Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Class A, Shares Outstanding | 34,553,376 | |
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 | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 7 | $ 7 |
Accounts receivable, net | 255 | 208 |
Inventories | 377 | 385 |
Prepaid expenses and other assets | 11 | 14 |
Total current assets | 650 | 614 |
Property, plant and equipment, net | 1,026 | 1,062 |
Intangibles and other assets, net | 53 | 56 |
Total assets | 1,729 | 1,732 |
Current liabilities: | ||
Accounts payable | 210 | 176 |
Accrued liabilities | 122 | 129 |
Current maturities of long-term debt | 0 | 60 |
Total current liabilities | 332 | 365 |
Long-term debt | 108 | 130 |
Pension benefit obligation | 417 | 457 |
Other liabilities | 34 | 34 |
Total liabilities | 891 | 986 |
Commitments and contingencies (Note 11) | ||
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 34,569,917 shares issued and 34,553,376 outstanding on September 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 September 30, 2018) | 0 | 0 |
Treasury stock -- at cost (9,137 shares on December 31, 2017 and 16,541 shares on September 30, 2018) | 0 | 0 |
Paid-in-capital (including Warrants of $10 million) | 682 | 676 |
Retained earnings (deficit) | 16 | (62) |
Accumulated other comprehensive income | 140 | 132 |
Total equity | 838 | 746 |
Total liabilities and equity | $ 1,729 | $ 1,732 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 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 | 16,541 | 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 | 34,569,917 | 34,173,571 |
Common stock, shares outstanding | 34,553,376 | 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 CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 704 | $ 621 | $ 1,987 | $ 1,822 |
Costs and expenses: | ||||
Cost of products sold (exclusive of depreciation and amortization) | 580 | 554 | 1,742 | 1,690 |
Depreciation and amortization | 28 | 27 | 83 | 87 |
Selling, general and administrative expenses | 25 | 24 | 78 | 81 |
Restructuring charges | 0 | 4 | 2 | 8 |
Other operating (income) expense | (9) | 0 | (7) | 0 |
Operating income (loss) | 80 | 12 | 89 | (44) |
Interest expense | 15 | 10 | 32 | 29 |
Other (income) expense | (21) | (2) | (28) | (7) |
Income (loss) before income taxes | 86 | 4 | 85 | (66) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | $ 86 | $ 4 | $ 85 | $ (66) |
Income (loss) per common share: | ||||
Basic (usd per share) | $ 2.49 | $ 0.12 | $ 2.46 | $ (1.92) |
Diluted (usd per share) | $ 2.45 | $ 0.12 | $ 2.44 | $ (1.92) |
Weighted average common shares outstanding (in thousands): | ||||
Basic (shares) | 34,562 | 34,456 | 34,511 | 34,421 |
Diluted (shares) | 35,051 | 34,460 | 34,868 | 34,421 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 86 | $ 4 | $ 85 | $ (66) |
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) | $ 86 | $ 4 | $ 86 | $ (66) |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFECIT) - USD ($) $ in Millions | Total | Treasury Stock | Paid-in-Capital | Retained Earnings (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) | (66) | (66) | |||||||
Treasury stock acquired, shares | 9,000 | ||||||||
Treasury stock acquired | 0 | $ 0 | |||||||
Other comprehensive income (loss), net | 0 | ||||||||
Common stock issued for restricted stock, net | 73,000 | ||||||||
Class B stock converted to Class A stock | 655,000 | (655,000) | |||||||
Equity award expense | 1 | 1 | |||||||
Common stock, shares, end of the period at Sep. 30, 2017 | 34,095,000 | 369,000 | |||||||
Stockholders' equity end of period at Sep. 30, 2017 | 705 | $ 0 | 676 | (98) | 127 | $ 0 | $ 0 | ||
Treasury stock, shares end of period at Sep. 30, 2017 | (9,000) | ||||||||
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) | $ 85 | 85 | |||||||
Treasury stock acquired, shares | 7,000 | ||||||||
Other comprehensive income (loss), net | 1 | 1 | |||||||
Common stock issued for restricted stock, net | 106,000 | ||||||||
Class B stock converted to Class A stock | 291,000 | (291,000) | |||||||
Equity award expense | 6 | 6 | |||||||
Common stock, shares, end of the period at Sep. 30, 2018 | 34,569,917 | 34,570,000 | 0 | 0 | |||||
Stockholders' equity end of period at Sep. 30, 2018 | $ 838 | $ 0 | $ 682 | $ 16 | $ 140 | $ 0 | $ 0 | ||
Treasury stock, shares end of period at Sep. 30, 2018 | (16,541) | (16,000) |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 85 | $ (66) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 83 | 87 |
Net periodic pension cost (income) | (5) | 5 |
Pension plan contributions | (35) | (25) |
Amortization of debt issuance cost and discount | 19 | 6 |
Equity award expense | 6 | 1 |
(Gain) loss on sale or disposal of assets | (8) | 1 |
Prepayment premium on Term Loan Facility | (1) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (44) | (21) |
Inventories | 8 | 46 |
Prepaid expenses and other assets | 3 | 5 |
Accounts payable | 39 | 54 |
Accrued and other liabilities | (6) | (29) |
Net cash provided by (used in) operating activities | 146 | 64 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of assets | 17 | 0 |
Capital expenditures | (61) | (29) |
Grant proceeds from Maine Technology Institute | 1 | |
Net cash provided by (used in) investing activities | (43) | (29) |
Cash Flows From Financing Activities: | ||
Borrowings on ABL Facility | 379 | 156 |
Payments on ABL Facility | (335) | (151) |
Payments on Term Loan Facility | (146) | (40) |
Prepayment premium on Term Loan Facility | (1) | |
Net cash provided by (used in) financing activities | (103) | (35) |
Change in Cash and cash equivalents and restricted cash | 0 | 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 | $ 9 | $ 9 |
SUMMARY OF BUSINESS AND BASIS O
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | SUMMARY OF BUSINESS AND BASIS OF PRESENTATION Nature of Business — Verso operates in the pulp and paper market segments. However, Verso determined that the operating income (loss) of the pulp segment is immaterial for disclosure purposes. Verso’s core business platform is as a producer of coated freesheet, specialty and coated groundwood papers. Verso’s 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. Verso’s market kraft pulp is used to manufacture printing, writing and specialty paper grades, tissue, containerboard, bag and other products. Verso’s assets are utilized across segments in an integrated mill system and are not identified by segment or reviewed by management on a segment basis. Verso operates 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 September 30, 2018 and for the three months and nine months ended September 30, 2017 and September 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 Verso’s opinion, 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 . |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 9 Months Ended |
Sep. 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. Verso early adopted this guidance in the first quarter of 2018 and recorded an adjustment from Accumulated other comprehensive income to Retained earnings (deficit) of $7 million associated with pension obligations during the three months ended March 31, 2018. Verso’s 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, Verso 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. Verso elected to apply the practical expedient, which allows for the reclassification of 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 the Unaudited Condensed Consolidated Statement of Operations for the three months and nine months ended September 30, 2017 , was as follows: Three Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 552 $ 554 $ 2 Selling, general and administrative expenses 24 24 — Other (income) expense — (2 ) (2 ) Nine Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 1,683 $ 1,690 $ 7 Selling, general and administrative expenses 81 81 — Other (income) expense — (7 ) (7 ) In connection with the adoption of ASU 2017-07, Verso 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 the Unaudited Condensed Consolidated Financial Statements. ASC Topic 606, Revenue from Contracts with Customers . On January 1, 2018, Verso 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 the new revenue standard 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 a customer upon receipt and acknowledgment of a customer purchase order. After evaluating open contracts at January 1, 2018, Verso determined that there was no cumulative effect on the 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 sales or operating results. See Note 3 for additional related revenue disclosures. Verso also adopted the following standards in 2018, neither of which had a material impact to the 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. Verso plans to adopt this guidance on January 1, 2019. The guidance requires the use of a modified retrospective approach. In July 2018, the 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. Verso plans to adopt the practical expedient and expects to recognize a liability and corresponding asset associated with in-scope leases. Verso’s implementation team is reviewing the lease population, but is 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. ASC Topic 350, Intangible Assets - Goodwill & Other . In August 2018, the FASB issued ASU 2018-15 Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement that is a Service Contract, which aligns the accounting for such costs with guidance on capitalizing costs associated with developing or obtaining internal use software. The guidance is effective for fiscal years beginning after December 15, 2019. Verso is currently evaluating the impact of this guidance. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 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 Verso’s mills or warehouses. Revenue is measured as the amount of consideration Verso expects to receive in exchange for transferring goods reflecting any variable consideration, the most significant of which is the volume rebate program. Sales taxes collected concurrent with revenue are excluded from revenues. Incidental costs immaterial to the context of the contract are expensed as incurred. Verso does not have any significant payment terms as payment is received shortly after the point of sale. With respect to variable consideration, the amount of consideration expected to be received and revenue recognized includes the most likely amount of credits based on historical experience. Revenues are adjusted at the earlier date of when the most likely amount of consideration expected to be received changes or the consideration becomes fixed. Verso recognizes 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 the revenues disaggregated by product included on the Unaudited Condensed Consolidated Statements of Operations: Three Months Nine Months Ended Ended (Dollars in millions) September 30, 2018 September 30, 2018 Printing paper $ 393 $ 1,112 Coated groundwood 51 158 Specialty paper 173 490 Pulp 39 95 Supercalendared paper 48 132 Total Net sales $ 704 $ 1,987 The following table presents the revenue disaggregated by sales channel included on the Unaudited Condensed Consolidated Statement of Operations: Three Months Nine Months Ended Ended (Dollars in millions) September 30, 2018 September 30, 2018 Direct sales $ 399 $ 1,115 Merchant sales 248 735 Broker sales 57 137 Total Net sales $ 704 $ 1,987 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Sep. 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 September 30, 2018 , $2 million of restricted cash was included in Intangibles and other assets, net on the Unaudited Condensed Consolidated Balance Sheets primarily 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 September 30, 2017 and September 30, 2018 , Cash and cash equivalents and restricted cash on the Unaudited Condensed Consolidated Statements of Cash Flows include restricted cash of $3 million and $2 million , respectively. Inventories — The following table summarizes inventories by major category: December 31, September 30, (Dollars in millions) 2017 2018 Raw materials $ 75 $ 91 Work-in-process 54 57 Finished goods 228 201 Replacement parts and other supplies 28 28 Inventories $ 385 $ 377 Property, plant and equipment — Depreciation expense for the three months and nine months ended September 30, 2017 was $25 million and $82 million , respectively. Depreciation expense for the three months and nine months ended September 30, 2018 was $26 million and $78 million , respectively. Interest costs capitalized for the three months and nine months ended September 30, 2017 were each zero . Interest cost capitalized for the three months and nine months ended September 30, 2018 were zero and $1 million , respectively. Property, plant and equipment includes capital expenditures unpaid as of September 30, 2017 and September 30, 2018 of $3 million . As of September 30, 2018 , Property, plant and equipment was reduced by $4 million as a result of meeting all pertinent milestones of the Maine Technology Asset Fund 2.0 challenge grant, covering a portion of the capital costs associated with the upgrade of the previously shuttered No. 3 paper machine and pulp line at the Androscoggin Mill in Jay, Maine. Verso received $1 million of the grant funds in July 2018 and an additional $1 million in October 2018. The remaining $2 million of the grant funds are scheduled to be received in January 2019. As of September 30, 2018, $3 million related to outstanding grant funds is recorded in Accounts receivable on the Unaudited Condensed Consolidated Balance Sheet. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Sale of Wickliffe Mill — On August 16, 2018, Verso Paper entered into a purchase agreement with Global Win Wickliffe LLC (“Purchaser”), pursuant to which Verso Paper agreed to sell, and Purchaser agreed to purchase, one of Verso’s subsidiaries, Verso Wickliffe LLC (“Verso Wickliffe”), for a purchase price of $16 million in cash. Verso Wickliffe owned substantially all of the assets that comprised Verso’s Wickliffe, Kentucky paper mill (the “Wickliffe Mill”) and related operations. Verso previously announced its decision to permanently close the Wickliffe Mill in April 2016. The sale closed on September 5, 2018, and resulted in a gain of $9 million , included in Other operating (income) loss on the Unaudited Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2018. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes debt: Original December 31, September 30, (Dollars in millions) Maturity 2017 2018 ABL Facility 7/14/2021 $ 65 $ 110 Term Loan Facility 10/14/2021 146 — Unamortized (discount) and debt issuance costs, net (21 ) (2 ) Less: Current portion (60 ) — Total long-term debt $ 130 $ 108 As of September 30, 2018 , the fair value of Verso’s total debt outstanding was $110 million . During the nine months ended September 30, 2018 , Verso made scheduled principal payments totaling $9 million on the Term Loan Facility (as defined below). As a result of the excess cash flow requirement in the Term Loan Facility, Verso was obligated to fund additional principal payments during the nine months ended September 30, 2018 of $21 million . Verso also elected to make additional voluntary principal prepayments on the Term Loan Facility totaling $116 million during the nine months ended September 30, 2018 from available liquidity, including amounts borrowed under the ABL Facility (as defined below). The mandatory and voluntary principal prepayments resulted in the full pay off of the Term Loan Facility on September 10, 2018. During the nine months ended September 30, 2017 , scheduled principal payments totaling $13 million were made on the Term Loan Facility. As a result of the excess cash flow requirement in the Term Loan Facility, Verso was obligated to fund additional principal payments during the nine months ended September 30, 2017 of $7 million . Verso also elected to make additional voluntary principal prepayments totaling $20 million during the nine months ended September 30, 2017 from available liquidity, including amounts borrowed under the ABL Facility. Amounts included in interest expense and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Interest expense (1) $ 7 $ 3 $ 23 $ 14 Cash interest paid 8 4 23 15 Debt issuance cost and discount amortization (2) 3 12 6 19 (1) Represents interest expense incurred on the Credit Facilities (as defined below), exclusive of amortization of debt issuance cost and discount and inclusive of amounts capitalized. See Note 4 for additional information on capitalized interest costs. (2) Amortization of debt issuance cost and original issue discount, including the accelerated amortization associated with the early extinguishment of the Term Loan Facility, are included in Interest expense on the Unaudited Condensed Consolidated Statements of Operations and in Amortization of debt issuance cost and discount on the Unaudited Condensed Consolidated Statements of Cash Flows. 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 ( $349 million as of September 30, 2018 ). As of September 30, 2018 , the outstanding balance of the ABL Facility was $110 million , with $ 38 million issued in letters of credit and $201 million available for future borrowings, and the weighted-average interest rate on outstanding borrowings was 4.11% . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 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 Nine Months Nine Months Ended Ended Ended Ended September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Net income (loss) available to common shareholders (in millions) $ 4 $ 86 $ (66 ) $ 85 Weighted average common shares outstanding - basic (in thousands) 34,456 34,562 34,421 34,511 Dilutive shares from stock awards (in thousands) 4 489 — 357 Weighted average common shares outstanding - diluted (in thousands) 34,460 35,051 34,421 34,868 Basic income (loss) per share $ 0.12 $ 2.49 $ (1.92 ) $ 2.46 Diluted income (loss) per share $ 0.12 $ 2.45 $ (1.92 ) $ 2.44 As a result of the net loss from continuing operations for the nine months ended September 30, 2017, 0.3 million restricted stock units as of September 30, 2017 were excluded from the calculation of diluted earnings per share as their inclusion would be anti-dilutive. Verso has 1.8 million warrants outstanding at an exercise price of $27.86 (see Note 9 for more information on warrants). As a result of the exercise price of the warrants exceeding the average market price of Verso’s common stock during the three and nine months ended September 30, 2017 and 2018, 1.8 million warrants as of September 30, 2017 and September 30, 2018 were 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 | 9 Months Ended |
Sep. 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 the pension plans for the periods presented: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Service cost $ 4 $ 1 $ 12 $ 4 Interest cost 17 15 49 45 Expected return on plan assets (19 ) (18 ) (56 ) (54 ) Net periodic pension cost (income) $ 2 $ (2 ) $ 5 $ (5 ) Verso makes contributions to fund retirement benefits on an actuarially-determined basis, generally equal to the minimum amounts required by the Employee Retirement Income Security Act. Verso made contributions to the pension plans of $13 million and $25 million in the three months and nine months ended September 30, 2017 , respectively, and $21 million and $35 million in the three months and nine months ended September 30, 2018 , respectively. Verso expects to make additional cash contributions of $8 million to the pension plans in the remainder of 2018 . |
EQUITY
EQUITY | 9 Months Ended |
Sep. 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. 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 September 30, 2018 , there was approximately $15 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 1.9 years. Time-based Restricted Stock Units Changes to non-vested time-based restricted stock units for the nine months ended September 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 (106 ) 7.42 Forfeited (3 ) 14.08 Non-vested at September 30, 2018 664 9.64 Performance-based Restricted Stock Units Changes to non-vested performance-based restricted stock units for the nine months ended September 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 (2 ) 18.22 Non-vested at September 30, 2018 638 22.26 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 exercise price of $27.86 per share. As of September 30, 2018 , no warrants have been exercised. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 9 Months Ended |
Sep. 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 the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Cumulative (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Incurred Severance and benefit costs $ — $ — $ 1 $ — $ 3 Write-off of purchase obligations 2 — 2 — 2 Other costs — — 1 — 1 Total restructuring costs $ 2 $ — $ 4 $ — $ 6 The following table details the changes in the restructuring reserve liabilities related to the Memphis office headquarters closure which are included in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets: Nine Months Nine Months Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (4 ) — Purchase obligations 2 — Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 2 $ 2 Androscoggin/Wickliffe Capacity Reductions — During 2015, Verso announced production capacity reductions at its Androscoggin Mill in Jay, Maine, and its Wickliffe Mill in Wickliffe, Kentucky. Together, these actions reduced Verso’s 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 the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Cumulative (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Incurred Severance and benefit costs $ — $ — $ — $ — $ 5 Write-off of purchase obligations and commitments — — 1 — 3 Other costs 2 — 3 2 8 Total restructuring costs $ 2 $ — $ 4 $ 2 $ 16 The following table details the changes in the restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions which are included in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets: Nine Months Nine Months Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (5 ) (1 ) Purchase obligations 1 — Payments on purchase obligations (1 ) — Other costs 3 2 Payments on other costs (3 ) (2 ) Ending balance of reserve $ 1 $ — In connection with the temporary idling of the No. 3 paper machine at the Androscoggin Mill in the fourth quarter of 2016, Verso recognized $6 million of accelerated depreciation during the three months ended March 31, 2017, which is included in Depreciation and amortization on the Unaudited Condensed Consolidated Statement of Operations. In September 2018, the Wickliffe Mill was sold. See Note 5 for additional information related to the sale. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Represented Employees — Approximately 70% of Verso’s 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 — From time to time, Verso is involved in legal proceedings incidental to the conduct of the business. Management does not believe that any liability that may result from these proceedings will have a material, adverse effect on the Unaudited Condensed Consolidated Financial Statements. Settlement Agreement — On March 20, 2018, Verso 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, Verso 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”. Included in the Changed Circumstances Request, among other things, was 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 the 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 Verso a percentage, totaling up to $42 million , of the duties refunded to such parties over time. During the three months ended September 30, 2018 , $20 million in settlement payments were received by Verso and are included in Other (income) expense on the Unaudited Condensed Consolidated Statements of Operations. See Note 12 for additional information. |
SUBSEQUENT EVENT SUBSEQUENT EVE
SUBSEQUENT EVENT SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT In October 2018, we received the remaining $22 million of payments in connection with the Settlement Agreement. See Note 11 for additional information. |
SUMMARY OF BUSINESS AND BASIS_2
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 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. Verso early adopted this guidance in the first quarter of 2018 and recorded an adjustment from Accumulated other comprehensive income to Retained earnings (deficit) of $7 million associated with pension obligations during the three months ended March 31, 2018. Verso’s 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, Verso 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. Verso elected to apply the practical expedient, which allows for the reclassification of 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 the Unaudited Condensed Consolidated Statement of Operations for the three months and nine months ended September 30, 2017 , was as follows: Three Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 552 $ 554 $ 2 Selling, general and administrative expenses 24 24 — Other (income) expense — (2 ) (2 ) Nine Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 1,683 $ 1,690 $ 7 Selling, general and administrative expenses 81 81 — Other (income) expense — (7 ) (7 ) In connection with the adoption of ASU 2017-07, Verso 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 the Unaudited Condensed Consolidated Financial Statements. ASC Topic 606, Revenue from Contracts with Customers . On January 1, 2018, Verso 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 the new revenue standard 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 a customer upon receipt and acknowledgment of a customer purchase order. After evaluating open contracts at January 1, 2018, Verso determined that there was no cumulative effect on the 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 sales or operating results. See Note 3 for additional related revenue disclosures. Verso also adopted the following standards in 2018, neither of which had a material impact to the 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. Verso plans to adopt this guidance on January 1, 2019. The guidance requires the use of a modified retrospective approach. In July 2018, the 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. Verso plans to adopt the practical expedient and expects to recognize a liability and corresponding asset associated with in-scope leases. Verso’s implementation team is reviewing the lease population, but is 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) | 9 Months Ended |
Sep. 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 the Unaudited Condensed Consolidated Statement of Operations for the three months and nine months ended September 30, 2017 , was as follows: Three Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 552 $ 554 $ 2 Selling, general and administrative expenses 24 24 — Other (income) expense — (2 ) (2 ) Nine Months Ended September 30, 2017 (Dollars in millions) Previously reported As revised Effect of change higher/(lower) Cost of products sold (exclusive of depreciation and amortization) $ 1,683 $ 1,690 $ 7 Selling, general and administrative expenses 81 81 — Other (income) expense — (7 ) (7 ) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the revenues disaggregated by product included on the Unaudited Condensed Consolidated Statements of Operations: Three Months Nine Months Ended Ended (Dollars in millions) September 30, 2018 September 30, 2018 Printing paper $ 393 $ 1,112 Coated groundwood 51 158 Specialty paper 173 490 Pulp 39 95 Supercalendared paper 48 132 Total Net sales $ 704 $ 1,987 The following table presents the revenue disaggregated by sales channel included on the Unaudited Condensed Consolidated Statement of Operations: Three Months Nine Months Ended Ended (Dollars in millions) September 30, 2018 September 30, 2018 Direct sales $ 399 $ 1,115 Merchant sales 248 735 Broker sales 57 137 Total Net sales $ 704 $ 1,987 |
SUPPLEMENTAL FINANCIAL STATEM_2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories by Major Category | The following table summarizes inventories by major category: December 31, September 30, (Dollars in millions) 2017 2018 Raw materials $ 75 $ 91 Work-in-process 54 57 Finished goods 228 201 Replacement parts and other supplies 28 28 Inventories $ 385 $ 377 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table summarizes debt: Original December 31, September 30, (Dollars in millions) Maturity 2017 2018 ABL Facility 7/14/2021 $ 65 $ 110 Term Loan Facility 10/14/2021 146 — Unamortized (discount) and debt issuance costs, net (21 ) (2 ) Less: Current portion (60 ) — Total long-term debt $ 130 $ 108 |
Interest Expense Related to Debt and Cash Interests Payments on Debt | Amounts included in interest expense and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Interest expense (1) $ 7 $ 3 $ 23 $ 14 Cash interest paid 8 4 23 15 Debt issuance cost and discount amortization (2) 3 12 6 19 (1) Represents interest expense incurred on the Credit Facilities (as defined below), exclusive of amortization of debt issuance cost and discount and inclusive of amounts capitalized. See Note 4 for additional information on capitalized interest costs. (2) Amortization of debt issuance cost and original issue discount, including the accelerated amortization associated with the early extinguishment of the Term Loan Facility, are included in Interest expense on the Unaudited Condensed Consolidated Statements of Operations and in Amortization of debt issuance cost and discount on the Unaudited Condensed Consolidated Statements of Cash Flows. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 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 Nine Months Nine Months Ended Ended Ended Ended September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Net income (loss) available to common shareholders (in millions) $ 4 $ 86 $ (66 ) $ 85 Weighted average common shares outstanding - basic (in thousands) 34,456 34,562 34,421 34,511 Dilutive shares from stock awards (in thousands) 4 489 — 357 Weighted average common shares outstanding - diluted (in thousands) 34,460 35,051 34,421 34,868 Basic income (loss) per share $ 0.12 $ 2.49 $ (1.92 ) $ 2.46 Diluted income (loss) per share $ 0.12 $ 2.45 $ (1.92 ) $ 2.44 |
RETIREMENT AND OTHER POSTRETI_2
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic pension cost of the pension plans for the periods presented: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Service cost $ 4 $ 1 $ 12 $ 4 Interest cost 17 15 49 45 Expected return on plan assets (19 ) (18 ) (56 ) (54 ) Net periodic pension cost (income) $ 2 $ (2 ) $ 5 $ (5 ) |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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 (106 ) 7.42 Forfeited (3 ) 14.08 Non-vested at September 30, 2018 664 9.64 |
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 nine months ended September 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 (2 ) 18.22 Non-vested at September 30, 2018 638 22.26 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 9 Months Ended |
Sep. 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 the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Cumulative (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Incurred Severance and benefit costs $ — $ — $ — $ — $ 5 Write-off of purchase obligations and commitments — — 1 — 3 Other costs 2 — 3 2 8 Total restructuring costs $ 2 $ — $ 4 $ 2 $ 16 The following table details the charges incurred related to the Memphis office closure as included in Restructuring charges on the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended Cumulative (Dollars in millions) September 30, 2017 September 30, 2018 September 30, 2017 September 30, 2018 Incurred Severance and benefit costs $ — $ — $ 1 $ — $ 3 Write-off of purchase obligations 2 — 2 — 2 Other costs — — 1 — 1 Total restructuring costs $ 2 $ — $ 4 $ — $ 6 |
Schedule of Restructuring Reserve by Type of Cost | The following table details the changes in the restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions which are included in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets: Nine Months Nine Months Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (5 ) (1 ) Purchase obligations 1 — Payments on purchase obligations (1 ) — Other costs 3 2 Payments on other costs (3 ) (2 ) Ending balance of reserve $ 1 $ — The following table details the changes in the restructuring reserve liabilities related to the Memphis office headquarters closure which are included in Accrued liabilities on the Unaudited Condensed Consolidated Balance Sheets: Nine Months Nine Months Ended Ended (Dollars in millions) September 30, 2017 September 30, 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (4 ) — Purchase obligations 2 — Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 2 $ 2 |
BACKGROUND AND BASIS OF PRESENT
BACKGROUND AND BASIS OF PRESENTATION (Detail) | 9 Months Ended |
Sep. 30, 2018Segment | |
North America | |
Segment Reporting Information [Line Items] | |
Number of geographical locations in operation | 1 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 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) | $ 580 | $ 554 | $ 1,742 | $ 1,690 | |
Selling, general and administrative expenses | 25 | 24 | 78 | 81 | |
Other (income) expense | $ (21) | (2) | $ (28) | (7) | |
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) | 2 | 7 | |||
Selling, general and administrative expenses | 0 | 0 | |||
Other (income) expense | (2) | (7) | |||
Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of products sold (exclusive of depreciation and amortization) | 552 | 1,683 | |||
Selling, general and administrative expenses | 24 | 81 | |||
Other (income) expense | $ 0 | $ 0 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 704 | $ 1,987 |
Direct sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 399 | 1,115 |
Merchant sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 248 | 735 |
Broker sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 57 | 137 |
Printing paper | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 393 | 1,112 |
Coated groundwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 51 | 158 |
Specialty paper | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 173 | 490 |
Pulp | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 39 | 95 |
Supercalendared paper | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 48 | $ 132 |
SUPPLEMENTAL FINANCIAL STATEM_3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Restricted cash | $ 2,000,000 | $ 3,000,000 | $ 2,000,000 | $ 3,000,000 | ||||
Depreciation expense | 26,000,000 | 25,000,000 | 78,000,000 | 82,000,000 | ||||
Interest costs capitalized | 0 | $ 0 | 1,000,000 | 0 | ||||
Capital expenditures unpaid | 3,000,000 | $ 3,000,000 | ||||||
Maine Technology Institute | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Changes | 4,000,000 | |||||||
Grant received | $ 1,000,000 | |||||||
Grants Receivable | 3,000,000 | 3,000,000 | ||||||
Maine Technology Institute | Forecast | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Grant received | $ 2,000,000 | $ 1,000,000 | ||||||
Other Asset | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Asset retirement | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
SUPPLEMENTAL FINANCIAL STATEM_4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Inventories by Major Category (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 91 | $ 75 |
Work-in-process | 57 | 54 |
Finished goods | 201 | 228 |
Replacement parts and other supplies | 28 | 28 |
Inventories | $ 377 | $ 385 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Acquisition) (Details) - Verso Wickliffe - USD ($) $ in Millions | Sep. 05, 2018 | Aug. 16, 2018 |
Business Acquisition [Line Items] | ||
Consideration considered | $ 16 | |
Gain (loss) on disposition of business | $ 9 |
DEBT - Summary of Debt (Detail
DEBT - Summary of Debt (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Unamortized (discount) and debt issuance costs, net | $ (2) | $ (21) | |
Less: Current portion | 0 | (60) | |
Total long-term debt | 108 | 130 | |
Fair Value, Inputs, Level 2 | |||
Debt Instrument [Line Items] | |||
Fair value of outstanding debt | 110 | ||
ABL Facility | Revolving Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | 110 | 65 | |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 146 | |
Term Loan Facility | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Periodic payment | 9 | $ 13 | |
Repayments of debt | 21 | 7 | |
Repayments of debt, net | $ 116 | $ 20 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest expense(1) | $ 3 | $ 7 | $ 14 | $ 23 |
Cash interest paid | 4 | 8 | 15 | 23 |
Debt issuance cost and discount amortization | $ 12 | $ 3 | $ 19 | $ 6 |
DEBT - Credit Facilities (Detai
DEBT - Credit Facilities (Details) - USD ($) | Jul. 15, 2016 | Sep. 30, 2018 | Dec. 31, 2017 |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, remaining borrowing capacity | $ 201,000,000 | ||
ABL Facility | Revolving Credit Facilities | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 110,000,000 | $ 65,000,000 | |
Interest rate (percentage) | 4.10865% | ||
ABL Facility | Revolving Credit Facilities | ABL Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, borrowing capacity | $ 348,111,000 | ||
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 | $ 0 | $ 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 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) available to common shareholders | $ 86 | $ 4 | $ 85 | $ (66) |
Weighted average common shares outstanding - basic (shares) | 34,562 | 34,456 | 34,511 | 34,421 |
Dilutive shares from stock options (shares) | 489 | 4 | 357 | 0 |
Weighted average common shares outstanding - diluted (shares) | 35,051 | 34,460 | 34,868 | 34,421 |
Basic income (loss) per share (usd per share) | $ 2.49 | $ 0.12 | $ 2.46 | $ (1.92) |
Diluted income (loss) per share (usd per share) | $ 2.45 | $ 0.12 | $ 2.44 | $ (1.92) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - $ / shares shares in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Jul. 15, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of warrant or right, outstanding | 1.8 | ||
Exercise price of warrants (in dollars per share) | $ 27.86 | ||
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) | 0.3 |
RETIREMENT AND OTHER POSTRETI_3
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 4 | $ 4 | $ 12 |
Interest cost | 15 | 17 | 45 | 49 |
Expected return on plan assets | (18) | (19) | (54) | (56) |
Net periodic benefit cost | $ (2) | $ 2 | $ (5) | $ 5 |
RETIREMENT AND OTHER POSTRETI_4
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Additional Information (Detail) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution made by employer | $ 21 | $ 13 | $ 35 | $ 25 |
Cash contribution | $ 8 | $ 8 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||||
Sep. 30, 2018 | Feb. 22, 2018 | Dec. 31, 2017 | Sep. 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 | $ 15 | ||||
Number of shares called by warrants (in shares) | 1,800,000 | 1,800,000 | 1,800,000 | ||
Exercise price of warrants (in dollars per share) | $ 27.86 | ||||
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 | 1 year 10 months 24 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 | 9 Months Ended |
Sep. 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 | (106) |
Forfeited (in shares) | shares | (3) |
Non-vested, ending balance (in shares) | shares | 664 |
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 | 7.42 |
Forfeited (in dollar per share) | $ / shares | 14.08 |
Non-vested, ending balance (in dollar per share) | $ / shares | $ 9.64 |
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 | (2) |
Non-vested, ending balance (in shares) | shares | 638 |
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 | 18.22 |
Non-vested, ending balance (in dollar per share) | $ / shares | $ 22.26 |
RESTRUCTURING CHARGES - Expense
RESTRUCTURING CHARGES - Expenses related to office closure (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 4 | $ 2 | $ 8 | |
Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 2 | 0 | 4 | $ 6 |
Severance and benefit costs | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | 0 | 1 | 3 |
Write-off of purchase obligations | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 2 | 0 | 2 | 2 |
Other costs | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 | $ 0 | $ 1 | $ 1 |
RESTRUCTURING CHARGES - Restruc
RESTRUCTURING CHARGES - Restructuring Reserve (Details) - Facility Closing - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance of reserve | $ 2 | $ 3 |
Severance and benefit costs | 0 | 1 |
Purchase obligations | 0 | 2 |
Other costs | 0 | 1 |
Ending balance of reserve | 2 | 2 |
Severance and benefit payments | ||
Restructuring Reserve [Roll Forward] | ||
Payments | 0 | (4) |
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 | 9 Months Ended | 21 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 4 | $ 2 | $ 8 | |
Androscoggin- Wickliffe Capacity Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 2 | 2 | 4 | $ 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 | 0 | 0 | 1 | 3 |
Other costs | Androscoggin- Wickliffe Capacity Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 2 | $ 2 | $ 3 | $ 8 |
RESTRUCTURING CHARGES - Capacit
RESTRUCTURING CHARGES - Capacity Reductions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Facility Closing | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance of reserve | $ 2 | $ 3 |
Severance and benefit costs | 0 | 1 |
Purchase obligations | 0 | 2 |
Other costs | 0 | 1 |
Ending balance of reserve | 2 | 2 |
Facility Closing | Severance and benefit payments | ||
Restructuring Reserve [Roll Forward] | ||
Payments | 0 | (4) |
Facility Closing | Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Payments | 0 | (1) |
Androscoggin- Wickliffe Capacity Reduction | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance of reserve | 1 | 6 |
Other costs | 2 | 3 |
Ending balance of reserve | 0 | 1 |
Androscoggin- Wickliffe Capacity Reduction | Severance and benefit payments | ||
Restructuring Reserve [Roll Forward] | ||
Payments | (1) | (5) |
Androscoggin- Wickliffe Capacity Reduction | Purchase Obligation | ||
Restructuring Reserve [Roll Forward] | ||
Payments | 0 | (1) |
Purchase obligations | 0 | 1 |
Androscoggin- Wickliffe Capacity Reduction | Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Payments | $ (2) | $ (3) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | Jul. 05, 2018 | Sep. 30, 2018 |
Loss Contingencies [Line Items] | ||
Workforce, represented by union, percentage | 70.00% | |
Settlement Agreement | ||
Loss Contingencies [Line Items] | ||
Litigation settlement, amount awarded from other party | $ 20 | |
Settlement Agreement | Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought, value | $ 42 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Settlement Agreement - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Oct. 31, 2018 | Sep. 30, 2018 | |
Subsequent Event [Line Items] | ||
Litigation settlement, amount awarded from other party | $ 20 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Litigation settlement, amount awarded from other party | $ 22 |
Uncategorized Items - vrs-20180
Label | Element | Value |
Prepayment Premium On Term Loan Facility, Financing | vrs_PrepaymentPremiumOnTermLoanFacilityFinancing | $ 0 |