Segment Disclosures

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Disclosures

NOTE 14.

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SEGMENT DISCLOSURES

Following the sale of the Company’s Personal Care business on March 1, 2021, the Company operates as a single reportable segment as described below, which also represents its only operating segment:

• Pulp and Paper – consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, hardwood and fluff pulp and high quality airlaid and ultrathin laminated cores.

An analysis and reconciliation of the Company’s business segment information to the respective information in the financial statements is as follows:

	Successor			Predecessor
	For the three months ended
	March 31,			March 31,
SEGMENT DATA	2022			2021
	$			$
Sales by product group
Communication papers		579			488
Specialty and packaging papers		175			137
Market pulp		256			246
Consolidated sales		1,010			871
Operating income (loss) from continuing operations (1)
Pulp and Paper		39			1
Corporate		(14	)		(10	)
Consolidated operating income (loss) from continuing    operations		25			(9	)
Interest expense, net		21			15
Non-service components of net periodic benefit cost		(9	)		(6	)
Earnings (loss) before income taxes		13			(18	)
Income tax expense (benefit)		3			(3	)
Earnings (loss) from continuing operations		10			(15	)
Earnings (loss) from discontinued operations, net of taxes		13			(14	)
Net earnings (loss)		23			(29	)

⁽¹⁾ The Government of Canada created the Canada Emergency Wage Subsidy ("CEWS") to provide financial support for businesses during the COVID-19 pandemic and prevent large layoffs. For the three months ended March 31, 2021, the Company recognized $4 million as a reduction of costs related to this program (CDN $5 million) ($3 million in Cost of sales (CDN $4 million) and $1 million in Selling, general and administrative (CDN $1 million)).