | |||
Payments of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Net repayments under revolving credit facilities | (114) | ||
Payments of financing and credit facility fees | (1) | 0 | |
Increase in notes payable to and advance from subsidiaries | 0 | ||
Advance from subsidiary | 0 | ||
Net cash provided by (used in) financing activities | (1) | (114) | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (210) | (2) | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 306 | 3 | |
End of period | 96 | 1 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 91 | 1 | 301 |
Restricted cash | 5 | 0 | |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 31 | 33 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (26) | (37) | |
Disposition of assets | 0 | 2 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 0 | 0 | |
Increase in notes receivable from and advance to parent | 0 | ||
Advance to parent | 0 | ||
Net cash provided by (used in) investing activities | (26) | (35) | |
Cash flows from financing activities: | |||
Payments of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Net repayments under revolving credit facilities | 0 | ||
Payments of financing and credit facility fees | (1) | 0 | |
Increase in notes payable to and advance from subsidiaries | 0 | ||
Advance from subsidiary | 0 | ||
Net cash provided by (used in) financing activities | (1) | 0 | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 1 | (2) | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 5 | (4) | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 39 | 46 | |
End of period | 44 | 42 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 7 | 5 | 3 |
Restricted cash | 37 | 37 | |
Consolidating Adjustments [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Cash invested in fixed assets | 0 | 0 | |
Disposition of assets | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on supercalendered paper | 0 | 0 | |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | 0 | 0 | |
Decrease (increase) in countervailing duty cash deposits on uncoated groundwood paper | 0 | 0 | |
Increase in notes receivable from and advance to parent | 230 | ||
Advance to parent | 1 | ||
Net cash provided by (used in) investing activities | 230 | 1 | |
Cash flows from financing activities: | |||
Payments of debt | 0 | ||
Purchases of treasury stock | 0 | ||
Net repayments under revolving credit facilities | 0 | ||
Payments of financing and credit facility fees | 0 | 0 | |
Increase in notes payable to and advance from subsidiaries | (230) | ||
Advance from subsidiary | (1) | ||
Net cash provided by (used in) financing activities | (230) | (1) | |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 0 | 0 | |
Cash and cash equivalents, and restricted cash: | |||
Beginning of period | 0 | 0 | |
End of period | 0 | 0 | |
Cash and cash equivalents, and restricted cash at period end: | |||
Cash and cash equivalents | 0 | 0 | $ 0 |
Restricted cash | $ 0 | $ 0 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Guarantor Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage owned of material U.S. subsidiaries | 100.00% |