false 2020 Q3 0001381531 --12-31 P9M 0 0 0 us-gaap:PropertyPlantAndEquipmentNet us-gaap:PropertyPlantAndEquipmentNet us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent us-gaap:LongTermDebtAndCapitalLeaseObligations us-gaap:LongTermDebtAndCapitalLeaseObligations P40Y P9Y P12Y P10Y P40Y P7Y P20Y 0001381531 2020-01-01 2020-09-30 xbrli:shares 0001381531 2020-10-31 iso4217:USD 0001381531 2020-07-01 2020-09-30 0001381531 2019-07-01 2019-09-30 0001381531 2019-01-01 2019-09-30 iso4217:USD xbrli:shares 0001381531 2020-09-30 0001381531 2019-12-31 0001381531 us-gaap:CommonStockMember 2020-06-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001381531 us-gaap:RetainedEarningsMember 2020-06-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001381531 2020-06-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001381531 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001381531 us-gaap:CommonStockMember 2020-09-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001381531 us-gaap:RetainedEarningsMember 2020-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001381531 us-gaap:CommonStockMember 2019-12-31 0001381531 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001381531 us-gaap:RetainedEarningsMember 2019-12-31 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001381531 us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-09-30 0001381531 us-gaap:RetainedEarningsMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001381531 us-gaap:CommonStockMember 2019-06-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001381531 us-gaap:RetainedEarningsMember 2019-06-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001381531 2019-06-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001381531 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001381531 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001381531 us-gaap:CommonStockMember 2019-09-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001381531 us-gaap:RetainedEarningsMember 2019-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001381531 2019-09-30 0001381531 us-gaap:CommonStockMember 2018-12-31 0001381531 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001381531 us-gaap:RetainedEarningsMember 2018-12-31 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001381531 2018-12-31 0001381531 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001381531 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001381531 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001381531 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001381531 us-gaap:NewAccountingPronouncementMember 2020-01-01 2020-09-30 0001381531 ufs:AppvionOperationsIncMember 2020-04-27 2020-04-27 0001381531 ufs:AppvionOperationsIncMember 2020-09-30 ufs:Customer xbrli:pure 0001381531 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember ufs:PulpAndPaperSegmentCustomerOneMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember ufs:PulpAndPaperSegmentCustomerOneMember 2019-01-01 2019-12-31 0001381531 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember ufs:PulpAndPaperSegmentCustomerTwoMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember ufs:PulpAndPaperSegmentCustomerTwoMember 2019-01-01 2019-12-31 0001381531 ufs:PulpAndPaperSegmentCustomerOneMember 2020-09-30 0001381531 ufs:PulpAndPaperSegmentCustomerOneMember 2019-12-31 0001381531 ufs:PulpAndPaperSegmentCustomerTwoMember 2020-09-30 0001381531 ufs:PulpAndPaperSegmentCustomerTwoMember 2019-12-31 0001381531 ufs:EquityTotalReturnSwapAgreementMember 2020-03-01 2020-03-31 0001381531 ufs:ForecastedNaturalGasAndOilPurchasesMember srt:MaximumMember 2020-01-01 2020-09-30 ufs:MMBTU 0001381531 ufs:NaturalGasCommodityContractsYearTwoThousandTwentyMember 2020-09-30 0001381531 ufs:NaturalGasCommodityContractsYearTwoThousandTwentyOneMember 2020-09-30 0001381531 ufs:NaturalGasCommodityContractsYearTwoThousandTwentyTwoMember 2020-09-30 0001381531 ufs:NaturalGasCommodityContractsYearTwoThousandTwentyThreeMember 2020-09-30 0001381531 us-gaap:ForeignExchangeContractMember 2020-01-01 2020-09-30 0001381531 ufs:CanadianSubsidiaryMember currency:CAD srt:MaximumMember 2020-01-01 2020-09-30 iso4217:CAD 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-09-30 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyOneMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-09-30 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyTwoMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-09-30 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-01-01 2020-09-30 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyOneMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-01-01 2020-09-30 0001381531 ufs:CADDenominatedNotionalContractualValueForTwoThousandAndTwentyTwoMember ufs:PulpAndPaperMember us-gaap:LongMember 2020-01-01 2020-09-30 0001381531 ufs:PrepaidExpensesMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:PrepaidExpensesMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 ufs:PrepaidExpensesMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:PrepaidExpensesMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member us-gaap:OtherAssetsMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:OtherAssetsMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member us-gaap:OtherAssetsMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member 2020-09-30 0001381531 ufs:TradeAndOtherPayablesMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:TradeAndOtherPayablesMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 ufs:TradeAndOtherPayablesMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:TradeAndOtherPayablesMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 ufs:OtherLiabilitiesAndDeferredCreditsMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:OtherLiabilitiesAndDeferredCreditsMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 ufs:OtherLiabilitiesAndDeferredCreditsMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel2Member ufs:OtherLiabilitiesAndDeferredCreditsMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 ufs:TradeAndOtherPayablesMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel1Member ufs:TradeAndOtherPayablesMember 2020-09-30 0001381531 ufs:OtherLiabilitiesAndDeferredCreditsMember 2020-09-30 0001381531 us-gaap:FairValueInputsLevel1Member ufs:OtherLiabilitiesAndDeferredCreditsMember 2020-09-30 0001381531 ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:CostOfSalesMember ufs:NaturalGasSwapContractsMember 2020-09-30 0001381531 us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 us-gaap:CostOfSalesMember us-gaap:ForeignExchangeOptionMember 2020-09-30 0001381531 ufs:PrepaidExpensesMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member ufs:PrepaidExpensesMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member us-gaap:OtherAssetsMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001381531 ufs:TradeAndOtherPayablesMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member ufs:TradeAndOtherPayablesMember us-gaap:ForeignExchangeOptionMember 2019-12-31 0001381531 ufs:TradeAndOtherPayablesMember ufs:NaturalGasSwapContractsMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member ufs:TradeAndOtherPayablesMember ufs:NaturalGasSwapContractsMember 2019-12-31 0001381531 ufs:OtherLiabilitiesAndDeferredCreditsMember ufs:NaturalGasSwapContractsMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel2Member ufs:OtherLiabilitiesAndDeferredCreditsMember ufs:NaturalGasSwapContractsMember 2019-12-31 0001381531 ufs:TradeAndOtherPayablesMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel1Member ufs:TradeAndOtherPayablesMember 2019-12-31 0001381531 ufs:OtherLiabilitiesAndDeferredCreditsMember 2019-12-31 0001381531 us-gaap:FairValueInputsLevel1Member ufs:OtherLiabilitiesAndDeferredCreditsMember 2019-12-31 0001381531 us-gaap:EmployeeStockOptionMember 2020-07-01 2020-09-30 0001381531 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001381531 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001381531 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember 2020-07-01 2020-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember 2019-07-01 2019-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-07-01 2020-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-07-01 2019-09-30 0001381531 srt:MinimumMember 2020-01-01 2020-09-30 0001381531 srt:MaximumMember 2020-01-01 2020-09-30 0001381531 us-gaap:UseRightsMember 2020-01-01 2020-09-30 0001381531 us-gaap:CustomerRelationshipsMember srt:MinimumMember 2020-01-01 2020-09-30 0001381531 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2020-01-01 2020-09-30 0001381531 us-gaap:TechnologyBasedIntangibleAssetsMember srt:MinimumMember 2020-01-01 2020-09-30 0001381531 us-gaap:TechnologyBasedIntangibleAssetsMember srt:MaximumMember 2020-01-01 2020-09-30 0001381531 us-gaap:NoncompeteAgreementsMember 2020-01-01 2020-09-30 0001381531 us-gaap:LicensingAgreementsMember 2020-01-01 2020-09-30 0001381531 us-gaap:UseRightsMember 2020-09-30 0001381531 us-gaap:CustomerRelationshipsMember 2020-09-30 0001381531 us-gaap:TechnologyBasedIntangibleAssetsMember 2020-09-30 0001381531 us-gaap:NoncompeteAgreementsMember 2020-09-30 0001381531 us-gaap:LicensingAgreementsMember 2020-09-30 0001381531 us-gaap:UseRightsMember 2019-12-31 0001381531 us-gaap:CustomerRelationshipsMember 2019-12-31 0001381531 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-12-31 0001381531 us-gaap:NoncompeteAgreementsMember 2019-12-31 0001381531 us-gaap:LicensingAgreementsMember 2019-12-31 0001381531 ufs:WaterRightsMember 2020-09-30 0001381531 us-gaap:TradeNamesMember 2020-09-30 0001381531 us-gaap:LicensingAgreementsMember 2020-09-30 0001381531 ufs:CatalogRightsMember 2020-09-30 0001381531 ufs:WaterRightsMember 2019-12-31 0001381531 us-gaap:TradeNamesMember 2019-12-31 0001381531 us-gaap:LicensingAgreementsMember 2019-12-31 0001381531 ufs:CatalogRightsMember 2019-12-31 utr:T 0001381531 ufs:CostReductionProgramMember srt:ScenarioForecastMember 2021-01-01 2021-03-31 ufs:Employee 0001381531 srt:MinimumMember ufs:CostReductionProgramMember ufs:KingsportTennesseeMillMember 2020-01-01 2020-09-30 0001381531 srt:MaximumMember ufs:CostReductionProgramMember ufs:KingsportTennesseeMillMember 2020-01-01 2020-09-30 0001381531 ufs:CostReductionProgramMember ufs:KingsportTennesseeMillMember 2020-09-30 0001381531 ufs:CostReductionProgramMember ufs:AshdownArkansasMillMember 2020-01-01 2020-09-30 0001381531 srt:MinimumMember ufs:CostReductionProgramMember ufs:AshdownArkansasMillMember 2020-01-01 2020-09-30 0001381531 srt:MaximumMember ufs:CostReductionProgramMember ufs:AshdownArkansasMillMember 2020-01-01 2020-09-30 0001381531 ufs:CostReductionProgramMember 2020-07-01 2020-09-30 0001381531 ufs:AshdownArkansasMillAndPortHuronMichiganMillMember ufs:ImpairmentOfLongLivedAssetsMember 2019-07-01 2019-09-30 0001381531 ufs:AshdownArkansasMillAndPortHuronMichiganMillMember 2019-07-01 2019-09-30 ufs:Machine 0001381531 ufs:AshdownArkansasMillAndPortHuronMichiganMillMember 2019-09-27 2019-09-27 0001381531 ufs:PersonalCareMember ufs:WacoTexasFacilityMember 2019-07-01 2019-09-30 0001381531 ufs:PersonalCareMember ufs:WacoTexasFacilityMember 2019-01-01 2019-09-30 0001381531 ufs:PreviousAndOngoingClosuresAndRestructuringMember 2020-07-01 2020-09-30 0001381531 ufs:PreviousAndOngoingClosuresAndRestructuringMember 2020-01-01 2020-09-30 0001381531 ufs:PreviousAndOngoingClosuresAndRestructuringMember 2019-07-01 2019-09-30 0001381531 ufs:PreviousAndOngoingClosuresAndRestructuringMember 2019-01-01 2019-09-30 0001381531 ufs:TermLoanAgreementMember 2020-05-05 0001381531 ufs:TermLoanAgreementMember 2020-05-04 2020-05-05 0001381531 ufs:TermLoanAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-05-04 2020-05-05 0001381531 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001381531 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001381531 ufs:NaturalGasSwapContractsMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-12-31 0001381531 ufs:NaturalGasSwapContractsMember 2019-01-01 2019-12-31 0001381531 ufs:CurrencyOptionsMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-12-31 0001381531 ufs:CurrencyOptionsMember 2019-01-01 2019-12-31 0001381531 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-12-31 0001381531 us-gaap:ForeignExchangeForwardMember 2019-01-01 2019-12-31 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember us-gaap:OtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember us-gaap:OtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001381531 us-gaap:OtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001381531 us-gaap:ForeignExchangeOptionMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-12-31 0001381531 us-gaap:ForeignExchangeOptionMember 2019-01-01 2019-12-31 0001381531 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-12-31 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-12-31 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-12-31 0001381531 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-12-31 0001381531 2019-01-01 2019-12-31 0001381531 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001381531 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001381531 ufs:NaturalGasSwapContractsMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001381531 ufs:NaturalGasSwapContractsMember 2020-01-01 2020-09-30 0001381531 ufs:CurrencyOptionsMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001381531 ufs:CurrencyOptionsMember 2020-01-01 2020-09-30 0001381531 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001381531 us-gaap:ForeignExchangeForwardMember 2020-01-01 2020-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember us-gaap:OtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001381531 us-gaap:OtherComprehensiveIncomeMember 2020-01-01 2020-09-30 0001381531 us-gaap:ForeignExchangeOptionMember us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:ForeignExchangeOptionMember 2020-01-01 2020-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-09-30 0001381531 us-gaap:PensionPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-09-30 0001381531 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-09-30 0001381531 us-gaap:AccumulatedTranslationAdjustmentMember 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:NaturalGasSwapContractsMember 2020-07-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:NaturalGasSwapContractsMember 2019-07-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:CurrencyOptionsAndForwardsMember 2019-07-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-07-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-07-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-07-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-07-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:NaturalGasSwapContractsMember 2020-01-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:NaturalGasSwapContractsMember 2019-01-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:CurrencyOptionsAndForwardsMember 2020-01-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember ufs:CurrencyOptionsAndForwardsMember 2019-01-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-09-30 0001381531 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-09-30 0001381531 2020-02-18 2020-02-18 0001381531 2020-04-15 2020-04-15 0001381531 srt:MaximumMember 2019-11-04 0001381531 srt:MaximumMember 2019-11-05 0001381531 us-gaap:IndemnificationGuaranteeMember 2020-01-01 2020-09-30 ufs:Segment 0001381531 us-gaap:OperatingSegmentsMember ufs:PulpAndPaperMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PulpAndPaperMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PulpAndPaperMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PulpAndPaperMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PersonalCareMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PersonalCareMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PersonalCareMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:PersonalCareMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember 2019-01-01 2019-09-30 0001381531 us-gaap:IntersegmentEliminationMember 2020-07-01 2020-09-30 0001381531 us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-30 0001381531 us-gaap:IntersegmentEliminationMember 2020-01-01 2020-09-30 0001381531 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:CommunicationPaperMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:CommunicationPaperMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:CommunicationPaperMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:CommunicationPaperMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:SpecialtyAndPackagingPaperMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:SpecialtyAndPackagingPaperMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:SpecialtyAndPackagingPaperMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:SpecialtyAndPackagingPaperMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:MarketPulpProductMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:MarketPulpProductMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:MarketPulpProductMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:MarketPulpProductMember 2019-01-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:AbsorbentHygieneProductsMember 2020-07-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:AbsorbentHygieneProductsMember 2019-07-01 2019-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:AbsorbentHygieneProductsMember 2020-01-01 2020-09-30 0001381531 us-gaap:OperatingSegmentsMember ufs:AbsorbentHygieneProductsMember 2019-01-01 2019-09-30 0001381531 us-gaap:CorporateNonSegmentMember 2020-07-01 2020-09-30 0001381531 us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001381531 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-09-30 0001381531 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001381531 us-gaap:CostOfSalesMember ufs:CanadaEmergencyWageSubsidyMember 2020-01-01 2020-09-30 0001381531 us-gaap:CostOfSalesMember ufs:CanadaEmergencyWageSubsidyMember 2020-07-01 2020-09-30 0001381531 ufs:SellingGeneralAndAdministrativeMember ufs:CanadaEmergencyWageSubsidyMember 2020-01-01 2020-09-30 0001381531 ufs:SellingGeneralAndAdministrativeMember ufs:CanadaEmergencyWageSubsidyMember 2020-07-01 2020-09-30 0001381531 ufs:CanadaEmergencyWageSubsidyMember 2020-01-01 2020-09-30 0001381531 ufs:CanadaEmergencyWageSubsidyMember 2020-07-01 2020-09-30 0001381531 srt:GuarantorSubsidiariesMember 2020-01-01 2020-09-30 0001381531 srt:NonGuarantorSubsidiariesMember 2020-01-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2020-07-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2020-07-01 2020-09-30 0001381531 srt:ConsolidationEliminationsMember 2020-07-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2020-07-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2020-01-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2020-01-01 2020-09-30 0001381531 srt:ConsolidationEliminationsMember 2020-01-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2020-01-01 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2019-07-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2019-07-01 2019-09-30 0001381531 srt:ConsolidationEliminationsMember 2019-07-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2019-07-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2019-01-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2019-01-01 2019-09-30 0001381531 srt:ConsolidationEliminationsMember 2019-01-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2019-01-01 2019-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2020-09-30 0001381531 srt:ConsolidationEliminationsMember 2020-09-30 0001381531 srt:ReportableLegalEntitiesMember srt:ParentCompanyMember 2019-12-31 0001381531 srt:ReportableLegalEntitiesMember srt:GuarantorSubsidiariesMember 2019-12-31 0001381531 srt:ReportableLegalEntitiesMember srt:NonGuarantorSubsidiariesMember 2019-12-31 0001381531 srt:ConsolidationEliminationsMember 2019-12-31 0001381531 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2018-12-31 0001381531 srt:GuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001381531 srt:NonGuarantorSubsidiariesMember srt:ReportableLegalEntitiesMember 2019-09-30 0001381531 srt:ConsolidationEliminationsMember 2019-09-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to_______

COMMISSION FILE NUMBER 001-33164

 

DOMTAR CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

 

20-5901152

(State of Incorporation)

 

(I.R.S. Employer

Identification No.)

234 Kingsley Park Drive, Fort Mill, SC 29715

(Address of principal executive offices)

(zip code)

(803) 802-7500

(Registrant’s telephone number)

 

Securities registered pursuant to Section 12(b) of the Act: Common Stock, Par Value $0.01 Per Share; Common stock traded on the New York Stock Exchange; trading symbol UFS.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes      NO  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation ST (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      NO  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

☐  

  

Small reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES      NO  

At October 31, 2020, 55,194,538 shares of the issuer’s common stock were outstanding.

 

 

 


 

DOMTAR CORPORATION

FORM 10-Q

For the Quarterly Period Ended September 30, 2020

INDEX

 

PART I.

FINANCIAL INFORMATION

3

 

 

 

ITEM 1.

FINANCIAL STATEMENTS (UNAUDITED)

3

 

 

 

 

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)

3

 

 

 

 

CONSOLIDATED BALANCE SHEETS

4

 

 

 

 

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

5

 

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

7

 

 

 

 

INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

8

 

 

 

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

9

 

 

 

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

46

 

 

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

60

 

 

 

ITEM 4.

CONTROLS AND PROCEDURES

60

 

 

 

PART II

OTHER INFORMATION

61

 

 

 

ITEM 1.

LEGAL PROCEEDINGS

61

 

 

 

ITEM 1A.

RISK FACTORS

61

 

 

 

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

62

 

 

 

ITEM 3.

DEFAULT UPON SENIOR SECURITIES

62

 

 

 

ITEM 4.

MINE SAFETY DISCLOSURES

62

 

 

 

ITEM 5.

OTHER INFORMATION

62

 

 

 

ITEM 6.

EXHIBITS

63

 

 

 

 

 


 

PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS (UNAUDITED)

 

DOMTAR CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED)

 

 

For the three months ended

 

 

For the nine months ended

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

(Unaudited)

 

 

$

 

 

$

 

 

$

 

 

$

 

Sales

 

1,124

 

 

 

1,283

 

 

 

3,414

 

 

 

3,976

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and amortization

 

911

 

 

 

1,041

 

 

 

2,831

 

 

 

3,172

 

Depreciation and amortization

 

71

 

 

 

72

 

 

 

214

 

 

 

219

 

Selling, general and administrative

 

99

 

 

 

94

 

 

 

294

 

 

 

322

 

Impairment of long-lived assets (NOTE 12)

 

111

 

 

 

33

 

 

 

111

 

 

 

58

 

Closure and restructuring costs (NOTE 12)

 

68

 

 

 

11

 

 

 

69

 

 

 

23

 

Other operating loss (income), net (NOTE 7)

 

 

 

 

3

 

 

 

(2

)

 

 

4

 

 

 

1,260

 

 

 

1,254

 

 

 

3,517

 

 

 

3,798

 

Operating (loss) income

 

(136

)

 

 

29

 

 

 

(103

)

 

 

178

 

Interest expense, net

 

14

 

 

 

12

 

 

 

43

 

 

 

38

 

Non-service components of net periodic benefit cost (NOTE 6)

 

(4

)

 

 

(2

)

 

 

(13

)

 

 

(7

)

(Loss) earnings before income taxes and equity loss

 

(146

)

 

 

19

 

 

 

(133

)

 

 

147

 

Income tax (benefit) expense (NOTE 8)

 

(55

)

 

 

(1

)

 

 

(67

)

 

 

28

 

Equity loss, net of taxes

 

1

 

 

 

 

 

 

2

 

 

 

1

 

Net (loss) earnings

 

(92

)

 

 

20

 

 

 

(68

)

 

 

118

 

Per common share (in dollars) (NOTE 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(1.67

)

 

 

0.33

 

 

 

(1.23

)

 

 

1.89

 

Diluted

 

(1.67

)

 

 

0.32

 

 

 

(1.23

)

 

 

1.88

 

Weighted average number of common shares

   outstanding (millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

55.2

 

 

 

61.5

 

 

 

55.5

 

 

 

62.5

 

Diluted

 

55.2

 

 

 

61.7

 

 

 

55.5

 

 

 

62.7

 

Cash dividends per common share

 

 

 

 

0.46

 

 

 

0.91

 

 

 

1.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) earnings

 

(92

)

 

 

20

 

 

 

(68

)

 

 

118

 

Other comprehensive income (loss) (NOTE 14):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivative gains (losses) on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains (losses) arising during the period, net of tax of

   $(7) and nil, respectively (2019 – $4 and $(1),

   respectively)

 

20

 

 

 

(9

)

 

 

 

 

 

5

 

Less: Reclassification adjustment for losses

   included in net earnings (loss), net of tax of $(1) and $(5),

   respectively (2019 – $(1) and $(2), respectively)

 

1

 

 

 

3

 

 

 

14

 

 

 

5

 

Foreign currency translation adjustments

 

40

 

 

 

(34

)

 

 

5

 

 

 

(12

)

Change in unrecognized (losses) gains and prior service cost

   (losses) related to pension and post-retirement benefit plans,

   net of tax of $12 and $11, respectively (2019 – $(1) and $(3),

   respectively)

 

(38

)

 

 

2

 

 

 

(35

)

 

 

7

 

Other comprehensive income (loss)

 

23

 

 

 

(38

)

 

 

(16

)

 

 

5

 

Comprehensive (loss) income

 

(69

)

 

 

(18

)

 

 

(84

)

 

 

123

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

3

 


 

DOMTAR CORPORATION

CONSOLIDATED BALANCE SHEETS

(IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED)

 

 

 

At

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

 

$

 

 

$

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

218

 

 

 

61

 

Receivables, less allowances of $11 and $6

 

 

543

 

 

 

577

 

Inventories (NOTE 9)

 

 

764

 

 

 

786

 

Prepaid expenses

 

 

36

 

 

 

33

 

Income and other taxes receivable

 

 

44

 

 

 

61

 

Total current assets

 

 

1,605

 

 

 

1,518

 

Property, plant and equipment, net

 

 

2,378

 

 

 

2,567

 

Operating lease right-of-use assets (NOTE 10)

 

 

72

 

 

 

81

 

Intangible assets, net (NOTE 11)

 

 

573

 

 

 

573

 

Other assets

 

 

163

 

 

 

164

 

Total assets

 

 

4,791

 

 

 

4,903

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Bank indebtedness

 

 

 

 

 

9

 

Trade and other payables

 

 

626

 

 

 

705

 

Income and other taxes payable

 

 

37

 

 

 

23

 

Operating lease liabilities due within one year (NOTE 10)

 

 

27

 

 

 

28

 

Long-term debt due within one year

 

 

13

 

 

 

1

 

Total current liabilities

 

 

703

 

 

 

766

 

Long-term debt

 

 

1,086

 

 

 

938

 

Operating lease liabilities (NOTE 10)

 

 

58

 

 

 

69

 

Deferred income taxes and other

 

 

413

 

 

 

479

 

Other liabilities and deferred credits

 

 

320

 

 

 

275

 

Commitments and contingencies (NOTE 16)

 

 

 

 

 

 

 

 

Shareholders' equity (NOTE 15)

 

 

 

 

 

 

 

 

Common stock $0.01 par value; authorized 2,000,000,000 shares;

   issued 65,001,104 and 65,001,104 shares

 

 

1

 

 

 

1

 

Treasury stock $0.01 par value; 9,808,481 and 8,120,194 shares

 

 

 

 

 

 

Additional paid-in capital

 

 

1,714

 

 

 

1,770

 

Retained earnings

 

 

905

 

 

 

998

 

Accumulated other comprehensive loss

 

 

(409

)

 

 

(393

)

Total shareholders' equity

 

 

2,211

 

 

 

2,376

 

Total liabilities and shareholders' equity

 

 

4,791

 

 

 

4,903

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

4

 


 

DOMTAR CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED)

 

 

 

For the three months ended

 

 

 

September 30, 2020

 

 

 

Issued and outstanding common shares

(millions of shares)

 

 

Common stock, at par

 

 

Additional paid-in capital

 

 

Retained

earnings

 

 

Accumulated other comprehensive loss

 

 

Total shareholders' equity

 

 

 

(Unaudited)

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Balance at June 30, 2020

 

 

55.2

 

 

 

1

 

 

 

1,711

 

 

 

997

 

 

 

(432

)

 

 

2,277

 

Stock-based compensation, net of tax

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(92

)

 

 

 

 

 

(92

)

Net derivative gains on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gains arising during the period,

   net of tax of $(7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

20

 

Less: Reclassification adjustment for losses

   included in net loss, net of tax of $(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

40

 

Change in unrecognized losses and prior service cost

   related to pension and post-retirement benefit

   plans, net of tax of $12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38

)

 

 

(38

)

Balance at September 30, 2020

 

 

55.2

 

 

 

1

 

 

 

1,714

 

 

 

905

 

 

 

(409

)

 

 

2,211

 

 

 

 

For the nine months ended

 

 

 

September 30, 2020

 

 

 

Issued and outstanding common shares

(millions of shares)

 

 

Common stock, at par

 

 

Additional paid-in capital

 

 

Retained

earnings

 

 

Accumulated other comprehensive loss

 

 

Total shareholders' equity

 

 

 

(Unaudited)

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Balance at December 31, 2019

 

 

56.9

 

 

 

1

 

 

 

1,770

 

 

 

998

 

 

 

(393

)

 

 

2,376

 

Stock-based compensation, net of tax

 

 

0.1

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(68

)

 

 

 

 

 

(68

)

Net derivative gains on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses arising during the period,

   net of tax of nil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Reclassification adjustment for losses

   included in net loss, net of tax of $(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

14

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

5

 

Change in unrecognized losses and prior service cost

   related to pension and post-retirement benefit

   plans, net of tax of $11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35

)

 

 

(35

)

Stock repurchase

 

 

(1.8

)

 

 

 

 

 

(59

)

 

 

 

 

 

 

 

 

(59

)

Cash dividends declared

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

 

 

 

(25

)

Balance at September 30, 2020

 

 

55.2

 

 

 

1

 

 

 

1,714

 

 

 

905

 

 

 

(409

)

 

 

2,211

 

 

The accompanying notes are an integral part of the consolidated financial statements.

5

 


 

DOMTAR CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(IN MILLIONS OF DOLLARS, UNLESS OTHERWISE NOTED)

 

 

 

For the three months ended

 

 

 

September 30, 2019

 

 

 

Issued and outstanding common shares

(millions of shares)

 

 

Common stock, at par

 

 

Additional paid-in capital

 

 

Retained

earnings

 

 

Accumulated other comprehensive loss

 

 

Total shareholders' equity

 

 

 

(Unaudited)

 

 

 

 

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Balance at June 30, 2019

 

 

62.9

 

 

 

1

 

 

 

1,977

 

 

 

1,065

 

 

 

(424

)

 

 

2,619

 

Stock-based compensation, net of tax

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

20

 

Net derivative losses on cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses arising during the period,

   net of tax of $4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

(9

)

Less: Reclassification adjustment for losses

   included in net earnings, net of tax of $(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

 

 

(34

)

Change in unrecognized gains and prior service cost

   related to pension and post-retirement benefit

   plans, net of tax of $(1)