| Compensation And Retirement Disclosure [Abstract] | Period [Axis] |
|---|
2016-01-01 - 2016-12-31 |
|---|
Compensation And Retirement Disclosure [Abstract] | |
Change in Accrued Benefit Obligation |
The following table represents the change in the accrued benefit obligation as of December 31, 2016 and December 31, 2015, the measurement date for each year:
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension |
|
|
Other post-retirement |
|
|
Pension |
|
|
Other post-retirement |
|
|
|
|
plans |
|
|
benefit plans |
|
|
plans |
|
|
benefit plans |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Accrued benefit obligation at beginning of year |
|
|
1,509 |
|
|
|
86 |
|
|
|
1,723 |
|
|
|
105 |
|
|
Service cost for the year |
|
|
31 |
|
|
|
2 |
|
|
|
34 |
|
|
|
2 |
|
|
Interest expense |
|
|
51 |
|
|
|
4 |
|
|
|
60 |
|
|
|
4 |
|
|
Plan participants' contributions |
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
Actuarial loss (gain) |
|
|
46 |
|
|
|
1 |
|
|
|
(25 |
) |
|
|
(5 |
) |
|
Plan amendments |
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
— |
|
|
Benefits paid |
|
|
(83 |
) |
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
Direct benefit payments |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
Settlement |
|
|
(6 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Effect of foreign currency exchange rate change |
|
|
34 |
|
|
|
2 |
|
|
|
(219 |
) |
|
|
(15 |
) |
|
Accrued benefit obligation at end of year |
|
|
1,584 |
|
|
|
90 |
|
|
|
1,509 |
|
|
|
86 |
|
|
Change in Fair Value of Assets |
The following table represents the change in the fair value of assets reflecting the actual return on plan assets, the contributions and the benefits paid during the year:
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
Pension plans |
|
|
Pension plans |
|
|
|
|
$ |
|
|
$ |
|
|
Fair value of assets at beginning of year |
|
|
1,493 |
|
|
|
1,721 |
|
|
Actual return on plan assets |
|
|
73 |
|
|
|
63 |
|
|
Employer contributions |
|
|
31 |
|
|
|
13 |
|
|
Plan participants' contributions |
|
|
6 |
|
|
|
6 |
|
|
Benefits paid |
|
|
(87 |
) |
|
|
(79 |
) |
|
Settlement |
|
|
(6 |
) |
|
|
(1 |
) |
|
Effect of foreign currency exchange rate change |
|
|
36 |
|
|
|
(230 |
) |
|
Fair value of assets at end of year |
|
|
1,546 |
|
|
|
1,493 |
|
|
Allocation of Plan Assets, Based on Fair Value of Assets Held and Target Allocation |
The following table shows the allocation of the plan assets, based on the fair value of the assets held and the target allocation for 2016:
|
|
|
|
|
|
|
Percentage of |
|
|
Percentage of |
|
|
|
|
|
|
|
|
plan assets at |
|
|
plan assets at |
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
Target allocation |
|
|
2016 |
|
|
2015 |
|
|
Fixed income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
0% - 9% |
|
|
|
3 |
% |
|
|
2 |
% |
|
Bonds |
|
46%-56% |
|
|
|
51 |
% |
|
|
51 |
% |
|
Insurance contracts |
|
|
5% |
|
|
|
5 |
% |
|
|
6 |
% |
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Equity |
|
3% - 11% |
|
|
|
6 |
% |
|
|
6 |
% |
|
U.S. Equity |
|
8% - 18% |
|
|
|
13 |
% |
|
|
15 |
% |
|
International Equity |
|
17%-27% |
|
|
|
22 |
% |
|
|
20 |
% |
|
Total (1) |
|
|
|
|
|
|
100 |
% |
|
|
100 |
% |
|
(1) |
Approximately 80% of the pension plans' assets relate to Canadian plans and 20% relate to U.S. plans. | |
Funded Status of Plans |
The following table presents the difference between the fair value of assets and the actuarially determined accrued benefit obligation. This difference is also referred to as either the deficit or surplus, as the case may be, or the funded status of the plans. The table further reconciles the amount of the surplus or deficit (funded status) to the net amount recognized in the Consolidated Balance Sheets.
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension |
|
|
Other post-retirement |
|
|
Pension |
|
|
Other post-retirement |
|
|
|
|
plans |
|
|
benefit plans |
|
|
plans |
|
|
benefit plans |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Accrued benefit obligation at end of year |
|
|
(1,584 |
) |
|
|
(90 |
) |
|
|
(1,509 |
) |
|
|
(86 |
) |
|
Fair value of assets at end of year |
|
|
1,546 |
|
|
|
— |
|
|
|
1,493 |
|
|
|
— |
|
|
Funded status |
|
|
(38 |
) |
|
|
(90 |
) |
|
|
(16 |
) |
|
|
(86 |
) |
|
Amount Recognized in Consolidated Balance Sheets |
The funded status includes $48 million of accrued benefit obligation ($46 million at December 31, 2015) related to supplemental unfunded defined benefit and defined contribution plans.
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension |
|
|
Other post-retirement |
|
|
Pension |
|
|
Other post-retirement |
|
|
|
|
plans |
|
|
benefit plans |
|
|
plans |
|
|
benefit plans |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Trade and other payables (Note 17) |
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
Other liabilities and deferred credits (Note 20) |
|
|
(141 |
) |
|
|
(86 |
) |
|
|
(129 |
) |
|
|
(82 |
) |
|
Other assets (Note 15) |
|
|
103 |
|
|
|
— |
|
|
|
113 |
|
|
|
— |
|
|
Net amount recognized in the Consolidated
Balance Sheets |
|
|
(38 |
) |
|
|
(90 |
) |
|
|
(16 |
) |
|
|
(86 |
) |
|
Pre-Tax Amounts Included in Other Comprehensive Income (Loss) |
The following table presents the pre-tax amounts included in Other comprehensive income (loss):
|
|
|
Year ended |
|
|
Year ended |
|
|
Year ended |
|
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
|
|
|
|
|
|
Other post- |
|
|
|
|
|
|
Other post- |
|
|
|
|
|
|
Other post- |
|
|
|
|
Pension |
|
|
retirement |
|
|
Pension |
|
|
retirement |
|
|
Pension |
|
|
retirement |
|
|
|
|
plans |
|
|
benefit plans |
|
|
plans |
|
|
benefit plans |
|
|
plans |
|
|
benefit plans |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Prior service credit |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Amortization of prior year service cost |
|
|
5 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
Net (loss) gain |
|
|
(53 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
4 |
|
|
|
(8 |
) |
|
|
(8 |
) |
|
Amortization of net actuarial loss |
|
|
6 |
|
|
|
— |
|
|
|
7 |
|
|
|
1 |
|
|
|
28 |
|
|
|
— |
|
|
Net amount recognized in other comprehensive
(loss) income (pre-tax) |
|
|
(42 |
) |
|
|
(2 |
) |
|
|
2 |
|
|
|
5 |
|
|
|
22 |
|
|
|
(8 |
) |
|
Components of Net Periodic Benefit Cost for Pension Plans and Other Post-Retirement Benefit Plans |
At December 31, 2016, the accrued benefit obligation and the fair value of defined benefit plan assets with an accrued benefit obligation in excess of fair value of plan assets were $765 million and $624 million, respectively (2015 – $405 million and $276 million, respectively).
|
|
|
Year ended |
|
|
Year ended |
|
|
Year ended |
|
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
Components of net periodic benefit cost for pension plans |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Service cost for the year |
|
|
31 |
|
|
|
34 |
|
|
|
35 |
|
|
Interest expense |
|
|
51 |
|
|
|
60 |
|
|
|
77 |
|
|
Expected return on plan assets |
|
|
(80 |
) |
|
|
(86 |
) |
|
|
(101 |
) |
|
Amortization of net actuarial loss |
|
|
5 |
|
|
|
7 |
|
|
|
9 |
|
|
Settlement loss(a) |
|
|
1 |
|
|
|
— |
|
|
|
19 |
|
|
Amortization of prior year service cost |
|
|
5 |
|
|
|
3 |
|
|
|
3 |
|
|
Net periodic benefit cost |
|
|
13 |
|
|
|
18 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
Year ended December 31, |
|
|
Year ended December 31, |
|
|
Components of net periodic benefit cost for other post-retirement benefit plans |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Service cost for the year |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
Interest expense |
|
|
4 |
|
|
|
4 |
|
|
|
5 |
|
|
Net periodic benefit cost |
|
|
6 |
|
|
|
6 |
|
|
|
7 |
|
|
(a) |
The settlement loss of $19 million in the pension plans for the year ended December 31, 2014 is related to the previously closed Ottawa, Ontario paper mill (see Note 16 “Closure and restructuring costs and liability”). | |
Key Assumptions to Measure Accrued Benefit Obligation and Net Periodic Benefit Cost |
The Company used the following key assumptions to measure the accrued benefit obligation and the net periodic benefit cost. These assumptions are long-term, which is consistent with the nature of employee future benefits.
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
Pension plans |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
Accrued benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
3.8 |
% |
|
|
4.0 |
% |
|
|
3.9 |
% |
|
Rate of compensation increase |
|
|
2.7 |
% |
|
|
2.7 |
% |
|
|
2.7 |
% |
|
Net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
4.1 |
% |
|
|
3.9 |
% |
|
|
4.8 |
% |
|
Rate of compensation increase |
|
|
2.8 |
% |
|
|
2.8 |
% |
|
|
2.7 |
% |
|
Expected long-term rate of return on plan assets |
|
|
5.3 |
% |
|
|
5.6 |
% |
|
|
6.3 |
% |
|
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
Other post-retirement benefit plans |
|
2016 |
|
|
2015 |
|
|
2014 |
|
|
Accrued benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
3.9 |
% |
|
|
4.1 |
% |
|
|
3.9 |
% |
|
Rate of compensation increase |
|
|
2.8 |
% |
|
|
2.8 |
% |
|
|
2.8 |
% |
|
Net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate |
|
|
4.1 |
% |
|
|
3.9 |
% |
|
|
4.8 |
% |
|
Rate of compensation increase |
|
|
2.8 |
% |
|
|
2.8 |
% |
|
|
2.7 |
% |
|
Effect of One Percent Change in Assumed Health Care Cost |
For measurement purposes, a 5.0% weighted average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016. The rate was assumed to decrease gradually to 4.1% by 2034 and remain at that level thereafter. An increase or decrease of 1% of this rate would have the following impact:
|
|
|
Increase of 1% |
|
|
Decrease of 1% |
|
|
|
|
$ |
|
|
$ |
|
|
Impact on net periodic benefit cost for other
post-retirement benefit plans |
|
|
1 |
|
|
|
— |
|
|
Impact on accrued benefit obligation |
|
|
8 |
|
|
|
(7 |
) |
|
Schedule Of Fair Value Of Plan Asset By Asset Category Table Text Block |
The following table presents the fair value of the plan assets at December 31, 2016, by asset category:
|
|
|
Fair Value Measurements at |
|
|
|
|
December 31, 2016 |
|
|
|
|
|
|
|
|
Quoted Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in Active |
|
|
Significant |
|
|
Significant |
|
|
|
|
|
|
|
|
Markets for |
|
|
Observable |
|
|
Unobservable |
|
|
|
|
|
|
|
|
Identical Assets |
|
|
Inputs |
|
|
Inputs |
|
|
Asset Category |
|
Total |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Cash and short-term investments |
|
|
80 |
|
|
|
80 |
|
|
|
— |
|
|
|
— |
|
|
Asset backed notes (1) |
|
|
118 |
|
|
|
— |
|
|
|
115 |
|
|
|
3 |
|
|
Canadian government bonds |
|
|
81 |
|
|
|
81 |
|
|
|
— |
|
|
|
— |
|
|
Canadian corporate debt securities |
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
Bond index funds (2 & 3) |
|
|
585 |
|
|
|
— |
|
|
|
585 |
|
|
|
— |
|
|
Canadian equities (4) |
|
|
100 |
|
|
|
100 |
|
|
|
— |
|
|
|
— |
|
|
U.S. equities (5) |
|
|
77 |
|
|
|
77 |
|
|
|
— |
|
|
|
— |
|
|
International equities (6) |
|
|
226 |
|
|
|
226 |
|
|
|
— |
|
|
|
— |
|
|
U.S. stock index funds (3 & 7) |
|
|
193 |
|
|
|
— |
|
|
|
193 |
|
|
|
— |
|
|
Insurance contracts (8) |
|
|
84 |
|
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
Derivative contracts (9) |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
Total |
|
|
1,546 |
|
|
|
566 |
|
|
|
893 |
|
|
|
87 |
|
|
(1) |
This category is described in the section “Asset Backed Notes”. |
|
(2) |
This category represents two Canadian bond index funds not actively managed that track the FTSE TMX Long-term bond index, and the FTSE TMX Universe bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. |
|
(3) |
The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. |
|
(4) |
This category represents an active segregated large capitalization Canadian equity portfolio with the ability to purchase small and medium capitalized companies. |
|
(5) |
This category represents U.S. equities held within an active segregated global equity portfolio. |
|
(6) |
This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. |
|
(7) |
This category represents two equity index funds, not actively managed, that track the Russell 3000 index. |
|
(8) |
This category includes: 1) two group annuity contracts totaling $76 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $8 million of insurance contracts with a minimum guarantee rate. |
|
(9) |
The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. |
The following table presents the fair value of the plan assets at December 31, 2015, by asset category:
|
|
|
Fair Value Measurements at
December 31, 2015 |
|
|
|
|
|
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets |
|
|
Significant
Observable Inputs |
|
|
Significant
Unobservable Inputs |
|
|
Asset Category |
|
Total |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Cash and short-term investments |
|
|
67 |
|
|
|
67 |
|
|
|
— |
|
|
|
— |
|
|
Asset backed notes (1) |
|
|
146 |
|
|
|
— |
|
|
|
136 |
|
|
|
10 |
|
|
Canadian government bonds |
|
|
141 |
|
|
|
141 |
|
|
|
— |
|
|
|
— |
|
|
Canadian corporate debt securities |
|
|
3 |
|
|
|
2 |
|
|
|
1 |
|
|
|
— |
|
|
Bond index funds (2 & 3) |
|
|
466 |
|
|
|
— |
|
|
|
466 |
|
|
|
— |
|
|
Canadian equities (4) |
|
|
96 |
|
|
|
96 |
|
|
|
— |
|
|
|
— |
|
|
U.S. equities (5) |
|
|
37 |
|
|
|
37 |
|
|
|
— |
|
|
|
— |
|
|
International equities (6) |
|
|
229 |
|
|
|
229 |
|
|
|
— |
|
|
|
— |
|
|
U.S. stock index funds (3 & 7) |
|
|
218 |
|
|
|
— |
|
|
|
218 |
|
|
|
— |
|
|
Insurance contracts (8) |
|
|
86 |
|
|
|
— |
|
|
|
— |
|
|
|
86 |
|
|
Derivative contracts (9) |
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
Total |
|
|
1,493 |
|
|
|
572 |
|
|
|
825 |
|
|
|
96 |
|
|
(1) |
This category is described in the section “Asset Backed Notes”. |
|
(2) |
This category represents two Canadian bond index fund not actively managed that track the FTSE TMX Long-term bond index, and the FTSE TMX Universe bond index and a U.S. actively managed bond fund that is benchmarked to the Barclays Capital Long-term Government/Credit index. |
|
(3) |
The fair value of these plan assets are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured based on quoted prices in active markets and can be redeemed at the measurement date or in the near term. |
|
(4) |
This category represents active segregated large capitalization Canadian equity portfolios with the ability to purchase small and medium capitalized companies and $4 million of Canadian equities held within an active segregated global equity portfolio. |
|
(5) |
This category represents U.S. equities held within an active segregated global equity portfolio. |
|
(6) |
This category represents an active segregated non-North American multi-capitalization equity portfolio and the non-North American portion of an active segregated global equity portfolio. |
|
(7) |
This category represents equity index funds, not actively managed, that track the Standard & Poor’s 500 (“S&P 500”) index and an equity index fund not actively managed that tracks the Russell 3000 index. |
|
(8) |
This category includes: 1) two group annuity contracts totaling $78 million purchased through an insurance company that are held in the pension plans’ name as an asset within the pension plans. These insurance contracts cover pension entitlements associated with specific groups of retired members of the pension plans and 2) $8 million of insurance contracts with a minimum guarantee rate. |
|
(9) |
The fair value of the derivative contracts are classified as Level 2 (inputs that are observable, directly or indirectly) as they are measured using long-term bond indices. | |
Changes in Level 3 Fair Value Measurements of Plan Assets |
The following table presents changes during the period for Level 3 fair value measurements of plan assets:
|
|
|
Fair Value Measurements Using Significant |
|
|
|
|
Unobservable Inputs (Level 3) |
|
|
|
|
ABN(1) |
|
|
Insurance
contracts |
|
|
TOTAL |
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Balance at December 31, 2014 |
|
|
15 |
|
|
|
8 |
|
|
|
23 |
|
|
(Settlements)/Purchases |
|
|
(4 |
) |
|
|
79 |
|
|
|
75 |
|
|
Return on plan assets |
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
Effect of foreign currency exchange rate change |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
|
Balance at December 31, 2015 |
|
|
10 |
|
|
|
86 |
|
|
|
96 |
|
|
(Settlements)/Purchases |
|
|
(7 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
Return on plan assets |
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
Effect of foreign currency exchange rate change |
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
|
Balance at December 31, 2016 |
|
|
3 |
|
|
|
84 |
|
|
|
87 |
|
|
(1) |
Includes $3 million of Montreal Accord in 2016 (2015 – $4 million) | |
Estimated Future Benefit Payments from Plans |
Estimated future benefit payments from the plans for the next 10 years at December 31, 2016 are as follows:
|
. |
|
Pension plans |
|
|
Other post-retirement
benefit plans |
|
|
|
|
$ |
|
|
$ |
|
|
2017 |
|
|
102 |
|
|
|
4 |
|
|
2018 |
|
|
100 |
|
|
|
4 |
|
|
2019 |
|
|
102 |
|
|
|
4 |
|
|
2020 |
|
|
102 |
|
|
|
5 |
|
|
2021 |
|
|
102 |
|
|
|
5 |
|
|
2022-2026 |
|
|
515 |
|
|
|
24 |
|
|