Domtar CORP

CIK:0001381531|SEC Filings

Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Sales	$ 1,755	$ 1,763	$ 3,433	$ 3,623
Operating expenses
Cost of sales, excluding depreciation and amortization	1,578	1,634	3,177	3,242
Depreciation and amortization	72	85	146	173
Selling, general and administrative	88	96	176	193
Impairment of long-lived assets (NOTE 10)	2	0	27	12
Closure and restructuring costs (NOTE 10)	17	2	51	2
Other operating (income) loss, net	(24)	16	(48)	5
Operating expenses	1,733	1,833	3,529	3,627
Operating income (loss)	22	(70)	(96)	(4)
Interest expense, net	57	58	114	119
Non-service components of net periodic benefit cost (NOTE 5)	0	(3)	(7)	(7)
(Loss) earnings before income taxes	(35)	(125)	(203)	(116)
Income tax expense (benefit) (NOTE 6)	21	(49)	21	(46)
Net loss	(56)	(76)	(224)	(70)
Net derivative (losses) gains on cash flow hedges:
Net (losses) gains arising during the period, net of tax	(5)	31	(14)	36
Less: Reclassification adjustment for losses (gains) included in net loss, net of tax	1	1	(6)	9
Foreign currency translation adjustments	(18)	60	(33)	61
Change in unrecognized gains (losses) and prior service cost related to pension and other post-retirement benefit plans, net of tax	5	0	5	(1)
Other comprehensive (loss) income	(17)	92	(48)	105
Comprehensive (loss) income	$ (73)	$ 16	$ (272)	$ 35

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net loss	$ (224)	$ (70)
Adjustments to reconcile net loss to cash flows provided from operating activities
Depreciation and amortization	146	173
Deferred income taxes and tax uncertainties (NOTE 6)	20	(30)
Impairment of long-lived assets (NOTE 10)	27	12
Impairment of inventory (NOTE 10)	14	0
Net gains on disposals of assets	(6)	(4)
Other	(9)	7
Changes in assets and liabilities, excluding the effects of sale of businesses
Receivables, including related party	(138)	20
Inventories	182	(25)
Prepaid expenses	10	7
Trade and other payables, including related party	70	87
Income and other taxes	5	(11)
Difference between employer pension and other post-retirement contributions and pension and other post-retirement expense	(46)	(48)
Other assets and other liabilities	(6)	0
Cash flows provided from operating activities	45	118
Investing activities
Additions to property, plant and equipment	(103)	(101)
Proceeds from disposals of property, plant and equipment	7	9
Proceeds from sale of businesses, net of cash disposed	7	0
Proceeds from government assistance for property, plant and equipment	42	0
Other	0	(1)
Cash flows used for investing activities	(47)	(93)
Financing activities
Net change in bank indebtedness	(10)	(8)
Change in revolving credit facility	55	(115)
Issuance of long-term debt, net of debt issue costs	0	148
Repayments of long-term debt	(37)	(35)
Other	0	(3)
Cash flows provided from (used for) financing activities	8	(13)
Net increase in cash, cash equivalents and restricted cash	6	12
Impact of foreign exchange on cash	0	3
Cash, cash equivalents and restricted cash at beginning of period	101	156
Cash, cash equivalents and restricted cash at end of period	107	171
Supplemental cash flow information
Interest	111	108
Income taxes	(2)	9
Cash and cash equivalents	56	99
Restricted cash included in Cash and cash equivalents	0	14
Restricted cash included in Other assets	51	58
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows	$ 107	$ 171

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents, including restricted cash of nil and $4	$ 56	$ 60
Receivables, less allowances of $5 and $5	712	617
Receivables from related party (NOTE 16)	31	33
Inventories (NOTE 7)	1,289	1,499
Prepaid expenses	78	63
Income and other taxes receivable	49	52
Other current assets	19	15
Total current assets	2,234	2,339
Property, plant and equipment, net	2,987	3,077
Operating lease right-of-use assets	63	71
Notes receivable from related party (NOTE 16)	65	64
Goodwill and other intangible assets, net (NOTE 8)	140	148
Deferred income tax assets	259	285
Other assets (NOTE 9)	709	674
Total assets	6,457	6,658
Current liabilities
Bank indebtedness	0	9
Trade and other payables	914	855
Income and other taxes payable	26	24
Operating lease liabilities due within one year	25	25
Due to related party (NOTE 16)	$ 20	$ 8
Other Liability, Current, Related Party [Extensible Enumeration]	us-gaap:RelatedPartyMember	us-gaap:RelatedPartyMember
Long-term debt due within one year (NOTE 11)	$ 75	$ 75
Total current liabilities	1,060	996
Long-term debt (NOTE 11)	2,770	2,749
Operating lease liabilities	64	64
Deferred income taxes and other	23	24
Pension and other post-retirement benefit obligations (NOTE 5)	534	588
Other liabilities and deferred credits (NOTE 13)	373	332
Commitments and contingencies (NOTE 14)
Shareholders' equity
Common stock $0.01 par value; 100 shares issued and outstanding	0	0
Additional paid-in capital	2,827	2,827
Deficit	(1,153)	(929)
Accumulated other comprehensive (loss) income	(41)	7
Total shareholders' equity	1,633	1,905
Total liabilities and shareholders' equity	$ 6,457	$ 6,658