Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity central index key | 0001393066 | ||
Document fiscal year focus | 2021 | ||
Document fiscal period focus | FY | ||
Amendment flag | false | ||
Document type | 10-K | ||
Document annual report | true | ||
Document period end date | Dec. 31, 2021 | ||
Current fiscal year end date | --12-31 | ||
Document transition report | false | ||
Entity file number | 001-33776 | ||
Entity registrant name | RESOLUTE FOREST PRODUCTS INC. | ||
Entity incorporation state | DE | ||
Entity tax identification number | 98-0526415 | ||
Entity address, address line one | 1010 De La Gauchetière Street West | ||
Entity address, address line two | Suite 400 | ||
Entity address, city | Montreal | ||
Entity address, province | QC | ||
Entity address, country | CA | ||
Entity address, postal zip code | H3B 2N2 | ||
City area code | 514 | ||
Local phone number | 875-2160 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading symbol | RFP | ||
Security exchange name | NYSE | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filer | No | ||
Entity current reporting status | Yes | ||
Entity interactive data current | Yes | ||
Entity filer category | Accelerated Filer | ||
Entity small business | false | ||
Entity emerging growth company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity shell company | false | ||
Entity public float | $ 588 | ||
Entity common stock, shares outstanding | 76,816,243 | ||
Documents incorporated by reference | Portions of the registrant’s definitive proxy statement to be filed within 120 days of December 31, 2021, are incorporated by reference in this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Montréal, Canada |
Auditor Firm ID | 271 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales | $ 3,664 | $ 2,800 | $ 2,923 |
Costs and expenses: | |||
Depreciation and amortization | 164 | 169 | 167 |
Selling, general and administrative expenses | 158 | 136 | 136 |
Closure costs, impairment and other related charges | 144 | 53 | 18 |
Net gain on disposition of assets | 0 | (11) | (2) |
Operating income | 584 | 99 | 17 |
Interest expense | (21) | (34) | (31) |
Non-operating pension and other postretirement benefit credits | 11 | 0 | 47 |
Other expense, net | (70) | (4) | (22) |
Income before income taxes | 504 | 61 | 11 |
Income tax provision | (195) | (51) | (58) |
Net income (loss) including noncontrolling interest | 309 | 10 | (47) |
Net income attributable to noncontrolling interest | (2) | 0 | 0 |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 307 | $ 10 | $ (47) |
Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: | |||
Basic (USD per share) | $ 3.87 | $ 0.12 | $ (0.51) |
Diluted (USD per share) | $ 3.83 | $ 0.12 | $ (0.51) |
Weighted-average number of Resolute Forest Products Inc. common shares outstanding: | |||
Basic (shares) | 79.5 | 86.1 | 91.4 |
Diluted (shares) | 80.3 | 86.4 | 91.4 |
Product | |||
Costs and expenses: | |||
Cost of sales, excluding depreciation and amortization, and distribution costs | $ 2,258 | $ 2,010 | $ 2,198 |
Distribution costs | |||
Costs and expenses: | |||
Cost of sales, excluding depreciation and amortization, and distribution costs | $ 356 | $ 344 | $ 389 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) including noncontrolling interest | $ 309 | $ 10 | $ (47) |
Unamortized prior service costs or credits | |||
Change in unamortized prior service costs or credits | (4) | (17) | (12) |
Income tax benefit | 0 | 0 | 0 |
Change in unamortized prior service costs or credits, net of tax | (4) | (17) | (12) |
Unamortized actuarial losses | |||
Change in unamortized actuarial losses | 336 | (156) | (273) |
Income tax (provision) benefit | (80) | 38 | 55 |
Change in unamortized actuarial losses, net of tax | 256 | (118) | (218) |
Foreign currency translation | 0 | 0 | 1 |
Other comprehensive income (loss), net of tax | 252 | (135) | (229) |
Comprehensive income (loss) including noncontrolling interest | 561 | (125) | (276) |
Comprehensive income attributable to noncontrolling interest | (2) | 0 | 0 |
Comprehensive income (loss) attributable to Resolute Forest Products Inc. | $ 559 | $ (125) | $ (276) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 112 | $ 113 |
Accounts receivable, net: | ||
Trade | 257 | 230 |
Other | 56 | 48 |
Inventories, net | 510 | 462 |
Other current assets | 54 | 47 |
Total current assets | 989 | 900 |
Fixed assets, net | 1,270 | 1,441 |
Amortizable intangible assets, net | 57 | 63 |
Goodwill | 31 | 31 |
Deferred income tax assets | 653 | 915 |
Operating lease right-of-use assets | 54 | 60 |
Other assets | 484 | 320 |
Total assets | 3,538 | 3,730 |
Current liabilities: | ||
Accounts payable and other | 421 | 369 |
Current portion of long-term debt | 2 | 2 |
Current portion of operating lease liabilities | 8 | 9 |
Total current liabilities | 431 | 380 |
Long-term debt, net of current portion | 300 | 559 |
Pension and other postretirement benefit obligations | 1,151 | 1,562 |
Operating lease liabilities, net of current portion | 51 | 55 |
Other liabilities | 88 | 92 |
Total liabilities | 2,021 | 2,648 |
Commitments and contingencies | ||
Resolute Forest Products Inc. shareholders’ equity: | ||
Common stock, $0.001 par value. 121.2 million shares issued and 76.8 million shares outstanding as of December 31, 2021; 120.6 million shares issued and 80.8 million shares outstanding as of December 31, 2020 | 0 | 0 |
Additional paid-in capital | 3,807 | 3,804 |
Deficit | (1,009) | (1,235) |
Accumulated other comprehensive loss | (1,062) | (1,314) |
Treasury stock at cost, 44.4 million shares and 39.8 million shares as of December 31, 2021 and 2020, respectively | (222) | (174) |
Total Resolute Forest Products Inc. shareholders’ equity | 1,514 | 1,081 |
Noncontrolling interest | 3 | 1 |
Total equity | 1,517 | 1,082 |
Total liabilities and equity | $ 3,538 | $ 3,730 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock issued (shares) | 121.2 | 120.6 |
Common stock outstanding (shares) | 76.8 | 80.8 |
Treasury stock (shares) | 44.4 | 39.8 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non- controlling Interests |
Balance at beginning of period at Dec. 31, 2018 | $ 1,535 | $ 0 | $ 3,802 | $ (1,198) | $ (950) | $ (120) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (47) | (47) | |||||
Purchases of treasury stock | (24) | (24) | |||||
Special dividend | 0 | ||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | (229) | (229) | |||||
Balance at end of period at Dec. 31, 2019 | 1,235 | 0 | 3,802 | (1,245) | (1,179) | (144) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 2 | 2 | |||||
Net income (loss) | 10 | 10 | |||||
Purchases of treasury stock | (30) | ||||||
Special dividend | 0 | ||||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | (135) | (135) | |||||
Balance at end of period at Dec. 31, 2020 | 1,082 | 0 | 3,804 | (1,235) | (1,314) | (174) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation, net of withholding taxes | 1 | 1 | |||||
Net income (loss) | 309 | 307 | 2 | ||||
Purchases of treasury stock | (48) | ||||||
Special dividend | (79) | 2 | (81) | ||||
Stock unit awards vested, net of shares forfeited for employee withholding taxes | 0 | ||||||
Other comprehensive income (loss), net of tax | 252 | 252 | |||||
Balance at end of period at Dec. 31, 2021 | $ 1,517 | $ 0 | $ 3,807 | $ (1,009) | $ (1,062) | $ (222) | $ 3 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Treasury stock acquired (shares) | 4.8 | ||
Common Stock | |||
Stock unit awards vested, net of shares forfeited for employee withholding taxes (shares) | 0.6 | 1 | 0.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) including noncontrolling interest | $ 309 | $ 10 | $ (47) |
Adjustments to reconcile net income (loss) including noncontrolling interest to net cash provided by operating activities: | |||
Share-based compensation | 8 | 5 | 4 |
Depreciation and amortization | 164 | 169 | 167 |
Closure costs, impairment and other related charges | 144 | 53 | 18 |
Inventory write-downs related to closures | 29 | 25 | 13 |
Deferred income taxes | 192 | 51 | 58 |
Net pension contributions and other postretirement benefit payments | (91) | (87) | (125) |
Net gain on disposition of assets | 0 | (11) | (2) |
Gain on translation of foreign currency denominated deferred income taxes | (9) | (15) | (42) |
Loss on translation of foreign currency denominated pension and other postretirement benefit obligations | 10 | 17 | 43 |
Net planned major maintenance (payments) amortization | (17) | 6 | 13 |
Changes in working capital: | |||
Accounts receivable | (31) | 80 | 88 |
Inventories | (77) | 44 | (27) |
Other current assets | 0 | (12) | 0 |
Accounts payable and other | 1 | 2 | (92) |
Other, net | 16 | (3) | 16 |
Net cash provided by operating activities | 648 | 334 | 85 |
Cash flows from investing activities: | |||
Cash invested in fixed assets | (112) | (78) | (113) |
Acquisition of business, net of cash acquired | 0 | (172) | 0 |
Disposition of assets | 1 | 14 | 3 |
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber | (154) | (81) | (59) |
Decrease in countervailing duty cash deposits on uncoated groundwood and supercalendered paper | 0 | 0 | 7 |
Proceeds from insurance settlement | 0 | 15 | 0 |
Other investing activities, net | 3 | 5 | 0 |
Net cash used in investing activities | (262) | (297) | (162) |
Cash flows from financing activities: | |||
Net (repayments) borrowings under revolving credit facilities | 0 | (71) | 71 |
Issuance of long-term debt | 300 | 0 | 0 |
Payment of special dividend | (79) | 0 | 0 |
Proceeds from long-term debt | 0 | 180 | 0 |
Repayments of debt | (558) | (1) | (271) |
Purchases of treasury stock | (48) | (30) | (24) |
Payments of financing fees | (8) | 0 | (4) |
Other financing activities, net | 1 | 0 | 0 |
Net cash (used in) provided by financing activities | (392) | 78 | (228) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (1) | 2 | 2 |
Net (decrease) increase in cash and cash equivalents, and restricted cash | (7) | 117 | (303) |
Cash and cash equivalents, and restricted cash: | |||
Beginning of year | 159 | 42 | 345 |
End of year | 152 | 159 | 42 |
Cash and cash equivalents, and restricted cash at year end: | |||
Cash and cash equivalents | 112 | 113 | 3 |
Restricted cash (included in “Other current assets”) | 0 | 4 | 0 |
Restricted cash (included in “Other assets”) | 40 | 42 | 39 |
Cash paid (received) during the year for: | |||
Interest, including capitalized interest | 20 | 32 | 26 |
Income taxes | $ 3 | $ (1) | $ (11) |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 and paper, which are marketed in over 60 countries. We own or operate some 40 facilities, as well as power generation assets, in the U.S. and Canada. Financial statements We have prepared our consolidated financial statements and the accompanying notes (or, the “ Consolidated Financial Statements ”) in accordance with U.S. generally accepted accounting principles (or, “ GAAP ”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Certain prior period amounts to our Consolidated Financial Statements and the accompanying notes have been reclassified to conform to the 2021 presentation. Consolidation Our Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its subsidiaries. All transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2021, with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% Equity method investments We account for our investments in companies where we have significant influence or joint control, using the equity method of accounting. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of estimates In preparing our Consolidated Financial Statements in accordance with GAAP, management is required to make accounting estimates based on assumptions, judgments, and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (or, “ OPEB ”) plans, the recoverability of deferred income tax assets, the recoverability of our long-lived assets and the fair value estimates of the assets acquired and liabilities assumed in a business combination, including goodwill. Estimates, assumptions, and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms, and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. Business combination We account for business combinations using the acquisition method as of the date control is transferred to us. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Transaction costs are recognized in “Other expense, net” in our Consolidated Statements of Operations when incurred. Cash and cash equivalents, and restricted cash Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits, money market, and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. Restricted cash consists primarily of deposits held as collateral for letters of credit. Accounts receivable Accounts receivable are recorded at cost, net of an allowance for expected credit losses. Accounts receivable are subject to impairment review that is based on the aging method. Impairment is calculated based on how long a receivable has been outstanding. The Company estimates expected credit losses by considering historical credit loss experience (based on days past due), current conditions, and forward-looking factors specific to the customers and the economic environment. We also consider if we are no longer doing business with the customer, and any other factors that may affect collectability from customers with significant outstanding balances. A receivable is written off when there is no reasonable expectation of recovering the contractual cash flows. Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. Assets held for sale Assets held for sale are carried in our Consolidated Balance Sheets at the lower of carrying value or fair value less costs to sell. We cease recording depreciation and amortization when assets are classified as held for sale. Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest in “Depreciation and amortization” in our Consolidated Statements of Operations over the related asset’s remaining useful life. Major maintenance costs Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” or “Other assets” in our Consolidated Balance Sheets, and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. Amortizable intangible assets Amortizable intangible assets are stated at acquisition cost less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. Impairment of long-lived assets The unit of accounting for impairment testing for fixed assets, net, amortizable intangible assets, net, and operating lease right-of-use assets (collectively, “ long-lived assets ”) is its group, which includes long-lived assets and liabilities directly related to those assets (herein defined as “ asset group ”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by initially comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation, and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. Long-lived assets to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. Goodwill Goodwill is not amortized and is tested for impairment every year at the end of November, or more frequently if events or changes in circumstances indicate a potential impairment loss. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively, and the magnitude of any such impact. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then a quantitative impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. The quantitative impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. We determine the fair value of a reporting unit by using the income method. Under this method, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Goodwill is assigned to the wood segment for the purposes of impairment testing. We elected the optional qualitative assessment for our 2021 annual goodwill impairment test. We concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount. As a result, no impairment was recognized. Leases We engage in short and long-term leases for building, machinery, chemical equipment, rail cars and office equipment. 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 12 months or less are not recorded in our Consolidated Balance Sheets, and are expensed over the term of the lease in our Consolidated Statements of Operations. Operating and finance lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. 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. Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income tax assets related to net operating loss, tax credit and other carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We account for global intangible low-taxed income (or, “ GILTI ”) as a period cost, if and when incurred, and apply the tax law ordering approach to assess the impact of GILTI on the realizability of net operating loss carryforwards. We have not provided for the additional U.S. and foreign income taxes that could become payable upon remittance of undistributed earnings of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. In our evaluation process, we give the most weight to historical income or losses. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. Pension and OPEB plans For each defined benefit pension and OPEB plan, a liability is recognized for a plan’s under-funded status, net of the fair value of plan assets, and an asset is recognized for a plan’s over-funded status, net of the plan’s obligations. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. We recognize net periodic benefit cost or credit as employees render the services necessary to earn the pension and OPEB. The service cost component of net periodic pension and OPEB cost or credit is recorded in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic pension and OPEB cost or credit (or, “ non-operating pension and OPEB credits ”) are reported separately outside any subtotal of operating income. Amounts we contribute to our defined contribution plans are expensed as incurred. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. We categorize assets and liabilities measured at fair value (other than those measured at net asset value, or “ NAV ,” per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. Share-based compensation We recognize the cost of our share-based compensation over the requisite service period using the straight-line attribution approach. For equity-based awards, the cost is based on the grant date fair value, or when the award has a service inception date preceding the grant date, the cost is based on the fair value at the end of each reporting period until the grant date. For liability-based awards, the cost is based on the fair value at the end of each reporting period. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. Our stock incentive awards (as defined in Note 20, “Share-Based Compensation”) may be subject to market, performance and/or service conditions. For equity-based awards, the fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (or, “ RSUs ”), deferred stock units (or, “ DSUs ”) and performance stock units (or, “ PSUs ”) is determined based on the market price of a share of our common stock on the grant date. Liability-based awards, consisting of RSUs, DSUs, and PSUs, are initially measured based on the market price of a share of our common stock on the grant date and remeasured at the end of each reporting period, until settlement. Certain PSUs have a market condition considered in the determination of the fair value of the award, such that the ultimate number of units that vest will be determined in part by total shareholder return relative to a group of peer companies. The fair value of those PSUs is determined using a Monte Carlo simulation model. We estimate forfeitures of stock incentive awards and performance adjustments for our PSUs based on historical experience and forecasts, and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. Revenue recognition Revenue arises from contracts with customers in which the sale of goods is the main performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied, which is when (point in time) or as (over time) control of the promised good or service is transferred to the customer. Revenue is measured at the amount to which we are expected to be entitled in exchange for transferring goods based on consideration specified in the contract with the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that we collect from the customer, are excluded from revenue. When a contract with a customer includes variable consideration such as special pricing agreements and other volume-based incentives, revenue is recognized at the most likely amount based on sales forecasts, for which it is probable that a revenue reversal will not subsequently occur. Revenue is recorded at a point in time when control over the goods transfers to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts with customers. Pulp, tissue, paper and wood products are delivered to our customers in the U.S. and Canada directly from our mills primarily by truck or rail. Pulp and paper products are delivered to our international customers primarily by ship. For sales where control transfers to the customer at the shipping point, revenue is recorded when the product leaves the facility, whereas for sales where control transfers at the destination, revenue is recorded when the product is delivered to the customer’s delivery site. Sales of our other products (green power produced from renewable sources and wood-related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Distribution costs Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Distribution costs” in our Consolidated Statements of Operations. Currency translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet items are reported in “Other expense, net” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.” Derivatives financial instruments We regularly enter into derivative financial instruments to manage our commodities price risk. These derivative instruments are not designated as hedging instruments and are recorded as either other assets or other liabilities at fair value in our Consolidated Balance Sheets. Changes in fair value are recognized in “Other expense, net” in our Consolidated Statements of Operations. Net income (loss) per share We calculate basic net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income (loss) by the basic weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the basic weighted-average number of outstanding common shares, as adjusted for dilutive potential common shares using the treasury-stock method. To calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders, securities that could have potentially dilutive effect on the weighted average number of outstanding common shares include all or a portion of outstanding stock options, RSUs, DSUs and PSUs. New accounting pronouncements adopted in 2021 ASU 2019-12 “Simplifying the Accounting for Income Taxes” Effective January 1, 2021, we adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” issued by the Financial Accounting Standards Board (or, “ FASB ”) in 2019, which removes the specific exceptions to the general principles in ASC 740, “Income Taxes,” and clarifies certain aspects of the existing guidance. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. ASU 2020-04 “Reference Rate Reform” Effective December 1, 2021, we adopted ASU 2020-04, “Reference Rate Reform,” amended in January 2021 by ASU 2021-01, “Reference Rate Reform - Scope,” issued by the FASB in March 2020, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (or, the “ LIBOR ”) or another reference rate expected to be discontinued because of reference rate reform. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. Accounting pronouncements not yet adopted as of December 31, 2021 ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which improves the accounting for acquired revenue contracts with customers in a business combination. This update is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption being permitted. This accounting guidance will have to be applied to future acquisitions. ASU 2021-10 “Government Assistance” In November 2021, the FASB issued ASU 2021-10, “Government Assistance”, which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy. This update is effective for annual periods beginning after December 15, 2021. We are currently evaluating this accounting guidance, which will have disclosure impact only. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Note 3. Business Acquisition 2020 Acquisition On February 1, 2020 (or, the “ Acquisition Date ”), we acquired from Conifex Timber Inc. all of the equity securities and membership interests in certain of its subsidiaries, the business of which consists mainly in the operation of three sawmills and related assets in Cross City (Florida) and in Glenwood and El Dorado (Arkansas) (or, the “ U.S. Sawmill Business ”). The U.S. Sawmill Business acquired produces construction-grade dimensional lumber and decking products from locally sourced southern yellow pine for distribution within the U.S. This acquisition diversified our lumber production, and increased our operating capacity in the U.S. South. The fair value of the consideration, paid in cash, for the U.S. Sawmill Business acquired was $173 million. The acquisition was structured as an asset purchase for tax purposes, but treated as a business combination for accounting purposes. The following table summarizes our final allocation of the purchase price to the fair values of assets acquired and liabilities assumed at the Acquisition Date: (In millions) Current assets (1) $ 19 Fixed assets 114 Amortizable intangible assets (2) 21 Operating lease right-of-use assets 2 Goodwill (3) 31 Total assets acquired and goodwill $ 187 Current liabilities $ 11 Long-term debt, net of current portion 2 Operating lease liabilities, net of current portion 1 Total liabilities assumed $ 14 Net assets acquired $ 173 Fair value of consideration transferred $ 173 (1) Includes cash and cash equivalents of $1 million. (2) Amortizable intangible assets identified relate to customer relationships, which have a weighted-average useful life of 10 years. The fair value of the customer relationships was determined using the income approach through an excess earnings analysis discounted at a rate of 12.6%. (3) Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to the U.S. Sawmill Business’s assembled workforce and synergies expected from combining our operations with the U.S. Sawmill Business. Goodwill is deductible for tax purposes. The allocation of the purchase price was based on management’s estimate of the fair values of the acquired identifiable assets and assumed liabilities using valuation techniques including income, cost and market approaches (Level 3). We utilized both the cost and market approaches to value fixed assets, which consider external transactions and other comparable transactions, estimated replacement and reproduction costs, and estimated useful lives and consideration for physical, functional and economic obsolescence. We utilized the income approach to value intangible assets, which considers the present value of the net cash flows expected to be generated by the intangible assets, and excluding cash flows related to contributory assets. From the Acquisition Date to the year ended December 31, 2020, our consolidated financial results included sales of $137 million and net income of $43 million attributable to the U.S. Sawmill Business. The U.S. Sawmill Business results of operations are included in the wood products segment, except for the El Dorado sawmill for the period it was idled (from the acquisition date until it was restarted in the fourth quarter of 2020). In connection with the acquisition of the U.S. Sawmill Business, we also recognized transaction costs of $3 million in “Other expense, net” in our Consolidated Statement of Operations for the year ended December 31, 2020. The following unaudited pro forma information for the years ended December 31, 2020 and 2019, represents our results of operations as if the acquisition of the U.S. Sawmill Business had occurred on January 1, 2019, excluding the results of operations of the El Dorado sawmill that had been idled since October 2019 and restarted in the fourth quarter of 2020. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. (Unaudited, in millions) 2020 2019 Sales $ 2,808 $ 3,021 Net income (loss) attributable to Resolute Forest Products Inc. $ 13 $ (70) |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Note 4. Other Expense, Net Other expense, net for the years ended December 31, 2021, 2020 and 2019, was comprised of the following: (In millions) 2021 2020 2019 Foreign exchange loss $ (2) $ (4) $ (12) Loss on commodity contracts (1) (85) (22) — Income from equity method investments 19 8 10 Insurance recovery (2) — 15 — Provision related to a litigation (3) (1) — (23) Miscellaneous (expense) income (1) (1) 3 $ (70) $ (4) $ (22) (1) Principally related to lumber futures contracts; none of these contracts were outstanding as of December 31, 2021. (2) We recorded $15 million as other income for the year ended December 31, 2020, from the settlement of an insurance claim in connection with our acquisition of Atlas Paper Holdings, Inc. (or, “ Atlas ”) in 2015. (3) We accrued C$30 million of legal indemnity and interest costs for the year ended December 31, 2019, in connection with the Quebec Superior Court decision of the fair value of the shares of former dissenting shareholders of Fibrek Inc. (or, “ Fibrek ”) upon acquisition in 2012. See Note 18, “Commitments and Contingencies - Fibrek acquisition,” for more information. |
Closure Costs, Impairment and O
Closure Costs, Impairment and Other Related Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Closure Costs, Impairment and Other Related Charges | Note 5. Closure Costs, Impairment and Other Related Charges Closure costs, impairment and other related charges for the year ended December 31, 2021, were comprised of the following: (In millions) Impairment of Assets Severance and Other Costs Total Pulp and Paper mill at Calhoun (Tennessee) $ 124 $ 18 $ 142 Other — 2 2 $ 124 $ 20 $ 144 On December 16, 2021, the Company announced the indefinite idling of pulp and paper operations at our Calhoun mill given the continuing accumulation of significant financial losses, even with strong market conditions for both the pulp and uncoated freesheet paper it manufactured. Tissue remains in operation. Following the announcement, new long-lived asset groups were identified at that site, which were tested for impairment as the indefinite idling of pulp and paper operations was considered an impairment indicator for these assets. As a result, we recognized an impairment charge of $124 million in relation to the pulp and paper long-lived asset group as these assets, consisting of fixed assets, will not generate future cash flows. The impairment charge was calculated as being the difference between the net carrying value of the fixed assets and their fair value. The fair value of the fixed assets was estimated using the market approach, by reference to estimated selling prices for similar assets, less costs to sell. This fair value measurement is considered a Level 3 measurement due to the significance of their unobservable inputs. We also recognized additional provisions for severance and other costs of $13 million as well as write-off of other assets of $5 million. In 2022, we expect to incur additional closure costs of approximately $32 million, mainly related to decommissioning. The pulp and paper operations ceased at the beginning of 2022. An impairment test was also performed for the other asset groups at Calhoun. As the undiscounted cash flows exceeded the carrying value of the respective asset groups by a substantial margin, no impairment was recognized. The remaining useful life of the assets were reassessed and remained unchanged as the indefinite idling of the pulp and paper operations has no impact on the economic life of our other assets. Closure costs, impairment and other related charges for the year ended December 31, 2020, were comprised of the following: (In millions) Accelerated Depreciation Severance and Other Costs Total Paper mill at Amos (Quebec) $ 12 $ 5 $ 17 Paper mill at Baie-Comeau (Quebec) 26 12 38 Other — (2) (2) $ 38 $ 15 $ 53 Due to the overall decrease in demand for newsprint, accelerated by the economic context surrounding the COVID-19 pandemic, the Amos and Baie-Comeau paper mills had been temporarily idled since April 2020. As a result, we had reassessed the remaining useful lives of the fixed assets and recognized an accelerated depreciation charge of $38 million. We also recognized additional provisions for severance and other costs of $17 million, of which $8 million was paid in 2021. In March 2021, the Company announced their indefinite idling. Closure costs, impairment and other related charges for the year ended December 31, 2019, were comprised of the following: (In millions) Accelerated Depreciation Severance and Other Costs Total Indefinite idling Paper mill at Augusta (Georgia) (1) $ 8 $ 10 $ 18 (1) A total amount of $4 million of severance and other costs was paid prior to 2021. |
Net Gain on Disposition of Asse
Net Gain on Disposition of Assets | 12 Months Ended |
Dec. 31, 2021 | |
Assets Held for Sale, Net [Abstract] | |
Net Gain on Disposition of Assets | Note 6. Net Gain on Disposition of Assets During 2020, we recorded a net gain on disposition of assets of $11 million, which included: the sale of the Augusta paper mill for total cash consideration of $10 million, resulting in a net gain of $9 million; and the sale of the Thorold (Ontario) paper mill for total cash consideration of $4 million, resulting in a net gain of $2 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 7. Accumulated Other Comprehensive Loss The change in our accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) Unamortized Prior Service Credits (Costs) Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2018 $ 28 $ (971) $ (7) $ (950) Other comprehensive (loss) income before reclassifications — (240) 1 (239) Amounts reclassified from accumulated other comprehensive loss (1) (12) 22 — 10 Net current period other comprehensive (loss) income (12) (218) 1 (229) Balance as of December 31, 2019 16 (1,189) (6) (1,179) Other comprehensive loss before reclassifications — (185) — (185) Amounts reclassified from accumulated other comprehensive loss (1) (17) 67 — 50 Net current period other comprehensive loss (17) (118) — (135) Balance as of December 31, 2020 (1) (1,307) (6) (1,314) Other comprehensive income before reclassifications — 201 — 201 Amounts reclassified from accumulated other comprehensive loss (1) (4) 55 — 51 Net current period other comprehensive (loss) income (4) 256 — 252 Balance as of December 31, 2021 $ (5) $ (1,051) $ (6) $ (1,062) (1) See the table below for details about these reclassifications. The reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019, were comprised of the following: (In millions) 2021 2020 2019 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs or Credits Amortization of prior service costs or credits $ (3) $ (4) $ (11) Non-operating pension and other postretirement benefit credits (1) Curtailment gain (1) (13) (1) Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above — — — Income tax provision Net of tax (4) (17) (12) Unamortized Actuarial Losses Amortization of actuarial losses 72 57 28 Non-operating pension and other postretirement benefit credits (1) Settlement loss — 28 1 Non-operating pension and other postretirement benefit credits (1) Other items — 3 — Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above (17) (21) (7) Income tax provision Net of tax 55 67 22 Total Reclassifications $ 51 $ 50 $ 10 (1) These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 16, “Pension and Other Postretirement Benefit Plans.” |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 8. Net Income (Loss) Per Share The reconciliation of the basic and diluted net income (loss) per share for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 307 $ 10 $ (47) Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 79.5 86.1 91.4 Dilutive impact of nonvested stock unit awards and stock options 0.8 0.3 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 80.3 86.4 91.4 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 3.87 $ 0.12 $ (0.51) Diluted $ 3.83 $ 0.12 $ (0.51) The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “ stock unit awards ”) that were excluded from the calculation of diluted net income (loss) per share, as their impact would have been antidilutive, for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) 2021 2020 2019 Stock options 0.4 0.9 1.0 Stock unit awards — 0.6 2.1 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 9. Inventories, Net Inventories, net as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Raw materials $ 159 $ 132 Work in process 57 46 Finished goods 148 120 Mill stores and other supplies 146 164 $ 510 $ 462 In 2021, we recorded charges o f $29 million for write-downs of mill stores and other supplies principally, due to the announcement on December 16, 2021, of the indefinite idling of pulp and paper operations at the Calhoun mill. I n 2020, we recorded charges of $25 million for write-downs of mill stores and other supplies due to the temporary idling of the Amos and Baie-Comeau paper mills. The mills were indefinitely idled in March 2021. In 2019, we recorded charges of $13 million for write-downs of mill stores and other supplies due to the indefinite idling of the Augusta paper mill. These charges were included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Note 10. Fixed Assets, Net Fixed assets, net as of December 31, 2021 and 2020, were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2021 2020 Land and land improvements 5 – 20 $ 51 $ 52 Buildings 10 – 40 334 328 Machinery and equipment (1) 2 – 25 2,127 2,128 Hydroelectric power plants 10 – 40 301 301 Timberlands, and timberlands improvements and roads 10 – 20 142 136 Construction in progress 67 100 3,022 3,045 Less: Accumulated depreciation (1,752) (1,604) $ 1,270 $ 1,441 (1) Internal-use software included in fixed assets, net as of December 31, 2021 and 2020, was as follows: (In millions) 2021 2020 Machinery and equipment $ 128 $ 124 Less: Accumulated depreciation (104) (90) $ 24 $ 34 Depreciation expense related to internal-use software is estimated to be $11 million in 2022, $6 million in 2023, $3 million in 2024, $2 million in 2025 and $2 million in 2026. We recorded an impairment charge of $124 million for the year ended December 31, 2021, as a result of the announcement on December 16, 2021, of the indefinite idling of pulp and paper operations at the Calhoun mill. We also recorded accelerated depreciation of $38 million for the Amos and Baie-Comeau paper mills for the year ended December 31, 2020. See Note 5, “Closure Costs, Impairment and Other Related Charges” for more information. Depreciation expense related to fixed assets was $158 million, $163 million and $164 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Amortizable Intangible Assets,
Amortizable Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Amortizable Intangible Assets, Net | Note 11. Amortizable Intangible Assets, Net Amortizable intangible assets, net as of December 31, 2021 and 2020, were comprised of the following: 2021 2020 (Dollars in millions) Estimated Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 10 $ 9 $ 19 $ 9 $ 10 Energy contracts 15 – 25 52 23 29 52 21 31 Customer relationships (2) 10 21 4 17 23 3 20 Other 2 — 2 2 — 2 $ 94 $ 37 $ 57 $ 96 $ 33 $ 63 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. (2) In connection with our acquisition of the U.S. Sawmill Business, we identified amortizable intangible assets primarily related to customer relationships. See Note 3, “Business Acquisition” for additional information. Amortization expense related to amortizable intangible assets was $6 million, $6 million and $3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization expense related to amortizable intangible assets is estimated to be $5 million per year for 2022, 2023, 2024 and 2025, and $4 million for 2026. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Note 12. Operating Leases We have operating leases for buildings, machinery, chemical equipment, rail cars, and office equipment with remaining terms of less than one year to 21 years. These leases may include renewal options for up to 15 years. The components of lease expense for the years ended December 31, 2021, 2020 and 2019 were as follows: (In millions) 2021 2020 2019 Operating lease cost $ 13 $ 13 $ 13 Variable lease cost (1) $ 20 $ 20 $ 21 (1) Variable lease cost is determined by the consumption of the underlying asset. Supplemental information related to operating leases was as follows: December 31, December 31, Weighted-average remaining operating lease term (in years) 11.8 10.8 Weighted-average operating lease discount rate 3.8 % 4.6 % Years ended December 31, (In millions) 2021 2020 2019 Operating cash flow payments for operating lease liabilities $ 11 $ 12 $ 11 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 3 $ 8 $ 4 The maturities of operating lease liabilities as of December 31, 2021, were as follows: (In millions) Operating Leases 2022 $ 10 2023 8 2024 7 2025 7 2026 6 2027 and thereafter 36 Total lease payments 74 Less: imputed interest 15 Total operating lease liabilities $ 59 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 13. Other Assets Other assets as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Countervailing duty cash deposits on softwood lumber (1) $ 339 $ 194 Anti-dumping duty cash deposits on softwood lumber (1) 58 49 Equity method investments 22 14 Restricted cash 40 42 Other 25 21 $ 484 $ 320 (1) See Note 18, “Commitments and Contingencies” for more information. |
Accounts Payable and Other
Accounts Payable and Other | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other | Note 14. Accounts Payable and Other Accounts payable and other as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Trade accounts payable $ 262 $ 251 Accrued compensation 89 76 Accrued interest 6 4 Pension and other postretirement benefit obligations 14 14 Accrued provision related to Fibrek litigation (Note 18) 21 — Income and other taxes payable 4 5 Other 25 19 $ 421 $ 369 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 15. Long-Term Debt Overview Long-term debt, including current portion, as of December 31, 2021 and 2020, was comprised of the following: (In millions) 2021 2020 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ — Deferred financing costs (5) — Total 4.875% senior unsecured notes due 2026 295 — 5.875% senior unsecured notes due 2023: Principal amount — 375 Deferred financing costs — (2) Unamortized discount — (1) Total 5.875% senior unsecured notes due 2023 — 372 Senior secured credit facility - Term loans due 2030 — 180 Finance lease obligations 6 9 Other debt 1 — Total debt 302 561 Less: Current portion of finance lease obligations and other debt (2) (2) Long-term debt, net of current portion $ 300 $ 559 Debt instruments Senior Unsecured Notes 2026 Notes On February 2, 2021, we issued $300 million aggregate principal amount of 4.875% senior unsecured notes due 2026 (or, the “ 2026 Notes ”) at an issue price of 100%, pursuant to an indenture as of that date (or, the “ Indenture ”). Upon their issuance, the 2026 Notes were recorded at their fair value of $300 million. Interest on the 2026 Notes is payable semi-annually on March 1 and September 1 of each year, beginning on September 1, 2021, until their maturity date of March 1, 2026. In connection with the issuance of the 2026 Notes, we incurred financing costs of $6 million, which were deferred and recorded as a reduction of the principal. Deferred financing costs are amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes. The 2026 Notes are guaranteed by current and future wholly-owned U.S. subsidiaries that guarantee the ABL Credit Facility and the Senior Secured Credit Facility (each, as defined and discussed below). The notes are unsecured and effectively junior to indebtedness under each of the ABL Credit Facility, the Senior Secured Credit Facility, the Loan Facility and future secured indebtedness to the extent of the value of the collateral that secures such indebtedness. In addition, the notes are structurally subordinated to all existing and future indebtedness (including the Loan Facility) and other liabilities of our subsidiaries that do not guarantee the notes, including all our non-U.S. subsidiaries. The terms of the Indenture impose certain restrictions, subject to a number of exceptions and qualifications, including limits on our ability to: incur additional indebtedness or issue certain preferred shares; make dividend payments on or make other distributions in respect of our capital stock or make other restricted payments; make certain investments; sell certain assets; create liens on assets; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and enter into certain transactions with our affiliates. In the event of specified change of control triggering events, we shall be required to offer to repurchase the 2026 Notes at 101% of the principal amount, plus accrued and unpaid interest. On or after March 1, 2023, we may redeem the notes at our option, in whole at any time or in part from time to time, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning March 1) Redemption Price 2023 102.438 % 2024 101.219 % 2025 and thereafter 100.000 % The fair value of the 2026 Notes (Level 1) was $306 million as of December 31, 2021. 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 was 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 was payable semi-annually beginning November 15, 2013. 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 2023 notes. Deferred financing costs were amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the 2023 notes. On January 3, 2019, 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. 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 year ended December 31, 2019. On February 2, 2021, we placed the net proceeds from the issuance of the 2026 Notes together with additional cash, into trust for the benefit of the holders of the 2023 Notes to redeem all of the outstanding $375 million aggregate principal amount of our 2023 Notes (or, the “ Redemption ”) at a price of 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The Redemption occurred on February 18, 2021. 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 year ended December 31, 2021. The fair value of the 2023 Notes (Level 1) was $375 million as of December 31, 2020. Senior Secured Credit Facility On September 7, 2016, we entered into a senior secured credit facility for up to $185 million. This senior secured credit facility provided a term loan of $46 million with a maturity date of September 7, 2025, and a revolving credit facility of up to $139 million with a maturity date of September 7, 2022. On October 28, 2019, we entered into an amended and restated senior secured credit facility for up to $360 million, replacing our existing $185 million senior secured credit facility. The senior secured credit facility provided a term loan facility of up to $180 million with a delayed draw period of up to three years, and the choice of maturities of six On April 19, 2021 (or, the “ Effective Date ”), we entered into a first amendment to the amended and restated senior secured credit facility (or, the “ Senior Secured Credit Facility ”). The amount available under the Senior Secured Credit Facility remains unchanged for up to $360 million and is comprised of a term loan facility of up to $180 million with a delayed draw period of up to three years and the choice of maturities of six Term Loan Facility ”); and a six-year revolving credit facility of up to $180 million (or, the “ Revolving Credit Facility ”). On the Effective Date, we repaid our $180 million term loans under the amended and restated senior secured credit facility with a combination of proceeds of borrowings under the Revolving Credit Facility and cash on hand. The amendment then reinstated the full amount of the Term Loan Facility. There is also an uncommitted option to increase the Senior Secured Credit Facility by up to an additional $360 million, subject to certain terms and conditions. The obligations under the Senior Secured Credit Facility are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority lien on assets of our Calhoun facility. Interest rates under the Senior Secured Credit Facility are based, at the Company’s election, on either a floating rate based on the LIBOR, or a base rate, in each case plus a spread over the index. In addition, loans under the Term Loan Facility can, at the Company’s election, bear interest at a fixed rate based on the administrative agent’s cost of funds plus a spread. The Senior Secured Credit Facility also contains hardwired benchmark replacement provisions for future transition of LIBOR. The applicable spread over the index fluctuates quarterly based upon a) the Company’s capitalization ratio and b) in the case of loans under the Term Loan Facility, the maturity date of such loan. For loans under the Term Loan Facility, the applicable spread ranges from 0.5% to 1.4% for base rate loans, from 1.5% to 2.4% for LIBOR loans, and from 1.7% to 2.1% for fixed rate loans. For loans under the Revolving Credit Facility, the applicable spread ranges from 0.5% to 1.0% for base rate loans, and from 1.5% to 2.0% for LIBOR loans. The Senior Secured Credit Facility was issued by a syndicate of lenders within the farm credit system and is eligible for patronage refunds. Patronage refunds are distributions of profits from lenders in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage distributions, which are made in either cash or stock, are received in the year after they were earned. Future refunds are dependent on future farm credit lender profits, made at the discretion of each farm credit lender. In addition to paying interest on outstanding principal under the Senior Secured Credit Facility, we are required to pay a fee in respect of unutilized commitments based on the average daily utilization for the prior fiscal quarter ranging from 0.275% to 0.325% per annum under the Revolving Credit Facility and ranging from 0.25% to 0.35% for the Term Loan Facility during the delay draw period. The outstanding principal balance of each term loan made under the Term Loan Facility will be subject to annual amortization payments of 5% of the initial principal amount of such term loan commencing on the fifth anniversary of each term loan’s draw date with the balance due at maturity. Principal amounts outstanding under the Revolving Credit Facility will be due and payable on April 19, 2027. Loans under the Revolving Credit Facility and the Term Loan Facility may be prepaid from time to time at our discretion without premium or penalty but subject to breakage costs, if any, in the case of LIBOR rate loans and fixed rate loans. Amounts repaid on the Term Loan Facility may not be subsequently re-borrowed. Principal amounts under the Revolving Credit Facility may be drawn, repaid, and redrawn until maturity. The Company is required to make a prepayment of 100% of the net cash proceeds in excess of $25 million in aggregate in any fiscal year from the sale or loss of any collateral, subject to certain exceptions and certain reinvestment rights. Pursuant to the Senior Secured Credit Facility, we are also required to maintain (i) a capitalization ratio not greater than 45% at all times; (ii) a collateral coverage ratio of not less than 1.8:1.0; and (iii) a springing consolidated fixed charge coverage ratio of 1.0:1.0, which is triggered only when adjusted availability under the ABL Credit Facility falls below the greater of $45 million or 10% of the maximum available borrowing amount under the ABL Credit Facility for two consecutive business days. The consolidated fixed charge coverage ratio is the ratio of (a) consolidated EBITDA less certain capital expenditures and less cash taxes paid, to (b) consolidated fixed charges, as determined under the Senior Secured Credit Facility. In addition, the Senior Secured Credit Facility contains certain covenants applicable to the Company and its subsidiaries, including, among others: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness; (iii) restrictions on the existence or incurrence of liens; (iv) restrictions on the Company and certain of its subsidiaries making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations, and asset dispositions; (vii) restrictions on transactions with affiliates; and (viii) restrictions on modifications to material indebtedness. The Senior Secured Credit Facility includes customary representations, warranties and events of default subject to customary grace periods and notice requirements. As of December 31, 2021, we had $180 million of availability under the Term Loan Facility and $180 million of availability under the Revolving Credit Facility, which were undrawn. As of December 31, 2020, we had $180 million of availability under the Revolving Credit Facility, which was undrawn. The fair value of the Term Loan Facility (Level 2) approximated its carrying value as of December 31, 2020, and was bearing interest at LIBOR plus a spread of 2.13%. ABL Credit Facility On May 14, 2019, we entered into an amendment to the five-year credit agreement dated May 22, 2015, for a senior secured asset-based revolving credit facility (or, “ ABL Credit Facility ” ) . The amended credit agreement provided for an extension of the maturity date to May 14, 2024, with an aggregate lender commitment of up to $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. Effective January 21, 2021, we reduced the commitment under the Canadian tranche of our senior secured asset-based revolving credit facility by $50 million, to $250 million, resulting in an aggregate commitment of $450 million, subject to borrowing base limitations. On December 15, 2021, we entered into a fourth amendment to the credit agreement dated May 22, 2015, which reset the facility and extended the maturity date to December 15, 2026. The agreement also contains hardwired benchmark replacement provisions for future transition of LIBOR. After the effective date, the ABL Credit Facility agreement may be amended based on agreed upon Environmental, Social and Governance (or, “ ESG ”) key performance indicators (or, “ KPIs ”) as described in the credit agreement. The ESG amendment, which requires the consent of each Lender, may provide for an increase or decrease of up to 0.05% on the applicable margin under the facility, or no adjustment, as well as an increase or decrease of up to 0.01%, or no adjustment, to the applicable unutilized commitment fee, subject to the Company’s performance on such KPIs. 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. 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 “ agent ”). The credit agreement includes reserves that reduce the borrowing base, including a reserve commencing December 31, 2025, for the outstanding principal amount due under the 2026 Notes. 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, at the Borrower’s option, U.S. base rate, Canadian base rate, LIBOR or Canadian Dollar Offered Rate (or, “ CDOR ”), in each case plus an applicable margin. The applicable margin is between 0.00% and 0.50% with respect to the base rate loans and between 1.00% and 1.50% with respect to LIBOR loans and CDOR loans, in each case, adjusted quarterly based on the average availability under the credit facility and whether the Company is in compliance with a leverage ratio of 1.75:1.00. 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 0.25% per annum, 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 adjusted availability under the facility falls below the greater of $40 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 December 31, 2021, we had $307 million of availability under the ABL Credit Facility, which was undrawn except for $73 million of ordinary course letters of credit outstanding, of which $53 million are to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. As of December 31, 2020, we had $270 million of availability under the ABL Credit Facility, which was undrawn except for $56 million of ordinary course letters of credit outstanding. Loan Facility On November 4, 2020, our Canadian subsidiary, Resolute FP Canada Inc., entered into a secured delayed draw term loan facility (or, the “ Loan Facility ”) with Investissement Québec as lender for up to C$220 million ($174 million as of December 31, 2021), subject to borrowing base availability based on 75% of the countervailing and anti-dumping duty deposits (or, the “ Duties ”) imposed by the U.S. Department of Commerce and collected by Customs and Border Protection Agency (or, “ U.S. Customs ”) on U.S. imports of applicable softwood lumber products produced at sawmills of the Borrower and its affiliates located in the province of Quebec, Canada from April 28, 2017 to December 31, 2022. The outstanding principal will be repaid in consecutive monthly installments over a period of eight years, after an interest only period of two years from the date of the first draw. Outstanding amounts may be prepaid, partially or fully, at any time at our discretion, without premium or penalty, but subject to payment of accrued and unpaid interest. We are required to make a prepayment equal to any amounts reimbursed by U.S. Customs on account of the U.S. imports of certain softwood lumber products produced at our sawmills located in the province of Quebec, Canada (or, the “ Quebec Prepayments ”). The obligations under the Loan Facility are secured by a first priority security interest and a control agreement on certain of our bank accounts identified to receive any Quebec Prepayments. In addition, we have agreed to transfer to the designated bank accounts any amounts constituting Quebec Prepayments, and may not grant any other security interest on such bank accounts. The Loan Facility is required to be used exclusively to finance certain of our activities and obligations in the province of Quebec, Canada, and may not be used to pay or reimburse any Duties. The borrowings under the Loan Facility bear interest at a floating rate equal to 1.45% above the one-month Canadian banker’s acceptance rate. Interest will be payable on a monthly basis. The Loan Facility provides for a maximum of ten draws and the fulfillment of certain conditions upon each draw. We are required to pay a fee of 0.5% of the amounts drawn at the time of each draw. The Loan Facility contains certain covenants, including, among others, a requirement that we do not move a substantial part of its assets outside the province of Quebec. The Lender reserves the right to terminate the Loan Facility in the event that we have not made any draw before June 30, 2023, subject to certain conditions. The Lender reserves the right to accelerate any outstanding amounts within 60 days of receiving notification of certain change of control events affecting us, if the Lender deems the transaction not to be in its best interest, acting reasonably. As of December 31, 2021, we had C$220 million (approximately $174 million) of availability under the Loan Facility, which was undrawn. As of December 31, 2020, we had C$165 million (approximately $130 million) of availability under the Loan Facility, which was undrawn. Finance lease obligations We have finance lease obligations for machinery with maturity dates up to June 2025, and 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. Debt maturities The aggregate maturities of long-term debt as of December 31, 2021, were as follows: (In millions) Long-term debt 2022 $ 2 2023 1 2024 1 2025 1 2026 296 2027 1 $ 302 Assets pledged as collateral The carrying value of assets pledged as collateral for our total debt obligations was $1,194 million as of December 31, 2021. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Note 16. Pension and Other Postretirement Benefit Plans We have a number of defined contribution plans covering a portion of our U.S. and Canadian employees. Under the U.S. qualified defined contribution plan, employees are allowed to make contributions that we match, and most employees also receive an automatic company contribution, regardless of the employee’s contribution. The amount of the automatic company contribution, in most instances, is a percentage of the employee’s pay, determined based on age and years of service. The Canadian registered defined contribution plans provide for mandatory contributions by employees and by us, as well as opportunities for employees to make additional optional contributions and receive, in most cases, matching contributions on those optional amounts. Our expense for the defined contribution plans totaled $18 million in 2021, $17 million in 2020 and $18 million in 2019. We also have multiple contributory and non-contributory defined benefit pension plans covering a portion of our U.S. and Canadian employees. Benefits are based on years of service and, depending on the plan, average compensation earned by employees either during their last years of employment or over their careers. Our plan assets and cash contributions to the plans have been sufficient to provide pension benefits to participants and meet the funding requirements of the Employee Retirement Income Security Act of 1974 in the U.S. as well as applicable legislation in Canada. We also sponsor a number of OPEB plans (e.g., health care and life insurance plans) for retirees at certain locations. Certain of the above plans are covered under collective bargaining agreements. In December 2020, the pension plan of the Thorold paper mill, which was indefinitely idled in 2017 and sold in 2020, was wound-up following the approval of the pension benefits distribution and assets liquidation. This resulted in the conversion of the buy-in annuity contract to a buy-out contract, and the recognition of a settlement loss of $28 million in “Non-operating pension and other postretirement benefit credits” in our Consolidated Statements of Operations for the year ended December 31, 2020, and the reduction of both pension plan assets and pension benefit obligations by $98 million as of December 31, 2020. The following tables include both our foreign (Canada) and domestic plans. The assumptions used to measure the obligations of each of our foreign and domestic plans are not significantly different from each other, with the exception of the health care trend rates, which are presented below. The changes in our pension and OPEB benefit obligations and plan assets for the years ended December 31, 2021 and 2020, and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2021 2020 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,246 $ 5,188 $ 136 $ 147 Service cost 16 14 1 1 Interest cost 133 151 3 4 Actuarial (gain) loss (168) 265 (7) (6) Participant contributions 6 7 2 2 Special termination benefits — 3 — — Curtailments (7) (2) (1) (1) Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 31 79 1 2 Benefit obligations as of end of year 4,897 5,246 122 136 Change in plan assets: Fair value of plan assets as of beginning of year 3,806 3,862 — — Actual return on plan assets 296 241 — — Employer contributions 86 91 11 11 Participant contributions 6 7 2 2 Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 22 64 — — Fair value of plan assets as of end of year 3,856 3,806 — — Funded status as of end of year $ (1,041) $ (1,440) $ (122) $ (136) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 2 $ — $ — $ — Accounts payable and other (3) (3) (11) (11) Pension and OPEB obligations (1,040) (1,437) (111) (125) Net obligations recognized $ (1,041) $ (1,440) $ (122) $ (136) The total benefit obligations and the total fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $4,612 million and $3,570 million, respectively, as of December 31, 2021, and were $5,067 million and $3,627 million, respectively, as of December 31, 2020. The total accumulated benefit obligations and the total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $4,588 million and $3,570 million, respectively, as of December 31, 2021, and were $5,034 million and $3,627 million, respectively, as of December 31, 2020. The total accumulated benefit obligations for all pension plans were $4,873 million and $5,212 million as of December 31, 2021 and 2020, respectively. The actuarial gains and losses impacting the benefit obligations for our pension and OPEB plans in 2021 are primarily due to changes in the economic environment, which resulted in an increase to the discount rates selected for the plans as of December 31, 2021, compared to December 31, 2020. The actuarial gains and losses impacting the benefit obligations for our pension and OPEB plans in 2020 were primarily due to changes in the economic environment, which resulted in a decrease to the discount rates selected for the plans as of December 31, 2020, compared to December 31, 2019. Components of net periodic benefit cost (credit) The components of net periodic benefit cost (credit) relating to our pension and OPEB plans for the years ended December 31, 2021, 2020 and 2019, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2019 2021 2020 2019 Interest cost $ 133 $ 151 $ 181 $ 3 $ 4 $ 6 Expected return on plan assets (215) (226) (251) — — — Amortization of prior service costs (credits) 1 — — (4) (4) (11) Amortization of actuarial losses (gains) 78 63 34 (6) (6) (6) Non-operating credits (3) (12) (36) (7) (6) (11) Service cost 16 14 15 1 1 — Net periodic benefit costs (credits) before special events 13 2 (21) (6) (5) (11) Curtailments, settlements and other (gains) losses (1) (1) 32 — — (14) — $ 12 $ 34 $ (21) $ (6) $ (19) $ (11) (1) Includes a settlement loss of $28 million for the year ended December 31, 2020, resulting from the wind-up of the Thorold pension plan . The prior service costs (credits) and the actuarial gains and losses are amortized to “Non-operating pension and other postretirement benefit credits” in our Consolidated Statements of Operations, over the expected average remaining service lifetime or the average future lifetime, as applicable, of the respective plans. Assumptions used to determine benefit obligations and net periodic benefit costs (credits) The weighted-average assumptions used to determine the benefit obligations at the measurement dates (each December 31) and the net periodic benefit costs (credits) for the years ended December 31, 2021, 2020 and 2019, were as follows: Pension Plans OPEB Plans 2021 2020 2019 2021 2020 2019 Benefit obligations: Discount rate 2.8 % 2.5 % 3.0 % 2.9 % 2.5 % 3.1 % Rate of compensation increase 2.1 % 2.1 % 2.1 % Net periodic benefit cost (credit): Discount rate 2.5 % 3.0 % 3.8 % 2.5 % 3.1 % 3.9 % Expected return on assets 5.7 % 6.0 % 6.5 % Rate of compensation increase 2.1 % 2.1 % 2.1 % The discount rate for our domestic and foreign plans was determined with a model that develops a hypothetical high-quality bond portfolio, where the bonds are theoretically purchased to settle the expected benefit payments of the plans. The discount rate reflects the single rate that produces the same discounted values as the value of the theoretical bond portfolio. In determining the expected return on assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. In determining the rate of compensation increase, we reviewed historical salary increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with our employees, and the outlook for our industry. In determining the life expectancy rate of our domestic and foreign plans, we used the most recent actuarially-determined mortality tables and improvement scales. For the foreign plans, the mortality tables were adjusted with the result of our historical mortality experience study. The rates used are consistent with our future expectations of life expectancy for the employees who participate in our pension and OPEB plans. The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2021 and 2020, were as follows: 2021 2020 Domestic Plan Foreign Plans Domestic Plan Foreign Plans Health care cost trend rate assumed for next year 7.0 % 4.8 % 7.2 % 4.8 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2033 2033 2033 2033 For the health care cost trend rates, we considered historical trends for these costs, actual experience of the plans, as well as future expectations. Fair value of plan assets The fair value of plan assets held by our pension plans as of December 31, 2021, was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 646 $ 646 $ — $ — Non-U.S. companies 872 872 — — Debt securities: Corporate and government securities 1,197 29 1,168 — Asset-backed securities 87 — 87 — Cash and cash equivalents 117 117 — — Certain insurance contracts (1) 314 — — 314 Other plan assets, net (4) — (4) — Total before investments measured at NAV $ 3,229 $ 1,664 $ 1,251 $ 314 Investments measured at NAV 627 $ 3,856 (1) The Level 3 plan assets were purchased during the year ended December 31, 2021. There were no Level 3 plan asset balances during the year ended December 31, 2020. The fair value of plan assets held by our pension plans as of December 31, 2020, was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 737 $ 737 $ — $ — Non-U.S. companies 1,197 1,197 — — Debt securities: Corporate and government securities 1,086 36 1,050 — Asset-backed securities 148 — 148 — Cash and cash equivalents 179 179 — — Other plan assets, net 9 — 9 — Total before investments measured at NAV $ 3,356 $ 2,149 $ 1,207 $ — Investments measured at NAV 450 $ 3,806 Equity securities include large-cap, mid-cap and small-cap publicly-traded companies mainly located in the U.S., Canada and other developed and emerging countries, as well as commingled equity funds invested in the same types of securities. The fair value of the equity securities is determined based on quoted market prices (Level 1). Debt securities include corporate bonds of U.S. and Canadian companies from diversified industries, bonds and Treasuries issued by the U.S. government and the Canadian federal and provincial governments, asset-backed securities and commingled fixed income funds invested in these same types of securities. The fair value of the debt securities is determined based on quoted market prices (Level 1), and market-corroborated inputs such as matrix prices, yield curves and indices (Level 2). Certain insurance contracts include group contracts that have been purchased to cover a portion of the plan members. The fair value of annuity buy-in contracts changes based on fluctuations in the obligation associated with the covered plan members (Level 3). Other plan assets, net, include accrued interest and dividends, and amounts receivable or payable for unsettled security transactions. The fair value of accrued interest and dividends is determined based on market-corroborated inputs such as declared dividends and stated interest rates (Level 2). The fair value of receivables and payables for unsettled security transactions is determined based on market-corroborated inputs such as the trade date fair value of the security (Level 2). Investments measured at NAV are excluded from the fair value hierarchy tables. These investments are commingled funds, composed of either debt securities, equity securities or real estate investments, where the corresponding NAV per share is equal to the total net assets divided by the total number of shares. Long-term strategy and objective Our investment strategy and objective is to maximize the long-term rate of return on our plan assets within an acceptable level of risk in order to meet our current and future obligations to pay benefits to qualifying employees and their beneficiaries while minimizing and stabilizing pension benefit costs and contributions. Diversification of assets is achieved through strategic allocations to various asset classes, and by retaining multiple, experienced third-party investment management firms with complementary investment styles and philosophies to implement these allocations. Risk is further managed by reviewing our investment policies at least annually and monitoring our fund managers at least quarterly for compliance with mandates and performance measures. A series of permitted and prohibited investments are listed in our respective investment policies, which are provided to our fund managers. The use of derivative financial instruments for speculative purposes and investments in the equity or debt securities of Resolute and its affiliates is prohibited. We have established a target asset allocation policy and ranges for each participating defined benefit pension plan based upon analysis of risk and return tradeoffs and correlations of asset mixes given long-term historical returns, prospective capital market returns, forecasted benefit payments and the forecasted timing of those payments. The targeted asset allocation policy of the plan assets is designed to hedge the change in the pension liabilities resulting from fluctuations in the discount rate by investing in debt and other securities, while also generating excess returns required to reduce the unfunded pension deficit by investing in equity securities with higher potential returns. Real assets (infrastructure and real estate) are also used to diversify the assets and improve the risk-return profile of the plans. The targeted asset allocation policy of each participating defined benefit pension plan is 45% equity securities, 10% real assets, and 45% debt and other fixed income securities, including up to 5% in short-term instruments required for near-term liquidity needs. Equities have an allowable range of 25% to 55%, real assets have an allowable range of 0% to 15%, while debt securities have an allowable range of 35% to 65%. Approximately 60% of the equity securities are targeted to be invested in the U.S. and Canada, with the balance in other developed and emerging countries. Substantially all of the debt securities are targeted to be invested in the U.S. and Canada. The asset allocation for each participating defined benefit pension plan is reviewed periodically and, when necessary, rebalanced to bring the asset allocation within the prescribed ranges. Expected benefit payments and future contributions As of December 31, 2021, benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2022 $ 347 $ 11 2023 $ 330 $ 10 2024 $ 323 $ 10 2025 $ 316 $ 9 2026 $ 308 $ 9 2027 - 2031 $ 1,425 $ 38 (1) Benefit payments are expected to be paid from the plans’ net assets. We expect our 2022 pension contributions (excluding contributions to our defined contribution plans) to be approximately $77 million. U.S. pension funding The funding of our U.S. pension plan is governed by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code, and is also subject to the Moving Ahead for Progress in the 21st Century Act, the American Rescue Plan Act of 2021 and the Infrastructure Investment and Jobs Act of 2021. Under these regulations, the liabilities are discounted using 25-year average corporate bond rates within a specified corridor. During 2021, regulations were modified to implement a minimum 5% floor on the 25-year average corporate bond rates and to maintain the corridor at 5% through 2030 and then to gradually increase the corridor by 5% each year until it reaches 30% for 2035 and beyond. Under current regulations, funding shortfall is amortized over 15 years for purposes of determining minimum contribution requirements. Canadian pension funding Quebec plans The funding of our Quebec pension plans is subject to Quebec’s Supplemental Pension Plans Act (or, the “ SPPA ”), which is the pension plan funding regime generally applicable to pension plans in that province. Our contributions to our Quebec plans are determined on a going concern basis under the Quebec’s SPPA. Ontario plans The funding of our Ontario pension plans is subject to the Ontario Pension Benefits Act (or, the “ PBA ”), which is the pension plan funding regime generally applicable to pension plans in that province. The PBA provides for funding pension fund deficits on a going concern basis, or on a solvency basis if the solvency funded status of a pension plan is below 85%. Additional undertakings Our principal Canadian subsidiaries had entered into certain undertakings with the Governments of Ontario and Quebec, which expired in 2015 and 2016, respectively. The expiration of those undertakings did not eliminate ongoing obligations we incurred under the terms of those undertakings prior to their expiration, including the undertaking requiring us to make an additional solvency deficit reduction contribution to our pension plans of C$75, payable over four years, for each metric ton of capacity reduced in Quebec or Ontario, in the event of downtime of more than six consecutive months or nine cumulative months over a |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17. Income Taxes (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) 2021 2020 2019 U.S. $ (229) $ (126) $ (205) Foreign 733 187 216 $ 504 $ 61 $ 11 The income tax provision for the years ended December 31, 2021, 2020 and 2019, was comprised of the following: (In millions) 2021 2020 2019 U.S. Federal and State: Current $ (3) $ — $ — Deferred — — — (3) — — Foreign: Current — — — Deferred (192) (51) (58) (192) (51) (58) Total: Current (3) — — Deferred (192) (51) (58) $ (195) $ (51) $ (58) Effective income tax rate reconciliation 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 years ended December 31, 2021, 2020 and 2019, as a result of the following: (In millions) 2021 2020 2019 Income before income taxes $ 504 $ 61 $ 11 Income tax provision: Expected income tax provision (106) (13) (2) Changes resulting from: Valuation allowance (1) 54 (11) (43) Foreign exchange (3) (6) 2 U.S. tax on non-U.S. earnings (115) (23) (7) State income taxes, net of federal income tax benefit 10 6 7 Foreign tax rate differences (38) (10) (11) Other, net (2) 3 6 (4) $ (195) $ (51) $ (58) (1) During 2021, we used $54 million of deferred income tax assets that were fully reserved to offset the tax implications relating to the GILTI inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income, in excess of current year U.S. operating losses. During 2020 and 2019, we recorded an increase to our valuation allowance of $11 million and $43 million, respectively, related to our U.S. operations. (2) During 2020, we recorded a $4 million adjustment related to the settlement of an insurance claim in connection with our acquisition of Atlas. Deferred income taxes At each reporting period, we assess whether it is more likely than not that the deferred income tax assets will be realized, based on the review of all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. In our evaluation process, we give the most weight to historical income or losses. The carrying value of our deferred income tax assets reflects our expected ability to generate sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax assets. In assessing our ability to realize the deferred income tax assets of our U.S. operations, we reviewed all available evidence, including historical U.S. operating losses, the GILTI inclusion and estimates of future taxable income. Following our assessment, we concluded that the existing negative evidence outweighed the positive evidence. As a result, we recognized a full valuation allowance against our net U.S. deferred income tax assets. A valuation allowance does not reduce our underlying tax attributes, nor hinders our ability to use them in the future. The rapidly changing dynamics in the wood products segment resulted in a significant GILTI inclusion for the year, creating U.S. taxable income. This taxable income is entirely offset by existing U.S. tax attributes included in deferred income tax assets that have been fully reserved. If current market dynamics are sustained, we could release our valuation allowance in future periods, in full or in part. This may affect our consolidated financial position and results of operations. For Canadian operations, the positive evidence, which included a review of historical and forecasted earnings, resulted in the conclusion that no significant valuation allowances were required for our deferred income tax assets, as they were determined to be more likely than not to be realized. We continue to maintain a valuation allowance on net capital loss carryforwards of $37 million. Net deferred income tax assets as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Fixed assets $ (33) $ (57) Operating lease right-of-use assets (14) (15) Investment in partnership (26) (20) Other (8) (5) Deferred income tax liabilities (81) (97) Fixed assets 178 297 Pension and OPEB plans 300 408 Net operating loss carryforwards and deduction limitation 572 660 Net capital loss carryforwards 41 41 Undeducted research and development expenditures 145 195 Tax credit carryforwards 99 98 Operating lease liabilities 14 15 Goodwill 27 28 Other 69 44 Deferred income tax assets 1,445 1,786 Valuation allowance (711) (774) Net deferred income tax assets $ 653 $ 915 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 653 $ 915 The balance of tax attributes and their dates of expiration as of December 31, 2021, were as follows: (In millions) Related Year of Net operating loss and deduction limitation carryforwards: U.S. federal: $1,618 $ 340 (1) 2029 – 2037 U.S. federal and deduction limitation: $506 106 (1) Indefinite U.S. state: $2,109 107 (1) 2022 – 2041 U.S. state and deduction limitation: $253 8 (1) Indefinite Canadian federal and provincial (excluding Quebec): $24 4 2038 Quebec: $61 6 2028 – 2039 Other 1 Indefinite $ 572 Net capital loss carryforwards: U.S. federal and state: $23 $ 5 (1) 2025 Canadian federal and provincial (excluding Quebec): $118 31 Indefinite Quebec: $54 5 Indefinite $ 41 Undeducted research and development expenditures: Canadian federal and provincial (excluding Quebec): $400 $ 69 Indefinite Quebec: $843 76 Indefinite $ 145 Tax credit carryforwards: Canadian research and development, and other $ 80 2022 – 2041 U.S. state and other 19 (1) 2022 – 2036 $ 99 (1) As of December 31, 2021, we had a full valuation allowance against our U.S. operations net deferred income tax assets. Our U.S. federal net operating loss carryforwards are subject to annual limitations under § 382 of the U.S. Internal Revenue Code of 1986, as amended, (or, “ IRC § 382 ”), resulting from a previous ownership change. We do not expect that IRC § 382 would limit the utilization of our available U.S. federal net operating loss carryforwards prior to their expiration. We consider our foreign earnings to be permanently invested. Accordingly, we do not provide for the additional U.S. and foreign income taxes that could become payable upon remittance of undistributed earnings of our foreign subsidiaries. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. Unrecognized tax benefits The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2021 and 2020: (In millions) 2021 2020 Beginning of year $ 28 $ 29 (Decrease) increase resulting from: Settlements with taxing authorities (2) (2) Positions taken in the prior period — 1 End of year $ 26 $ 28 There are no unrecognized tax benefits that would affect the effective tax rate as of December 31, 2021. In the normal course of business, we are subject to audits from federal, state, provincial and other tax authorities. U.S. federal tax returns for 2017 and subsequent years, as well as Canadian tax returns for 2016 and subsequent years, remain subject to examination by tax authorities. We do not expect a significant change to the amount of unrecognized tax benefits over the next 12 months. However, any adjustments arising from certain ongoing examinations by tax authorities could alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions, and these adjustments could differ from the amount accrued. We believe that taxes accrued in our Consolidated Balance Sheets fairly represent the amount of income taxes to be settled or realized in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies Commitments In the normal course of business, we have entered into or renegotiated various supply agreements, water rights agreements, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). As of December 31, 2021, these commitments were as follows: (In millions) Commitments (1) 2022 $ 31 2023 17 2024 13 2025 17 2026 6 2027 and thereafter 21 $ 105 (1) Includes energy purchase obligations of $31 million through 2027 for certain of our tissue, pulp and paper mills. 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, Indigenous peoples’ 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. Any recovery from litigation or settlement of claims that is a gain contingency is recognized if, and when, realized or realizable. 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 December 31, 2021, 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. Hearings for certain of these matters are scheduled to occur in 2022. Countervailing duty and anti-dumping investigations of 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. Countervailing Duties – On April 24, 2017, Commerce announced its preliminary determination in the countervailing duty investigation; as a result, from April 28, 2017 to August 25, 2017, we were required to pay cash deposits to U.S. Customs at a rate of 12.82% for countervailing duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the countervailing investigation; as a result, from December 28, 2017 to November 30, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 14.70%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the countervailing investigation; as a result, from December 1, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 19.10%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the countervailing investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 18.07%. Commerce is expected to issue its final determination in the third administrative review of the countervailing investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 15.48% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through December 31, 2021, our cash deposits totaled $339 million. Antidumping Duties – On June 26, 2017, Commerce announced its preliminary determination in the anti-dumping investigation; as a result, from June 30, 2017 to November 7, 2017, we were required to pay cash deposits to U.S. Customs at a rate of 4.59% for anti-dumping duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the anti-dumping investigation; as a result, from November 8, 2017 to November 29, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 3.20%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the anti-dumping investigation; as a result, from November 30, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 1.15%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the anti-dumping investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 11.59%. Commerce is expected to issue its final determination in the third administrative review of the antidumping investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 4.76% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through December 31, 2021, our cash deposits totaled $58 million. Ongoing Administrative Reviews – Following Commerce’s completion of the Canadian softwood lumber investigation and first administrative review, two further administrative reviews remain pending. On March 10, 2020, Commerce published a notice initiating the second administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the second administrative review of the countervailing duty order and we have completed our answers to Commerce with the information requested. On March 4, 2021, Commerce published a notice initiating the third administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the third administrative review of the countervailing duty order and we have responded to Commerce with the information requested to date. Ongoing Appellate Reviews – On December 14, 2017 and January 4, 2018, we filed complaints supporting appellate reviews of the final results of Commerce’s countervailing and antidumping investigations on softwood lumber from Canada, respectively, before a binational panel formed pursuant to the North American Free Trade Agreement or United States-Mexico-Canada Agreement, as the case may be (or, “ Panel ”). Briefing for these appeals has been completed, and the constitution of the Panel reviewing countervailing duties was announced on August 24, 2021; but a panelist withdrew on October 29, 2021; the hearing in this matter was scheduled to occur in March 2022, although the proceeding has been suspended pending appointment of a substitute panelist. Further, on January 6, 2021 and January 19, 2021, we filed our complaints supporting appellate Panel reviews of the final results in the countervailing and antidumping first administrative reviews. Briefing for these appeals has also been completed; we are awaiting the constitution of the Panel in both instances. ITC Injury Determination – In parallel, on December 28, 2017, the ITC published its affirmative final injury determinations in the antidumping and countervailing investigations on softwood lumber from Canada. On September 4, 2019, a Panel issued an interim decision upholding the affirmative final injury determinations of the ITC in both investigations of softwood lumber products from Canada. The Panel remanded the ITC to reconsider several findings and ordered the ITC to submit its redetermination on remand within 90 days from the date of the Panel interim decision. On December 19, 2019, the ITC issued its redetermination on remand that maintained the affirmative final injury determinations, and on May 22, 2020, the Panel issued its final decision and affirmed in its entirety the ITC’s injury determination on remand. WTO Appeal – In addition, on August 24, 2020, the World Trade Organization’s (or, “ WTO ”) dispute panel issued a report (or, the “Panel Report”) in the case brought by the government of Canada in “United States — Countervailing Measures on Softwood Lumber from Canada” (DS533), concluding, among other things, that Commerce acted inconsistently with the Agreement on Subsidies and Countervailing Measures on most of the matters. On September 28, 2020, the United States notified the WTO’s dispute settlement body of its decision to appeal the Panel Report. Financial assurance - We are required by U.S. Customs to provide surety bonds to secure the payment of our cash deposits. As of December 31, 2021, we had $83 million of surety bonds outstanding in favor of U.S. Customs, of which $53 million were secured by letters of credit. For more information, see Note 15, “Long-Term Debt – Debt instruments – ABL Credit Facility” to our Consolidated Financial Statements. 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 25.40% of the outstanding Fibrek shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order by the Quebec Superior Court in Canada (or, “ Quebec Superior Court ”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised 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 . On September 26, 2019, the Quebec Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at C$1.99 per share, or C$31 million in aggregate, plus interest and an additional indemnity, for a total estimated at C$44 million payable in cash. We had previously accrued C$14 million for the payment of the dissenting shareholders’ claims. Following the court decision, we accrued an additional C$30 million ($23 million), and as a result recorded $23 million in “Other expense, net” in our Consolidated Statement of Operations for the year ended on December 31, 2019. Of the total amount of C$44 million, C$19 million ($14 million) was payable immediately and paid on October 2, 2019. The remaining balances of C$27 million ($21 million) as of December 31, 2021, and C$25 million ($20 million) as of December 31, 2020, which include interest, are recorded in “Accounts payable and other” as of December 31, 2021, and in “Other liabilities” as of December 31, 2020 in our Consolidated Balance Sheets. We are appealing the decision, therefore the payment of any additional consideration and its timing will depend on the outcome of the appeal. On November 13, 2019, a legal hypothec in the amount of C$30 million ($24 million) was registered on our Saint-Félicien (Quebec) immovable and movable property to secure the payment of any additional amounts following the outcome of the appeal. The hearing in this matter is expected to occur in 2022. 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 C$150 million ($119 million), would have to be funded if we do not obtain the relief sought. The hearing in this matter has not yet been scheduled but could occur in the next twelve months. Contingency gain In 2017, we filed a lawsuit against the Government of Canada alleging that measures taken by the provincial Government of Nova Scotia and the Government of Canada damaged Resolute and its investments in Canada, in violation of the investment protections extended to foreign investors under North American Free Trade Agreement Articles 1102, 1105 and 1110. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation is a gain contingency and will be recognized if, and when, realized or realizable. Environmental matters We are subject to a number of federal or national, state, provincial, and local environmental laws, regulations, and orders in various jurisdictions. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated and orders issued 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 have environmental liabilities of $13 million and $15 million recorded as of December 31, 2021 and 2020, 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 other” or “Other liabilities” in our Consolidated Balance Sheets. We also have asset retirement obligations of $36 million and $25 million recorded as of December 31, 2021 and 2020, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets. These liabilities are included in “Accounts payable and other” and “Other liabilities” in our Consolidated Balance Sheets. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share Capital | Note 19. Share Capital Common stock We are authorized under our certificate of incorporation, as amended and restated, to issue up to 190 million shares of common stock, par value $0.001 per share, of which 14,320,960 shares have been reserved for issuance under the Incentive Plans (as defined in Note 20, “Share-Based Compensation”). Treasury stock On December 7, 2021, we announced a new share repurchase program, authorized by our board of directors, of up to ten million shares of our common stock or $100 million, whichever occurs first. No shares were repurchased under this plan in 2021. With our repurchase of 4.6 million shares at an average price of $10.64 for a total of $48 million during the year ended December 31, 2021, we completed our $100 million share repurchase program, which was launched in March 2020 and authorized the repurchase of shares of up to 15% of our common stock, for an aggregate consideration of up to $100 million. Under this program, we also repurchased 6.9 million shares at an average price of $4.28 for a total of $30 million in 2020. During the year ended December 31, 2019, we repurchased 4.8 million shares at an average price of $4.98 for a total of $24 million under our $150 million share repurchase program, which was completed in 2019. Dividends We declared and paid a special dividend on our common stock of $1.00 per share ($79 million) in 2021. We did not declare or pay any dividends on our common stock during the year ended December 31, 2020 and 2019. Under some of our compensation plans, participants are credited additional units when a dividend is declared. The impact of the special dividend was as follows: $3 million was recognized as a compensation expense, and $2 million as an increase in deficit and in additional paid-in capital; and $3 million as an increase in liabilities during the year ended December 31, 2021. Preferred stock We are authorized under our certificate of incorporation, as amended and restated, to issue ten million shares of preferred stock, par value $0.001 per share. As of December 31, 2021 and 2020, no preferred shares were issued and outstanding. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 20. Share-Based Compensation Incentive Plans The Resolute Forest Products Equity Incentive Plan, as amended (or, the “ 2010 Incentive Plan ”), administered by the human resources and compensation/nominating and governance committee of the board of directors, became effective in 2010 and provides for the grant of equity-based and liability-based awards, including stock options, stock appreciation rights, restricted stock, RSUs, DSUs, PSUs (collectively, “ stock incentive awards ”), and cash incentive awards to certain of our officers, directors, employees, consultants and advisors. The 2010 Incentive Plan reserved for issuance 9 million shares for stock incentive awards. In 2019, we established and adopted the Resolute Forest Products 2019 Equity Incentive Plan (or, the “ 2019 Incentive Plan ”), which authorized 3 million shares to be issued as stock incentive awards. In 2020, an additional 2.3 million shares were authorized, for a total of 5.3 million shares. Since the adoption of the 2019 Incentive Plan, no more awards can be granted. As of December 31, 2021, 1.5 million shares were available for grants under the 2019 Incentive Plan. We refer to both the 2010 Incentive Plan and the 2019 Incentive Plan as the “ Incentive Plans ”. Awards for employees who retire (upon meeting certain age and service criteria) at least six months after the grant date and prior to the end of the vesting period will continue to vest after retirement, in accordance with the normal vesting schedule. The requisite service periods for the stock incentive awards are reduced on an individual basis, as necessary, to reflect the grantee’s individual retirement eligibility date. The share-based compensation expense under the Incentive Plans for the years ended December 31, 2021, 2020 and 2019, was as follows: 2021 2020 2019 Equity-based awards $ 8 $ 4 $ 4 Liability-based awards 30 10 (2) $ 38 $ 14 $ 2 For the years ended December 2021, 2020 and 2019, we recognized tax benefit of $3.5 million, $1.2 million and nil, respectively. As of December 31, 2021, there was $10 million of unrecognized compensation cost for equity-based awards, which is expected to be recognized over a remaining service period of 2.7 years. For liability-based awards, unrecognized compensation cost as of December 31, 2021, was $11 million, which is expected to be recognized over a remaining service period of 1.9 years. Stock options Under the Incentive Plans, stock options become exercisable ratably over a period of four years and, unless terminated earlier in accordance with their terms, expire 10 years from the date of grant. New shares of our common stock are issued upon the exercise of a stock option. In certain cases, we withhold stock options and settle a net amount of shares in respect of stock option costs and applicable taxes. We have not granted any stock options since 2013. Since the adoption of the 2019 Incentive Plan, stock options can no longer be granted. The activity of outstanding stock options for the year ended December 31, 2021, was as follows: Number of Weighted- Weighted- Balance as of December 31, 2020 912,901 $ 16.09 1.8 Exercised (118,485) 11.80 Forfeited (151,442) 14.40 Expired (253,988) 20.76 Balance as of December 31, 2021 388,986 $ 15.00 1.7 Exercisable as of December 31, 2021 388,986 $ 15.00 1.7 The total intrinsic value of stock options exercised in 2021 was less than $1 million. No stock options were exercised in 2020 and 2019. Restricted stock units and deferred stock units Under the Incentive Plans, each RSU and DSU granted provides the holder upon vesting the right to receive one share of our common stock for equity-based awards, and the equivalent in cash for liability-based awards. The awards vest ratably over a period of four years for employees and one year for directors. Awards to employees are settled upon vesting, while awards to directors are settled ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. We withhold units and settle a net amount of shares in respect of applicable taxes. The activity of nonvested RSUs and DSUs for the year ended December 31, 2021, was as follows: Number of Units Equity-Based Awards Liability-Based Awards Total Weighted- Balance as of December 31, 2020 1,279,015 1,128,264 2,407,279 $ 5.14 Granted 354,311 554,771 909,082 $ 10.40 Vested (750,452) (747,647) (1,498,099) $ 6.38 Forfeited — (101,457) (101,457) $ 5.23 Balance as of December 31, 2021 882,874 833,931 1,716,805 $ 6.84 There were 169,832 equity-based and 341,651 liability-based RSUs and DSUs granted to directors that vested but were not settled as of December 31, 2021. The weighted-average grant-date fair value of all RSUs and DSUs granted in 2020 and 2019, was $3.87 and $5.55, respectively. The total fair value of RSUs and DSUs vested in 2021, 2020 and 2019, was $16 million, $7 million and $5 million, respectively, of which $8 million, $3 million and $3 million were related to equity-based awards, respectively, and $8 million, $4 million and $2 million were related to liability-based awards, respectively. We paid $8 million, $3 million and $1 million for liability-based RSUs and DSUs in 2021, 2020 and 2019, respectively. Performance stock units Under the Incentive Plans, each PSU provides the holder the right to receive upon vesting one share of our common stock for equity-based awards, and the equivalent in cash for liability-based awards, subject to an adjustment based on market and/or performance conditions. The awards vest after a period of up to 40 months upon which they are settled. No awards vest when the minimum thresholds are not achieved. We withhold units and settle a net amount of shares in respect of applicable taxes. The fair value of PSUs granted was estimated using a Monte Carlo simulation model, using the following assumptions: 2021 2020 2019 Expected volatility (1) 76% - 82% 57% - 77% 56% - 58% Risk-free interest rate 0.06%- 0.96% 0.11% - 2.99% 1.58% - 1.70% (1) The volatility is based on our historical volatility over the expected remaining life of the award. The activity of nonvested PSUs for the year ended December 31, 2021, was as follows: Number of Units Equity-Based Awards Liability-Based Awards Total Weighted- Balance as of December 31, 2020 1,795,403 1,311,327 3,106,730 $ 6.05 Granted 402,306 333,722 736,028 $ 10.60 Vested (387,616) (433,418) (821,034) $ 8.20 Performance adjustment 45,199 52,201 97,400 $ 8.58 Forfeited — (114,367) (114,367) $ 5.48 Balance as of December 31, 2021 1,855,292 1,149,465 3,004,757 $ 6.69 The weighted-average grant-date fair value of all PSUs granted in 2020 and 2019, was $4.09 and $5.29, respectively. The total fair value of PSUs vested in 2021, 2020 and 2019, was $8 million, $5 million and $7 million, respectively, of which $4 million, $4 million and $6 million were related to equity-based awards, respectively, and $4 million, $1 million and $1 million were related to liability-based awards, respectively. We paid $4 million, $1 million and $1 million for liability-based PSUs in 2021, 2020 and 2019, respectively. Deferred Compensation Plan In 2011, the board of directors adopted the Resolute Forest Products Outside Director Deferred Compensation Plan (or, the “ Deferred Compensation Plan ”), which allows non-employee directors to surrender 50% or 100% of their cash fees in exchange for DSUs or RSUs, as applicable, based on the director’s country of residency. The number of awards issued pursuant to the Deferred Compensation Plan is based on 110% of the fees earned, resulting in a 10% premium incentive. Under the Deferred Compensation Plan, each RSU and DSU granted provides the holder the right to receive payment in cash in an amount equal to the fair market value of one share of our common stock upon vesting. The awards have a nonforfeitable right or vest ratably over a period of three years, as applicable, and are settled with cash ratably over a period of three years or upon separation from the board of directors, as applicable, based on the director’s country of residency. All of our outstanding stock incentive awards pursuant to the Deferred Compensation Plan were accounted for as liability awards. Share-based compensation expense under the Deferred Compensation Plan for the years ended December 31, 2021 and 2020, was $5 million and $2 million, respectively. There was a $1 million reversal in share-based compensation expense for the year ended December 31, 2019. RSUs and DSUs outstanding under the Deferred Compensation Plan as of December 31, 2021 and 2020, were 484,064 and 481,056, respectively. The total fair value of RSUs and DSUs vested in 2021, 2020 and 2019 was $1 million, less than $1 million and less than $1 million, respectively. We paid $1 million for liability-based RSUs and DSUs in 2021. There was no cash paid in 2020 and 2019. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 21. 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 and paper. 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.” In each of 2021, 2020 and 2019, no assets were identifiable by segment and reviewed by management. Information about certain segment data for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales 2021 $ 813 $ 161 $ 1,718 $ 972 $ 3,664 $ — $ 3,664 2020 $ 668 $ 173 $ 1,025 $ 934 $ 2,800 $ — $ 2,800 2019 $ 797 $ 165 $ 616 $ 1,345 $ 2,923 $ — $ 2,923 Depreciation and amortization 2021 $ 24 $ 19 $ 42 $ 62 $ 147 $ 17 $ 164 2020 $ 24 $ 18 $ 43 $ 69 $ 154 $ 15 $ 169 2019 $ 23 $ 18 $ 34 $ 72 $ 147 $ 20 $ 167 Operating income (loss) 2021 $ 99 $ (24) $ 772 $ (19) $ 828 $ (244) $ 584 2020 $ (1) $ (1) $ 276 $ (46) $ 228 $ (129) $ 99 2019 $ 39 $ (16) $ (6) $ 82 $ 99 $ (82) $ 17 Capital expenditures 2021 $ 23 $ 4 $ 50 $ 24 $ 101 $ 11 $ 112 2020 $ 15 $ 8 $ 26 $ 23 $ 72 $ 6 $ 78 2019 $ 29 $ 8 $ 23 $ 43 $ 103 $ 10 $ 113 (1) Inter-segment sales of $31 million, $28 million and $36 million, were excluded from market pulp sales for the years ended December 31, 2021, 2020 and 2019, respectively. These sales were transacted either at the lowest market price of the previous month or cost. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $65 million, $28 million and $22 million for the years ended December 31, 2021, 2020 and 2019, respectively. Sales are attributed to countries based on the location of the customer. No single customer, related or otherwise, accounted for 10% or more of our 2021, 2020 or 2019 consolidated sales. No country in the “Other countries” group in the table below exceeded 2% of consolidated sales. Sales by country for the years ended December 31, 2021, 2020 and 2019, were as follows: (In millions) 2021 2020 2019 U.S. $ 2,591 $ 2,038 $ 2,026 Foreign countries: Canada 764 463 405 Mexico 60 63 87 Other countries 249 236 405 1,073 762 897 $ 3,664 $ 2,800 $ 2,923 Long-lived assets by country as of December 31, 2021 and 2020, were as follows: (In millions) 2021 2020 U.S. $ 518 $ 666 Canada 863 898 $ 1,381 $ 1,564 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22. Subsequent Event The following significant event occurred subsequent to December 31, 2021: • On February 14, 2022, we entered into an agreement with Louisiana-Pacific Canada Ltd., a wholly-owned subsidiary of Louisiana-Pacific Corporation, to acquire the remaining 50% equity interest in two joint ventures that produce I-joists for a cash consideration of $50 million, subject to customary adjustments. These joint ventures, in which we previously owned a 50% equity interest, are comprised of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership. The acquisition is subject to certain closing conditions and is expected to close in the first half of 2022. Once approved and completed, the acquisition will be accounted for as a business combination in accordance with the acquisition method of accounting. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Financial statements | Financial statements We have prepared our consolidated financial statements and the accompanying notes (or, the “ Consolidated Financial Statements ”) in accordance with U.S. generally accepted accounting principles (or, “ GAAP ”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Certain prior period amounts to our Consolidated Financial Statements and the accompanying notes have been reclassified to conform to the 2021 presentation. |
Consolidation | ConsolidationOur Consolidated Financial Statements include the accounts of Resolute Forest Products Inc. and its subsidiaries. All transactions and balances between these companies have been eliminated. |
Equity method investments | Equity method investments We account for our investments in companies where we have significant influence or joint control, using the equity method of accounting. |
Use of estimates | Use of estimates In preparing our Consolidated Financial Statements in accordance with GAAP, management is required to make accounting estimates based on assumptions, judgments, and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented, the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement benefit (or, “ OPEB ”) plans, the recoverability of deferred income tax assets, the recoverability of our long-lived assets and the fair value estimates of the assets acquired and liabilities assumed in a business combination, including goodwill. Estimates, assumptions, and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms, and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions. |
Business combination | Business combination We account for business combinations using the acquisition method as of the date control is transferred to us. Under this approach, identifiable assets acquired and liabilities assumed are recorded at their respective fair values at the date of acquisition. Any amount of the purchase price paid that is in excess of the estimated fair values of net identifiable assets acquired is recorded in “Goodwill” in our Consolidated Balance Sheets. In determining the estimated fair values of identifiable assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods such as present value modeling and referenced market values (where available). Valuations are performed by management or independent |
Cash and cash equivalents, and restricted cash | Cash and cash equivalents, and restricted cash Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits, money market, and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase. Restricted cash consists primarily of deposits held as collateral for letters of credit. |
Accounts receivable | Accounts receivable Accounts receivable are recorded at cost, net of an allowance for expected credit losses. Accounts receivable are subject to impairment review that is based on the aging method. Impairment is calculated based on how long a receivable has been outstanding. The Company estimates expected credit losses by considering historical credit loss experience (based on days past due), current conditions, and forward-looking factors specific to the customers and the economic environment. We also consider if we are no longer doing business with the customer, and any other factors that may affect collectability from customers with significant outstanding balances. A receivable is written off when there is no reasonable expectation of recovering the contractual cash flows. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations when incurred. |
Assets held for sale | Assets held for sale Assets held for sale are carried in our Consolidated Balance Sheets at the lower of carrying value or fair value less costs to sell. We cease recording depreciation and amortization when assets are classified as held for sale. |
Fixed assets | Fixed assets Fixed assets acquired, including internal-use software, are stated at acquisition cost less accumulated depreciation and impairment. The cost of the fixed assets is reduced by any investment tax credits or government capital grants earned. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest in “Depreciation and amortization” in our Consolidated Statements of Operations over the related asset’s remaining useful life. |
Major maintenance costs | Major maintenance costs Planned major maintenance costs are recorded using the deferral method, whereby the costs of each planned major maintenance activity are capitalized to “Other current assets” or “Other assets” in our Consolidated Balance Sheets, and amortized to “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs are expensed as incurred. |
Amortizable intangible assets | Amortizable intangible assets Amortizable intangible assets are stated at acquisition cost less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the estimated useful lives of the assets. |
Impairment of long-lived assets | Impairment of long-lived assets The unit of accounting for impairment testing for fixed assets, net, amortizable intangible assets, net, and operating lease right-of-use assets (collectively, “ long-lived assets ”) is its group, which includes long-lived assets and liabilities directly related to those assets (herein defined as “ asset group ”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by initially comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation, and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group. Long-lived assets to be disposed of other than by sale are classified as held and used until the asset group is disposed of or use of the asset group has ceased. |
Goodwill | Goodwill Goodwill is not amortized and is tested for impairment every year at the end of November, or more frequently if events or changes in circumstances indicate a potential impairment loss. The impairment test of goodwill is performed at the reporting unit’s level. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill. In performing the qualitative assessment, we identify the relevant drivers of fair value of a reporting unit and the relevant events and circumstances that may have an impact on those drivers of fair value. This process involves significant judgment and assumptions including the assessment of the results of the most recent fair value calculations, the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, specific events affecting us and the business, and making the assessment on whether each relevant factor will impact the impairment test positively or negatively, and the magnitude of any such impact. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill, then a quantitative impairment test is performed. We can also elect to bypass the qualitative assessment and proceed directly to the quantitative impairment test. The quantitative impairment test consists of comparing the fair value of a reporting unit to its carrying amount, including goodwill. Significant judgment is required to estimate the fair value of a reporting unit. We determine the fair value of a reporting unit by using the income method. Under this method, we estimate the fair value of a reporting unit based on the present value of estimated future cash flows. The assumptions used in the model requires estimating future sales volumes, selling prices and costs, changes in working capital, investments in fixed assets, and the selection of the appropriate discount rate. The assumptions used are consistent with internal projections and operating plans. Unanticipated market and macroeconomic events and circumstances may occur and could affect the exactitude and validity of management assumptions and estimates. Sensitivities of these fair value estimates to changes in assumptions are also performed. In the event that the net carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Goodwill is assigned to the wood segment for the purposes of impairment testing. |
Leases | Leases We engage in short and long-term leases for building, machinery, chemical equipment, rail cars and office equipment. 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 12 months or less are not recorded in our Consolidated Balance Sheets, and are expensed over the term of the lease in our Consolidated Statements of Operations. Operating and finance lease right-of-use assets and the related liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the lease term. 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. |
Income taxes | Income taxes We use the asset and liability approach in accounting for income taxes. Under this approach, deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the carrying amounts in our Consolidated Financial Statements of existing assets and liabilities and their respective tax bases. This approach also requires the recording of deferred income tax assets related to net operating loss, tax credit and other carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. We account for global intangible low-taxed income (or, “ GILTI ”) as a period cost, if and when incurred, and apply the tax law ordering approach to assess the impact of GILTI on the realizability of net operating loss carryforwards. We have not provided for the additional U.S. and foreign income taxes that could become payable upon remittance of undistributed earnings of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, estimates of future taxable income, past operating results, and prudent and feasible tax planning strategies. In our evaluation process, we give the most weight to historical income or losses. Tax benefits related to uncertain tax positions are recorded when it is more likely than not, based on technical merits, that the position will be sustained upon examination by the relevant taxing authorities. The amount of tax benefit recognized may differ from the amount taken or expected to be taken on a tax return. These differences represent unrecognized tax benefits and are reviewed at each reporting period based on facts, circumstances and available evidence. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of the income tax provision. |
Environmental costs | Environmental costs We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable. |
Pension and OPEB plans | Pension and OPEB plans For each defined benefit pension and OPEB plan, a liability is recognized for a plan’s under-funded status, net of the fair value of plan assets, and an asset is recognized for a plan’s over-funded status, net of the plan’s obligations. Changes in the funding status that have not been recognized in our net periodic benefit cost are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. We recognize net periodic benefit cost or credit as employees render the services necessary to earn the pension and OPEB. The service cost component of net periodic pension and OPEB cost or credit is recorded in operating expenses (together with other employee compensation costs arising during the period). The other components of the net periodic pension and OPEB cost or credit (or, “ non-operating pension and OPEB credits ”) are reported separately outside any subtotal of operating income. Amounts we contribute to our defined contribution plans are expensed as incurred. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on any principal market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. We categorize assets and liabilities measured at fair value (other than those measured at net asset value, or “ NAV ,” per share, or its equivalent) into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates. Level 3 - Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs. |
Share-based compensation | Share-based compensation We recognize the cost of our share-based compensation over the requisite service period using the straight-line attribution approach. For equity-based awards, the cost is based on the grant date fair value, or when the award has a service inception date preceding the grant date, the cost is based on the fair value at the end of each reporting period until the grant date. For liability-based awards, the cost is based on the fair value at the end of each reporting period. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. Our stock incentive awards (as defined in Note 20, “Share-Based Compensation”) may be subject to market, performance and/or service conditions. For equity-based awards, the fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (or, “ RSUs ”), deferred stock units (or, “ DSUs ”) and performance stock units (or, “ PSUs ”) is determined based on the market price of a share of our common stock on the grant date. Liability-based awards, consisting of RSUs, DSUs, and PSUs, are initially measured based on the market price of a share of our common stock on the grant date and remeasured at the end of each reporting period, until settlement. Certain PSUs have a market condition considered in the determination of the fair value of the award, such that the ultimate number of units that vest will be determined in part by total shareholder return relative to a group of peer companies. The fair value of those PSUs is determined using a Monte Carlo simulation model. We estimate forfeitures of stock incentive awards and performance adjustments for our PSUs based on historical experience and forecasts, and recognize compensation cost only for those awards expected to vest. Estimated forfeitures and performance adjustments are updated to reflect new information or actual experience, as it becomes available. |
Revenue recognition | Revenue recognition Revenue arises from contracts with customers in which the sale of goods is the main performance obligation. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied, which is when (point in time) or as (over time) control of the promised good or service is transferred to the customer. Revenue is measured at the amount to which we are expected to be entitled in exchange for transferring goods based on consideration specified in the contract with the customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that we collect from the customer, are excluded from revenue. When a contract with a customer includes variable consideration such as special pricing agreements and other volume-based incentives, revenue is recognized at the most likely amount based on sales forecasts, for which it is probable that a revenue reversal will not subsequently occur. Revenue is recorded at a point in time when control over the goods transfers to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts with customers. Pulp, tissue, paper and wood products are delivered to our customers in the U.S. and Canada directly from our mills primarily by truck or rail. Pulp and paper products are delivered to our international customers primarily by ship. For sales where control transfers to the customer at the shipping point, revenue is recorded when the product leaves the facility, whereas for sales where control transfers at the destination, revenue is recorded when the product is delivered to the customer’s delivery site. Sales of our other products (green power produced from renewable sources and wood-related products) are recognized when the products are delivered and are included in “Cost of sales, excluding depreciation, amortization and distribution costs” in our Consolidated Statements of Operations. |
Distribution costs | Distribution costs Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in “Distribution costs” in our Consolidated Statements of Operations. |
Currency translation | Currency translation The functional currency of the majority of our operations is the U.S. dollar. Non-monetary assets and liabilities denominated in foreign currencies of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rate as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using a daily or monthly average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet items are reported in “Other expense, net” in our Consolidated Statements of Operations. The functional currency of our other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rate in effect as of the balance sheet date. Income and expense items are translated using a daily or monthly average exchange rate for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.” |
Derivatives financial instruments | Derivatives financial instruments We regularly enter into derivative financial instruments to manage our commodities price risk. These derivative instruments are not designated as hedging instruments and are recorded as either other assets or other liabilities at fair value in our Consolidated Balance Sheets. Changes in fair value are recognized in “Other expense, net” in our Consolidated Statements of Operations. |
Net income (loss) per share | Net income (loss) per share We calculate basic net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income (loss) by the basic weighted-average number of outstanding common shares. We calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders by dividing our net income by the basic weighted-average number of outstanding common shares, as adjusted for dilutive potential common shares using the treasury-stock method. To calculate diluted net income per share attributable to Resolute Forest Products Inc. common shareholders, securities that could have potentially dilutive effect on the weighted average number of outstanding common shares include all or a portion of outstanding stock options, RSUs, DSUs and PSUs. |
New accounting pronouncements adopted and Accounting pronouncement not yet adopted | New accounting pronouncements adopted in 2021 ASU 2019-12 “Simplifying the Accounting for Income Taxes” Effective January 1, 2021, we adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes,” issued by the Financial Accounting Standards Board (or, “ FASB ”) in 2019, which removes the specific exceptions to the general principles in ASC 740, “Income Taxes,” and clarifies certain aspects of the existing guidance. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. ASU 2020-04 “Reference Rate Reform” Effective December 1, 2021, we adopted ASU 2020-04, “Reference Rate Reform,” amended in January 2021 by ASU 2021-01, “Reference Rate Reform - Scope,” issued by the FASB in March 2020, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This update provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (or, the “ LIBOR ”) or another reference rate expected to be discontinued because of reference rate reform. The adoption of this accounting guidance did not impact our Consolidated Financial Statements and disclosures. Accounting pronouncements not yet adopted as of December 31, 2021 ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which improves the accounting for acquired revenue contracts with customers in a business combination. This update is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption being permitted. This accounting guidance will have to be applied to future acquisitions. ASU 2021-10 “Government Assistance” In November 2021, the FASB issued ASU 2021-10, “Government Assistance”, which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy. This update is effective for annual periods beginning after December 15, 2021. We are currently evaluating this accounting guidance, which will have disclosure impact only. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Less than Wholly-Owned Consolidated Subsidiaries | All consolidated subsidiaries are wholly-owned as of December 31, 2021, with the exception of the following: Consolidated Subsidiary Resolute Forest Products Ownership Partner Partner Forest Products Mauricie L.P. 93.2% Coopérative Forestière du Haut Saint-Maurice 6.8% |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Final Allocation of Purchase Price of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes our final allocation of the purchase price to the fair values of assets acquired and liabilities assumed at the Acquisition Date: (In millions) Current assets (1) $ 19 Fixed assets 114 Amortizable intangible assets (2) 21 Operating lease right-of-use assets 2 Goodwill (3) 31 Total assets acquired and goodwill $ 187 Current liabilities $ 11 Long-term debt, net of current portion 2 Operating lease liabilities, net of current portion 1 Total liabilities assumed $ 14 Net assets acquired $ 173 Fair value of consideration transferred $ 173 (1) Includes cash and cash equivalents of $1 million. (2) Amortizable intangible assets identified relate to customer relationships, which have a weighted-average useful life of 10 years. The fair value of the customer relationships was determined using the income approach through an excess earnings analysis discounted at a rate of 12.6%. (3) Goodwill represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized and is mostly attributable to the U.S. Sawmill Business’s assembled workforce and synergies expected from combining our operations with the U.S. Sawmill Business. Goodwill is deductible for tax purposes. |
Schedule of Pro Forma Information | The following unaudited pro forma information for the years ended December 31, 2020 and 2019, represents our results of operations as if the acquisition of the U.S. Sawmill Business had occurred on January 1, 2019, excluding the results of operations of the El Dorado sawmill that had been idled since October 2019 and restarted in the fourth quarter of 2020. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future. (Unaudited, in millions) 2020 2019 Sales $ 2,808 $ 3,021 Net income (loss) attributable to Resolute Forest Products Inc. $ 13 $ (70) |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Other expense, net for the years ended December 31, 2021, 2020 and 2019, was comprised of the following: (In millions) 2021 2020 2019 Foreign exchange loss $ (2) $ (4) $ (12) Loss on commodity contracts (1) (85) (22) — Income from equity method investments 19 8 10 Insurance recovery (2) — 15 — Provision related to a litigation (3) (1) — (23) Miscellaneous (expense) income (1) (1) 3 $ (70) $ (4) $ (22) (1) Principally related to lumber futures contracts; none of these contracts were outstanding as of December 31, 2021. (2) We recorded $15 million as other income for the year ended December 31, 2020, from the settlement of an insurance claim in connection with our acquisition of Atlas Paper Holdings, Inc. (or, “ Atlas ”) in 2015. (3) We accrued C$30 million of legal indemnity and interest costs for the year ended December 31, 2019, in connection with the Quebec Superior Court decision of the fair value of the shares of former dissenting shareholders of Fibrek Inc. (or, “ Fibrek ”) upon acquisition in 2012. See Note 18, “Commitments and Contingencies - Fibrek acquisition,” for more information. |
Closure Costs, Impairment and_2
Closure Costs, Impairment and Other Related Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Closure Costs, Impairment and Other Related Charges | Closure costs, impairment and other related charges for the year ended December 31, 2021, were comprised of the following: (In millions) Impairment of Assets Severance and Other Costs Total Pulp and Paper mill at Calhoun (Tennessee) $ 124 $ 18 $ 142 Other — 2 2 $ 124 $ 20 $ 144 On December 16, 2021, the Company announced the indefinite idling of pulp and paper operations at our Calhoun mill given the continuing accumulation of significant financial losses, even with strong market conditions for both the pulp and uncoated freesheet paper it manufactured. Tissue remains in operation. Following the announcement, new long-lived asset groups were identified at that site, which were tested for impairment as the indefinite idling of pulp and paper operations was considered an impairment indicator for these assets. As a result, we recognized an impairment charge of $124 million in relation to the pulp and paper long-lived asset group as these assets, consisting of fixed assets, will not generate future cash flows. The impairment charge was calculated as being the difference between the net carrying value of the fixed assets and their fair value. The fair value of the fixed assets was estimated using the market approach, by reference to estimated selling prices for similar assets, less costs to sell. This fair value measurement is considered a Level 3 measurement due to the significance of their unobservable inputs. We also recognized additional provisions for severance and other costs of $13 million as well as write-off of other assets of $5 million. In 2022, we expect to incur additional closure costs of approximately $32 million, mainly related to decommissioning. The pulp and paper operations ceased at the beginning of 2022. An impairment test was also performed for the other asset groups at Calhoun. As the undiscounted cash flows exceeded the carrying value of the respective asset groups by a substantial margin, no impairment was recognized. The remaining useful life of the assets were reassessed and remained unchanged as the indefinite idling of the pulp and paper operations has no impact on the economic life of our other assets. Closure costs, impairment and other related charges for the year ended December 31, 2020, were comprised of the following: (In millions) Accelerated Depreciation Severance and Other Costs Total Paper mill at Amos (Quebec) $ 12 $ 5 $ 17 Paper mill at Baie-Comeau (Quebec) 26 12 38 Other — (2) (2) $ 38 $ 15 $ 53 Due to the overall decrease in demand for newsprint, accelerated by the economic context surrounding the COVID-19 pandemic, the Amos and Baie-Comeau paper mills had been temporarily idled since April 2020. As a result, we had reassessed the remaining useful lives of the fixed assets and recognized an accelerated depreciation charge of $38 million. We also recognized additional provisions for severance and other costs of $17 million, of which $8 million was paid in 2021. In March 2021, the Company announced their indefinite idling. Closure costs, impairment and other related charges for the year ended December 31, 2019, were comprised of the following: (In millions) Accelerated Depreciation Severance and Other Costs Total Indefinite idling Paper mill at Augusta (Georgia) (1) $ 8 $ 10 $ 18 (1) A total amount of $4 million of severance and other costs was paid prior to 2021. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss by Component (Net of Tax) | The change in our accumulated other comprehensive loss by component (net of tax) for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) Unamortized Prior Service Credits (Costs) Unamortized Actuarial Losses Foreign Currency Translation Total Balance as of December 31, 2018 $ 28 $ (971) $ (7) $ (950) Other comprehensive (loss) income before reclassifications — (240) 1 (239) Amounts reclassified from accumulated other comprehensive loss (1) (12) 22 — 10 Net current period other comprehensive (loss) income (12) (218) 1 (229) Balance as of December 31, 2019 16 (1,189) (6) (1,179) Other comprehensive loss before reclassifications — (185) — (185) Amounts reclassified from accumulated other comprehensive loss (1) (17) 67 — 50 Net current period other comprehensive loss (17) (118) — (135) Balance as of December 31, 2020 (1) (1,307) (6) (1,314) Other comprehensive income before reclassifications — 201 — 201 Amounts reclassified from accumulated other comprehensive loss (1) (4) 55 — 51 Net current period other comprehensive (loss) income (4) 256 — 252 Balance as of December 31, 2021 $ (5) $ (1,051) $ (6) $ (1,062) (1) See the table below for details about these reclassifications. |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss | The reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019, were comprised of the following: (In millions) 2021 2020 2019 Affected Line in the Consolidated Statements of Operations Unamortized Prior Service Costs or Credits Amortization of prior service costs or credits $ (3) $ (4) $ (11) Non-operating pension and other postretirement benefit credits (1) Curtailment gain (1) (13) (1) Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above — — — Income tax provision Net of tax (4) (17) (12) Unamortized Actuarial Losses Amortization of actuarial losses 72 57 28 Non-operating pension and other postretirement benefit credits (1) Settlement loss — 28 1 Non-operating pension and other postretirement benefit credits (1) Other items — 3 — Non-operating pension and other postretirement benefit credits (1) Income tax effect of the above (17) (21) (7) Income tax provision Net of tax 55 67 22 Total Reclassifications $ 51 $ 50 $ 10 (1) These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 16, “Pension and Other Postretirement Benefit Plans.” |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Net Income (Loss) per Share | The reconciliation of the basic and diluted net income (loss) per share for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) attributable to Resolute Forest Products Inc. $ 307 $ 10 $ (47) Denominator: Weighted-average number of Resolute Forest Products Inc. common shares outstanding 79.5 86.1 91.4 Dilutive impact of nonvested stock unit awards and stock options 0.8 0.3 — Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding 80.3 86.4 91.4 Net income (loss) per share attributable to Resolute Forest Products Inc. common shareholders: Basic $ 3.87 $ 0.12 $ (0.51) Diluted $ 3.83 $ 0.12 $ (0.51) |
Schedule of Outstanding Weighted-Average Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs | The weighted-average number of outstanding stock options and nonvested equity-classified RSUs, DSUs and PSUs (collectively, “ stock unit awards ”) that were excluded from the calculation of diluted net income (loss) per share, as their impact would have been antidilutive, for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) 2021 2020 2019 Stock options 0.4 0.9 1.0 Stock unit awards — 0.6 2.1 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Raw materials $ 159 $ 132 Work in process 57 46 Finished goods 148 120 Mill stores and other supplies 146 164 $ 510 $ 462 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets, Net | Fixed assets, net as of December 31, 2021 and 2020, were comprised of the following: (Dollars in millions) Estimated Useful Lives (Years) 2021 2020 Land and land improvements 5 – 20 $ 51 $ 52 Buildings 10 – 40 334 328 Machinery and equipment (1) 2 – 25 2,127 2,128 Hydroelectric power plants 10 – 40 301 301 Timberlands, and timberlands improvements and roads 10 – 20 142 136 Construction in progress 67 100 3,022 3,045 Less: Accumulated depreciation (1,752) (1,604) $ 1,270 $ 1,441 (1) Internal-use software included in fixed assets, net as of December 31, 2021 and 2020, was as follows: (In millions) 2021 2020 Machinery and equipment $ 128 $ 124 Less: Accumulated depreciation (104) (90) $ 24 $ 34 Depreciation expense related to internal-use software is estimated to be $11 million in 2022, $6 million in 2023, $3 million in 2024, $2 million in 2025 and $2 million in 2026. |
Amortizable Intangible Assets_2
Amortizable Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Schedule of Amortizable Intangible Assets, Net | Amortizable intangible assets, net as of December 31, 2021 and 2020, were comprised of the following: 2021 2020 (Dollars in millions) Estimated Gross Accumulated Net Gross Accumulated Net Water rights (1) 10 – 40 $ 19 $ 10 $ 9 $ 19 $ 9 $ 10 Energy contracts 15 – 25 52 23 29 52 21 31 Customer relationships (2) 10 21 4 17 23 3 20 Other 2 — 2 2 — 2 $ 94 $ 37 $ 57 $ 96 $ 33 $ 63 (1) In order to operate our hydroelectric generation and transmission network, we draw water from various rivers in Quebec. For some of our facilities, the use of such government-owned waters is governed by water power agreements with the province of Quebec, which set out the terms, conditions, and fees (as applicable). In some cases, the agreements are contingent on the continued operation of the related paper mills and a minimum level of capital spending in the region. For our other facilities, the right to generate hydroelectricity stems from our ownership of the riverbed on which these facilities are located. (2) In connection with our acquisition of the U.S. Sawmill Business, we identified amortizable intangible assets primarily related to customer relationships. See Note 3, “Business Acquisition” for additional information. |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense for the years ended December 31, 2021, 2020 and 2019 were as follows: (In millions) 2021 2020 2019 Operating lease cost $ 13 $ 13 $ 13 Variable lease cost (1) $ 20 $ 20 $ 21 (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: December 31, December 31, Weighted-average remaining operating lease term (in years) 11.8 10.8 Weighted-average operating lease discount rate 3.8 % 4.6 % |
Schedule of Supplemental Cash Flow Information related to Leases | Years ended December 31, (In millions) 2021 2020 2019 Operating cash flow payments for operating lease liabilities $ 11 $ 12 $ 11 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 3 $ 8 $ 4 |
Schedule of Maturities of Operating Lease Liabilities | The maturities of operating lease liabilities as of December 31, 2021, were as follows: (In millions) Operating Leases 2022 $ 10 2023 8 2024 7 2025 7 2026 6 2027 and thereafter 36 Total lease payments 74 Less: imputed interest 15 Total operating lease liabilities $ 59 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Countervailing duty cash deposits on softwood lumber (1) $ 339 $ 194 Anti-dumping duty cash deposits on softwood lumber (1) 58 49 Equity method investments 22 14 Restricted cash 40 42 Other 25 21 $ 484 $ 320 (1) See Note 18, “Commitments and Contingencies” for more information. |
Accounts Payable and Other (Tab
Accounts Payable and Other (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other | Accounts payable and other as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Trade accounts payable $ 262 $ 251 Accrued compensation 89 76 Accrued interest 6 4 Pension and other postretirement benefit obligations 14 14 Accrued provision related to Fibrek litigation (Note 18) 21 — Income and other taxes payable 4 5 Other 25 19 $ 421 $ 369 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, including Current Portion | Long-term debt, including current portion, as of December 31, 2021 and 2020, was comprised of the following: (In millions) 2021 2020 4.875% senior unsecured notes due 2026: Principal amount $ 300 $ — Deferred financing costs (5) — Total 4.875% senior unsecured notes due 2026 295 — 5.875% senior unsecured notes due 2023: Principal amount — 375 Deferred financing costs — (2) Unamortized discount — (1) Total 5.875% senior unsecured notes due 2023 — 372 Senior secured credit facility - Term loans due 2030 — 180 Finance lease obligations 6 9 Other debt 1 — Total debt 302 561 Less: Current portion of finance lease obligations and other debt (2) (2) Long-term debt, net of current portion $ 300 $ 559 |
Schedule of Debt Redemption Prices | On or after March 1, 2023, we may redeem the notes at our option, in whole at any time or in part from time to time, at redemption prices equal to a percentage of the principal amount plus accrued and unpaid interest, as follows: Year (beginning March 1) Redemption Price 2023 102.438 % 2024 101.219 % 2025 and thereafter 100.000 % |
Schedule of Aggregate Maturities of Long-Term Debt | The aggregate maturities of long-term debt as of December 31, 2021, were as follows: (In millions) Long-term debt 2022 $ 2 2023 1 2024 1 2025 1 2026 296 2027 1 $ 302 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligations | The changes in our pension and OPEB benefit obligations and plan assets for the years ended December 31, 2021 and 2020, and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2021 2020 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,246 $ 5,188 $ 136 $ 147 Service cost 16 14 1 1 Interest cost 133 151 3 4 Actuarial (gain) loss (168) 265 (7) (6) Participant contributions 6 7 2 2 Special termination benefits — 3 — — Curtailments (7) (2) (1) (1) Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 31 79 1 2 Benefit obligations as of end of year 4,897 5,246 122 136 Change in plan assets: Fair value of plan assets as of beginning of year 3,806 3,862 — — Actual return on plan assets 296 241 — — Employer contributions 86 91 11 11 Participant contributions 6 7 2 2 Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 22 64 — — Fair value of plan assets as of end of year 3,856 3,806 — — Funded status as of end of year $ (1,041) $ (1,440) $ (122) $ (136) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 2 $ — $ — $ — Accounts payable and other (3) (3) (11) (11) Pension and OPEB obligations (1,040) (1,437) (111) (125) Net obligations recognized $ (1,041) $ (1,440) $ (122) $ (136) |
Schedule of Change in Plan Assets | The changes in our pension and OPEB benefit obligations and plan assets for the years ended December 31, 2021 and 2020, and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2021 2020 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,246 $ 5,188 $ 136 $ 147 Service cost 16 14 1 1 Interest cost 133 151 3 4 Actuarial (gain) loss (168) 265 (7) (6) Participant contributions 6 7 2 2 Special termination benefits — 3 — — Curtailments (7) (2) (1) (1) Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 31 79 1 2 Benefit obligations as of end of year 4,897 5,246 122 136 Change in plan assets: Fair value of plan assets as of beginning of year 3,806 3,862 — — Actual return on plan assets 296 241 — — Employer contributions 86 91 11 11 Participant contributions 6 7 2 2 Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 22 64 — — Fair value of plan assets as of end of year 3,856 3,806 — — Funded status as of end of year $ (1,041) $ (1,440) $ (122) $ (136) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 2 $ — $ — $ — Accounts payable and other (3) (3) (11) (11) Pension and OPEB obligations (1,040) (1,437) (111) (125) Net obligations recognized $ (1,041) $ (1,440) $ (122) $ (136) |
Schedule of Amounts Recognized in Consolidated Balance Sheets | The changes in our pension and OPEB benefit obligations and plan assets for the years ended December 31, 2021 and 2020, and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2021 2020 Change in benefit obligations: Benefit obligations as of beginning of year $ 5,246 $ 5,188 $ 136 $ 147 Service cost 16 14 1 1 Interest cost 133 151 3 4 Actuarial (gain) loss (168) 265 (7) (6) Participant contributions 6 7 2 2 Special termination benefits — 3 — — Curtailments (7) (2) (1) (1) Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 31 79 1 2 Benefit obligations as of end of year 4,897 5,246 122 136 Change in plan assets: Fair value of plan assets as of beginning of year 3,806 3,862 — — Actual return on plan assets 296 241 — — Employer contributions 86 91 11 11 Participant contributions 6 7 2 2 Settlements (15) (118) — — Benefits paid (345) (341) (13) (13) Effect of foreign currency exchange rate changes 22 64 — — Fair value of plan assets as of end of year 3,856 3,806 — — Funded status as of end of year $ (1,041) $ (1,440) $ (122) $ (136) Amounts recognized in our Consolidated Balance Sheets consisted of: Other assets $ 2 $ — $ — $ — Accounts payable and other (3) (3) (11) (11) Pension and OPEB obligations (1,040) (1,437) (111) (125) Net obligations recognized $ (1,041) $ (1,440) $ (122) $ (136) |
Schedule of Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans | The components of net periodic benefit cost (credit) relating to our pension and OPEB plans for the years ended December 31, 2021, 2020 and 2019, were as follows: Pension Plans OPEB Plans (In millions) 2021 2020 2019 2021 2020 2019 Interest cost $ 133 $ 151 $ 181 $ 3 $ 4 $ 6 Expected return on plan assets (215) (226) (251) — — — Amortization of prior service costs (credits) 1 — — (4) (4) (11) Amortization of actuarial losses (gains) 78 63 34 (6) (6) (6) Non-operating credits (3) (12) (36) (7) (6) (11) Service cost 16 14 15 1 1 — Net periodic benefit costs (credits) before special events 13 2 (21) (6) (5) (11) Curtailments, settlements and other (gains) losses (1) (1) 32 — — (14) — $ 12 $ 34 $ (21) $ (6) $ (19) $ (11) (1) Includes a settlement loss of $28 million for the year ended December 31, 2020, resulting from the wind-up of the Thorold pension plan . |
Schedule of Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | The weighted-average assumptions used to determine the benefit obligations at the measurement dates (each December 31) and the net periodic benefit costs (credits) for the years ended December 31, 2021, 2020 and 2019, were as follows: Pension Plans OPEB Plans 2021 2020 2019 2021 2020 2019 Benefit obligations: Discount rate 2.8 % 2.5 % 3.0 % 2.9 % 2.5 % 3.1 % Rate of compensation increase 2.1 % 2.1 % 2.1 % Net periodic benefit cost (credit): Discount rate 2.5 % 3.0 % 3.8 % 2.5 % 3.1 % 3.9 % Expected return on assets 5.7 % 6.0 % 6.5 % Rate of compensation increase 2.1 % 2.1 % 2.1 % |
Schedule of Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations | The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2021 and 2020, were as follows: 2021 2020 Domestic Plan Foreign Plans Domestic Plan Foreign Plans Health care cost trend rate assumed for next year 7.0 % 4.8 % 7.2 % 4.8 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2033 2033 2033 2033 |
Schedule of Fair Value of Plan Assets Held by Pension Plans | The fair value of plan assets held by our pension plans as of December 31, 2021, was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 646 $ 646 $ — $ — Non-U.S. companies 872 872 — — Debt securities: Corporate and government securities 1,197 29 1,168 — Asset-backed securities 87 — 87 — Cash and cash equivalents 117 117 — — Certain insurance contracts (1) 314 — — 314 Other plan assets, net (4) — (4) — Total before investments measured at NAV $ 3,229 $ 1,664 $ 1,251 $ 314 Investments measured at NAV 627 $ 3,856 (1) The Level 3 plan assets were purchased during the year ended December 31, 2021. There were no Level 3 plan asset balances during the year ended December 31, 2020. The fair value of plan assets held by our pension plans as of December 31, 2020, was as follows: (In millions) Total Level 1 Level 2 Level 3 Equity securities: U.S. companies $ 737 $ 737 $ — $ — Non-U.S. companies 1,197 1,197 — — Debt securities: Corporate and government securities 1,086 36 1,050 — Asset-backed securities 148 — 148 — Cash and cash equivalents 179 179 — — Other plan assets, net 9 — 9 — Total before investments measured at NAV $ 3,356 $ 2,149 $ 1,207 $ — Investments measured at NAV 450 $ 3,806 |
Schedule of Expected Benefit Payments and Future Contributions | As of December 31, 2021, benefit payments expected to be paid over the next 10 years are as follows: (In millions) Pension Plans (1) OPEB Plans 2022 $ 347 $ 11 2023 $ 330 $ 10 2024 $ 323 $ 10 2025 $ 316 $ 9 2026 $ 308 $ 9 2027 - 2031 $ 1,425 $ 38 (1) Benefit payments are expected to be paid from the plans’ net assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes by Taxing Jurisdiction | (Loss) income before income taxes by taxing jurisdiction for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) 2021 2020 2019 U.S. $ (229) $ (126) $ (205) Foreign 733 187 216 $ 504 $ 61 $ 11 |
Schedule of Income Tax (Provision) Benefit | The income tax provision for the years ended December 31, 2021, 2020 and 2019, was comprised of the following: (In millions) 2021 2020 2019 U.S. Federal and State: Current $ (3) $ — $ — Deferred — — — (3) — — Foreign: Current — — — Deferred (192) (51) (58) (192) (51) (58) Total: Current (3) — — Deferred (192) (51) (58) $ (195) $ (51) $ (58) |
Schedule of 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 years ended December 31, 2021, 2020 and 2019, as a result of the following: (In millions) 2021 2020 2019 Income before income taxes $ 504 $ 61 $ 11 Income tax provision: Expected income tax provision (106) (13) (2) Changes resulting from: Valuation allowance (1) 54 (11) (43) Foreign exchange (3) (6) 2 U.S. tax on non-U.S. earnings (115) (23) (7) State income taxes, net of federal income tax benefit 10 6 7 Foreign tax rate differences (38) (10) (11) Other, net (2) 3 6 (4) $ (195) $ (51) $ (58) (1) During 2021, we used $54 million of deferred income tax assets that were fully reserved to offset the tax implications relating to the GILTI inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income, in excess of current year U.S. operating losses. During 2020 and 2019, we recorded an increase to our valuation allowance of $11 million and $43 million, respectively, related to our U.S. operations. (2) During 2020, we recorded a $4 million adjustment related to the settlement of an insurance claim in connection with our acquisition of Atlas. |
Schedule of Deferred Income Taxes | Net deferred income tax assets as of December 31, 2021 and 2020, were comprised of the following: (In millions) 2021 2020 Fixed assets $ (33) $ (57) Operating lease right-of-use assets (14) (15) Investment in partnership (26) (20) Other (8) (5) Deferred income tax liabilities (81) (97) Fixed assets 178 297 Pension and OPEB plans 300 408 Net operating loss carryforwards and deduction limitation 572 660 Net capital loss carryforwards 41 41 Undeducted research and development expenditures 145 195 Tax credit carryforwards 99 98 Operating lease liabilities 14 15 Goodwill 27 28 Other 69 44 Deferred income tax assets 1,445 1,786 Valuation allowance (711) (774) Net deferred income tax assets $ 653 $ 915 Amounts recognized in our Consolidated Balance Sheets consisted of: Deferred income tax assets $ 653 $ 915 |
Schedule of Balance of Tax Attributes and Dates of Expiration | The balance of tax attributes and their dates of expiration as of December 31, 2021, were as follows: (In millions) Related Year of Net operating loss and deduction limitation carryforwards: U.S. federal: $1,618 $ 340 (1) 2029 – 2037 U.S. federal and deduction limitation: $506 106 (1) Indefinite U.S. state: $2,109 107 (1) 2022 – 2041 U.S. state and deduction limitation: $253 8 (1) Indefinite Canadian federal and provincial (excluding Quebec): $24 4 2038 Quebec: $61 6 2028 – 2039 Other 1 Indefinite $ 572 Net capital loss carryforwards: U.S. federal and state: $23 $ 5 (1) 2025 Canadian federal and provincial (excluding Quebec): $118 31 Indefinite Quebec: $54 5 Indefinite $ 41 Undeducted research and development expenditures: Canadian federal and provincial (excluding Quebec): $400 $ 69 Indefinite Quebec: $843 76 Indefinite $ 145 Tax credit carryforwards: Canadian research and development, and other $ 80 2022 – 2041 U.S. state and other 19 (1) 2022 – 2036 $ 99 (1) As of December 31, 2021, we had a full valuation allowance against our U.S. operations net deferred income tax assets. |
Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended December 31, 2021 and 2020: (In millions) 2021 2020 Beginning of year $ 28 $ 29 (Decrease) increase resulting from: Settlements with taxing authorities (2) (2) Positions taken in the prior period — 1 End of year $ 26 $ 28 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Unrecorded Unconditional Purchase Obligations Disclosure | As of December 31, 2021, these commitments were as follows: (In millions) Commitments (1) 2022 $ 31 2023 17 2024 13 2025 17 2026 6 2027 and thereafter 21 $ 105 (1) Includes energy purchase obligations of $31 million through 2027 for certain of our tissue, pulp and paper mills. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Equity Incentive Plan | The share-based compensation expense under the Incentive Plans for the years ended December 31, 2021, 2020 and 2019, was as follows: 2021 2020 2019 Equity-based awards $ 8 $ 4 $ 4 Liability-based awards 30 10 (2) $ 38 $ 14 $ 2 |
Schedule of Stock Options Activity | The activity of outstanding stock options for the year ended December 31, 2021, was as follows: Number of Weighted- Weighted- Balance as of December 31, 2020 912,901 $ 16.09 1.8 Exercised (118,485) 11.80 Forfeited (151,442) 14.40 Expired (253,988) 20.76 Balance as of December 31, 2021 388,986 $ 15.00 1.7 Exercisable as of December 31, 2021 388,986 $ 15.00 1.7 |
Schedule of RSU and DSU Activity | The activity of nonvested RSUs and DSUs for the year ended December 31, 2021, was as follows: Number of Units Equity-Based Awards Liability-Based Awards Total Weighted- Balance as of December 31, 2020 1,279,015 1,128,264 2,407,279 $ 5.14 Granted 354,311 554,771 909,082 $ 10.40 Vested (750,452) (747,647) (1,498,099) $ 6.38 Forfeited — (101,457) (101,457) $ 5.23 Balance as of December 31, 2021 882,874 833,931 1,716,805 $ 6.84 |
Schedule of Fair Value Assumptions of PSUs | The fair value of PSUs granted was estimated using a Monte Carlo simulation model, using the following assumptions: 2021 2020 2019 Expected volatility (1) 76% - 82% 57% - 77% 56% - 58% Risk-free interest rate 0.06%- 0.96% 0.11% - 2.99% 1.58% - 1.70% |
Schedule of PSU Activity | The activity of nonvested PSUs for the year ended December 31, 2021, was as follows: Number of Units Equity-Based Awards Liability-Based Awards Total Weighted- Balance as of December 31, 2020 1,795,403 1,311,327 3,106,730 $ 6.05 Granted 402,306 333,722 736,028 $ 10.60 Vested (387,616) (433,418) (821,034) $ 8.20 Performance adjustment 45,199 52,201 97,400 $ 8.58 Forfeited — (114,367) (114,367) $ 5.48 Balance as of December 31, 2021 1,855,292 1,149,465 3,004,757 $ 6.69 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Information about certain segment data for the years ended December 31, 2021, 2020 and 2019, was as follows: (In millions) Market Pulp (1) Tissue Wood Products (2) Paper Segment Corporate Total Sales 2021 $ 813 $ 161 $ 1,718 $ 972 $ 3,664 $ — $ 3,664 2020 $ 668 $ 173 $ 1,025 $ 934 $ 2,800 $ — $ 2,800 2019 $ 797 $ 165 $ 616 $ 1,345 $ 2,923 $ — $ 2,923 Depreciation and amortization 2021 $ 24 $ 19 $ 42 $ 62 $ 147 $ 17 $ 164 2020 $ 24 $ 18 $ 43 $ 69 $ 154 $ 15 $ 169 2019 $ 23 $ 18 $ 34 $ 72 $ 147 $ 20 $ 167 Operating income (loss) 2021 $ 99 $ (24) $ 772 $ (19) $ 828 $ (244) $ 584 2020 $ (1) $ (1) $ 276 $ (46) $ 228 $ (129) $ 99 2019 $ 39 $ (16) $ (6) $ 82 $ 99 $ (82) $ 17 Capital expenditures 2021 $ 23 $ 4 $ 50 $ 24 $ 101 $ 11 $ 112 2020 $ 15 $ 8 $ 26 $ 23 $ 72 $ 6 $ 78 2019 $ 29 $ 8 $ 23 $ 43 $ 103 $ 10 $ 113 (1) Inter-segment sales of $31 million, $28 million and $36 million, were excluded from market pulp sales for the years ended December 31, 2021, 2020 and 2019, respectively. These sales were transacted either at the lowest market price of the previous month or cost. (2) Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $65 million, $28 million and $22 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Schedule of Sales by Country | Sales by country for the years ended December 31, 2021, 2020 and 2019, were as follows: (In millions) 2021 2020 2019 U.S. $ 2,591 $ 2,038 $ 2,026 Foreign countries: Canada 764 463 405 Mexico 60 63 87 Other countries 249 236 405 1,073 762 897 $ 3,664 $ 2,800 $ 2,923 |
Schedule of Long-Lived Assets by Country | Long-lived assets by country as of December 31, 2021 and 2020, were as follows: (In millions) 2021 2020 U.S. $ 518 $ 666 Canada 863 898 $ 1,381 $ 1,564 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Nature of Operations (Details) | Dec. 31, 2021countrysite |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries products are marketed in (approximate) | country | 60 |
Number of manufacturing facilities (approximate) | site | 40 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Summary of Less Than Wholly-Owned Consolidated Subsidiaries (Details) - Forest Products Mauricie L.P. | Dec. 31, 2021 |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Resolute Forest Products Ownership (as a percent) | 93.20% |
Coopérative Forestière du Haut Saint-Maurice | |
Consolidation, Less than Wholly Owned Subsidiary, Ownership Interests [Line Items] | |
Partner Ownership (as a percent) | 6.80% |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Business combination, acquisition related costs | $ 3 | ||
U.S. Sawmill Business | |||
Business Acquisition [Line Items] | |||
Consideration transferred in business acquisition | $ 173 | ||
Business combination, revenue of acquiree since acquisition date, actual | $ 137 | ||
Business combination, earnings or loss of acquiree since acquisition date, actual | $ 43 |
Business Acquisition - Purchase
Business Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions | Feb. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Goodwill | $ 31 | $ 31 | |
U.S. Sawmill Business | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||
Current assets | $ 19 | ||
Fixed assets | 114 | ||
Amortizable intangible assets | 21 | ||
Operating lease right-of-use assets | 2 | ||
Goodwill | 31 | ||
Total assets acquired and goodwill | 187 | ||
Current liabilities | 11 | ||
Long-term debt, net of current portion | 2 | ||
Operating lease liabilities, net of current portion | 1 | ||
Total liabilities assumed | 14 | ||
Net assets acquired | 173 | ||
Fair value of consideration transferred | 173 | ||
Business combination, cash and cash equivalents acquired | $ 1 | ||
Business combination, acquired amortizable intangible assets, weighted average useful life | 10 years | ||
Business combination, fair value discount rate for acquired intangible assets (as a percent) | 12.60% |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Information (Details) - U.S. Sawmill Business - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Sales | $ 2,808 | $ 3,021 |
Net income (loss) attributable to Resolute Forest Products Inc. | $ 13 | $ (70) |
Other Expense, Net - Summary (D
Other Expense, Net - Summary (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2019CAD ($) | |
Other Income and Expenses [Abstract] | |||||
Foreign exchange loss | $ (2) | $ (4) | $ (12) | ||
Loss on commodity contracts | (85) | (22) | 0 | ||
Income from equity method investments | 19 | 8 | 10 | ||
Insurance recovery | 0 | 15 | 0 | ||
Provision related to a litigation | (1) | 0 | (23) | ||
Miscellaneous (expense) income | (1) | (1) | 3 | ||
Other income (expense), net | (70) | $ (4) | $ (22) | ||
Legal indemnity and interest costs | $ 24 | $ 30 | $ 30 |
Closure Costs, Impairment and_3
Closure Costs, Impairment and Other Related Charges - Summary (Details) - USD ($) $ in Millions | Dec. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of assets | $ 124 | |||||
Accelerated depreciation | $ 38 | |||||
Severance and other costs | $ 13 | 20 | 15 | |||
Total | 144 | 53 | $ 18 | |||
Write-off of other assets | 5 | |||||
Expected decommissioning costs in 2022 | 32 | $ 32 | ||||
Pulp and Paper mill at Calhoun (Tennessee) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of assets | $ 124 | 124 | ||||
Severance and other costs | 18 | |||||
Total | 142 | |||||
Paper mill at Amos (Quebec) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accelerated depreciation | 12 | |||||
Severance and other costs | 5 | |||||
Total | 17 | |||||
Additional provisions for severance and other costs | 8 | $ 17 | ||||
Paper mill at Baie-Comeau (Quebec) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accelerated depreciation | 26 | |||||
Severance and other costs | 12 | |||||
Total | 38 | |||||
Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment of assets | 0 | |||||
Accelerated depreciation | 0 | |||||
Severance and other costs | 2 | (2) | ||||
Total | $ 2 | $ (2) | ||||
Paper mill at Augusta (Georgia) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accelerated depreciation | 8 | |||||
Severance and other costs | 10 | $ 4 | ||||
Total | $ 18 |
Net Gain on Disposition of As_2
Net Gain on Disposition of Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Net gain on disposition of assets | $ 0 | $ 11 | $ 2 |
Disposition of assets | $ 1 | 14 | $ 3 |
Paper mill at Augusta (Georgia) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Net gain on disposition of assets | 9 | ||
Consideration received from disposition of assets | 10 | ||
Paper mill at Thorold (Ontario) | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Net gain on disposition of assets | 2 | ||
Disposition of assets | 4 | ||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Net gain on disposition of assets | $ 11 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Income (Loss) by Component (Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | $ 1,082 | $ 1,235 | $ 1,535 |
Other comprehensive (loss) income before reclassifications | 201 | (185) | (239) |
Amounts reclassified from accumulated other comprehensive loss | 51 | 50 | 10 |
Other comprehensive income (loss), net of tax | 252 | (135) | (229) |
Balance at end of period | 1,517 | 1,082 | 1,235 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (1,314) | (1,179) | (950) |
Other comprehensive income (loss), net of tax | 252 | (135) | (229) |
Balance at end of period | (1,062) | (1,314) | (1,179) |
Unamortized Prior Service Credits (Costs) | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (1) | 16 | 28 |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (4) | (17) | (12) |
Other comprehensive income (loss), net of tax | (4) | (17) | (12) |
Balance at end of period | (5) | (1) | 16 |
Unamortized Actuarial Losses | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (1,307) | (1,189) | (971) |
Other comprehensive (loss) income before reclassifications | 201 | (185) | (240) |
Amounts reclassified from accumulated other comprehensive loss | 55 | 67 | 22 |
Other comprehensive income (loss), net of tax | 256 | (118) | (218) |
Balance at end of period | (1,051) | (1,307) | (1,189) |
Foreign Currency Translation | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (6) | (6) | (7) |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 1 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 0 | 0 | 1 |
Balance at end of period | $ (6) | $ (6) | $ (6) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax provision (benefit) | $ (195) | $ (51) | $ (58) |
Total reclassification, net of tax | 307 | 10 | (47) |
Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassification, net of tax | 51 | 50 | 10 |
Unamortized Prior Service Credits (Costs) | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax provision (benefit) | 0 | 0 | 0 |
Total reclassification, net of tax | (4) | (17) | (12) |
Unamortized Prior Service Credits (Costs) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Non-operating pension and other postretirement benefit credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of prior service costs or credits | (3) | (4) | (11) |
Curtailment gain | (1) | (13) | (1) |
Unamortized Actuarial Losses | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other items | 0 | 3 | 0 |
Income tax provision (benefit) | (17) | (21) | (7) |
Total reclassification, net of tax | 55 | 67 | 22 |
Unamortized Actuarial Losses | Amounts Reclassified from Accumulated Other Comprehensive Loss | Non-operating pension and other postretirement benefit credits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of actuarial losses | 72 | 57 | 28 |
Settlement loss | $ 0 | $ 28 | $ 1 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Weighted-Average Outstanding Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Resolute Forest Products Inc. | $ 307 | $ 10 | $ (47) |
Basic weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 79.5 | 86.1 | 91.4 |
Dilutive impact of nonvested stock incentive awards (shares) | 0.8 | 0.3 | 0 |
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares) | 80.3 | 86.4 | 91.4 |
Basic (USD per share) | $ 3.87 | $ 0.12 | $ (0.51) |
Diluted (USD per share) | $ 3.83 | $ 0.12 | $ (0.51) |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 0.4 | 0.9 | 1 |
Stock unit awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0.6 | 2.1 |
Inventories, Net - Summary (Det
Inventories, Net - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 159 | $ 132 |
Work in process | 57 | 46 |
Finished goods | 148 | 120 |
Mill stores and other supplies | 146 | 164 |
Inventories, net | $ 510 | $ 462 |
Inventories, Net - Narrative (D
Inventories, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Inventory write-downs related to closures | $ 29 | $ 25 | $ 13 |
Fixed Assets, Net - Components
Fixed Assets, Net - Components of Fixed Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 3,022 | $ 3,045 |
Less: Accumulated depreciation | (1,752) | (1,604) |
Fixed assets, net | 1,270 | 1,441 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 51 | 52 |
Land and land improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Land and land improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 20 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 334 | 328 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 40 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 2,127 | 2,128 |
Machinery and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 2 years | |
Machinery and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 25 years | |
Hydroelectric power plants | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 301 | 301 |
Hydroelectric power plants | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Hydroelectric power plants | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 40 years | |
Timberlands, and timberlands improvements and roads | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 142 | 136 |
Timberlands, and timberlands improvements and roads | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Timberlands, and timberlands improvements and roads | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives (Years) | 20 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 67 | 100 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 128 | 124 |
Less: Accumulated depreciation | (104) | (90) |
Fixed assets, net | 24 | $ 34 |
Estimated depreciation expense in 2022 | 11 | |
Estimated depreciation expense in 2023 | 6 | |
Estimated depreciation expense in 2024 | 3 | |
Estimated depreciation expense in 2025 | 2 | |
Estimated depreciation expense in 2026 | $ 2 |
Fixed Assets, Net - Narrative (
Fixed Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Impairment charge | $ 124 | ||
Accelerated depreciation | $ 38 | ||
Depreciation expense | $ 158 | $ 163 | $ 164 |
Amortizable Intangible Assets_3
Amortizable Intangible Assets, Net - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 94 | $ 96 |
Accumulated Amortization | 37 | 33 |
Net | 57 | 63 |
Water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 19 | 19 |
Accumulated Amortization | 10 | 9 |
Net | $ 9 | 10 |
Water rights | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Water rights | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 40 years | |
Energy contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 52 | 52 |
Accumulated Amortization | 23 | 21 |
Net | $ 29 | 31 |
Energy contracts | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 15 years | |
Energy contracts | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 25 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives (Years) | 10 years | |
Gross Carrying Value | $ 21 | 23 |
Accumulated Amortization | 4 | 3 |
Net | 17 | 20 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2 | 2 |
Accumulated Amortization | 0 | 0 |
Net | $ 2 | $ 2 |
Amortizable Intangible Assets_4
Amortizable Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense related to amortizable intangible assets | $ 6 | $ 6 | $ 3 |
Estimated amortization expense in 2022 | 5 | ||
Estimated amortization expense in 2023 | 4 | ||
Estimated amortization expense in 2024 | 4 | ||
Estimated amortization expense in 2025 | 4 | ||
Estimated amortization expense in 2026 | $ 4 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) | Dec. 31, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term of contracts | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term of contracts | 21 years |
Operating lease renewal term | 15 years |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 13 | $ 13 | $ 13 |
Variable lease cost | $ 20 | $ 20 | $ 21 |
Operating Leases - Supplemental
Operating Leases - Supplemental Balance Sheet Information (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining operating lease term (in years) | 11 years 9 months 18 days | 10 years 9 months 18 days |
Weighted-average operating lease discount rate (as a percent) | 3.80% | 4.60% |
Operating Leases - Supplement_2
Operating Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flow payments for operating lease liabilities | $ 11 | $ 12 | $ 11 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 3 | $ 8 | $ 4 |
Operating Leases - Maturities o
Operating Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 10 |
2023 | 8 |
2024 | 7 |
2025 | 7 |
2026 | 6 |
2027 and thereafter | 36 |
Total lease payments | 74 |
Less: imputed interest | 15 |
Total operating lease liabilities | $ 59 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | |||
Accumulated countervailing duty cash deposits made on softwood lumber exports | $ 339 | $ 194 | |
Accumulated anti-dumping cash deposits made on softwood lumber exports | 58 | 49 | |
Equity method investments | 22 | 14 | |
Restricted cash | 40 | 42 | $ 39 |
Other | 25 | 21 | |
Other assets | $ 484 | $ 320 |
Accounts Payable and Other - Su
Accounts Payable and Other - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 262 | $ 251 |
Accrued compensation | 89 | 76 |
Accrued interest | 6 | 4 |
Pension and other postretirement benefit obligations | 14 | 14 |
Accrued provision related to Fibrek litigation (Note 18) | 21 | 0 |
Income and other taxes payable | 4 | 5 |
Other | 25 | 19 |
Accounts payable and accrued liabilities | $ 421 | $ 369 |
Long-Term Debt - Long Term Debt
Long-Term Debt - Long Term Debt Including Current Portion (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | May 08, 2013 |
Debt Instrument [Line Items] | ||||
Finance lease obligations | $ 6 | $ 9 | ||
Other debt | 1 | 0 | ||
Total debt | 302 | 561 | ||
Less: Current portion of finance lease obligations and other debt | (2) | (2) | ||
Long-term debt, net of current portion | $ 300 | $ 559 | ||
Finance lease obligation, balance sheet [Extensible List] | Long-term debt, net of current portion | Long-term debt, net of current portion | ||
Current portion of finance lease obligation, balance sheet [Extensible List] | Current portion of long-term debt | Current portion of long-term debt | ||
Senior Notes | Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 300 | $ 0 | ||
Deferred financing costs | (5) | 0 | ||
Net carrying amount | 295 | 0 | ||
Interest rate of notes (as a percent) | 4.875% | |||
Senior Notes | Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 0 | 375 | ||
Deferred financing costs | 0 | (2) | ||
Unamortized discount | 0 | (1) | ||
Net carrying amount | 0 | 372 | ||
Interest rate of notes (as a percent) | 5.875% | |||
Secured Debt | Term Loans due 2030 | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 0 | $ 180 |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes (Details) - USD ($) | Feb. 02, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 19, 2021 | Oct. 28, 2019 | Jan. 03, 2019 | Sep. 07, 2016 | May 08, 2013 |
Senior Notes due 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 300,000,000 | ||||||||
Interest rate of notes (as a percent) | 4.875% | ||||||||
Issue price (as a percent) | 100.00% | ||||||||
Fair value of senior notes | $ 300,000,000 | $ 306,000,000 | |||||||
Deferred financing costs | $ 6,000,000 | ||||||||
Redemption price (as a percent) | 101.00% | ||||||||
Senior Notes due 2023 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 600,000,000 | ||||||||
Interest rate of notes (as a percent) | 5.875% | ||||||||
Fair value of senior notes | $ 375,000,000 | $ 375,000,000 | $ 594,000,000 | ||||||
Deferred financing costs | 9,000,000 | ||||||||
Redemption price (as a percent) | 100.00% | ||||||||
Unamortized discount | $ 6,000,000 | ||||||||
Effective interest rate of debt (as a percent) | 6.00% | ||||||||
Debt Instrument, repurchased face amount | $ 225,000,000 | ||||||||
Purchase price to principal amount (as a percent) | 100.00% | ||||||||
Loss on extinguishment of debt | $ 3,000,000 | $ 3,000,000 | |||||||
Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 360,000,000 | $ 185,000,000 | |||||||
Amended Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of debt | $ 360,000,000 |
Long-Term Debt - Redemption Pri
Long-Term Debt - Redemption Price (Details) - Senior Notes - Senior Notes due 2026 | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 101.00% |
2023 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 102.438% |
2024 | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 101.219% |
2025 and thereafter | |
Debt Instrument [Line Items] | |
Redemption price (as a percent) | 100.00% |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) | Apr. 19, 2021USD ($) | Oct. 28, 2019USD ($)day | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Sep. 07, 2016USD ($) |
Senior Secured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 360,000,000 | $ 185,000,000 | ||||
Maximum capitalization ratio (as a percent) | 45.00% | |||||
Minimum collateral coverage ratio | 1.8 | |||||
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 (as a percent) | 10.00% | |||||
Threshold consecutive trading days | day | 2 | |||||
Senior Secured Credit Facility | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 180,000,000 | 46,000,000 | ||||
Delay draw period of debt instrument | 3 years | |||||
Repayment of debt | $ 46,000,000 | |||||
Senior Secured Credit Facility | Secured Debt | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 180,000,000 | |||||
Debt instrument, term | 10 years | |||||
Senior Secured Credit Facility | Secured Debt | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 6 years | |||||
Senior Secured Credit Facility | Secured Debt | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 10 years | |||||
Senior Secured Credit Facility | Secured Debt | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% | |||||
Senior Secured Credit Facility | Secured Debt | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 2.40% | |||||
Senior Secured Credit Facility | Secured Debt | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 0.50% | |||||
Senior Secured Credit Facility | Secured Debt | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 1.40% | |||||
Senior Secured Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity of credit facility | $ 180,000,000 | $ 139,000,000 | ||||
Debt instrument, term | 6 years | |||||
Proportion of net cash proceeds needed for prepayment (as a percent) | 100.00% | |||||
Line of credit facility, net cash proceeds, in excess amount | $ 25,000,000 | |||||
Available credit facility borrowing capacity | $ 180,000,000 | $ 180,000,000 | ||||
Credit facility borrowings | $ 180,000,000 | |||||
Senior Secured Credit Facility | Line of Credit | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.275% | |||||
Senior Secured Credit Facility | Line of Credit | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.325% | |||||
Senior Secured Credit Facility | Line of Credit | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 2.13% | |||||
Senior Secured Credit Facility | Line of Credit | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% | |||||
Senior Secured Credit Facility | Line of Credit | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 2.00% | |||||
Senior Secured Credit Facility | Line of Credit | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 0.50% | |||||
Senior Secured Credit Facility | Line of Credit | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin applicable to borrowings (as a percent) | 1.00% | |||||
Amended Senior Secured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 360,000,000 | |||||
Amended Senior Secured Credit Facility | Secured Debt | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | $ 180,000,000 | |||||
Delay draw period of debt instrument | 3 years | |||||
Repayment of debt | $ 180,000,000 | |||||
Annual debt payment commencing on the fifth anniversary of each loan's draw date (as a percent) | 5.00% | |||||
Amended Senior Secured Credit Facility | Secured Debt | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.70% | |||||
Amended Senior Secured Credit Facility | Secured Debt | Minimum | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 6 years | |||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.25% | |||||
Amended Senior Secured Credit Facility | Secured Debt | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.10% | |||||
Amended Senior Secured Credit Facility | Secured Debt | Maximum | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 10 years | |||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.35% | |||||
Amended Senior Secured Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity of credit facility | $ 180,000,000 | |||||
Uncommitted ability to increase borrowing capacity, maximum | $ 360,000,000 |
Long-Term Debt - ABL Credit Fac
Long-Term Debt - ABL Credit Facility (Details) | Dec. 15, 2021 | Jan. 21, 2021USD ($) | May 14, 2019 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding to guarantee surety bonds | $ 53,000,000 | ||||
Letters of credit outstanding related to lumber deposits | 83,000,000 | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, term | 5 years | ||||
Maximum borrowing capacity of credit facility | $ 450,000,000 | 500,000,000 | |||
Uncommitted ability to increase borrowing capacity, maximum | $ 500,000,000 | ||||
Borrowing base availability, eligible accounts receivable (as a percent) | 85.00% | ||||
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors (as a percent) | 90.00% | ||||
Borrowing base availability, cost or market value of eligible inventory (as a percent) | 70.00% | ||||
Borrowing base availability, net orderly liquidation value of eligible inventory (as a percent) | 85.00% | ||||
Borrowing base availability, value of eligible cash (as a percent) | 100.00% | ||||
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent (as a percent) | 95.00% | ||||
Maximum leverage ratio | 1.75 | ||||
Credit facility, fronting fee (as a percent) | 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 | $ 40,000,000 | ||||
Minimum excess availability of credit facility before triggering fixed coverage ratio requirement, percentage of the maximum available borrowing amount (as a percent) | 10.00% | ||||
Available credit facility borrowing capacity | $ 307,000,000 | $ 270,000,000 | |||
Letters of credit amount outstanding | 73,000,000 | $ 56,000,000 | |||
Revolving Credit Facility | Canadian Tranche of Senior Secured Asset-Based Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | 250,000,000 | ||||
Increase (decrease) in borrowings | $ 50,000,000 | ||||
Revolving Credit Facility | Swingline | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | 60,000,000 | ||||
Revolving Credit Facility | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 200,000,000 | ||||
Borrowing base availability, eligible accounts receivable (as a percent) | 85.00% | ||||
Borrowing base availability, eligible insured or letter of credit backed accounts and accounts owed by investment grade obligors (as a percent) | 90.00% | ||||
Borrowing base availability, cost or market value of eligible inventory (as a percent) | 70.00% | ||||
Borrowing base availability, net orderly liquidation value of eligible inventory (as a percent) | 85.00% | ||||
Borrowing base availability, value of eligible cash (as a percent) | 100.00% | ||||
Borrowing base availability, value of permitted investments held in deposit accounts controlled solely by the agent (as a percent) | 95.00% | ||||
Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.01% | ||||
Minimum | Base Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 0.00% | ||||
Minimum | Canadian Dollar Offered Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.00% | ||||
Minimum | LIBOR | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.00% | ||||
Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility commitment fee percentage, unutilized commitments (as a percent) | 0.05% | 0.25% | |||
Maximum | Revolving Credit Facility | FIFO Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitments of the ABL Credit Facility convertible to a first-in last-out facility | $ 50,000,000 | ||||
Maximum | Base Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 0.50% | ||||
Maximum | Canadian Dollar Offered Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% | ||||
Maximum | LIBOR | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.50% |
Long-Term Debt - Loan Facility
Long-Term Debt - Loan Facility (Details) - Loan Facility | Nov. 04, 2020CAD ($)draw | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) |
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity of credit facility | $ 220,000,000 | $ 174,000,000 | |||
Maximum borrowing capacity, proportion representing countervailing and anti-dumping duty deposits (as a percent) | 75.00% | ||||
Period of repayment in consecutive monthly installments | 8 years | ||||
Interest-only payment period | 2 years | ||||
Number of draws available | 10 | ||||
Fee rate paid for draw (as a percent) | 0.50% | ||||
Available credit facility borrowing capacity | $ 174,000,000 | $ 220,000,000 | $ 130,000,000 | $ 165,000,000 | |
Canadian Banker's Acceptance Rate | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate margin applicable to borrowings (as a percent) | 1.45% |
Long-Term Debt - Debt Maturitie
Long-Term Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | $ 2 | |
2023 | 1 | |
2024 | 1 | |
2025 | 1 | |
2026 | 296 | |
2027 | 1 | |
Total debt | $ 302 | $ 561 |
Long-Term Debt - Other Debt (De
Long-Term Debt - Other Debt (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Disclosure [Abstract] | |
Length of warehouse capital lease obligation renewal option | 20 years |
Carrying value of assets pledged as collateral for total debt | $ 1,194 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Narrative (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Expense for the defined contribution plans, total | $ 18 | $ 17 | $ 18 | |||
Decrease in pension benefit obligation for sales | 98 | |||||
Total benefit obligations for pension plans with benefit obligations in excess of plan assets | 4,612 | 5,067 | ||||
Total fair value of plan assets for pension plans with benefit obligations in excess of plan assets | 3,570 | 3,627 | ||||
Total accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets | 4,588 | 5,034 | ||||
Total fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 3,570 | 3,627 | ||||
Total accumulated benefit obligations for all pension plans | 4,873 | 5,212 | ||||
Estimated pension contributions in the next fiscal year | $ 77 | |||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations | $ 75 | |||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, payment period | 4 years | 4 years | ||||
Additional contribution per metric ton of capacity reduced due to downtime required under the Canadian pension funding relief regulations, period covering cumulative period of downtime threshold | 18 months | 18 months | ||||
Annual additional contribution related to downtime under the Canadian pension funding relief regulations | $ 2,000,000 | $ 4,000,000 | ||||
Sales of Level 3 plan assets | 98 | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Paper mill at Thorold (Ontario) | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Curtailments, settlements and other (gains) losses | $ 28 | |||||
Equity Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 45.00% | |||||
Real Assets | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 10.00% | |||||
Debt Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 45.00% | |||||
Minimum | Equity Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 25.00% | |||||
Minimum | Real Assets | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 0.00% | |||||
Minimum | Debt Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 35.00% | |||||
Maximum | Equity Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 55.00% | |||||
Maximum | Real Assets | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 15.00% | |||||
Maximum | Debt Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 65.00% | |||||
Near-Term Liquidity | Maximum | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 5.00% | |||||
Ontario | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Solvency funded status below which funding on solvency basis required | 85.00% | 85.00% | ||||
United States and Canada | Equity Securities | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Targeted asset allocation of plan assets (as a percent) | 60.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Changes in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | $ 5,246 | $ 5,188 | |
Service cost | 16 | 14 | $ 15 |
Interest cost | 133 | 151 | 181 |
Actuarial (gain) loss | (168) | 265 | |
Participant contributions | 6 | 7 | |
Special termination benefits | 0 | 3 | |
Curtailments | (7) | (2) | |
Settlements | (15) | (118) | |
Benefits paid | (345) | (341) | |
Effect of foreign currency exchange rate changes | 31 | 79 | |
Benefit obligations as of end of year | 4,897 | 5,246 | 5,188 |
OPEB Plans | |||
Defined Benefit Plan, Change in Benefit Obligations [Roll Forward] | |||
Benefit obligations as of beginning of year | 136 | 147 | |
Service cost | 1 | 1 | 0 |
Interest cost | 3 | 4 | 6 |
Actuarial (gain) loss | (7) | (6) | |
Participant contributions | 2 | 2 | |
Special termination benefits | 0 | 0 | |
Curtailments | (1) | (1) | |
Settlements | 0 | 0 | |
Benefits paid | (13) | (13) | |
Effect of foreign currency exchange rate changes | 1 | 2 | |
Benefit obligations as of end of year | $ 122 | $ 136 | $ 147 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Change in Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | $ 3,806 | |
Fair value of plan assets as of end of year | 3,856 | $ 3,806 |
Pension Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 3,806 | 3,862 |
Actual return on plan assets | 296 | 241 |
Employer contributions | 86 | 91 |
Participant contributions | 6 | 7 |
Settlements | (15) | (118) |
Benefits paid | (345) | (341) |
Effect of foreign currency exchange rate changes | 22 | 64 |
Fair value of plan assets as of end of year | 3,856 | 3,806 |
Funded status as of end of year | (1,041) | (1,440) |
OPEB Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets as of beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 11 | 11 |
Participant contributions | 2 | 2 |
Settlements | 0 | 0 |
Benefits paid | (13) | (13) |
Effect of foreign currency exchange rate changes | 0 | 0 |
Fair value of plan assets as of end of year | 0 | 0 |
Funded status as of end of year | $ (122) | $ (136) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefit Plans - Amounts Recognized in our Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accounts payable and other | $ (14) | $ (14) |
Pension and OPEB obligations | (1,151) | (1,562) |
Pension Plans | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 2 | 0 |
Accounts payable and other | (3) | (3) |
Pension and OPEB obligations | (1,040) | (1,437) |
Net obligations recognized | (1,041) | (1,440) |
OPEB Plans | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Other assets | 0 | 0 |
Accounts payable and other | (11) | (11) |
Pension and OPEB obligations | (111) | (125) |
Net obligations recognized | $ (122) | $ (136) |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Non-operating credits | $ (11) | $ 0 | $ (47) |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Paper mill at Thorold (Ontario) | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Curtailments, settlements and other (gains) losses | 28 | ||
Pension Plans | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Interest cost | 133 | 151 | 181 |
Expected return on plan assets | (215) | (226) | (251) |
Amortization of prior service costs or credits | 1 | 0 | 0 |
Amortization of actuarial losses (gains) | 78 | 63 | 34 |
Non-operating credits | (3) | (12) | (36) |
Service cost | 16 | 14 | 15 |
Net periodic benefit costs (credits) before special events | 13 | 2 | (21) |
Curtailments, settlements and other (gains) losses | (1) | 32 | 0 |
Net periodic benefit cost | 12 | 34 | (21) |
OPEB Plans | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Interest cost | 3 | 4 | 6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service costs or credits | (4) | (4) | (11) |
Amortization of actuarial losses (gains) | (6) | (6) | (6) |
Non-operating credits | (7) | (6) | (11) |
Service cost | 1 | 1 | 0 |
Net periodic benefit costs (credits) before special events | (6) | (5) | (11) |
Curtailments, settlements and other (gains) losses | 0 | (14) | 0 |
Net periodic benefit cost | $ (6) | $ (19) | $ (11) |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefit Plans - Weighted-Average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans | |||
Benefit obligations: | |||
Discount rate (as a percent) | 2.80% | 2.50% | 3.00% |
Rate of compensation increase (as a percent) | 2.10% | 2.10% | 2.10% |
Net periodic benefit cost (credit): | |||
Discount rate (as a percent) | 2.50% | 3.00% | 3.80% |
Expected return on assets (as a percent) | 5.70% | 6.00% | 6.50% |
Rate of compensation increase (as a percent) | 2.10% | 2.10% | 2.10% |
OPEB Plans | |||
Benefit obligations: | |||
Discount rate (as a percent) | 2.90% | 2.50% | 3.10% |
Net periodic benefit cost (credit): | |||
Discount rate (as a percent) | 2.50% | 3.10% | 3.90% |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefit Plans - Assumed Health Care Cost Trend Rates Used to Determine Benefit Obligations (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year (as a percent) | 7.00% | 7.20% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) (as a percent) | 4.50% | 4.50% |
Canada | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Health care cost trend rate assumed for next year (as a percent) | 4.80% | 4.80% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) (as a percent) | 4.50% | 4.50% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefit Plans - Fair Value of Plan Assets Held by Pension Plans (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 3,856 | $ 3,806 |
Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 3,229 | 3,356 |
Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,664 | 2,149 |
Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,251 | 1,207 |
Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 314 | 0 |
Investments measured at NAV | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 627 | 450 |
Equity securities: U.S. companies | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 646 | 737 |
Equity securities: U.S. companies | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 646 | 737 |
Equity securities: U.S. companies | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Equity securities: U.S. companies | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Equity securities: Non-U.S. companies | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 872 | 1,197 |
Equity securities: Non-U.S. companies | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 872 | 1,197 |
Equity securities: Non-U.S. companies | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Equity securities: Non-U.S. companies | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Debt securities: Corporate and government securities | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,197 | 1,086 |
Debt securities: Corporate and government securities | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 29 | 36 |
Debt securities: Corporate and government securities | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 1,168 | 1,050 |
Debt securities: Corporate and government securities | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Debt securities: Asset-backed securities | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 87 | 148 |
Debt securities: Asset-backed securities | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Debt securities: Asset-backed securities | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 87 | 148 |
Debt securities: Asset-backed securities | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Cash and cash equivalents | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 117 | 179 |
Cash and cash equivalents | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 117 | 179 |
Cash and cash equivalents | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Certain insurance contracts | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 314 | |
Certain insurance contracts | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | |
Certain insurance contracts | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | |
Certain insurance contracts | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 314 | |
Other plan assets, net | Total | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | (4) | 9 |
Other plan assets, net | Level 1 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | 0 | 0 |
Other plan assets, net | Level 2 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | (4) | 9 |
Other plan assets, net | Level 3 | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Fair value of plan assets held by pension plans | $ 0 | $ 0 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefit Plans - Expected Benefit Payments and Future Contributions (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | $ 347 |
2023 | 330 |
2024 | 323 |
2025 | 316 |
2026 | 308 |
2027 - 2031 | 1,425 |
OPEB Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2022 | 11 |
2023 | 10 |
2024 | 10 |
2025 | 9 |
2026 | 9 |
2027 - 2031 | $ 38 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes by Taxing Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (229) | $ (126) | $ (205) |
Foreign | 733 | 187 | 216 |
Income before income taxes | $ 504 | $ 61 | $ 11 |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Federal and State: | |||
Current | $ (3) | $ 0 | $ 0 |
Deferred | 0 | 0 | 0 |
U.S. Federal and State, Total | (3) | 0 | 0 |
Foreign: | |||
Current | 0 | 0 | 0 |
Deferred | (192) | (51) | (58) |
Foreign, Total | (192) | (51) | (58) |
Total: | |||
Current | (3) | 0 | 0 |
Deferred | (192) | (51) | (58) |
Income tax benefit (provision) | $ (195) | $ (51) | $ (58) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 504 | $ 61 | $ 11 |
Income tax provision: | |||
Expected income tax provision | (106) | (13) | (2) |
Changes resulting from: | |||
Valuation allowance | 54 | (11) | (43) |
Foreign exchange | (3) | (6) | 2 |
U.S. tax on non-U.S. earnings | (115) | (23) | (7) |
State income taxes, net of federal income tax benefit | 10 | 6 | 7 |
Foreign tax rate differences | (38) | (10) | (11) |
Other, net | 3 | 6 | (4) |
Income tax benefit (provision) | $ (195) | (51) | $ (58) |
Insurance settlement | $ 4 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Fixed assets | $ (33) | $ (57) |
Operating lease right-of-use assets | (14) | (15) |
Investment in partnership | (26) | (20) |
Other | (8) | (5) |
Deferred income tax liabilities | (81) | (97) |
Fixed assets | 178 | 297 |
Pension and OPEB plans | 300 | 408 |
Net operating loss and deduction limitation carryforwards | 572 | 660 |
Net capital loss carryforwards | 41 | 41 |
Undeducted research and development expenditures | 145 | 195 |
Tax credit carryforwards | 99 | 98 |
Operating lease liabilities | 14 | 15 |
Goodwill | 27 | 28 |
Other | 69 | 44 |
Deferred income tax assets | 1,445 | 1,786 |
Valuation allowance | (711) | (774) |
Net deferred income tax assets | 653 | 915 |
Amounts recognized in our Consolidated Balance Sheets consisted of: | ||
Deferred income tax assets | $ 653 | $ 915 |
Income Taxes - Balance of Tax A
Income Taxes - Balance of Tax Attributes and Their Dates of Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Net operating loss carryforwards and deduction limitation | $ 572 | $ 660 |
Net capital loss carryforwards | 41 | 41 |
Undeducted research and development expenditures | 145 | 195 |
Tax credit carryforwards | 99 | $ 98 |
U.S. federal and state | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Net capital loss carryforwards | 5 | |
U.S. federal | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 1,618 | |
Net operating loss carryforwards and deduction limitation | 340 | |
U.S. federal - Indefinite | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 506 | |
Net operating loss carryforwards and deduction limitation | 106 | |
U.S. state | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 2,109 | |
Net operating loss carryforwards and deduction limitation | 107 | |
Tax credit carryforwards | 19 | |
U.S. state - Indefinite | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 253 | |
Net operating loss carryforwards and deduction limitation | 8 | |
Canada Federal and Provincial (Excluding Quebec) | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 24 | |
Net operating loss carryforwards and deduction limitation | 4 | |
Net capital loss carryforwards | 31 | |
Undeducted research and development expenditures | 69 | |
Quebec | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Operating loss carryforwards | 61 | |
Net operating loss carryforwards and deduction limitation | 6 | |
Net capital loss carryforwards | 5 | |
Undeducted research and development expenditures | 76 | |
Other | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Net operating loss carryforwards and deduction limitation | 1 | |
Net capital loss carryforwards: | U.S. federal and state | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | 23 | |
Net capital loss carryforwards: | Canada Federal and Provincial (Excluding Quebec) | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | 118 | |
Net capital loss carryforwards: | Quebec | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | 54 | |
Undeducted research and development expenditures: | Canada Federal and Provincial (Excluding Quebec) | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | 400 | |
Undeducted research and development expenditures: | Quebec | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | 843 | |
Undeducted research and development expenditures: | Canadian | ||
Significant Tax Attributes And Dates Of Expiration [Line Items] | ||
Tax credit carryforwards | $ 80 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits | ||
Beginning of year | $ 28 | $ 29 |
(Decrease) increase resulting from: | ||
Settlements with taxing authorities | (2) | (2) |
Positions taken in the prior period | 0 | 1 |
End of year | $ 26 | $ 28 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | Dec. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Valuation allowance on net capital loss carryforwards | $ 37,000,000 |
Unrecognized tax benefits that would impact the effective tax rate | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2022 | $ 31 |
2023 | 17 |
2024 | 13 |
2025 | 17 |
2026 | 6 |
2027 and thereafter | 21 |
Unrecorded unconditional purchase obligation | 105 |
Purchase obligations - energy purchase obligations | $ 31 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) $ / shares in Units, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Dec. 31, 2021USD ($)review | Dec. 31, 2021CAD ($) | Jul. 01, 2022 | Dec. 31, 2021CAD ($)review$ / shares | Dec. 02, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 01, 2020 | Nov. 30, 2020 | Dec. 31, 2019CAD ($) | Jun. 30, 2018 | Nov. 02, 2017 | Apr. 28, 2017 | Jul. 31, 2012 | |
Loss Contingencies [Line Items] | ||||||||||||||
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 12.82% | |||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 18.07% | 18.07% | 19.10% | 14.70% | ||||||||||
Accumulated countervailing duty cash deposits made on softwood lumber exports | $ 339 | $ 194 | ||||||||||||
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 4.59% | |||||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 11.59% | 1.15% | 3.20% | |||||||||||
Accumulated anti-dumping cash deposits made on softwood lumber exports | $ 58 | 49 | ||||||||||||
Number of reviews pending | review | 2 | 2 | ||||||||||||
Other liabilities | $ 88 | 92 | ||||||||||||
Legal hypothec on immovable and movable property | 24 | $ 30 | $ 30 | |||||||||||
Maximum deficit from partial wind-up of pension plans to be funded | 119 | $ 150 | ||||||||||||
Environmental Remediation Obligations [Abstract] | ||||||||||||||
Environmental liabilities | 13 | 15 | ||||||||||||
Asset retirement obligations | 36 | 25 | ||||||||||||
Forecast | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 15.48% | |||||||||||||
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent) | 4.76% | |||||||||||||
Fibrek | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Proportion of outstanding shares acquired (as a percent) | 25.40% | |||||||||||||
Determined per share fair value of dissenting shareholders' shares | $ / shares | $ 1.99 | |||||||||||||
Determined fair value of dissenting shareholders' shares | $ 31 | |||||||||||||
Determined fair value of dissenting shareholders' shares including interest and indemnity | 44 | |||||||||||||
Amount accrued to be contingently distributed | 14 | |||||||||||||
Change in amount of contingent consideration | 23 | $ 30 | ||||||||||||
Amount paid, contingent consideration, business combination | 14 | 19 | ||||||||||||
Softwood Lumber Duties Investigations | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contingent loss recorded | 0 | |||||||||||||
Surety Bond | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Surety bonds outstanding | 83 | |||||||||||||
Standby Letters of Credit | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Surety bonds outstanding | 53 | |||||||||||||
Fibrek | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Other liabilities | $ 21 | $ 27 | $ 20 | $ 25 |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 07, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock authorized (shares) | 190,000,000 | ||||
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 | |||
Share repurchase program, stock repurchased (shares) | 4,800,000 | ||||
Share repurchase program, aggregate purchase price | $ (48,000,000) | $ (30,000,000) | $ (24,000,000) | ||
Common stock, dividends declared (USD per share) | $ 1 | ||||
Common stock, dividends paid | $ 79,000,000 | $ 0 | 0 | ||
Preferred stock authorized (shares) | 10,000,000,000,000 | ||||
Preferred stock, par value (USD per share) | $ 0.001 | ||||
Preferred stock issued (shares) | 0 | 0 | |||
Preferred stock outstanding (shares) | 0 | 0 | |||
December 2021 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, authorized amount (in shares) | 10,000,000 | ||||
Share repurchase program, authorized amount | $ 100,000,000 | ||||
Share repurchase program, stock repurchased (shares) | 0 | ||||
March 2020 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, authorized amount | $ 100,000,000 | $ 100,000,000 | |||
Share repurchase program, stock repurchased (shares) | 4,600,000 | 6,900,000 | |||
Average price of treasury stock acquired (USD per share) | $ 10.64 | $ 4.28 | |||
Share repurchase program, authorized maximum percentage of common stock to be repurchased (as a percent) | 15.00% | ||||
May 2012 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, authorized amount | $ 150,000,000 | ||||
Share repurchase program, stock repurchased (shares) | 4,800,000 | ||||
Average price of treasury stock acquired (USD per share) | $ 4.98 | ||||
Share repurchase program, aggregate purchase price | $ (24,000,000) | ||||
Dividend Declared | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 3,000,000 | ||||
Increase in deficit | 2,000,000 | ||||
Increase in additional paid-in capital | 2,000,000 | ||||
Increase in liabilities | 3,000,000 | ||||
Treasury Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, aggregate purchase price | (24,000,000) | ||||
Treasury Stock | March 2020 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, aggregate purchase price | $ (48,000,000) | ||||
Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock authorized for issuance as stock incentive awards (shares) | 14,320,960 | ||||
Share-based compensation expense | $ 38,000,000 | $ 14,000,000 | $ 2,000,000 | ||
Incentive Plans | March 2020 Share Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase program, aggregate purchase price | $ (30,000,000) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit from share-based compensation expense | $ 3,500,000 | $ 1,200,000 | $ 0 |
Stock options exercised (shares) | 118,485 | ||
Resolute Forest Products Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for issuance as stock incentive awards (shares) | 9,000,000 | ||
Resolute Forest Products 2019 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for issuance as stock incentive awards (shares) | 5,300,000 | 3,000,000 | |
Additional stock authorized for issuance as stock incentive awards (shares) | 2,300,000 | ||
Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for issuance as stock incentive awards (shares) | 14,320,960 | ||
Stock available for issuance (shares) | 1,500,000 | ||
Share-based compensation expense | $ (38,000,000) | $ (14,000,000) | $ (2,000,000) |
Incentive Plans | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period incentive awards become exercisable or vest | 4 years | ||
Intrinsic value of stock options exercised (less than) | $ 1,000,000 | ||
Stock options exercised (shares) | 0 | 0 | |
Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock received per stock unit converted | 1 | ||
Weighted-average grant-date fair value of awards granted (USD per share) | $ 10.40 | $ 3.87 | $ 5.55 |
Total fair value - stock units vested | $ 16,000,000 | $ 7,000,000 | $ 5,000,000 |
Cash paid for liability-based awards | $ 8,000,000 | $ 3,000,000 | $ 1,000,000 |
Stock units outstanding (shares) | 1,716,805 | 2,407,279 | |
Incentive Plans | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock received per stock unit converted | 1 | ||
Weighted-average grant-date fair value of awards granted (USD per share) | $ 10.60 | $ 4.09 | $ 5.29 |
Total fair value - stock units vested | $ 8,000,000 | $ 5,000,000 | $ 7,000,000 |
Cash paid for liability-based awards | $ 4,000,000 | $ 1,000,000 | 1,000,000 |
Stock units outstanding (shares) | 3,004,757 | 3,106,730 | |
Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based awards issuable as a proportion of director cash fees surrendered (as a percent) | 110.00% | ||
Premium incentive in the form of additional equity-based awards for cash fees surrendered (as a percent) | 10.00% | ||
Share-based compensation expense | $ (5,000,000) | $ (2,000,000) | 1,000,000 |
Deferred Compensation Plan | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | 1,000,000 | 1,000,000 | 1,000,000 |
Cash paid for liability-based awards | $ 1,000,000 | $ 0 | 0 |
Number of common shares upon which value of cash payments on conversion of stock units is derived (shares) | 1 | ||
Stock units outstanding (shares) | 484,064 | 481,056 | |
Director | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period incentive awards become exercisable or vest | 1 year | ||
Employee | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period incentive awards become exercisable or vest | 4 years | ||
Maximum | Incentive Plans | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period from the grant date for stock options | 10 years | ||
Maximum | Incentive Plans | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period incentive awards become exercisable or vest | 40 months | ||
Maximum | Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Director cash fees eligible to be surrendered for equity-based awards (as a percent) | 100.00% | ||
Maximum | Deferred Compensation Plan | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period incentive awards become exercisable or vest | 3 years | ||
Settlement period for awards once vested | 3 years | ||
Maximum | Director | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Settlement period for awards once vested | 3 years | ||
Minimum | Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retirement eligibility period | 6 months | ||
Minimum | Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Director cash fees eligible to be surrendered for equity-based awards (as a percent) | 50.00% | ||
Equity-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to equity awards | $ 10,000,000 | ||
Remaining requisite service period for equity awards to be recognized | 2 years 8 months 12 days | ||
Equity-based Awards | Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (8,000,000) | $ (4,000,000) | (4,000,000) |
Equity-based Awards | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | $ 8,000,000 | $ 3,000,000 | 3,000,000 |
Stock units outstanding (shares) | 882,874 | 1,279,015 | |
Equity-based Awards | Incentive Plans | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | $ 4,000,000 | $ 4,000,000 | 6,000,000 |
Stock units outstanding (shares) | 1,855,292 | 1,795,403 | |
Equity-based Awards | Director | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock granted to directors that vested but were not settled in period (shares) | 169,832 | ||
Liability-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to equity awards | $ 11,000,000 | ||
Remaining requisite service period for equity awards to be recognized | 1 year 10 months 24 days | ||
Liability-based Awards | Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (30,000,000) | $ (10,000,000) | 2,000,000 |
Liability-based Awards | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | $ 8,000,000 | $ 4,000,000 | 2,000,000 |
Stock units outstanding (shares) | 833,931 | 1,128,264 | |
Liability-based Awards | Incentive Plans | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value - stock units vested | $ 4,000,000 | $ 1,000,000 | $ 1,000,000 |
Stock units outstanding (shares) | 1,149,465 | 1,311,327 | |
Liability-based Awards | Director | Incentive Plans | RSUs and DSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock granted to directors that vested but were not settled in period (shares) | 341,651 |
Share-Based Compensation - Ince
Share-Based Compensation - Incentive Plan (Details) - Incentive Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 38 | $ 14 | $ 2 |
Equity-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 8 | 4 | 4 |
Liability-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 30 | $ 10 | $ (2) |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options Outstanding [Roll Forward] | |||
Exercised (shares) | (118,485) | ||
Forfeited (shares) | (151,442) | ||
Expired (shares) | (253,988) | ||
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | |||
Exercised (USD per share) | $ 11.80 | ||
Forfeited (USD per share) | 14.40 | ||
Expired (USD per share) | $ 20.76 | ||
Stock options | Incentive Plans | |||
Stock Options Outstanding [Roll Forward] | |||
Outstanding at beginning of period (shares) | 912,901 | ||
Exercised (shares) | 0 | 0 | |
Outstanding at end of period (shares) | 388,986 | 912,901 | |
Exercisable at end of period (shares) | 388,986 | ||
Weighted-Average Exercise Price of Stock Options Outstanding [Roll Forward] | |||
Outstanding at beginning of period (USD per share) | $ 16.09 | ||
Outstanding at end of period (USD per share) | 15 | $ 16.09 | |
Exercisable - end of year | $ 15 | ||
Stock Options, Additional Disclosures [Abstract] | |||
Weighted average contractual life - stock options outstanding | 1 year 8 months 12 days | 1 year 9 months 18 days | |
Weighted average contractual life - stock options exercisable | 1 year 8 months 12 days |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and DSU Activity (Details) - Incentive Plans - RSUs and DSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Nonvested Units Activity [Roll Forward] | |||
Outstanding at beginning of period (shares) | 2,407,279 | ||
Granted (shares) | 909,082 | ||
Vested (shares) | (1,498,099) | ||
Forfeited (shares) | (101,457) | ||
Outstanding at end of period (shares) | 1,716,805 | 2,407,279 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |||
Outstanding at beginning of period (USD per share) | $ 5.14 | ||
Granted (USD per share) | 10.40 | $ 3.87 | $ 5.55 |
Vested (USD per share) | 6.38 | ||
Forfeited (USD per share) | 5.23 | ||
Outstanding at end of period (USD per share) | $ 6.84 | $ 5.14 | |
Equity-based Awards | |||
Nonvested Units Activity [Roll Forward] | |||
Outstanding at beginning of period (shares) | 1,279,015 | ||
Granted (shares) | 354,311 | ||
Vested (shares) | (750,452) | ||
Forfeited (shares) | 0 | ||
Outstanding at end of period (shares) | 882,874 | 1,279,015 | |
Liability-based Awards | |||
Nonvested Units Activity [Roll Forward] | |||
Outstanding at beginning of period (shares) | 1,128,264 | ||
Granted (shares) | 554,771 | ||
Vested (shares) | (747,647) | ||
Forfeited (shares) | (101,457) | ||
Outstanding at end of period (shares) | 833,931 | 1,128,264 |
Share-Based Compensation - PSU
Share-Based Compensation - PSU Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility, minimum (as a percent) | 76.00% | 57.00% | 56.00% |
Expected volatility, maximum (as a percent) | 82.00% | 77.00% | 58.00% |
Risk-free interest rate, minimum (as a percent) | 0.06% | 0.11% | 1.58% |
Risk-free interest rate, maximum (as a percent) | 0.96% | 2.99% | 1.70% |
Incentive Plans | |||
Stock Units Outstanding [Roll Forward] | |||
Outstanding at beginning of period (shares) | 3,106,730 | ||
Granted (shares) | 736,028 | ||
Vested (shares) | (821,034) | ||
Performance adjustment (shares) | 97,400 | ||
Forfeited (shares) | (114,367) | ||
Outstanding at end of period (shares) | 3,004,757 | 3,106,730 | |
Weighted-Average Fair Value at Grant Date of Stock Units Outstanding [Roll Forward] | |||
Outstanding at beginning of period (USD per share) | $ 6.05 | ||
Granted (USD per share) | 10.60 | $ 4.09 | $ 5.29 |
Vested (USD per share) | 8.20 | ||
Performance adjustment (USD per share) | 8.58 | ||
Forfeited (USD per share) | 5.48 | ||
Outstanding at end of period (USD per share) | $ 6.69 | $ 6.05 | |
Equity-based Awards | Incentive Plans | |||
Stock Units Outstanding [Roll Forward] | |||
Outstanding at beginning of period (shares) | 1,795,403 | ||
Granted (shares) | 402,306 | ||
Vested (shares) | (387,616) | ||
Performance adjustment (shares) | 45,199 | ||
Forfeited (shares) | 0 | ||
Outstanding at end of period (shares) | 1,855,292 | 1,795,403 | |
Liability-based Awards | Incentive Plans | |||
Stock Units Outstanding [Roll Forward] | |||
Outstanding at beginning of period (shares) | 1,311,327 | ||
Granted (shares) | 333,722 | ||
Vested (shares) | (433,418) | ||
Performance adjustment (shares) | 52,201 | ||
Forfeited (shares) | (114,367) | ||
Outstanding at end of period (shares) | 1,149,465 | 1,311,327 |
Segment Information - Segment R
Segment Information - Segment Reporting Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 3,664 | $ 2,800 | $ 2,923 |
Depreciation and amortization | 164 | 169 | 167 |
Operating income (loss) | 584 | 99 | 17 |
Capital expenditures | 112 | 78 | 113 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 3,664 | 2,800 | 2,923 |
Depreciation and amortization | 147 | 154 | 147 |
Operating income (loss) | 828 | 228 | 99 |
Capital expenditures | 101 | 72 | 103 |
Operating Segments | Market Pulp | |||
Segment Reporting Information [Line Items] | |||
Sales | 813 | 668 | 797 |
Depreciation and amortization | 24 | 24 | 23 |
Operating income (loss) | 99 | (1) | 39 |
Capital expenditures | 23 | 15 | 29 |
Operating Segments | Tissue | |||
Segment Reporting Information [Line Items] | |||
Sales | 161 | 173 | 165 |
Depreciation and amortization | 19 | 18 | 18 |
Operating income (loss) | (24) | (1) | (16) |
Capital expenditures | 4 | 8 | 8 |
Operating Segments | Wood Products | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,718 | 1,025 | 616 |
Depreciation and amortization | 42 | 43 | 34 |
Operating income (loss) | 772 | 276 | (6) |
Capital expenditures | 50 | 26 | 23 |
Operating Segments | Paper | |||
Segment Reporting Information [Line Items] | |||
Sales | 972 | 934 | 1,345 |
Depreciation and amortization | 62 | 69 | 72 |
Operating income (loss) | (19) | (46) | 82 |
Capital expenditures | 24 | 23 | 43 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Sales | 0 | 0 | 0 |
Depreciation and amortization | 17 | 15 | 20 |
Operating income (loss) | (244) | (129) | (82) |
Capital expenditures | $ 11 | $ 6 | $ 10 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 3,664 | $ 2,800 | $ 2,923 |
Proportion (of consolidated sales) used to determine a significant portion of sales per individual country (in the other countries group) (as a percent) | 2.00% | 2.00% | 2.00% |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | $ 3,664 | $ 2,800 | $ 2,923 |
Market Pulp | Intersegment eliminations | |||
Segment Reporting Information [Line Items] | |||
Sales | 31 | 28 | 36 |
Market Pulp | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 813 | 668 | 797 |
Wood Products | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,718 | 1,025 | 616 |
Sales to joint-ventures | $ 65 | $ 28 | $ 22 |
Segment Information - Sales by
Segment Information - Sales by Country (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 3,664 | $ 2,800 | $ 2,923 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 2,591 | 2,038 | 2,026 |
Foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,073 | 762 | 897 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 764 | 463 | 405 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 60 | 63 | 87 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 249 | $ 236 | $ 405 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets, by Country (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,381 | $ 1,564 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 518 | 666 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 863 | $ 898 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 5 Months Ended | |
Jun. 30, 2022USD ($)joint_venture | Dec. 31, 2021 | |
Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership | ||
Subsequent Event [Line Items] | ||
Equity interest (as a percent) | 50.00% | |
Forecast | Louisiana-Pacific Corporation Joint Ventures | ||
Subsequent Event [Line Items] | ||
Equity interest acquired (as a percent) | 50.00% | |
Number of businesses acquired | joint_venture | 2 | |
Cash consideration paid in business acquisition | $ | $ 50 |