Resolute Forest Products Inc.

CIK:0001393066|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Sales	$ 974	$ 817	$ 2,977	$ 2,830
Costs and expenses:
Depreciation and amortization	34	42	101	123
Selling, general and administrative expenses	57	32	133	114
Closure costs, impairment and other related charges (Note 3)	(1)	0	8	2
Net loss on disposition of assets	0	0	2	0
Operating income	124	102	576	685
Interest expense	(5)	(5)	(16)	(16)
Non-operating pension and other postretirement benefit (costs) credits	(3)	3	(13)	8
Other income (expense), net (Note 4)	37	20	95	(74)
Income before income taxes	153	120	642	603
Income tax provision (Note 12)	(66)	(40)	(89)	(167)
Net income including noncontrolling interest	87	80	553	436
Net income attributable to noncontrolling interest	0	0	0	(1)
Net income attributable to Resolute Forest Products Inc.	$ 87	$ 80	$ 553	$ 435
Net income per share attributable to Resolute Forest Products Inc. common shareholders (Note 6):
Basic (USD per share)	$ 1.12	$ 1.00	$ 7.14	$ 5.44
Diluted (USD per share)	$ 1.11	$ 0.99	$ 7.07	$ 5.39
Weighted-average number of Resolute Forest Products Inc. common shares outstanding:
Basic (shares)	77.5	79.4	77.4	80.0
Diluted (shares)	78.4	80.1	78.2	80.8
Product
Costs and expenses:
Cost of sales, excluding depreciation, amortization and distribution costs	$ 653	$ 554	$ 1,847	$ 1,642
Distribution costs
Costs and expenses:
Cost of sales, excluding depreciation, amortization and distribution costs	$ 107	$ 87	$ 310	$ 264

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income including noncontrolling interest	$ 553	$ 436
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Share-based compensation	6	3
Depreciation and amortization	101	123
Deferred income taxes	85	167
Net pension contributions and other postretirement benefit payments	(34)	(71)
Gain on previously-held equity investments (Note 2)	(42)	0
Net loss on disposition of assets	2	0
Loss (gain) on translation of foreign currency denominated deferred income taxes	42	(7)
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations	(70)	6
Net planned major maintenance amortization (payments)	19	(15)
Changes in working capital:
Accounts receivable	(39)	(45)
Inventories	(81)	(48)
Other current assets	(19)	(11)
Accounts payable and other	48	34
Other, net	20	8
Net cash provided by operating activities	591	580
Cash flows from investing activities:
Cash invested in fixed assets	(68)	(79)
Cash invested in intangible assets	(3)	0
Acquisitions of businesses, net of cash acquired (Note 2)	(49)	0
Disposition of assets	5	0
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber (Note 8)	(138)	(128)
Other investing activities, net	0	3
Net cash used in investing activities	(253)	(204)
Cash flows from financing activities:
Issuance of long-term debt (Note 10)	0	300
Payment of special dividend	0	(79)
Repayments of debt (Note 10)	(2)	(557)
Purchases of treasury stock (Note 14)	(2)	(34)
Payments of financing fees	0	(7)
Other financing activities, net	0	2
Net cash used in financing activities	(4)	(375)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(7)	(1)
Net increase in cash and cash equivalents, and restricted cash	327	0
Cash and cash equivalents, and restricted cash:
Beginning of period	152	159
End of period	479	159
Cash and cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	446	119
Restricted cash (included in “Other assets”)	$ 33	$ 40

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 446	$ 112
Accounts receivable, net:
Trade	297	257
Other	60	56
Inventories, net (Note 7)	609	510
Other current assets	49	54
Total current assets	1,461	989
Fixed assets, less accumulated depreciation of $1,840 and $1,752 as of September 30, 2022 and December 31, 2021, respectively	1,275	1,270
Amortizable intangible assets, less accumulated amortization of $41 and $37 as of September 30, 2022 and December 31, 2021, respectively	57	57
Goodwill (Note 2)	85	31
Deferred income tax assets	515	653
Operating lease right-of-use assets	54	54
Other assets (Note 8)	606	484
Total assets	4,053	3,538
Current liabilities:
Accounts payable and other (Note 9)	493	421
Current portion of long-term debt (Note 10)	1	2
Current portion of operating lease liabilities	8	8
Total current liabilities	502	431
Long-term debt, net of current portion (Note 10)	300	300
Pension and other postretirement benefit obligations	991	1,151
Deferred income tax liabilities	2	0
Operating lease liabilities, net of current portion	48	51
Other liabilities	91	88
Total liabilities	1,934	2,021
Commitments and contingencies (Note 13)
Resolute Forest Products Inc. shareholders’ equity:
Common stock, $0.001 par value. 121.3 million shares issued and 76.8 million shares outstanding as of September 30, 2022; 121.2 million shares issued and 76.8 million shares outstanding as of December 31, 2021	0	0
Additional paid-in capital	3,811	3,807
Deficit	(456)	(1,009)
Accumulated other comprehensive loss (Note 5)	(1,015)	(1,062)
Treasury stock at cost, 44.5 million shares and 44.4 million shares as of September 30, 2022 and December 31, 2021, respectively	(224)	(222)
Total Resolute Forest Products Inc. shareholders’ equity	2,116	1,514
Noncontrolling interest	3	3
Total equity	2,119	1,517
Total liabilities and equity	$ 4,053	$ 3,538