Billerud Americas (VRS) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	VRS
Current Fiscal Year End Date	--12-31
Entity Registrant Name	VERSO CORPORATION
Entity Central Index Key	1,421,182
Entity Filer Category	Accelerated Filer
Common Class A
Document Information [Line Items]
Entity Common Stock, Class A, Shares Outstanding		34,553,364
Common Class B
Document Information [Line Items]
Entity Common Stock, Class A, Shares Outstanding		0

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 7	$ 7
Accounts receivable, net	215	208
Inventories	373	385
Prepaid expenses and other assets	12	14
Total current assets	607	614
Property, plant and equipment, net	1,047	1,062
Intangibles and other assets, net	55	56
Total assets	1,709	1,732
Current liabilities:
Accounts payable	216	176
Accrued liabilities	107	129
Current maturities of long-term debt	18	60
Total current liabilities	341	365
Long-term debt	144	130
Pension benefit obligation	440	457
Other liabilities	34	34
Total liabilities	959	986
Commitments and contingencies (Note 10)
Equity:
Preferred stock -- par value $0.01 (50,000,000 shares authorized, no shares issued)	0	0
Common stock -- par value $0.01 (210,000,000 Class A shares authorized with 34,173,571 shares issued and 34,164,434 outstanding on December 31, 2017 and 34,543,690 shares issued and 34,534,553 outstanding on June 30, 2018; 40,000,000 Class B shares authorized with 291,039 shares issued and outstanding on December 31, 2017 and no shares issued and outstanding on June 30, 2018)	0	0
Treasury stock -- at cost (9,137 shares on December 31, 2017 and June 30, 2018)	0	0
Paid-in-capital (including Warrants of $10 million)	680	676
Retained deficit	(70)	(62)
Accumulated other comprehensive income	140	132
Total equity	750	746
Total liabilities and equity	$ 1,709	$ 1,732

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Treasury stock, shares	9,137	9,137
Warrants and rights outstanding	$ 10	$ 10
Common Class A
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	210,000,000	210,000,000
Common stock, shares issued	34,543,690	34,173,571
Common stock, shares outstanding	34,534,553	34,164,434
Common Class B
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	0	291,039
Common stock, shares outstanding	0	291,039

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 644	$ 585	$ 1,283	$ 1,201
Costs and expenses:
Cost of products sold (exclusive of depreciation and amortization)	581	574	1,162	1,136
Depreciation and amortization	28	27	55	60
Selling, general and administrative expenses	28	24	53	57
Restructuring charges	1	2	2	4
Other operating (income) expense	2	0	2	0
Operating income (loss)	4	(42)	9	(56)
Interest expense	6	10	17	19
Other (income) expense	(3)	(3)	(7)	(5)
Income (loss) before income taxes	1	(49)	(1)	(70)
Income tax expense	0	0	0	0
Net income (loss)	$ 1	$ (49)	$ (1)	$ (70)
Income (loss) per common share:
Basic (usd per share)	$ 0.03	$ (1.42)	$ (0.03)	$ (2.03)
Diluted (usd per share)	$ 0.03	$ (1.42)	$ (0.03)	$ (2.03)
Weighted average common shares outstanding (in thousands):
Basic (shares)	34,506	34,416	34,486	34,403
Diluted (shares)	34,829	34,416	34,486	34,403

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1	$ (49)	$ (1)	$ (70)
Amortization of net actuarial loss and prior service cost	0	0	1	0
Other comprehensive income (loss), net of tax	0	0	1	0
Comprehensive income (loss)	$ 1	$ (49)	$ 0	$ (70)

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFECIT) - USD ($) $ in Millions	Total	Treasury Stock	Paid-in-Capital	Retained Deficit	Accumulated Other Comprehensive Income (Loss)	Class A	Class ACommon Stock	Class B	Class BCommon Stock
Common stock, shares, beginning of the period at Dec. 31, 2016							33,367,000		1,024,000
Stockholders' equity beginning of period at Dec. 31, 2016	$ 770	$ 0	$ 675	$ (32)	$ 127		$ 0		$ 0
Treasury stock, shares beginning of period at Dec. 31, 2016		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(70)			(70)
Other comprehensive income (loss), net	0
Common stock issued for restricted stock, net							44,000
Class B stock converted to Class A stock							482,000		(482,000)
Equity award expense	1		1
Common stock, shares, end of the period at Jun. 30, 2017							33,893,000		542,000
Treasury stock, shares end of period at Jun. 30, 2017		0
Stockholders' equity end of period at Jun. 30, 2017	701	$ 0	676	(102)	127		$ 0		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification of stranded tax effects (ASU 2018-02)				(7)	7
Common stock, shares, beginning of the period at Dec. 31, 2017						34,173,571	34,173,000	291,039	291,000
Stockholders' equity beginning of period at Dec. 31, 2017	$ 746	$ 0	676	(62)	132		$ 0		$ 0
Treasury stock, shares beginning of period at Dec. 31, 2017	(9,137)	(9,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (1)			(1)
Other comprehensive income (loss), net	1				1
Common stock issued for restricted stock, net							80,000
Class B stock converted to Class A stock							291,000		(291,000)
Equity award expense	$ 4		4
Common stock, shares, end of the period at Jun. 30, 2018						34,543,690	34,544,000	0	0
Treasury stock, shares end of period at Jun. 30, 2018	(9,137)	(9,000)
Stockholders' equity end of period at Jun. 30, 2018	$ 750	$ 0	$ 680	$ (70)	$ 140		$ 0		$ 0

UNAUDITED CONDENSED CONSOLIDAT7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities:
Net income (loss)	$ (1)	$ (70)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	55	60
Net periodic pension cost (income)	(3)	3
Pension plan contributions	(14)	(12)
Amortization of debt issuance cost and discount	7	4
Equity award expense	4	1
Changes in assets and liabilities:
Accounts receivable, net	(7)	(4)
Inventories	12	37
Prepaid expenses and other assets	1	4
Accounts payable	41	29
Accrued and other liabilities	(20)	(36)
Net cash provided by (used in) operating activities	75	16
Cash Flows From Investing Activities:
Capital expenditures	(38)	(21)
Net cash provided by (used in) investing activities	(38)	(21)
Cash Flows From Financing Activities:
Borrowings on ABL Facility	228	104
Payments on ABL Facility	(213)	(83)
Payments on Term Loan Facility	(51)	(16)
Net cash provided by (used in) financing activities	(36)	5
Change in Cash and cash equivalents and restricted cash	1	0
Cash and cash equivalents and restricted cash at beginning of period	9	9
Cash and cash equivalents and restricted cash at end of period	$ 10	$ 9

BACKGROUND AND BASIS OF PRESENT

BACKGROUND AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business — We operate in the following two market segments: paper and pulp. However, we determined that the operating income (loss) of the pulp segment is immaterial for disclosure purposes. Our core business platform is as a producer of coated freesheet, specialty and coated groundwood papers. Our products are used primarily in media and marketing applications, including catalogs, magazines, commercial printing applications, such as high-end advertising brochures, annual reports and direct-mail advertising, and specialty applications, such as flexible packaging and label and converting. Our market kraft pulp is used to manufacture printing, writing and specialty paper grades and tissue products. 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. We operate primarily in one geographic location, North America. Basis of Presentation — This report contains the Unaudited Condensed Consolidated Financial Statements of Verso as of December 31, 2017 and June 30, 2018 and for the three months and six months ended June 30, 2017 and June 30, 2018 . The December 31, 2017 , Unaudited Condensed Consolidated Balance Sheet data was derived from audited financial statements, but it does not include all disclosures required annually by accounting principles generally accepted in the United States of America, or “GAAP.” In the opinion of Management, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Verso’s respective financial conditions, results of operations and cash flows for the interim periods presented. Except as disclosed in the notes to the Unaudited Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Variable interest entities for which Verso is the primary beneficiary are consolidated. Intercompany balances and transactions are eliminated in consolidation. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. It is suggested that these financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Verso contained in its Annual Report on Form 10-K for the year ended December 31, 2017 . Going Concern — The Unaudited Condensed Consolidated Financial Statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

RECENT ACCOUNTING DEVELOPMENTS

RECENT ACCOUNTING DEVELOPMENTS	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING DEVELOPMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2018 ASC Topic 220, Income Statement - Reporting Comprehensive Income. In February 2018, the Financial Accounting Standards Board, or “FASB,” issued Accounting Standards Update, or “ASU,” 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) . This guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We early adopted this guidance in the first quarter of 2018 and recorded an adjustment from Accumulated other comprehensive income to Retained deficit of $7 million associated with pension obligations. Our accounting to reflect the provisions of the Tax Cuts and Jobs Act is complete after recording this adjustment. ASC Topic 715, Compensation - Retirement Benefits . In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) , which amends the existing guidance relating to the presentation of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. On January 1, 2018, we retrospectively adopted the presentation of service cost separate from the other components of net benefit cost. The interest costs, expected long-term return on plan assets, amortization of prior service costs and other costs have been reclassified from Cost of products sold and Selling, general and administrative expenses to Other (income) expense. We elected to apply the practical expedient, which allows us to reclassify amounts disclosed previously in the retirement benefits note as the basis for applying retrospective presentation for comparative periods. On a prospective basis, only service costs will be capitalized in inventory or property, plant & equipment. The effect of the retrospective presentation change related to the net periodic pension and other postretirement benefits plans on our Unaudited Condensed Consolidated Statement of Operations for the three months and six months ended June 30, 2017 , was as follows: Three Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 571 $ 574 $ 3 Selling, general and administrative expense 24 24 — Other (income) expense — (3 ) (3 ) Six Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 1,131 $ 1,136 $ 5 Selling, general and administrative expense 57 57 — Other (income) expense — (5 ) (5 ) In connection with the adoption of ASU 2017-07, we adopted an accounting policy effective January 1, 2018, on a prospective basis, to classify plan maintenance fees as a reduction of the expected return on plan assets, previously reported as a component of service cost. ASC Topic 230, Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force) . This ASU requires that restricted cash be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance was adopted on January 1, 2018 on a retrospective basis. This guidance did not have a material impact on our Unaudited Condensed Consolidated Financial Statements. ASC Topic 606, Revenue from Contracts with Customers . On January 1, 2018, we adopted Accounting Standards Codification, or “ASC,” 606, Revenue from Contracts with Customers and all amendments (“new revenue standard”) to all contracts that were not complete at the date of initial application using the modified retrospective method. The core principle of ASC 606 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. Under the new standard, a sales contract is established with our customer upon receipt and acknowledgment of a customer purchase order. After evaluating open contracts at January 1, 2018, we determined that there was no cumulative effect on our Unaudited Condensed Consolidated Financial Statements as a result of adoption of the new revenue standard. The comparative financial results from 2017 have not been restated and continue to be reported under the accounting standards in effect for that period. Adoption of this standard did not have a material impact on our sales or operations. See Note 3 for additional related revenue disclosures. We also adopted the following standards in 2018, neither of which had a material impact to our financial statements or financial statement disclosures: Standard Effective Date 2017-09 Stock Compensation - Scope of Modification Accounting January 1, 2018 2016-15 Classification of Certain Cash Receipts and Cash Payments January 1, 2018 Accounting Guidance Not Yet Adopted ASC Topic 842, Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 supersedes existing lease guidance, including ASC Topic 840, Leases, and requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases that will be effective for interim and annual periods beginning after December 15, 2018. We plan to adopt this guidance on January 1, 2019. The guidance requires the use of a modified retrospective approach. In July 2018, FASB issued ASU 2018-11 which provides a practical expedient to adopt the standard with a cumulative effect at the adoption date without restating prior periods. We expect to adopt this guidance for leases existing at the date of adoption. We expect to recognize a liability and corresponding asset associated with in-scope leases. We have formed an implementation team and commenced identification of our lease population, but we are still in the process of determining those amounts to be recognized as liabilities and right of use assets and the changes in processes required to account for leasing activity on an ongoing basis.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION Revenue is recognized when obligations under the contract with the customer are satisfied which primarily occurs at the time of shipment from our mills or warehouses. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods reflecting any variable consideration, the most significant of which is our volume rebate program. Sales taxes collected concurrent with revenue are excluded from revenues. Incidental items immaterial to the context of the contract are expensed as incurred. We do not have any material significant payment terms as payment is received shortly after the point of sale. With respect to variable consideration, the amount of consideration received and revenue recognized is adjusted for the most likely amount of credits based on historical experience. Revenues are adjusted at the earlier date of when the most likely amount expected to be received changes or the consideration becomes fixed. We have elected to recognize the cost of freight and shipping when control has transferred to the customer as fulfillment activities in Cost of products sold. The following table presents our revenues disaggregated by product included in our Unaudited Condensed Consolidated Statements of Operations: Three Months Six Months Ended Ended (Dollars in millions) June 30, 2018 June 30, 2018 Printing paper $ 363 $ 719 Coated groundwood 51 107 Specialty paper 162 317 Pulp 27 56 Supercalendared paper 41 84 Total Net sales $ 644 $ 1,283 The following table presents our revenue disaggregated by sales channel included in our Unaudited Condensed Consolidated Statement of Operations: Three Months Six Months Ended Ended (Dollars in millions) June 30, 2018 June 30, 2018 Direct sales $ 359 $ 716 Merchant sales 246 488 Broker sales 39 79 Total Net sales $ 644 $ 1,283

SUPPLEMENTAL FINANCIAL STATEMEN

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION	SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Restricted Cash — As of December 31, 2017 and June 30, 2018 , $2 million and $3 million , respectively, of restricted cash was included in Intangibles and other assets, net in the Unaudited Condensed Consolidated Balance Sheets mainly related to asset retirement obligations in the state of Michigan. These cash deposits are required by the state and may only be used for the future closure of a landfill. As of June 30, 2017 and June 30, 2018 , Cash and cash equivalents in the Unaudited Condensed Consolidated Statements of Cash Flows each include restricted cash of $3 million . Inventories — The following table summarizes inventories by major category: December 31, June 30, (Dollars in millions) 2017 2018 Raw materials $ 75 $ 82 Work-in-process 54 52 Finished goods 228 211 Replacement parts and other supplies 28 28 Inventories $ 385 $ 373 Property, plant and equipment — Depreciation expense for the three months and six months ended June 30, 2017 was $26 million and $57 million , respectively. Depreciation expense for the three months and six months ended June 30, 2018 was $26 million and $52 million , respectively. Interest costs capitalized for the three months and six months ended June 30, 2017 were each zero . Interest cost capitalized for the three months and six months ended June 30, 2018 were each $1 million . Property, plant and equipment includes capital expenditures unpaid as of June 30, 2017 and June 30, 2018 of $2 million and $8 million , respectively. Transactions with Affiliates — For the three months and six months ended June 30, 2017 and June 30, 2018 , we did not transact any material business with affiliates.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT The following table summarizes debt: Original December 31, June 30, (Dollars in millions) Maturity 2017 2018 ABL Facility 7/14/2021 $ 65 $ 80 Term Loan Facility 10/14/2021 146 96 Unamortized (discount) and debt issuance costs, net (21 ) (14 ) Less: Current portion (60 ) (18 ) Total long-term debt $ 130 $ 144 As of June 30, 2018 , the fair value of Verso’s total debt outstanding was $178 million . During the six months ended June 30, 2018 , we made scheduled principal payments totaling $9 million on the Term Loan Facility (as defined below) and we elected to make an additional $21 million voluntary principal prepayment on the Term Loan Facility from available liquidity, including amounts under our ABL Facility (as defined below) and applied that payment against the final maturity amount due in October 2021. As a result of the excess cash flow requirement in our Term Loan Facility, we were obligated to fund additional principal payments during the six months ended June 30, 2017 and June 30, 2018 of $7 million and $21 million , respectively. On July 18, 2018, we elected to make an additional $46 million voluntary principal prepayment on the Term Loan Facility from available liquidity including amounts under our ABL Facility, and we applied that payment against the final maturity amount and quarterly amortization amounts due in 2021. Amounts included in interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Six Months Six Months Ended Ended Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Interest expense $ 8 $ 5 $ 16 $ 11 Cash interest paid 7 6 15 11 Debt issuance cost and discount amortization (1) 2 1 4 7 (1) Amortization of debt issuance cost and original issue discount are included in interest expense on the Unaudited Condensed Consolidated Statements of Operations. Credit Facilities On July 15, 2016, VPH entered into a $375 million asset-based revolving credit facility, or the “ABL Facility,” and a $220 million senior secured term loan (with loan proceeds of $198 million after the deduction of the original issue discount of $22 million ), or the “Term Loan Facility,” and collectively termed the “Credit Facilities.” After the Internal Reorganization, Verso Paper became the borrower under the Credit Facilities. The amount of borrowings and letters of credit available to Verso pursuant to the ABL Facility is limited to the lesser of $375 million or an amount determined pursuant to a borrowing base ( $327 million as of June 30, 2018). As of June 30, 2018 , the outstanding balance of the ABL Facility was $80 million , with $ 38 million issued in letters of credit and $209 million available for future borrowings, and the weighted-average interest rate on outstanding borrowings was 4.26% . As of June 30, 2018 , the Term Loan’s interest rate was 13.13% per annum.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table provides a reconciliation of basic and diluted income (loss) per common share: Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Net income (loss) available to common shareholders (in millions) $ (49 ) $ 1 $ (70 ) $ (1 ) Weighted average common shares outstanding (in thousands) 34,416 34,506 34,403 34,486 Weighted average restricted shares (in thousands) — — — — Weighted average common shares outstanding - basic (in thousands) 34,416 34,506 34,403 34,486 Dilutive shares from stock awards (in thousands) — 323 — — Weighted average common shares outstanding - diluted (in thousands) 34,416 34,829 34,403 34,486 Basic income (loss) per share $ (1.42 ) $ 0.03 $ (2.03 ) $ (0.03 ) Diluted income (loss) per share $ (1.42 ) $ 0.03 $ (2.03 ) $ (0.03 ) As a result of the net loss from continuing operations for the three months and six months ended June 30, 2017 and for the six months ended June 30, 2018, 0.3 million and 1.3 million restricted stock units as of June 30, 2017 and June 30, 2018 , respectively, and 1.8 million warrants as of June 30, 2017 and June 30, 2018 have been excluded from the calculations of diluted earnings per share as their inclusion would be anti-dilutive. No dividends were declared or paid in the periods presented.

RETIREMENT AND OTHER POSTRETIRE

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS	RETIREMENT AND OTHER POSTRETIREMENT BENEFITS The following table summarizes the components of net periodic pension cost of our pension plans for the periods presented: Three Months Three Months Six Months Six Months Ended Ended Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Service cost $ 4 $ 2 $ 8 $ 3 Interest cost 16 15 32 30 Expected return on plan assets (19 ) (18 ) (37 ) (36 ) Net periodic pension cost (income) $ 1 $ (1 ) $ 3 $ (3 ) We make contributions that are sufficient to fund our actuarially-determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act. We made contributions to the pension plans of $6 million and $12 million in the three months and six months ended June 30, 2017 , respectively, and $8 million and $14 million in the three months and six months ended June 30, 2018 . We expect to make additional cash contributions of $29 million to the pension plans in the remainder of 2018 .

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
EQUITY	EQUITY Equity Awards On February 22, 2018, Verso granted 0.2 million service based restricted stock units to its executives and certain senior managers based on the closing market price of our Class A Common Stock on the date of grant. In addition, the compensation committee established performance criteria associated with 0.4 million restricted stock units that were awarded in 2017 for which the performance criteria had not been established at the award date. The compensation committee also granted 0.2 million additional performance restricted stock units on February 22, 2018. The performance awards vest at December 31, 2019 and 2020 based on a comparison of the compound annual growth rate (“CAGR”) of Verso’s stock price over a 3 -year period to the CAGR of peer group companies. The vesting criteria of the performance awards meet the definition of a market condition for accounting purposes. The full grant date value of the performance awards will be recognized over the remaining vesting period provided that the employee is employed continuously to the vesting date. The number of shares which will ultimately vest at the vesting date ranges from 50% to 150% based on Verso stock performance relative to the peer group. The grant date for all performance awards was February 22, 2018, and the compensation expense associated with these awards was determined using the Monte Carlo valuation methodology. As of June 30, 2018 , there was approximately $17 million of unrecognized compensation cost related to the 1.3 million non-vested restricted stock units, which is expected to be recognized over the weighted average period of 2.2 years. Time-based Restricted Stock Units Changes to non-vested time-based restricted stock units for the six months ended June 30, 2018 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2017 583 $ 6.89 Granted 190 16.87 Vested (80 ) 6.07 Forfeited (1 ) 11.50 Non-vested at June 30, 2018 692 9.72 Performance-based Restricted Stock Units Changes to non-vested performance-based restricted stock units for the six months ended June 30, 2018 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2017 — $ — Granted 640 22.25 Vested — — Forfeited — — Non-vested at June 30, 2018 640 22.25 Warrants On July 15, 2016, warrants to purchase up to an aggregate of 1.8 million shares of Class A Common Stock were issued to holders of first-lien secured debt at an initial exercise price of $27.86 per share. As of June 30, 2018 , no warrants have been exercised.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES Corporate Restructuring — In November 2016, Verso announced the closure of its Memphis office headquarters and relocation of its Corporate headquarters to Miamisburg, Ohio. The following table details the charges incurred related to the Memphis office closure as included in Restructuring charges on our Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Six Months Six Months Ended Ended Ended Ended Cumulative (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Incurred Severance and benefit costs $ — $ — $ 1 $ — $ 3 Write-off of purchase obligations — — — — 2 Other costs 1 — 1 — 1 Total restructuring costs $ 1 $ — $ 2 $ — $ 6 The following table details the changes in our restructuring reserve liabilities related to the Memphis office headquarters closure which are included in Accrued liabilities on our Unaudited Condensed Consolidated Balance Sheets: Six Months Six Months Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (3 ) — Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 1 $ 2 Androscoggin/Wickliffe Capacity Reductions — During 2015, Verso announced production capacity reductions at our Androscoggin Mill in Jay, Maine, and our Wickliffe Mill in Wickliffe, Kentucky. Together, these actions reduced our annual production capacity by approximately 430,000 tons of coated paper and approximately 130,000 tons of dried market pulp. The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions as included in Restructuring charges on our Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Six Months Six Months Ended Ended Ended Ended Cumulative (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Incurred Severance and benefit costs $ — $ — $ — $ — $ 5 Write-off of purchase obligations and commitments 1 — 1 — 3 Other costs — 1 1 2 8 Total restructuring costs $ 1 $ 1 $ 2 $ 2 $ 16 The following table details the changes in our restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions which are included in Accrued liabilities on our Unaudited Condensed Consolidated Balance Sheets: Six Months Six Months Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (1 ) — Purchase obligations 1 — Payments on purchase obligations (1 ) — Other costs 1 2 Payments on other costs (1 ) (2 ) Ending balance of reserve $ 5 $ 1 In connection with the temporary idling of the No. 3 paper machine at our Androscoggin Mill in the fourth quarter of 2016, we recognized $6 million of accelerated depreciation during the three months ended March 31, 2017, which is included in Depreciation and amortization in our Unaudited Condensed Consolidated Statement of Operations.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Represented Employees — Approximately 70% of our hourly workforce is represented by unions. All represented employees were covered by the Master Labor Agreement 2012–2016, dated as of December 21, 2012, covering wages and benefits; certain represented mills also had local agreements covering general work rules, until the expiration of the Master Labor Agreement in December 2016. The parties are engaged in collective bargaining at the Luke Mill, Escanaba Mill, Wisconsin Rapids Mill and Stevens Point Mill and continue to work under the terms and conditions of their expired agreements. 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 Unaudited Condensed Consolidated Financial Statements. Settlement Agreement — On March 20, 2018, we entered into a settlement agreement, or “the Settlement Agreement,” with Canadian producers of supercalendered paper, Port Hawkesbury Paper Limited Partnership and certain related entities, collectively, “Port Hawkesbury” and Irving Paper Limited, or “Irving”. In accordance with the terms of the Settlement Agreement, we filed with the U.S. Department of Commerce, or “Commerce,” a written request for a “no interest” changed circumstances review by Commerce of the final countervailing duty order, or the “CVD Order,” issued by Commerce on December 10, 2015, imposing tariffs on supercalendered paper imported into the United States from Canada since August 3, 2015, such request is referred to as the “Changed Circumstances Request”. We included in our Changed Circumstances Request, among other things, a request that Commerce revoke the CVD Order retroactively to August 3, 2015, which, if granted, would result in refunds to Canadian producers of supercalendered paper of all countervailing duties collected on supercalendered paper imported into the United States from such producers under the CVD Order. On July 5, 2018, Commerce granted our request and revoked the countervailing duties retroactively to August 3, 2015, the date the tariffs were originally imposed, which will result in a refund to Canadian producers of supercalendered paper of the countervailing duties previously collected on supercalendered paper imported into the United States from such producers. Pursuant to the Settlement Agreement, Irving and Port Hawkesbury agreed to pay us a percentage of the duties refunded to such parties over time. Assuming all funds are received by the Canadian producers, we expect to receive total settlement payments of up to $42 million before the end of 2018.

BACKGROUND AND BASIS OF PRESE18

BACKGROUND AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Developments	Accounting Guidance Adopted in 2018 ASC Topic 220, Income Statement - Reporting Comprehensive Income. In February 2018, the Financial Accounting Standards Board, or “FASB,” issued Accounting Standards Update, or “ASU,” 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) . This guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. We early adopted this guidance in the first quarter of 2018 and recorded an adjustment from Accumulated other comprehensive income to Retained deficit of $7 million associated with pension obligations. Our accounting to reflect the provisions of the Tax Cuts and Jobs Act is complete after recording this adjustment. ASC Topic 715, Compensation - Retirement Benefits . In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) , which amends the existing guidance relating to the presentation of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. On January 1, 2018, we retrospectively adopted the presentation of service cost separate from the other components of net benefit cost. The interest costs, expected long-term return on plan assets, amortization of prior service costs and other costs have been reclassified from Cost of products sold and Selling, general and administrative expenses to Other (income) expense. We elected to apply the practical expedient, which allows us to reclassify amounts disclosed previously in the retirement benefits note as the basis for applying retrospective presentation for comparative periods. On a prospective basis, only service costs will be capitalized in inventory or property, plant & equipment. The effect of the retrospective presentation change related to the net periodic pension and other postretirement benefits plans on our Unaudited Condensed Consolidated Statement of Operations for the three months and six months ended June 30, 2017 , was as follows: Three Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 571 $ 574 $ 3 Selling, general and administrative expense 24 24 — Other (income) expense — (3 ) (3 ) Six Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 1,131 $ 1,136 $ 5 Selling, general and administrative expense 57 57 — Other (income) expense — (5 ) (5 ) In connection with the adoption of ASU 2017-07, we adopted an accounting policy effective January 1, 2018, on a prospective basis, to classify plan maintenance fees as a reduction of the expected return on plan assets, previously reported as a component of service cost. ASC Topic 230, Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force) . This ASU requires that restricted cash be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance was adopted on January 1, 2018 on a retrospective basis. This guidance did not have a material impact on our Unaudited Condensed Consolidated Financial Statements. ASC Topic 606, Revenue from Contracts with Customers . On January 1, 2018, we adopted Accounting Standards Codification, or “ASC,” 606, Revenue from Contracts with Customers and all amendments (“new revenue standard”) to all contracts that were not complete at the date of initial application using the modified retrospective method. The core principle of ASC 606 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. Under the new standard, a sales contract is established with our customer upon receipt and acknowledgment of a customer purchase order. After evaluating open contracts at January 1, 2018, we determined that there was no cumulative effect on our Unaudited Condensed Consolidated Financial Statements as a result of adoption of the new revenue standard. The comparative financial results from 2017 have not been restated and continue to be reported under the accounting standards in effect for that period. Adoption of this standard did not have a material impact on our sales or operations. See Note 3 for additional related revenue disclosures. We also adopted the following standards in 2018, neither of which had a material impact to our financial statements or financial statement disclosures: Standard Effective Date 2017-09 Stock Compensation - Scope of Modification Accounting January 1, 2018 2016-15 Classification of Certain Cash Receipts and Cash Payments January 1, 2018 Accounting Guidance Not Yet Adopted ASC Topic 842, Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 supersedes existing lease guidance, including ASC Topic 840, Leases, and requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases that will be effective for interim and annual periods beginning after December 15, 2018. We plan to adopt this guidance on January 1, 2019. The guidance requires the use of a modified retrospective approach. In July 2018, FASB issued ASU 2018-11 which provides a practical expedient to adopt the standard with a cumulative effect at the adoption date without restating prior periods. We expect to adopt this guidance for leases existing at the date of adoption. We expect to recognize a liability and corresponding asset associated with in-scope leases. We have formed an implementation team and commenced identification of our lease population, but we are still in the process of determining those amounts to be recognized as liabilities and right of use assets and the changes in processes required to account for leasing activity on an ongoing basis.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The effect of the retrospective presentation change related to the net periodic pension and other postretirement benefits plans on our Unaudited Condensed Consolidated Statement of Operations for the three months and six months ended June 30, 2017 , was as follows: Three Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 571 $ 574 $ 3 Selling, general and administrative expense 24 24 — Other (income) expense — (3 ) (3 ) Six Months Ended June 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of Depreciation and amortization) $ 1,131 $ 1,136 $ 5 Selling, general and administrative expense 57 57 — Other (income) expense — (5 ) (5 )

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents our revenues disaggregated by product included in our Unaudited Condensed Consolidated Statements of Operations: Three Months Six Months Ended Ended (Dollars in millions) June 30, 2018 June 30, 2018 Printing paper $ 363 $ 719 Coated groundwood 51 107 Specialty paper 162 317 Pulp 27 56 Supercalendared paper 41 84 Total Net sales $ 644 $ 1,283 The following table presents our revenue disaggregated by sales channel included in our Unaudited Condensed Consolidated Statement of Operations: Three Months Six Months Ended Ended (Dollars in millions) June 30, 2018 June 30, 2018 Direct sales $ 359 $ 716 Merchant sales 246 488 Broker sales 39 79 Total Net sales $ 644 $ 1,283

SUPPLEMENTAL FINANCIAL STATEM21

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories by Major Category	The following table summarizes inventories by major category: December 31, June 30, (Dollars in millions) 2017 2018 Raw materials $ 75 $ 82 Work-in-process 54 52 Finished goods 228 211 Replacement parts and other supplies 28 28 Inventories $ 385 $ 373

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Summary of Debt	The following table summarizes debt: Original December 31, June 30, (Dollars in millions) Maturity 2017 2018 ABL Facility 7/14/2021 $ 65 $ 80 Term Loan Facility 10/14/2021 146 96 Unamortized (discount) and debt issuance costs, net (21 ) (14 ) Less: Current portion (60 ) (18 ) Total long-term debt $ 130 $ 144
Interest Expense Related to Debt and Cash Interests Payments on Debt	Amounts included in interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Six Months Six Months Ended Ended Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Interest expense $ 8 $ 5 $ 16 $ 11 Cash interest paid 7 6 15 11 Debt issuance cost and discount amortization (1) 2 1 4 7 (1) Amortization of debt issuance cost and original issue discount are included in interest expense on the Unaudited Condensed Consolidated Statements of Operations.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table provides a reconciliation of basic and diluted income (loss) per common share: Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Net income (loss) available to common shareholders (in millions) $ (49 ) $ 1 $ (70 ) $ (1 ) Weighted average common shares outstanding (in thousands) 34,416 34,506 34,403 34,486 Weighted average restricted shares (in thousands) — — — — Weighted average common shares outstanding - basic (in thousands) 34,416 34,506 34,403 34,486 Dilutive shares from stock awards (in thousands) — 323 — — Weighted average common shares outstanding - diluted (in thousands) 34,416 34,829 34,403 34,486 Basic income (loss) per share $ (1.42 ) $ 0.03 $ (2.03 ) $ (0.03 ) Diluted income (loss) per share $ (1.42 ) $ 0.03 $ (2.03 ) $ (0.03 )

RETIREMENT AND OTHER POSTRETI24

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2018
Retirement Benefits [Abstract]
Components of Net Periodic Benefit Cost	The following table summarizes the components of net periodic pension cost of our pension plans for the periods presented: Three Months Three Months Six Months Six Months Ended Ended Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Service cost $ 4 $ 2 $ 8 $ 3 Interest cost 16 15 32 30 Expected return on plan assets (19 ) (18 ) (37 ) (36 ) Net periodic pension cost (income) $ 1 $ (1 ) $ 3 $ (3 )

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
	Jun. 30, 2018
Time-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Nonvested Restricted Stock Units Activity	Changes to non-vested time-based restricted stock units for the six months ended June 30, 2018 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2017 583 $ 6.89 Granted 190 16.87 Vested (80 ) 6.07 Forfeited (1 ) 11.50 Non-vested at June 30, 2018 692 9.72
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Nonvested Restricted Stock Units Activity	Changes to non-vested performance-based restricted stock units for the six months ended June 30, 2018 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2017 — $ — Granted 640 22.25 Vested — — Forfeited — — Non-vested at June 30, 2018 640 22.25

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Charges Incurred Related to Shutdown	The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions as included in Restructuring charges on our Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Six Months Six Months Ended Ended Ended Ended Cumulative (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Incurred Severance and benefit costs $ — $ — $ — $ — $ 5 Write-off of purchase obligations and commitments 1 — 1 — 3 Other costs — 1 1 2 8 Total restructuring costs $ 1 $ 1 $ 2 $ 2 $ 16 The following table details the charges incurred related to the Memphis office closure as included in Restructuring charges on our Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Six Months Six Months Ended Ended Ended Ended Cumulative (Dollars in millions) June 30, 2017 June 30, 2018 June 30, 2017 June 30, 2018 Incurred Severance and benefit costs $ — $ — $ 1 $ — $ 3 Write-off of purchase obligations — — — — 2 Other costs 1 — 1 — 1 Total restructuring costs $ 1 $ — $ 2 $ — $ 6
Schedule of Restructuring Reserve by Type of Cost	The following table details the changes in our restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions which are included in Accrued liabilities on our Unaudited Condensed Consolidated Balance Sheets: Six Months Six Months Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (1 ) — Purchase obligations 1 — Payments on purchase obligations (1 ) — Other costs 1 2 Payments on other costs (1 ) (2 ) Ending balance of reserve $ 5 $ 1 The following table details the changes in our restructuring reserve liabilities related to the Memphis office headquarters closure which are included in Accrued liabilities on our Unaudited Condensed Consolidated Balance Sheets: Six Months Six Months Ended Ended (Dollars in millions) June 30, 2017 June 30, 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (3 ) — Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 1 $ 2

BACKGROUND AND BASIS OF PRESE27

BACKGROUND AND BASIS OF PRESENTATION (Detail)	6 Months Ended
	Jun. 30, 2018Segment
Segment Reporting Information [Line Items]
Number of operating segments	2
North America
Segment Reporting Information [Line Items]
Number of geographical locations in operation	1

RECENT ACCOUNTING PRONOUNCEME28

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax cuts and jobs act of 2017, reclassification from aoci to retained earnings, tax effect			$ 7
Cost of products sold (exclusive of depreciation and amortization)	$ 581	$ 574	1,162	$ 1,136
Selling, general and administrative expenses	28	24	53	57
Other (income) expense	$ (3)	(3)	$ (7)	(5)
Difference between Guidance in Effect before and after Topic 715 | Accounting Standards Update 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of products sold (exclusive of depreciation and amortization)		3		5
Selling, general and administrative expenses		0		0
Other (income) expense		(3)		(5)
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of products sold (exclusive of depreciation and amortization)		571		1,131
Selling, general and administrative expenses		24		57
Other (income) expense		$ 0		$ 0

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 644	$ 1,283
Direct sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	359	716
Merchant sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	246	488
Broker sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	39	79
Printing paper
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	363	719
Coated groundwood
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	51	107
Specialty paper
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	162	317
Pulp
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	27	56
Supercalendared paper
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 41	$ 84

SUPPLEMENTAL FINANCIAL STATEM30

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Restricted cash	$ 3,000,000	$ 3,000,000	$ 3,000,000	$ 3,000,000
Depreciation expense	26,000,000	26,000,000	52,000,000	57,000,000
Interest costs capitalized	1,000,000	$ 0	1,000,000	0
Capital expenditures unpaid			8,000,000	$ 2,000,000
Other Asset
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Asset retirement	$ 3,000,000		$ 3,000,000		$ 2,000,000

SUPPLEMENTAL FINANCIAL STATEM31

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Inventories by Major Category (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 82	$ 75
Work-in-process	52	54
Finished goods	211	228
Replacement parts and other supplies	28	28
Inventories	$ 373	$ 385

DEBT - Summary of Debt (Detail

DEBT - Summary of Debt (Detail) - USD ($) $ in Millions	Jul. 18, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Unamortized (discount) and debt issuance costs, net		$ (14)		$ (21)
Less: Current portion		(18)		(60)
Total long-term debt		144		130
Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Fair value of outstanding debt		178
ABL Facility | Revolving Credit Facilities
Debt Instrument [Line Items]
Long-term debt		80		65
Term Loan Facility
Debt Instrument [Line Items]
Long-term debt		96		$ 146
Term Loan Facility | Term Loan Facility
Debt Instrument [Line Items]
Periodic payment		9
Repayments of debt		$ 21	$ 7
Subsequent Event | Term Loan Facility | Term Loan Facility
Debt Instrument [Line Items]
Repayments of debt	$ 46

DEBT - Interest Expense Relate

DEBT - Interest Expense Related to Long Term Debt and Cash Interests Payments on Long Term Debt (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Interest expense	$ 5	$ 8	$ 11	$ 16
Cash interest paid	6	7	11	15
Debt issuance cost and discount amortization	$ 1	$ 2	$ 7	$ 4

DEBT - Credit Facilities (Detai

DEBT - Credit Facilities (Details) - USD ($)	Jul. 15, 2016	Jun. 30, 2018	Dec. 31, 2017
ABL Facility
Debt Instrument [Line Items]
Credit facility, remaining borrowing capacity		$ 209,000,000
ABL Facility | Revolving Credit Facilities
Debt Instrument [Line Items]
Long-term debt		$ 80,000,000	$ 65,000,000
Interest rate (percentage)		4.26%
ABL Facility | Revolving Credit Facilities | ABL Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity		$ 326,668,000
ABL Facility | Revolving Credit Facilities | Term Loan Facility
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 375,000,000
ABL Facility | Letter of Credit
Debt Instrument [Line Items]
Long-term debt		38,000,000
Term Loan Facility
Debt Instrument [Line Items]
Long-term debt		$ 96,000,000	$ 146,000,000
Term Loan Facility | Term Loan Facility
Debt Instrument [Line Items]
Debt instrument, face amount	220,000,000
Current borrowing capacity	198,000,000
Debt instrument, unamortized discount	$ 22,000,000
Interest rate (percentage)		13.13%

EARNINGS PER SHARE (Reconciliat

EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ 1	$ (49)	$ (1)	$ (70)
Weighted average common stock outstanding (shares)	34,506	34,416	34,486	34,403
Weighted average restricted stock (shares)	0	0	0	0
Weighted average common shares outstanding - basic (shares)	34,506	34,416	34,486	34,403
Dilutive shares from stock options (shares)	323	0	0	0
Weighted average common shares outstanding - diluted (shares)	34,829	34,416	34,486	34,403
Basic income (loss) per share (usd per share)	$ 0.03	$ (1.42)	$ (0.03)	$ (2.03)
Diluted income (loss) per share (usd per share)	$ 0.03	$ (1.42)	$ (0.03)	$ (2.03)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares shares in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jul. 15, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares called by warrants (in shares)	1.8	1.8	1.8
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Grants in period (in shares)	1.3	0.3

RETIREMENT AND OTHER POSTRETI37

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - Pension Plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2	$ 4	$ 3	$ 8
Interest cost	15	16	30	32
Expected return on plan assets	(18)	(19)	(36)	(37)
Net periodic benefit cost	$ (1)	$ 1	$ (3)	$ 3

RETIREMENT AND OTHER POSTRETI38

RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Additional Information (Detail) - Pension Plan - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Contribution made by employer	$ 8	$ 6	$ 14	$ 12
Cash contribution	$ 29		$ 29

EQUITY (Details)

EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2018	Feb. 22, 2018	Dec. 31, 2017	Jun. 30, 2017	Jul. 15, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compound annual growth rate, period	3 years
Compensation cost not yet recognized	$ 17
Number of shares called by warrants (in shares)	1,800,000			1,800,000	1,800,000
Class of warrant or right, exercised (in shares)	0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		200,000
Vested and expected to vest, outstanding (in shares)	1,300,000
Compensation cost not yet recognized, period for recognition	2 years 2 months 12 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	50.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	150.00%
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)					$ 27.86
Performance Criteria | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		200,000	400,000

EQUITY - Changes In Non-vested

EQUITY - Changes In Non-vested Units (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Time-based Restricted Stock Units
Units Outstanding
Non-vested, beginning balance (in shares) | shares	583
Grants in period (in shares) | shares	190
Vested (in shares) | shares	(80)
Forfeited (in shares) | shares	(1)
Non-vested, ending balance (in shares) | shares	692
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning balance (in dollar per share) | $ / shares	$ 6.89
Grants in period (in dollar per share) | $ / shares	16.87
Vested (in dollar per share) | $ / shares	6.07
Forfeited (in dollar per share) | $ / shares	11.50
Non-vested, ending balance (in dollar per share) | $ / shares	$ 9.72
Performance-based Restricted Stock Units
Units Outstanding
Non-vested, beginning balance (in shares) | shares	0
Grants in period (in shares) | shares	640
Vested (in shares) | shares	0
Forfeited (in shares) | shares	0
Non-vested, ending balance (in shares) | shares	640
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning balance (in dollar per share) | $ / shares	$ 0
Grants in period (in dollar per share) | $ / shares	22.25
Vested (in dollar per share) | $ / shares	0
Forfeited (in dollar per share) | $ / shares	0
Non-vested, ending balance (in dollar per share) | $ / shares	$ 22.25

RESTRUCTURING CHARGES - Expense

RESTRUCTURING CHARGES - Expenses related to office closure (Details) - USD ($)	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1,000,000	$ 2,000,000	$ 2,000,000	$ 4,000,000
Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1,000,000	0	2,000,000	$ 6,000,000
Severance and benefit costs | Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	0	1,000,000	3,000,000
Write-off of purchase obligations | Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	0	0	2,000,000
Other costs | Facility Closing
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 1,000,000	$ 0	$ 1,000,000	$ 1,000,000

RESTRUCTURING CHARGES - Restruc

RESTRUCTURING CHARGES - Restructuring Reserve (Details) - Facility Closing - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Restructuring Reserve [Roll Forward]
Beginning balance of reserve	$ 2	$ 3
Severance and benefit costs	0	1
Other costs	0	1
Ending balance of reserve	2	1
Severance and benefit payments
Restructuring Reserve [Roll Forward]
Payments	0	(3)
Other costs
Restructuring Reserve [Roll Forward]
Payments	$ 0	$ (1)

RESTRUCTURING CHARGES - Additio

RESTRUCTURING CHARGES - Additional information (Details) T in Thousands, $ in Millions	3 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015T
Paper
Restructuring Cost and Reserve [Line Items]
Decrease in production capacity (in tons)		430
Pulp
Restructuring Cost and Reserve [Line Items]
Decrease in production capacity (in tons)		130
Androscoggin- Wickliffe Capacity Reduction
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation | $	$ 6

RESTRUCTURING CHARGES - Charges

RESTRUCTURING CHARGES - Charges Incurred Related to Shutdown (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1	$ 2	$ 2	$ 4
Androscoggin- Wickliffe Capacity Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1	1	2	2	$ 16
Severance and benefit costs | Androscoggin- Wickliffe Capacity Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	0	0	5
Write-off of purchase obligations and commitments | Androscoggin- Wickliffe Capacity Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	1	0	1	3
Other costs | Androscoggin- Wickliffe Capacity Reduction
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1	$ 0	$ 2	$ 1	$ 8

RESTRUCTURING CHARGES - Capacit

RESTRUCTURING CHARGES - Capacity Reductions (Details) - Androscoggin- Wickliffe Capacity Reduction - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Beginning balance of reserve	$ 1	$ 6
Other costs	2	1
Ending balance of reserve	1	5
Severance and benefit payments
Restructuring Cost and Reserve [Line Items]
Payments	0	(1)
Purchase Obligation
Restructuring Cost and Reserve [Line Items]
Payments	0	(1)
Purchase obligations	0	1
Other costs
Restructuring Cost and Reserve [Line Items]
Payments	$ (2)	$ (1)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions	Jul. 05, 2018	Jun. 30, 2018
Loss Contingencies [Line Items]
Workforce, represented by union, percentage		70.00%
Subsequent Event | Settlement Agreement | Maximum
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 42