Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Entity Interactive Data Current | Yes |
ICFR Auditor Attestation Flag | true |
Entity Registrant Name | NORBORD INC. |
Entity Central Index Key | 0000877365 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Amendment Description | |
Entity Address, City or Town | Toronto |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Address, State or Province | ON |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-37694 |
Entity Address, Address Line One | 1 Toronto Street |
Entity Address, Address Line Two | Suite 600 |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5C 2W4 |
City Area Code | 416 |
Local Phone Number | 365-0705 |
Entity Common Stock, Shares Outstanding | 80,719,875 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Incorporation, State or Country Code | Z4 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Address Line One | 1114 Avenue of the Americas |
Entity Address, Address Line Two | 23rd Floor |
Entity Address, Postal Zip Code | 10036 |
City Area Code | 212 |
Local Phone Number | 880-6010 |
Contact Personnel Name | Andrew J. Beck |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 568,000,000 | $ 20,000,000 |
Accounts receivable | 227,000,000 | 136,000,000 |
Taxes receivable | 0 | 63,000,000 |
Inventory | 225,000,000 | 230,000,000 |
Prepaids | 12,000,000 | 13,000,000 |
Current assets | 1,032,000,000 | 462,000,000 |
Non-current assets | ||
Property, plant and equipment | 1,417,000,000 | 1,427,000,000 |
Intangible assets | 19,000,000 | 21,000,000 |
Deferred income tax assets | 3,000,000 | 2,000,000 |
Other assets | 6,000,000 | 9,000,000 |
Non-current assets | 1,445,000,000 | 1,459,000,000 |
Assets | 2,477,000,000 | 1,921,000,000 |
Current liabilities | ||
Accounts payable and accrued liabilities | 343,000,000 | 259,000,000 |
Taxes payable | 112,000,000 | 1,000,000 |
Current liabilities | 455,000,000 | 260,000,000 |
Non-current liabilities | ||
Long-term debt | 658,000,000 | 657,000,000 |
Other liabilities | 44,000,000 | 40,000,000 |
Deferred income tax liabilities | 200,000,000 | 192,000,000 |
Non-current liabilities | 902,000,000 | 957,000,000 |
Shareholders’ equity | 1,120,000,000 | 704,000,000 |
Liabilities and shareholders' equity | 2,477,000,000 | 1,921,000,000 |
Securitisations | ||
Non-current liabilities | ||
Recognised liabilities representing continuing involvement in derecognised financial assets | $ 0 | $ 68,000,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Sales | $ 2,407 | $ 1,731 | |
Cost of sales | (1,527) | (1,582) | |
General and administrative expenses | (23) | (14) | |
Depreciation and amortization | (133) | (136) | |
Loss on disposal of assets, net | (4) | (3) | |
Impairment of assets, net | (13) | (10) | |
Expense of restructuring activities | (10) | (2) | |
Operating income (loss) | 697 | (16) | |
Non-operating (expense) income: | |||
Finance costs | (43) | (45) | |
Interest income on deposits | 0 | 2 | |
West Fraser transaction costs | 4 | 0 | |
Contract settlement | 3 | $ 0 | |
Costs on early extinguishment of 2020 Notes | 0 | (10) | |
Earnings (loss) before income tax | 647 | (69) | |
Income tax (expense) recovery | (150) | 27 | |
Earnings (loss) | $ 497 | $ (42) | |
Earnings (loss) per common share | |||
Basic (in dollars per share) | $ 6.14 | $ (0.51) | |
Diluted (in dollars per share) | $ 6.14 | $ (0.51) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of comprehensive income [abstract] | ||
Earnings (loss) | $ 497 | $ (42) |
Items that will not be reclassified to earnings: | ||
Actuarial gain on post-employment obligations | (2) | 0 |
Items that may be reclassified subsequently to earnings: | ||
Other comprehensive income, net of tax | 12 | 14 |
Comprehensive income (loss) | 509 | (28) |
Foreign currency translation gain on foreign operations | $ 14 | $ 14 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Share capital | Merger reserve | Contributed surplus | Retained earnings (deficit) | Accumulated other comprehensive loss | |
Balance, beginning of year at Dec. 31, 2018 | $ 1,280 | $ 4 | $ (168) | $ (197) | |||
Issue of common shares upon exercise of options | 1 | ||||||
Purchase of shares including shares accrued in prior year | (27) | (21) | |||||
Reverse accrual for common shares repurchased and cancelled under ASPP | 24 | 18 | |||||
Stock-based compensation | 1 | ||||||
Stock options exercised | $ 1 | (1) | |||||
Earnings (loss) | (42) | (42) | |||||
Common share dividends | (86) | ||||||
Other comprehensive income, net of tax | 14 | 14 | |||||
Balance, end of year at Dec. 31, 2019 | 704 | 1,278 | $ (96) | 4 | (299) | [1] | (183) |
Equity [abstract] | |||||||
Purchase of shares including shares accrued in prior year | (27) | (21) | |||||
Deficit arising on cashless exercise of warrants in 2013 | (263) | ||||||
All other retained earnings (deficit) | (36) | ||||||
Issue of common shares upon exercise of options | 7 | ||||||
Purchase of shares including shares accrued in prior year | (18) | ||||||
Reverse accrual for common shares repurchased and cancelled under ASPP | 0 | 0 | |||||
Stock-based compensation | 1 | ||||||
Stock options exercised | 1 | (1) | |||||
Earnings (loss) | 497 | 497 | |||||
Common share dividends | (72) | ||||||
Other comprehensive income, net of tax | 12 | 12 | |||||
Balance, end of year at Dec. 31, 2020 | $ 1,120 | 1,267 | $ (96) | $ 4 | 116 | $ (171) | |
Equity [abstract] | |||||||
Purchase of shares including shares accrued in prior year | $ (18) | ||||||
Deficit arising on cashless exercise of warrants in 2013 | (263) | ||||||
All other retained earnings (deficit) | $ 379 | ||||||
[1] | (i) Retained earnings (deficit) comprised of: Deficit arising on cashless exercise of warrants in 2013 15 $ (263) $ (263) All other retained earnings (deficit) 379 (36) $ 116 $ (299) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Earnings (loss) | $ 497,000,000 | $ (42,000,000) |
Items not affecting cash: | ||
Depreciation and amortization | 133,000,000 | 136,000,000 |
Deferred income tax | 10,000,000 | 20,000,000 |
Impairment of assets, net | 13,000,000 | 10,000,000 |
Loss on disposal of assets, net | 4,000,000 | 3,000,000 |
Other items | 5,000,000 | 16,000,000 |
Cash flows from (used in) operations | 674,000,000 | 154,000,000 |
Net change in non-cash operating working capital balances | (16,000,000) | (47,000,000) |
Net change in taxes receivable and taxes payable | 171,000,000 | (88,000,000) |
Cash flows from (used in) operating activities | 829,000,000 | 19,000,000 |
Investing activities | ||
Investment in property, plant and equipment | (102,000,000) | (146,000,000) |
Investment in intangible assets | (4,000,000) | (4,000,000) |
ERROR in label resolution. | (106,000,000) | (150,000,000) |
Financing activities | ||
Common share dividends paid | (72,000,000) | (86,000,000) |
Repayments of borrowings | 0 | (240,000,000) |
Payments to acquire or redeem entity's shares | (48,000,000) | |
Payments of lease liabilities, classified as financing activities | (12,000,000) | (10,000,000) |
Proceeds from issuing shares | 6,000,000 | 1,000,000 |
Cash flows from (used in) financing activities | (175,000,000) | 20,000,000 |
Gain (loss) arising from difference between carrying amount of financial liability extinguished and consideration paid | 0 | (9,000,000) |
Cash Paid For Restructuring Activities | 7,000,000 | 1,000,000 |
West Fraser transaction costs | 2,000,000 | 0 |
Current legal proceedings provision | 3,000,000 | 0 |
Foreign exchange revaluation on cash and cash equivalents held | 0 | 3,000,000 |
Proceeds from issue of bonds, notes and debentures | 0 | 350,000,000 |
Increase (decrease) during year | 548,000,000 | (108,000,000) |
Balance, beginning of year | 20,000,000 | 128,000,000 |
Balance, end of year | 568,000,000 | 20,000,000 |
Payments for debt issue costs | (1,000,000) | (6,000,000) |
Proceeds From (Repayments For) Accounts Receivable Securitization | (68,000,000) | 68,000,000 |
Adjustments for increase (decrease) in derivative financial liabilities | $ 0 | $ 10,000,000 |
NATURE AND DESCRIPTION OF THE C
NATURE AND DESCRIPTION OF THE COMPANY | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
NATURE AND DESCRIPTION OF THE COMPANY | In these consolidated financial statement notes, “Norbord” means Norbord Inc. and all of its consolidated subsidiaries and affiliates, and “Company” means Norbord Inc. as a separate corporation, unless the context implies otherwise. “Brookfield” means Brookfield Asset Management Inc., or any of its consolidated subsidiaries and affiliates, which are related parties by virtue of holding a significant equity interest in the Company.NATURE AND DESCRIPTION OF THE COMPANY Norbord is an international producer of wood-based panels with 17 mills in the United States (US), Europe and Canada. Prior to February 1, 2021, Norbord was a publicly traded company listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). The ticker symbol on both exchanges was “OSB”. The Company is incorporated under the Canada Business Corporations Act and is headquartered in Toronto, Ontario, Canada. On November 19, 2020, the Company and West Fraser Timber Co. Ltd. (West Fraser) announced that they had entered into an arrangement agreement pursuant to which West Fraser would acquire all of the outstanding common shares of the Company in an all share transaction. On February 1, 2021, the acquisition of the Company by West Fraser was completed under a plan of arrangement pursuant to which the Company's shareholders received 0.675 of a West Fraser share for each Norbord common share held (the Acquisition). Following the Acquisition, the Company became a wholly-owned subsidiary of West Fraser and the Company's common shares were delisted from the TSX and the NYSE. The West Fraser common shares are listed on the TSX and the NYSE under the symbol “WFG”. Further information on the Acquisition and its expected effects on the Company can be found in the Company's management proxy circular dated December 15, 2020. Prior to the Acquisition, on December 31, 2020, Brookfield controlled approximately 43% of the outstanding common shares of the Company. Subsequent to the Acquisition, on February 1, 2021, Brookfield controls approximately 19% of the outstanding common shares of West Fraser. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | (a) Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and with Interpretations of the International Financial Reporting Interpretations Committee (IFRIC). These financial statements were authorized for issuance by the Board of Directors of the Company on February 11, 2021. (b) Basis of Presentation These consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. (c) Basis of Measurement These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair value (as described in note 19) and certain long-lived assets measured at fair value for impairment assessments (as described in note 5). (d) Functional and Presentation Currency The US dollar is the presentation currency of the Company. Each of the Company’s subsidiaries determines its functional currency, and items included in the financial statements of each subsidiary are measured using that functional currency. The functional currency of North American operations is the US dollar and the functional currency of European operations is the Pound Sterling. (e) Foreign Currency Translation Assets and liabilities of foreign operations having a functional currency other than the US dollar are translated at the rate of exchange prevailing at the reporting date, and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of shareholders’ equity in other comprehensive income (OCI). Gains or losses on foreign currency-denominated balances and transactions that are designated as hedges of net investments, if any, in these operations are reported in the same manner. Foreign currency-denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date. Gains or losses on translation of these items are included in earnings and reported as general and administrative expenses, with the exception of gains and losses on translation of foreign currency-denominated deferred tax assets and liabilities and investment tax credit receivable, if any. Gains and losses on these items are included in earnings and reported as income tax expense. Gains or losses on transactions that economically hedge these items are also included in earnings. Foreign currency-denominated revenue and expenses are translated at average rates during the period. Foreign currency-denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. Foreign exchange gains or losses arising from intercompany loans to foreign operations, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance are considered to form part of the net investment in the foreign operation, are recognized in OCI. (f) Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits, as well as investment-grade money market securities and bank term deposits with maturities of 90 days or less from the date of purchase, which can be readily converted to cash. Cash and cash equivalents are recorded at fair value. (g) Inventories Inventories of finished goods, raw materials and operating and maintenance supplies are valued at the lower of cost and net realizable value, with cost determined on an average cost basis. The cost of finished goods inventories includes direct material, direct labour and an allocation of overhead. (h) Property, Plant and Equipment Property, plant and equipment is recorded at cost less accumulated depreciation. Borrowing costs are included as part of the cost of a qualifying asset. Property and plant includes land and buildings. Buildings are depreciated on a straight-line basis over 20 to 40 years. Production equipment is depreciated using the units-of-production method. This method amortizes the cost of equipment over the estimated units to be produced during its estimated useful life, which ranges from 2 to 25 years. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The rates of depreciation are intended to fully depreciate manufacturing and non-manufacturing assets over their useful lives. These periods are assessed at least annually to ensure that they continue to approximate the useful lives of the related assets. Property, plant and equipment is tested for impairment only when there is an indication of impairment. Impairment testing is a one-step approach for both testing and measurement, with the carrying value of the asset or group of assets compared directly to the higher of fair value less costs of disposal and value in use. Fair value is measured at the sale price of the asset or group of assets in an arm’s length transaction. Value in use is based on the cash flows of the asset or group of assets, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The projection of future cash flows takes into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss exists, it is recorded against earnings. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of its recoverable amount and the carrying value that would have remained had no impairment loss been recognized previously. IFRS requires such reversals to be recognized in earnings if certain criteria are met. (i) Intangible Assets Intangible assets consist of timber rights and software acquisition and development costs. Intangible assets are recorded at cost less accumulated amortization. Timber rights are amortized in accordance with the substance of the agreements (either on a straight-line basis or based on the volume of timber harvested). Software costs are amortized on a straight-line basis over their estimated useful lives and commence once the software is put into service. Amortization methods, useful lives and residual values are assessed at least annually. If the Company identifies events or changes in circumstances which may indicate that their carrying amount is less than the recoverable amount, the intangible assets would be reviewed for impairment as described in note 2(h) above. (j) Leases At inception of a contract, Norbord assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize a right-of-use (ROU) asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and are adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than their recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) above. Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized. Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term. (k) Employee Future Benefits Norbord sponsors various defined benefit and defined contribution pension plans, which cover substantially all employees and are funded in accordance with applicable plan and regulatory requirements. The benefits under Norbord’s defined benefit pension plans are generally based on an employee’s length of service and final five years’ salary. The plans do not provide for indexation of benefit payments. The measurement date for all defined benefit pension plans is December 31. The obligations associated with Norbord’s defined benefit pension plans are actuarially valued using the projected unit credit method, management’s best estimate assumptions for salary escalation, inflation and life expectancy, and a current market discount rate. Assets are measured at fair value. The obligation in excess of plan assets is recorded as a liability and any plans with assets in excess of obligations are recorded as an asset. All actuarial gains or losses are recognized immediately through OCI. (l) Financial Instruments The Company periodically utilizes derivative financial instruments solely to manage its foreign currency, interest rate and commodity price exposures in the ordinary course of business. Derivatives are not used for trading or speculative purposes. All hedging relationships, risk management objectives and hedging strategies are formally documented and periodically assessed to ensure that the changes in the value of these derivatives are highly effective in offsetting changes in the fair values, net investments or cash flows of the hedged exposures. Accordingly, all gains and losses (realized and unrealized, as applicable) on such derivatives are recognized in the same manner as gains and losses on the underlying exposure being hedged. Any resulting carrying amounts are included in other assets if there is an unrealized gain on the derivative, or in other liabilities if there is an unrealized loss on the derivative. The fair values of the Company’s derivative financial instruments, if any, are determined by using observable market inputs for similar assets and liabilities. These fair values reflect the estimated amount that the Company would have paid or received if required to settle all outstanding contracts at period-end. The fair value measurements of the Company’s derivative financial instruments are classified as Level 2 of a three-level hierarchy, as fair value of these derivative instruments has been determined based on observable market inputs. This fair value represents a point-in-time estimate that may not be relevant in predicting the Company’s future earnings or cash flows. The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. However, the Company’s Board-approved financial policies require that derivative transactions be executed only with approved highly rated counterparties under master netting agreements; therefore, the Company does not anticipate any non-performance. The carrying value of the Company’s non-derivative financial instruments approximates fair value, except where disclosed in these notes. Fair values disclosed are determined using actual quoted market prices or, if not available, indicative prices based on similar publicly traded instruments. (m) Debt Issue Costs The Company accounts for transaction costs that are directly attributable to the issuance of long-term debt by deducting such costs from the carrying amount of the long-term debt. The capitalized transaction costs are amortized to interest expense over the term of the related long-term debt using the effective interest rate method. (n) Income Taxes The Company uses the asset and liability method of accounting for income taxes and provides for temporary differences between the tax basis and carrying amounts of assets and liabilities. Accordingly, deferred tax assets and liabilities are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses to the extent that it is probable that the deductions, tax credits and tax losses can be utilized. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. In addition, the effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the year of enactment or substantive enactment. Current and deferred income taxes relating to items recognized directly in other comprehensive income are also recognized directly in other comprehensive income. The Company assesses recoverability of deferred tax assets based on the Company’s estimates and assumptions. At the end of each reporting period, the Company reassesses unrecognized deferred tax assets. Previously unrecognized tax assets are recognized to the extent that it has become probable that future taxable profit will support their realization, or derecognized to the extent it is no longer probable that the tax assets will be recovered. The Company has certain non-monetary assets and liabilities for which the tax reporting currency is different from the functional currency. Translation gains or losses arising on the remeasurement of these items at current exchange rates versus historic exchange rates give rise to a temporary difference for which a deferred tax asset or liability and deferred tax (recovery) expense is recorded. (o) Share-based Payments The Company issues both equity-settled and cash-settled share-based awards to certain employees, officers and Directors. Both types of awards are accounted for using the fair value method. Equity-settled share-based awards are issued in the form of stock options that vest evenly over a five Cash-settled share-based awards are issued in the form of restricted stock units (RSUs) and deferred stock units (DSUs). The fair value of the liability for RSUs is determined using the Black-Scholes option pricing model. The liabilities for the DSUs are fair valued using the closing price of the Company’s common shares on the grant date. DSUs are initially measured at fair value at the grant date, and subsequently remeasured to fair value at each reporting date until settlement. The liability related to cash-settled awards is recorded in other liabilities. (p) Revenue Recognition Revenue is recognized when control of the goods has transferred to the purchaser and collectibility is reasonably assured. This is generally when goods are shipped, which is also when the performance obligations have been fulfilled under either the terms of the related sales contract or standard industry terms. The majority of product is shipped via third-party transport on a freight-on-board shipping point basis. Revenues are recorded net of discounts and incentives but inclusive of freight. In all cases, product is subject to quality testing by the Company to ensure it meets applicable standards prior to shipment. (q) Government Grants Government grants relating to the acquisition of property, plant and equipment are recorded as a reduction of the cost of the asset to which it relates, with any depreciation calculated on the net amount over the related asset’s useful life. Government grants relating to income or for the reimbursement of costs are recognized in earnings in the period they become receivable and deducted against the costs for which the grants were intended to compensate. (r) Impairment of Non-Derivative Financial Assets The credit risk of financial assets not classified at fair value through profit or loss is assessed at each reporting date. When the credit risk of a financial asset has increased, a provision for expected credit losses will be recorded and recognized in earnings. (s) Measurements of Fair Value A number of the Company’s accounting policies and disclosures require the measurement of fair value, for both financial and non-financial assets and liabilities. The Company has an established framework with respect to the measurement of fair values. If third-party information, such as broker quotes or pricing services, is used to measure fair values, then management assesses the evidence obtained from these sources to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy at which such valuations should be classified. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation technique, as follows: Level 1 – unadjusted quoted prices available in active markets for identical assets or liabilities; Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). (t) Critical Judgements and Estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make critical judgements, estimates and assumptions that affect: the reported amounts of assets, liabilities, revenues and expenses; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the period. Actual results could differ materially from those estimates. Such differences in estimates are recognized when realized on a prospective basis. In making estimates and judgements, management relies on external information and observable conditions where possible, supplemented by internal analysis as required. These estimates and judgements have been applied in a manner consistent with prior periods and there are no known trends, commitments, events or uncertainties that we believe will materially affect the methodology or assumptions utilized in making these estimates and judgements in these financial statements. The significant estimates and judgements used in determining the recorded amount for assets and liabilities in the financial statements include the following: A. Judgements Management’s judgements made in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are: (i) Functional Currency The Company assesses the relevant factors related to the primary economic environment in which its entities operate to determine their functional currency. (ii) Income Taxes In the normal course of operations, judgement is required in assessing tax interpretations, regulations and legislation and in determining the provision for income taxes, deferred tax assets and liabilities. These judgements are subject to various uncertainties concerning the interpretation and application of tax laws in the filing of its tax returns in operating jurisdictions, which could materially affect the Company’s earnings or cash flows. There can be no assurance that the tax authorities will not challenge the Company’s filing positions. To the extent that a recognition or derecognition of a deferred tax asset or liability is required, current period earnings or OCI will be affected. B. Estimates Significant assumptions and estimates used in determining the recorded amounts for assets, liabilities, revenues and expenses in the consolidated financial statements for the year ended December 31, 2020 are: (i) Inventory The Company estimates the net realizable value of its finished goods and raw materials inventory using estimates regarding future selling prices. The net realizable value of operating and maintenance supplies inventory uses estimates regarding replacement costs. (ii) Property, Plant and Equipment and Intangible Assets When indicators of impairment or impairment reversal are present and the recoverable amount of property, plant and equipment and intangible assets need to be determined, the Company uses the following critical estimates: the timing of forecasted revenues; future selling prices and margins; future sales volumes; future raw materials availability; maintenance and other capital expenditures; discount rates; tax rates and undepreciated capital cost of assets for tax purposes; useful lives; and residual values. (iii) Leases The Company estimates the initial amount of ROU assets and lease obligations to recognize using estimates regarding the Company's incremental borrowing rate, the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. (iv) Employee Benefit Plans The net obligations associated with the defined benefit pension plans are actuarially valued using: the projected unit credit method; management’s best estimates for salary escalation, inflation and life expectancy; and a current market discount rate to match the timing and amount of pension payments. (v) Income Taxes Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred income tax assets are recognized for all deductible temporary differences and carryforward of unused tax credits and unused tax losses, to the extent that it is probable that the deductions, tax credits and tax losses can be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. (vi) Financial Instruments The critical assumptions and estimates used in determining the fair value of financial instruments are: equity and commodity prices; future interest rates; the relative creditworthiness of the Company to its counterparties; estimated future cash flows; discount rates; and volatility utilized in option valuations. (u) Changes in Accounting Policies (i) Financial Instruments In September 2019, the IASB issued amendments to IFRS 9 with regards to the interest rate benchmark reform. These amendments provide targeted relief for financial instruments qualifying for hedge accounting to address uncertainties related to the ongoing reform of interbank offered rates. The amendments became effective for the Company on January 1, 2020 and did not have any impact on its financial statements. (v) Future Changes in Accounting Policies (i) Property, Plant and Equipment In May 2020, the IASB issued amendments to IAS 16 with regards to sale proceeds before property, plant and equipment is available for intended use. These amendments include the requirement to recognize in earnings any proceeds and related costs from selling items produced while an asset is being prepared for its intended use, and clarify the requirement to capitalize costs of testing whether an asset is functioning properly. The amendments are effective on January 1, 2022. The Company is currently assessing the impact of these amendments on its financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Prior to the Acquisition, the Company had the ability to draw up to $125 million under a multi-currency accounts receivable securitization program with a third-party trust sponsored by a highly rated Canadian financial institution. Under the program, the Company transferred substantially all of its present and future trade accounts receivable to the trust, on a fully serviced basis, for proceeds consisting of cash and deferred purchase price. However, the asset derecognition criteria under IFRS had not been met and the transferred accounts receivable remained recorded as an asset. This program was terminated on February 1, 2021 upon closing of the Acquisition (note 1). At year-end, the Company had transferred but continued to recognize $204 million (December 31, 2019 – $110 million) in trade accounts receivable, and the Company recorded drawings of $nil as other long-term debt (December 31, 2019 – $68 million) relating to this financing program. The level of accounts receivable transferred under the program fluctuated with the level of shipment volumes, product prices and foreign exchange rates. The amount the Company was able to draw under the program at any point in time depended on the level of accounts receivable transferred and timing of cash settlements, concentration limits and enhancement ratios. At period-end, the Company's maximum available drawings under the program were $125 million (2019 - $83 million). The amount the Company chose to draw under the program fluctuated with the Company’s cash requirements at that point in time. Any drawings were presented as other long-term debt on the balance sheet and were excluded from the net debt to capitalization calculation for financial covenant purposes (note 18). The utilization charge, which was based on money market rates plus a margin, and other program fees were recorded as finance costs. For the year, the utilization charges on drawings ranged from 1.6% to 2.8% (2019 – 1.6% to 4.1% utilization charges). |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT (US $ millions) Note Land Buildings Production Equipment Construction in Progress Total Cost December 31, 2018 $ 12 $ 375 $ 1,688 $ 95 $ 2,170 Additions (1) — — 3 138 141 Initial adoption of IFRS 16 10 3 4 17 — 24 Disposals — — (13) — (13) Transfers — 4 98 (103) (1) Effect of foreign exchange — 2 3 2 7 December 31, 2019 15 385 1,796 132 2,328 Additions (1) — — 11 113 124 Disposals — — (17) — (17) Impairment — — — (7) (7) Transfers — 4 121 (123) 2 Effect of foreign exchange — 2 15 3 20 December 31, 2020 $ 15 $ 391 $ 1,926 $ 118 $ 2,450 Accumulated depreciation December 31, 2018 $ — $ 161 $ 607 $ — $ 768 Depreciation — 19 114 — 133 Disposals — — (11) — (11) Impairment — — 10 — 10 Effect of foreign exchange — — 1 — 1 December 31, 2019 — 180 721 — 901 Depreciation — 13 115 — 128 Disposals — — (13) — (13) Impairment — — 13 — 13 Effect of foreign exchange — — 4 — 4 December 31, 2020 $ — $ 193 $ 840 $ — $ 1,033 Net December 31, 2019 $ 15 $ 205 $ 1,075 $ 132 $ 1,427 December 31, 2020 15 198 1,086 118 1,417 (1) Net of government grants of nil (2019 – less than $1 million) received related to the Chambord project. During the third quarter of 2019, the Company indefinitely curtailed its 100 Mile House, British Columbia OSB mill as a result of a wood supply shortage and high wood prices. A $2 million charge was recognized for severance and related costs in the second quarter of 2019. In the third quarter of 2020, the Company decided to permanently close this mill. As a result, an additional $10 million charge has been recognized representing an impairment on the remaining carrying values of this mill's property, plant and equipment to their recoverable amount determined based on fair value less costs of disposal, as well as to provide for severance and related costs, and inventory. During the fourth quarter of 2019, the Company indefinitely curtailed Line 1 of its two-line Cordele, Georgia OSB mill due to continued poor market conditions and lower than anticipated OSB demand at the time, particularly in the South East region of the United States. As a result, an impairment loss of $10 million was recorded against the carrying values of certain of the mill's Line 1 production equipment in the third quarter of 2019. In the third quarter of 2020, the Company temporarily restarted Cordele Line 1 on a limited operating schedule to meet customer orders that the Company would not have otherwise been able to satisfy. The line will continue to operate under the Company's flexible operating strategy to respond quickly to changes in customer demand, therefore the previous impairment charge of $10 million was reversed in December 2020 as the indicators of impairment no longer existed. Separately, during the fourth quarter of 2020, a $7 million impairment charge was recorded against the carrying value of certain construction in progress assets at the mill that will not be put into production and therefore has no future value. During the second quarter of 2020, the Company recorded a non-cash impairment loss of $16 million related to idle production assets at the Grande Prairie, Alberta mill. These assets were deemed to be surplus following a review of the likelihood of their future use based on factors including relevant operating plans, raw material availability and the limited potential for redeployment of these assets. In 2020, interest costs of $4 million (2019 – $2 million) were capitalized and included in the cost of qualifying assets within additions. |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
INVENTORY | INVENTORY (US $ millions) Dec 31, 2020 Dec 31, 2019 Raw materials $ 75 $ 62 Finished goods 67 81 Operating and maintenance supplies 83 87 $ 225 $ 230 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS (US $ millions) Cost Accumulated Net Book Value December 31, 2018 $ 43 $ (23) $ 20 Additions 3 (3) — Disposals (2) 2 — Transfers 1 — 1 December 31, 2019 45 (24) 21 Additions 4 (5) (1) Disposals (8) 7 (1) December 31, 2020 $ 41 $ (22) $ 19 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER ASSETS | OTHER ASSETS (US $ millions) Note Dec 31, 2020 Dec 31, 2019 Defined benefit pension asset 11 $ 5 $ 4 Investment tax credit receivable — 4 Other 1 1 $ 6 $ 9 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT (US $ millions) Dec 31, 2020 Dec 31, 2019 Principal value 6.25% senior secured notes due April 2023 $ 315 $ 315 5.75% senior secured notes due July 2027 350 350 665 665 Less: Unamortized debt issue costs (7) (8) $ 658 $ 657 Maturities of long-term debt are as follows: (US $ millions) 2021 2022 2023 2024 2025 Thereafter Total Maturities of long-term debt $ — $ — $ 315 $ — $ — $ 350 $ 665 As at December 31, 2020, the weighted average effective interest rate on the Company’s debt-related obligations including other long-term debt was 6.0% (2019 – 5.7%). Senior Secured Notes Due 2023 The Company’s senior secured notes due in April 2023 bear a fixed interest rate of 6.25% (the 2023 Notes). The notes ranked pari passu with the Company’s existing senior secured notes due in 2027 and committed revolving bank lines. See Security - Revolving Bank Lines, 2023 Notes and 2027 Notes section below. Senior Secured Notes Due 2027 On June 24, 2019, the Company completed the issuance of $350 million in 5.75% senior secured notes due July 15, 2027 (the 2027 Notes). Debt issue costs of $nil (2019 - $6 million) were incurred in connection with the issuance of the 2027 Notes. The Company used a portion of the new proceeds of the offering of the 2027 Notes to redeem the Company's then outstanding 5.375% senior secured notes due December 1, 2020 prior to such notes' maturity. The 2027 Notes ranked pari passu with the the 2023 Notes and committed revolving bank lines. See Security - Revolving Bank Lines, 2023 Notes and 2027 Notes section below. Pursuant to the indentures governing the 2023 and 2027 Notes, following the Acquisition, the Company is required to make a change of control offer to all holders of the notes, at a purchase price equal to 101% of their aggregate principal amount plus accrued and unpaid interest. Any notes that are not tendered to such offer will continue to remain outstanding obligations of Norbord Inc. subject to the terms and conditions of their indentures. Details will be provided in a notice of the offer to be mailed to the holders of the Norbord notes. Revolving Bank Lines In May 2020, the Company completed an amendment to its committed revolving bank lines to extend the maturity date of the total aggregate commitment to May 2022 and to increase the aggregate commitment from $245 million to $300 million. Total costs of $1 million were incurred in connection with the renewal of credit facilities. The facility bore interest at money market rates plus a margin that varied with the Company's credit rating. The bank lines were secured by a first lien on the Company’s North American OSB inventory and property, plant and equipment. This lien was shared pari passu with holders of the 2023 and 2027 senior secured notes. The bank lines were terminated on February 1, 2021, upon closing of the Acquisition (note 1). At year-end, $nil (2019 – $nil) of the revolving bank lines were drawn as cash, $8 million (2019 – $8 million) was utilized for letters of credit and guarantees and $292 million (2019 – $237 million) was available to support short-term liquidity requirements. The revolving bank lines contained two quarterly financial covenants: minimum tangible net worth of $500 million and maximum net debt to total capitalization, book basis (note 18), of 65%. The Company was in compliance with the financial covenants at year-end. Security - Revolving Bank Lines, 2023 Notes and 2027 Notes Following the repayment and termination of the Company's revolving bank lines on completion of the Acquisition, the collateral platform providing for security over assets of Norbord in favour of the revolving banks was terminated. As a consequence, the collateral platform providing for security over assets of Norbord in favour of the holders of the 2023 Notes and the 2027 Notes was terminated. The termination of the collateral platforms resulted in the discharge of the liens that supported both collateral platforms. The 2023 Notes and the 2027 Notes are now, as a consequence of such termination, unsecured obligations of Norbord Inc. Debt Issue Costs Finance expense related to amortization of debt issue costs for 2020 was $2 million (2019 – $2 million). |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES (US $ millions) Note Dec 31, 2020 Dec 31, 2019 Defined benefit pension obligations 11 $ 18 $ 16 Lease obligations 13 12 Accrued employee benefits 15 8 6 Reforestation obligations 5 4 Unrealized monetary hedge loss 19 — 1 Other — 1 $ 44 $ 40 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans The Company has a number of pension plans in which participation is available to substantially all employees. The Company’s obligations under its defined benefit pension plans are determined periodically through the preparation of actuarial valuations. All of Norbord’s pension plans are up-to-date on their actuarial valuations in accordance with regulatory requirements. Information about Norbord’s defined benefit pension obligations and assets is as follows: (US $ millions) 2020 2019 Change in accrued benefit obligations during the year Accrued benefit obligations, beginning of year $ 158 $ 144 Current service cost 1 2 Gain on curtailment — (1) Interest on accrued benefit obligations 5 6 Benefits paid (12) (13) Net actuarial gain arising from changes to: Demographic assumptions — (1) Financial assumptions 16 14 Foreign currency exchange rate impact 3 7 Accrued benefit obligations, end of year (1) $ 171 $ 158 Change in plan assets during the year Plan assets, beginning of year $ 146 $ 128 Interest income 5 5 Remeasurement gains: Return on plan assets (excluding interest income) 14 14 Employer contributions 4 6 Benefits paid (12) (13) Foreign currency exchange rate impact 1 6 Plan assets, end of year (1) $ 158 $ 146 Funded status Accrued benefit obligations $ 171 $ 158 Plan assets (158) (146) Accrued benefit obligations in excess of plan assets (1) $ 13 $ 12 (1) All plans have accrued benefit obligations in excess of plan assets with the exception of the UK plan, which has been presented as other assets. The components of benefit expense recognized in the statement of earnings are as follows: (US $ millions) 2020 2019 Current service cost $ 1 $ 2 Interest cost — 1 Gain on curtailment — (1) Net pension expense $ 1 $ 2 The significant weighted average actuarial assumptions are as follows: 2020 2019 Used in calculation of accrued benefit obligations, end of year Discount rate 2.4 % 3.0 % Rate of compensation increase 2.5 % 2.3 % Used in calculation of net periodic pension expense for the year Discount rate 3.0 % 3.7 % Rate of compensation increase 2.3 % 2.3 % The impact of a change to the significant actuarial assumptions on the accrued benefit obligations as at December 31, 2020 is as follows: (US $ millions) Increase Decrease Discount rate (0.5% change) $ (12) $ 13 Compensation rate (1.0% change) 2 (2) Future life expectancy (1 year movement) 5 (5) Retirement age (1 year movement) (1) 1 The weighted average asset allocation of Norbord’s defined benefit pension plan assets is as follows: Dec 31, 2020 Dec 31, 2019 Asset category Fixed income investments 56 % 58 % Equity investments 42 % 41 % Cash 2 % 1 % Total assets 100 % 100 % Cost of sales and general and administrative expenses include $13 million (2019 – $14 million) related to contributions to the Company’s defined contribution pension plans. |
EMPLOYEE COMPENSATION AND BENEF
EMPLOYEE COMPENSATION AND BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
EMPLOYEE COMPENSATION AND BENEFITS | EMPLOYEE COMPENSATION AND BENEFITS Included in cost of sales and general and administrative expenses are the following: (US $ millions) 2020 2019 Short-term employee compensation and benefits $ 219 $ 185 Long-term employee compensation and benefits 31 35 Share-based compensation 5 4 $ 255 $ 224 |
FINANCE COSTS AND INTEREST INCO
FINANCE COSTS AND INTEREST INCOME | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
FINANCE COSTS AND INTEREST INCOME | FINANCE COSTS AND INTEREST INCOME The components of finance costs were as follows: (US $ millions) Note 2020 2019 Interest on long-term debt (1) $ 36 $ 35 Interest on other long-term debt 3 1 2 Amortization of debt issue costs 8 2 2 Revolving bank lines fees and other 3 4 42 43 Net interest expense on net pension obligations 11 — 1 Interest expense on lease obligations 10 1 1 Total finance costs $ 43 $ 45 (1) Net of capitalized interest of $4 million for 2020 (2019 – $2 million) (note 5). Interest income consists of income earned on cash and cash equivalents. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
INCOME TAX | INCOME TAX Deferred income tax balances reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the amounts used for income tax purposes. The sources of deferred income tax balances are as follows: (US $ millions) Dec 31, 2020 Dec 31, 2019 Property, plant and equipment, differences in basis $ (210) $ (209) Benefit of tax loss carryforwards 6 7 Other temporary differences in basis 7 12 Net deferred income tax liabilities $ (197) $ (190) (US $ millions) Dec 31, 2020 Dec 31, 2019 Deferred income tax assets $ 3 $ 2 Deferred income tax liabilities (200) (192) Net deferred income tax liabilities $ (197) $ (190) As at December 31, 2020, the Company had the following tax losses available for carry forward: Amount (millions) Latest Expiry Year Tax loss carryforwards United States – State tax loss $266 2038 Canada – capital loss $150 Indefinite Belgium – trading loss €28 Indefinite The loss carryforwards may be utilized before expiry to eliminate cash taxes otherwise payable. Certain benefits relating to the above losses have been included in deferred income tax assets in the consolidated financial statements. At each balance sheet date, the Company reviews its deferred income tax assets and recognizes amounts that, in the judgement of management, are probable to be utilized. During the year, the Company recognized $6 million in net deferred tax assets (2019 – $5 million in net deferred tax assets derecognized) relating to prior years' tax losses and temporary differences. Of the total tax losses noted, the Company has not recognized €28 million (2019 – €23 million) loss carryforwards in Belgium, and $123 million (2019 – $122 million) capital loss carryforwards in Canada. In addition, the Company has not recognized the following tax attributes as at December 31, 2020: (US $ millions) United States – State tax loss (2021–2038) $ 210 United States – State tax credits (2021–2026) 55 The aggregate amount of temporary differences associated with investments in subsidiaries for which deferred tax liabilities have not been recognized as at December 31, 2020 is $995 million (December 31, 2019 – $872 million). Income tax recovery (expense) recognized in the statement of earnings comprises the following: (US $ millions) 2020 2019 Current income tax (expense) recovery $ (140) $ 47 Deferred income tax expense (10) (20) Income tax (expense) recovery $ (150) $ 27 The income tax (expense) recovery is calculated as follows: (US $ millions) 2020 2019 Earnings (loss) before income tax $ 647 $ (69) Income tax (expense) recovery at combined Canadian federal and provincial statutory rate of 25% (2019 – 26%) (162) 18 Effect of: Rate differences on foreign activities 6 10 Recognition (derecognition) of the benefit of tax losses and other deferred tax assets 6 (5) Remeasurement of deferred tax liabilities, net — 4 Income tax (expense) recovery $ (150) $ 27 Income tax recovery recognized in the statement of comprehensive income comprises the following: (US $ millions) 2020 2019 Actuarial loss on post-employment obligations $ (2) $ — Tax — — Net of tax $ (2) $ — Foreign currency translation gain on foreign operations $ 13 $ 13 Tax 1 1 Net of tax $ 14 $ 14 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | |
SHAREHOLDERS' EQUITY | Stock Options 2020 2019 Options Weighted Average Exercise Price (C $) Options Weighted Balance, beginning of year 1.7 $ 32.09 1.6 $ 31.02 Options granted — — 0.2 37.80 Options exercised (0.4) 21.69 — 19.38 Options forfeited — — (0.1) 35.64 Balance, end of year 1.3 $ 34.99 1.7 $ 32.09 Exercisable at year-end 0.8 $ 32.38 0.9 $ 27.10 Under the Company’s stock option plan, the Board of Directors may issue stock options to certain employees of the Company. These options vest over a five The table below outlines the significant assumptions used during the year to estimate the fair value of options granted: 2020 2019 Risk-free interest rate — 1.6 % Expected volatility — 30 % Dividend yield — 2.1 % Expected option life (years) — 5 Share price (in Canadian dollars) — $ 37.37 Exercise price (in Canadian dollars) — $ 37.80 Weighted average fair value per option granted (in Canadian dollars) — $ 5.98 In 2020, 0.4 million common shares (2019 – less than 0.1 million common shares) were issued as a result of options exercised under the stock option plan for total cash proceeds of $6 million (2019 – $1 million) and $1 million (2019 – less than $1 million) representing the vested fair value of the stock options. The weighted average share price on the date of exercise for 2020 was C $44.88 (2019 – C $35.49). The following table summarizes the weighted average exercise prices and the weighted average remaining contractual life of the stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices (C $) Options Weighted Average Weighted Options Weighted $20.01–$25.00 502 3.45 21.44 502 21.44 $25.01–$30.00 270,000 4.61 27.06 270,000 27.06 $30.01–$35.00 353,002 4.31 32.51 281,002 31.88 $35.01–$40.00 523,000 8.10 37.11 150,000 36.94 $45.01–$50.00 169,000 7.11 46.35 64,000 46.35 1,315,504 6.25 $ 34.99 765,504 $ 32.38 Restricted and Deferred Stock Units The Company has a Restricted Stock Unit (RSU) Plan for designated employees of the Company and its subsidiaries. An RSU is a unit equivalent in value to a common share. Units credited under this plan vest equally over three years. Vested amounts are paid in cash within 30 days of the vesting date. In addition, holders are credited with additional units as and when dividends are paid on the Company’s common shares. The Company also has a Deferred Common Share Unit (DSU) Plan for senior management and Directors. A DSU is a unit equivalent in value to a common share. Following the participant’s termination of services with the Company, the participant will be paid in cash the market value of the common shares represented by the DSUs. In addition, holders are credited with additional units as and when dividends are paid on the Company’s common shares. As at December 31, 2020, the total liability outstanding related to these plans was $10 million (December 31, 2019 – $6 million), of which $6 million (December 31, 2019 – $4 million) is recorded in other liabilities and $4 million (December 31, 2019 – $2 million) is recorded in accounts payable and accrued liabilities. Upon closing of the Acquisition (note 1), each outstanding Norbord option was exchanged for a replacement option to acquire West Fraser shares. Both the number of options and the exercise price were converted at the 0.675 exchange ratio. Furthermore, each outstanding RSU and DSU was converted at the 0.675 exchange ratio and, going forward, will be valued using the market value of the West Fraser common shares. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
EARNINGS PER COMMON SHARE | (US $ millions, except share and per share information, unless otherwise noted) 2020 2019 Earnings (loss) available to common shareholders $ 497 $ (42) Common shares (millions): Weighted average number of common shares outstanding 80.9 81.8 Dilutive stock options (1) 0.1 — Diluted number of common shares 81.0 81.8 Earnings (loss) per common share: Basic $ 6.14 $ (0.51) Diluted 6.14 (0.51) (1) Applicable if dilutive and when the weighted average daily closing share price for the year was greater than the exercise price for stock options. At December 31, 2020, there were 0.7 million stock options (December 31, 2019 – 0.9 million) that were not taken into account in the calculation of diluted earnings per share because their effect was anti-dilutive. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Other items comprise: (US $ millions) Note 2020 2019 Stock-based compensation $ 6 $ 4 Pension funding greater than expense (2) (2) Cash interest paid (more) less than interest expense (1) 10 Amortization of debt issue costs 13 2 2 Unrealized loss on outstanding forwards 19 — 1 Unrealized foreign exchange loss on translation of monetary balances 4 2 Other (4) (1) $ 5 $ 16 The net change in non-cash operating working capital balance comprises: (US $ millions) 2020 2019 Cash (used for) provided by: Accounts receivable $ (88) $ 13 Prepaids 1 (1) Inventory 5 (7) Accounts payable and accrued liabilities 66 (52) $ (16) $ (47) Cash interest and income taxes comprise: (US $ millions) 2020 2019 Cash interest paid $ (45) $ (34) Cash interest received — 2 Cash taxes paid (15) (70) Cash taxes received 45 28 The net change in financial liabilities arising from financing activities comprises: (US $ millions) 2020 2019 Long-term debt $ 1 $ 107 Other long-term debt (68) 68 Net (decrease) increase in financial liabilities $ (67) $ 175 Cash and non-cash movements of changes in financial liabilities arising from financing activities comprises: (US $ millions) Note 2020 2019 Cash movements: Issuance of debt 8 $ — $ 350 Repayment of debt 8 — (240) Debt issuance costs 8 (1) (6) Accounts receivable securitization (repayments) drawings 3 (68) 68 (69) 172 Non-cash movements: Amortization of debt issue costs 8 2 2 Costs on early extinguishment of 2020 Notes 8 — 1 2 3 Net (decrease) increase in financial liabilities $ (67) $ 175 |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT The capital of the Company consists of the components of equity and debt obligations. Norbord monitors its capital structure using two key measures of its relative debt position. While the Company considers both book and market basis metrics, it believes the market basis to be superior to the book basis in measuring the true strength and flexibility of its balance sheet. The two key measures used are defined as follows: Net debt to capitalization, book basis , is net debt divided by the sum of net debt and tangible net worth. Net debt consists of the principal value of long-term debt, including the current portion and bank advances (if any) less cash and cash equivalents. Consistent with the treatment under the Company’s financial covenants, letters of credit are included in net debt. Tangible net worth consists of shareholders’ equity, less certain adjustments. Net debt to capitalization, market basis , is net debt divided by the sum of net debt and market capitalization. Net debt is calculated, as outlined above, under net debt to capitalization, book basis. Market capitalization is the number of common shares outstanding at year-end multiplied by the trailing 12-month average per share market price. Market basis capitalization is intended to correct for the low historical book value of Norbord’s asset base relative to its fair value. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Norbord has exposure to market, commodity price, interest rate, currency, counterparty credit and liquidity risks. Norbord’s primary risk management objective is to protect the Company’s balance sheet, earnings and cash flow. Norbord’s financial risk management activities are governed by Board-approved financial policies that cover risk identification, tolerance, measurement, hedging limits, hedging products, authorization levels and reporting. Derivative contracts that are deemed to be highly effective in offsetting changes in the fair value, net investment or cash flows of hedged items are designated as hedges of specific exposures. Gains and losses on these instruments are recognized in the same manner as the item being hedged. Hedge ineffectiveness, if any, is measured and included in current period earnings. Market Risk Norbord purchases commodity inputs, issues debt at fixed and floating interest rates, invests surplus cash, sells product, purchases inputs in foreign currencies and invests in foreign operations. These activities expose the Company to market risk from changes in commodity prices, interest rates and foreign exchange rates, which affects the Company’s balance sheet, earnings and cash flows. The Company periodically uses derivatives as part of its overall financial risk management policy to manage certain exposures to market risk that result from these activities. Commodity Price Risk Norbord is exposed to commodity price risk on most of its manufacturing inputs, which principally comprise wood fibre, resin and energy. These manufacturing inputs are purchased primarily on the open market in competition with other users of such resources, and prices are influenced by factors beyond Norbord’s control. Norbord monitors market developments in all commodity prices to which it is materially exposed. No liquid futures markets exist for the majority of Norbord’s commodity inputs, but, where possible, Norbord will hedge a portion of its commodity price exposure up to Board-approved limits in order to reduce the potential negative impact of rising commodity input prices. Should Norbord decide to hedge any of this exposure, it will lock in prices directly with its suppliers or, if unfeasible, purchase financial hedges where liquid markets exist. At December 31, 2020, Norbord has economically hedged approximately 2% (December 31, 2019 – 3%) of its 2021 expected natural gas consumption by locking in the price directly with its suppliers. Approximately 52% (2019 – 50%) of Norbord’s forecasted electricity consumption is purchased in regulated markets, and Norbord has hedged approximately 25% (December 31, 2019 – 25%) of its 2021 deregulated electricity consumption. While these contracts are derivatives, they are exempt from being accounted for as financial instruments as they are considered normal purchases for the purpose of consumption. Interest Rate Risk Norbord’s financing strategy is to access public and private capital markets to raise long-term core financing, and to utilize the banking market to provide committed standby credit facilities supporting its short-term cash flow needs. The Company has fixed-rate debt, which subjects it to interest rate price risk, and has floating-rate debt, which subjects it to interest rate cash flow risk. In addition, the Company invests surplus cash in bank deposits and short-term money market securities. Currency Risk Norbord’s primary foreign exchange exposure arises from the following sources: • net investments in foreign operations, limited to Norbord's investment in its European operations which transact in both Pounds Sterling and Euros; • Canadian dollar-denominated monetary assets and liabilities; and • committed or anticipated foreign currency-denominated transactions, primarily Canadian dollar costs in Norbord's Canadian operations and Euro-denominated revenues in Norbord's UK operations. Under the Company’s risk management policy, the Company may hedge up to 100% of its significant balance sheet foreign exchange exposures by entering into cross-currency swaps and forward foreign exchange contracts. The Company may also hedge a portion of future foreign currency-denominated cash flows, using forward foreign exchange contracts or options for periods of up to three years, in order to reduce the potential negative effect of a strengthening Canadian dollar versus the US dollar, or a weakening Euro versus the Pound Sterling. Refer to Non-Derivative Financial Instruments and Derivative Financial Instruments sections below. Counterparty Credit Risk Norbord invests surplus cash in bank deposits and short-term money market securities, sells its product to customers on standard market credit terms and uses derivatives to manage its market risk exposures. These activities expose the Company to counterparty credit risk that would result if the counterparty failed to meet its obligations in accordance with the terms and conditions of its contracts with the Company. Norbord operates in a cyclical commodity business. Accounts receivable credit risk is mitigated through established credit management techniques, including conducting financial and other assessments to establish and monitor a customer’s creditworthiness, setting customer limits, monitoring exposures against these limits and, in some instances, purchasing credit insurance or obtaining trade letters of credit. As at December 31, 2020, the provision for doubtful accounts was less than $1 million (December 31, 2019 – less than $1 million). In 2020, Norbord had one customer (2019 – one customer) whose purchases represented 10% of total sales. Under an accounts receivable securitization program (note 3), Norbord has transferred substantially all of its present and future trade accounts receivable to a third-party trust, sponsored by a highly rated Canadian financial institution, on a fully serviced basis, for proceeds consisting of cash and deferred purchase price. At December 31, 2020, Norbord recorded drawings of $nil (December 31, 2019 – $68 million) relating to this program. The fair value of the deferred purchase price approximates its carrying value as a result of the short accounts receivable collection cycle and negligible historical credit losses. This program was terminated on February 1, 2021 upon closing of the Acquisition (note 1). Surplus cash is only invested with counterparties meeting minimum credit quality requirements and concentration limits. Derivative transactions are executed only with approved high-quality counterparties under master netting agreements. The Company monitors and manages its concentration of counterparty credit risk on an ongoing basis. The Company’s maximum counterparty credit exposure at year-end consisted of the carrying amount of cash and cash equivalents and accounts receivable, which approximate fair value, and the fair value of derivative financial assets. Liquidity Risk Norbord strives to maintain sufficient financial liquidity at all times in order to participate in investment opportunities as they arise, as well as to withstand sudden adverse changes in economic circumstances. Management forecasts cash flows for its current and subsequent fiscal years in order to identify financing requirements. These requirements are then addressed through a combination of committed credit facilities and access to capital markets. At December 31, 2020, Norbord had $568 million in cash and cash equivalents, $125 million in available drawings under its accounts receivable securitization program and $292 million in unutilized committed revolving bank lines. Refer to Note 8 for subsequent amendments to the revolving bank lines and secured notes. Financial Liabilities The following table summarizes the aggregate amount of contractual future cash outflows for the Company’s long-term financial liabilities: Payments Due by Year (US $ millions) 2021 2022 2023 2024 2025 Thereafter Total Principal $ — $ — $ 315 $ — $ — $ 350 $ 665 Interest 40 40 30 20 20 40 190 Long-term debt, including interest $ 40 $ 40 $ 345 $ 20 $ 20 $ 390 $ 855 Note: The above table does not include pension and post-employment benefit plan obligations and lease obligations. Non-Derivative Financial Instruments The net book values and fair values of non-derivative financial instruments were as follows: Dec 31, 2020 Dec 31, 2019 (US $ millions) Financial Instrument Category Net Book Value Fair Value Net Book Value Fair Value Financial assets: Cash and cash equivalents Fair value through profit or loss $ 568 $ 568 $ 20 $ 20 Accounts receivable Amortized cost 227 227 136 136 Other assets (1) Amortized cost 1 1 1 1 $ 796 $ 796 $ 157 $ 157 Financial liabilities: Accounts payable and accrued liabilities Amortized cost $ 343 $ 343 $ 259 $ 259 Long-term debt (2) Amortized cost 665 718 665 702 Other long-term debt Amortized cost — — 68 68 Other liabilities (1) Amortized cost 13 13 12 12 $ 1,021 $ 1,074 $ 1,004 $ 1,041 (1) Excludes defined benefit pension asset and obligations and lease obligations scoped out of IFRS 9, Financial instruments (notes 7, 9). (2) Principal value of long-term debt excluding debt issue costs of $7 million (2019 – $8 million) (note 8). Derivative Financial Instruments Canadian Dollar Monetary Hedge At December 31, 2020, the Company had foreign currency forward contracts with various financial institutions representing a notional amount of C $35 million (December 31, 2019 – C $52 million) in place to buy Canadian dollars and sell US dollars with maturities in January 2021 (December 31, 2019 – buy US dollars and sell Canadian dollars). The fair value of these contracts at year-end is an unrealized gain of less than $1 million (December 31, 2019 – an unrealized loss of $1 million); the carrying value of the derivative instrument is equivalent to the unrealized gain at year-end and is included in other liabilities. In 2020, net realized gains on the Company’s matured hedges were $3 million (2019 – net realized gains of less than $1 million) and are included in earnings. A one-cent change in the exchange rate would result in a less than $1 million impact. Euro Cash Flow Hedge At year-end, the Company had foreign currency options representing a notional amount of €30 million (December 31, 2019 – €30 million notional amount) in place to buy Pounds Sterling and sell Euros with maturities between January 2021 and June 2021. The fair value of these contracts at year-end is an unrealized gain of less than $1 million (December 31, 2019 – unrealized gain of less than $1 million). In 2020, realized losses on the Company's matured hedges were less than $1 million (2019 – less than $1 million). A one-cent change in the exchange rate would result in a less than $1 million impact. Derivative instruments are measured at fair value as determined using valuation techniques under Level 2 of the fair value hierarchy. The fair values of over-the-counter derivative financial instruments are based on broker quotes or observable market rates. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest and exchange rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument for the Company and counterparty when appropriate. Realized and unrealized gains and losses on derivative financial instruments are offset by realized and unrealized losses and gains on the underlying exposures being hedged and are recorded in earnings as they occur. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Company has provided certain guarantees, commitments and indemnifications, including those related to former businesses. The maximum amounts from many of these items cannot be reasonably estimated at this time. However, in certain circumstances, the Company has recourse against other parties to mitigate the risk of loss. In the normal course of its business activities, the Company is subject to claims and legal actions that may be made by its customers, suppliers and others. While the final outcome with respect to actions outstanding or pending as at period-end cannot be predicted with certainty, the Company believes the resolution will not have a material effect on the Company’s financial position, financial performance or cash flows. The Company has entered into various commitments as follows: Payments Due by Period (US $ millions) Less than 1 Year 1–5 Years Thereafter Total Purchase commitments $ 33 $ 44 $ 42 $ 119 Lease obligations 9 11 4 24 Reforestation obligations 2 2 1 5 $ 44 $ 57 $ 47 $ 148 Purchase commitments relate to the purchase of property, plant and equipment and long-term purchase contracts with minimum fixed payment amounts. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of operations, Norbord enters into various transactions with related parties which have been measured at exchange value and recognized in the consolidated financial statements. The following transactions have occurred between Norbord and its related parties during the normal course of business. Brookfield As at December 31, 2020, total future costs related to a 1999 asset purchase agreement between the Company and Brookfield, for which Norbord provided an indemnity, are estimated at less than $1 million (December 31, 2019 – less than $1 million) and are included in other liabilities in the consolidated balance sheets. Prior to the Acquisition, Norbord engaged the services of Brookfield for various financial, real estate and other business services. In 2020, the fees for services rendered were $1 million (2019 – less than $1 million). Other Sales to Asian markets are handled by Interex Forest Products Ltd. (Interex), a cooperative sales company over which Norbord, as a 25% shareholder, has significant influence. In 2020, net sales of $47 million (2019 – $71 million) were made to Interex. At year-end, $3 million (December 31, 2019 – $4 million) due from Interex was included in accounts receivable. At year-end, the investment in Interex was less than $1 million (December 31, 2019 – less than $1 million) and is included in other assets. Compensation of Key Management Personnel The remuneration of Directors and other key management personnel was as follows: (US $ millions) 2020 2019 Salaries, incentives and short-term benefits $ 5 $ 3 Share-based awards 3 2 $ 8 $ 5 |
GEOGRAPHIC SEGMENTS
GEOGRAPHIC SEGMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
GEOGRAPHIC SEGMENTS | GEOGRAPHIC SEGMENTS The Company operates principally in North America and Europe. Sales by geographic segment are determined based on the origin of shipment. Note 2020 (US $ millions) North America Europe Unallocated Total Sales $ 1,937 $ 470 $ — $ 2,407 EBITDA (1) 805 48 (30) 823 Depreciation and amortization 5, 6 110 23 — 133 Additions to property, plant and equipment 5 89 35 — 124 Property, plant and equipment 5 1,110 307 — 1,417 2019 (US $ millions) North America Europe Unallocated Total Sales $ 1,237 $ 494 $ — $ 1,731 EBITDA (1) 70 64 (14) 120 Depreciation and amortization 5, 6 110 26 — 136 Additions to property, plant and equipment 5 96 45 — 141 Property, plant and equipment 5 1,147 280 — 1,427 (1) EBITDA is a non-IFRS financial measure, which the Company uses to assess segment performance and operating results. The Company defines EBITDA as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES Information about Norbord's ROU assets included in property, plant and equipment is as follows: (US $ millions) Production Equipment January 1, 2019 $ 3 $ 4 $ 17 $ 24 Additions — — 3 3 Depreciation — (1) (8) (9) December 31, 2019 3 3 12 18 Additions — 1 11 12 Depreciation — — (11) (11) Transfers — — 2 2 December 31, 2020 $ 3 $ 4 $ 14 $ 21 For the year, $3 million (2019 - $3 million) of payments related to short-term leases was included in cost of sales. For the year, finance costs included $1 million (2019 - $1 million) related to lease liabilities. For the year, total cash outflows related to all leases were $16 million (2019 - $14 million). Leases of certain production equipment contain residual value guarantees of the ROU assets at the end of the contract term. At period-end, the expected amount payable under these residual value guarantees was less than $1 million (2019 - less than $1 million). |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Statement of Compliance | Statement of ComplianceThese consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and with Interpretations of the International Financial Reporting Interpretations Committee (IFRIC). These financial statements were authorized for issuance by the Board of Directors of the Company on February 11, 2021. |
Basis of Measurement | Basis of MeasurementThese consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair value (as described in note 19) and certain long-lived assets measured at fair value for impairment assessments (as described in note 5). |
Functional and Presentation Currency | Functional and Presentation CurrencyThe US dollar is the presentation currency of the Company. Each of the Company’s subsidiaries determines its functional currency, and items included in the financial statements of each subsidiary are measured using that functional currency. The functional currency of North American operations is the US dollar and the functional currency of European operations is the Pound Sterling. |
Foreign Currency Translation | Foreign Currency TranslationAssets and liabilities of foreign operations having a functional currency other than the US dollar are translated at the rate of exchange prevailing at the reporting date, and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of shareholders’ equity in other comprehensive income (OCI). Gains or losses on foreign currency-denominated balances and transactions that are designated as hedges of net investments, if any, in these operations are reported in the same manner. Foreign currency-denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date. Gains or losses on translation of these items are included in earnings and reported as general and administrative expenses, with the exception of gains and losses on translation of foreign currency-denominated deferred tax assets and liabilities and investment tax credit receivable, if any. Gains and losses on these items are included in earnings and reported as income tax expense. Gains or losses on transactions that economically hedge these items are also included in earnings. Foreign currency-denominated revenue and expenses are translated at average rates during the period. Foreign currency-denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. Foreign exchange gains or losses arising from intercompany loans to foreign operations, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance are considered to form part of the net investment in the foreign operation, are recognized in OCI. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents consist of demand deposits, as well as investment-grade money market securities and bank term deposits with maturities of 90 days or less from the date of purchase, which can be readily converted to cash. Cash and cash equivalents are recorded at fair value. |
Inventories | InventoriesInventories of finished goods, raw materials and operating and maintenance supplies are valued at the lower of cost and net realizable value, with cost determined on an average cost basis. The cost of finished goods inventories includes direct material, direct labour and an allocation of overhead. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost less accumulated depreciation. Borrowing costs are included as part of the cost of a qualifying asset. Property and plant includes land and buildings. Buildings are depreciated on a straight-line basis over 20 to 40 years. Production equipment is depreciated using the units-of-production method. This method amortizes the cost of equipment over the estimated units to be produced during its estimated useful life, which ranges from 2 to 25 years. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The rates of depreciation are intended to fully depreciate manufacturing and non-manufacturing assets over their useful lives. These periods are assessed at least annually to ensure that they continue to approximate the useful lives of the related assets. Property, plant and equipment is tested for impairment only when there is an indication of impairment. Impairment testing is a one-step approach for both testing and measurement, with the carrying value of the asset or group of assets compared directly to the higher of fair value less costs of disposal and value in use. Fair value is measured at the sale price of the asset or group of assets in an arm’s length transaction. Value in use is based on the cash flows of the asset or group of assets, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The projection of future cash flows takes into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss exists, it is recorded against earnings. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the lesser of the revised estimate of its recoverable amount and the carrying value that would have remained had no impairment loss been recognized previously. IFRS requires such reversals to be recognized in earnings if certain criteria are met. |
Intangible Assets | Intangible AssetsIntangible assets consist of timber rights and software acquisition and development costs. Intangible assets are recorded at cost less accumulated amortization. Timber rights are amortized in accordance with the substance of the agreements (either on a straight-line basis or based on the volume of timber harvested). Software costs are amortized on a straight-line basis over their estimated useful lives and commence once the software is put into service. Amortization methods, useful lives and residual values are assessed at least annually. If the Company identifies events or changes in circumstances which may indicate that their carrying amount is less than the recoverable amount, the intangible assets would be reviewed for impairment as described in note 2(h) above. |
Leases | (j) Leases At inception of a contract, Norbord assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize a right-of-use (ROU) asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and are adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than their recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) above. Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized. Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term. |
Employee Future Benefits | Employee Future Benefits Norbord sponsors various defined benefit and defined contribution pension plans, which cover substantially all employees and are funded in accordance with applicable plan and regulatory requirements. The benefits under Norbord’s defined benefit pension plans are generally based on an employee’s length of service and final five years’ salary. The plans do not provide for indexation of benefit payments. The measurement date for all defined benefit pension plans is December 31. The obligations associated with Norbord’s defined benefit pension plans are actuarially valued using the projected unit credit method, management’s best estimate assumptions for salary escalation, inflation and life expectancy, and a current market discount rate. Assets are measured at fair value. The obligation in excess of plan assets is recorded as a liability and any plans with assets in excess of obligations are recorded as an asset. All actuarial gains or losses are recognized immediately through OCI. |
Financial Instruments | Financial Instruments The Company periodically utilizes derivative financial instruments solely to manage its foreign currency, interest rate and commodity price exposures in the ordinary course of business. Derivatives are not used for trading or speculative purposes. All hedging relationships, risk management objectives and hedging strategies are formally documented and periodically assessed to ensure that the changes in the value of these derivatives are highly effective in offsetting changes in the fair values, net investments or cash flows of the hedged exposures. Accordingly, all gains and losses (realized and unrealized, as applicable) on such derivatives are recognized in the same manner as gains and losses on the underlying exposure being hedged. Any resulting carrying amounts are included in other assets if there is an unrealized gain on the derivative, or in other liabilities if there is an unrealized loss on the derivative. The fair values of the Company’s derivative financial instruments, if any, are determined by using observable market inputs for similar assets and liabilities. These fair values reflect the estimated amount that the Company would have paid or received if required to settle all outstanding contracts at period-end. The fair value measurements of the Company’s derivative financial instruments are classified as Level 2 of a three-level hierarchy, as fair value of these derivative instruments has been determined based on observable market inputs. This fair value represents a point-in-time estimate that may not be relevant in predicting the Company’s future earnings or cash flows. The Company is exposed to credit risk in the event of non-performance by its derivative counterparties. However, the Company’s Board-approved financial policies require that derivative transactions be executed only with approved highly rated counterparties under master netting agreements; therefore, the Company does not anticipate any non-performance. The carrying value of the Company’s non-derivative financial instruments approximates fair value, except where disclosed in these notes. Fair values disclosed are determined using actual quoted market prices or, if not available, indicative prices based on similar publicly traded instruments. |
Debt Issue Costs | Debt Issue CostsThe Company accounts for transaction costs that are directly attributable to the issuance of long-term debt by deducting such costs from the carrying amount of the long-term debt. The capitalized transaction costs are amortized to interest expense over the term of the related long-term debt using the effective interest rate method. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes and provides for temporary differences between the tax basis and carrying amounts of assets and liabilities. Accordingly, deferred tax assets and liabilities are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses to the extent that it is probable that the deductions, tax credits and tax losses can be utilized. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. In addition, the effect of a change in tax rates on deferred tax assets and liabilities is recognized in earnings in the year of enactment or substantive enactment. Current and deferred income taxes relating to items recognized directly in other comprehensive income are also recognized directly in other comprehensive income. The Company assesses recoverability of deferred tax assets based on the Company’s estimates and assumptions. At the end of each reporting period, the Company reassesses unrecognized deferred tax assets. Previously unrecognized tax assets are recognized to the extent that it has become probable that future taxable profit will support their realization, or derecognized to the extent it is no longer probable that the tax assets will be recovered. The Company has certain non-monetary assets and liabilities for which the tax reporting currency is different from the functional currency. Translation gains or losses arising on the remeasurement of these items at current exchange rates versus historic exchange rates give rise to a temporary difference for which a deferred tax asset or liability and deferred tax (recovery) expense is recorded. |
Share-based Payments | Share-based Payments The Company issues both equity-settled and cash-settled share-based awards to certain employees, officers and Directors. Both types of awards are accounted for using the fair value method. Equity-settled share-based awards are issued in the form of stock options that vest evenly over a five Cash-settled share-based awards are issued in the form of restricted stock units (RSUs) and deferred stock units (DSUs). The fair value of the liability for RSUs is determined using the Black-Scholes option pricing model. The liabilities for the DSUs are fair valued using the closing price of the Company’s common shares on the grant date. DSUs are initially measured at fair value at the grant date, and subsequently remeasured to fair value at each reporting date until settlement. The liability related to cash-settled awards is recorded in other liabilities. |
Revenue Recognition | Revenue RecognitionRevenue is recognized when control of the goods has transferred to the purchaser and collectibility is reasonably assured. This is generally when goods are shipped, which is also when the performance obligations have been fulfilled under either the terms of the related sales contract or standard industry terms. The majority of product is shipped via third-party transport on a freight-on-board shipping point basis. Revenues are recorded net of discounts and incentives but inclusive of freight. In all cases, product is subject to quality testing by the Company to ensure it meets applicable standards prior to shipment. |
Government Grants | Government GrantsGovernment grants relating to the acquisition of property, plant and equipment are recorded as a reduction of the cost of the asset to which it relates, with any depreciation calculated on the net amount over the related asset’s useful life. Government grants relating to income or for the reimbursement of costs are recognized in earnings in the period they become receivable and deducted against the costs for which the grants were intended to compensate. |
Impairment of Non-Derivative Financial Assets | Impairment of Non-Derivative Financial AssetsThe credit risk of financial assets not classified at fair value through profit or loss is assessed at each reporting date. When the credit risk of a financial asset has increased, a provision for expected credit losses will be recorded and recognized in earnings. |
Measurements of Fair Value | Measurements of Fair Value A number of the Company’s accounting policies and disclosures require the measurement of fair value, for both financial and non-financial assets and liabilities. The Company has an established framework with respect to the measurement of fair values. If third-party information, such as broker quotes or pricing services, is used to measure fair values, then management assesses the evidence obtained from these sources to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy at which such valuations should be classified. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation technique, as follows: Level 1 – unadjusted quoted prices available in active markets for identical assets or liabilities; Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
Critical Judgements and Estimates | Critical Judgements and Estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make critical judgements, estimates and assumptions that affect: the reported amounts of assets, liabilities, revenues and expenses; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the period. Actual results could differ materially from those estimates. Such differences in estimates are recognized when realized on a prospective basis. In making estimates and judgements, management relies on external information and observable conditions where possible, supplemented by internal analysis as required. These estimates and judgements have been applied in a manner consistent with prior periods and there are no known trends, commitments, events or uncertainties that we believe will materially affect the methodology or assumptions utilized in making these estimates and judgements in these financial statements. The significant estimates and judgements used in determining the recorded amount for assets and liabilities in the financial statements include the following: A. Judgements Management’s judgements made in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are: (i) Functional Currency The Company assesses the relevant factors related to the primary economic environment in which its entities operate to determine their functional currency. (ii) Income Taxes In the normal course of operations, judgement is required in assessing tax interpretations, regulations and legislation and in determining the provision for income taxes, deferred tax assets and liabilities. These judgements are subject to various uncertainties concerning the interpretation and application of tax laws in the filing of its tax returns in operating jurisdictions, which could materially affect the Company’s earnings or cash flows. There can be no assurance that the tax authorities will not challenge the Company’s filing positions. To the extent that a recognition or derecognition of a deferred tax asset or liability is required, current period earnings or OCI will be affected. B. Estimates Significant assumptions and estimates used in determining the recorded amounts for assets, liabilities, revenues and expenses in the consolidated financial statements for the year ended December 31, 2020 are: (i) Inventory The Company estimates the net realizable value of its finished goods and raw materials inventory using estimates regarding future selling prices. The net realizable value of operating and maintenance supplies inventory uses estimates regarding replacement costs. (ii) Property, Plant and Equipment and Intangible Assets When indicators of impairment or impairment reversal are present and the recoverable amount of property, plant and equipment and intangible assets need to be determined, the Company uses the following critical estimates: the timing of forecasted revenues; future selling prices and margins; future sales volumes; future raw materials availability; maintenance and other capital expenditures; discount rates; tax rates and undepreciated capital cost of assets for tax purposes; useful lives; and residual values. (iii) Leases The Company estimates the initial amount of ROU assets and lease obligations to recognize using estimates regarding the Company's incremental borrowing rate, the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. (iv) Employee Benefit Plans The net obligations associated with the defined benefit pension plans are actuarially valued using: the projected unit credit method; management’s best estimates for salary escalation, inflation and life expectancy; and a current market discount rate to match the timing and amount of pension payments. (v) Income Taxes Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the balance sheet date. Deferred income tax assets are recognized for all deductible temporary differences and carryforward of unused tax credits and unused tax losses, to the extent that it is probable that the deductions, tax credits and tax losses can be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability settled, based on the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. (vi) Financial Instruments The critical assumptions and estimates used in determining the fair value of financial instruments are: equity and commodity prices; future interest rates; the relative creditworthiness of the Company to its counterparties; estimated future cash flows; discount rates; and volatility utilized in option valuations. |
Changes in accounting policies | In September 2019, the IASB issued amendments to IFRS 9 with regards to the interest rate benchmark reform. These amendments provide targeted relief for financial instruments qualifying for hedge accounting to address uncertainties related to the ongoing reform of interbank offered rates. The amendments became effective for the Company on January 1, 2020 and did not have any impact on its financial statements. |
Future Changes in Accounting Policies | Property, Plant and Equipment |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | (US $ millions) Note Land Buildings Production Equipment Construction in Progress Total Cost December 31, 2018 $ 12 $ 375 $ 1,688 $ 95 $ 2,170 Additions (1) — — 3 138 141 Initial adoption of IFRS 16 10 3 4 17 — 24 Disposals — — (13) — (13) Transfers — 4 98 (103) (1) Effect of foreign exchange — 2 3 2 7 December 31, 2019 15 385 1,796 132 2,328 Additions (1) — — 11 113 124 Disposals — — (17) — (17) Impairment — — — (7) (7) Transfers — 4 121 (123) 2 Effect of foreign exchange — 2 15 3 20 December 31, 2020 $ 15 $ 391 $ 1,926 $ 118 $ 2,450 Accumulated depreciation December 31, 2018 $ — $ 161 $ 607 $ — $ 768 Depreciation — 19 114 — 133 Disposals — — (11) — (11) Impairment — — 10 — 10 Effect of foreign exchange — — 1 — 1 December 31, 2019 — 180 721 — 901 Depreciation — 13 115 — 128 Disposals — — (13) — (13) Impairment — — 13 — 13 Effect of foreign exchange — — 4 — 4 December 31, 2020 $ — $ 193 $ 840 $ — $ 1,033 Net December 31, 2019 $ 15 $ 205 $ 1,075 $ 132 $ 1,427 December 31, 2020 15 198 1,086 118 1,417 (1) Net of government grants of nil (2019 – less than $1 million) received related to the Chambord project. |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories [Abstract] | |
Disclosure of inventory | (US $ millions) Dec 31, 2020 Dec 31, 2019 Raw materials $ 75 $ 62 Finished goods 67 81 Operating and maintenance supplies 83 87 $ 225 $ 230 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Disclosure of detailed information about intangible assets | (US $ millions) Cost Accumulated Net Book Value December 31, 2018 $ 43 $ (23) $ 20 Additions 3 (3) — Disposals (2) 2 — Transfers 1 — 1 December 31, 2019 45 (24) 21 Additions 4 (5) (1) Disposals (8) 7 (1) December 31, 2020 $ 41 $ (22) $ 19 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other assets | (US $ millions) Note Dec 31, 2020 Dec 31, 2019 Defined benefit pension asset 11 $ 5 $ 4 Investment tax credit receivable — 4 Other 1 1 $ 6 $ 9 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | (US $ millions) Dec 31, 2020 Dec 31, 2019 Principal value 6.25% senior secured notes due April 2023 $ 315 $ 315 5.75% senior secured notes due July 2027 350 350 665 665 Less: Unamortized debt issue costs (7) (8) $ 658 $ 657 Maturities of long-term debt are as follows: (US $ millions) 2021 2022 2023 2024 2025 Thereafter Total Maturities of long-term debt $ — $ — $ 315 $ — $ — $ 350 $ 665 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of other liabilities | (US $ millions) Note Dec 31, 2020 Dec 31, 2019 Defined benefit pension obligations 11 $ 18 $ 16 Lease obligations 13 12 Accrued employee benefits 15 8 6 Reforestation obligations 5 4 Unrealized monetary hedge loss 19 — 1 Other — 1 $ 44 $ 40 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefits [Abstract] | |
Disclosure of defined benefit obligation and assets | Information about Norbord’s defined benefit pension obligations and assets is as follows: (US $ millions) 2020 2019 Change in accrued benefit obligations during the year Accrued benefit obligations, beginning of year $ 158 $ 144 Current service cost 1 2 Gain on curtailment — (1) Interest on accrued benefit obligations 5 6 Benefits paid (12) (13) Net actuarial gain arising from changes to: Demographic assumptions — (1) Financial assumptions 16 14 Foreign currency exchange rate impact 3 7 Accrued benefit obligations, end of year (1) $ 171 $ 158 Change in plan assets during the year Plan assets, beginning of year $ 146 $ 128 Interest income 5 5 Remeasurement gains: Return on plan assets (excluding interest income) 14 14 Employer contributions 4 6 Benefits paid (12) (13) Foreign currency exchange rate impact 1 6 Plan assets, end of year (1) $ 158 $ 146 Funded status Accrued benefit obligations $ 171 $ 158 Plan assets (158) (146) Accrued benefit obligations in excess of plan assets (1) $ 13 $ 12 (1) All plans have accrued benefit obligations in excess of plan assets with the exception of the UK plan, which has been presented as other assets. The components of benefit expense recognized in the statement of earnings are as follows: (US $ millions) 2020 2019 Current service cost $ 1 $ 2 Interest cost — 1 Gain on curtailment — (1) Net pension expense $ 1 $ 2 |
Disclosure of significant actuarial assumptions | The significant weighted average actuarial assumptions are as follows: 2020 2019 Used in calculation of accrued benefit obligations, end of year Discount rate 2.4 % 3.0 % Rate of compensation increase 2.5 % 2.3 % Used in calculation of net periodic pension expense for the year Discount rate 3.0 % 3.7 % Rate of compensation increase 2.3 % 2.3 % |
Disclosure of change to significant actuarial assumptions | The impact of a change to the significant actuarial assumptions on the accrued benefit obligations as at December 31, 2020 is as follows: (US $ millions) Increase Decrease Discount rate (0.5% change) $ (12) $ 13 Compensation rate (1.0% change) 2 (2) Future life expectancy (1 year movement) 5 (5) Retirement age (1 year movement) (1) 1 |
Disclosure of weighted average asset allocation | The weighted average asset allocation of Norbord’s defined benefit pension plan assets is as follows: Dec 31, 2020 Dec 31, 2019 Asset category Fixed income investments 56 % 58 % Equity investments 42 % 41 % Cash 2 % 1 % Total assets 100 % 100 % |
EMPLOYEE COMPENSATION AND BEN_2
EMPLOYEE COMPENSATION AND BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Disclosure of detailed employee compensation and benefits expense | Included in cost of sales and general and administrative expenses are the following: (US $ millions) 2020 2019 Short-term employee compensation and benefits $ 219 $ 185 Long-term employee compensation and benefits 31 35 Share-based compensation 5 4 $ 255 $ 224 |
FINANCE COSTS AND INTEREST IN_2
FINANCE COSTS AND INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |
Disclosure of finance costs | The components of finance costs were as follows: (US $ millions) Note 2020 2019 Interest on long-term debt (1) $ 36 $ 35 Interest on other long-term debt 3 1 2 Amortization of debt issue costs 8 2 2 Revolving bank lines fees and other 3 4 42 43 Net interest expense on net pension obligations 11 — 1 Interest expense on lease obligations 10 1 1 Total finance costs $ 43 $ 45 (1) Net of capitalized interest of $4 million for 2020 (2019 – $2 million) (note 5). |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Disclosure of deferred income tax balances, unused tax losses, and other deductible temporary differences | The sources of deferred income tax balances are as follows: (US $ millions) Dec 31, 2020 Dec 31, 2019 Property, plant and equipment, differences in basis $ (210) $ (209) Benefit of tax loss carryforwards 6 7 Other temporary differences in basis 7 12 Net deferred income tax liabilities $ (197) $ (190) (US $ millions) Dec 31, 2020 Dec 31, 2019 Deferred income tax assets $ 3 $ 2 Deferred income tax liabilities (200) (192) Net deferred income tax liabilities $ (197) $ (190) As at December 31, 2020, the Company had the following tax losses available for carry forward: Amount (millions) Latest Expiry Year Tax loss carryforwards United States – State tax loss $266 2038 Canada – capital loss $150 Indefinite Belgium – trading loss €28 Indefinite In addition, the Company has not recognized the following tax attributes as at December 31, 2020: (US $ millions) United States – State tax loss (2021–2038) $ 210 United States – State tax credits (2021–2026) 55 |
Disclosure of major components of tax expense (income) | Income tax recovery (expense) recognized in the statement of earnings comprises the following: (US $ millions) 2020 2019 Current income tax (expense) recovery $ (140) $ 47 Deferred income tax expense (10) (20) Income tax (expense) recovery $ (150) $ 27 The income tax (expense) recovery is calculated as follows: (US $ millions) 2020 2019 Earnings (loss) before income tax $ 647 $ (69) Income tax (expense) recovery at combined Canadian federal and provincial statutory rate of 25% (2019 – 26%) (162) 18 Effect of: Rate differences on foreign activities 6 10 Recognition (derecognition) of the benefit of tax losses and other deferred tax assets 6 (5) Remeasurement of deferred tax liabilities, net — 4 Income tax (expense) recovery $ (150) $ 27 Income tax recovery recognized in the statement of comprehensive income comprises the following: (US $ millions) 2020 2019 Actuarial loss on post-employment obligations $ (2) $ — Tax — — Net of tax $ (2) $ — Foreign currency translation gain on foreign operations $ 13 $ 13 Tax 1 1 Net of tax $ 14 $ 14 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | 2020 2019 Shares Amount (US $ millions) Shares Amount Common shares outstanding, beginning of year 81.4 $ 1,278 81.7 $ 1,280 Issuance of common shares upon exercise of options (1) 0.4 7 — 1 Reverse accrual for shares repurchased and/or cancelled in 2019 — — 1.6 24 Shares repurchased and cancelled (1.1) (18) (1.8) (27) Common shares outstanding, end of year (2) 80.7 $ 1,267 81.4 $ 1,278 |
Disclosure of number and weighted average exercise prices of share options | 2020 2019 Options Weighted Average Exercise Price (C $) Options Weighted Balance, beginning of year 1.7 $ 32.09 1.6 $ 31.02 Options granted — — 0.2 37.80 Options exercised (0.4) 21.69 — 19.38 Options forfeited — — (0.1) 35.64 Balance, end of year 1.3 $ 34.99 1.7 $ 32.09 Exercisable at year-end 0.8 $ 32.38 0.9 $ 27.10 |
Disclosure of significant assumptions used to estimate fair value of options granted | The table below outlines the significant assumptions used during the year to estimate the fair value of options granted: 2020 2019 Risk-free interest rate — 1.6 % Expected volatility — 30 % Dividend yield — 2.1 % Expected option life (years) — 5 Share price (in Canadian dollars) — $ 37.37 Exercise price (in Canadian dollars) — $ 37.80 Weighted average fair value per option granted (in Canadian dollars) — $ 5.98 |
Disclosure of range of exercise prices of outstanding share options | The following table summarizes the weighted average exercise prices and the weighted average remaining contractual life of the stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices (C $) Options Weighted Average Weighted Options Weighted $20.01–$25.00 502 3.45 21.44 502 21.44 $25.01–$30.00 270,000 4.61 27.06 270,000 27.06 $30.01–$35.00 353,002 4.31 32.51 281,002 31.88 $35.01–$40.00 523,000 8.10 37.11 150,000 36.94 $45.01–$50.00 169,000 7.11 46.35 64,000 46.35 1,315,504 6.25 $ 34.99 765,504 $ 32.38 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | The following table summarizes the weighted average exercise prices and the weighted average remaining contractual life of the stock options outstanding at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices (C $) Options Weighted Average Weighted Options Weighted $20.01–$25.00 502 3.45 21.44 502 21.44 $25.01–$30.00 270,000 4.61 27.06 270,000 27.06 $30.01–$35.00 353,002 4.31 32.51 281,002 31.88 $35.01–$40.00 523,000 8.10 37.11 150,000 36.94 $45.01–$50.00 169,000 7.11 46.35 64,000 46.35 1,315,504 6.25 $ 34.99 765,504 $ 32.38 |
Disclosure of accumulated other comprehensive income (loss) | (US $ millions) Dec 31, 2020 Dec 31, 2019 Foreign currency translation loss on investment in foreign operations, net of tax of $(3) (December 31, 2019 – $(4)) $ (131) $ (145) Net loss on hedge of net investment in foreign operations, net of tax of $3 (1) (8) (8) Actuarial loss on defined benefit pension obligations, net of tax of $9 (32) (30) Accumulated other comprehensive loss, net of tax $ (171) $ (183) (1) No net investment hedges were entered into during 2020 and 2019. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Disclosure of earnings per share | (US $ millions, except share and per share information, unless otherwise noted) 2020 2019 Earnings (loss) available to common shareholders $ 497 $ (42) Common shares (millions): Weighted average number of common shares outstanding 80.9 81.8 Dilutive stock options (1) 0.1 — Diluted number of common shares 81.0 81.8 Earnings (loss) per common share: Basic $ 6.14 $ (0.51) Diluted 6.14 (0.51) (1) Applicable if dilutive and when the weighted average daily closing share price for the year was greater than the exercise price for stock options. At December 31, 2020, there were 0.7 million stock options (December 31, 2019 – 0.9 million) that were not taken into account in the calculation of diluted earnings per share because their effect was anti-dilutive. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash Flow Statement [Abstract] | |
Disclosure of supplemental cash flow statement items | Other items comprise: (US $ millions) Note 2020 2019 Stock-based compensation $ 6 $ 4 Pension funding greater than expense (2) (2) Cash interest paid (more) less than interest expense (1) 10 Amortization of debt issue costs 13 2 2 Unrealized loss on outstanding forwards 19 — 1 Unrealized foreign exchange loss on translation of monetary balances 4 2 Other (4) (1) $ 5 $ 16 The net change in non-cash operating working capital balance comprises: (US $ millions) 2020 2019 Cash (used for) provided by: Accounts receivable $ (88) $ 13 Prepaids 1 (1) Inventory 5 (7) Accounts payable and accrued liabilities 66 (52) $ (16) $ (47) Cash interest and income taxes comprise: (US $ millions) 2020 2019 Cash interest paid $ (45) $ (34) Cash interest received — 2 Cash taxes paid (15) (70) Cash taxes received 45 28 The net change in financial liabilities arising from financing activities comprises: (US $ millions) 2020 2019 Long-term debt $ 1 $ 107 Other long-term debt (68) 68 Net (decrease) increase in financial liabilities $ (67) $ 175 Cash and non-cash movements of changes in financial liabilities arising from financing activities comprises: (US $ millions) Note 2020 2019 Cash movements: Issuance of debt 8 $ — $ 350 Repayment of debt 8 — (240) Debt issuance costs 8 (1) (6) Accounts receivable securitization (repayments) drawings 3 (68) 68 (69) 172 Non-cash movements: Amortization of debt issue costs 8 2 2 Costs on early extinguishment of 2020 Notes 8 — 1 2 3 Net (decrease) increase in financial liabilities $ (67) $ 175 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments [Abstract] | |
Disclosure of maturity analysis for financial liabilities | The following table summarizes the aggregate amount of contractual future cash outflows for the Company’s long-term financial liabilities: Payments Due by Year (US $ millions) 2021 2022 2023 2024 2025 Thereafter Total Principal $ — $ — $ 315 $ — $ — $ 350 $ 665 Interest 40 40 30 20 20 40 190 Long-term debt, including interest $ 40 $ 40 $ 345 $ 20 $ 20 $ 390 $ 855 Note: The above table does not include pension and post-employment benefit plan obligations and lease obligations. |
Disclosure of net book values and fair values of non-derivative financial assets | The net book values and fair values of non-derivative financial instruments were as follows: Dec 31, 2020 Dec 31, 2019 (US $ millions) Financial Instrument Category Net Book Value Fair Value Net Book Value Fair Value Financial assets: Cash and cash equivalents Fair value through profit or loss $ 568 $ 568 $ 20 $ 20 Accounts receivable Amortized cost 227 227 136 136 Other assets (1) Amortized cost 1 1 1 1 $ 796 $ 796 $ 157 $ 157 Financial liabilities: Accounts payable and accrued liabilities Amortized cost $ 343 $ 343 $ 259 $ 259 Long-term debt (2) Amortized cost 665 718 665 702 Other long-term debt Amortized cost — — 68 68 Other liabilities (1) Amortized cost 13 13 12 12 $ 1,021 $ 1,074 $ 1,004 $ 1,041 (1) Excludes defined benefit pension asset and obligations and lease obligations scoped out of IFRS 9, Financial instruments (notes 7, 9). (2) Principal value of long-term debt excluding debt issue costs of $7 million (2019 – $8 million) (note 8). |
Disclosure of net book values and fair values of non-derivative financial liabilities | The net book values and fair values of non-derivative financial instruments were as follows: Dec 31, 2020 Dec 31, 2019 (US $ millions) Financial Instrument Category Net Book Value Fair Value Net Book Value Fair Value Financial assets: Cash and cash equivalents Fair value through profit or loss $ 568 $ 568 $ 20 $ 20 Accounts receivable Amortized cost 227 227 136 136 Other assets (1) Amortized cost 1 1 1 1 $ 796 $ 796 $ 157 $ 157 Financial liabilities: Accounts payable and accrued liabilities Amortized cost $ 343 $ 343 $ 259 $ 259 Long-term debt (2) Amortized cost 665 718 665 702 Other long-term debt Amortized cost — — 68 68 Other liabilities (1) Amortized cost 13 13 12 12 $ 1,021 $ 1,074 $ 1,004 $ 1,041 (1) Excludes defined benefit pension asset and obligations and lease obligations scoped out of IFRS 9, Financial instruments (notes 7, 9). (2) Principal value of long-term debt excluding debt issue costs of $7 million (2019 – $8 million) (note 8). |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of commitments | The Company has entered into various commitments as follows: Payments Due by Period (US $ millions) Less than 1 Year 1–5 Years Thereafter Total Purchase commitments $ 33 $ 44 $ 42 $ 119 Lease obligations 9 11 4 24 Reforestation obligations 2 2 1 5 $ 44 $ 57 $ 47 $ 148 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The remuneration of Directors and other key management personnel was as follows: (US $ millions) 2020 2019 Salaries, incentives and short-term benefits $ 5 $ 3 Share-based awards 3 2 $ 8 $ 5 |
GEOGRAPHIC SEGMENTS (Tables)
GEOGRAPHIC SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Segments [Abstract] | |
Disclosure of geographical segments | Note 2020 (US $ millions) North America Europe Unallocated Total Sales $ 1,937 $ 470 $ — $ 2,407 EBITDA (1) 805 48 (30) 823 Depreciation and amortization 5, 6 110 23 — 133 Additions to property, plant and equipment 5 89 35 — 124 Property, plant and equipment 5 1,110 307 — 1,417 2019 (US $ millions) North America Europe Unallocated Total Sales $ 1,237 $ 494 $ — $ 1,731 EBITDA (1) 70 64 (14) 120 Depreciation and amortization 5, 6 110 26 — 136 Additions to property, plant and equipment 5 96 45 — 141 Property, plant and equipment 5 1,147 280 — 1,427 (1) EBITDA is a non-IFRS financial measure, which the Company uses to assess segment performance and operating results. The Company defines EBITDA as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Right-of-use Assets Included In Property, Plant, And Equipment [Table Text Block] | Information about Norbord's ROU assets included in property, plant and equipment is as follows: (US $ millions) Production Equipment January 1, 2019 $ 3 $ 4 $ 17 $ 24 Additions — — 3 3 Depreciation — (1) (8) (9) December 31, 2019 3 3 12 18 Additions — 1 11 12 Depreciation — — (11) (11) Transfers — — 2 2 December 31, 2020 $ 3 $ 4 $ 14 $ 21 |
NATURE AND DESCRIPTION OF THE_2
NATURE AND DESCRIPTION OF THE COMPANY (Details) | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019property |
Disclosure of detailed information about business combination [Line Items] | |||
Number of plant locations | 17 | ||
West Fraser Timber Co. Ltd. | Major ordinary share transactions | Norbord, Inc. | |||
Disclosure of detailed information about business combination [Line Items] | |||
Number of shares issued per common share held | 0.675 | ||
Norbord | Brookfield | |||
Disclosure of detailed information about business combination [Line Items] | |||
Proportion of ownership interest in subsidiary | 43.00% | ||
Norbord | Brookfield | Major ordinary share transactions | |||
Disclosure of detailed information about business combination [Line Items] | |||
Proportion of ownership interest in subsidiary | 19.00% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Defined benefit plan, final years of service | 5 years | ||
Right-of-use assets | $ 21 | $ 18 | $ 24 |
Employee Stock Option | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Vesting period | 5 years | ||
Bottom of range [member] | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life or depreciation rate of property, plant and equipment | 20 years | ||
Bottom of range [member] | Production Equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life or depreciation rate of property, plant and equipment | 2 years | ||
Top of range [member] | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life or depreciation rate of property, plant and equipment | 40 years | ||
Top of range [member] | Production Equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life or depreciation rate of property, plant and equipment | 25 years |
(Details)
(Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Securitisations | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Amount available to be drawn under program | $ 125,000,000 | |
Recognised trade accounts receivable transferred | $ 204,000,000 | 110,000,000 |
Recognised other long-term debt relating to financing program | $ 0 | $ 68,000,000 |
Bottom of range [member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Utilisation rate on other long-term debt within securitization program | 1.60% | |
Top of range [member] | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Utilisation rate on other long-term debt within securitization program | 2.80% | 4.10% |
Top of range [member] | Securitisations | ||
Disclosure of continuing involvement in derecognised financial assets [line items] | ||
Continuing Involvement, Maximum Amount of Borrowings | $ 125,000,000 | $ 83,000,000 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Jul. 04, 2020 | Oct. 05, 2019 | Jul. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | $ 1,427,000,000 | |||||
Additions | 124,000,000 | $ 141,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | $ 7,000,000 | $ 16,000,000 | $ 10,000,000 | |||
Transfers | 2,000,000 | |||||
Property, plant and equipment, ending balance | 1,417,000,000 | 1,417,000,000 | 1,427,000,000 | |||
Government grants (less than) | 0 | 1,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 7,000,000 | 16,000,000 | 10,000,000 | |||
Expense of restructuring activities | $ 2,000,000 | 10,000,000 | 2,000,000 | |||
Reversal of impairment loss recognised in profit or loss | 10,000,000 | |||||
Interest costs capitalised | (4,000,000) | (2,000,000) | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 7,000,000 | $ 16,000,000 | $ 10,000,000 | |||
Cost | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 2,328,000,000 | 2,170,000,000 | ||||
Additions | 124,000,000 | 141,000,000 | ||||
Disposals | 17,000,000 | 13,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Transfers | 2,000,000 | (1,000,000) | ||||
Effect of foreign exchange | 20,000,000 | 7,000,000 | ||||
Property, plant and equipment, ending balance | 2,450,000,000 | 2,450,000,000 | 2,328,000,000 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Cost | Increase (decrease) due to changes in accounting policy | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Increase (Decrease) Through Adoption of IFRS 16 | 24,000,000 | |||||
Increase (Decrease) Through Adoption of IFRS 16 | 24,000,000 | |||||
Accumulated depreciation | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | (901,000,000) | (768,000,000) | ||||
Depreciation | 128,000,000 | 133,000,000 | ||||
Disposals | (13,000,000) | (11,000,000) | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Effect of foreign exchange | 4,000,000 | 1,000,000 | ||||
Property, plant and equipment, ending balance | (1,033,000,000) | (1,033,000,000) | (901,000,000) | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Land | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 15,000,000 | |||||
Property, plant and equipment, ending balance | 15,000,000 | 15,000,000 | 15,000,000 | |||
Land | Cost | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 15,000,000 | 12,000,000 | ||||
Additions | 0 | 0 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Transfers | 0 | 0 | ||||
Effect of foreign exchange | 0 | 0 | ||||
Property, plant and equipment, ending balance | 15,000,000 | 15,000,000 | 15,000,000 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Land | Cost | Increase (decrease) due to changes in accounting policy | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Increase (Decrease) Through Adoption of IFRS 16 | 3,000,000 | |||||
Increase (Decrease) Through Adoption of IFRS 16 | 3,000,000 | |||||
Land | Accumulated depreciation | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 0 | 0 | ||||
Depreciation | 0 | 0 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Effect of foreign exchange | 0 | 0 | ||||
Property, plant and equipment, ending balance | 0 | 0 | 0 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Buildings | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 205,000,000 | |||||
Property, plant and equipment, ending balance | 198,000,000 | 198,000,000 | 205,000,000 | |||
Buildings | Cost | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 385,000,000 | 375,000,000 | ||||
Additions | 0 | 0 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Transfers | 4,000,000 | 4,000,000 | ||||
Effect of foreign exchange | 2,000,000 | 2,000,000 | ||||
Property, plant and equipment, ending balance | 391,000,000 | 391,000,000 | 385,000,000 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Buildings | Cost | Increase (decrease) due to changes in accounting policy | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Increase (Decrease) Through Adoption of IFRS 16 | 4,000,000 | |||||
Increase (Decrease) Through Adoption of IFRS 16 | 4,000,000 | |||||
Buildings | Accumulated depreciation | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | (180,000,000) | (161,000,000) | ||||
Depreciation | 13,000,000 | 19,000,000 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Effect of foreign exchange | 0 | 0 | ||||
Property, plant and equipment, ending balance | (193,000,000) | (193,000,000) | (180,000,000) | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Production Equipment | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 1,075,000,000 | |||||
Property, plant and equipment, ending balance | 1,086,000,000 | 1,086,000,000 | 1,075,000,000 | |||
Production Equipment | Cost | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 1,796,000,000 | 1,688,000,000 | ||||
Additions | 11,000,000 | 3,000,000 | ||||
Disposals | 17,000,000 | 13,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Transfers | 121,000,000 | 98,000,000 | ||||
Effect of foreign exchange | 15,000,000 | 3,000,000 | ||||
Property, plant and equipment, ending balance | 1,926,000,000 | 1,926,000,000 | 1,796,000,000 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | |||||
Production Equipment | Cost | Increase (decrease) due to changes in accounting policy | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Increase (Decrease) Through Adoption of IFRS 16 | 17,000,000 | |||||
Increase (Decrease) Through Adoption of IFRS 16 | 17,000,000 | |||||
Production Equipment | Accumulated depreciation | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | (721,000,000) | (607,000,000) | ||||
Depreciation | 115,000,000 | 114,000,000 | ||||
Disposals | (13,000,000) | (11,000,000) | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Effect of foreign exchange | 4,000,000 | 1,000,000 | ||||
Property, plant and equipment, ending balance | (840,000,000) | (840,000,000) | (721,000,000) | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 13,000,000 | 10,000,000 | ||||
Construction in Progress | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 132,000,000 | |||||
Property, plant and equipment, ending balance | 118,000,000 | 118,000,000 | 132,000,000 | |||
Construction in Progress | Cost | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 132,000,000 | 95,000,000 | ||||
Additions | 113,000,000 | 138,000,000 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Transfers | (123,000,000) | (103,000,000) | ||||
Effect of foreign exchange | 3,000,000 | 2,000,000 | ||||
Property, plant and equipment, ending balance | 118,000,000 | 118,000,000 | 132,000,000 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Impairment loss recognised in profit or loss, property, plant and equipment | (7,000,000) | |||||
Construction in Progress | Cost | Increase (decrease) due to changes in accounting policy | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Increase (Decrease) Through Adoption of IFRS 16 | 0 | |||||
Increase (Decrease) Through Adoption of IFRS 16 | 0 | |||||
Construction in Progress | Accumulated depreciation | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | ||||||
Property, plant and equipment, beginning balance | 0 | 0 | ||||
Depreciation | 0 | 0 | ||||
Disposals | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Effect of foreign exchange | 0 | 0 | ||||
Property, plant and equipment, ending balance | $ 0 | 0 | 0 | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | $ 0 | $ 0 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement Location [Line Items] | ||
Raw materials | $ 75 | $ 62 |
Finished goods | 67 | 81 |
Operating and maintenance supplies | 83 | 87 |
Inventory | 225 | 230 |
Inventory provision | $ 22 | $ 17 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | $ 21 | $ 20 |
Additions | (1) | 0 |
Disposals, intangible assets other than goodwill | 1 | 0 |
Increase (decrease) through transfers, intangible assets other than goodwill | (1) | |
Intangible assets, ending balance | 19 | 21 |
Disposals, intangible assets other than goodwill | 1 | 0 |
Increase (decrease) through transfers, intangible assets other than goodwill | (1) | |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 45 | 43 |
Additions | 4 | 3 |
Disposals, intangible assets other than goodwill | 8 | 2 |
Increase (decrease) through transfers, intangible assets other than goodwill | (1) | |
Intangible assets, ending balance | 41 | 45 |
Disposals, intangible assets other than goodwill | 8 | 2 |
Increase (decrease) through transfers, intangible assets other than goodwill | (1) | |
Accumulated Amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (24) | (23) |
Additions | (5) | (3) |
Disposals, intangible assets other than goodwill | (7) | (2) |
Increase (decrease) through transfers, intangible assets other than goodwill | 0 | |
Intangible assets, ending balance | (22) | (24) |
Disposals, intangible assets other than goodwill | $ (7) | (2) |
Increase (decrease) through transfers, intangible assets other than goodwill | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Defined benefit pension asset | $ 5 | $ 4 |
Non-current receivables from taxes other than income tax | 0 | 4 |
Other | 1 | 1 |
Other assets | $ 6 | $ 9 |
LONG-TERM DEBT - Values of Debt
LONG-TERM DEBT - Values of Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Principal value | $ 665,000,000 | $ 665,000,000 |
Less: Unamortized debt issue costs | (7,000,000) | (8,000,000) |
Long-term debt | $ 658,000,000 | 657,000,000 |
6.25% senior secured notes due April 2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate | 6.25% | |
Principal value | $ 315,000,000 | 315,000,000 |
Borrowings, interest rate | 6.25% | |
Senior Secured Notes Due June 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate | 5.75% | |
Principal value | $ 350,000,000 | $ 350,000,000 |
Borrowings, interest rate | 5.75% |
LONG-TERM DEBT - Maturities of
LONG-TERM DEBT - Maturities of Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Costs on early extinguishment of 2020 Notes | $ 0 | $ (10) |
Maturities of long-term debt | 665 | $ 665 |
2021 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | 0 | |
2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | 0 | |
2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | 315 | |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | 0 | |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | 0 | |
Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturities of long-term debt | $ 350 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||||
Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction1 | $ 0 | $ (1,000,000) | ||
Payments for debt issue costs | (1,000,000) | (6,000,000) | ||
Costs on early extinguishment of 2020 Notes | 0 | (10,000,000) | ||
Amortization of debt issue costs | $ 2,000,000 | 2,000,000 | ||
Senior Secured Notes Due December 2020 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 5.375% | |||
6.25% senior secured notes due April 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.25% | |||
Senior Secured Notes Due June 2027 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 5.75% | |||
Payments for debt issue costs | $ 0 | 6,000,000 | ||
Revolving Bank Line | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Payments for debt issue costs | $ (1,000,000) | |||
Maximum borrowing capacity | 300,000,000 | $ 245,000,000 | ||
Bank overdrafts | 0 | 0 | ||
Letters of credit | 8,000,000 | 8,000,000 | ||
Unutilized borrowing facilities | 292,000,000 | $ 237,000,000 | ||
Minimum tangible net worth | $ 500,000,000 | |||
Maximum net debt to total capitalization | 65.00% | |||
Effective Interest Rate | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 6.00% | 5.70% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Defined benefit pension obligation | $ 18 | $ 16 |
Lease obligations | 8 | 6 |
Non-current lease liabilities | 13 | 12 |
Reforestation obligations | 5 | 4 |
Unrealized monetary hedge gain | 0 | 1 |
Other | 0 | 1 |
Other liabilities | $ 44 | $ 40 |
EMPLOYEE BENEFIT PLANS - Inform
EMPLOYEE BENEFIT PLANS - Information about Defined Benefit Obligation and Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Current service cost | $ 1 | $ 2 |
Gains (losses) arising from settlements, net defined benefit liability (asset) | 0 | |
Interest expense (income) | 0 | 1 |
Funded status | ||
Accrued benefit obligations | 171 | 158 |
Plan assets | (158) | (146) |
Accrued benefit obligations in excess of plan assets(1) | 13 | 12 |
Change in accrued benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | 158 | 144 |
Current service cost | 1 | 2 |
Gains (losses) arising from settlements, net defined benefit liability (asset) | 0 | (1) |
Interest expense (income) | 5 | 6 |
Remeasurement gains: | ||
Benefits paid | (12) | (13) |
Net actuarial gain arising from changes to: | ||
Demographic assumptions | 0 | 1 |
Financial assumptions | 16 | 14 |
Foreign currency exchange rate impact, increase (decrease) | 3 | 7 |
Net defined benefit liability (asset), ending balance | 171 | 158 |
Change in plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Net defined benefit liability (asset), beginning balance | (146) | (128) |
Interest expense (income) | (5) | (5) |
Remeasurement gains: | ||
Return on plan assets (excluding interest income) | 14 | 14 |
Employer contributions | 4 | 6 |
Benefits paid | (12) | (13) |
Net actuarial gain arising from changes to: | ||
Foreign currency exchange rate impact, increase (decrease) | (1) | (6) |
Net defined benefit liability (asset), ending balance | $ (158) | $ (146) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefits [Abstract] | ||
Gains (losses) arising from settlements, net defined benefit liability (asset) | $ 0 | |
Current service cost | 1 | $ 2 |
Interest cost | 0 | 1 |
Net pension expense | 1 | 2 |
Present value of defined benefit obligation [member] | ||
Employee Benefits [Abstract] | ||
Gains (losses) arising from settlements, net defined benefit liability (asset) | 0 | 1 |
Current service cost | 1 | 2 |
Interest cost | $ 5 | $ 6 |
EMPLOYEE BENEFIT PLANS - Actuar
EMPLOYEE BENEFIT PLANS - Actuarial Assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits [Abstract] | ||
Discount rate, accrued benefit obligation | 2.40% | 3.00% |
Rate of compensation increase, accrued benefit obligation | 2.50% | 2.30% |
Discount rate, net periodic pension expense | 3.00% | 3.70% |
Rate of compensation increase, net periodic pension expense | 2.30% | 2.30% |
EMPLOYEE BENEFIT PLANS - Impact
EMPLOYEE BENEFIT PLANS - Impact of Change to Actuarial Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Discount rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 0.50% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ (12) |
Percentage of reasonably possible decrease in actuarial assumption | 0.50% |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 13 |
Percentage of reasonably possible increase in actuarial assumption | 0.50% |
Percentage of reasonably possible decrease in actuarial assumption | 0.50% |
Compensation rate | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 2 |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (2) |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Future life expectancy | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ 5 |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ (5) |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Duration of reasonably possible decrease in actuarial assumption | 1 year |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Duration of reasonably possible decrease in actuarial assumption | 1 year |
Retirement age | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | $ (1) |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 1 |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Duration of reasonably possible decrease in actuarial assumption | 1 year |
Duration of reasonably possible increase in actuarial assumption | 1 year |
Duration of reasonably possible decrease in actuarial assumption | 1 year |
EMPLOYEE BENEFIT PLANS - Asset
EMPLOYEE BENEFIT PLANS - Asset Allocation (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Employee Benefits [Abstract] | ||
Equity investments | 42.00% | 41.00% |
Fixed income investments | 56.00% | 58.00% |
Cash | 2.00% | 1.00% |
Total assets | 100.00% | 100.00% |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cost of Sales | ||
Disclosure of defined benefit plans [line items] | ||
Employer contributions | $ 13 | $ 14 |
EMPLOYEE COMPENSATION AND BEN_3
EMPLOYEE COMPENSATION AND BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | ||
Short-term employee compensation and benefits | $ 219 | $ 185 |
Long-term employee compensation and benefits | 31 | 35 |
Share-based compensation | 5 | 4 |
Employee compensation and benefits | $ 255 | $ 224 |
FINANCE COSTS AND INTEREST IN_3
FINANCE COSTS AND INTEREST INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | ||
Interest on long-term debt | $ 36 | $ 35 |
Interest on other long-term debt | 1 | 2 |
Amortization of debt issue costs | 2 | 2 |
Revolving bank lines fees and other | 3 | 4 |
Interest expense | 42 | 43 |
Net interest expense on net pension obligations | 0 | 1 |
Interest expense on lease liabilities | 1 | 1 |
Total finance costs | 43 | 45 |
Interest costs capitalised | $ 4 | $ 2 |
INCOME TAX - Deferred Income Ta
INCOME TAX - Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax assets | $ 3 | $ 2 |
Deferred income tax liabilities | (200) | (192) |
Net deferred income tax liabilities | (197) | (190) |
Property, plant and equipment, differences in basis | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | 210 | 209 |
Benefit of tax loss carryforwards | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | (6) | (7) |
Other temporary differences in basis | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liabilities | $ (7) | $ (12) |
INCOME TAX - Tax Loss Carryforw
INCOME TAX - Tax Loss Carryforward (Details) - Dec. 31, 2020 € in Millions, $ in Millions, $ in Millions | USD ($) | CAD ($) | EUR (€) |
General Business Tax Credit Carryforward | Internal Revenue Service (IRS) 1 [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax loss carryforwards | $ 266 | ||
General Business Tax Credit Carryforward | Belgium – trading loss | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax loss carryforwards | € | € 28 | ||
Capital Loss Carryforward | Canada | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax loss carryforwards | $ 150 |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019CAD ($) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Recognition (derecognition) of the benefit of tax losses and other deferred tax assets | $ 6 | $ (5) | ||||
Income tax benefit to recognize deferred tax asset | 5 | |||||
Deductible temporary differences | 210 | |||||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | $ 995 | $ 872 | ||||
Belgium – trading loss | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deductible temporary differences | € | € 28 | € 23 | ||||
Canada | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deductible temporary differences | $ 123 | $ 122 |
INCOME TAX - Deductible Tempora
INCOME TAX - Deductible Temporary Differences (Details) $ in Millions | Dec. 31, 2020USD ($) |
Income Taxes [Abstract] | |
Deductible temporary differences | $ 210 |
United States – State tax credits | $ 55 |
INCOME TAX - Income Tax Compone
INCOME TAX - Income Tax Components (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Current income tax (expense) recovery | $ (140) | $ 47 |
Deferred income tax expense | (10) | (20) |
Income tax expense | $ (150) | $ 27 |
INCOME TAX - Income Tax Expense
INCOME TAX - Income Tax Expense Calculation and Income Tax Recovery (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Earnings (loss) before income tax | $ 647 | $ (69) |
Income tax (expense) recovery at combined Canadian federal and provincial statutory rate of 25% (2019 – 26%) | (162) | 18 |
Effect of: | ||
Rate differences on foreign activities | 6 | 10 |
Recognition (derecognition) of the benefit of tax losses and other deferred tax assets | 6 | (5) |
Remeasurement of deferred tax liabilities, net | 0 | 4 |
Income tax expense | $ (150) | $ 27 |
Applicable tax rate | 25.00% | 26.00% |
Actuarial loss on post-employment obligations | $ 2 | $ 0 |
Actuarial gain on post-employment obligation, tax | 0 | 0 |
Actuarial loss on defined benefit pension obligation, net of tax | (2) | 0 |
Foreign currency translation gain on foreign operations | 13 | 13 |
Foreign currency translation loss on foreign operations, tax | 1 | 1 |
Foreign currency translation loss on foreign operations, net of tax | $ 14 | $ 14 |
SHAREHOLDERS' EQUITY - Share Ca
SHAREHOLDERS' EQUITY - Share Capital (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Apr. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 22, 2019 | Nov. 01, 2018 | Oct. 22, 2018 | |||
Reconciliation of number of shares outstanding [abstract] | ||||||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,800,000) | |||||||
Changes in equity [abstract] | ||||||||
Balance, beginning of year | $ 704 | |||||||
Balance, end of year | $ 1,120 | $ 704 | ||||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,800,000) | |||||||
Share capital | ||||||||
Reconciliation of number of shares outstanding [abstract] | ||||||||
Common shares outstanding, beginning of year (in shares) | 81,700,000 | 81,400,000 | 81,700,000 | |||||
Issuance of common shares upon exercise of options and Dividend Reinvestment Plan (in shares) | 400,000 | 0 | ||||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,100,000) | 200,000 | ||||||
Common shares outstanding, end of year (in shares) | 80,700,000 | 81,400,000 | ||||||
Changes in equity [abstract] | ||||||||
Balance, beginning of year | $ 1,280 | $ 1,278 | $ 1,280 | |||||
Issuance of common shares upon exercise of options(1) | 7 | 1 | ||||||
Shares repurchased and cancelled | (18) | (27) | ||||||
Balance, end of year | $ 1,267 | $ 1,278 | ||||||
Reverse Accrual For Number Of Shares To Be Repurchased And Cancelled | 0 | 1,600,000 | ||||||
Reverse Accrual For Cancellation Of Treasury Shares | $ 0 | $ 24 | ||||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,100,000) | 200,000 | ||||||
Retained earnings (deficit) | ||||||||
Changes in equity [abstract] | ||||||||
Balance, beginning of year | $ (168) | $ (299) | [1] | $ (168) | ||||
Balance, end of year | $ 116 | $ (299) | [1] | |||||
Normal Course Issuer Bid Program | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Stock Repurchase Program, Authorized Amount | 4,083,429 | 5,191,965 | ||||||
Changes in equity [abstract] | ||||||||
Percentage Of Public Float | 5.00% | 10.00% | ||||||
Entity Public Float, Shares | 81,668,583 | 51,919,654 | ||||||
Automatic Share Purchase Plan | ||||||||
Reconciliation of number of shares outstanding [abstract] | ||||||||
Number of Shares Repurchased and Cancelled | 1,400,000 | |||||||
Changes in equity [abstract] | ||||||||
Shares repurchased and cancelled in 2019 | $ 39 | |||||||
Automatic Share Purchase Plan | Share capital | ||||||||
Changes in equity [abstract] | ||||||||
Shares repurchased and cancelled in 2019 | 22 | |||||||
Automatic Share Purchase Plan | Retained earnings (deficit) | ||||||||
Changes in equity [abstract] | ||||||||
Shares repurchased and cancelled in 2019 | $ 17 | |||||||
[1] | (i) Retained earnings (deficit) comprised of: Deficit arising on cashless exercise of warrants in 2013 15 $ (263) $ (263) All other retained earnings (deficit) 379 (36) $ 116 $ (299) |
SHAREHOLDERS' EQUITY SHAREHOLDE
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY - Repurchase Agreements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Apr. 06, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 22, 2019 | Nov. 01, 2018 | Oct. 22, 2018 | |
Disclosure of classes of share capital [line items] | ||||||
Options granted (in shares) | 0 | 200,000 | ||||
Payments to acquire or redeem entity's shares | $ 48,000,000 | |||||
Payments to acquire or redeem entity's shares | $ 48,000,000 | |||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,800,000) | |||||
Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Payments to acquire or redeem entity's shares | $ 3,000,000 | |||||
Payments to acquire or redeem entity's shares | $ 3,000,000 | |||||
Shares to be repurchased and cancelled under ASPP in 2019 (in shares) | (1,100,000) | 200,000 | ||||
Shares repurchased and cancelled | $ (18,000,000) | $ (27,000,000) | ||||
Retained earnings (deficit) | ||||||
Disclosure of classes of share capital [line items] | ||||||
Payments to acquire or redeem entity's shares | (10,000,000) | (2,000,000) | ||||
Payments to acquire or redeem entity's shares | (10,000,000) | (2,000,000) | ||||
Share capital [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Payments to acquire or redeem entity's shares | 28,000,000 | 5,000,000 | ||||
Payments to acquire or redeem entity's shares | $ 28,000,000 | $ 5,000,000 | ||||
Normal Course Issuer Bid Program | ||||||
Disclosure of classes of share capital [line items] | ||||||
Authorized repurchase amount (in shares) | 4,083,429 | 5,191,965 | ||||
Percentage Of Public Float | 5.00% | 10.00% | ||||
Entity Public Float, Shares | 81,668,583 | 51,919,654 | ||||
Stock repurchase program, authorized amount per day (in shares) | 79,704 | |||||
Normal Course Issuer Bid Program | maximum per day [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Authorized repurchase amount (in shares) | 145,940 | 72,970 | ||||
Automatic Share Purchase Plan | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number shares repurchased and cancelled (in shares) | 1,400,000 | |||||
Shares repurchased and cancelled in 2019 | $ 39,000,000 | |||||
Automatic Share Purchase Plan | Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares repurchased and cancelled in 2019 | 22,000,000 | |||||
Automatic Share Purchase Plan | Retained earnings (deficit) | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares repurchased and cancelled in 2019 | $ 17,000,000 | |||||
Shares purchased and accrued for in 2018 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number shares repurchased and cancelled (in shares) | 200,000 | |||||
Shares repurchased and cancelled in 2019 | $ 4,000,000 | |||||
Shares purchased and accrued for in 2018 | Share capital | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares repurchased and cancelled in 2019 | 2,000,000 | |||||
Shares purchased and accrued for in 2018 | Retained earnings (deficit) | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares repurchased and cancelled in 2019 | $ 2,000,000 |
SHAREHOLDERS' EQUITY - Stock Op
SHAREHOLDERS' EQUITY - Stock Options Activity (Details) | 12 Months Ended | ||||
Dec. 31, 2020shares$ / shares | Dec. 31, 2019shares$ / sharesCAD ($) | Dec. 31, 2020sharesCAD ($) | Dec. 31, 2019sharesCAD ($) | Dec. 31, 2018CAD ($) | |
Options (millions) | |||||
Balance, beginning of year (in shares) | 1,700,000 | 1,600,000 | |||
Options granted (in shares) | 0 | 200,000 | |||
Options exercised (in shares) | (400,000) | 0 | |||
Balance, end of year (in shares) | 1,315,504 | 1,700,000 | |||
Number of share options forfeited in share-based payment arrangement (in shares) | 0 | 100,000 | |||
Exercisable at year-end (in shares) | 765,504 | 900,000 | 765,504 | 900,000 | |
Weighted Average Exercise Price (C $) | |||||
Share options outstanding (in USD per share) | (per share) | $ 34.99 | $ 32.09 | $ 34.99 | $ 32.09 | $ 31.02 |
Share options granted (in Canadian dollar per share) | (per share) | 0 | $ 37.80 | |||
Share options exercised(in USD per share) | (per share) | 21.69 | 19.38 | |||
Share options forfeited(in USD per share) | (per share) | 0 | $ 35.64 | |||
Share options exercisable (in USD per share) | (per share) | $ 32.38 | $ 32.38 | $ 27.10 |
SHAREHOLDERS' EQUITY SHAREHOL_2
SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY - Share-based Payments Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($)shares$ / shares | Dec. 31, 2019USD ($)shares$ / shares | Dec. 31, 2019USD ($)CAD ($) | Dec. 31, 2014USD ($)shares | Feb. 01, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number Of Common Shares Issued From Options Exercised | shares | (400,000) | ||||
Options granted (in shares) | shares | 0 | 200,000 | |||
Share-based compensation | $ 5 | $ 4 | |||
Number of share options exercised (in shares) | shares | 400,000 | 0 | |||
Proceeds from exercise of options | $ 6 | $ 1 | |||
Stock options exercised | $ 1 | $ 1 | |||
Share price for share options exercised during period at date of exercise (in USD per share) | $ / shares | $ 44.88 | $ 35.49 | |||
Number of warrants exercised (in shares) | shares | 134,400,000 | ||||
Number of shares issued upon exercise of warrants (in shares) | shares | 8,400,000 | ||||
Share options exercised(in USD per share) | (per share) | $ 21.69 | $ 19.38 | |||
Share capital | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Issuance of common shares upon exercise of options and Dividend Reinvestment Plan (in shares) | shares | 400,000 | 0 | |||
Increase (decrease) through exercise of warrants, equity | $ (298) | ||||
Revaluation surplus | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Increase (decrease) through exercise of warrants, equity | 35 | ||||
Retained earnings | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Deficit arising on cashless exercise of warrants in 2013 | $ (263) | $ (263) | $ (263) | $ 263 | |
Employee Stock Option | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 5 years | ||||
Expiration period | 10 years | ||||
Share-based compensation | $ 1 | 1 | |||
Restricted Stock Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Vesting period | 3 years | ||||
Payment date from vesting date | 30 days | ||||
Restricted Stock Units and Deferred Common Share Units | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Liabilities from share-based payment transactions | $ 10 | 6 | 6 | ||
Restricted Stock Units and Deferred Common Share Units | Other Liabilities | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Liabilities from share-based payment transactions | 6 | 4 | 4 | ||
Restricted Stock Units and Deferred Common Share Units | Accounts Payable and Accrued Liabilities | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Liabilities from share-based payment transactions | $ 4 | $ 2 | $ 2 | ||
Norbord, Inc. | Major ordinary share transactions | West Fraser Timber Co. Ltd. | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Number of shares issued per common share held | 0.675 |
SHAREHOLDERS' EQUITY - Stock _2
SHAREHOLDERS' EQUITY - Stock Option Fair Value Assumptions (Details) | 12 Months Ended | |||
Dec. 31, 2020CAD ($)year$ / shares | Dec. 31, 2020CAD ($)yearUSD ($) | Dec. 31, 2019CAD ($)year$ / shares | Dec. 31, 2019CAD ($)yearUSD ($) | |
Share Capital, Reserves, And Other Equity Interest [Abstract] | ||||
Risk-free interest rate | 0.00% | 0.00% | 1.60% | 1.60% |
Expected volatility | 0.00% | 0.00% | 30.00% | 30.00% |
Dividend yield | 0.00% | 0.00% | 2.10% | 2.10% |
Expected option life (years) | year | 0 | 0 | 5 | 5 |
Weighted average fair value per option granted (in Canadian dollars) | $ 0 | $ 0 | $ 5.98 | $ 5.98 |
Share options granted (in Canadian dollar per share) | $ 0 | $ 37.80 | ||
Weighted average share price | $ / shares | $ 0 | $ 37.37 |
SHAREHOLDERS' EQUITY - Stock _3
SHAREHOLDERS' EQUITY - Stock Option Exercise Price Ranges (Details) | 12 Months Ended | ||||
Dec. 31, 2020shares$ / shares | Dec. 31, 2020sharesCAD ($) | Dec. 31, 2019shares$ / shares | Dec. 31, 2019sharesCAD ($) | Dec. 31, 2018sharesCAD ($) | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 1,315,504 | 1,315,504 | 1,700,000 | 1,700,000 | 1,600,000 |
Options exercisable (in shares) | shares | 765,504 | 765,504 | 900,000 | 900,000 | |
Weighted average exercise price, options exercisable (in dollars per share) | (per share) | $ 32.38 | $ 32.38 | $ 27.10 | ||
Share options exercisable (in USD per share) | (per share) | $ 32.38 | 32.38 | 27.10 | ||
Weighted average remaining contractual life of outstanding share options | 6 years 3 months | ||||
Share options outstanding (in USD per share) | (per share) | $ 34.99 | $ 34.99 | $ 32.09 | $ 32.09 | $ 31.02 |
$20.01–$25.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 502 | 502 | |||
Options exercisable (in shares) | shares | 502 | 502 | |||
Weighted average exercise price, options exercisable (in dollars per share) | $ | $ 21.44 | ||||
Share options exercisable (in USD per share) | $ | $ 21.44 | ||||
Weighted average remaining contractual life of outstanding share options | 3 years 5 months 12 days | ||||
Share options outstanding (in USD per share) | $ 21.44 | ||||
$25.01–$30.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 270,000 | 270,000 | |||
Options exercisable (in shares) | shares | 270,000 | 270,000 | |||
Weighted average exercise price, options exercisable (in dollars per share) | $ | $ 27.06 | ||||
Share options exercisable (in USD per share) | $ | $ 27.06 | ||||
Weighted average remaining contractual life of outstanding share options | 4 years 7 months 9 days | ||||
Share options outstanding (in USD per share) | $ 27.06 | ||||
$30.01–$35.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 353,002 | 353,002 | |||
Options exercisable (in shares) | shares | 281,002 | 281,002 | |||
Weighted average exercise price, options exercisable (in dollars per share) | $ | $ 31.88 | ||||
Share options exercisable (in USD per share) | $ | $ 31.88 | ||||
Weighted average remaining contractual life of outstanding share options | 4 years 3 months 21 days | ||||
Share options outstanding (in USD per share) | $ 32.51 | ||||
$35.01–$40.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 523,000 | 523,000 | |||
Options exercisable (in shares) | shares | 150,000 | 150,000 | |||
Weighted average exercise price, options exercisable (in dollars per share) | $ | $ 36.94 | ||||
Share options exercisable (in USD per share) | $ | $ 36.94 | ||||
Weighted average remaining contractual life of outstanding share options | 8 years 1 month 6 days | ||||
Share options outstanding (in USD per share) | $ 37.11 | ||||
$45.01–$50.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Options (in shares) | shares | 169,000 | 169,000 | |||
Options exercisable (in shares) | shares | 64,000 | 64,000 | |||
Weighted average exercise price, options exercisable (in dollars per share) | $ | $ 46.35 | ||||
Share options exercisable (in USD per share) | $ | $ 46.35 | ||||
Weighted average remaining contractual life of outstanding share options | 7 years 1 month 9 days | ||||
Share options outstanding (in USD per share) | $ 46.35 | ||||
Bottom of range [member] | $20.01–$25.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 20.01 | ||||
Bottom of range [member] | $25.01–$30.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 25.01 | ||||
Bottom of range [member] | $30.01–$35.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 30.01 | ||||
Bottom of range [member] | $35.01–$40.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 35.01 | ||||
Bottom of range [member] | $45.01–$50.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 45.01 | ||||
Top of range [member] | $20.01–$25.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 25 | ||||
Top of range [member] | $25.01–$30.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 30 | ||||
Top of range [member] | $30.01–$35.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 35 | ||||
Top of range [member] | $35.01–$40.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | 40 | ||||
Top of range [member] | $45.01–$50.00 | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Share options outstanding (in USD per share) | $ 50 |
SHAREHOLDERS' EQUITY - Accumula
SHAREHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Actuarial loss on defined benefit pension obligation, net of tax | $ (2) | $ 0 | |
Accumulated other comprehensive loss, net of tax | 1,120 | 704 | |
Foreign currency translation loss on foreign operations, tax | 1 | 1 | |
Income tax relating to actuarial loss on defined benefit pension obligation | 0 | 0 | |
Income tax relating to exchange differences on translation included in other comprehensive income | (1) | (1) | |
Income tax relating to actuarial loss on defined benefit pension obligation | 0 | 0 | |
Accumulated other comprehensive loss | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Foreign currency translation loss on investment in foreign operations, net of tax of $(3) (December 31, 2015 – $(10)) | (131) | (145) | |
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2015 – $3) | (8) | (8) | |
Actuarial loss on defined benefit pension obligation, net of tax | (32) | (30) | |
Accumulated other comprehensive loss, net of tax | (171) | (183) | $ (197) |
Foreign currency translation loss on foreign operations, tax | (3) | (4) | |
Income tax relating to hedges of net investments in foreign operations | 3 | 3 | |
Income tax relating to actuarial loss on defined benefit pension obligation | 9 | 9 | |
Income tax relating to exchange differences on translation included in other comprehensive income | 3 | 4 | |
Income tax relating to hedges of net investments in foreign operations | 3 | 3 | |
Income tax relating to actuarial loss on defined benefit pension obligation | $ 9 | $ 9 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | ||
Earnings (loss) available to common shareholders | $ 497 | $ (42) |
Common shares (millions): | ||
Weighted average number of common shares outstanding | 80.9 | 81.8 |
Dilutive stock options (in shares) | 0.1 | 0 |
Diluted number of common shares | 81 | 81.8 |
Earnings (loss) per common share: | ||
Basic (in dollars per share) | $ 6.14 | $ (0.51) |
Diluted (in dollars per share) | $ 6.14 | $ (0.51) |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Earnings per share [abstract] | ||
Antidilutive securities (in shares) | 0.7 | 0.9 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Other Items (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | ||
Stock-based compensation | $ 6 | $ 4 |
Pension funding (greater) less than expense | (2) | (2) |
Cash interest paid less than interest expense | (1) | 10 |
Amortization of debt issue costs | 2 | 2 |
Unrealized loss on outstanding forwards | 0 | 1 |
Unrealized foreign exchange loss on translation of monetary balances | 4 | 2 |
Other | (4) | (1) |
Other items | $ 5 | $ 16 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Net Change in Non-Cash Working Capital (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash (used for) provided by: | ||
Accounts receivable | $ (88) | $ 13 |
Prepaids | 1 | (1) |
Inventory | 5 | (7) |
Accounts payable and accrued liabilities | 66 | (52) |
Increase (decrease) in working capital | (16) | (47) |
Cash interest and income taxes comprise: | ||
Cash interest paid | (45) | (34) |
Cash interest received | 0 | 2 |
Cash taxes paid | (15) | (70) |
Cash taxes received | $ 45 | $ 28 |
SUPPLEMENTAL CASH FLOW INFORM_5
SUPPLEMENTAL CASH FLOW INFORMATION - Net Change in Financial Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | ||
Amortization of debt issue costs | $ 2 | $ 2 |
Long-term debt | 1 | 107 |
Increase (Decrease) in Borrowings, Other | (68) | 68 |
Net (decrease) increase in financial liabilities | $ (67) | $ 175 |
SUPPLEMENTAL CASH FLOW INFORM_6
SUPPLEMENTAL CASH FLOW INFORMATION - Cash and Non-Cash Movements in Financial Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash movements: | ||
Proceeds from issue of bonds, notes and debentures | $ 0 | $ 350 |
Repayment of debt | 0 | (240) |
Payments for debt issue costs | 1 | 6 |
Proceeds From (Repayments For) Accounts Receivable Securitization | (68) | 68 |
Cash movements | (69) | 172 |
Non-cash movements: | ||
Amortization of debt issue costs | 2 | 2 |
Debt Issuance Costs Incurred During Noncash Or Partial Noncash Transaction1 | 0 | (1) |
Interest expense | 2 | 3 |
Net (decrease) increase in financial liabilities | $ (67) | $ 175 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2020CAD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about hedging instruments [line items] | |||||||
Number of Customers Representing Greater Than 10% Of Sales | customer | 1 | 1 | |||||
Cash and cash equivalents | $ 568,000,000 | $ 20,000,000 | $ 128,000,000 | ||||
Debt issue costs | 7,000,000 | 8,000,000 | |||||
Revolving Bank Line | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Unutilized borrowing facilities | 292,000,000 | 237,000,000 | |||||
Securitisations | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Recognised liabilities representing continuing involvement in derecognised financial assets | 0 | 68,000,000 | |||||
Unutilized borrowing facilities | 125,000,000 | ||||||
Foreign Currency Forward Contracts | Cash flow hedges | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Unrealized gain (loss) on derivatives | 1,000,000 | 1,000,000 | |||||
Gains (losses) on financial assets at fair value through profit or loss | 3,000,000 | 1,000,000 | |||||
Sensitivity analysis on derivative instrument, change in exchange rate, impact | 1,000,000 | ||||||
Notional amount | $ 35 | $ 52 | |||||
Foreign Currency Options | Cash flow hedges | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Unrealized gain (loss) on derivatives | 1,000,000 | 1,000,000 | |||||
Gains (losses) on financial assets at fair value through profit or loss | 1,000,000 | $ 1,000,000 | |||||
Sensitivity analysis on derivative instrument, change in exchange rate, impact | $ 1,000,000 | ||||||
Notional amount | € | € 30 | € 30 | |||||
Commodity price risk | Expected Natural Gas Consumption | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Hedging instrument, percentage | 2.00% | 3.00% | |||||
Commodity price risk | Forecasted Electricity Consumption | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Hedging instrument, percentage purchased in regulated markets | 52.00% | 50.00% | |||||
Commodity price risk | Deregulated Electricity Consumption | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Hedging instrument, percentage | 25.00% | 25.00% | |||||
Currency risk | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Hedging instrument, maximum percentage of foreign exchange exposures | 100.00% | ||||||
Hedging instrument, period | 3 years | ||||||
Credit risk | Trade receivables | |||||||
Disclosure of detailed information about hedging instruments [line items] | |||||||
Allowance account for credit losses of financial assets | $ 1,000,000 | $ 1,000,000 |
FINANCIAL INSTRUMENTS - Future
FINANCIAL INSTRUMENTS - Future Cash Outflows for Financial Liabilities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | $ 665 |
Interest | 190 |
Long-term debt, including interest | 855 |
Less than 1 Year | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 0 |
Interest | 40 |
Long-term debt, including interest | 40 |
2022 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 0 |
Interest | 40 |
Long-term debt, including interest | 40 |
2023 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 315 |
Interest | 30 |
Long-term debt, including interest | 345 |
2024 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 0 |
Interest | 20 |
Long-term debt, including interest | 20 |
2025 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 0 |
Interest | 20 |
Long-term debt, including interest | 20 |
Thereafter | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Principal | 350 |
Interest | 40 |
Long-term debt, including interest | $ 390 |
FINANCIAL INSTRUMENTS - Book an
FINANCIAL INSTRUMENTS - Book and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Net Book Value | $ 796 | $ 157 |
Fair Value | 796 | 157 |
Disclosure of financial liabilities [line items] | ||
Net Book Value | 1,021 | 1,004 |
Fair Value | 1,074 | 1,041 |
Accounts payable and accrued liabilities | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Net Book Value | 343 | 259 |
Fair Value | 343 | 259 |
Long-term debt | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Net Book Value | 665 | 665 |
Fair Value | 718 | 702 |
Other Non-Current Borrowings [Member] | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Net Book Value | 0 | 68 |
Fair Value | 0 | 68 |
Other liabilities(1) | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Net Book Value | 13 | 12 |
Fair Value | 13 | 12 |
Cash and cash equivalents | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Net Book Value | 568 | 20 |
Fair Value | 568 | 20 |
Accounts receivable | Amortized cost | ||
Disclosure of financial assets [line items] | ||
Net Book Value | 227 | 136 |
Fair Value | 227 | 136 |
Other assets(1) | Amortized cost | ||
Disclosure of financial assets [line items] | ||
Net Book Value | 1 | 1 |
Fair Value | $ 1 | $ 1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2020USD ($) |
Disclosure of contingent liabilities [line items] | |
Purchase commitments | $ 119 |
Gross lease liabilities | 24 |
Reforestation obligation | 5 |
Non-derivative financial liabilities, undiscounted cash flows | 148 |
Less than 1 Year | |
Disclosure of contingent liabilities [line items] | |
Purchase commitments | 33 |
Gross lease liabilities | 9 |
Reforestation obligation | 2 |
Non-derivative financial liabilities, undiscounted cash flows | 44 |
1–5 Years | |
Disclosure of contingent liabilities [line items] | |
Purchase commitments | 44 |
Gross lease liabilities | 11 |
Reforestation obligation | 2 |
Non-derivative financial liabilities, undiscounted cash flows | 57 |
Thereafter | |
Disclosure of contingent liabilities [line items] | |
Purchase commitments | 42 |
Gross lease liabilities | 4 |
Reforestation obligation | 1 |
Non-derivative financial liabilities, undiscounted cash flows | $ 47 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Brookfield | ||
Disclosure of transactions between related parties [line items] | ||
Indemnity commitment | $ 1 | $ 1 |
Services received from related party transactions | $ 1 | 1 |
Interex Forest Products Ltd. | ||
Disclosure of transactions between related parties [line items] | ||
Proportion of ownership interest in associate | 25.00% | |
Revenue from sale from related party transactions | $ 47 | 71 |
Amounts receivable from related party transactions | 3 | 4 |
Investments accounted for using equity method, less than | $ 1 | $ 1 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Compensation of Key Management Personnel (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party [Abstract] | ||
Salaries, incentives and short-term benefits | $ 5 | $ 3 |
Share-based awards | 3 | 2 |
Compensation of Key Management Personnel | $ 8 | $ 5 |
GEOGRAPHIC SEGMENTS (Details)
GEOGRAPHIC SEGMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | ||
Sales | $ 2,407 | $ 1,731 |
EBITDA | 823 | 120 |
Depreciation and amortization | 133 | 136 |
Additions to property, plant and equipment | 124 | 141 |
Property, plant and equipment | 1,417 | 1,427 |
Operating segments | North America | ||
Disclosure of operating segments [line items] | ||
Sales | 1,937 | 1,237 |
EBITDA | 805 | 70 |
Depreciation and amortization | 110 | 110 |
Additions to property, plant and equipment | 89 | 96 |
Property, plant and equipment | 1,110 | 1,147 |
Operating segments | Europe | ||
Disclosure of operating segments [line items] | ||
Sales | 470 | 494 |
EBITDA | 48 | 64 |
Depreciation and amortization | 23 | 26 |
Additions to property, plant and equipment | 35 | 45 |
Property, plant and equipment | 307 | 280 |
Unallocated | ||
Disclosure of operating segments [line items] | ||
Sales | 0 | 0 |
EBITDA | (30) | (14) |
Depreciation and amortization | 0 | 0 |
Additions to property, plant and equipment | 0 | 0 |
Property, plant and equipment | $ 0 | $ 0 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Right-of-use assets | $ 21 | $ 18 | $ 24 |
Additions to right-of-use assets | 12 | 3 | |
Depreciation, right-of-use assets | (11) | (9) | |
Transfers | 2 | ||
Interest expense on lease liabilities | 1 | 1 | |
Expense relating to short-term leases for which recognition exemption has been used | 3 | 3 | |
Cash outflow for leases | $ 16 | $ 14 | |
Information about lessee's exposure arising from residual value guarantees | 1 million | 1 million | |
Land | |||
Leases [Abstract] | |||
Right-of-use assets | $ 3 | $ 3 | 3 |
Additions to right-of-use assets | 0 | 0 | |
Depreciation, right-of-use assets | 0 | 0 | |
Transfers | 0 | ||
Buildings | |||
Leases [Abstract] | |||
Right-of-use assets | 4 | 3 | 4 |
Additions to right-of-use assets | 1 | 0 | |
Depreciation, right-of-use assets | 0 | (1) | |
Transfers | 0 | ||
Production Equipment | |||
Leases [Abstract] | |||
Right-of-use assets | 14 | 12 | $ 17 |
Additions to right-of-use assets | 11 | 3 | |
Depreciation, right-of-use assets | (11) | $ (8) | |
Transfers | $ 2 |