v3.26.1
Segment Disclosures
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Disclosures

NOTE 15.

_________________

SEGMENT DISCLOSURES

The Company reports segment information consistent with the way its Chief Operating Decision Maker (“CODM”) evaluates the operating results and performance of the Company. The Company analyzes the results of its business through the following three reportable segments, which also represent its three operating segments based on the Company's organizational structure:

•
Paper and Packaging – consists of the design, manufacturing, marketing and distribution of a wide variety of fiber-based products including communication, specialty and packaging papers.
•
Pulp and Tissue – consists of the design, manufacturing, marketing and distribution of a wide variety of fiber-based products including market pulp, tissue and paper.
•
Wood products – consists of the production of lumber and other wood products for the residential construction and home renovation markets, as well as for specialized structural and industrial applications.

Effective January 1, 2026, the Ashdown, Plymouth and Skookumchuck pulp mills are now being reported under the Company's Pulp and Tissue operating segment. This change has been reflected in the Company's reporting segments for all periods presented. The change in segment reporting did not have an impact on the Company’s consolidated financial position, results of operations, cash flows, or stockholders’ equity.

The Company’s CODM, the sole beneficial owner of Domtar, reviews segment operating income, as well as revenue, in the budgeting and forecasting process and considers actual versus budget variances in assessing the performance of the segment and the allocation of resources. The CODM also uses segment operating income as an input to the overall compensation measures for segment management under our incentive compensation plans. The Company believes it is appropriate to disclose this measure to help analyze segment performance and trends. Expense information is provided to and reviewed by the CODM on a consolidated basis to evaluate cost efficiency and company level performance. Segment operating income excludes certain corporate expenses that are not related to segment activities and are presented on the Corporate and other line. The Company excludes these items from segment operating income in order to provide better transparency of its segment operating results.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

SEGMENT DATA

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

$

 

 

$

 

 

$

 

 

$

 

Sales by segment

 

 

 

 

 

 

 

 

 

 

 

 

Paper and packaging

 

 

914

 

 

 

899

 

 

 

1,821

 

 

 

1,902

 

Pulp and tissue

 

 

572

 

 

 

608

 

 

 

1,142

 

 

 

1,253

 

Wood products

 

 

293

 

 

 

276

 

 

 

519

 

 

 

513

 

Total for reportable segments

 

 

1,779

 

 

 

1,783

 

 

 

3,482

 

 

 

3,668

 

Intersegment sales

 

 

(24

)

 

 

(20

)

 

 

(49

)

 

 

(45

)

Consolidated sales

 

 

1,755

 

 

 

1,763

 

 

 

3,433

 

 

 

3,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by product group

 

 

 

 

 

 

 

 

 

 

 

 

Communication papers

 

 

543

 

 

 

561

 

 

 

1,081

 

 

 

1,182

 

Specialty and packaging papers

 

 

347

 

 

 

293

 

 

 

679

 

 

 

619

 

Market pulp

 

 

363

 

 

 

437

 

 

 

745

 

 

 

913

 

Linerboard

 

 

78

 

 

 

56

 

 

 

151

 

 

 

114

 

Newsprint

 

 

74

 

 

 

84

 

 

 

139

 

 

 

165

 

Tissue

 

 

58

 

 

 

56

 

 

 

120

 

 

 

117

 

Wood

 

 

292

 

 

 

276

 

 

 

518

 

 

 

513

 

Consolidated sales

 

 

1,755

 

 

 

1,763

 

 

 

3,433

 

 

 

3,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other costs by segment

 

 

 

 

 

 

 

 

 

 

 

 

Paper and packaging

 

 

822

 

 

 

879

 

 

 

1,678

 

 

 

1,787

 

Pulp and tissue

 

 

587

 

 

 

663

 

 

 

1,236

 

 

 

1,281

 

Wood products

 

 

286

 

 

 

266

 

 

 

519

 

 

 

505

 

Total for reportable segments

 

 

1,695

 

 

 

1,808

 

 

 

3,433

 

 

 

3,573

 

Corporate and other

 

 

38

 

 

 

25

 

 

 

96

 

 

 

54

 

Consolidated other costs

 

 

1,733

 

 

 

1,833

 

 

 

3,529

 

 

 

3,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Paper and packaging

 

 

85

 

 

 

12

 

 

 

131

 

 

 

99

 

Pulp and tissue

 

 

(31

)

 

 

(67

)

 

 

(130

)

 

 

(57

)

Wood products

 

 

6

 

 

 

10

 

 

 

(1

)

 

 

8

 

Corporate and other

 

 

(38

)

 

 

(25

)

 

 

(96

)

 

 

(54

)

Consolidated operating income (loss)

 

 

22

 

 

 

(70

)

 

 

(96

)

 

 

(4

)

Interest expense, net

 

 

57

 

 

 

58

 

 

 

114

 

 

 

119

 

Non-service components of net periodic benefit cost

 

 

—

 

 

 

(3

)

 

 

(7

)

 

 

(7

)

Loss before income taxes

 

 

(35

)

 

 

(125

)

 

 

(203

)

 

 

(116

)

Income tax expense (benefit)

 

 

21

 

 

 

(49

)

 

 

21

 

 

 

(46

)

Net loss

 

 

(56

)

 

 

(76

)

 

 

(224

)

 

 

(70

)

 

Other costs by segment consist primarily of: input costs (including fiber, energy and chemicals), manufacturing costs (including hourly and salaried wages and fringe and plant overhead, such as utilities and taxes), freight & duty costs, maintenance related costs, spending-related costs (including depreciation and amortization of manufacturing assets, asset retirements, intangible assets and operating leases), and administrative, information technology, and selling costs (including primarily wages and fringe for salaried personnel and purchased services).