Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 21. Segment Information

We manage our business based on the products we manufacture. Accordingly, our reportable segments correspond to our principal product lines: market pulp, tissue, wood products and paper.

None of the income or loss items following “Operating income” 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, inventory write-downs related to closures, start-up costs, gains and losses on disposition of assets, as well as other discretionary charges or credits are not allocated to our segments. We allocate depreciation and amortization expense to our segments, although the related fixed assets and amortizable intangible assets are not allocated to segment assets. Additionally, all selling, general and administrative expenses are allocated to our segments, with the exception of certain discretionary charges and credits, which we present under “corporate and other.”

In each of 2021, 2020 and 2019, no assets were identifiable by segment and reviewed by management.

Information about certain segment data for the years ended December 31, 2021, 2020 and 2019, was as follows:

(In millions)	Market Pulp (1)		Tissue		Wood Products (2)		Paper		Segment Total		Corporate and Other		Total
Sales
2021	$	813	$	161	$	1,718	$	972	$	3,664	$	—	$	3,664
2020	$	668	$	173	$	1,025	$	934	$	2,800	$	—	$	2,800
2019	$	797	$	165	$	616	$	1,345	$	2,923	$	—	$	2,923
Depreciation and amortization
2021	$	24	$	19	$	42	$	62	$	147	$	17	$	164
2020	$	24	$	18	$	43	$	69	$	154	$	15	$	169
2019	$	23	$	18	$	34	$	72	$	147	$	20	$	167
Operating income (loss)
2021	$	99	$	(24)	$	772	$	(19)	$	828	$	(244)	$	584
2020	$	(1)	$	(1)	$	276	$	(46)	$	228	$	(129)	$	99
2019	$	39	$	(16)	$	(6)	$	82	$	99	$	(82)	$	17
Capital expenditures
2021	$	23	$	4	$	50	$	24	$	101	$	11	$	112
2020	$	15	$	8	$	26	$	23	$	72	$	6	$	78
2019	$	29	$	8	$	23	$	43	$	103	$	10	$	113

(1)Inter-segment sales of $31 million, $28 million and $36 million, were excluded from market pulp sales for the years ended December 31, 2021, 2020 and 2019, respectively. These sales were transacted either at the lowest market price of the previous month or cost.

(2)Wood products sales to our joint ventures, which are transacted at arm’s length negotiated prices, were $65 million, $28 million and $22 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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 2021, 2020 or 2019 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, 2021, 2020 and 2019, were as follows:

(In millions)	2021		2020		2019
U.S.	$	2,591	$	2,038	$	2,026
Foreign countries:
Canada		764		463		405
Mexico		60		63		87
Other countries		249		236		405
		1,073		762		897
	$	3,664	$	2,800	$	2,923

Long-lived assets by country as of December 31, 2021 and 2020, were as follows:

(In millions)	2021		2020
U.S.	$	518	$	666
Canada		863		898
	$	1,381	$	1,564