10-K/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A

Amendment No. 1

(Mark One)

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011

¨ 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: 001-33776

ABITIBIBOWATER INC.

(Exact name of registrant as specified in its charter)

Delaware	98-0526415
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)

111 Duke Street, Suite 5000; Montreal, Quebec; Canada H3C 2MI

(Address of principal executive offices) (Zip Code)

(514) 875-2515

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, par value $.001 per share	New York Stock Exchange Toronto Stock Exchange
(Title of class)	(Name of exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.  Yes  þ    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes ¨    No þ

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 þ    No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this

Form 10-K. ¨

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

Large accelerated filer    þ	Accelerated filer    ¨	Non-accelerated filer    ¨	Smaller reporting company    ¨
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No þ

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of the last business day of the registrant’s most recently completed second fiscal quarter (June 30, 2011) was approximately $1.2 billion. For purposes of the foregoing calculation only, all directors, executive officers and 5% beneficial owners have been deemed affiliates.

Indicate by check mark whether the registrant has filed all documents and reports required to be filed pursuant to Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Yes þ    No ¨

As of January 31, 2012, there were 97,092,382 shares of AbitibiBowater Inc. common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement to be filed within 120 days of December 31, 2011 are incorporated by reference in this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14.

EXPLANATORY NOTE

This amendment (this “Amendment No. 1”) to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 29, 2012 (the “Original 10-K”), is being filed solely to furnish Exhibit 101 as required by Rule 405 of Regulation S-T. Exhibit 101 to this Amendment No. 1 contains certain information from the Original 10-K formatted in eXtensible Business Reporting Language (XBRL).

This Amendment No. 1 does not reflect any events that occurred subsequent to the filing of the Original 10-K and does not modify or update any of the disclosures contained in the Original 10-K. This Amendment No. 1 should therefore be read in conjunction with the Original 10-K. This Amendment No. 1 consists solely of the preceding cover page, this explanatory note, the exhibit list in Part IV – Item 15, the signature page, the exhibit index and Exhibit 101.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(3) Exhibits (numbered in accordance with Item 601 of Regulation S-K):

Exhibit No.	Description
2.1*	Sanction Order, dated September 23, 2010 (incorporated by reference from Exhibit 2.1 of AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
2.2*	Confirmation Order, dated November 23, 2010, which includes the Debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code, dated November 16, 2010 (as amended) (incorporated by reference from Exhibit 2.2 of AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
2.3*	CCAA Plan of Reorganization and Compromise, dated August 2, 2010 (incorporated by reference from Exhibit 99.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed August 5, 2010, SEC File No. 001-33776).
3.1*	Third Amended and Restated Certificate of Incorporation of AbitibiBowater Inc. (incorporated by reference from Exhibit 3(i) to AbitibiBowater Inc.’s Form 8-A filed on December 9, 2010).
3.2*	Third Amended and Restated By-laws of AbitibiBowater Inc. (incorporated by reference from Exhibit 3(ii) to AbitibiBowater Inc.’s Form 8-A filed on December 9, 2010).
4.1*	Indenture, dated as of October 4, 2010, between ABI Escrow Corporation and Wells Fargo Bank, National Association (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed on October 8, 2010, SEC File No. 001-33776).
4.2*	Form of 10.25% Senior Note due 2018 (included in Exhibit 4.1).
4.3*	Supplemental Indenture, dated as of December 9, 2010, between AbitibiBowater Inc. and Wells Fargo Bank, National Association (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed December 15, 2010, SEC File No. 001-33776).

1

Exhibit No.	Description
4.4*	Secured Promissory Note, dated January 14, 2011, made by Augusta Newsprint Company LLC in favor of Woodbridge International Holdings Limited (incorporated by reference from Exhibit 4.4 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
4.5*	Amended and Restated Indenture, dated as of May 12, 2011, among AbitibiBowater Inc., each of the guarantors from time to time party hereto, as guarantors, and Wells Fargo Bank, National Association, as trustee and as collateral agent (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed May 16, 2011, SEC File No. 001-33776).
10.1*	ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., Bowater Incorporated, Abitibi-Consolidated Corp., Abitibi-Consolidated Inc., Barclays Bank PLC, JPMorgan Chase Bank, N.A., and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed December 15, 2010, SEC File No. 001-33776).
10.2*	Stock Purchase Agreement, dated as of December 23, 2010, among Woodbridge International Holdings Limited, The Woodbridge Company Limited, Abitibi Consolidated Sales Corporation, AbitibiBowater Inc., Augusta Newsprint Company and Augusta Newsprint Inc. (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
10.3*	Securities Purchase Agreement, dated February 11, 2011, among AbiBow Canada Inc., Caisse de depot et placement du Quebec and CDP Investissements Inc., as vendors, and Infra H2O GP Partners Inc., Infra H2O LP Partners Inc. and BluEarth Renewables Inc., as the purchaser (incorporated by reference from Exhibit 2.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 17, 2011, SEC File No. 001-33776).
†10.4*	AbitibiBowater 2010 Canadian DB Supplemental Executive Retirement Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.5*	AbitibiBowater 2010 DC Supplemental Executive Retirement Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.5 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.6*	AbitibiBowater Outside Director Deferred Compensation Plan, effective as of April 1, 2011 (incorporated by reference from Exhibit 10.6 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.7*	AbitibiBowater Inc. 2010 Equity Incentive Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
†10.8*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Restricted Stock Unit Agreement (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).
†10.9*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Nonqualified Stock Option Agreement (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).
†10.10*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Nonqualified Stock Option Agreement (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).

2

Exhibit No.	Description
†10.11*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Deferred Stock Unit Agreement (incorporated by reference from Exhibit 10.11 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.12*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Restricted Stock Unit Agreement (incorporated by reference from Exhibit 10.12 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.13**	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Restricted Stock Unit Agreement.
†10.14**	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Nonqualified Stock Option Agreement.
†10.15*	AbitibiBowater Executive Restricted Stock Unit Plan, effective as of April 1, 2011 (incorporated by reference from Exhibit 10.13 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.16**	2011 AbitibiBowater Inc. Short-Term Incentive Plan.
†10.17**	Summary of 2012 AbitibiBowater Inc. Short-Term Incentive Plan.
†10.18*	AbitibiBowater Inc. Severance Policy – Chief Executive Officer and Direct Reports (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
†10.19*	Offer Letter between David J. Paterson and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.17 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.20*	Separation Agreement between David J. Paterson and AbitibiBowater Inc., dated December 9, 2010 (incorporated by reference from Exhibit 10.18 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.21*	Offer Letter between Pierre Rougeau and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.19 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.22*	Pierre Rougeau Severance Terms and Waiver and Release Agreement, dated March 25, 2011 (incorporated by reference from Exhibit 10.20 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.23*	Offer Letter between Alain Grandmont and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.21 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.24*	Employment Agreement between Alain Grandmont and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 18, 2011, SEC File No. 001-33776).
†10.25*	Letter of terms and conditions of retirement between Alain Grandmont and AbitibiBowater Inc., dated August 9, 2011 (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.26*	Offer Letter between Yves Laflamme and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.23 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.27*	Employment Agreement between Yves Laflamme and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 18, 2011, SEC File No. 001-33776).

3

Exhibit No.	Description
†10.28*	Offer Letter between Jacques Vachon and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.25 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.29*	Executive Employment Agreement between AbitibiBowater Inc. and Richard Garneau, dated January 1, 2011 (incorporated by reference from Exhibit 10.26 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.30*	Change in Control Agreement between AbitibiBowater Inc. and Richard Garneau, dated January 1, 2011 (incorporated by reference from Exhibit 10.27 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.31*	Employment Agreement between Alain Boivin and AbitibiBowater Inc., dated February 22, 2011 (incorporated by reference from Exhibit 10.28 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.32*	Offer Letter between John Lafave and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.29 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.33*	Offer Letter between Jo-Ann Longworth and AbitibiBowater Inc., dated July 25, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.34*	Agreement of Executive Severance Terms between AbitibiBowater Inc. and William G. Harvey, dated July 20, 2011 (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.35**	Offer Letter between Pierre Laberge and AbitibiBowater Inc., dated June 9, 2011.
†10.36**	Director compensation program chart.
†10.37*	Form of Indemnification Agreement for Executive Officers and Directors (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed January 11, 2012, SEC File No. 001-33776).
†10.38**	AbiBow Canada Inc. and AbitibiBowater Inc. Security Protocol with respect to the AbitibiBowater 2010 Canadian DB Supplemental Executive Retirement Plan and the AbiBow Canada SERP, dated November 1, 2011.
†10.39**	Retirement Compensation Trust Agreement (with Letter of Credit) between AbiBow Canada Inc. and AbitibiBowater Inc. and CIBC Mellon Trust Company, dated and effective as of November 1, 2011.
†10.40*	Agreement Concerning the Pulp and Paper Operations of AbiBow Canada in Ontario, dated November 10, 2010, between Bowater Canadian Forest Products Inc. and Abitibi-Consolidated Company of Canada and The Province of Ontario (incorporated by reference from Exhibit 10.32 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.41*	Agreement Concerning the Pulp and Paper Operations of AbiBow Canada in Quebec, dated September 13, 2010, between Bowater Canadian Forest Products Inc. and Abitibi-Consolidated Company of Canada and The Government of Quebec (incorporated by reference from Exhibit 10.33 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).

4

Exhibit No.	Description
10.42*	Settlement Agreement, dated as of August 24, 2010, between AbitibiBowater Inc., Abitibi-Consolidated Company of Canada, Abitibi-Consolidated Inc. and AbitibiBowater Canada Inc. and The Government of Canada (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q filed for the quarter ended September 30, 2010, SEC File No. 001-33776).
10.43*	Amendment No. 1, dated as of April 28, 2011, to the ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., the subsidiaries of AbitibiBowater party thereto, the lenders party thereto from time to time and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed May 16, 2011, SEC File No. 001-33776).
10.44*	Amendment No. 2, dated October 28, 2011, to ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., AbiBow US Inc. (f/k/a Bowater Incorporated) and AbiBow Recycling LLC (f/k/a Abitibi-Consolidated Corp.) and AbiBow Canada Inc. (f/k/a Abitibi-Consolidated Inc.), and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed October 31, 2011, SEC File No. 001-33776).
10.45*	Lock-up Agreement between AbitibiBowater Inc. and Fairfax Financial Holdings Limited, dated as of November 28, 2011 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
10.46*	Lock-up Agreement between AbitibiBowater Inc. and Oakmont Capital Inc., dated as of November 28, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
10.47*	Lock-up Agreement between AbitibiBowater Inc. and Dalal Street, LLC, dated as of November 28, 2011 (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
12.1**	Computation of Ratio of Earnings to Fixed Charges.
21.1**	Subsidiaries of the registrant.
23.1**	Consent of PricewaterhouseCoopers LLP.
24.1**	Power of attorney for certain Directors of the registrant.
31.1**	Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**	Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

5

Exhibit No.	Description
32.1**	Certification of President and Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS ***	XBRL Instance Document.
101.SCH ***	XBRL Taxonomy Extension Schema Document.
101.CAL ***	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB ***	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE ***	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF ***	XBRL Taxonomy Extension Definition Linkbase Document.

* Previously filed and incorporated herein by reference.

** Filed with the Original 10-K.

† This is a management contract or compensatory plan or arrangement.

*** Interactive data files furnished with this Form 10-K/A, which represent the following materials from the Original 10-K formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Changes in (Deficit) Equity, (iv) the Consolidated Statements of Comprehensive (Loss) Income, (v) the Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements and (vii) Schedule I – AbitibiBowater Inc. Condensed Financial Statements and Notes. Pursuant to applicable securities laws and regulations, the Company is deemed to have complied with the reporting obligation relating to the submission of interactive data files in such exhibits and is not subject to liability under any anti-fraud provisions or other liability provisions of the federal securities laws as long as the Company has made a good faith attempt to comply with the submission requirements and promptly amends the interactive data files after becoming aware that the interactive data files fail to comply with the submission requirements. In addition, users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

(b) The above-referenced exhibits were filed with the Original 10-K or are being furnished with this Form 10-K/A.

(c) None.

6

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ABITIBIBOWATER INC.
Date: March 30, 2012	By:	/s/ Silvana Travaglini
		Silvana Travaglini
		Vice President and Chief Accounting Officer

7

EXHIBIT INDEX

Exhibit No.	Description
2.1*	Sanction Order, dated September 23, 2010 (incorporated by reference from Exhibit 2.1 of AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
2.2*	Confirmation Order, dated November 23, 2010, which includes the Debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code, dated November 16, 2010 (as amended) (incorporated by reference from Exhibit 2.2 of AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
2.3*	CCAA Plan of Reorganization and Compromise, dated August 2, 2010 (incorporated by reference from Exhibit 99.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed August 5, 2010, SEC File No. 001-33776).
3.1*	Third Amended and Restated Certificate of Incorporation of AbitibiBowater Inc. (incorporated by reference from Exhibit 3(i) to AbitibiBowater Inc.’s Form 8-A filed on December 9, 2010).
3.2*	Third Amended and Restated By-laws of AbitibiBowater Inc. (incorporated by reference from Exhibit 3(ii) to AbitibiBowater Inc.’s Form 8-A filed on December 9, 2010).
4.1*	Indenture, dated as of October 4, 2010, between ABI Escrow Corporation and Wells Fargo Bank, National Association (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed on October 8, 2010, SEC File No. 001-33776).
4.2*	Form of 10.25% Senior Note due 2018 (included in Exhibit 4.1).
4.3*	Supplemental Indenture, dated as of December 9, 2010, between AbitibiBowater Inc. and Wells Fargo Bank, National Association (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed December 15, 2010, SEC File No. 001-33776).

1

Exhibit No.	Description
4.4*	Secured Promissory Note, dated January 14, 2011, made by Augusta Newsprint Company LLC in favor of Woodbridge International Holdings Limited (incorporated by reference from Exhibit 4.4 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
4.5*	Amended and Restated Indenture, dated as of May 12, 2011, among AbitibiBowater Inc., each of the guarantors from time to time party hereto, as guarantors, and Wells Fargo Bank, National Association, as trustee and as collateral agent (incorporated by reference from Exhibit 4.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed May 16, 2011, SEC File No. 001-33776).
10.1*	ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., Bowater Incorporated, Abitibi-Consolidated Corp., Abitibi-Consolidated Inc., Barclays Bank PLC, JPMorgan Chase Bank, N.A., and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed December 15, 2010, SEC File No. 001-33776).
10.2*	Stock Purchase Agreement, dated as of December 23, 2010, among Woodbridge International Holdings Limited, The Woodbridge Company Limited, Abitibi Consolidated Sales Corporation, AbitibiBowater Inc., Augusta Newsprint Company and Augusta Newsprint Inc. (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
10.3*	Securities Purchase Agreement, dated February 11, 2011, among AbiBow Canada Inc., Caisse de depot et placement du Quebec and CDP Investissements Inc., as vendors, and Infra H2O GP Partners Inc., Infra H2O LP Partners Inc. and BluEarth Renewables Inc., as the purchaser (incorporated by reference from Exhibit 2.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 17, 2011, SEC File No. 001-33776).
†10.4*	AbitibiBowater 2010 Canadian DB Supplemental Executive Retirement Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.5*	AbitibiBowater 2010 DC Supplemental Executive Retirement Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.5 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.6*	AbitibiBowater Outside Director Deferred Compensation Plan, effective as of April 1, 2011 (incorporated by reference from Exhibit 10.6 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.7*	AbitibiBowater Inc. 2010 Equity Incentive Plan, effective as of December 9, 2010 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
†10.8*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Restricted Stock Unit Agreement (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).
†10.9*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Nonqualified Stock Option Agreement (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).
†10.10*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Nonqualified Stock Option Agreement (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Registration Statement on Form S-8 filed January 7, 2011, SEC Registration No. 333-171602).

2

Exhibit No.	Description
†10.11*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Deferred Stock Unit Agreement (incorporated by reference from Exhibit 10.11 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.12*	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Director Restricted Stock Unit Agreement (incorporated by reference from Exhibit 10.12 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.13**	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Restricted Stock Unit Agreement.
†10.14**	AbitibiBowater Inc. 2010 Equity Incentive Plan Form of Employee Nonqualified Stock Option Agreement.
†10.15*	AbitibiBowater Executive Restricted Stock Unit Plan, effective as of April 1, 2011 (incorporated by reference from Exhibit 10.13 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.16**	2011 AbitibiBowater Inc. Short-Term Incentive Plan.
†10.17**	Summary of 2012 AbitibiBowater Inc. Short-Term Incentive Plan.
†10.18*	AbitibiBowater Inc. Severance Policy – Chief Executive Officer and Direct Reports (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 30, 2010, SEC File No. 001-33776).
†10.19*	Offer Letter between David J. Paterson and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.17 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.20*	Separation Agreement between David J. Paterson and AbitibiBowater Inc., dated December 9, 2010 (incorporated by reference from Exhibit 10.18 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.21*	Offer Letter between Pierre Rougeau and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.19 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.22*	Pierre Rougeau Severance Terms and Waiver and Release Agreement, dated March 25, 2011 (incorporated by reference from Exhibit 10.20 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.23*	Offer Letter between Alain Grandmont and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.21 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.24*	Employment Agreement between Alain Grandmont and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 18, 2011, SEC File No. 001-33776).
†10.25*	Letter of terms and conditions of retirement between Alain Grandmont and AbitibiBowater Inc., dated August 9, 2011 (incorporated by reference from Exhibit 10.4 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.26*	Offer Letter between Yves Laflamme and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.23 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.27*	Employment Agreement between Yves Laflamme and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed February 18, 2011, SEC File No. 001-33776).

3

Exhibit No.	Description
†10.28*	Offer Letter between Jacques Vachon and AbitibiBowater Inc., dated October 26, 2010 (incorporated by reference from Exhibit 10.25 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.29*	Executive Employment Agreement between AbitibiBowater Inc. and Richard Garneau, dated January 1, 2011 (incorporated by reference from Exhibit 10.26 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.30*	Change in Control Agreement between AbitibiBowater Inc. and Richard Garneau, dated January 1, 2011 (incorporated by reference from Exhibit 10.27 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.31*	Employment Agreement between Alain Boivin and AbitibiBowater Inc., dated February 22, 2011 (incorporated by reference from Exhibit 10.28 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.32*	Offer Letter between John Lafave and AbitibiBowater Inc., dated February 14, 2011 (incorporated by reference from Exhibit 10.29 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.33*	Offer Letter between Jo-Ann Longworth and AbitibiBowater Inc., dated July 25, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.34*	Agreement of Executive Severance Terms between AbitibiBowater Inc. and William G. Harvey, dated July 20, 2011 (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed November 14, 2011, SEC File No. 001-33776).
†10.35**	Offer Letter between Pierre Laberge and AbitibiBowater Inc., dated June 9, 2011.
†10.36**	Director compensation program chart.
†10.37*	Form of Indemnification Agreement for Executive Officers and Directors (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed January 11, 2012, SEC File No. 001-33776).
†10.38**	AbiBow Canada Inc. and AbitibiBowater Inc. Security Protocol with respect to the AbitibiBowater 2010 Canadian DB Supplemental Executive Retirement Plan and the AbiBow Canada SERP, dated November 1, 2011.
†10.39**	Retirement Compensation Trust Agreement (with Letter of Credit) between AbiBow Canada Inc. and AbitibiBowater Inc. and CIBC Mellon Trust Company, dated and effective as of November 1, 2011.
†10.40*	Agreement Concerning the Pulp and Paper Operations of AbiBow Canada in Ontario, dated November 10, 2010, between Bowater Canadian Forest Products Inc. and Abitibi-Consolidated Company of Canada and The Province of Ontario (incorporated by reference from Exhibit 10.32 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).
†10.41*	Agreement Concerning the Pulp and Paper Operations of AbiBow Canada in Quebec, dated September 13, 2010, between Bowater Canadian Forest Products Inc. and Abitibi-Consolidated Company of Canada and The Government of Quebec (incorporated by reference from Exhibit 10.33 to AbitibiBowater Inc.’s Annual Report on Form 10-K for the year ended December 31, 2010 filed April 5, 2011, SEC File No. 001-33776).

4

Exhibit No.	Description
10.42*	Settlement Agreement, dated as of August 24, 2010, between AbitibiBowater Inc., Abitibi-Consolidated Company of Canada, Abitibi-Consolidated Inc. and AbitibiBowater Canada Inc. and The Government of Canada (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q filed for the quarter ended September 30, 2010, SEC File No. 001-33776).
10.43*	Amendment No. 1, dated as of April 28, 2011, to the ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., the subsidiaries of AbitibiBowater party thereto, the lenders party thereto from time to time and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed May 16, 2011, SEC File No. 001-33776).
10.44*	Amendment No. 2, dated October 28, 2011, to ABL Credit Agreement, dated as of December 9, 2010, among AbitibiBowater Inc., AbiBow US Inc. (f/k/a Bowater Incorporated) and AbiBow Recycling LLC (f/k/a Abitibi-Consolidated Corp.) and AbiBow Canada Inc. (f/k/a Abitibi-Consolidated Inc.), and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed October 31, 2011, SEC File No. 001-33776).
10.45*	Lock-up Agreement between AbitibiBowater Inc. and Fairfax Financial Holdings Limited, dated as of November 28, 2011 (incorporated by reference from Exhibit 10.1 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
10.46*	Lock-up Agreement between AbitibiBowater Inc. and Oakmont Capital Inc., dated as of November 28, 2011 (incorporated by reference from Exhibit 10.2 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
10.47*	Lock-up Agreement between AbitibiBowater Inc. and Dalal Street, LLC, dated as of November 28, 2011 (incorporated by reference from Exhibit 10.3 to AbitibiBowater Inc.’s Current Report on Form 8-K filed November 29, 2011, SEC File No. 001-33776).
12.1**	Computation of Ratio of Earnings to Fixed Charges.
21.1**	Subsidiaries of the registrant.
23.1**	Consent of PricewaterhouseCoopers LLP.
24.1**	Power of attorney for certain Directors of the registrant.
31.1**	Certification of President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**	Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

5

Exhibit No.	Description
32.1**	Certification of President and Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Senior Vice President and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS ***	XBRL Instance Document.
101.SCH ***	XBRL Taxonomy Extension Schema Document.
101.CAL ***	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB ***	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE ***	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF ***	XBRL Taxonomy Extension Definition Linkbase Document.

* Previously filed and incorporated herein by reference.

** Filed with the Original 10-K.

† This is a management contract or compensatory plan or arrangement.

*** Interactive data files furnished with this Form 10-K/A, which represent the following materials from the Original 10-K formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Changes in (Deficit) Equity, (iv) the Consolidated Statements of Comprehensive (Loss) Income, (v) the Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements and (vii) Schedule I – AbitibiBowater Inc. Condensed Financial Statements and Notes. Pursuant to applicable securities laws and regulations, the Company is deemed to have complied with the reporting obligation relating to the submission of interactive data files in such exhibits and is not subject to liability under any anti-fraud provisions or other liability provisions of the federal securities laws as long as the Company has made a good faith attempt to comply with the submission requirements and promptly amends the interactive data files after becoming aware that the interactive data files fail to comply with the submission requirements. In addition, users of this data are advised that, pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.

6

XML

Equity Method Investments (Parent Company [Member])

12 Months Ended

Dec. 31, 2011

Parent Company [Member]

Equity Method Investments

Note C. Equity Method Investments

The recognition of our share of the equity in loss of our subsidiaries resulted in a reported investment in our subsidiaries of zero as of December 31, 2008. Since we have no obligation to fund additional losses of our subsidiaries, we cannot report a negative investment in our subsidiaries under the equity method. Accordingly, in 2009, we did not record any of our share of our subsidiaries’ losses. In 2010, we recorded our share of income of our subsidiaries, net of the cumulative losses that would otherwise have resulted in the reporting of a negative investment by us in prior years. In 2011, we recorded our share of the income of our subsidiaries.

XML

Income Taxes (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income Taxes (Textual) [Abstract]
United States federal statutory income tax rate	35.00%	35.00%	35.00%
Subpart F Taxable Income Recognized		$ 305
Deferred income tax liability as a result of acquisition of ANC	15
Reduction in additional paid in capital as a result of acquisition of ANC	(15)
Unrecognized tax benefits that would impact the effective tax rate	101
Change in unrecognized tax benefits in next twelve months	0
Investments In Foreign Subsidiaries And Foreign Corporate Joint Ventures That Are Essentially Permanent In Duration [Member]
Deferred Tax Liability Not Recognized [Line Items]
Unremitted earnings of subsidiaries	75	50
Unremitted earnings, Deferred tax liability	0
Predecessor [Member]
Operating Loss Carryforwards [Line Items]
Worthless stock deduction			(308)
Estimated tax basis in the investment			800
Reversal of liability for unrecognized tax benefits resulting from expiration of statute of limitations		58
Successor [Member]
Operating Loss Carryforwards [Line Items]
Reorganization-related adjustments	(38)
U.S. federal [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	1,564
Capital loss carryforwards	1,275
State and Local Jurisdiction [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	1,672
Quebec Canada [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	391
Canada Federal and Non-Quebec [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	274
Research [Member] | Quebec Canada [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Research and development expense pool carryforwards	1,213
Research [Member] | Canada and Non-Quebec [Member] | Successor [Member]
Operating Loss Carryforwards [Line Items]
Research and development expense pool carryforwards	$ 903

XML

Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Accounts Payable and Accrued Liabilities [Abstract]

Accounts payable and accrued liabilities

	Successor
(In millions)	2011		2010
Trade accounts payable	$	291	$	252
Payroll, bonuses and severance payable		89		99
Accrued interest		13		21
Pension and OPEB benefit obligations		34		35
Income and other taxes payable		19		15
Claims payable		11		35
Other		87		90
	$	544	$	547

XML

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other (Tables)

12 Months Ended

Dec. 31, 2011

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other [Abstract]

Assets held for sale

	Successor
(In millions)	2011		2010
Cash and cash equivalents	$	–	$	10
Accounts receivable		–		4
Other current assets		–		1
Fixed assets, net		7		149
Amortizable intangible assets		–		528
Other assets		–		6
	$	7	$	698

Liabilities associated with assets held for sale

	Successor
(In millions)	2011		2010
Accounts payable and accrued liabilities	$	–	$	9
Long-term debt		–		280
	$	–	$	289

XML

Timberland and Operating Leases and Purchase Obligations (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 acre	Dec. 31, 2010	Dec. 31, 2009
Timberland and Operating Leases and Purchase Obligations (Textual) [Abstract]
Acres of timberlands leased under long-term leases	40,000
Timberland Lease Payments	Less than $1	Less than $1	Less than $1
Operating Lease expense	$ 13	$ 17	$ 24
Expense for agreements, guarantees and purchase commitments	237	174	174
Purchase obligation for bridge and railroad contract	$ 131
Expiration date of bridge and railroad contract	2044

XML

Creditor Protection Proceedings (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2011 Senior Secured Notes Due 2018 [Member]	Oct. 04, 2010 Senior Secured Notes Due 2018 [Member]
Debt Instrument [Line Items]
Aggregate principal amount of senior secured notes						$ 850
Interest rate of notes						10.25%	10.25%
Creditor Protection Proceedings (Textual) [Abstract]
Maximum dollar amount of unsecured claim to permit a cash payment	5,000
Percentage of unsecured claim qualifying for cash payment that is paid in cash	50.00%
Number of Shares issued for unsecured creditors	97,134,954
Common stock, par value	$ 0.001		$ 0.001	$ 0.001	$ 0.001
Number of shares distributed for unsecured claims	73,752,881		3,662,508
Percentage of common stock reserved for equity incentive and employee benefit plans	8.50%
Number of shares reserved for disputed unsecured claims	23,382,073
Number of shares remaining in reserve for disputed unsecured claims			19,719,565
Liability for claims to be settled in cash	35		11
Payment of backstop commitment termination fee	15
Proceeds from sale of assets as part of restructuring plan	80
Cash payments for reorganization items	210	104
Payment for reorganization items professional fees	139	73
Payment for debtor in possession financing costs	10	31
Payment for exit financing costs	46
Receipt of the NAFTA settlement	$ 130
Common stock, shares reserved for equity incentives and employee benefit plans	9,020,960
Maximum percentage of shares to be issued to qualified individuals for equity incentives and employee benefits within this month	4.00%
Maximum number of shares for qualified individuals to be issued within this month	4,245,158

XML

Segment Information (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Summary of special items included in Corporate and Other operating loss
Net gain on disposition of assets and other	$ 0	$ (1)	$ 3	$ 1	$ (3)	$ 16	$ 1	$ 4	$ 9	$ (30)	$ (91)
Closure costs, impairment and other related charges	(12)	(17)	(4)	(13)	(46)	(6)	3	(3)	(5)	(11)	(202)
Write-downs of inventory	(2)			(1)	(3)						(17)
Employee termination (costs) credit		(5)	(3)	(4)	(12)				8	8	(2)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.	(5)				(5)
Reversal of previously recorded Canadian capital tax liabilities due to new legislation											16
Fees for unsuccessful refinancing efforts											(10)
Special items included in Corporate and Other expenses, Total	$ (19)	$ (23)	$ (4)	$ (17)	$ (63)	$ 10	$ 4	$ 1	$ 12	$ 27	$ (124)

XML

Severance Related Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Restructuring And Related Activities [Abstract]

Severance Related Liabilities

(In millions)	2011 Initiatives			2010 Initiatives			2009 Initiatives			2008 Initiatives			2007 Initiatives			Total
Balance as of December 31, 2009 (Predecessor)	$	–		$	–		$	43		$	27		$	17		$	87
Charges (credits)		–			24			5			–			(4	)		25
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(22	)		(48	)		(29	)		(12	)		(111	)
Other		–			–			–			2			(1	)		1
Balance as of December 31, 2010 (Successor)		–			2			–			–			–			2
Charges		28			–			–			–			–			28
Payments		(17	)		(2	)		–			–			–			(19	)
Balance as of December 31, 2011 (Successor)	$	11		$	–		$	–		$	–		$	–		$	11

XML

Other Expense, Net (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 Successor [Member]
Other expense, net
Foreign exchange loss			$ (94)	$ (59)	$ (21)
Post-emergence costs					(47)
Income (loss) from equity method investments			(3)	(9)	2
Net gains on extinguishment of debt	6				6
Interest income			1		3
Fees for waivers and amendments to accounts receivable securitization program				(23)
Loss on sale of ownership interests in accounts receivable (Note 16)		(17)		(17)
Miscellaneous income			7	37	9
Other expense. Net			(89)	(71)	(48)
Other Expense, Net (Textual) [Abstract]
Fees Incurred Accounts Receivable Securitization Program				23
Net income from a subsidiary's proceeds sharing arrangement related to a third party's sale of timberlands				$ 24

XML

Pension and Other Postretirement Benefit Plans (Details 10) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Pension Plans [Member]
Expected benefit payments and future contributions
2012	$ 512
2013	417
2014	436
2015	436
2016	439
2017-2021	2,182
OPEB Plans [Member]
Expected benefit payments and future contributions
2012	27
2013	26
2014	26
2015	26
2016	26
2017-2021	137
2012 Expected Subsidy Receipts	2
2013 Expected Subsidy Receipts	2
2014 Expected Subsidy Receipts	2
2015 Expected Subsidy Receipts	2
2016 Expected Subsidy Receipts	3
2017-2021 Expected Subsidy Receipts	$ 15

XML

Amortizable Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2011

Amortizable Intangible Assets, Net [Abstract]

Summary of Amortizable Intangible Assets, Net

	Successor
(In millions)	2011			2010
Gross carrying value	$	19		$	19
Accumulated amortization		(1	)		–
Net	$	18		$	19

XML

Share-Based Compensation

12 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

Note 22. Share-Based Compensation

Overview

During the pendency of the Creditor Protection Proceedings and through December 31, 2010, no new share-based compensation awards were granted, and during the pendency of the Creditor Protection Proceedings, no issuance or payments of vested share-based awards were permitted without Court approval.

On the Emergence Date and pursuant to the Plans of Reorganization, all previously-issued and outstanding equity-based awards under our various share-based compensation plans were terminated and the 2010 LTIP became effective. The 2010 LTIP, administered by the Human Resources and Compensation/Nominating and Governance Committee of the Board of Directors (the “HR Board Committee”), provides for the grant of equity-based awards, including stock options, stock appreciation rights, restricted stock, RSUs, DSUs (collectively, “stock incentive awards”) and cash incentive awards to certain of our officers, directors, employees, consultants and advisors. We have been authorized to issue stock incentive awards for up to 9.0 million shares under the 2010 LTIP.

In 2011, the Board of Directors adopted the AbitibiBowater Outside Director Deferred Compensation Plan (the “Deferred Compensation Plan”), which allows non-employee directors to surrender 50% or 100% of their cash fees in exchange for DSUs or RSUs, as applicable based on the director’s country of residency. The number of awards issued pursuant to the Deferred Compensation Plan is based on 110% of the fees earned, resulting in a 10% premium incentive (the “incentive”).

As of December 31, 2011, all of our outstanding stock incentive awards pursuant to the 2010 LTIP were accounted for as equity-classified, service-based awards and all of our outstanding stock incentive awards pursuant to the Deferred Compensation Plan were accounted for as liability awards. Approximately 7.7 million shares were available for issuance under the 2010 LTIP.

For the years ended December 31, 2011, 2010 and 2009, share-based compensation expense was $3 million ($1 million of tax benefit), $3 million (no tax benefit) and $4 million (no tax benefit), respectively.

Modification of the 2010 LTIP

On July 20, 2011, the HR Board Committee approved a modification of the stock incentive award agreements under the 2010 LTIP for any stock incentive awards granted to employees retroactive to the beginning of the year. Employees who retire (upon meeting certain age and service criteria) at least six months after the grant date and prior to the end of the four-year vesting period will be allowed to continue vesting in their awards after retirement in accordance with the normal vesting schedule. The requisite service periods for the stock incentive awards are reduced on an individual basis, as necessary, to reflect the grantee’s individual retirement eligibility date (“the retirement eligibility period”). As of the date of the modification, nine employees’ awards were impacted.

Stock options

In 2011, we made grants of 1,106,533 stock options to our non-employee directors and to certain employees using the following weighted-average assumptions:

Exercise price	$	20.18
Fair value	$	9.71
Expected dividend yield		–
Expected volatility		45.5	%
Risk-free interest rate		2.0	%
Expected life in years		6.25

The stock options become exercisable ratably over a period of four years, or the retirement eligibility period, whichever is shorter, and, unless terminated earlier in accordance with their terms, expire 10 years from the date of grant. New shares of AbitibiBowater common stock are issued upon the exercise of a stock option.

We calculated the grant-date fair value of the stock options using the Black-Scholes option pricing model. The payment of dividends is subject to certain restrictions under the 2018 Notes indenture and the credit agreement that governs the ABL Credit Facility; therefore, we assumed an expected dividend yield of zero. Due to the short trading history of the Successor Company’s common stock, we estimated the expected volatility based on the historical volatility of a peer group within our industry measured over a term approximating the expected life of the options. We estimated the risk-free interest rate based on a zero-coupon U.S. Treasury instrument with a remaining term approximating the expected life of the options. Historical exercise data attributable to stock incentive awards granted after the Successor Company’s common stock began publicly trading is limited; therefore, we used the simplified method permitted by Staff Accounting Bulletin Topic 14 to estimate the expected life of the options. Under this approach, the expected life is presumed to be the midpoint between the vesting date and the end of the contractual term.

The activity of stock options for the year ended December 31, 2011 was as follows:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Life (years)		Aggregate Intrinsic Value
Outstanding as of December 31, 2010 (Successor)		–		$	–			$	–
Granted		1,106,533			20.18
Exercised		–			–
Forfeited		(197,107	)		23.05
Outstanding as of December 31, 2011 (Successor)		909,426		$	19.56		9.5	$	–
Exercisable as of December 31, 2011 (Successor)		134,331		$	23.05		9.0	$	–

As of December 31, 2011, there was approximately $6 million of unrecognized compensation cost related to these stock options, which is expected to be recognized over a remaining requisite service period of 3.4 years.

Restricted stock units and deferred stock units

In 2011, we made grants of RSUs and DSUs to our non-employee directors and to certain employees pursuant to the 2010 LTIP. Each RSU and DSU provides the holder the right to receive one share of our common stock upon vesting. The awards vest ratably over a period of one year for directors and four years for employees, or over the retirement-eligibility period, whichever is shorter. Awards to employees are settled with shares of stock upon vesting, while awards to directors are settled with shares of stock ratably over a period of three years or upon separation from the Board of Directors, as applicable based on the director’s country of residency.

The activity of RSUs and DSUs for the year ended December 31, 2011 was as follows:

	Number of Units			Weighted- Average Fair Value at  Grant Date
Outstanding as of December 31, 2010 (Successor)		–		$	–
Granted		434,689			18.07
Vested and settled (1)		(7,262	)		26.49
Forfeited		(28,471	)		23.05
Outstanding as of December 31, 2011 (Successor)		398,956		$	17.56

⁽¹⁾  An additional 34,413 awards were vested, but were not settled prior to December 31, 2011; therefore, the awards remain outstanding.

As of December 31, 2011, there was approximately $5 million of unrecognized compensation cost related to these RSUs and DSUs, which is expected to be recognized over a remaining requisite service period of 3.7 years. New shares of AbitibiBowater common stock are issued upon the settlement of an RSU or DSU issued pursuant to the 2010 LTIP.

In 2011, we granted 4,625 DSUs to a non-employee director pursuant to the Deferred Compensation Plan. Each award provides the holder with the right to receive an amount of cash based on the market price of a share of AbitibiBowater common stock at the date of settlement. The portion of the award representing the incentive vests ratably over three years or, if earlier, upon the director’s separation from the Board of Directors. The remaining portion of the award is fully vested on the date of grant. The director vested in 4,205 DSUs in 2011. The awards are settled in cash upon separation from the Board of Directors. None of the DSUs were settled in 2011.

XML

Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Accumulated other comprehensive loss
Unamortized prior service costs	$ (2)	$ 0
Unamortized actuarial losses	(309)	0
Foreign currency translation		0
Accumulated other comprehensive loss Total	(311)	0
Successor [Member]
Accumulated other comprehensive loss
Foreign currency translation	0
Accumulated other comprehensive loss Total	$ (311)

XML

Share Based Compensation (Details 2) (Restricted Stock Units and Deferred Stock Units [Member], Successor [Member], USD $)	12 Months Ended
	Dec. 31, 2011
Restricted Stock Units and Deferred Stock Units [Member] | Successor [Member]
Activity of RSUs and DSUs
Number of Units, Outstanding, Beginning Balance	0
Weighted-Average Fair Value at Grant Date, Outstanding, Beginning Balance	$ 0.00
Number of Units, Granted	434,689
Weighted-Average Fair Value at Grant Date, Granted	$ 18.07
Number of Units, Vested and Settled	(7,262)
Weighted-Average Fair Value at Grant Date, Vested and Settled	$ 26.49
Number of Units, Forfeited	(28,471)
Weighted-Average Fair Value at Grant Date, Forfeited	$ 23.05
Number of Units, Outstanding, Ending Balance	398,956
Weighted-Average Fair Value at Grant Date, Outstanding, Ending Balance	$ 17.56

XML

Segment Information (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Country	Dec. 31, 2010 Country	Dec. 31, 2009 Country
Segment Information (Textual) [Abstract]
Amount of income or loss items following operating income (loss) allocated to segments	$ 0	$ 0	$ 0
Market pulp inter-segment sales	33	46	34
Sales to joint venture partners	278	294	301
Amounts due from joint venture partners	31	35
Customer accounted for 10% or more of consolidated sales	0	0	0
Maximum percentage of consolidated sales in other Countries group	2.00%	2.00%	2.00%
Number of countries in other Countries group exceeding maximum percentage of consolidated sales	0	0	0
Newsprint [Member]
Segment Reporting Information [Line Items]
Alternative fuel mixture tax credits included in Operating income (loss)			15
Coated Papers [Member]
Segment Reporting Information [Line Items]
Alternative fuel mixture tax credits included in Operating income (loss)			62
Specialty Papers [Member]
Segment Reporting Information [Line Items]
Alternative fuel mixture tax credits included in Operating income (loss)			34
Market Pulp [Member]
Segment Reporting Information [Line Items]
Alternative fuel mixture tax credits included in Operating income (loss)			$ 165

XML

Quarterly Information (Unaudited) (Details 1) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Special Items Included in Operating Income
Net gain on disposition of assets and other	$ 0	$ (1)	$ 3	$ 1	$ (3)	$ 16	$ 1	$ 4	$ 9	$ (30)	$ (91)
Closure costs, impairment and other related charges	(12)	(17)	(4)	(13)	(46)	(6)	3	(3)	(5)	(11)	(202)
Write-downs of inventory	(2)			(1)	(3)						(17)
Employee termination (costs) credit		(5)	(3)	(4)	(12)				8	8	(2)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.	(5)				(5)
Special items included in Corporate and Other expenses, Total	$ (19)	$ (23)	$ (4)	$ (17)	$ (63)	$ 10	$ 4	$ 1	$ 12	$ 27	$ (124)

XML

Closure Costs, Impairment and Other Related Charges (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended	3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Closure costs, impairment and other related charges
Impairment of long-lived assets						$ 16					$ 2	$ 87
Accelerated depreciation						8						21
Impairment of assets held for sale												84
Contractual obligations and other commitments											8
Severance and other costs	1					22					1	10
Closure costs, impairment and other related charges		$ 12	$ 17	$ 4	$ 13	$ 46	$ 6	$ (3)	$ 3	$ 5	$ 11	$ 202

XML

Accounts Payable and Accrued Liabilities (Details) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Successor [Member]
Accounts payable and accrued liabilities
Trade accounts payable	$ 291	$ 252
Payroll, bonuses and severance payable	89	99
Accrued interest	13	21
Pension and OPEB benefit obligations	34	35
Income and other taxes payable	19	15
Claims payable	11	35
Other	87	90
Accounts Payable, Total	$ 544	$ 547

XML

Monetization of Timber Notes (Tables)

12 Months Ended

Dec. 31, 2011

Monetization of Timber Notes [Abstract]

Retained interest in QSPEs

	Successor
(In millions)	2011		2010
Calhoun Note Holdings AT LLC	$	8	$	8
Calhoun Note Holdings TI LLC		12		11
	$	20	$	19

XML

Income Taxes (Details 3) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Successor [Member]
Deferred Income Taxes [Abstract]
Fixed assets	$ (259)	$ (167)
Deferred gains	(40)	(37)
Other liabilities	(91)	(35)
Deferred income tax liabilities	(390)	(239)
Fixed assets	500	484
Pension and OPEB benefit plans	473	416
Ordinary loss carryforwards	716	598
Capital loss carryforwards	447	371
Research and development expense pool	265	264
Tax credit carryforwards	167	220
Other assets	169	71
Deferred income tax assets	2,737	2,424
Valuation allowance	(564)	(474)
Net deferred income tax assets	1,783	1,711
Amounts recognized in our Consolidated Balance Sheets consisted of:
Deferred income tax assets, current	109	47
Deferred income tax assets, noncurrent	1,749	1,736
Deferred income tax liabilities, noncurrent	(75)	(72)
Net deferred income tax assets	$ 1,783	$ 1,711

XML

Creditor Protection Proceedings Related Disclosures (Details) (Predecessor [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Summary of reorganization items, net
Professional fees	$ 154	$ 106
Gain due to Plans of Reorganization adjustments	(3,553)
Loss due to fresh start accounting adjustments	362
Provision for repudiated or rejected executory contracts	121	225
Write-off of debt discounts, premiums and issuance costs	666
Other	45	35
Reorganization Items, Total	(1,901)	639
Parent Company [Member]
Summary of reorganization items, net
Professional fees	18
Gain due to Plans of Reorganization adjustments	(160)
Loss due to fresh start accounting adjustments	82
Provision for repudiated or rejected executory contracts	5	2
Write-off of debt discounts, premiums and issuance costs	103
Post-petition interest on note payable to a subsidiary	134
Other	3
Reorganization Items, Total	$ 185	$ 2

XML

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other (Details 1) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Successor [Member]
Liabilities associated with assets held for sale
Accounts payable and accrued liabilities	$ 0	$ 9
Long-term debt	0	280
Liabilities associated with assets held for sale	$ 0	$ 289

XML

Restricted Cash (Details) In Millions, unless otherwise specified	Dec. 31, 2011 USD ($)	Dec. 31, 2011 CAD	Dec. 31, 2010 USD ($)	Dec. 31, 2010 CAD
Restricted Cash (Textual) [Abstract]
Restricted cash	$ 81	83	$ 80	80

XML

Accumulated Other Comprehensive Loss (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Accumulated Other Comprehensive Loss (Textual) [Abstract]
Unamortized prior service costs, deferred income tax	$ 0
Unrecognized unamortized actuarial losses, deferred income tax benefit	127
Unrecognized unamortized actuarial losses, portion attributable to noncontrolling interests, net of tax	8
Tax effect for foreign currency translation	0
Foreign currency translation gain attributable to noncontrolling interests	2
Foreign currency translation gains transferred to net gain on disposition of assets upon the sale of ACH	$ (8)

XML

Fixed Assets, Net (Details) (Successor [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2010
Fixed assets, net
Fixed assets, Gross	$ 2,728	$ 2,641
Less accumulated depreciation and amortization	(226)	0
Fixed assets, net	2,502	2,641
Land and land improvements [Member]
Fixed assets, net
Minimum Useful Life	2
Maximum Useful Life	10
Fixed assets, Gross	85	72
Buildings [Member]
Fixed assets, net
Minimum Useful Life	10
Maximum Useful Life	40
Fixed assets, Gross	264	280
Machinery and equipment [Member]
Fixed assets, net
Minimum Useful Life	3
Maximum Useful Life	20
Fixed assets, Gross	1,910	1,853
Hydroelectric power plants [Member]
Fixed assets, net
Maximum Useful Life	40
Fixed assets, Gross	283	283
Timber and timberlands [Member]
Fixed assets, net
Minimum Useful Life	10
Maximum Useful Life	20
Fixed assets, Gross	105	100
Construction in progress [Member]
Fixed assets, net
Fixed assets, Gross	$ 81	$ 53

XML

Assets Held for Sale Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other (Details Textual) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2009 USD ($)	Dec. 31, 2009 CAD	Dec. 31, 2011 Successor [Member] USD ($)	Dec. 31, 2010 Predecessor [Member] USD ($)	Dec. 31, 2009 Predecessor [Member] USD ($) acre	Dec. 31, 2009 Predecessor [Member] CAD
Assets Held For Sale Liabilities Associated With Assets Held For Sale And Net Gain On Disposition Of Assets And Other (Textual) [Abstract]
Proceeds from sale of our investment in ACH, timberlands and other assets			$ 315	$ 16	$ 119
Net gain on disposition of assets			3	14	91
Net gain related to customer bankruptcy settlement				16
Acres of timberland sold with court approval					491,356	491,356
Gross cash proceeds for sale of interest in MPCo	$ 583	615			$ 583	615

XML

Amortizable Intangible Assets, Net (Details) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Successor [Member]
Summary of Amortizable Intangible Assets, Net
Gross carrying value	$ 19	$ 19
Accumulated amortization	(1)	0
Net	$ 18	$ 19

XML

Severance Related Liabilities

12 Months Ended

Dec. 31, 2011

Restructuring And Related Activities [Abstract]

Severance Related Liabilities

Note 14. Severance Related Liabilities

The activity in our severance related liabilities for the years ended December 31, 2010 and 2011 was as follows:

(In millions)	2011 Initiatives			2010 Initiatives			2009 Initiatives			2008 Initiatives			2007 Initiatives			Total
Balance as of December 31, 2009 (Predecessor)	$	–		$	–		$	43		$	27		$	17		$	87
Charges (credits)		–			24			5			–			(4	)		25
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(22	)		(48	)		(29	)		(12	)		(111	)
Other		–			–			–			2			(1	)		1
Balance as of December 31, 2010 (Successor)		–			2			–			–			–			2
Charges		28			–			–			–			–			28
Payments		(17	)		(2	)		–			–			–			(19	)
Balance as of December 31, 2011 (Successor)	$	11		$	–		$	–		$	–		$	–		$	11

In 2011, we recorded employee termination costs primarily as a result of corporate employee terminations, the decision to close our Greenville, South Carolina office, the decision to cease paperboard production at our Coosa Pines paper mill, an early retirement severance program for employees at our Mokpo paper mill, the permanent closure of a paper machine at our Kenogami paper mill and a workforce reduction at our Mersey operations. The majority of the remaining severance liability is expected to be paid in 2012.

In 2010, we recorded employee termination costs resulting from our work toward a comprehensive restructuring plan, primarily related to: (i) the indefinite idling of our Gatineau paper mill, (ii) the indefinite idling of a paper machine and a de-inking line at our Thorold paper mill, (iii) a workforce reduction at our Catawba paper mill, (iv) the continued indefinite idling of our Dolbeau, Quebec paper mill (for which we announced its permanent closure in the third quarter of 2010), (v) the continued indefinite idling of a paper machine at our Thunder Bay, Ontario paper mill and (vi) the departure of our former Chief Executive Officer.

In 2009, we recorded employee termination costs primarily related to: (i) the indefinite idling of various paper mills and paper machines located in Canada resulting from our work toward a comprehensive restructuring plan, (ii) the continued idling of our Alabama River newsprint mill and (iii) the permanent closure of a sawmill in the United States resulting from our work toward a comprehensive restructuring plan.

Employee termination costs incurred as part of our restructuring were included in “Reorganization items, net” in our Consolidated Statements of Operations. Employee termination costs that were not associated with our restructuring were classified as “Cost of sales, excluding depreciation, amortization and cost of timber harvested,” “Selling, general and administrative expenses” or “Closure costs, impairment and other related charges” in our Consolidated Statements of Operations. The severance related liabilities were included in “Accounts payable and accrued liabilities” in our Consolidated Balance Sheets.

XML

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2011

Accumulated Other Comprehensive Loss / Share Capital [Abstract]

Schedule of components of accumulated other comprehensive loss

	Successor
(In millions)	2011			2010  (1)
Unamortized prior service costs (2)	$	(2	)	$	–
Unamortized actuarial losses (3)		(309	)		–
Foreign currency translation (4) (5)		–			–
	$	(311	)	$	–

⁽¹⁾ In connection with the application of fresh start accounting as of December 31, 2010, accumulated other comprehensive loss of the Predecessor Company was eliminated.

⁽²⁾ Net of deferred income taxes of zero as of December 31, 2011.

⁽³⁾ Net of deferred income tax benefit of $127 million as of December 31, 2011. Net of unamortized actuarial losses of $8 million attributable to noncontrolling interests as of December 31, 2011.

⁽⁴⁾ No tax effect was recorded for foreign currency translation since the investment in foreign net assets translated is deemed indefinitely invested. Net of noncontrolling interests of $2 million of foreign exchange gains as of December 31, 2011.

⁽⁵⁾ Accumulated other comprehensive loss as of December 31, 2011 has been increased by $8 million of foreign currency translation gains that were reclassified to “Net gain on disposition of assets and other” in our Consolidated Statements of Operations for the year ended December 31, 2011 as a result of the sale of our investment in ACH.

Pension and OPEB benefit related components of other comprehensive loss

	Successor								Predecessor
	2011								2010								2009
(In millions)	Before- tax Amount			Taxes		After- tax Amount			Before- tax Amount			Taxes		After- tax Amount			Before- tax Amount			Taxes		After- tax Amount
Prior service (cost) credit from plan amendment during period	$	(1	)	$	–	$	(1	)	$	8		$	–	$	8		$	–		$	–	$	–
Amortization or curtailment recognition of prior service credit included in net periodic benefit cost		(1	)		–		(1	)		–			–		–			(15	)		–		(15	)
Change in unamortized prior service costs and credits during period		(2	)		–		(2	)		8			–		8			(15	)		–		(15	)
Net actuarial loss arising during period		(447	)		127		(320	)		(606	)		–		(606	)		(176	)		–		(176	)
Amortization or settlement recognition of net actuarial loss		3			–		3			8			–		8			–			–		–
Change in unamortized actuarial gains and losses during period		(444	)		127		(317	)		(598	)		–		(598	)		(176	)		–		(176	)
Comprehensive loss associated with pension and OPEB plans including noncontrolling interests		(446	)		127		(319	)		(590	)		–		(590	)		(191	)		–		(191	)
Less:   Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests:
Net actuarial loss arising during period		8			–		8			–			–		–			–			–		–
Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests		8			–		8			–			–		–			–			–		–
Comprehensive loss associated with pension and OPEB plans attributable to AbitibiBowater Inc.	$	(438	)	$	127	$	(311	)	$	(590	)	$	–	$	(590	)	$	(191	)	$	–	$	(191	)

XML

Condensed Financial Statements and Notes

12 Months Ended

Dec. 31, 2011

Schedule I - Condensed Financial Statements and Notes [Abstract]

Schedule I - Condensed Financial Statements and Notes of Parent Company Only

Schedule I – ABITIBIBOWATER INC. CONDENSED FINANCIAL STATEMENTS AND NOTES

AbitibiBowater Inc.

(Parent Company Only)

Condensed Statements of Operations and Retained Earnings (Deficit)

(In millions)

	Years Ended December 31,
	Successor			Predecessor
	2011			2010				2009
Expenses:
Selling, general and administrative expenses		$	27		$	34			$	29
Reserve for receivables from subsidiaries (Note E)			–			(32	)			410
Operating loss			(27)			(2	)			(439	)
Interest expense (Note B)			(153)			(26	)			(40	)
Other income (expense), net			6			(1	)			12
Equity in income of subsidiaries			152			1,652				–
(Loss) income before reorganization items and income taxes			(22)			1,623				(467	)
Reorganization items, net (Note B)			–			(185	)			(2	)
(Loss) income before income taxes			(22)			1,438				(469	)
Income tax benefit			63			8				–
Net income (loss)			41			1,446				(469	)
Deficit as of beginning of year			–			(3,223	)			(2,754	)
Elimination of Predecessor Company deficit as a result of the application of fresh start accounting			–			1,777				–
Retained earnings (deficit) as of end of year (2011 and 2010: Successor; 2009: Predecessor)		$	41		$	–			$	(3,223	)

See accompanying notes to condensed financial statements.

AbitibiBowater Inc.

(Parent Company Only)

Condensed Balance Sheets

(In millions)

	Successor
	December 31, 2011				December 31, 2010
Assets
Accounts receivable from subsidiaries		$	–			$	40
Investment in and advances to subsidiaries (Note C)			5,565				5,977
Total assets		$	5,565			$	6,017
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities		$	15			$	26
Accounts payable to subsidiaries			232				178
Note and interest payable to a subsidiary (Note E)			945				864
Total current liabilities			1,192				1,068
Long-term debt			621				905
Total liabilities			1,813				1,973
Equity:
Common stock			–				–
Additional paid-in capital			4,022				4,044
Retained earnings			41				–
Accumulated other comprehensive loss			(311	)			–
Total AbitibiBowater Inc. equity			3,752				4,044
Total liabilities and equity		$	5,565			$	6,017

See accompanying notes to condensed financial statements.

AbitibiBowater Inc.

(Parent Company Only)

Condensed Statements of Cash Flows

(In millions)

	Years Ended December 31,
	Successor			Predecessor
	2011			2010				2009
Net cash provided by operating activities		$	–		$	–			$	–
Cash flows from investing activities:
Investment in and advances to affiliates			–			(850	)			–
Net cash used in investing activities			–			(850	)			–
Cash flows from financing activities:
Issuance of long-term debt			–			850				–
Net cash provided by financing activities			–			850				–
Net increase in cash and cash equivalents			–			–				–
Cash and cash equivalents:
Beginning of year			–			–				–
End of year (2011 and 2010: Successor; 2009: Predecessor)		$	–		$	–			$	–

XML

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other (Details) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Successor [Member]
Assets held for sale
Cash and cash equivalents	$ 0	$ 10
Accounts receivable	0	4
Other current assets	0	1
Fixed assets, net	7	149
Amortizable intangible assets	0	528
Other assets	0	6
Assets held for sale	$ 7	$ 698

XML

Pension and Other Postretirement Benefit Plans (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor [Member] Pension Plans [Member]	Dec. 31, 2011 Successor [Member] OPEB Plans [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2009 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2010 Predecessor [Member] OPEB Plans [Member]	Dec. 31, 2009 Predecessor [Member] OPEB Plans [Member]
Components of net periodic benefit cost relating to pension and OPEB plans
Service cost	$ 35	$ 3	$ 41	$ 40	$ 4	$ 3
Interest cost	335	22	350	346	23	24
Expected return on plan assets	(351)	0	(365)	(370)
Amortization of prior service cost (credit)	2	0	3	3	(7)	(10)
Amortization of net actuarial loss (gain)	0	0	4	(7)	3	4
Curtailments, settlements and special termination benefits	5	3	(19)	(4)		(5)
Net periodic benefit cost	$ 26	$ 28	$ 14	$ 8	$ 23	$ 16

XML

Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Note 26. Condensed Consolidating Financial Information

The following information is presented in accordance with Rule 3-10 of Regulation S-X and the public information requirements of Rule 144 promulgated pursuant to the Securities Act in connection with AbitibiBowater Inc.’s issuance of the 2018 Notes that are fully and unconditionally guaranteed, on a joint and several basis, by all of our 100% owned material U.S. subsidiaries (the “Guarantor Subsidiaries”). The 2018 Notes are not guaranteed by our foreign subsidiaries and our less than 100% owned U.S. subsidiaries (the “Non-guarantor Subsidiaries”).

The following condensed consolidating financial information sets forth the Statements of Operations for the years ended December 31, 2011, 2010 and 2009, the Balance Sheets as of December 31, 2011 and 2010 and the Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009 for AbitibiBowater Inc. (the “Parent”), the Guarantor Subsidiaries on a combined basis and the Non-guarantor Subsidiaries on a combined basis. The condensed consolidating financial information reflects the investments of the Parent in the Guarantor Subsidiaries and Non-guarantor Subsidiaries, as well as the investments of the Guarantor Subsidiaries in the Non-guarantor Subsidiaries, using the equity method of accounting. The principal consolidating adjustments are elimination entries to eliminate the investments in subsidiaries and intercompany balances and transactions.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2011 (Successor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	3,141		$	3,154		$	(1,539	)	$	4,756
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,684			2,445			(1,539	)		3,590
Depreciation, amortization and cost of timber harvested		–			90			130			–			220
Distribution costs		–			157			390			–			547
Selling, general and administrative expenses		27			58			73			–			158
Closure costs, impairment and other related charges		–			18			28			–			46
Net gain on disposition of assets and other		–			(2	)		(1	)		–			(3	)
Operating (loss) income		(27	)		136			89			–			198
Interest expense		(153	)		(7	)		(18	)		83			(95	)
Other income (expense), net		6			71			(42	)		(83	)		(48	)
Parent’s equity in income of subsidiaries		152			–			–			(152	)		–
(Loss) income before income taxes		(22	)		200			29			(152	)		55
Income tax benefit (provision)		63			(86	)		7			–			(16	)
Net income including noncontrolling interests		41			114			36			(152	)		39
Net loss attributable to noncontrolling interests		–			–			2			–			2
Net income attributable to AbitibiBowater Inc.	$	41		$	114		$	38		$	(152	)	$	41

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	2,761		$	3,393		$	(1,408	)	$	4,746
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,389			2,743			(1,408	)		3,724
Depreciation, amortization and cost of timber harvested		–			133			360			–			493
Distribution costs		–			134			419			–			553
Selling, general and administrative expenses		34			36			85			–			155
Reserve for receivables from subsidiaries		(32	)		–			–			32			–
Closure costs, impairment and other related charges		–			2			9			–			11
Net gain on disposition of assets and other		–			(13	)		(17	)		–			(30	)
Operating (loss) income		(2	)		80			(206	)		(32	)		(160	)
Interest expense		(26	)		(96	)		(371	)		10			(483	)
Other (expense) income, net		(1	)		66			29			(183	)		(89	)
Parent’s equity in income of subsidiaries		1,652			–			–			(1,652	)		–
Income (loss) before reorganization items and income taxes		1,623			50			(548	)		(1,857	)		(732	)
Reorganization items, net		(185	)		1,274			4,848			(4,036	)		1,901
Income (loss) before income taxes		1,438			1,324			4,300			(5,893	)		1,169
Income tax benefit (provision)		8			461			1,145			(8	)		1,606
Net income (loss) including noncontrolling interests		1,446			1,785			5,445			(5,901	)		2,775
Net income attributable to noncontrolling interests		–			–			(161	)		–			(161	)
Net income (loss) attributable to AbitibiBowater Inc.	$	1,446		$	1,785		$	5,284		$	(5,901	)	$	2,614

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2009 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	2,519		$	3,222		$	(1,375	)	$	4,366
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,052			2,666			(1,375	)		3,343
Depreciation, amortization and cost of timber harvested		–			147			455			–			602
Distribution costs		–			120			367			–			487
Selling, general and administrative expenses		29			74			95			–			198
Reserve for receivables from subsidiaries		410			299			–			(709	)		–
Closure costs, impairment and other related charges		–			111			91			–			202
Net gain on disposition of assets and other		–			(13	)		(78	)		–			(91	)
Operating (loss) income		(439	)		(271	)		(374	)		709			(375	)
Interest expense		(40	)		(136	)		(464	)		43			(597	)
Other income (expense), net		12			38			(78	)		(43	)		(71	)
Parent’s equity in loss of subsidiaries		–			–			–			–			–
(Loss) income before reorganization items and income taxes		(467	)		(369	)		(916	)		709			(1,043	)
Reorganization items, net		(2	)		(193	)		(444	)		–			(639	)
(Loss) income before income taxes		(469	)		(562	)		(1,360	)		709			(1,682	)
Income tax (provision) benefit		–			(24	)		146			–			122
Net (loss) income including noncontrolling interests		(469	)		(586	)		(1,214	)		709			(1,560	)
Net loss attributable to noncontrolling interests		–			–			7			–			7
Net (loss) income attributable to AbitibiBowater Inc.	$	(469	)	$	(586	)	$	(1,207	)	$	709		$	(1,553	)

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2011 (Successor)

(In millions)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	–	$	128	$	241	$	–		$	369
Accounts receivable, net		–		349		401		–			750
Accounts receivable from affiliates		–		70		302		(372	)		–
Inventories, net		–		172		303		–			475
Assets held for sale		–		–		7		–			7
Deferred income tax assets		–		27		82		–			109
Note and interest receivable from parent		–		945		–		(945	)		–
Note receivable from affiliate		–		11		–		(11	)		–
Other current assets		–		16		43		–			59
Total current assets		–		1,718		1,379		(1,328	)		1,769
Fixed assets, net		–		938		1,564		–			2,502
Amortizable intangible assets, net		–		–		18		–			18
Deferred income tax assets		–		524		1,225		–			1,749
Note receivable from affiliate		–		3		–		(3	)		–
Investments in and advances to consolidated subsidiaries		5,565		2,360		–		(7,925	)		–
Other assets		–		27		128		105			260
Total assets	$	5,565	$	5,570	$	4,314	$	(9,151	)	$	6,298
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities	$	15	$	166	$	363	$	–		$	544
Accounts payable to affiliates		232		27		–		(259	)		–
Note and interest payable to a subsidiary		945		–		–		(945	)		–
Note payable to affiliate		–		–		11		(11	)		–
Total current liabilities		1,192		193		374		(1,215	)		544
Long-term debt		621		–		–		–			621
Long-term debt due to affiliate		–		–		3		(3	)		–
Pension and other postretirement benefit obligations		–		475		1,049		–			1,524
Deferred income tax liabilities		–		–		75		–			75
Other long-term liabilities		–		34		23		–			57
Total liabilities		1,813		702		1,524		(1,218	)		2,821
Total equity		3,752		4,868		2,790		(7,933	)		3,477
Total liabilities and equity		5,565	$	5,570	$	4,314	$	(9,151	)	$	6,298

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2010 (Successor)

(In millions)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	–	$	164	$	155	$	–		$	319
Accounts receivable		–		348		485		–			833
Accounts receivable from affiliates		40		–		287		(327	)		–
Inventories		–		158		280		–			438
Assets held for sale		–		15		683		–			698
Deferred income tax assets		–		31		16		–			47
Note and interest receivable from parent		–		864		–		(864	)		–
Note receivable from affiliate		–		10		–		(10	)		–
Other current assets		–		25		63		–			88
Total current assets		40		1,615		1,969		(1,201	)		2,423
Fixed assets		–		858		1,783		–			2,641
Amortizable intangible assets		–		–		19		–			19
Deferred income tax assets		–		439		1,297		–			1,736
Note receivable from affiliate		–		30		–		(30	)		–
Investments in and advances to consolidated subsidiaries		5,977		2,933		–		(8,910	)		–
Other assets		–		34		168		114			316
Total assets	$	6,017	$	5,909	$	5,236	$	(10,027	)	$	7,135
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities	$	26	$	175	$	346	$	–		$	547
Accounts payable to affiliates		178		99		–		(277	)		–
Note and interest payable to a subsidiary		864		–		–		(864	)		–
Note payable to affiliate		–		–		10		(10	)		–
Liabilities associated with assets held for sale		–		–		289		–			289
Total current liabilities		1,068		274		645		(1,151	)		836
Long-term debt		905		–		–		–			905
Long-term debt due to affiliate		–		–		30		(30	)		–
Pension and other postretirement benefit obligations		–		362		910		–			1,272
Deferred income tax liabilities		–		–		72		–			72
Other long-term liabilities		–		32		31		–			63
Total liabilities		1,973		668		1,688		(1,181	)		3,148
Total equity		4,044		5,241		3,548		(8,846	)		3,987
Total liabilities and equity	$	6,017	$	5,909	$	5,236	$	(10,027	)	$	7,135

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011 (Successor)

(In millions)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Net cash provided by operating activities	$	–	$	188		$	10		$	–	$	198
Cash flows from investing activities:
Cash invested in fixed assets		–		(30	)		(67	)		–		(97	)
Disposition of investment in ACH		–		–			296			–		296
Disposition of other assets		–		11			8			–		19
Proceeds from holdback related to disposition of investment in MPCo		–		–			29			–		29
Proceeds from insurance settlements		–		–			8			–		8
Increase in restricted cash		–		–			(2	)		–		(2	)
Increase in deposit requirements for letters of credit, net		–		–			(8	)		–		(8	)
Advances from (to) affiliate		–		150			(150	)		–		–
Net cash provided by investing activities		–		131			114			–		245
Cash flows from financing activities:
Dividends and distribution to noncontrolling interests		–		–			(21	)		–		(21	)
Acquisition of noncontrolling interest		–		–			(15	)		–		(15	)
Payments of long-term debt		–		(354	)		–			–		(354	)
Payment of credit facility fees		–		(1	)		(2	)		–		(3	)
Net cash used in financing activities		–		(355	)		(38	)		–		(393	)
Net (decrease) increase in cash and cash equivalents		–		(36	)		86			–		50
Cash and cash equivalents:
Beginning of year		–		164			155			–		319
End of year	$	–	$	128		$	241		$	–	$	369

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2010 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	–		$	168		$	(129	)	$	–		$	39
Cash flows from investing activities:
Cash invested in fixed assets		–			(19	)		(62	)		–			(81	)
Disposition of assets		–			43			53			–			96
Decrease in restricted cash		–			12			64			–			76
Collections on note receivable from affiliate		–			21			–			(21	)		–
Increase in deposit requirements for letters of credit, net		–			–			(3	)		–			(3	)
Release of pension trust assets		–			8			–			–			8
Investment in and advances (to) from affiliates		(850	)		100			750			–			–
Net cash (used in) provided by investing activities		(850	)		165			802			(21	)		96
Cash flows from financing activities:
Decrease in secured borrowings, net		–			(141	)		–			–			(141	)
Debtor in possession financing costs		–			(9	)		(1	)		–			(10	)
Payments of debtor in possession financing		–			(166	)		(40	)		–			(206	)
Term loan repayments		–			–			(347	)		–			(347	)
Short-term financing, net		–			(204	)		(134	)		–			(338	)
Payments of note payable to affiliate		–			–			(21	)		21			–
Issuance of long-term debt		850			–			–			–			850
Payments of long-term debt		–			(34	)		(300	)		–			(334	)
Payments of financing and credit facility fees		–			(33	)		(13	)		–			(46	)
Net cash provided by (used in) financing activities		850			(587	)		(856	)		21			(572	)
Net decrease in cash and cash equivalents		–			(254	)		(183	)		–			(437	)
Cash and cash equivalents:
Beginning of year		–			418			338			–			756
End of year (Successor)	$	–		$	164		$	155		$	–		$	319

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2009 (Predecessor)

(In millions)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	–	$	323		$	(277	)	$	–		$	46
Cash flows from investing activities:
Cash invested in fixed assets		–		(28	)		(73	)		–			(101	)
Disposition of investment in MPCo		–		–			554			–			554
Disposition of other assets		–		16			103			–			119
Increase in restricted cash		–		(12	)		(130	)		–			(142	)
Collections on note receivable from affiliate		–		15			–			(15	)		–
Decrease in deposit requirements for letters of credit, net		–		–			49			–			49
Cash received in monetization of derivative financial instruments		–		–			5			–			5
Net cash (used in) provided by investing activities		–		(9	)		508			(15	)		484
Cash flows from financing activities:
Cash dividends to noncontrolling interests		–		–			(7	)		–			(7	)
Debtor in possession financing		–		166			95			–			261
Debtor in possession financing costs		–		(23	)		(8	)		–			(31	)
Payment of debtor in possession financing		–		–			(55	)		–			(55	)
Short-term financing, net		–		(74	)		67			–			(7	)
Payments of note payable to affiliate		–		–			(15	)		15			–
Payments of long-term debt		–		(1	)		(117	)		–			(118	)
Payments of financing and credit facility fees		–		(8	)		(1	)		–			(9	)
Net cash provided by (used in) financing activities		–		60			(41	)		15			34
Net increase in cash and cash equivalents		–		374			190			–			564
Cash and cash equivalents:
Beginning of year		–		44			148			–			192
End of year	$	–	$	418		$	338		$	–		$	756

XML

Inventories Net (Tables)

12 Months Ended

Dec. 31, 2011

Inventories, Net [Abstract]

Inventories, net

	Successor
(In millions)	2011		2010
At lower of cost or market (2011); at fair value (2010):
Raw materials and work in process	$	152	$	146
Finished goods		168		184
Mill stores and other supplies		155		108
	$	475	$	438

XML

Summary of Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Summary of Significant Accounting Policies (Textual) [Abstract]
Maturity period of demand deposits and other short-term, highly liquid securities	three months or less from the date of purchase
APIC pool		$ 0

XML

Income Taxes (Details 5) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Beginning of year	$ 191	$ 206
(Decrease) increase in unrecognized tax benefits resulting from
Positions taken in a prior period	(100)	2
Positions taken in the current period	20	42
Change in Canadian foreign exchange rate	(2)	(1)
Expiration of statute of limitations		(58)
End of year (Successor)	$ 109	$ 191

XML

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Share-Based Compensation [Abstract]

Weighted average assumptions

In 2011, we made grants of 1,106,533 stock options to our non-employee directors and to certain employees using the following weighted-average assumptions:

Exercise price	$	20.18
Fair value	$	9.71
Expected dividend yield		–
Expected volatility		45.5	%
Risk-free interest rate		2.0	%
Expected life in years		6.25

Activity of stock options

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Life (years)		Aggregate Intrinsic Value
Outstanding as of December 31, 2010 (Successor)		–		$	–			$	–
Granted		1,106,533			20.18
Exercised		–			–
Forfeited		(197,107	)		23.05
Outstanding as of December 31, 2011 (Successor)		909,426		$	19.56		9.5	$	–
Exercisable as of December 31, 2011 (Successor)		134,331		$	23.05		9.0	$	–

Activity of RSUs and DSUs

	Number of Units			Weighted- Average Fair Value at  Grant Date
Outstanding as of December 31, 2010 (Successor)		–		$	–
Granted		434,689			18.07
Vested and settled (1)		(7,262	)		26.49
Forfeited		(28,471	)		23.05
Outstanding as of December 31, 2011 (Successor)		398,956		$	17.56

⁽¹⁾  An additional 34,413 awards were vested, but were not settled prior to December 31, 2011; therefore, the awards remain outstanding.

XML

Closure Costs, Impairment and Other Related Charges (Tables)

12 Months Ended

Dec. 31, 2011

Restructuring And Related Activities [Abstract]

Closure costs, impairment and other related charges

	Successor		Predecessor
(In millions)	2011		2010		2009
Impairment of long-lived assets	$	16	$	2	$	87
Accelerated depreciation		8		–		21
Impairment of assets held for sale		–		–		84
Contractual obligations and other commitments		–		8		–
Severance and other costs		22		1		10
	$	46	$	11	$	202

XML

Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Change in unamortized prior service costs and credits, tax portion	$ 0	$ 0	$ 0
Change in unamortized actuarial gains and losses, tax portion	127	0	0
Change in unamortized actuarial gain and losses attributable to noncontrolling interests, tax portion	$ 0

XML

Condensed Financial Statements and Notes (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current liabilities:
Note and interest payable to a subsidiary (Note E)	$ 0
Equity (deficit):
Accumulated other comprehensive loss	(311)	0
Successor [Member]
Assets
Accounts receivable from subsidiaries	0	0
Investment in and advances to subsidiaries (Note C)	0	0
Total assets	6,298	7,135
Current liabilities:
Accounts payable and accrued liabilities	544	547
Note and interest payable to a subsidiary (Note E)		0
Total current liabilities	544	836
Long-term debt	621	905
Total liabilities	2,821	3,148
Equity (deficit):
Common stock
Additional paid-in capital	3,687	3,709
Retained earnings	41
Accumulated other comprehensive loss	(311)
Total AbitibiBowater Inc. shareholders' equity	3,417	3,709
Total liabilities and equity	6,298	7,135
Parent [Member] | Successor [Member]
Assets
Accounts receivable from subsidiaries		40
Investment in and advances to subsidiaries (Note C)	5,565	5,977
Total assets	5,565	6,017
Current liabilities:
Accounts payable and accrued liabilities	15	26
Accounts payable to subsidiaries	232	178
Note and interest payable to a subsidiary (Note E)	945	864
Total current liabilities	1,192	1,068
Long-term debt	621	905
Total liabilities	1,813	1,973
Equity (deficit):
Common stock
Additional paid-in capital	4,022	4,044
Retained earnings	41
Accumulated other comprehensive loss	(311)
Total AbitibiBowater Inc. shareholders' equity	3,752	4,044
Total liabilities and equity	$ 5,565	$ 6,017

XML

Share-Based Compensation (Details) (USD $)	12 Months Ended
	Dec. 31, 2011 Y
Weighted average assumptions
Granted, Fair value at grant date	$ 9.71
Granted, Weighted-Average Exercise Price	$ 20.18
Expected dividend yield	0.00%
Expected volatility	45.50%
Risk-free interest rate	2.00%
Expected life in years	6.25

XML

Timberland and Operating Leases and Purchase Obligations (Tables)

12 Months Ended

Dec. 31, 2011

Timberland and Operating Leases and Purchase Obligations [Abstract]

Summary of operating leases and commitments for purchase obligations

As of December 31, 2011, the future minimum rental payments under timberland and operating leases and commitments for purchase obligations were as follows:

(In millions)	Timberland Leases		Purchase Obligations  (1)		Operating Leases, Net
2012	$	–	$	34	$	7
2013		–		21		6
2014		–		18		4
2015		–		14		4
2016		–		13		6
Thereafter		2		162		6
	$	2	$	262	$	33

⁽¹⁾  Purchase obligations include, among other things, a bridge and railroad contract for our Fort Frances, Ontario operations with commitments totaling $131 million through 2044.

XML

Condensed Consolidating Financial Information (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended						3 Months Ended				12 Months Ended										3 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Parent [Member]	Dec. 31, 2010 Parent [Member]	Dec. 31, 2009 Parent [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member] Parent [Member]	Dec. 31, 2009 Predecessor [Member] Parent [Member]	Dec. 31, 2010 Predecessor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2009 Predecessor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2010 Predecessor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2009 Predecessor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2010 Predecessor [Member] Consolidating Adjustments [Member]	Dec. 31, 2009 Predecessor [Member] Consolidating Adjustments [Member]	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member] Parent [Member]	Dec. 31, 2011 Successor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2011 Successor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2011 Successor [Member] Consolidating Adjustments [Member]
Condensed Consolidating Statement of Operations
Sales							$ 1,272	$ 1,192	$ 1,182	$ 1,100	$ 4,746	$ 4,366			$ 2,761	$ 2,519	$ 3,393	$ 3,222	$ (1,408)	$ (1,375)	$ 1,147	$ 1,224	$ 1,200	$ 1,185	$ 4,756		$ 3,141	$ 3,154	$ (1,539)
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested											3,724	3,343			2,389	2,052	2,743	2,666	(1,408)	(1,375)					3,590		2,684	2,445	(1,539)
Depreciation, amortization and cost of timber harvested											493	602			133	147	360	455							220		90	130
Distribution costs											553	487			134	120	419	367							547		157	390
Selling, general and administrative expenses											155	198	34	29	36	74	85	95							158	27	58	73
Reserve for receivables from subsidiaries													(32)	410		299			32	(709)
Closure costs, impairment and other related charges							6	(3)	3	5	11	202			2	111	9	91			12	17	4	13	46		18	28
Net gain on disposition of assets and other							16	1	4	9	(30)	(91)			(13)	(13)	(17)	(78)			0	(1)	3	1	(3)		(2)	(1)
Operating income (loss)							11	12	(73)	(110)	(160)	(375)	(2)	(439)	80	(271)	(206)	(374)	(32)	709	47	72	52	27	198	(27)	136	89
Interest expense (contractual interest of $714 and $788 for the years ended December 31, 2010 and 2009, respectively) (Note 16)	(95)	(483)	(597)								(483)	(597)	(26)	(40)	(96)	(136)	(371)	(464)	10	43					(95)	(153)	(7)	(18)	83
Other income (expense), net											(89)	(71)	(1)	12	66	38	29	(78)	(183)	(43)					(48)	6	71	(42)	(83)
Parent's equity in income of subsidiaries												0	1,652	0		0		0	(1,652)	0						152			(152)
Income (loss) before reorganization items and income taxes											(732)	(1,043)	1,623	(467)	50	(369)	(548)	(916)	(1,857)	709					55
Reorganization items, net (Note 3)											1,901	(639)	(185)	(2)	1,274	(193)	4,848	(444)	(4,036)
Income (loss) before income taxes											1,169	(1,682)	1,438	(469)	1,324	(562)	4,300	(1,360)	(5,893)	709					55	(22)	200	29	(152)
Income tax (provision) benefit				(63)	(8)	(32)					1,606	122	8		461	(24)	1,145	146	(8)						(16)	63	(86)	7
Net income (loss) including noncontrolling interests											2,775	(1,560)	1,446	(469)	1,785	(586)	5,445	(1,214)	(5,901)	709					39	41	114	36	(152)
Net loss (income) attributable to noncontrolling interests											(161)	7					(161)	7							2			2
Net income (loss) attributable to AbitibiBowater Inc.							$ 4,240	$ (829)	$ (297)	$ (500)	$ 2,614	$ (1,553)	$ 1,446	$ (469)	$ 1,785	$ (586)	$ 5,284	$ (1,207)	$ (5,901)	$ 709	$ (6)	$ (44)	$ 61	$ 30	$ 41	$ 41	$ 114	$ 38	$ (152)

XML

Financing Arrangements (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			1 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2011 Promissory Note to ANC [Member]	Jun. 30, 2011 Senior Secured Notes Due 2018 [Member]	Oct. 04, 2010 Senior Secured Notes Due 2018 [Member]	Dec. 31, 2011 Senior Secured Notes Due 2018 [Member]	Dec. 31, 2010 Senior Secured Notes Due 2018 [Member]
Debt Instrument [Line Items]
Amount of proceeds from sales of certain assets to be applied first to debt repayment						$ 100
Percentage of redemption price on principal amount from sale of assets within six months of emergence						105.00%	105.00%
Redemption of principal amount			90	179		264
Fair value of debt							905
Premium on debt						35	55
Carrying value of debt						621
Fees incurred							27
Percentage of owned entity		60.00%	52.50%
Cash payment for purchase of minority interest in ANC			15
Principal amount of issued secured promissory note			90
Redemption price as percentage of principal prior to October 15, 2013						103.00%
Interest rate of notes					10.25%	10.25%
Proceeds from issuance of long-term debt					850
Aggregate principal amount of senior secured notes acquired from ABI Escrow Corporation upon emergence							850
Financing Arrangements (Textual) [Abstract]
Net gain on extinguishment of debt	$ 6

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Use of estimates

Use of estimates

In preparing our consolidated financial statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement (“OPEB”) benefit plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions.

Fresh start accounting

Fresh start accounting

As discussed in Note 1, “Organization and Basis of Presentation – Basis of presentation,” we applied fresh start accounting as of the December 31, 2010 Convenience Date. Under fresh start accounting, the reorganization value, as derived from the enterprise value established in the Plans of Reorganization, was allocated to our assets and liabilities based on their fair values (except for deferred income taxes and pension and OPEB benefit obligations) in accordance with FASB ASC 805, “Business Combinations,” with the excess of net asset values over the reorganization value recorded as an adjustment to equity. The amount of deferred income taxes recorded was determined in accordance with FASB ASC 740, “Income Taxes” (“FASB ASC 740”). The amount of pension and OPEB benefit obligations recorded was determined in accordance with FASB ASC 715, “Compensation – Retirement Benefits.” Therefore, all assets and liabilities reflected in our Consolidated Balance Sheet as of December 31, 2010 were recorded at fair value or, for deferred income taxes and pension and OPEB benefit obligations, in accordance with the respective accounting policy described below. Except for the impact of the application of fresh start accounting on the carrying values of our assets and liabilities as of December 31, 2010, our assets and liabilities as of December 31, 2011 are accounted for based on the significant accounting policies described below.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase.

Accounts receivable

Accounts receivable

Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value.

Monetization of notes receivable

Monetization of notes receivable

We monetized notes receivable using qualified special purpose entities (“QSPEs”) set up in accordance with FASB ASC 860, “Transfers and Servicing” (“FASB ASC 860”). The QSPEs that were established for note monetization purposes have not been consolidated within our financial statements. Our retained interest consists principally of the net excess cash flows (the difference between the interest received on the notes receivable and the interest paid on the debt issued by the QSPE to third parties) and a cash reserve account established at inception. Fair value of our retained interest was estimated based on the present value of future excess cash flows to be received over the life of the notes using management’s best estimate of key assumptions, including credit risk and discount rates. Our retained interest is included in “Other assets” in our Consolidated Balance Sheets. Excess cash flows revert to us on a quarterly or semi-annual basis. The balance of the cash reserve accounts, if any, reverts to us at the maturity date of the QSPE third-party debt.

Inventories

Inventories

Inventories are stated at the lower of cost or market value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations when incurred.

Assets held for sale and liabilities associated with assets held for sale

Assets held for sale and liabilities associated with assets held for sale

Assets held for sale, net of liabilities associated with assets held for sale, are carried in our Consolidated Balance Sheets at the lower of carrying value or fair value less costs to sell. We cease recording depreciation and amortization when assets are classified as held for sale.

Fixed assets, including timber and timberlands

Fixed assets, including timber and timberlands

Fixed assets acquired by the Predecessor Company are stated at their December 31, 2010 carrying values less accumulated depreciation for the current year. Fixed assets acquired by the Successor Company are stated at acquisition cost less accumulated depreciation. The cost of the fixed assets is reduced by any investment tax credits or government capital grants received. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs, including those associated with planned major maintenance, are expensed as incurred. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. We also capitalize costs related to the acquisition of timber and timberlands and subsequent costs incurred for the planting and growing of timber. The cost generally includes the acquisition cost of land and timber, site preparation and other costs. These costs, excluding land, are expensed at the time the timber is harvested, based on annually determined depletion rates, and are included in “Depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. Growth and yield models are used to estimate timber volume on our land from year to year. These volumes affect the depletion rates, which are calculated annually based on the capitalized costs and the total timber volume based on the current stage of the growth cycle.

Asset retirement obligations

Asset retirement obligations

We record an asset and a liability equal to the fair value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists; life of the long-lived asset is determinable; and a reasonable estimate of fair value can be made, even if the timing and/or settlement of the obligation is conditional on a future event that may or may not be within our control. Fair value is established using the discounted cash flow method. The liability is accreted to recognize the passage of time using a credit adjusted risk-free interest rate, and the asset is depreciated over the life of the related equipment or facility. The asset and liability are subsequently adjusted for changes in the amount or timing of the estimated costs.

Environmental costs

Environmental costs

We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable.

Amortizable intangible assets

Amortizable intangible assets

Amortizable intangible assets are stated at their December 31, 2010 carrying value less accumulated amortization. Amortization of the water rights is provided on a straight-line basis over the estimated useful life of the assets. Intangible assets are grouped with the related long-lived assets when tested for impairment, as described below.

Impairment of long-lived assets

Impairment of long-lived assets

The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, amortizable intangible assets and liabilities directly related to those assets, such as asset retirement obligations (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction.

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group.

When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell).

Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed or use of the asset group has ceased.

Income taxes

Income taxes

Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider estimates of future taxable income and tax planning strategies. We have not provided for U.S. income taxes on the undistributed earnings of certain of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. We recognize interest and penalties accrued related to unrecognized tax benefits as components of income tax expense.

Pension and OPEB benefit obligation

Pension and OPEB benefit obligations

For our defined benefit plans, we recognize an asset or a liability for pension and OPEB benefit obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB benefits. Amounts we contribute to our defined contribution plans are expensed as incurred.

Fair value measurements

Fair value measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on our principal or most advantageous market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows:

Level  1  –   Valuations based on quoted prices in active markets for identical assets and liabilities.

Level  2  –   Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates.

Level  3  –   Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs.

Share-based compensation

Share-based compensation

We amortize the fair value of our stock incentive awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”) and deferred stock units (“DSUs”) is determined based on the market price of a share of AbitibiBowater Inc. common stock on the grant date. We estimate forfeitures of stock incentive awards based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures are updated to reflect new information or actual experience, as it becomes available.

The additional paid-in capital (“APIC”) pool represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we record the excess as income tax expense in our Consolidated Statements of Operations. For the year ended December 31, 2011, the APIC pool was not sufficient to cover the nominal amount of tax deficiencies recorded. For the years ended December 31, 2010 and 2009, we had a sufficient APIC pool to cover any tax deficiencies recorded; as a result, these deficiencies did not affect our results of operations. The APIC pool was reset to zero as of December 31, 2010 as a result of the application of fresh start accounting.

We classify the cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs and DSUs that exceed the compensation cost recognized (excess tax benefits) as financing cash flows.

Revenue recognition

Revenue recognition

Pulp, paper and wood products delivered to our customers in the United States and Canada directly from our mills by either truck or rail are sold with the terms free on board (“FOB”) shipping point. For these sales, revenue is recorded when the product leaves the mill. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. For these sales, revenue is recorded when risk of loss and title of the product passes to the customer. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured.

Income (loss) per share

Income (loss) per share

We calculate basic net income (loss) per share attributable to AbitibiBowater Inc. common shareholders by dividing our net income (loss) by the weighted-average number of outstanding common shares, including outstanding exchangeable shares of the Predecessor Company in 2009 and 2010. We calculate diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders by dividing our net income (loss), as adjusted in 2009 and 2010 for the assumed conversion of the pre-petition convertible notes, by the weighted-average number of outstanding common shares, including outstanding exchangeable shares of the Predecessor Company in 2009 and 2010, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as the pre-petition convertible notes, stock options, RSUs and DSUs). The incremental shares are calculated using the “if converted” method (pre-petition convertible notes) or the treasury stock method (stock options, RSUs and DSUs).

Translation

Translation

The functional currency of the majority of our operations is the U.S. dollar. However, some of these operations maintain their books and records in their local currency in accordance with certain statutory requirements. Non-monetary assets and liabilities of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported as “Other expense, net” in our Consolidated Statements of Operations.

The functional currency of all other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.”

Distribution costs

Distribution costs

Shipping and handling costs represent costs associated with shipping products to customers and handling finished goods. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations.

Creditor Protection Proceedings

Creditor Protection Proceedings

As discussed in Note 1, “Organization and Basis of Presentation – Basis of presentation,” during the Creditor Protection Proceedings, we applied the guidance in FASB ASC 852, which requires that financial statements distinguish transactions and events that are directly associated with the reorganization process from the ongoing operations of the business.

Reorganization items, net

FASB ASC 852 requires separate disclosure of reorganization items such as certain expenses, provisions for losses and other charges and credits directly associated with or resulting from the reorganization and restructuring of the business that were realized or incurred during the Creditor Protection Proceedings, including the impact of the implementation of the Plans of Reorganization and the application of fresh start accounting. As a result, during the Creditor Protection Proceedings, all charges related to the commencement of an indefinite idling or permanent closure of a mill or a paper machine subsequent to the commencement of the Creditor Protection Proceedings were recorded in “Reorganization items, net,” whereas all charges related to the commencement of an indefinite idling or permanent closure of a mill or a paper machine prior to the commencement of the Creditor Protection Proceedings were recorded in “Closure costs, impairment and other related charges,” both in our Consolidated Statements of Operations. The recognition of Reorganization items, net, unless specifically prescribed otherwise by FASB ASC 852, was in accordance with other applicable U.S. GAAP, including accounting for impairments of long-lived assets, accelerated depreciation, severance and termination benefits and costs associated with exit and disposal activities (including costs incurred in a restructuring).

Interest expense

During the Creditor Protection Proceedings, we recorded interest expense on our pre-petition debt obligations only to the extent that: (i) interest would be paid during the Creditor Protection Proceedings or (ii) it was probable that interest would be an allowed priority, secured, or unsecured claim.

XML

Pension and Other Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2011

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

Note 18. Pension and Other Postretirement Benefit Plans

We have multiple contributory and non-contributory defined benefit pension plans covering a significant portion of our U.S. and Canadian employees. We also sponsor a number of OPEB benefit plans (e.g., defined benefit health care and life insurance plans) for retirees at certain locations. Benefits are based on years of service and, depending on the plan, average compensation earned by employees either during their last years of employment or over their careers. Our plan assets and cash contributions to the plans have been sufficient to provide pension benefits to participants and meet the funding requirements of ERISA in the United States and, prior to the CCAA Proceedings, applicable pension benefits legislation in Canada. In connection with the CCAA Proceedings, on May 8, 2009, the Canadian Court approved a reduction in the cash contributions required for our Canadian pension plans. As a result, subsequent to that date and through the Emergence Date, the cash contributions we made to our Canadian pension plans were sufficient to meet the funding requirements for current service costs, but not for prior service costs. Suspended contributions for past service costs associated with our Canadian pension plans were estimated to be approximately $159 million on an annual basis. Prior to our emergence from the Creditor Protection Proceedings, we entered into agreements with the provinces of Quebec and Ontario relating in part to funding relief in respect of the material aggregate solvency deficits in our registered pension plans in these provinces, as further discussed below under “Canadian pension funding relief.”

In addition to the previously described plans, we have a number of defined contribution plans covering substantially all of our U.S. employees and a significant portion of our Canadian employees. Under the U.S. defined contribution plans, employees are allowed to contribute to these plans and we make matching contributions. Effective April 1, 2009, the matching contribution was suspended for non-union employees but was reinstated effective January 1, 2011. In addition, under the U.S. defined contribution plans, most non-union employees also receive an automatic company contribution, regardless of the employee’s contribution. The amount of the automatic company contribution is a percentage of the employee’s pay, determined based on age and years of service. The Canadian registered defined contribution plans provide for mandatory contributions by employees and by us, as well as opportunities for employees to make additional optional contributions and receive, in some cases, matching contributions on those optional amounts. Our expense for the defined contribution plans totaled $22 million in 2011, $12 million in 2010 and $14 million in 2009.

Certain of the above plans are covered under collective bargaining agreements.

The following tables include our foreign (Canada and South Korea) and domestic (U.S.) plans. The pension and OPEB benefit obligations of the foreign plans are significant relative to the total benefit obligations; however, with the exception of the health care trend rates, the assumptions used to measure the obligations of those plans are not significantly different from those used for our domestic plans.

The changes in our pension and OPEB benefit obligations and plan assets for the years ended December 31, 2011 and 2010 and the funded status and reconciliation of amounts recognized in our Consolidated Balance Sheets as of December 31, 2011 and 2010 were as follows:

	Pension Plans				OPEB Plans
	Successor		Predecessor		Successor		Predecessor
(In millions)	2011		2010		2011		2010
Change in benefit obligations:
Benefit obligations as of beginning of year (2011: Successor; 2010: Predecessor)	$	6,302	$	5,665	$	408	$	382
Service cost		35		41		3		4
Interest cost		335		350		22		23
Actuarial loss (gain)		397		649		(6)		29
Participant contributions		17		21		5		5
Plan amendments		1		–		–		(8)
Plan amendments upon emergence from the Creditor Protection Proceedings		–		(22)		–		(4)
Curtailments and settlements		(66)		(16)		4		–
Curtailments and settlements upon emergence from the Creditor Protection Proceedings		–		(98)		–		–
Deconsolidation of BPCL (Note 1 and Note 3)		–		(92)		–		–
Benefits paid		(502)		(461)		(29)		(31)
Effect of foreign currency exchange rate changes		(108)		265		(3)		8
Benefit obligations as of end of year (Successor)		6,411		6,302		404		408
Change in plan assets:
Fair value of plan assets as of beginning of year (2011: Successor; 2010: Predecessor)		5,422		5,241		–		–
Actual return on plan assets		294		458		–		–
Employer contributions		196		50		24		26
Participant contributions		17		21		5		5
Settlements		(71)		(14)		–		–
Settlements upon emergence from the Creditor Protection Proceedings		–		(43)		–		–
Deconsolidation of BPCL (Note 1 and Note 3)		–		(67)		–		–
Benefits paid		(502)		(461)		(29)		(31)
Effect of foreign currency exchange rate changes		(97)		237		–		–
Fair value of plan assets as of end of year (Successor)		5,259		5,422		–		–
Funded status as of end of year (Successor)	$	(1,152)	$	(880)	$	(404)	$	(408)
Amounts recognized in our Consolidated Balance Sheets consisted of (Successor):
Other assets	$	2	$	19	$	–	$	–
Accounts payable and accrued liabilities		(9)		(7)		(25)		(28)
Pension and OPEB benefit obligations		(1,145)		(892)		(379)		(380)
Net obligations recognized	$	(1,152)	$	(880)	$	(404)	$	(408)

The sum of the benefit obligations and the sum of the fair value of plan assets for pension plans with benefit obligations in excess of plan assets were $6,351 million and $5,197 million, respectively, as of December 31, 2011, and were $5,368 million and $4,469 million, respectively, as of December 31, 2010. The sum of the accumulated benefit obligations and the sum of the fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $6,288 million and $5,197 million, respectively, as of December 31, 2011, and were $4,906 million and $4,063 million, respectively, as of December 31, 2010. The total accumulated benefit obligations for all pension plans were $6,348 million and $6,242 million as of December 31, 2011 and 2010, respectively.

The components of net periodic benefit cost relating to our pension and OPEB plans for the years ended December 31, 2011, 2010 and 2009 were as follows:

	Pension Plans						OPEB Plans
	Successor		Predecessor				Successor		Predecessor
	2011		2010		2009		2011		2010		2009
Service cost	$	35	$	41	$	40	$	3	$	4	$	3
Interest cost		335		350		346		22		23		24
Expected return on plan assets		(351)		(365)		(370)		–		–		–
Amortization of prior service cost (credit)		2		3		3		–		(7)		(10)
Amortization of net actuarial loss (gain)		–		4		(7)		–		3		4
Curtailments, settlements and special termination benefits		5		(19)		(4)		3		–		(5)
	$	26	$	14	$	8	$	28	$	23	$	16

In December 2011, in consideration for the mutual release of all claims or potential claims arising from the Creditor Protection Proceedings between us and certain former employees, we agreed to amend a certain defined benefit plan to add the former employees as participants, and the employees agreed to pay us $2 million in cash. The plan amendment resulted in an increase in the pension benefit obligation of $2 million, which was recognized in other comprehensive loss as prior service costs and then immediately amortized into our Consolidated Statements of Operations for the year ended December 31, 2011, offsetting the $2 million we recorded upon receipt of the cash from the employees. We do not expect to realize any future benefits as a result of the plan amendment. The table above reflects the amortization of the prior service costs, but does not reflect the offsetting gain.

A detail of amounts included in “Accumulated other comprehensive loss” in our Consolidated Balance Sheets can be found in Note 8, “Accumulated Other Comprehensive Loss.” We estimate that $1 million of net actuarial losses will be amortized from accumulated other comprehensive loss into our Consolidated Statements of Operations in 2012.

The following is a summary of the special events that impacted our net periodic benefit costs as a curtailment, settlement or special termination benefit for the years ended December 31, 2011, 2010 and 2009:

	Pension Plans						OPEB Plans
	Successor		Predecessor				Successor		Predecessor
(In millions)	2011		2010		2009		2011		2010		2009
Settlements resulting from lump-sum payouts or plan liquidations and wind-ups	$	3	$	1	$	2	$	–	$	–	$	–
Curtailments, net, and special retirement benefits resulting from the closure of mills or paper machines and other mill restructurings		2		4		(6)		3		–		(5)
Curtailments and settlements that arose upon our emergence from the Creditor Protection Proceedings		–		(24)		–		–		–		–
	$	5	$	(19)	$	(4)	$	3	$	–	$	(5)

In 2011, we ceased paperboard production at our Coosa Pines paper mill (eliminating 137 positions), reduced the workforce at our Mersey operations (eliminating 97 positions), permanently closed a paper machine at our Kenogami paper mill (eliminating 130 positions) and liquidated, either partially or fully, two of our pension plans. The cost of these settlements and curtailments was included in “Closure costs, impairment and other related charges” in our Consolidated Statements of Operations for the year ended December 31, 2011.

In 2010, we indefinitely idled (and subsequently permanently closed) our Gatineau paper mill, which impacted approximately 330 employees. In addition, effective upon our emergence from the Creditor Protection Proceedings, the following changes were made to our pension plans:

Curtailments – Benefits for participants in the majority of our non-qualified pension plans and certain of our qualified plans were frozen so that participants will no longer earn benefits for future service. These changes resulted in an $8 million reduction in our benefit obligations and a corresponding decrease in our accumulated other comprehensive loss, but had a negligible impact on our 2010 net periodic benefit cost.

Settlements – Participants who elected to retain their claims against us under certain non-qualified pension plans forfeited their benefits under those plans, which resulted in a $47 million reduction in our benefit obligations and a $23 million decrease in our accumulated other comprehensive loss. We also recorded a settlement gain of $24 million in our 2010 net periodic benefit cost.

Plan amendments – We reduced benefits for inactive participants in the majority of our non-qualified pension plans. We also placed a cap on the participant’s annual benefits. These plan amendments resulted in a $26 million reduction in our benefit obligations and a corresponding decrease in our accumulated other comprehensive loss, but had a negligible impact on our 2010 net periodic benefit cost. These changes will reduce future net periodic benefit cost.

Plan combinations – We replaced and combined several of our existing non-qualified plans, which had no effect on our benefit obligations, accumulated other comprehensive loss or net periodic benefit cost.

In 2009, we indefinitely idled (and subsequently permanently closed) our Dolbeau paper mill, our Beaupre, Quebec paper mill and a paper machine at our Thunder Bay paper mill. We also permanently closed our Grand Falls, Newfoundland and Labrador newsprint mill, our Westover sawmill, our Albertville sawmill and our Goodwater planer mill operations. Approximately 1,319 employees were impacted by these events. In addition, approximately 33 employees retired at our Laurentide paper mill following a special program introduced in 2008.

Assumptions used to determine benefit obligations and net periodic benefit cost

The weighted-average assumptions used to determine the benefit obligations at the measurement dates and the net periodic benefit cost for the years ended December 31, 2011, 2010 and 2009 were as follows:

	Pension Plans						OPEB Plans
	2011		2010		2009		2011		2010		2009
Benefit obligations:
Discount rate		4.9%		5.5%		6.4%		4.9%		5.6%		6.3%
Rate of compensation increase		1.2%		0.9%		2.3%		–		–		–
Net periodic benefit cost:
Discount rate		5.5%		6.4%		7.3%		5.6%		6.3%		7.0%
Expected return on assets		6.6%		6.8%		7.3%		–		–		–
Rate of compensation increase		0.9%		2.3%		3.0%		–		–		–

The discount rate for our domestic plans was determined by considering the timing and amount of projected future benefit payments and was based on a portfolio of long-term high quality corporate bonds of a similar duration or, for our foreign plans, a model that matches the plan’s duration to published yield curves. In determining the expected return on assets, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. In determining the rate of compensation increase, we reviewed historical salary increases and promotions, while considering current industry conditions, the terms of collective bargaining agreements with our employees and the outlook for our industry.

The assumed health care cost trend rates used to determine the benefit obligations for our domestic and foreign OPEB plans as of December 31, 2011 and 2010 were as follows:

	2011				2010
	Domestic Plans		Foreign Plans		Domestic Plans		Foreign Plans
Health care cost trend rate assumed for next year		7.1%		4.4%		7.2%		4.5%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)		4.5%		2.9%		4.5%		2.9%
Year that the rate reaches the ultimate trend rate		2028		2031		2028		2031

For the health care cost trend rates, we considered historical trends for these costs, as well as recently enacted health care legislation. Based on recent studies in Canada, it was determined that a longer period to reach the ultimate trend rate is more realistic and that the ultimate rate should follow more closely to the long-term Canadian Consumer Price Index, which results in a slightly lower ultimate rate.

Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2011 OPEB obligation and costs for our domestic and foreign plans:

	1% Increase						1% Decrease
(Dollars in millions)	Domestic Plans			Foreign Plans			Domestic Plans			Foreign Plans
Benefit obligation	$	36	15%	$	8	5%	$	(30)	(13)%	$	(7)	(4)%
Service and interest costs	$	2	15%	$	–	5%	$	(2)	(14)%	$	–	(4)%

Fair value of plan assets

The fair value of plan assets held by our pension plans as of December 31, 2011 was as follows:

	Successor
(In millions)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. companies	$	760	$	760	$	–	$	–
Non-U.S. companies		911		651		260		–
Debt securities:
Corporate and government securities		3,031		99		2,932		–
Asset-backed securities		165		–		165		–
Bank loans/foreign annuities		44		–		–		44
Real estate		39		–		–		39
Cash and cash equivalents		271		271		–		–
Accrued interest and dividends		38		–		38		–
	$	5,259	$	1,781	$	3,395	$	83
The fair value of plan assets held by our pension plans as of December 31, 2010 was as follows:
	Successor
(In millions)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. companies	$	978	$	946	$	32	$	–
Non-U.S. companies		1,093		775		318		–
Debt securities:
Corporate and government securities		2,861		87		2,774		–
Asset-backed securities		114		–		114		–
Bank loans/foreign annuities		44		–		–		44
Real estate		42		–		–		42
Cash and cash equivalents		242		242		–		–
Accrued interest and dividends		48		–		48		–
	$	5,422	$	2,050	$	3,286	$	86

Equity securities primarily include large-cap and mid-cap publicly-traded companies primarily located in the United States, Canada and other developed countries, as well as commingled equity funds invested in the same types of securities. The fair value of the equity securities is determined based on quoted market prices (Level 1) or the net asset values per share that are derived from the accumulated fair values of the equity securities within the commingled funds (Level 2).

Debt securities primarily include corporate bonds of U.S. and Canadian companies from diversified industries, bonds and treasuries issued by the U.S. government and the Canadian federal and provincial governments, mortgage-backed securities and commingled fixed income funds invested in these same types of securities. The fair value of the debt securities is determined based on quoted market prices (Level 1), market-corroborated inputs such as matrix prices, yield curves and indices (Level 2), the net asset values per share that are derived from the accumulated fair values of the debt securities within the commingled funds (Level 2) or specialized pricing sources that utilize consensus-based contributed prices and spreads (Level 3).

Real estate investments are primarily located in Canada. The fair value of the real estate is determined based on an appraisal completed by a national real estate firm. Those appraisers use several valuation concepts, including the cost approach, market approach and income approach (Level 3).

The fair value of accrued interest and dividends is determined based on market-corroborated inputs such as declared dividends and stated interest rates (Level 2).

The changes in Level 3 pension plan assets for the years ended December 31, 2011 and 2010 were as follows:

(In millions)	Bank Loans/ Foreign Annuities		Real Estate		Total
Balance as of December 31, 2009 (Predecessor)	$	5	$	37	$	42
Unrealized gains relating to assets held as of December 31, 2010		–		5		5
Purchases		57		–		57
Sales		(18)		–		(18)
Balance as of December 31, 2010 (Successor)		44		42		86
Unrealized gains relating to assets held as of December 31, 2011		–		5		5
Realized losses		–		(1)		(1)
Purchases		41		–		41
Sales		(40)		(6)		(46)
Effect of foreign currency exchange rate changes		(1)		(1)		(2)
Balance as of December 31, 2011 (Successor)	$	44	$	39	$	83

Long-term strategy and objective

Our investment strategy and objective is to maximize the long-term rate of return on our plan assets within an acceptable level of risk in order to meet our current and future obligations to pay benefits to qualifying employees and their beneficiaries while minimizing and stabilizing pension benefit costs and contributions. One way we accomplish this objective is to diversify our plan investments. Diversification of assets is achieved through strategic allocations to various asset classes, as well as various investment styles within these asset classes, and by retaining multiple, experienced third-party investment management firms with complementary investment styles and philosophies to implement these allocations. Risk is further managed by reviewing our investment policies at least annually and monitoring our fund managers at least quarterly for compliance with mandates and performance measures. A series of permitted and prohibited investments are listed in our respective investment policies, which are provided to our fund managers. The use of derivative financial instruments for speculative purposes and investments in the equity or debt securities of AbitibiBowater are both prohibited.

We have established a target asset allocation and an allowable range from such target asset allocation for our plans based upon analysis of risk/return tradeoffs and correlations of asset mixes given long-term historical returns, prospective capital market returns, forecasted benefit payments and the forecasted timing of those payments. The targeted asset allocation of the plan assets is designed to hedge the change in the pension liabilities resulting from fluctuations in the discount rate by investing in debt and other securities, while also generating excess returns required to reduce the unfunded pension deficit by investing in equity securities with higher potential returns. The targeted asset allocation of the plan assets is 50% equity securities, with an allowable range of 35% to 60%, and 50% debt and other securities, with an allowable range of 40% to 65%, including up to 3% in short-term instruments required for near-term liquidity needs. Two-thirds of the equity securities are targeted to be invested in the U.S. and Canada, with the balance in other developed countries. Substantially all of the debt securities are targeted to be invested in the U.S. and Canada. The asset allocation for each plan is reviewed periodically and rebalanced toward the targeted asset mix when the fair value of the investments within an asset class falls outside the predetermined range.

Expected benefit payments and future contributions

The following benefit payments are expected to be paid from the plans’ net assets. The OPEB plans’ benefit payments have been reduced by expected Medicare subsidy receipts associated with the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

(In millions)	Pension Plans		OPEB Plans		Expected Subsidy Receipts
2012	$	512	$	27	$	2
2013		417		26		2
2014		436		26		2
2015		436		26		2
2016		439		26		3
2017 – 2021		2,182		137		15

We estimate our 2012 contributions to be approximately $105 million to our pension plans (excluding contributions to our defined contribution plans) and approximately $25 million to our OPEB plans.

Patient Protection and Affordable Care Act

In March 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was enacted, potentially impacting our cost to provide healthcare benefits to eligible active and retired employees. The PPACA has both short-term and long-term implications on benefit plan standards. Implementation of this legislation began in 2010 and is expected to continue in phases from 2011 through 2018.

We have analyzed this legislation to determine the impact of the required plan standard changes on our employee healthcare plans and the effect of the excise tax on high cost healthcare plans and the resulting costs and such impact, for those changes that are currently estimable, was not material to our results of operations. We have reflected the impact of the PPACA in our benefit obligations as of December 31, 2011 and 2010.

Canadian pension funding relief

AbiBow Canada Inc. (“AbiBow Canada”), through its principal predecessor entities, Abitibi-Consolidated Company of Canada and BCFPI, entered into agreements with the provinces of Quebec and Ontario in September and November of 2010, respectively (which became effective on the Emergence Date), relating in part to funding relief with respect to aggregate solvency deficits in our material Canadian registered pension plans. The agreements include a number of undertakings by AbiBow Canada, which will apply for five years from the Emergence Date. As of the third quarter of 2011, both the provinces of Quebec and Ontario had adopted specific regulations to implement this funding relief.

The funding relief regulations provide, among other things, that AbiBow Canada’s aggregate annual contribution in respect of the solvency deficits in its material Canadian registered pension plans for each year from 2011 through 2020 are limited to the following: (i) a Cdn$50 million basic contribution; (ii) beginning in 2013, if the plans’ aggregate solvency ratio falls below a specified target for a year, an additional contribution equal to 15% of free cash flow up to Cdn$15 million per year and (iii) beginning in 2016, if the amount payable for benefits in a year exceeds a specified threshold and the plans’ aggregate solvency ratio is more than 2% below the target for that year, a supplementary contribution equal to such excess (such supplementary contribution being capped at Cdn$25 million on the first occurrence only of such an excess). Should a plan move into a surplus during the 2011 – 2020 period, it will cease to be subject to this funding relief. After 2020, the funding rules in place at the time will apply to any remaining deficit.

The regulations also provide that corrective measures would be required if the aggregate solvency ratio in the registered pension plans falls below a prescribed level under the target provided by the regulations as of December 31 in any year through 2014. Such measures may include additional funding over five years to attain the target solvency ratio prescribed in the regulations. Thereafter, supplemental contributions, as described above, would be required if the aggregate solvency ratio in the registered pension plans falls below a prescribed level under the target provided by the regulations as of December 31 in any year on or after 2015 for the remainder of the period covered by the regulations. The aggregate solvency ratio in the Canadian registered pension plans covered by the Quebec and Ontario funding relief is determined annually as of December 31. The calculation is based on a number of factors and assumptions, including the accrued benefits to be provided by the plans, interest rate levels, membership data and demographic experience. In light of low yields on government securities in Canada, which are used to determine the applicable discount rate, when we file the actuarial report in respect of these plans later this year, we expect that the aggregate solvency ratio in these Canadian registered plans will have fallen below the minimum level prescribed by the regulations and that we will therefore be required to adopt corrective measures by March 2013. At this time, we cannot estimate the additional contributions, if any, that may be required in future years, but they could be material.

In addition, AbiBow Canada has undertaken in those agreements, among other things, to:

• not pay a dividend at any time when the weighted average solvency ratio of its pension plans in Quebec or Ontario is less than 80%;

• abide by the compensation plan detailed in the Plans of Reorganization with respect to salaries, bonuses and severance;

• direct at least 60% of the maintenance and value-creation investments earmarked for our Canadian pulp and paper operations to projects in Quebec and at least 30% to projects in Ontario;

• invest a minimum of Cdn$50 million over a two to three year construction period for a new condensing turbine at our Thunder Bay facility, subject to certain conditions;

• invest at least Cdn$75 million in strategic projects in Quebec over a five-year period;

• maintain our head office and the current related functions in Quebec;

• make an additional solvency deficit reduction contribution to its pension plans of Cdn$75, payable over four years, for each metric ton of capacity reduced in Quebec or Ontario, in the event of downtime of more than six consecutive months or nine cumulative months over a period of 18 months;

• create a diversification fund by contributing Cdn$2 million per year for five years for the benefit of the municipalities and workers in our Quebec operating regions;

• pay an aggregate of Cdn$5 million over five years to be used for such environmental remediation purposes instructed by the province of Ontario; and

• maintain and renew certain financial assurances with the province of Ontario in respect of certain properties in the province.

XML

Monetization of Timber Notes

12 Months Ended

Dec. 31, 2011

Monetization of Timber Notes [Abstract]

Monetization of Timber Notes

Note 17. Monetization of Timber Notes

In connection with certain timberland sales transactions in 2002 and prior years, we received a portion of the sale proceeds in notes receivable from institutional investors. In order to increase our liquidity, we monetized these notes receivable using QSPEs set up in accordance with FASB ASC 860. The more significant aspects of the QSPEs are as follows:

• The QSPEs are not consolidated within our financial statements. The business purpose of the QSPEs is to hold the notes receivable and issue fixed and floating rate senior notes, which are secured by the notes receivable, to third parties. The value of these debt securities is equal to approximately 90% of the value of the notes receivable. The full principal amounts of the notes receivable are backed by letters of credit issued by third-party financial institutions.

• Our retained interest consists principally of the net excess cash flows (the difference between the interest received on the notes receivable and the interest paid on the debt issued by the QSPE to third parties) and a cash reserve account. Fair value of our retained interests was estimated based on the present value of future excess cash flows to be received over the life of the notes, using management’s best estimate of key assumptions, including credit risk and discount rates. Our retained interest is recorded at a proportional amount of the previous carrying amount of the notes receivable and treated as interest-bearing investments.

• The cash reserve accounts were established at inception and are required to meet specified minimum levels throughout the life of the debt issued by the QSPEs to third-party investors. Any excess cash flows revert to us on a quarterly or semi-annual basis. The balance of the cash reserve accounts, if any, reverts to us at the maturity date of the third-party debt.

• With respect to Calhoun Note Holdings AT LLC and Calhoun Note Holdings TI LLC, we may be required to make capital contributions to these QSPEs from time to time in sufficient amounts so that these QSPEs will be able to comply with their covenants regarding the payment of taxes, maintenance as entities in good standing, transaction fees, contractual indemnification of the collateral agent and certain other parties, and the maintenance of specified minimum amounts in the cash reserve account. Notwithstanding these covenants, because of the expected net available cash flow to these QSPEs (interest and principal on notes receivable backed by letters of credit will be in excess of interest and principal on debt securities), we do not expect to be required to make additional capital contributions, nor have any capital contributions been required to date.

• No QSPEs are permitted to hold our common stock and there are no commitments or guarantees that provide for the potential issuance of our common stock. These entities do not engage in speculative activities of any description and are not used to hedge AbitibiBowater positions, and no AbitibiBowater employee is permitted to invest in any QSPE.

As discussed in Note 3, “Creditor Protection Proceedings – Reorganization items, net,” the commencement of the Creditor Protection Proceedings constituted an event of default under the note purchase agreements for three of our QSPEs, which resulted in a 200 basis point increase in the interest rate payable to the note holders. As a result, our retained interest was impaired. Accordingly, we recorded impairment charges totaling $21 million for the year ended December 31, 2009, which were included in “Reorganization items, net” in our Consolidated Statements of Operations, to reduce our retained interest in these three QSPEs to zero. We were not obligated to fund the shortfall in interest payments due to the note holders. In the fourth quarter of 2010, we transferred our interests in these three QSPEs to a third-party for the benefit of the note holders of the debt issued by these QSPEs.

The following summarizes our retained interest in the QSPEs included in “Other assets” in our Consolidated Balance Sheets as of December 31, 2011 and 2010:

	Successor
(In millions)	2011		2010
Calhoun Note Holdings AT LLC	$	8	$	8
Calhoun Note Holdings TI LLC		12		11
	$	20	$	19

XML

Pension and Other Postretirement Benefit Plans (Details 6)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Domestic Plans [Member]
The assumed health care cost trend rates used to determine the benefit obligations
Health care cost trend rate assumed for next year	7.10%	7.20%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	4.50%	4.50%
Year that the rate reaches the ultimate trend rate	2028	2028
Foreign Plans [Member]
The assumed health care cost trend rates used to determine the benefit obligations
Health care cost trend rate assumed for next year	4.40%	4.50%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	2.90%	2.90%
Year that the rate reaches the ultimate trend rate	2031	2031

XML

Asset Retirement Obligations (Tables)

12 Months Ended

Dec. 31, 2011

Asset Retirement Obligation Disclosure [Abstract]

Activity in liability for asset retirement obligations

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	17		$	55
Additions		3			5
Accretion expense		1			2
Reductions due to sale of mills		–			(20	)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings		–			(20	)
Payments		(1	)		(1	)
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(3	)
Other		–			(1	)
End of year (Successor)	$	20		$	17

XML

Organization and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2011

Organization and Basis of Presentation [Abstract]

Summary of exception in wholly-owned consolidated subsidiaries

Our consolidated financial statements include the accounts of AbitibiBowater Inc. and its controlled subsidiaries. All significant transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2011 with the exception of the following:

Consolidated Subsidiary	AbitibiBowater Ownership			Partner	Partner Ownership
Forest Products Mauricie L.P.		93.2	%	Cooperative Forestiere du Haut Saint-Maurice		6.8	%
Calhoun Newsprint Company (“CNC”)		51	%	Herald Company, Inc.		49	%
Bowater Mersey Paper Company Limited		51	%	The Daily Herald Company		49	%
Donohue Malbaie Inc.		51	%	NYT Capital Inc.		49	%

XML

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 19. Income Taxes

Income (loss) before income taxes by taxing jurisdiction for the years ended December 31, 2011, 2010 and 2009 was as follows:

	Successor			Predecessor
(In millions)	2011			2010			2009
United States	$	25		$	(1,039	)	$	(421	)
Foreign		30			2,208			(1,261	)
	$	55		$	1,169		$	(1,682	)
Income tax (provision) benefit for the years ended December 31, 2011, 2010 and 2009 was comprised of the following:
	Successor			Predecessor
(In millions)	2011			2010			2009
U.S. Federal and State:
Current	$	–		$	–		$	–
Deferred		(21	)		470			(1	)
		(21	)		470			(1	)
Foreign:
Current		(4	)		–			–
Deferred		9			1,136			123
		5			1,136			123
Total:
Current		(4	)		–			–
Deferred		(12	)		1,606			122
	$	(16	)	$	1,606		$	122

The income tax (provision) benefit attributable to income (loss) before income taxes differs from the amounts computed by applying the United States federal statutory income tax rate of 35% for the years ended December 31, 2011, 2010 and 2009 as a result of the following:

	Successor			Predecessor
(In millions)	2011			2010			2009
Income (loss) before income taxes	$	55		$	1,169		$	(1,682	)
Income tax (provision) benefit:
Expected income tax (provision) benefit		(19	)		(409	)		588
Changes resulting from:
Valuation allowance (1)		(15	)		1,166			(615	)
Plans of Reorganization		–			1,043			–
Subpart F income		–			(107	)		–
Worthless stock (2)		–			–			308
Tax reserve adjustments (3)		63			–			45
Foreign exchange		(9	)		9			(230	)
Reorganization-related adjustments  (4)		(38	)		–			–
State income taxes, net of federal income tax benefit		(1	)		2			12
Foreign tax rate differences		2			(72	)		30
Other, net		1			(26	)		(16	)
	$	(16	)	$	1,606		$	122

⁽¹⁾  See “Deferred income taxes” section below for a discussion of the valuation allowance.

⁽²⁾  Subsequent to the commencement of Abitibi’s CCAA Proceedings, in 2009, we concluded that our investment in the common stock of Abitibi no longer had any value and therefore, we recorded a $308 million tax benefit for a worthless stock deduction, which represented the estimated tax basis in our investment in Abitibi of approximately $800 million.

⁽³⁾  In 2011, we reversed certain reserves for unrecognized tax benefits pursuant to FASB ASC 740, primarily due to the completion of certain tax authority examinations during the year.

⁽⁴⁾ During 2011, we identified certain adjustments associated with our previously-reported 2010 deferred income tax balance sheet accounts. These adjustments were recorded in 2011 and resulted in a tax expense for the year of $38 million. We did not adjust any prior period amounts, as we do not believe that these adjustments are material to 2011 or any of our previously-issued financial statements.

Deferred income taxes

We are required to assess whether it is more likely than not that the deferred income tax assets will be realized, based on the nature, frequency and severity of recent losses, forecasted income, or where necessary, the implementation of prudent and feasible tax planning strategies. The carrying value of our deferred income tax assets (tax benefits expected to be realized in the future) assumes that we will be able to generate, based on certain estimates and assumptions, sufficient future taxable income in certain tax jurisdictions to utilize these deferred income tax benefits, or in the absence of sufficient future taxable income, that we would implement tax planning strategies to generate sufficient taxable income in cases where tax benefit carryforwards may expire unused. In making such judgments, significant weight is given to evidence that can be objectively verified.

Upon emergence from the Creditor Protection Proceedings, in 2010 and 2011, we evaluated the need for a valuation allowance against our net deferred income tax assets and determined that we expect to generate sufficient taxable income in the future to realize most of the deferred income tax assets and accordingly, determined that a valuation allowance was only needed against certain deferred income tax assets. In making this determination, we primarily focused on a post-reorganization outlook, which reflected a new capital structure, new contractual arrangements and a new asset structure with new values under the application of fresh start accounting as of December 31, 2010. The weight of positive evidence, which included our expected future performance, resulted in the conclusion by management that upon emergence from the Creditor Protection Proceedings, valuation allowances were not required for most of the deferred income tax assets. Therefore, the majority of the valuation allowances were reversed in 2010 as part of the implementation of the Plans of Reorganization and the application of fresh start accounting. Prior to emergence from the Creditor Protection Proceedings, in 2009 and 2010 until the Emergence Date, due to the existence of significant negative evidence such as a cumulative three-year loss and our financial condition, we had concluded that a valuation allowance was necessary on substantially all of our net deferred income tax assets. In 2011, our results and expected future performance continue to support the recoverability of the deferred income tax assets. As a result, we have significant net deferred income tax assets recorded on the Successor Company’s Consolidated Balance Sheet as of December 31, 2011 and 2010.

Deferred income taxes as of December 31, 2011 and 2010 were comprised of the following:

	00000000		00000000		00000000		00000000
		Successor
(In millions)		2011				2010
Fixed assets		$	(259	)		$	(167	)
Deferred gains			(40	)			(37	)
Other liabilities			(91	)			(35	)
Deferred income tax liabilities			(390	)			(239	)
Fixed assets			500				484
Pension and OPEB benefit plans			473				416
Ordinary loss carryforwards			716				598
Capital loss carryforwards			447				371
Research and development expense pool			265				264
Tax credit carryforwards			167				220
Other assets			169				71
Deferred income tax assets			2,737				2,424
Valuation allowance			(564	)			(474	)
Net deferred income tax assets		$	1,783			$	1,711
Amounts recognized in our Consolidated Balance Sheets consisted of:
Deferred income tax assets – current		$	109			$	47
Deferred income tax assets – noncurrent			1,749				1,736
Deferred income tax liabilities – noncurrent			(75	)			(72	)
Net deferred income tax assets		$	1,783			$	1,711

The balance of tax attributes and their dates of expiration as of December 31, 2011 were as follows:

	Successor
(In millions)	Related     Deferred     Income Tax     Asset			Year of Expiration
Ordinary loss carryforwards:
U.S. Federal ordinary loss carryforwards of $1,564		$        542			2020 – 2031
U.S. State ordinary loss carryforwards of $1,672		70	(1)		2014 – 2031
Canadian Federal and provincial (excluding Quebec) ordinary loss carryforwards of $274		53			2014 – 2030
Quebec ordinary loss carryforwards of $391		33			2014 – 2030
Other ordinary loss carryforwards		18	(2)		Various
		$        716
Capital loss carryforwards:
U.S. capital loss carryforwards of $1,275		$        446	(3)		2014
Other capital loss carryforwards		1			Various
		$        447
Research and development expense pool:
Canadian Federal and provincial (excluding Quebec) research and development expense pool of $903		$        163			Indefinite
Quebec research and development expense pool of $1,213		102			Indefinite
		$        265
Tax credit carryforwards:
Canadian research and development tax credit carryforwards		$        134			2018 – 2030
Other tax credit carryforwards		33	(4)		Various
		$        167

⁽¹⁾ A significant portion of our deferred income tax assets related to U.S. State ordinary loss carryforwards has a valuation allowance, as we expect they will expire unused.

⁽²⁾ The deferred income tax assets related to other ordinary loss carryforwards have a full valuation allowance, as they are not expected to be realized.

⁽³⁾ The deferred income tax assets related to U.S. capital loss carryforwards have a full valuation allowance, as they are not expected to be realized.

⁽⁴⁾ As certain Canadian tax credit carryforwards are expected to expire unused, a valuation allowance was recorded.

Our U.S federal net operating loss carryforwards are subject to the U.S. Internal Revenue Code of 1986, as amended (the “Code”) § 382 (“IRC § 382”) limitation due to an ownership change that occurred on the Emergence Date. We do not expect that this IRC § 382 limit will affect the utilization of our U.S federal net operating loss carryforwards prior to their expiration.

As of December 31, 2011 and 2010, we had unremitted earnings of our subsidiaries outside the U.S. totaling $75 million and $50 million, respectively, which have been deemed to be permanently invested. No deferred income tax liability has been recognized with regard to such earnings. It is not practicable to estimate the income tax liability that might be incurred if such earnings were remitted to the U.S. During 2010, we recognized $305 million of U.S. Sub-Part F taxable income from the 2009 sale of our investment in MPCo.

As a result of the acquisition of the noncontrolling interest in ANC, we established a deferred income tax liability of approximately $15 million. Since this acquisition was accounted for as an equity transaction, as discussed in Note 16, “Liquidity and Debt – Debt – Promissory note,” the recording of this deferred income tax liability resulted in a reduction of “Additional paid-in capital” in our Consolidated Balance Sheet as of December 31, 2011.

Income tax reserves

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2011 and 2010 was as follows:

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	191		$	206
(Decrease) increase in unrecognized tax benefits resulting from:
Positions taken in a prior period		(100	)		2
Positions taken in the current period		20			42
Change in Canadian foreign exchange rate		(2	)		(1	)
Expiration of statute of limitations		–			(58	)
End of year (Successor)	$	109		$	191

We recognize interest and penalties accrued related to unrecognized tax benefits as components of the income tax provision. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $101 million. During 2011, we adjusted certain reserves for unrecognized tax benefits, primarily due to the completion of certain tax authority examinations during the year. During 2010, we reversed approximately $58 million of liabilities for unrecognized tax benefits, mainly due to certain U.S. and Canadian statute of limitations either expiring or effectively expiring due to our emergence from the Creditor Protection Proceedings.

In the normal course of business, we are subject to audits from the federal, state, provincial and other tax authorities regarding various tax liabilities. The U.S. federal statute of limitations for tax years prior to 2009 effectively expired on December 9, 2010, the date we emerged from the Creditor Protection Proceedings. In Canada, tax returns for years 2008 onward remain subject to examination by tax authorities.

We do not expect a significant change to the amount of unrecognized tax benefits over the next twelve months. However, any audits may alter the timing or amount of taxable income or deductions, or the allocation of income among tax jurisdictions. The amount ultimately determined upon resolution of issues raised would be uncertain and may differ from the amount accrued. We believe that taxes accrued in our Consolidated Balance Sheets fairly represent the amount of income taxes to be settled or realized in the future.

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 20. Commitments and Contingencies

BCFC Bankruptcy and Insolvency Act filing

As part of a negotiated resolution to certain objections to the Plans of Reorganization, as reflected in the U.S. Court’s order confirming the Chapter 11 Reorganization Plan, BCFC was dismissed from the CCAA Proceedings and is expected to be dismissed from the Chapter 11 Cases. In addition, BCFC made an assignment for the benefit of its creditors under the Bankruptcy and Insolvency Act (Canada) (the “BIA”). BCFC appointed a trustee as its representative in the BIA filing, whose responsibilities are to prosecute its claims (including a disputed claim in the Creditor Protection Proceedings), distribute its property, if any, and others as provided by the BIA. As a result of the BIA filing, we lost control over and the ability to influence this entity. As a result, effective as of the date of the BIA filing, the financial position, results of operations and cash flows of BCFC are no longer consolidated in our consolidated financial statements. We are now accounting for BCFC using the cost method of accounting.

Legal items

We are involved in various legal proceedings relating to contracts, commercial disputes, taxes, environmental issues, employment and workers’ compensation claims, Aboriginal claims and other matters. We periodically review the status of these proceedings with both inside and outside counsel. Although the final outcome of any of these matters is subject to many variables and cannot be predicted with any degree of certainty, we establish reserves for a matter (including legal costs expected to be incurred) when we believe an adverse outcome is probable and the amount can be reasonably estimated. We believe that the ultimate disposition of these matters will not have a material adverse effect on our financial condition, but it could have a material adverse effect on our results of operations in any given quarter or year.

Subject to certain exceptions, all litigation against the Debtors that arose out of pre-petition conduct or acts was subject to the automatic stay provisions of Chapter 11 and the CCAA and the orders of the Courts rendered thereunder and subject to certain exceptions, any recovery by the plaintiffs in those matters was treated consistently with all other general unsecured claims in the Creditor Protection Proceedings, i.e., to the extent a disputed general unsecured claim becomes an accepted claim, the claimholder would be entitled to receive a ratable amount of Successor Company common stock from the reserve established on the Emergence Date for this purpose, as discussed in Note 3, “Creditor Protection Proceedings.” As a result, we believe that these matters will not have a material adverse effect on our results of operations or financial position.

On March 31, 2010, the Canadian Court dismissed a motion for declaratory judgment brought by the province of Newfoundland and Labrador, awarding costs in our favor, and thus confirmed our position that the five orders the province issued under section 99 of its Environmental Protection Act on November 12, 2009 were subject to the stay of proceedings pursuant to the Creditor Protection Proceedings. The province of Newfoundland and Labrador’s orders could have required us to proceed immediately with the environmental remediation of various sites we formerly owned or operated, some of which the province expropriated in December 2008. The Quebec Court of Appeal denied the province’s request for leave to appeal on May 18, 2010. An appeal of that decision is now pending before the Supreme Court of Canada, which heard the matter on November 16, 2011. If leave to appeal is ultimately granted and the appeal is allowed, we could be required to make additional environmental remediation payments without regard to the Creditor Protection Proceedings, which payments could have a material impact on our results of operations or financial condition.

Since late 2001, Bowater, several other paper companies, and numerous other companies have been named as defendants in asbestos personal injury actions. These actions generally allege occupational exposure to numerous products. We have denied the allegations and no specific product of ours has been identified by the plaintiffs in any of the actions as having caused or contributed to any individual plaintiff’s alleged asbestos-related injury. These suits have been filed by approximately 1,800 claimants who sought monetary damages in civil actions pending in state courts in Delaware, Georgia, Illinois, Mississippi, Missouri, New York and Texas. Approximately 1,000 of these claims have been dismissed, either voluntarily or by summary judgment, and approximately 645 claims remain. A motion to dismiss will be filed in each state for all matters related to products and premises where the plaintiffs did not file a claim in the Chapter 11 claims process. All Mississippi products and premises cases were dismissed, with other dismissals to follow. We expect that any resulting liability would be a general unsecured claim in the claims resolution process, which would be settled out of the share reserve and would not impact our results of operations and cash flows.

Lumber duties

On October 12, 2006, an agreement regarding Canada’s softwood lumber exports to the U.S. became effective (the “2006 Softwood Lumber Agreement”). The 2006 Softwood Lumber Agreement provides for, among other things, softwood lumber to be subject to one of two ongoing border restrictions, depending upon the province of first manufacture with several provinces, including Nova Scotia, being exempt from these border restrictions. Volume quotas have been established for each company within the provinces of Ontario and Quebec based on historical production, and the volume quotas are not transferable between provinces. U.S. composite prices would have to rise above $355 composite per thousand board feet before the quota volume restrictions would be lifted, which had not occurred since the implementation of the 2006 Softwood Lumber Agreement. On January 23, 2012, Canada and the U.S. announced a two-year extension to the 2006 Softwood Lumber Agreement, through October 2015.

In February 2009, the LCIA tribunal (formerly the London Court of International Arbitration) issued its decision on a remedy in the softwood lumber arbitration in which Canada was found to have breached the 2006 Softwood Lumber Agreement between the United States and Canada by failing to properly calculate quotas during six months of 2007. The tribunal determined that, as an appropriate adjustment to compensate for the breach, Canada must collect an additional 10 percent ad valorem export charge on softwood lumber shipments from Eastern Canadian provinces, including Quebec and Ontario, until Cdn$68.26 million has been collected or the breach is cured some other way. If Canada fails to cure the breach, the United States is authorized to impose duties up to the amount specified by the tribunal. In April 2009, the United States announced that it would impose 10 percent ad valorem customs duties on imports of softwood lumber products in response to Canada’s failure to cure the breach. Such duties have not had a significant impact on our results of operations or financial position to date. The imposition of such duties ended in May 2011.

Environmental matters

We are subject to a variety of federal, state, provincial and local environmental laws and regulations in the jurisdictions in which we operate. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated in the future could require substantial additional expenditures for compliance and could have a material impact on us, in particular, and the industry in general.

We may be a “potentially responsible party” with respect to four hazardous waste sites that are being addressed pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“Superfund”) or the Resource Conservation and Recovery Act (“RCRA”) corrective action authority. The first two sites are on CNC timberland tracts in South Carolina. One was already contaminated when acquired, and subsequently, the prior owner remediated the site and continues to monitor the groundwater. On the second site, several hundred steel drums containing textile chemical residue were discarded by unknown persons. The third site, at our mill in Coosa Pines, contained buried drums and has been remediated pursuant to RCRA and the RCRA permit has been closed. We continue to monitor the groundwater. The fourth site is called Alternate Energy Resources and involves ANC. ANC shipped to this site less than 100,000 gallons of waste to be disposed of and ANC’s share of the remediation costs is less than 0.5%. We believe we will not be liable for any significant amounts at any of these sites.

As of December 31, 2011, we have recorded $6 million for environmental liabilities, which represents management’s estimate based on an assessment of relevant factors and assumptions of the ultimate settlement amounts for environmental liabilities. The amount of these liabilities could be affected by changes in facts or assumptions not currently known to management. These liabilities are included in “Accounts payable and accrued liabilities” or “Other long-term liabilities” in our Consolidated Balance Sheets.

The activity in our environmental liabilities for the years ended December 31, 2011 and 2010 was as follows:

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	8		$	27
Additions		–			37
Payments		(1	)		(2	)
Reduction due to sale of mill		(1	)		–
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(38	)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings		–			(15	)
Transfer from liabilities associated with assets held for sale		–			2
Other		–			(3	)
End of year (Successor)	$	6		$	8

Other representations, warranties and indemnifications

We make representations and warranties and offer indemnities to counterparties in connection with commercial transactions like asset sales and other commercial agreements. Indemnification obligations generally are standard contractual terms, are entered into in the normal course of business and are related to contingencies that are not expected to occur at the time of the agreement. We are not able to develop an estimate of the maximum payout under these indemnification obligations, but we believe that it is unlikely that we will be required to make material payments under those arrangements and, except as otherwise noted, no material liabilities related thereto have been recognized in our consolidated financial statements.

In connection with the sale of our investment in MPCo in December 2009, we provided certain undertakings and indemnities to Alcoa, including an indemnity for potential tax liabilities arising from the transaction. As discussed in Note 16, “Liquidity and Debt – Debt – Financings during Creditor Protection Proceedings – ULC DIP Facility,” the ULC maintained a reserve of approximately Cdn$83 million ($81 million, based on the exchange rate in effect on December 31, 2011) and Cdn$80 million ($80 million, based on the exchange rate in effect on December 31, 2010) as of December 31, 2011 and 2010, respectively, to secure those obligations. This reserve was included as restricted cash in “Other assets” in our Consolidated Balance Sheets as of December 31, 2011 and 2010. As discussed in Note 5, “Closure Costs, Impairment and Other Related Charges,” in 2010, we recorded an $8 million tax indemnification liability, which will be paid from this reserve. We believe it is unlikely that we will be required to make additional material payments pursuant to our undertakings and indemnities and therefore have recorded no additional liability as of December 31, 2011.

XML

Consolidated Statements of Comprehensive (Loss) Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Net income (loss) including noncontrolling interests	$ 39	$ 2,775	$ (1,560)
Other comprehensive (loss) income:
Change in unamortized prior service costs and credits, net of tax of $0 in all years	(2)	8	(15)
Change in unamortized actuarial gains and losses, net of tax of $127, $0 and $0 in 2011, 2010 and 2009	(317)	(598)	(176)
Foreign currency translation	10	15	125
Other comprehensive loss, net of tax	(309)	(575)	(66)
Comprehensive (loss) income including noncontrolling interests	(270)	2,200	(1,626)
Less: Comprehensive loss (income) attributable to noncontrolling interests
Net loss (income) attributable to noncontrolling interests	2	(161)	7
Change in unamortized actuarial gains and losses, net of tax of $0 in 2011	8
Foreign currency translation	(2)	5
Comprehensive loss (income) attributable to noncontrolling interests	8	(156)	7
Comprehensive (loss) income attributable to AbitibiBowater Inc.	$ (262)	$ 2,044	$ (1,619)

XML

Share Capital

12 Months Ended

Dec. 31, 2011

Accumulated Other Comprehensive Loss / Share Capital [Abstract]

Share Capital

Note 21. Share Capital

Successor Company

Overview

AbitibiBowater Inc. is authorized under its certificate of incorporation, which was amended and restated on the Emergence Date, to issue up to 200 million shares of capital stock, consisting of: (i) 190 million shares of common stock, par value $0.001 per share and (ii) 10 million shares of preferred stock, par value $0.001 per share.

Preferred stock

As of December 31, 2011 and 2010, no preferred shares were issued and outstanding.

Common stock

On the Emergence Date and pursuant to the Plans of Reorganization, we issued an aggregate of 97,134,954 shares of common stock and reserved 9,020,960 shares of common stock for future issuance under the AbitibiBowater Inc. 2010 Equity Incentive Plan (the “2010 LTIP”). On December 17, 2010, 73,752,881 shares of common stock were distributed to the holders of unsecured claims as of the applicable distribution record date under the Plans of Reorganization on account of allowed unsecured creditor claims. During the year ended December 31, 2011, an additional 3,662,508 shares of common stock were distributed to the holders of unsecured claims from this reserve. As of December 31, 2011 and 2010, we held the remaining 19,719,565 and 23,382,073 shares of common stock, respectively, in reserve for the benefit of holders of disputed claims. We will continue to make supplemental interim distributions of shares from this reserve to unsecured creditors as disputed claims are resolved. See Note 3, “Creditor Protection Proceedings – Emergence from Creditor Protection Proceedings,” for additional information.

Consistent with the confirmation order in respect of our U.S. Debtors’ Chapter 11 Reorganization Plan and applicable law, we relied on section 1145(a)(1) of Chapter 11 to exempt the issuance of these shares of common stock and their distribution to unsecured creditors from the registration requirements of the Securities Act.

Treasury stock

On December 31, 2010, AbitibiBowater Inc. issued 17,010,728 shares of unregistered common stock to Donohue Corp. (“Donohue,” a wholly-owned subsidiary of AbitibiBowater Inc.) as part of an internal tax restructuring contemplated by the Plans of Reorganization. The shares were issued to Donohue in exchange for all of the outstanding shares of common stock of two of Donohue’s wholly-owned subsidiaries, each of which also was an indirect wholly-owned subsidiary of ours. We accounted for these shares as treasury stock in our Consolidated Balance Sheets and since these shares were acquired by Donohue from AbitibiBowater Inc. through an intercompany transaction which was eliminated in our consolidated financial statements, there was no cost to the consolidated entity for such treasury stock. The issuance of the shares to Donohue was made without registration under the Securities Act in reliance on the exemption from registration provided under section 4(2) thereof.

In 2011, AbitibiBowater Inc. distributed 49,172 shares of common stock to ANC from the share reserve discussed above as settlement of an unsecured intercompany claim ANC had filed against us in the Creditor Protection Proceedings. We accounted for these shares as treasury stock in our Consolidated Balance Sheets and since these shares were distributed to a wholly-owned subsidiary of ours through an intercompany transaction which was eliminated in our consolidated financial statements, there was no cost to the consolidated entity for such treasury stock.

Predecessor Company

As of the Emergence Date and pursuant to the Plans of Reorganization, each share of the Predecessor Company’s common stock and preferred stock and each exchangeable share, option, warrant, conversion privilege or other legal or contractual right to purchase shares of the Predecessor Company’s common stock, including RSUs and DSUs, in each case to the extent outstanding immediately before the Emergence Date, was canceled and the holders thereof are not entitled to receive or retain any property on account thereof.

Dividends

We did not declare or pay any dividends on our common stock during the years ended December 31, 2011, 2010 and 2009.

XML

Net Income (Loss) Per Share (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net Income Loss Per Share (Textual) [Abstract]
Number of Shares issued for unsecured creditors		97,134,954
Adjustments to Net income attributable to AbitibiBowater for calculation of per share amounts	$ 0	$ 0	$ 0
Adjustment to Common Shares for assumed conversion of pre-petition convertible notes		36,900,000
Predecessor [Member]
Net Income Loss Per Share (Textual) [Abstract]
Adjustment to Common Shares for assumed conversion of pre-petition convertible notes		36,900,000
Stock Options [Member] | Successor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of award shares outstanding	900,000
Dilutive effect on net income per share	0
Stock Options [Member] | Predecessor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options excluded from calculation		2,400,000	2,900,000
Restricted Stock Units and Deferred Stock Units [Member] | Successor [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of award shares outstanding	400,000
Dilutive effect on net income per share	$ 0

XML

Commitments and Contingencies (Details Textual) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Feb. 28, 2009 CAD	Dec. 31, 2011 USD ($) Claims Wastesites gal	Dec. 31, 2011 CAD	Dec. 31, 2010 USD ($)	Dec. 31, 2010 CAD	Oct. 12, 2006 USD ($)
Commitments And Contingencies (Textual) [Abstract]
Minimum U.S. softwood composite price per TBF to lift quota restriction						$ 355
Extension to 2006 Software Lumber Agreement		2 years
Percentage of addition on import duties of softwood lumber products imposed by U.S		10.00%
Percentage of addition on export charge of softwood lumber products imposed by Canada	10.00%
Maximum export charges to be collected By Canada to compensate breach	68.26
Number of hazardous waste sites		4
Maximum gallons of waste to be disposed of at Hazardous Waste site		100,000
ANC's share of the remediation costs		0.50%
Environmental liabilities		6
Restricted cash reserve for indemnity for potential tax liabilities		81	83	80	80
Tax indemnification liability related to the sale of our investment in MPCo		$ 8
Number of suits filed for asbestos personal injury		1,800
Claims settled and dismissed for asbestos personal injury		1,000
Pending claims for asbestos personal injury		645

XML

Financing Arrangements (Parent Company [Member])

12 Months Ended

Dec. 31, 2011

Parent Company [Member]

Financing Arrangements

Note D. Financing Arrangements

10.25% senior secured notes due 2018

On December 9, 2010, we and each of our material, wholly-owned U.S. subsidiaries entered into a supplemental indenture with Wells Fargo Bank, National Association, as trustee and collateral agent, pursuant to which we assumed the obligations of ABI Escrow Corporation with respect to $850 million in aggregate principal amount of the 2018 Notes, originally issued on October 4, 2010 pursuant to an indenture as of that date. ABI Escrow Corporation was a wholly-owned subsidiary of ours created solely for the purpose of issuing the 2018 Notes. For a discussion of the 2018 Notes, see Note 16, “Liquidity and Debt – Debt – 10.25% senior secured notes due 2018,” to the Consolidated Financial Statements.

On June 13, 2011, the first $100 million of net proceeds from the sale of ACH was used to redeem $94 million of principal amount of the 2018 Notes at a redemption price of 105% of the principal amount, plus accrued and unpaid interest. Additionally, on both June 29, 2011 and November 4, 2011, $85 million of principal amount of the 2018 Notes was redeemed at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. As a result of these redemptions, during the year ended December 31, 2011, we recorded net gains on extinguishment of debt of $6 million, which were included in “Other income (expense), net” in our Condensed Statements of Operations and Retained Earnings (Deficit). These redemptions and all interest on the notes were paid by AbiBow US Inc. on our behalf (see Note E, “Transactions with Related Parties”).

As a result of our application of fresh start accounting, as of December 31, 2010, the 2018 Notes were recorded at their fair value of $905 million, which resulted in a premium of $55 million, which is being amortized to interest expense using the effective interest method over the term of the notes. As of December 31, 2011, the carrying value of the 2018 Notes was $621 million, which included the unamortized premium of $35 million.

In connection with the issuance of the notes, during 2010, we incurred fees of $27 million, which were written off to “Reorganization items, net” in our Condensed Statements of Operations and Retained Earnings (Deficit) as a result of the application of fresh start accounting. These fees were paid by Bowater on our behalf (see Note E, “Transactions with Related Parties”).

Promissory note

As of December 31, 2010, ANC was owned 52.5% by a subsidiary of ours. On January 14, 2011, we acquired the noncontrolling interest in ANC and ANC became a wholly-owned subsidiary of ours. As part of the consideration for the transaction, ANC paid cash of $15 million and issued a secured promissory note (the “note”) in the principal amount of $90 million. The acquisition of the noncontrolling interest in ANC was accounted for as an equity transaction (see Note 19, “Income Taxes,” to the Consolidated Financial Statements for additional information). On June 30, 2011, the note, including accrued interest, was repaid with cash in full by AbiBow US Inc. on our behalf (see Note E, “Transactions with Related Parties”).

Financial covenants

The 2018 Notes and the ABL Credit Facility impose restrictions on the ability of certain subsidiaries to transfer funds or other assets to AbitibiBowater in the form of dividends or advances. These restrictions could affect AbitibiBowater’s operations or its ability to pay dividends in the future.

XML

Fixed Assets, Net (Tables)

12 Months Ended

Dec. 31, 2011

Fixed Assets, Net [Abstract]

Fixed assets, net

	Successor
(Dollars in millions)	Range of Estimated Useful Lives in Years	2011			2010
Land and land improvements	2 – 10	$	85		$	72
Buildings	10 – 40		264			280
Machinery and equipment	3 – 20		1,910			1,853
Hydroelectric power plants (1)	40		283			283
Timber and timberlands	10 – 20		105			100
Construction in progress			81			53
			2,728			2,641
Less accumulated depreciation			(226	)		–
		$	2,502		$	2,641

⁽¹⁾  The province of Quebec informed us on December 30, 2011 that it intended to terminate our water rights associated with our Jim-Gray hydroelectric facility and to require us to transfer property of the associated installation to the province for no consideration. The termination and transfer would be effective as of March 2, 2012. The province’s actions are not consistent with our understanding of the agreement in question. We continue to evaluate our legal options. The net book value of this hydroelectric facility was tested for impairment with the other assets in its asset group and no impairment was indicated. At this time, we believe that the remaining useful life of the assets remains unchanged, as we continue pursuing the renewal of our water rights at the facility. The carrying value of the hydroelectric assets associated with the Jim-Gray installation as of December 31, 2011 was approximately $89 million. If we are unable to renew the water rights at this facility, we will reevaluate the remaining useful life of these assets, which may result in accelerated depreciation charges in the first quarter of 2012.

XML

Amortizable Intangible Assets, Net (Details Textual) (USD $) In Millions, unless otherwise specified		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Successor [Member] Y	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Amortizable Intangible Assets, Net (Textual) [Abstract]
Minimum periods of Agreements		10
Maximum periods of agreement		50
Expected useful life of water rights		40
Amortization expense		$ 1	$ 19	$ 25
Jim-Gray installation carrying value	$ 6
Estimated amortization expense related to amortizable intangible assets		less than $1 million per year for each of the next five years

XML

Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended			3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Successor	Sep. 30, 2011 Successor	Jun. 30, 2011 Successor	Mar. 31, 2011 Successor	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Sep. 30, 2010 Predecessor	Jun. 30, 2010 Predecessor	Mar. 31, 2010 Predecessor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Sales				$ 1,147	$ 1,224	$ 1,200	$ 1,185	$ 4,756	$ 1,272	$ 1,192	$ 1,182	$ 1,100	$ 4,746	$ 4,366
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested								3,590					3,724	3,343
Depreciation, amortization and cost of timber harvested								220					493	602
Distribution costs								547					553	487
Selling, general and administrative expenses								158					155	198
Closure costs, impairment and other related charges				12	17	4	13	46	6	(3)	3	5	11	202
Net gain on disposition of assets and other				0	(1)	3	1	(3)	16	1	4	9	(30)	(91)
Operating income (loss)				47	72	52	27	198	11	12	(73)	(110)	(160)	(375)
Interest expense (contractual interest of $714 and $788 for the years ended December 31, 2010 and 2009, respectively) (Note 16)	(95)	(483)	(597)					(95)					(483)	(597)
Other expense, net								(48)					(89)	(71)
Income (loss) before reorganization items and income taxes								55					(732)	(1,043)
Reorganization items, net (Note 3)													1,901	(639)
Income (loss) before income taxes								55					1,169	(1,682)
Income tax (provision) benefit								(16)					1,606	122
Net income (loss) including noncontrolling interests								39					2,775	(1,560)
Net loss (income) attributable to noncontrolling interests								2					(161)	7
Net income (loss) attributable to AbitibiBowater Inc.				$ (6)	$ (44)	$ 61	$ 30	$ 41	$ 4,240	$ (829)	$ (297)	$ (500)	$ 2,614	$ (1,553)
Net income (loss) per share attributable to AbitibiBowater Inc. common shareholders:
Basic				$ (0.06)	$ (0.46)	$ 0.63	$ 0.31	$ 0.42	$ 73.48	$ (14.35)	$ (5.15)	$ (8.68)	$ 45.30	$ (26.91)
Diluted				$ (0.06)	$ (0.46)	$ 0.63	$ 0.31	$ 0.42	$ 44.82	$ (14.35)	$ (5.15)	$ (8.68)	$ 27.63	$ (26.91)
Weighted-average number of AbitibiBowater Inc. common shares outstanding:
Basic								97.1					57.7	57.7
Diluted								97.1					94.6	57.7

XML

Creditor Protection Proceedings (Tables)

12 Months Ended

Dec. 31, 2011

Summary of reorganization items, net

	Predecessor
(In millions)	2010			2009
Professional fees (1)	$	154		$	106
Gain due to Plans of Reorganization adjustments (2)		(3,553	)		–
Loss due to fresh start accounting adjustments (3)		362			–
Provision for repudiated or rejected executory contracts (4)		121			225
Charges related to indefinite idlings and permanent closures (5)		307			242
Gains on disposition of assets (6) (11)		(70	)		–
Write-off of debt discounts, premiums and issuance costs (7)		666			–
Revaluation of debt due to currency exchange (8)		546			–
Reversal of post-petition accrued interest on certain debt obligations (9)		(447	)		–
Gain on deconsolidation of BPCL (10)		(26	)		–
Gain on deconsolidation of a variable interest entity (“VIE”) (11)		(16	)		–
Debtor in possession financing costs (12)		10			31
Other (13)		45			35
	$	(1,901	)	$	639

⁽¹⁾  Professional fees directly related to the Creditor Protection Proceedings and the establishment of the Plans of Reorganization, including legal, accounting and other professional fees, as well as professional fees incurred by our creditors. Additionally, pursuant to the Plans of Reorganization, as part of our exit financing, we had initially planned to conduct a rights offering for the issuance of convertible senior subordinated notes to holders of eligible unsecured claims. We entered into a backstop commitment agreement that provided for the purchase by certain investors of the convertible notes to the extent that the rights offering would have been under-subscribed. On September 21, 2010, we announced that we had elected not to pursue the rights offering. In 2010, we recorded the backstop commitment agreement termination fee of $15 million, which was paid on the Emergence Date. One of the parties to the backstop commitment agreement was Fairfax Financial Holdings Limited (“Fairfax”).

⁽²⁾  Represented the effects of the implementation of the Plans of Reorganization, including, among other things: (i) the gain on extinguishment of the Predecessor Company’s liabilities subject to compromise, (ii) the gain on the settlement of the North American Free Trade Agreement (“NAFTA”) claim (the receipt of which was contingent upon our emergence from the Creditor Protection Proceedings) related to the December 2008 expropriation of certain of our assets and rights in the province of Newfoundland and Labrador by the provincial government and (iii) professional fees that were contractually due to certain professionals as “success” fees upon our emergence from the Creditor Protection Proceedings.

⁽³⁾  Represented, among other things, adjustments to the carrying values of our assets and liabilities to reflect their fair values and the elimination of the Predecessor Company’s additional paid-in capital, deficit and accumulated other comprehensive loss as a result of the application of fresh start accounting.

⁽⁴⁾  Represented provision for estimated claims arising from repudiated or rejected executory contracts, as well as supply contracts and equipment leases.

⁽⁵⁾  In 2010, represented charges primarily related to: (i) the indefinite idling of our Saint-Fulgence, Quebec and Petit Saguenay, Quebec sawmills; (ii) the indefinite idling of our Gatineau, Quebec paper mill (for which we announced its permanent closure later in the year); (iii) the indefinite idling of a de-inking line and paper machine at our Thorold, Ontario paper mill; (iv) the permanent closure of a paper machine at our Coosa Pines, Alabama paper mill and a paper machine at our Thorold paper mill and (iv) an impairment charge related to our Lufkin, Texas paper mill to reduce the carrying value of the assets to their estimated fair value prior to the sale of these assets. In 2009, represented charges related to the indefinite idling of various paper mills and paper machines located in Canada, as well as the permanent closure of a sawmill in the United States and a chipping operation in Quebec, Canada. The fair value of all impaired assets was determined based on their estimated sale or salvage values. Such charges for the years ended December 31, 2010 and 2009 were comprised of the following:

	Predecessor
(In millions)	2010		2009
Accelerated depreciation	$	251	$	51
Long-lived asset impairment		10		130
Severance and pension curtailment		29		32
Write-downs of inventory		17		17
Other		–		12
	$	307	$	242

⁽⁶⁾  Represented gains on the disposition of various mills and other assets as part of our work toward a comprehensive restructuring plan, including the write-off of related asset retirement obligations. Such gains for the year ended December 31, 2010 included our Mackenzie, British Columbia paper mill and sawmills, four previously permanently closed paper mills that were bundled and sold together, our Westover, Alabama sawmill, our recycling division’s material recycling facilities located in Arlington, Houston and San Antonio, Texas, our Albertville, Alabama sawmill, our Covington, Tennessee paper mill and various other assets, all of which we sold for proceeds of $80 million.

⁽⁷⁾  FASB ASC 852 requires that debt discounts and premiums, as well as debt issuance costs, be viewed as part of the valuation of the related pre-petition debt in arriving at the net carrying amount of the debt. When the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Courts’ approval of the respective Plan of Reorganization (which included the approval of allowed debt claims), we adjusted the net carrying amount of the Debtors’ debt obligations to the allowed amount of the claims, which resulted in a write-off of the unamortized balance of debt discounts, premiums and issuance costs.

⁽⁸⁾  For purposes of determining the amounts of allowed unsecured claims, claims filed against a CCAA filer or Chapter 11 filer denominated in a currency other than the local currency are to be translated to Canadian dollars and U.S. dollars, respectively, using the exchange rate in effect as of the date of the commencement of the Creditor Protection Proceedings for all Chapter 11 claims and for CCAA claims that existed as of the filing date, or the exchange rate in effect as of the date of the notice or event that gave rise to the claim for CCAA claims that arose after the filing date (the “fixed exchange rate”). The majority of our CCAA filers’ pre-petition unsecured debt obligations were denominated in U.S. dollars. As noted above, when the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Canadian Court’s sanction of the CCAA Reorganization Plan (which included the approval of allowed debt claims), we adjusted the CCAA filers’ pre-petition unsecured debt obligations to the allowed amount of the claims, which resulted in a revaluation to reflect the impact of the fixed exchange rate.

⁽⁹⁾  In 2010 and 2009, we had recorded post-petition accrued interest on the CCAA filers’ pre-petition unsecured debt obligations based on the expectation that such accrued interest would be a permitted claim under the CCAA Proceedings. However, pursuant to the CCAA Reorganization Plan sanctioned by the Canadian Court, the CCAA filers’ pre-petition unsecured debt obligations did not include the amount of such post-petition accrued interest for distribution purposes and therefore, such accrued interest was then accounted for as not having been approved as a permitted claim. Accordingly, in the third quarter of 2010, we reversed such post-petition accrued interest as a Reorganization item and ceased accruing interest on the CCAA filers’ pre-petition unsecured debt obligations.

⁽¹⁰⁾  As discussed in Note 1, “Organization and Basis of Presentation – Bridgewater Administration,” we are no longer consolidating BPCL in our consolidated financial statements. Upon the deconsolidation of BPCL, we derecognized our negative investment in BPCL, which resulted in a gain.

⁽¹¹⁾  During the second quarter of 2010, a subsidiary that was a VIE that we had been consolidating was placed into receivership. As a result, we lost control over and the ability to influence this VIE’s operations and were no longer the primary beneficiary of this VIE. Therefore, we are no longer consolidating this VIE in our consolidated financial statements. Upon the deconsolidation of this VIE, we derecognized our negative investment in this VIE, which resulted in a gain. Additionally, in the fourth quarter of 2010, we transferred assets and liabilities associated with certain Canadian properties to this VIE. Upon the transfer of these properties to this VIE and the assumption of the associated liabilities by this VIE, we lost control of the assets transferred and were no longer primarily responsible for the liabilities transferred and therefore deconsolidated these properties, which resulted in a gain on disposition of assets.

⁽¹²⁾  Debtor in possession financing costs were recorded in 2010 in connection with an amendment, two extensions and an exit fee related to one of our debtor in possession financing arrangements, as well as an amendment to our former accounts receivable securitization program. Debtor in possession financing costs were incurred in 2009 in connection with entering into our debtor in possession financing arrangements and our former amended and restated accounts receivable securitization program. For additional information, see Note 16, “Liquidity and Debt.”

⁽¹³⁾  In 2010, “Other” primarily included: (i) the write-off of environmental liabilities related to our Newfoundland and Labrador properties that were expropriated and for which no claim was filed against us in the Creditor Protection Proceedings; (ii) charges related to our estimated liability for an environmental claim filed against us by the current owner of a site previously owned by one of our subsidiaries; (iii) employee termination charges resulting from our work toward a comprehensive restructuring plan related to a workforce reduction at our Catawba, South Carolina paper mill and the departure of our former Chief Executive Officer and (iv) additional claim amounts recorded as a result of the claims reconciliation process. In 2009, “Other” primarily included: (i) charges for reserves for certain pre-petition receivables and (ii) impairment charges to reduce our retained interest in three QSPEs to zero (for further information, reference is made to Note 17, “Monetization of Timber Notes”). “Other” for both periods also included interest income.

Charges Related to Indefinite Idlings and Permanent Closures

	Predecessor
(In millions)	2010		2009
Accelerated depreciation	$	251	$	51
Long-lived asset impairment		10		130
Severance and pension curtailment		29		32
Write-downs of inventory		17		17
Other		–		12
	$	307	$	242

Summary of reorganization items, net

	Predecessor
(In millions)	2010			2009
Professional fees (1)	$	154		$	106
Gain due to Plans of Reorganization adjustments (2)		(3,553	)		–
Loss due to fresh start accounting adjustments (3)		362			–
Provision for repudiated or rejected executory contracts (4)		121			225
Charges related to indefinite idlings and permanent closures (5)		307			242
Gains on disposition of assets (6) (11)		(70	)		–
Write-off of debt discounts, premiums and issuance costs (7)		666			–
Revaluation of debt due to currency exchange (8)		546			–
Reversal of post-petition accrued interest on certain debt obligations (9)		(447	)		–
Gain on deconsolidation of BPCL (10)		(26	)		–
Gain on deconsolidation of a variable interest entity (“VIE”) (11)		(16	)		–
Debtor in possession financing costs (12)		10			31
Other (13)		45			35
	$	(1,901	)	$	639

⁽¹⁾  Professional fees directly related to the Creditor Protection Proceedings and the establishment of the Plans of Reorganization, including legal, accounting and other professional fees, as well as professional fees incurred by our creditors. Additionally, pursuant to the Plans of Reorganization, as part of our exit financing, we had initially planned to conduct a rights offering for the issuance of convertible senior subordinated notes to holders of eligible unsecured claims. We entered into a backstop commitment agreement that provided for the purchase by certain investors of the convertible notes to the extent that the rights offering would have been under-subscribed. On September 21, 2010, we announced that we had elected not to pursue the rights offering. In 2010, we recorded the backstop commitment agreement termination fee of $15 million, which was paid on the Emergence Date. One of the parties to the backstop commitment agreement was Fairfax Financial Holdings Limited (“Fairfax”).

⁽²⁾  Represented the effects of the implementation of the Plans of Reorganization, including, among other things: (i) the gain on extinguishment of the Predecessor Company’s liabilities subject to compromise, (ii) the gain on the settlement of the North American Free Trade Agreement (“NAFTA”) claim (the receipt of which was contingent upon our emergence from the Creditor Protection Proceedings) related to the December 2008 expropriation of certain of our assets and rights in the province of Newfoundland and Labrador by the provincial government and (iii) professional fees that were contractually due to certain professionals as “success” fees upon our emergence from the Creditor Protection Proceedings.

⁽³⁾  Represented, among other things, adjustments to the carrying values of our assets and liabilities to reflect their fair values and the elimination of the Predecessor Company’s additional paid-in capital, deficit and accumulated other comprehensive loss as a result of the application of fresh start accounting.

⁽⁴⁾  Represented provision for estimated claims arising from repudiated or rejected executory contracts, as well as supply contracts and equipment leases.

⁽⁵⁾  In 2010, represented charges primarily related to: (i) the indefinite idling of our Saint-Fulgence, Quebec and Petit Saguenay, Quebec sawmills; (ii) the indefinite idling of our Gatineau, Quebec paper mill (for which we announced its permanent closure later in the year); (iii) the indefinite idling of a de-inking line and paper machine at our Thorold, Ontario paper mill; (iv) the permanent closure of a paper machine at our Coosa Pines, Alabama paper mill and a paper machine at our Thorold paper mill and (iv) an impairment charge related to our Lufkin, Texas paper mill to reduce the carrying value of the assets to their estimated fair value prior to the sale of these assets. In 2009, represented charges related to the indefinite idling of various paper mills and paper machines located in Canada, as well as the permanent closure of a sawmill in the United States and a chipping operation in Quebec, Canada. The fair value of all impaired assets was determined based on their estimated sale or salvage values. Such charges for the years ended December 31, 2010 and 2009 were comprised of the following:

	Predecessor
(In millions)	2010		2009
Accelerated depreciation	$	251	$	51
Long-lived asset impairment		10		130
Severance and pension curtailment		29		32
Write-downs of inventory		17		17
Other		–		12
	$	307	$	242

⁽⁶⁾  Represented gains on the disposition of various mills and other assets as part of our work toward a comprehensive restructuring plan, including the write-off of related asset retirement obligations. Such gains for the year ended December 31, 2010 included our Mackenzie, British Columbia paper mill and sawmills, four previously permanently closed paper mills that were bundled and sold together, our Westover, Alabama sawmill, our recycling division’s material recycling facilities located in Arlington, Houston and San Antonio, Texas, our Albertville, Alabama sawmill, our Covington, Tennessee paper mill and various other assets, all of which we sold for proceeds of $80 million.

⁽⁷⁾  FASB ASC 852 requires that debt discounts and premiums, as well as debt issuance costs, be viewed as part of the valuation of the related pre-petition debt in arriving at the net carrying amount of the debt. When the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Courts’ approval of the respective Plan of Reorganization (which included the approval of allowed debt claims), we adjusted the net carrying amount of the Debtors’ debt obligations to the allowed amount of the claims, which resulted in a write-off of the unamortized balance of debt discounts, premiums and issuance costs.

⁽⁸⁾  For purposes of determining the amounts of allowed unsecured claims, claims filed against a CCAA filer or Chapter 11 filer denominated in a currency other than the local currency are to be translated to Canadian dollars and U.S. dollars, respectively, using the exchange rate in effect as of the date of the commencement of the Creditor Protection Proceedings for all Chapter 11 claims and for CCAA claims that existed as of the filing date, or the exchange rate in effect as of the date of the notice or event that gave rise to the claim for CCAA claims that arose after the filing date (the “fixed exchange rate”). The majority of our CCAA filers’ pre-petition unsecured debt obligations were denominated in U.S. dollars. As noted above, when the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Canadian Court’s sanction of the CCAA Reorganization Plan (which included the approval of allowed debt claims), we adjusted the CCAA filers’ pre-petition unsecured debt obligations to the allowed amount of the claims, which resulted in a revaluation to reflect the impact of the fixed exchange rate.

⁽⁹⁾  In 2010 and 2009, we had recorded post-petition accrued interest on the CCAA filers’ pre-petition unsecured debt obligations based on the expectation that such accrued interest would be a permitted claim under the CCAA Proceedings. However, pursuant to the CCAA Reorganization Plan sanctioned by the Canadian Court, the CCAA filers’ pre-petition unsecured debt obligations did not include the amount of such post-petition accrued interest for distribution purposes and therefore, such accrued interest was then accounted for as not having been approved as a permitted claim. Accordingly, in the third quarter of 2010, we reversed such post-petition accrued interest as a Reorganization item and ceased accruing interest on the CCAA filers’ pre-petition unsecured debt obligations.

⁽¹⁰⁾  As discussed in Note 1, “Organization and Basis of Presentation – Bridgewater Administration,” we are no longer consolidating BPCL in our consolidated financial statements. Upon the deconsolidation of BPCL, we derecognized our negative investment in BPCL, which resulted in a gain.

⁽¹¹⁾  During the second quarter of 2010, a subsidiary that was a VIE that we had been consolidating was placed into receivership. As a result, we lost control over and the ability to influence this VIE’s operations and were no longer the primary beneficiary of this VIE. Therefore, we are no longer consolidating this VIE in our consolidated financial statements. Upon the deconsolidation of this VIE, we derecognized our negative investment in this VIE, which resulted in a gain. Additionally, in the fourth quarter of 2010, we transferred assets and liabilities associated with certain Canadian properties to this VIE. Upon the transfer of these properties to this VIE and the assumption of the associated liabilities by this VIE, we lost control of the assets transferred and were no longer primarily responsible for the liabilities transferred and therefore deconsolidated these properties, which resulted in a gain on disposition of assets.

⁽¹²⁾  Debtor in possession financing costs were recorded in 2010 in connection with an amendment, two extensions and an exit fee related to one of our debtor in possession financing arrangements, as well as an amendment to our former accounts receivable securitization program. Debtor in possession financing costs were incurred in 2009 in connection with entering into our debtor in possession financing arrangements and our former amended and restated accounts receivable securitization program. For additional information, see Note 16, “Liquidity and Debt.”

⁽¹³⁾  In 2010, “Other” primarily included: (i) the write-off of environmental liabilities related to our Newfoundland and Labrador properties that were expropriated and for which no claim was filed against us in the Creditor Protection Proceedings; (ii) charges related to our estimated liability for an environmental claim filed against us by the current owner of a site previously owned by one of our subsidiaries; (iii) employee termination charges resulting from our work toward a comprehensive restructuring plan related to a workforce reduction at our Catawba, South Carolina paper mill and the departure of our former Chief Executive Officer and (iv) additional claim amounts recorded as a result of the claims reconciliation process. In 2009, “Other” primarily included: (i) charges for reserves for certain pre-petition receivables and (ii) impairment charges to reduce our retained interest in three QSPEs to zero (for further information, reference is made to Note 17, “Monetization of Timber Notes”). “Other” for both periods also included interest income.

XML

Pension and Other Postretirement Benefit Plans (Details 2) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Amounts recognized in our Consolidated Balance Sheets consisted of:
Accounts payable and accrued liabilities	$ (34)	$ (35)
Pension and OPEB benefit obligations	(1,524)	(1,272)
Pension Plans [Member]
Amounts recognized in our Consolidated Balance Sheets consisted of:
Other assets	2	19
Accounts payable and accrued liabilities	(9)	(7)
Pension and OPEB benefit obligations	(1,145)	(892)
Net obligations recognized	(1,152)	(880)
OPEB Plans [Member]
Amounts recognized in our Consolidated Balance Sheets consisted of:
Accounts payable and accrued liabilities	(25)	(28)
Pension and OPEB benefit obligations	(379)	(380)
Net obligations recognized	$ (404)	$ (408)

XML

Creditor Protection Proceedings Related Disclosures (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Interest expense	$ 95	$ 483	$ 597
Payment of backstop commitment termination fee		15
Contractual interest expense		714	788
Cash payments for reorganization items		210	104
Parent [Member]
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Payment of backstop commitment termination fee		15
Successor [Member]
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Interest expense	95
Successor [Member] | Parent [Member]
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Interest expense	153
Predecessor [Member]
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Interest expense		483	597
Contractual interest expense		714	788
Predecessor [Member] | Parent [Member]
Creditor Protection Proceedings Related Disclosures (Textual) [Abstract]
Interest expense		26	40
Catch up interest expense on note payable to a subsidiary		5
Contractual interest expense		142	142
Cash payments for reorganization items		$ 0	$ 0

XML

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]
Activity in the environmental liabilities
Environmental Liabilities, Beginning of year	$ 6	$ 8	$ 27
Additions		0	37
Payments		(1)	(2)
Reduction due to sale of mill		(1)	0
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		0	(38)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings		0	(15)
Transfer from liabilities associated with assets held for sale		0	2
Other		0	(3)
Environmental Liabilities, End of year	$ 6	$ 6	$ 8

XML

Consolidated Statements of Changes in (Deficit) Equity (USD $) In Millions, unless otherwise specified	Successor	Predecessor	Common Stock Successor	Common Stock Predecessor	Exchangeable Shares Successor	Exchangeable Shares Predecessor	Additional Paid-In Capital Successor	Additional Paid-In Capital Predecessor	(Deficit) Retained Earnings Successor	(Deficit) Retained Earnings Predecessor	Accumulated Other Comprehensive Loss Successor	Accumulated Other Comprehensive Loss Predecessor	Treasury Stock Successor	Treasury Stock Predecessor	Non-controlling Interests Successor	Non-controlling Interests Predecessor
Beginning Balance at Dec. 31, 2008		$ (340)		$ 53		$ 242		$ 2,451		$ (2,838)		$ (384)		$ 0		$ 136
Exchangeable shares retracted and common shares issued (1.4 shares)				2		(69)		67
Share-based compensation costs for equity-classified awards		4						4
Restricted stock units vested, net of shares forfeited for employee withholding taxes (0.1 shares)		0		0				0
Net income (loss)		(1,560)								(1,553)						(7)
Dividends and distribution paid to noncontrolling interests		(7)														(7)
Other comprehensive income (loss), net of tax		(66)										(66)
Ending Balance at Dec. 31, 2009		(1,969)		55		173		2,522		(4,391)		(450)		0		122
Share-based compensation costs for equity-classified awards		3						3
Net income (loss)		2,775								2,614						161
Other comprehensive income (loss), net of tax		(575)										(570)				(5)
Implementation of Plans of Reorganization and application of fresh start accounting (Note 3):
Cancellation of Predecessor Company common stock (54.7 shares) and exchangeable shares (3.0 shares)				(55)		(173)		228
Issuance of Successor Company common stock (97.1 shares)		3,709						3,709
Plans of Reorganization adjustments to accumulated other comprehensive loss		44										44
Elimination of Predecessor Company additional paid-in capital, deficit and accumulated other comprehensive loss								(2,753)		1,777		976
Issuance of Successor Company common stock to Donohue Corp., a wholly-owned subsidiary of the Company (17.0 shares in treasury) (Note 21)		0		0				0
Ending Balance at Dec. 31, 2010	3,987		0		0		3,709		0		0		0		278
Share-based compensation costs for equity-classified awards	3						3
Net income (loss)	39								41						(2)
Dividends and distribution paid to noncontrolling interests	(21)														(21)
Acquisition of noncontrolling interest (Note 16 and Note 19)	(120)						(15)								(105)
Disposition of investment in ACH Limited Partnership (Note 8 and Note 16)	(107)										(8)				(99)
Contribution of capital to noncontrolling interest	5						(10)								15
Other comprehensive income (loss), net of tax	(309)										(303)				(6)
Ending Balance at Dec. 31, 2011	$ 3,477		$ 0		$ 0		$ 3,687		$ 41		$ (311)		$ 0		$ 60

XML

Pension and Other Postretirement Benefit Plans (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2009 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2010 Predecessor [Member] OPEB Plans [Member]	Dec. 31, 2009 Predecessor [Member] OPEB Plans [Member]	Dec. 31, 2011 Successor [Member] Pension Plans [Member]	Dec. 31, 2011 Successor [Member] OPEB Plans [Member]
Summary of change in benefit obligations
Benefit obligations as of beginning of year	$ 5,665		$ 382		$ 6,302	$ 408
Service cost	41	40	4	3	35	3
Interest cost	350	346	23	24	335	22
Actuarial loss (gain)	649		29		397	(6)
Participant contributions	21		5		17	5
Plan amendments			(8)		1
Plan amendments upon emergence from the Creditor Protection Proceedings	(22)		(4)
Curtailments and settlements	(16)				(66)	(4)
Curtailments and settlements upon emergence from the Creditor Protection Proceedings	(98)
Deconsolidation of BPCL (Note 1 and Note 3)	(92)
Benefits paid	(461)		(31)		(502)	(29)
Effect of foreign currency exchange rate changes	265		8		(108)	(3)
Benefit obligations as of end of year		$ 5,665		$ 382	$ 6,411	$ 404

XML

Condensed Financial Statements and Notes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 Parent [Member] Successor [Member]	Dec. 31, 2010 Parent [Member] Predecessor [Member]	Dec. 31, 2009 Parent [Member] Predecessor [Member]	Dec. 31, 2008 Parent [Member] Predecessor [Member]
Expenses:
Selling, general and administrative expenses								$ 158					$ 155	$ 198	$ 27	$ 34	$ 29
Reserve for receivables from subsidiaries (Note E)																(32)	410
Operating loss				47	72	52	27	198	11	12	(73)	(110)	(160)	(375)	(27)	(2)	(439)
Interest expense (contractual interest of $714 and $788 for the years ended December 31, 2010 and 2009, respectively) (Note 16)	(95)	(483)	(597)					(95)					(483)	(597)	(153)	(26)	(40)
Other income (expense), net								(48)					(89)	(71)	6	(1)	12
Parent's equity in income (loss) of subsidiaries														0	152	1,652
Income (loss) before reorganization items and income taxes								55					(732)	(1,043)	(22)	1,623	(467)
Reorganization items, net (Note 3)													1,901	(639)		(185)	(2)
Income (loss) before income taxes								55					1,169	(1,682)	(22)	1,438	(469)
Income tax (provision) benefit								(16)					1,606	122	63	8
Net income (loss)								39					2,775	(1,560)	41	1,446	(469)
Elimination of Predecessor Company deficit as a result of the application of fresh start accounting																1,777
Retained earnings (deficit)				$ 41				$ 41							$ 41		$ (3,223)	$ (2,754)

XML

Condensed Financial Statements and Notes (Details 2) (USD $) In Millions, unless otherwise specified		12 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2009 Parent [Member]	Dec. 31, 2011 Parent [Member] Successor [Member]	Dec. 31, 2010 Parent [Member] Predecessor [Member]	Dec. 31, 2008 Parent [Member] Predecessor [Member]
Condensed Financial Statements Captions [Line Items]
Net cash provided by operating activities		$ 198	$ 39	$ 46		$ 0
Cash flows from investing activities:
Investment in and advances (to) from affiliates			0			0	(850)
Net cash used in investing activities		245	96	484		0	(850)
Cash flows from financing activities:
Issuance of long-term debt			850			0	850
Net cash provided by financing activities		(393)	(572)	34		0	850
Net increase in cash and cash equivalents		50	(437)	564		0
Cash and cash equivalents:
Beginning of year	369	319	756	192	0	0	0	0
End of year	$ 369	$ 369	$ 319	$ 756	$ 0	$ 0	$ 0	$ 0

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income (loss) before income taxes by taxing jurisdiction

	Successor		Predecessor
(In millions)	2011		2010			2009
United States	$	25	$	(1,039	)	$	(421	)
Foreign		30		2,208			(1,261	)
	$	55	$	1,169		$	(1,682	)

Income tax (provision) benefit

	Successor			Predecessor
(In millions)	2011			2010		2009
U.S. Federal and State:
Current	$	–		$	–	$	–
Deferred		(21	)		470		(1	)
		(21	)		470		(1	)
Foreign:
Current		(4	)		–		–
Deferred		9			1,136		123
		5			1,136		123
Total:
Current		(4	)		–		–
Deferred		(12	)		1,606		122
	$	(16	)	$	1,606	$	122

Reconciliation of statutory tax (provision) benefit to income tax (provision) benefit

	Successor			Predecessor
(In millions)	2011			2010			2009
Income (loss) before income taxes	$	55		$	1,169		$	(1,682	)
Income tax (provision) benefit:
Expected income tax (provision) benefit		(19	)		(409	)		588
Changes resulting from:
Valuation allowance (1)		(15	)		1,166			(615	)
Plans of Reorganization		–			1,043			–
Subpart F income		–			(107	)		–
Worthless stock (2)		–			–			308
Tax reserve adjustments (3)		63			–			45
Foreign exchange		(9	)		9			(230	)
Reorganization-related adjustments  (4)		(38	)		–			–
State income taxes, net of federal income tax benefit		(1	)		2			12
Foreign tax rate differences		2			(72	)		30
Other, net		1			(26	)		(16	)
	$	(16	)	$	1,606		$	122

⁽¹⁾  See “Deferred income taxes” section below for a discussion of the valuation allowance.

⁽²⁾  Subsequent to the commencement of Abitibi’s CCAA Proceedings, in 2009, we concluded that our investment in the common stock of Abitibi no longer had any value and therefore, we recorded a $308 million tax benefit for a worthless stock deduction, which represented the estimated tax basis in our investment in Abitibi of approximately $800 million.

⁽³⁾  In 2011, we reversed certain reserves for unrecognized tax benefits pursuant to FASB ASC 740, primarily due to the completion of certain tax authority examinations during the year.

⁽⁴⁾ During 2011, we identified certain adjustments associated with our previously-reported 2010 deferred income tax balance sheet accounts. These adjustments were recorded in 2011 and resulted in a tax expense for the year of $38 million. We did not adjust any prior period amounts, as we do not believe that these adjustments are material to 2011 or any of our previously-issued financial statements.

Deferred income taxes

	00000000		00000000		00000000		00000000
		Successor
(In millions)		2011				2010
Fixed assets		$	(259	)		$	(167	)
Deferred gains			(40	)			(37	)
Other liabilities			(91	)			(35	)
Deferred income tax liabilities			(390	)			(239	)
Fixed assets			500				484
Pension and OPEB benefit plans			473				416
Ordinary loss carryforwards			716				598
Capital loss carryforwards			447				371
Research and development expense pool			265				264
Tax credit carryforwards			167				220
Other assets			169				71
Deferred income tax assets			2,737				2,424
Valuation allowance			(564	)			(474	)
Net deferred income tax assets		$	1,783			$	1,711
Amounts recognized in our Consolidated Balance Sheets consisted of:
Deferred income tax assets – current		$	109			$	47
Deferred income tax assets – noncurrent			1,749				1,736
Deferred income tax liabilities – noncurrent			(75	)			(72	)
Net deferred income tax assets		$	1,783			$	1,711

Balance of tax attributes and their dates of expiration

	Successor
(In millions)	Related     Deferred     Income Tax     Asset			Year of Expiration
Ordinary loss carryforwards:
U.S. Federal ordinary loss carryforwards of $1,564		$        542			2020 – 2031
U.S. State ordinary loss carryforwards of $1,672		70	(1)		2014 – 2031
Canadian Federal and provincial (excluding Quebec) ordinary loss carryforwards of $274		53			2014 – 2030
Quebec ordinary loss carryforwards of $391		33			2014 – 2030
Other ordinary loss carryforwards		18	(2)		Various
		$        716
Capital loss carryforwards:
U.S. capital loss carryforwards of $1,275		$        446	(3)		2014
Other capital loss carryforwards		1			Various
		$        447
Research and development expense pool:
Canadian Federal and provincial (excluding Quebec) research and development expense pool of $903		$        163			Indefinite
Quebec research and development expense pool of $1,213		102			Indefinite
		$        265
Tax credit carryforwards:
Canadian research and development tax credit carryforwards		$        134			2018 – 2030
Other tax credit carryforwards		33	(4)		Various
		$        167

⁽¹⁾ A significant portion of our deferred income tax assets related to U.S. State ordinary loss carryforwards has a valuation allowance, as we expect they will expire unused.

⁽²⁾ The deferred income tax assets related to other ordinary loss carryforwards have a full valuation allowance, as they are not expected to be realized.

⁽³⁾ The deferred income tax assets related to U.S. capital loss carryforwards have a full valuation allowance, as they are not expected to be realized.

⁽⁴⁾ As certain Canadian tax credit carryforwards are expected to expire unused, a valuation allowance was recorded.

Reconciliation of beginning and ending amount of unrecognized tax benefits

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	191		$	206
(Decrease) increase in unrecognized tax benefits resulting from:
Positions taken in a prior period		(100	)		2
Positions taken in the current period		20			42
Change in Canadian foreign exchange rate		(2	)		(1	)
Expiration of statute of limitations		–			(58	)
End of year (Successor)	$	109		$	191

XML

Pension and Other Postretirement Benefit Plans (Details 5)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Pension Plans [Member]
Benefit obligations:
Discount rate	4.90%	5.50%	6.40%
Rate of compensation increase	1.20%	0.90%	2.30%
Net periodic benefit cost:
Discount rate	5.50%	6.40%	7.30%
Expected return on assets	6.60%	6.80%	7.30%
Rate of compensation increase	0.90%	2.30%	3.00%
OPEB Plans [Member]
Benefit obligations:
Discount rate	4.90%	5.60%	6.30%
Net periodic benefit cost:
Discount rate	5.60%	6.30%	7.00%

XML

Alternative Fuel Mixture Tax Credits

12 Months Ended

Dec. 31, 2011

Alternative Fuel Mixture Tax Credits [Abstract]

Alternative Fuel Mixture Tax Credits

Note 24. Alternative Fuel Mixture Tax Credits

During 2009, the Code provided a tax credit for companies that use alternative fuel mixtures to produce energy to operate their businesses. The credit, equal to $0.50 per gallon of alternative fuel contained in the mixture, was refundable to the taxpayer. During the year ended December 31, 2009, we recorded $276 million of these credits, which were included in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. According to the Code, the tax credit expired at the end of 2009.

XML

Condensed Consolidating Financial Information (Details Textual)	12 Months Ended
	Dec. 31, 2011
Financial Information (Textual) [Abstract]
Percentage of owned material U S Subsidiaries	100.00%

XML

Quarterly Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Information [Abstract]

Schedule of Unaudited Quarterly Financial Data

Year ended December 31, 2011 (Successor)	First			Second			Third			Fourth
(In millions, except per share amounts)	Quarter			Quarter			Quarter			Quarter			Year
Sales	$	1,185		$	1,200		$	1,224		$	1,147		$	4,756
Operating income (1)		27			52			72			47			198
Net income (loss) attributable to AbitibiBowater Inc.		30			61			(44	)		(6	)		41
Basic net income (loss) per share attributable to AbitibiBowater Inc. common shareholders		0.31			0.63			(0.46	)		(0.06	)		0.42
Diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders		0.31			0.63			(0.46	)		(0.06	)		0.42
Year ended December 31, 2010 (Predecessor)	First			Second			Third			Fourth
(In millions, except per share amounts)	Quarter			Quarter			Quarter			Quarter			Year
Sales	$	1,100		$	1,182		$	1,192		$	1,272		$	4,746
Operating (loss) income (2)		(110	)		(73	)		12			11			(160	)
Net (loss) income attributable to AbitibiBowater Inc.		(500	)		(297	)		(829	)		4,240			2,614
Basic net (loss) income per share attributable to AbitibiBowater Inc. common shareholders		(8.68	)		(5.15	)		(14.35	)		73.48			45.30
Diluted net (loss) income per share attributable to AbitibiBowater Inc. common shareholders		(8.68	)		(5.15	)		(14.35	)		44.82			27.63

Special Items Included in Operating Income

⁽¹⁾  Operating income for the year ended December 31, 2011 included the following special items:

		000000			000000			000000			000000			000000	000000
	Successor
(In millions)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Net gain (loss) on disposition of assets and other	$	1		$	3		$	(1	)	$	–		$	3
Closure costs, impairment and other related charges		(13	)		(4	)		(17	)		(12	)		(46)
Write-downs of inventory		(1	)		–			–			(2	)		(3)
Employee termination costs		(4	)		(3	)		(5	)		–			(12)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.		–			–			–			(5	)		(5)
	$	(17	)	$	(4	)	$	(23	)	$	(19	)	$	(63)

⁽²⁾  Operating (loss) income for the year ended December 31, 2010 included the following special items:

		000000			000000			000000		000000			000000		000000
	Predecessor
(In millions)	First Quarter			Second Quarter			Third Quarter		Fourth Quarter			Year
Net gain on disposition of assets and other	$	9		$	4		$	1	$	16		$	30
Closure costs, impairment and other related charges		(5	)		(3	)		3		(6	)		(11	)
Employee termination credit		8			–			–		–			8
	$	12		$	1		$	4	$	10		$	27

XML

Restricted Cash

12 Months Ended

Dec. 31, 2011

Restricted Cash [Abstract]

Restricted Cash

Note 11. Restricted Cash

In connection with the sale of our investment in MPCo in December 2009, we provided certain undertakings and indemnities to Alcoa Canada Ltd. (collectively with certain affiliates, “Alcoa”), our former partner in MPCo, including an indemnity for potential tax liabilities arising from the transaction. As of December 31, 2011 and 2010, we maintained a reserve of approximately Cdn$83 million ($81 million, based on the exchange rate in effect on December 31, 2011) and Cdn$80 million ($80 million, based on the exchange rate in effect on December 31, 2010), respectively, to secure those obligations. This reserve was included as restricted cash in “Other assets” in our Consolidated Balance Sheets as of December 31, 2011 and 2010.

XML

Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note 25. Segment Information

We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our primary product lines: newsprint, coated papers, specialty papers, market pulp and wood products.

None of the income or loss items following “Operating income (loss)” in our Consolidated Statements of Operations are allocated to our segments, since those items are reviewed separately by management. For the same reason, closure costs, impairment and other related charges, employee termination costs, net gain on disposition of assets and other, costs associated with our unsuccessful refinancing efforts in 2009 and other discretionary charges or credits are not allocated to our segments. Share-based compensation expense is, however, allocated to our segments. We also allocate depreciation expense to our segments, although the related fixed assets are not allocated to segment assets. Additionally, beginning in 2011, all selling, general and administrative expenses, excluding employee termination costs and certain discretionary charges, are allocated to our segments.

Only assets which are identifiable by segment and reviewed by our management are allocated to segment assets. In 2011, no assets were identifiable by segment and reviewed by management. In 2010 and 2009, the only assets identifiable by segment were goodwill of the Predecessor Company and finished goods inventory. All other assets were included in Corporate and other.

Information about certain segment data as of and for the years ended December 31, 2011, 2010 and 2009 was as follows:

(In millions)	Newsprint			Coated Papers		Specialty Papers			Market Pulp (1)		Wood Products			Corporate and Other			Consolidated Total
Sales
2011 (Successor)	$	1,816		$	538	$	1,275		$	659	$	468		$	–		$	4,756
2010 (Predecessor)		1,804			482		1,321			715		424			–			4,746
2009 (Predecessor)		1,802			416		1,331			518		290			9			4,366
Depreciation, amortization and cost of timber harvested
2011 (Successor)	$	73		$	35	$	49		$	30	$	33		$	–		$	220
2010 (Predecessor)		225			30		128			49		42			19			493
2009 (Predecessor)		291			28		151			52		49			31			602
Operating income (loss) (2)
2011 (Successor)	$	89		$	57	$	62		$	85	$	(25	)	$	(70	)	$	198
2010 (Predecessor)		(171	)		31		(44	)		137		9			(122	)		(160	)
2009 (Predecessor) (3)		(353	)		89		85			112		(56	)		(252	)		(375	)
Capital expenditures
2011 (Successor)	$	34		$	4	$	15		$	12	$	20		$	12		$	97
2010 (Predecessor)		26			4		34			7		9			1			81
2009 (Predecessor)		36			3		43			9		9			1			101
Assets
2011 (Successor)	$	–		$	–	$	–		$	–	$	–		$	6,298		$	6,298
2010 (Successor)		43			15		52			37		37			6,951			7,135
2009 (Predecessor)		74			65		46			28		42			6,857			7,112

⁽¹⁾  For the years ended December 31, 2011, 2010 and 2009, market pulp sales excluded inter-segment sales of $33 million, $46 million and $34 million, respectively.

⁽²⁾  Corporate and other operating loss for the years ended December 31, 2011, 2010 and 2009 included the following special items:

	Successor			Predecessor
(In millions)	2011			2010			2009
Net gain on disposition of assets and other	$	3		$	30		$	91
Closure costs, impairment and other related charges		(46	)		(11	)		(202	)
Write-downs of inventory		(3	)		–			(17	)
Employee termination (costs) credit		(12	)		8			(2	)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.		(5	)		–			–
Reversal of previously recorded Canadian capital tax liabilities due to new legislation		–			–			16
Fees for unsuccessful refinancing efforts		–			–			(10	)
	$	(63	)	$	27		$	(124	)

⁽³⁾ For the year ended December 31, 2009, operating income (loss) for newsprint, coated papers, specialty papers and market pulp included $15 million, $62 million, $34 million and $165 million, respectively, for the alternative fuel mixture tax credits. See Note 24, “Alternative Fuel Mixture Tax Credits,” for additional information.

We sell newsprint and specialty papers to various joint venture partners (partners with us in the ownership of certain mills we operate). Sales to our joint venture partners, which are transacted at arm’s length negotiated prices, were $278 million, $294 million and $301 million in 2011, 2010 and 2009, respectively. Amounts due from joint venture partners were $31 million and $35 million as of December 31, 2011 and 2010, respectively, and are included in “Accounts receivable, net” in our Consolidated Balance Sheets.

Sales are attributed to countries based on the location of the customer. No single customer, related or otherwise, accounted for 10% or more of our 2011, 2010 or 2009 consolidated sales. No country in the “Other countries” group in the table below exceeded 2% of consolidated sales. Sales by country for the years ended December 31, 2011, 2010 and 2009 were as follows:

	Successor		Predecessor
(In millions)	2011		2010		2009
United States	$	2,859	$	2,775	$	2,852
Foreign countries:
Canada		636		703		508
Brazil		166		156		118
Mexico		151		166		93
Italy		106		128		83
Korea		88		36		88
United Kingdom		68		73		188
India		60		96		34
Other countries		622		613		402
		1,897		1,971		1,514
	$	4,756	$	4,746	$	4,366

Long-lived assets, which exclude goodwill of the Predecessor Company, intangible assets and deferred income tax assets, by country, as of December 31, 2011, 2010 and 2009 were as follows:

	Successor				Predecessor
(In millions)	2011		2010		2009
United States	$	1,110	$	1,189	$	1,449
Foreign countries:
Canada		1,629		1,736		2,785
Korea		23		32		102
United Kingdom		–		–		78
		1,652		1,768		2,965
	$	2,762	$	2,957	$	4,414

XML

Pension and Other Postretirement Benefit Plans (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011 Successor [Member] Pension Plans [Member]	Dec. 31, 2011 Successor [Member] OPEB Plans [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2009 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2009 Predecessor [Member] OPEB Plans [Member]
Summary of the special events that impacted net periodic benefit costs as a curtailment, settlement or special termination benefit
Settlements resulting from lump-sum payouts or plan liquidations and wind-ups		$ 3	$ 0	$ 1	$ 2
Curtailments, net, and special retirement benefits resulting from the closure of mills or paper machines and other mill restructurings		2	3	4	(6)	(5)
Curtailments and settlements that arose upon our emergence from the Creditor Protection Proceedings	(24)			(24)
Curtailments, settlements and special termination benefits, Total		$ 5	$ 3	$ (19)	$ (4)	$ (5)

XML

Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended		3 Months Ended				12 Months Ended		12 Months Ended				12 Months Ended				12 Months Ended				12 Months Ended				12 Months Ended				12 Months Ended
	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2010 Newsprint [Member] Predecessor [Member]	Dec. 31, 2009 Newsprint [Member] Predecessor [Member]	Dec. 31, 2011 Newsprint [Member] Successor [Member]	Dec. 31, 2010 Newsprint [Member] Successor [Member]	Dec. 31, 2010 Coated Papers [Member] Predecessor [Member]	Dec. 31, 2009 Coated Papers [Member] Predecessor [Member]	Dec. 31, 2011 Coated Papers [Member] Successor [Member]	Dec. 31, 2010 Coated Papers [Member] Successor [Member]	Dec. 31, 2010 Specialty Papers [Member] Predecessor [Member]	Dec. 31, 2009 Specialty Papers [Member] Predecessor [Member]	Dec. 31, 2011 Specialty Papers [Member] Successor [Member]	Dec. 31, 2010 Specialty Papers [Member] Successor [Member]	Dec. 31, 2010 Market Pulp [Member] Predecessor [Member]	Dec. 31, 2009 Market Pulp [Member] Predecessor [Member]	Dec. 31, 2011 Market Pulp [Member] Successor [Member]	Dec. 31, 2010 Market Pulp [Member] Successor [Member]	Dec. 31, 2010 Wood Products [Member] Predecessor [Member]	Dec. 31, 2009 Wood Products [Member] Predecessor [Member]	Dec. 31, 2011 Wood Products [Member] Successor [Member]	Dec. 31, 2010 Wood Products [Member] Successor [Member]	Dec. 31, 2010 Corporate and Other [Member] Predecessor [Member]	Dec. 31, 2009 Corporate and Other [Member] Predecessor [Member]	Dec. 31, 2011 Corporate and Other [Member] Successor [Member]	Dec. 31, 2010 Corporate and Other [Member] Successor [Member]
Segment Reporting Information
Sales	$ 1,272	$ 1,192	$ 1,182	$ 1,100	$ 4,746	$ 4,366	$ 1,147	$ 1,224	$ 1,200	$ 1,185	$ 4,756		$ 1,804	$ 1,802	$ 1,816		$ 482	$ 416	$ 538		$ 1,321	$ 1,331	$ 1,275		$ 715	$ 518	$ 659		$ 424	$ 290	$ 468			$ 9
Depreciation, amortization and cost of timber harvested					493	602					220		225	291	73		30	28	35		128	151	49		49	52	30		42	49	33		19	31
Operating income (loss)	11	12	(73)	(110)	(160)	(375)	47	72	52	27	198		(171)	(353)	89		31	89	57		(44)	85	62		137	112	85		9	(56)	(25)		(122)	(252)	(70)
Capital expenditures					81	101					97		26	36	34		4	3	4		34	43	15		7	9	12		9	9	20		1	1	12
Assets						$ 7,112	$ 6,298				$ 6,298	$ 7,135		$ 74		$ 43		$ 65		$ 15		$ 46		$ 52		$ 28		$ 37		$ 42		$ 37		$ 6,857	$ 6,298	$ 6,951

XML

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2011

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities

Note 13. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities as of December 31, 2011 and 2010 were comprised of the following:

	Successor
(In millions)	2011		2010
Trade accounts payable	$	291	$	252
Payroll, bonuses and severance payable		89		99
Accrued interest		13		21
Pension and OPEB benefit obligations		34		35
Income and other taxes payable		19		15
Claims payable		11		35
Other		87		90
	$	544	$	547

XML

Creditor Protection Proceedings (Details) (Predecessor [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Predecessor [Member]
Summary of reorganization items, net
Professional fees	$ 154	$ 106
Gain due to Plans of Reorganization adjustments	(3,553)
Loss due to fresh start accounting adjustments	362
Provision for repudiated or rejected executory contracts	121	225
Charges related to indefinite idlings and permanent closures	307	242
Gains on disposition of assets	(70)
Write-off of debt discounts, premiums and issuance costs	666
Revaluation of debt due to currency exchange	546
Reversal of post-petition accrued interest on certain debt obligations	(447)
Gain on deconsolidation of BPCL	(26)
Gain on deconsolidation of a variable interest entity	(16)
Debtor in possession financing costs	10	31
Other	45	35
Reorganization Items, Total	$ (1,901)	$ 639

XML

Income Taxes (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Reconciliation of statutory tax (provision) benefit to income tax (provision) benefit
Income (loss) before income taxes	$ 55	$ 1,169	$ (1,682)
Income tax (provision) benefit:
Expected income tax (provision) benefit	(19)	(409)	588
Changes resulting from:
Valuation allowance	(15)	1,166	(615)
Plans of Reorganization		1,043
Subpart F income		(107)
Worthless stock			308
Tax reserve adjustments	63		45
Foreign exchange	(9)	9	(230)
Reorganization-related adjustments	(38)
State income taxes, net of federal income tax benefit	(1)	2	12
Foreign tax rate differences	2	(72)	30
Other, net	1	(26)	(16)
Total	$ (16)	$ 1,606	$ 122

XML

Consolidated Statements of Changes in (Deficit) Equity (Parenthetical) (Predecessor) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Common Stock
Exchangeable shares retracted and common shares issued		1.4
Restricted stock units vested, net of forfeitures		0.1
Cancellation of Predecessor Company, shares	54.7
Issuance of Successor Company common stock, shares	97.1
Issuance of Successor Company common stock to Donohue Corp., a wholly-owned subsidiary of the Company, shares	17.0
Exchangeable Shares
Cancellation of Predecessor Company, shares	3.0

XML

Consolidated Statements of Operations (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Contractual interest expense	$ 714	$ 788
Predecessor
Contractual interest expense	$ 714	$ 788

XML

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other

12 Months Ended

Dec. 31, 2011

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other [Abstract]

Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other

Note 6. Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other

Assets held for sale and liabilities associated with assets held for sale

Assets held for sale as of December 31, 2011 and 2010 were comprised of the following:

	Successor
(In millions)	2011		2010
Cash and cash equivalents	$	–	$	10
Accounts receivable		–		4
Other current assets		–		1
Fixed assets, net		7		149
Amortizable intangible assets		–		528
Other assets		–		6
	$	7	$	698

Liabilities associated with assets held for sale as of December 31, 2011 and 2010 were comprised of the following:

	Successor
(In millions)	2011		2010
Accounts payable and accrued liabilities	$	–	$	9
Long-term debt		–		280
	$	–	$	289

As of December 31, 2011, we held for sale the following assets: our Petit Saguenay sawmill and certain parcels of land. The assets held for sale are carried in our Consolidated Balance Sheet as of December 31, 2011 at the lower of carrying value or fair value less costs to sell. We expect to complete a sale of all of these assets within the next twelve months for amounts that equal or exceed their individual carrying values.

As of December 31, 2010, we held for sale the following assets: our investment in ACH Limited Partnership (“ACH”), our Kenora, Ontario and Alabama River paper mills, our Saint-Fulgence and Petit Saguenay sawmills and various other assets. These assets and liabilities held for sale were carried in our Consolidated Balance Sheet as of December 31, 2010 at fair value (as a result of the application of fresh start accounting) less costs to sell. Since we had control over ACH, our consolidated financial statements included this entity on a fully consolidated basis.

Net gain on disposition of assets and other

During 2011, we sold our investment in ACH (for additional information, see Note 16, “Liquidity and Debt”), our Alabama River paper mill, our Kenora paper mill and various other assets for cash proceeds of $315 million, resulting in a net gain on disposition of assets of $3 million.

During 2010, we sold timberlands and other assets for proceeds of $16 million, resulting in a net gain on disposition of assets of $14 million. Additionally, during 2010, as part of our work toward a comprehensive restructuring plan, we sold various mills and other assets. For additional information, see Note 3, “Creditor Protection Proceedings – Reorganization items, net.” Additionally, in 2010, we recorded a net gain of $16 million related to a customer bankruptcy settlement.

During 2009, we sold 491,356 acres of timberlands, primarily located in Quebec, Canada and other assets, including the water system associated with our Lufkin paper mill, for proceeds of $119 million, resulting in a net gain on disposition of assets of $91 million. In addition, in 2009, we sold our interest in MPCo for gross cash proceeds of Cdn$615 million ($583 million). We did not recognize a gain or loss on this sale since we had previously recorded long-lived asset impairment charges to reduce the carrying value of our investment in MPCo to its fair value less costs to sell. See Note 5, “Closure Costs, Impairment and Other Related Charges – Impairment of assets held for sale,” for additional information.

XML

Pension and Other Postretirement Benefit Plans (Details 9) (USD $) In Millions, unless otherwise specified								12 Months Ended
	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2011 Successor [Member] Bank Loans/Foreign Annuities [Member]	Dec. 31, 2010 Successor [Member] Bank Loans/Foreign Annuities [Member]	Dec. 31, 2011 Successor [Member] Real Estate [Member]	Dec. 31, 2010 Successor [Member] Real Estate [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2011 Level 3 [Member] Successor [Member]	Dec. 31, 2011 Level 3 [Member] Successor [Member] Bank Loans/Foreign Annuities [Member]	Dec. 31, 2011 Level 3 [Member] Successor [Member] Real Estate [Member]	Dec. 31, 2010 Level 3 [Member] Predecessor [Member]	Dec. 31, 2010 Level 3 [Member] Predecessor [Member] Bank Loans/Foreign Annuities [Member]	Dec. 31, 2010 Level 3 [Member] Predecessor [Member] Real Estate [Member]
Changes in Level 3 pension plan assets
Fair value of plan assets as of beginning of year	$ 5,259	$ 5,422	$ 44	$ 44	$ 39	$ 42	$ 5,422	$ 86	$ 44	$ 42	$ 42	$ 5	$ 37
Unrealized gains relating to assets held								5		5	5		5
Realized losses								(1)		(1)
Purchases								41	41		57	57
Sales								(46)	(40)	(6)	(18)	(18)
Effect of foreign currency exchange rate changes								(2)	(1)	(1)
Fair value of plan assets as of end of year	$ 5,259	$ 5,422	$ 44	$ 44	$ 39	$ 42	$ 5,422	$ 83	$ 44	$ 39

XML

Monetization of Timber Notes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2011 Successor [Member] Calhoun Note Holdings AT LLC [Member]	Dec. 31, 2010 Successor [Member] Calhoun Note Holdings AT LLC [Member]	Dec. 31, 2011 Successor [Member] Calhoun Note Holdings TI LLC	Dec. 31, 2010 Successor [Member] Calhoun Note Holdings TI LLC
Retained interest in QSPEs
Retained interest in QSPEs			$ 20	$ 19	$ 8	$ 8	$ 12	$ 11
Monetization of Timber Notes (Textual) [Abstract]
Impairment charges		$ 21
Percentage value of debt securities to notes receivable from third parties	90.00%
Percentage of principal of notes receivable backed by letter of credit issued by third parties	100.00%
Increase in the interest rate payable to note holders as a result of commencement of the Creditor Protection Proceedings		2.00%

XML

Asset Retirement Obligations (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset Retirement Obligation, Beginning of year		$ 17	$ 55
Additions		3	5
Accretion expense		1	2
Reductions due to sale of mills			(20)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings			(20)
Payments		(1)	(1)
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims			(3)
Other			(1)
Asset Retirement Obligation, End of year		$ 20
Asset Retirement Obligations (Textual) [Abstract]
Costs associated with the obligations, expected to be paid over weighted average period	9 years

XML

Alternative Fuel Mixture Tax Credits (Details) (USD $)	12 Months Ended
	Dec. 31, 2009
Alternative Fuel Mixture Tax Credits (Textual) [Abstract]
Tax credit per gallon on alternative fuel mixture	$ 0.50
Tax credit recorded in Cost of sales, excluding depreciation, amortization and cost of timber harvested	$ 276,000,000

XML

Quarterly Information (Unaudited) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Schedule of Unaudited Quarterly Financial Data
Sales	$ 1,147	$ 1,224	$ 1,200	$ 1,185	$ 4,756	$ 1,272	$ 1,192	$ 1,182	$ 1,100	$ 4,746	$ 4,366
Operating income (loss)	47	72	52	27	198	11	12	(73)	(110)	(160)	(375)
Net income (loss) attributable to AbitibiBowater Inc.	$ (6)	$ (44)	$ 61	$ 30	$ 41	$ 4,240	$ (829)	$ (297)	$ (500)	$ 2,614	$ (1,553)
Basic net income (loss) per share attributable to AbitibiBowater Inc. common shareholders	$ (0.06)	$ (0.46)	$ 0.63	$ 0.31	$ 0.42	$ 73.48	$ (14.35)	$ (5.15)	$ (8.68)	$ 45.30	$ (26.91)
Diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders	$ (0.06)	$ (0.46)	$ 0.63	$ 0.31	$ 0.42	$ 44.82	$ (14.35)	$ (5.15)	$ (8.68)	$ 27.63	$ (26.91)

XML

Share-Based Compensation (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%
Share-Based Compensation (Textual) [Abstract]
Share-based compensation awards granted	1,106,533
Issuance or payments of vested share-based awards during Creditor Protection Proceedings		0
Share-based compensation expense	$ 3	$ 3	$ 4
Tax benefit from share-based compensation expense	1	0	0
Deferred Stock Units DSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period to meet certain retirement eligibility criteria	3 Years
Number of DSUs granted to a non-employee director	4,625
Number of DSUs vested by a non-employee director	4,205
Number of DSUs settled in the period	0
Deferred Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Cash Fees Surrender in Exchange of DSU and RSU Maximum	100.00%
Percentage of Cash Fees Surrender in Exchange of DSU and RSU minimum	50.00%
Number of awards issued as a percentage of fees earned	110.00%
Premium incentive	10.00%
2010 LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance of stock incentive awards		9,000,000
Available shares for issuance	7,700,000
Vesting period to meet certain retirement eligibility criteria	4 Years
Number of employees' awards impacted by plan modification	9
Minimum period after the grant date for retirement in order for employees to continue vesting in their award	6 months
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to equity awards	6
Expected dividend yield	0.00%
Vesting period to meet certain retirement eligibility criteria	4 Years
Expiration period from the grant date for stock options	10 years
Remaining requisite service period for equity awards to be recognized	3.4
Restricted Stock Units and Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock to receive per unit upon conversion	1
Unrecognized compensation cost related to equity awards	$ 5
Remaining requisite service period for equity awards to be recognized	3.7
Awards vested but not settled and still outstanding	34,413
Restricted Stock Units and Deferred Stock Units [Member] | Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period to meet certain retirement eligibility criteria	4 Years
Restricted Stock Units and Deferred Stock Units [Member] | Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period to meet certain retirement eligibility criteria	1 Years
Settlement period for awards once vested	3 Years

XML

Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	AbitibiBowater Inc.
Entity Central Index Key	0001393066
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,200
Entity Common Stock, Shares Outstanding		97,092,382

XML

Segment Information (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended				12 Months Ended	3 Months Ended				12 Months Ended
	Dec. 31, 2011 Successor [Member]	Sep. 30, 2011 Successor [Member]	Jun. 30, 2011 Successor [Member]	Mar. 31, 2011 Successor [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2010 Predecessor [Member]	Jun. 30, 2010 Predecessor [Member]	Mar. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 United States [Member] Successor [Member]	Dec. 31, 2010 United States [Member] Predecessor [Member]	Dec. 31, 2009 United States [Member] Predecessor [Member]	Dec. 31, 2011 Canada [Member] Successor [Member]	Dec. 31, 2010 Canada [Member] Predecessor [Member]	Dec. 31, 2009 Canada [Member] Predecessor [Member]	Dec. 31, 2011 Mexico [Member] Successor [Member]	Dec. 31, 2010 Mexico [Member] Predecessor [Member]	Dec. 31, 2009 Mexico [Member] Predecessor [Member]	Dec. 31, 2011 Brazil [Member] Successor [Member]	Dec. 31, 2010 Brazil [Member] Predecessor [Member]	Dec. 31, 2009 Brazil [Member] Predecessor [Member]	Dec. 31, 2011 Italy [Member] Successor [Member]	Dec. 31, 2010 Italy [Member] Predecessor [Member]	Dec. 31, 2009 Italy [Member] Predecessor [Member]	Dec. 31, 2011 India [Member] Successor [Member]	Dec. 31, 2010 India [Member] Predecessor [Member]	Dec. 31, 2009 India [Member] Predecessor [Member]	Dec. 31, 2011 United Kingdom [Member] Successor [Member]	Dec. 31, 2010 United Kingdom [Member] Predecessor [Member]	Dec. 31, 2009 United Kingdom [Member] Predecessor [Member]	Dec. 31, 2011 Korea [Member] Successor [Member]	Dec. 31, 2010 Korea [Member] Predecessor [Member]	Dec. 31, 2009 Korea [Member] Predecessor [Member]	Dec. 31, 2011 Other Countries [Member] Successor [Member]	Dec. 31, 2010 Other Countries [Member] Predecessor [Member]	Dec. 31, 2009 Other Countries [Member] Predecessor [Member]	Dec. 31, 2011 Foreign Countries [Member] Successor [Member]	Dec. 31, 2010 Foreign Countries [Member] Predecessor [Member]	Dec. 31, 2009 Foreign Countries [Member] Predecessor [Member]
Summary of sales by countries based on location of customers
Sales	$ 1,147	$ 1,224	$ 1,200	$ 1,185	$ 4,756	$ 1,272	$ 1,192	$ 1,182	$ 1,100	$ 4,746	$ 4,366	$ 2,859	$ 2,775	$ 2,852	$ 636	$ 703	$ 508	$ 151	$ 166	$ 93	$ 166	$ 156	$ 118	$ 106	$ 128	$ 83	$ 60	$ 96	$ 34	$ 68	$ 73	$ 188	$ 88	$ 36	$ 88	$ 622	$ 613	$ 402	$ 1,897	$ 1,971	$ 1,514

XML

Other Expense, Net

12 Months Ended

Dec. 31, 2011

Other Expense, Net [Abstract]

Other Expense, Net

Note 7. Other Expense, Net

Other expense, net for the years ended December 31, 2011, 2010 and 2009 was comprised of the following:

	Successor			Predecessor
(In millions)	2011			2010			2009
Foreign exchange loss	$	(21	)	$	(94	)	$	(59	)
Post-emergence costs (1)		(47	)		–			–
Income (loss) from equity method investments		2			(3	)		(9	)
Net gains on extinguishment of debt (Note 16)		6			–			–
Interest income (2)		3			1			–
Fees for waivers and amendments to accounts receivable securitization program (3)		–			–			(23	)
Loss on sale of ownership interests in accounts receivable (Note 16)		–			–			(17	)
Miscellaneous income (4)		9			7			37
	$	(48	)	$	(89	)	$	(71	)

⁽¹⁾  Primarily represents ongoing legal and other professional fees for the resolution and settlement of disputed creditor claims, as well as costs for other post-emergence activities associated with the Creditor Protection Proceedings.

⁽²⁾  During the Creditor Protection Proceedings, we recorded our Debtors’ interest income in “Reorganization items, net” in our Consolidated Statements of Operations.

⁽³⁾  As consideration for entering into certain waivers and amendments to our former accounts receivable securitization program, we incurred fees of $23 million in 2009 prior to the commencement of the Creditor Protection Proceedings.

⁽⁴⁾  Miscellaneous income in 2009 included $24 million of income, net from a subsidiary’s proceeds sharing arrangement related to a third party’s sale of timberlands. The related proceeds were deposited in trust with the Monitor during the Creditor Protection Proceedings and were released upon our emergence from the Creditor Protection Proceedings.

XML

Accumulated Other Comprehensive Loss (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 Successor [Member]
Pension and OPEB benefit related components of other comprehensive loss
Prior service (cost) credit from plan amendment during period, before tax	$ 8		$ (1)
Prior service (cost) credit from plan amendment during period, after tax	8		(1)
Amortization or curtailment recognition of prior service credit included in net periodic benefit cost, before tax		(15)	(1)
Amortization or curtailment recognition of prior service credit included in net periodic benefit costs, after tax		(15)	(1)
Change in unamortized prior service costs and credits during period, before tax	8	(15)	(2)
Change in unamortized prior service costs and credits, net of tax of $0 in all years	8	(15)	(2)
Net actuarial loss arising during period, Before tax	(606)	(176)	(447)
Net actuarial loss arising during period, Tax			127
Net actuarial loss arising during period, After tax	(606)	(176)	(320)
Amortization or settlement recognition of net actuarial loss, before tax	8		3
Amortization or settlement recognition of net actuarial loss, after tax	8		3
Change in unamortized actuarial gains and losses during period, Before tax	(598)	(176)	(444)
Change in unamortized actuarial gains and losses during period, Tax	0	0	127
Change in unamortized actuarial gains and losses during period, After tax	(598)	(176)	(317)
Pension and OPEB benefit related components of other comprehensive loss, Before tax total	(590)	(191)	(446)
Pension and OPEB benefit related components of other comprehensive loss, Tax			127
Pension and OPEB benefit related components of other comprehensive loss, After tax total	(590)	(191)	(319)
Less: Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests:
Net actuarial loss arising during the period, before tax			8
Net actuarial loss arising during the period, after tax			8
Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests, before tax			8
Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests, after tax			8
Comprehensive loss associated with pension and OPEB plans attributable AbitibiBowater, Inc., before tax	(590)	(191)	(438)
Comprehensive loss associated with pension and OPEB plans attributable AbitibiBowater, Inc., tax			127
Comprehensive loss associated with pension and OPEB plans attributable AbitibiBowater, Inc., after tax	$ (590)	$ (191)	$ (311)

XML

Severance Related Liabilities (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended				12 Months Ended				12 Months Ended		12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Initiatives 2011 [Member]	Dec. 31, 2009 Initiatives 2011 [Member]	Dec. 31, 2011 Initiatives 2010 [Member]	Dec. 31, 2010 Initiatives 2010 [Member]	Dec. 31, 2010 Initiatives 2009 [Member]	Dec. 31, 2011 Initiatives 2009 [Member]	Dec. 31, 2010 Initiatives 2008 [Member]	Dec. 31, 2011 Initiatives 2008 [Member]	Dec. 31, 2010 Initiatives 2007 [Member]	Dec. 31, 2011 Initiatives 2007 [Member]
Employee Severance Liability [Abstract]
Severance liability, beginning balance	$ 2	$ 87		$ 0	$ 2	$ 0	$ 43	$ 0	$ 27	$ 0	$ 17	$ 0
Charges (credits)	28	25	28			24	5				(4)
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		(111)				(22)	(48)		(29)		(12)
Other		1							2		(1)
Payments	(19)		(17)		(2)
Severance liability, ending balance	$ 11	$ 2	$ 11	$ 0	$ 0	$ 2	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

XML

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 369
AbitibiBowater Inc. shareholders' equity:
Accumulated other comprehensive loss	(311)	0
Successor
Current assets:
Cash and cash equivalents	369	319
Accounts receivable, net	750	833
Inventories, net	475	438
Assets held for sale	7	698
Deferred income tax assets	109	47
Other current assets	59	88
Total current assets	1,769	2,423
Fixed assets, net	2,502	2,641
Amortizable intangible assets, net	18	19
Deferred income tax assets	1,749	1,736
Other assets	260	316
Total assets	6,298	7,135
Current liabilities:
Accounts payable and accrued liabilities	544	547
Liabilities associated with assets held for sale	0	289
Total current liabilities	544	836
Long-term debt	621	905
Pension and other postretirement benefit obligations	1,524	1,272
Deferred income tax liabilities	75	72
Other long-term liabilities	57	63
Total liabilities	2,821	3,148
Commitments and contingencies
AbitibiBowater Inc. shareholders' equity:
Common stock, $0.001 par value. 114.1 shares issued and 97.1 shares outstanding as of December 31, 2011 and 2010
Additional paid-in capital	3,687	3,709
Retained earnings	41
Accumulated other comprehensive loss	(311)
Treasury stock at cost, 17.0 shares as of December 31, 2011 and 2010 (Note 21)
Total AbitibiBowater Inc. shareholders' equity	3,417	3,709
Noncontrolling interests	60	278
Total equity	3,477	3,987
Total liabilities and equity	$ 6,298	$ 7,135

XML

Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2011

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

Nature of operations

AbitibiBowater Inc. (with its subsidiaries and affiliates, either individually or collectively, unless otherwise indicated, referred to as “AbitibiBowater,” “we,” “our,” “us” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry, with a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. We own or operate pulp and paper mills and wood products facilities in the United States, Canada and South Korea. On November 7, 2011, AbitibiBowater Inc. began doing business as Resolute Forest Products. We expect at the 2012 annual meeting of shareholders to seek shareholder approval to amend our certificate of incorporation to change our legal name to Resolute Forest Products Inc.

Financial statements

We have prepared our consolidated financial statements in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All amounts are expressed in U.S. dollars, unless otherwise indicated. Certain prior year amounts in our consolidated financial statements and the related notes have been reclassified to conform to the 2011 presentation. The reclassifications had no effect on net income.

Basis of presentation

Effective upon the commencement of the Creditor Protection Proceedings (as defined in Note 3, “Creditor Protection Proceedings”) on April 16 and 17, 2009 and through the Convenience Date (as defined below), we applied the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 852, “Reorganizations” (“FASB ASC 852”), in preparing our consolidated financial statements. The guidance in FASB ASC 852 does not change the manner in which financial statements are prepared. However, it requires that the financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, during the Creditor Protection Proceedings, we: (i) recorded certain expenses, charges and credits incurred or realized that were directly associated with or resulting from the reorganization and restructuring of the business in “Reorganization items, net” in our Consolidated Statements of Operations and (ii) ceased recording interest expense on certain of our pre-petition debt obligations. For additional information, see Note 3, “Creditor Protection Proceedings,” and Note 16, “Liquidity and Debt.”

As further discussed in Note 3, “Creditor Protection Proceedings,” on December 9, 2010, we emerged from the Creditor Protection Proceedings. In accordance with FASB ASC 852, fresh start accounting (“fresh start accounting”) was required upon our emergence from the Creditor Protection Proceedings, which we applied effective December 31, 2010 (the “Convenience Date”). As such, the application of fresh start accounting was reflected in our Consolidated Balance Sheet as of December 31, 2010 and fresh start accounting adjustments related thereto were included in our Consolidated Statements of Operations for the year ended December 31, 2010.

The implementation of the Plans of Reorganization (as defined in Note 3, “Creditor Protection Proceedings”) and the application of fresh start accounting materially changed the carrying amounts and classifications reported in our consolidated financial statements and resulted in the Company becoming a new entity for financial reporting purposes. Accordingly, our consolidated financial statements as of December 31, 2010 and for periods subsequent to December 31, 2010 are not comparable to our consolidated financial statements for periods prior to December 31, 2010. References to “Successor” or “Successor Company” refer to the Company on or after December 31, 2010, after giving effect to the implementation of the Plans of Reorganization and the application of fresh start accounting. References to “Predecessor” or “Predecessor Company” refer to the Company prior to December 31, 2010. Additionally, references to periods on or after December 31, 2010 refer to the Successor and references to periods prior to December 31, 2010 refer to the Predecessor.

Bridgewater Administration

On February 2, 2010, Bridgewater Paper Company Limited (“BPCL”), a subsidiary of AbitibiBowater Inc., filed for administration in the United Kingdom pursuant to the United Kingdom Insolvency Act 1986, as amended (the “BPCL Administration”). BPCL’s board of directors appointed Ernst & Young LLP as joint administrators for the BPCL Administration, whose responsibilities are to manage the affairs, business and assets of BPCL. In May 2010, the joint administrators announced the sale of the Bridgewater paper mill and all related machinery and equipment. As a result of the filing for administration, we lost control over and the ability to influence BPCL’s operations. As a result, effective as of the date of the BPCL Administration filing, the financial position, results of operations and cash flows of BPCL are no longer consolidated in our consolidated financial statements. We are now accounting for BPCL using the cost method of accounting. For additional information, see Note 3, “Creditor Protection Proceedings – Reorganization items, net.”

Consolidation

Our consolidated financial statements include the accounts of AbitibiBowater Inc. and its controlled subsidiaries. All significant transactions and balances between these companies have been eliminated. All consolidated subsidiaries are wholly-owned as of December 31, 2011 with the exception of the following:

Consolidated Subsidiary	AbitibiBowater Ownership			Partner	Partner Ownership
Forest Products Mauricie L.P.		93.2	%	Cooperative Forestiere du Haut Saint-Maurice		6.8	%
Calhoun Newsprint Company (“CNC”)		51	%	Herald Company, Inc.		49	%
Bowater Mersey Paper Company Limited		51	%	The Daily Herald Company		49	%
Donohue Malbaie Inc.		51	%	NYT Capital Inc.		49	%

Equity method investments

We account for our investments in affiliated companies where we have significant influence, but not control over their operations, using the equity method of accounting.

Parent Company [Member]

Organization and Basis of Presentation

Note A. Organization and Basis of Presentation

The accompanying condensed financial statements, including the notes thereto, should be read in conjunction with the consolidated financial statements of AbitibiBowater Inc. included in Item 8 of this Form 10-K (“Consolidated Financial Statements”). When the term “AbitibiBowater Inc.” (also referred to as “AbitibiBowater,” “we,” “us” or “our”) is used, we mean AbitibiBowater Inc., the parent company only. All amounts are expressed in U.S. dollars, unless otherwise indicated. Defined terms in this Schedule I have the meanings ascribed to them in the Consolidated Financial Statements.

AbitibiBowater Inc. is incorporated in Delaware. On October 29, 2007, Abitibi and Bowater combined in a merger of equals with each becoming a subsidiary of AbitibiBowater and resulted in AbitibiBowater becoming a holding company whose only significant asset was an investment in the common stock of our subsidiaries.

For a discussion of our involvement in and our emergence from the Creditor Protection Proceedings, see Note 3, “Creditor Protection Proceedings,” to the Consolidated Financial Statements. Effective upon the commencement of the Creditor Protection Proceedings, we applied the guidance in FASB ASC 852, including the application of fresh start accounting as of December 31, 2010, in preparing our condensed financial statements, which is the same basis of presentation used in the preparation of the Consolidated Financial Statements, as discussed in Note 1, “Organization and Basis of Presentation,” to the Consolidated Financial Statements. As such, the application of fresh start accounting was reflected in our Condensed Balance Sheet as of December 31, 2010 and fresh start accounting adjustments related thereto were included in our Condensed Statements of Operations and Retained Earnings (Deficit) for the year ended December 31, 2010.

The implementation of the Plans of Reorganization and the application of fresh start accounting materially changed the carrying amounts and classifications reported in our condensed financial statements and resulted in us becoming a new entity for financial reporting purposes. Accordingly, our condensed financial statements as of December 31, 2010 and for periods subsequent to December 31, 2010 are not comparable to our condensed financial statements for periods prior to December 31, 2010. References to “Successor” or “Successor Company” refer to AbitibiBowater on or after December 31, 2010, after giving effect to the implementation of the Plans of Reorganization and the application of fresh start accounting. References to “Predecessor” or “Predecessor Company” refer to AbitibiBowater prior to December 31, 2010. Additionally, references to periods on or after December 31, 2010 refer to the Successor and references to periods prior to December 31, 2010 refer to the Predecessor.

XML

Consolidated Statements of Cash Flows (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Cash paid (received) during the year for:
Capitalized interest	$ 1	$ 0	$ 1

XML

Fixed Assets, Net

12 Months Ended

Dec. 31, 2011

Fixed Assets, Net [Abstract]

Fixed Assets, Net

Note 12. Fixed Assets, Net

Fixed assets, net as of December 31, 2011 and 2010 were comprised of the following:

	Successor
(Dollars in millions)	Range of Estimated Useful Lives in Years	2011			2010
Land and land improvements	2 – 10	$	85		$	72
Buildings	10 – 40		264			280
Machinery and equipment	3 – 20		1,910			1,853
Hydroelectric power plants (1)	40		283			283
Timber and timberlands	10 – 20		105			100
Construction in progress			81			53
			2,728			2,641
Less accumulated depreciation			(226	)		–
		$	2,502		$	2,641

⁽¹⁾  The province of Quebec informed us on December 30, 2011 that it intended to terminate our water rights associated with our Jim-Gray hydroelectric facility and to require us to transfer property of the associated installation to the province for no consideration. The termination and transfer would be effective as of March 2, 2012. The province’s actions are not consistent with our understanding of the agreement in question. We continue to evaluate our legal options. The net book value of this hydroelectric facility was tested for impairment with the other assets in its asset group and no impairment was indicated. At this time, we believe that the remaining useful life of the assets remains unchanged, as we continue pursuing the renewal of our water rights at the facility. The carrying value of the hydroelectric assets associated with the Jim-Gray installation as of December 31, 2011 was approximately $89 million. If we are unable to renew the water rights at this facility, we will reevaluate the remaining useful life of these assets, which may result in accelerated depreciation charges in the first quarter of 2012.

XML

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2011

Accumulated Other Comprehensive Loss / Share Capital [Abstract]

Accumulated Other Comprehensive Loss

Note 8. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss as of December 31, 2011 and 2010 was comprised of the following:

	Successor
(In millions)	2011			2010  (1)
Unamortized prior service costs (2)	$	(2	)	$	–
Unamortized actuarial losses (3)		(309	)		–
Foreign currency translation (4) (5)		–			–
	$	(311	)	$	–

⁽¹⁾ In connection with the application of fresh start accounting as of December 31, 2010, accumulated other comprehensive loss of the Predecessor Company was eliminated.

⁽²⁾ Net of deferred income taxes of zero as of December 31, 2011.

⁽³⁾ Net of deferred income tax benefit of $127 million as of December 31, 2011. Net of unamortized actuarial losses of $8 million attributable to noncontrolling interests as of December 31, 2011.

⁽⁴⁾ No tax effect was recorded for foreign currency translation since the investment in foreign net assets translated is deemed indefinitely invested. Net of noncontrolling interests of $2 million of foreign exchange gains as of December 31, 2011.

⁽⁵⁾ Accumulated other comprehensive loss as of December 31, 2011 has been increased by $8 million of foreign currency translation gains that were reclassified to “Net gain on disposition of assets and other” in our Consolidated Statements of Operations for the year ended December 31, 2011 as a result of the sale of our investment in ACH.

The pension and OPEB benefit related components of other comprehensive loss for the years ended December 31, 2011, 2010 and 2009 were comprised of the following:

	Successor								Predecessor
	2011								2010								2009
(In millions)	Before- tax Amount			Taxes		After- tax Amount			Before- tax Amount			Taxes		After- tax Amount			Before- tax Amount			Taxes		After- tax Amount
Prior service (cost) credit from plan amendment during period	$	(1	)	$	–	$	(1	)	$	8		$	–	$	8		$	–		$	–	$	–
Amortization or curtailment recognition of prior service credit included in net periodic benefit cost		(1	)		–		(1	)		–			–		–			(15	)		–		(15	)
Change in unamortized prior service costs and credits during period		(2	)		–		(2	)		8			–		8			(15	)		–		(15	)
Net actuarial loss arising during period		(447	)		127		(320	)		(606	)		–		(606	)		(176	)		–		(176	)
Amortization or settlement recognition of net actuarial loss		3			–		3			8			–		8			–			–		–
Change in unamortized actuarial gains and losses during period		(444	)		127		(317	)		(598	)		–		(598	)		(176	)		–		(176	)
Comprehensive loss associated with pension and OPEB plans including noncontrolling interests		(446	)		127		(319	)		(590	)		–		(590	)		(191	)		–		(191	)
Less:   Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests:
Net actuarial loss arising during period		8			–		8			–			–		–			–			–		–
Comprehensive loss associated with pension and OPEB plans attributable to noncontrolling interests		8			–		8			–			–		–			–			–		–
Comprehensive loss associated with pension and OPEB plans attributable to AbitibiBowater Inc.	$	(438	)	$	127	$	(311	)	$	(590	)	$	–	$	(590	)	$	(191	)	$	–	$	(191	)

XML

Inventories, Net (Details) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Inventories, Net
Inventories, net	$ 475	$ 438
Lower of Cost or Market [Member]
Inventories, Net
Raw materials and work in process	152
Finished goods	168
Mill stores and other supplies	155
Inventories, net	475
Fair Value [Member]
Inventories, Net
Raw materials and work in process		146
Finished goods		184
Mill stores and other supplies		108
Inventories, net		$ 438

XML

Amortizable Intangible Assets, Net

12 Months Ended

Dec. 31, 2011

Amortizable Intangible Assets, Net [Abstract]

Amortizable Intangible Assets, Net

Note 4. Amortizable Intangible Assets, Net

Amortizable intangible assets, net as of December 31, 2011 and 2010 were comprised of water rights:

	Successor
(In millions)	2011			2010
Gross carrying value	$	19		$	19
Accumulated amortization		(1	)		–
Net	$	18		$	19

In order to operate our hydroelectric generating facilities, we draw water from various rivers in Canada. The use of such government-owned waters is governed by water power leases/agreements with the Canadian provinces, which set out the terms, conditions and fees (as applicable). Terms of these agreements typically range from 10 to 50 years and are generally renewable, under certain conditions, for additional terms. In certain circumstances, water rights are granted without expiration dates. In some cases, the agreements are contingent on the continued operation of the related paper mill and a minimum level of capital spending in the region. We have assigned the Successor Company’s water rights an expected useful life of 40 years, which corresponds to the related hydroelectric power plants’ expected useful lives.

The province of Quebec informed us on December 30, 2011 that it intended to terminate one of our water rights agreements and to require us to transfer property of the associated installation to the province for no consideration. The termination and transfer would be effective as of March 2, 2012. See Note 12, “Fixed Assets, Net,” for additional information. At this time, we believe that the remaining useful life of the assets remains unchanged, as we continue pursuing the renewal of our water rights at the facility. The carrying value of the intangible assets associated with the Jim-Gray installation as of December 31, 2011 was approximately $6 million. If we are unable to renew the water rights at this facility, we will reevaluate the remaining useful life of these assets, which may result in accelerated amortization charges in the first quarter of 2012.

Amortization expense related to amortizable intangible assets for the years ended December 31, 2011, 2010 and 2009 was approximately $1 million, $19 million and $25 million, respectively. Amortization expense related to amortizable intangible assets is estimated to be approximately less than $1 million per year for each of the next five years (excluding any accelerated amortization charges that may be required in the first quarter of 2012, as discussed above).

XML

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Activity in the environmental liabilities

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	8		$	27
Additions		–			37
Payments		(1	)		(2	)
Reduction due to sale of mill		(1	)		–
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(38	)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings		–			(15	)
Transfer from liabilities associated with assets held for sale		–			2
Other		–			(3	)
End of year (Successor)	$	6		$	8

XML

Income Taxes (Details 4) (Successor [Member], USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 U.S. federal [Member]	Dec. 31, 2011 State and Local Jurisdiction [Member]	Dec. 31, 2011 Canada [Member]	Dec. 31, 2011 Quebec Canada [Member]	Dec. 31, 2011 Canada Federal and Non-Quebec [Member]	Dec. 31, 2011 Other Loss Carryforwards [Member]
Balance of most significant tax attributes and their dates of expiration
Ordinary loss carryforwards	$ 716	$ 598	$ 542	$ 70		$ 33	$ 53	$ 18
Operating Loss Carryforwards, Expiration Dates			2020 – 2031	2014 – 2031		2014 – 2030	2014 – 2030	Various
Capital loss carryforwards	447	371	446					1
Capital Loss Carry Forwards Expiration Dates			2014					Various
Research and development expense pool	265	264				102	163
Research and development expense pool, Expiration Dates						Indefinite	Indefinite
Tax credit carryforwards	$ 167	$ 220			$ 134			$ 33
Tax credit carryforward, expiration dates					2018-2030			Various

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Use of estimates

In preparing our consolidated financial statements in accordance with U.S. GAAP, management is required to make accounting estimates based on assumptions, judgments and projections of future results of operations and cash flows. These estimates and assumptions affect the reported amounts of revenues and expenses during the periods presented and the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements. The most critical estimates relate to the assumptions underlying the benefit obligations of our pension and other postretirement (“OPEB”) benefit plans, the recoverability of deferred income tax assets and the carrying values of our long-lived assets. Estimates, assumptions and judgments are based on a number of factors, including historical experience, recent events, existing conditions, internal budgets and forecasts, projections obtained from industry research firms and other data that management believes are reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions or conditions.

Fresh start accounting

As discussed in Note 1, “Organization and Basis of Presentation – Basis of presentation,” we applied fresh start accounting as of the December 31, 2010 Convenience Date. Under fresh start accounting, the reorganization value, as derived from the enterprise value established in the Plans of Reorganization, was allocated to our assets and liabilities based on their fair values (except for deferred income taxes and pension and OPEB benefit obligations) in accordance with FASB ASC 805, “Business Combinations,” with the excess of net asset values over the reorganization value recorded as an adjustment to equity. The amount of deferred income taxes recorded was determined in accordance with FASB ASC 740, “Income Taxes” (“FASB ASC 740”). The amount of pension and OPEB benefit obligations recorded was determined in accordance with FASB ASC 715, “Compensation – Retirement Benefits.” Therefore, all assets and liabilities reflected in our Consolidated Balance Sheet as of December 31, 2010 were recorded at fair value or, for deferred income taxes and pension and OPEB benefit obligations, in accordance with the respective accounting policy described below. Except for the impact of the application of fresh start accounting on the carrying values of our assets and liabilities as of December 31, 2010, our assets and liabilities as of December 31, 2011 are accounted for based on the significant accounting policies described below.

Cash and cash equivalents

Cash and cash equivalents generally consist of direct obligations of the U.S. and Canadian governments and their agencies, demand deposits and other short-term, highly liquid securities with a maturity of three months or less from the date of purchase.

Accounts receivable

Accounts receivable are recorded at cost, net of an allowance for doubtful accounts that is based on expected collectibility, and such carrying value approximates fair value.

Monetization of notes receivable

We monetized notes receivable using qualified special purpose entities (“QSPEs”) set up in accordance with FASB ASC 860, “Transfers and Servicing” (“FASB ASC 860”). The QSPEs that were established for note monetization purposes have not been consolidated within our financial statements. Our retained interest consists principally of the net excess cash flows (the difference between the interest received on the notes receivable and the interest paid on the debt issued by the QSPE to third parties) and a cash reserve account established at inception. Fair value of our retained interest was estimated based on the present value of future excess cash flows to be received over the life of the notes using management’s best estimate of key assumptions, including credit risk and discount rates. Our retained interest is included in “Other assets” in our Consolidated Balance Sheets. Excess cash flows revert to us on a quarterly or semi-annual basis. The balance of the cash reserve accounts, if any, reverts to us at the maturity date of the QSPE third-party debt.

Inventories

Inventories are stated at the lower of cost or market value using the average cost method. Cost includes labor, materials and production overhead, which is based on the normal capacity of our production facilities. Unallocated overhead, including production overhead associated with abnormal production levels, is recognized in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations when incurred.

Assets held for sale and liabilities associated with assets held for sale

Assets held for sale, net of liabilities associated with assets held for sale, are carried in our Consolidated Balance Sheets at the lower of carrying value or fair value less costs to sell. We cease recording depreciation and amortization when assets are classified as held for sale.

Fixed assets, including timber and timberlands

Fixed assets acquired by the Predecessor Company are stated at their December 31, 2010 carrying values less accumulated depreciation for the current year. Fixed assets acquired by the Successor Company are stated at acquisition cost less accumulated depreciation. The cost of the fixed assets is reduced by any investment tax credits or government capital grants received. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Repair and maintenance costs, including those associated with planned major maintenance, are expensed as incurred. We capitalize interest on borrowings during the construction period of major capital projects as part of the related asset and amortize the capitalized interest into earnings over the related asset’s remaining useful life. We also capitalize costs related to the acquisition of timber and timberlands and subsequent costs incurred for the planting and growing of timber. The cost generally includes the acquisition cost of land and timber, site preparation and other costs. These costs, excluding land, are expensed at the time the timber is harvested, based on annually determined depletion rates, and are included in “Depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. Growth and yield models are used to estimate timber volume on our land from year to year. These volumes affect the depletion rates, which are calculated annually based on the capitalized costs and the total timber volume based on the current stage of the growth cycle.

Asset retirement obligations

We record an asset and a liability equal to the fair value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists; life of the long-lived asset is determinable; and a reasonable estimate of fair value can be made, even if the timing and/or settlement of the obligation is conditional on a future event that may or may not be within our control. Fair value is established using the discounted cash flow method. The liability is accreted to recognize the passage of time using a credit adjusted risk-free interest rate, and the asset is depreciated over the life of the related equipment or facility. The asset and liability are subsequently adjusted for changes in the amount or timing of the estimated costs.

Environmental costs

We expense environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. These costs are included in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. Expenditures that extend the life of the related property are capitalized. We determine our liability on a site-by-site basis and record a liability at the time it is probable and can be reasonably estimated. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable.

Amortizable intangible assets

Amortizable intangible assets are stated at their December 31, 2010 carrying value less accumulated amortization. Amortization of the water rights is provided on a straight-line basis over the estimated useful life of the assets. Intangible assets are grouped with the related long-lived assets when tested for impairment, as described below.

Impairment of long-lived assets

The unit of accounting for impairment testing for long-lived assets is its group, which includes fixed assets, amortizable intangible assets and liabilities directly related to those assets, such as asset retirement obligations (herein defined as “asset group”). For asset groups that are held and used, that group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other asset groups. For asset groups that are to be disposed of by sale or otherwise, that group represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction.

Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value of an asset group may no longer be recoverable. The recoverability of an asset group that is held and used is tested by comparing the carrying value of the asset group to the sum of the estimated undiscounted future cash flows expected to be generated by that asset group. In estimating the undiscounted future cash flows, we use projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the asset group. If there are multiple plausible scenarios for the use and eventual disposition of an asset group, we assess the likelihood of each scenario occurring in order to determine a probability-weighted estimate of the undiscounted future cash flows. The principal assumptions include periods of operation, projections of product pricing, production levels and sales volumes, product costs, market supply and demand, foreign exchange rates, inflation and projected capital spending. Changes in any of these assumptions could have a material effect on the estimated undiscounted future cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment loss is recognized in the amount that the asset group’s carrying value exceeds its fair value. The fair value of a long-lived asset group is determined in accordance with our accounting policy for fair value measurements, as discussed below. If it is determined that the carrying value of an asset group is recoverable, we review and adjust, as necessary, the estimated useful lives of the assets in the group.

When an asset group meets the criteria for classification as an asset held for sale, an impairment charge is recognized, if necessary, based on the excess of the asset group’s carrying value over the expected net proceeds from the sale (the estimated fair value minus the estimated costs to sell).

Asset groups to be disposed of other than by sale are classified as held and used until the asset group is disposed or use of the asset group has ceased.

Income taxes

Deferred income tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates applicable when temporary differences and carryforwards are expected to be recovered or settled. Valuation allowances are recognized to reduce deferred income tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, we consider estimates of future taxable income and tax planning strategies. We have not provided for U.S. income taxes on the undistributed earnings of certain of our foreign subsidiaries, as we have specific plans for the reinvestment of such earnings. We recognize interest and penalties accrued related to unrecognized tax benefits as components of income tax expense.

Pension and OPEB benefit obligations

For our defined benefit plans, we recognize an asset or a liability for pension and OPEB benefit obligations net of the fair value of plan assets. An asset is recognized for a plan’s over-funded status and a liability is recognized for a plan’s under-funded status. Changes in the funding status that have not been recognized in our net periodic benefit costs are reflected as an adjustment to our “Accumulated other comprehensive loss” in our Consolidated Balance Sheets. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and OPEB benefits. Amounts we contribute to our defined contribution plans are expensed as incurred.

Fair value measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date, and is based on our principal or most advantageous market for the specific asset or liability. We consider the risk of non-performance of the obligor, which in some cases reflects our own credit risk, in determining fair value. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” we categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. This fair value hierarchy is as follows:

Level  1  –   Valuations based on quoted prices in active markets for identical assets and liabilities.

Level  2  –   Valuations based on observable inputs, other than Level 1 prices, such as quoted interest or currency exchange rates.

Level  3  –   Valuations based on significant unobservable inputs that are supported by little or no market activity, such as discounted cash flow methodologies based on internal cash flow forecasts.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used in the determination of fair value of our assets and liabilities, when required, maximize the use of observable inputs and minimize the use of unobservable inputs.

Share-based compensation

We amortize the fair value of our stock incentive awards over the requisite service period using the straight-line attribution approach. The requisite service period is reduced for those employees who are retirement eligible at the date of the grant or who will become retirement eligible during the vesting period and who will be entitled to continue vesting in their entire award upon retirement. The fair value of stock options is determined using a Black-Scholes option pricing formula, and the fair value of restricted stock units (“RSUs”) and deferred stock units (“DSUs”) is determined based on the market price of a share of AbitibiBowater Inc. common stock on the grant date. We estimate forfeitures of stock incentive awards based on historical experience and recognize compensation cost only for those awards expected to vest. Estimated forfeitures are updated to reflect new information or actual experience, as it becomes available.

The additional paid-in capital (“APIC”) pool represents the excess tax benefits related to share-based compensation that are available to absorb future tax deficiencies. If the amount of future tax deficiencies is greater than the available APIC pool, we record the excess as income tax expense in our Consolidated Statements of Operations. For the year ended December 31, 2011, the APIC pool was not sufficient to cover the nominal amount of tax deficiencies recorded. For the years ended December 31, 2010 and 2009, we had a sufficient APIC pool to cover any tax deficiencies recorded; as a result, these deficiencies did not affect our results of operations. The APIC pool was reset to zero as of December 31, 2010 as a result of the application of fresh start accounting.

We classify the cash flows resulting from the tax benefit that arise from the exercise of stock options and the vesting of RSUs and DSUs that exceed the compensation cost recognized (excess tax benefits) as financing cash flows.

Revenue recognition

Pulp, paper and wood products delivered to our customers in the United States and Canada directly from our mills by either truck or rail are sold with the terms free on board (“FOB”) shipping point. For these sales, revenue is recorded when the product leaves the mill. Pulp and paper products delivered to our international customers by ship are sold with international shipping terms. For these sales, revenue is recorded when risk of loss and title of the product passes to the customer. Sales are reported net of allowances and rebates, and the following criteria must be met before they are recognized: persuasive evidence of an arrangement exists, delivery has occurred and we have no remaining obligations, prices are fixed or determinable and collectibility is reasonably assured.

Income (loss) per share

We calculate basic net income (loss) per share attributable to AbitibiBowater Inc. common shareholders by dividing our net income (loss) by the weighted-average number of outstanding common shares, including outstanding exchangeable shares of the Predecessor Company in 2009 and 2010. We calculate diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders by dividing our net income (loss), as adjusted in 2009 and 2010 for the assumed conversion of the pre-petition convertible notes, by the weighted-average number of outstanding common shares, including outstanding exchangeable shares of the Predecessor Company in 2009 and 2010, as adjusted for the incremental shares attributable to the dilutive effects of potentially dilutive securities (such as the pre-petition convertible notes, stock options, RSUs and DSUs). The incremental shares are calculated using the “if converted” method (pre-petition convertible notes) or the treasury stock method (stock options, RSUs and DSUs).

Translation

The functional currency of the majority of our operations is the U.S. dollar. However, some of these operations maintain their books and records in their local currency in accordance with certain statutory requirements. Non-monetary assets and liabilities of these operations and the related income and expense items such as depreciation and amortization are remeasured into U.S. dollars using historical exchange rates. Remaining assets and liabilities are remeasured into U.S. dollars using the exchange rates as of the balance sheet date. Remaining income and expense items are remeasured into U.S. dollars using an average exchange rate for the period. Gains and losses from foreign currency transactions and from remeasurement of the balance sheet are reported as “Other expense, net” in our Consolidated Statements of Operations.

The functional currency of all other operations is their local currency. Assets and liabilities of these operations are translated into U.S. dollars at the exchange rates in effect as of the balance sheet dates. Income and expense items are translated at average daily or monthly exchange rates for the period. The resulting translation gains or losses are recognized as a component of equity in “Accumulated other comprehensive loss.”

Distribution costs

Shipping and handling costs represent costs associated with shipping products to customers and handling finished goods. Such costs are included in “Distribution costs” in our Consolidated Statements of Operations.

Creditor Protection Proceedings

As discussed in Note 1, “Organization and Basis of Presentation – Basis of presentation,” during the Creditor Protection Proceedings, we applied the guidance in FASB ASC 852, which requires that financial statements distinguish transactions and events that are directly associated with the reorganization process from the ongoing operations of the business.

Reorganization items, net

FASB ASC 852 requires separate disclosure of reorganization items such as certain expenses, provisions for losses and other charges and credits directly associated with or resulting from the reorganization and restructuring of the business that were realized or incurred during the Creditor Protection Proceedings, including the impact of the implementation of the Plans of Reorganization and the application of fresh start accounting. As a result, during the Creditor Protection Proceedings, all charges related to the commencement of an indefinite idling or permanent closure of a mill or a paper machine subsequent to the commencement of the Creditor Protection Proceedings were recorded in “Reorganization items, net,” whereas all charges related to the commencement of an indefinite idling or permanent closure of a mill or a paper machine prior to the commencement of the Creditor Protection Proceedings were recorded in “Closure costs, impairment and other related charges,” both in our Consolidated Statements of Operations. The recognition of Reorganization items, net, unless specifically prescribed otherwise by FASB ASC 852, was in accordance with other applicable U.S. GAAP, including accounting for impairments of long-lived assets, accelerated depreciation, severance and termination benefits and costs associated with exit and disposal activities (including costs incurred in a restructuring).

Interest expense

During the Creditor Protection Proceedings, we recorded interest expense on our pre-petition debt obligations only to the extent that: (i) interest would be paid during the Creditor Protection Proceedings or (ii) it was probable that interest would be an allowed priority, secured, or unsecured claim.

XML

Creditor Protection Proceedings

12 Months Ended

Dec. 31, 2011

Creditor Protection Proceedings

Note 3. Creditor Protection Proceedings

Emergence from Creditor Protection Proceedings

AbitibiBowater Inc. and all but one of its debtor affiliates (as discussed below) successfully emerged from creditor protection proceedings under Chapter 11 of the United States Bankruptcy Code, as amended (“Chapter 11”) and the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”), as applicable (collectively, the “Creditor Protection Proceedings”) on December 9, 2010 (the “Emergence Date”). The following is a brief history of the Creditor Protection Proceedings.

On April 16, 2009 and December 21, 2009, AbitibiBowater Inc. and certain of its U.S. and Canadian subsidiaries filed voluntary petitions (collectively, the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “U.S. Court”) for relief under the provisions of Chapter 11. In addition, on April 17, 2009, certain of AbitibiBowater Inc.’s Canadian subsidiaries sought creditor protection (the “CCAA Proceedings”) under the CCAA with the Superior Court of Quebec in Canada (the “Canadian Court”). On April 17, 2009, certain of AbitibiBowater Inc.’s Canadian subsidiaries filed voluntary petitions for provisional and final relief (the “Chapter 15 Cases”) in the U.S. Court under the provisions of Chapter 15 of the United States Bankruptcy Code, as amended, to obtain recognition and enforcement in the United States of certain relief granted in the CCAA Proceedings and also on that date, AbitibiBowater Inc. and certain of its subsidiaries in the Chapter 11 Cases obtained orders under Section 18.6 of the CCAA in respect thereof (the “18.6 Proceedings”). The Chapter 11 Cases, the Chapter 15 Cases, the CCAA Proceedings and the 18.6 Proceedings are collectively referred to as the “Creditor Protection Proceedings.” The entities that were subject to the Creditor Protection Proceedings are referred to herein as the “Debtors.” The U.S. Court and the Canadian Court are collectively referred to as the “Courts.” Our wholly-owned subsidiary that operates our Mokpo, South Korea operations and almost all of our less than wholly-owned subsidiaries operated outside of the Creditor Protection Proceedings.

In the third quarter of 2010, the creditors under the Creditor Protection Proceedings, with one exception, voted in the requisite numbers to approve the respective Plan of Reorganization (as defined below). Creditors of Bowater Canada Finance Corporation (“BCFC”), an indirect, wholly-owned subsidiary of ours, did not vote in the requisite numbers to approve the Plans of Reorganization (as defined below). Accordingly, we did not seek sanction of the CCAA Plan of Reorganization and Compromise (the “CCAA Reorganization Plan”) or confirmation of the Debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Reorganization Plan” and, together with the CCAA Reorganization Plan, the “Plans of Reorganization” and each, a “Plan of Reorganization”) with respect to BCFC. See Note 20, “Commitments and Contingencies – BCFC Bankruptcy and Insolvency Act filing,” for information regarding BCFC’s Bankruptcy and Insolvency Act filing on December 31, 2010 and our deconsolidation of BCFC as of December 31, 2010. The Plans of Reorganization became effective on the Emergence Date.

Upon implementation of the Plans of Reorganization, the Debtors were reorganized through the consummation of several transactions pursuant to which, among other things:

• each of the Debtors’ operations were continued in substantially the same form;

• all allowed pre-petition and post-petition secured claims, administrative expense claims and priority claims were paid in full in cash, including accrued interest, if applicable, and all pre-petition and post-petition secured credit facilities were terminated;

• all outstanding receivable interests sold under our accounts receivable securitization program were repurchased in cash for a price equal to the par amount thereof and the program was terminated;

• holders of allowed claims arising from the Debtors’ pre-petition unsecured indebtedness received their pro rata share of common stock issued by us on account of their claims;

• holders of pre-petition unsecured claims with individual claim amounts of $5,000 or less (or reduced to that amount) were paid in cash in an amount equal to 50% of their claim amount, but under certain circumstances, these claim holders were treated instead like all other holders of claims arising from pre-petition unsecured liabilities and received shares of common stock issued by us on account of their claims;

• all equity interests in the Predecessor Company existing immediately prior to the Emergence Date, including, among other things, all of our common stock issued and outstanding, were discharged, canceled, released and extinguished;

• AbitibiBowater Inc. issued an aggregate of 97,134,954 shares of Successor Company common stock, par value $0.001 per share, for the benefit of unsecured creditors of the Debtors in the Creditor Protection Proceedings, and distributed 73,752,881 of those shares in December 2010 to the holders of unsecured claims as of the applicable distribution record date on account of allowed unsecured creditor claims;

• various equity incentive and other employee benefit plans came into effect, including the AbitibiBowater Inc. 2010 Equity Incentive Plan, pursuant to which 8.5% of common stock on a fully diluted basis (or 9,020,960 shares) was reserved for issuance to eligible persons, of which awards representing not more than 4% (or 4,245,158 shares) were to be made approximately 30 days after the Emergence Date;

• the Debtors’ obligations to fund the prior service costs related to their pension and OPEB benefit plans were reinstated prospectively;

• the Debtors’ assets were retained by, and were reinvested in, the Successor Company;

• AbitibiBowater Inc. assumed by merger the obligations of ABI Escrow Corporation with respect to $850 million in aggregate principal amount of 10.25% senior secured notes due 2018, as further discussed in Note 16, “Liquidity and Debt”; and

• we entered into the ABL Credit Facility, as defined and further discussed in Note 16, “Liquidity and Debt.”

From the 97,134,954 shares of Successor Company common stock issued for claims in the Creditor Protection Proceedings, we established a reserve of 23,382,073 shares for claims that remained in dispute as of the Emergence Date, from which we have made and will make supplemental interim distributions to unsecured creditors as disputed claims are resolved. As of December 31, 2011, there were 19,719,565 shares remaining in this reserve. The remaining claims are claims that we believe should be disallowed because they are duplicative, without merit, overstated or should be disallowed for other reasons. We have made significant progress in addressing the claims that remained in dispute at the time of our emergence from the substantial number and amount of claims filed during the Creditor Protection Proceedings. The majority of the remaining disputed claims will be disposed through ongoing litigation before the U.S. Court or a claims officer appointed by the Canadian Court. The ultimate completion of the claims resolution process could therefore take some time to complete. We may be required to settle certain disputed claims in cash under certain specific circumstances. As such, included in “Accounts payable and accrued liabilities” in our Consolidated Balance Sheets as of December 31, 2011 and 2010 is a liability of $11 million and $35 million, respectively, for the estimated cash settlement of such claims. To the extent there are shares remaining after all disputed claims have been resolved, these shares will be reallocated ratably among unsecured creditors with allowed claims in the Creditor Protection Proceedings pursuant to the Plans of Reorganization.

The common stock of the Successor Company began trading under the symbol “ABH” on both the New York Stock Exchange (the “NYSE”) and the Toronto Stock Exchange (the “TSX”) on December 10, 2010. See Note 21, “Share Capital,” for additional information.

Events prior to emergence from Creditor Protection Proceedings

During the Creditor Protection Proceedings, we remained in possession of our assets and properties and operated our business and managed our properties as “debtors in possession” under the jurisdiction of the Courts and in accordance with the applicable provisions of Chapter 11 and the CCAA. In general, the Debtors were authorized to operate as ongoing businesses, but could not engage in transactions outside the ordinary course of business without the approval of the applicable Court(s) or Ernst & Young Inc. (which, under the terms of a Canadian Court order, served as the court-appointed monitor under the CCAA Proceedings (the “Monitor”)), as applicable.

Subject to certain exceptions under Chapter 11 and the CCAA, our filings and orders of the Canadian Court automatically enjoined, or stayed, the continuation of any judicial or administrative proceedings or other actions against us and our property to recover, collect or secure a claim arising prior to the filing of the Creditor Protection Proceedings. Chapter 11 and orders of the Canadian Court gave us the ability to reject certain contracts, subject to Court oversight. We engaged in a review of our various agreements and rejected and repudiated a number of unfavorable agreements and leases, including leases of real estate and equipment. The creditors affected by these actions were given the opportunity to file proofs of claims in the Creditor Protection Proceedings.

The NYSE and the TSX delisted the Predecessor Company’s common stock at the opening of business on May 21, 2009 and the close of market on May 15, 2009, respectively. During the Creditor Protection Proceedings, the Predecessor Company’s common stock traded in the over-the-counter market and was quoted on the Pink Sheets Quotation Service and on the OTC Bulletin Board under the symbol “ABWTQ.” In addition, the TSX delisted the exchangeable shares of our former indirect wholly-owned subsidiary, AbitibiBowater Canada Inc., at the close of market on May 15, 2009.

Reorganization items, net

Reorganization items, net for the years ended December 31, 2010 and 2009 were comprised of the following:

	Predecessor
(In millions)	2010			2009
Professional fees (1)	$	154		$	106
Gain due to Plans of Reorganization adjustments (2)		(3,553	)		–
Loss due to fresh start accounting adjustments (3)		362			–
Provision for repudiated or rejected executory contracts (4)		121			225
Charges related to indefinite idlings and permanent closures (5)		307			242
Gains on disposition of assets (6) (11)		(70	)		–
Write-off of debt discounts, premiums and issuance costs (7)		666			–
Revaluation of debt due to currency exchange (8)		546			–
Reversal of post-petition accrued interest on certain debt obligations (9)		(447	)		–
Gain on deconsolidation of BPCL (10)		(26	)		–
Gain on deconsolidation of a variable interest entity (“VIE”) (11)		(16	)		–
Debtor in possession financing costs (12)		10			31
Other (13)		45			35
	$	(1,901	)	$	639

⁽¹⁾  Professional fees directly related to the Creditor Protection Proceedings and the establishment of the Plans of Reorganization, including legal, accounting and other professional fees, as well as professional fees incurred by our creditors. Additionally, pursuant to the Plans of Reorganization, as part of our exit financing, we had initially planned to conduct a rights offering for the issuance of convertible senior subordinated notes to holders of eligible unsecured claims. We entered into a backstop commitment agreement that provided for the purchase by certain investors of the convertible notes to the extent that the rights offering would have been under-subscribed. On September 21, 2010, we announced that we had elected not to pursue the rights offering. In 2010, we recorded the backstop commitment agreement termination fee of $15 million, which was paid on the Emergence Date. One of the parties to the backstop commitment agreement was Fairfax Financial Holdings Limited (“Fairfax”).

⁽²⁾  Represented the effects of the implementation of the Plans of Reorganization, including, among other things: (i) the gain on extinguishment of the Predecessor Company’s liabilities subject to compromise, (ii) the gain on the settlement of the North American Free Trade Agreement (“NAFTA”) claim (the receipt of which was contingent upon our emergence from the Creditor Protection Proceedings) related to the December 2008 expropriation of certain of our assets and rights in the province of Newfoundland and Labrador by the provincial government and (iii) professional fees that were contractually due to certain professionals as “success” fees upon our emergence from the Creditor Protection Proceedings.

⁽³⁾  Represented, among other things, adjustments to the carrying values of our assets and liabilities to reflect their fair values and the elimination of the Predecessor Company’s additional paid-in capital, deficit and accumulated other comprehensive loss as a result of the application of fresh start accounting.

⁽⁴⁾  Represented provision for estimated claims arising from repudiated or rejected executory contracts, as well as supply contracts and equipment leases.

⁽⁵⁾  In 2010, represented charges primarily related to: (i) the indefinite idling of our Saint-Fulgence, Quebec and Petit Saguenay, Quebec sawmills; (ii) the indefinite idling of our Gatineau, Quebec paper mill (for which we announced its permanent closure later in the year); (iii) the indefinite idling of a de-inking line and paper machine at our Thorold, Ontario paper mill; (iv) the permanent closure of a paper machine at our Coosa Pines, Alabama paper mill and a paper machine at our Thorold paper mill and (iv) an impairment charge related to our Lufkin, Texas paper mill to reduce the carrying value of the assets to their estimated fair value prior to the sale of these assets. In 2009, represented charges related to the indefinite idling of various paper mills and paper machines located in Canada, as well as the permanent closure of a sawmill in the United States and a chipping operation in Quebec, Canada. The fair value of all impaired assets was determined based on their estimated sale or salvage values. Such charges for the years ended December 31, 2010 and 2009 were comprised of the following:

	Predecessor
(In millions)	2010		2009
Accelerated depreciation	$	251	$	51
Long-lived asset impairment		10		130
Severance and pension curtailment		29		32
Write-downs of inventory		17		17
Other		–		12
	$	307	$	242

⁽⁶⁾  Represented gains on the disposition of various mills and other assets as part of our work toward a comprehensive restructuring plan, including the write-off of related asset retirement obligations. Such gains for the year ended December 31, 2010 included our Mackenzie, British Columbia paper mill and sawmills, four previously permanently closed paper mills that were bundled and sold together, our Westover, Alabama sawmill, our recycling division’s material recycling facilities located in Arlington, Houston and San Antonio, Texas, our Albertville, Alabama sawmill, our Covington, Tennessee paper mill and various other assets, all of which we sold for proceeds of $80 million.

⁽⁷⁾  FASB ASC 852 requires that debt discounts and premiums, as well as debt issuance costs, be viewed as part of the valuation of the related pre-petition debt in arriving at the net carrying amount of the debt. When the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Courts’ approval of the respective Plan of Reorganization (which included the approval of allowed debt claims), we adjusted the net carrying amount of the Debtors’ debt obligations to the allowed amount of the claims, which resulted in a write-off of the unamortized balance of debt discounts, premiums and issuance costs.

⁽⁸⁾  For purposes of determining the amounts of allowed unsecured claims, claims filed against a CCAA filer or Chapter 11 filer denominated in a currency other than the local currency are to be translated to Canadian dollars and U.S. dollars, respectively, using the exchange rate in effect as of the date of the commencement of the Creditor Protection Proceedings for all Chapter 11 claims and for CCAA claims that existed as of the filing date, or the exchange rate in effect as of the date of the notice or event that gave rise to the claim for CCAA claims that arose after the filing date (the “fixed exchange rate”). The majority of our CCAA filers’ pre-petition unsecured debt obligations were denominated in U.S. dollars. As noted above, when the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the Canadian Court’s sanction of the CCAA Reorganization Plan (which included the approval of allowed debt claims), we adjusted the CCAA filers’ pre-petition unsecured debt obligations to the allowed amount of the claims, which resulted in a revaluation to reflect the impact of the fixed exchange rate.

⁽⁹⁾  In 2010 and 2009, we had recorded post-petition accrued interest on the CCAA filers’ pre-petition unsecured debt obligations based on the expectation that such accrued interest would be a permitted claim under the CCAA Proceedings. However, pursuant to the CCAA Reorganization Plan sanctioned by the Canadian Court, the CCAA filers’ pre-petition unsecured debt obligations did not include the amount of such post-petition accrued interest for distribution purposes and therefore, such accrued interest was then accounted for as not having been approved as a permitted claim. Accordingly, in the third quarter of 2010, we reversed such post-petition accrued interest as a Reorganization item and ceased accruing interest on the CCAA filers’ pre-petition unsecured debt obligations.

⁽¹⁰⁾  As discussed in Note 1, “Organization and Basis of Presentation – Bridgewater Administration,” we are no longer consolidating BPCL in our consolidated financial statements. Upon the deconsolidation of BPCL, we derecognized our negative investment in BPCL, which resulted in a gain.

⁽¹¹⁾  During the second quarter of 2010, a subsidiary that was a VIE that we had been consolidating was placed into receivership. As a result, we lost control over and the ability to influence this VIE’s operations and were no longer the primary beneficiary of this VIE. Therefore, we are no longer consolidating this VIE in our consolidated financial statements. Upon the deconsolidation of this VIE, we derecognized our negative investment in this VIE, which resulted in a gain. Additionally, in the fourth quarter of 2010, we transferred assets and liabilities associated with certain Canadian properties to this VIE. Upon the transfer of these properties to this VIE and the assumption of the associated liabilities by this VIE, we lost control of the assets transferred and were no longer primarily responsible for the liabilities transferred and therefore deconsolidated these properties, which resulted in a gain on disposition of assets.

⁽¹²⁾  Debtor in possession financing costs were recorded in 2010 in connection with an amendment, two extensions and an exit fee related to one of our debtor in possession financing arrangements, as well as an amendment to our former accounts receivable securitization program. Debtor in possession financing costs were incurred in 2009 in connection with entering into our debtor in possession financing arrangements and our former amended and restated accounts receivable securitization program. For additional information, see Note 16, “Liquidity and Debt.”

⁽¹³⁾  In 2010, “Other” primarily included: (i) the write-off of environmental liabilities related to our Newfoundland and Labrador properties that were expropriated and for which no claim was filed against us in the Creditor Protection Proceedings; (ii) charges related to our estimated liability for an environmental claim filed against us by the current owner of a site previously owned by one of our subsidiaries; (iii) employee termination charges resulting from our work toward a comprehensive restructuring plan related to a workforce reduction at our Catawba, South Carolina paper mill and the departure of our former Chief Executive Officer and (iv) additional claim amounts recorded as a result of the claims reconciliation process. In 2009, “Other” primarily included: (i) charges for reserves for certain pre-petition receivables and (ii) impairment charges to reduce our retained interest in three QSPEs to zero (for further information, reference is made to Note 17, “Monetization of Timber Notes”). “Other” for both periods also included interest income.

In 2010 and 2009, we paid $210 million and $104 million, respectively, relating to reorganization items, which were comprised of: (i) professional fees of $139 million and $73 million, respectively, (ii) debtor in possession financing costs of $10 and $31 million, respectively, (iii) the backstop commitment agreement termination fee of $15 million in 2010 discussed above and (iv) exit financing costs of $46 million in 2010. Payments relating to professional fees and the backstop commitment agreement termination fee were included in cash flows from operating activities and payments relating to debtor in possession financing costs and exit financing costs were included in cash flows from financing activities in our Consolidated Statements of Cash Flows. Additionally, the receipt of the NAFTA settlement discussed above of $130 million in 2010 was included in cash flows from operating activities in our Consolidated Statements of Cash Flows.

Parent Company [Member]

Creditor Protection Proceedings

Note B. Creditor Protection Proceedings Related Disclosures

Reorganization items, net

FASB ASC 852 requires separate disclosure of reorganization items such as certain expenses, provisions for losses and other charges and credits directly associated with or resulting from the reorganization and restructuring of the business that were realized or incurred during the Creditor Protection Proceedings, including the impact of the implementation of the Plans of Reorganization and the application of fresh start accounting. The recognition of Reorganization items, net, unless specifically prescribed otherwise by FASB ASC 852, was in accordance with other applicable U.S. GAAP.

Reorganization items, net for the years ended December 31, 2010 and 2009 were comprised of the following:

	Predecessor
(In millions)	2010			2009
Professional fees (1)	$	18		$	–
Gain due to Plans of Reorganization adjustments (2)		(160	)		–
Loss due to fresh start accounting adjustments (3)		82			–
Provision for repudiated or rejected executory contracts		5			2
Write-off of debt discounts and issuance costs (4)		103			–
Post-petition interest on note payable to a subsidiary (Note E)		134			–
Other		3			–
	$	185		$	2

⁽¹⁾ Professional fees directly related to the Creditor Protection Proceedings. Additionally, pursuant to the Plans of Reorganization, as part of our exit financing, we had initially planned to conduct a rights offering for the issuance of convertible senior subordinated notes to holders of eligible unsecured claims. We entered into a backstop commitment agreement that provided for the purchase by certain investors of the convertible notes to the extent that the rights offering would have been under-subscribed. On September 21, 2010, we announced that we had elected not to pursue the rights offering. In 2010, we recorded the backstop commitment agreement termination fee of $15 million, which was paid by Bowater on our behalf on the Emergence Date (see Note E, “Transactions with Related Parties”).

⁽²⁾  Represented the effects of the implementation of the Plans of Reorganization, which consisted of the gain on extinguishment of the Predecessor Company’s liabilities subject to compromise, net of professional fees that were contractually due to certain professionals as “success” fees upon our emergence from the Creditor Protection Proceedings.

⁽³⁾  Represented adjustments to the carrying values of our assets and liabilities to reflect their fair values as a result of the application of fresh start accounting and consisted of: (i) the write-off of deferred financing costs associated with the 2018 Notes and (ii) the premium recorded on the 2018 Notes (see Note D, “Financing Arrangements”).

⁽⁴⁾  FASB ASC 852 requires that debt discounts and premiums, as well as debt issuance costs, be viewed as part of the valuation of the related pre-petition debt in arriving at the net carrying amount of the debt. When the debt becomes an allowed claim and the allowed claim differs from the net carrying amount of the debt, the recorded debt obligations should be adjusted to the amount of the allowed claim. In 2010, pursuant to the U.S. Court’s approval of the Chapter 11 Reorganization Plan (which included the approval of allowed debt claims), we adjusted the net carrying amount of the pre-petition convertible notes to the allowed amount of the claim, which resulted in a write-off of the unamortized balance of the debt discount and issuance costs.

In 2010 and 2009, we paid no amounts relating to reorganization items (see Note E, “Transactions with Related Parties,” for additional information).

Interest expense

Interest expense recorded in our Condensed Statements of Operations and Retained Earnings (Deficit) totaled $153 million in 2011, $26 million in 2010 (which included interest accrued on the 2018 Notes in the fourth quarter of 2010, as well as catch up interest expense on a note payable to a subsidiary of $5 million, as further discussed in Note E, “Transactions with Related Parties”) and $40 million in 2009. The increase in interest expense in 2011 compared to 2010 was primarily due to a full year of interest expense in 2011 on the 2018 Notes, as well as a full year of interest in 2011 recorded in interest expense on an intercompany note payable (see Note E, “Transactions with Related Parties,” for additional information). The decrease in interest expense in 2010 compared to 2009 was a result of ceasing to accrue interest on our pre-petition debt obligations. In accordance with FASB ASC 852, during the Creditor Protection Proceedings, we recorded interest expense on our pre-petition debt obligations only to the extent that: (i) interest would be paid during the Creditor Protection Proceedings or (ii) it was probable that interest would be an allowed priority, secured or unsecured claim. Since neither of these conditions applied to our pre-petition debt obligations, we ceased accruing interest on our pre-petition debt obligations. Contractual interest expense was $142 million in both 2010 and 2009.

XML

Transactions with Related Parties (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended			12 Months Ended							1 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2008	Dec. 31, 2011	Dec. 31, 2011 Parent Company [Member]	Dec. 31, 2010 Parent Company [Member]	Dec. 31, 2009 Parent Company [Member]	Dec. 31, 2008 Parent Company [Member]	Dec. 31, 2011 AbiBow U S [Member]	Dec. 31, 2010 AbiBow U S [Member]	Dec. 31, 2011 Donohue [Member]	May 31, 2008 Bowater [Member] Parent Company [Member]	Dec. 31, 2011 Bowater [Member] Parent Company [Member]	Dec. 31, 2010 Bowater [Member] Parent Company [Member]	Dec. 31, 2009 Bowater [Member] Parent Company [Member]
Transactions with Related Parties (Textual) [Abstract]
Interest rate of notes											12.50%
Related party transaction, amount of promissory note											$ 650
Pre-petition interest on promissory note														24
Catch up interest related to promissory note													139
Catch up interest on promissory note, before emergence date													134
Catch up interest expense on note payable to a subsidiary													5
Interest Expense, Debt												81
Note and interest payable to a subsidiary			0									945	864
Proceeds from convertible note							350
Loan to subsidiary		350
Prepetition Interest on loan to subsidiary						13
Reserve on outstanding note and accrued interest						378
Selling, general and administrative expenses allocation from subsidiaries				23	27	23
Debt redemption principal payment								264
Income tax benefit				63	8	32
Payment of interest on redemption of debt								85
Repayment of principal on redemption of promissory note								90
Payment of interest on redemption of promissory note								2
Reorganization items									45
Payment of backstop commitment termination fee	15				15				15
Exit financing costs									27
Other									3
Issuance of unregistered common stock to subsidiary	17,010,728				17,010,728
Fair value of unregistered common stock issued in exchange to subsidiary										335
Payment of premium on redemption of debt								$ 10

XML

Closure Costs, Impairment and Other Related Charges

12 Months Ended

Dec. 31, 2011

Restructuring And Related Activities [Abstract]

Closure Costs, Impairment and Other Related Charges

Note 5. Closure Costs, Impairment and Other Related Charges

Closure costs, impairment and other related charges for the years ended December 31, 2011, 2010 and 2009 were comprised of the following:

	Successor		Predecessor
(In millions)	2011		2010		2009
Impairment of long-lived assets	$	16	$	2	$	87
Accelerated depreciation		8		–		21
Impairment of assets held for sale		–		–		84
Contractual obligations and other commitments		–		8		–
Severance and other costs		22		1		10
	$	46	$	11	$	202

Impairment of long-lived assets

In 2011, we recorded long-lived asset impairment charges of $6 million related to our Mokpo paper mill, $3 million related to certain scrapped equipment at our Calhoun, Tennessee paper mill and $7 million as a result of the decision to cease paperboard production at our Coosa Pines paper mill to reduce the carrying value of the assets to their estimated fair value, which was determined based on the assets’ estimated sale or salvage values.

In 2010, we recorded long-lived asset impairment charges of $2 million related to our previously permanently closed Covington facility to further reduce the carrying value of the assets to their estimated fair value, which was determined based on the mill’s estimated sales value.

In 2009, upon review of the recoverability of certain of our indefinitely idled newsprint mill assets following a steep decline in market demand in early 2009, we recorded a long-lived asset impairment charge of $85 million. The fair value of these assets was determined based on their estimated sale or salvage values. In 2009, we also recorded long-lived asset impairment charges, primarily related to two previously permanently closed mills, which we bundled and sold together in 2010 with two other previously permanently closed mills, to further reduce the carrying value of their assets to their current estimated fair value, which was determined based on their estimated sales values.

Accelerated depreciation

In 2011, we recorded accelerated depreciation charges of $3 million related to the permanent closure of a paper machine at our Kenogami, Quebec paper mill, $1 million related to the permanent closure of our Saint-Prime, Quebec remanufacturing wood products facility, $1 million related to the permanent closure of a de-inking line at our Alma, Quebec paper mill, $2 million related to the permanent closure of a paper machine and a thermomechanical pulp line at our Baie-Comeau, Quebec paper mill and $1 million as a result of the decision to cease paperboard production at our Coosa Pines paper mill.

In 2009, we reviewed the remaining useful lives of two paper machines at our Calhoun newsprint mill and concluded that the estimated remaining useful lives should be reduced to zero. Accordingly, we recorded accelerated depreciation charges of $21 million to reduce their carrying values to their estimated salvage values of zero.

Impairment of assets held for sale

In 2009, we recorded long-lived asset impairment charges of $84 million related to the assets held for sale for our interest in MPCo to reduce the carrying value of our investment in MPCo to its current fair value less costs to sell to reflect the terms of the final sale and actual costs to sell. The sale of MPCo was completed in the fourth quarter of 2009.

Contractual obligations and other commitments

In 2010, we recorded an $8 million tax indemnification liability related to the 2009 sale of our investment in MPCo (see Note 20, “Commitments and Contingencies – Other representations, warranties and indemnifications”).

Severance and other costs

In 2011, we recorded $5 million of severance costs and a $2 million pension plan curtailment loss related to the permanent closure of a paper machine at our Kenogami paper mill, $3 million of severance costs and a $3 million pension plan curtailment loss related to a workforce reduction at our Mersey operations in Nova Scotia, $3 million of severance costs for an early retirement severance program for employees at our Mokpo paper mill and $3 million of severance costs and a $3 million OPEB plan curtailment loss as a result of the decision to cease paperboard production at our Coosa Pines paper mill.

In 2010, we recorded $1 million in severance and other costs, primarily for miscellaneous adjustments to severance liabilities and asset retirement obligations, as well as other costs, primarily for a lawsuit related to a closed mill.

In 2009, we recorded severance and other costs related to the permanent closures of our Westover sawmill and Goodwater, Alabama planer mill operations and the continued idling of our Alabama River, Alabama newsprint mill.

XML

Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2011 (Successor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	3,141		$	3,154		$	(1,539	)	$	4,756
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,684			2,445			(1,539	)		3,590
Depreciation, amortization and cost of timber harvested		–			90			130			–			220
Distribution costs		–			157			390			–			547
Selling, general and administrative expenses		27			58			73			–			158
Closure costs, impairment and other related charges		–			18			28			–			46
Net gain on disposition of assets and other		–			(2	)		(1	)		–			(3	)
Operating (loss) income		(27	)		136			89			–			198
Interest expense		(153	)		(7	)		(18	)		83			(95	)
Other income (expense), net		6			71			(42	)		(83	)		(48	)
Parent’s equity in income of subsidiaries		152			–			–			(152	)		–
(Loss) income before income taxes		(22	)		200			29			(152	)		55
Income tax benefit (provision)		63			(86	)		7			–			(16	)
Net income including noncontrolling interests		41			114			36			(152	)		39
Net loss attributable to noncontrolling interests		–			–			2			–			2
Net income attributable to AbitibiBowater Inc.	$	41		$	114		$	38		$	(152	)	$	41

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2010 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	2,761		$	3,393		$	(1,408	)	$	4,746
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,389			2,743			(1,408	)		3,724
Depreciation, amortization and cost of timber harvested		–			133			360			–			493
Distribution costs		–			134			419			–			553
Selling, general and administrative expenses		34			36			85			–			155
Reserve for receivables from subsidiaries		(32	)		–			–			32			–
Closure costs, impairment and other related charges		–			2			9			–			11
Net gain on disposition of assets and other		–			(13	)		(17	)		–			(30	)
Operating (loss) income		(2	)		80			(206	)		(32	)		(160	)
Interest expense		(26	)		(96	)		(371	)		10			(483	)
Other (expense) income, net		(1	)		66			29			(183	)		(89	)
Parent’s equity in income of subsidiaries		1,652			–			–			(1,652	)		–
Income (loss) before reorganization items and income taxes		1,623			50			(548	)		(1,857	)		(732	)
Reorganization items, net		(185	)		1,274			4,848			(4,036	)		1,901
Income (loss) before income taxes		1,438			1,324			4,300			(5,893	)		1,169
Income tax benefit (provision)		8			461			1,145			(8	)		1,606
Net income (loss) including noncontrolling interests		1,446			1,785			5,445			(5,901	)		2,775
Net income attributable to noncontrolling interests		–			–			(161	)		–			(161	)
Net income (loss) attributable to AbitibiBowater Inc.	$	1,446		$	1,785		$	5,284		$	(5,901	)	$	2,614

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2009 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Sales	$	–		$	2,519		$	3,222		$	(1,375	)	$	4,366
Costs and expenses:
Cost of sales, excluding depreciation, amortization and cost of timber harvested		–			2,052			2,666			(1,375	)		3,343
Depreciation, amortization and cost of timber harvested		–			147			455			–			602
Distribution costs		–			120			367			–			487
Selling, general and administrative expenses		29			74			95			–			198
Reserve for receivables from subsidiaries		410			299			–			(709	)		–
Closure costs, impairment and other related charges		–			111			91			–			202
Net gain on disposition of assets and other		–			(13	)		(78	)		–			(91	)
Operating (loss) income		(439	)		(271	)		(374	)		709			(375	)
Interest expense		(40	)		(136	)		(464	)		43			(597	)
Other income (expense), net		12			38			(78	)		(43	)		(71	)
Parent’s equity in loss of subsidiaries		–			–			–			–			–
(Loss) income before reorganization items and income taxes		(467	)		(369	)		(916	)		709			(1,043	)
Reorganization items, net		(2	)		(193	)		(444	)		–			(639	)
(Loss) income before income taxes		(469	)		(562	)		(1,360	)		709			(1,682	)
Income tax (provision) benefit		–			(24	)		146			–			122
Net (loss) income including noncontrolling interests		(469	)		(586	)		(1,214	)		709			(1,560	)
Net loss attributable to noncontrolling interests		–			–			7			–			7
Net (loss) income attributable to AbitibiBowater Inc.	$	(469	)	$	(586	)	$	(1,207	)	$	709		$	(1,553	)

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2011 (Successor)

(In millions)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	–	$	128	$	241	$	–		$	369
Accounts receivable, net		–		349		401		–			750
Accounts receivable from affiliates		–		70		302		(372	)		–
Inventories, net		–		172		303		–			475
Assets held for sale		–		–		7		–			7
Deferred income tax assets		–		27		82		–			109
Note and interest receivable from parent		–		945		–		(945	)		–
Note receivable from affiliate		–		11		–		(11	)		–
Other current assets		–		16		43		–			59
Total current assets		–		1,718		1,379		(1,328	)		1,769
Fixed assets, net		–		938		1,564		–			2,502
Amortizable intangible assets, net		–		–		18		–			18
Deferred income tax assets		–		524		1,225		–			1,749
Note receivable from affiliate		–		3		–		(3	)		–
Investments in and advances to consolidated subsidiaries		5,565		2,360		–		(7,925	)		–
Other assets		–		27		128		105			260
Total assets	$	5,565	$	5,570	$	4,314	$	(9,151	)	$	6,298
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities	$	15	$	166	$	363	$	–		$	544
Accounts payable to affiliates		232		27		–		(259	)		–
Note and interest payable to a subsidiary		945		–		–		(945	)		–
Note payable to affiliate		–		–		11		(11	)		–
Total current liabilities		1,192		193		374		(1,215	)		544
Long-term debt		621		–		–		–			621
Long-term debt due to affiliate		–		–		3		(3	)		–
Pension and other postretirement benefit obligations		–		475		1,049		–			1,524
Deferred income tax liabilities		–		–		75		–			75
Other long-term liabilities		–		34		23		–			57
Total liabilities		1,813		702		1,524		(1,218	)		2,821
Total equity		3,752		4,868		2,790		(7,933	)		3,477
Total liabilities and equity		5,565	$	5,570	$	4,314	$	(9,151	)	$	6,298

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2010 (Successor)

(In millions)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	–	$	164	$	155	$	–		$	319
Accounts receivable		–		348		485		–			833
Accounts receivable from affiliates		40		–		287		(327	)		–
Inventories		–		158		280		–			438
Assets held for sale		–		15		683		–			698
Deferred income tax assets		–		31		16		–			47
Note and interest receivable from parent		–		864		–		(864	)		–
Note receivable from affiliate		–		10		–		(10	)		–
Other current assets		–		25		63		–			88
Total current assets		40		1,615		1,969		(1,201	)		2,423
Fixed assets		–		858		1,783		–			2,641
Amortizable intangible assets		–		–		19		–			19
Deferred income tax assets		–		439		1,297		–			1,736
Note receivable from affiliate		–		30		–		(30	)		–
Investments in and advances to consolidated subsidiaries		5,977		2,933		–		(8,910	)		–
Other assets		–		34		168		114			316
Total assets	$	6,017	$	5,909	$	5,236	$	(10,027	)	$	7,135
Liabilities and equity
Current liabilities:
Accounts payable and accrued liabilities	$	26	$	175	$	346	$	–		$	547
Accounts payable to affiliates		178		99		–		(277	)		–
Note and interest payable to a subsidiary		864		–		–		(864	)		–
Note payable to affiliate		–		–		10		(10	)		–
Liabilities associated with assets held for sale		–		–		289		–			289
Total current liabilities		1,068		274		645		(1,151	)		836
Long-term debt		905		–		–		–			905
Long-term debt due to affiliate		–		–		30		(30	)		–
Pension and other postretirement benefit obligations		–		362		910		–			1,272
Deferred income tax liabilities		–		–		72		–			72
Other long-term liabilities		–		32		31		–			63
Total liabilities		1,973		668		1,688		(1,181	)		3,148
Total equity		4,044		5,241		3,548		(8,846	)		3,987
Total liabilities and equity	$	6,017	$	5,909	$	5,236	$	(10,027	)	$	7,135

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011 (Successor)

(In millions)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments		Consolidated
Net cash provided by operating activities	$	–	$	188		$	10		$	–	$	198
Cash flows from investing activities:
Cash invested in fixed assets		–		(30	)		(67	)		–		(97	)
Disposition of investment in ACH		–		–			296			–		296
Disposition of other assets		–		11			8			–		19
Proceeds from holdback related to disposition of investment in MPCo		–		–			29			–		29
Proceeds from insurance settlements		–		–			8			–		8
Increase in restricted cash		–		–			(2	)		–		(2	)
Increase in deposit requirements for letters of credit, net		–		–			(8	)		–		(8	)
Advances from (to) affiliate		–		150			(150	)		–		–
Net cash provided by investing activities		–		131			114			–		245
Cash flows from financing activities:
Dividends and distribution to noncontrolling interests		–		–			(21	)		–		(21	)
Acquisition of noncontrolling interest		–		–			(15	)		–		(15	)
Payments of long-term debt		–		(354	)		–			–		(354	)
Payment of credit facility fees		–		(1	)		(2	)		–		(3	)
Net cash used in financing activities		–		(355	)		(38	)		–		(393	)
Net (decrease) increase in cash and cash equivalents		–		(36	)		86			–		50
Cash and cash equivalents:
Beginning of year		–		164			155			–		319
End of year	$	–	$	128		$	241		$	–	$	369

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2010 (Predecessor)

(In millions)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	–		$	168		$	(129	)	$	–		$	39
Cash flows from investing activities:
Cash invested in fixed assets		–			(19	)		(62	)		–			(81	)
Disposition of assets		–			43			53			–			96
Decrease in restricted cash		–			12			64			–			76
Collections on note receivable from affiliate		–			21			–			(21	)		–
Increase in deposit requirements for letters of credit, net		–			–			(3	)		–			(3	)
Release of pension trust assets		–			8			–			–			8
Investment in and advances (to) from affiliates		(850	)		100			750			–			–
Net cash (used in) provided by investing activities		(850	)		165			802			(21	)		96
Cash flows from financing activities:
Decrease in secured borrowings, net		–			(141	)		–			–			(141	)
Debtor in possession financing costs		–			(9	)		(1	)		–			(10	)
Payments of debtor in possession financing		–			(166	)		(40	)		–			(206	)
Term loan repayments		–			–			(347	)		–			(347	)
Short-term financing, net		–			(204	)		(134	)		–			(338	)
Payments of note payable to affiliate		–			–			(21	)		21			–
Issuance of long-term debt		850			–			–			–			850
Payments of long-term debt		–			(34	)		(300	)		–			(334	)
Payments of financing and credit facility fees		–			(33	)		(13	)		–			(46	)
Net cash provided by (used in) financing activities		850			(587	)		(856	)		21			(572	)
Net decrease in cash and cash equivalents		–			(254	)		(183	)		–			(437	)
Cash and cash equivalents:
Beginning of year		–			418			338			–			756
End of year (Successor)	$	–		$	164		$	155		$	–		$	319

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2009 (Predecessor)

(In millions)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	–	$	323		$	(277	)	$	–		$	46
Cash flows from investing activities:
Cash invested in fixed assets		–		(28	)		(73	)		–			(101	)
Disposition of investment in MPCo		–		–			554			–			554
Disposition of other assets		–		16			103			–			119
Increase in restricted cash		–		(12	)		(130	)		–			(142	)
Collections on note receivable from affiliate		–		15			–			(15	)		–
Decrease in deposit requirements for letters of credit, net		–		–			49			–			49
Cash received in monetization of derivative financial instruments		–		–			5			–			5
Net cash (used in) provided by investing activities		–		(9	)		508			(15	)		484
Cash flows from financing activities:
Cash dividends to noncontrolling interests		–		–			(7	)		–			(7	)
Debtor in possession financing		–		166			95			–			261
Debtor in possession financing costs		–		(23	)		(8	)		–			(31	)
Payment of debtor in possession financing		–		–			(55	)		–			(55	)
Short-term financing, net		–		(74	)		67			–			(7	)
Payments of note payable to affiliate		–		–			(15	)		15			–
Payments of long-term debt		–		(1	)		(117	)		–			(118	)
Payments of financing and credit facility fees		–		(8	)		(1	)		–			(9	)
Net cash provided by (used in) financing activities		–		60			(41	)		15			34
Net increase in cash and cash equivalents		–		374			190			–			564
Cash and cash equivalents:
Beginning of year		–		44			148			–			192
End of year	$	–	$	418		$	338		$	–		$	756

XML

Timberland and Operating Leases and Purchase Obligations (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Summary of operating leases and commitments for purchase obligations
Operating Leases, Net, 2012	$ 7
Operating Leases, Net, 2013	6
Operating Leases, Net, 2014	4
Operating Leases, Net, 2015	4
Operating Leases, Net, 2016	6
Operating Leases, Net, Thereafter	6
Operating Leases, Net, Total	33
Purchase Obligations, 2012	34
Purchase Obligations, 2013	21
Purchase Obligations, 2014	18
Purchase Obligations, 2015	14
Purchase Obligations, 2016	13
Purchase Obligations, Thereafter	162
Purchase Obligations, Total	262
Timberland Leases [Member]
Summary of operating leases and commitments for purchase obligations
Operating Leases, Net, 2012	0
Operating Leases, Net, 2013	0
Operating Leases, Net, 2014	0
Operating Leases, Net, 2015	0
Operating Leases, Net, 2016	0
Operating Leases, Net, Thereafter	2
Operating Leases, Net, Total	$ 2

XML

Inventories Net (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 31, 2011 Successor	Mar. 31, 2011 Successor	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Inventories Net (Textual) [Abstract]
Write-downs of inventory	$ 2	$ 1	$ 3		$ 17
Write-downs of inventory recorded in Reorganization items, net				$ 17	$ 17

XML

Organization and Basis of Presentation (Details)	Dec. 31, 2011
Forest Products Mauricie L.P. [Member]
Summary of exception in wholly-owned consolidated subsidiaries
Consolidated Subsidiary, Abitibibowater Ownership	93.20%
Partner Ownership	6.80%
Calhoun Newsprint Company ("CNC") [Member]
Summary of exception in wholly-owned consolidated subsidiaries
Consolidated Subsidiary, Abitibibowater Ownership	51.00%
Partner Ownership	49.00%
Bowater Mersey Paper Company Limited [Member]
Summary of exception in wholly-owned consolidated subsidiaries
Consolidated Subsidiary, Abitibibowater Ownership	51.00%
Partner Ownership	49.00%
Donohue Malbaie Inc. [Member]
Summary of exception in wholly-owned consolidated subsidiaries
Consolidated Subsidiary, Abitibibowater Ownership	51.00%
Partner Ownership	49.00%

XML

Pension and Other Postretirement Benefit Plans (Details 8) (Successor [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	$ 5,259	$ 5,422
U S Equity Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	760	978
Foreign Equity securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	911	1,093
Corporate and government securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	3,031	2,861
Asset-backed Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	165	114
Bank Loans/Foreign Annuities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	44	44
Real Estate [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	39	42
Cash and Cash Equivalents [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	271	242
Accrued Interest and Dividends [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	38	48
Level 1 [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	1,781	2,050
Level 1 [Member] | U S Equity Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	760	946
Level 1 [Member] | Foreign Equity securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	651	775
Level 1 [Member] | Corporate and government securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	99	87
Level 1 [Member] | Asset-backed Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 1 [Member] | Bank Loans/Foreign Annuities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 1 [Member] | Real Estate [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 1 [Member] | Cash and Cash Equivalents [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	271	242
Level 1 [Member] | Accrued Interest and Dividends [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 2 [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	3,395	3,286
Level 2 [Member] | U S Equity Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	0	32
Level 2 [Member] | Foreign Equity securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	260	318
Level 2 [Member] | Corporate and government securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	2,932	2,774
Level 2 [Member] | Asset-backed Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	165	114
Level 2 [Member] | Bank Loans/Foreign Annuities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 2 [Member] | Real Estate [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 2 [Member] | Cash and Cash Equivalents [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 2 [Member] | Accrued Interest and Dividends [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	38	48
Level 3 [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	83	86
Level 3 [Member] | U S Equity Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 3 [Member] | Foreign Equity securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 3 [Member] | Corporate and government securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 3 [Member] | Asset-backed Securities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 3 [Member] | Bank Loans/Foreign Annuities [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	44	44
Level 3 [Member] | Real Estate [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets	39	42
Level 3 [Member] | Cash and Cash Equivalents [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		0
Level 3 [Member] | Accrued Interest and Dividends [Member]
The fair value of plan assets held by the pension plans
Defined benefit plan fair value of plan assets		$ 0

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment reporting information

(In millions)	Newsprint			Coated Papers		Specialty Papers			Market Pulp (1)		Wood Products			Corporate and Other			Consolidated Total
Sales
2011 (Successor)	$	1,816		$	538	$	1,275		$	659	$	468		$	–		$	4,756
2010 (Predecessor)		1,804			482		1,321			715		424			–			4,746
2009 (Predecessor)		1,802			416		1,331			518		290			9			4,366
Depreciation, amortization and cost of timber harvested
2011 (Successor)	$	73		$	35	$	49		$	30	$	33		$	–		$	220
2010 (Predecessor)		225			30		128			49		42			19			493
2009 (Predecessor)		291			28		151			52		49			31			602
Operating income (loss) (2)
2011 (Successor)	$	89		$	57	$	62		$	85	$	(25	)	$	(70	)	$	198
2010 (Predecessor)		(171	)		31		(44	)		137		9			(122	)		(160	)
2009 (Predecessor) (3)		(353	)		89		85			112		(56	)		(252	)		(375	)
Capital expenditures
2011 (Successor)	$	34		$	4	$	15		$	12	$	20		$	12		$	97
2010 (Predecessor)		26			4		34			7		9			1			81
2009 (Predecessor)		36			3		43			9		9			1			101
Assets
2011 (Successor)	$	–		$	–	$	–		$	–	$	–		$	6,298		$	6,298
2010 (Successor)		43			15		52			37		37			6,951			7,135
2009 (Predecessor)		74			65		46			28		42			6,857			7,112

⁽¹⁾  For the years ended December 31, 2011, 2010 and 2009, market pulp sales excluded inter-segment sales of $33 million, $46 million and $34 million, respectively.

⁽²⁾  Corporate and other operating loss for the years ended December 31, 2011, 2010 and 2009 included the following special items:

	Successor			Predecessor
(In millions)	2011			2010			2009
Net gain on disposition of assets and other	$	3		$	30		$	91
Closure costs, impairment and other related charges		(46	)		(11	)		(202	)
Write-downs of inventory		(3	)		–			(17	)
Employee termination (costs) credit		(12	)		8			(2	)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.		(5	)		–			–
Reversal of previously recorded Canadian capital tax liabilities due to new legislation		–			–			16
Fees for unsuccessful refinancing efforts		–			–			(10	)
	$	(63	)	$	27		$	(124	)

⁽³⁾ For the year ended December 31, 2009, operating income (loss) for newsprint, coated papers, specialty papers and market pulp included $15 million, $62 million, $34 million and $165 million, respectively, for the alternative fuel mixture tax credits. See Note 24, “Alternative Fuel Mixture Tax Credits,” for additional information.

Summary of Special Items included in Corporate and Other operating loss

	Successor			Predecessor
(In millions)	2011			2010			2009
Net gain on disposition of assets and other	$	3		$	30		$	91
Closure costs, impairment and other related charges		(46	)		(11	)		(202	)
Write-downs of inventory		(3	)		–			(17	)
Employee termination (costs) credit		(12	)		8			(2	)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.		(5	)		–			–
Reversal of previously recorded Canadian capital tax liabilities due to new legislation		–			–			16
Fees for unsuccessful refinancing efforts		–			–			(10	)
	$	(63	)	$	27		$	(124	)

Summary of sales by countries based on location of customers

	Successor		Predecessor
(In millions)	2011		2010		2009
United States	$	2,859	$	2,775	$	2,852
Foreign countries:
Canada		636		703		508
Brazil		166		156		118
Mexico		151		166		93
Italy		106		128		83
Korea		88		36		88
United Kingdom		68		73		188
India		60		96		34
Other countries		622		613		402
		1,897		1,971		1,514
	$	4,756	$	4,746	$	4,366

Summary of long-lived assets, excluding goodwill, intangible assets and deferred tax assets, by country

	Successor				Predecessor
(In millions)	2011		2010		2009
United States	$	1,110	$	1,189	$	1,449
Foreign countries:
Canada		1,629		1,736		2,785
Korea		23		32		102
United Kingdom		–		–		78
		1,652		1,768		2,965
	$	2,762	$	2,957	$	4,414

XML

Liquidity and Debt (Details)	3 Months Ended	12 Months Ended						12 Months Ended			1 Months Ended	3 Months Ended	12 Months Ended				12 Months Ended										12 Months Ended
	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2011 CAD	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2009 CAD	Dec. 31, 2010 CAD	Dec. 31, 2011 Promissory Note to ANC [Member] USD ($)	Dec. 31, 2009 Senior Secured Notes Due 2011 [Member] USD ($)	Dec. 09, 2009 Senior Secured Notes Due 2011 [Member] USD ($)	Oct. 04, 2010 Senior Secured Notes Due 2018 [Member] USD ($)	Dec. 31, 2011 Senior Secured Notes Due 2018 [Member] USD ($)	Dec. 31, 2011 Senior Secured Notes Due 2018 [Member] USD ($)	Dec. 31, 2010 Senior Secured Notes Due 2018 [Member] USD ($)	Dec. 31, 2010 Bowater DIP Agreement [Member] USD ($)	Dec. 31, 2009 Bowater DIP Agreement [Member] USD ($)	Dec. 31, 2009 Abitibi DIP Agreement [Member] USD ($)	Dec. 31, 2011 ABL Credit Facility [Member] USD ($)	Dec. 31, 2010 ABL Credit Facility [Member] USD ($) Entity	Dec. 31, 2011 ABL Credit Facility [Member] Letter of Credit [Member] USD ($)	Dec. 31, 2011 ABL Credit Facility [Member] Swingline [Member] Swingline sub-facility [Member] USD ($)	Dec. 31, 2010 ULC DIP Facility [Member] USD ($)	Dec. 31, 2010 ULC DIP Facility [Member] CAD	Dec. 09, 2009 ULC DIP Facility [Member] USD ($)	Dec. 09, 2009 ULC DIP Facility [Member] CAD	Dec. 31, 2011 Borrowers [Member] USD ($)	Dec. 31, 2011 U S Borrowers [Member] USD ($)	Dec. 31, 2011 U S Borrowers [Member] ABL Credit Facility [Member]	Dec. 31, 2011 Canadian borrower [Member] USD ($)	Dec. 31, 2011 Canadian borrower [Member] ABL Credit Facility [Member]	Dec. 31, 2010 ACH Limited Partnership [Member] USD ($)	Dec. 31, 2011 Federal fund rate [Member]	Dec. 31, 2011 Agents rate for certificates of deposit [Member]	Dec. 31, 2011 Euro dollar rate [Member]	Dec. 31, 2011 Euro dollar rate [Member] ABL Credit Facility [Member] Maximum [Member]	Dec. 31, 2011 Euro dollar rate [Member] ABL Credit Facility [Member] Minimum [Member]	Dec. 31, 2010 Bankers Acceptance Rate Borrowings [Member] ABL Credit Facility [Member] Maximum [Member]	Dec. 31, 2010 Bankers Acceptance Rate Borrowings [Member] ABL Credit Facility [Member] Minimum [Member]	Dec. 31, 2011 Base Rate [Member] ABL Credit Facility [Member] Maximum [Member]	Dec. 31, 2011 Base Rate [Member] ABL Credit Facility [Member] Minimum [Member]	Dec. 31, 2010 Canadian prime rate borrowings [Member] ABL Credit Facility [Member] Maximum [Member]	Dec. 31, 2010 Canadian prime rate borrowings [Member] ABL Credit Facility [Member] Minimum [Member]
Debt Instrument [Line Items]
Cash and cash equivalents		$ 369,000,000
Available borrowing capacity																		515,000,000									280,000,000		235,000,000
Redemption of principal amount									113,000,000			85,000,000
Redemption of principal amount from sale of ACH	179,000,000							90,000,000					179,000,000
Total long-term debt in ACH partnership																															280,000,000
Payment of accrued interest										72,000,000
Debtor in possession borrowings																206,000,000	55,000,000
Debtor in possession repayment of principal amount of loan at emergence															40,000,000
Proceeds from issuance of long-term debt											850,000,000
Aggregate principal amount of senior secured notes acquired from ABI Escrow Corporation upon emergence														850,000,000
Letter of credit sub facility borrowing capacity before amendment																				150,000,000
Swingline sub facility borrowing capacity before amendment																					20,000,000
Calculation of borrowing base for the ABL facility																												The sum of (i) 85% of eligible accounts receivable plus (ii) the lesser of 65% of eligible inventory or 85% of the net orderly liquidation value of eligible inventory, minus reserves established by the agent		The sum of (i) 85% of eligible accounts receivable plus (ii) the lesser of 65% of eligible inventory or 85% of the net orderly liquidation value of eligible inventory, minus reserves established by the agent
Percentage of eligible accounts receivable included in borrowing base																												85.00%		85.00%
Percentage of eligible inventory included in borrowing base																											65.00%		65.00%
Percentage of liquidation value of eligible inventory included in borrowing base																											85.00%		85.00%
Maximum percentage of total commitments to trigger a change in the unutilized commitment fee																		49.99%
Maximum unutilized commitment fee rate																		0.50%	0.75%
Initial Commitment fee																			0.75%
Minimum unutilized commitment fee rate																		0.38%	0.50%
Line of credit facility amount outstanding																		0
Letters of credit outstanding																				62,000,000
Maturity dates of debt													Oct. 15, 2018					Oct. 28, 2016
Repayments of borrowing on ABL facility																			100,000,000
Redemption price as percentage of principal prior to October 15, 2014													100.00%
Redemption price as percentage of principal amount during the twelve months beginning October 15, 2014													105.125%
Percentage of capital stock limit as security													65.00%
Redemption price as percentage of principal amount beginning October 15, 2016													100.00%
Redemption price as percentage of principal during the twelve months beginning on October 15, 2015													102.563%
Percentage of redemption of notes from proceeds of equity offerings													35.00%
Redemption price as percentage of principal before October 15, 2013 from proceeds from equity offerings													110.25%
Additional reserve against Canadian borrower of ABL facility																		0	286,000,000
Percentage of redemption of notes prior to October 15, 2013 per twelve-month period													10.00%
Liabilities associated with assets held for sale																															280,000,000
Redemption price percentage of the principal amount to be purchased if change in control exists													101.00%
Redemption price as percentage of principal prior to October 15, 2013													103.00%
Fair value of debt		649,000,000		1,200,000,000										905,000,000																	280,000,000
Fixed charge coverage criteria: Percentage of total commitments or borrowing base in effect																		12.50%	15.00%
Percentage of redemption price on principal amount from sale of assets within six months of emergence													105.00%	105.00%
Interest rate margin applicable to borrowings																																0.50%	0.50%	1.00%	2.25%	1.75%	3.25%	2.75%	1.25%	0.75%	2.25%	1.75%
Debtor in possession repayment of principal amount of loan															166,000,000		55,000,000
Carrying value of debt												621,000,000	621,000,000
ABL credit facility commitment amount		600,000,000																600,000,000		200,000,000	60,000,000					400,000,000	200,000,000
ABL credit facility uncommitted incremental loan borrowing capacity																		100,000,000
Premium on debt												35,000,000	35,000,000	55,000,000
Effective interest rate of debt												9.10%	9.10%
Fees incurred										5,000,000				27,000,000	6,000,000	14,000,000	6,000,000	3,000,000	19,000,000
Debtor in possession credit facility with related party maximum borrowing capacity																								218,000,000	230,000,000
Debtor in possession credit facility with related party borrowings																								123,000,000	130,000,000
Repayment of debtor in possession credit facility with related party																						129,000,000	130,000,000
Portion of payment of the Abitibi DIP Agreement made from the ULC DIP Facility					26,000,000
Gross proceeds from sale of interest in ACH		296,000,000	290,000,000
Gross cash proceeds for sale of interest in MPCo					583,000,000	615,000,000
Cash from sale of interest in MPCo reserved for indemnities and guarantees					267,000,000
Period from Emergence date when proceeds from sales of certain assets must be applied to debt repayment														6 months
Amount of proceeds from sales of certain assets to be applied first to debt repayment													100,000,000
Redemption price as percentage of principal from the sale of certain assets if proceeds are not used to pay certain debt or for capital expenditures													100.00%
Number of wholly-owned subsidiaries entering into ABL facility with AbitibiBowater Inc																			3
Fixed charge coverage ratio: minimum excess availability																		60,000,000
Borrowings under the credit facility																			100,000,000
Interest rate terms of credit facility																		At the Borrower’s option, the base rate, the Canadian prime rate or the Eurodollar rate, in each case plus an applicable margin.
Description of base interest rate																		The greater of: (i) the agent’s base rate, (ii) the Federal Funds rate plus 0.5%, (iii) the agent’s rate for certificates of deposit having a term of three months plus 0.5% or (iv) the Eurodollar rate for a one month interest period plus 1.0%
Conditions requiring minimum fixed charge coverage ratio																		Any time excess availability falls below the greater of: (i) $60 million and (ii) 12.5% of the lesser of (A) the total commitments and (B) the borrowing base then in effect	Any tiime excess availability fell below 15% of the total commitments then in effect
Minimum fixed charge coverage ratio required if excess availability falls below certain conditions																		100.00%	110.00%
Percentage of owned entity					60.00%	60.00%		52.50%																							75.00%
Principal amount of issued secured promissory note								90,000,000
Cash payment for purchase of minority interest in ANC								15,000,000
Liquidity and Debt (Textual) [Abstract]
Restricted cash		81,000,000	83,000,000	80,000,000			80,000,000
Contractual interest expense				714,000,000	788,000,000
Cumulative adjustment of accrued interest to reflect the fixed exchange rate for Canadian filers in Creditor Protection Proceedings				43,000,000
Interest expense		95,000,000		483,000,000	597,000,000
Carrying value of assets pledged as collateral		3,800,000,000
Accounts receivable from securitization amount outstanding maximum limit				180,000,000
Loss on sale of ownership interests in accounts receivable securitization program					17,000,000
Repayment of outstanding balance of secured borrowings of accounts receivable securitization program				120,000,000
Interest on the secured borrowings and commitment fees related to accounts receivable securitization program				11,000,000
Fees incurred amendments to accounts receivable securitization				4,000,000	11,000,000
Net gain on extinguishment of debt		6,000,000
Payment for taxes on MPCo transaction and for outstanding pre-petition invoices					67,000,000
Two-year cash holdback by buyer of MPCo				29,000,000
Proceeds from holdback related to disposition of investment in MPCo		29,000,000
Interest income from two year cash holdback by buyer of MPCo		$ 2,000,000

XML

Condensed Consolidating Financial Information (Details 1) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 369
Current liabilities:
Note and interest payable to a subsidiary	0
Successor [Member]
Current assets:
Cash and cash equivalents	369	319
Accounts receivable, net	750	833
Accounts receivable from affiliates	0	0
Inventories, net	475	438
Assets held for sale	7	698
Deferred income tax assets	109	47
Note and interest receivable from parent	0	0
Note receivable from affiliate	0	0
Other current assets	59	88
Total current assets	1,769	2,423
Fixed assets	2,502	2,641
Amortizable intangible assets, net	18	19
Deferred income tax assets	1,749	1,736
Note receivable from affiliate	0	0
Investments in and advances to consolidated subsidiaries	0	0
Other assets	260	316
Total assets	6,298	7,135
Current liabilities:
Accounts payable and accrued liabilities	544	547
Accounts payable to affiliates	0	0
Note and interest payable to a subsidiary		0
Note payable to affiliate	0	0
Liabilities associated with assets held for sale	0	289
Total current liabilities	544	836
Long-term debt	621	905
Long-term debt due to affiliates	0	0
Pension and other postretirement benefit obligations	1,524	1,272
Deferred income tax liabilities	75	72
Other long-term liabilities	57	63
Total liabilities	2,821	3,148
Total equity	3,477	3,987
Total liabilities and equity	6,298	7,135
Successor [Member] | Parent [Member]
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Accounts receivable from affiliates	0	40
Inventories, net	0	0
Assets held for sale	0	0
Deferred income tax assets	0	0
Note and interest receivable from parent	0	0
Note receivable from affiliate	0	0
Other current assets	0	0
Total current assets	0	40
Fixed assets	0	0
Amortizable intangible assets, net	0	0
Deferred income tax assets	0	0
Note receivable from affiliate	0	0
Investments in and advances to consolidated subsidiaries	5,565	5,977
Other assets	0	0
Total assets	5,565	6,017
Current liabilities:
Accounts payable and accrued liabilities	15	26
Accounts payable to affiliates	232	178
Note and interest payable to a subsidiary	945	864
Note payable to affiliate	0	0
Liabilities associated with assets held for sale		0
Total current liabilities	1,192	1,068
Long-term debt	621	905
Long-term debt due to affiliates	0	0
Pension and other postretirement benefit obligations	0	0
Deferred income tax liabilities	0	0
Other long-term liabilities	0	0
Total liabilities	1,813	1,973
Total equity	3,752	4,044
Total liabilities and equity	5,565	6,017
Successor [Member] | Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	128	164
Accounts receivable, net	349	348
Accounts receivable from affiliates	70	0
Inventories, net	172	158
Assets held for sale	0	15
Deferred income tax assets	27	31
Note and interest receivable from parent	945	864
Note receivable from affiliate	11	10
Other current assets	16	25
Total current assets	1,718	1,615
Fixed assets	938	858
Amortizable intangible assets, net	0	0
Deferred income tax assets	524	439
Note receivable from affiliate	3	30
Investments in and advances to consolidated subsidiaries	2,360	2,933
Other assets	27	34
Total assets	5,570	5,909
Current liabilities:
Accounts payable and accrued liabilities	166	175
Accounts payable to affiliates	27	99
Note and interest payable to a subsidiary	0	0
Note payable to affiliate	0	0
Liabilities associated with assets held for sale		0
Total current liabilities	193	274
Long-term debt	0	0
Long-term debt due to affiliates	0	0
Pension and other postretirement benefit obligations	475	362
Deferred income tax liabilities	0	0
Other long-term liabilities	34	32
Total liabilities	702	668
Total equity	4,868	5,241
Total liabilities and equity	5,570	5,909
Successor [Member] | Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	241	155
Accounts receivable, net	401	485
Accounts receivable from affiliates	302	287
Inventories, net	303	280
Assets held for sale	7	683
Deferred income tax assets	82	16
Note and interest receivable from parent	0	0
Note receivable from affiliate	0	0
Other current assets	43	63
Total current assets	1,379	1,969
Fixed assets	1,564	1,783
Amortizable intangible assets, net	18	19
Deferred income tax assets	1,225	1,297
Note receivable from affiliate	0	0
Investments in and advances to consolidated subsidiaries	0	0
Other assets	128	168
Total assets	4,314	5,236
Current liabilities:
Accounts payable and accrued liabilities	363	346
Accounts payable to affiliates	0	0
Note and interest payable to a subsidiary	0	0
Note payable to affiliate	11	10
Liabilities associated with assets held for sale		289
Total current liabilities	374	645
Long-term debt	0	0
Long-term debt due to affiliates	3	30
Pension and other postretirement benefit obligations	1,049	910
Deferred income tax liabilities	75	72
Other long-term liabilities	23	31
Total liabilities	1,524	1,688
Total equity	2,790	3,548
Total liabilities and equity	4,314	5,236
Successor [Member] | Consolidating Adjustments [Member]
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Accounts receivable from affiliates	(372)	(327)
Inventories, net	0	0
Assets held for sale	0	0
Deferred income tax assets	0	0
Note and interest receivable from parent	(945)	(864)
Note receivable from affiliate	(11)	(10)
Other current assets	0	0
Total current assets	(1,328)	(1,201)
Fixed assets	0	0
Amortizable intangible assets, net	0	0
Deferred income tax assets	0	0
Note receivable from affiliate	(3)	(30)
Investments in and advances to consolidated subsidiaries	(7,925)	(8,910)
Other assets	105	114
Total assets	(9,151)	(10,027)
Current liabilities:
Accounts payable and accrued liabilities	0	0
Accounts payable to affiliates	(259)	(277)
Note and interest payable to a subsidiary	(945)	(864)
Note payable to affiliate	(11)	(10)
Liabilities associated with assets held for sale		0
Total current liabilities	(1,215)	(1,151)
Long-term debt	0	0
Long-term debt due to affiliates	(3)	(30)
Pension and other postretirement benefit obligations	0	0
Deferred income tax liabilities	0	0
Other long-term liabilities	0	0
Total liabilities	(1,218)	(1,181)
Total equity	(7,933)	(8,846)
Total liabilities and equity	$ (9,151)	$ (10,027)

XML

Timberland and Operating Leases and Purchase Obligations

12 Months Ended

Dec. 31, 2011

Timberland and Operating Leases and Purchase Obligations [Abstract]

Timberland and Operating Leases and Purchase Obligations

Note 23. Timberland and Operating Leases and Purchase Obligations

We lease approximately 40,000 acres of timberlands under long-term leases for which aggregate lease payments were less than $1 million each year in 2011, 2010 and 2009. These lease costs are capitalized as part of timberlands included in fixed assets and are charged against income at the time the timber is harvested. In addition, we lease certain office premises, office equipment and transportation equipment under operating leases for which total expense was $13 million in 2011, $17 million in 2010 and $24 million in 2009. In the normal course of business, we have also entered into various supply agreements, guarantees, purchase commitments and harvesting rights agreements (for land that we manage for which we make payments to various Canadian provinces based on the amount of timber harvested). Total expense for these agreements, guarantees and purchase commitments was $237 million in 2011, $174 million in 2010 and $174 million in 2009.

As of December 31, 2011, the future minimum rental payments under timberland and operating leases and commitments for purchase obligations were as follows:

(In millions)	Timberland Leases		Purchase Obligations  (1)		Operating Leases, Net
2012	$	–	$	34	$	7
2013		–		21		6
2014		–		18		4
2015		–		14		4
2016		–		13		6
Thereafter		2		162		6
	$	2	$	262	$	33

⁽¹⁾  Purchase obligations include, among other things, a bridge and railroad contract for our Fort Frances, Ontario operations with commitments totaling $131 million through 2044.

XML

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Share [Abstract]

Weighted-average number of common shares outstanding

	Successor		Predecessor
(In millions)	2011		2010		2009
Basic weighted-average number of common shares outstanding		97.1		57.7		57.7
Effect of potentially dilutive securities and pre-petition convertible notes		–		36.9		–
Diluted weighted-average number of common shares outstanding		97.1		94.6		57.7

XML

Inventories, Net

12 Months Ended

Dec. 31, 2011

Inventories, Net [Abstract]

Inventories, Net

Note 10. Inventories, Net

Inventories, net as of December 31, 2011 and 2010 were comprised of the following:

	Successor
(In millions)	2011		2010
At lower of cost or market (2011); at fair value (2010):
Raw materials and work in process	$	152	$	146
Finished goods		168		184
Mill stores and other supplies		155		108
	$	475	$	438

In 2011, we recorded charges of $3 million for write-downs of inventory as a result of the decision to cease paperboard production at our Coosa Pines paper mill, as well as the permanent closure of a paper machine at our Kenogami paper mill. These charges were included in “Cost of sales, excluding depreciation, amortization and cost of timber harvested” in our Consolidated Statements of Operations. In 2010, we recorded charges of $17 million for write-downs of inventory, primarily associated with our indefinitely idled Gatineau paper mill, an indefinitely idled paper machine and de-inking line at our Thorold paper mill and a permanently closed paper machine at our Coosa Pines paper mill. These charges were incurred as part of our restructuring and were included in “Reorganization items, net” in our Consolidated Statements of Operations.

XML

Share Capital (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Share Capital (Textual) [Abstract]
Capital stock shares authorized	200,000,000
Common stock, shares authorized	190,000,000
Common shares issued on emergence date		97,134,954
Common stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000
Preferred stock, par value	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares reserved for equity incentives		9,020,960
Common stock shares reserved for disputed unsecured claims	19,719,565	23,382,073
Issuance of unregistered common stock to subsidiary		17,010,728
Shares distributed to the holders of unsecured claims	3,662,508	73,752,881
Shares distributed to ANC	49,172
Common stock dividends declared and paid	$ 0	$ 0	$ 0

XML

Asset Retirement Obligations

12 Months Ended

Dec. 31, 2011

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Note 15. Asset Retirement Obligations

The activity in our liability for asset retirement obligations for the years ended December 31, 2011 and 2010 was as follows:

	Successor			Predecessor
(In millions)	2011			2010
Beginning of year (2011: Successor; 2010: Predecessor)	$	17		$	55
Additions		3			5
Accretion expense		1			2
Reductions due to sale of mills		–			(20	)
Write-off of liabilities for which no claim was filed against us in the Creditor Protection Proceedings		–			(20	)
Payments		(1	)		(1	)
Compromise and settlement due to distribution of Successor Company common stock on account of unsecured creditor claims		–			(3	)
Other		–			(1	)
End of year (Successor)	$	20		$	17

These asset retirement obligations consist primarily of liabilities for landfills, sludge basins and decontamination of closed sites. The related costs are capitalized as part of land and land improvements. We have not had to legally restrict assets for purposes of settling our asset retirement obligations. The costs associated with these obligations are expected to be paid over a weighted average period of approximately nine years.

The additions in 2011 represented increases in obligations associated with our Thunder Bay, Calhoun, Baie-Comeau and Laurentide, Quebec paper mills and included closure and cleanup of landfills, sludge ponds/lagoons and ash ponds. The additions in 2011 also included soil and groundwater testing and remediation and closure of two on-site landfills at our permanently closed Gatineau paper mill. The additions in 2010 represented obligations associated with our permanently closed Gatineau paper mill and included soil and groundwater testing and remediation, capping of landfills and removal of chemicals and other related materials.

Additionally, we have certain other asset retirement obligations for which the timing of settlement is conditional upon the closure of the related operating facility. At this time, we have no specific plans for the closure of these other facilities and currently intend to make improvements to the assets as necessary that would extend their lives indefinitely. Furthermore, the settlement dates have not been specified by law, regulation or contract. As a result, we are unable at this time to estimate the fair value of the liability because there are indeterminate settlement dates for the conditional asset retirement obligations. If a closure plan for any of these facilities is initiated in the future, the settlement date will become determinable, an estimate of fair value will be made and an asset retirement obligation will be recorded.

The asset retirement obligations were included in “Accounts payable and accrued liabilities” or “Other long-term liabilities” in our Consolidated Balance Sheets.

XML

Pension and Other Postretirement Benefit Plans (Details 1) (USD $) In Millions, unless otherwise specified		12 Months Ended				12 Months Ended		12 Months Ended
	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans [Member]	Dec. 31, 2010 Predecessor [Member] OPEB Plans [Member]	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2011 Successor [Member] Pension Plans [Member]	Dec. 31, 2010 Successor [Member] Pension Plans [Member]	Dec. 31, 2011 Successor [Member] OPEB Plans [Member]	Dec. 31, 2010 Successor [Member] OPEB Plans [Member]
Summary of changes in plan assets
Fair value of plan assets as of beginning of year	$ 5,422	$ 5,241	$ 0	$ 5,259	$ 5,422	$ 5,422		$ 0
Actual return on plan assets		458				294
Employer contributions		50	26			196		24
Participant contributions		21	5			17		5
Settlements		(14)				(71)
Settlements upon emergence from the Creditor Protection Proceedings		(43)
Deconsolidation of BPCL (Note 1 and Note 3)		(67)
Benefits paid		(461)	(31)			(502)		(29)
Effect of foreign currency exchange rate changes		237				(97)
Fair value of plan assets as of end of year	5,422			5,259	5,422	5,259
Funded status as of end of year						$ (1,152)	$ (880)	$ (404)	$ (408)

XML

Other Expense, Net (Tables)

12 Months Ended

Dec. 31, 2011

Other Expense, Net [Abstract]

Other expense, net

	Successor			Predecessor
(In millions)	2011			2010			2009
Foreign exchange loss	$	(21	)	$	(94	)	$	(59	)
Post-emergence costs (1)		(47	)		–			–
Income (loss) from equity method investments		2			(3	)		(9	)
Net gains on extinguishment of debt (Note 16)		6			–			–
Interest income (2)		3			1			–
Fees for waivers and amendments to accounts receivable securitization program (3)		–			–			(23	)
Loss on sale of ownership interests in accounts receivable (Note 16)		–			–			(17	)
Miscellaneous income (4)		9			7			37
	$	(48	)	$	(89	)	$	(71	)

⁽¹⁾  Primarily represents ongoing legal and other professional fees for the resolution and settlement of disputed creditor claims, as well as costs for other post-emergence activities associated with the Creditor Protection Proceedings.

⁽²⁾  During the Creditor Protection Proceedings, we recorded our Debtors’ interest income in “Reorganization items, net” in our Consolidated Statements of Operations.

⁽³⁾  As consideration for entering into certain waivers and amendments to our former accounts receivable securitization program, we incurred fees of $23 million in 2009 prior to the commencement of the Creditor Protection Proceedings.

⁽⁴⁾  Miscellaneous income in 2009 included $24 million of income, net from a subsidiary’s proceeds sharing arrangement related to a third party’s sale of timberlands. The related proceeds were deposited in trust with the Monitor during the Creditor Protection Proceedings and were released upon our emergence from the Creditor Protection Proceedings.

XML

Pension and Other Postretirement Benefit Plans (Details Textual) In Millions, unless otherwise specified	12 Months Ended													12 Months Ended
	Dec. 31, 2011 USD ($)	Dec. 31, 2011 CAD	Dec. 31, 2010 USD ($) Person	Dec. 31, 2009 USD ($) Person	Dec. 31, 2011 Coosa Pines Paper Mill [Member] Person	Dec. 31, 2011 Mersey Operations Nova Scotia [Member] Person	Dec. 31, 2011 Kenogami Paper Mill [Member] Person	Dec. 31, 2011 Quebec Canada [Member] CAD	Dec. 31, 2010 Quebec Canada [Member]	Dec. 31, 2011 Ontario Canada [Member] CAD	Dec. 31, 2010 Ontario Canada [Member]	Dec. 31, 2011 Pension Plans [Member] USD ($)	Dec. 31, 2011 OPEB Plans [Member] USD ($)	Dec. 31, 2011 Canadian Pension Plans [Member]	Dec. 31, 2009 Canadian Pension Plans [Member] USD ($)
Defined Benefit Plan Disclosure [Line Items]
Estimated suspended contribution for past service costs associated with Canadian Pension Plans															$ 159
Number of employees affected due to closure of mills and idling of mills and machines			330	1,319	137	97	130
Estimated 2012 contributions												105	25
Percentage of maintenance and value-creation investments								60.00%		30.00%
Investments in strategic projects								75
Annual diversification fund contribution								2
Aggregate value for environmental remediation										5
Period covering investments in strategic projects								5 years
Period covering annual diversification fund contribution								5 years
Period covering aggregate value for environmental remediation										5 years
Period of agreement from the emergence date								5 years		5 years
Minimum amount of investment for construction										50
Period covering minimum amount of investment for construction										2-3 years
Downtime criteria for solvency deficit reduction contribution to pension plans								6 consecutive months or 9 cumulative months		6 consecutive months or 9 cumulative months
Period covering solvency deficit reduction contribution to pension plans								18 months		18 months
Payment period for solvency deficit reduction contribution to pension plans								4 years		4 years
Period of additional funding to attain the target solvency ratio														5 years
Solvency deficit reduction contribution of pension plans, dollars per metric ton								75		75
Minimum weighted average solvency ratio required to dividend								80.00%	80.00%	80.00%	80.00%
Defined benefit plan years included in respect of solvency deficit														2011-2020
Pension And Other Postretirement Benefit Plans (Textual) [Abstract]
Expense for the defined contribution plans, total	22		12	14
Estimated amount that will be amortized from accumulated other comprehensive loss	1
Sum of benefit obligations for pension plans with benefit obligations in excess of plan assets	6,351		5,368
Sum of fair value of plan assets for pension plans with benefit obligations in excess of plan assets	5,197		4,469
Sum of accumulated benefit obligations for pension plans with accumulated benefit obligations in excess of plan assets	6,288		4,906
Sum of fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets	5,197		4,063
Total accumulated benefit obligations	6,348		6,242
Number of employees retired from paper mills				33
Reduction in benefit obligation due to curtailments upon emergence			8
Decrease in accumulated other comprehensive loss due to curtailments upon emergence			26
Reduction in benefit obligation due to settlements upon emergence			47
Decrease in accumulated other comprehensive loss due to settlements upon emergence			23
Settlement gain from net period benefit cost upon emergence			24
Reduction in benefit obligation due to amendments upon emergence			26
Decrease in accumulated other comprehensive loss due to amendments upon emergence			26
Targeted asset allocation of plan assets, equity securities	50.00%	50.00%
Targeted asset allocation of plan assets, debt and other securities	50.00%	50.00%
Maximum percentage of short-term instruments included in targeted asset allocation of plan assets	3.00%	3.00%
Portion of equity securities targeted to be invested in U.S and Canada	Two-third	Two-third
Basic annual pension contribution for funding relief		50
Percentage of free cash flow of additional contribution to be made, if the plans' aggregate solvency ratio falls below a specified target for a year	15.00%	15.00%
Maximum additional contribution to be made, if the plans' aggregate solvency ratio falls below a target for a year		15
Percent below the annual target solvency ratio that triggers additional funding	more than 2%	more than 2%
Maximum supplementary contribution, if the amount payable for benefits in a year exceeds a specified threshold		25
Participant contributions to a certain defined benefit plan as consideration for release of all claims arising from the Creditor Protection Proceedings	2
Increase in pension benefit obligation from the amendment to a certain benefit plan	2
Amount recorded upon receipt of cash from participants in the amendment to a certain defined benefit plan	2
Amount recognized in current period for special amendment to a certain defined benefit plan	$ 2
Targeted asset allocation of plan assets, equity securities, Minimum	35.00%	35.00%
Targeted asset allocation of plan assets, equity securities, Maximum	60.00%	60.00%
Targeted asset allocation of plan assets, debt and other securities, Minimum	40.00%	40.00%
Targeted asset allocation of plan assets, debt and other securities, Maximum	65.00%	65.00%

XML

Transactions with Related Parties (Parent Company [Member])

12 Months Ended

Dec. 31, 2011

Parent Company [Member]

Transactions with Related Parties

Note E. Transactions with Related Parties

On May 12, 2008, we contributed to Bowater, as additional paid-in capital, a 12.5% promissory note in the amount of $650 million due June 30, 2013, executed by us in favor of Bowater and on May 15, 2008, Bowater transferred the ownership interest it held in Bowater Newsprint South LLC to us. In 2009, pre-petition interest on the note was $24 million and was included in “Interest expense” in our Condensed Statements of Operations and Retained Earnings (Deficit). During the Creditor Protection Proceedings, we ceased accruing interest on the note. Upon emergence from the Creditor Protection Proceedings, the liability for the note and accrued interest was retained by us as it was management’s intention that Bowater will dividend this note to us. As permitted under the Plans of Reorganization, we intended to allow Bowater’s claim including all accrued interest and, therefore, the amount of this dividend would include post-petition accrued interest on the note. As a result, in 2010, we recorded catch-up interest on the note of $139 million, of which $134 million (through the Emergence Date) and $5 million (subsequent to the Emergence Date and through December 31, 2010) is included in “Reorganization items, net” and “Interest expense,” respectively, in our Condensed Statements of Operations and Retained Earnings (Deficit). In 2011, we recorded interest on the note of $81 million, which is included in “Interest expense” in our Condensed Statements of Operations and Retained Earnings (Deficit).

As of December 31, 2011 and 2010, the outstanding balance of the note and accrued interest on the note totaled $945 million and $864 million, respectively, and approximated fair value and was classified as “Note and interest payable to a subsidiary” in our Condensed Balance Sheets.

On April 1, 2008, a former subsidiary of ours transferred all of the outstanding common and preferred stock of Donohue to AbitibiBowater US Holding LLC (“Holding”), a direct subsidiary of ours, for a combination of notes issued or assumed by Holding. As part of this transaction, we loaned Holding $350 million, which was the amount of the proceeds from our issuance of the pre-petition convertible notes, and this note receivable was due on March 31, 2013. In 2009, pre-petition interest on the note was $13 million and was included in “Other income (expense), net” in our Condensed Statements of Operations and Retained Earnings (Deficit). However, Holding was also a debtor in the Creditor Protection Proceedings and since the note and accrued interest were subject to compromise by Holding, in 2009, we recorded a reserve for the entire outstanding balance of the note and accrued interest of $378 million, which was included in “Reserve for receivables from subsidiaries” in our Condensed Statements of Operations and Retained Earnings (Deficit). Upon emergence from the Creditor Protection Proceedings, the entire amount outstanding was compromised and Holding’s obligations were discharged. Accordingly, we are not entitled to any recovery.

Some of our subsidiaries provide certain corporate administrative services on our behalf and certain of our subsidiaries, including legal, finance, tax, risk management, IT, executive management, payroll and employee benefits. As such, these subsidiaries have charged us a portion of their general and administrative expenses, based on specific identification or on an appropriate allocation key (e.g., sales, purchases, headcount, etc.) determined by the type of expense or department. During the years ended December 31, 2011, 2010 and 2009, these subsidiaries charged us $23 million, $27 million and $23 million, respectively, for certain corporate administrative expenses, which were recorded in “Selling, general and administrative expenses” in our Condensed Statements of Operations and Retained Earnings (Deficit).

As discussed in Note D, “Financing Arrangements,” in 2011, AbiBow US Inc. paid on our behalf $264 million of principal amount of the 2018 Notes plus the redemption premiums (approximately $10 million) and all interest on the notes (approximately $85 million). Additionally, in 2011, AbiBow US Inc. paid on our behalf $90 million of principal amount of the ANC promissory note plus $2 million of interest on the note. In 2010, Bowater paid on our behalf $45 million relating to reorganization items, which were comprised of: (i) the backstop commitment agreement termination fee of $15 million discussed above, (ii) the exit financing costs of $27 million discussed above and (iii) other professional fees of $3 million.

In prior years, AbitibiBowater had recorded a $32 million intercompany receivable for a tax benefit it recorded that was used to offset the current income tax liability of its U.S. subsidiaries with which it filed a consolidated U.S. income tax return. Since this intercompany receivable was due from subsidiaries that were also debtors in the Creditor Protection Proceedings and was subject to compromise by our subsidiaries, in 2009, we recorded a reserve for the entire balance of this intercompany receivable, which was included in “Reserve for receivables from subsidiaries” in our Condensed Statements of Operations and Retained Earnings (Deficit). Upon emergence from the Creditor Protection Proceedings, our debtor subsidiaries retained these liabilities. Accordingly, in 2010, we reversed the “Reserve for receivables from subsidiaries” in our Condensed Statements of Operations and Retained Earnings (Deficit) and reinstated this receivable to “Accounts receivable from subsidiaries” in our Condensed Balance Sheets as of December 31, 2010. Additionally, in 2011 and 2010, AbitibiBowater recorded a tax benefit of $63 million and $8 million, respectively, which will be used to offset the current income tax liability of its U.S. subsidiaries with which it files a consolidated U.S. income tax return; accordingly, we have recorded these amounts through intercompany.

On December 31, 2010, AbitibiBowater issued 17,010,728 shares of unregistered common stock to Donohue as part of an internal tax restructuring contemplated by the Plans of Reorganization. The shares were issued to Donohue in exchange for all of the outstanding shares of common stock of two of Donohue’s wholly-owned subsidiaries (each of which also was an indirect wholly-owned subsidiary of ours), which have a fair value of $335 million. We recorded the issuance of these shares in additional paid-in capital in our Condensed Balance Sheets. The issuance of the shares to Donohue was made without registration under the Securities Act in reliance on the exemption from registration provided under section 4(2) thereof.

As part of the agreements that AbiBow Canada entered into with the provinces of Quebec and Ontario for funding relief with respect to aggregate solvency deficits in its material Canadian registered pension plans, AbiBow Canada agreed to a number of undertakings, one of which is a restriction on the payment of dividends to us. For additional information, see Note 18, “Pension and Other Postretirement Benefit Plans – Canadian pension funding relief,” to the Consolidated Financial Statements.

XML

Income Taxes (Details 1) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
U.S. Federal and State:
Current	$ 0
Deferred	(21)	470	(1)
Total	(21)	470	(1)
Foreign:
Current	(4)
Deferred	9	1,136	123
Total	5	1,136	123
Total:
Current	(4)
Deferred	(12)	1,606	122
Total	$ (16)	$ 1,606	$ 122

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Common stock, par value	$ 0.001	$ 0.001
Successor
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	114.1	114.1
Common stock, shares outstanding	97.1	97.1
Treasury stock, shares	17.0	17.0

XML

Fixed Assets, Net (Details Textual) (Hydroelectric power plants [Member], Jim-Gray hydroelectric [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Hydroelectric power plants [Member] | Jim-Gray hydroelectric [Member]
Property Plant And Equipment [Line Items]
Jim-Gray installation carrying value	$ 89

XML

Consolidated Statements of Cash Flows(USD ($)) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor	Dec. 31, 2010 Predecessor	Dec. 31, 2009 Predecessor
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$ 39	$ 2,775	$ (1,560)
Adjustments to reconcile net income (loss) including noncontrolling interests to net cash provided by operating activities:
Share-based compensation	3	3	4
Depreciation, amortization and cost of timber harvested	220	493	602
Closure costs, impairment and other related charges	41	11	170
Write-downs of inventory	3		17
Deferred income taxes	19	(1,600)	(118)
Net pension contributions	(175)	(36)	(150)
Net gain on disposition of assets and other	(3)	(30)	(91)
Loss on translation of foreign currency denominated deferred income taxes	25
(Gain) loss on translation of foreign currency denominated pension and other postretirement benefit obligations	(15)	18	29
Premium related to debt redemptions	(16)
Dividends received from equity method investees in excess of income	9
Amortization of debt discount (premium) and debt issuance costs, net		14	57
Loss on translation of foreign currency denominated debt		116	62
Non-cash interest expense		217	230
Non-cash reorganization items, net		(1,981)	535
Debtor in possession financing costs		10	31
Exit financing costs		27
Changes in working capital:
Accounts receivable	87	(54)	159
Inventories	(39)	(13)	101
Other current assets	31	4	(29)
Accounts payable and accrued liabilities	(28)	98	(1)
Other, net	(3)	(33)	(2)
Net cash provided by operating activities	198	39	46
Cash flows from investing activities:
Cash invested in fixed assets	(97)	(81)	(101)
Disposition of investment in ACH Limited Partnership (Note 16)	296
Disposition of investment in Manicouagan Power Company ("MPCo") (Note 16)			554
Disposition of other assets	19	96	119
Proceeds from holdback related to disposition of investment in MPCo (Note 16)	29
Proceeds from insurance settlements	8
(Increase) decrease in restricted cash	(2)	76	(142)
(Increase) decrease in deposit requirements for letters of credit, net	(8)	(3)	49
Release of pension trust assets		8
Cash received in monetization of derivative financial instruments			5
Net cash provided by investing activities	245	96	484
Cash flows from financing activities:
Dividends and distribution to noncontrolling interests	(21)		(7)
Acquisition of noncontrolling interest (Note 16)	(15)
Issuance of long-term debt		850
Payments of long-term debt	(354)	(334)	(118)
Payments of financing and credit facility fees	(3)	(46)	(9)
Decrease in secured borrowings, net		(141)
Debtor in possession financing			261
Debtor in possession financing costs		(10)	(31)
Payments of debtor in possession financing		(206)	(55)
Term loan repayments		(347)
Short-term financing, net		(338)	(7)
Net cash (used in) provided by financing activities	(393)	(572)	34
Net increase (decrease) in cash and cash equivalents	50	(437)	564
Cash and cash equivalents:
Beginning of year	319	756	192
End of year	369	319	756
Cash paid (received) during the year for:
Interest, including capitalized interest of $1, $0 and $1 in 2011, 2010 and 2009, respectively (Note 16)	105	198	276
Income taxes, net	$ (6)	$ (3)	$ (3)

XML

Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Pension and Other Postretirement Benefit Plans [Abstract]

Summary of changes in benefit obligations

	Pension Plans				OPEB Plans
	Successor		Predecessor		Successor		Predecessor
(In millions)	2011		2010		2011		2010
Change in benefit obligations:
Benefit obligations as of beginning of year (2011: Successor; 2010: Predecessor)	$	6,302	$	5,665	$	408	$	382
Service cost		35		41		3		4
Interest cost		335		350		22		23
Actuarial loss (gain)		397		649		(6)		29
Participant contributions		17		21		5		5
Plan amendments		1		–		–		(8)
Plan amendments upon emergence from the Creditor Protection Proceedings		–		(22)		–		(4)
Curtailments and settlements		(66)		(16)		4		–
Curtailments and settlements upon emergence from the Creditor Protection Proceedings		–		(98)		–		–
Deconsolidation of BPCL (Note 1 and Note 3)		–		(92)		–		–
Benefits paid		(502)		(461)		(29)		(31)
Effect of foreign currency exchange rate changes		(108)		265		(3)		8
Benefit obligations as of end of year (Successor)		6,411		6,302		404		408

Summary of change in plan assets

Change in plan assets:
Fair value of plan assets as of beginning of year (2011: Successor; 2010: Predecessor)		5,422		5,241		–		–
Actual return on plan assets		294		458		–		–
Employer contributions		196		50		24		26
Participant contributions		17		21		5		5
Settlements		(71)		(14)		–		–
Settlements upon emergence from the Creditor Protection Proceedings		–		(43)		–		–
Deconsolidation of BPCL (Note 1 and Note 3)		–		(67)		–		–
Benefits paid		(502)		(461)		(29)		(31)
Effect of foreign currency exchange rate changes		(97)		237		–		–
Fair value of plan assets as of end of year (Successor)		5,259		5,422		–		–
Funded status as of end of year (Successor)	$	(1,152)	$	(880)	$	(404)	$	(408)

Summary of amounts recognized in our Consolidated Balance Sheets

Amounts recognized in our Consolidated Balance Sheets consisted of (Successor):
Other assets	$	2	$	19	$	–	$	–
Accounts payable and accrued liabilities		(9)		(7)		(25)		(28)
Pension and OPEB benefit obligations		(1,145)		(892)		(379)		(380)
Net obligations recognized	$	(1,152)	$	(880)	$	(404)	$	(408)

Components of net periodic benefit cost relating to pension and OPEB plans

	Pension Plans						OPEB Plans
	Successor		Predecessor				Successor		Predecessor
	2011		2010		2009		2011		2010		2009
Service cost	$	35	$	41	$	40	$	3	$	4	$	3
Interest cost		335		350		346		22		23		24
Expected return on plan assets		(351)		(365)		(370)		–		–		–
Amortization of prior service cost (credit)		2		3		3		–		(7)		(10)
Amortization of net actuarial loss (gain)		–		4		(7)		–		3		4
Curtailments, settlements and special termination benefits		5		(19)		(4)		3		–		(5)
	$	26	$	14	$	8	$	28	$	23	$	16

Summary of the special events that impacted net periodic benefit costs as a curtailment, settlement or special termination benefit

	Pension Plans						OPEB Plans
	Successor		Predecessor				Successor		Predecessor
(In millions)	2011		2010		2009		2011		2010		2009
Settlements resulting from lump-sum payouts or plan liquidations and wind-ups	$	3	$	1	$	2	$	–	$	–	$	–
Curtailments, net, and special retirement benefits resulting from the closure of mills or paper machines and other mill restructurings		2		4		(6)		3		–		(5)
Curtailments and settlements that arose upon our emergence from the Creditor Protection Proceedings		–		(24)		–		–		–		–
	$	5	$	(19)	$	(4)	$	3	$	–	$	(5)

Weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost

	Pension Plans						OPEB Plans
	2011		2010		2009		2011		2010		2009
Benefit obligations:
Discount rate		4.9%		5.5%		6.4%		4.9%		5.6%		6.3%
Rate of compensation increase		1.2%		0.9%		2.3%		–		–		–
Net periodic benefit cost:
Discount rate		5.5%		6.4%		7.3%		5.6%		6.3%		7.0%
Expected return on assets		6.6%		6.8%		7.3%		–		–		–
Rate of compensation increase		0.9%		2.3%		3.0%		–		–		–

The assumed health care cost trend rates used to determine the benefit obligations

	2011				2010
	Domestic Plans		Foreign Plans		Domestic Plans		Foreign Plans
Health care cost trend rate assumed for next year		7.1%		4.4%		7.2%		4.5%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)		4.5%		2.9%		4.5%		2.9%
Year that the rate reaches the ultimate trend rate		2028		2031		2028		2031

Effect of one-percentage point change in assumed health care cost trend rates

Variations in this health care cost trend rate can have a significant effect on the amounts reported. A 1% change in this assumption would have had the following impact on our 2011 OPEB obligation and costs for our domestic and foreign plans:

	1% Increase						1% Decrease
(Dollars in millions)	Domestic Plans			Foreign Plans			Domestic Plans			Foreign Plans
Benefit obligation	$	36	15%	$	8	5%	$	(30)	(13)%	$	(7)	(4)%
Service and interest costs	$	2	15%	$	–	5%	$	(2)	(14)%	$	–	(4)%

The fair value of plan assets held by the pension plans

The fair value of plan assets held by our pension plans as of December 31, 2011 was as follows:

	Successor
(In millions)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. companies	$	760	$	760	$	–	$	–
Non-U.S. companies		911		651		260		–
Debt securities:
Corporate and government securities		3,031		99		2,932		–
Asset-backed securities		165		–		165		–
Bank loans/foreign annuities		44		–		–		44
Real estate		39		–		–		39
Cash and cash equivalents		271		271		–		–
Accrued interest and dividends		38		–		38		–
	$	5,259	$	1,781	$	3,395	$	83
The fair value of plan assets held by our pension plans as of December 31, 2010 was as follows:
	Successor
(In millions)	Total		Level 1		Level 2		Level 3
Equity securities:
U.S. companies	$	978	$	946	$	32	$	–
Non-U.S. companies		1,093		775		318		–
Debt securities:
Corporate and government securities		2,861		87		2,774		–
Asset-backed securities		114		–		114		–
Bank loans/foreign annuities		44		–		–		44
Real estate		42		–		–		42
Cash and cash equivalents		242		242		–		–
Accrued interest and dividends		48		–		48		–
	$	5,422	$	2,050	$	3,286	$	86

Changes in Level 3 pension plan assets

(In millions)	Bank Loans/ Foreign Annuities		Real Estate		Total
Balance as of December 31, 2009 (Predecessor)	$	5	$	37	$	42
Unrealized gains relating to assets held as of December 31, 2010		–		5		5
Purchases		57		–		57
Sales		(18)		–		(18)
Balance as of December 31, 2010 (Successor)		44		42		86
Unrealized gains relating to assets held as of December 31, 2011		–		5		5
Realized losses		–		(1)		(1)
Purchases		41		–		41
Sales		(40)		(6)		(46)
Effect of foreign currency exchange rate changes		(1)		(1)		(2)
Balance as of December 31, 2011 (Successor)	$	44	$	39	$	83

Expected benefit payments and future contributions

(In millions)	Pension Plans		OPEB Plans		Expected Subsidy Receipts
2012	$	512	$	27	$	2
2013		417		26		2
2014		436		26		2
2015		436		26		2
2016		439		26		3
2017 – 2021		2,182		137		15

XML

Net Income (Loss) Per Share (Details) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2011 Successor [Member]
Weighted-average number of AbitibiBowater Inc. common shares outstanding:
Basic weighted-average number of common shares outstanding		57.7	57.7	97.1
Effect of potentially dilutive securities and pre-petition convertible notes	36.9	36.9
Diluted weighted-average number of common shares outstanding		94.6	57.7	97.1

XML

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]
Income (loss) before income taxes by taxing jurisdiction
United States	$ 25	$ (1,039)	$ (421)
Foreign	30	2,208	(1,261)
Income (loss) before income taxes	$ 55	$ 1,169	$ (1,682)

XML

Creditor Protection Proceedings (Details 1) (Predecessor [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Predecessor [Member]
Charges related to indefinite idlings and permanent closures
Accelerated depreciation	$ 251	$ 51
Long-lived asset impairment	10	130
Severance and pension curtailment	29	32
Write-downs of inventory	17	17
Other		12
Total	$ 307	$ 242

XML

Liquidity and Debt

12 Months Ended

Dec. 31, 2011

Liquidity and Debt/Financing Arrangements [Abstract]

Liquidity and Debt

Note 16. Liquidity and Debt

Liquidity

As of December 31, 2011, in addition to cash and cash equivalents and net cash provided by operations, our principal external source of liquidity was the ABL Credit Facility, which is defined and discussed below. As of December 31, 2011, we had cash and cash equivalents of $369 million and had $515 million of availability under the ABL Credit Facility.

On May 27, 2011, we announced the sale of our 75% equity interest in ACH. Cash proceeds from the sale, including cash available at closing, were approximately Cdn$290 million ($296 million, based on the exchange rate in effect on May 27, 2011). The proceeds were applied in accordance with the terms of the 2018 Notes (as defined below) indenture, which requires, among other things, that the first $100 million of net proceeds from the sale of certain assets, including our interest in ACH, be used to redeem 2018 Notes (including accrued and unpaid interest) if the closing occurs within six months of the Emergence Date (as further discussed below). We also used the ACH proceeds to redeem an additional $85 million of principal amount of the 2018 Notes and repaid $90 million of other long-term debt (as further discussed below). The purchaser assumed the outstanding debt of ACH. Accordingly, ACH’s total long-term debt ($280 million as of December 31, 2010) is no longer reflected in our Consolidated Balance Sheet.

As further discussed below, on November 4, 2011, we redeemed an additional $85 million of principal amount of the 2018 Notes.

In 2010, prior to our emergence from the Creditor Protection Proceedings, in addition to cash and cash equivalents and net cash provided by operations, our external sources of liquidity were comprised of the following (which are defined and discussed below): (i) the Bowater DIP Agreement, (ii) the ULC DIP Facility and (iii) an accounts receivable securitization program. During the Creditor Protection Proceedings, cash payments for interest were only made on the Bowater DIP Agreement, the accounts receivable securitization program, the pre-petition secured bank credit facilities, the pre-petition senior secured term loan, the pre-petition floating rate industrial revenue bonds due 2029, as well as the Abitibi DIP Agreement (defined and discussed below) through December 9, 2009, the date such agreement was terminated. In addition, as discussed below under “Sale of our investment in MPCo,” in 2009, we also paid accrued interest to the holders of our pre-petition 13.75% senior secured notes due 2011.

Debt

Emergence from Creditor Protection Proceedings

In connection with the implementation of the Plans of Reorganization:

• all amounts outstanding under the Bowater DIP Agreement were paid in full in cash and the facility was terminated;

• all amounts outstanding under the ULC DIP Facility were paid in full and the facility was terminated;

• all outstanding receivable interests sold under the accounts receivable securitization program were repurchased in cash for a price equal to the par amount thereof and the program was terminated;

• all amounts outstanding under our pre-petition secured financing agreements were paid in full in cash, including accrued interest, and the agreements governing the obligations and all other related agreements, supplements and amendments were canceled and terminated;

• holders of allowed debt claims relating to the Debtors’ pre-petition unsecured indebtedness were allocated shares of the Successor Company’s common stock on account of their claims and all obligations of the Debtors thereunder were discharged and the agreements governing the obligations, including all other related agreements, supplements, amendments and arrangements, were canceled and terminated;

• we assumed by merger the obligations of ABI Escrow Corporation with respect to $850 million in aggregate principal amount of 10.25% senior secured notes due 2018 (the “2018 Notes” or “notes”), as discussed below; and

• we entered into a senior secured asset-based revolving credit facility in an amount of $600 million (the “ABL Credit Facility”), as discussed below.

Proceeds from the issuance of the 2018 Notes of $850 million, borrowings under the ABL Credit Facility of $100 million, together with cash and cash equivalents at emergence, were used to pay: (i) all amounts outstanding, including accrued interest, under our secured pre-petition debt obligations and the Bowater DIP Agreement; (ii) all outstanding secured borrowings under the accounts receivable securitization program; (iii) administrative expense claims and priority claims; (iv) other secured and convenience claims; (v) financing costs related to the 2018 Notes and the ABL Credit Facility and (vi) other payments required upon emergence.

10.25% senior secured notes due 2018

On December 9, 2010, AbitibiBowater Inc. and each of its material, wholly-owned U.S. subsidiaries entered into a supplemental indenture with Wells Fargo Bank, National Association, as trustee and collateral agent, pursuant to which AbitibiBowater Inc. assumed the obligations of ABI Escrow Corporation with respect to $850 million in aggregate principal amount of the 2018 Notes, originally issued on October 4, 2010 pursuant to an indenture as of that date (as supplemented, the “indenture”). ABI Escrow Corporation was a wholly-owned subsidiary of AbitibiBowater Inc. created solely for the purpose of issuing the 2018 Notes. The notes were issued in a private placement exempt from registration under the Securities Act of 1933 (as amended, the “Securities Act”). Interest is payable on the notes on April 15 and October 15 of each year beginning on April 15, 2011, until their maturity date of October 15, 2018. In accordance with certain conditions in the indenture, the net proceeds of the notes offering were placed into an escrow account on October 4, 2010. On December 9, 2010, upon satisfaction of the escrow conditions, the funds deposited into escrow were released to AbitibiBowater Inc. and we used the net proceeds to repay certain indebtedness pursuant to the Plans of Reorganization. On May 12, 2011, the indenture was amended and restated in its entirety to make certain technical corrections and conforming changes.

The notes are and will be guaranteed by our current and future wholly-owned material U.S. subsidiaries (the “guarantors”) and are secured on a first priority basis, subject to permitted liens, by the capital stock of our subsidiaries (limited to 65% of the capital stock in first tier foreign subsidiaries) now owned or acquired in the future by AbitibiBowater Inc. and the guarantors and substantially all of AbitibiBowater Inc.’s and the guarantors’ assets (other than certain excluded assets and assets that are first priority collateral in respect of the ABL Credit Facility) now owned or acquired in the future. The notes and the guarantees are also secured on a second priority basis by the collateral securing the ABL Credit Facility, including accounts receivable, inventory and cash deposit and investment accounts.

The notes rank equally in right of payment with all of AbitibiBowater Inc.’s post-emergence senior indebtedness and senior in right of payment to all of its subordinated indebtedness. The note guarantees rank equally in right of payment with all of the guarantors’ post-emergence senior indebtedness and are senior in right of payment to all of the guarantors’ post-emergence subordinated indebtedness. In addition, the notes are structurally subordinated to all existing and future liabilities (including trade payables) of our subsidiaries that do not guarantee the notes. The notes and the guarantees are also effectively junior to indebtedness under the ABL Credit Facility to the extent of the value of the collateral that secures the ABL Credit Facility on a first priority basis and to indebtedness secured by assets that are not collateral securing the 2018 Notes to the extent of the value of such assets.

At any time prior to October 15, 2014, we may redeem some or all of the notes at a price equal to 100% of the principal amount plus accrued and unpaid interest plus a “make-whole” premium. We may also redeem some or all of the notes on and after October 15, 2014, at a redemption price of 105.125% of the principal amount thereof if redeemed during the twelve-month period beginning on October 15, 2014, 102.563% of the principal amount thereof if redeemed during the twelve-month period beginning on October 15, 2015, and 100% of the principal amount thereof if redeemed on or after October 15, 2016, plus, in each case, accrued and unpaid interest. We may also redeem up to 35% of the notes using the proceeds of certain equity offerings completed before October 15, 2013 at a redemption price of 110.250% of the principal amount thereof, plus accrued and unpaid interest. Prior to October 15, 2013, we may also redeem up to 10% of the notes per twelve-month period at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. If we experience specific kinds of changes in control, we must offer to purchase the notes at a redemption price of 101% of the principal amount thereof plus accrued and unpaid interest. For certain of our assets, including our interest in ACH, sold within six months of the Emergence Date, we must use the first $100 million of the net proceeds received from any such sales to redeem a portion of the notes at a redemption price of 105% of the principal amount plus accrued and unpaid interest. If we sell certain of our assets thereafter, and we do not use the proceeds to pay down certain indebtedness, purchase additional assets or make capital expenditures, each as specified in the indenture, we must offer to purchase the notes at a redemption price of 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date with the net cash proceeds from the asset sale.

On June 13, 2011, we applied the first $100 million of net proceeds from the sale of ACH (as discussed above) to redeem $94 million of principal amount of the 2018 Notes at a redemption price of 105% of the principal amount, plus accrued and unpaid interest. Additionally, on both June 29, 2011 and November 4, 2011, we redeemed $85 million of principal amount of the 2018 Notes at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. As a result of these redemptions, during the year ended December 31, 2011, we recorded net gains on extinguishment of debt of $6 million, which were included in “Other expense, net” in our Consolidated Statements of Operations.

The terms of the indenture impose certain restrictions, subject to a number of exceptions and qualifications, on us, including limits on our ability to: incur, assume or guarantee additional indebtedness; issue redeemable stock and preferred stock; pay dividends or make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase certain debt; make loans and investments; incur liens; restrict dividends, loans or asset transfers from our subsidiaries; sell or otherwise dispose of assets, including capital stock of subsidiaries; consolidate or merge with or into, or sell substantially all of our assets to, another person; enter into transactions with affiliates and enter into new lines of business. The indenture also contains customary events of default.

As a result of our application of fresh start accounting, as of December 31, 2010, the 2018 Notes were recorded at their fair value of $905 million, which resulted in a premium of $55 million, which is being amortized to interest expense using the effective interest method over the term of the notes. As of December 31, 2011, the carrying value of the 2018 Notes was $621 million, which included the unamortized premium of $35 million, resulting in an effective interest rate of 9.1%.

In connection with the issuance of the notes, during 2010, we incurred fees of $27 million, which were written off to “Reorganization items, net” in our Consolidated Statements of Operations as a result of the application of fresh start accounting.

ABL Credit Facility

On December 9, 2010, AbitibiBowater Inc. and three of its post-emergence wholly-owned subsidiaries, AbiBow US Inc. and AbiBow Recycling LLC, (collectively, the “U.S. Borrowers”) and AbiBow Canada Inc. (the “Canadian Borrower” and, together with the U.S. Borrowers, the “Borrowers”) entered into the ABL Credit Facility with certain lenders and Citibank, N.A., as administrative agent and collateral agent (the “agent”).

On October 28, 2011, the Borrowers and the subsidiaries of AbitibiBowater Inc. that are guarantors of the ABL Credit Facility entered into an amendment (the “amendment”) to the credit agreement that governs the ABL Credit Facility. The ABL Credit Facility, as amended, provides for an asset-based, revolving credit facility with an aggregate lender commitment of up to $600 million at any time outstanding, subject to borrowing base availability, including a $60 million (increased from $20 million) swingline sub-facility and a $200 million (increased from $150 million) letter of credit sub-facility. The ABL Credit Facility includes a $400 million tranche available to the Borrowers and a $200 million tranche available solely to the U.S. Borrowers, in each case subject to the borrowing base availability of those Borrowers. The ABL Credit Facility also provides for an uncommitted incremental loan facility of up to $100 million, subject to certain terms and conditions set forth in the ABL Credit Facility. The amendment extends the maturity of the ABL Credit Facility from December 9, 2014 to October 28, 2016.

Revolving loan (and letter of credit) availability under the ABL Credit Facility is subject to a borrowing base, which at any time is equal to: (a) for U.S. Borrowers, the sum of (i) 85% of eligible accounts receivable of the U.S. Borrowers plus (ii) the lesser of 65% of eligible inventory of the U.S. Borrowers or 85% of the net orderly liquidation value of eligible inventory of the U.S. Borrowers, minus reserves established by the agent and (b) for the Canadian Borrower, the sum of (i) 85% of eligible accounts receivable of the Canadian Borrower plus (ii) the lesser of 65% of eligible inventory of the Canadian Borrower or 85% of the net orderly liquidation value of eligible inventory of the Canadian Borrower, minus reserves established by the agent.

The borrowing base availability of each borrower is subject to certain reserves, which are established by the agent in its discretion. The reserves may include dilution reserves, inventory reserves, rent reserves and any other reserves that the agent determines are necessary and have not already been taken into account in the calculation of the borrowing base. As of December 31, 2010, an additional reserve of $286 million was in place against the borrowing base of the Canadian Borrower until the adoption, by the governments of Quebec and Ontario, of regulations to implement previously-announced funding relief with respect to aggregate solvency deficits in our material Canadian registered pension plans, as discussed in Note 18, “Pension and Other Postretirement Benefit Plans – Canadian pension funding relief.” As of the third quarter of 2011, both the provinces of Quebec and Ontario had adopted these funding relief regulations. As a result, this reserve against the borrowing base of the Canadian Borrower was removed in the third quarter of 2011.

The obligations of the U.S. Borrowers under the ABL Credit Facility are guaranteed by each of the other U.S. Borrowers and certain material U.S. subsidiaries of AbitibiBowater Inc. (the “U.S. Guarantors”), and secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the U.S. Borrowers and the U.S. Guarantors and second priority liens on and security interests in all of the collateral of the U.S. Borrowers and the U.S. Guarantors pledged to secure the 2018 Notes, as described above. The obligations of the Canadian Borrower under the ABL Credit Facility are guaranteed by each of the other Borrowers, the U.S. Guarantors and certain material Canadian subsidiaries of AbitibiBowater Inc. (the “Canadian Guarantors” and, together with the U.S. Guarantors, the “Guarantors”), and are secured by first priority liens on and security interests in accounts receivable, inventory and related assets of the Borrowers and the Guarantors and second priority liens on and security interests in all of the collateral of the U.S. Borrowers and the U.S. Guarantors pledged to secure the 2018 Notes.

Borrowings under the ABL Credit Facility bear interest at a rate equal to, at the Borrower’s option, the base rate, the Canadian prime rate or the Eurodollar rate, in each case plus an applicable margin. The base rate under the ABL Credit Facility equals the greater of: (i) the agent’s base rate, (ii) the Federal Funds rate plus 0.5%, (iii) the agent’s rate for certificates of deposit having a term of three months plus 0.5% or (iv) the Eurodollar rate for a one month interest period plus 1.0%. The amendment reduced the interest rate margin applicable to borrowings under the ABL Credit Facility to 1.75% – 2.25% per annum with respect to Eurodollar rate and bankers’ acceptance rate borrowings (reduced from 2.75% – 3.25%) and 0.75% – 1.25% per annum with respect to base rate and Canadian prime rate borrowings (reduced from 1.75% – 2.25%), in each case depending on excess availability under the ABL Credit Facility. The applicable margin is subject, in each case, to monthly pricing adjustments based on the average monthly excess availability under the ABL Credit Facility, with such adjustments commencing after the end of the second full fiscal quarter following the Emergence Date.

In addition to paying interest on the outstanding borrowings under the ABL Credit Facility, the Borrowers are required to pay a fee in respect of unutilized commitments, which was equal to 0.75% per annum initially. Commencing after the end of the second full fiscal quarter following the Emergence Date, the fee is subject to monthly pricing adjustments based on the unutilized commitment of the ABL Credit Facility over the prior month. Initially, the Borrowers were required to pay a fee equal to 0.75% per annum when the unutilized commitment of the ABL Credit Facility was greater than or equal to 50% of the total commitments and 0.50% per annum when the unutilized commitment of the ABL Credit Facility was less than 50% of the total commitments. The amendment reduced the unutilized commitment fee payable by the Borrowers under the ABL Credit Facility to 0.375% – 0.50% per annum, subject to monthly pricing adjustments based on the unutilized commitment of the ABL Credit Facility. The Borrowers must also pay a fee on outstanding letters of credit under the ABL Credit Facility at a rate equal to the applicable margin in respect of Eurodollar borrowings, plus a facing fee as agreed to in writing from time to time, and certain administrative fees.

The Borrowers are able to voluntarily repay outstanding loans and reduce unused commitments, in each case, in whole or in part, at any time without premium or penalty. The Borrowers are required to repay outstanding loans anytime the outstanding loans exceed the maximum availability then in effect. The Borrowers are also required to use net proceeds from certain significant asset sales to repay outstanding loans, but may re-borrow following such prepayments if the conditions to borrowings are met.

The ABL Credit Facility contains customary covenants for asset-based credit agreements of this type, including, among other things: (i) requirements to deliver financial statements, other reports and notices; (ii) restrictions on the existence or incurrence and repayment of indebtedness; (iii) restrictions on the existence or incurrence of liens; (iv) restrictions on making certain restricted payments; (v) restrictions on making certain investments; (vi) restrictions on certain mergers, consolidations and asset dispositions; (vii) restrictions on transactions with affiliates; (viii) restrictions on amendments or modifications to the Canadian pension and benefit plans and (ix) restrictions on modifications to material indebtedness. Additionally, the amendment reduced to 1.0:1.0 (reduced from 1.1:1.0) the minimum consolidated fixed charge coverage ratio required if at any time excess availability falls below the greater of: (i) $60 million and (ii) 12.5% of the lesser of (A) the total commitments and (B) the borrowing base then in effect. Prior to the effectiveness of the amendment, this springing fixed charge coverage ratio covenant was triggered if excess availability fell below 15% of the total commitments then in effect. The amendment also eases certain other covenants, including covenants restricting our ability to: (i) prepay certain indebtedness, (ii) consummate permitted acquisitions and (iii) make certain restricted payments. Subject to customary grace periods and notice requirements, the ABL Credit Facility also contains customary events of default.

As of December 31, 2011, the Borrowers had no borrowings and $62 million of letters of credit outstanding under the ABL Credit Facility. As of December 31, 2011, we had $515 million of availability under the ABL Credit Facility, which was comprised of $280 million for the U.S. Borrowers and $235 million for the Canadian Borrower.

In accordance with its stated purpose, the proceeds of the ABL Credit Facility were used to fund amounts payable under the Plans of Reorganization and can be used by us for, among other things, working capital, capital expenditures, permitted acquisitions and other general corporate purposes. Upon receipt of the NAFTA settlement amount (see Note 3, “Creditor Protection Proceedings – Reorganization items, net”), we repaid the $100 million we had borrowed on the Emergence Date under the ABL Credit Facility.

As consideration for amending the ABL Credit Facility in 2011 and entering into the ABL Credit Facility in 2010, during 2011 and 2010, we incurred fees of $3 million and $19 million, respectively, which were recorded as deferred financing costs in “Other assets” in our Consolidated Balance Sheets as of December 31, 2011 and 2010, respectively, and are being amortized to interest expense over the term of the facility.

Promissory note

As of December 31, 2010, Augusta Newsprint Company (“ANC”), which operates our newsprint mill in Augusta, Georgia, was owned 52.5% by us. Our consolidated financial statements included this entity on a fully consolidated basis. On January 14, 2011, we acquired the noncontrolling interest in ANC and ANC became a wholly-owned subsidiary of ours. As part of the consideration for the transaction, ANC paid cash of $15 million and issued a secured promissory note (the “note”) in the principal amount of $90 million. The acquisition of the noncontrolling interest in ANC was accounted for as an equity transaction. On June 30, 2011, the note, including accrued interest, was repaid with cash in full.

Interest expense

Interest expense recorded in our Consolidated Statements of Operations totaled $95 million in 2011, $483 million in 2010 and $597 million in 2009. The decrease in interest expense in 2011 compared to 2010 was primarily due to significantly lower debt levels in connection with our emergence from the Creditor Protection Proceedings. Additionally, interest expense in 2010 included a cumulative adjustment of $43 million to increase the accrued interest on the unsecured U.S. dollar denominated debt obligations of the CCAA filers to a fixed exchange rate, as further discussed in Note 3, “Creditor Protection Proceedings – Reorganization items, net.” The decrease in interest expense in 2010 compared to 2009 was a result of ceasing to accrue interest on certain of our pre-petition debt obligations. In accordance with FASB ASC 852, during the Creditor Protection Proceedings, we recorded interest expense on our pre-petition debt obligations only to the extent that: (i) interest would be paid during the Creditor Protection Proceedings or (ii) it was probable that interest would be an allowed priority, secured or unsecured claim. As such, during the Creditor Protection Proceedings, we continued to accrue interest on the Debtors’ pre-petition secured debt obligations and, until the third quarter of 2010, the CCAA filers’ pre-petition unsecured debt obligations. See Note 3, “Creditor Protection Proceedings – Reorganization items, net,” for a discussion of the reversal of post-petition accrued interest on the CCAA filers’ pre-petition unsecured debt obligations. Interest expense in 2010 also included accrued interest on the 2018 Notes, which were issued on October 4, 2010, as discussed above. Contractual interest expense was $714 million in 2010 and $788 million in 2009.

Fair value of total debt

The fair value of our total debt was determined by reference to quoted market prices or by discounting the cash flows using current interest rates for financial instruments with similar characteristics and maturities. The fair value of our debt as of December 31, 2011 and 2010 was approximately $649 million and $1.2 billion (including ACH’s long-term debt of $280 million, which was included in “Liabilities associated with assets held for sale” in our Consolidated Balance Sheet as of December 31, 2010), respectively.

Assets pledged as collateral

The carrying value of assets pledged as collateral for our total debt obligations was approximately $3.8 billion as of December 31, 2011.

Financings during Creditor Protection Proceedings

Bowater DIP Agreement

On April 21, 2009, we entered into a Senior Secured Superpriority Debtor In Possession Credit Agreement (the “Bowater DIP Agreement”) among AbitibiBowater Inc., Bowater Incorporated (“Bowater,” a former subsidiary of ours) and Bowater Canadian Forest Products Inc. (“BCFPI,” a former subsidiary of Bowater), as borrowers, Fairfax, as administrative agent, collateral agent and an initial lender, and Avenue Investments, L.P., as an initial lender. Law Debenture Trust Company of New York replaced Fairfax as the administrative agent and collateral agent under the Bowater DIP Agreement.

The Bowater DIP Agreement provided for term loans in an aggregate principal amount of $206 million (the “Initial Advance”). In connection with an amendment we entered into on July 15, 2010, we prepaid $166 million of the outstanding principal amount of the Initial Advance on July 21, 2010. On the Emergence Date and pursuant to the Plans of Reorganization, the remaining outstanding balance of $40 million, plus accrued interest, was paid in full in cash and the Bowater DIP Agreement was terminated.

In 2010, as consideration for two extensions to the Bowater DIP Agreement, the amendment discussed above, as well as the exit fee that was required to be paid to the lenders upon repayment of the outstanding balance, we incurred fees totaling $6 million. In 2009, as consideration for entering into the Bowater DIP Agreement, we incurred fees of $14 million. All of these fees were recorded in “Reorganization items, net” in our Consolidated Statements of Operations (see Note 3, “Creditor Protection Proceedings – Reorganization items, net”).

Accounts receivable securitization program

Abitibi-Consolidated Inc. (“Abitibi”) and Abitibi Consolidated Sales Corporation (two former subsidiaries of ours, the “Participants”) participated in an accounts receivable securitization program (the “Program”) whereby the Participants shared among themselves the proceeds received under the Program. On June 16, 2009, the former accounts receivable securitization program was amended and restated in its entirety and, as further amended on June 11, 2010, provided for a maximum outstanding limit of $180 million (the “Purchase Limit”) for the purchase of ownership interests in the Participants’ eligible trade accounts receivable by the third-party financial institutions party to the agreement (the “Banks”). On the Emergence Date and pursuant to the Plans of Reorganization, all outstanding receivable interests sold under the Program were repurchased in cash for a price equal to the par amount thereof and the Program was terminated.

In 2009, the transfers of receivable interests to the agent for the Banks were accounted for as sales in accordance with FASB ASC 860. The proceeds received from the Banks were net of an amount based on the Banks’ funding cost plus a margin, which resulted in a loss on the sale of ownership interests in accounts receivable of $17 million in 2009, which was included in “Other expense, net” in our Consolidated Statements of Operations. Effective January 1, 2010, we prospectively applied new accounting guidance relating to the transfers of financial assets. As a result, transfers of the receivable interests to the agent for the Banks no longer qualified as sales. Beginning January 1, 2010, such transfers and the proceeds received from the Banks were accounted for as secured borrowings in accordance with FASB ASC 860. On the Emergence Date, in connection with the termination of the Program, we paid the outstanding balance of secured borrowings of $120 million in full in cash to the Banks. In 2010, the interest on the secured borrowings and the commitment fee for the unused portion of the Purchase Limit charged by the Banks totaled $11 million, which was included in “Interest expense” in our Consolidated Statements of Operations.

In 2010, as consideration for entering into the amendment to the Program, we incurred fees of $4 million. In 2009, as consideration for entering into the amended and restated accounts receivable securitization program, we incurred fees of $11 million. All of these fees were recorded in “Reorganization items, net” in our Consolidated Statements of Operations (see Note 3, “Creditor Protection Proceedings – Reorganization items, net”).

ULC DIP Facility

On December 9, 2009, Abitibi entered into a Cdn$230 million ($218 million, based on the exchange rate in effect on December 9, 2009) Super Priority Debtor-In-Possession Credit Facility (the “ULC DIP Facility”) with 3239432 Nova Scotia Company, a former wholly-owned subsidiary of ours (the “ULC”), which was an intercompany facility that was created upon the sale of MPCo and was funded by a portion of the sale proceeds, as discussed below. On the same date, Cdn$130 million ($123 million, based on the exchange rate in effect on December 9, 2009) of the ULC DIP Facility was drawn. Loans made under the ULC DIP Facility bore no interest. On the Emergence Date and pursuant to the Plans of Reorganization, all amounts outstanding under the ULC DIP Facility were paid in full and the facility was terminated.

The ULC maintained a reserve of approximately Cdn$83 million ($81 million, based on the exchange rate in effect on December 31, 2011) and Cdn$80 million ($80 million, based on the exchange rate in effect on December 31, 2010) as of December 31, 2011 and 2010, respectively, in connection with a guarantee agreement with Alcoa. This reserve was included as restricted cash in “Other assets” in our Consolidated Balance Sheets as of December 31, 2011 and 2010.

Abitibi DIP Agreement

On May 6, 2009, we entered into a letter loan agreement (the “Abitibi DIP Agreement”), among Abitibi and another former subsidiary of ours, as borrowers, certain subsidiaries of Abitibi, as guarantors, and the Bank of Montreal, as lender, which was acknowledged by Investissement Quebec, as sponsor. On December 9, 2009, in connection with the consummation of the MPCo Transactions (as defined and discussed below), we repaid all amounts outstanding under the Abitibi DIP Agreement, totaling $55 million, and terminated the Abitibi DIP Agreement.

In 2009, in connection with entering into and extending the Abitibi DIP Agreement through December 15, 2009, we incurred fees of $6 million, which were recorded in “Reorganization items, net” in our Consolidated Statements of Operations (see Note 3, “Creditor Protection Proceedings – Reorganization items, net”).

Sale of our investment in MPCo

On December 9, 2009, we announced the closing of a series of transactions resulting in the sale of our 60% interest in MPCo to HQ Manicouagan Inc., a wholly-owned direct subsidiary of Hydro-Quebec, for gross cash proceeds of Cdn$615 million ($583 million, based on the exchange rate in effect on December 9, 2009) (the “MPCo Transactions”). We applied the proceeds from the sale as follows, which reflect the exchange rate to U.S. dollars in effect on December 9, 2009:

• $267 million was set aside temporarily in the ULC to secure certain indemnities and undertakings provided to Alcoa under the MPCo Transactions, and the ULC entered into a guarantee agreement with Alcoa for this purpose. Of the $267 million set aside in the ULC, $218 million was used by the ULC to fund the ULC DIP Facility;

• $55 million was used to repay all amounts outstanding under the Abitibi DIP Agreement, $26 million of which was paid from the proceeds of the ULC DIP Facility;

• $113 million was used as a partial repayment of our pre-petition 13.75% senior secured notes due 2011, $72 million was used to pay accrued interest on such notes and $5 million was used to cover fees related to the partial repayment of such notes;

• approximately $67 million was used to pay Alcoa in respect of taxes that it incurred as a result of the MPCo Transactions, as well as our estimated transaction costs, pre-petition amounts owed to the distribution division of Hydro-Quebec by us and pre-petition amounts owed to MPCo and Alcoa for electricity purchased by us from MPCo and to make certain other adjustments contemplated by the MPCo Transactions; and

• approximately $29 million was subject to a two-year holdback by HQ Manicouagan Inc. (and guaranteed by Hydro-Quebec) and was included in “Other assets” in our Consolidated Balance Sheet as of December 31, 2010. In December 2011, and based on the exchange rate in effect on December 31, 2011, we received the holdback amount of $29 million, as well as interest income of approximately $2 million.

For additional information, see Note 5, “Closure Costs, Impairment and Other Related Charges – Impairment of assets held for sale,” and Note 6, “Assets Held for Sale, Liabilities Associated with Assets Held for Sale and Net Gain on Disposition of Assets and Other – Net gain on disposition of assets and other.”

XML

Share-Based Compensation (Details 1) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2011 Y	Dec. 31, 2010
Activity of stock options
Outstanding, Number of Shares, Beginning of Period	0
Granted, Number of Shares	1,106,533
Exercised, Number of Shares	0
Forfeited, Number of Shares	(197,107)
Outstanding, Number of Shares, End of Period	909,426
Exercisable, Number of Shares	134,331
Outstanding, Weighted-Average Exercise Price, Beginning of Period	$ 0
Granted, Fair value at grant date	$ 9.71
Granted, Weighted-Average Exercise Price	$ 20.18
Exercised, Weighted-Average Exercise Price	$ 0.00
Forfeited, Weighted-Average Exercise Price	$ 23.05
Outstanding, Weighted-Average Exercise Price, End of Period	$ 19.56
Exercisable, Weighted-Average Exercise Price	$ 23.05
Outstanding, Aggregate Intrinsic Value, Beginning of Period		9.5
Exercisable, Weighted- Average Contractual Life (years)	9
Outstanding, Aggregate Intrinsic Value, end of Period	$ 0		$ 0
Exercisable, Aggregate Intrinsic Value	$ 0

XML

Condensed Consolidating Financial Information (Details 2) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 USD ($)	Dec. 31, 2011 CAD	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2011 Successor [Member] USD ($)	Dec. 31, 2010 Predecessor [Member] USD ($)	Dec. 31, 2009 Predecessor [Member] USD ($)	Dec. 31, 2011 Parent [Member] Successor [Member] USD ($)	Dec. 31, 2010 Parent [Member] Predecessor [Member] USD ($)	Dec. 31, 2009 Parent [Member] Predecessor [Member] USD ($)	Dec. 31, 2011 Guarantor Subsidiaries [Member] Successor [Member] USD ($)	Dec. 31, 2010 Guarantor Subsidiaries [Member] Predecessor [Member] USD ($)	Dec. 31, 2009 Guarantor Subsidiaries [Member] Predecessor [Member] USD ($)	Dec. 31, 2011 Non-Guarantor Subsidiaries [Member] Successor [Member] USD ($)	Dec. 31, 2010 Non-Guarantor Subsidiaries [Member] Predecessor [Member] USD ($)	Dec. 31, 2009 Non-Guarantor Subsidiaries [Member] Predecessor [Member] USD ($)	Dec. 31, 2011 Consolidating Adjustments [Member] Successor [Member] USD ($)	Dec. 31, 2010 Consolidating Adjustments [Member] Predecessor [Member] USD ($)	Dec. 31, 2009 Consolidating Adjustments [Member] Predecessor [Member] USD ($)
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities					$ 198	$ 39	$ 46				$ 188	$ 168	$ 323	$ 10	$ (129)	$ (277)
Cash flows from investing activities:
Cash invested in fixed assets					(97)	(81)	(101)				(30)	(19)	(28)	(67)	(62)	(73)
Disposition of investment in ACH Limited Partnership (Note 16)	296	290			296									296
Disposition of investment in Manicouagan Power Company ("MPCo") (Note 16)							554									554
Proceeds from holdback related to disposition of investment in MPCo	29				29									29
Disposition of other assets					19	96	119				11	43	16	8	53	103
Proceeds from insurance settlements					8									8
(Increase) decrease in restricted cash					(2)	76	(142)					12	(12)	(2)	64	(130)
Collections on note receivable from affiliate												21	15					(21)	(15)
(Increase) decrease in deposit requirements for letters of credit, net					(8)	(3)	49							(8)	(3)	49
Release of pension trust assets						8						8
Cash received in monetization of derivative financial instruments							5									5
Investment in and advances (to) from affiliates						0			(850)		150	100		(150)	750
Net cash provided by investing activities					245	96	484		(850)		131	165	(9)	114	802	508		(21)	(15)
Cash flows from financing activities:
Dividends and distribution to noncontrolling interests					(21)		(7)							(21)		(7)
Acquisition of noncontrolling interest (Note 16)					(15)									(15)
Issuance of long-term debt						850			850
Payments of long-term debt					(354)	(334)	(118)				(354)	(34)	(1)		(300)	(117)
Payments of financing and credit facility fees					(3)	(46)	(9)				(1)	(33)	(8)	(2)	(13)	(1)
Debtor in possession financing							261						166			95
Debtor in possession financing costs			(10)	(31)		(10)	(31)					(9)	(23)		(1)	(8)
Payments of debtor in possession financing						(206)	(55)					(166)			(40)	(55)
Term loan repayments						(347)									(347)
Short-term financing, net						(338)	(7)					(204)	(74)		(134)	67
Payments of note payable to affiliate															(21)	(15)		21	15
Decrease in secured borrowings, net						(141)						(141)
Net cash (used in) provided by financing activities					(393)	(572)	34		850		(355)	(587)	60	(38)	(856)	(41)		21	15
Net increase (decrease) in cash and cash equivalents					50	(437)	564				(36)	(254)	374	86	(183)	190
Cash and cash equivalents:
Beginning of year					319	756	192	0	0	0	164	418	44	155	338	148	0	0	0
End of year	$ 369				$ 369	$ 319	$ 756	$ 0	$ 0	$ 0	$ 128	$ 164	$ 418	$ 241	$ 155	$ 338	$ 0	$ 0	$ 0

XML

Segment Information (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011 Successor [Member]	Dec. 31, 2010 Successor [Member]	Dec. 31, 2011 Successor [Member] United States [Member]	Dec. 31, 2010 Successor [Member] United States [Member]	Dec. 31, 2011 Successor [Member] Canada [Member]	Dec. 31, 2010 Successor [Member] Canada [Member]	Dec. 31, 2011 Successor [Member] Korea [Member]	Dec. 31, 2010 Successor [Member] Korea [Member]	Dec. 31, 2011 Successor [Member] United Kingdom [Member]	Dec. 31, 2010 Successor [Member] United Kingdom [Member]	Dec. 31, 2011 Successor [Member] Foreign Countries [Member]	Dec. 31, 2010 Successor [Member] Foreign Countries [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member] United States [Member]	Dec. 31, 2009 Predecessor [Member] Canada [Member]	Dec. 31, 2009 Predecessor [Member] Korea [Member]	Dec. 31, 2009 Predecessor [Member] United Kingdom [Member]	Dec. 31, 2009 Predecessor [Member] Foreign Countries [Member]
Summary of long-lived assets, excluding goodwill, intangible assets and deferred tax assets, by country
Long-Lived Assets	$ 2,762	$ 2,957	$ 1,110	$ 1,189	$ 1,629	$ 1,736	$ 23	$ 32	$ 0	$ 0	$ 1,652	$ 1,768	$ 4,414	$ 1,449	$ 2,785	$ 102	$ 78	$ 2,965

XML

Closure Costs Impairment and Other Related Charges (Details Textual) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011 Mokpo, South Korea Paper Mill [Member]	Dec. 31, 2011 Mersey Operations Nova Scotia [Member]	Dec. 31, 2011 Calhoun Paper Mill [Member]	Dec. 31, 2009 Calhoun Paper Mill [Member] Y	Dec. 31, 2011 Coosa Pines Paper Mill [Member]	Dec. 31, 2010 Covington Facility [Member]	Dec. 31, 2009 Idled Newsprint Mill [Member]	Dec. 31, 2011 Kenogami Paper Mill [Member]	Dec. 31, 2011 Saint-Prime Remanufacturing Wood Products Facility [Member]	Dec. 31, 2011 Alma Paper Mill [Member]	Dec. 31, 2011 Baie-Comeau Paper Mill [Member]	Dec. 31, 2010 Investment in MPCo [Member]	Dec. 31, 2009 Investment in MPCo [Member]
Closure Costs Impairment And Other Related Charges (Textual) [Abstract]
Long-lived asset impairment charges		$ 6		$ 3		$ 7	$ 2	$ 85
Accelerated depreciation					21	1			3	1	1	2
Estimated remaining useful lives of paper machines					0
Estimated salvage values					0
Curtailment loss			3			3			2
Severance and other costs	1
Severance costs		3	3			3			5
Long-lived asset impairment charges held for sale														84
Contractual obligations and other commitments													$ 8

XML

Quarterly Information (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Information [Abstract]

Quarterly Information (Unaudited)

Note 27. Quarterly Information (Unaudited)

Year ended December 31, 2011 (Successor)	First			Second			Third			Fourth
(In millions, except per share amounts)	Quarter			Quarter			Quarter			Quarter			Year
Sales	$	1,185		$	1,200		$	1,224		$	1,147		$	4,756
Operating income (1)		27			52			72			47			198
Net income (loss) attributable to AbitibiBowater Inc.		30			61			(44	)		(6	)		41
Basic net income (loss) per share attributable to AbitibiBowater Inc. common shareholders		0.31			0.63			(0.46	)		(0.06	)		0.42
Diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders		0.31			0.63			(0.46	)		(0.06	)		0.42
Year ended December 31, 2010 (Predecessor)	First			Second			Third			Fourth
(In millions, except per share amounts)	Quarter			Quarter			Quarter			Quarter			Year
Sales	$	1,100		$	1,182		$	1,192		$	1,272		$	4,746
Operating (loss) income (2)		(110	)		(73	)		12			11			(160	)
Net (loss) income attributable to AbitibiBowater Inc.		(500	)		(297	)		(829	)		4,240			2,614
Basic net (loss) income per share attributable to AbitibiBowater Inc. common shareholders		(8.68	)		(5.15	)		(14.35	)		73.48			45.30
Diluted net (loss) income per share attributable to AbitibiBowater Inc. common shareholders		(8.68	)		(5.15	)		(14.35	)		44.82			27.63

⁽¹⁾  Operating income for the year ended December 31, 2011 included the following special items:

		000000			000000			000000			000000			000000	000000
	Successor
(In millions)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Net gain (loss) on disposition of assets and other	$	1		$	3		$	(1	)	$	–		$	3
Closure costs, impairment and other related charges		(13	)		(4	)		(17	)		(12	)		(46)
Write-downs of inventory		(1	)		–			–			(2	)		(3)
Employee termination costs		(4	)		(3	)		(5	)		–			(12)
Transaction costs in connection with our proposed acquisition of Fibrek Inc.		–			–			–			(5	)		(5)
	$	(17	)	$	(4	)	$	(23	)	$	(19	)	$	(63)

⁽²⁾  Operating (loss) income for the year ended December 31, 2010 included the following special items:

		000000			000000			000000		000000			000000		000000
	Predecessor
(In millions)	First Quarter			Second Quarter			Third Quarter		Fourth Quarter			Year
Net gain on disposition of assets and other	$	9		$	4		$	1	$	16		$	30
Closure costs, impairment and other related charges		(5	)		(3	)		3		(6	)		(11	)
Employee termination credit		8			–			–		–			8
	$	12		$	1		$	4	$	10		$	27

XML

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

Note 9. Net Income (Loss) Per Share

The weighted-average number of common shares outstanding used to calculate basic and diluted net income (loss) per share attributable to AbitibiBowater Inc. common shareholders for the years ended December 31, 2011, 2010 and 2009 was as follows:

	Successor		Predecessor
(In millions)	2011		2010		2009
Basic weighted-average number of common shares outstanding		97.1		57.7		57.7
Effect of potentially dilutive securities and pre-petition convertible notes		–		36.9		–
Diluted weighted-average number of common shares outstanding		97.1		94.6		57.7

As discussed in Note 21, “Share Capital,” (i) all equity interests in the Predecessor Company existing immediately prior to the Emergence Date, including, among other things, all of our common stock issued and outstanding, were discharged, canceled, released and extinguished and (ii) on the Emergence Date and pursuant to the Plans of Reorganization, we issued an aggregate of 97,134,954 shares of Successor Company common stock. The weighted-average number of common shares outstanding as of December 31, 2010 assumes that the Predecessor Company common stock remained outstanding through the December 31, 2010 Convenience Date.

For the year ended December 31, 2011, no adjustment to net income attributable to AbitibiBowater Inc. common shareholders was necessary to calculate basic and diluted net income per share. For the year ended December 31, 2011, the dilutive impact of 0.9 million option shares and 0.4 million equity-classified RSUs and DSUs on the weighted-average number of common shares outstanding used to calculate diluted net income per share was nominal. For the year ended December 31, 2010, an adjustment to our basic weighted-average number of common shares outstanding of 36.9 million shares was necessary for the dilutive effect of the assumed conversion of the pre-petition convertible notes, which were outstanding at that time. However, no adjustment to net income attributable to AbitibiBowater Inc. common shareholders was necessary for the year ended December 31, 2010 because we did not record interest expense related to such convertible notes as a result of the Creditor Protection Proceedings. For the year ended December 31, 2009, no adjustment to net loss attributable to AbitibiBowater Inc. common shareholders and the diluted weighted-average number of common shares outstanding for the assumed conversion of such convertible notes was necessary as the impact would have been anti-dilutive.

Options to purchase 2.4 million shares and 2.9 million shares for the years ended December 31, 2010 and 2009, respectively, were excluded from the calculation of diluted net income (loss) per share as the impact would have been anti-dilutive.

XML

Pension and Other Postretirement Benefit Plans (Details 7) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Domestic Plans [Member]
Effect of one-percentage point change in assumed health care cost trend rates
Benefit obligation, 1% increase	$ 36
Benefit obligation, 1% increase percentage	15.00%
Benefit obligation, 1% decrease	(30)
Benefit obligation, 1% decrease percentage	(13.00%)
Service and interest costs, 1% increase	2
Service and interest costs, 1% increase percentage	15.00%
Service and interest costs, 1% decrease	(2)
Service and interest costs, 1% decrease percentage	(14.00%)
Foreign Plans [Member]
Effect of one-percentage point change in assumed health care cost trend rates
Benefit obligation, 1% increase	8
Benefit obligation, 1% increase percentage	5.00%
Benefit obligation, 1% decrease	(7)
Benefit obligation, 1% decrease percentage	(4.00%)
Service and interest costs, 1% increase	0
Service and interest costs, 1% increase percentage	5.00%
Service and interest costs, 1% decrease	$ 0
Service and interest costs, 1% decrease percentage	(4.00%)