0001564590-15-005825.txt : 20150730 0001564590-15-005825.hdr.sgml : 20150730 20150730073033 ACCESSION NUMBER: 0001564590-15-005825 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150730 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150730 DATE AS OF CHANGE: 20150730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Domtar CORP CENTRAL INDEX KEY: 0001381531 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 205901152 FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33164 FILM NUMBER: 151014351 BUSINESS ADDRESS: STREET 1: 234 KINGSLEY PARK DRIVE CITY: FORT MILL STATE: SC ZIP: 29715 BUSINESS PHONE: (803) 802-7500 MAIL ADDRESS: STREET 1: 234 KINGSLEY PARK DRIVE CITY: FORT MILL STATE: SC ZIP: 29715 8-K 1 ufs-8k_20150730.htm 8-K ufs-8k_20150730.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

July 30, 2015

(Date of Report/Date of earliest event reported)

 

DOMTAR CORPORATION

(Exact name of registrant as specified in its charter)

 

 

DELAWARE

001-33164

20-5901152

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

234 Kingsley Park Drive, Fort Mill, SC 29715

(Address and zip code of principal executive offices)

(803) 802-7500

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 


 

ITEM 2.02Results of Operations and Financial Condition

On July 30, 2015, Domtar Corporation issued a news release reporting earnings for the second quarter of 2015 and announced that it will be holding a webcast and a conference call to present its second quarter 2015 financial results on Thursday, July 30, at 10:00 a.m. (ET). A copy of the news release is being furnished as Exhibit 99.1 to this Form 8-K.

ITEM 9.01Financial Statements and Exhibits

(d) Exhibits

Exhibits 99.1: News release of Domtar Corporation, dated July 30, 2015


2


 

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 hereunto duly authorized.

 

DOMTAR CORPORATION

(Registrant)

 

 

By:

/s/  Razvan L. Theodoru

 

Name:

Razvan L. Theodoru

 

Title:

Vice-President, Corporate Law and Secretary

 

 

 

Date:

July 30, 2015

 

 

 


3


 

Exhibit Index

 

Exhibit No.

Exhibit

99.1

News Release of Domtar Corporation, dated July 30, 2015

 

 

4

EX-99.1 2 ufs-ex991_6.htm EX-99.1 ufs-ex991_6.htm

 

Exhibit 99.1

 

 

 

234 Kingsley Park Drive

Fort Mill, South Carolina 29715

 

News Release

 

TICKER SYMBOL

Investor RELATIONS

MEDIA RELATIONS

(NYSE: UFS) (TSX: UFS)

Nicholas Estrela

Director

Investor Relations

Tel.: 514-848-5555 x 85979

David Struhs

Vice-President

Corporate Communications and Sustainability

Tel.: 803-802-8031

DOMTAR CORPORATION REPORTS PRELIMINARY SECOND QUARTER 2015 FINANCIAL RESULTS

Strong operational results in Pulp and Paper and Personal Care

(All financial information is in U.S. dollars, and all earnings per share results are diluted, unless otherwise noted).

 

Second quarter 2015 net earnings of $0.60 per share; earnings before items1 of $0.61 per share

Cash flow from operating activities of $122 million

Sales and margin momentum building in Personal Care

Fort Mill, July 30, 2015 – Domtar Corporation (NYSE: UFS) (TSX: UFS) today reported net earnings of $38 million ($0.60 per share) for the second quarter of 2015 compared to net earnings of $36 million ($0.56 per share) for the first quarter of 2015 and net earnings of $40 million ($0.61 per share) for the second quarter of 2014. Sales for the second quarter of 2015 were $1.3 billion.

Excluding items listed below, the Company had earnings before items1 of $39 million ($0.61 per share) for the second quarter of 2015 compared to earnings before items1 of $48 million ($0.75 per share) for the first quarter of 2015 and earnings before items1 of $40 million ($0.61 per share) for the second quarter of 2014.

 

Second quarter 2015 items:

Ø

Closure and restructuring costs of $1 million ($1 million after tax);

Ø

Gain on disposal of property, plant and equipment of $14 million ($11 million after tax); and

Ø

Impairment of property, plant & equipment of $18 million ($11 million after tax).

 

First quarter 2015 items:

Ø

Closure and restructuring costs of $1 million ($1 million after tax);

Ø

Gain on disposal of property, plant and equipment of $1 million ($1 million after tax); and

Ø

Impairment of property, plant & equipment of $19 million ($12 million after tax).

 

 

1 

  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.

1 / 4


Second quarter 2014 items:

Ø

None

“Our pulp and paper business performed largely in-line with expectations. Our operations ran well despite the seasonally high level of scheduled maintenance at our mills. The flooding in the U.S. South negatively impacted some of our wood costs and supply, but production curtailments were limited,” said John D. Williams, President and CEO. “Our paper shipments year-to-date are outperforming the broader North American uncoated freesheet market by 2.3%. As the trade case progresses, we will continue to monitor further opportunities resulting from lower cut-size imports while continuing to balance our capacity versus our customer demand.”

Mr. Williams added, “Personal Care turned in a solid performance. Same currency sales increased 3% year over year while our cost savings program continued to deliver according to plan, driving a 300 basis-point margin improvement. Momentum in the business is growing, and we are operating and executing with more consistency. We remain focused on sharpening our strategies and capabilities that will deliver sustainable growth and value creation in this segment.”

QUARTERLY REVIEW

Operating income before items1 was $67 million in the second quarter of 2015 compared to an operating income before items1 of $90 million in the first quarter of 2015. Depreciation and amortization totaled $91 million in the second quarter of 2015.

 

 

 

 

 

 

 

 

 

 

 

(In millions of dollars)

 

2Q 2015

 

 

1Q 2015

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

1,310

 

 

$

1,348

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

Pulp and Paper segment

 

 

55

 

 

 

75

 

 

Personal Care segment

 

 

17

 

 

 

10

 

 

Corporate

 

 

(10

)

 

 

(14

)

 

Total

 

 

62

 

 

 

71

 

 

Operating income before items1

 

 

67

 

 

 

90

 

 

Depreciation and amortization

 

 

91

 

 

 

90

 

 

 

The decrease in operating income before items1 in the second quarter of 2015 was the result of higher costs for planned maintenance, lower paper and pulp prices, lower paper and pulp shipments, higher freight costs and overall unfavorable exchange rates. These factors were partially offset by lower raw material and other costs and lower selling, general and administrative expenses. In addition, the first quarter was impacted by a bad debt expense.

When compared to the first quarter of 2015, manufactured paper shipments were down 2.6% and pulp shipments decreased 1.4%. The shipments-to-production ratio for paper was 97% in the second quarter of 2015, compared to 100% in the first quarter of 2015. Paper inventories increased by

 

1 

  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.

2 / 4


23,000 tons while pulp inventories decreased by 15,000 metric tons in June when compared to March levels.

LIQUIDITY AND CAPITAL

Cash flow provided from operating activities amounted to $122 million and capital expenditures were $66 million, resulting in free cash flow1 of $56 million for the second quarter of 2015. Domtar’s net debt-to-total capitalization ratio1 stood at 29% at June 30, 2015 compared to 30% at March 31, 2015.

During the quarter, Domtar repurchased $17 million of common stock under its stock repurchase program.

OUTLOOK

Looking into the second half of 2015, Domtar paper shipments are expected to trend with market demand and should benefit from lower import volumes in North America. We expect some short-term pricing volatility in pulp, as normal seasonal factors in certain markets take hold. Inflation on input costs is expected to be relatively flat; fiber costs will remain high in certain markets, but are not expected to increase further, while energy costs should remain favorable. Personal Care is expected to benefit from further cost savings and market growth, but the segment will be impacted by some seasonality in the third quarter.

EARNINGS CONFERENCE CALL

The Company will hold a conference call today at 10:00 a.m. (ET) to discuss its second quarter 2015 financial results. Financial analysts are invited to participate in the call by dialing 1 (800) 499-4035 (toll free - North America) or 1 (416) 204-9269 (International) at least 10 minutes before start time, while media and other interested individuals are invited to listen to the live webcast on the Domtar Corporation website at www.domtar.com.

The Company will release its third quarter 2015 earnings results on October 29, 2015 before markets open, followed by a conference call at 10:00 a.m. (ET) to discuss results. The date is tentative and will be confirmed approximately three weeks prior to the official earnings release date.

 

 

1 

  Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures in the appendix.

3 / 4


 

About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products, including communication papers, specialty and packaging papers, and absorbent hygiene products. The foundation of our business is a network of world-class wood fiber-converting assets that produce papergrade, fluff and specialty pulp. The majority of our pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer and manufacturer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice®, EarthChoice® and Xerox® Paper and Specialty Media. Domtar is also a marketer and producer of a broad line of absorbent hygiene products marketed primarily under the Attends®, IncoPack® and Indasec® brand names. In 2014, Domtar had sales of $5.6 billion from some 50 countries. The Company employs approximately 9,800 people. To learn more, visit www.domtar.com.

 

Forward-Looking Statements

Statements in this release about our plans, expectations and future performance, including the statements by Mr. Williams and those contained under “Outlook,” are “forward-looking statements.” Actual results may differ materially from those suggested by these statements for a number of reasons, including changes in customer demand and pricing, changes in manufacturing costs, future acquisitions and divestitures, including facility closings, and the other reasons identified under “Risk Factors” in our Form 10-K for 2014 as filed with the SEC and as updated by subsequently filed Form 10-Q’s. Except to the extent required by law, we expressly disclaim any obligation to update or revise these forward-looking statements to reflect new events or circumstances or otherwise.

- (30) -

 

4 / 4


Domtar Corporation

Highlights

(In millions of dollars, unless otherwise noted)

{

 

 

Three months

ended

 

 

Three months

ended

 

 

Six months

ended

 

 

Six months

ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(Unaudited)

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pulp and Paper

 

 

1,110

 

 

 

1,160

 

 

 

2,256

 

 

 

2,328

 

Personal Care

 

 

216

 

 

 

234

 

 

 

434

 

 

 

467

 

Total for reportable segments

 

 

1,326

 

 

 

1,394

 

 

 

2,690

 

 

 

2,795

 

Intersegment sales

 

 

(16

)

 

 

(9

)

 

 

(32

)

 

 

(16

)

Consolidated sales

 

 

1,310

 

 

 

1,385

 

 

 

2,658

 

 

 

2,779

 

Depreciation and amortization and impairment and

   write-down of property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pulp and Paper

 

 

75

 

 

 

79

 

 

 

149

 

 

 

162

 

Personal Care

 

 

16

 

 

 

17

 

 

 

32

 

 

 

33

 

Total for reportable segments

 

 

91

 

 

 

96

 

 

 

181

 

 

 

195

 

Impairment and write-down of property, plant

   and equipment - Pulp and Paper

 

 

18

 

 

 

 

 

 

37

 

 

 

 

Consolidated depreciation and amortization and

   impairment and write-down of property,

   plant and equipment

 

 

109

 

 

 

96

 

 

 

218

 

 

 

195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pulp and Paper

 

 

55

 

 

 

74

 

 

 

130

 

 

 

163

 

Personal Care

 

 

17

 

 

 

12

 

 

 

27

 

 

 

26

 

Corporate

 

 

(10

)

 

 

(7

)

 

 

(24

)

 

 

(31

)

Consolidated operating income

 

 

62

 

 

 

79

 

 

 

133

 

 

 

158

 

Interest expense, net

 

 

25

 

 

 

26

 

 

 

51

 

 

 

51

 

Earnings before income taxes

 

 

37

 

 

 

53

 

 

 

82

 

 

 

107

 

Income tax (benefit) expense

 

 

(1

)

 

 

13

 

 

 

8

 

 

 

28

 

Net earnings

 

 

38

 

 

 

40

 

 

 

74

 

 

 

79

 

Per common share (in dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.60

 

 

 

0.62

 

 

 

1.16

 

 

 

1.22

 

Diluted

 

 

0.60

 

 

 

0.61

 

 

 

1.16

 

 

 

1.22

 

Weighted average number of common

    shares outstanding (millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

63.6

 

 

 

65.0

 

 

 

63.7

 

 

 

64.9

 

Diluted

 

 

63.7

 

 

 

65.1

 

 

 

63.8

 

 

 

65.0

 

Cash flows provided from operating activities

 

 

122

 

 

 

104

 

 

 

249

 

 

 

245

 

Additions to property, plant and equipment

 

 

66

 

 

 

56

 

 

 

136

 

 

 

101

 

1 As a result of changes in the Company’s organization structure, we have changed the way we allocate certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, will be presented on the Corporate line. As a result, we have revised our 2014 segment disclosures to conform to our 2015 presentation. (Previously reported numbers for Operating income (loss) for the three and six months ended June 30, 2014 are as follows; Pulp and Paper: $69M and $138M, respectively, Personal Care: $14M and $29M, respectively, Corporate: $(4)M and $(9)M, respectively).

 

 


Domtar Corporation

Consolidated Statements of Earnings

(In millions of dollars, unless otherwise noted)

 

 

 

 

Three months

ended

 

 

Three months

ended

 

 

Six months

ended

 

 

Six months

ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

(Unaudited)

 

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

 

1,310

 

 

 

1,385

 

 

 

2,658

 

 

 

2,779

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales, excluding depreciation and

   amortization

 

 

1,052

 

 

 

1,108

 

 

 

2,114

 

 

 

2,211

 

Depreciation and amortization

 

 

91

 

 

 

96

 

 

 

181

 

 

 

195

 

Selling, general and administrative

 

 

99

 

 

 

100

 

 

 

199

 

 

 

214

 

Impairment and write-down of property, plant and

   equipment

 

 

18

 

 

 

 

 

 

37

 

 

 

 

Closure and restructuring costs

 

 

1

 

 

 

 

 

 

2

 

 

 

1

 

Other operating (income) loss, net

 

 

(13

)

 

 

2

 

 

 

(8

)

 

 

 

 

 

 

1,248

 

 

 

1,306

 

 

 

2,525

 

 

 

2,621

 

Operating income

 

 

62

 

 

 

79

 

 

 

133

 

 

 

158

 

Interest expense, net

 

 

25

 

 

 

26

 

 

 

51

 

 

 

51

 

Earnings before income taxes

 

 

37

 

 

 

53

 

 

 

82

 

 

 

107

 

Income tax (benefit) expense

 

 

(1

)

 

 

13

 

 

 

8

 

 

 

28

 

Net earnings

 

 

38

 

 

 

40

 

 

 

74

 

 

 

79

 

Per common share (in dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.60

 

 

 

0.62

 

 

 

1.16

 

 

 

1.22

 

Diluted

 

 

0.60

 

 

 

0.61

 

 

 

1.16

 

 

 

1.22

 

Weighted average number of common

    shares outstanding (millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

63.6

 

 

 

65.0

 

 

 

63.7

 

 

 

64.9

 

Diluted

 

 

63.7

 

 

 

65.1

 

 

 

63.8

 

 

 

65.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Domtar Corporation

Consolidated Balance Sheets at

(In millions of dollars)

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

 

(Unaudited)

 

 

 

$

 

 

$

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

207

 

 

 

174

 

Receivables, less allowances of $10 and $6

 

 

640

 

 

 

628

 

Inventories

 

 

721

 

 

 

714

 

Prepaid expenses

 

 

36

 

 

 

25

 

Income and other taxes receivable

 

 

13

 

 

 

54

 

Deferred income taxes

 

 

78

 

 

 

75

 

Total current assets

 

 

1,695

 

 

 

1,670

 

Property, plant and equipment, at cost

 

 

8,817

 

 

 

8,909

 

Accumulated depreciation

 

 

(5,858

)

 

 

(5,778

)

Net property, plant and equipment

 

 

2,959

 

 

 

3,131

 

Goodwill

 

 

546

 

 

 

567

 

Intangible assets, net of amortization

 

 

621

 

 

 

661

 

Other assets

 

 

142

 

 

 

156

 

Total assets

 

 

5,963

 

 

 

6,185

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Bank indebtedness

 

 

1

 

 

 

10

 

Trade and other payables

 

 

687

 

 

 

721

 

Income and other taxes payable

 

 

36

 

 

 

26

 

Long-term debt due within one year

 

 

169

 

 

 

169

 

Total current liabilities

 

 

893

 

 

 

926

 

Long-term debt

 

 

1,178

 

 

 

1,181

 

Deferred income taxes and other

 

 

765

 

 

 

810

 

Other liabilities and deferred credits

 

 

366

 

 

 

378

 

Shareholders' equity

 

 

 

 

 

 

 

 

Common stock

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

1,985

 

 

 

2,012

 

Retained earnings

 

 

1,168

 

 

 

1,145

 

Accumulated other comprehensive loss

 

 

(393

)

 

 

(268

)

Total shareholders' equity

 

 

2,761

 

 

 

2,890

 

Total liabilities and shareholders' equity

 

 

5,963

 

 

 

6,185

 

 

 

 

 


Domtar Corporation

Consolidated Statements of Cash Flows

(In millions of dollars)

 

 

 

For the six months ended

 

 

 

June 30, 2015

 

 

June 30, 2014

 

 

 

(Unaudited)

 

 

 

$

 

 

$

 

Operating activities

 

 

 

 

 

 

 

 

Net earnings

 

 

74

 

 

 

79

 

Adjustments to reconcile net earnings to cash flows from operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

181

 

 

 

195

 

Deferred income taxes and tax uncertainties

 

 

(32

)

 

 

(6

)

Impairment and write-down of property, plant and equipment

 

 

37

 

 

 

 

Net gains on disposal of property, plant and equipment

 

 

(15

)

 

 

 

Stock-based compensation expense

 

 

3

 

 

 

3

 

Other

 

 

 

 

 

6

 

Changes in assets and liabilities, excluding the effects of acquisition

   of business

 

 

 

 

 

 

 

 

Receivables

 

 

 

 

 

24

 

Inventories

 

 

(23

)

 

 

(18

)

Prepaid expenses

 

 

(10

)

 

 

(9

)

Trade and other payables

 

 

(18

)

 

 

(43

)

Income and other taxes

 

 

46

 

 

 

23

 

Difference between employer pension and other post-retirement

   contributions and pension and other post-retirement expense

 

 

3

 

 

 

(6

)

Other assets and other liabilities

 

 

3

 

 

 

(3

)

Cash flows provided from operating activities

 

 

249

 

 

 

245

 

Investing activities

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(136

)

 

 

(101

)

Proceeds from disposals of property, plant and equipment

 

 

7

 

 

 

1

 

Acquisition of business, net of cash acquired

 

 

 

 

 

(546

)

Other

 

 

9

 

 

 

-

 

Cash flows used for investing activities

 

 

(120

)

 

 

(646

)

Financing activities

 

 

 

 

 

 

 

 

Dividend payments

 

 

(50

)

 

 

(36

)

Stock repurchase

 

 

(30

)

 

 

 

Net change in bank indebtedness

 

 

(9

)

 

 

 

Change in revolving bank credit facility

 

 

 

 

 

(140

)

Proceeds from receivables securitization facilities

 

 

 

 

 

90

 

Payments on receivables securitization facilities

 

 

 

 

 

(84

)

Repayment of long-term debt

 

 

(2

)

 

 

(3

)

Other

 

 

1

 

 

 

4

 

Cash flows used for financing activities

 

 

(90

)

 

 

(169

)

Net increase (decrease) in cash and cash equivalents

 

 

39

 

 

 

(570

)

Impact of foreign exchange on cash

 

 

(6

)

 

 

 

Cash and cash equivalents at beginning of period

 

 

174

 

 

 

655

 

Cash and cash equivalents at end of period

 

 

207

 

 

 

85

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Net cash payments for:

 

 

 

 

 

 

 

 

Interest

 

 

48

 

 

 

44

 

Income taxes paid, net

 

 

2

 

 

 

19

 

 

 

 


Domtar Corporation

Quarterly Reconciliation of Non-GAAP Financial Measures

(In millions of dollars, unless otherwise noted)

 

The following table sets forth certain non-U.S. generally accepted accounting principles ("GAAP") financial metrics identified in bold as "Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization." Management believes that the financial metrics presented are frequently used by investors and are useful to evaluate our ability to service debt and our overall credit profile. Management believes these metrics are also useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

The Company calculates "Earnings before items" and "EBITDA before items" by excluding the after-tax (pre-tax) effect of items considered by management as not reflecting our current operations. Management uses these measures, as well as EBITDA and Free cash flow, to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Net earnings provides for a more complete analysis of the results of operations. Net earnings and Cash flow provided from operating activities are the most directly comparable GAAP measures.

 

 

 

 

 

 

2015

 

 

2014

 

 

 

 

 

 

 

Q1

 

 

Q2

 

 

YTD

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Reconciliation of "Earnings before items" to Net

   earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

($)

 

 

36

 

 

 

38

 

 

 

74

 

 

 

39

 

 

 

40

 

 

 

281

 

 

 

71

 

 

 

431

 

 

(+)

Impairment and write-down of property, plant and

   equipment

 

($)

 

 

12

 

 

 

11

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

(+)

Closure and restructuring costs

 

($)

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1

 

 

 

 

 

 

2

 

 

 

18

 

 

 

21

 

 

(-)

Net gains on disposal of property, plant and

   equipment

 

($)

 

 

(1

)

 

 

(11

)

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(+)

Impact of purchase accounting

 

($)

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

(-)

Alternative fuel tax credits

 

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

 

(-)

Internal Revenue Service audit settlement items

 

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(204

)

 

 

 

 

 

(204

)

 

(=)

Earnings before items

 

($)

 

 

48

 

 

 

39

 

 

 

87

 

 

 

42

 

 

 

40

 

 

 

61

 

 

 

91

 

 

 

234

 

 

(/)

Weighted avg. number of common and

   exchangeable shares outstanding (diluted)

 

(millions)

 

 

63.9

 

 

 

63.7

 

 

 

63.8

 

 

 

65.0

 

 

 

65.1

 

 

 

64.9

 

 

 

64.4

 

 

 

64.9

 

 

(=)

Earnings before items per diluted share

 

($)

 

 

0.75

 

 

 

0.61

 

 

 

1.36

 

 

 

0.65

 

 

 

0.61

 

 

 

0.94

 

 

 

1.41

 

 

 

3.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of "EBITDA" and "EBITDA before

   items" to Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

($)

 

 

36

 

 

 

38

 

 

 

74

 

 

 

39

 

 

 

40

 

 

 

281

 

 

 

71

 

 

 

431

 

 

(+)

Income tax expense (benefit)

 

($)

 

 

9

 

 

 

(1

)

 

 

8

 

 

 

15

 

 

 

13

 

 

 

(186

)

 

 

(12

)

 

 

(170

)

 

(+)

Interest expense, net

 

($)

 

 

26

 

 

 

25

 

 

 

51

 

 

 

25

 

 

 

26

 

 

 

25

 

 

 

27

 

 

 

103

 

 

(=)

Operating income

 

($)

 

 

71

 

 

 

62

 

 

 

133

 

 

 

79

 

 

 

79

 

 

 

120

 

 

 

86

 

 

 

364

 

 

(+)

Depreciation and amortization

 

($)

 

 

90

 

 

 

91

 

 

 

181

 

 

 

99

 

 

 

96

 

 

 

96

 

 

 

93

 

 

 

384

 

 

(+)

Impairment and write-down of property,

   plant and equipment

 

($)

 

 

19

 

 

 

18

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

(-)

Net gains on disposal of property, plant

   and equipment

 

($)

 

 

(1

)

 

 

(14

)

 

 

(15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(=)

EBITDA

 

($)

 

 

179

 

 

 

157

 

 

 

336

 

 

 

178

 

 

 

175

 

 

 

216

 

 

 

183

 

 

 

752

 

 

(/)

Sales

 

($)

 

 

1,348

 

 

 

1,310

 

 

 

2,658

 

 

 

1,394

 

 

 

1,385

 

 

 

1,405

 

 

 

1,379

 

 

 

5,563

 

 

(=)

EBITDA margin

 

(%)

 

 

13

%

 

 

12

%

 

 

13

%

 

 

13

%

 

 

13

%

 

 

15

%

 

 

13

%

 

 

14

%

 


Domtar Corporation

Quarterly Reconciliation of Non-GAAP Financial Measures

(In millions of dollars, unless otherwise noted)

 

 

 

EBITDA

 

($)

 

 

179

 

 

 

157

 

 

 

336

 

 

 

178

 

 

 

175

 

 

 

216

 

 

 

183

 

 

 

752

 

 

(-)

Alternative fuel tax credits

 

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

(18

)

 

(+)

Closure and restructuring costs

 

($)

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1

 

 

 

 

 

 

2

 

 

 

25

 

 

 

28

 

 

(+)

Impact of purchase accounting

 

($)

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

(=)

EBITDA before items

 

($)

 

 

180

 

 

 

158

 

 

 

338

 

 

 

182

 

 

 

175

 

 

 

200

 

 

 

208

 

 

 

765

 

 

(/)

Sales

 

($)

 

 

1,348

 

 

 

1,310

 

 

 

2,658

 

 

 

1,394

 

 

 

1,385

 

 

 

1,405

 

 

 

1,379

 

 

 

5,563

 

 

(=)

EBITDA margin before items

 

(%)

 

 

13

%

 

 

12

%

 

 

13

%

 

 

13

%

 

 

13

%

 

 

14

%

 

 

15

%

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of "Free cash flow" to Cash flow

   provided from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow provided from operating activities

 

($)

 

 

127

 

 

 

122

 

 

 

249

 

 

 

141

 

 

 

104

 

 

 

203

 

 

 

186

 

 

 

634

 

 

(-)

Additions to property, plant and equipment

 

($)

 

 

(70

)

 

 

(66

)

 

 

(136

)

 

 

(45

)

 

 

(56

)

 

 

(56

)

 

 

(79

)

 

 

(236

)

 

(=)

Free cash flow

 

($)

 

 

57

 

 

 

56

 

 

 

113

 

 

 

96

 

 

 

48

 

 

 

147

 

 

 

107

 

 

 

398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Net debt-to-total capitalization" computation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank indebtedness

 

($)

 

 

6

 

 

 

1

 

 

 

 

 

 

 

8

 

 

 

15

 

 

 

3

 

 

 

10

 

 

 

 

 

 

(+)

Long-term debt due within one year

 

($)

 

 

169

 

 

 

169

 

 

 

 

 

 

 

15

 

 

 

7

 

 

 

170

 

 

 

169

 

 

 

 

 

 

(+)

Long-term debt

 

($)

 

 

1,179

 

 

 

1,178

 

 

 

 

 

 

 

1,490

 

 

 

1,410

 

 

 

1,202

 

 

 

1,181

 

 

 

 

 

 

(=)

Debt

 

($)

 

 

1,354

 

 

 

1,348

 

 

 

 

 

 

 

1,513

 

 

 

1,432

 

 

 

1,375

 

 

 

1,360

 

 

 

 

 

 

(-)

Cash and cash equivalents

 

($)

 

 

(183

)

 

 

(207

)

 

 

 

 

 

 

(130

)

 

 

(85

)

 

 

(134

)

 

 

(174

)

 

 

 

 

 

(=)

Net debt

 

($)

 

 

1,171

 

 

 

1,141

 

 

 

 

 

 

 

1,383

 

 

 

1,347

 

 

 

1,241

 

 

 

1,186

 

 

 

 

 

 

(+)

Shareholders' equity

 

($)

 

 

2,710

 

 

 

2,761

 

 

 

 

 

 

 

2,771

 

 

 

2,826

 

 

 

2,938

 

 

 

2,890

 

 

 

 

 

 

(=)

Total capitalization

 

($)

 

 

3,881

 

 

 

3,902

 

 

 

 

 

 

 

4,154

 

 

 

4,173

 

 

 

4,179

 

 

 

4,076

 

 

 

 

 

 

 

Net debt

 

($)

 

 

1,171

 

 

 

1,141

 

 

 

 

 

 

 

1,383

 

 

 

1,347

 

 

 

1,241

 

 

 

1,186

 

 

 

 

 

 

(/)

Total capitalization

 

($)

 

 

3,881

 

 

 

3,902

 

 

 

 

 

 

 

4,154

 

 

 

4,173

 

 

 

4,179

 

 

 

4,076

 

 

 

 

 

 

(=)

Net debt-to-total capitalization

 

(%)

 

 

30

%

 

 

29

%

 

 

 

 

 

 

33

%

 

 

32

%

 

 

30

%

 

 

29

%

 

 

 

 

 

"Earnings before items", "Earnings before items per diluted share", "EBITDA", "EBITDA margin", "EBITDA before items", "EBITDA margin before items", "Free cash flow", "Net debt" and "Net debt-to-total capitalization" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Net earnings, Operating income or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

 

 

 


Domtar Corporation

Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2015

(In millions of dollars, unless otherwise noted)

 

The following table sets forth certain non-U.S. generally accepted accounting principles (GAAP), financial metrics identified in bold as Operating income (loss) before items, EBITDA before items and EBITDA margin before items by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

 

The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

 

 

 

 

 

 

 

Pulp and Paper

 

Personal Care

 

Corporate

 

Total

 

 

 

 

 

 

Q1'15

 

Q2'15

 

Q3'15

 

Q4'15

 

YTD

 

Q1'15

 

Q2'15

 

Q3'15

 

Q4'15

 

YTD

 

Q1'15

 

Q2'15

 

Q3'15

 

Q4'15

 

YTD

 

Q1'15

 

Q2'15

 

Q3'15

 

Q4'15

 

YTD

Reconciliation of Operating income (loss)

   to "Operating income (loss) before items"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)(1)

 

($)

 

75

 

55

 

 

 

130

 

10

 

17

 

 

 

27

 

(14)

 

(10)

 

 

 

(24)

 

71

 

62

 

 

 

133

 

(+)

Impairment and write-down of property,

   plant and equipment

 

($)

 

19

 

18

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

19

 

18

 

 

 

37

 

(-)

Net gains on disposal of property, plant

   and equipment

 

($)

 

 

(14)

 

 

 

(14)

 

 

 

 

 

 

(1)

 

 

 

 

(1)

 

(1)

 

(14)

 

 

 

(15)

 

(+)

Closure and restructuring costs

 

($)

 

 

1

 

 

 

1

 

1

 

 

 

 

1

 

 

 

 

 

 

1

 

1

 

 

 

2

 

(=)

Operating income (loss) before items

 

($)

 

94

 

60

 

 

 

154

 

11

 

17

 

 

 

28

 

(15)

 

(10)

 

 

 

(25)

 

90

 

67

 

 

 

157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of "Operating income (loss)

   before items" to "EBITDA before items"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) before items

 

($)

 

94

 

60

 

 

 

154

 

11

 

17

 

 

 

28

 

(15)

 

(10)

 

 

 

(25)

 

90

 

67

 

 

 

157

 

(+)

Depreciation and amortization

 

($)

 

74

 

75

 

 

 

149

 

16

 

16

 

 

 

32

 

 

 

 

 

 

90

 

91

 

 

 

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(=)

EBITDA before items

 

($)

 

168

 

135

 

 

 

303

 

27

 

33

 

 

 

60

 

(15)

 

(10)

 

 

 

(25)

 

180

 

158

 

 

 

338

 

(/)

Sales

 

($)

 

1,146

 

1,110

 

 

 

2,256

 

218

 

216

 

 

 

434

 

 

 

 

 

 

1,364

 

1,326

 

 

 

2,690

 

(=)

EBITDA margin before items

 

(%)

 

15%

 

12%

 

 

 

13%

 

12%

 

15%

 

 

 

14%

 

 

 

 

 

 

13%

 

12%

 

 

 

13%

 

"Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items" have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

 

(1) As a result of changes in the Company’s organization structure, we have changed the way we allocate certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, will be presented on the Corporate line. As a result, we have revised our 2014 segment disclosures to conform to our 2015 presentation.

 

 

 


Domtar Corporation

Quarterly Reconciliation of Non-GAAP Financial Measures – By Segment 2014

(In millions of dollars, unless otherwise noted)

 

The following table sets forth certain non-U.S. generally accepted accounting principles (GAAP), financial metrics identified in bold as "Operating income (loss) before items", "EBITDA before items" and "EBITDA margin before items by reportable segment. Management believes that the financial metrics presented are frequently used by investors and are useful to measure the operating performance and benchmark with peers within the industry. These metrics are presented as a complement to enhance the understanding of operating results but not in substitution for GAAP results.

 

The Company calculates the segmented “Operating income (loss) before items” by excluding the pre-tax effect of items considered by management as not reflecting our ongoing operations. Management uses these measures to focus on ongoing operations and believes that it is useful to investors because it enables them to perform meaningful comparisons between periods. Domtar believes that using this information along with Operating income (loss) provides for a more complete analysis of the results of operations. Operating income (loss) by segment is the most directly comparable GAAP measure.

 

 

 

 

 

 

 

Pulp and Paper

 

Personal Care (1)

 

Corporate

 

Total

 

 

 

 

 

 

Q1'14

 

Q2'14

 

Q3'14

 

Q4'14

 

YTD

 

Q1'14

 

Q2'14

 

Q3'14

 

Q4'14

 

YTD

 

Q1'14

 

Q2'14

 

Q3'14

 

Q4'14

 

YTD

 

Q1'14

 

Q2'14

 

Q3'14

 

Q4'14

 

YTD

Reconciliation of Operating income (loss)

   to "Operating income (loss) before items"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)(2)

 

($)

 

89

 

74

 

101

 

88

 

352

 

14

 

12

 

12

 

11

 

49

 

(24)

 

(7)

 

7

 

(13)

 

(37)

 

79

 

79

 

120

 

86

 

364

 

(-)

Alternative fuel tax credits

 

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

(18)

 

 

(18)

 

 

 

(18)

 

 

(18)

 

(+)

Closure and restructuring costs

 

($)

 

 

 

2

 

25

 

27

 

1

 

 

 

 

1

 

 

 

 

 

 

1

 

 

2

 

25

 

28

 

(+)

Impact of purchase accounting

 

($)

 

 

 

 

 

 

3

 

 

 

 

3

 

 

 

 

 

 

3

 

 

 

 

3

 

(+)

Impairment and write-down of property,

   plant and equipment

 

($)

 

 

 

 

4

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

4

 

(=)

Operating income (loss) before items

 

($)

 

89

 

74

 

103

 

117

 

383

 

18

 

12

 

12

 

11

 

53

 

(24)

 

(7)

 

(11)

 

(13)

 

(55)

 

83

 

79

 

104

 

115

 

381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of "Operating income (loss)

   before items" to "EBITDA before items"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) before items

 

($)

 

89

 

74

 

103

 

117

 

383

 

18

 

12

 

12

 

11

 

53

 

(24)

 

(7)

 

(11)

 

(13)

 

(55)

 

83

 

79

 

104

 

115

 

381

 

(+)

Depreciation and amortization

 

($)

 

83

 

79

 

79

 

78

 

319

 

16

 

17

 

17

 

15

 

65

 

 

 

 

 

 

99

 

96

 

96

 

93

 

384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(=)

EBITDA before items

 

($)

 

172

 

153

 

182

 

195

 

702

 

34

 

29

 

29

 

26

 

118

 

(24)

 

(7)

 

(11)

 

(13)

 

(55)

 

182

 

175

 

200

 

208

 

765

 

(/)

Sales

 

($)

 

1,168

 

1,160

 

1,186

 

1,160

 

4,674

 

233

 

234

 

231

 

230

 

928

 

 

 

 

 

 

1,401

 

1,394

 

1,417

 

1,390

 

5,602

 

(=)

EBITDA margin before items

 

(%)

 

15%

 

13%

 

15%

 

17%

 

15%

 

15%

 

12%

 

13%

 

11%

 

13%

 

 

 

 

 

 

13%

 

13%

 

14%

 

15%

 

14%

 

“Operating income (loss) before items”, “EBITDA before items” and “EBITDA margin before items” have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation or as a substitute for Operating income (loss) or any other earnings statement, cash flow statement or balance sheet financial information prepared in accordance with GAAP. It is important for readers to understand that certain items may be presented in different lines by different companies on their financial statements thereby leading to different measures for different companies.

 

(1) On January 2, 2014, the Company acquired 100% of the shares of Laboratorios Indas, S.A.U. in Spain.

(2) As a result of changes in the Company’s organization structure, we have changed the way we allocate certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, will be presented on the Corporate line. As a result, we have revised our 2014 segment disclosures to conform to our 2015 presentation.

 

 

 


Domtar Corporation

Supplemental Segmented Information

(In millions of dollars, unless otherwise noted)

 

 

 

 

 

 

2015

 

 

2014

 

 

 

 

 

Q1

 

 

Q2

 

 

YTD

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Q4

 

 

YTD

 

Pulp and Paper Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

($)

 

 

1,146

 

 

 

1,110

 

 

 

2,256

 

 

 

1,168

 

 

 

1,160

 

 

 

1,186

 

 

 

1,160

 

 

 

4,674

 

Operating income (a)

 

($)

 

 

75

 

 

 

55

 

 

 

130

 

 

 

89

 

 

 

74

 

 

 

101

 

 

 

88

 

 

 

352

 

Depreciation and

   amortization

 

($)

 

 

74

 

 

 

75

 

 

 

149

 

 

 

83

 

 

 

79

 

 

 

79

 

 

 

78

 

 

 

319

 

Impairment and write-down

   of property, plant and

   equipment

 

($)

 

 

19

 

 

 

18

 

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paper

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paper Production

 

('000 ST)

 

 

808

 

 

 

806

 

 

 

1,614

 

 

 

801

 

 

 

786

 

 

 

758

 

 

 

777

 

 

 

3,122

 

Paper Shipments -

   Manufactured

 

('000 ST)

 

 

804

 

 

 

783

 

 

 

1,587

 

 

 

804

 

 

 

779

 

 

 

776

 

 

 

786

 

 

 

3,145

 

Communication Papers

 

('000 ST)

 

 

669

 

 

 

653

 

 

 

1,322

 

 

 

678

 

 

 

647

 

 

 

649

 

 

 

661

 

 

 

2,635

 

Specialty and Packaging

 

('000 ST)

 

 

135

 

 

 

130

 

 

 

265

 

 

 

126

 

 

 

132

 

 

 

127

 

 

 

125

 

 

 

510

 

Paper Shipments - Sourced

   from 3rd parties

 

('000 ST)

 

 

35

 

 

 

29

 

 

 

64

 

 

 

50

 

 

 

42

 

 

 

47

 

 

 

34

 

 

 

173

 

Paper Shipments - Total

 

('000 ST)

 

 

839

 

 

 

812

 

 

 

1,651

 

 

 

854

 

 

 

821

 

 

 

823

 

 

 

820

 

 

 

3,318

 

Pulp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pulp Shipments(b)

 

('000 ADMT)

 

 

350

 

 

 

345

 

 

 

695

 

 

 

318

 

 

 

336

 

 

 

367

 

 

 

370

 

 

 

1,391

 

Hardwood Kraft Pulp

 

(%)

 

 

9

%

 

 

8

%

 

 

9

%

 

 

12

%

 

 

11

%

 

 

12

%

 

 

11

%

 

 

12

%

Softwood Kraft Pulp

 

(%)

 

 

65

%

 

 

65

%

 

 

65

%

 

 

58

%

 

 

63

%

 

 

63

%

 

 

60

%

 

 

61

%

Fluff Pulp

 

(%)

 

 

26

%

 

 

27

%

 

 

26

%

 

 

30

%

 

 

26

%

 

 

25

%

 

 

29

%

 

 

27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Care Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

($)

 

 

218

 

 

 

216

 

 

 

434

 

 

 

233

 

 

 

234

 

 

 

231

 

 

 

230

 

 

 

928

 

Operating income(a)

 

($)

 

 

10

 

 

 

17

 

 

 

27

 

 

 

14

 

 

 

12

 

 

 

12

 

 

 

11

 

 

 

49

 

Depreciation and

   amortization

 

($)

 

 

16

 

 

 

16

 

 

 

32

 

 

 

16

 

 

 

17

 

 

 

17

 

 

 

15

 

 

 

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Exchange Rates

 

$US / $CAN

 

 

1.241

 

 

 

1.229

 

 

 

1.235

 

 

 

1.103

 

 

 

1.091

 

 

 

1.089

 

 

 

1.136

 

 

 

1.105

 

 

 

$CAN / $US

 

 

0.806

 

 

 

0.813

 

 

 

0.810

 

 

 

0.906

 

 

 

0.917

 

 

 

0.918

 

 

 

0.881

 

 

 

0.906

 

 

 

€ / $US

 

 

1.126

 

 

 

1.106

 

 

 

1.116

 

 

 

1.370

 

 

 

1.371

 

 

 

1.324

 

 

 

1.249

 

 

 

1.329

 

 

(a)  As a result of changes in the Company’s organization structure, we have changed the way we allocate certain Corporate general and administrative costs to the segments. Further, certain Corporate costs not related to segment activities, as well as the mark-to-market impact on stock-based compensation awards, will be presented on the Corporate line. As a result, we have revised our 2014 segment disclosures to conform to our 2015 presentation.

(b)  Figures are gross of market pulp purchased from other producers on the open market for some of our paper making operations. Pulp Shipments represent the amount of pulp produced in excess of our internal requirement.

Note: the term "ST" refers to a short ton and the term "ADMT" refers to an air dry metric ton.

 

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