10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022

☐ 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

RESOLUTE FOREST PRODUCTS 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)

1010 De La Gauchetière Street West	Suite 400	Montreal	Quebec	Canada	H3B 2N2
(Address of principal executive offices) (Zip Code)

(514) 875-2160

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

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

Title of class	Trading Symbol	Name of exchange on which registered
Common Stock, par value $0.001 per share	RFP	New York Stock Exchange
		Toronto Stock Exchange

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 ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

    Yes ☒    No ☐

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

Large Accelerated Filer ☐ Accelerated Filer ☒ Non-accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

    Yes ☐    No ☒

As of April 29, 2022, there were 76,796,573 shares of Resolute Forest Products Inc. common stock, $0.001 par value, outstanding.

RESOLUTE FOREST PRODUCTS INC.

TABLE OF CONTENTS

	Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021	1
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	2
Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	3
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2022 and 2021	4
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	5
Notes to Unaudited Interim Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk	38
Item 4. Controls and Procedures	38
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	39
Item 1A. Risk Factors	39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 6. Exhibits	40
SIGNATURES	41

PART I.    FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

RESOLUTE FOREST PRODUCTS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in millions of U.S. dollars, except per share amounts)

	Three Months Ended March 31,
	2022		2021
Sales	$	945	$	873
Costs and expenses:
Cost of sales, excluding depreciation, amortization and distribution costs		547		522
Depreciation and amortization		32		41
Distribution costs		92		84
Selling, general and administrative expenses		36		46
Closure costs, impairment and other related charges		4		3
Net gain on disposition of assets		(1)		—
Operating income		235		177
Interest expense		(5)		(6)
Non-operating pension and other postretirement benefit (costs) credits		(7)		2
Other income (expense), net (Note 3)		45		(45)
Income before income taxes		268		128
Income tax provision (Note 11)		(58)		(40)
Net income including noncontrolling interest		210		88
Net income attributable to noncontrolling interest		—		(1)
Net income attributable to Resolute Forest Products Inc.	$	210	$	87
Net income per share attributable to Resolute Forest Products Inc. common shareholders (Note 5):
Basic	$	2.71	$	1.07
Diluted	$	2.68	$	1.06
Weighted-average number of Resolute Forest Products Inc. common shares outstanding:
Basic		77.4		81.2
Diluted		78.2		81.9

See accompanying notes to unaudited interim Consolidated Financial Statements.

1

RESOLUTE FOREST PRODUCTS INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited, in millions of U.S. dollars)

	Three Months Ended March 31,
	2022		2021
Net income including noncontrolling interest	$	210	$	88
Other comprehensive income:
Unamortized prior service costs
Change in unamortized prior service costs (Note 4)		—		(1)
Income tax provision		—		—
Change in unamortized prior service costs, net of tax		—		(1)
Unamortized actuarial losses
Change in unamortized actuarial losses (Note 4)		29		49
Income tax provision		(4)		(12)
Change in unamortized actuarial losses, net of tax		25		37
Foreign currency translation		1		—
Other comprehensive income, net of tax		26		36
Comprehensive income including noncontrolling interest		236		124
Comprehensive income attributable to noncontrolling interest		—		(1)
Comprehensive income attributable to Resolute Forest Products Inc.	$	236	$	123

See accompanying notes to unaudited interim Consolidated Financial Statements.

2

RESOLUTE FOREST PRODUCTS INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions of U.S. dollars, except per share amount)

	March 31, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	162	$	112
Accounts receivable, net:
Trade		301		257
Other		56		56
Inventories, net (Note 6)		595		510
Other current assets		55		54
Total current assets		1,169		989
Fixed assets, less accumulated depreciation of $1,783 and $1,752 as of March 31, 2022 and December 31, 2021, respectively		1,261		1,270
Amortizable intangible assets, less accumulated amortization of $38 and $37 as of March 31, 2022 and December 31, 2021, respectively		56		57
Goodwill (Note 2)		104		31
Deferred income tax assets		600		653
Operating lease right-of-use assets		58		54
Other assets (Note 7)		516		484
Total assets	$	3,764	$	3,538
Liabilities and equity
Current liabilities:
Accounts payable and other (Note 8)	$	442	$	421
Current portion of long-term debt (Note 9)		2		2
Current portion of operating lease liabilities		8		8
Total current liabilities		452		431
Long-term debt, net of current portion (Note 9)		300		300
Pension and other postretirement benefit obligations		1,124		1,151
Operating lease liabilities, net of current portion		55		51
Other liabilities		81		88
Total liabilities		2,012		2,021
Commitments and contingencies (Note 12)
Equity:
Resolute Forest Products Inc. shareholders’ equity:
Common stock, $0.001 par value. 121.3 million shares issued and 76.8 million shares outstanding as of March 31, 2022; 121.2 million shares issued and 76.8 million shares outstanding as of December 31, 2021		—		—
Additional paid-in capital		3,808		3,807
Deficit		(799)		(1,009)
Accumulated other comprehensive loss (Note 4)		(1,036)		(1,062)
Treasury stock at cost, 44.5 million shares and 44.4 million shares as of March 31, 2022 and December 31, 2021, respectively		(224)		(222)
Total Resolute Forest Products Inc. shareholders’ equity		1,749		1,514
Noncontrolling interest		3		3
Total equity		1,752		1,517
Total liabilities and equity	$	3,764	$	3,538

See accompanying notes to unaudited interim Consolidated Financial Statements.

3

RESOLUTE FOREST PRODUCTS INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited, in millions of U.S. dollars)

	Three Months Ended March 31, 2022
	Resolute Forest Products Inc. Shareholders’ Equity
	Common Stock		Additional Paid-In Capital		Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Non-controlling Interest		Total Equity
Balance as of December 31, 2021	$	—	$	3,807	$	(1,009)	$	(1,062)	$	(222)	$	3	$	1,517
Share-based compensation, net of withholding taxes		—		1		—		—		—		—		1
Net income		—		—		210		—		—		—		210
Purchases of treasury stock (0.1 million shares) (Note 13)		—		—		—		—		(2)		—		(2)
Stock unit awards vested and stock options exercised (0.1 million shares), net of shares forfeited for employee withholding taxes		—		—		—		—		—		—		—
Other comprehensive income, net of tax		—		—		—		26		—		—		26
Balance as of March 31, 2022	$	—	$	3,808	$	(799)	$	(1,036)	$	(224)	$	3	$	1,752

	Three Months Ended March 31, 2021
	Resolute Forest Products Inc. Shareholders’ Equity
	Common Stock		Additional Paid-In Capital		Deficit		Accumulated Other Comprehensive Loss		Treasury Stock		Non- controlling Interest		Total Equity
Balance as of December 31, 2020	$	—	$	3,804	$	(1,235)	$	(1,314)	$	(174)	$	1	$	1,082
Share-based compensation, net of withholding taxes		—		(2)		—		—		—		—		(2)
Net income		—		—		87		—		—		1		88
Purchases of treasury stock (1.7 million shares) (Note 13)		—		—		—		—		(17)		—		(17)
Stock unit awards vested and stock options exercised (0.4 million shares), net of shares forfeited for employee withholding taxes		—		—		—		—		—		—		—
Other comprehensive income, net of tax		—		—		—		36		—		—		36
Balance as of March 31, 2021	$	—	$	3,802	$	(1,148)	$	(1,278)	$	(191)	$	2	$	1,187

See accompanying notes to unaudited interim Consolidated Financial Statements.

4

RESOLUTE FOREST PRODUCTS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions of U.S. dollars)

	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net income including noncontrolling interest	$	210	$	88
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Share-based compensation		2		2
Depreciation and amortization		32		41
Closure costs, impairment and other related charges		(2)		—
Deferred income taxes		56		40
Net pension contributions and other postretirement benefit payments		(8)		(23)
Gain on previously-held equity investments (Note 2)		(41)		—
Net gain on disposition of assets		(1)		—
Gain on translation of foreign currency denominated deferred income taxes		(6)		(12)
Loss on translation of foreign currency denominated pension and other postretirement benefit obligations		9		16
(Gain) loss on commodity contracts (Note 3)		(2)		14
Net planned major maintenance amortization (payments)		7		(3)
Changes in working capital:
Accounts receivable		(36)		(51)
Inventories		(67)		(50)
Other current assets		(7)		—
Accounts payable and other		13		2
Other, net		(12)		10
Net cash provided by operating activities		147		74
Cash flows from investing activities:
Cash invested in fixed assets		(13)		(14)
Acquisition of business, net of cash acquired (Note 2)		(43)		—
Disposition of assets		4		—
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber (Note 7)		(43)		(32)
Other investing activities, net		—		3
Net cash used in investing activities		(95)		(43)
Cash flows from financing activities:
Issuance of long-term debt (Note 9)		—		300
Repayments of debt (Note 9)		—		(376)
Purchases of treasury stock (Note 13)		(2)		(17)
Payments of financing fees		—		(6)
Net cash used in financing activities		(2)		(99)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash		—		—
Net increase (decrease) in cash and cash equivalents, and restricted cash	$	50	$	(68)
Cash and cash equivalents, and restricted cash:
Beginning of period	$	152	$	159
End of period	$	202	$	91
Cash and cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	$	162	$	33
Restricted cash (included in “Other current assets”)	$	—	$	18
Restricted cash (included in “Other assets”)	$	40	$	40

See accompanying notes to unaudited interim Consolidated Financial Statements.

5

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Note 1. Organization and Basis of Presentation

Nature of operations

Resolute Forest Products Inc. (with its subsidiaries, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent,” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and paper, which are marketed in over 60 countries. We own or operate some 40 facilities as well as power generation assets, in the U.S. and Canada.

Financial statements

Our unaudited interim consolidated financial statements and accompanying notes (or, the “Consolidated Financial Statements”) have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or, the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles (or, “GAAP”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended March 31, 2022, are not necessarily indicative of the results to be expected for the full year. These Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022.

New accounting pronouncement adopted in 2022

ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”

Effective January 1, 2022, we adopted ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” issued by the Financial Accounting Standards Board in 2021, which revises the accounting for acquired revenue contracts with customers in a business combination. The adoption of this accounting guidance, which was applied prospectively, did not impact our Consolidated Financial Statements and disclosures.

Note 2. Business Acquisition

On March 4, 2022 (or, the “Acquisition Date”), we acquired control of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership (or, “Larouche and St-Prime”), that were previously held as 50% owned joint ventures, by acquiring the remaining 50% equity interests from Louisiana-Pacific Canada Ltd., a wholly-owned subsidiary of Louisiana-Pacific Corporation, for a cash consideration of $51 million (including $1 million of working capital adjustment, and net of cash acquired of $8 million), subject to post-closing adjustments. Larouche and St-Prime, which are engineered wood product facilities located in Quebec, produce I-joists for the construction industry. This acquisition solidifies our presence in the engineered wood product segment.

We accounted for our previously held equity investments in Larouche and St-Prime using the equity method of accounting since we had joint control prior to acquiring a controlling interest on the Acquisition Date.

We accounted for the acquisition of Larouche and St-Prime as a business combination in accordance with the acquisition method of accounting, which requires us to record the identifiable assets acquired and liabilities assumed at fair value. The amount by which the purchase price exceeds the fair value of the net assets acquired is recorded as goodwill. We have commenced the appraisals necessary to assess the fair values of the assets acquired, including amortizable intangible assets identified related to customer relationships, and liabilities assumed and the amount of goodwill to be recognized as of the Acquisition Date. The fair value assessment process of the assets acquired and liabilities assumed is ongoing. Our preliminary allocation of the purchase price is based on the corresponding book values of Larouche and St-Prime as of the Acquisition Date, except for the inventories, which are recorded at their fair values. The amount by which the purchase price exceeds these values was recorded in “Goodwill” in our Consolidated Balance Sheet. This allocation is preliminary in nature and thus, could yield significant adjustments of the values allocated upon completion of the fair value assessment process. The final determination of the fair values of the assets acquired and liabilities assumed will be completed within the measurement period of up to one year from the Acquisition Date permitted under GAAP.

6

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

The following table summarizes our preliminary allocation of the purchase price of assets acquired and liabilities assumed at the Acquisition Date:

(Unaudited, in millions)
Cash and cash equivalents	$	16
Accounts receivable		11
Inventories		16
Current assets acquired	$	43
Fixed assets	$	6
Goodwill (1)		73
Deferred income tax assets		1
Total assets acquired and goodwill	$	123
Accounts payable and other	$	4
Current liabilities assumed		4
Pension and other postretirement benefit obligations		1
Total liabilities assumed	$	5
Net assets acquired	$	118
Cash consideration transferred		59
Fair value of the previously held interests in Larouche and St-Prime		59
Total fair value of consideration	$	118

(1)The preliminary purchase price allocation resulted in the recognition of an amount of goodwill of $73 million. As explained above, the allocation process of assets acquired and liabilities assumed is ongoing and, as a result, the value allocated to goodwill could change significantly following the completion of the purchase price allocation.

At the Acquisition Date, our previously-held equity investments of $18 million were remeasured at a fair value of $59 million, which resulted in a gain of $41 million. The gain was recorded in “Other income (expense), net” in our Consolidated Statements of Operations for the three months ended March 31, 2022.

We applied an income approach, specifically the discounted cash flow (or, the “DCF”) method, to measure the fair value of our equity interest in Larouche and St-Prime, as of immediately prior to the business acquisition. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, discount rate and tax rate. The cash flows employed in the DCF analysis are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, existing firm orders, long term business plans and recent operating performance. The discount rate utilized in the DCF analysis is based on the respective company’s weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital, adjusted as appropriate to consider the risk inherent in future cash flows of the Company.

We ceased applying the equity method for our investments in Larouche and St-Prime and the net assets acquired and results of operations are consolidated from the Acquisition Date and are included in the wood products segment.

From the Acquisition Date to March 31, 2022, our consolidated financial results included sales of $14 million and net income of nil attributable to Larouche and St-Prime.

The following unaudited pro forma information for the three months ended March 31, 2022, represents our results of operations as if the acquisition of Larouche and St-Prime had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future.

7

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

	Three Months Ended March 31,
(Unaudited, in millions)		2022		2021
Sales	$	965	$	887
Net income attributable to Resolute Forest Products Inc. (1)	$	182	$	120

(1)For the pro forma information, the gain on previously-held equity investments of $41 million was considered realized in the three months ended March 31, 2021, and deducted from the three months ended March 31, 2022.

Note 3. Other Income (Expense), Net

Other income (expense), net for the three months ended March 31, 2022 and 2021, was comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Foreign exchange loss	$	(3)	$	(5)
Gain (loss) on commodity contracts (1)		2		(37)
Income from equity method investments (2)		6		—
Gain on previously-held equity investments (Note 2)		41		—
Miscellaneous expense		(1)		(3)
	$	45	$	(45)

(1)    For the three months ended March 31, 2021, the loss was principally related to lumber futures contracts, of which a $14 million loss was unrealized; none of these contracts were outstanding as of March 31, 2022.

(2)Principally related to the equity investment in Larouche and St-Prime in which we acquired a controlling interest during the three months ended March 31, 2022. See Note 2, “Business Acquisition” for more information.

Note 4. Accumulated Other Comprehensive Loss

The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2021	$	(5)	$	(1,051)	$	(6)	$	(1,062)
Other comprehensive income before reclassifications (1)		—		10		1		11
Amounts reclassified from accumulated other comprehensive loss		—		15		—		15
Net current period other comprehensive income		—		25		1		26
Balance as of March 31, 2022	$	(5)	$	(1,026)	$	(5)	$	(1,036)

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2020	$	(1)	$	(1,307)	$	(6)	$	(1,314)
Other comprehensive income before reclassifications (2)		—		22		—		22
Amounts reclassified from accumulated other comprehensive loss		(1)		15		—		14
Net current period other comprehensive (loss) income		(1)		37		—		36
Balance as of March 31, 2021	$	(2)	$	(1,270)	$	(6)	$	(1,278)

8

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

(1)    The indefinite idling of pulp and paper operations at our Calhoun (Tennessee) mill triggered pension special termination benefit costs and remeasurement of the pension and other postretirement benefit (or, “OPEB”) obligations related to its plans as of January 31, 2022, resulting in a loss of $4 million and an actuarial gain of $14 million, totaling a net gain of $10 million ($10 million net of tax).

(2)    The indefinite idling of the Amos and Baie-Comeau (Quebec) mills triggered curtailment and remeasurement of the pension and OPEB obligations related to their plans as of March 31, 2021, resulting in a curtailment gain of $8 million and an actuarial gain of $22 million, totaling $30 million ($22 million net of tax).

The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021, were comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021		Affected Line in the Consolidated Statements of Operations
Unamortized Prior Service Costs or Credits
Amortization of prior service costs	$	—	$	—	Non-operating pension and other postretirement benefit (costs) credits (1)
Curtailment gain		—		(1)	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		—		—	Income tax provision
Net of tax		—		(1)
Unamortized Actuarial Losses
Amortization of actuarial losses		16		19	Non-operating pension and other postretirement benefit (costs) credits (1)
Other items		3		—	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		(4)		(4)	Income tax provision
Net of tax		15		15
Total Reclassifications	$	15	$	14

(1)These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 10, “Employee Benefit Plans.”

Note 5. Net Income Per Share

The reconciliation of the basic and diluted net income per share for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions, except per share amounts)	2022		2021
Numerator:
Net income attributable to Resolute Forest Products Inc.	$	210	$	87
Denominator:
Weighted-average number of Resolute Forest Products Inc. common shares outstanding		77.4		81.2
Dilutive impact of nonvested stock unit awards and stock options		0.8		0.7
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding		78.2		81.9
Net income per share attributable to Resolute Forest Products Inc. common shareholders:
Basic	$	2.71	$	1.07
Diluted	$	2.68	$	1.06

9

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) that were excluded from the calculation of diluted net income per share, as their impact would have been antidilutive, for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions)	2022	2021
Stock options	0.3	0.8
Stock unit awards	—	—

Note 6. Inventories, Net

Inventories, net as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Raw materials	$	174	$	159
Work in process		62		57
Finished goods		205		148
Mill stores and other supplies		154		146
	$	595	$	510

Note 7. Other Assets

Other assets as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Countervailing duty cash deposits on softwood lumber (Note 12)	$	365	$	339
Anti-dumping duty cash deposits on softwood lumber (Note 12)		75		58
Equity method investments		11		22
Restricted cash		40		40
Other		25		25
	$	516	$	484

Note 8. Accounts Payable and Other

Accounts payable and other as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Trade accounts payable	$	308	$	262
Accrued compensation		62		89
Accrued interest		2		6
Pension and other postretirement benefit obligations		14		14
Accrued provision related to Fibrek Inc. litigation (Note 12)		22		21
Income and other taxes payable		5		4
Other		29		25
	$	442	$	421

10

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Note 9. Long-Term Debt

Overview

Long-term debt, including current portion, as of March 31, 2022 and December 31, 2021, was comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
4.875% senior unsecured notes due 2026:
Principal amount	$	300	$	300
Deferred financing costs		(5)		(5)
Total 4.875% senior unsecured notes due 2026		295		295
Finance lease obligations		6		6
Other debt		1		1
Total debt		302		302
Less: Current portion of finance lease obligations and other debt		(2)		(2)
Long-term debt, net of current portion	$	300	$	300

Debt availabilities

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Term Loan Facility	$	180	$	180
Revolving Credit Facility		180		180
ABL Credit Facility (1)		377		307
Secured delayed draw term loan facility (C$220 million as of March 31, 2022 and December 31, 2021)		176		174
Total availability	$	913	$	841

(1)The availability as of March 31, 2022, was $377 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. The availability as of December 31, 2021, was $307 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits.

Senior Unsecured Notes

2026 Notes

On February 2, 2021, we issued $300 million aggregate principal amount of 4.875% senior unsecured notes due 2026 (or, the “2026 Notes”) at an issue price of 100%, pursuant to an indenture as of that date (or, the “Indenture”). Upon their issuance, the 2026 Notes were recorded at their fair value of $300 million. Interest on the 2026 Notes is payable semi-annually on March 1 and September 1 of each year, beginning on September 1, 2021, until their maturity date of March 1, 2026. In connection with the issuance of the 2026 Notes, we incurred financing costs of $6 million, which were deferred and recorded as a reduction of the principal. Deferred financing costs are amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes.

The fair value of the 2026 Notes (Level 1) was $289 million as of March 31, 2022.

2023 Notes

On February 2, 2021, we placed the net proceeds from the issuance of the 2026 Notes together with additional cash, into trust for the benefit of the holders of the 5.875% senior unsecured notes due 2023 (or, the “2023 Notes”) to redeem all of the $375 million outstanding aggregate principal amount of the 2023 Notes (or, the “Redemption”) at a price of 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The Redemption occurred on February 18, 2021. As a result of the repurchase, we recorded a net loss on extinguishment of debt of

11

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

$3 million in “Other income (expense), net” in our Consolidated Statement of Operations for the three months ended March 31, 2021.

Senior Secured Credit Facility

On April 19, 2021 (or, the “Effective Date”), we entered into a first amendment to the amended and restated senior secured credit facility (or, the “Senior Secured Credit Facility”). The amount available under the Senior Secured Credit Facility remains unchanged for up to $360 million and is comprised of a term loan facility of up to $180 million with a delayed draw period of up to three years and the choice of maturities of six to ten years from the date of drawing (or, the “Term Loan Facility”); and a six-year revolving credit facility of up to $180 million (or, the “Revolving Credit Facility”). On the Effective Date, we repaid our $180 million term loans under the amended and restated senior secured credit facility with a combination of proceeds of borrowings under the Revolving Credit Facility and cash on hand. The amendment then reinstated the full amount of the Term Loan Facility. There is also an uncommitted option to increase the Senior Secured Credit Facility by up to an additional $360 million, subject to certain terms and conditions.

The obligations under the Senior Secured Credit Facility are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of the Company’s facility in Calhoun and a first priority security interest on the fixtures and equipment located therein. On March 2, 2022, the Company entered into agreements to provide the following additional security under the Senior Secured Credit Facility: (i) a first priority mortgage on the real property of the Company’s sawmill facilities in Glenwood and El Dorado (Arkansas) and a first priority security interest on the fixtures and equipment located therein, and (ii) a first priority security interest on the fixtures and equipment at the Company’s sawmill facility in Cross City (Florida).

ABL Credit Facility

On May 14, 2019, we entered into an amended senior secured asset-based revolving credit facility (or, the “ABL Credit Facility”) with an aggregate lender commitment of up to $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves.

Effective January 21, 2021, we reduced the commitment under the Canadian tranche of our senior secured asset-based revolving credit facility by $50 million, to $250 million, resulting in an aggregate commitment of $450 million, subject to borrowing base limitations. The obligations under the ABL Credit Facility are guaranteed by certain of our material subsidiaries.

On December 15, 2021, we entered into an amendment to the credit agreement, which reset the facility and extended the maturity date to December 15, 2026. The agreement also contains hardwired benchmark replacement provisions for future transition of LIBOR and may be amended based on agreed upon Environmental, Social and Governance (or, “ESG”) key performance indicators as described in the credit agreement.

12

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Note 10. Employee Benefit Plans

Pension and other postretirement benefit plans

The components of net periodic benefit costs (credits) relating to our pension and OPEB plans for the three months ended March 31, 2022 and 2021, were as follows:

Pension Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	36	$	33
Expected return on plan assets		(49)		(54)
Amortization of actuarial losses		17		21
Amortization of prior service credits		—		—
Non-operating pension costs		4		—
Service cost		3		4
Net periodic benefit costs before special events		7		4
Other loss (gain)		3		(1)
	$	10	$	3

OPEB Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	1	$	1
Amortization of actuarial gains		(1)		(2)
Non-operating other postretirement benefit credits		—		(1)
Service cost		—		—
Net periodic benefit credits before special events		—		(1)
Curtailment gain		—		—
	$	—	$	(1)

Defined contribution plans

Our expense for the defined contribution plans totaled $5 million for the three months ended March 31, 2022 and 2021.

13

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Note 11. Income Taxes

The income tax provision attributable to income before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three months ended March 31, 2022 and 2021, as a result of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Income before income taxes	$	268	$	128
Income tax provision:
Expected income tax provision		(56)		(27)
Changes resulting from:
Valuation allowance		33		8
Foreign exchange		2		2
U.S. tax on non-U.S. earnings		(29)		(18)
State income taxes, net of federal income tax benefit		(1)		2
Foreign tax rate differences		(13)		(8)
Other, net		6		1
	$	(58)	$	(40)

During the three months ended March 31, 2022, we used $33 million of deferred income tax assets that were fully reserved to offset mainly the tax implications relating to the global intangible low-taxed income (or, “GILTI”) inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income.

During the three months ended March 31, 2021, we used $8 million of deferred income tax assets that were fully reserved to offset the tax implications relating to the GILTI.

Note 12. Commitments and Contingencies

Legal matters

We become involved in various legal proceedings, claims and governmental inquiries, investigations, and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, product safety and liability, asbestos exposure, financial reporting and disclosure obligations, corporate governance, Indigenous peoples’ claims, antitrust, governmental regulations, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Any recovery from litigation or settlement of claims that is a gain contingency is recognized if, and when, realized or realizable. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of March 31, 2022, will not have a material adverse effect on our Consolidated Financial Statements.

Asbestos-related lawsuits

We are involved in a number of asbestos-related lawsuits filed primarily in U.S. state courts, including certain cases involving multiple defendants. These lawsuits principally allege direct or indirect personal injury or death resulting from exposure to asbestos-containing premises. While we dispute the plaintiffs’ allegations and intend to vigorously defend these claims, the ultimate resolution of these matters cannot be determined at this time. These lawsuits frequently involve claims for unspecified compensatory and punitive damages, and we are unable to reasonably estimate a range of possible losses, which may not be covered in whole or in part by our insurance coverage. However, unfavorable rulings, judgments or settlement terms could materially impact our Consolidated Financial Statements. Hearings for certain of these matters are scheduled to occur in 2022.

14

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Countervailing duty and anti-dumping investigations on softwood lumber

On November 25, 2016, countervailing duty and anti-dumping petitions were filed with the U.S. Department of Commerce (or, “Commerce”) and the U.S. International Trade Commission (or, “ITC”) by certain U.S. softwood lumber products producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petitions as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations.

Countervailing Duties – On April 24, 2017, Commerce announced its preliminary determination in the countervailing duty investigation; as a result, from April 28, 2017 to August 25, 2017, we were required to pay cash deposits to the U.S. Customs and Border Protection agency (or, “U.S. Customs”) at a rate of 12.82% for countervailing duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the countervailing investigation; as a result, from December 28, 2017 to November 30, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 14.70%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the countervailing investigation; as a result, from December 1, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 19.10%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the countervailing investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 18.07%. Commerce is expected to issue its final determination in the third administrative review of the countervailing investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 15.48% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through March 31, 2022, our cash deposits totaled $365 million.

Anti-dumping Duties – On June 26, 2017, Commerce announced its preliminary determination in the anti-dumping investigation; as a result, from June 30, 2017 to November 7, 2017, we were required to pay cash deposits to U.S. Customs at a rate of 4.59% for anti-dumping duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the anti-dumping investigation; as a result, from November 8, 2017 to November 29, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 3.20%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the anti-dumping investigation; as a result, from November 30, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 1.15%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the anti-dumping investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 11.59%. Commerce is expected to issue its final determination in the third administrative review of the anti-dumping investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 4.76% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through March 31, 2022, our cash deposits totaled $75 million.

Ongoing Administrative Reviews – Following Commerce’s completion of the Canadian softwood lumber investigation and the first and second administrative reviews, two further administrative reviews remain pending. On March 4, 2021, Commerce published a notice initiating the third administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the third administrative review of the countervailing duty order and we have responded to Commerce with the information requested to date. On March 9, 2022, Commerce published a notice initiating the fourth administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. According to Commerce’s decision published on April 27, 2022, we were not selected as a mandatory respondent for the fourth administrative review of the countervailing duty order.

Ongoing Appellate Reviews – On December 14, 2017 and January 4, 2018, we filed complaints supporting appellate reviews of the final results of Commerce’s countervailing and anti-dumping investigations on softwood lumber from Canada, respectively, before a binational panel formed pursuant to the North American Free Trade Agreement or United States-Mexico-Canada Agreement, as the case may be (or, “Panel”). Briefing for these appeals has been completed, but the constitution of the Panels and scheduling of the hearings remain pending. Further, on January 6, 2021 and January 19, 2021, we filed our complaints supporting appellate Panel reviews of the final results in the countervailing and anti-dumping first administrative reviews, and on January 12, 2022, we filed similar complaints with respect to the second administrative reviews.

ITC Injury Determination – In parallel, on December 28, 2017, the ITC published its affirmative final injury determinations in the anti-dumping and countervailing investigations on softwood lumber from Canada. On September 4, 2019, a Panel issued an interim decision upholding the affirmative final injury determinations of the ITC in both investigations of softwood lumber

15

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

products from Canada. The Panel remanded the ITC to reconsider several findings and ordered the ITC to submit its redetermination on remand within 90 days from the date of the Panel interim decision. On December 19, 2019, the ITC issued its redetermination on remand that maintained the affirmative final injury determinations, and on May 22, 2020, the Panel issued its final decision and affirmed in its entirety the ITC’s injury determination on remand.

WTO Appeal – In addition, on August 24, 2020, the World Trade Organization’s (or, “WTO”) dispute panel issued a report (or, the “Panel Report”) in the case brought by the government of Canada in “United States — Countervailing Measures on Softwood Lumber from Canada” (DS533), concluding, among other things, that Commerce acted inconsistently with the Agreement on Subsidies and Countervailing Measures on most of the matters. On September 28, 2020, the United States notified the WTO’s dispute settlement body of its decision to appeal the Panel Report.

Financial assurance – We are required by U.S. Customs to provide surety bonds to secure the payment of our cash deposits. As of March 31, 2022, we had $83 million of surety bonds outstanding in favor of U.S. Customs, of which $53 million were secured by letters of credit. See Note 9, “Long-Term Debt – ABL Credit Facility” for more information.

We are not presently able to determine the ultimate resolution of these matters, but we believe it is not probable that we will ultimately be assessed with significant duties, if any, on our U.S. imports of Canadian-produced softwood lumber products. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statements of Operations, and our cash deposits are recorded in “Other assets” in our Consolidated Balance Sheets.

Fibrek acquisition

Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.40% of the outstanding Fibrek Inc. shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order by the Quebec Superior Court in Canada (or, the “Quebec Superior Court”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act. On September 26, 2019, the Quebec Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at C$1.99 per share, or C$31 million in aggregate, plus interest and an additional indemnity, for a total estimated at C$44 million payable in cash. We had previously accrued C$14 million for the payment of the dissenting shareholders’ claims. Following the court decision, we accrued an additional C$30 million ($23 million), and as a result recorded $23 million in “Other expense, net” in our Consolidated Statement of Operations for the year ended on December 31, 2019. Of the total amount of C$44 million, C$19 million ($14 million) was payable immediately and paid on October 2, 2019. The remaining balances of C$27 million ($22 million) as of March 31, 2022, and C$27 million ($21 million) as of December 31, 2021, which includes accrued interest, are recorded in “Accounts payable and other” in our Consolidated Balance Sheets. We are appealing the decision, therefore the payment of any additional consideration and its timing will depend on the outcome of the appeal. On November 13, 2019, a legal hypothec in the amount of C$30 million was registered on our Saint-Félicien (Quebec) immovable and movable property to secure the payment of any additional amounts following the outcome of the appeal. The hearing in this matter is expected to occur in 2022.

Partial wind-ups of pension plans

On June 12, 2012, we filed a motion for directives with the Quebec Superior Court, the court with jurisdiction in the creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada) (or, the “CCAA Creditor Protection Proceedings”), seeking an order to prevent pension regulators in each of Quebec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. We contend, among other things, that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA debtors’ CCAA Plan of Reorganization and Compromise, as amended, and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to C$150 million ($120 million), would have to be funded if we do not obtain the relief sought. The hearing in this matter has not yet been scheduled but could occur in the next 12 months.

Contingent gains

In 2017, we filed a lawsuit against the Government of Canada alleging that measures taken by the provincial Government of Nova Scotia and the Government of Canada damaged Resolute and its investments in Canada, in violation of the investment

16

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

protections extended to foreign investors under North American Free Trade Agreement Articles 1102, 1105 and 1110. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation is a contingent gain and will be recognized if, and when, realized or realizable.

In 2016, we filed a lawsuit against Greenpeace International, Greenpeace Inc. and certain individuals related to loss of business following false allegations concerning the impact of our harvestry operations in certain regions in Quebec. The claims alleged certain damages resulting from defamation and unfair competition. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation or settlement of this claim is a contingent gain and will be recognized if, and when, realized or realizable.

Environmental matters

We are subject to a number of federal or national, state, provincial, and local environmental laws, regulations, and orders in various jurisdictions. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated and orders issued 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 have environmental liabilities of $13 million recorded as of March 31, 2022 and December 31, 2021, primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time.

We also have asset retirement obligations of $37 million and $36 million recorded as of March 31, 2022 and December 31, 2021, respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets.

These liabilities are included in “Accounts payable and other” and “Other liabilities” in our Consolidated Balance Sheets.

Note 13. Share Capital

Treasury stock

On December 7, 2021, we announced a new share repurchase program, authorized by our board of directors, of up to ten million shares of our common stock or $100 million, whichever occurs first. During the three months ended March 31, 2022, we repurchased 125,482 shares at an average price of $11.34 for a total of $2 million.

On March 2, 2020, our board of directors authorized a share repurchase program of up to 15% of our common stock, for an aggregate consideration of up to $100 million. During the three months ended March 31, 2021, we repurchased 1.7 million shares at an average price of $9.50 for a total of $17 million. This share repurchase program was completed in December 2021.

Note 14. 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, 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.”

17

RESOLUTE FOREST PRODUCTS INC.

Notes to Unaudited Interim Consolidated Financial Statements

Information about certain segment data for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Market Pulp (1)		Tissue		Wood Products (2)		Paper		Segment Total		Corporate and Other		Total
Sales
First three months
2022	$	184	$	48	$	463	$	250	$	945	$	—	$	945
2021	$	176	$	42	$	430	$	225	$	873	$	—	$	873
Depreciation and amortization
First three months
2022	$	4	$	5	$	11	$	9	$	29	$	3	$	32
2021	$	6	$	5	$	11	$	15	$	37	$	4	$	41
Operating income (loss)
First three months
2022	$	22	$	(9)	$	219	$	25	$	257	$	(22)	$	235
2021	$	4	$	(2)	$	221	$	(24)	$	199	$	(22)	$	177

(1)Inter-segment sales were $14 million and $7 million for the three months ended March 31, 2022 and 2021, respectively. These inter-segment sales, which were transacted at either the lowest market price of the previous month or cost, were excluded from market pulp sales.

(2)Wood products sales to our previously-held joint ventures, which were transacted at arm’s length negotiated prices, were $12 million for the period up to the Acquisition Date and $13 million for the three months ended March 31, 2021. See Note 2, “Business Acquisition” for more information.

18

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following management’s discussion and analysis is intended to help the reader understand Resolute Forest Products, our results of operations, cash flows and financial condition. The discussion is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes (or, the “Consolidated Financial Statements”) contained in Item 1, “Financial Statements,” of this Quarterly Report on Form 10-Q (or, “Form 10-Q”).

When we refer to “Resolute Forest Products,” “Resolute,” “we,” “our,” “us” or the “Company,” we mean Resolute Forest Products Inc. with its subsidiaries, either individually or collectively, unless otherwise indicated.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION AND USE OF THIRD-PARTY DATA

Statements in this Form 10-Q that are not reported financial results or other historical information of Resolute Forest Products are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the impact of the novel coronavirus (or, “COVID-19”) pandemic and resulting economic conditions on our business, results of operations and market price of our securities, the impact on our future business results of the price volatility of our products, the logistics and transportation network constraints and the levels of inventory; the estimated expenditures relating to the indefinite idling of the pulp and paper operations at Calhoun; and to our: efforts and initiatives to reduce costs and increase revenues and profitability; business and operating outlook; future pension obligations; assessment of market conditions; growth strategies and prospects, and the growth potential of the Company and the industry in which we operate; liquidity; future cash flows, including as a result of the changes to our pension funding obligations; estimated capital expenditures; environmental, social and governance (or, “ESG”) reporting; and strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words “should,” “would,” “could,” “will,” “may,” “expect,” “believe,” “see,” “anticipate,” “continue,” “contribute,” “position,” “maintain,” “remain,” “increase,” “plan,” “grow,” “enhance,” “seek,” “provide,” “support,” “estimate,” “maximize” and other terms with similar meaning indicating possible future events or potential impact on our business or Resolute Forest Products’ shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management’s current assumptions, beliefs, and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause our actual future financial condition, results of operations, and performance to differ materially from those expressed or implied in this Form 10-Q include, but are not limited to, the COVID-19 pandemic on our business and resulting economic conditions; developments in non-print media, including changes in consumer habits, and the effectiveness of our responses to these developments; intense competition in the forest products industry; any inability to offer products certified to globally recognized forestry management and chain of custody standards; any inability to successfully implement our strategies to increase our earnings power; the possible failure to successfully integrate acquired businesses with ours or to realize the anticipated benefits of acquisitions or divestitures or other strategic transactions or projects, including loss of synergies following business divestitures; uncertainty or changes in political or economic conditions in the U.S., Canada or other countries in which we sell our products, including the effects of pandemics; global economic and political conditions; the highly cyclical nature of the forest products industry; any difficulties in obtaining timber or wood fiber at favorable prices, or at all; impacts of inflation on the price of goods and services, including changes in the cost of purchased energy and other raw materials; any loss of important customers and resulting accounts receivable credit risk exposure; physical, financial, regulatory, transitional and litigation risks associated with global, regional, and local weather conditions, and climate change; financial, litigation, liability and reputational risks associated with ESG reporting; any disruption in operations or increased labor costs due to labor disputes or occupational health and safety issues; difficulties in our employee relations or in employee attraction or retention, and workforce shortages; disruptions to our supply chain, operations, or the delivery of our products, including due to public health epidemics and workforce shortages; disruptions to our information technology systems including cybersecurity and privacy incidents; risks related to the operation and transition of legacy system applications; negative publicity, even if unjustified; currency fluctuations; any increase in the level of required contributions to our pension plans, including as a result of any increase in the amount by which they are underfunded; our ability to maintain adequate capital resources to provide for all of our substantial capital requirements; the terms of our outstanding indebtedness, which could restrict our current and future operations; increases of interest rates and changes relating to the London Interbank Offered Rate (or, the “LIBOR”), which could impact our borrowings under our credit facilities; losses that are not covered by insurance; any additional closure costs and long-lived asset impairment or goodwill impairment or accelerated depreciation charges; any need to record additional valuation allowances against our recorded deferred income tax assets or any limitation of our use of certain tax attributes; our exports from one country to another country becoming or remaining subject to duties, cash deposit requirements, border taxes, quotas, or other trade remedies or restrictions; countervailing and anti-dumping duties on imports to

19

the U.S. of the vast majority of our softwood lumber products produced at our Canadian sawmills; any failure to comply with laws or regulations generally; any additional environmental or health and safety liabilities; any violation of trade laws, export controls, or other laws relating to our international sales and operations; adverse outcomes of legal proceedings, claims and governmental inquiries, investigations, and other disputes in which we are involved; the actions of holders of a significant percentage of our common stock; and the potential risks and uncertainties set forth under Part I, Item 1A, “Risk Factors,” of our annual report on Form 10-K for the year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (or, the “SEC”) on March 1, 2022 (or, the “2021 Annual Report”), which have been heightened by the COVID-19 pandemic, including related governmental responses and economic impacts, market disruptions and resulting changes in consumer habits.

All forward-looking statements in this Form 10-Q are expressly qualified by the cautionary statements contained or referred to in this section and in our other filings with the SEC and the Canadian securities regulatory authorities. We disclaim any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Market and industry data

The information on industry and general economic conditions in this Form 10-Q was derived from third-party sources and trade publications we believe to be widely accepted and accurate. We have not independently verified the information and cannot assure you of its accuracy.

OVERVIEW

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and paper, which are marketed in over 60 countries. The Company owns or operates some 40 facilities, as well as power generation assets, in the U.S. and Canada. We are a large and growing North American producer of wood products, the largest producer of uncoated mechanical papers in North America, a competitive pulp producer in North America, and a leading global producer of newsprint. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards.

We report our activities in four business segments: market pulp, tissue, wood products and paper. We believe an integrated approach maximizes value creation for our Company and stakeholders.

We are guided by our vision and values, focusing on safety, sustainability, profitability, accountability, and teamwork. We believe we can be distinguished by the following competitive strengths:

•Competitive cost structure combined with diversified and integrated asset base

–harvesting rights for the majority of fiber needs in Canada;

–sophisticated infrastructure to manage fiber flows from harvesting through transformation into a range of end-products to maximize resource utilization and process efficiency;

–nearly 100% of our products sourced from high-quality virgin fiber; and

–large-scale and cost-effective operations, including significant internal energy production from cogeneration and hydroelectric facilities, which support our value proposition.

•Strong balance sheet

–favorable pricing and flexibility under borrowing agreements together with our liquidity levels support our ability to weather challenging market cycles and to continue to execute our transformation strategy;

–significant tax assets to defer cash income taxes and provide synergies to execute this strategy; and

–customers benefit from a financially stable and reliable business partner in a challenging industry.

•Seasoned management team and strong culture of commitment

–deep industry expertise, with influential leaders in forestry, operations, environmental risk management and public policy;

–culture of accountability, encouraging transparency and straightforwardness; and

–core identity tied to renewable resources we harvest in a truly sustainable manner.

20

•Deep-seated commitment to fundamental principles of sustainability

–ambitious targets and governance to back it up;

–unwavering focus on safety; and

–transparent communications.

Our Business

For information relating to our products, strategy and highlights, sustainable development and performance, and power generation assets, refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Overview – Our Business” in our 2021 Annual Report.

First Quarter Overview

Business acquisition

On March 4, 2022 (or, the “Acquisition Date”), we acquired control of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership (or, “Larouche and St-Prime”), that were previously held as 50% owned joint ventures, by acquiring the remaining 50% equity interests from Louisiana-Pacific Canada Ltd., a wholly-owned subsidiary of Louisiana-Pacific Corporation, for a cash consideration of $51 million (including $1 million of working capital adjustment, and net of cash acquired of $8 million), subject to post-closing adjustments. Larouche and St-Prime, which are engineered wood product facilities located in Quebec, produce I-joists for the construction industry. This acquisition solidifies our presence in the engineered wood product segment with assets we know well, and downstream integrates over 60 million board feet of lumber capacity.

We accounted for our previously held equity investments in Larouche and St-Prime using the equity method of accounting since we had joint control prior to acquiring a controlling interest. We accounted for the acquisition of Larouche and St-Prime as a business combination in accordance with the acquisition method of accounting, which requires us to record the identifiable assets acquired and liabilities assumed at fair value. We ceased applying the equity method for our investments in Larouche and St-Prime and the net assets acquired and results of operations are consolidated from the Acquisition Date and are included in the wood products segment.

At the Acquisition Date, our equity investments of $18 million was remeasured at a fair value of $59 million, which resulted in a gain of $41 million. The gain was recorded in “Other income (expense), net” in our Consolidated Statements of Operations for the three months ended March 31, 2022.

Impact of global economic conditions

We have sustained operations across all of our business segments through the COVID-19 pandemic. There continues to be a measure of uncertainty because of global geopolitical and economic conditions.

While we benefit from strong market conditions for most of our products, our operations and our financial results remain negatively affected by logistics constraints, cost inflation and workforce availability. The supply chain disruptions as well as the seasonal build-up of logs, resulted in an increase in our inventories as of March 31, 2022.

Indefinite idling of pulp and paper operations at Calhoun mill

In December 2021, we announced the indefinite idling of pulp and paper operations at our Calhoun (Tennessee) mill. During the quarter, pulp and paper operations ceased and we incurred $6 million of decommission costs for the three months ended March 31, 2022. We have also revised our 2022 expected closure costs from $32 million to $22 million, which includes the $6 million already incurred in the first quarter of 2022.

Three months ended March 31, 2022 vs. March 31, 2021

Our operating income was $235 million in the quarter, compared to an operating income of $177 million in the first quarter of 2021. Excluding special items, our operating income was $238 million, compared to an operating income of $180 million in the year-ago period.

Our net income in the quarter was $210 million, or $2.68 per diluted share, compared to a net income of $87 million, or $1.06 per diluted share, in the year-ago period. Our net income in the quarter, excluding special items, was $177 million, or $2.26 per

21

diluted share, compared to a net income of $119 million, or $1.45 per share, in the year-ago period. Special items are described below.

Three Months Ended March 31, 2022	Operating Income		Net Income		EPS
(Unaudited, in millions, except per share amounts)
GAAP, as reported	$	235	$	210	$	2.68
Adjustments for special items:
Closure costs, impairment and other related charges		4		4		0.05
Net gain on disposition of assets		(1)		(1)		(0.01)
Non-operating pension and other postretirement benefit costs		—		7		0.09
Other income, net		—		(45)		(0.58)
Income tax effect of special items		—		2		0.03
Adjusted for special items (1)	$	238	$	177	$	2.26

Three Months Ended March 31, 2021	Operating Income		Net Income		EPS
(Unaudited, in millions, except per share amounts)
GAAP, as reported	$	177	$	87	$	1.06
Adjustments for special items:
Closure costs, impairment and other related charges		3		3		0.03
Non-operating pension and other postretirement benefit credits		—		(2)		(0.02)
Other expense, net		—		45		0.55
Income tax effect of special items		—		(14)		(0.17)
Adjusted for special items (1)	$	180	$	119	$	1.45

(1)Operating income, net income and net income per share (or, “EPS”), in each case as adjusted for special items, are not financial measures recognized under U.S. generally accepted accounting principles (or, “GAAP”). We calculate operating income, as adjusted for special items, as operating income from our Consolidated Statements of Operations, adjusted for items such as closure costs, impairment, and other related charges, and gains and losses on disposition of assets that are excluded from our segment’s performance from GAAP operating income. We calculate net income, as adjusted for special items, as net income from our Consolidated Statements of Operations, adjusted for the same special items applied to operating income, in addition to non-operating pension and other postretirement benefit (or, “OPEB”) costs and credits, other income and expense, net, and the income tax effect of the special items. EPS, as adjusted for special items, is calculated as net income, as adjusted for special items, per diluted share. We believe that using these non-GAAP measures is useful because they are consistent with the indicators management uses internally to measure the Company’s performance, and it allows the reader to compare our operations and financial performance from period to period. Operating income, net income and EPS, in each case as adjusted for special items, are internal measures, and therefore may not be comparable to those of other companies. These non-GAAP measures should not be viewed as substitutes to financial measures determined under GAAP.

22

RESULTS OF OPERATIONS

Consolidated Results

Selected financial information

	Three Months Ended March 31,
(Unaudited, in millions, except per share amounts)	2022		2021
Sales	$	945	$	873
Operating income (loss) per segment:
Market pulp	$	22	$	4
Tissue		(9)		(2)
Wood products		219		221
Paper		25		(24)
Segment total		257		199
Corporate and other		(22)		(22)
Operating income	$	235	$	177
Net income attributable to Resolute Forest Products Inc.	$	210	$	87
Net income per common share attributable to Resolute Forest Products Inc. common shareholders:
Basic	$	2.71	$	1.07
Diluted	$	2.68	$	1.06
Adjusted EBITDA (1)	$	270	$	221

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	162	$	112
Total assets	$	3,764	$	3,538

(1)Earnings before interest expense, income taxes, and depreciation and amortization (or, “EBITDA”) and adjusted EBITDA are not financial measures recognized under GAAP. EBITDA is calculated as net income (loss) including noncontrolling interest from the Consolidated Statements of Operations, adjusted for interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA means EBITDA, excluding special items, such as closure costs, impairment and other related charges, gains and losses on disposition of assets, non-operating pension and OPEB costs and credits, and other income and expense, net. We believe that using non-GAAP measures such as EBITDA and adjusted EBITDA is useful because they are consistent with the indicators management uses internally to measure the Company’s performance and it allows the reader to compare our operations and financial performance from period to period. EBITDA and adjusted EBITDA are internal measures, and therefore may not be comparable to those of other companies. These non-GAAP measures should not be viewed as substitutes to financial measures determined under GAAP.

23

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net income including noncontrolling interest	$	210	$	88
Interest expense		5		6
Income tax provision		58		40
Depreciation and amortization		32		41
EBITDA	$	305	$	175
Closure costs, impairment and other related charges		4		3
Net gain on disposition of assets		(1)		—
Non-operating pension and other postretirement benefit costs (credits)		7		(2)
Other (income) expense, net		(45)		45
Adjusted EBITDA	$	270	$	221

Three months ended March 31, 2022 vs. March 31, 2021

Operating income variance analysis

Sales

Sales increased by $72 million compared to the year-ago period, to $945 million. After removing the effects of the indefinite idling of the Calhoun pulp and paper operations, pricing had a favorable impact of $163 million, as a result of an increase in the average transaction price across all segments, and lower volume decreased sales by $57 million, mainly reflecting lower shipments of market pulp, paper, and wood products.

Cost of sales, excluding depreciation, amortization and distribution costs

Cost of sales, excluding depreciation, amortization and distribution costs (or, “COS”) increased by $25 million compared to the year-ago period. After removing the effects of the indefinite idling of the Calhoun pulp and paper operations, the lower volume and the weaker Canadian dollar, COS increased by $85 million, largely due to:

•higher fiber costs ($45 million), mainly reflecting an increase in stumpage fees related to higher lumber sale prices, and in harvesting costs for the wood products segment, as well as higher price of recycled furnish for the market pulp segment;

•higher energy costs ($19 million) due to higher prices of power and natural gas as well as lower internal power generation, mainly as a result of a turbine failure at the Saint-Félicien (Quebec) mill;

24

•unfavorable maintenance costs ($9 million) as a result of the scope and timing of maintenance work and higher costs; and

•higher chemical costs ($6 million), mainly due to higher prices and unfavorable usage.

Distribution costs

After removing the effect of the lower volume, distribution costs increased by $16 million, mainly due to higher freight rates and limited flexibility of mode of transportation, partly offset by the indefinite idling of the Calhoun pulp and paper operations ($3 million).

Depreciation and amortization

Depreciation and amortization was $9 million lower compared to the year-ago period, primarily due to fully amortized assets, and the decrease in depreciation related to the indefinite idling of the Calhoun pulp and paper operations ($2 million), whose assets were fully impaired in the fourth quarter of 2021.

Selling, general and administrative expenses

Selling, general and administrative (or, “SG&A”) expenses decreased by $10 million in the quarter compared to the same period last year, mainly due to lower stock-based compensation expense, which includes a mark-to-market adjustment based on the stock price changes, partly offset by the indefinite idling of the Calhoun pulp and paper operations ($1 million).

Indefinite idling of the Calhoun pulp and paper operations

During the first quarter of 2022, we ceased our Calhoun pulp and paper operations following their indefinite idling announcement in December 2021, contributing a total of $13 million to our operating income, explained as follows: decrease in sales of $34 million, in COS of $41 million (net of asset preservation costs of $6 million) and in distribution costs of $3 million, all reflecting the lower volume of 50,000 metric tons compared to the year-ago period; and lower depreciation of $2 million and SG&A of $1 million.

Net income variance analysis

Non-operating pension and other postretirement benefit (costs) credits

We recorded non-operating pension and OPEB costs of $7 million in the quarter, compared to credits of $2 million in the year-ago period. The difference reflects: lower expected return on plan assets ($5 million) in the current period, pension special termination benefit cost ($3 million) related to the indefinite idling of our pulp and paper operations at our Calhoun mill and higher interest cost ($3 million); partly offset by lower amortization of actuarial losses ($3 million) in the current period.

Other income (expense), net

We recorded other income, net, of $45 million in the quarter, compared to other expense, net, of $45 million in the year-ago period. The difference mainly reflects a gain on previously-held equity investments of $41 million (see Note 2, “Business Acquisition” to our Consolidated Financial Statements) and income from equity method investments of $6 million in the current period, compared to a loss on commodity contracts of $37 million, principally related to lumber futures contracts, in the year-ago period. There were no lumber futures contracts outstanding as of March 31, 2022.

Income taxes

We recorded an income tax provision of $58 million in the quarter on income before income taxes of $268 million, compared to an expected income tax provision of $56 million based on the U.S. federal statutory income tax rate of 21%. The difference mainly reflects: U.S. tax on non-U.S. earnings ($29 million) and foreign tax rate differences ($13 million); partly offset by a valuation allowance reversal related to our U.S. operations ($33 million) where we recognize a full valuation allowance against our net deferred income tax assets.

The valuation allowance reversal of $33 million for the three months ended March 31, 2022, is to offset mainly the tax implications relating to the global intangible low-taxed income (or, “GILTI”) inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income.

25

In the first quarter of 2021, we recorded an income tax provision of $40 million, on income before income taxes of $128 million, compared to an expected income tax provision of $27 million based on the U.S. federal statutory income tax rate of 21%. The difference mainly reflects: U.S. tax on non-U.S. earnings ($18 million); foreign tax rate differences ($8 million); partly offset by a valuation allowance reversal related to our U.S. operations ($8 million) where we recognize a full valuation allowance against our net deferred income tax assets.

The valuation allowance reversal of $8 million for the three months ended March 31, 2021, is to offset the tax implications relating to the GILTI inclusion.

Segment Earnings

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

We do not allocate any of the income or loss items following “operating income” in our Consolidated Statements of Operations to our segments because those items are reviewed separately by management. Similarly, we do not allocate to the segments: closure costs, impairment and other related charges; gains and losses on disposition of assets; as well as other discretionary charges or credits.

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 SG&A expenses are allocated to our segments, with the exception of certain discretionary charges and credits, which we present under “corporate and other.”

26

MARKET PULP

Highlights

	Three Months Ended March 31,
(Unaudited, in millions, except where otherwise stated)	2022		2021
Sales	$	184	$	176
Operating income (1)	$	22	$	4
EBITDA (2)	$	26	$	10
(In thousands of metric tons)
Shipments		226		272
Downtime		13		25

	March 31,
(Unaudited, in thousands of metric tons)	2022		2021
Finished goods inventory		82		46

(1)Net income including noncontrolling interest is equal to operating income in this segment.

(2)EBITDA, a non-GAAP financial measure, is reconciled below. For more information on the calculation and reasons we include this measure, see note 1 under “Results of Operations – Consolidated Results – Selected financial information” above.

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net income including noncontrolling interest	$	22	$	4
Depreciation and amortization		4		6
EBITDA	$	26	$	10

Industry trends

World demand for chemical pulp increased by 0.6% in the first two months of 2022 compared to the year-ago period, reflecting an increase in North America and Western Europe of 3.7% and 0.2%, respectively, while China decreased by 4.0%. World capacity increased by 2.6% compared to the year-ago period.

27

World demand for softwood pulp fell by 1.5% in the first two months of 2022, with a decrease of 4.8%, 4.2%, and 0.8% in China, Western Europe, and North America, respectively. The shipment-to-capacity ratio was 84%.

In the same period, world demand for hardwood pulp rose by 2.1%, with shipments to North America and Western Europe up by 10.8% and 3.0%, respectively, while shipments to China were down by 4.1%. The shipment-to-capacity ratio was 89%.

Three months ended March 31, 2022 vs. March 31, 2021

Operating income variance analysis

Sales

Sales were $8 million higher, or 5%, in the quarter to $184 million as the average transaction price rose by $168 per metric ton, or 26%, while shipments decreased by 46,000 metric tons, or 17%. After removing the effects of the indefinite idling of the Calhoun pulp operations, pricing contributed to a $36 million increase due to a rise in pricing across all pulp grades, and lower volume contributed to a $16 million decrease, mainly due to logistics constraints.

Cost of sales, excluding depreciation, amortization and distribution costs

COS decreased by $7 million compared to the year-ago period. After removing the effects of the indefinite idling of the Calhoun pulp operations and lower volume, COS increased by $24 million, largely reflecting:

•higher fiber costs, mainly due to higher price of recycled furnish ($10 million);

•higher energy costs ($10 million) due to higher prices of power and natural gas as well as lower internal power generation, mainly as a result of a turbine failure at the Saint-Félicien mill; and

•higher chemical costs ($3 million), mainly due to higher prices.

Distribution costs

After removing the effect of lower volume, distribution costs increased by $4 million, mainly due to higher freight rates and limited flexibility of mode of transportation.

28

TISSUE

Highlights

	Three Months Ended March 31,
(Unaudited, in millions, except where otherwise stated)	2022		2021
Sales	$	48	$	42
Operating loss (1)	$	(9)	$	(2)
EBITDA (2)	$	(4)	$	3
(In thousands of short tons)
Shipments (3)		25		23
Downtime		—		—

	March 31,
(Unaudited, in thousands of short tons)	2022		2021
Finished goods inventory (3)		6		8

(1)Net loss including noncontrolling interest is equal to operating loss in this segment.

(2)EBITDA, a non-GAAP financial measure, is reconciled below. For more information on the calculation and reasons we include this measure, see note 1 under “Results of Operations – Consolidated Results – Selected financial information” above.

(3)Tissue converted products, which are measured in cases, are converted to short tons.

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net loss including noncontrolling interest	$	(9)	$	(2)
Depreciation and amortization		5		5
EBITDA	$	(4)	$	3

Industry trends

Total U.S. tissue consumption rose by 2.2% in the first three months of 2022, compared to the year-ago period. Converted product shipments increased by 4.5%, where at-home shipments increased by 3.8%, and away-from-home shipments increased by 6.0%.

29

U.S. parent roll production rose by 3.0% in the first three months of 2022, and the average industry production-to-capacity ratio increased to 95%, up from 93% in the year-ago period.

Three months ended March 31, 2022 vs. March 31, 2021

Operating loss variance analysis

Sales

Sales were $6 million higher, or 14%, to $48 million in the quarter, due to an increase in shipments by 2,000 short tons, or 9%, and an increase in pricing of $91 per short ton, or 5%, due to a favorable product mix.

Cost of sales, excluding depreciation, amortization and distribution costs

After removing the effect of higher volume, our manufacturing costs increased by $9 million compared to the year-ago period, mainly related to:

•higher fiber costs ($5 million) due to higher market pulp prices, including the loss of pulp integration following the indefinite idling of the Calhoun pulp and paper operations; and

•higher energy costs ($2 million) due to higher prices.

30

WOOD PRODUCTS

Highlights

	Three Months Ended March 31,
(Unaudited, in millions, except where otherwise stated)	2022		2021
Sales	$	463	$	430
Operating income (1)	$	219	$	221
EBITDA (2)	$	230	$	232
(In millions board feet)
Shipments (3)		453		492
Downtime		6		30

	March 31,
(Unaudited, in millions board feet)	2022		2021
Finished goods inventory (3)		223		143

(1)Net income including noncontrolling interest is equal to operating income in this segment.

(2)EBITDA, a non-GAAP financial measure, is reconciled below. For more information on the calculation and reasons we include this measure, see note 1 under “Results of Operations – Consolidated Results – Selected financial information” above.

(3)Includes wood pellets measured by mass, converted to board feet using a density-based conversion ratio, as well as engineered wood products measured by linear feet, converted to board feet.

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net income including noncontrolling interest	$	219	$	221
Depreciation and amortization		11		11
EBITDA	$	230	$	232

Industry trends

U.S. housing starts were 1.8 million on a seasonally adjusted basis in the first three months of 2022, up 9.7% from the same period last year, which reflects a 3.5% increase in single-family starts and an increase of 25.6% in multi-family starts.

31

2x4 – Random Length (or “RL”) #1-2 Kiln Dried Great Lakes (or “KD GL”) price rose by 28.0% in the first three months of 2022 compared to the year ago period, and the 2x4x8 Stud KD GL price rose by 31.7%. The 2x4 – RL #2 KD Southern Pine (Eastside) price increased by 20.9%, and the 2x4 – RL #2 KD Southern Pine (Westside) price was up by 25.0%.

Three months ended March 31, 2022 vs. March 31, 2021

Operating income variance analysis

Sales

Sales were $33 million higher, or 8%, to $463 million in the quarter, mainly reflecting benchmark lumber prices. Pricing contributed to a $67 million increase in sales, reflecting an increase of the average transaction price of $148 per thousand board feet, or 17%. Volume decreased sales by $34 million due to a decrease in shipments of 39 million board feet, or 8%, due to logistic constraints as a result of limited rail car and truck availability.

Cost of sales, excluding depreciation, amortization and distribution costs

After removing the COS related to the lower volume, manufacturing costs increased by $40 million, reflecting:

•higher log costs ($29 million), primarily due to an increase in stumpage fees related to higher lumber sale prices, harvesting costs and fuel;

•unfavorable maintenance costs ($7 million) as a result of the scope of maintenance work and higher cost; and

•higher labor costs ($3 million), mainly due to the restart of the El Dorado (Arkansas) and Ignace (Ontario) sawmills during the first quarter of 2021.

Distribution costs

After removing the effect of lower volume, distribution costs increased by $3 million, mainly due to higher freight rates and limited flexibility of mode of transportation.

32

PAPER

Highlights

	Three Months Ended March 31,
(Unaudited, in millions, except where otherwise stated)	2022		2021
Sales	$	250	$	225
Operating income (loss) (1)	$	25	$	(24)
EBITDA (2)	$	34	$	(9)
(In thousands of metric tons)
Shipments		332		378
Downtime		30		158

	March 31,
(Unaudited, in thousands of metric tons)	2022		2021
Finished goods inventory		85		87

(1)Net income (loss) including noncontrolling interest is equal to operating income (loss) in this segment.

(2)EBITDA, a non-GAAP financial measure, is reconciled below. For more information on the calculation and reasons we include this measure, see note 1 under “Results of Operations – Consolidated Results – Selected financial information” above.

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net income (loss) including noncontrolling interest	$	25	$	(24)
Depreciation and amortization		9		15
EBITDA	$	34	$	(9)

Industry trends

North American newsprint demand fell by 6.3% in the first three months of the year compared to the same period last year. Demand from newspaper publishers fell by 3.3% and demand from commercial printers fell by 10.3%. The North American shipment-to-capacity ratio was 87%, compared to 96% in the year-ago-period.

33

Global demand for newsprint fell by 2.5% in the first three months of 2022, with North America down by 6.3%, Western Europe up by 6.2%, and Asia down by 5.1%. The shipment-to-capacity ratio increased to 88%, up from 86% in the year-ago period.

North American demand for uncoated mechanical papers rose by 7.1% in the first three months of 2022, compared to the year-ago period, reflecting a 9.8% increase in supercalendered grades, and a 5.0% increase in standard grades. The shipment-to-capacity ratio for all uncoated mechanical papers remained unchanged at 87% compared to the year-ago period.

Three months ended March 31, 2022 vs. March 31, 2021

Operating income (loss) variance analysis

Sales

Sales increased by $25 million, or 11%, to $250 million in the quarter, reflecting a rise in the average transaction price of $159 per metric ton, or 27%, and a decrease in shipments of 46,000 metric tons, or 12%. After adjusting for the effects of the indefinite idling of the Calhoun paper operations, pricing contributed to a $58 million increase in sales, due to price increases across all paper grades, and lower volume decreased sales by $11 million, principally reflecting logistics constraints.

Cost of sales, excluding depreciation, amortization and distribution costs

After adjusting for the effects of the indefinite idling of the Calhoun paper operations and the lower volume, manufacturing costs increased by $9 million, reflecting:

•higher energy costs ($7 million) due to higher prices of power and natural gas; and

•higher chemical costs ($3 million).

Distribution costs

After removing the effect of lower volume, distribution costs increased by $8 million, mainly due to higher freight rates and limited flexibility of mode of transportation.

Depreciation and amortization

Depreciation and amortization was $6 million lower compared to the year-ago period, primarily due to fully amortized assets and the decrease in depreciation related to the indefinite idling of the Calhoun pulp and paper operations, whose assets were fully impaired in the fourth quarter of 2021.

34

Corporate and Other

Highlights

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Cost of sales, excluding depreciation, amortization and distribution costs	$	(9)	$	—
Depreciation and amortization		(3)		(4)
Selling, general and administrative expenses		(7)		(15)
Closure costs, impairment and other related charges		(4)		(3)
Net gain on disposition of assets		1		—
Operating loss		(22)		(22)
Interest expense		(5)		(6)
Non-operating pension and other postretirement benefit (costs) credits		(7)		2
Other income (expense), net		45		(45)
Income tax provision		(58)		(40)
Net loss including noncontrolling interest	$	(47)	$	(111)

The table below shows the reconciliation of net loss including noncontrolling interest to EBITDA and adjusted EBITDA, which are non-GAAP financial measures. For more information on the calculation and reasons we include these measures, see note 1 under “Results of Operations – Consolidated Results – Selected financial information” above.

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net loss including noncontrolling interest	$	(47)	$	(111)
Interest expense		5		6
Income tax provision		58		40
Depreciation and amortization		3		4
EBITDA		19		(61)
Closure costs, impairment and other related charges		4		3
Net gain on disposition of assets		(1)		—
Non-operating pension and other postretirement benefit costs (credits)		7		(2)
Other (income) expense, net		(45)		45
Adjusted EBITDA	$	(16)	$	(15)

Three months ended March 31, 2022 vs. March 31, 2021

Cost of sales, excluding depreciation, amortization and distribution costs

COS increased compared to the year-ago period principally due to asset preservation costs, mainly related to our indefinitely idled Calhoun pulp and paper operations, and our Amos (Quebec) and Baie-Comeau (Quebec) paper mills.

Selling, general and administrative expenses

SG&A expenses decreased by $8 million in the quarter compared to the same period last year, mainly due to lower stock-based compensation expense, which includes a mark-to-market adjustment based on the stock price changes.

35

LIQUIDITY AND CAPITAL RESOURCES

Capital Resources

We rely on cash and cash equivalents, cash flows provided by operations, and our credit facilities to: fund our operations; make pension contributions; and to finance our working capital, capital expenditures, duty cash deposits and opportunities in support of our growth and transformation strategy. In addition, from time to time we may use available cash to reduce debt and to return capital to shareholders, including through share repurchases or special dividends. As of March 31, 2022, we had cash and cash equivalents of $162 million and availability of $913 million under our credit facilities.

Based on our current projections, we expect to have sufficient financial resources available to finance our business plan, make pension contributions, meet working capital and duty cash deposit requirements, and maintain an appropriate level of capital spending.

First Quarter Overview

Credit rating risk

	Current		December 31, 2021
Standard & Poor’s
Senior unsecured debt		B		B
Long-term corporate credit rating		B+		B+
Outlook (1)		Positive		Stable
Moody’s Investors Service
Senior unsecured debt (2)		B1		B2
Corporate family rating (2)		Ba3		B1
Outlook		Stable		Stable
Liquidity rating		SGL-1		SGL-1

(1)On March 9, 2022, Standard & Poor’s announced an improved outlook from stable to positive.

(2)On April 6, 2022, the Moody’s senior unsecured debt was upgraded to B1, and the corporate family rating was upgraded to Ba3.

Although our debt agreements do not include any provision that would require material changes in payment schedules or terminations as a result of a credit rating downgrade, we believe our access to capital markets at a reasonable cost is determined in part by credit quality. A credit rating downgrade could impact our ability to access capital markets at a reasonable cost. These ratings reflect the views of the rating agencies only. An explanation of the significance of these ratings can be obtained from each rating agency. The ratings are not a recommendation to buy, sell or hold securities. Any rating can be revised upward or downward or withdrawn at any time by a rating agency.

Senior Secured Credit Facility

The obligations under the Senior Secured Credit Facility (as defined in Note 9, “Long-Term Debt” to our Consolidated Financial Statements) are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of the Company’s facility in Calhoun (Tennessee) and a first priority security interest on the fixtures and equipment located therein. Following the indefinite idling of the Calhoun pulp and paper operations, the Company entered into agreements, on March 2, 2022, to provide the following additional security under the Senior Secured Credit Facility: (i) a first priority mortgage on the real property of the Company’s sawmill facilities in Glenwood and El Dorado (Arkansas) and a first priority security interest on the fixtures and equipment located therein, and (ii) a first priority security interest on the fixtures and equipment at the Company’s sawmill facility in Cross City (Florida).

36

Flow of Funds

Summary of cash flows

A summary of cash flows for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Net cash provided by operating activities	$	147	$	74
Net cash used in investing activities		(95)		(43)
Net cash used in financing activities		(2)		(99)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash		—		—
Net increase (decrease) in cash and cash equivalents, and restricted cash	$	50	$	(68)

Three months ended March 31, 2022 vs. March 31, 2021

Net cash provided by operating activities

We generated $147 million of cash from operating activities in the first three months of 2022, compared to $74 million in the year-ago period. The increase is primarily driven by higher profitability.

Net cash used in investing activities

We used $95 million of cash in investing activities in the current period, compared to $43 million in the year-ago period. The difference mostly reflects the acquisition of Larouche and St-Prime, net of cash acquired ($43 million), and higher countervailing and anti-dumping duty cash deposits ($11 million) in the current period.

Net cash used in financing activities

Net cash used in financing activities was $2 million in the first three months of 2022, compared to $99 million in the year-ago period. The difference mostly reflects the repayment of the 5.875% senior unsecured notes due 2023 of $375 million partly offset by the issuance of the 4.875% senior unsecured notes due 2026 of $300 million in the year-ago period. In the current year, we also repurchased $2 million of shares, compared to $17 million in the year-ago period.

Outlook

While the underlying fundamentals for building materials remain positive, we are mindful of inflationary pressure and rising interest rates, which could affect pricing and margins. With our network of high-quality pulp and paper assets and structural advantages, such as fiber integration and embedded power generation, we are well-positioned to grow margins in a rising price environment. We continue to work hard to adapt to challenges in the transportation network, and we expect to gradually normalize inventory levels in the second half of the year.

Following the indefinite idling of pulp and paper operations at Calhoun, we started to review strategic options for the tissue business. As part of this exercise, we recently launched a sales process to explore divestiture options.

Share Repurchase Program

On December 7, 2021, we announced a new share repurchase program, authorized by our board of directors, of up to ten million shares of our common stock or $100 million, whichever occurs first. During the three months ended March 31, 2022, we repurchased 125,482 shares at an average price of $11.34 for a total of $2 million.

On March 2, 2020, our board of directors authorized a share repurchase program of up to 15% of our common stock, for an aggregate consideration of up to $100 million. During the three months ended March 31, 2021, we repurchased 1.7 million shares at an average price of $9.50 for a total of $17 million. This share repurchase program was completed in December 2021.

37

RESOLUTE FOREST PRODUCTS INC.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information relating to quantitative and qualitative disclosures about market risk is disclosed in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our 2021 Annual Report. There have been no material changes in our exposure to market risk as previously disclosed in our 2021 Annual Report.

ITEM 4.    CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures:

We have evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a–15(e) and 15d–15(e) of the Securities Exchange Act of 1934, as of March 31, 2022. Based on that evaluation, the President and Chief Executive Officer and the Senior Vice President and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of such date in recording, processing, summarizing and timely reporting information required to be disclosed in our reports to the SEC.

(b) Changes in Internal Control over Financial Reporting:

In connection with the evaluation of internal control over financial reporting, there were no changes during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

38

RESOLUTE FOREST PRODUCTS INC.

PART II.    OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

In addition to the legal proceedings presented under Part I, Item 3, “Legal Proceedings,” in our 2021 Annual Report, see the description of our material pending legal proceedings in Note 12, “Commitments and Contingencies – Legal matters,” to our Consolidated Financial Statements, which is incorporated in this “Item 1 – Legal Proceedings” by reference.

ITEM 1A.    RISK FACTORS

In addition to the other information set forth in this Form 10-Q, you should carefully consider the risk factors set forth under Part I, Item 1A, “Risk Factors” in our 2021 Annual Report, which could materially affect our business, financial condition or future results. There have been no material changes to the risk factors previously disclosed in our 2021 Annual Report.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth information about our stock repurchases for the three months ended March 31, 2022:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
January 1 to January 31		—	$	—		—	$	100,000,000
February 1 to February 28		125,482		11.34		125,482		98,576,675
March 1 to March 31		—		—		—		98,576,675
Total		125,482	$	11.34		125,482	$	98,576,675

(1)2021 share repurchase program of up to ten million shares of our common stock or $100 million, whichever occurs first. For more information, see Note 13, “Share Capital,” to our Consolidated Financial Statements.

39

RESOLUTE FOREST PRODUCTS INC.

ITEM 6.    EXHIBITS

Exhibit No.	Description
†10.1	Form of Resolute Forest Products 2019 Equity Incentive Plan Stock Settled Performance Stock Unit Agreement.
†10.2	Special Advisor Employment Agreement between Yves Laflamme and Resolute Forest Products Inc., dated March 30, 2022.
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.
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.

†

This is a management contract or compensatory plan or arrangement.

*

Interactive data files furnished with this Form 10-Q, which represent the following materials from this Form 10-Q formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Operations, (ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Unaudited Interim Consolidated Financial Statements. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document.

40

RESOLUTE FOREST PRODUCTS INC.

SIGNATURES

Pursuant to the requirements 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.

RESOLUTE FOREST PRODUCTS INC.
By	/s/ Sylvain A. Girard
	Sylvain A. Girard
	Senior Vice President and Chief Financial Officer
By	/s/ Daniel Viboux
	Daniel Viboux
	Vice President and Chief Accounting Officer

Date: May 10, 2022

41

EX-10.1

EXHIBIT 10.1

RESOLUTE FOREST PRODUCTS 2019 EQUITY INCENTIVE PLAN
STOCK SETTLED PERFORMANCE STOCK UNIT AGREEMENT

THIS PERFORMANCE STOCK UNIT AGREEMENT, dated as of November 16, 2021, (the “Date of Grant”) is made by and between Resolute Forest Products Inc., a Delaware corporation (the “Company”), and «FIRST» «LAST» (“Participant”).

WHEREAS, the Company has adopted the Resolute Forest Products 2019 Equity Incentive Plan (the “Plan”), pursuant to which performance stock units may be granted in respect of shares of the Company’s common stock, par value $0.001 per share (“Stock”); and

WHEREAS, the Human Resources and Compensation and Nominating and Governance Committee of the Company (the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant the performance stock unit award provided for herein to Participant subject to the terms set forth herein.

NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

1.Grant of Performance Stock Unit.

(a)Grant. The Company hereby grants to Participant «PSUs» performance stock units (the “PSUs”), on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan (the “Initial Grant”). Each PSU represents the right to receive one share of Stock as of the Settlement Date (defined in Section 2(c)), to the extent the Participant is vested in such PSUs as of the Settlement Date, subject to the terms of this Agreement and the Plan.

(b)Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon Participant and his legal representative in respect of any questions arising under the Plan or this Agreement.

(c)Acceptance of Agreement. Unless Participant notifies the Company in writing within 14 days after the Date of Grant that Participant does not wish to accept this Agreement, Participant will be deemed to have accepted this Agreement and will be bound by the terms of the Agreement and the Plan. Any such notice may be given to the Corporate Compensation at the Company’s principal executive office.

1

58409620v.3

2.Terms and Conditions.

(a)Calculation of Earned Performance Stock Units. The period over which the PSUs earned by the Participant will be measured is the three calendar years beginning with the calendar year that immediately follows the Date of Grant (“Performance Period”). If the Participant is otherwise vested as provided in Section 2(b), the Participant will receive a number of PSUs based on actual achievement of performance measures during the Performance Period, as set forth on Exhibit 1 attached hereto.

(b)Vesting. Subject to Section 3, a Participant will be 100% vested if he remains employed with the Company or any Affiliate or Subsidiary on February 28, 2025 (the “Vesting Date”). For purposes of the Agreement, the “Vesting Period” is the period beginning on December 1 following the Date of Grant through the Vesting Date. Notwithstanding the foregoing, a Participant who meets the criteria to terminate employment due to Retirement (as provided in Section 3(a)) shall be 100% vested as of the date the Participant meets such criteria (irrespective of whether the Participant terminates employment due to Retirement).

(c)Settlement. The obligation to make payments and distributions with respect to PSUs shall only be satisfied through the issuance of one share of Stock for each earned and vested PSU (the “settlement”) and the settlement of the PSUs may be subject to such conditions, restrictions and contingencies as the Committee shall determine. Subject to Section 4(c), the Company undertakes and agrees not to exercise its right under the Plan to settle the PSUs in any other means other than shares of Stock. PSUs shall be settled as soon as practicable after the Vesting Date. However, in the event (i) the Participant dies on or after the Date of Grant and before the Performance Period, the PSUs shall be settled no later than March 15 of the calendar year following the end of the first calendar year of the Performance Period, and (ii) the Participant dies during the Performance Period, the PSUs shall be settled no later than March 15 of the calendar year following the calendar year in which the Participant dies. For purposes of this Agreement, the date on which PSUs are settled pursuant to the preceding sentence shall be a “Settlement Date.”

(d)Dividend Equivalents. Participant will from time to time be credited with additional PSUs (rounded to the nearest whole share), the number of which will be determined by dividing:

(i)The product obtained by multiplying the amount of each dividend (including extraordinary dividend if so determined by the Company) declared and paid by the Company on the Stock on a per share basis during the Vesting Period by the number of PSUs recorded in the Participant’s account on the record date for payment of any such dividend, by

(ii)The Fair Market Value (as defined in the Plan) of one (1) share of Stock on the dividend payment date for such dividend.

Subject to continued employment with the Company or any Affiliate or Subsidiary or as otherwise provided in Section 3, the additional PSUs shall vest and be settled at the same time and in the same proportion as the Initial Grant. No additional PSUs shall be accrued for the benefit of Participant with respect to record dates occurring before, or with

2

58409620v.3

respect to record dates occurring on or after the date, if any, on which Participant has forfeited the PSUs.

3.Termination of Employment with the Company. For purposes of this Agreement and to the extent applicable to the Participant, the term “termination of employment” shall mean “separation from service” as defined in Section 409A of the Internal Revenue Code (“Section 409A”). To the extent payments are made during the periods permitted under Section 409A (including any applicable periods before or after the specified payment dates set forth in Section 2(c)), the Company shall be deemed to have satisfied its obligations under the Plan and shall be deemed not to be in breach of its payments obligations hereunder.

(a)Retirement. If the Participant’s employment with the Company, Affiliates and Subsidiaries terminates as a result of “Retirement” at any time on or after six months from the Date of Grant, then the Participant shall be entitled to receive 100% of the PSUs he would have earned had he remained employed with the Company, Affiliates and Subsidiaries for the entire Vesting Period, based on actual performance as provided in and determined pursuant to Section 2(a). For purposes of the Agreement, “Retirement” means the Participant terminates employment with the Company, all Affiliates and Subsidiaries under circumstances that do not entitle the Participant to severance either pursuant to an agreement or policy, plan or program and such termination occurs on or after: (i) attaining age 58, (ii) completing at least two years of service, and (iii) having a combined age and years of service (counting partial years) equal to at least 62.5 points.

(b)Involuntary Termination and Certain Voluntary Terminations. The Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on actual performance, as provided in and determined pursuant to Section 2(a), in the following circumstances: (1) the Participant’s employment with the Company or any Affiliate or Subsidiary terminates as a result of Retirement within six months after the Date of Grant, (2) the Participant voluntarily terminates his employment with the Company, Affiliates and Subsidiaries on or after age 55 and the termination does not constitute a Retirement, or (3) the Participant is involuntarily terminated by the Company or any Affiliate or Subsidiary without Cause (whether or not the Participant is eligible for Retirement, regardless of his age at termination and other than due to Disability or death). For purposes of the preceding, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the Participant’s retirement date or last day worked (in the case of termination) and the denominator of which shall be 39 (the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).

(c)Death. If the Participant’s employment with the Company or any Affiliate or Subsidiary terminates due to the Participant’s death, the Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on estimated actual performance as of December 31 of the calendar year that contains the Participant’s date of death, as approved by the Committee.

3

58409620v.3

(i)Death During Performance Period. If the Participant’s death while employed occurs during the Performance Period, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the calendar year that contains the Participant’s date of death and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).

(ii)Death On/After Date of Grant and Before Performance Period. If the Participant’s death while employed occurs on or after the Date of Grant, but before the Performance Period begins, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the first calendar year of the Performance Period and the denominator of which shall be 39(i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).

(d)Disability. If the Participant becomes eligible for long-term disability benefits under a plan sponsored by the Company, an Affiliate or a Subsidiary (“Disabled”), the Participant shall become vested in a prorata number of PSUs and entitled to receive a number of PSUs based on actual performance as provided in and determined pursuant to Section 2(a).

(i)Disability During Performance Period. If the Participant becomes Disabled during the Performance Period, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the calendar year during the Performance Period that includes the date on which the Participant becomes Disabled plus the number of additional full calendar months, if any, elapsed from the date of the Participant’s return to active employment with the Company through the end of the Vesting Period, and the denominator of which shall be 39 (i.e.,the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).

(ii)Disabled On/After Date of Grant and Before Performance Period. If the Participant becomes Disabled on or after the Date of Grant, but before the Performance Period begins, the prorata number of the PSUs shall be equal to (A) the total number of granted PSUs under Section 1(a) plus any dividend equivalents multiplied by (B) a fraction, the numerator of which shall be the number of full calendar months elapsed from December 1 following the Date of Grant through the end of the first calendar year of the Performance Period plus the number of additional full calendar months, if any, elapsed from the date of the Participant’s return to active employment with the Company after the end of the first calendar year of the Performance Period through the end of the Vesting Period, and the denominator of which shall be 39 (i.e., the number of calendar months in the Vesting Period, treating the month of December following the Date of Grant as the first calendar month).

4

58409620v.3

(iii)Disabled On/After the End of the Performance Period. If the Participant becomes Disabled after the Performance Period ends, but before the Vesting Date, the Participant shall be entitled to receive 100% of the PSUs he would have earned had he remained in active employment with the Company, Affiliates and Subsidiaries for the entire Vesting Period, based on actual performance as provided in and determined pursuant to Section 2(a).

(e)Other Termination. If the Participant’s employment with the Company, all Affiliates and Subsidiaries terminates (i) by the Company for Cause at any time or (ii) by resignation before attainment of age 55, then all outstanding PSUs, whether vested but unsettled or unvested, shall immediately terminate.

In no event shall any PSUs be settled before the Vesting Date except as provided above in the event of death or as otherwise determined by the Company.

4.Compliance with Legal Requirements. The granting and settlement of the PSUs, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, provincial, state, local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required.

(a)Transferability. Unless otherwise provided by the Committee in writing, the PSUs shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant by Participant other than by will or the laws of descent and distribution. Any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company, an Affiliate or a Subsidiary; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.

(b)No Rights as Stockholder. The Participant shall not be deemed for any purpose to be the owner of any shares of Stock subject to PSUs and shall have no voting rights with respect to the PSUs.

(c)Tax Withholding. All distributions under the Plan are subject to withholding of all applicable federal, state, provincial, local and foreign income taxes and social contributions (the “Withholding Obligation”). The Company may satisfy such Withholding Obligation by any means whatsoever, including withholding cash from any other payment or amounts due to the Participant. Unless otherwise determined by the Committee, the Company will satisfy its Withholding Obligation by issuing, upon the settlement of the PSUs, a net number of shares of Stock to the Participant equal to the number of shares of Stock that the Participant would otherwise be entitled to receive on the Settlement Date minus such number of shares of Stock with a value determined on that date equal to any amount required to satisfy the Withholding Obligation.

5.Forfeiture and Recoupment. For the avoidance of doubt, the Plan’s provisions on forfeiture and recoupment in Section 15 of the Plan apply to the PSUs awarded hereunder. The Company's Recoupment Policy, as may be amended from time to time, shall apply to the PSUs, any shares of Stock delivered hereunder and any profits realized on the sale of such Shares to the extent that the Participant is covered by such policy. If the Participant is covered by such policy,

5

58409620v.3

the policy may apply to recoup PSUs awarded, any shares of Stock delivered hereunder or profits realized on the sale of such shares either before, on or after the date on which the Participant becomes subject to such policy.

6.Miscellaneous.

(a)Waiver. Any right of the Company contained in this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.

(b)Notices. Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, to the attention of the Director, Corporate Compensation at the Company’s principal executive office.

(c)Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

(d)No Rights to Employment. Nothing contained in this Agreement shall be construed as giving Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever.

(e)Beneficiary. The Participant other than a Participant residing in the Province of Québec, may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. Any notice should be made to the attention of the Corporate Secretary of the Company at the Company’s principal executive office. If no designated beneficiary survives the Participant, the Participant’s estate shall be deemed to be Participant’s beneficiary.

(f)Québec Participant. The Participant residing in the Province of Québec may only designate a beneficiary by will. Upon the death of the Participant residing in the Province of Québec, the Company shall settle the PSUs pursuant to Section 2(c) of this Agreement to the liquidator, administrator or executor of the estate of the Participant.

(g)Successors. The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.

6

58409620v.3

(h)Entire Agreement. This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent under Section 9 of the Plan.

(i)Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.

(j)Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

IN WITNESS WHEREOF, the Company has executed this Agreement as of the day first written above.

RESOLUTE FOREST PRODUCTS INC.

By:

Rémi G. Lalonde

President and Chief Executive Officer

7

58409620v.3

Exhibit 1
Performance Measures

For the Performance Period that begins January 1, 2022 and ends December 31, 2024, there are three performance measures, each with different weighting and possible payout levels.

Performance Weighting

The actual results of each performance measure, described below, will be adjusted to reflect each measure’s weighting.

Performance Measure	Weighting
Total Shareholder Return	50%
Return on Capital	20%
Asset Performance Improvement	30%

Performance Measures

Total Shareholder Return (“TSR”)

Subject to adjustments, for the TSR measure, the Participant will earn between 0% and 200% (share amounts will be straight-line interpolated) of the number of PSUs covered by the Initial Grant.

TSR vs. Peers During the Performance Period	20 percentage points below median	10 percentage points below median	Median	10 percentage points above median	20 percentage points above median
Payout	0%	50%	100%	150%	200%

Notwithstanding anything in the Agreement to the contrary, payouts that otherwise would have been more than 100% of target will be capped at 100% of target if the Company’s TSR is negative over the Performance Period.

TSR shall be calculated as follows:

8

58409620v.3

Relative TSR shall be measured each calendar year in the Performance Period. For example, TSR for 2022 shall be determined using January 1, 2023 as the end point and January 1, 2022 as the beginning point. Interim payout levels shall be determined based on relative TSR for each such calendar year. The payout levels for each such calendar year shall be divided by 3 to determine final payout of the TSR measure.

The peer group includes the following companies:

Canfor Corp	UPM-Kymmene OYJ
Clearwater Paper Corp	Verso Corp – A
Interfor Corp	West Fraser Timber Co. LTD
Mercer International Inc.	Western Forest Products Inc.
Rayonier Advanced Materials	Weyerhaeuser Co

The Committee may, in its sole discretion, make adjustments to the peer group as appropriate.

Return on Capital

Subject to adjustments, for the return on capital measure, the Participant will earn between 0% and 200% (share amounts will be straight-line interpolated) of the number of PSUs covered by the Initial Grant.

Original internal rate of return (“IRR”) vs. Actual IRR	< 80% of original IRR	90% of original IRR	100% of original IRR	110% of original IRR	> 120% of original IRR
Payout	0%	50%	100%	150%	200%

For each capital project approved after January 1, 2018 and assessed during the Performance Period, the actual IRR will be compared to the original IRR set forth in the project’s appropriation of funds request in accordance with Policy FP-500, Capital Expenditures. Total payout will be calculated using a weighted average. Capital projects included for this performance measure include all tissue projects with an appropriation of funds greater than $400,000, all wood projects with an appropriation of funds greater than $500,000, pulp and paper projects with an appropriation of funds greater than $1,000,000, and corporate projects with an appropriation of funds greater than $1,000,000 with an assigned IRR.

9

58409620v.3

Asset Performance Improvement

Subject to adjustments, for the asset performance improvement measure, the Participant will earn between 0% and 200% (share amounts will be straight-line interpolated) of the number of PSUs covered by the Initial Grant.

Performance targets will be established for each calendar year in the Performance Period and over the three-year Performance Period. The payout levels for each calendar year are determined independently with each weighted 20% and the three-year Performance Period with a weight of 40%.

Performance Target	< 50% of target	75% of target	100% of target	110% of target
Payout	0%	50%	100%	200%

Asset performance for each year in the Performance Period is based on the Company’s “realized production unit growth” versus the current year’s “budgeted production unit growth.” For this purpose, realized production unit growth is efficiency improvements and increases in operational shifts, excluding mergers and acquisitions, closures and market downtime. Budgeted production unit growth is based on actual production for a given year versus the budgeted production for the following year.

Asset performance is established and measured for each business segment using the foregoing formula. The overall asset performance of the Company is then determined as a weighted average of each segment using the budgeted revenues of the year.

Asset performance for the three-year Performance Period is measured as the Company’s realized production unit growth as of December 31, 2024 versus the three-year targeted production unit growth as of December 31, 2021. A targeted production unit growth will be established and measured for each segment, with an overall asset performance of the Company determined as a weighted average of each segment using the budgeted revenues of 2024.

10

58409620v.3

EX-10.2

EXHIBIT 10.2

1010, rue De La Gauchetière Ouest, bureau 400

Montréal, Québec, H3B 2N2 Canada

T 514-875-2160 resolutefp.com

March 30, 2022

*This is a translation from the signed agreement in French

Mr. Yves Laflamme

Re: Agreement between Yves Laflamme and Resolute FP Canada Inc.

Yves,

I am pleased to confirm the renewal of your appointment as Special Advisor to the President and Chief Executive Officer. The terms and conditions of the agreement dated April 9, 2021, remain unchanged, except for the term and termination, which are amended as follows:

Date of Appointment & Term

This agreement becomes effective on April 1, 2022.

Termination

The term of your employment will be for 3 months from the effective date, terminating on June 30, 2022. Either party may, at any time and for cause, terminate unilaterally the present agreement without prior notice.

If you have any questions concerning this offer, please let me know.

Best regards,

/s/ Remi G. Lalonde

Remi G. Lalonde

President and Chief Executive Officer

I have read the herein letter and hereby accept these terms and conditions.

/s/ Yves Laflamme	April 4, 2022
Yves Laflamme	Date

EX-31.1

EXHIBIT 31.1

Certification

I, Remi G. Lalonde, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of RESOLUTE FOREST PRODUCTS INC.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2022

/s/ Remi G. Lalonde

Remi G. Lalonde

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification

I, Sylvain A. Girard, certify that:

1.I have reviewed this quarterly report on Form 10-Q for the quarterly period ended March 31, 2022 of RESOLUTE FOREST PRODUCTS INC.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 10, 2022

/s/ Sylvain A. Girard

Sylvain A. Girard

Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of RESOLUTE FOREST PRODUCTS INC. (the “Company”), hereby certifies, to such officer’s knowledge, that the Company’s quarterly report on Form 10‑Q for the quarter ended March 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 10, 2022	/s/ Remi G. Lalonde
	Name: Remi G. Lalonde
	Title: President and Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Resolute Forest Products Inc. and will be retained by Resolute Forest Products Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

EXHIBIT 32.2

Certification

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of RESOLUTE FOREST PRODUCTS INC. (the “Company”), hereby certifies, to such officer’s knowledge, that the Company’s quarterly report on Form 10‑Q for the quarter ended March 31, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 10, 2022	/s/ Sylvain A. Girard
	Name: Sylvain A. Girard
	Title: Senior Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Resolute Forest Products Inc. and will be retained by Resolute Forest Products Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being filed as part of the Report or as a separate disclosure document.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-33776
Entity Registrant Name	RESOLUTE FOREST PRODUCTS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-0526415
Entity Address, Address Line One	1010 De La Gauchetière Street West
Entity Address, Address Line Two	Suite 400
Entity Address, City	Montreal
Entity Address, Province	QC
Entity Address, Country	CA
Entity Address, Postal Zip Code	H3B 2N2
City Area Code	514
Local Phone Number	875-2160
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	RFP
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,796,573
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001393066
Current Fiscal Year End Date	--12-31

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Sales	$ 945	$ 873
Costs and expenses:
Depreciation and amortization	32	41
Selling, general and administrative expenses	36	46
Closure costs, impairment and other related charges	4	3
Net gain on disposition of assets	(1)	0
Operating income	235	177
Interest expense	(5)	(6)
Non-operating pension and other postretirement benefit (costs) credits	(7)	2
Other income (expense), net (Note 3)	45	(45)
Income before income taxes	268	128
Income tax provision (Note 11)	(58)	(40)
Net income including noncontrolling interest	210	88
Net income attributable to noncontrolling interest	0	(1)
Net income attributable to Resolute Forest Products Inc.	$ 210	$ 87
Net income per share attributable to Resolute Forest Products Inc. common shareholders (Note 5):
Basic (USD per share)	$ 2.71	$ 1.07
Diluted (USD per share)	$ 2.68	$ 1.06
Weighted-average number of Resolute Forest Products Inc. common shares outstanding:
Basic (shares)	77.4	81.2
Diluted (shares)	78.2	81.9
Product
Costs and expenses:
Cost of sales, excluding depreciation, amortization and distribution costs	$ 547	$ 522
Distribution costs
Costs and expenses:
Cost of sales, excluding depreciation, amortization and distribution costs	$ 92	$ 84

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income including noncontrolling interest	$ 210	$ 88
Unamortized prior service costs
Change in unamortized prior service costs (Note 4)	0	(1)
Income tax provision	0	0
Change in unamortized prior service costs, net of tax	0	(1)
Unamortized actuarial losses
Change in unamortized actuarial losses (Note 4)	29	49
Income tax provision	(4)	(12)
Change in unamortized actuarial losses, net of tax	25	37
Foreign currency translation	1	0
Other comprehensive income, net of tax	26	36
Comprehensive income including noncontrolling interest	236	124
Comprehensive income attributable to noncontrolling interest	0	(1)
Comprehensive income attributable to Resolute Forest Products Inc.	$ 236	$ 123

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 162	$ 112
Accounts receivable, net:
Trade	301	257
Other	56	56
Inventories, net (Note 6)	595	510
Other current assets	55	54
Total current assets	1,169	989
#REF!	1,261	1,270
#REF!	56	57
Goodwill (Note 2)	104	31
Deferred income tax assets	600	653
Operating lease right-of-use assets	58	54
Other assets (Note 7)	516	484
Total assets	3,764	3,538
Current liabilities:
Accounts payable and other (Note 8)	442	421
Current portion of long-term debt (Note 9)	2	2
Current portion of operating lease liabilities	8	8
Total current liabilities	452	431
Long-term debt, net of current portion (Note 9)	300	300
Pension and other postretirement benefit obligations	1,124	1,151
Operating lease liabilities, net of current portion	55	51
Other liabilities	81	88
Total liabilities	2,012	2,021
Commitments and contingencies (Note 12)
Resolute Forest Products Inc. shareholders’ equity:
#REF!	0	0
Additional paid-in capital	3,808	3,807
Deficit	(799)	(1,009)
Accumulated other comprehensive loss (Note 4)	(1,036)	(1,062)
#REF!	(224)	(222)
Total Resolute Forest Products Inc. shareholders’ equity	1,749	1,514
Noncontrolling interest	3	3
Total equity	1,752	1,517
Total liabilities and equity	$ 3,764	$ 3,538

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accumulated depreciation on fixed assets	$ 1,783	$ 1,752
Accumulated amortization on intangible assets	$ 38	$ 37
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock issued (shares)	121.3	121.2
Common stock outstanding (shares)	76.8	76.8
Treasury stock (shares)	44.5	44.4

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Deficit	Accumulated Other Comprehensive Loss	Treasury Stock	Non-controlling Interest
Balance at beginning of period at Dec. 31, 2020	$ 1,082	$ 0	$ 3,804	$ (1,235)	$ (1,314)	$ (174)	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation, net of withholding taxes	(2)		(2)
Net income	88			87			1
Purchases of treasury stock	(17)					(17)
Other comprehensive income, net of tax	36				36		0
Balance at end of period at Mar. 31, 2021	1,187	0	3,802	(1,148)	(1,278)	(191)	2
Balance at beginning of period at Dec. 31, 2021	1,517	0	3,807	(1,009)	(1,062)	(222)	3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation, net of withholding taxes	1		1
Net income	210			210			0
Purchases of treasury stock	(2)					(2)
Stock unit awards vested, net of shares forfeited for employee withholding taxes	0
Other comprehensive income, net of tax	26				26		0
Balance at end of period at Mar. 31, 2022	$ 1,752	$ 0	$ 3,808	$ (799)	$ (1,036)	$ (224)	$ 3

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Treasury stock acquired (shares)	125,482	1,700,000
Common Stock
Stock unit awards vested, net of shares forfeited for employee withholding taxes (shares)	100,000	400,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income including noncontrolling interest	$ 210.0	$ 88.0
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Share-based compensation	2.0	2.0
Depreciation and amortization	32.0	41.0
Closure costs, impairment and other related charges	(2.0)	0.0
Deferred income taxes	56.0	40.0
Net pension contributions and other postretirement benefit payments	(8.0)	(23.0)
Gain on previously-held equity investments (Note 2)	(41.0)	0.0
Net gain on disposition of assets	(1.0)	0.0
Gain on translation of foreign currency denominated deferred income taxes	(6.0)	(12.0)
Loss on translation of foreign currency denominated pension and other postretirement benefit obligations	9.0	16.0
(Gain) loss on commodity contracts (Note 3)	(2.0)	14.0
Net planned major maintenance amortization (payments)	7.0	(3.0)
Changes in working capital:
Accounts receivable	(36.0)	(51.0)
Inventories	(67.0)	(50.0)
Other current assets	(7.0)	0.0
Accounts payable and other	13.0	2.0
Other, net	(12.0)	10.0
Net cash provided by operating activities	147.0	74.0
Cash flows from investing activities:
Cash invested in fixed assets	(13.0)	(14.0)
Acquisition of business, net of cash acquired (Note 2)	(43.0)	0.0
Disposition of assets	4.0	0.0
Increase in countervailing and anti-dumping duty cash deposits on softwood lumber (Note 7)	(43.0)	(32.0)
Other investing activities, net	0.0	3.0
Net cash used in investing activities	(95.0)	(43.0)
Cash flows from financing activities:
Issuance of long-term debt (Note 9)	0.0	300.0
Repayments of debt (Note 9)	0.0	(376.0)
Purchases of treasury stock (Note 13)	(2.0)	(17.0)
Payments of financing fees	0.0	(6.0)
Net cash used in financing activities	(2.0)	(99.0)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	0.0	0.0
Net increase (decrease) in cash and cash equivalents, and restricted cash	50.0	(68.0)
Cash and cash equivalents, and restricted cash:
Beginning of period	152.0	159.0
End of period	202.0	91.0
Cash and cash equivalents, and restricted cash at end of period:
Cash and cash equivalents	162.0	33.0
Restricted cash (included in “Other current assets”)	0.0	18.0
Restricted cash (included in “Other assets”)	$ 40.0	$ 40.0

XML

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Note 1. Organization and Basis of Presentation

Nature of operations

Resolute Forest Products Inc. (with its subsidiaries, either individually or collectively, unless otherwise indicated, referred to as “Resolute Forest Products,” “we,” “our,” “us,” “Parent,” or the “Company”) is incorporated in Delaware. We are a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and paper, which are marketed in over 60 countries. We own or operate some 40 facilities as well as power generation assets, in the U.S. and Canada.

Financial statements

Our unaudited interim consolidated financial statements and accompanying notes (or, the “Consolidated Financial Statements”) have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or, the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles (or, “GAAP”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended March 31, 2022, are not necessarily indicative of the results to be expected for the full year. These Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022.

New accounting pronouncement adopted in 2022

ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”

Effective January 1, 2022, we adopted ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” issued by the Financial Accounting Standards Board in 2021, which revises the accounting for acquired revenue contracts with customers in a business combination. The adoption of this accounting guidance, which was applied prospectively, did not impact our Consolidated Financial Statements and disclosures.

XML

Other Income (Expense), Net

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Note 3. Other Income (Expense), Net

Other income (expense), net for the three months ended March 31, 2022 and 2021, was comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Foreign exchange loss	$	(3)	$	(5)
Gain (loss) on commodity contracts (1)		2		(37)
Income from equity method investments (2)		6		—
Gain on previously-held equity investments (Note 2)		41		—
Miscellaneous expense		(1)		(3)
	$	45	$	(45)

(1)    For the three months ended March 31, 2021, the loss was principally related to lumber futures contracts, of which a $14 million loss was unrealized; none of these contracts were outstanding as of March 31, 2022.

(2)Principally related to the equity investment in Larouche and St-Prime in which we acquired a controlling interest during the three months ended March 31, 2022. See Note 2, “Business Acquisition” for more information.

XML

Business Acquisition

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Acquisition

Note 2. Business Acquisition

On March 4, 2022 (or, the “Acquisition Date”), we acquired control of Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership (or, “Larouche and St-Prime”), that were previously held as 50% owned joint ventures, by acquiring the remaining 50% equity interests from Louisiana-Pacific Canada Ltd., a wholly-owned subsidiary of Louisiana-Pacific Corporation, for a cash consideration of $51 million (including $1 million of working capital adjustment, and net of cash acquired of $8 million), subject to post-closing adjustments. Larouche and St-Prime, which are engineered wood product facilities located in Quebec, produce I-joists for the construction industry. This acquisition solidifies our presence in the engineered wood product segment.

We accounted for our previously held equity investments in Larouche and St-Prime using the equity method of accounting since we had joint control prior to acquiring a controlling interest on the Acquisition Date.

We accounted for the acquisition of Larouche and St-Prime as a business combination in accordance with the acquisition method of accounting, which requires us to record the identifiable assets acquired and liabilities assumed at fair value. The amount by which the purchase price exceeds the fair value of the net assets acquired is recorded as goodwill. We have commenced the appraisals necessary to assess the fair values of the assets acquired, including amortizable intangible assets identified related to customer relationships, and liabilities assumed and the amount of goodwill to be recognized as of the Acquisition Date. The fair value assessment process of the assets acquired and liabilities assumed is ongoing. Our preliminary allocation of the purchase price is based on the corresponding book values of Larouche and St-Prime as of the Acquisition Date, except for the inventories, which are recorded at their fair values. The amount by which the purchase price exceeds these values was recorded in “Goodwill” in our Consolidated Balance Sheet. This allocation is preliminary in nature and thus, could yield significant adjustments of the values allocated upon completion of the fair value assessment process. The final determination of the fair values of the assets acquired and liabilities assumed will be completed within the measurement period of up to one year from the Acquisition Date permitted under GAAP.

The following table summarizes our preliminary allocation of the purchase price of assets acquired and liabilities assumed at the Acquisition Date:

(Unaudited, in millions)
Cash and cash equivalents	$	16
Accounts receivable		11
Inventories		16
Current assets acquired	$	43
Fixed assets	$	6
Goodwill (1)		73
Deferred income tax assets		1
Total assets acquired and goodwill	$	123
Accounts payable and other	$	4
Current liabilities assumed		4
Pension and other postretirement benefit obligations		1
Total liabilities assumed	$	5
Net assets acquired	$	118
Cash consideration transferred		59
Fair value of the previously held interests in Larouche and St-Prime		59
Total fair value of consideration	$	118

(1)The preliminary purchase price allocation resulted in the recognition of an amount of goodwill of $73 million. As explained above, the allocation process of assets acquired and liabilities assumed is ongoing and, as a result, the value allocated to goodwill could change significantly following the completion of the purchase price allocation.

At the Acquisition Date, our previously-held equity investments of $18 million were remeasured at a fair value of $59 million, which resulted in a gain of $41 million. The gain was recorded in “Other income (expense), net” in our Consolidated Statements of Operations for the three months ended March 31, 2022.

We applied an income approach, specifically the discounted cash flow (or, the “DCF”) method, to measure the fair value of our equity interest in Larouche and St-Prime, as of immediately prior to the business acquisition. Determining fair value requires the exercise of significant judgments, including the amount and timing of expected future cash flows, discount rate and tax rate. The cash flows employed in the DCF analysis are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, existing firm orders, long term business plans and recent operating performance. The discount rate utilized in the DCF analysis is based on the respective company’s weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital, adjusted as appropriate to consider the risk inherent in future cash flows of the Company.

We ceased applying the equity method for our investments in Larouche and St-Prime and the net assets acquired and results of operations are consolidated from the Acquisition Date and are included in the wood products segment.

From the Acquisition Date to March 31, 2022, our consolidated financial results included sales of $14 million and net income of nil attributable to Larouche and St-Prime.

The following unaudited pro forma information for the three months ended March 31, 2022, represents our results of operations as if the acquisition of Larouche and St-Prime had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future.

	Three Months Ended March 31,
(Unaudited, in millions)		2022		2021
Sales	$	965	$	887
Net income attributable to Resolute Forest Products Inc. (1)	$	182	$	120

(1)For the pro forma information, the gain on previously-held equity investments of $41 million was considered realized in the three months ended March 31, 2021, and deducted from the three months ended March 31, 2022.

XML

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Note 4. Accumulated Other Comprehensive Loss

The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2021	$	(5)	$	(1,051)	$	(6)	$	(1,062)
Other comprehensive income before reclassifications (1)		—		10		1		11
Amounts reclassified from accumulated other comprehensive loss		—		15		—		15
Net current period other comprehensive income		—		25		1		26
Balance as of March 31, 2022	$	(5)	$	(1,026)	$	(5)	$	(1,036)

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2020	$	(1)	$	(1,307)	$	(6)	$	(1,314)
Other comprehensive income before reclassifications (2)		—		22		—		22
Amounts reclassified from accumulated other comprehensive loss		(1)		15		—		14
Net current period other comprehensive (loss) income		(1)		37		—		36
Balance as of March 31, 2021	$	(2)	$	(1,270)	$	(6)	$	(1,278)

(1)    The indefinite idling of pulp and paper operations at our Calhoun (Tennessee) mill triggered pension special termination benefit costs and remeasurement of the pension and other postretirement benefit (or, “OPEB”) obligations related to its plans as of January 31, 2022, resulting in a loss of $4 million and an actuarial gain of $14 million, totaling a net gain of $10 million ($10 million net of tax).

(2)    The indefinite idling of the Amos and Baie-Comeau (Quebec) mills triggered curtailment and remeasurement of the pension and OPEB obligations related to their plans as of March 31, 2021, resulting in a curtailment gain of $8 million and an actuarial gain of $22 million, totaling $30 million ($22 million net of tax).

The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021, were comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021		Affected Line in the Consolidated Statements of Operations
Unamortized Prior Service Costs or Credits
Amortization of prior service costs	$	—	$	—	Non-operating pension and other postretirement benefit (costs) credits (1)
Curtailment gain		—		(1)	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		—		—	Income tax provision
Net of tax		—		(1)
Unamortized Actuarial Losses
Amortization of actuarial losses		16		19	Non-operating pension and other postretirement benefit (costs) credits (1)
Other items		3		—	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		(4)		(4)	Income tax provision
Net of tax		15		15
Total Reclassifications	$	15	$	14

(1)These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 10, “Employee Benefit Plans.”

XML

Net Income Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Note 5. Net Income Per Share

The reconciliation of the basic and diluted net income per share for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions, except per share amounts)	2022		2021
Numerator:
Net income attributable to Resolute Forest Products Inc.	$	210	$	87
Denominator:
Weighted-average number of Resolute Forest Products Inc. common shares outstanding		77.4		81.2
Dilutive impact of nonvested stock unit awards and stock options		0.8		0.7
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding		78.2		81.9
Net income per share attributable to Resolute Forest Products Inc. common shareholders:
Basic	$	2.71	$	1.07
Diluted	$	2.68	$	1.06

The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) that were excluded from the calculation of diluted net income per share, as their impact would have been antidilutive, for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions)	2022	2021
Stock options	0.3	0.8
Stock unit awards	—	—

XML

Inventories, Net

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventories, Net

Note 6. Inventories, Net

Inventories, net as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Raw materials	$	174	$	159
Work in process		62		57
Finished goods		205		148
Mill stores and other supplies		154		146
	$	595	$	510

XML

Other Assets

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

Other Assets

Note 7. Other Assets

Other assets as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Countervailing duty cash deposits on softwood lumber (Note 12)	$	365	$	339
Anti-dumping duty cash deposits on softwood lumber (Note 12)		75		58
Equity method investments		11		22
Restricted cash		40		40
Other		25		25
	$	516	$	484

XML

Accounts Payable and Other

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable and Other

Note 8. Accounts Payable and Other

Accounts payable and other as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Trade accounts payable	$	308	$	262
Accrued compensation		62		89
Accrued interest		2		6
Pension and other postretirement benefit obligations		14		14
Accrued provision related to Fibrek Inc. litigation (Note 12)		22		21
Income and other taxes payable		5		4
Other		29		25
	$	442	$	421

XML

Long-Term Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Long-term Debt

Note 9. Long-Term Debt

Overview

Long-term debt, including current portion, as of March 31, 2022 and December 31, 2021, was comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
4.875% senior unsecured notes due 2026:
Principal amount	$	300	$	300
Deferred financing costs		(5)		(5)
Total 4.875% senior unsecured notes due 2026		295		295
Finance lease obligations		6		6
Other debt		1		1
Total debt		302		302
Less: Current portion of finance lease obligations and other debt		(2)		(2)
Long-term debt, net of current portion	$	300	$	300

Debt availabilities

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Term Loan Facility	$	180	$	180
Revolving Credit Facility		180		180
ABL Credit Facility (1)		377		307
Secured delayed draw term loan facility (C$220 million as of March 31, 2022 and December 31, 2021)		176		174
Total availability	$	913	$	841

(1)The availability as of March 31, 2022, was $377 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. The availability as of December 31, 2021, was $307 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits.

Senior Unsecured Notes

2026 Notes

On February 2, 2021, we issued $300 million aggregate principal amount of 4.875% senior unsecured notes due 2026 (or, the “2026 Notes”) at an issue price of 100%, pursuant to an indenture as of that date (or, the “Indenture”). Upon their issuance, the 2026 Notes were recorded at their fair value of $300 million. Interest on the 2026 Notes is payable semi-annually on March 1 and September 1 of each year, beginning on September 1, 2021, until their maturity date of March 1, 2026. In connection with the issuance of the 2026 Notes, we incurred financing costs of $6 million, which were deferred and recorded as a reduction of the principal. Deferred financing costs are amortized to “Interest expense” in our Consolidated Statements of Operations using the interest method over the term of the notes.

The fair value of the 2026 Notes (Level 1) was $289 million as of March 31, 2022.

2023 Notes

On February 2, 2021, we placed the net proceeds from the issuance of the 2026 Notes together with additional cash, into trust for the benefit of the holders of the 5.875% senior unsecured notes due 2023 (or, the “2023 Notes”) to redeem all of the $375 million outstanding aggregate principal amount of the 2023 Notes (or, the “Redemption”) at a price of 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The Redemption occurred on February 18, 2021. As a result of the repurchase, we recorded a net loss on extinguishment of debt of

$3 million in “Other income (expense), net” in our Consolidated Statement of Operations for the three months ended March 31, 2021.

Senior Secured Credit Facility

On April 19, 2021 (or, the “Effective Date”), we entered into a first amendment to the amended and restated senior secured credit facility (or, the “Senior Secured Credit Facility”). The amount available under the Senior Secured Credit Facility remains unchanged for up to $360 million and is comprised of a term loan facility of up to $180 million with a delayed draw period of up to three years and the choice of maturities of six to ten years from the date of drawing (or, the “Term Loan Facility”); and a six-year revolving credit facility of up to $180 million (or, the “Revolving Credit Facility”). On the Effective Date, we repaid our $180 million term loans under the amended and restated senior secured credit facility with a combination of proceeds of borrowings under the Revolving Credit Facility and cash on hand. The amendment then reinstated the full amount of the Term Loan Facility. There is also an uncommitted option to increase the Senior Secured Credit Facility by up to an additional $360 million, subject to certain terms and conditions.

The obligations under the Senior Secured Credit Facility are guaranteed by certain material U.S. subsidiaries of the Company and are secured by a first priority mortgage on the real property of the Company’s facility in Calhoun and a first priority security interest on the fixtures and equipment located therein. On March 2, 2022, the Company entered into agreements to provide the following additional security under the Senior Secured Credit Facility: (i) a first priority mortgage on the real property of the Company’s sawmill facilities in Glenwood and El Dorado (Arkansas) and a first priority security interest on the fixtures and equipment located therein, and (ii) a first priority security interest on the fixtures and equipment at the Company’s sawmill facility in Cross City (Florida).

ABL Credit Facility

On May 14, 2019, we entered into an amended senior secured asset-based revolving credit facility (or, the “ABL Credit Facility”) with an aggregate lender commitment of up to $500 million at any time outstanding, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves.

Effective January 21, 2021, we reduced the commitment under the Canadian tranche of our senior secured asset-based revolving credit facility by $50 million, to $250 million, resulting in an aggregate commitment of $450 million, subject to borrowing base limitations. The obligations under the ABL Credit Facility are guaranteed by certain of our material subsidiaries.

On December 15, 2021, we entered into an amendment to the credit agreement, which reset the facility and extended the maturity date to December 15, 2026. The agreement also contains hardwired benchmark replacement provisions for future transition of LIBOR and may be amended based on agreed upon Environmental, Social and Governance (or, “ESG”) key performance indicators as described in the credit agreement.

XML

Employee Benefit Plans

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Note 10. Employee Benefit Plans

Pension and other postretirement benefit plans

The components of net periodic benefit costs (credits) relating to our pension and OPEB plans for the three months ended March 31, 2022 and 2021, were as follows:

Pension Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	36	$	33
Expected return on plan assets		(49)		(54)
Amortization of actuarial losses		17		21
Amortization of prior service credits		—		—
Non-operating pension costs		4		—
Service cost		3		4
Net periodic benefit costs before special events		7		4
Other loss (gain)		3		(1)
	$	10	$	3

OPEB Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	1	$	1
Amortization of actuarial gains		(1)		(2)
Non-operating other postretirement benefit credits		—		(1)
Service cost		—		—
Net periodic benefit credits before special events		—		(1)
Curtailment gain		—		—
	$	—	$	(1)

Defined contribution plans

Our expense for the defined contribution plans totaled $5 million for the three months ended March 31, 2022 and 2021.

XML

Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

The income tax provision attributable to income before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three months ended March 31, 2022 and 2021, as a result of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Income before income taxes	$	268	$	128
Income tax provision:
Expected income tax provision		(56)		(27)
Changes resulting from:
Valuation allowance		33		8
Foreign exchange		2		2
U.S. tax on non-U.S. earnings		(29)		(18)
State income taxes, net of federal income tax benefit		(1)		2
Foreign tax rate differences		(13)		(8)
Other, net		6		1
	$	(58)	$	(40)

During the three months ended March 31, 2022, we used $33 million of deferred income tax assets that were fully reserved to offset mainly the tax implications relating to the global intangible low-taxed income (or, “GILTI”) inclusion, which is based on the U.S. system of taxation for non-U.S. earnings, whereby foreign earnings less a qualified deduction for foreign assets are included in U.S. taxable income.

During the three months ended March 31, 2021, we used $8 million of deferred income tax assets that were fully reserved to offset the tax implications relating to the GILTI.

XML

Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

Legal matters

We become involved in various legal proceedings, claims and governmental inquiries, investigations, and other disputes in the normal course of business, including matters related to contracts, commercial and trade disputes, taxes, environmental issues, activist damages, employment and workers’ compensation claims, grievances, human rights complaints, pension and benefit plans and obligations, health and safety, product safety and liability, asbestos exposure, financial reporting and disclosure obligations, corporate governance, Indigenous peoples’ claims, antitrust, governmental regulations, and other matters. Although the final outcome is subject to many variables and cannot be predicted with any degree of certainty, we regularly assess the status of the matters and establish provisions (including legal costs expected to be incurred) when we believe an adverse outcome is probable, and the amount can be reasonably estimated. Any recovery from litigation or settlement of claims that is a gain contingency is recognized if, and when, realized or realizable. Except as described below and for claims that cannot be assessed due to their preliminary nature, we believe that the ultimate disposition of these matters outstanding or pending as of March 31, 2022, will not have a material adverse effect on our Consolidated Financial Statements.

Asbestos-related lawsuits

We are involved in a number of asbestos-related lawsuits filed primarily in U.S. state courts, including certain cases involving multiple defendants. These lawsuits principally allege direct or indirect personal injury or death resulting from exposure to asbestos-containing premises. While we dispute the plaintiffs’ allegations and intend to vigorously defend these claims, the ultimate resolution of these matters cannot be determined at this time. These lawsuits frequently involve claims for unspecified compensatory and punitive damages, and we are unable to reasonably estimate a range of possible losses, which may not be covered in whole or in part by our insurance coverage. However, unfavorable rulings, judgments or settlement terms could materially impact our Consolidated Financial Statements. Hearings for certain of these matters are scheduled to occur in 2022.

Countervailing duty and anti-dumping investigations on softwood lumber

On November 25, 2016, countervailing duty and anti-dumping petitions were filed with the U.S. Department of Commerce (or, “Commerce”) and the U.S. International Trade Commission (or, “ITC”) by certain U.S. softwood lumber products producers and forest landowners, requesting that the U.S. government impose countervailing and anti-dumping duties on Canadian-origin softwood lumber products exported to the U.S. One of our subsidiaries was identified in the petitions as being a Canadian exporting producer of softwood lumber products to the U.S. and was selected as a mandatory respondent to be investigated by Commerce in both the countervailing duty and anti-dumping investigations.

Countervailing Duties – On April 24, 2017, Commerce announced its preliminary determination in the countervailing duty investigation; as a result, from April 28, 2017 to August 25, 2017, we were required to pay cash deposits to the U.S. Customs and Border Protection agency (or, “U.S. Customs”) at a rate of 12.82% for countervailing duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the countervailing investigation; as a result, from December 28, 2017 to November 30, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 14.70%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the countervailing investigation; as a result, from December 1, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 19.10%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the countervailing investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 18.07%. Commerce is expected to issue its final determination in the third administrative review of the countervailing investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 15.48% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through March 31, 2022, our cash deposits totaled $365 million.

Anti-dumping Duties – On June 26, 2017, Commerce announced its preliminary determination in the anti-dumping investigation; as a result, from June 30, 2017 to November 7, 2017, we were required to pay cash deposits to U.S. Customs at a rate of 4.59% for anti-dumping duties on the vast majority of our U.S. imports of Canadian-produced softwood lumber. On November 2, 2017, Commerce issued its final determination in the anti-dumping investigation; as a result, from November 8, 2017 to November 29, 2020, we were required to pay cash deposits to U.S. Customs at a new rate of 3.20%. On November 23, 2020, Commerce issued its final determination in the first administrative review of the anti-dumping investigation; as a result, from November 30, 2020 to December 1, 2021, we were required to pay cash deposits to U.S. Customs at a rate of 1.15%. On November 24, 2021, Commerce issued its final determination in the second administrative review of the anti-dumping investigation; as a result, since December 2, 2021, we have been required to pay cash deposits to U.S. Customs at a new rate of 11.59%. Commerce is expected to issue its final determination in the third administrative review of the anti-dumping investigation in the third or fourth quarters of 2022, following which a new rate will take effect for Resolute; this new rate was estimated at 4.76% in a non-binding, preliminary determination released on January 31, 2022, but is subject to modification in the upcoming final determination. Through March 31, 2022, our cash deposits totaled $75 million.

Ongoing Administrative Reviews – Following Commerce’s completion of the Canadian softwood lumber investigation and the first and second administrative reviews, two further administrative reviews remain pending. On March 4, 2021, Commerce published a notice initiating the third administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. We were selected as a mandatory respondent for the third administrative review of the countervailing duty order and we have responded to Commerce with the information requested to date. On March 9, 2022, Commerce published a notice initiating the fourth administrative review of the countervailing duty and anti-dumping orders on softwood lumber products from Canada. According to Commerce’s decision published on April 27, 2022, we were not selected as a mandatory respondent for the fourth administrative review of the countervailing duty order.

Ongoing Appellate Reviews – On December 14, 2017 and January 4, 2018, we filed complaints supporting appellate reviews of the final results of Commerce’s countervailing and anti-dumping investigations on softwood lumber from Canada, respectively, before a binational panel formed pursuant to the North American Free Trade Agreement or United States-Mexico-Canada Agreement, as the case may be (or, “Panel”). Briefing for these appeals has been completed, but the constitution of the Panels and scheduling of the hearings remain pending. Further, on January 6, 2021 and January 19, 2021, we filed our complaints supporting appellate Panel reviews of the final results in the countervailing and anti-dumping first administrative reviews, and on January 12, 2022, we filed similar complaints with respect to the second administrative reviews.

ITC Injury Determination – In parallel, on December 28, 2017, the ITC published its affirmative final injury determinations in the anti-dumping and countervailing investigations on softwood lumber from Canada. On September 4, 2019, a Panel issued an interim decision upholding the affirmative final injury determinations of the ITC in both investigations of softwood lumber

products from Canada. The Panel remanded the ITC to reconsider several findings and ordered the ITC to submit its redetermination on remand within 90 days from the date of the Panel interim decision. On December 19, 2019, the ITC issued its redetermination on remand that maintained the affirmative final injury determinations, and on May 22, 2020, the Panel issued its final decision and affirmed in its entirety the ITC’s injury determination on remand.

WTO Appeal – In addition, on August 24, 2020, the World Trade Organization’s (or, “WTO”) dispute panel issued a report (or, the “Panel Report”) in the case brought by the government of Canada in “United States — Countervailing Measures on Softwood Lumber from Canada” (DS533), concluding, among other things, that Commerce acted inconsistently with the Agreement on Subsidies and Countervailing Measures on most of the matters. On September 28, 2020, the United States notified the WTO’s dispute settlement body of its decision to appeal the Panel Report.

Financial assurance – We are required by U.S. Customs to provide surety bonds to secure the payment of our cash deposits. As of March 31, 2022, we had $83 million of surety bonds outstanding in favor of U.S. Customs, of which $53 million were secured by letters of credit. See Note 9, “Long-Term Debt – ABL Credit Facility” for more information.

We are not presently able to determine the ultimate resolution of these matters, but we believe it is not probable that we will ultimately be assessed with significant duties, if any, on our U.S. imports of Canadian-produced softwood lumber products. Accordingly, no contingent loss was recorded in respect of these petitions in our Consolidated Statements of Operations, and our cash deposits are recorded in “Other assets” in our Consolidated Balance Sheets.

Fibrek acquisition

Effective July 31, 2012, we completed the final step of the transaction pursuant to which we acquired the remaining 25.40% of the outstanding Fibrek Inc. shares, following the approval of Fibrek’s shareholders on July 23, 2012, and the issuance of a final order by the Quebec Superior Court in Canada (or, the “Quebec Superior Court”) approving the arrangement on July 27, 2012. Certain former shareholders of Fibrek exercised rights of dissent in respect of the transaction, asking for a judicial determination of the fair value of their claim under the Canada Business Corporations Act. On September 26, 2019, the Quebec Superior Court rendered a decision fixing the fair value of the shares of the dissenting shareholders at C$1.99 per share, or C$31 million in aggregate, plus interest and an additional indemnity, for a total estimated at C$44 million payable in cash. We had previously accrued C$14 million for the payment of the dissenting shareholders’ claims. Following the court decision, we accrued an additional C$30 million ($23 million), and as a result recorded $23 million in “Other expense, net” in our Consolidated Statement of Operations for the year ended on December 31, 2019. Of the total amount of C$44 million, C$19 million ($14 million) was payable immediately and paid on October 2, 2019. The remaining balances of C$27 million ($22 million) as of March 31, 2022, and C$27 million ($21 million) as of December 31, 2021, which includes accrued interest, are recorded in “Accounts payable and other” in our Consolidated Balance Sheets. We are appealing the decision, therefore the payment of any additional consideration and its timing will depend on the outcome of the appeal. On November 13, 2019, a legal hypothec in the amount of C$30 million was registered on our Saint-Félicien (Quebec) immovable and movable property to secure the payment of any additional amounts following the outcome of the appeal. The hearing in this matter is expected to occur in 2022.

Partial wind-ups of pension plans

On June 12, 2012, we filed a motion for directives with the Quebec Superior Court, the court with jurisdiction in the creditor protection proceedings under the Companies’ Creditors Arrangement Act (Canada) (or, the “CCAA Creditor Protection Proceedings”), seeking an order to prevent pension regulators in each of Quebec, New Brunswick, and Newfoundland and Labrador from declaring partial wind-ups of pension plans relating to employees of former operations in New Brunswick, and Newfoundland and Labrador, or a declaration that any claim for accelerated reimbursements of deficits arising from a partial wind-up is a barred claim under the CCAA Creditor Protection Proceedings. We contend, among other things, that any such declaration, if issued, would be inconsistent with the Quebec Superior Court’s sanction order confirming the CCAA debtors’ CCAA Plan of Reorganization and Compromise, as amended, and the terms of our emergence from the CCAA Creditor Protection Proceedings. A partial wind-up would likely shorten the period in which any deficit within those plans, which could reach up to C$150 million ($120 million), would have to be funded if we do not obtain the relief sought. The hearing in this matter has not yet been scheduled but could occur in the next 12 months.

Contingent gains

In 2017, we filed a lawsuit against the Government of Canada alleging that measures taken by the provincial Government of Nova Scotia and the Government of Canada damaged Resolute and its investments in Canada, in violation of the investment

protections extended to foreign investors under North American Free Trade Agreement Articles 1102, 1105 and 1110. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation is a contingent gain and will be recognized if, and when, realized or realizable.

In 2016, we filed a lawsuit against Greenpeace International, Greenpeace Inc. and certain individuals related to loss of business following false allegations concerning the impact of our harvestry operations in certain regions in Quebec. The claims alleged certain damages resulting from defamation and unfair competition. The total amount for damages claimed is substantial but the amount and timing of the ultimate recovery is uncertain. As a result, any recovery from this litigation or settlement of this claim is a contingent gain and will be recognized if, and when, realized or realizable.

Environmental matters

We are subject to a number of federal or national, state, provincial, and local environmental laws, regulations, and orders in various jurisdictions. We believe our operations are in material compliance with current applicable environmental laws and regulations. Environmental regulations promulgated and orders issued 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 have environmental liabilities of $13 million recorded as of March 31, 2022 and December 31, 2021, primarily related to environmental remediation related to closed sites. The amount of these liabilities represents management’s estimate of the ultimate settlement based on an assessment of relevant factors and assumptions and could be affected by changes in facts or assumptions not currently known to management for which the outcome cannot be reasonably estimated at this time.

We also have asset retirement obligations of $37 million and $36 million recorded as of March 31, 2022 and December 31, 2021, respectively, primarily consisting of liabilities associated with landfills, sludge basins and the dismantling of retired assets.

These liabilities are included in “Accounts payable and other” and “Other liabilities” in our Consolidated Balance Sheets.

XML

Share Capital

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Share Capital

Note 13. Share Capital

Treasury stock

On December 7, 2021, we announced a new share repurchase program, authorized by our board of directors, of up to ten million shares of our common stock or $100 million, whichever occurs first. During the three months ended March 31, 2022, we repurchased 125,482 shares at an average price of $11.34 for a total of $2 million.

On March 2, 2020, our board of directors authorized a share repurchase program of up to 15% of our common stock, for an aggregate consideration of up to $100 million. During the three months ended March 31, 2021, we repurchased 1.7 million shares at an average price of $9.50 for a total of $17 million. This share repurchase program was completed in December 2021.

XML

Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 14. 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, 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.”

Information about certain segment data for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Market Pulp (1)		Tissue		Wood Products (2)		Paper		Segment Total		Corporate and Other		Total
Sales
First three months
2022	$	184	$	48	$	463	$	250	$	945	$	—	$	945
2021	$	176	$	42	$	430	$	225	$	873	$	—	$	873
Depreciation and amortization
First three months
2022	$	4	$	5	$	11	$	9	$	29	$	3	$	32
2021	$	6	$	5	$	11	$	15	$	37	$	4	$	41
Operating income (loss)
First three months
2022	$	22	$	(9)	$	219	$	25	$	257	$	(22)	$	235
2021	$	4	$	(2)	$	221	$	(24)	$	199	$	(22)	$	177

(1)Inter-segment sales were $14 million and $7 million for the three months ended March 31, 2022 and 2021, respectively. These inter-segment sales, which were transacted at either the lowest market price of the previous month or cost, were excluded from market pulp sales.

(2)Wood products sales to our previously-held joint ventures, which were transacted at arm’s length negotiated prices, were $12 million for the period up to the Acquisition Date and $13 million for the three months ended March 31, 2021. See Note 2, “Business Acquisition” for more information.

XML

Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial statements

Financial statements

Our unaudited interim consolidated financial statements and accompanying notes (or, the “Consolidated Financial Statements”) have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (or, the “SEC”) for interim reporting. Under those rules, certain footnotes and other financial information that are normally required by U.S. generally accepted accounting principles (or, “GAAP”) may be condensed or omitted. In our opinion, all adjustments (consisting of normal recurring adjustments) necessary for the fair statement of the Consolidated Financial Statements have been made. All amounts are expressed in U.S. dollars, unless otherwise indicated. The results for the interim period ended March 31, 2022, are not necessarily indicative of the results to be expected for the full year. These Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022.

New accounting pronouncements adopted and Accounting pronouncement not yet adopted

New accounting pronouncement adopted in 2022

ASU 2021-08 “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”

Effective January 1, 2022, we adopted ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” issued by the Financial Accounting Standards Board in 2021, which revises the accounting for acquired revenue contracts with customers in a business combination. The adoption of this accounting guidance, which was applied prospectively, did not impact our Consolidated Financial Statements and disclosures.

XML

Other Income (Expense), Net (Tables)

3 Months Ended

Mar. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Other Income (Expense), Net

Other income (expense), net for the three months ended March 31, 2022 and 2021, was comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Foreign exchange loss	$	(3)	$	(5)
Gain (loss) on commodity contracts (1)		2		(37)
Income from equity method investments (2)		6		—
Gain on previously-held equity investments (Note 2)		41		—
Miscellaneous expense		(1)		(3)
	$	45	$	(45)

(1)    For the three months ended March 31, 2021, the loss was principally related to lumber futures contracts, of which a $14 million loss was unrealized; none of these contracts were outstanding as of March 31, 2022.

(2)Principally related to the equity investment in Larouche and St-Prime in which we acquired a controlling interest during the three months ended March 31, 2022. See Note 2, “Business Acquisition” for more information.

XML

Business Acquisition (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Final Allocation of Purchase Price of Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes our preliminary allocation of the purchase price of assets acquired and liabilities assumed at the Acquisition Date:

(Unaudited, in millions)
Cash and cash equivalents	$	16
Accounts receivable		11
Inventories		16
Current assets acquired	$	43
Fixed assets	$	6
Goodwill (1)		73
Deferred income tax assets		1
Total assets acquired and goodwill	$	123
Accounts payable and other	$	4
Current liabilities assumed		4
Pension and other postretirement benefit obligations		1
Total liabilities assumed	$	5
Net assets acquired	$	118
Cash consideration transferred		59
Fair value of the previously held interests in Larouche and St-Prime		59
Total fair value of consideration	$	118

(1)The preliminary purchase price allocation resulted in the recognition of an amount of goodwill of $73 million. As explained above, the allocation process of assets acquired and liabilities assumed is ongoing and, as a result, the value allocated to goodwill could change significantly following the completion of the purchase price allocation.

Schedule of Pro Forma Information

The following unaudited pro forma information for the three months ended March 31, 2022, represents our results of operations as if the acquisition of Larouche and St-Prime had occurred on January 1, 2021. This pro forma information does not purport to be indicative of the results that would have occurred for the periods presented or that may be expected in the future.

	Three Months Ended March 31,
(Unaudited, in millions)		2022		2021
Sales	$	965	$	887
Net income attributable to Resolute Forest Products Inc. (1)	$	182	$	120

(1)For the pro forma information, the gain on previously-held equity investments of $41 million was considered realized in the three months ended March 31, 2021, and deducted from the three months ended March 31, 2022.

XML

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss by Component (Net of Tax)

The change in our accumulated other comprehensive loss by component (net of tax) for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2021	$	(5)	$	(1,051)	$	(6)	$	(1,062)
Other comprehensive income before reclassifications (1)		—		10		1		11
Amounts reclassified from accumulated other comprehensive loss		—		15		—		15
Net current period other comprehensive income		—		25		1		26
Balance as of March 31, 2022	$	(5)	$	(1,026)	$	(5)	$	(1,036)

(Unaudited, in millions)	Unamortized Prior Service Costs		Unamortized Actuarial Losses		Foreign Currency Translation		Total
Balance as of December 31, 2020	$	(1)	$	(1,307)	$	(6)	$	(1,314)
Other comprehensive income before reclassifications (2)		—		22		—		22
Amounts reclassified from accumulated other comprehensive loss		(1)		15		—		14
Net current period other comprehensive (loss) income		(1)		37		—		36
Balance as of March 31, 2021	$	(2)	$	(1,270)	$	(6)	$	(1,278)

(1)    The indefinite idling of pulp and paper operations at our Calhoun (Tennessee) mill triggered pension special termination benefit costs and remeasurement of the pension and other postretirement benefit (or, “OPEB”) obligations related to its plans as of January 31, 2022, resulting in a loss of $4 million and an actuarial gain of $14 million, totaling a net gain of $10 million ($10 million net of tax).

(2)    The indefinite idling of the Amos and Baie-Comeau (Quebec) mills triggered curtailment and remeasurement of the pension and OPEB obligations related to their plans as of March 31, 2021, resulting in a curtailment gain of $8 million and an actuarial gain of $22 million, totaling $30 million ($22 million net of tax).

Schedule of Reclassifications Out of Accumulated Other Comprehensive Loss

The reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021, were comprised of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021		Affected Line in the Consolidated Statements of Operations
Unamortized Prior Service Costs or Credits
Amortization of prior service costs	$	—	$	—	Non-operating pension and other postretirement benefit (costs) credits (1)
Curtailment gain		—		(1)	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		—		—	Income tax provision
Net of tax		—		(1)
Unamortized Actuarial Losses
Amortization of actuarial losses		16		19	Non-operating pension and other postretirement benefit (costs) credits (1)
Other items		3		—	Non-operating pension and other postretirement benefit (costs) credits (1)
Income tax effect of the above		(4)		(4)	Income tax provision
Net of tax		15		15
Total Reclassifications	$	15	$	14

(1)These items are included in the computation of net periodic benefit cost (credit) related to our pension and OPEB plans summarized in Note 10, “Employee Benefit Plans.”

XML

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted Net Income (Loss) Per Share

The reconciliation of the basic and diluted net income per share for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions, except per share amounts)	2022		2021
Numerator:
Net income attributable to Resolute Forest Products Inc.	$	210	$	87
Denominator:
Weighted-average number of Resolute Forest Products Inc. common shares outstanding		77.4		81.2
Dilutive impact of nonvested stock unit awards and stock options		0.8		0.7
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding		78.2		81.9
Net income per share attributable to Resolute Forest Products Inc. common shareholders:
Basic	$	2.71	$	1.07
Diluted	$	2.68	$	1.06

Schedule of Outstanding Weighted-Average Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs

The weighted-average number of outstanding stock options and nonvested equity-classified restricted stock units, deferred stock units and performance stock units (collectively, “stock unit awards”) that were excluded from the calculation of diluted net income per share, as their impact would have been antidilutive, for the three months ended March 31, 2022 and 2021, was as follows:

	Three Months Ended March 31,
(Unaudited, in millions)	2022	2021
Stock options	0.3	0.8
Stock unit awards	—	—

XML

Inventories, Net (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories, Net

Inventories, net as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Raw materials	$	174	$	159
Work in process		62		57
Finished goods		205		148
Mill stores and other supplies		154		146
	$	595	$	510

XML

Other Assets (Tables)

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

Schedule of Other Assets

Other assets as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Countervailing duty cash deposits on softwood lumber (Note 12)	$	365	$	339
Anti-dumping duty cash deposits on softwood lumber (Note 12)		75		58
Equity method investments		11		22
Restricted cash		40		40
Other		25		25
	$	516	$	484

XML

Accounts Payable and Other (Tables)

3 Months Ended

Mar. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Other

Accounts payable and other as of March 31, 2022 and December 31, 2021, were comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Trade accounts payable	$	308	$	262
Accrued compensation		62		89
Accrued interest		2		6
Pension and other postretirement benefit obligations		14		14
Accrued provision related to Fibrek Inc. litigation (Note 12)		22		21
Income and other taxes payable		5		4
Other		29		25
	$	442	$	421

XML

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt, Including Current Portion

Long-term debt, including current portion, as of March 31, 2022 and December 31, 2021, was comprised of the following:

(Unaudited, in millions)	March 31, 2022		December 31, 2021
4.875% senior unsecured notes due 2026:
Principal amount	$	300	$	300
Deferred financing costs		(5)		(5)
Total 4.875% senior unsecured notes due 2026		295		295
Finance lease obligations		6		6
Other debt		1		1
Total debt		302		302
Less: Current portion of finance lease obligations and other debt		(2)		(2)
Long-term debt, net of current portion	$	300	$	300

(Unaudited, in millions)	March 31, 2022		December 31, 2021
Term Loan Facility	$	180	$	180
Revolving Credit Facility		180		180
ABL Credit Facility (1)		377		307
Secured delayed draw term loan facility (C$220 million as of March 31, 2022 and December 31, 2021)		176		174
Total availability	$	913	$	841

(1)The availability as of March 31, 2022, was $377 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits. The availability as of December 31, 2021, was $307 million, net of $73 million of ordinary course letters of credit outstanding, of which $53 million were to guarantee surety bonds of $83 million related to the U.S. softwood lumber cash deposits.

XML

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

Schedule of Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans

The components of net periodic benefit costs (credits) relating to our pension and OPEB plans for the three months ended March 31, 2022 and 2021, were as follows:

Pension Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	36	$	33
Expected return on plan assets		(49)		(54)
Amortization of actuarial losses		17		21
Amortization of prior service credits		—		—
Non-operating pension costs		4		—
Service cost		3		4
Net periodic benefit costs before special events		7		4
Other loss (gain)		3		(1)
	$	10	$	3

OPEB Plans:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Interest cost	$	1	$	1
Amortization of actuarial gains		(1)		(2)
Non-operating other postretirement benefit credits		—		(1)
Service cost		—		—
Net periodic benefit credits before special events		—		(1)
Curtailment gain		—		—
	$	—	$	(1)

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision)

The income tax provision attributable to income before income taxes differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the three months ended March 31, 2022 and 2021, as a result of the following:

	Three Months Ended March 31,
(Unaudited, in millions)	2022		2021
Income before income taxes	$	268	$	128
Income tax provision:
Expected income tax provision		(56)		(27)
Changes resulting from:
Valuation allowance		33		8
Foreign exchange		2		2
U.S. tax on non-U.S. earnings		(29)		(18)
State income taxes, net of federal income tax benefit		(1)		2
Foreign tax rate differences		(13)		(8)
Other, net		6		1
	$	(58)	$	(40)

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Information about certain segment data for the three months ended March 31, 2022 and 2021, was as follows:

(Unaudited, in millions)	Market Pulp (1)		Tissue		Wood Products (2)		Paper		Segment Total		Corporate and Other		Total
Sales
First three months
2022	$	184	$	48	$	463	$	250	$	945	$	—	$	945
2021	$	176	$	42	$	430	$	225	$	873	$	—	$	873
Depreciation and amortization
First three months
2022	$	4	$	5	$	11	$	9	$	29	$	3	$	32
2021	$	6	$	5	$	11	$	15	$	37	$	4	$	41
Operating income (loss)
First three months
2022	$	22	$	(9)	$	219	$	25	$	257	$	(22)	$	235
2021	$	4	$	(2)	$	221	$	(24)	$	199	$	(22)	$	177

(1)Inter-segment sales were $14 million and $7 million for the three months ended March 31, 2022 and 2021, respectively. These inter-segment sales, which were transacted at either the lowest market price of the previous month or cost, were excluded from market pulp sales.

(2)Wood products sales to our previously-held joint ventures, which were transacted at arm’s length negotiated prices, were $12 million for the period up to the Acquisition Date and $13 million for the three months ended March 31, 2021. See Note 2, “Business Acquisition” for more information.

XML

Organization and Basis of Presentation - Narrative (Details)	Mar. 31, 2022 country site
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries products are marketed in (approximate) | country	60
Number of manufacturing facilities (approximate) | site	40

XML

Other Income (Expense), Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
Foreign exchange loss	$ (3)	$ (5)
Gain (loss) on commodity contracts	2	(37)
Income from equity method investments	6	0
Gain on previously-held equity investments (Note 2)	41	0
Miscellaneous expense	(1)	(3)
Other income (expense), net (Note 3)	45	(45)
Unrealized loss	$ (2)	$ 14

XML

Business Acquisition - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended
	Mar. 04, 2022	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Cash consideration paid, net of cash acquired			$ 43	$ 0
Resolute-LP Engineered Wood Larouche Inc. And Resolute-LP Engineered Wood St-Prime Limited Partnership
Business Acquisition [Line Items]
Equity interest (as percentage)	50.00%
Larouche and St-Prime
Business Acquisition [Line Items]
Initial equity investments	$ 18
Fair value of the previously held interests in Larouche and St-Prime	59
Gain on equity investments	$ 41
Business combination, revenue of acquiree since acquisition date, actual		$ 14
Business combination, earnings or loss of acquiree since acquisition date, actual		$ 0
Louisiana-Pacific Corporation Joint Ventures
Business Acquisition [Line Items]
Proportion of outstanding shares acquired (as a percent)	50.00%
Cash consideration paid, net of cash acquired	$ 51
Purchase price adjustment	1
Cash acquired in acquisition	$ 8

XML

Business Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions	Mar. 04, 2022	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 104	$ 31
Larouche and St-Prime
Business Acquisition [Line Items]
Cash and cash equivalents	$ 16
Accounts receivable	11
Inventories	16
Current assets acquired	43
Fixed assets	6
Goodwill	73
Deferred income tax assets	1
Total assets acquired and goodwill	123
Accounts payable and other	4
Current liabilities assumed	4
Pension and other postretirement benefit obligations	1
Total liabilities assumed	5
Net assets acquired	118
Cash consideration transferred	59
Fair value of the previously held interests in Larouche and St-Prime	59
Total fair value of consideration	$ 118

XML

Business Acquisition - Pro Forma Information (Details) - Larouche and St-Prime - USD ($) $ in Millions		3 Months Ended
	Mar. 04, 2022	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Sales		$ 965	$ 887
Net income attributable to Resolute Forest Products Inc.		$ 182	$ 120
Gain on equity investments	$ 41

XML

Accumulated Other Comprehensive Loss - Accumulated Other Comprehensive Loss by Component (Net of Tax) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	$ 1,517	$ 1,082
Other comprehensive income before reclassifications (1)	11
Amounts reclassified from accumulated other comprehensive loss	15	14
Other comprehensive income, net of tax	26	36
Balance at end of period	1,752	1,187
Curtailment gain (loss)	(4)	8
Curtailment and actuarial gain, before tax	10	30
Curtailment and actuarial gain, net of tax	10	22
Total
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1,062)	(1,314)
Other comprehensive income before reclassifications (1)		22
Other comprehensive income, net of tax	26	36
Balance at end of period	(1,036)	(1,278)
Unamortized Prior Service Costs
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(5)	(1)
Other comprehensive income before reclassifications (1)	0	0
Amounts reclassified from accumulated other comprehensive loss	0	(1)
Other comprehensive income, net of tax	0	(1)
Balance at end of period	(5)	(2)
Unamortized Actuarial Losses
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(1,051)	(1,307)
Other comprehensive income before reclassifications (1)	10	22
Amounts reclassified from accumulated other comprehensive loss	15	15
Other comprehensive income, net of tax	25	37
Balance at end of period	(1,026)	(1,270)
Actuarial gain	14	22
Foreign Currency Translation
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(6)	(6)
Other comprehensive income before reclassifications (1)	1	0
Amounts reclassified from accumulated other comprehensive loss	0	0
Other comprehensive income, net of tax	1	0
Balance at end of period	$ (5)	$ (6)

XML

Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Curtailment gain	$ 4	$ (8)
Income tax effect of the above	(58)	(40)
Total reclassification, net of tax	210	87
Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassification, net of tax	15	14
Unamortized Prior Service Costs | Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs	0	0
Curtailment gain	0	(1)
Income tax effect of the above	0	0
Total reclassification, net of tax	0	(1)
Unamortized Actuarial Losses | Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of actuarial losses	16	19
Other items	3	0
Income tax effect of the above	(4)	(4)
Total reclassification, net of tax	$ 15	$ 15

XML

Net Income Per Share - Schedule of Weighted-Average Outstanding Stock Options and Nonvested Equity-Classified RSUs, DSUs and PSUs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income attributable to Resolute Forest Products Inc.	$ 210	$ 87
Weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares)	77.4	81.2
Dilutive impact of nonvested stock unit awards and stock options (shares)	0.8	0.7
Diluted weighted-average number of Resolute Forest Products Inc. common shares outstanding (shares)	78.2	81.9
Basic (USD per share)	$ 2.71	$ 1.07
Diluted (USD per share)	$ 2.68	$ 1.06
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	0.3	0.8
Stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	0.0	0.0

XML

Inventories, Net - Summary (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 174	$ 159
Work in process	62	57
Finished goods	205	148
Mill stores and other supplies	154	146
Inventories, net	$ 595	$ 510

XML

Other Assets (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Other Assets [Abstract]
Countervailing duty cash deposits on softwood lumber (Note 12)	$ 365	$ 339
Anti-dumping duty cash deposits on softwood lumber (Note 12)	75	58
Equity method investments	11	22
Restricted cash	40	40	$ 40
Other	25	25
Other assets	$ 516	$ 484

XML

Accounts Payable and Other - Summary (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Trade accounts payable	$ 308	$ 262
Accrued compensation	62	89
Accrued interest	2	6
Pension and other postretirement benefit obligations	14	14
Accrued provision related to Fibrek Inc. litigation (Note 12)	22	21
Income and other taxes payable	5	4
Other	29	25
Accounts payable and accrued liabilities	$ 442	$ 421

XML

Long-Term Debt - Long Term Debt, including Current Portion (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Feb. 02, 2021
Debt Instrument [Line Items]
Finance lease obligations	$ 6	$ 6
Other debt	1	1
Total debt	302	302
Less: Current portion of finance lease obligations and other debt	(2)	(2)
Long-term debt, net of current portion	300	300
Senior Notes | Senior Notes due 2026
Debt Instrument [Line Items]
Principal amount	300	300
Deferred financing costs	(5)	(5)
Net carrying amount	$ 295	$ 295
Interest rate of notes (as a percent)			4.875%

XML

Long-Term Debt - Debt Availabilities (Details) $ in Millions, $ in Millions	Mar. 31, 2022 USD ($)	Mar. 31, 2022 CAD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CAD ($)
Debt Instrument [Line Items]
Available credit facility borrowing capacity	$ 913		$ 841
Letters of credit outstanding to guarantee surety bonds	53		53
Letters of credit outstanding related to lumber deposits	83		83
Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit amount outstanding	73		73
ABL Credit Facility
Debt Instrument [Line Items]
Available credit facility borrowing capacity	377		307
Loan Facility
Debt Instrument [Line Items]
Available credit facility borrowing capacity	176	$ 220	174	$ 220
Senior Secured Credit Facility | Line of Credit | Term Loan Facility
Debt Instrument [Line Items]
Available credit facility borrowing capacity	180		180
Senior Secured Credit Facility | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Available credit facility borrowing capacity	$ 180		$ 180

XML

Long-Term Debt - Senior Unsecured Notes (Details) - Senior Notes - USD ($)		3 Months Ended
	Feb. 02, 2021	Mar. 31, 2021	Mar. 31, 2022
Senior Notes due 2026
Debt Instrument [Line Items]
Principal amount of debt	$ 300,000,000
Interest rate of notes (as a percent)	4.875%
Issue price (as a percent)	100.00%
Fair value of senior notes	$ 300,000,000		$ 289,000,000
Deferred financing costs	$ 6,000,000
Senior Notes due 2023
Debt Instrument [Line Items]
Interest rate of notes (as a percent)	5.875%
Fair value of senior notes			$ 375,000,000
Redemption price (as a percent)	100.00%
Loss on extinguishment of debt		$ 3,000,000

XML

Long-Term Debt - Senior Secured Credit Facility (Details) - Amended Senior Secured Credit Facility	Apr. 19, 2021 USD ($)
Debt Instrument [Line Items]
Principal amount of debt	$ 360,000,000
Secured Debt
Debt Instrument [Line Items]
Principal amount of debt	$ 180,000,000
Delay draw period of debt instrument	3 years
Secured Debt | Term Loan Facility
Debt Instrument [Line Items]
Repayment of debt	$ 180,000,000
Secured Debt | Minimum
Debt Instrument [Line Items]
Debt instrument, term	6 years
Secured Debt | Maximum
Debt Instrument [Line Items]
Debt instrument, term	10 years
Line of Credit
Debt Instrument [Line Items]
Debt instrument, term	6 years
Maximum borrowing capacity of credit facility	$ 180,000,000
Uncommitted ability to increase borrowing capacity, maximum	$ 360,000,000

XML

Long-Term Debt - ABL Credit Facility (Details) - Revolving Credit Facility - USD ($)	Jan. 21, 2021	May 14, 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity of credit facility	$ 450,000,000	$ 500,000,000
Canadian Tranche of Senior Secured Asset-Based Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity of credit facility	250,000,000
Increase (decrease) in borrowings	$ 50,000,000

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost Relating to Pension and OPEB Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Non-operating pension and other postretirement benefit costs (credits)	$ 7	$ (2)
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	36	33
Expected return on plan assets	(49)	(54)
Amortization of actuarial losses	17	21
Amortization of prior service credits	0	0
Non-operating pension and other postretirement benefit costs (credits)	4	0
Service cost	3	4
Net periodic benefit costs (credits) before special events	7	4
Other (gain) loss and curtailment gain	3	(1)
Net periodic benefit cost	10	3
OPEB Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost	1	1
Amortization of actuarial losses	(1)	(2)
Non-operating pension and other postretirement benefit costs (credits)	0	(1)
Service cost	0	0
Net periodic benefit costs (credits) before special events	0	(1)
Other (gain) loss and curtailment gain	0	0
Net periodic benefit cost	$ 0	$ (1)

XML

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Retirement Benefits [Abstract]
Expense for the defined contribution plans	$ 5	$ 5

XML

Income Taxes - Reconciliation of Statutory Tax Benefit (Provision) to Income Tax Benefit (Provision) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income before income taxes	$ 268	$ 128
Income tax provision:
Expected income tax provision	(56)	(27)
Changes resulting from:
Valuation allowance	33	8
Foreign exchange	2	2
U.S. tax on non-U.S. earnings	(29)	(18)
State income taxes, net of federal income tax benefit	(1)	2
Foreign tax rate differences	(13)	(8)
Other, net	6	1
Income tax provision	$ (58)	$ (40)

XML

Commitments and Contingencies - Narrative (Details) $ / shares in Units, $ in Millions, $ in Millions			3 Months Ended
	May 20, 2021	Apr. 28, 2017	Mar. 31, 2022 USD ($)	Mar. 31, 2022 CAD ($)	Mar. 31, 2022 CAD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 31, 2021 CAD ($)	Dec. 02, 2021	Dec. 01, 2020	Nov. 30, 2020	Nov. 13, 2019 CAD ($)	Nov. 02, 2017	Jun. 30, 2017	Jul. 31, 2012
Loss Contingencies [Line Items]
Preliminary countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent)	15.48%	12.82%
Final determination countervailing duty rate on certain Canadian softwood lumber imported to the U.S. market (as a percent)			18.07%		18.07%				19.10%			14.70%
Accumulated countervailing cash deposits made on softwood lumber exports			$ 365
Preliminary anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent)													4.59%
Final determination anti-dumping rate on certain Canadian softwood lumber imported to the U.S. market (as a percent)	4.76%							11.59%		1.15%		3.20%
Accumulated anti-dumping cash deposits made on softwood lumber exports			75
Other liabilities			81			$ 88
Legal hypothec on immovable and movable property											$ 30
Maximum deficit from partial wind-up of pension plans to be funded			120	$ 150
Environmental Remediation Obligations [Abstract]
Environmental liabilities			13			13
Asset retirement obligations			37			36
Fibrek
Loss Contingencies [Line Items]
Proportion of outstanding shares acquired (as a percent)														25.40%
Determined per share fair value of dissenting shareholders' shares | $ / shares					$ 1.99
Determined fair value of dissenting shareholders' shares					$ 31
Determined fair value of dissenting shareholders' shares including interest and indemnity					44
Amount accrued to be contingently distributed					14
Change in amount of contingent consideration			23	$ 30
Amount paid, contingent consideration, business combination			14		19
Fibrek
Loss Contingencies [Line Items]
Other liabilities			22		$ 27	$ 21	$ 27
Softwood Lumber Duties Investigations
Loss Contingencies [Line Items]
Contingent loss recorded			0
Surety Bond
Loss Contingencies [Line Items]
Surety bonds outstanding			83
Standby Letters of Credit
Loss Contingencies [Line Items]
Surety bonds outstanding			$ 53

XML

Share Capital - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 07, 2021	Mar. 02, 2020
Dividends Payable [Line Items]
Share repurchase program, authorized amount				$ 100
Share repurchase program, stock repurchased (shares)	125,482	1,700,000
Average price of treasury stock acquired (USD per share)	$ 11.34	$ 9.50
Share repurchase program, aggregate purchase price	$ 2	$ 17
Share repurchase program, authorized maximum percentage of common stock to be repurchased (as a percent)				15.00%
December 2021 Share Repurchase Program
Dividends Payable [Line Items]
Share repurchase program, authorized amount (in shares)			10,000,000
Share repurchase program, authorized amount			$ 100

XML

Segment Information - Segment Reporting Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Sales	$ 945	$ 873
Depreciation and amortization	32	41
Operating income (loss)	235	177
Operating segments | Market Pulp
Segment Reporting Information [Line Items]
Sales	184	176
Depreciation and amortization	4	6
Operating income (loss)	22	4
Operating segments | Tissue
Segment Reporting Information [Line Items]
Sales	48	42
Depreciation and amortization	5	5
Operating income (loss)	(9)	(2)
Operating segments | Wood Products
Segment Reporting Information [Line Items]
Sales	463	430
Depreciation and amortization	11	11
Operating income (loss)	219	221
Joint venture sales	12	13
Operating segments | Paper
Segment Reporting Information [Line Items]
Sales	250	225
Depreciation and amortization	9	15
Operating income (loss)	25	(24)
Operating segments | Segment Total
Segment Reporting Information [Line Items]
Sales	945	873
Depreciation and amortization	29	37
Operating income (loss)	257	199
Corporate and Other | Corporate and Other
Segment Reporting Information [Line Items]
Sales	0	0
Depreciation and amortization	3	4
Operating income (loss)	(22)	(22)
Intersegment eliminations | Market Pulp
Segment Reporting Information [Line Items]
Sales	$ 14	$ 7