Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VRS | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 81,646,159 | ||
Entity Public Float | $34,876,151 | ||
Entity Registrant Name | VERSO CORPORATION | ||
Entity Central Index Key | 1421182 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
VERSO PAPER HOLDINGS LLC | |||
Document Information [Line Items] | |||
Entity Registrant Name | VERSO PAPER HOLDINGS LLC | ||
Entity Central Index Key | 1395864 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $5,542 | $11,295 |
Accounts receivable, net | 87,740 | 104,498 |
Inventories | 110,724 | 137,687 |
Assets held for sale | 60,964 | 50 |
Prepaid expenses and other assets | 10,812 | 20,621 |
Total current assets | 275,782 | 274,151 |
Property, plant, and equipment, net | 530,537 | 742,946 |
Intangibles and other assets, net | 71,192 | 81,455 |
Total assets | 877,511 | 1,098,552 |
Current liabilities: | ||
Accounts payable | 62,814 | 88,412 |
Accrued liabilities | 205,397 | 122,335 |
Current maturities of long-term debt | 30,000 | 13,310 |
Liabilities related to assets held for sale | 2,198 | 0 |
Total current liabilities | 300,409 | 224,057 |
Long-term debt | 1,296,906 | 1,235,167 |
Other liabilities | 64,301 | 56,599 |
Total liabilities | 1,661,616 | 1,515,823 |
Commitments and contingencies (Note 19) | 0 | 0 |
Equity: | ||
Preferred stock -- par value $0.01 (20,000,000 shares authorized, no shares issued) | 0 | 0 |
Common stock -- par value $0.01 (250,000,000 shares authorized with 53,434,698 shares issued and 53,336,634 outstanding on December 31, 2014, and with 53,246,715 shares issued and 53,172,484 outstanding on December 31, 2013) | 534 | 533 |
Treasury stock -- at cost (98,064 shares on December 31, 2014 and 74,231 shares on December 31, 2013) | -164 | -106 |
Paid-in-capital | 222,820 | 220,960 |
Retained deficit | -980,178 | -627,223 |
Accumulated other comprehensive loss | -27,117 | -11,435 |
Total deficit | -784,105 | -417,271 |
Total liabilities and equity | 877,511 | 1,098,552 |
VERSO PAPER HOLDINGS LLC | ||
Current assets: | ||
Cash and cash equivalents | 5,541 | 11,240 |
Accounts receivable, net | 87,866 | 104,624 |
Inventories | 110,724 | 137,687 |
Assets held for sale | 60,964 | 50 |
Prepaid expenses and other assets | 10,812 | 20,621 |
Total current assets | 275,907 | 274,222 |
Property, plant, and equipment, net | 530,537 | 742,946 |
Intangibles and other assets, net | 94,497 | 104,760 |
Total assets | 900,941 | 1,121,928 |
Current liabilities: | ||
Accounts payable | 62,814 | 88,412 |
Accrued liabilities | 205,513 | 122,435 |
Current maturities of long-term debt | 30,000 | 13,310 |
Liabilities related to assets held for sale | 2,198 | 0 |
Total current liabilities | 300,525 | 224,157 |
Long-term debt | 1,320,211 | 1,258,472 |
Other liabilities | 60,522 | 50,425 |
Total liabilities | 1,681,258 | 1,533,054 |
Commitments and contingencies (Note 19) | 0 | 0 |
Equity: | ||
Paid-in-capital | 233,962 | 231,489 |
Retained deficit | -987,162 | -631,180 |
Accumulated other comprehensive loss | -27,117 | -11,435 |
Total deficit | -780,317 | -411,126 |
Total liabilities and equity | $900,941 | $1,121,928 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 53,434,698 | 53,246,715 |
Common stock, shares outstanding | 53,336,634 | 53,172,484 |
Treasury stock, shares | 98,064 | 74,231 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $1,296,613 | $1,388,899 | $1,474,612 |
Costs and expenses: | |||
Cost of products sold - (exclusive of depreciation, amortization, and depletion) | 1,176,002 | 1,179,085 | 1,272,630 |
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 |
Selling, general, and administrative expenses | 69,945 | 73,777 | 74,415 |
Restructuring charges | 134,486 | 1,378 | 102,404 |
Total operating expenses | 1,471,330 | 1,358,970 | 1,567,627 |
Other operating income | 0 | -3,971 | -60,594 |
Operating (loss) income | -174,717 | 33,900 | -32,421 |
Interest income | -2 | -25 | -8 |
Interest expense | 142,331 | 137,728 | 135,461 |
Other loss, net | 38,898 | 7,965 | 7,379 |
Loss before income taxes | -355,944 | -111,768 | -175,253 |
Income tax benefit | -2,989 | -562 | -1,424 |
Net loss | -352,955 | -111,206 | -173,829 |
Loss per common share | |||
Basic (usd per share) | ($6.62) | ($2.09) | ($3.29) |
Diluted (usd per share) | ($6.62) | ($2.09) | ($3.29) |
Weighted average common shares outstanding | |||
Basic (in shares) | 53,293 | 53,124 | 52,850 |
Diluted (in shares) | 53,293 | 53,124 | 52,850 |
VERSO PAPER HOLDINGS LLC | |||
Net sales | 1,296,613 | 1,388,899 | 1,474,612 |
Costs and expenses: | |||
Cost of products sold - (exclusive of depreciation, amortization, and depletion) | 1,176,002 | 1,179,085 | 1,272,630 |
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 |
Selling, general, and administrative expenses | 69,945 | 73,777 | 74,364 |
Restructuring charges | 134,486 | 1,378 | 102,404 |
Total operating expenses | 1,471,330 | 1,358,970 | 1,567,576 |
Other operating income | 0 | -3,971 | -60,594 |
Operating (loss) income | -174,717 | 33,900 | -32,370 |
Interest income | -1,517 | -1,539 | -1,523 |
Interest expense | 143,846 | 138,626 | 127,943 |
Other loss, net | 38,898 | 7,965 | 7,380 |
Loss before income taxes | -355,944 | -111,152 | -166,170 |
Income tax benefit | 0 | 0 | |
Net loss | ($355,944) | ($111,152) | ($166,170) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net loss | ($352,955) | ($111,206) | ($173,829) |
Derivative financial instruments: | |||
Effective portion of net unrealized losses | 0 | 0 | -1,365 |
Reclassification of accumulated other comprehensive loss to net loss | 0 | 335 | 5,856 |
Defined benefit pension plan: | |||
Pension liability adjustment | -17,045 | 11,221 | -4,185 |
Amortization of net loss and prior service cost | 1,363 | 2,282 | 2,960 |
Other | 0 | 0 | 119 |
Other comprehensive (loss) income | -15,682 | 13,838 | 3,385 |
Comprehensive loss | -368,637 | -97,368 | -170,444 |
VERSO PAPER HOLDINGS LLC | |||
Net loss | -355,944 | -111,152 | -166,170 |
Derivative financial instruments: | |||
Effective portion of net unrealized losses | 0 | 0 | -1,365 |
Reclassification of accumulated other comprehensive loss to net loss | 0 | 335 | 5,856 |
Defined benefit pension plan: | |||
Pension liability adjustment | -17,045 | 11,221 | -4,185 |
Amortization of net loss and prior service cost | 1,363 | 2,282 | 2,960 |
Other | 0 | 0 | 119 |
Other comprehensive (loss) income | -15,682 | 13,838 | 3,385 |
Comprehensive loss | ($371,626) | ($97,314) | ($162,785) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' AND MEMBER'S EQUITY (USD $) | Total | VERSO PAPER HOLDINGS LLC | Common Stock | Treasury Stock | Paid-in Capital | Paid-in Capital | Retained Deficit | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | VERSO PAPER HOLDINGS LLC | |||||||
Member's Equity Beginning of Period at Dec. 31, 2011 | ($61,184) | $321,110 | ($353,636) | ($28,658) | ||||||
Stockholders' Equity Beginning of Period at Dec. 31, 2011 | -153,888 | 526 | -53 | 216,485 | -342,188 | -28,658 | ||||
Common Stock, Shares, Issued at Dec. 31, 2011 | 52,631,000 | |||||||||
Treasury Stock, Shares, Beginning of Period at Dec. 31, 2011 | -26,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | -173,829 | -166,170 | -173,829 | -166,170 | ||||||
Other comprehensive income (loss) | 3,385 | 3,385 | 3,385 | 3,385 | ||||||
Treasury shares acquired, shares | -29,000 | |||||||||
Treasury shares acquired | -31 | |||||||||
Cash distributions | -82 | -82 | ||||||||
Common stock issued for restricted stock, net (in shares) | 320,000 | |||||||||
Common stock issued for restricted stock, net | 4 | -4 | ||||||||
Common stock issued for restricted stock, net | -31 | |||||||||
Contribution from parent (Return of capital) | 776 | 776 | ||||||||
Equity award expense | 2,677 | 2,676 | 2,677 | 2,676 | ||||||
Member's Equity End of Period at Dec. 31, 2012 | -220,599 | 324,562 | -519,888 | -25,273 | ||||||
Stockholders' Equity End of Period at Dec. 31, 2012 | -321,686 | 530 | -84 | 219,158 | -516,017 | -25,273 | ||||
Common Stock, Shares, Issued at Dec. 31, 2012 | 52,951,000 | |||||||||
Treasury Stock, Shares, End of Period at Dec. 31, 2012 | -55,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | -111,206 | -111,152 | -111,206 | -111,152 | ||||||
Other comprehensive income (loss) | 13,838 | 13,838 | 13,838 | 13,838 | ||||||
Treasury shares acquired, shares | -19,000 | |||||||||
Treasury shares acquired | -22 | |||||||||
Cash distributions | -140 | -140 | ||||||||
Common stock issued for restricted stock, net (in shares) | 296,000 | |||||||||
Common stock issued for restricted stock, net | 3 | -3 | ||||||||
Common stock issued for restricted stock, net | -22 | |||||||||
Contribution from parent (Return of capital) | -94,878 | -94,878 | ||||||||
Equity award expense | 1,805 | 1,805 | 1,805 | 1,805 | ||||||
Member's Equity End of Period at Dec. 31, 2013 | -411,126 | 231,489 | -631,180 | -11,435 | ||||||
Stockholders' Equity End of Period at Dec. 31, 2013 | -417,271 | 533 | -106 | 220,960 | -627,223 | -11,435 | ||||
Common Stock, Shares, Issued at Dec. 31, 2013 | 53,246,715 | 53,247,000 | ||||||||
Treasury Stock, Shares, End of Period at Dec. 31, 2013 | -74,231 | -74,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | -352,955 | -355,944 | -352,955 | -355,944 | ||||||
Other comprehensive income (loss) | -15,682 | -15,682 | -15,682 | -15,682 | ||||||
Treasury shares acquired, shares | -24,000 | |||||||||
Treasury shares acquired | -58 | -58 | ||||||||
Cash distributions | -38 | -38 | ||||||||
Stock option exercise | 105 | 105 | ||||||||
Common stock issued for restricted stock, net (in shares) | 146,000 | |||||||||
Common stock issued for restricted stock, net | 0 | 1 | -1 | |||||||
Contribution from parent (Return of capital) | 717 | 717 | ||||||||
Equity award expense | 1,756 | 1,756 | 1,756 | 1,756 | ||||||
Stock option exercise (in shares) | 42,000 | |||||||||
Member's Equity End of Period at Dec. 31, 2014 | -780,317 | 233,962 | -987,162 | -27,117 | ||||||
Stockholders' Equity End of Period at Dec. 31, 2014 | ($784,105) | $534 | ($164) | $222,820 | ($980,178) | ($27,117) | ||||
Common Stock, Shares, Issued at Dec. 31, 2014 | 53,434,698 | 53,435,000 | ||||||||
Treasury Stock, Shares, End of Period at Dec. 31, 2014 | -98,064 | -98,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities: | |||
Net loss | ($352,955) | ($111,206) | ($173,829) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 |
Non-cash restructuring charges | 102,604 | 0 | 73,683 |
Loss on early extinguishment of debt, net | 0 | 0 | 8,244 |
Amortization of debt issuance costs | 8,078 | 5,398 | 5,317 |
Accretion of discount on long-term debt | 638 | 572 | 1,421 |
Equity award expense | 1,756 | 1,805 | 2,677 |
Gain on disposal of assets | -59 | -4,021 | -45,742 |
Trademark impairment | 6,300 | 1,600 | 3,693 |
Other, net | 2,030 | -792 | -4,992 |
Changes in assets and liabilities: | |||
Accounts receivable | 16,757 | -3,610 | 27,199 |
Inventories | 17,213 | -6,176 | 28,269 |
Prepaid expenses and other assets | -15,470 | 5,177 | -8,969 |
Accounts payable | -21,752 | -8,059 | -17,813 |
Accrued liabilities | 86,198 | -13,150 | -5,328 |
Net cash (used in) provided by operating activities | -57,765 | -27,732 | 12,008 |
Cash Flows From Investing Activities: | |||
Proceeds from insurance settlement | 0 | 0 | 51,003 |
Proceeds from sale of assets | 809 | 28,397 | 1,731 |
Transfers from (to) restricted cash, net | 844 | -1,492 | 106 |
Capital expenditures | -41,963 | -40,660 | -59,909 |
Other investing activities | 15,020 | 0 | 0 |
Net cash used in investing activities | -25,290 | -13,755 | -7,069 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 433,449 | 145,000 | 112,500 |
Payments on revolving credit facilities | -340,449 | -145,000 | -112,500 |
Proceeds from long-term debt | 0 | 0 | 341,191 |
Debt issuance costs | -2,435 | -220 | -24,459 |
Repayments of long-term debt | -13,310 | -8,501 | -354,984 |
Acquisition of treasury stock | -58 | -22 | -31 |
Proceeds from issuance of common stock | 105 | 0 | 0 |
Net cash provided by (used in) financing activities | 77,302 | -8,743 | -38,283 |
Change in cash and cash equivalents | -5,753 | -50,230 | -33,344 |
Cash and cash equivalents at beginning of period | 11,295 | 61,525 | 94,869 |
Cash and cash equivalents at end of period | 5,542 | 11,295 | 61,525 |
Total interest paid | 116,705 | 129,467 | 113,334 |
Total income taxes paid (received) | -257 | 118 | 153 |
VERSO PAPER HOLDINGS LLC | |||
Cash Flows From Operating Activities: | |||
Net loss | -355,944 | -111,152 | -166,170 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 |
Non-cash restructuring charges | 102,604 | 0 | 73,683 |
Loss on early extinguishment of debt, net | 0 | 0 | 8,244 |
Amortization of debt issuance costs | 8,078 | 5,368 | 4,957 |
Accretion of discount on long-term debt | 638 | 572 | 1,421 |
Equity award expense | 1,756 | 1,805 | 2,676 |
Gain on disposal of assets | -59 | -4,021 | -45,742 |
Trademark impairment | 6,300 | 1,600 | 3,693 |
Other, net | 2,030 | -792 | -4,992 |
Changes in assets and liabilities: | |||
Accounts receivable | 16,757 | -3,610 | 27,199 |
Inventories | 17,213 | -6,176 | 28,269 |
Prepaid expenses and other assets | -15,470 | 5,177 | -8,969 |
Accounts payable | -21,752 | -8,059 | -18,719 |
Accrued liabilities | 88,609 | -12,904 | -12,426 |
Net cash (used in) provided by operating activities | -58,343 | -27,462 | 11,302 |
Cash Flows From Investing Activities: | |||
Proceeds from insurance settlement | 0 | 0 | 51,003 |
Proceeds from sale of assets | 809 | 28,397 | 1,731 |
Transfers from (to) restricted cash, net | 844 | -1,492 | 106 |
Capital expenditures | -41,963 | -40,660 | -59,909 |
Other investing activities | 15,020 | 0 | 0 |
Net cash used in investing activities | -25,290 | -13,755 | -7,069 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 433,449 | 145,000 | 112,500 |
Payments on revolving credit facilities | -340,449 | -145,000 | -112,500 |
Proceeds from long-term debt | 0 | 0 | 341,191 |
Debt issuance costs | -2,435 | -220 | -24,459 |
Repayments of long-term debt | -13,310 | 0 | -354,984 |
Return of capital | 0 | -8,653 | 0 |
Contribution from parent | 717 | 0 | 776 |
Cash distributions | -38 | -140 | -82 |
Net cash provided by (used in) financing activities | 77,934 | -9,013 | -37,558 |
Change in cash and cash equivalents | -5,699 | -50,230 | -33,325 |
Cash and cash equivalents at beginning of period | 11,240 | 61,470 | 94,795 |
Cash and cash equivalents at end of period | 5,541 | 11,240 | 61,470 |
Total interest paid | $118,220 | $130,830 | $114,849 |
SUMMARY_OF_BUSINESS_AND_SIGNIF
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Nature of Business — Within our organization, Verso Corporation, formerly named Verso Paper Corp., is the ultimate parent entity and the sole member of Verso Paper Finance Holdings One LLC, which is the sole member of Verso Paper Finance Holdings LLC, which is the sole member of Verso Paper Holdings LLC. As used in this report, the term “Verso” refers to Verso Corporation; the term “Verso Finance” refers to Verso Paper Finance Holdings LLC; the term “Verso Holdings” refers to Verso Paper Holdings LLC; and the term for any such entity includes its direct and indirect subsidiaries when referring to the entity’s consolidated financial condition or results. Unless otherwise noted, references to “Verso,” “we,” “us,” and “our” refer collectively to Verso and Verso Holdings. Other than Verso’s common stock transactions, Verso Finance’s debt obligation and related financing costs and interest expense, Verso Holdings’ loan to Verso Finance, and the debt obligation of Verso Holdings’ consolidated variable interest entity to Verso Finance, the assets, liabilities, income, expenses and cash flows presented for all periods represent those of Verso Holdings in all material respects. Unless otherwise noted, the information provided pertains to both Verso and Verso Holdings. | ||||||||||||
We began operations on August 1, 2006, when we acquired the assets and certain liabilities comprising the business of the Coated and Supercalendered Papers Division of International Paper Company, or “International Paper.” We were formed by affiliates of Apollo Global Management, LLC, or “Apollo,” for the purpose of consummating the acquisition from International Paper. Verso went public on May 14, 2008, with an initial public offering, or “IPO,” of 14 million shares of common stock. | ||||||||||||
On January 3, 2014, Verso, Verso Merger Sub Inc., a Delaware corporation and an indirect, wholly owned subsidiary of Verso, or “Merger Sub,” and NewPage Holdings Inc., a Delaware corporation, or “NewPage,” entered into an Agreement and Plan of Merger, or the “Merger Agreement,” pursuant to which the parties agreed to merge Merger Sub with and into NewPage on the terms and subject to the conditions set forth in the Merger Agreement, with NewPage surviving the merger as an indirect, wholly owned subsidiary of Verso. On January 7, 2015, Verso consummated the previously announced acquisition of NewPage through the merger of Merger Sub with and into NewPage, or the “NewPage acquisition,” pursuant to the Merger Agreement. As a result of the merger of Merger Sub with and into NewPage, Merger Sub’s separate corporate existence ceased and NewPage continued as the surviving corporation and an indirect, wholly owned subsidiary of Verso (see Note 24). As the NewPage acquisition was consummated subsequent to our year-end, the consolidated financial statements for the fiscal year ended December 31, 2014, exclude the impact of NewPage’s operations on our business. | ||||||||||||
We operate in the following three market segments: coated papers; hardwood market pulp; and other, consisting of specialty papers. Our core business platform is as a producer of coated freesheet and coated groundwood papers. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. | ||||||||||||
Basis of Presentation —This report contains the consolidated financial statements of Verso and Verso Holdings as of December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013, and 2012. Variable interest entities for which Verso or Verso Holdings is the primary beneficiary are also consolidated. Intercompany balances and transactions are eliminated in consolidation. | ||||||||||||
Liquidity —We have historically relied primarily upon cash flow from operations and borrowings under our revolving credit facilities to finance operations, capital expenditures, and debt service requirements. We are a highly leveraged company. As of December 31, 2014, we had $1.3 billion in borrowings outstanding under our existing financing arrangements. Also as of December 31, 2014, $66.9 million was available for future borrowing under our revolving credit facilities. Our debt arrangements contain financial and other restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests. Failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our debts. If we are unable to repay our indebtedness when due or declared due, our lenders also will have the right to proceed against the collateral pledged to them to secure the indebtedness. Our indebtedness requires us to dedicate a substantial portion of our cash flows from operations to payments for our debt service, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, research and development efforts, and other corporate purposes. In addition, our indebtedness increases our vulnerability to adverse economic and industry conditions and places us at a competitive disadvantage compared to competitors that have less debt. | ||||||||||||
Our ability to achieve our future projected operating results is largely based on the successful integration of NewPage (see Note 4), the borrowing availability of the combined company, and the synergies and operational cost reduction and earnings enhancement initiatives expected to be achieved from the acquisition. If the integration of NewPage into our business is not completed within the expected time frame, the synergies and other benefits that we expect to achieve could be materially and adversely affected, and these situations could result in additional transaction costs, loss of revenue or other effects associated with uncertainty about the acquisition. If we are unable to meet our projected performance targets, our liquidity could be adversely impacted and we may need to seek additional sources of liquidity. Our future performance could adversely affect our ability to raise additional capital to fund our operations, and there is no assurance that financing will be available in a sufficient amount, on acceptable terms, or on a timely basis. | ||||||||||||
Our ability to continue as a going concern is dependent on management’s plans, which are primarily centered on the synergies expected to be achieved from the NewPage acquisition and on the disposition of the Bucksport mill. We have certain significant cash outflow requirements over the next twelve months outside of normal paper mill operations, including our current debt service requirements (See Note 8), costs associated with the Bucksport mill closure (See Note 17), and transaction and integration costs associated with the NewPage acquisition (See Note 4). While we believe that our future operating results will provide sufficient cash flows to fund our operations, debt service requirements, and capital expenditures, our projected future operating results are subject to material uncertainties, especially those related to our ability to successfully capitalize on the operational benefits of the NewPage acquisition. | ||||||||||||
We believe our plans, together with cash flows from operations and available borrowings under our revolving credit facilities, are sufficient to allow us to meet our current and future obligations, pay scheduled principal and interest payments, and provide funds for working capital, capital expenditures, and other needs of the business for at least the next twelve months. However, no assurance can be given that our integration of NewPage will be successful or that we will be able to generate sufficient cash flows from operations or that future borrowings will be available under our revolving credit facilities in an amount sufficient to fund our liquidity needs on a long-term basis. | ||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. | ||||||||||||
Revenue Recognition — Sales are recorded net of rebates, allowances, and discounts. Revenue is recognized when the customer takes title and assumes the risks and rewards of ownership, in accordance with Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 605, Revenue Recognition. Revenue is recorded at the time of shipment for terms designated FOB, or “free on board,” shipping point. For sales transactions designated FOB destination, revenue is recorded when the product is delivered to the customer’s site and when title and risk of loss are transferred. | ||||||||||||
Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the accompanying consolidated statements of operations. When the sales price includes charges to customers for shipping and handling, such amounts are included in Net sales. | ||||||||||||
Planned Maintenance Costs — Maintenance costs for major planned maintenance shutdowns in excess of $0.5 million are deferred and then expensed ratably over the period until the next major planned shutdown, since we believe that operations benefit throughout that period from the maintenance work performed. Other maintenance costs are expensed as incurred. | ||||||||||||
Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the timing of expected cash flows are reliably determinable. | ||||||||||||
Equity Compensation — We account for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. We use the straight-line attribution method to recognize share-based compensation over the service period of the award. | ||||||||||||
Income Taxes — Verso accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes. Under this method, Verso recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address Verso’s tax risk profile. Verso analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. Verso Holdings is a limited liability corporation and is not subject to federal income taxes. Verso Holdings accounts for its state income taxes in accordance with ASC Topic 740. | ||||||||||||
Earnings Per Share — Verso computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. | ||||||||||||
Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, and amounts receivable from or due to related parties approximate fair value due to the short maturity of these instruments. We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. See also Note 8, Note 11, Note 14, and Note 15 for additional information regarding the fair value of financial instruments. | ||||||||||||
Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. | ||||||||||||
Inventories and Replacement Parts and Other Supplies — Inventory includes all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead and are presented at the lower of cost or market. Costs of raw materials, work-in-progress, and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are stated using the average cost method and are reflected in Inventories and Intangibles and other assets on the consolidated balance sheet (see also Note 3 and Note 6). | ||||||||||||
Property, Plant, and Equipment — Property, plant, and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets. Interest costs of $1.9 million and $1.3 million were capitalized, respectively, in 2014 and 2013. Expenditures for major repairs and improvements are capitalized, whereas normal repairs and maintenance are expensed as incurred. | ||||||||||||
Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | ||||||||||||
Years | ||||||||||||
Building | 20 - 40 | |||||||||||
Machinery and equipment | 20-Oct | |||||||||||
Furniture and office equipment | 10-Mar | |||||||||||
Computer hardware and software | 6-Mar | |||||||||||
Leasehold improvements | Over the shorter of the lease term or the useful life of the improvements | |||||||||||
Intangible Assets — We account for intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Intangible assets primarily consist of trademarks, customer-related intangible assets, and patents obtained through business acquisitions. The useful lives of trademarks were determined to be indefinite and, therefore, these assets are not amortized. Customer-related intangible assets are amortized over their estimated useful lives of approximately twenty-five years. Patents are amortized over their remaining legal lives of ten years. The impairment evaluation of the carrying amount of intangible assets with indefinite lives is conducted annually or more frequently if events or changes in circumstances indicate that an asset might be impaired. | ||||||||||||
Trademarks are evaluated by comparing their fair value to their carrying values. In the third quarter of 2014, we determined that sufficient indicators of a potential impairment of our trademarks existed and we performed an interim analysis of our trademarks for impairment. As a result of our analysis, we determined that the carrying value of our trademarks exceeded their fair value, which was determined using a level 3 fair value measurement. This fair value determination was made using the income approach, which required us to estimate unobservable factors such as a royalty rate and discount rate and identify relevant projected revenue. We recognized an impairment charge of $6.3 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. In 2013, we also determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projection of reduced revenues driven primarily by a decline in U.S. demand. The trademark impairment charges are included in Cost of products sold in our consolidated statement of operations for the years ended December 31, 2014 and 2013. | ||||||||||||
During 2012, based on a projected reduction of revenues primarily as a result of a reduction in production capacity from the closure of the Sartell mill, we recognized a trademarks impairment charge of $3.7 million, which was included in Restructuring charges in our accompanying consolidated statement of operations for the year ended December 31, 2012. | ||||||||||||
Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. | ||||||||||||
In 2014, based on our plans to dispose of certain assets held by the legal entities that comprise the Bucksport mill (Verso Bucksport LLC and Verso Bucksport Power LLC), we recorded a fixed asset impairment charge of $88.7 million, as the carrying value of the assets held for sale were in excess of the fair value less the cost to sell. The fair value was determined based on the December 5, 2014 membership purchase agreement for the sale of the Bucksport mill. The impairment charge is included in Restructuring charges (see also Note 17) in our accompanying consolidated statements of operations. | ||||||||||||
In 2012, based on a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, we recorded a fixed asset impairment charge of $66.5 million, which was included in Restructuring charges (see also Note 17) in our accompanying consolidated statements of operations. The impairment charge was calculated based on the excess of carrying value over the estimated fair value of the site, which was estimated based on preliminary negotiations with potential buyers received subsequent to our decision to shut down the mill. | ||||||||||||
Allowance for Doubtful Accounts — We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We manage credit risk related to our trade accounts receivable by continually monitoring the creditworthiness of our customers to whom credit is granted in the normal course of business. Trade accounts receivable balances for sales to unaffiliated customers were approximately $84.0 million at December 31, 2014, compared to $100.7 million at December 31, 2013. As of December 31, 2014, our two largest customers accounted for approximately 27% of our accounts receivable. | ||||||||||||
We establish our allowance for doubtful accounts based upon factors surrounding the credit risks of specific customers, historical trends, and other information. Based on this assessment, an allowance is maintained that represents what is believed to be ultimately uncollectible from such customers. The allowance for doubtful accounts was approximately $0.6 million at December 31, 2014, compared to $0.7 million at December 31, 2013. Bad debt expense was $(0.1) million for the year ended December 31, 2014, compared to $0.3 million for the year ended December 31, 2013, and $0.1 million for the year ended December 31, 2012. | ||||||||||||
Deferred Financing Costs — We capitalize costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facilities using the effective interest method. In the case of early debt principal repayments, we adjust the carrying value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjust the future amortization expense. | ||||||||||||
Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time, and the asset is depreciated over its useful life. Our asset retirement obligations under this standard relate to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. | ||||||||||||
As of December 31, 2014 and 2013, we had $0.8 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheet related to an asset retirement obligation in the state of Michigan. This cash deposit is required by the state and may only be used for the future closure of a landfill. | ||||||||||||
The following table presents an analysis related to our asset retirement obligations included in Other liabilities and Accrued liabilities in the accompanying consolidated balance sheets: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Asset retirement obligations, January 1 | $ | 13,194 | $ | 11,854 | ||||||||
Adjustment to existing liabilities | (3,733 | ) | (190 | ) | ||||||||
Liabilities related to assets held for sale | (1,914 | ) | — | |||||||||
Accretion expense | 683 | 887 | ||||||||||
Settlement of existing liabilities | (262 | ) | (903 | ) | ||||||||
Liabilities incurred | — | 1,546 | ||||||||||
Asset retirement obligations | 7,968 | 13,194 | ||||||||||
Less: Current portion | (453 | ) | (486 | ) | ||||||||
Non-current portion of asset retirement obligations, December 31 | $ | 7,515 | $ | 12,708 | ||||||||
In addition to the above obligations, we may be required to remove certain materials from our facilities or to remediate them in accordance with current regulations that govern the handling of certain hazardous or potentially hazardous materials. At this time, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, we will record a liability for such remediation when sufficient information becomes available to estimate the obligation. | ||||||||||||
Derivative Financial Instruments — Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value. The effective portion of the changes in the fair value of derivative financial instruments that qualify and are designated as cash flow hedges are recorded in Accumulated other comprehensive loss. Changes in the fair value of derivative financial instruments that are entered into as economic hedges are recognized in current earnings. We use derivative financial instruments to manage our exposure to energy prices and interest rate risk. Effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. | ||||||||||||
Pension Benefits — Pension plans cover substantially all of our employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Prior service costs are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. Our contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. These plans are funded on a current basis. | ||||||||||||
Accumulated Other Comprehensive Income (Loss) — The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for the years ended December 31, 2014 and 2013: | ||||||||||||
(Dollars in thousands) | Losses on Derivative Financial Instruments | Defined Benefit Pension Items | Total | |||||||||
Accumulated other comprehensive loss as of December 31, 2012 | $ | (335 | ) | $ | (24,938 | ) | $ | (25,273 | ) | |||
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | 335 | 2,282 | 2,617 | |||||||||
Pension liability adjustment | — | 11,221 | 11,221 | |||||||||
Net decrease in other comprehensive loss | 335 | 13,503 | 13,838 | |||||||||
Accumulated other comprehensive loss as of December 31, 2013 | — | (11,435 | ) | (11,435 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | — | 1,363 | 1,363 | |||||||||
Pension liability adjustment | — | (17,045 | ) | (17,045 | ) | |||||||
Net decrease in other comprehensive loss | — | (15,682 | ) | (15,682 | ) | |||||||
Accumulated other comprehensive loss as of December 31, 2014 | $ | — | $ | (27,117 | ) | $ | (27,117 | ) | ||||
RECENT_ACCOUNTING_DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | RECENT ACCOUNTING DEVELOPMENTS |
ASC Topic 405, Obligations from Joint and Several Liability Arrangements. In February 2013, the FASB issued Accounting Standards Update, or “ASU,” 2013-04, Liabilities (Topic 405), Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. This ASU defines how entities measure obligations from joint and several liability arrangements which are fixed at the reporting date and for which no U.S. GAAP guidance exists. The guidance also requires entities to disclose the nature, amount and other information about those obligations. The ASU is effective for periods beginning after December 15, 2013. Retrospective presentation for all comparative periods presented is required. The adoption of this amendment in the first quarter of 2014, did not have a material impact on the presentation of our consolidated financial statements. | |
ASC Topic 205, Presentation of Financial Statements and ASC Topic 360, Property, Plant, and Equipment. In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. This guidance should be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date which is fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods. | |
ASC Topic 605, Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue From Contracts With Customers. This ASU will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective for periods beginning after December 15, 2016 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are evaluating the impact of adopting this new accounting standard on our consolidated financial statements. | |
ASC Topic 205, Presentation of Financial Statements-Going Concern. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. This ASU provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The ASU is effective for periods beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on the presentation of our consolidated financial statements. | |
Other new accounting pronouncements issued but not effective until after December 31, 2014, are not expected to have a significant effect on our consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Raw materials | $ | 13,337 | $ | 25,843 | ||||
Woodyard logs | 5,779 | 6,602 | ||||||
Work-in-process | 9,274 | 14,738 | ||||||
Finished goods | 62,477 | 60,919 | ||||||
Replacement parts and other supplies | 19,857 | 29,585 | ||||||
Inventories | $ | 110,724 | $ | 137,687 | ||||
Amounts presented in the consolidated balance sheets and the table above are adjusted for valuation allowances. |
ACQUISITIONS_AND_DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS | ||||||
On January 3, 2014, Verso, Merger Sub, and NewPage entered into a Merger Agreement pursuant to which the parties agreed to merge Merger Sub with and into NewPage on the terms and subject to the conditions set forth in the Merger Agreement, with NewPage surviving the merger and an indirect, wholly owned subsidiary of Verso. Verso has incurred transaction costs of $38.9 million related to the NewPage acquisition which are included in Other loss, net in the accompanying consolidated statements of operations for the year ended December 31, 2014. On January 7, 2015, Verso consummated the previously announced NewPage acquisition (see Note 24). | |||||||
On December 5, 2014, two Verso subsidiaries entered into an agreement to sell their equity interests in two other Verso subsidiaries that owned the Bucksport mill to AIM Development (USA) LLC, an indirect, wholly owned subsidiary of American Iron & Metal Company Inc., or “AIM.” At the end of 2014, based on our disposition plans, we recorded asset impairment charges and write-offs of $102.6 million, as the carrying value of the assets held for sale were in excess of the fair value less the costs to sell. The impairment charge is included in Restructuring charges (see also Note 17) in our accompanying consolidated statements of operations. On January 29, 2015, the Verso parties and AIM consummated the Bucksport transaction (see Note 24). | |||||||
In 2013, we closed the sale of substantially all of the assets of Verso Fiber Farm LLC as well as the sale of substantially all of the assets at our former Sartell mill. The related gains on sale were reflected in Other operating income in the accompanying consolidated statements of operations for the year ended December 31, 2013. | |||||||
In 2012, we reached a final settlement agreement with our insurance provider for property and business losses resulting from a fire at the former Sartell mill. The related gain of $60.6 million was included in Other operating income in the accompanying consolidated statements of operations for the year ended December 31, 2012, and represents insurance proceeds in excess of fire related costs and property damage. In addition, $51.0 million of proceeds attributable to property, plant, and equipment were reflected in investing activities on our consolidated statement of cash flows for the year ended December 31, 2012. | |||||||
Assets and liabilities held for sale at December 31, 2014 and 2013, respectively, were comprised of the following: | |||||||
December 31, | December 31, | ||||||
(Dollars in thousands) | 2014 (1) | 2013 (2) | |||||
Prepaid expenses and other assets | $ | 1,353 | $ | — | |||
Property, plant, and equipment, net | 58,554 | — | |||||
Intangibles and other assets, net | 1,057 | 50 | |||||
Assets held for sale | $ | 60,964 | $ | 50 | |||
Asset retirement obligations and other liabilities | $ | (2,198 | ) | $ | — | ||
Liabilities related to assets held for sale | $ | (2,198 | ) | $ | — | ||
(1) Recorded at fair value less cost to sell. | |||||||
(2) Recorded at carrying value as the expected proceeds less costs to sell exceed carrying value. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT | |||||||
Property, plant, and equipment were as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land and land improvements | $ | 26,358 | $ | 30,547 | ||||
Building and leasehold improvements | 111,812 | 154,521 | ||||||
Machinery, equipment, and other | 1,082,030 | 1,301,368 | ||||||
Construction-in-progress | 14,401 | 37,100 | ||||||
Property, plant, and equipment, gross | 1,234,601 | 1,523,536 | ||||||
Accumulated depreciation | (704,064 | ) | (780,590 | ) | ||||
Property, plant, and equipment, net | $ | 530,537 | $ | 742,946 | ||||
Depreciation expense was $90.2 million, $103.9 million, and $117.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. Property, plant, and equipment at December 31, 2014, and 2013 include $1.2 million and $11.5 million, respectively, of capital expenditures that were unpaid and included in accounts payable and accrued liabilities. |
INTANGIBLES_AND_OTHER_ASSETS
INTANGIBLES AND OTHER ASSETS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
INTANGIBLES AND OTHER ASSETS | INTANGIBLES AND OTHER ASSETS | |||||||||||||||
Intangibles and other assets consist of the following: | ||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Customer relationships, net of accumulated amortization of $8.8 million on December 31, 2014, and $8.2 million on December 31, 2013 | $ | 4,520 | $ | 5,120 | $ | 4,520 | $ | 5,120 | ||||||||
Patents, net of accumulated amortization of $0.9 million on December 31, 2014, and on December 31, 2013 | 181 | 296 | 181 | 296 | ||||||||||||
Total amortizable intangible assets | 4,701 | 5,416 | 4,701 | 5,416 | ||||||||||||
Unamortizable intangible assets: | ||||||||||||||||
Trademarks | 9,880 | 16,180 | 9,880 | 16,180 | ||||||||||||
Other assets: | ||||||||||||||||
Financing costs, net of accumulated amortization of $18.8 million on December 31, 2014, and $13.6 million on December 31, 2013 | 23,118 | 28,761 | 23,118 | 28,761 | ||||||||||||
Deferred major repair | 21,118 | 16,218 | 21,118 | 16,218 | ||||||||||||
Replacement parts, net | 2,838 | 3,465 | 2,838 | 3,465 | ||||||||||||
Loan to affiliate | — | — | 23,305 | 23,305 | ||||||||||||
Restricted cash | 2,603 | 4,946 | 2,603 | 4,946 | ||||||||||||
Other | 6,934 | 6,469 | 6,934 | 6,469 | ||||||||||||
Total other assets | 56,611 | 59,859 | 79,916 | 83,164 | ||||||||||||
Intangibles and other assets | $ | 71,192 | $ | 81,455 | $ | 94,497 | $ | 104,760 | ||||||||
Amortization expense of intangibles was $0.7 million, $0.8 million, and $0.9 million, respectively, for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||||||
The estimated future amortization expense for intangible assets over the next five years is as follows: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2015 | $ | 615 | ||||||||||||||
2016 | 567 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 300 | |||||||||||||||
2019 | 300 | |||||||||||||||
When events or circumstances so indicate, we assess the potential impairment of intangibles and other long-lived assets by comparing the expected undiscounted future cash flows to the carrying value of those assets. In the third quarter of 2014, we determined that sufficient indicators of a potential impairment of our trademarks existed and we performed an interim analysis of our trademarks for impairment. As a result of our analysis, we determined that the carrying value of our trademarks exceeded their fair value, which was determined using a level 3 fair value measurement. This fair value determination was made using the income approach, which required us to estimate unobservable factors such as a royalty rate and discount rate and identify relevant projected revenue. We recognized an impairment charge of $6.3 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. The trademark impairment charge is included in Cost of products sold in our consolidated statement of operations. | ||||||||||||||||
In performing our annual impairment test, for our trademarks during the fourth quarter of 2013, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. The trademark impairment charge is included in Cost of products sold on our accompanying consolidated statement of operations for the year ended December 31, 2013. | ||||||||||||||||
During the year ended December 31, 2012, we completed a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, and announced the decision to permanently close the mill. In the third quarter of 2012, as a result of the closure, we performed an interim impairment analysis of our trademarks, which resulted in an impairment charge of $3.4 million, based on a projected reduction of revenues primarily as a result of a reduction in production capacity. Then, in performing our annual impairment test, we determined that the carrying value of our trademarks exceeded their fair value, and recognized an additional $0.3 million of impairment charge. The trademarks impairment charge is included in Restructuring charges in our accompanying consolidated statement of operations for the year ended December 31, 2012 (see also Note 17). |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||
ACCRUED LIABILITIES | ACCRUED LIABILITIES | |||||||||||||||
A summary of accrued liabilities is as follows: | ||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Accrued interest | $ | 77,660 | $ | 58,852 | $ | 77,787 | $ | 58,977 | ||||||||
Payroll and employee benefit costs | 43,364 | 40,054 | 43,364 | 40,054 | ||||||||||||
Accrued transaction costs | 25,298 | — | 25,298 | — | ||||||||||||
Restructuring costs | 24,181 | — | 24,181 | — | ||||||||||||
Accrued sales rebates | 11,854 | 11,573 | 11,854 | 11,573 | ||||||||||||
Derivatives | 6,268 | 4,959 | 6,268 | 4,959 | ||||||||||||
Accrued taxes - other than income | 1,466 | 1,456 | 1,455 | 1,431 | ||||||||||||
Freight and other | 15,306 | 5,441 | 15,306 | 5,441 | ||||||||||||
Accrued liabilities | $ | 205,397 | $ | 122,335 | $ | 205,513 | $ | 122,435 | ||||||||
DEBT
DEBT | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
DEBT | DEBT | |||||||||||||||||||||||
A summary of long-term debt is as follows: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Original | Interest | Balance | Par | Balance | Par | ||||||||||||||||||
Maturity | Rate | Value | Value | |||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||
Verso Androscoggin Power LLC Revolving | 2/6/15 | 6.25 | % | $ | 30,000 | $ | 30,000 | $ | — | $ | — | |||||||||||||
Credit Facility | ||||||||||||||||||||||||
Revolving Credit Facilities | 5/4/17 | 2.54 | % | 63,000 | 63,000 | — | — | |||||||||||||||||
11.75% Senior Secured Notes | 1/15/19 | 11.75 | % | 424,654 | 417,882 | 426,076 | 417,882 | |||||||||||||||||
11.75% Secured Notes | 1/15/19 | 11.75 | % | 271,573 | 271,573 | 271,573 | 271,573 | |||||||||||||||||
8.75% Second Priority Senior Secured Notes | 2/1/19 | 8.75 | % | 96,447 | 96,647 | 395,018 | 396,000 | |||||||||||||||||
Second Priority Adjustable Senior Secured Notes | 2/1/19 | 8.75 | % | 298,732 | 299,353 | — | — | |||||||||||||||||
Second Priority Senior Secured Floating Rate Notes | 8/1/14 | — | % | — | — | 13,310 | 13,310 | |||||||||||||||||
11.38% Senior Subordinated Notes | 8/1/16 | 11.38 | % | 40,517 | 40,517 | 142,500 | 142,500 | |||||||||||||||||
Adjustable Senior Subordinated Notes | 8/1/16 | 11.38 | % | 101,983 | 101,983 | — | — | |||||||||||||||||
Chase NMTC Verso Investment Fund LLC | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Total debt for Verso Paper Holdings LLC | 1,350,211 | 1,344,260 | 1,271,782 | 1,264,570 | ||||||||||||||||||||
Verso Paper Finance Holdings LLC | ||||||||||||||||||||||||
Loan from Verso Paper Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Less current maturities of long-term debt | (30,000 | ) | (30,000 | ) | (13,310 | ) | (13,310 | ) | ||||||||||||||||
Less loans from affiliates | (46,610 | ) | (46,610 | ) | (46,610 | ) | (46,610 | ) | ||||||||||||||||
Total long-term debt for Verso Corporation | $ | 1,296,906 | $ | 1,290,955 | $ | 1,235,167 | $ | 1,227,955 | ||||||||||||||||
We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. Our debt is classified as Level 2 within the fair value hierarchy (see also Note 15). As of December 31, 2014, the fair value of Verso’s total debt was $1,059 million, and the fair value of Verso Holdings’ total debt was $1,082 million. As of December 31, 2013, the fair value of Verso’s total debt was $857 million, and the fair value of Verso Holdings’ total debt was $881 million. | ||||||||||||||||||||||||
Amounts included in interest expense related to debt and amounts of cash interest payments on debt are as follows: | ||||||||||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Interest expense | $ | 136,157 | $ | 133,599 | $ | 133,644 | $ | 137,672 | $ | 134,527 | $ | 126,486 | ||||||||||||
Cash interest paid | 116,705 | 129,467 | 113,334 | 118,220 | 130,830 | 114,849 | ||||||||||||||||||
Debt issuance cost amortization(1) | 8,078 | 5,398 | 5,317 | 8,078 | 5,368 | 4,957 | ||||||||||||||||||
(1) Amortization of debt issuance cost is included in interest expense. | ||||||||||||||||||||||||
Verso Androscoggin Power LLC Revolving Credit Facility. On May 5, 2014, acting through a wholly owned subsidiary, Verso Androscoggin Power LLC, or “VAP,” Verso Holdings entered into a credit agreement providing for a $40.0 million revolving credit facility with Barclays Bank PLC and Credit Suisse AG, Cayman Islands Branch. As of December 31, 2014, the revolving credit facility had a $30.0 million outstanding balance, and $10.0 million available for future borrowing. Borrowings under the credit facility bore interest at a rate equal to an applicable margin plus, at the option of VAP, either (a) a base rate determined by reference to the highest of the U.S. federal funds rate plus 0.5%, the prime rate of the administrative agent, and the adjusted LIBOR for a one-month interest period plus 1.00%, or (b) a eurocurrency rate, or “LIBOR,” determined by reference to the cost of funds for eurocurrency deposits in dollars in the London interbank market for the interest period relevant to such borrowing adjusted for certain additional costs. As of December 31, 2014, the applicable margin for advances under the credit facility was 3.00% for base rate advances and 4.00% for LIBOR advances. As of December 31, 2014, the weighted-average interest rate on outstanding advances was 6.25%. The indebtedness under the credit facility was secured by substantially all of VAP’s assets, which consist principally of four hydroelectric facilities associated with our Androscoggin mill and related electricity transmission equipment. Verso Maine Power Holdings LLC, VAP’s sole member, guaranteed the payment of the debt outstanding under the credit facility, and its guaranty was secured by a pledge of its equity interest in VAP. Debt issuance costs of approximately $2.4 million were amortized over the life of the facility. On January 7, 2015, Verso consummated the NewPage acquisition, and as a result, the credit facility was terminated on February 4, 2015. | ||||||||||||||||||||||||
Revolving Credit Facilities. In 2012, Verso Holdings entered into revolving credit facilities consisting of a $150.0 million asset-based loan facility, or “ABL Facility,” and a $50.0 million cash-flow facility, or “Cash Flow Facility.” In connection with the revolving credit facilities, debt issuance costs of approximately $9.3 million were deferred and are being amortized over the life of the credit facilities. The indebtedness under the revolving credit facilities bears interest at a floating rate based on a margin over a base rate or eurocurrency rate. Verso Holdings is required to pay commitment fees to the lenders in respect of unutilized commitments under the revolving credit facilities and other customary fees. The indebtedness under the ABL Facility and related guarantees are secured by first-priority security interests, subject to permitted liens, in substantially all of Verso Holdings’, Verso Finance’s, and the subsidiary guarantors’ inventory and accounts receivable, or “ABL Priority Collateral,” and second-priority security interests, subject to permitted liens, in substantially all of their other assets, or “Notes Priority Collateral.” The indebtedness under the Cash Flow Facility and related guarantees are secured, pari passu with the 11.75% Senior Secured Notes due 2019 and related guarantees, by first-priority security interests in the Notes Priority Collateral and second-priority security interests in the ABL Priority Collateral. The revolving credit facilities will mature on May 4, 2017. On January 3, 2014, Verso Holdings entered into certain amendments to the revolving credit facilities in connection with the Merger, in which (a) the lenders under each of our revolving credit facilities consented to the Merger and the other transactions contemplated by the Merger Agreement, including the incurrence of certain additional indebtedness, (b) the lenders consented to amendments to allow the sale and/or financing of certain non-core assets and (c) the parties agreed to amend our revolving credit facilities to allow for certain other transactions upon the consummation of the Merger and the other transactions contemplated by the Merger Agreement. The ABL Facility had $63.0 million outstanding balance, $39.4 million in letters of credit issued, and $6.9 million available for future borrowing as of December 31, 2014. The Cash Flow Facility had no outstanding balance, no letters of credit issued, and $50.0 million available for future borrowing as of December 31, 2014. | ||||||||||||||||||||||||
11.75% Senior Secured Notes due 2019. In 2012, Verso Holdings issued $345.0 million aggregate principal amount of 11.75% Senior Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 11.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings’ subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The indebtedness under the notes and related guarantees are secured, pari passu with the Cash Flow Facility and related guarantees, by first-priority security interests in the Notes Priority Collateral and second-priority security interests in the ABL Priority Collateral. The notes will mature on January 15, 2019. | ||||||||||||||||||||||||
In 2012, Verso Holdings used the proceeds from the issuance of the 11.75% Senior Secured Notes due 2019 to repurchase and retire the balance of its 11.5% Senior Secured Notes due 2014. Verso Holdings recognized a loss of $34.5 million, which is included in Other loss, net, in our accompanying consolidated statements of operations on the early retirement of notes, including the write-off of unamortized debt issuance costs and unamortized discounts related to the notes. Debt issuance costs of approximately $10.1 million were deferred and are being amortized over the life of the notes. | ||||||||||||||||||||||||
In 2013, Verso Holdings issued $72.9 million aggregate principal amount of its 11.75% Senior Secured Notes due 2019 to certain lenders holding approximately $85.8 million aggregate principal amount of Verso Finance’s Senior Unsecured Term Loans, and net accrued interest through the closing date, at an exchange rate of 85%, in exchange for the assignment to Verso Finance of its Senior Unsecured Term Loans and the cancellation of such loans. There are no longer any outstanding Senior Unsecured Term Loans. In accordance with ASC Topic 470-60, the notes were recorded at the Unsecured Term Loans value exchanged and the amount in excess of par will be amortized over the life of the notes. Debt issuance costs of $2.8 million were expensed as incurred and are recorded in Other loss, net on the accompanying consolidated statements of operations. The exchange and funding of the principal and interest payments on the Senior Unsecured Term Loans were recorded as a Return of capital on Verso Holdings’ statement of member’s equity and the exchange of $85.8 million represents a non-cash financing activity on Verso Holding’s statement of cash flows. The 11.75% Senior Secured Notes due 2019 issued in 2012 and 2013 constitute one class of securities. | ||||||||||||||||||||||||
On January 7, 2015, in connection with the consummation of the NewPage acquisition, Verso Holdings, an indirect, wholly owned subsidiary of Verso, and Verso Paper Inc., a wholly owned subsidiary of Verso Holdings (together with Verso Holdings, or the “Issuers”), entered into an indenture, or the “New First Lien Notes Indenture,” among the Issuers, certain subsidiaries of Verso Holdings, as guarantors, and Wilmington Trust, National Association, as trustee, governing the Issuers’ $650 million aggregate principal amount of 11.75% Senior Secured Notes due 2019, or the “New First Lien Notes,” and issued the New First Lien Notes to the stockholders of NewPage as partial consideration in the NewPage acquisition. The New First Lien Notes are guaranteed, jointly and severally, on a senior secured basis, by each of Verso Holdings’ existing domestic subsidiaries that guarantees its senior secured credit facility and by each of its future domestic subsidiaries that guarantees certain of its debt or issues disqualified stock. The New First Lien Notes are guaranteed by NewPage, but not guaranteed by any of its subsidiaries. The New First Lien Notes and the related guarantees are secured by first-priority liens in the collateral owned by each Issuer and Guarantor, subject to certain permitted liens and exceptions as further described in the New First Lien Notes Indenture and the related security documents. The collateral consists of substantially all of the Issuers’ and the Guarantors’ tangible and intangible assets securing Verso Holdings’ existing senior secured credit facility, which exclude certain capital stock and other securities of its affiliates and other property. | ||||||||||||||||||||||||
The New First Lien Notes and the related guarantees are the senior secured obligations of the Issuers and the Guarantors, respectively, and rank (a) senior in right of payment to all existing and future subordinated indebtedness of the Issuers and the Guarantors, including the Adjustable Subordinated Notes and the Issuers’ existing 11.38% Senior Subordinated Notes due 2016 or the “Old Subordinated Notes” and the related guarantees; (b) equal in right of payment with all existing and future senior indebtedness of the Issuers and the Guarantors, including the Issuers’ existing 11.75% Senior Secured Notes due 2019 or the “Existing First Lien Notes,” 11.75% Secured Notes due 2019 or the “Existing 1.5 Lien Notes,” the Adjustable Second Lien Notes and the 8.75% Second Priority Senior Secured Notes due 2019 or the “Old Second Lien Notes;” (c) effectively pari passu with all existing first-priority secured indebtedness of the Issuers and the Guarantors under Verso Holdings’ senior secured credit facility and the related guarantees, including the Existing First Lien Notes and the related guarantees, to the extent of the value of the collateral securing such obligations; (d) effectively senior to all existing second-priority secured indebtedness of the Issuers and the Guarantors, including the Existing 1.5 Lien Notes and the Adjustable Second Lien Notes and the related guarantees, to the extent of the value of the collateral securing such obligations; (e) effectively senior to all existing and future unsecured indebtedness of the Issuers and the Guarantors, including the Old Second Lien Notes, the Old Subordinated Notes, and the Adjustable Subordinated Notes; and (f) effectively subordinated to all existing and future indebtedness, preferred stock and other liabilities of the Issuers’ non-guarantor subsidiaries, other than indebtedness, preferred stock and liabilities held by an Issuer or a Guarantor. | ||||||||||||||||||||||||
The Issuers will pay interest on the New First Lien Notes at a rate of 11.75% per annum, payable semiannually to holders of record at the close of business on January 1 or July 1 immediately preceding the interest payment date on January 15 and July 15 of each year, commencing July 15, 2015. The New First Lien Notes mature on January 15, 2019. | ||||||||||||||||||||||||
11.75% Secured Notes due 2019. In 2012, Verso Holdings issued $271.6 million aggregate principal amount of 11.75% Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 11.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings’ subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The notes and related guarantees are secured by security interests, subject to permitted liens, in substantially all of Verso Holdings’ and the guarantors’ tangible and intangible assets. The security interests securing the notes rank junior to those securing the obligations under the ABL Facility, the Cash Flow Facility, and the 11.75% Senior Secured Notes due 2019 and rank senior to those securing the 8.75% Second Priority Senior Secured Notes due 2019. The notes will mature on January 15, 2019. | ||||||||||||||||||||||||
Verso Holdings issued the notes pursuant to two separate exchange offers whereby it issued a total of $271.6 million aggregate principal amount of the notes and paid a total of $22.3 million in cash in exchange for $166.9 million aggregate principal amount of its Second Priority Senior Secured Floating Rate Notes due 2014 and for $157.5 million aggregate principal amount of the 11.38% Senior Subordinated Notes due 2016. Verso Holdings recognized a total gain of $26.3 million, net of the write-off of unamortized debt issuance costs, from the exchanges, which is included in Other loss, net in our accompanying consolidated statements of operations. Debt issuance costs of approximately $5.4 million were deferred and are being amortized over the life of the notes. | ||||||||||||||||||||||||
8.75% Second Priority Senior Secured Notes due 2019. In 2011, Verso Holdings issued $396.0 million aggregate principal amount of 8.75% Second Priority Senior Secured Notes due 2019. The notes bear interest, payable semi-annually, at the rate of 8.75% per year. The notes are guaranteed jointly and severally by each of Verso Holdings’ subsidiaries, subject to certain exceptions, and the notes and guarantees are senior secured obligations of Verso Holdings and the guarantors, respectively. The notes and related guarantees are secured by second priority liens, subject to permitted liens, on substantially all of Verso Holdings’ and the guarantors’ tangible and intangible assets, excluding securities of Verso Holdings’ affiliates. The notes mature on February 1, 2019. | ||||||||||||||||||||||||
Second Priority Adjustable Senior Secured Notes. On July 2, 2014, the Issuers commenced an offer to exchange their new Second Priority Adjustable Senior Secured Notes, or “New Second Lien Notes,” and warrants issued by Verso that were mandatorily convertible on a one-for-one basis into shares of Verso’s common stock immediately prior to the NewPage acquisition, or “Warrants,” for any and all of the Issuers’ outstanding 8.75% Second Priority Senior Secured Notes due 2019, or “Old Second Lien Notes” (we refer to this exchange offer as the “Second Lien Notes Exchange Offer”). On August 1, 2014, approximately $299.4 million aggregate principal amount of Old Second Lien Notes were tendered and accepted in exchange for a like amount of New Second Lien Notes and approximately 9.3 million Warrants in the Second Lien Notes Exchange Offer. The Warrants had no fair value at the date of the closing of the Second Lien Notes Exchange Offer. | ||||||||||||||||||||||||
Prior to the consummation of the NewPage acquisition, and as of December 31, 2014, the New Second Lien Notes had substantially the same terms as the Old Second Lien Notes in that the New Second Lien Notes had their original principal amount, bore interest at a rate of 8.75% per annum, had a maturity date of February 1, 2019, and were governed by covenants that are substantially the same as the covenants currently governing the Old Second Lien Notes. As of December 31, 2014, the accrued interest on the New Second Lien Notes was included in Accrued liabilities in our accompanying consolidated balance sheet. Subsequent to year end, as a result of the consummation of the NewPage acquisition, and effective as of the January 7, 2015, the provisions of the Adjustable Second Lien Notes were adjusted as follows: (a) the principal amount of the notes have been adjusted such that a holder of $1,000 principal amount of notes immediately prior to the NewPage acquisition now holds $593.75 principal amount of notes (any adjusted notes that do not bear an authorized denomination will be rounded down); (b) the maturity date of the notes has been extended from February 1, 2019, to August 1, 2020; (c) the interest rate has been adjusted such that the notes bear interest from and after January 7, 2015 at a rate of 10% per annum payable entirely in cash plus 3% per annum payable entirely by increasing the principal amount of the outstanding notes or by issuing additional notes; (d) the optional redemption provisions have been adjusted as provided in the indenture governing the notes; and (e) certain other terms and conditions of the notes have been modified as set forth in the Adjustable Second Lien Notes Indenture. As a result of the principal adjustment, the outstanding principal amount of the Adjustable Second Lien Notes was reduced by approximately $121.6 million from approximately $299.4 million before January 7, 2015, to approximately $177.7 million afterwards. | ||||||||||||||||||||||||
Second Priority Senior Secured Floating Rate Notes due 2014. In 2006, Verso Holdings issued $250.0 million aggregate principal amount of Second Priority Senior Secured Floating Rate Notes due 2014. As of December 31, 2013, Verso Holdings had repurchased and retired a total of $236.7 million aggregate principal amount of the notes. The notes matured on August 1, 2014. | ||||||||||||||||||||||||
11.38% Senior Subordinated Notes due 2016. In 2006, Verso Holdings issued $300 million aggregate principal amount of 11.38% Senior Subordinated Notes due 2016. As of December 31, 2014, Verso Holdings had repurchased and retired a total of $157.5 million aggregate principal amount of the notes. The notes bear interest, payable semi-annually, at the rate of 11.38% per year. The notes mature on August 1, 2016. | ||||||||||||||||||||||||
Adjustable Senior Subordinated Notes. On July 2, 2014, in accordance with the terms of the Merger Agreement, the Issuers also commenced an offer to exchange their new Adjustable Senior Subordinated Notes, or “New Subordinated Notes,” and Warrants for any and all of the Issuers’ outstanding 11.38% Senior Subordinated Notes due 2016, or “Old Subordinated Notes” (we refer to this exchange offer as the “Subordinated Notes Exchange Offer”). On August 1, 2014, approximately $102.0 million aggregate principal amount of Old Subordinated Notes were tendered and accepted in exchange for a like amount of New Subordinated Notes and approximately 5.4 million Warrants in the Subordinated Notes Exchange Offer. The Warrants had no fair value at the date of the closing of the Subordinated Notes Exchange Offer. | ||||||||||||||||||||||||
Prior to the consummation of the NewPage acquisition, and as of December 31, 2014, the New Subordinated Notes had substantially the same terms as the Old Subordinated Notes in that the New Subordinated Notes had their original principal amount, bore interest at a rate of 11.38% per annum, had a maturity date of August 1, 2016, and were governed by covenants that were substantially the same as the covenants currently governing the Old Subordinated Notes. Subsequent to year end, as a result of the consummation of the NewPage acquisition, and effective as of January 7, 2015, the provisions of the Adjustable Subordinated Notes were adjusted as follows: (a) the principal amount of the notes has been adjusted such that a holder of $1,000 principal amount of notes immediately prior to the NewPage acquisition now holds $620 principal amount of notes (any adjusted notes that do not bear an authorized denomination will be rounded down); (b) the maturity date of the notes has been extended from August 1, 2016, to August 1, 2020; (c) the interest rate has been adjusted such that the notes bear interest from and after the January 7, 2015 at a rate of 11% per annum payable entirely in cash plus 5% per annum payable entirely by increasing the principal amount of the outstanding notes or by issuing additional notes; (d) the optional redemption provisions have been adjusted as provided in the Adjustable Subordinated Notes Indenture; and (e) certain other terms and conditions of the notes have been modified as set forth in the Adjustable Subordinated Notes Indenture. As a result of the principal adjustment, the outstanding principal amount of the Adjustable Subordinated Notes was reduced by approximately $38.8 million from approximately $102.0 million before January 7, 2015, to approximately $63.2 million afterwards. | ||||||||||||||||||||||||
In connection with the Second Lien Notes Exchange Offer and the Subordinated Notes Exchange Offer, the Issuers solicited and received consents to amend the Old Second Lien Notes, the Old Subordinated Notes, and the indentures governing such notes in order to (a) eliminate or waive substantially all of the restrictive covenants contained in the indentures governing such notes, (b) eliminate certain events of default, (c) modify covenants regarding mergers and consolidations, and (d) modify or eliminate certain other provisions, including, in some cases, certain provisions relating to defeasance, contained in such indentures and such notes. In addition, the Issuers solicited and received consents to release the liens and security interests in the collateral securing the Old Second Lien Notes. We refer to the Second Lien Notes Exchange Offer, the Subordinated Notes Exchange Offer, and the transactions in connection therewith collectively as the “Exchange Offers.” Accrued debt issuance costs related to the Exchange Offers of approximately $6.1 million were expensed as incurred and are recorded in Other loss, net on the accompanying consolidated statements of operations. | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC/ Verso Paper Holdings LLC. In 2010, Verso Quinnesec REP LLC, an indirect, wholly-owned subsidiary of Verso Holdings, entered into a financing transaction with Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” a consolidated variable interest entity. Under this arrangement, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain community development entities, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC as partial financing for the renewable energy project at our mill in Quinnesec, Michigan. | ||||||||||||||||||||||||
The scheduled principal payments required under the debt listed above during the years following December 31, 2014, are set forth below (Amounts are prior to the financing transactions described in Note 24): | ||||||||||||||||||||||||
(Dollars in thousands) | VERSO | VERSO | ||||||||||||||||||||||
HOLDINGS | ||||||||||||||||||||||||
2015 | 30,000 | 30,000 | ||||||||||||||||||||||
2016 | 142,500 | 142,500 | ||||||||||||||||||||||
2017 | 63,000 | 63,000 | ||||||||||||||||||||||
2018 | — | — | ||||||||||||||||||||||
2019 | 1,085,455 | 1,085,455 | ||||||||||||||||||||||
2020 and thereafter | — | 23,305 | ||||||||||||||||||||||
Total debt | $ | 1,320,955 | $ | 1,344,260 | ||||||||||||||||||||
At December 31, 2014, we were in compliance with the covenants in our debt agreements. |
OTHER_LIABILITIES
OTHER LIABILITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||
OTHER LIABILITIES | OTHER LIABILITIES | |||||||||||||||
Other liabilities consist of the following: | ||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Pension benefit obligation | $ | 40,584 | $ | 25,231 | $ | 40,584 | $ | 25,231 | ||||||||
Non-controlling interests | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Asset retirement obligations | 7,515 | 12,708 | 7,515 | 12,708 | ||||||||||||
Deferred income taxes | 3,779 | 6,174 | — | — | ||||||||||||
Deferred compensation | 3,670 | 3,495 | 3,670 | 3,495 | ||||||||||||
Other | 830 | 1,068 | 830 | 1,068 | ||||||||||||
Other liabilities | $ | 64,301 | $ | 56,599 | $ | 60,522 | $ | 50,425 | ||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE | |||||||||||
The following table provides a reconciliation of Verso’s basic and diluted loss per common share: | ||||||||||||
VERSO | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Net income (loss) available to common shareholders | $ | (352,955 | ) | $ | (111,206 | ) | $ | (173,829 | ) | |||
Weighted average common stock outstanding | 52,835 | 52,583 | 52,365 | |||||||||
Weighted average restricted stock | 458 | 541 | 485 | |||||||||
Weighted average common shares outstanding - basic | 53,293 | 53,124 | 52,850 | |||||||||
Dilutive shares from stock options | — | — | — | |||||||||
Weighted average common shares outstanding - diluted | 53,293 | 53,124 | 52,850 | |||||||||
Basic loss per share | $ | (6.62 | ) | $ | (2.09 | ) | $ | (3.29 | ) | |||
Diluted loss per share | $ | (6.62 | ) | $ | (2.09 | ) | $ | (3.29 | ) | |||
In accordance with ASC Topic 260, Earnings Per Share, unvested restricted stock awards issued by Verso contain nonforfeitable rights to dividends and qualify as participating securities. No dividends have been declared or paid in 2014, 2013, or 2012. | ||||||||||||
For 2014, 6,628,268 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $2.58 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. For 2013, 4,344,628 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $2.40 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. For 2012, 3,033,282 weighted average potentially dilutive shares from stock options with a weighted average exercise price per share of $2.85 were excluded from the diluted earnings per share calculation due to the antidilutive effect such shares would have on net loss per common share. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS | |||||||||||||||
Defined Benefit Plan | ||||||||||||||||
We maintain defined benefit pension plans that provide retirement benefits for certain current and former hourly employees. Employees hired after June 30, 2004, who are not eligible to participate in the pension plans receive an additional company contribution to their accounts under our 401(k) savings plan (see “Other Benefits” discussion below). The pension plans provide defined benefits based on years of credited service times a specified flat dollar benefit rate. | ||||||||||||||||
During 2014, a curtailment loss of approximately $1.0 million was recognized in Restructuring charges in the consolidated statements of operations due to a reduction in headcount associated with the closure of the Bucksport mill. The curtailment loss included $0.5 million of amortization of prior service cost and a net actuarial loss of $0.5 million. | ||||||||||||||||
During 2012, a curtailment loss of approximately $1.5 million was recognized in Restructuring charges in the consolidated statements of operations due to a reduction in headcount associated with the closure of the former Sartell mill. The curtailment loss included $0.6 million of amortization of prior service cost and a net actuarial loss of $0.9 million. | ||||||||||||||||
The following table summarizes the components of net periodic pension cost for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 5,747 | $ | 6,613 | $ | 7,082 | ||||||||||
Interest cost | 3,678 | 3,115 | 2,876 | |||||||||||||
Expected return on plan assets | (3,617 | ) | (3,303 | ) | (2,791 | ) | ||||||||||
Amortization of prior service cost | 651 | 651 | 740 | |||||||||||||
Amortization of actuarial loss | 195 | 1,631 | 1,648 | |||||||||||||
Curtailment | 982 | — | 1,517 | |||||||||||||
Net periodic pension cost | $ | 7,636 | $ | 8,707 | $ | 11,072 | ||||||||||
The following table provides detail on prior service cost and net actuarial loss recognized in Accumulated other comprehensive loss at December 31, 2014 and 2013: | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||
Amounts recognized in Accumulated other comprehensive loss: | ||||||||||||||||
Prior service cost | $ | 756 | $ | 1,923 | ||||||||||||
Net actuarial loss | 26,361 | 9,512 | ||||||||||||||
The estimated net actuarial loss and prior service cost that will be amortized from Accumulated other comprehensive loss into net periodic pension cost during 2015 is $2.0 million and $0.4 million, respectively. | ||||||||||||||||
We make contributions that are sufficient to fully fund our actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act, or “ERISA.” We made contributions to the pension plans of $8.0 million in 2014, $0.4 million in 2013, and $10.7 million in 2012. In 2015, we expect to make cash contributions of approximately $5.2 million to the pension plans. We may also be required to make additional contributions as a result of the closure of the Bucksport and Sartell mills. We expect no plan assets to be returned to the Company in 2015. | ||||||||||||||||
The following table sets forth a reconciliation of the plans’ benefit obligation, plan assets and funded status at December 31, 2014 and 2013: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||
Change in Projected Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 78,701 | $ | 81,944 | ||||||||||||
Service cost | 5,747 | 6,613 | ||||||||||||||
Interest cost | 3,678 | 3,115 | ||||||||||||||
Actuarial loss (gain) | 17,493 | (10,472 | ) | |||||||||||||
Benefits paid | (2,922 | ) | (2,499 | ) | ||||||||||||
Curtailment | 465 | — | ||||||||||||||
Benefit obligation on December 31 | $ | 103,162 | $ | 78,701 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Plan assets at fair value, beginning of fiscal year | $ | 53,470 | $ | 51,528 | ||||||||||||
Actual net return on plan assets | 4,065 | 4,052 | ||||||||||||||
Employer contributions | 7,965 | 389 | ||||||||||||||
Benefits paid | (2,922 | ) | (2,499 | ) | ||||||||||||
Plan assets at fair value on December 31 | $ | 62,578 | $ | 53,470 | ||||||||||||
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | $ | (40,584 | ) | $ | (25,231 | ) | ||||||||||
The accumulated benefit obligation at December 31, 2014 and 2013, is $103.2 million and $78.7 million, respectively. | ||||||||||||||||
The following table summarizes expected future pension benefit payments: | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2015 | $ | 2,607 | ||||||||||||||
2016 | 2,887 | |||||||||||||||
2017 | 3,196 | |||||||||||||||
2018 | 3,589 | |||||||||||||||
2019 | 4,048 | |||||||||||||||
2020-2024 | 28,277 | |||||||||||||||
We evaluate our actuarial assumptions annually as of December 31 (the measurement date) and consider changes in these long-term factors based upon market conditions and the requirements of ASC Topic 715. These assumptions are used to calculate benefit obligations as of December 31 of the current year, and pension expense to be recorded for the following year. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the plans’ liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the plans’ liabilities. | ||||||||||||||||
The actuarial assumptions used in the defined benefit pension plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||||||||||||||
Discount rate | 3.83 | % | 4.75 | % | 3.8 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||||||||||||||
Discount rate | 4.75 | % | 3.84 | % | 4.3 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Expected long-term return on plan assets | 6.5 | % | 6.5 | % | 6.5 | % | ||||||||||
During 2014, the Company adopted the Society of Actuaries RP-2014 mortality tables in the calculation of our pension benefit obligation as of December 31, 2014, resulting in approximately $4 million of additional actuarial loss in the benefit obligation and accumulated other comprehensive income. The remaining increase in actuarial loss in 2014 is primarily attributable to the decline in the discount rate from the rate used in the 2013 calculation of the pension benefit obligation. | ||||||||||||||||
The following table provides the pension plans’ asset allocation on December 31, 2014 and 2013: | ||||||||||||||||
Allocation of Plan Assets | ||||||||||||||||
2014 | Allocation on | 2013 | Allocation on | |||||||||||||
Targeted Allocation | 31-Dec-14 | Targeted Allocation | 31-Dec-13 | |||||||||||||
Other securities: | 55-60% | 60% | ||||||||||||||
Fixed income funds | 44 | % | 48 | % | ||||||||||||
Other funds | 11 | % | 10 | % | ||||||||||||
Equity securities: | 40-45% | 40% | ||||||||||||||
Domestic equity funds - large cap | 27 | % | 24 | % | ||||||||||||
Domestic equity funds - small cap | 12 | % | 12 | % | ||||||||||||
International equity funds | 6 | % | 6 | % | ||||||||||||
ASC Topic 820 provides a common definition of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities (see Note 15 – Fair Value of Financial Instruments for more detail). The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of December 31, 2014 and 2013. | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | ||||||||||||||||
Fixed income funds | $ | 27,810 | $ | 27,810 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 16,814 | 16,814 | — | — | ||||||||||||
Domestic equity funds - small cap | 7,569 | 7,569 | — | — | ||||||||||||
International equity funds | 3,534 | 3,534 | — | — | ||||||||||||
Other funds | 6,851 | 6,851 | — | — | ||||||||||||
Total assets at fair value | $ | 62,578 | $ | 62,578 | $ | — | $ | — | ||||||||
December 31, 2013 | ||||||||||||||||
Fixed income funds | $ | 25,764 | $ | 25,764 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 13,086 | 13,086 | — | — | ||||||||||||
Domestic equity funds - small cap | 6,214 | 6,214 | — | — | ||||||||||||
International equity funds | 3,167 | 3,167 | — | — | ||||||||||||
Other funds | 5,239 | 5,239 | — | — | ||||||||||||
Total assets at fair value | $ | 53,470 | $ | 53,470 | $ | — | $ | — | ||||||||
Fair value is determined based on the net asset value of units held by the plan at period end. | ||||||||||||||||
Our primary investment objective is to ensure, over the long-term life of the pension plans, an adequate pool of sufficiently liquid assets to support the benefit obligations. In meeting this objective, the pension plans seek to achieve a high level of investment return through long-term stock and bond investment strategies, consistent with a prudent level of portfolio risk. Any volatility in investment performance compared to investment objectives should be explainable in terms of general economic and market conditions. Our targeted pension fund asset allocation was updated during the fourth quarter of 2014. The expected return on plan assets assumption for 2015 will be 6.50 percent. The expected long-term rate of return on plan assets reflects the weighted-average expected long-term rates of return for the broad categories of investments currently held in the plans (adjusted for expected changes), based on historical rates of return for each broad category, as well as factors that may constrain or enhance returns in the broad categories in the future. The expected long-term rate of return on plan assets is adjusted when there are fundamental changes in expected returns in one or more broad asset categories and when the weighted-average mix of assets in the plans changes significantly. | ||||||||||||||||
Defined Contribution Plan | ||||||||||||||||
We sponsor a defined contribution plan to provide salaried, Quinnesec hourly, and certain Bucksport hourly employees an opportunity to accumulate personal funds and to provide additional benefits for retirement. | ||||||||||||||||
As determined by the provisions of the plan, we contribute annually a percentage of employee earnings. The percentage is based on age and years of credited service for employees who were hired prior to July 1, 2004 and a fixed percentage of earnings to employees who were hired after June 30, 2004. Expense under this plan was $4.9 million, $4.8 million, and $5.6 million for the years ended December 31, 2014, 2013, and 2012 respectively. | ||||||||||||||||
Other Benefits | ||||||||||||||||
We sponsor a 401(k) plan to provide salaried and hourly employees an opportunity to accumulate personal funds and to provide additional benefits for retirement. Employee contributions may be made on a before-tax or after-tax basis to the plan. Employer matching contributions under the plan were $6.7 million for each of the years ended December 31, 2014 and 2013, and $7.2 million for the year ended December 31, 2012. |
EQUITY_AWARDS
EQUITY AWARDS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
EQUITY AWARDS | EQUITY AWARDS | ||||||||||||||||
Verso’s Amended and Restated 2008 Incentive Award Plan, or the “Incentive Plan,” authorizes the issuance of stock awards covering up to 11,000,000 shares of our common stock. Under the Incentive Plan, stock awards may be granted to employees, consultants, and directors upon approval by the board of directors. | |||||||||||||||||
We have issued non-qualified stock options to certain non-employee directors that vest upon grant and expire 10 years from the date of grant. We also have issued time-based non-qualified stock options to officers and management employees in 2014, 2013, and 2012. The time-based options vest one to three years from the date of grant and expire seven years from the date of grant. | |||||||||||||||||
A summary of stock option plan activity (including the performance-based options) for the years ended December 31, 2014, 2013, and 2012 is provided below: | |||||||||||||||||
Options | Weighted | Weighted | Weighted | Aggregate | |||||||||||||
Outstanding | Average | Average | Average | Intrinsic | |||||||||||||
Exercise | Grant Date | Remaining | Value | ||||||||||||||
Price | Fair Value | Contractual | (in thousands) | ||||||||||||||
Life (in years) | |||||||||||||||||
31-Dec-11 | 1,781,499 | $ | 3.9 | $ | 2.59 | ||||||||||||
Options granted | 2,193,701 | 1.46 | 1.07 | ||||||||||||||
Forfeited | (90,007 | ) | 3.48 | 2.52 | |||||||||||||
31-Dec-12 | 3,885,193 | 2.53 | 1.73 | ||||||||||||||
Options granted | 564,442 | 1.29 | 0.93 | ||||||||||||||
Forfeited | (15,929 | ) | 1.53 | 1.09 | |||||||||||||
31-Dec-13 | 4,433,706 | 2.38 | 1.63 | ||||||||||||||
Options granted | 2,072,108 | 2.98 | 2.34 | ||||||||||||||
Exercised | (41,828 | ) | 2.51 | 1.73 | |||||||||||||
31-Dec-14 | 6,463,986 | $ | 2.57 | $ | 1.86 | 4.6 | |||||||||||
Options exercisable on December 31, 2014 | 3,297,814 | $ | 2.7 | 3.3 | $ | 3,571 | |||||||||||
Options expected to vest as of December 31, 2014 | 3,166,172 | 2.43 | 3,158 | ||||||||||||||
On December 31, 2014, options outstanding had exercise prices ranging from $0.71 to $5.93 and options exercisable had exercise prices ranging from $0.71 to $5.93. | |||||||||||||||||
We used the Black-Scholes option pricing model to estimate the fair value of stock options granted in 2014, 2013, and 2012, with the following assumptions: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected weighted-average life of options granted | 4.5 years | 4.5 years | 3.0 - 5.0 years | ||||||||||||||
Range of volatility rates based on historical industry volatility | 115.45% - 116.47% | 100.52% | 94.39% - 102.22% | ||||||||||||||
Range of risk-free interest rates | 1.66% - 1.74% | 0.81% | .57% - .83% | ||||||||||||||
Expected dividend yield | — | — | — | ||||||||||||||
Based on our limited exercise history, we use the simplified method of calculating expected lives of options granted per ASC Topic 718-10-S99. Expected volatility is estimated using historical industry volatility blended with Verso’s historical volatility. The dividend yield is assumed to be zero since we have no current plans to declare dividends. The risk-free interest rates are based on the market yield of U.S. Treasury securities. | |||||||||||||||||
On December 31, 2014, there was $5.0 million of unrecognized compensation cost related to stock options which is expected to be recognized over a weighted-average period of approximately 2.1 years. For the years presented, the total intrinsic value of options exercised, cash received and tax benefits realized from options exercised were immaterial to Verso’s consolidated financial statements. | |||||||||||||||||
In 2014, Verso issued 146,155 restricted stock awards to its executives, directors, and certain senior managers with a weighted-average grant date fair value of $3.07 per share, based on the closing market price of our common stock on the date of grant. Verso also issued 295,336 and 320,414 restricted stock awards to its executives and senior management in 2013 and 2012, respectively. The 2013 and 2012, restricted stock awards had weighted average grant date fair values of $1.29 and $1.20, respectively, which was equal to the closing market price of our common stock on the date of grant. The restrictions lapse in equal annual installments on each of the first three anniversaries of the date of grant. As of December 31, 2014, there was $0.5 million of unrecognized compensation cost related to restricted stock awards which is expected to be recognized over a weighted-average period of approximately 1.3 years. The restrictions on these shares automatically lapse in the event of a change of control as defined in the Incentive Plan. | |||||||||||||||||
We recognized equity award expense of $1.8 million for each of the years ended December 31, 2014, and 2013 and $2.7 million for the year ended December 31, 2012. |
BUCKSPORT_ENERGY_ASSET_INVESTM
BUCKSPORT ENERGY ASSET INVESTMENT | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
BUCKSPORT ENERGY ASSET INVESTMENT | BUCKSPORT ENERGY ASSET INVESTMENT | |||
On February 28, 2014, Verso Bucksport Power LLC, an indirect, wholly owned subsidiary of Verso, purchased from Bucksport Energy LLC, for nominal consideration, its 72% undivided interest in the cogeneration power plant located at our Bucksport mill. Following the transaction, Verso owned, through two of our subsidiaries, the entire ownership interest in the cogeneration power plant. The acquisition was recorded as a step acquisition at the preliminary fair value of the cogeneration power plant in accordance with ASC 805, Business Combinations. The assets of Verso Bucksport Power LLC, are included in Assets held for sale in the accompanying consolidated balance sheet as of December 31, 2014 (see Note 4). On January 29, 2015, Verso closed the sale of substantially all of the assets at our Bucksport mill including the assets of Verso Bucksport Power LLC (see Note 24). | ||||
Prior to February 28, 2014, we had a joint ownership interest with Bucksport Energy LLC in the cogeneration power plant producing steam and electricity. Each co-owner owned an undivided proportional share of the plant’s assets, and we accounted for this investment under the proportional consolidation method. We owned 28% of the steam and electricity produced by the plant and had the ability to purchase our remaining electrical needs from the plant at market rates. We were obligated to purchase the remaining 72% of the steam output from the plant at fuel cost plus a contractually fixed fee per unit of steam. Power generation and operating expenses were divided on the same basis as ownership, and were reflected in Cost of products sold in our accompanying consolidated statements of operations. | ||||
Balances included in the balance sheet related to our proportional interest in this investment at December 31, 2013, were as follows: | ||||
(Dollars in thousands) | ||||
Other receivables | $ | 281 | ||
Other assets(1) | 214 | |||
Property, plant, and equipment | $ | 10,692 | ||
Accumulated depreciation | (4,668 | ) | ||
Net property, plant, and equipment | $ | 6,024 | ||
Current liabilities | $ | (83 | ) | |
(1) Represents primarily restricted cash which may be used only to fund the ongoing energy operations of this investment. | ||||
In addition to the ownership interest, we were required to maintain an account for our portion of expected major maintenance activities of the plant. As of December 31, 2013, there was $2.3 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheets related to the maintenance account. |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGES | DERIVATIVE INSTRUMENTS AND HEDGES | |||||||||||||||||||||||
In the normal course of business, we utilize derivatives contracts as part of our risk management strategy to manage our exposure to market fluctuations in energy prices. These instruments are subject to credit and market risks in excess of the amount recorded on the balance sheet in accordance with GAAP. Controls and monitoring procedures for these instruments have been established and are routinely reevaluated. Credit risk represents the potential loss that may occur because a party to a transaction fails to perform according to the terms of the contract. The measure of credit exposure is the replacement cost of contracts with a positive fair value. We manage credit risk by entering into financial instrument transactions only through approved counterparties. Market risk represents the potential loss due to the decrease in the value of a financial instrument caused primarily by changes in commodity prices. We manage market risk by establishing and monitoring limits on the types and degree of risk that may be undertaken. | ||||||||||||||||||||||||
Derivative instruments are recorded on the balance sheet as other assets or other liabilities measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. For a cash flow hedge accounted for under ASC Topic 815, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in Accumulated other comprehensive loss and are subsequently reclassified to earnings as the hedged transaction impacts net income. Any ineffective portion of a cash flow hedge is recognized currently in earnings. For hedges that are entered into as economic hedges, but not accounted for under ASC Topic 815, changes in the fair value of the derivative instrument are recorded in Cost of products sold in the current period. Cash flows from derivative contracts are reported as operating activities on the consolidated statements of cash flows. | ||||||||||||||||||||||||
We enter into fixed-price energy swaps as hedges designed to mitigate the risk of changes in commodity and delivery prices for future forecasted purchase commitments. These fixed-price swaps involve the exchange of net cash settlements, based on changes in the price of the underlying commodity index compared to the fixed price offering, at specified intervals without the exchange of any underlying principal. Historically, we designated our energy hedging relationships as cash flow hedges under ASC Topic 815 with net gains or losses attributable to effective hedging recorded in Accumulated other comprehensive loss and any ineffectiveness recognized in Cost of products sold. | ||||||||||||||||||||||||
One of the requirements that must be evaluated when determining whether a contract qualifies for hedge accounting treatment is whether or not the contract is deemed effective. A contract is deemed effective if the change in the fair value of the derivative contract offsets, within a specified range, the change in the anticipated cash flows of the hedged transaction. The effectiveness of a hedging relationship must be tested at inception and quarterly thereafter. If the relationship fails this test at any time, hedge accounting treatment must be discontinued prospectively. The requirements necessary to apply hedge accounting are complex and must be documented at the inception as well as throughout the term of the contract. If we fail to accurately document these requirements, the contract is not eligible for hedge accounting treatment. The accompanying financial statements reflect the discontinuation of hedge accounting for certain contracts that failed to qualify for hedge accounting during the first quarter of 2012. Additionally, effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. As a result, all gains and losses from changes in the fair value of our derivative contracts subsequent to March 31, 2012, are recognized immediately in Cost of products sold. Prior to March 31, 2012, to the extent the hedge was effective, the change in fair value was deferred through Accumulated other comprehensive loss. The amount recorded in Accumulated other comprehensive loss at the time a contract is de-designated is reclassified into Cost of products sold when the forecasted transaction occurs, or sooner if management determines that the forecasted transaction is probable of not occurring. Energy swaps continue to be utilized as economic hedges designed to mitigate the risk of changes in commodity and delivery prices for future energy purchase commitments. | ||||||||||||||||||||||||
The following table presents information about the volume and fair value amounts of our derivative instruments: | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | MMBTUs | Fair Value | MMBTUs | Fair Value | ||||||||||||||||||||
Assets/(Liabilities) | Assets/(Liabilities) | |||||||||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps: | ||||||||||||||||||||||||
Notional amount | 1,876,475 | 6,652,070 | ||||||||||||||||||||||
Prepaid expenses and other assets | $ | — | $ | 15,505 | ||||||||||||||||||||
Accrued liabilities | (6,268 | ) | (4,959 | ) | ||||||||||||||||||||
The following tables present information about the effect of our derivative instruments on Accumulated other comprehensive income and the consolidated statements of operations: | ||||||||||||||||||||||||
Loss Recognized | Loss Reclassified | |||||||||||||||||||||||
in Accumulated OCI | from Accumulated OCI | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | — | $ | (1,365 | ) | $ | — | $ | — | $ | (283 | ) | ||||||||||
Derivative contracts not currently designated as hedging instruments: | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (335 | ) | $ | (5,573 | ) | ||||||||||||||||
Loss reclassified from Accumulated OCI to earnings is included in Cost of products sold. | ||||||||||||||||||||||||
Gain (Loss) Recognized on Derivatives | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | — | $ | (50 | ) | |||||||||||||||||
Derivative contracts not currently designated as hedging instruments: | ||||||||||||||||||||||||
Fixed price energy swaps | $ | 4,290 | $ | 16,117 | $ | (2,973 | ) | |||||||||||||||||
Gain (loss) recognized on derivatives is included in Cost of products sold. | ||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||
We use fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Fair value is generally defined as the exit price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties, other than in a forced or liquidation sale. | ||||||||||||||||
The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | ||||||||||||||||
▪ | Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||
▪ | Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. | |||||||||||||||
▪ | Level 3: Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date. | |||||||||||||||
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Investments related to deferred compensation plans | $ | 3,670 | $ | 3,670 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 6,268 | $ | — | $ | 6,268 | $ | — | ||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity swaps | $ | 15,505 | $ | — | $ | 15,505 | $ | — | ||||||||
Investments related to deferred compensation plans | 3,495 | 3,495 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,959 | $ | — | $ | 4,959 | $ | — | ||||||||
Fair values are based on observable market data. | ||||||||||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
Management Agreement — In connection with the acquisition of our business from International Paper Company on August 1, 2006, we entered into a management agreement with certain affiliates of Apollo Global Management, LLC, or “Apollo,” our majority owner, relating to the provision of certain financial and strategic advisory services and consulting services, which will expire on August 1, 2018. Under the management agreement, at any time prior to the expiration of the agreement, Apollo has the right to act, in return for additional fees to be mutually agreed by the parties to the management agreement, as our financial advisor or investment banker for any merger, acquisition, disposition, financing or the like if we decide to engage someone to fill such role. In the event that we are not able to come to an agreement with Apollo in connection with such role, at the closing of any merger, acquisition, disposition or financing or any similar transaction, we have agreed to pay Apollo a fee equal to 1% of the aggregate enterprise value (including the aggregate value of equity securities, warrants, rights and options acquired or retained; indebtedness acquired, assumed or refinanced; and any other consideration or compensation paid in connection with such transaction). We agreed to indemnify Apollo and its affiliates and their directors, officers and representatives for losses relating to the services contemplated by the management agreement and the engagement of affiliates of Apollo pursuant to, and the performance by them of the services contemplated by, the management agreement. We made no payments to Apollo related to the management agreement in 2014, 2013, or 2012. | |
Distributions to Verso Finance — In 2013, Verso Holdings exchanged $85.8 million of the outstanding principal and accrued interest on the Senior Unsecured Term Loans for $72.9 million of 11.75% Senior Secured Notes due 2019. The principal and interest of the Senior Unsecured Term Loans remaining after the exchange was funded through cash payments by Verso Holdings. These transactions are reflected as a $94.9 million Return of capital in Verso Holdings’ statement of member’s equity. | |
Verso Quinnesec Renewable Energy Project — In 2010, Verso Quinnesec REP LLC, an indirect, wholly owned subsidiary of Verso Holdings, entered into a financing transaction with Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” a consolidated variable interest entity (see Note 20 – New Market Tax Credit Entities). Under this arrangement, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain community development entities, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC as partial financing for the renewable energy project at our mill in Quinnesec, Michigan. As of both December 31, 2014, and 2013, Verso Holdings had a $23.3 million long-term receivable due from Verso Finance, representing these funds and accrued interest receivable of $0.1 million, while the Investment Fund had an outstanding loan of $23.3 million due to Verso Finance and accrued interest payable of $0.1 million. In addition, for each of the years ended December 31, 2014, 2013, and 2012, Verso Holdings recognized interest income from Verso Finance of $1.5 million and the Investment Fund recognized interest expense to Verso Finance of $1.5 million. | |
Verso — Verso Holdings has made distributions to pay expenses on behalf of Verso. Distributions were negligible for 2014 and 2012 and $0.1 million for 2013. In 2014, Verso contributed $0.7 million to Verso Holdings and in 2012, Verso forgave $0.8 million of advances made during prior years to Verso Holdings which was treated as a capital contribution from a parent. |
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES | |||||||||||
On October 1, 2014, Verso announced plans to close our paper mill in Bucksport, Maine, and we ceased paper manufacturing operations in December 2014. The mill closure reduced Verso’s coated groundwood paper production capacity by approximately 350,000 tons and its specialty paper production capacity by approximately 55,000 tons. | ||||||||||||
The following table details the charges incurred related primarily to the Bucksport mill closure in 2014 as included in Restructuring charges on our accompanying consolidated statements of operations: | ||||||||||||
(Dollars in thousands) | Year Ended December 31, 2014 | Cumulative | ||||||||||
Incurred | ||||||||||||
Property and equipment | $ | 88,728 | $ | 88,728 | ||||||||
Severance and benefit costs | 26,812 | 26,812 | ||||||||||
Write-off of spare parts, inventory and other assets | 13,876 | 13,876 | ||||||||||
Write-off of purchase obligations and commitments | 1,531 | 1,531 | ||||||||||
Other miscellaneous costs | 3,539 | 3,539 | ||||||||||
Total restructuring charges | $ | 134,486 | $ | 134,486 | ||||||||
The mill closure is expected to result in total pre-tax cash severance and other shutdown charges of approximately $40-45 million to be recorded in 2014 and 2015, and the amounts incurred in 2014 are reflected in restructuring charges as of December 31, 2014. The estimated cash charges consist of approximately $30 million in severance costs and personnel costs and approximately $10-15 million in other shutdown costs. | ||||||||||||
Costs associated with shutdown activities are based on currently available information and reflect management’s best estimates; accordingly, actual cash costs and non-cash charges and their timing may differ from the estimates stated above. | ||||||||||||
During 2012, we experienced a fire and explosion at our paper mill in Sartell, Minnesota. We completed a comprehensive assessment of the damage resulting from the fire and explosion and announced the decision to permanently close the mill in the 3rd quarter of 2012. | ||||||||||||
The following table details the charges incurred related primarily to the mill closure in 2012 as included in Restructuring charges in our accompanying consolidated statements of operations: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | Cumulative | |||||||||
Incurred | ||||||||||||
Property and equipment | $ | — | $ | 66,521 | $ | 66,521 | ||||||
Severance and benefit costs | 688 | 19,373 | 20,061 | |||||||||
Write-off of spare parts and inventory | — | 6,934 | 6,934 | |||||||||
Trademark impairment | — | 3,693 | 3,693 | |||||||||
Purchase obligations and commitments | (594 | ) | 2,420 | 1,826 | ||||||||
Other miscellaneous costs | 1,284 | 3,463 | 4,747 | |||||||||
Total restructuring charges | $ | 1,378 | $ | 102,404 | $ | 103,782 | ||||||
The following details the changes in our associated restructuring reserve liabilities during the years ended December 31, 2014 and 2013, which are included in Accrued liabilities on our consolidated balance sheets: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Beginning balance of reserve | $ | — | $ | 5,098 | ||||||||
Severance and benefit costs | 25,768 | 196 | ||||||||||
Severance and benefit payments | (3,118 | ) | (3,678 | ) | ||||||||
Purchase obligations | 1,531 | — | ||||||||||
Payments on purchase obligations | — | (561 | ) | |||||||||
Severance and benefit reserve adjustments | — | (461 | ) | |||||||||
Purchase obligation reserve adjustments | — | (594 | ) | |||||||||
Ending balance of reserve | $ | 24,181 | $ | — | ||||||||
Severance and benefit costs incurred in excess of severance and benefits costs accrued in 2014 consist primarily of $1.0 million of pension expenses. In 2013, severance and benefit costs incurred in excess of severance and benefits costs accrued were primarily the result of $0.5 million of salaries and benefit costs for employees continuing to provide services. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||
The following is a summary of the components of the (benefit) provision for income taxes for Verso: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current tax provision (benefit): | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
U.S. state and local | (594 | ) | 38 | (96 | ) | |||||||
Total current tax provision (benefit) | (594 | ) | 38 | (96 | ) | |||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | (111,899 | ) | (120,029 | ) | (58,563 | ) | ||||||
U.S. state and local | (14,371 | ) | (12,621 | ) | (6,486 | ) | ||||||
Total deferred tax (benefit) provision | (126,270 | ) | (132,650 | ) | (65,049 | ) | ||||||
Less: valuation allowance | 123,875 | 132,050 | 63,721 | |||||||||
Total income tax (benefit) provision | $ | (2,989 | ) | $ | (562 | ) | $ | (1,424 | ) | |||
A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Tax at Statutory U.S. Rate of 34% | $ | (121,019 | ) | $ | (38,001 | ) | $ | (59,586 | ) | |||
Increase resulting from: | ||||||||||||
Nondeductible transaction costs | 9,274 | 1,756 | — | |||||||||
Meals and entertainment | 173 | 173 | 197 | |||||||||
Nondeductible lobbying expenses | 162 | 80 | 46 | |||||||||
Disallowed compensation | — | — | 680 | |||||||||
Other disallowed expenses | 3 | 4 | 36 | |||||||||
Net permanent differences | 9,612 | 2,013 | 959 | |||||||||
Valuation allowance | 123,875 | 132,050 | 63,721 | |||||||||
Benefit from change in prior tax position | — | (93,039 | ) | — | ||||||||
State income taxes (benefit) | (14,763 | ) | (3,740 | ) | (6,550 | ) | ||||||
Other | (694 | ) | 155 | 32 | ||||||||
Total income tax (benefit) provision | $ | (2,989 | ) | $ | (562 | ) | $ | (1,424 | ) | |||
The following is a summary of the significant components of our deferred tax position: | ||||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | $ | 479,569 | $ | 417,536 | ||||||||
Pension | 14,547 | 9,606 | ||||||||||
Payment-in-kind interest | 10,142 | 10,211 | ||||||||||
Compensation reserves | 10,025 | 8,348 | ||||||||||
Inventory reserves | 9,875 | 7,546 | ||||||||||
Inventory capitalization | 3,343 | 2,885 | ||||||||||
Capitalized expenses | 5,143 | — | ||||||||||
Bad debt reserves | 761 | 841 | ||||||||||
Other | 2,230 | 2,046 | ||||||||||
Gross deferred tax assets | 535,635 | 459,019 | ||||||||||
Less: valuation allowance | (453,729 | ) | (323,335 | ) | ||||||||
Deferred tax assets, net of allowance | $ | 81,906 | $ | 135,684 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant, and equipment | $ | (52,183 | ) | $ | (100,507 | ) | ||||||
Cancellation of debt income deferral | (17,335 | ) | (21,878 | ) | ||||||||
Deferred repair charges | (7,631 | ) | (6,188 | ) | ||||||||
Intangible assets | (5,578 | ) | (8,241 | ) | ||||||||
Unrealized hedge income | (345 | ) | (4,046 | ) | ||||||||
Prepaid expenses | (2,613 | ) | (998 | ) | ||||||||
Total deferred tax liabilities | (85,685 | ) | (141,858 | ) | ||||||||
Net deferred tax liabilities | $ | (3,779 | ) | $ | (6,174 | ) | ||||||
The valuation allowance for deferred tax assets as of December 31, 2014, 2013, and 2012 was $453.7 million, $323.3 million, and $195.7 million, respectively. The increase in the valuation allowance in 2014 of $130.4 million is primarily attributable to additional federal and state losses incurred during 2014. The increase in the valuation allowance in 2013 of $127.6 million was primarily attributable to additional federal and state net operating loss carryforwards for alternative fuel credits taken as taxable income in 2009 and 2010 that have since been deemed nontaxable. It is less than more likely than not Verso will realize these carryforward benefits in the future. | ||||||||||||
Income tax benefits related to the pension prior service liability have been credited to other comprehensive income. The benefits have been reduced by a valuation allowance of $6.5 million. | ||||||||||||
Verso’s policy is to record interest paid with respect to income taxes as interest expense or interest income, respectively, in the consolidated statements of operations. | ||||||||||||
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on our lack of historical earnings, management believes it is more likely than not that Verso will not realize the benefits of those deductible differences. | ||||||||||||
Verso has federal net operating loss carryforwards totaling approximately $1,271.7 million on December 31, 2014, which begin to expire for the tax year 2025. | ||||||||||||
Verso has state net operating loss carryforwards totaling approximately $846.8 million on December 31, 2014, which begin to expire for the tax year 2015. | ||||||||||||
Verso is subject to various federal, state, and local income tax audits for the tax years ended December 31, 2011 through 2014. As of the current date, there are no ongoing federal or state income tax audits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Operating Leases — We have entered into operating lease agreements, which expire at various dates through 2021, primarily related to certain machinery and equipment used in our manufacturing process. Rental expense under operating leases amounted to $7.0 million, $9.8 million, and $9.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
The following table, as of December 31, 2014, represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year: | ||||
(Dollars in thousands) | ||||
2015 | $ | 2,776 | ||
2016 | 1,166 | |||
2017 | 649 | |||
2018 | 360 | |||
2019 | 217 | |||
Thereafter | 33 | |||
Total | $ | 5,201 | ||
Purchase obligations — We have entered into unconditional purchase obligations in the ordinary course of business for the purchase of certain raw materials, energy, and services. The following table, as of December 31, 2014, summarizes our unconditional purchase obligations. | ||||
(Dollars in thousands) | ||||
2015 | $ | 55,828 | ||
2016 | 28,520 | |||
2017 | 26,973 | |||
2018 | 26,163 | |||
2019 | 26,163 | |||
Thereafter | 95,258 | |||
Total | $ | 258,905 | ||
Severance Arrangements — Under our severance policy, and subject to certain terms and conditions, if the employment of a salaried employee or an hourly employee at the Quinnesec mill is terminated under specified circumstances, the employee is eligible to receive a termination allowance based on the employee’s applicable service and eligible pay. The termination allowance is equal to two weeks of eligible pay for each full or partial year of applicable service, and in any event is not less than four weeks of eligible pay and not more than 52 weeks of eligible pay. We also may elect to provide the employee with other severance benefits such as prorated and/or reduced incentive awards under our incentive plans and programs, subsidized continuation medical and dental insurance coverage, and outplacement services. Our executive officers are also entitled to receive additional severance benefits under their contracts with us in the event of the termination of their employment under certain circumstances. | ||||
Expera Specialty Solutions, LLC — We are a party to a long-term supply agreement with Expera Specialty Solutions, LLC, or “Expera,” for the manufacture of specialty paper products on paper machine no. 5 at our Androscoggin mill in Jay, Maine. The agreement, which expires on June 1, 2017, requires Expera to pay us a variable charge for the paper purchased and a fixed charge for the availability of the paper machine. We are responsible for the machine’s routine maintenance, and Expera is responsible for any capital expenditures specific to the machine. Expera has the right to terminate the agreement if certain events occur. | ||||
General Litigation — We are involved from time to time in legal proceedings incidental to the conduct of our business. We do not believe that any liability that may result from these proceedings will have a material adverse effect on our financial statements. | ||||
Acquisition Related Contingent Fees — In connection with the NewPage acquisition, we agreed to pay certain service providers contingent success fees of approximately $5.2 million. These fees were paid upon consummation of the NewPage acquisition. |
NEW_MARKET_TAX_CREDIT_ENTITIES
NEW MARKET TAX CREDIT ENTITIES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
NEW MARKET TAX CREDIT ENTITIES | NEW MARKET TAX CREDIT ENTITIES | |||||||||||||||
In 2010, we entered into a financing transaction with Chase Community Equity, LLC, or “Chase,” related to a $43 million renewable energy project at our mill in Quinnesec, Michigan, in which Chase made a capital contribution and Verso Finance made a loan to Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” under a qualified New Markets Tax Credit, or “NMTC,” program, provided for in the Community Renewal Tax Relief Act of 2000. | ||||||||||||||||
In connection with the financing, Verso Holdings loaned $23.3 million to Verso Finance at an interest rate of 6.5% per year and with a maturity of December 29, 2040, and Verso Finance, in turn, loaned the funds on similar terms to the Investment Fund. The Investment Fund then contributed the loan proceeds to certain CDEs, which, in turn, loaned the funds on similar terms to Verso Quinnesec REP LLC, our indirect, wholly owned subsidiary. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by Chase, net of syndication fees) were used to partially fund the renewable energy project. | ||||||||||||||||
By virtue of its contribution, Chase is entitled to substantially all of the benefits derived from the NMTCs. This transaction includes a put/call provision whereby we may be obligated or entitled to repurchase Chase’s interest. We believe that Chase will exercise the put option in December 2017 at the end of the recapture period. The value attributed to the put/call is de minimis. The NMTC is subject to 100% recapture for a period of 7 years as provided in the Internal Revenue Code. We are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require us to indemnify Chase for any loss or recapture of NMTCs related to the financing until such time as our obligation to deliver tax benefits is relieved. We do not anticipate any credit recaptures will be required in connection with this arrangement. | ||||||||||||||||
We have determined that the Investment Fund is a variable interest entity, or “VIE,” of which we are the primary beneficiary and have consolidated it in accordance with the accounting standard for consolidation. Chase’s contribution, net of syndication fees, is included in Other liabilities in the accompanying consolidated balance sheets. Direct costs incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans. Incremental costs to maintain the structure during the compliance period are recognized as incurred. | ||||||||||||||||
The following table summarizes the impact of the VIE consolidated by Verso Holdings as of December 31, 2014 and 2013: | ||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Current assets | $ | 14 | $ | 15 | $ | 14 | $ | 15 | ||||||||
Non-current assets | 85 | 85 | 23,390 | 23,390 | ||||||||||||
Total assets | $ | 99 | $ | 100 | $ | 23,404 | $ | 23,405 | ||||||||
Current liabilities | 15 | 15 | 141 | 141 | ||||||||||||
Long-term debt | — | — | 23,305 | 23,305 | ||||||||||||
Other non-current liabilities | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Total liabilities | $ | 7,938 | $ | 7,938 | $ | 31,369 | $ | 31,369 | ||||||||
Amounts presented in the consolidated balance sheets and the table above are adjusted for intercompany eliminations. | ||||||||||||||||
The asset held by Verso Holdings represents its investment in the loan to Verso Finance, which is eliminated in consolidation in the accompanying consolidated balance sheet of Verso. The liability of Verso Holdings represents the loan issued by the Investment Fund to Verso Finance, which is also eliminated in consolidation in the accompanying consolidated balance sheet of Verso. |
INFORMATION_BY_INDUSTRY_SEGMEN
INFORMATION BY INDUSTRY SEGMENT | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
INFORMATION BY INDUSTRY SEGMENT | INFORMATION BY INDUSTRY SEGMENT | |||||||||||||||||||||||
Our reporting segments correspond to the following three market segments in which we operate: coated papers, including coated groundwood and coated freesheet; hardwood market pulp; and other, consisting of specialty papers. We operate primarily in one geographic segment, North America. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. Our assets are utilized across segments in our integrated mill system and are not identified by segment or reviewed by management on a segment basis. | ||||||||||||||||||||||||
The following table summarizes the industry segments for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Coated papers | $ | 939,105 | $ | 1,062,555 | $ | 1,177,050 | $ | 939,105 | $ | 1,062,555 | $ | 1,177,050 | ||||||||||||
Hardwood market pulp | 160,651 | 156,099 | 140,816 | 160,651 | 156,099 | 140,816 | ||||||||||||||||||
Other | 196,857 | 170,245 | 156,746 | 196,857 | 170,245 | 156,746 | ||||||||||||||||||
Total | $ | 1,296,613 | $ | 1,388,899 | $ | 1,474,612 | $ | 1,296,613 | $ | 1,388,899 | $ | 1,474,612 | ||||||||||||
Operating (Loss) Income: | ||||||||||||||||||||||||
Coated papers (1) | $ | (165,124 | ) | $ | 14,546 | $ | (26,166 | ) | $ | (165,124 | ) | $ | 14,546 | $ | (26,115 | ) | ||||||||
Hardwood market pulp | 18,950 | 21,540 | 9,215 | 18,950 | 21,540 | 9,215 | ||||||||||||||||||
Other(1) | (28,543 | ) | (2,186 | ) | (15,470 | ) | (28,543 | ) | (2,186 | ) | (15,470 | ) | ||||||||||||
Total | $ | (174,717 | ) | $ | 33,900 | $ | (32,421 | ) | $ | (174,717 | ) | $ | 33,900 | $ | (32,370 | ) | ||||||||
Depreciation, Amortization, and Depletion: | ||||||||||||||||||||||||
Coated papers | $ | 65,930 | $ | 77,976 | $ | 90,740 | $ | 65,930 | $ | 77,976 | $ | 90,740 | ||||||||||||
Hardwood market pulp | 15,325 | 18,125 | 18,000 | 15,325 | 18,125 | 18,000 | ||||||||||||||||||
Other | 9,642 | 8,629 | 9,438 | 9,642 | 8,629 | 9,438 | ||||||||||||||||||
Total | $ | 90,897 | $ | 104,730 | $ | 118,178 | $ | 90,897 | $ | 104,730 | $ | 118,178 | ||||||||||||
Capital Spending: | ||||||||||||||||||||||||
Coated papers | $ | 31,657 | $ | 33,595 | $ | 57,807 | $ | 31,657 | $ | 33,595 | $ | 57,807 | ||||||||||||
Hardwood market pulp (2) | 9,625 | 5,752 | (325 | ) | 9,625 | 5,752 | (325 | ) | ||||||||||||||||
Other | 681 | 1,313 | 2,427 | 681 | 1,313 | 2,427 | ||||||||||||||||||
Total | $ | 41,963 | $ | 40,660 | $ | 59,909 | $ | 41,963 | $ | 40,660 | $ | 59,909 | ||||||||||||
-1 | Operating loss of the coated papers and other segment includes $134.5 million in Restructuring charges recognized in 2014. Operating loss of $102.4 million in Restructuring charges, offset by $60.6 million in Other operating income, was recognized in 2012 and attributed to the coated papers segment. | |||||||||||||||||||||||
-2 | Capital spending of the pulp segment includes the impact of a $14.7 million cash inflow received in 2012 from governmental grants associated with a renewable energy project at our mill in Quinnesec, Michigan, due to spending in 2011. |
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||||||||||||
Presented below are Verso Holdings’ consolidating balance sheets, statements of operations and comprehensive income, and statements of cash flows, as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. The consolidating financial statements have been prepared from Verso Holdings’ financial information on the same basis of accounting as the consolidated financial statements. Investments in our subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate Verso Holdings’ subsidiaries that guaranteed the obligations under the debt securities described below are reflected in the Eliminations column. | ||||||||||||||||||||||||||||
Verso Holdings, or the “Parent Issuer,” and its direct, 100% owned subsidiary, Verso Paper Inc., or the “Subsidiary Issuer,” are the issuers of 11.75% Senior Secured Notes due 2019, the 11.75% Secured Notes due 2019, the 8.75% Second Priority Senior Secured Notes due 2019, the Second Priority Adjustable Senior Secured Notes, the 11.38% Senior Subordinated Notes due 2016, and the Adjustable Senior Subordinated Notes, or collectively, the “Notes.” In accordance with ASU 2013-04 related to joint and several liability arrangements, the Notes have been recorded by the Parent Issuer as it is the intent of the issuers for the Parent Issuer to settle the obligation. The Notes are jointly and severally guaranteed on a full and unconditional basis by the Parent Issuer’s direct and indirect, 100% owned subsidiaries, excluding the Subsidiary Issuer, Bucksport Leasing LLC, Verso Quinnesec REP LLC, Verso Bucksport Power LLC, and Verso Androscoggin Power LLC, or collectively, the “Guarantor Subsidiaries.” Chase NMTC Verso Investment Fund, LLC, a consolidated VIE of Verso Holdings, is a “Non-Guarantor Affiliate.” | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 5,526 | $ | 5 | $ | 10 | $ | — | $ | 5,541 | ||||||||||||||
Accounts receivable, net | — | — | 87,866 | — | — | — | 87,866 | |||||||||||||||||||||
Inventories | — | — | 110,724 | — | — | — | 110,724 | |||||||||||||||||||||
Assets held for sale | — | — | 60,014 | 950 | — | — | 60,964 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 9,308 | 1,500 | 4 | — | 10,812 | |||||||||||||||||||||
Current assets | — | — | 273,438 | 2,455 | 14 | — | 275,907 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 507,619 | 23,206 | — | (288 | ) | 530,537 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,396,872 | — | 2,335 | 26,417 | 31,153 | (1,456,777 | ) | — | ||||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 93,311 | 1,101 | 85 | — | 94,497 | |||||||||||||||||||||
Total assets | $ | 1,396,872 | $ | — | $ | 876,703 | $ | 53,179 | $ | 31,252 | $ | (1,457,065 | ) | $ | 900,941 | |||||||||||||
LIABILITIES AND MEMBER’S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,799 | $ | — | $ | 15 | $ | — | $ | 62,814 | ||||||||||||||
Accrued liabilities | 77,581 | — | 127,432 | 374 | 126 | — | 205,513 | |||||||||||||||||||||
Current maturities of long-term debt | — | — | — | 30,000 | — | — | 30,000 | |||||||||||||||||||||
Liabilities related to assets held for sale | — | — | 2,198 | — | — | — | 2,198 | |||||||||||||||||||||
Current liabilities | 77,581 | — | 192,429 | 30,374 | 141 | — | 300,525 | |||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,423,289 | 33,488 | — | (1,456,777 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | 802,702 | — | 13,341 | — | — | (816,043 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,296,906 | — | — | — | 23,305 | — | 1,320,211 | |||||||||||||||||||||
Other liabilities | — | — | 52,599 | — | 8,142 | (219 | ) | 60,522 | ||||||||||||||||||||
Member's (deficit) equity | (780,317 | ) | — | (804,955 | ) | (10,683 | ) | (336 | ) | 815,974 | (780,317 | ) | ||||||||||||||||
Total liabilities and equity | $ | 1,396,872 | $ | — | $ | 876,703 | $ | 53,179 | $ | 31,252 | $ | (1,457,065 | ) | $ | 900,941 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Accounts receivable, net | — | — | 104,624 | — | — | — | 104,624 | |||||||||||||||||||||
Inventories | — | — | 137,687 | — | — | — | 137,687 | |||||||||||||||||||||
Assets held for sale | — | — | 50 | — | — | — | 50 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 20,616 | — | 5 | — | 20,621 | |||||||||||||||||||||
Current assets | — | — | 274,207 | — | 15 | — | 274,222 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 724,063 | 19,171 | — | (288 | ) | 742,946 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,335,323 | — | 1,393 | — | 31,153 | (1,367,869 | ) | — | ||||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 103,424 | 1,251 | 85 | — | 104,760 | |||||||||||||||||||||
Total assets | $ | 1,335,323 | $ | — | $ | 1,103,087 | $ | 20,422 | $ | 31,253 | $ | (1,368,157 | ) | $ | 1,121,928 | |||||||||||||
LIABILITIES AND MEMBER’S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 88,397 | $ | — | $ | 15 | $ | — | $ | 88,412 | ||||||||||||||
Accrued liabilities | 58,847 | — | 63,462 | — | 126 | — | 122,435 | |||||||||||||||||||||
Current maturities of long-term debt | 13,310 | — | — | — | — | — | 13,310 | |||||||||||||||||||||
Current liabilities | 72,157 | — | 151,859 | — | 141 | — | 224,157 | |||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,335,323 | 32,546 | — | (1,367,869 | ) | — | ||||||||||||||||||||
Investment in subsidiaries (3) | 439,125 | — | 12,124 | — | — | (451,249 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,235,167 | — | — | — | 23,305 | — | 1,258,472 | |||||||||||||||||||||
Other liabilities | — | — | 42,502 | — | 8,087 | (164 | ) | 50,425 | ||||||||||||||||||||
Member's (deficit) equity | (411,126 | ) | — | (438,721 | ) | (12,124 | ) | (280 | ) | 451,125 | (411,126 | ) | ||||||||||||||||
Total liabilities and equity | $ | 1,335,323 | $ | — | $ | 1,103,087 | $ | 20,422 | $ | 31,253 | $ | (1,368,157 | ) | $ | 1,121,928 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
(3) Investment in subsidiaries has been corrected to reflect presentation as a liability in conformity with current year presentation. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,296,613 | $ | 3,098 | $ | — | $ | (3,098 | ) | $ | 1,296,613 | |||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,177,981 | 1,119 | — | (3,098 | ) | 1,176,002 | ||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 89,509 | 1,388 | 55 | (55 | ) | 90,897 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 71,336 | (1,422 | ) | 31 | — | 69,945 | ||||||||||||||||||||
Restructuring charges | — | — | 134,486 | — | — | — | 134,486 | |||||||||||||||||||||
Interest income | (141,246 | ) | — | (1,517 | ) | — | (1,546 | ) | 142,792 | (1,517 | ) | |||||||||||||||||
Interest expense | 141,246 | — | 139,385 | 4,492 | 1,515 | (142,792 | ) | 143,846 | ||||||||||||||||||||
Other loss, net | — | — | 38,898 | — | — | — | 38,898 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (355,944 | ) | — | — | — | — | 355,944 | — | ||||||||||||||||||||
Net loss | $ | (355,944 | ) | $ | — | $ | (353,465 | ) | $ | (2,479 | ) | $ | (55 | ) | $ | 355,999 | $ | (355,944 | ) | |||||||||
Other comprehensive loss | (15,682 | ) | — | (15,682 | ) | — | — | 15,682 | (15,682 | ) | ||||||||||||||||||
Comprehensive loss | $ | (371,626 | ) | $ | — | $ | (369,147 | ) | $ | (2,479 | ) | $ | (55 | ) | $ | 371,681 | $ | (371,626 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,388,899 | $ | — | $ | — | $ | — | $ | 1,388,899 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,179,085 | — | — | — | 1,179,085 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 103,655 | 1,075 | 55 | (55 | ) | 104,730 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 75,452 | (1,707 | ) | 32 | — | 73,777 | ||||||||||||||||||||
Restructuring charges | — | — | 1,378 | — | — | — | 1,378 | |||||||||||||||||||||
Other operating income | — | — | (3,971 | ) | — | — | — | (3,971 | ) | |||||||||||||||||||
Interest income | (138,298 | ) | — | (1,539 | ) | — | (1,546 | ) | 139,844 | (1,539 | ) | |||||||||||||||||
Interest expense | 138,298 | — | 137,083 | 1,574 | 1,515 | (139,844 | ) | 138,626 | ||||||||||||||||||||
Other loss, net | 2,800 | — | 5,165 | — | — | — | 7,965 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (108,352 | ) | — | — | — | — | 108,352 | — | ||||||||||||||||||||
Net loss | $ | (111,152 | ) | $ | — | $ | (107,409 | ) | $ | (942 | ) | $ | (56 | ) | $ | 108,407 | $ | (111,152 | ) | |||||||||
Other comprehensive income | 13,838 | — | 13,838 | — | — | (13,838 | ) | 13,838 | ||||||||||||||||||||
Comprehensive loss | $ | (97,314 | ) | $ | — | $ | (93,571 | ) | $ | (942 | ) | $ | (56 | ) | $ | 94,569 | $ | (97,314 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,474,612 | $ | — | $ | — | $ | — | $ | 1,474,612 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,272,630 | — | — | — | 1,272,630 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 117,014 | 1,164 | 55 | (55 | ) | 118,178 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 76,039 | (1,707 | ) | 32 | — | 74,364 | ||||||||||||||||||||
Restructuring charges | — | — | 102,404 | — | — | — | 102,404 | |||||||||||||||||||||
Other operating income | — | — | (60,594 | ) | — | — | — | (60,594 | ) | |||||||||||||||||||
Interest income | (129,801 | ) | — | (1,523 | ) | — | (1,546 | ) | 131,347 | (1,523 | ) | |||||||||||||||||
Interest expense | 129,801 | — | 126,399 | 1,575 | 1,515 | (131,347 | ) | 127,943 | ||||||||||||||||||||
Other loss, net | 8,244 | — | (864 | ) | — | — | — | 7,380 | ||||||||||||||||||||
Equity in net loss of subsidiaries | $ | (157,926 | ) | $ | — | $ | — | $ | — | $ | — | $ | 157,926 | $ | — | |||||||||||||
Net loss | (166,170 | ) | — | (156,893 | ) | (1,032 | ) | (56 | ) | 157,981 | (166,170 | ) | ||||||||||||||||
Other comprehensive income | 3,385 | $ | — | 3,385 | $ | — | $ | — | (3,385 | ) | 3,385 | |||||||||||||||||
Comprehensive loss | $ | (162,785 | ) | $ | — | $ | (153,508 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 154,596 | $ | (162,785 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (60,051 | ) | $ | 1,708 | $ | — | $ | — | $ | (58,343 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 766 | 43 | — | — | 809 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 2,222 | (1,378 | ) | — | — | 844 | ||||||||||||||||||||
Capital expenditures | — | — | (41,743 | ) | (220 | ) | — | — | (41,963 | ) | ||||||||||||||||||
Other investing activities | — | — | 15,020 | — | — | — | 15,020 | |||||||||||||||||||||
Advances to subsidiaries | (326,680 | ) | — | — | — | — | 326,680 | — | ||||||||||||||||||||
Payments from subsidiaries | 276,311 | — | — | — | — | (276,311 | ) | — | ||||||||||||||||||||
Net cash used in investing activities | (50,369 | ) | — | (23,735 | ) | (1,555 | ) | — | 50,369 | (25,290 | ) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 298,250 | — | — | 135,199 | — | — | 433,449 | |||||||||||||||||||||
Payments on revolving credit facilities | (235,250 | ) | — | — | (105,199 | ) | — | — | (340,449 | ) | ||||||||||||||||||
Repayments of long-term debt | (13,310 | ) | — | — | — | — | — | (13,310 | ) | |||||||||||||||||||
Contribution from Verso | 717 | — | — | — | — | — | 717 | |||||||||||||||||||||
Cash distributions | (38 | ) | — | — | — | — | — | (38 | ) | |||||||||||||||||||
Return of capital to parent | (1,296 | ) | 1,296 | — | ||||||||||||||||||||||||
Debt issuance costs | — | — | — | (2,435 | ) | — | — | (2,435 | ) | |||||||||||||||||||
Advances from parent | — | — | 326,680 | — | — | (326,680 | ) | — | ||||||||||||||||||||
Payments to parent | (248,598 | ) | (26,417 | ) | 275,015 | — | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | 50,369 | — | 78,082 | (148 | ) | — | (50,369 | ) | 77,934 | |||||||||||||||||||
Change in cash and cash equivalents | — | — | (5,704 | ) | 5 | — | — | (5,699 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 11,230 | — | 10 | — | 11,240 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 5,526 | $ | 5 | $ | 10 | $ | — | $ | 5,541 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (27,609 | ) | $ | 154 | $ | (7 | ) | $ | — | $ | (27,462 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 28,397 | — | — | — | 28,397 | |||||||||||||||||||||
Transfers to restricted cash | — | — | (1,338 | ) | (154 | ) | — | — | (1,492 | ) | ||||||||||||||||||
Capital expenditures | — | — | (40,660 | ) | — | — | — | (40,660 | ) | |||||||||||||||||||
Return of capital to Parent Issuer | 8,653 | — | — | — | — | (8,653 | ) | — | ||||||||||||||||||||
Advances to subsidiaries | (145,000 | ) | — | — | — | — | 145,000 | — | ||||||||||||||||||||
Payments from subsidiaries | 145,360 | — | — | — | — | (145,360 | ) | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 9,013 | — | (13,601 | ) | (154 | ) | — | (9,013 | ) | (13,755 | ) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 145,000 | — | — | — | — | — | 145,000 | |||||||||||||||||||||
Payments on revolving credit facilities | (145,000 | ) | — | — | — | — | — | (145,000 | ) | |||||||||||||||||||
Debt issuance costs | (220 | ) | — | — | — | — | — | (220 | ) | |||||||||||||||||||
Return of capital to Verso | (8,653 | ) | — | — | — | — | — | (8,653 | ) | |||||||||||||||||||
Cash distributions | (140 | ) | — | — | — | — | — | (140 | ) | |||||||||||||||||||
Return of capital to Parent Issuer | — | — | (8,653 | ) | — | — | 8,653 | — | ||||||||||||||||||||
Advances from parent | — | — | 145,000 | — | — | (145,000 | ) | — | ||||||||||||||||||||
Payments to parent | — | — | (145,360 | ) | — | — | 145,360 | — | ||||||||||||||||||||
Net cash used in financing activities | (9,013 | ) | — | (9,013 | ) | — | — | 9,013 | (9,013 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (50,223 | ) | — | (7 | ) | — | (50,230 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 61,453 | — | 17 | — | 61,470 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non-Guarantor | Non- Guarantor | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Subsidiary | Affiliate | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 9,449 | $ | 1,909 | $ | (56 | ) | $ | — | $ | 11,302 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from insurance settlement | — | — | 51,003 | — | — | — | 51,003 | |||||||||||||||||||||
Proceeds from sale of fixed assets | — | — | 1,731 | — | — | — | 1,731 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 184 | (78 | ) | — | — | 106 | ||||||||||||||||||||
Capital expenditures | — | — | (68,585 | ) | 8,676 | — | — | (59,909 | ) | |||||||||||||||||||
Advances to subsidiaries | (454,467 | ) | — | — | — | — | 454,467 | — | ||||||||||||||||||||
Payment from subsidiaries | 492,025 | — | 10,507 | — | — | (502,532 | ) | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 37,558 | — | (5,160 | ) | 8,598 | — | (48,065 | ) | (7,069 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 112,500 | — | — | — | — | — | 112,500 | |||||||||||||||||||||
Payments on revolving credit facilities | (112,500 | ) | — | — | — | — | — | (112,500 | ) | |||||||||||||||||||
Proceeds from long-term debt | 341,191 | — | — | — | — | — | 341,191 | |||||||||||||||||||||
Repayments of long-term debt | (354,984 | ) | — | — | — | — | — | (354,984 | ) | |||||||||||||||||||
Debt issuance costs | (24,459 | ) | — | — | — | (24,459 | ) | |||||||||||||||||||||
Contribution from parent | 776 | — | — | — | — | — | 776 | |||||||||||||||||||||
Cash distributions | (82 | ) | — | — | (10,507 | ) | — | 10,507 | (82 | ) | ||||||||||||||||||
Advances from parent | — | — | 454,467 | — | — | (454,467 | ) | — | ||||||||||||||||||||
Payments to parent | — | — | (492,025 | ) | — | — | 492,025 | — | ||||||||||||||||||||
Net cash used in financing activities | (37,558 | ) | — | (37,558 | ) | (10,507 | ) | — | 48,065 | (37,558 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | — | (33,269 | ) | — | (56 | ) | — | (33,325 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 94,722 | — | 73 | — | 94,795 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation. |
QUARTERLY_DATA
QUARTERLY DATA | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
QUARTERLY DATA | QUARTERLY DATA | |||||||||||||||||||||||||||||||
Verso’s quarterly financial data (unaudited) is as follows: | ||||||||||||||||||||||||||||||||
VERSO CORPORATION | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Summary Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Net sales | $ | 326.4 | $ | 350.2 | $ | 320.9 | $ | 299.1 | $ | 350.4 | $ | 374.9 | $ | 330.4 | $ | 333.2 | ||||||||||||||||
Gross margin(1) | 23.2 | 55.4 | 45.2 | (3.2 | ) | 62.8 | 69.1 | 36.5 | 41.4 | |||||||||||||||||||||||
Cost of products sold | 319.9 | 317.9 | 301.1 | 328 | 313.7 | 332.1 | 320.2 | 317.8 | ||||||||||||||||||||||||
Selling, general, and administrative expenses | 16.7 | 17.8 | 17.8 | 17.6 | 17.8 | 18 | 19.2 | 18.8 | ||||||||||||||||||||||||
Restructuring charges (2) | 134.5 | — | — | — | 0.1 | 0.1 | 0.2 | 1 | ||||||||||||||||||||||||
Other operating income (3) | — | — | — | — | — | — | (0.7 | ) | (3.3 | ) | ||||||||||||||||||||||
Interest expense | 35.4 | 36.7 | 35.7 | 34.5 | 34.3 | 34.4 | 34.4 | 34.7 | ||||||||||||||||||||||||
Other loss, net | 6.2 | 14 | 9.1 | 9.6 | 5.1 | 0.1 | 0.1 | 2.6 | ||||||||||||||||||||||||
Income tax benefit | (2.3 | ) | (0.6 | ) | — | — | (0.6 | ) | — | — | — | |||||||||||||||||||||
Net loss | (184.0 | ) | (35.6 | ) | (42.8 | ) | (90.6 | ) | (20.0 | ) | (9.8 | ) | (43.0 | ) | (38.4 | ) | ||||||||||||||||
Share Data(4): | ||||||||||||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | (3.45 | ) | $ | (0.67 | ) | $ | (0.80 | ) | $ | (1.70 | ) | $ | (0.38 | ) | $ | (0.18 | ) | $ | (0.81 | ) | $ | (0.72 | ) | ||||||||
Diluted | (3.45 | ) | (0.67 | ) | (0.80 | ) | (1.70 | ) | (0.38 | ) | (0.18 | ) | (0.81 | ) | (0.72 | ) | ||||||||||||||||
Weighted average shares of common stock outstanding (thousands): | ||||||||||||||||||||||||||||||||
Basic | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | ||||||||||||||||||||||||
Diluted | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | ||||||||||||||||||||||||
Closing price per share: | ||||||||||||||||||||||||||||||||
High | $ | 3.43 | $ | 3.48 | $ | 3.07 | $ | 4.38 | $ | 0.85 | $ | 1.13 | $ | 1.29 | $ | 1.65 | ||||||||||||||||
Low | 2.34 | 2.2 | 1.69 | 0.65 | 0.54 | 0.62 | 1.03 | 0.98 | ||||||||||||||||||||||||
Period-end | 3.43 | 3.2 | 2.1 | 2.89 | 0.63 | 0.76 | 1.15 | 1.32 | ||||||||||||||||||||||||
(1) Gross margin represents net sales less cost of products sold, excluding depreciation, amortization, and depletion. | ||||||||||||||||||||||||||||||||
(2) Represents costs primarily associated with the closure of the Bucksport mill in 2014 and the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(3) Represents gains on sale of the former Sartell mill and the assets of Fiber Farm LLC in 2013. | ||||||||||||||||||||||||||||||||
(4) No dividends were declared or paid in any of the periods presented. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
On January 7, 2015, Verso consummated the previously announced NewPage acquisition pursuant to the Merger Agreement. As a result of the merger, NewPage became a wholly owned subsidiary of Verso Holdings. The NewPage acquisition provides Verso with assets in a complementary geographic area, a broader portfolio of products, and strategic flexibility to reduce operating costs and enhance our financial condition. | |
As consideration for the NewPage acquisition, Verso issued (a) $650.0 million aggregate principal amount of New First Lien Notes and (b) 13,607,693 shares of Verso common stock in exchange for all the outstanding common stock of NewPage. Also in connection with the NewPage acquisition, we assumed NewPage’s existing $750 million Term Loan Facility and $350 million ABL Facility of which $734 million and $100 million, respectively were outstanding as of the date of acquisition. As of January 7, 2015, the Term Loan Facility principal payments due in 2015 were $3 million. Also, as a condition of allowing the acquisition to proceed, the Antitrust Division of the U.S. Department of Justice entered into a settlement with the Company that required NewPage to divest its paper mills in Biron, Wisconsin, and Rumford, Maine, which occurred prior to the acquisition of NewPage. | |
Verso will account for the acquisition under ASC 805, “Business Combinations,” as the accounting acquirer. NewPage’s results of operations will be included in Verso’s consolidated financial statements beginning with the date of acquisition. Given the limited time since the date of acquisition, it was not practicable to determine pro forma financial information. | |
Concurrent with the completion of the acquisition of NewPage, as described in Note 8, the aggregate principal outstanding on the Adjustable Second Lien Notes and the Adjustable Subordinated Notes were adjusted pursuant to the terms of the Exchange Offer. | |
On January 29, 2015, two Verso subsidiaries consummated the sale of their equity interests in two other Verso subsidiaries that owned the Bucksport mill to AIM Development (USA) LLC, an indirect, wholly owned subsidiary of American Iron & Metal Company Inc., or “AIM.” |
Schedule_II_Valuation_Accounts
Schedule II - Valuation Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Schedule II - Valuation Accounts | |||||||||||||||||
(Dollars in thousands) | Balance at Beginning of Period | Charged to Cost and Expenses | Charge-off Against Allowances | Balance at End of Period | |||||||||||||
Allowance for uncollectible accounts included in Accounts receivable on the consolidated balance sheets | |||||||||||||||||
Year Ended December 31, 2012 | $ | 908 | $ | 98 | $ | — | $ | 1,006 | |||||||||
Year Ended December 31, 2013 | $ | 1,006 | $ | 263 | $ | (526 | ) | $ | 743 | ||||||||
Year Ended December 31, 2014 | $ | 743 | $ | (125 | ) | $ | — | $ | 618 | ||||||||
SUMMARY_OF_BUSINESS_AND_SIGNIF1
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Nature of Business | Nature of Business — Within our organization, Verso Corporation, formerly named Verso Paper Corp., is the ultimate parent entity and the sole member of Verso Paper Finance Holdings One LLC, which is the sole member of Verso Paper Finance Holdings LLC, which is the sole member of Verso Paper Holdings LLC. As used in this report, the term “Verso” refers to Verso Corporation; the term “Verso Finance” refers to Verso Paper Finance Holdings LLC; the term “Verso Holdings” refers to Verso Paper Holdings LLC; and the term for any such entity includes its direct and indirect subsidiaries when referring to the entity’s consolidated financial condition or results. Unless otherwise noted, references to “Verso,” “we,” “us,” and “our” refer collectively to Verso and Verso Holdings. Other than Verso’s common stock transactions, Verso Finance’s debt obligation and related financing costs and interest expense, Verso Holdings’ loan to Verso Finance, and the debt obligation of Verso Holdings’ consolidated variable interest entity to Verso Finance, the assets, liabilities, income, expenses and cash flows presented for all periods represent those of Verso Holdings in all material respects. Unless otherwise noted, the information provided pertains to both Verso and Verso Holdings. | |||||||
We began operations on August 1, 2006, when we acquired the assets and certain liabilities comprising the business of the Coated and Supercalendered Papers Division of International Paper Company, or “International Paper.” We were formed by affiliates of Apollo Global Management, LLC, or “Apollo,” for the purpose of consummating the acquisition from International Paper. Verso went public on May 14, 2008, with an initial public offering, or “IPO,” of 14 million shares of common stock. | ||||||||
On January 3, 2014, Verso, Verso Merger Sub Inc., a Delaware corporation and an indirect, wholly owned subsidiary of Verso, or “Merger Sub,” and NewPage Holdings Inc., a Delaware corporation, or “NewPage,” entered into an Agreement and Plan of Merger, or the “Merger Agreement,” pursuant to which the parties agreed to merge Merger Sub with and into NewPage on the terms and subject to the conditions set forth in the Merger Agreement, with NewPage surviving the merger as an indirect, wholly owned subsidiary of Verso. On January 7, 2015, Verso consummated the previously announced acquisition of NewPage through the merger of Merger Sub with and into NewPage, or the “NewPage acquisition,” pursuant to the Merger Agreement. As a result of the merger of Merger Sub with and into NewPage, Merger Sub’s separate corporate existence ceased and NewPage continued as the surviving corporation and an indirect, wholly owned subsidiary of Verso (see Note 24). As the NewPage acquisition was consummated subsequent to our year-end, the consolidated financial statements for the fiscal year ended December 31, 2014, exclude the impact of NewPage’s operations on our business. | ||||||||
We operate in the following three market segments: coated papers; hardwood market pulp; and other, consisting of specialty papers. Our core business platform is as a producer of coated freesheet and coated groundwood papers. Our products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications such as high-end advertising brochures, annual reports, and direct-mail advertising. | ||||||||
Basis of Presentation | Basis of Presentation —This report contains the consolidated financial statements of Verso and Verso Holdings as of December 31, 2014 and 2013, and for the years ended December 31, 2014, 2013, and 2012. Variable interest entities for which Verso or Verso Holdings is the primary beneficiary are also consolidated. Intercompany balances and transactions are eliminated in consolidation. | |||||||
Liquidity | We have historically relied primarily upon cash flow from operations and borrowings under our revolving credit facilities to finance operations, capital expenditures, and debt service requirements. We are a highly leveraged company. As of December 31, 2014, we had $1.3 billion in borrowings outstanding under our existing financing arrangements. Also as of December 31, 2014, $66.9 million was available for future borrowing under our revolving credit facilities. Our debt arrangements contain financial and other restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests. Failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our debts. If we are unable to repay our indebtedness when due or declared due, our lenders also will have the right to proceed against the collateral pledged to them to secure the indebtedness. Our indebtedness requires us to dedicate a substantial portion of our cash flows from operations to payments for our debt service, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, research and development efforts, and other corporate purposes. In addition, our indebtedness increases our vulnerability to adverse economic and industry conditions and places us at a competitive disadvantage compared to competitors that have less debt. | |||||||
Our ability to achieve our future projected operating results is largely based on the successful integration of NewPage (see Note 4), the borrowing availability of the combined company, and the synergies and operational cost reduction and earnings enhancement initiatives expected to be achieved from the acquisition. If the integration of NewPage into our business is not completed within the expected time frame, the synergies and other benefits that we expect to achieve could be materially and adversely affected, and these situations could result in additional transaction costs, loss of revenue or other effects associated with uncertainty about the acquisition. If we are unable to meet our projected performance targets, our liquidity could be adversely impacted and we may need to seek additional sources of liquidity. Our future performance could adversely affect our ability to raise additional capital to fund our operations, and there is no assurance that financing will be available in a sufficient amount, on acceptable terms, or on a timely basis. | ||||||||
Our ability to continue as a going concern is dependent on management’s plans, which are primarily centered on the synergies expected to be achieved from the NewPage acquisition and on the disposition of the Bucksport mill. We have certain significant cash outflow requirements over the next twelve months outside of normal paper mill operations, including our current debt service requirements (See Note 8), costs associated with the Bucksport mill closure (See Note 17), and transaction and integration costs associated with the NewPage acquisition (See Note 4). | ||||||||
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. | |||||||
Revenue Recognition | Revenue Recognition — Sales are recorded net of rebates, allowances, and discounts. Revenue is recognized when the customer takes title and assumes the risks and rewards of ownership, in accordance with Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 605, Revenue Recognition. Revenue is recorded at the time of shipment for terms designated FOB, or “free on board,” shipping point. For sales transactions designated FOB destination, revenue is recorded when the product is delivered to the customer’s site and when title and risk of loss are transferred. | |||||||
Shipping and Handling Costs | Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the accompanying consolidated statements of operations. When the sales price includes charges to customers for shipping and handling, such amounts are included in Net sales. | |||||||
Planned Maintenance Costs | Planned Maintenance Costs — Maintenance costs for major planned maintenance shutdowns in excess of $0.5 million are deferred and then expensed ratably over the period until the next major planned shutdown, since we believe that operations benefit throughout that period from the maintenance work performed. Other maintenance costs are expensed as incurred. | |||||||
Environmental Costs and Obligations | Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the timing of expected cash flows are reliably determinable. | |||||||
Equity Compensation | Equity Compensation — We account for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. We use the straight-line attribution method to recognize share-based compensation over the service period of the award. | |||||||
Income Taxes | Income Taxes — Verso accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes. Under this method, Verso recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address Verso’s tax risk profile. Verso analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. Verso Holdings is a limited liability corporation and is not subject to federal income taxes. Verso Holdings accounts for its state income taxes in accordance with ASC Topic 740. | |||||||
Earnings Per Share | Earnings Per Share — Verso computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. | |||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, and amounts receivable from or due to related parties approximate fair value due to the short maturity of these instruments. We determine the fair value of our debt based on market information and a review of prices and terms available for similar obligations. See also Note 8, Note 11, Note 14, and Note 15 for additional information regarding the fair value of financial instruments. | |||||||
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. | |||||||
Inventories and Replacement Parts and Other Supplies | Inventories and Replacement Parts and Other Supplies — Inventory includes all costs directly associated with manufacturing products: materials, labor, and manufacturing overhead and are presented at the lower of cost or market. Costs of raw materials, work-in-progress, and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are stated using the average cost method and are reflected in Inventories and Intangibles and other assets on the consolidated balance sheet (see also Note 3 and Note 6). | |||||||
Property, Plant, and Equipment | Property, Plant, and Equipment — Property, plant, and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets. Interest costs of $1.9 million and $1.3 million were capitalized, respectively, in 2014 and 2013. Expenditures for major repairs and improvements are capitalized, whereas normal repairs and maintenance are expensed as incurred. | |||||||
Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | ||||||||
Years | ||||||||
Building | 20 - 40 | |||||||
Machinery and equipment | 20-Oct | |||||||
Furniture and office equipment | 10-Mar | |||||||
Computer hardware and software | 6-Mar | |||||||
Leasehold improvements | Over the shorter of the lease term or the useful life of the improvements | |||||||
Intangible Assets | Intangible Assets — We account for intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Intangible assets primarily consist of trademarks, customer-related intangible assets, and patents obtained through business acquisitions. The useful lives of trademarks were determined to be indefinite and, therefore, these assets are not amortized. Customer-related intangible assets are amortized over their estimated useful lives of approximately twenty-five years. Patents are amortized over their remaining legal lives of ten years. The impairment evaluation of the carrying amount of intangible assets with indefinite lives is conducted annually or more frequently if events or changes in circumstances indicate that an asset might be impaired. | |||||||
Trademarks are evaluated by comparing their fair value to their carrying values. In the third quarter of 2014, we determined that sufficient indicators of a potential impairment of our trademarks existed and we performed an interim analysis of our trademarks for impairment. As a result of our analysis, we determined that the carrying value of our trademarks exceeded their fair value, which was determined using a level 3 fair value measurement. This fair value determination was made using the income approach, which required us to estimate unobservable factors such as a royalty rate and discount rate and identify relevant projected revenue. We recognized an impairment charge of $6.3 million based on a projected reduction of revenues driven primarily by a decline in U.S. demand. In 2013, we also determined that the carrying value of our trademarks exceeded their fair value, and recognized an impairment charge of $1.6 million based on a projection of reduced revenues driven primarily by a decline in U.S. demand. The trademark impairment charges are included in Cost of products sold in our consolidated statement of operations for the years ended December 31, 2014 and 2013. | ||||||||
During 2012, based on a projected reduction of revenues primarily as a result of a reduction in production capacity from the closure of the Sartell mill, we recognized a trademarks impairment charge of $3.7 million, which was included in Restructuring charges in our accompanying consolidated statement of operations for the year ended December 31, 2012. | ||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. | |||||||
In 2014, based on our plans to dispose of certain assets held by the legal entities that comprise the Bucksport mill (Verso Bucksport LLC and Verso Bucksport Power LLC), we recorded a fixed asset impairment charge of $88.7 million, as the carrying value of the assets held for sale were in excess of the fair value less the cost to sell. The fair value was determined based on the December 5, 2014 membership purchase agreement for the sale of the Bucksport mill. The impairment charge is included in Restructuring charges (see also Note 17) in our accompanying consolidated statements of operations. | ||||||||
In 2012, based on a comprehensive assessment of the damage resulting from the fire and explosion at our former paper mill in Sartell, Minnesota, we recorded a fixed asset impairment charge of $66.5 million, which was included in Restructuring charges (see also Note 17) in our accompanying consolidated statements of operations. The impairment charge was calculated based on the excess of carrying value over the estimated fair value of the site, which was estimated based on preliminary negotiations with potential buyers received subsequent to our decision to shut down the mill. | ||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts — We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. We manage credit risk related to our trade accounts receivable by continually monitoring the creditworthiness of our customers to whom credit is granted in the normal course of business. Trade accounts receivable balances for sales to unaffiliated customers were approximately $84.0 million at December 31, 2014, compared to $100.7 million at December 31, 2013. As of December 31, 2014, our two largest customers accounted for approximately 27% of our accounts receivable. | |||||||
We establish our allowance for doubtful accounts based upon factors surrounding the credit risks of specific customers, historical trends, and other information. Based on this assessment, an allowance is maintained that represents what is believed to be ultimately uncollectible from such customers. | ||||||||
Deferred Financing Costs | Deferred Financing Costs — We capitalize costs incurred in connection with borrowings or establishment of credit facilities. These costs are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facilities using the effective interest method. In the case of early debt principal repayments, we adjust the carrying value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjust the future amortization expense. | |||||||
Asset Retirement Obligations | Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time, and the asset is depreciated over its useful life. Our asset retirement obligations under this standard relate to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. | |||||||
As of December 31, 2014 and 2013, we had $0.8 million of restricted cash included in Intangibles and other assets in the accompanying consolidated balance sheet related to an asset retirement obligation in the state of Michigan. This cash deposit is required by the state and may only be used for the future closure of a landfill. | ||||||||
The following table presents an analysis related to our asset retirement obligations included in Other liabilities and Accrued liabilities in the accompanying consolidated balance sheets: | ||||||||
Year Ended December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Asset retirement obligations, January 1 | $ | 13,194 | $ | 11,854 | ||||
Adjustment to existing liabilities | (3,733 | ) | (190 | ) | ||||
Liabilities related to assets held for sale | (1,914 | ) | — | |||||
Accretion expense | 683 | 887 | ||||||
Settlement of existing liabilities | (262 | ) | (903 | ) | ||||
Liabilities incurred | — | 1,546 | ||||||
Asset retirement obligations | 7,968 | 13,194 | ||||||
Less: Current portion | (453 | ) | (486 | ) | ||||
Non-current portion of asset retirement obligations, December 31 | $ | 7,515 | $ | 12,708 | ||||
In addition to the above obligations, we may be required to remove certain materials from our facilities or to remediate them in accordance with current regulations that govern the handling of certain hazardous or potentially hazardous materials. At this time, any such obligations have an indeterminate settlement date, and we believe that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, we will record a liability for such remediation when sufficient information becomes available to estimate the obligation. | ||||||||
Derivative Financial Instruments | Derivative Financial Instruments — Derivative financial instruments are recognized as assets or liabilities in the financial statements and measured at fair value. The effective portion of the changes in the fair value of derivative financial instruments that qualify and are designated as cash flow hedges are recorded in Accumulated other comprehensive loss. Changes in the fair value of derivative financial instruments that are entered into as economic hedges are recognized in current earnings. We use derivative financial instruments to manage our exposure to energy prices and interest rate risk. Effective April 1, 2012, management elected to de-designate the remaining energy swaps that had previously been designated as cash flow hedges and to discontinue hedge accounting prospectively. | |||||||
Pension Benefits | Pension Benefits — Pension plans cover substantially all of our employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Prior service costs are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. Our contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. These plans are funded on a current basis. |
SUMMARY_OF_BUSINESS_AND_SIGNIF2
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Schedule of Estimated Useful Lives of Property, Plant, and Equipment | Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: | |||||||||||
Years | ||||||||||||
Building | 20 - 40 | |||||||||||
Machinery and equipment | 20-Oct | |||||||||||
Furniture and office equipment | 10-Mar | |||||||||||
Computer hardware and software | 6-Mar | |||||||||||
Leasehold improvements | Over the shorter of the lease term or the useful life of the improvements | |||||||||||
Asset Retirement Obligations Included in Other Liabilities | The following table presents an analysis related to our asset retirement obligations included in Other liabilities and Accrued liabilities in the accompanying consolidated balance sheets: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Asset retirement obligations, January 1 | $ | 13,194 | $ | 11,854 | ||||||||
Adjustment to existing liabilities | (3,733 | ) | (190 | ) | ||||||||
Liabilities related to assets held for sale | (1,914 | ) | — | |||||||||
Accretion expense | 683 | 887 | ||||||||||
Settlement of existing liabilities | (262 | ) | (903 | ) | ||||||||
Liabilities incurred | — | 1,546 | ||||||||||
Asset retirement obligations | 7,968 | 13,194 | ||||||||||
Less: Current portion | (453 | ) | (486 | ) | ||||||||
Non-current portion of asset retirement obligations, December 31 | $ | 7,515 | $ | 12,708 | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for the years ended December 31, 2014 and 2013: | |||||||||||
(Dollars in thousands) | Losses on Derivative Financial Instruments | Defined Benefit Pension Items | Total | |||||||||
Accumulated other comprehensive loss as of December 31, 2012 | $ | (335 | ) | $ | (24,938 | ) | $ | (25,273 | ) | |||
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | 335 | 2,282 | 2,617 | |||||||||
Pension liability adjustment | — | 11,221 | 11,221 | |||||||||
Net decrease in other comprehensive loss | 335 | 13,503 | 13,838 | |||||||||
Accumulated other comprehensive loss as of December 31, 2013 | — | (11,435 | ) | (11,435 | ) | |||||||
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | — | 1,363 | 1,363 | |||||||||
Pension liability adjustment | — | (17,045 | ) | (17,045 | ) | |||||||
Net decrease in other comprehensive loss | — | (15,682 | ) | (15,682 | ) | |||||||
Accumulated other comprehensive loss as of December 31, 2014 | $ | — | $ | (27,117 | ) | $ | (27,117 | ) | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories by Major Category | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Raw materials | $ | 13,337 | $ | 25,843 | ||||
Woodyard logs | 5,779 | 6,602 | ||||||
Work-in-process | 9,274 | 14,738 | ||||||
Finished goods | 62,477 | 60,919 | ||||||
Replacement parts and other supplies | 19,857 | 29,585 | ||||||
Inventories | $ | 110,724 | $ | 137,687 | ||||
Amounts presented in the consolidated balance sheets and the table above are adjusted for valuation allowances. |
ACQUISITIONS_AND_DISPOSITIONS_
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Schedule of Assets and liabilities Held for Sale | Assets and liabilities held for sale at December 31, 2014 and 2013, respectively, were comprised of the following: | ||||||
December 31, | December 31, | ||||||
(Dollars in thousands) | 2014 (1) | 2013 (2) | |||||
Prepaid expenses and other assets | $ | 1,353 | $ | — | |||
Property, plant, and equipment, net | 58,554 | — | |||||
Intangibles and other assets, net | 1,057 | 50 | |||||
Assets held for sale | $ | 60,964 | $ | 50 | |||
Asset retirement obligations and other liabilities | $ | (2,198 | ) | $ | — | ||
Liabilities related to assets held for sale | $ | (2,198 | ) | $ | — | ||
(1) Recorded at fair value less cost to sell. | |||||||
(2) Recorded at carrying value as the expected proceeds less costs to sell exceed carrying value. |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant, and Equipment | Property, plant, and equipment were as follows: | |||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land and land improvements | $ | 26,358 | $ | 30,547 | ||||
Building and leasehold improvements | 111,812 | 154,521 | ||||||
Machinery, equipment, and other | 1,082,030 | 1,301,368 | ||||||
Construction-in-progress | 14,401 | 37,100 | ||||||
Property, plant, and equipment, gross | 1,234,601 | 1,523,536 | ||||||
Accumulated depreciation | (704,064 | ) | (780,590 | ) | ||||
Property, plant, and equipment, net | $ | 530,537 | $ | 742,946 | ||||
INTANGIBLES_AND_OTHER_ASSETS_T
INTANGIBLES AND OTHER ASSETS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Intangibles and Other Assets | Intangibles and other assets consist of the following: | |||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Amortizable intangible assets: | ||||||||||||||||
Customer relationships, net of accumulated amortization of $8.8 million on December 31, 2014, and $8.2 million on December 31, 2013 | $ | 4,520 | $ | 5,120 | $ | 4,520 | $ | 5,120 | ||||||||
Patents, net of accumulated amortization of $0.9 million on December 31, 2014, and on December 31, 2013 | 181 | 296 | 181 | 296 | ||||||||||||
Total amortizable intangible assets | 4,701 | 5,416 | 4,701 | 5,416 | ||||||||||||
Unamortizable intangible assets: | ||||||||||||||||
Trademarks | 9,880 | 16,180 | 9,880 | 16,180 | ||||||||||||
Other assets: | ||||||||||||||||
Financing costs, net of accumulated amortization of $18.8 million on December 31, 2014, and $13.6 million on December 31, 2013 | 23,118 | 28,761 | 23,118 | 28,761 | ||||||||||||
Deferred major repair | 21,118 | 16,218 | 21,118 | 16,218 | ||||||||||||
Replacement parts, net | 2,838 | 3,465 | 2,838 | 3,465 | ||||||||||||
Loan to affiliate | — | — | 23,305 | 23,305 | ||||||||||||
Restricted cash | 2,603 | 4,946 | 2,603 | 4,946 | ||||||||||||
Other | 6,934 | 6,469 | 6,934 | 6,469 | ||||||||||||
Total other assets | 56,611 | 59,859 | 79,916 | 83,164 | ||||||||||||
Intangibles and other assets | $ | 71,192 | $ | 81,455 | $ | 94,497 | $ | 104,760 | ||||||||
Estimated Future Amortization Expense for Intangible Assets Over Next Five Years | The estimated future amortization expense for intangible assets over the next five years is as follows: | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2015 | $ | 615 | ||||||||||||||
2016 | 567 | |||||||||||||||
2017 | 400 | |||||||||||||||
2018 | 300 | |||||||||||||||
2019 | 300 | |||||||||||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||
Schedule of Accrued Liabilities | A summary of accrued liabilities is as follows: | |||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Accrued interest | $ | 77,660 | $ | 58,852 | $ | 77,787 | $ | 58,977 | ||||||||
Payroll and employee benefit costs | 43,364 | 40,054 | 43,364 | 40,054 | ||||||||||||
Accrued transaction costs | 25,298 | — | 25,298 | — | ||||||||||||
Restructuring costs | 24,181 | — | 24,181 | — | ||||||||||||
Accrued sales rebates | 11,854 | 11,573 | 11,854 | 11,573 | ||||||||||||
Derivatives | 6,268 | 4,959 | 6,268 | 4,959 | ||||||||||||
Accrued taxes - other than income | 1,466 | 1,456 | 1,455 | 1,431 | ||||||||||||
Freight and other | 15,306 | 5,441 | 15,306 | 5,441 | ||||||||||||
Accrued liabilities | $ | 205,397 | $ | 122,335 | $ | 205,513 | $ | 122,435 | ||||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Summary of Long-Term Debt | A summary of long-term debt is as follows: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Original | Interest | Balance | Par | Balance | Par | ||||||||||||||||||
Maturity | Rate | Value | Value | |||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||
Verso Androscoggin Power LLC Revolving | 2/6/15 | 6.25 | % | $ | 30,000 | $ | 30,000 | $ | — | $ | — | |||||||||||||
Credit Facility | ||||||||||||||||||||||||
Revolving Credit Facilities | 5/4/17 | 2.54 | % | 63,000 | 63,000 | — | — | |||||||||||||||||
11.75% Senior Secured Notes | 1/15/19 | 11.75 | % | 424,654 | 417,882 | 426,076 | 417,882 | |||||||||||||||||
11.75% Secured Notes | 1/15/19 | 11.75 | % | 271,573 | 271,573 | 271,573 | 271,573 | |||||||||||||||||
8.75% Second Priority Senior Secured Notes | 2/1/19 | 8.75 | % | 96,447 | 96,647 | 395,018 | 396,000 | |||||||||||||||||
Second Priority Adjustable Senior Secured Notes | 2/1/19 | 8.75 | % | 298,732 | 299,353 | — | — | |||||||||||||||||
Second Priority Senior Secured Floating Rate Notes | 8/1/14 | — | % | — | — | 13,310 | 13,310 | |||||||||||||||||
11.38% Senior Subordinated Notes | 8/1/16 | 11.38 | % | 40,517 | 40,517 | 142,500 | 142,500 | |||||||||||||||||
Adjustable Senior Subordinated Notes | 8/1/16 | 11.38 | % | 101,983 | 101,983 | — | — | |||||||||||||||||
Chase NMTC Verso Investment Fund LLC | ||||||||||||||||||||||||
Loan from Verso Paper Finance Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Total debt for Verso Paper Holdings LLC | 1,350,211 | 1,344,260 | 1,271,782 | 1,264,570 | ||||||||||||||||||||
Verso Paper Finance Holdings LLC | ||||||||||||||||||||||||
Loan from Verso Paper Holdings LLC | 12/29/40 | 6.5 | % | 23,305 | 23,305 | 23,305 | 23,305 | |||||||||||||||||
Less current maturities of long-term debt | (30,000 | ) | (30,000 | ) | (13,310 | ) | (13,310 | ) | ||||||||||||||||
Less loans from affiliates | (46,610 | ) | (46,610 | ) | (46,610 | ) | (46,610 | ) | ||||||||||||||||
Total long-term debt for Verso Corporation | $ | 1,296,906 | $ | 1,290,955 | $ | 1,235,167 | $ | 1,227,955 | ||||||||||||||||
Interest Expense Related to Long Term Debt and Cash Interests Payments on Long-Term Debt | Amounts included in interest expense related to debt and amounts of cash interest payments on debt are as follows: | |||||||||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Interest expense | $ | 136,157 | $ | 133,599 | $ | 133,644 | $ | 137,672 | $ | 134,527 | $ | 126,486 | ||||||||||||
Cash interest paid | 116,705 | 129,467 | 113,334 | 118,220 | 130,830 | 114,849 | ||||||||||||||||||
Debt issuance cost amortization(1) | 8,078 | 5,398 | 5,317 | 8,078 | 5,368 | 4,957 | ||||||||||||||||||
(1) Amortization of debt issuance cost is included in interest expense. | ||||||||||||||||||||||||
Payments Required Under Long-Term Debt | The scheduled principal payments required under the debt listed above during the years following December 31, 2014, are set forth below (Amounts are prior to the financing transactions described in Note 24): | |||||||||||||||||||||||
(Dollars in thousands) | VERSO | VERSO | ||||||||||||||||||||||
HOLDINGS | ||||||||||||||||||||||||
2015 | 30,000 | 30,000 | ||||||||||||||||||||||
2016 | 142,500 | 142,500 | ||||||||||||||||||||||
2017 | 63,000 | 63,000 | ||||||||||||||||||||||
2018 | — | — | ||||||||||||||||||||||
2019 | 1,085,455 | 1,085,455 | ||||||||||||||||||||||
2020 and thereafter | — | 23,305 | ||||||||||||||||||||||
Total debt | $ | 1,320,955 | $ | 1,344,260 | ||||||||||||||||||||
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||
Schedule of Other Liabilities | Other liabilities consist of the following: | |||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Pension benefit obligation | $ | 40,584 | $ | 25,231 | $ | 40,584 | $ | 25,231 | ||||||||
Non-controlling interests | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Asset retirement obligations | 7,515 | 12,708 | 7,515 | 12,708 | ||||||||||||
Deferred income taxes | 3,779 | 6,174 | — | — | ||||||||||||
Deferred compensation | 3,670 | 3,495 | 3,670 | 3,495 | ||||||||||||
Other | 830 | 1,068 | 830 | 1,068 | ||||||||||||
Other liabilities | $ | 64,301 | $ | 56,599 | $ | 60,522 | $ | 50,425 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Reconciliation of Basic and Diluted Earnings (Loss) per Common Share | The following table provides a reconciliation of Verso’s basic and diluted loss per common share: | |||||||||||
VERSO | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Net income (loss) available to common shareholders | $ | (352,955 | ) | $ | (111,206 | ) | $ | (173,829 | ) | |||
Weighted average common stock outstanding | 52,835 | 52,583 | 52,365 | |||||||||
Weighted average restricted stock | 458 | 541 | 485 | |||||||||
Weighted average common shares outstanding - basic | 53,293 | 53,124 | 52,850 | |||||||||
Dilutive shares from stock options | — | — | — | |||||||||
Weighted average common shares outstanding - diluted | 53,293 | 53,124 | 52,850 | |||||||||
Basic loss per share | $ | (6.62 | ) | $ | (2.09 | ) | $ | (3.29 | ) | |||
Diluted loss per share | $ | (6.62 | ) | $ | (2.09 | ) | $ | (3.29 | ) |
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic pension cost for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||
Components of net periodic pension cost: | ||||||||||||||||
Service cost | $ | 5,747 | $ | 6,613 | $ | 7,082 | ||||||||||
Interest cost | 3,678 | 3,115 | 2,876 | |||||||||||||
Expected return on plan assets | (3,617 | ) | (3,303 | ) | (2,791 | ) | ||||||||||
Amortization of prior service cost | 651 | 651 | 740 | |||||||||||||
Amortization of actuarial loss | 195 | 1,631 | 1,648 | |||||||||||||
Curtailment | 982 | — | 1,517 | |||||||||||||
Net periodic pension cost | $ | 7,636 | $ | 8,707 | $ | 11,072 | ||||||||||
Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income | The following table provides detail on prior service cost and net actuarial loss recognized in Accumulated other comprehensive loss at December 31, 2014 and 2013: | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||
Amounts recognized in Accumulated other comprehensive loss: | ||||||||||||||||
Prior service cost | $ | 756 | $ | 1,923 | ||||||||||||
Net actuarial loss | 26,361 | 9,512 | ||||||||||||||
Reconciliation of Plans' Benefit Obligation, Plan Assets and Funded Status | The following table sets forth a reconciliation of the plans’ benefit obligation, plan assets and funded status at December 31, 2014 and 2013: | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||
Change in Projected Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 78,701 | $ | 81,944 | ||||||||||||
Service cost | 5,747 | 6,613 | ||||||||||||||
Interest cost | 3,678 | 3,115 | ||||||||||||||
Actuarial loss (gain) | 17,493 | (10,472 | ) | |||||||||||||
Benefits paid | (2,922 | ) | (2,499 | ) | ||||||||||||
Curtailment | 465 | — | ||||||||||||||
Benefit obligation on December 31 | $ | 103,162 | $ | 78,701 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Plan assets at fair value, beginning of fiscal year | $ | 53,470 | $ | 51,528 | ||||||||||||
Actual net return on plan assets | 4,065 | 4,052 | ||||||||||||||
Employer contributions | 7,965 | 389 | ||||||||||||||
Benefits paid | (2,922 | ) | (2,499 | ) | ||||||||||||
Plan assets at fair value on December 31 | $ | 62,578 | $ | 53,470 | ||||||||||||
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | $ | (40,584 | ) | $ | (25,231 | ) | ||||||||||
Summary of Expected Future Pension Benefit Payments | The following table summarizes expected future pension benefit payments: | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
2015 | $ | 2,607 | ||||||||||||||
2016 | 2,887 | |||||||||||||||
2017 | 3,196 | |||||||||||||||
2018 | 3,589 | |||||||||||||||
2019 | 4,048 | |||||||||||||||
2020-2024 | 28,277 | |||||||||||||||
Actuarial Assumptions Used In Defined Benefit Pension Plans | The actuarial assumptions used in the defined benefit pension plans were as follows: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||||||||||||||
Discount rate | 3.83 | % | 4.75 | % | 3.8 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||||||||||||||
Discount rate | 4.75 | % | 3.84 | % | 4.3 | % | ||||||||||
Rate of compensation increase | N/A | N/A | N/A | |||||||||||||
Expected long-term return on plan assets | 6.5 | % | 6.5 | % | 6.5 | % | ||||||||||
Schedule of Pension Plan's Asset Allocation | The following table provides the pension plans’ asset allocation on December 31, 2014 and 2013: | |||||||||||||||
Allocation of Plan Assets | ||||||||||||||||
2014 | Allocation on | 2013 | Allocation on | |||||||||||||
Targeted Allocation | 31-Dec-14 | Targeted Allocation | 31-Dec-13 | |||||||||||||
Other securities: | 55-60% | 60% | ||||||||||||||
Fixed income funds | 44 | % | 48 | % | ||||||||||||
Other funds | 11 | % | 10 | % | ||||||||||||
Equity securities: | 40-45% | 40% | ||||||||||||||
Domestic equity funds - large cap | 27 | % | 24 | % | ||||||||||||
Domestic equity funds - small cap | 12 | % | 12 | % | ||||||||||||
International equity funds | 6 | % | 6 | % | ||||||||||||
Schedule of Pension Plans Assets at Fair Value | The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of December 31, 2014 and 2013. | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | ||||||||||||||||
Fixed income funds | $ | 27,810 | $ | 27,810 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 16,814 | 16,814 | — | — | ||||||||||||
Domestic equity funds - small cap | 7,569 | 7,569 | — | — | ||||||||||||
International equity funds | 3,534 | 3,534 | — | — | ||||||||||||
Other funds | 6,851 | 6,851 | — | — | ||||||||||||
Total assets at fair value | $ | 62,578 | $ | 62,578 | $ | — | $ | — | ||||||||
December 31, 2013 | ||||||||||||||||
Fixed income funds | $ | 25,764 | $ | 25,764 | $ | — | $ | — | ||||||||
Domestic equity funds - large cap | 13,086 | 13,086 | — | — | ||||||||||||
Domestic equity funds - small cap | 6,214 | 6,214 | — | — | ||||||||||||
International equity funds | 3,167 | 3,167 | — | — | ||||||||||||
Other funds | 5,239 | 5,239 | — | — | ||||||||||||
Total assets at fair value | $ | 53,470 | $ | 53,470 | $ | — | $ | — | ||||||||
Fair value is determined based on the net asset value of units held by the plan at period end. |
EQUITY_AWARDS_Tables
EQUITY AWARDS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Stock Option Plan Activity | A summary of stock option plan activity (including the performance-based options) for the years ended December 31, 2014, 2013, and 2012 is provided below: | ||||||||||||||||
Options | Weighted | Weighted | Weighted | Aggregate | |||||||||||||
Outstanding | Average | Average | Average | Intrinsic | |||||||||||||
Exercise | Grant Date | Remaining | Value | ||||||||||||||
Price | Fair Value | Contractual | (in thousands) | ||||||||||||||
Life (in years) | |||||||||||||||||
31-Dec-11 | 1,781,499 | $ | 3.9 | $ | 2.59 | ||||||||||||
Options granted | 2,193,701 | 1.46 | 1.07 | ||||||||||||||
Forfeited | (90,007 | ) | 3.48 | 2.52 | |||||||||||||
31-Dec-12 | 3,885,193 | 2.53 | 1.73 | ||||||||||||||
Options granted | 564,442 | 1.29 | 0.93 | ||||||||||||||
Forfeited | (15,929 | ) | 1.53 | 1.09 | |||||||||||||
31-Dec-13 | 4,433,706 | 2.38 | 1.63 | ||||||||||||||
Options granted | 2,072,108 | 2.98 | 2.34 | ||||||||||||||
Exercised | (41,828 | ) | 2.51 | 1.73 | |||||||||||||
31-Dec-14 | 6,463,986 | $ | 2.57 | $ | 1.86 | 4.6 | |||||||||||
Options exercisable on December 31, 2014 | 3,297,814 | $ | 2.7 | 3.3 | $ | 3,571 | |||||||||||
Options expected to vest as of December 31, 2014 | 3,166,172 | 2.43 | 3,158 | ||||||||||||||
On December 31, 2014, options outstanding had exercise prices ranging from $0.71 to $5.93 and options exercisable had exercise prices ranging from $0.71 to $5.93. | |||||||||||||||||
Assumptions Used to Estimate Fair Value of Stock Options Granted | We used the Black-Scholes option pricing model to estimate the fair value of stock options granted in 2014, 2013, and 2012, with the following assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected weighted-average life of options granted | 4.5 years | 4.5 years | 3.0 - 5.0 years | ||||||||||||||
Range of volatility rates based on historical industry volatility | 115.45% - 116.47% | 100.52% | 94.39% - 102.22% | ||||||||||||||
Range of risk-free interest rates | 1.66% - 1.74% | 0.81% | .57% - .83% | ||||||||||||||
Expected dividend yield | — | — | — |
BUCKSPORT_ENERGY_ASSET_INVESTM1
BUCKSPORT ENERGY ASSET INVESTMENT (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Bucksport Energy Asset Investment | Balances included in the balance sheet related to our proportional interest in this investment at December 31, 2013, were as follows: | |||
(Dollars in thousands) | ||||
Other receivables | $ | 281 | ||
Other assets(1) | 214 | |||
Property, plant, and equipment | $ | 10,692 | ||
Accumulated depreciation | (4,668 | ) | ||
Net property, plant, and equipment | $ | 6,024 | ||
Current liabilities | $ | (83 | ) | |
(1) Represents primarily restricted cash which may be used only to fund the ongoing energy operations of this investment. |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Schedule of Information About Volume and Fair Value Amounts of Derivative Instruments | The following table presents information about the volume and fair value amounts of our derivative instruments: | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | MMBTUs | Fair Value | MMBTUs | Fair Value | ||||||||||||||||||||
Assets/(Liabilities) | Assets/(Liabilities) | |||||||||||||||||||||||
Derivative contracts not currently designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps: | ||||||||||||||||||||||||
Notional amount | 1,876,475 | 6,652,070 | ||||||||||||||||||||||
Prepaid expenses and other assets | $ | — | $ | 15,505 | ||||||||||||||||||||
Accrued liabilities | (6,268 | ) | (4,959 | ) | ||||||||||||||||||||
Schedule of Information About Effect of Derivative Instruments on Accumulated Other Comprehensive Income and Consolidated Statements of Operations | The following tables present information about the effect of our derivative instruments on Accumulated other comprehensive income and the consolidated statements of operations: | |||||||||||||||||||||||
Loss Recognized | Loss Reclassified | |||||||||||||||||||||||
in Accumulated OCI | from Accumulated OCI | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | — | $ | (1,365 | ) | $ | — | $ | — | $ | (283 | ) | ||||||||||
Derivative contracts not currently designated as hedging instruments: | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | (335 | ) | $ | (5,573 | ) | ||||||||||||||||
Loss reclassified from Accumulated OCI to earnings is included in Cost of products sold. | ||||||||||||||||||||||||
Gain (Loss) Recognized on Derivatives | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivative contracts designated as hedging instruments | ||||||||||||||||||||||||
Fixed price energy swaps | $ | — | $ | — | $ | (50 | ) | |||||||||||||||||
Derivative contracts not currently designated as hedging instruments: | ||||||||||||||||||||||||
Fixed price energy swaps | $ | 4,290 | $ | 16,117 | $ | (2,973 | ) | |||||||||||||||||
Gain (loss) recognized on derivatives is included in Cost of products sold. | ||||||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Investments related to deferred compensation plans | $ | 3,670 | $ | 3,670 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 6,268 | $ | — | $ | 6,268 | $ | — | ||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity swaps | $ | 15,505 | $ | — | $ | 15,505 | $ | — | ||||||||
Investments related to deferred compensation plans | 3,495 | 3,495 | — | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity swaps | $ | 4,959 | $ | — | $ | 4,959 | $ | — | ||||||||
Fair values are based on observable market data. | ||||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of Cumulative Charges Incurred Related to Shutdown | The following table details the charges incurred related primarily to the mill closure in 2012 as included in Restructuring charges in our accompanying consolidated statements of operations: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2013 | 2012 | Cumulative | |||||||||
Incurred | ||||||||||||
Property and equipment | $ | — | $ | 66,521 | $ | 66,521 | ||||||
Severance and benefit costs | 688 | 19,373 | 20,061 | |||||||||
Write-off of spare parts and inventory | — | 6,934 | 6,934 | |||||||||
Trademark impairment | — | 3,693 | 3,693 | |||||||||
Purchase obligations and commitments | (594 | ) | 2,420 | 1,826 | ||||||||
Other miscellaneous costs | 1,284 | 3,463 | 4,747 | |||||||||
Total restructuring charges | $ | 1,378 | $ | 102,404 | $ | 103,782 | ||||||
The following table details the charges incurred related primarily to the Bucksport mill closure in 2014 as included in Restructuring charges on our accompanying consolidated statements of operations: | ||||||||||||
(Dollars in thousands) | Year Ended December 31, 2014 | Cumulative | ||||||||||
Incurred | ||||||||||||
Property and equipment | $ | 88,728 | $ | 88,728 | ||||||||
Severance and benefit costs | 26,812 | 26,812 | ||||||||||
Write-off of spare parts, inventory and other assets | 13,876 | 13,876 | ||||||||||
Write-off of purchase obligations and commitments | 1,531 | 1,531 | ||||||||||
Other miscellaneous costs | 3,539 | 3,539 | ||||||||||
Total restructuring charges | $ | 134,486 | $ | 134,486 | ||||||||
Schedule of Changes in Shutdown Liability | The following details the changes in our associated restructuring reserve liabilities during the years ended December 31, 2014 and 2013, which are included in Accrued liabilities on our consolidated balance sheets: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Beginning balance of reserve | $ | — | $ | 5,098 | ||||||||
Severance and benefit costs | 25,768 | 196 | ||||||||||
Severance and benefit payments | (3,118 | ) | (3,678 | ) | ||||||||
Purchase obligations | 1,531 | — | ||||||||||
Payments on purchase obligations | — | (561 | ) | |||||||||
Severance and benefit reserve adjustments | — | (461 | ) | |||||||||
Purchase obligation reserve adjustments | — | (594 | ) | |||||||||
Ending balance of reserve | $ | 24,181 | $ | — | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Summary of the Components of the (Benefit) Provision for Income Taxes | The following is a summary of the components of the (benefit) provision for income taxes for Verso: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current tax provision (benefit): | ||||||||||||
U.S. federal | $ | — | $ | — | $ | — | ||||||
U.S. state and local | (594 | ) | 38 | (96 | ) | |||||||
Total current tax provision (benefit) | (594 | ) | 38 | (96 | ) | |||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | (111,899 | ) | (120,029 | ) | (58,563 | ) | ||||||
U.S. state and local | (14,371 | ) | (12,621 | ) | (6,486 | ) | ||||||
Total deferred tax (benefit) provision | (126,270 | ) | (132,650 | ) | (65,049 | ) | ||||||
Less: valuation allowance | 123,875 | 132,050 | 63,721 | |||||||||
Total income tax (benefit) provision | $ | (2,989 | ) | $ | (562 | ) | $ | (1,424 | ) | |||
Reconciliation of Income Tax Expense using the Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense | A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Tax at Statutory U.S. Rate of 34% | $ | (121,019 | ) | $ | (38,001 | ) | $ | (59,586 | ) | |||
Increase resulting from: | ||||||||||||
Nondeductible transaction costs | 9,274 | 1,756 | — | |||||||||
Meals and entertainment | 173 | 173 | 197 | |||||||||
Nondeductible lobbying expenses | 162 | 80 | 46 | |||||||||
Disallowed compensation | — | — | 680 | |||||||||
Other disallowed expenses | 3 | 4 | 36 | |||||||||
Net permanent differences | 9,612 | 2,013 | 959 | |||||||||
Valuation allowance | 123,875 | 132,050 | 63,721 | |||||||||
Benefit from change in prior tax position | — | (93,039 | ) | — | ||||||||
State income taxes (benefit) | (14,763 | ) | (3,740 | ) | (6,550 | ) | ||||||
Other | (694 | ) | 155 | 32 | ||||||||
Total income tax (benefit) provision | $ | (2,989 | ) | $ | (562 | ) | $ | (1,424 | ) | |||
Summary of the Significant Components of Deferred Tax Position | The following is a summary of the significant components of our deferred tax position: | |||||||||||
Year Ended December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | $ | 479,569 | $ | 417,536 | ||||||||
Pension | 14,547 | 9,606 | ||||||||||
Payment-in-kind interest | 10,142 | 10,211 | ||||||||||
Compensation reserves | 10,025 | 8,348 | ||||||||||
Inventory reserves | 9,875 | 7,546 | ||||||||||
Inventory capitalization | 3,343 | 2,885 | ||||||||||
Capitalized expenses | 5,143 | — | ||||||||||
Bad debt reserves | 761 | 841 | ||||||||||
Other | 2,230 | 2,046 | ||||||||||
Gross deferred tax assets | 535,635 | 459,019 | ||||||||||
Less: valuation allowance | (453,729 | ) | (323,335 | ) | ||||||||
Deferred tax assets, net of allowance | $ | 81,906 | $ | 135,684 | ||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant, and equipment | $ | (52,183 | ) | $ | (100,507 | ) | ||||||
Cancellation of debt income deferral | (17,335 | ) | (21,878 | ) | ||||||||
Deferred repair charges | (7,631 | ) | (6,188 | ) | ||||||||
Intangible assets | (5,578 | ) | (8,241 | ) | ||||||||
Unrealized hedge income | (345 | ) | (4,046 | ) | ||||||||
Prepaid expenses | (2,613 | ) | (998 | ) | ||||||||
Total deferred tax liabilities | (85,685 | ) | (141,858 | ) | ||||||||
Net deferred tax liabilities | $ | (3,779 | ) | $ | (6,174 | ) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases | The following table, as of December 31, 2014, represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year: | |||
(Dollars in thousands) | ||||
2015 | $ | 2,776 | ||
2016 | 1,166 | |||
2017 | 649 | |||
2018 | 360 | |||
2019 | 217 | |||
Thereafter | 33 | |||
Total | $ | 5,201 | ||
Schedule of Unconditional Purchase Obligations | The following table, as of December 31, 2014, summarizes our unconditional purchase obligations. | |||
(Dollars in thousands) | ||||
2015 | $ | 55,828 | ||
2016 | 28,520 | |||
2017 | 26,973 | |||
2018 | 26,163 | |||
2019 | 26,163 | |||
Thereafter | 95,258 | |||
Total | $ | 258,905 | ||
NEW_MARKET_TAX_CREDIT_ENTITIES1
NEW MARKET TAX CREDIT ENTITIES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Schedule of Impact of Consolidated VIE | The following table summarizes the impact of the VIE consolidated by Verso Holdings as of December 31, 2014 and 2013: | |||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Current assets | $ | 14 | $ | 15 | $ | 14 | $ | 15 | ||||||||
Non-current assets | 85 | 85 | 23,390 | 23,390 | ||||||||||||
Total assets | $ | 99 | $ | 100 | $ | 23,404 | $ | 23,405 | ||||||||
Current liabilities | 15 | 15 | 141 | 141 | ||||||||||||
Long-term debt | — | — | 23,305 | 23,305 | ||||||||||||
Other non-current liabilities | 7,923 | 7,923 | 7,923 | 7,923 | ||||||||||||
Total liabilities | $ | 7,938 | $ | 7,938 | $ | 31,369 | $ | 31,369 | ||||||||
Amounts presented in the consolidated balance sheets and the table above are adjusted for intercompany eliminations. |
INFORMATION_BY_INDUSTRY_SEGMEN1
INFORMATION BY INDUSTRY SEGMENT (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of Industry Segment Data | The following table summarizes the industry segments for the years ended December 31, 2014, 2013, and 2012: | |||||||||||||||||||||||
VERSO | VERSO HOLDINGS | |||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Coated papers | $ | 939,105 | $ | 1,062,555 | $ | 1,177,050 | $ | 939,105 | $ | 1,062,555 | $ | 1,177,050 | ||||||||||||
Hardwood market pulp | 160,651 | 156,099 | 140,816 | 160,651 | 156,099 | 140,816 | ||||||||||||||||||
Other | 196,857 | 170,245 | 156,746 | 196,857 | 170,245 | 156,746 | ||||||||||||||||||
Total | $ | 1,296,613 | $ | 1,388,899 | $ | 1,474,612 | $ | 1,296,613 | $ | 1,388,899 | $ | 1,474,612 | ||||||||||||
Operating (Loss) Income: | ||||||||||||||||||||||||
Coated papers (1) | $ | (165,124 | ) | $ | 14,546 | $ | (26,166 | ) | $ | (165,124 | ) | $ | 14,546 | $ | (26,115 | ) | ||||||||
Hardwood market pulp | 18,950 | 21,540 | 9,215 | 18,950 | 21,540 | 9,215 | ||||||||||||||||||
Other(1) | (28,543 | ) | (2,186 | ) | (15,470 | ) | (28,543 | ) | (2,186 | ) | (15,470 | ) | ||||||||||||
Total | $ | (174,717 | ) | $ | 33,900 | $ | (32,421 | ) | $ | (174,717 | ) | $ | 33,900 | $ | (32,370 | ) | ||||||||
Depreciation, Amortization, and Depletion: | ||||||||||||||||||||||||
Coated papers | $ | 65,930 | $ | 77,976 | $ | 90,740 | $ | 65,930 | $ | 77,976 | $ | 90,740 | ||||||||||||
Hardwood market pulp | 15,325 | 18,125 | 18,000 | 15,325 | 18,125 | 18,000 | ||||||||||||||||||
Other | 9,642 | 8,629 | 9,438 | 9,642 | 8,629 | 9,438 | ||||||||||||||||||
Total | $ | 90,897 | $ | 104,730 | $ | 118,178 | $ | 90,897 | $ | 104,730 | $ | 118,178 | ||||||||||||
Capital Spending: | ||||||||||||||||||||||||
Coated papers | $ | 31,657 | $ | 33,595 | $ | 57,807 | $ | 31,657 | $ | 33,595 | $ | 57,807 | ||||||||||||
Hardwood market pulp (2) | 9,625 | 5,752 | (325 | ) | 9,625 | 5,752 | (325 | ) | ||||||||||||||||
Other | 681 | 1,313 | 2,427 | 681 | 1,313 | 2,427 | ||||||||||||||||||
Total | $ | 41,963 | $ | 40,660 | $ | 59,909 | $ | 41,963 | $ | 40,660 | $ | 59,909 | ||||||||||||
-1 | Operating loss of the coated papers and other segment includes $134.5 million in Restructuring charges recognized in 2014. Operating loss of $102.4 million in Restructuring charges, offset by $60.6 million in Other operating income, was recognized in 2012 and attributed to the coated papers segment. | |||||||||||||||||||||||
-2 | Capital spending of the pulp segment includes the impact of a $14.7 million cash inflow received in 2012 from governmental grants associated with a renewable energy project at our mill in Quinnesec, Michigan, due to spending in 2011. |
CONDENSED_CONSOLIDATING_FINANC1
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 5,526 | $ | 5 | $ | 10 | $ | — | $ | 5,541 | ||||||||||||||
Accounts receivable, net | — | — | 87,866 | — | — | — | 87,866 | |||||||||||||||||||||
Inventories | — | — | 110,724 | — | — | — | 110,724 | |||||||||||||||||||||
Assets held for sale | — | — | 60,014 | 950 | — | — | 60,964 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 9,308 | 1,500 | 4 | — | 10,812 | |||||||||||||||||||||
Current assets | — | — | 273,438 | 2,455 | 14 | — | 275,907 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 507,619 | 23,206 | — | (288 | ) | 530,537 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,396,872 | — | 2,335 | 26,417 | 31,153 | (1,456,777 | ) | — | ||||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 93,311 | 1,101 | 85 | — | 94,497 | |||||||||||||||||||||
Total assets | $ | 1,396,872 | $ | — | $ | 876,703 | $ | 53,179 | $ | 31,252 | $ | (1,457,065 | ) | $ | 900,941 | |||||||||||||
LIABILITIES AND MEMBER’S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 62,799 | $ | — | $ | 15 | $ | — | $ | 62,814 | ||||||||||||||
Accrued liabilities | 77,581 | — | 127,432 | 374 | 126 | — | 205,513 | |||||||||||||||||||||
Current maturities of long-term debt | — | — | — | 30,000 | — | — | 30,000 | |||||||||||||||||||||
Liabilities related to assets held for sale | — | — | 2,198 | — | — | — | 2,198 | |||||||||||||||||||||
Current liabilities | 77,581 | — | 192,429 | 30,374 | 141 | — | 300,525 | |||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,423,289 | 33,488 | — | (1,456,777 | ) | — | ||||||||||||||||||||
Investment in subsidiaries | 802,702 | — | 13,341 | — | — | (816,043 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,296,906 | — | — | — | 23,305 | — | 1,320,211 | |||||||||||||||||||||
Other liabilities | — | — | 52,599 | — | 8,142 | (219 | ) | 60,522 | ||||||||||||||||||||
Member's (deficit) equity | (780,317 | ) | — | (804,955 | ) | (10,683 | ) | (336 | ) | 815,974 | (780,317 | ) | ||||||||||||||||
Total liabilities and equity | $ | 1,396,872 | $ | — | $ | 876,703 | $ | 53,179 | $ | 31,252 | $ | (1,457,065 | ) | $ | 900,941 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Accounts receivable, net | — | — | 104,624 | — | — | — | 104,624 | |||||||||||||||||||||
Inventories | — | — | 137,687 | — | — | — | 137,687 | |||||||||||||||||||||
Assets held for sale | — | — | 50 | — | — | — | 50 | |||||||||||||||||||||
Prepaid expenses and other assets | — | — | 20,616 | — | 5 | — | 20,621 | |||||||||||||||||||||
Current assets | — | — | 274,207 | — | 15 | — | 274,222 | |||||||||||||||||||||
Property, plant, and equipment, net | — | — | 724,063 | 19,171 | — | (288 | ) | 742,946 | ||||||||||||||||||||
Intercompany/affiliate receivable | 1,335,323 | — | 1,393 | — | 31,153 | (1,367,869 | ) | — | ||||||||||||||||||||
Intangibles and other assets, net(1) | — | — | 103,424 | 1,251 | 85 | — | 104,760 | |||||||||||||||||||||
Total assets | $ | 1,335,323 | $ | — | $ | 1,103,087 | $ | 20,422 | $ | 31,253 | $ | (1,368,157 | ) | $ | 1,121,928 | |||||||||||||
LIABILITIES AND MEMBER’S EQUITY | ||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 88,397 | $ | — | $ | 15 | $ | — | $ | 88,412 | ||||||||||||||
Accrued liabilities | 58,847 | — | 63,462 | — | 126 | — | 122,435 | |||||||||||||||||||||
Current maturities of long-term debt | 13,310 | — | — | — | — | — | 13,310 | |||||||||||||||||||||
Current liabilities | 72,157 | — | 151,859 | — | 141 | — | 224,157 | |||||||||||||||||||||
Intercompany/affiliate payable | — | — | 1,335,323 | 32,546 | — | (1,367,869 | ) | — | ||||||||||||||||||||
Investment in subsidiaries (3) | 439,125 | — | 12,124 | — | — | (451,249 | ) | — | ||||||||||||||||||||
Long-term debt(2) | 1,235,167 | — | — | — | 23,305 | — | 1,258,472 | |||||||||||||||||||||
Other liabilities | — | — | 42,502 | — | 8,087 | (164 | ) | 50,425 | ||||||||||||||||||||
Member's (deficit) equity | (411,126 | ) | — | (438,721 | ) | (12,124 | ) | (280 | ) | 451,125 | (411,126 | ) | ||||||||||||||||
Total liabilities and equity | $ | 1,335,323 | $ | — | $ | 1,103,087 | $ | 20,422 | $ | 31,253 | $ | (1,368,157 | ) | $ | 1,121,928 | |||||||||||||
(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance. | ||||||||||||||||||||||||||||
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance. | ||||||||||||||||||||||||||||
(3) Investment in subsidiaries has been corrected to reflect presentation as a liability in conformity with current year presentation. | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,296,613 | $ | 3,098 | $ | — | $ | (3,098 | ) | $ | 1,296,613 | |||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,177,981 | 1,119 | — | (3,098 | ) | 1,176,002 | ||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 89,509 | 1,388 | 55 | (55 | ) | 90,897 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 71,336 | (1,422 | ) | 31 | — | 69,945 | ||||||||||||||||||||
Restructuring charges | — | — | 134,486 | — | — | — | 134,486 | |||||||||||||||||||||
Interest income | (141,246 | ) | — | (1,517 | ) | — | (1,546 | ) | 142,792 | (1,517 | ) | |||||||||||||||||
Interest expense | 141,246 | — | 139,385 | 4,492 | 1,515 | (142,792 | ) | 143,846 | ||||||||||||||||||||
Other loss, net | — | — | 38,898 | — | — | — | 38,898 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (355,944 | ) | — | — | — | — | 355,944 | — | ||||||||||||||||||||
Net loss | $ | (355,944 | ) | $ | — | $ | (353,465 | ) | $ | (2,479 | ) | $ | (55 | ) | $ | 355,999 | $ | (355,944 | ) | |||||||||
Other comprehensive loss | (15,682 | ) | — | (15,682 | ) | — | — | 15,682 | (15,682 | ) | ||||||||||||||||||
Comprehensive loss | $ | (371,626 | ) | $ | — | $ | (369,147 | ) | $ | (2,479 | ) | $ | (55 | ) | $ | 371,681 | $ | (371,626 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,388,899 | $ | — | $ | — | $ | — | $ | 1,388,899 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,179,085 | — | — | — | 1,179,085 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 103,655 | 1,075 | 55 | (55 | ) | 104,730 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 75,452 | (1,707 | ) | 32 | — | 73,777 | ||||||||||||||||||||
Restructuring charges | — | — | 1,378 | — | — | — | 1,378 | |||||||||||||||||||||
Other operating income | — | — | (3,971 | ) | — | — | — | (3,971 | ) | |||||||||||||||||||
Interest income | (138,298 | ) | — | (1,539 | ) | — | (1,546 | ) | 139,844 | (1,539 | ) | |||||||||||||||||
Interest expense | 138,298 | — | 137,083 | 1,574 | 1,515 | (139,844 | ) | 138,626 | ||||||||||||||||||||
Other loss, net | 2,800 | — | 5,165 | — | — | — | 7,965 | |||||||||||||||||||||
Equity in net loss of subsidiaries | (108,352 | ) | — | — | — | — | 108,352 | — | ||||||||||||||||||||
Net loss | $ | (111,152 | ) | $ | — | $ | (107,409 | ) | $ | (942 | ) | $ | (56 | ) | $ | 108,407 | $ | (111,152 | ) | |||||||||
Other comprehensive income | 13,838 | — | 13,838 | — | — | (13,838 | ) | 13,838 | ||||||||||||||||||||
Comprehensive loss | $ | (97,314 | ) | $ | — | $ | (93,571 | ) | $ | (942 | ) | $ | (56 | ) | $ | 94,569 | $ | (97,314 | ) | |||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net sales | $ | — | $ | — | $ | 1,474,612 | $ | — | $ | — | $ | — | $ | 1,474,612 | ||||||||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | — | — | 1,272,630 | — | — | — | 1,272,630 | |||||||||||||||||||||
Depreciation, amortization, and depletion | — | — | 117,014 | 1,164 | 55 | (55 | ) | 118,178 | ||||||||||||||||||||
Selling, general, and administrative expenses | — | — | 76,039 | (1,707 | ) | 32 | — | 74,364 | ||||||||||||||||||||
Restructuring charges | — | — | 102,404 | — | — | — | 102,404 | |||||||||||||||||||||
Other operating income | — | — | (60,594 | ) | — | — | — | (60,594 | ) | |||||||||||||||||||
Interest income | (129,801 | ) | — | (1,523 | ) | — | (1,546 | ) | 131,347 | (1,523 | ) | |||||||||||||||||
Interest expense | 129,801 | — | 126,399 | 1,575 | 1,515 | (131,347 | ) | 127,943 | ||||||||||||||||||||
Other loss, net | 8,244 | — | (864 | ) | — | — | — | 7,380 | ||||||||||||||||||||
Equity in net loss of subsidiaries | $ | (157,926 | ) | $ | — | $ | — | $ | — | $ | — | $ | 157,926 | $ | — | |||||||||||||
Net loss | (166,170 | ) | — | (156,893 | ) | (1,032 | ) | (56 | ) | 157,981 | (166,170 | ) | ||||||||||||||||
Other comprehensive income | 3,385 | $ | — | 3,385 | $ | — | $ | — | (3,385 | ) | 3,385 | |||||||||||||||||
Comprehensive loss | $ | (162,785 | ) | $ | — | $ | (153,508 | ) | $ | (1,032 | ) | $ | (56 | ) | $ | 154,596 | $ | (162,785 | ) | |||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (60,051 | ) | $ | 1,708 | $ | — | $ | — | $ | (58,343 | ) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 766 | 43 | — | — | 809 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 2,222 | (1,378 | ) | — | — | 844 | ||||||||||||||||||||
Capital expenditures | — | — | (41,743 | ) | (220 | ) | — | — | (41,963 | ) | ||||||||||||||||||
Other investing activities | — | — | 15,020 | — | — | — | 15,020 | |||||||||||||||||||||
Advances to subsidiaries | (326,680 | ) | — | — | — | — | 326,680 | — | ||||||||||||||||||||
Payments from subsidiaries | 276,311 | — | — | — | — | (276,311 | ) | — | ||||||||||||||||||||
Net cash used in investing activities | (50,369 | ) | — | (23,735 | ) | (1,555 | ) | — | 50,369 | (25,290 | ) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 298,250 | — | — | 135,199 | — | — | 433,449 | |||||||||||||||||||||
Payments on revolving credit facilities | (235,250 | ) | — | — | (105,199 | ) | — | — | (340,449 | ) | ||||||||||||||||||
Repayments of long-term debt | (13,310 | ) | — | — | — | — | — | (13,310 | ) | |||||||||||||||||||
Contribution from Verso | 717 | — | — | — | — | — | 717 | |||||||||||||||||||||
Cash distributions | (38 | ) | — | — | — | — | — | (38 | ) | |||||||||||||||||||
Return of capital to parent | (1,296 | ) | 1,296 | — | ||||||||||||||||||||||||
Debt issuance costs | — | — | — | (2,435 | ) | — | — | (2,435 | ) | |||||||||||||||||||
Advances from parent | — | — | 326,680 | — | — | (326,680 | ) | — | ||||||||||||||||||||
Payments to parent | (248,598 | ) | (26,417 | ) | 275,015 | — | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | 50,369 | — | 78,082 | (148 | ) | — | (50,369 | ) | 77,934 | |||||||||||||||||||
Change in cash and cash equivalents | — | — | (5,704 | ) | 5 | — | — | (5,699 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 11,230 | — | 10 | — | 11,240 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 5,526 | $ | 5 | $ | 10 | $ | — | $ | 5,541 | ||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non- | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Guarantor | Guarantor | ||||||||||||||||||||||||
Subsidiary | Affiliate | |||||||||||||||||||||||||||
Net cash used in operating activities | $ | — | $ | — | $ | (27,609 | ) | $ | 154 | $ | (7 | ) | $ | — | $ | (27,462 | ) | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from sale of assets | — | — | 28,397 | — | — | — | 28,397 | |||||||||||||||||||||
Transfers to restricted cash | — | — | (1,338 | ) | (154 | ) | — | — | (1,492 | ) | ||||||||||||||||||
Capital expenditures | — | — | (40,660 | ) | — | — | — | (40,660 | ) | |||||||||||||||||||
Return of capital to Parent Issuer | 8,653 | — | — | — | — | (8,653 | ) | — | ||||||||||||||||||||
Advances to subsidiaries | (145,000 | ) | — | — | — | — | 145,000 | — | ||||||||||||||||||||
Payments from subsidiaries | 145,360 | — | — | — | — | (145,360 | ) | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 9,013 | — | (13,601 | ) | (154 | ) | — | (9,013 | ) | (13,755 | ) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 145,000 | — | — | — | — | — | 145,000 | |||||||||||||||||||||
Payments on revolving credit facilities | (145,000 | ) | — | — | — | — | — | (145,000 | ) | |||||||||||||||||||
Debt issuance costs | (220 | ) | — | — | — | — | — | (220 | ) | |||||||||||||||||||
Return of capital to Verso | (8,653 | ) | — | — | — | — | — | (8,653 | ) | |||||||||||||||||||
Cash distributions | (140 | ) | — | — | — | — | — | (140 | ) | |||||||||||||||||||
Return of capital to Parent Issuer | — | — | (8,653 | ) | — | — | 8,653 | — | ||||||||||||||||||||
Advances from parent | — | — | 145,000 | — | — | (145,000 | ) | — | ||||||||||||||||||||
Payments to parent | — | — | (145,360 | ) | — | — | 145,360 | — | ||||||||||||||||||||
Net cash used in financing activities | (9,013 | ) | — | (9,013 | ) | — | — | 9,013 | (9,013 | ) | ||||||||||||||||||
Change in cash and cash equivalents | — | — | (50,223 | ) | — | (7 | ) | — | (50,230 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 61,453 | — | 17 | — | 61,470 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 11,230 | $ | — | $ | 10 | $ | — | $ | 11,240 | ||||||||||||||
Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation. | ||||||||||||||||||||||||||||
Verso Paper Holdings LLC | ||||||||||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Parent | Subsidiary | Guarantor | Non-Guarantor | Non- Guarantor | Eliminations | Consolidated | |||||||||||||||||||||
Issuer | Issuer | Subsidiaries | Subsidiary | Affiliate | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 9,449 | $ | 1,909 | $ | (56 | ) | $ | — | $ | 11,302 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Proceeds from insurance settlement | — | — | 51,003 | — | — | — | 51,003 | |||||||||||||||||||||
Proceeds from sale of fixed assets | — | — | 1,731 | — | — | — | 1,731 | |||||||||||||||||||||
Transfers (to) from restricted cash | — | — | 184 | (78 | ) | — | — | 106 | ||||||||||||||||||||
Capital expenditures | — | — | (68,585 | ) | 8,676 | — | — | (59,909 | ) | |||||||||||||||||||
Advances to subsidiaries | (454,467 | ) | — | — | — | — | 454,467 | — | ||||||||||||||||||||
Payment from subsidiaries | 492,025 | — | 10,507 | — | — | (502,532 | ) | — | ||||||||||||||||||||
Net cash provided by (used in) investing activities | 37,558 | — | (5,160 | ) | 8,598 | — | (48,065 | ) | (7,069 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Borrowings on revolving credit facilities | 112,500 | — | — | — | — | — | 112,500 | |||||||||||||||||||||
Payments on revolving credit facilities | (112,500 | ) | — | — | — | — | — | (112,500 | ) | |||||||||||||||||||
Proceeds from long-term debt | 341,191 | — | — | — | — | — | 341,191 | |||||||||||||||||||||
Repayments of long-term debt | (354,984 | ) | — | — | — | — | — | (354,984 | ) | |||||||||||||||||||
Debt issuance costs | (24,459 | ) | — | — | — | (24,459 | ) | |||||||||||||||||||||
Contribution from parent | 776 | — | — | — | — | — | 776 | |||||||||||||||||||||
Cash distributions | (82 | ) | — | — | (10,507 | ) | — | 10,507 | (82 | ) | ||||||||||||||||||
Advances from parent | — | — | 454,467 | — | — | (454,467 | ) | — | ||||||||||||||||||||
Payments to parent | — | — | (492,025 | ) | — | — | 492,025 | — | ||||||||||||||||||||
Net cash used in financing activities | (37,558 | ) | — | (37,558 | ) | (10,507 | ) | — | 48,065 | (37,558 | ) | |||||||||||||||||
Change in cash and cash equivalents | — | — | (33,269 | ) | — | (56 | ) | — | (33,325 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | 94,722 | — | 73 | — | 94,795 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 61,453 | $ | — | $ | 17 | $ | — | $ | 61,470 | ||||||||||||||
Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation. |
QUARTERLY_DATA_Tables
QUARTERLY DATA (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Verso’s quarterly financial data (unaudited) is as follows: | |||||||||||||||||||||||||||||||
VERSO CORPORATION | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||
Summary Statement of Operations Data: | ||||||||||||||||||||||||||||||||
Net sales | $ | 326.4 | $ | 350.2 | $ | 320.9 | $ | 299.1 | $ | 350.4 | $ | 374.9 | $ | 330.4 | $ | 333.2 | ||||||||||||||||
Gross margin(1) | 23.2 | 55.4 | 45.2 | (3.2 | ) | 62.8 | 69.1 | 36.5 | 41.4 | |||||||||||||||||||||||
Cost of products sold | 319.9 | 317.9 | 301.1 | 328 | 313.7 | 332.1 | 320.2 | 317.8 | ||||||||||||||||||||||||
Selling, general, and administrative expenses | 16.7 | 17.8 | 17.8 | 17.6 | 17.8 | 18 | 19.2 | 18.8 | ||||||||||||||||||||||||
Restructuring charges (2) | 134.5 | — | — | — | 0.1 | 0.1 | 0.2 | 1 | ||||||||||||||||||||||||
Other operating income (3) | — | — | — | — | — | — | (0.7 | ) | (3.3 | ) | ||||||||||||||||||||||
Interest expense | 35.4 | 36.7 | 35.7 | 34.5 | 34.3 | 34.4 | 34.4 | 34.7 | ||||||||||||||||||||||||
Other loss, net | 6.2 | 14 | 9.1 | 9.6 | 5.1 | 0.1 | 0.1 | 2.6 | ||||||||||||||||||||||||
Income tax benefit | (2.3 | ) | (0.6 | ) | — | — | (0.6 | ) | — | — | — | |||||||||||||||||||||
Net loss | (184.0 | ) | (35.6 | ) | (42.8 | ) | (90.6 | ) | (20.0 | ) | (9.8 | ) | (43.0 | ) | (38.4 | ) | ||||||||||||||||
Share Data(4): | ||||||||||||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | (3.45 | ) | $ | (0.67 | ) | $ | (0.80 | ) | $ | (1.70 | ) | $ | (0.38 | ) | $ | (0.18 | ) | $ | (0.81 | ) | $ | (0.72 | ) | ||||||||
Diluted | (3.45 | ) | (0.67 | ) | (0.80 | ) | (1.70 | ) | (0.38 | ) | (0.18 | ) | (0.81 | ) | (0.72 | ) | ||||||||||||||||
Weighted average shares of common stock outstanding (thousands): | ||||||||||||||||||||||||||||||||
Basic | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | ||||||||||||||||||||||||
Diluted | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | ||||||||||||||||||||||||
Closing price per share: | ||||||||||||||||||||||||||||||||
High | $ | 3.43 | $ | 3.48 | $ | 3.07 | $ | 4.38 | $ | 0.85 | $ | 1.13 | $ | 1.29 | $ | 1.65 | ||||||||||||||||
Low | 2.34 | 2.2 | 1.69 | 0.65 | 0.54 | 0.62 | 1.03 | 0.98 | ||||||||||||||||||||||||
Period-end | 3.43 | 3.2 | 2.1 | 2.89 | 0.63 | 0.76 | 1.15 | 1.32 | ||||||||||||||||||||||||
(1) Gross margin represents net sales less cost of products sold, excluding depreciation, amortization, and depletion. | ||||||||||||||||||||||||||||||||
(2) Represents costs primarily associated with the closure of the Bucksport mill in 2014 and the former Sartell mill in 2012. | ||||||||||||||||||||||||||||||||
(3) Represents gains on sale of the former Sartell mill and the assets of Fiber Farm LLC in 2013. | ||||||||||||||||||||||||||||||||
(4) No dividends were declared or paid in any of the periods presented. |
Recovered_Sheet1
Summary of Business and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 14-May-08 | Sep. 30, 2014 | Dec. 31, 2013 |
Segment | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Liabilities related to assets held for sale | $2,198,000 | $0 | $0 | |||
Initial public offering | 14 | |||||
Market segments | 3 | |||||
Debt outstanding | 1,300,000,000 | |||||
Interest cost, capitalized | 1,900,000 | 1,300,000 | ||||
Trademarks impairment charge | 6,300,000 | 1,600,000 | 3,693,000 | |||
Trade accounts receivable - unaffiliated customers | 84,000,000 | 100,700,000 | 100,700,000 | |||
Concentration Risk, Percentage | 27.00% | |||||
Allowance for doubtful accounts | 600,000 | 700,000 | 700,000 | |||
Bad debt expenses | -100,000 | 300,000 | 100,000 | |||
Maximum | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Planned maintenance costs to be expensed as incurred | 500,000 | |||||
Trademarks | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Trademarks impairment charge | 3,700,000 | 6,300,000 | 1,600,000 | |||
Customer Related Intangibles [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Finite-lived intangible assets, estimated useful lives | 25 years | |||||
Patents | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Finite-lived intangible assets, estimated useful lives | 10 years | |||||
Restructuring Charges | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Fixed asset impairment charge | 66,500,000 | |||||
Asset retirement obligation | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Liabilities related to assets held for sale | 1,914,000 | 0 | 0 | |||
Intangibles and other assets | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Restricted cash | 800,000 | 800,000 | 800,000 | |||
Revolving Credit Facilities | Line of credit [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Credit facility, remaining borrowing capacity | $66,900,000 |
Recovered_Sheet2
Summary of Business and Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Leasehold Improvements | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | Over the shorter of the term of the lease or the useful life of the improvements |
Minimum | Building | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Minimum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 10 years |
Minimum | Furniture and Fixtures | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Minimum | Computer Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Maximum | Building | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 40 years |
Maximum | Machinery and Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Maximum | Furniture and Fixtures | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 10 years |
Maximum | Computer Equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 6 years |
Recovered_Sheet3
Summary of Business and Significant Accounting Policies - Asset Retirement Obligations Included in Other Liabilities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation - beginning balance | $13,194 | $11,854 |
Adjustment to existing liabilities | -3,733 | -190 |
Liabilities related to assets held for sale | -2,198 | 0 |
Accretion expense | 683 | 887 |
Settlement of existing liabilities | -262 | -903 |
Liabilities incurred | 0 | 1,546 |
Asset retirement obligation - ending balance | 7,968 | 13,194 |
Less: Current portion | -453 | -486 |
Non-current portion of asset retirement obligations, December 31 | 7,515 | 12,708 |
Asset retirement obligation | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities related to assets held for sale | ($1,914) | $0 |
SUMMARY_OF_BUSINESS_AND_SIGNIF3
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Summary of Business and Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Begining balance | ($11,435) | ($25,273) | |
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | 1,363 | 2,617 | |
Pension liability adjustment | -17,045 | 11,221 | |
Other comprehensive (loss) income | -15,682 | 13,838 | 3,385 |
Ending balance | -27,117 | -11,435 | -25,273 |
Losses on Derivative Financial Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Begining balance | 0 | -335 | |
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | 0 | 335 | |
Other comprehensive (loss) income | 0 | 335 | |
Ending balance | 0 | 0 | |
Defined Benefit Pension Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Begining balance | -11,435 | -24,938 | |
Amounts reclassified from Accumulated other comprehensive income to Cost of products sold | 1,363 | 2,282 | |
Pension liability adjustment | -17,045 | 11,221 | |
Other comprehensive (loss) income | -15,682 | 13,503 | |
Ending balance | ($27,117) | ($11,435) |
Inventories_Detail
Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $13,337 | $25,843 |
Woodyard logs | 5,779 | 6,602 |
Work-in-process | 9,274 | 14,738 |
Finished goods | 62,477 | 60,919 |
Replacement parts and other supplies | 19,857 | 29,585 |
Inventories | $110,724 | $137,687 |
ACQUISITIONS_AND_DISPOSITIONS_1
ACQUISITIONS AND DISPOSITIONS (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Asset impairment | $102,600,000 | ||||||||||
Other (income) loss, net | -6,200,000 | -14,000,000 | -9,100,000 | -9,600,000 | -5,100,000 | -100,000 | -100,000 | -2,600,000 | -38,898,000 | -7,965,000 | -7,379,000 |
Proceeds from insurance settlement in excess of costs and property damages incurred | 60,600,000 | ||||||||||
Proceeds from insurance settlement | $0 | $0 | $51,003,000 |
ACQUISITIONS_AND_DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS (Schedule of Assets and Liabilities Held for Sale) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Prepaid expenses and other assets | $1,353 | |
Property, plant, and equipment, net | 58,554 | 0 |
Intangibles and other assets, net | 1,057 | 50 |
Assets held for sale | 60,964 | 50 |
Liabilities related to assets held for sale | -2,198 | 0 |
Asset Retirement Obligations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | $0 |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Land and land improvements | $26,358 | $30,547 |
Building and leasehold improvements | 111,812 | 154,521 |
Machinery, equipment, and other | 1,082,030 | 1,301,368 |
Construction-in-progress | 14,401 | 37,100 |
Property, plant, and equipment, gross | 1,234,601 | 1,523,536 |
Accumulated depreciation | -704,064 | -780,590 |
Property, plant, and equipment, net | $530,537 | $742,946 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $90.20 | $103.90 | $117.20 |
Capital expenditures that were unpaid and included in accounts payable and accrued liabilities | $1.20 | $11.50 |
Intangibles_and_Other_Assets_D
Intangibles and Other Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | $4,701 | $5,416 |
Unamortizable intangible assets: | ||
Indefinite-Lived Trademarks | 9,880 | 16,180 |
Other assets: | ||
Financing costs, net of accumulated amortization of $18.8 million on December 31, 2014, and $13.6 million on December 31, 2013 | 23,118 | 28,761 |
Deferred major repair | 21,118 | 16,218 |
Replacement parts, net | 2,838 | 3,465 |
Restricted cash | 2,603 | 4,946 |
Other | 6,934 | 6,469 |
Total other assets | 56,611 | 59,859 |
Intangibles and other assets | 71,192 | 81,455 |
Customer Relationships | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | 4,520 | 5,120 |
Patents | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | 181 | 296 |
VERSO PAPER HOLDINGS LLC | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | 4,701 | 5,416 |
Unamortizable intangible assets: | ||
Indefinite-Lived Trademarks | 9,880 | 16,180 |
Other assets: | ||
Financing costs, net of accumulated amortization of $18.8 million on December 31, 2014, and $13.6 million on December 31, 2013 | 23,118 | 28,761 |
Deferred major repair | 21,118 | 16,218 |
Replacement parts, net | 2,838 | 3,465 |
Loan to affiliate | 23,305 | 23,305 |
Restricted cash | 2,603 | 4,946 |
Other | 6,934 | 6,469 |
Total other assets | 79,916 | 83,164 |
Intangibles and other assets | 94,497 | 104,760 |
VERSO PAPER HOLDINGS LLC | Customer Relationships | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | 4,520 | 5,120 |
VERSO PAPER HOLDINGS LLC | Patents | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, net of accumulated amortization | $181 | $296 |
Intangibles_and_Other_Assets_F
Intangibles and Other Assets (Footnotes) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Financing costs, accumulated amortization | $18.80 | $13.60 |
Customer Relationships | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Amortizable intangible assets, accumulated amortization | 8.8 | 8.2 |
Patents | ||
Intangibles and Other Assets by Major Class [Line Items] | ||
Amortizable intangible assets, accumulated amortization | $0.90 | $0.90 |
Intangibles_and_Other_Assets_A
Intangibles and Other Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | 3 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Intangibles and Other Assets by Major Class [Line Items] | ||||||||||||||
Trademark impairment | $6,300,000 | $1,600,000 | $3,693,000 | |||||||||||
Amortization expense of intangibles | 700,000 | 800,000 | 900,000 | |||||||||||
Restructuring charges | 134,500,000 | 0 | 0 | 0 | 100,000 | 100,000 | 200,000 | 1,000,000 | 134,486,000 | 1,378,000 | 102,404,000 | 103,782,000 | ||
Trademarks, Interim Impairment Analysis | ||||||||||||||
Intangibles and Other Assets by Major Class [Line Items] | ||||||||||||||
Restructuring charges | 3,400,000 | |||||||||||||
Trademarks, Final Impairment Analysis | ||||||||||||||
Intangibles and Other Assets by Major Class [Line Items] | ||||||||||||||
Restructuring charges | 300,000 | |||||||||||||
Trademarks | ||||||||||||||
Intangibles and Other Assets by Major Class [Line Items] | ||||||||||||||
Trademark impairment | $6,300,000 | $1,600,000 | $3,700,000 |
Intangibles_and_Other_Assets_E
Intangibles and Other Assets - Estimated Future Amortization Expense for Intangible Assets Over Next Five Years (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated future amortization expense | |
2015 | $615 |
2016 | 567 |
2017 | 400 |
2018 | 300 |
2019 | $300 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ||
Accrued interest | $77,660 | $58,852 |
Payroll and employee benefit costs | 43,364 | 40,054 |
Accrued transaction costs | 25,298 | 0 |
Restructuring costs | 24,181 | 0 |
Accrued sales rebates | 11,854 | 11,573 |
Derivatives | 6,268 | 4,959 |
Accrued taxes - other than income | 1,466 | 1,456 |
Freight and other | 15,306 | 5,441 |
Accrued liabilities | 205,397 | 122,335 |
VERSO PAPER HOLDINGS LLC | ||
Schedule of Accrued Liabilities [Line Items] | ||
Accrued interest | 77,787 | 58,977 |
Payroll and employee benefit costs | 43,364 | 40,054 |
Accrued transaction costs | 25,298 | 0 |
Restructuring costs | 24,181 | 0 |
Accrued sales rebates | 11,854 | 11,573 |
Derivatives | 6,268 | 4,959 |
Accrued taxes - other than income | 1,455 | 1,431 |
Freight and other | 15,306 | 5,441 |
Accrued liabilities | $205,513 | $122,435 |
LongTerm_Debt_Summary_of_LongT
Long-Term Debt - Summary of Long-Term Debt (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2010 | Dec. 31, 2013 | Jan. 31, 2013 | Aug. 31, 2006 | Dec. 31, 2006 | |
Debt Instrument [Line Items] | |||||||||
Balance | $1,296,906,000 | $1,296,906,000 | $1,235,167,000 | ||||||
Par value | 1,290,955,000 | 1,290,955,000 | 1,227,955,000 | ||||||
Less current maturities of long-term debt | -30,000,000 | -30,000,000 | -13,310,000 | ||||||
Current maturities, par value | 30,000,000 | 30,000,000 | 13,310,000 | ||||||
Debt, Fair value | 1,059,000,000 | 1,059,000,000 | 881,000,000 | ||||||
Verso Paper Finance Holdings LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan from Verso Paper Holdings LLC | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | |||||
VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Balance | 1,350,211,000 | 1,350,211,000 | 1,271,782,000 | ||||||
Par value | 1,344,260,000 | 1,344,260,000 | 1,264,570,000 | ||||||
Less current maturities of long-term debt | -30,000,000 | -30,000,000 | -13,310,000 | ||||||
Debt, Fair value | 1,082,000,000 | 1,082,000,000 | 857,000,000 | ||||||
11.75% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 15-Jan-19 | 15-Jan-19 | |||||||
Interest Rate (percentage) | 11.75% | 11.75% | |||||||
Balance | 424,654,000 | 424,654,000 | 426,076,000 | ||||||
Par value | 417,882,000 | 345,000,000 | 417,882,000 | 417,882,000 | |||||
11.75% Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 15-Jan-19 | ||||||||
Interest Rate (percentage) | 11.75% | 11.75% | 11.75% | ||||||
Balance | 271,573,000 | 271,573,000 | 271,573,000 | ||||||
Par value | 271,573,000 | 271,600,000 | 271,573,000 | 271,573,000 | |||||
8.75% Second Priority Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 1-Feb-19 | ||||||||
Interest Rate (percentage) | 8.75% | 8.75% | 8.75% | ||||||
Balance | 96,447,000 | 96,447,000 | 395,018,000 | ||||||
Par value | 96,647,000 | 396,000,000 | 96,647,000 | 396,000,000 | |||||
New Second Lien Notes [Member] | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 1-Feb-19 | ||||||||
Interest Rate (percentage) | 8.75% | 8.75% | |||||||
Balance | 298,732,000 | 298,732,000 | |||||||
Par value | 299,353,000 | 299,353,000 | |||||||
Second Priority Senior Secured Floating Rate Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, effective | 0.00% | 0.00% | |||||||
Original Maturity | 1-Aug-14 | ||||||||
Balance | 0 | 0 | 13,310,000 | ||||||
Par value | 0 | 0 | 13,310,000 | 250,000,000 | |||||
11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 1-Aug-16 | ||||||||
Interest Rate (percentage) | 11.38% | 11.38% | |||||||
Balance | 40,517,000 | 40,517,000 | 142,500,000 | ||||||
Par value | 40,517,000 | 40,517,000 | 142,500,000 | 300,000,000 | |||||
Loan from Verso Paper Holdings LLC | Verso Paper Finance Holdings LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 29-Dec-40 | 29-Dec-40 | |||||||
Interest Rate (percentage) | 6.50% | 6.50% | 6.50% | ||||||
Chase NMTC Verso Investment Fund, LLC | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 29-Dec-40 | ||||||||
Interest Rate (percentage) | 6.50% | 6.50% | |||||||
Balance | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
Par value | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
VERSO PAPER HOLDINGS LLC | Verso Paper Finance Holdings LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Par value | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
Revolving Credit Facilities | Revolving Credit Facilities | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity, Line of credit | 4-May-17 | ||||||||
Interest rate, effective | 2.54% | 2.54% | |||||||
Balance | 63,000,000 | 63,000,000 | 0 | ||||||
Par value | 63,000,000 | 63,000,000 | 0 | ||||||
Intercompany Eliminations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Par value | 46,610,000 | 46,610,000 | 46,610,000 | ||||||
Less loans from affiliates | -46,610,000 | -46,610,000 | -46,610,000 | ||||||
Asset Based Loan Facility | Revolving Credit Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity, Line of credit | 6-Feb-15 | ||||||||
Interest rate, effective | 6.25% | 6.25% | |||||||
Balance | 30,000,000 | 30,000,000 | 0 | ||||||
Par value | 30,000,000 | 30,000,000 | 0 | ||||||
NewSubordinatedNotes [Member] | 11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Original Maturity | 1-Aug-16 | ||||||||
Interest Rate (percentage) | 11.38% | 11.38% | |||||||
Balance | 101,983,000 | 101,983,000 | |||||||
Par value | $101,983,000 | $101,983,000 |
LongTerm_Debt_Interest_Expense
Long-Term Debt - Interest Expense Related to Long-Term Debt and Cash Interests Payments on Long Term Debt (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Interest expense | $136,157 | $133,599 | $133,644 |
Cash interest paid | 116,705 | 129,467 | 113,334 |
Debt issuance cost amortization | 8,078 | 5,398 | 5,317 |
VERSO PAPER HOLDINGS LLC | |||
Debt Instrument [Line Items] | |||
Interest expense | 137,672 | 134,527 | 126,486 |
Cash interest paid | 118,220 | 130,830 | 114,849 |
Debt issuance cost amortization | $8,078 | $5,368 | $4,957 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Share data in Millions, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Aug. 02, 2014 | Dec. 31, 2011 | Dec. 31, 2010 | 5-May-14 | Jan. 07, 2015 | Jan. 06, 2015 | Aug. 01, 2014 | Aug. 31, 2006 | Dec. 31, 2006 |
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs | ($2,435,000) | ($220,000) | ($24,459,000) | ||||||||||||
Notes, principal amount | 1,227,955,000 | 1,290,955,000 | 1,227,955,000 | 1,290,955,000 | |||||||||||
Gain (loss) on early extinguishment of debt | 0 | 0 | -8,244,000 | ||||||||||||
Debt exchange rate | 85.00% | ||||||||||||||
Liabilities assumed | 85,800,000 | ||||||||||||||
Long-term debt | 1,235,167,000 | 1,296,906,000 | 1,235,167,000 | 1,296,906,000 | |||||||||||
VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs | -2,435,000 | -220,000 | -24,459,000 | ||||||||||||
Notes, principal amount | 1,264,570,000 | 1,344,260,000 | 1,264,570,000 | 1,344,260,000 | |||||||||||
Gain (loss) on early extinguishment of debt | 0 | 0 | -8,244,000 | ||||||||||||
Long-term debt | 1,271,782,000 | 1,350,211,000 | 1,271,782,000 | 1,350,211,000 | |||||||||||
VERSO PAPER HOLDINGS LLC | Chase NMTC Verso Investment Fund, LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes, principal amount | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | |||||||||||
Interest rate (percentage) | 6.50% | 6.50% | |||||||||||||
Maturity date | 29-Dec-40 | ||||||||||||||
Long-term debt | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | |||||||||||
Verso Paper Finance Holdings LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loan from Verso Paper Holdings LLC | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | ||||||||||
Revolving Credit Facilities | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs, deferred | 9,300,000 | ||||||||||||||
11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.38% | 11.38% | |||||||||||||
Asset Based Loan Facility | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility, borrowing capacity | 40,000,000 | ||||||||||||||
Credit Facility, outstanding | 30,000,000 | 30,000,000 | |||||||||||||
Credit facility, remaining borrowing capacity | 10,000,000 | 10,000,000 | |||||||||||||
Interest rate, effective | 6.25% | 6.25% | |||||||||||||
Debt issuance costs | -2,435,000 | ||||||||||||||
Notes, principal amount | 0 | 30,000,000 | 0 | 30,000,000 | |||||||||||
Long-term debt | 0 | 30,000,000 | 0 | 30,000,000 | |||||||||||
Asset Based Loan Facility | Revolving Credit Facilities | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility, borrowing capacity | 150,000,000 | ||||||||||||||
Cash Flow Facility | Revolving Credit Facilities | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility, borrowing capacity | 50,000,000 | ||||||||||||||
Credit Facility, outstanding | 0 | 0 | |||||||||||||
Credit facility, remaining borrowing capacity | 50,000,000 | 50,000,000 | |||||||||||||
Cash Flow Facility | Letter of Credit | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit Facility, outstanding | 0 | 0 | |||||||||||||
11.75% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.75% | 11.75% | |||||||||||||
Exchange Offer Two | 11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes retired in exchange offer | 157,500,000 | 157,500,000 | |||||||||||||
May2012NoteExchangesCombined [Member] | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on early extinguishment of debt | 26,300,000 | ||||||||||||||
Cash paid in exchange offer | 22,300,000 | ||||||||||||||
Revolving Credit Facilities | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility, remaining borrowing capacity | 66,900,000 | 66,900,000 | |||||||||||||
Debt instrument, maturity date description | 4-May-17 | ||||||||||||||
Revolving Credit Facilities | Revolving Credit Facilities | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit Facility, outstanding | 63,000,000 | 63,000,000 | |||||||||||||
Credit facility, remaining borrowing capacity | 6,900,000 | 6,900,000 | |||||||||||||
Interest rate, effective | 2.54% | 2.54% | |||||||||||||
Letters of credit outstanding | 39,400,000 | 39,400,000 | |||||||||||||
Notes, principal amount | 0 | 63,000,000 | 0 | 63,000,000 | |||||||||||
Long-term debt | 0 | 63,000,000 | 0 | 63,000,000 | |||||||||||
11.75% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs, deferred | 10,100,000 | ||||||||||||||
Notes, principal amount | 417,882,000 | 417,882,000 | 417,882,000 | 345,000,000 | 417,882,000 | ||||||||||
Interest rate (percentage) | 11.75% | 11.75% | |||||||||||||
Maturity date | 15-Jan-19 | 15-Jan-19 | |||||||||||||
Notes issued in exchange offer | 72,900,000 | ||||||||||||||
Long-term debt | 426,076,000 | 424,654,000 | 426,076,000 | 424,654,000 | |||||||||||
11.75% Senior Secured Notes | 11.75% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.50% | ||||||||||||||
11.75% Secured Notes Due in 2019 | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs, deferred | 5,400,000 | ||||||||||||||
Notes, principal amount | 271,573,000 | 271,573,000 | 271,573,000 | 271,600,000 | 271,573,000 | ||||||||||
Interest rate (percentage) | 11.75% | 11.75% | 11.75% | ||||||||||||
Maturity date | 15-Jan-19 | ||||||||||||||
Number of exchange offers | 2 | ||||||||||||||
Long-term debt | 271,573,000 | 271,573,000 | 271,573,000 | 271,573,000 | |||||||||||
8.75% Second Priority Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Original debt | 299,400,000 | ||||||||||||||
8.75% Second Priority Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes, principal amount | 396,000,000 | 96,647,000 | 396,000,000 | 96,647,000 | 396,000,000 | ||||||||||
Interest rate (percentage) | 8.75% | 8.75% | 8.75% | ||||||||||||
Maturity date | 1-Feb-19 | ||||||||||||||
Long-term debt | 395,018,000 | 96,447,000 | 395,018,000 | 96,447,000 | |||||||||||
8.75% Second Priority Senior Secured Notes | Exchange Offer One | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrants issued | 9.3 | ||||||||||||||
Fair value of warrants issued | 0 | ||||||||||||||
New Second Lien Notes [Member] | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes, principal amount | 299,353,000 | 299,353,000 | |||||||||||||
Interest rate (percentage) | 8.75% | 8.75% | |||||||||||||
Maturity date | 1-Feb-19 | ||||||||||||||
Long-term debt | 298,732,000 | 298,732,000 | |||||||||||||
Second Priority Senior Secured Floating Rate Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate, effective | 0.00% | 0.00% | |||||||||||||
Notes, principal amount | 13,310,000 | 0 | 13,310,000 | 0 | 250,000,000 | ||||||||||
Maturity date | 1-Aug-14 | ||||||||||||||
Long-term debt | 13,310,000 | 0 | 13,310,000 | 0 | |||||||||||
Principal amount of notes repurchased/repaid | 236,700,000 | ||||||||||||||
Second Priority Senior Secured Floating Rate Notes | Exchange Offer One | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes retired in exchange offer | 166,900,000 | ||||||||||||||
11.38% Senior Subordinated Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Original debt | 102,000,000 | ||||||||||||||
11.38% Senior Subordinated Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes, principal amount | 142,500,000 | 40,517,000 | 142,500,000 | 40,517,000 | 300,000,000 | ||||||||||
Interest rate (percentage) | 11.38% | 11.38% | |||||||||||||
Maturity date | 1-Aug-16 | ||||||||||||||
Long-term debt | 142,500,000 | 40,517,000 | 142,500,000 | 40,517,000 | |||||||||||
11.38% Senior Subordinated Notes | Exchange Offer Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrants issued | 5.4 | ||||||||||||||
Fair value of warrants issued | 0 | ||||||||||||||
11.38% Senior Subordinated Notes | Exchange Offer Two | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes retired in exchange offer | 157,500,000 | ||||||||||||||
Loan from Verso Paper Holdings LLC | Verso Paper Finance Holdings LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 6.50% | 6.50% | 6.50% | ||||||||||||
Maturity date | 29-Dec-40 | 29-Dec-40 | |||||||||||||
Senior Unsecured Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on early extinguishment of debt | -2,800,000 | ||||||||||||||
Senior Unsecured Term Loan | Verso Paper Finance Holdings LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Notes issued in exchange offer | 85,800,000 | ||||||||||||||
11.5% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on early extinguishment of debt | -34,500,000 | ||||||||||||||
8.75% Second Priority Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on early extinguishment of debt | -6,100,000 | ||||||||||||||
Federal Fund Rate [Member] | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate over the reference rate | 0.50% | ||||||||||||||
One Month LIBOR [Member] | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate over the reference rate | 1.00% | ||||||||||||||
Base Rate [Member] | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate over the reference rate | 3.00% | ||||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate over the reference rate | 4.00% | ||||||||||||||
Subsequent Event [Member] | Asset Based Loan Facility | Revolving Credit Facilities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, maturity date description | On January 7, 2015, Verso consummated the NewPage acquisition, and as a result, the credit facility was terminated on February 4, 2015. | ||||||||||||||
Subsequent Event [Member] | 11.75% Senior Secured Notes | 11.75% Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.75% | ||||||||||||||
Subsequent Event [Member] | 8.75% Second Priority Senior Secured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | 1,000 | ||||||||||||||
Original debt | 299,400,000 | ||||||||||||||
Subsequent Event [Member] | New Second Lien Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 10.00% | ||||||||||||||
Principal amount | 594 | ||||||||||||||
Paid-in-kind interest, percentage | 3.00% | ||||||||||||||
Increase (decrease) in long term debt | 121,600,000 | ||||||||||||||
Long-term debt | 177,700,000 | ||||||||||||||
Subsequent Event [Member] | 11.38% Senior Subordinated Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal amount | 1,000 | ||||||||||||||
Original debt | 102,000,000 | ||||||||||||||
Increase (decrease) in long term debt | 38,800,000 | ||||||||||||||
Subsequent Event [Member] | NewSubordinatedNotes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.00% | ||||||||||||||
Principal amount | 620 | ||||||||||||||
Paid-in-kind interest, percentage | 5.00% | ||||||||||||||
Long-term debt | 63,200,000 | ||||||||||||||
New Page Holding Inc. | Subsequent Event [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Liability incurred for the acquisition | 650,000,000 |
LongTerm_Debt_Payments_Require
Long-Term Debt - Payments Required Under Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Long-term debt by maturity: | |
2015 | $30,000 |
2016 | 142,500 |
2017 | 63,000 |
2018 | 0 |
2019 | 1,085,455 |
2020 and thereafter | 0 |
Total debt | 1,320,955 |
VERSO PAPER HOLDINGS LLC | |
Long-term debt by maturity: | |
2015 | 30,000 |
2016 | 142,500 |
2017 | 63,000 |
2018 | 0 |
2019 | 1,085,455 |
2020 and thereafter | 23,305 |
Total debt | $1,344,260 |
Other_Liabilities_Detail
Other Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ||
Pension benefit obligation | $40,584 | $25,231 |
Non-controlling interests | 7,923 | 7,923 |
Asset retirement obligations | 7,515 | 12,708 |
Deferred income taxes | 3,779 | 6,174 |
Deferred compensation | 3,670 | 3,495 |
Other | 830 | 1,068 |
Other liabilities | 64,301 | 56,599 |
VERSO PAPER HOLDINGS LLC | ||
Other Liabilities [Line Items] | ||
Pension benefit obligation | 40,584 | 25,231 |
Non-controlling interests | 7,923 | 7,923 |
Asset retirement obligations | 7,515 | 12,708 |
Deferred compensation | 3,670 | 3,495 |
Other | 830 | 1,068 |
Other liabilities | $60,522 | $50,425 |
Earnings_per_Share_Reconciliat
Earnings per Share (Reconciliation of Basic and Diluted Earnings (Loss) per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) available to common shareholders | ($184,000) | ($35,600) | ($42,800) | ($90,600) | ($20,000) | ($9,800) | ($43,000) | ($38,400) | ($352,955) | ($111,206) | ($173,829) |
Weighted average common stock outstanding | 52,835,000 | 52,583,000 | 52,365,000 | ||||||||
Weighted average restricted stock | 458,000 | 541,000 | 485,000 | ||||||||
Weighted average common shares outstanding - basic | 53,331,000 | 53,328,000 | 53,323,000 | 53,188,000 | 53,172,000 | 53,172,000 | 53,172,000 | 52,976,000 | 53,293,000 | 53,124,000 | 52,850,000 |
Dilutive shares from stock options | 0 | 0 | 0 | ||||||||
Weighted average common shares outstanding - diluted | 53,331,000 | 53,328,000 | 53,323,000 | 53,188,000 | 53,172,000 | 53,172,000 | 53,172,000 | 52,976,000 | 53,293,000 | 53,124,000 | 52,850,000 |
Basic loss per share | ($3.45) | ($0.67) | ($0.80) | ($1.70) | ($0.38) | ($0.18) | ($0.81) | ($0.72) | ($6.62) | ($2.09) | ($3.29) |
Diluted loss per share | ($3.45) | ($0.67) | ($0.80) | ($1.70) | ($0.38) | ($0.18) | ($0.81) | ($0.72) | ($6.62) | ($2.09) | ($3.29) |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) (Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option | |||
Earnings Per Share Disclosure [Line Items] | |||
Antidilutive shares excluded from computation of earnings per share | 6,628,268 | 4,344,628 | 3,033,282 |
Antidilutive shares, weighted average exercise prices per share | $2.58 | $2.40 | $2.85 |
Retirement_Plans_Defined_Benef
Retirement Plans - Defined Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment loss | $982,000 | $0 | $1,517,000 |
Component of curtailment loss comprised of amortization of prior service cost | 500,000 | 600,000 | |
Component of curtailment loss comprised of net actuarial loss | 465,000 | 0 | 900,000 |
Amortization of net actuarial loss into net periodic pension cost in next year from accumulated other comprehensive income | 2,000,000 | ||
Amortization of prior service cost into net periodic pension cost in next year from accumulated other comprehensive income | 400,000 | ||
Contribution made by employer | 7,965,000 | 389,000 | 10,700,000 |
Expected cash contributions in 2015 | 5,200,000 | ||
Accumulated benefit obligation | 103,200,000 | 78,700,000 | |
Actuarial gain (loss) | $4,000,000 |
Retirement_Plans_Defined_Benef1
Retirement Plans - Defined Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $5,747 | $6,613 | $7,082 |
Interest cost | 3,678 | 3,115 | 2,876 |
Expected return on plan assets | -3,617 | -3,303 | -2,791 |
Amortization of prior service cost | 651 | 651 | 740 |
Amortization of actuarial loss | 195 | 1,631 | 1,648 |
Curtailment | 982 | 0 | 1,517 |
Net periodic pension cost | $7,636 | $8,707 | $11,072 |
Retirement_Plans_Defined_Benef2
Retirement Plans - Defined Benefit Plans - Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amounts recognized in Accumulated other comprehensive loss: | ||
Prior service cost | $756 | $1,923 |
Net actuarial loss | $26,361 | $9,512 |
Retirement_Plans_Defined_Benef3
Retirement Plans - Defined Benefit Plans - Reconciliation of Projected Benefit Obligation and Funded Status (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of fiscal year | $78,701 | $81,944 | |
Service cost | 5,747 | 6,613 | 7,082 |
Interest cost | 3,678 | 3,115 | 2,876 |
Actuarial (gain) loss | 17,493 | -10,472 | |
Benefits paid | -2,922 | -2,499 | |
Curtailment | 465 | 0 | 900 |
Benefit obligation at end of fiscal year | 103,162 | 78,701 | 81,944 |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of fiscal year | 53,470 | 51,528 | |
Actual net return on plan assets | 4,065 | 4,052 | |
Employer contributions | 7,965 | 389 | 10,700 |
Benefits paid | -2,922 | -2,499 | |
Plan assets at fair value at end of fiscal year | 62,578 | 53,470 | 51,528 |
Unfunded projected benefit obligation recognized in other liabilities on the consolidated balance sheets | ($40,584) | ($25,231) |
Retirement_Plans_Defined_Benef4
Retirement Plans - Defined Benefit Plans - Summary of Expected Future Pension Benefit Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Expected future pension benefit payments: | |
2015 | $2,607 |
2016 | 2,887 |
2017 | 3,196 |
2018 | 3,589 |
2019 | 4,048 |
2020-2024 | $28,277 |
Retirement_Plans_Defined_Benef5
Retirement Plans - Defined Benefit Plans - Actuarial Assumptions Used In Defined Benefit Pension Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted average assumptions used to determine benefit obligations as of December 31: | |||
Discount rate | 3.83% | 4.75% | 3.80% |
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | |||
Discount rate | 4.75% | 3.84% | 4.30% |
Expected long-term return on plan assets | 6.50% | 6.50% | 6.50% |
Retirement_Plans_Defined_Benef6
Retirement Plans - Defined Benefit Plans - Pension Plan's Asset Allocation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
United States Pension Plan of US Entity | Other securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 60.00% | ||
United States Pension Plan of US Entity | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation | 44.00% | 48.00% | |
United States Pension Plan of US Entity | Other funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation | 11.00% | 10.00% | |
United States Pension Plan of US Entity | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 40.00% | ||
United States Pension Plan of US Entity | Domestic equity funds - large cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation | 27.00% | 24.00% | |
United States Pension Plan of US Entity | Domestic equity funds - small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation | 12.00% | 12.00% | |
United States Pension Plan of US Entity | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation | 6.00% | 6.00% | |
Minimum | United States Pension Plan of US Entity | Other securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 55.00% | ||
Minimum | United States Pension Plan of US Entity | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 40.00% | ||
Maximum | United States Pension Plan of US Entity | Other securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 60.00% | ||
Maximum | United States Pension Plan of US Entity | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Targeted Allocation | 45.00% | ||
Defined Contribution Pension Plan 401 k [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution | $6.70 | $6.70 | $7.20 |
Retirement_Plans_Defined_Benef7
Retirement Plans - Defined Benefit Plans - Pension Plan Assets at Fair Value (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | $62,578 | $53,470 | $51,528 |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 27,810 | 25,764 | |
Domestic equity funds - large cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 16,814 | 13,086 | |
Domestic equity funds - small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 7,569 | 6,214 | |
International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 3,534 | 3,167 | |
Other funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 6,851 | 5,239 | |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 62,578 | 53,470 | |
Fair Value, Inputs, Level 1 | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 27,810 | 25,764 | |
Fair Value, Inputs, Level 1 | Domestic equity funds - large cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 16,814 | 13,086 | |
Fair Value, Inputs, Level 1 | Domestic equity funds - small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 7,569 | 6,214 | |
Fair Value, Inputs, Level 1 | International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 3,534 | 3,167 | |
Fair Value, Inputs, Level 1 | Other funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | $6,851 | $5,239 |
Retirement_Plans_Defined_Contr
Retirement Plans - Defined Contribution Plans - Additional Information (Detail) (Salaried and Quinnesec hourly employees defined contribution plan, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Salaried and Quinnesec hourly employees defined contribution plan | |||
Defined Contribution Plan [Line Items] | |||
Defined contribution plan expense | $4.90 | $4.80 | $5.60 |
Equity_Awards_Additional_Infor
Equity Awards - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Authorized shares for issuance | 11,000,000 | ||
Share-based compensation expense | $1.80 | $1.80 | $2.70 |
Non-employee director stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | vest upon grant | ||
Expiration period | 10 years | ||
Officer and management non-qualified time - based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights | one to three years from the date of grant | ||
Expiration period | 7 years | ||
Service and performance-based employee and director stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 5 | ||
Weighted average period over which unearned share-based compensation cost is expected to be recognized | 2 years 1 month 1 day | ||
Restricted stock award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 146,155 | 295,336 | 320,414 |
Weighted average period over which unearned share-based compensation cost is expected to be recognized | 1 year 3 months 18 days | ||
Weighted-average grant date fair value | $3.07 | $1.29 | $1.20 |
Vesting period | 3 years | ||
Unrecognized compensation cost | $0.50 |
Equity_Awards_Stock_Option_Pla
Equity Awards - Stock Option Plan Activity (Detail) (Service and performance-based employee and director stock options, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Service and performance-based employee and director stock options | |||
Options Outstanding | |||
Options outstanding, beginning balance | 4,433,706 | 3,885,193 | 1,781,499 |
Options granted | 2,072,108 | 564,442 | 2,193,701 |
Options forfeited | -15,929 | -90,007 | |
Options exercised | -41,828 | ||
Options outstanding, ending balance | 6,463,986 | 4,433,706 | 3,885,193 |
Weighted Average Exercise Price | |||
Average exercise price, beginning of period | $2.38 | $2.53 | $3.90 |
Average exercise price, options granted | $2.98 | $1.29 | $1.46 |
Average exercise price, forfeited | $1.53 | $3.48 | |
Average exercise price, exercised | $2.51 | ||
Average exercise price, end of period | $2.57 | $2.38 | $2.53 |
Weighted Average Grant Date Fair Value | |||
Average grant date fair value, beginning of period | $1.63 | $1.73 | $2.59 |
Average grant date fair value, options granted | $2.34 | $0.93 | $1.07 |
Average grant date fair value, forfeited | $1.09 | $2.52 | |
Average grant date fair value, exercised | $1.73 | ||
Average grant date fair value, end of period | $1.86 | $1.63 | $1.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Average remaining contractual life, options outstanding | 4 years 7 months 14 days | ||
Options exercisable, ending balance | 3,297,814 | ||
Average exercise price, options exercisable | $2.70 | ||
Average remaining contractual life, options exercisable | 3 years 3 months 1 day | ||
Aggregate intrinsic value, options exercisable | $3,571 | ||
Options expected to vest | 3,166,172 | ||
Average exercise price, options expected to vest | $2.43 | ||
Aggregate intrinsic value, options expected to vest | $3,158 |
Equity_Awards_Stock_Option_Pla1
Equity Awards - Stock Option Plan Activity (Footnotes) (Detail) (Verso Paper Corp. 2008 Incentive Award Plan, Service and performance-based employee and director stock options, USD $) | Dec. 31, 2014 |
Verso Paper Corp. 2008 Incentive Award Plan | Service and performance-based employee and director stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, lowest exercise price in range | $0.71 |
Options outstanding, highest exercise price in range | $5.93 |
Options exercisable, lowest exercise price in range | $0.71 |
Options exercisable, highest exercise price in range | $5.93 |
Equity_Awards_Assumptions_Used
Equity Awards - Assumptions Used to Estimate Fair Value of Stock Options Granted (Detail) (Verso Paper Corp. 2008 Incentive Award Plan, Service and performance-based employee and director stock options) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average life of options granted | 4 years 6 months | 4 years 6 months | |
Volatility rates based on historical industry volatility | 100.52% | ||
Risk-free interest rates | 0.81% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average life of options granted | 3 years | ||
Volatility rates based on historical industry volatility | 115.45% | 94.39% | |
Risk-free interest rates | 1.66% | 0.57% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected weighted-average life of options granted | 5 years | ||
Volatility rates based on historical industry volatility | 116.47% | 102.22% | |
Risk-free interest rates | 1.74% | 0.83% |
Recovered_Sheet4
Bucksport Energy Asset Investment - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $2,603 | $4,946 |
Ownership of steam and electricity produced | 28.00% | |
Obligation to purchase steam output | 72.00% | |
Jointly Owned Utility Plant | Intangibles and other assets | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $2,300 |
Recovered_Sheet5
Bucksport Energy Asset Investment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | subsidiary | ||
Jointly Owned Utility Plant Interests [Line Items] | |||
Ownership of steam and electricity produced | 28.00% | ||
Other receivables | $87,740 | $104,498 | |
Current liabilities | -300,409 | -224,057 | |
Jointly Owned Utility Plant | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Other receivables | 281 | ||
Other assets | 214 | ||
Property, plant, and equipment | 10,692 | ||
Accumulated depreciation | -4,668 | ||
Net property, plant, and equipment | 6,024 | ||
Current liabilities | ($83) | ||
Bucksport Energy LLC [Member] | |||
Jointly Owned Utility Plant Interests [Line Items] | |||
Ownership of steam and electricity produced | 72.00% | ||
Number of subsidiaries | 2 |
Recovered_Sheet6
Derivative Instruments and Hedges - Schedule of Information About Volume and Fair Value Amounts of Derivative Instruments (Detail) (Commodity swaps, Not Designated as Hedging Instrument, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | MMBTU | MMBTU |
Derivative [Line Items] | ||
Notional amount | 1,876,475 | 6,652,070 |
Prepaid expenses and other assets | ||
Derivative [Line Items] | ||
Fair Value Asset | 0 | 15,505 |
Accrued liabilities | ||
Derivative [Line Items] | ||
Fair Value Liabilities | -6,268 | -4,959 |
Recovered_Sheet7
Derivative Instruments and Hedges - Schedule of Information About Effect of Derivative Instruments on Accumulated Other Comprehensive Income and Consolidated Statements of Operations (Detail) (Commodity swaps, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss Recognized in Accumulated OCI | $0 | $0 | ($1,365) |
Loss Reclassified from Accumulated OCI | 0 | 0 | -283 |
Gain (Loss) Recognized on Derivatives | 0 | 0 | -50 |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss Reclassified from Accumulated OCI | 0 | -335 | -5,573 |
Gain (Loss) Recognized on Derivatives | $4,290 | $16,117 | ($2,973) |
Recovered_Sheet8
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred compensation | ||
Assets: | ||
Investments related to deferred compensation plans | $3,670 | $3,495 |
Commodity swaps | ||
Assets: | ||
Commodity swaps | 15,505 | |
Liabilities: | ||
Commodity swaps | 6,268 | 4,959 |
Fair Value, Inputs, Level 1 | Deferred compensation | ||
Assets: | ||
Investments related to deferred compensation plans | 3,670 | 3,495 |
Fair Value, Inputs, Level 2 | Commodity swaps | ||
Assets: | ||
Commodity swaps | 15,505 | |
Liabilities: | ||
Commodity swaps | $6,268 | $4,959 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2011 | Dec. 29, 2010 | Jan. 31, 2013 | |
Related Party Transaction [Line Items] | |||||||||
Management agreement expiration date | 1-Jun-17 | ||||||||
Long-term debt | $1,296,906,000 | $1,235,167,000 | $1,296,906,000 | ||||||
VERSO PAPER HOLDINGS LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Return of capital | 717,000 | -94,878,000 | 776,000 | ||||||
Long-term debt | 1,350,211,000 | 1,271,782,000 | 1,350,211,000 | ||||||
Long-term notes receivable from a related party | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
Distribution To Parent | 100,000 | ||||||||
Capital contribution from a parent | 717,000 | 0 | 776,000 | ||||||
Chase NMTC Verso Investment Fund, LLC | Variable Interest Entity, Primary Beneficiary | |||||||||
Related Party Transaction [Line Items] | |||||||||
Long-term debt | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | |||||
Interest rate (percentage) | 6.50% | 6.50% | 6.50% | ||||||
Notes, maturity date | 29-Dec-40 | 29-Dec-40 | |||||||
Accrued interest payable to a related party | 100,000 | 100,000 | 100,000 | ||||||
Interest expense incurred from transactions with a related party | 1,500,000 | 1,500,000 | |||||||
VERSO PAPER HOLDINGS LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Long-term notes receivable from a related party | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
Accrued interest receivable from a related party | 100,000 | 100,000 | 100,000 | ||||||
Interest income recognized from transactions with a related party | 1,500,000 | 1,500,000 | |||||||
Verso Paper Finance Holdings LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Long-term debt | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | 23,305,000 | ||||
Interest rate (percentage) | 6.50% | ||||||||
Notes, maturity date | 29-Dec-40 | ||||||||
Long-term notes receivable from a related party | 23,305,000 | 23,305,000 | 23,305,000 | ||||||
Accrued interest receivable from a related party | 100,000 | 100,000 | 100,000 | ||||||
Interest income recognized from transactions with a related party | 1,500,000 | 1,500,000 | 1,500,000 | ||||||
Paid-in Capital | VERSO PAPER HOLDINGS LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Return of capital | 717,000 | -94,878,000 | 776,000 | ||||||
11.75% Senior Secured Notes | VERSO PAPER HOLDINGS LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Principal amount of debt issued | 72,900,000 | ||||||||
Long-term debt | 424,654,000 | 426,076,000 | 424,654,000 | ||||||
Interest rate (percentage) | 11.75% | 11.75% | |||||||
Notes, maturity date | 15-Jan-19 | 15-Jan-19 | |||||||
Senior Unsecured Term Loan | Verso Paper Finance Holdings LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Principal amount of debt issued | 85,800,000 | ||||||||
Management Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Management agreement expiration date | 1-Aug-18 | ||||||||
Management fee as a percentage of aggregate enterprise value | 1.00% | 1.00% | |||||||
Purchases from Apollo | $0 | $0 | $0 |
Restructuring_Charges_Charges_
Restructuring Charges - Charges Incurred Related to Shutdown (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | $134,500 | $0 | $0 | $0 | $100 | $100 | $200 | $1,000 | $134,486 | $1,378 | $102,404 | $103,782 |
Property and equipment impairment | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 88,728 | 0 | 66,521 | 66,521 | ||||||||
Severance and benefit costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 26,812 | 688 | 19,373 | 20,061 | ||||||||
Write-off of related spare parts and inventory | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 13,876 | 0 | 6,934 | 6,934 | ||||||||
Trademark Impairment [Member] | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 0 | 3,693 | 3,693 | |||||||||
Write-off of purchase obligations and commitments | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 1,531 | -594 | 2,420 | 1,826 | ||||||||
Other miscellaneous costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 3,539 | 1,284 | 3,463 | 4,747 | ||||||||
Salary And Benefit [Member] | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | $1,000 | $500 |
Restructuring_Charges_Changes_
Restructuring Charges - Changes in Restructuring Reserve Liabilities (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance costs and personnel costs | $30,000,000 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance of reserve | 0 | 5,098,000 |
Severance and benefit costs | 25,768,000 | 196,000 |
Purchase obligations | 1,531,000 | 0 |
Ending balance of reserve | 24,181,000 | 0 |
Severance and benefit costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payments | -3,118,000 | -3,678,000 |
Purchase obligation reserve adjustments | 0 | -461,000 |
Purchase obligations | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring payments | 0 | -561,000 |
Purchase obligation reserve adjustments | 0 | -594,000 |
Coated groundwood paper [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Capacity of plant | 350,000 | |
Specialty paper [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Capacity of plant | 55,000 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax cash severance and other shutdown charges | 40,000,000 | |
Shutdown costs | 10,000,000 | |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax cash severance and other shutdown charges | 45,000,000 | |
Shutdown costs | $15,000,000 |
Income_Taxes_Summary_of_Compon
Income Taxes - Summary of Components of (Benefit) Provision for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax provision (benefit): | |||||||||||
U.S. federal | $0 | $0 | $0 | ||||||||
U.S. state and local | -594 | 38 | -96 | ||||||||
Current tax (benefit) provision | -594 | 38 | -96 | ||||||||
Deferred tax (benefit) provision: | |||||||||||
U.S. federal | -111,899 | -120,029 | -58,563 | ||||||||
U.S. state and local | -14,371 | -12,621 | -6,486 | ||||||||
Deferred tax (benefit) provision | -126,270 | -132,650 | -65,049 | ||||||||
Valuation allowance | 123,875 | 132,050 | 63,721 | ||||||||
Income tax (benefit) provision | ($2,300) | ($600) | $0 | $0 | ($600) | $0 | $0 | $0 | ($2,989) | ($562) | ($1,424) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective income tax reconciliation | |||||||||||
Tax at Statutory U.S. Rate of 34% | ($121,019) | ($38,001) | ($59,586) | ||||||||
Increase resulting from: | |||||||||||
Nondeductible transaction costs | 9,274 | 1,756 | 0 | ||||||||
Meals and entertainment | 173 | 173 | 197 | ||||||||
Nondeductible lobbying expenses | 162 | 80 | 46 | ||||||||
Disallowed compensation | 0 | 0 | 680 | ||||||||
Other disallowed expenses | 3 | 4 | 36 | ||||||||
Net permanent differences | 9,612 | 2,013 | 959 | ||||||||
Valuation allowance | 123,875 | 132,050 | 63,721 | ||||||||
Benefit from change in prior tax position | 0 | -93,039 | 0 | ||||||||
State income taxes (benefit) | -14,763 | -3,740 | -6,550 | ||||||||
Return to provision | -694 | 155 | 32 | ||||||||
Income tax (benefit) provision | ($2,300) | ($600) | $0 | $0 | ($600) | $0 | $0 | $0 | ($2,989) | ($562) | ($1,424) |
Statutory U.S. Rate | 34.00% | 34.00% | 34.00% |
Income_Taxes_Summary_of_Signif
Income Taxes - Summary of Significant Components of Deferred Tax Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Net operating loss and credit carryforwards | $479,569 | $417,536 | |
Pension | 14,547 | 9,606 | |
Payment-in-kind interest | 10,142 | 10,211 | |
Compensation reserves | 10,025 | 8,348 | |
Inventory reserves | 9,875 | 7,546 | |
Inventory capitalization | 3,343 | 2,885 | |
Capitalized expenses | 5,143 | 0 | |
Bad debt reserves | 761 | 841 | |
Other | 2,230 | 2,046 | |
Gross deferred tax assets | 535,635 | 459,019 | |
Less: valuation allowance | -453,729 | -323,335 | -195,700 |
Deferred tax assets, net of allowance | 81,906 | 135,684 | |
Deferred tax liabilities: | |||
Property, plant, and equipment | -52,183 | -100,507 | |
Cancellation of debt income deferral | -17,335 | -21,878 | |
Deferred repair charges | -7,631 | -6,188 | |
Intangible assets | -5,578 | -8,241 | |
Unrealized hedge income | -345 | -4,046 | |
Prepaid expenses | -2,613 | -998 | |
Total deferred tax liabilities | -85,685 | -141,858 | |
Net deferred tax liabilities | ($3,779) | ($6,174) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Valuation allowance for deferred tax assets | $453,729,000 | $323,335,000 | $195,700,000 |
Increase in valuation allowance for deferred tax assets | 130,400,000 | 127,600,000 | |
Reduction in income tax benefits | 123,875,000 | 132,050,000 | 63,721,000 |
Pension Prior Service Liability | |||
Income Taxes [Line Items] | |||
Reduction in income tax benefits | 6,500,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 1,271,700,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $846,800,000 |
Recovered_Sheet9
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Line Items] | |||
Supply agreement, description | The agreement requires Expera Specialty Solutions, LLC (formerly named Thilmany, LLC) to pay us a variable charge for the paper purchased and a fixed charge for the availability of the no. 5 paper machine. | ||
Rent expense | $7 | $9.80 | $9.20 |
Supply agreement expiration date | 1-Jun-17 | ||
Latest Expiration | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating leases, expiration year | 2021 | ||
New Page Holding Inc. | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contingent fees related to acquisition | $5.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum operating lease payments due | |
2015 | $2,776 |
2016 | 1,166 |
2017 | 649 |
2018 | 360 |
2019 | 217 |
Thereafter | 33 |
Total | $5,201 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Unconditional purchase obligations, rolling maturity | |
2015 | $55,828 |
2016 | 28,520 |
2017 | 26,973 |
2018 | 26,163 |
2019 | 26,163 |
Thereafter | 95,258 |
Total | $258,905 |
Recovered_Sheet10
New Market Tax Credit Entities - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2010 | Dec. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2011 | |
Variable Interest Entity [Line Items] | |||||
Renewable energy project amount | $43,000,000 | ||||
Non-controlling interests | 7,923,000 | 7,923,000 | |||
Verso Paper Finance Holdings LLC | |||||
Variable Interest Entity [Line Items] | |||||
Interest rate (percentage) | 6.50% | ||||
Maturity date | 29-Dec-40 | ||||
VERSO PAPER HOLDINGS LLC | |||||
Variable Interest Entity [Line Items] | |||||
Non-controlling interests | 7,923,000 | 7,923,000 | |||
VERSO PAPER HOLDINGS LLC | Variable Interest Entity, Primary Beneficiary | Chase NMTC Verso Investment Fund, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Put option, anticipated exercise date | 2017-12 | ||||
Tax credit, recapture percentage | 100.00% | ||||
Tax credit, recapture period | 7 years | ||||
VERSO PAPER HOLDINGS LLC | Variable Interest Entity, Primary Beneficiary | Chase NMTC Verso Investment Fund, LLC | Verso Paper Finance Holdings LLC | |||||
Variable Interest Entity [Line Items] | |||||
Related party debt, outstanding amount | 23,305,000 | ||||
Interest rate (percentage) | 6.50% | ||||
Maturity date | 29-Dec-40 |
Recovered_Sheet11
New Market Tax Credit Entities - Schedule of Impact of Consolidated VIE (Detail) (Chase NMTC Verso Investment Fund, LLC, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | $99 | $100 |
Variable interest entity, consolidated liabilities | 7,938 | 7,938 |
Current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | 14 | 15 |
Non-current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | 85 | 85 |
Current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated liabilities | 15 | 15 |
Other non-current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated liabilities | 7,923 | 7,923 |
VERSO PAPER HOLDINGS LLC | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | 23,404 | 23,405 |
Variable interest entity, consolidated liabilities | 31,369 | 31,369 |
VERSO PAPER HOLDINGS LLC | Current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | 14 | 15 |
VERSO PAPER HOLDINGS LLC | Non-current assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated assets | 23,390 | 23,390 |
VERSO PAPER HOLDINGS LLC | Current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated liabilities | 141 | 141 |
VERSO PAPER HOLDINGS LLC | Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated liabilities | 23,305 | 23,305 |
VERSO PAPER HOLDINGS LLC | Other non-current liabilities | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, consolidated liabilities | $7,923 | $7,923 |
Recovered_Sheet12
Information by Industry Segment - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Recovered_Sheet13
Information by Industry Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $326,400 | $350,200 | $320,900 | $299,100 | $350,400 | $374,900 | $330,400 | $333,200 | $1,296,613 | $1,388,899 | $1,474,612 |
Operating Income (Loss) | -174,717 | 33,900 | -32,421 | ||||||||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 | ||||||||
Capital Spending | 41,963 | 40,660 | 59,909 | ||||||||
Coated papers | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 939,105 | 1,062,555 | 1,177,050 | ||||||||
Operating Income (Loss) | -165,124 | 14,546 | -26,166 | ||||||||
Depreciation, amortization, and depletion | 65,930 | 77,976 | 90,740 | ||||||||
Capital Spending | 31,657 | 33,595 | 57,807 | ||||||||
Hardwood Market Pulp | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 160,651 | 156,099 | 140,816 | ||||||||
Operating Income (Loss) | 18,950 | 21,540 | 9,215 | ||||||||
Depreciation, amortization, and depletion | 15,325 | 18,125 | 18,000 | ||||||||
Capital Spending | 9,625 | 5,752 | -325 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 196,857 | 170,245 | 156,746 | ||||||||
Operating Income (Loss) | -28,543 | -2,186 | -15,470 | ||||||||
Depreciation, amortization, and depletion | 9,642 | 8,629 | 9,438 | ||||||||
Capital Spending | 681 | 1,313 | 2,427 | ||||||||
VERSO PAPER HOLDINGS LLC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,296,613 | 1,388,899 | 1,474,612 | ||||||||
Operating Income (Loss) | -174,717 | 33,900 | -32,370 | ||||||||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 | ||||||||
Capital Spending | 41,963 | 40,660 | 59,909 | ||||||||
VERSO PAPER HOLDINGS LLC | Coated papers | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 939,105 | 1,062,555 | 1,177,050 | ||||||||
Operating Income (Loss) | -165,124 | 14,546 | -26,115 | ||||||||
Depreciation, amortization, and depletion | 65,930 | 77,976 | 90,740 | ||||||||
Capital Spending | 31,657 | 33,595 | 57,807 | ||||||||
VERSO PAPER HOLDINGS LLC | Hardwood Market Pulp | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 160,651 | 156,099 | 140,816 | ||||||||
Operating Income (Loss) | 18,950 | 21,540 | 9,215 | ||||||||
Depreciation, amortization, and depletion | 15,325 | 18,125 | 18,000 | ||||||||
Capital Spending | 9,625 | 5,752 | -325 | ||||||||
VERSO PAPER HOLDINGS LLC | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 196,857 | 170,245 | 156,746 | ||||||||
Operating Income (Loss) | -28,543 | -2,186 | -15,470 | ||||||||
Depreciation, amortization, and depletion | 9,642 | 8,629 | 9,438 | ||||||||
Capital Spending | $681 | $1,313 | $2,427 |
Information_by_Industry_Segmen2
Information by Industry Segment (Footnotes) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring charges | $134,500,000 | $0 | $0 | $0 | $100,000 | $100,000 | $200,000 | $1,000,000 | $134,486,000 | $1,378,000 | $102,404,000 | $103,782,000 |
Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | 700,000 | 3,300,000 | 0 | 3,971,000 | 60,594,000 | |
Coated Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring charges | 134,500,000 | 102,400,000 | ||||||||||
Coated papers | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Other operating income | 60,600,000 | |||||||||||
Hardwood Market Pulp | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Cash inflow from Governmental grants associated with a renewable energy project | $14,700,000 |
Recovered_Sheet14
Condensed Consolidating Financial Information - Additional Information (Detail) (VERSO PAPER HOLDINGS LLC) | 12 Months Ended |
Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |
Percentage of ownership interest in subsidiary | 100.00% |
11.75% Senior Secured Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate (percentage) | 11.75% |
Debt Instrument Maturity Year | 2019 |
8.75% Second Priority Senior Secured Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate (percentage) | 8.75% |
Debt Instrument Maturity Year | 2019 |
11.38% Senior Subordinated Notes | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate (percentage) | 11.38% |
Debt Instrument Maturity Year | 2016 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $5,542 | $11,295 | $61,525 | $94,869 |
Accounts receivable, net | 87,740 | 104,498 | ||
Inventories | 110,724 | 137,687 | ||
Assets held for sale | 60,964 | 50 | ||
Prepaid expenses and other assets | 10,812 | 20,621 | ||
Current assets | 275,782 | 274,151 | ||
Property, plant, and equipment, net | 530,537 | 742,946 | ||
Intangibles and other assets, net(1) | 71,192 | 81,455 | ||
Total assets | 877,511 | 1,098,552 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accounts payable | 62,814 | 88,412 | ||
Accrued liabilities | 205,397 | 122,335 | ||
Current maturities of long-term debt | 30,000 | 13,310 | ||
Liabilities related to assets held for sale | 2,198 | 0 | ||
Current liabilities | 300,409 | 224,057 | ||
Long-term debt | 1,296,906 | 1,235,167 | ||
Other long-term liabilities | 64,301 | 56,599 | ||
Total liabilities and equity | 877,511 | 1,098,552 | ||
VERSO PAPER HOLDINGS LLC | ||||
ASSETS | ||||
Cash and cash equivalents | 5,541 | 11,240 | 61,470 | 94,795 |
Accounts receivable, net | 87,866 | 104,624 | ||
Inventories | 110,724 | 137,687 | ||
Assets held for sale | 60,964 | 50 | ||
Prepaid expenses and other assets | 10,812 | 20,621 | ||
Current assets | 275,907 | 274,222 | ||
Property, plant, and equipment, net | 530,537 | 742,946 | ||
Intangibles and other assets, net(1) | 94,497 | 104,760 | ||
Total assets | 900,941 | 1,121,928 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accounts payable | 62,814 | 88,412 | ||
Accrued liabilities | 205,513 | 122,435 | ||
Current maturities of long-term debt | 30,000 | 13,310 | ||
Liabilities related to assets held for sale | 2,198 | 0 | ||
Current liabilities | 300,525 | 224,157 | ||
Long-term debt | 1,320,211 | 1,258,472 | ||
Other long-term liabilities | 60,522 | 50,425 | ||
Member's (deficit) equity | -780,317 | -411,126 | -220,599 | -61,184 |
Total liabilities and equity | 900,941 | 1,121,928 | ||
VERSO PAPER HOLDINGS LLC | Parent Issuer | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Intercompany/affiliate receivable | 1,396,872 | 1,335,323 | ||
Total assets | 1,396,872 | 1,335,323 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accrued liabilities | 77,581 | 58,847 | ||
Current maturities of long-term debt | 13,310 | |||
Current liabilities | 77,581 | 72,157 | ||
Investment in subsidiaries | 802,702 | 439,125 | ||
Long-term debt | 1,296,906 | 1,235,167 | ||
Member's (deficit) equity | -780,317 | -411,126 | ||
Total liabilities and equity | 1,396,872 | 1,335,323 | ||
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 5,526 | 11,230 | 61,453 | 94,722 |
Accounts receivable, net | 87,866 | 104,624 | ||
Inventories | 110,724 | 137,687 | ||
Assets held for sale | 60,014 | 50 | ||
Prepaid expenses and other assets | 9,308 | 20,616 | ||
Current assets | 273,438 | 274,207 | ||
Property, plant, and equipment, net | 507,619 | 724,063 | ||
Intercompany/affiliate receivable | 2,335 | 1,393 | ||
Intangibles and other assets, net(1) | 93,311 | 103,424 | ||
Total assets | 876,703 | 1,103,087 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accounts payable | 62,799 | 88,397 | ||
Accrued liabilities | 127,432 | 63,462 | ||
Liabilities related to assets held for sale | 2,198 | |||
Current liabilities | 192,429 | 151,859 | ||
Intercompany/affiliate payable | 1,423,289 | 1,335,323 | ||
Investment in subsidiaries | 13,341 | 12,124 | ||
Other long-term liabilities | 52,599 | 42,502 | ||
Member's (deficit) equity | -804,955 | -438,721 | ||
Total liabilities and equity | 876,703 | 1,103,087 | ||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | ||||
ASSETS | ||||
Cash and cash equivalents | 5 | 0 | ||
Assets held for sale | 950 | |||
Prepaid expenses and other assets | 1,500 | |||
Current assets | 2,455 | |||
Property, plant, and equipment, net | 23,206 | 19,171 | ||
Intercompany/affiliate receivable | 26,417 | |||
Intangibles and other assets, net(1) | 1,101 | 1,251 | ||
Total assets | 53,179 | 20,422 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accrued liabilities | 374 | |||
Current maturities of long-term debt | 30,000 | |||
Current liabilities | 30,374 | |||
Intercompany/affiliate payable | 33,488 | 32,546 | ||
Member's (deficit) equity | -10,683 | -12,124 | ||
Total liabilities and equity | 53,179 | 20,422 | ||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | ||||
ASSETS | ||||
Cash and cash equivalents | 10 | 10 | 17 | 73 |
Prepaid expenses and other assets | 4 | 5 | ||
Current assets | 14 | 15 | ||
Intercompany/affiliate receivable | 31,153 | 31,153 | ||
Intangibles and other assets, net(1) | 85 | 85 | ||
Total assets | 31,252 | 31,253 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Accounts payable | 15 | 15 | ||
Accrued liabilities | 126 | 126 | ||
Current liabilities | 141 | 141 | ||
Long-term debt | 23,305 | 23,305 | ||
Other long-term liabilities | 8,142 | 8,087 | ||
Member's (deficit) equity | -336 | -280 | ||
Total liabilities and equity | 31,252 | 31,253 | ||
VERSO PAPER HOLDINGS LLC | Eliminations | ||||
ASSETS | ||||
Property, plant, and equipment, net | -288 | -288 | ||
Intercompany/affiliate receivable | -1,456,777 | -1,367,869 | ||
Total assets | -1,457,065 | -1,368,157 | ||
LIABILITIES AND MEMBER'S EQUITY | ||||
Intercompany/affiliate payable | -1,456,777 | -1,367,869 | ||
Investment in subsidiaries | -816,043 | -451,249 | ||
Other long-term liabilities | -219 | -164 | ||
Member's (deficit) equity | 815,974 | 451,125 | ||
Total liabilities and equity | ($1,457,065) | ($1,368,157) |
Condensed_Consolidating_Balanc1
Condensed Consolidating Balance Sheet (Footnotes) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Verso Paper Finance Holdings LLC | ||
Condensed Financial Statements, Captions [Line Items] | ||
Long-term note receivable | $23,305 | $23,305 |
Verso Paper Holdings Limited Liability Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Long-term note receivable | 23,305 | 23,305 |
Guarantor Subsidiaries | Verso Paper Holdings Limited Liability Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Long-term note receivable | $23,305 | $23,300 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Operations and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | $326,400 | $350,200 | $320,900 | $299,100 | $350,400 | $374,900 | $330,400 | $333,200 | $1,296,613 | $1,388,899 | $1,474,612 | |
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 1,176,002 | 1,179,085 | 1,272,630 | |||||||||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 | |||||||||
Selling, general, and administrative expenses | 16,700 | 17,800 | 17,800 | 17,600 | 17,800 | 18,000 | 19,200 | 18,800 | 69,945 | 73,777 | 74,415 | |
Restructuring charges | 134,500 | 0 | 0 | 0 | 100 | 100 | 200 | 1,000 | 134,486 | 1,378 | 102,404 | 103,782 |
Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | -700 | -3,300 | 0 | -3,971 | -60,594 | |
Interest income | -2 | -25 | -8 | |||||||||
Interest expense | 35,400 | 36,700 | 35,700 | 34,500 | 34,300 | 34,400 | 34,400 | 34,700 | 142,331 | 137,728 | 135,461 | |
Other loss, net | 6,200 | 14,000 | 9,100 | 9,600 | 5,100 | 100 | 100 | 2,600 | 38,898 | 7,965 | 7,379 | |
Net loss | -184,000 | -35,600 | -42,800 | -90,600 | -20,000 | -9,800 | -43,000 | -38,400 | -352,955 | -111,206 | -173,829 | |
Other comprehensive income (loss) | -15,682 | 13,838 | 3,385 | |||||||||
Comprehensive loss | -368,637 | -97,368 | -170,444 | |||||||||
VERSO PAPER HOLDINGS LLC | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | 1,296,613 | 1,388,899 | 1,474,612 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 1,176,002 | 1,179,085 | 1,272,630 | |||||||||
Depreciation, amortization, and depletion | 90,897 | 104,730 | 118,178 | |||||||||
Selling, general, and administrative expenses | 69,945 | 73,777 | 74,364 | |||||||||
Restructuring charges | 134,486 | 1,378 | 102,404 | |||||||||
Other operating income | 0 | -3,971 | -60,594 | |||||||||
Interest income | -1,517 | -1,539 | -1,523 | |||||||||
Interest expense | 143,846 | 138,626 | 127,943 | |||||||||
Other loss, net | 38,898 | 7,965 | 7,380 | |||||||||
Equity in net loss of subsidiaries | 0 | 0 | 0 | |||||||||
Net loss | -355,944 | -111,152 | -166,170 | |||||||||
Other comprehensive income (loss) | -15,682 | 13,838 | 3,385 | |||||||||
Comprehensive loss | -371,626 | -97,314 | -162,785 | |||||||||
VERSO PAPER HOLDINGS LLC | Parent Issuer | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 0 | 0 | ||||||||||
Depreciation, amortization, and depletion | 0 | 0 | ||||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | ||||||||||
Other operating income | 0 | |||||||||||
Interest income | -141,246 | -138,298 | -129,801 | |||||||||
Interest expense | 141,246 | 138,298 | 129,801 | |||||||||
Other loss, net | 0 | 2,800 | 8,244 | |||||||||
Equity in net loss of subsidiaries | -355,944 | -108,352 | -157,926 | |||||||||
Net loss | -355,944 | -111,152 | -166,170 | |||||||||
Other comprehensive income (loss) | -15,682 | 13,838 | 3,385 | |||||||||
Comprehensive loss | -371,626 | -97,314 | -162,785 | |||||||||
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | 1,296,613 | 1,388,899 | 1,474,612 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 1,177,981 | 1,179,085 | 1,272,630 | |||||||||
Depreciation, amortization, and depletion | 89,509 | 103,655 | 117,014 | |||||||||
Selling, general, and administrative expenses | 71,336 | 75,452 | 76,039 | |||||||||
Restructuring charges | 134,486 | 1,378 | 102,404 | |||||||||
Other operating income | -3,971 | -60,594 | ||||||||||
Interest income | -1,517 | -1,539 | -1,523 | |||||||||
Interest expense | 139,385 | 137,083 | 126,399 | |||||||||
Other loss, net | 38,898 | 5,165 | -864 | |||||||||
Equity in net loss of subsidiaries | 0 | 0 | ||||||||||
Net loss | -353,465 | -107,409 | -156,893 | |||||||||
Other comprehensive income (loss) | -15,682 | 13,838 | 3,385 | |||||||||
Comprehensive loss | -369,147 | -93,571 | -153,508 | |||||||||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | 3,098 | 0 | 0 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 1,119 | 0 | 0 | |||||||||
Depreciation, amortization, and depletion | 1,388 | 1,075 | 1,164 | |||||||||
Selling, general, and administrative expenses | -1,422 | -1,707 | -1,707 | |||||||||
Restructuring charges | 0 | 0 | ||||||||||
Other operating income | 0 | |||||||||||
Interest income | 0 | 0 | ||||||||||
Interest expense | 4,492 | 1,574 | 1,575 | |||||||||
Other loss, net | 0 | 0 | 0 | |||||||||
Equity in net loss of subsidiaries | 0 | 0 | ||||||||||
Net loss | -2,479 | -942 | -1,032 | |||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||||
Comprehensive loss | -2,479 | -942 | -1,032 | |||||||||
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | 0 | 0 | ||||||||||
Depreciation, amortization, and depletion | 55 | 55 | 55 | |||||||||
Selling, general, and administrative expenses | 31 | 32 | 32 | |||||||||
Restructuring charges | 0 | 0 | 0 | |||||||||
Other operating income | 0 | |||||||||||
Interest income | -1,546 | -1,546 | -1,546 | |||||||||
Interest expense | 1,515 | 1,515 | 1,515 | |||||||||
Other loss, net | 0 | 0 | 0 | |||||||||
Equity in net loss of subsidiaries | 0 | |||||||||||
Net loss | -55 | -56 | -56 | |||||||||
Other comprehensive income (loss) | 0 | 0 | ||||||||||
Comprehensive loss | -55 | -56 | -56 | |||||||||
VERSO PAPER HOLDINGS LLC | Eliminations | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Net sales | -3,098 | 0 | 0 | |||||||||
Cost of products sold (exclusive of depreciation, amortization, and depletion) | -3,098 | 0 | ||||||||||
Depreciation, amortization, and depletion | -55 | -55 | -55 | |||||||||
Selling, general, and administrative expenses | 0 | 0 | 0 | |||||||||
Restructuring charges | 0 | 0 | ||||||||||
Other operating income | 0 | |||||||||||
Interest income | 142,792 | 139,844 | 131,347 | |||||||||
Interest expense | -142,792 | -139,844 | -131,347 | |||||||||
Other loss, net | 0 | 0 | 0 | |||||||||
Equity in net loss of subsidiaries | 355,944 | 108,352 | 157,926 | |||||||||
Net loss | 355,999 | 108,407 | 157,981 | |||||||||
Other comprehensive income (loss) | 15,682 | -13,838 | -3,385 | |||||||||
Comprehensive loss | $371,681 | $94,569 | $154,596 |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | ($57,765) | ($27,732) | $12,008 |
Cash Flows From Investing Activities: | |||
Proceeds from insurance settlement | 0 | 0 | 51,003 |
Proceeds from sale of assets | 809 | 28,397 | 1,731 |
Transfers to (from) restricted cash | 844 | -1,492 | 106 |
Capital expenditures | -41,963 | -40,660 | -59,909 |
Other investing activities | 15,020 | 0 | 0 |
Net cash used in investing activities | -25,290 | -13,755 | -7,069 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 433,449 | 145,000 | 112,500 |
Payments on revolving credit facilities | -340,449 | -145,000 | -112,500 |
Proceeds from long-term debt | 0 | 0 | -341,191 |
Repayments of long-term debt | -13,310 | -8,501 | -354,984 |
Debt issuance costs | -2,435 | -220 | -24,459 |
Net cash provided by (used in) financing activities | 77,302 | -8,743 | -38,283 |
Change in cash and cash equivalents | -5,753 | -50,230 | -33,344 |
Cash and cash equivalents at beginning of period | 11,295 | 61,525 | 94,869 |
Cash and cash equivalents at end of period | 5,542 | 11,295 | 61,525 |
VERSO PAPER HOLDINGS LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | -58,343 | -27,462 | 11,302 |
Cash Flows From Investing Activities: | |||
Proceeds from insurance settlement | 0 | 0 | 51,003 |
Proceeds from sale of assets | 809 | 28,397 | 1,731 |
Transfers to (from) restricted cash | 844 | -1,492 | 106 |
Capital expenditures | -41,963 | -40,660 | -59,909 |
Other investing activities | 15,020 | 0 | 0 |
Payments from subsidiaries | 0 | ||
Net cash used in investing activities | -25,290 | -13,755 | -7,069 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 433,449 | 145,000 | 112,500 |
Payments on revolving credit facilities | -340,449 | -145,000 | -112,500 |
Proceeds from long-term debt | 0 | 0 | -341,191 |
Return of capital | 0 | -8,653 | 0 |
Repayments of long-term debt | -13,310 | 0 | -354,984 |
Contribution from parent | 717 | 0 | 776 |
Cash distributions | -38 | -140 | -82 |
Debt issuance costs | -2,435 | -220 | -24,459 |
Payments to parent | 0 | ||
Net cash provided by (used in) financing activities | 77,934 | -9,013 | -37,558 |
Change in cash and cash equivalents | -5,699 | -50,230 | -33,325 |
Cash and cash equivalents at beginning of period | 11,240 | 61,470 | 94,795 |
Cash and cash equivalents at end of period | 5,541 | 11,240 | 61,470 |
VERSO PAPER HOLDINGS LLC | Parent Issuer | |||
Cash Flows From Investing Activities: | |||
Other investing activities | 0 | ||
Return of capital to Parent Issuer | 8,653 | ||
Advances to subsidiaries | -326,680 | -145,000 | -454,467 |
Payments from subsidiaries | 276,311 | 145,360 | 492,025 |
Net cash used in investing activities | -50,369 | 9,013 | 37,558 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 298,250 | 145,000 | 112,500 |
Payments on revolving credit facilities | -235,250 | -145,000 | -112,500 |
Proceeds from long-term debt | -341,191 | ||
Return of capital | -8,653 | ||
Repayments of long-term debt | -13,310 | -354,984 | |
Contribution from parent | 717 | 776 | |
Cash distributions | -38 | -140 | -82 |
Debt issuance costs | -220 | -24,459 | |
Payments to parent | 0 | ||
Net cash provided by (used in) financing activities | 50,369 | -9,013 | -37,558 |
Cash and cash equivalents at beginning of period | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | |
VERSO PAPER HOLDINGS LLC | Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | -60,051 | -27,609 | 9,449 |
Cash Flows From Investing Activities: | |||
Proceeds from insurance settlement | 51,003 | ||
Proceeds from sale of assets | 766 | 28,397 | 1,731 |
Transfers to (from) restricted cash | 2,222 | -1,338 | 184 |
Capital expenditures | -41,743 | -40,660 | -68,585 |
Other investing activities | 15,020 | ||
Payments from subsidiaries | 0 | 10,507 | |
Net cash used in investing activities | -23,735 | -13,601 | -5,160 |
Cash Flows From Financing Activities: | |||
Return of capital | -8,653 | ||
Contribution from parent | 0 | ||
Advances from parent | 326,680 | 145,000 | 454,467 |
Payments to parent | -248,598 | -145,360 | -492,025 |
Net cash provided by (used in) financing activities | 78,082 | -9,013 | -37,558 |
Change in cash and cash equivalents | -5,704 | -50,223 | -33,269 |
Cash and cash equivalents at beginning of period | 11,230 | 61,453 | 94,722 |
Cash and cash equivalents at end of period | 5,526 | 11,230 | 61,453 |
VERSO PAPER HOLDINGS LLC | Non-Guarantor Subsidiary | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 1,708 | 154 | 1,909 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of assets | 43 | ||
Transfers to (from) restricted cash | -1,378 | -154 | -78 |
Capital expenditures | -220 | 8,676 | |
Other investing activities | 0 | ||
Payments from subsidiaries | 0 | ||
Net cash used in investing activities | -1,555 | -154 | 8,598 |
Cash Flows From Financing Activities: | |||
Borrowings on revolving credit facilities | 135,199 | ||
Payments on revolving credit facilities | -105,199 | ||
Return of capital | -1,296 | ||
Contribution from parent | 0 | ||
Cash distributions | -10,507 | ||
Debt issuance costs | -2,435 | ||
Payments to parent | -26,417 | ||
Net cash provided by (used in) financing activities | -148 | -10,507 | |
Change in cash and cash equivalents | 5 | ||
Cash and cash equivalents at beginning of period | 0 | ||
Cash and cash equivalents at end of period | 5 | 0 | |
VERSO PAPER HOLDINGS LLC | Non-Guarantor Affiliate | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 0 | -7 | -56 |
Cash Flows From Investing Activities: | |||
Other investing activities | 0 | ||
Payments from subsidiaries | 0 | ||
Net cash used in investing activities | 0 | ||
Cash Flows From Financing Activities: | |||
Contribution from parent | 0 | ||
Net cash provided by (used in) financing activities | 0 | ||
Change in cash and cash equivalents | -7 | -56 | |
Cash and cash equivalents at beginning of period | 10 | 17 | 73 |
Cash and cash equivalents at end of period | 10 | 10 | 17 |
VERSO PAPER HOLDINGS LLC | Eliminations | |||
Cash Flows From Investing Activities: | |||
Proceeds from sale of assets | 0 | ||
Transfers to (from) restricted cash | 0 | ||
Capital expenditures | 0 | ||
Other investing activities | 0 | ||
Return of capital to Parent Issuer | -8,653 | ||
Advances to subsidiaries | 326,680 | 145,000 | 454,467 |
Payments from subsidiaries | -276,311 | -145,360 | -502,532 |
Net cash used in investing activities | 50,369 | -9,013 | -48,065 |
Cash Flows From Financing Activities: | |||
Return of capital | 1,296 | 8,653 | |
Cash distributions | 10,507 | ||
Advances from parent | -326,680 | -145,000 | -454,467 |
Payments to parent | 275,015 | 145,360 | 492,025 |
Net cash provided by (used in) financing activities | ($50,369) | $9,013 | $48,065 |
Quarterly_Data_Detail
Quarterly Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 27 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $326,400,000 | $350,200,000 | $320,900,000 | $299,100,000 | $350,400,000 | $374,900,000 | $330,400,000 | $333,200,000 | $1,296,613,000 | $1,388,899,000 | $1,474,612,000 | |
Gross margin | 23,200,000 | 55,400,000 | 45,200,000 | -3,200,000 | 62,800,000 | 69,100,000 | 36,500,000 | 41,400,000 | ||||
Cost of products sold | 319,900,000 | 317,900,000 | 301,100,000 | 328,000,000 | 313,700,000 | 332,100,000 | 320,200,000 | 317,800,000 | ||||
Selling, general, and administrative expenses | 16,700,000 | 17,800,000 | 17,800,000 | 17,600,000 | 17,800,000 | 18,000,000 | 19,200,000 | 18,800,000 | 69,945,000 | 73,777,000 | 74,415,000 | |
Restructuring charges | 134,500,000 | 0 | 0 | 0 | 100,000 | 100,000 | 200,000 | 1,000,000 | 134,486,000 | 1,378,000 | 102,404,000 | 103,782,000 |
Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | -700,000 | -3,300,000 | 0 | -3,971,000 | -60,594,000 | |
Interest expense | 35,400,000 | 36,700,000 | 35,700,000 | 34,500,000 | 34,300,000 | 34,400,000 | 34,400,000 | 34,700,000 | 142,331,000 | 137,728,000 | 135,461,000 | |
Other loss, net | 6,200,000 | 14,000,000 | 9,100,000 | 9,600,000 | 5,100,000 | 100,000 | 100,000 | 2,600,000 | 38,898,000 | 7,965,000 | 7,379,000 | |
Income tax benefit | -2,300,000 | -600,000 | 0 | 0 | -600,000 | 0 | 0 | 0 | -2,989,000 | -562,000 | -1,424,000 | |
Net income (loss) | ($184,000,000) | ($35,600,000) | ($42,800,000) | ($90,600,000) | ($20,000,000) | ($9,800,000) | ($43,000,000) | ($38,400,000) | ($352,955,000) | ($111,206,000) | ($173,829,000) | |
Earnings (loss) per share: | ||||||||||||
Basic (usd per share) | ($3.45) | ($0.67) | ($0.80) | ($1.70) | ($0.38) | ($0.18) | ($0.81) | ($0.72) | ($6.62) | ($2.09) | ($3.29) | |
Diluted (usd per share) | ($3.45) | ($0.67) | ($0.80) | ($1.70) | ($0.38) | ($0.18) | ($0.81) | ($0.72) | ($6.62) | ($2.09) | ($3.29) | |
Weighted average shares of common stock outstanding: | ||||||||||||
Basic (in shares) | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | 53,293 | 53,124 | 52,850 | |
Diluted (in shares) | 53,331 | 53,328 | 53,323 | 53,188 | 53,172 | 53,172 | 53,172 | 52,976 | 53,293 | 53,124 | 52,850 | |
Closing price per share: | ||||||||||||
High | $3.43 | $3.48 | $3.07 | $4.38 | $0.85 | $1.13 | $1.29 | $1.65 | ||||
Low | $2.34 | $2.20 | $1.69 | $0.65 | $0.54 | $0.62 | $1.03 | $0.98 | ||||
Period-end | $3.43 | $3.20 | $2.10 | $2.89 | $0.63 | $0.76 | $1.15 | $1.32 |
QUARTERLY_DATA_Table_Footnotes
QUARTERLY DATA (Table Footnotes) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Dividend declared | ||||||||
Dividends Payable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Dividend paid | ||||||||
Dividends Payable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
SUBSEQUENT_EVENTS_Merger_Detai
SUBSEQUENT EVENTS (Merger) (Details) (USD $) | 0 Months Ended | |||
Jan. 07, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 29, 2015 | |
subsidiary | ||||
Business Acquisition [Line Items] | ||||
Face amount of the long term debt facility acquired | $1,290,955,000 | $1,227,955,000 | ||
Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of subsidiaries consummated the sale of their equity interests | 2 | |||
Subsequent Event [Member] | New Page Holding Inc. | ||||
Business Acquisition [Line Items] | ||||
Liability incurred for the acquisition | 650,000,000 | |||
Shares of Verso common stock in exchange | 13,607,693 | |||
Subsequent Event [Member] | Term Loan [Member] | New Page Holding Inc. | ||||
Business Acquisition [Line Items] | ||||
Face amount of the long term debt facility acquired | 750,000,000 | |||
Debt assumed during the acquisition | 734,000,000 | |||
Principal payment due in 2015 | 3,000,000 | |||
Subsequent Event [Member] | ABL Facility [Member] | New Page Holding Inc. | ||||
Business Acquisition [Line Items] | ||||
Credit facility, borrowing capacity | 350,000,000 | |||
Debt assumed during the acquisition | $100,000,000 |
Recovered_Sheet15
Schedule II - Valuation accounts (Detail) (Allowance for Doubtful Accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $743 | $1,006 | $908 |
Charged to Cost and Expenses | -125 | 263 | 98 |
Charge-off Against Allowances | 0 | -526 | 0 |
Balance at End of Period | $618 | $743 | $1,006 |