Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VRS | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 34,484,093 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 748,023,544 | ||
Entity Registrant Name | VERSO CORPORATION | ||
Entity Central Index Key | 1,421,182 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 26 | $ 7 |
Accounts receivable, net | 197 | 208 |
Inventories | 398 | 385 |
Prepaid expenses and other assets | 12 | 14 |
Total current assets | 633 | 614 |
Property, plant and equipment, net | 1,016 | 1,062 |
Intangibles and other assets, net | 50 | 56 |
Total assets | 1,699 | 1,732 |
Current liabilities: | ||
Accounts payable | 215 | 176 |
Accrued and other liabilities | 118 | 129 |
Current maturities of long-term debt | 0 | 60 |
Total current liabilities | 333 | 365 |
Long-term debt | 0 | 130 |
Pension benefit obligation | 428 | 457 |
Other long-term liabilities | 32 | 34 |
Total liabilities | 793 | 986 |
Commitments and contingencies (Note 17) | ||
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 34,484,093 outstanding on December 31, 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 December 31, 2018) | 0 | 0 |
Treasury stock -- at cost (9,137 shares on December 31, 2017 and 85,824 shares on December 31, 2018) | (2) | 0 |
Paid-in-capital (including Warrants of $10 million) | 686 | 676 |
Retained earnings (deficit) | 102 | (62) |
Accumulated other comprehensive income | 120 | 132 |
Total equity | 906 | 746 |
Total liabilities and equity | $ 1,699 | $ 1,732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 85,824 | 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 (in shares) | 210,000,000 | 210,000,000 |
Common stock, shares issued (in shares) | 34,569,917 | 34,173,571 |
Common stock, shares outstanding (in shares) | 34,484,093 | 34,164,434 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 0 | 291,039 |
Common stock, shares outstanding (in shares) | 0 | 291,039 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 1,224,000 | $ 2,682,000 | $ 2,461,000 | |
Costs and expenses: | ||||
Cost of products sold (exclusive of depreciation and amortization) | 1,126,000 | 2,321,000 | 2,250,000 | |
Depreciation and amortization | 93,000 | 111,000 | 115,000 | |
Selling, general and administrative expenses | 53,000 | 102,000 | 107,000 | |
Restructuring charges | 11,000 | 1,000 | 9,000 | |
Other operating (income) expense | 8,000 | (5,000) | 1,000 | |
Operating income (loss) | (67,000) | 152,000 | (21,000) | |
Interest expense | 17,000 | 33,000 | 38,000 | |
Other (income) expense | (32,000) | (52,000) | (21,000) | |
Income (loss) before reorganization items, net | (52,000) | 171,000 | (38,000) | |
Reorganization items, net | 0 | 0 | 0 | |
Income (loss) before income taxes | (52,000) | 171,000 | (38,000) | |
Income tax expense (benefit) | (20,000) | 0 | (8,000) | |
Net income (loss) | $ (32,000) | $ 171,000 | $ (30,000) | |
Income (loss) per common share: | ||||
Basic (usd per share) | $ (0.93) | $ 4.97 | $ (0.87) | |
Diluted (usd per share) | $ (0.93) | $ 4.88 | $ (0.87) | |
Weighted average common shares outstanding (in thousands): | ||||
Basic (in shares) | 34,391,000 | 34,514,000 | 34,432,000 | |
Diluted (in shares) | 34,391,000 | 35,096,000 | 34,432,000 | |
Predecessor | ||||
Net sales | $ 1,417,000 | |||
Costs and expenses: | ||||
Cost of products sold (exclusive of depreciation and amortization) | 1,250,000 | |||
Depreciation and amortization | 100,000 | |||
Selling, general and administrative expenses | 96,000 | |||
Restructuring charges | 151,000 | |||
Other operating (income) expense | (57,000) | |||
Operating income (loss) | (123,000) | |||
Interest expense | 39,000 | |||
Other (income) expense | (2,000) | |||
Income (loss) before reorganization items, net | (160,000) | |||
Reorganization items, net | (1,338,000) | |||
Income (loss) before income taxes | 1,178,000 | |||
Income tax expense (benefit) | 0 | |||
Net income (loss) | $ 1,178,000 | |||
Income (loss) per common share: | ||||
Basic (usd per share) | $ 14.39 | |||
Diluted (usd per share) | $ 14.39 | |||
Weighted average common shares outstanding (in thousands): | ||||
Basic (in shares) | 81,847,000 | |||
Diluted (in shares) | 81,847,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income (loss) | $ (32,000) | $ 171,000 | $ (30,000) | |
Defined benefit pension/other postretirement plans: | ||||
Pension/other postretirement liability adjustment, net | 127,000 | (20,000) | 5,000 | |
Amortization of net actuarial loss | 0 | 1,000 | 0 | |
Other comprehensive income (loss), net of tax | 127,000 | (19,000) | 5,000 | |
Comprehensive income (loss) | $ 95,000 | $ 152,000 | $ (25,000) | |
Predecessor | ||||
Net income (loss) | $ 1,178,000 | |||
Defined benefit pension/other postretirement plans: | ||||
Pension/other postretirement liability adjustment, net | 0 | |||
Amortization of net actuarial loss | 1,000 | |||
Other comprehensive income (loss), net of tax | 1,000 | |||
Comprehensive income (loss) | $ 1,179,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Common Class A | Common Class ACommon Stock | Common Class B | Common Class BCommon Stock |
Common stock, shares issued, beginning of period (in shares) (Predecessor) at Dec. 31, 2015 | 82,115,000 | |||||||||
Stockholders' equity beginning of period (Predecessor) at Dec. 31, 2015 | $ (1,183,000) | $ 1,000 | $ (1,000) | $ 321,000 | $ (1,402,000) | $ (102,000) | ||||
Treasury stock, shares, beginning of period (in shares) (Predecessor) at Dec. 31, 2015 | 241,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | Predecessor | 1,178,000 | 1,178,000 | ||||||||
Other comprehensive income (loss) | Predecessor | 1,000 | 1,000 | ||||||||
Treasury shares (in shares) | Predecessor | 52,000 | |||||||||
Treasury shares | Predecessor | 0 | $ 0 | ||||||||
Equity award expense | Predecessor | 4,000 | 4,000 | ||||||||
Cancellation of predecessor common stock (in shares) | Predecessor | (82,115,000) | (293,000) | ||||||||
Cancellation of Predecessor common stock | Predecessor | 0 | $ (1,000) | $ 1,000 | |||||||
Elimination of Predecessor additional paid-in-capital, accumulated deficit and accumulated other comprehensive loss | Predecessor | 0 | (325,000) | 224,000 | 101,000 | ||||||
Issuance of Successor common stock and stock purchase warrants (in shares) | Predecessor | 33,367,000 | 1,024,000 | ||||||||
Issuance of Successor common stock and stock purchase warrants | Predecessor | 675,000 | 675,000 | ||||||||
Common stock, shares issued, end of period (in shares) (Predecessor) at Jul. 14, 2016 | 0 | 33,367,000 | 1,024,000 | |||||||
Common stock, shares issued, end of period (in shares) at Jul. 14, 2016 | 33,367,000 | 1,024,000 | ||||||||
Stockholders' equity end of period (Predecessor) at Jul. 14, 2016 | 675,000 | $ 0 | 0 | 675,000 | 0 | 0 | $ 0 | $ 0 | ||
Stockholders' equity end of period at Jul. 14, 2016 | 675,000 | $ 0 | 675,000 | 0 | 0 | $ 0 | $ 0 | |||
Treasury stock, shares, end of period (in shares) (Predecessor) at Jul. 14, 2016 | 0 | |||||||||
Treasury stock, shares, end of period (in shares) at Jul. 14, 2016 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (32,000) | (32,000) | ||||||||
Other comprehensive income (loss) | 127,000 | 127,000 | ||||||||
Issuance of Successor common stock and stock purchase warrants (in shares) | 33,366,784 | 1,023,859 | ||||||||
Issuance of Successor common stock and stock purchase warrants | 0 | |||||||||
Common stock, shares issued, end of period (in shares) at Dec. 31, 2016 | 33,367,000 | 1,024,000 | ||||||||
Stockholders' equity end of period at Dec. 31, 2016 | 770,000 | $ 0 | 675,000 | (32,000) | 127,000 | $ 0 | $ 0 | |||
Treasury stock, shares, end of period (in shares) at Dec. 31, 2016 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (30,000) | (30,000) | ||||||||
Other comprehensive income (loss) | 5,000 | 5,000 | ||||||||
Treasury shares (in shares) | 9,000 | |||||||||
Treasury shares | 0 | $ 0 | ||||||||
Equity award expense | $ 1,000 | 1,000 | ||||||||
Common stock issued for restricted stock (in shares) | 0 | 73,000 | ||||||||
Issuance of Successor common stock and stock purchase warrants | $ 0 | |||||||||
Class B stock converted to Class A stock (in shares) | 0 | 733,000 | (733,000) | |||||||
Common stock, shares issued, end of period (in shares) at Dec. 31, 2017 | 34,173,571 | 34,173,000 | 291,039 | 291,000 | ||||||
Stockholders' equity end of period at Dec. 31, 2017 | $ 746,000 | $ 0 | 676,000 | (62,000) | 132,000 | $ 0 | $ 0 | |||
Treasury stock, shares, end of period (in shares) at Dec. 31, 2017 | 9,137 | 9,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | $ 171,000 | 171,000 | ||||||||
Other comprehensive income (loss) | (19,000) | (19,000) | ||||||||
Treasury shares (in shares) | 77,000 | |||||||||
Treasury shares | 0 | $ (2,000) | 2,000 | |||||||
Equity award expense | $ 8,000 | 8,000 | ||||||||
Common stock issued for restricted stock (in shares) | 0 | 106,000 | ||||||||
Issuance of Successor common stock and stock purchase warrants | $ 0 | |||||||||
Class B stock converted to Class A stock (in shares) | 0 | 291,000 | (291,000) | |||||||
Common stock, shares issued, end of period (in shares) at Dec. 31, 2018 | 34,569,917 | 34,570,000 | 0 | 0 | ||||||
Stockholders' equity end of period at Dec. 31, 2018 | $ 906,000 | $ (2,000) | $ 686,000 | $ 102,000 | $ 120,000 | $ 0 | $ 0 | |||
Treasury stock, shares, end of period (in shares) at Dec. 31, 2018 | 85,824 | 86,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | ||||
Net income (loss) | $ (32,000) | $ 171,000 | $ (30,000) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 93,000 | 111,000 | 115,000 | |
Noncash restructuring charges | 0 | 0 | 0 | |
Reorganization items and fresh start reporting adjustments, net | 0 | 0 | 0 | |
Noncash postretirement gain | (25,000) | 0 | (4,000) | |
Net periodic pension cost (income) | 0 | (7,000) | 6,000 | |
Pension plan contributions | (10,000) | (43,000) | (32,000) | |
Amortization of debt issuance cost and discount | 3,000 | 19,000 | 9,000 | |
Extinguishment of New Market Tax Credit obligation | 0 | 0 | (7,000) | |
Equity award expense | 0 | 8,000 | 1,000 | |
(Gain) loss on sale or disposal of assets | 2,000 | (8,000) | 3,000 | |
Deferred taxes | (20,000) | 0 | (8,000) | |
Debtor-in-possession financing costs | 0 | 0 | 0 | |
Prepayment premium on Term Loan Facility | 0 | 1,000 | 1,000 | |
Other, net | 0 | 0 | 0 | |
Changes in assets and liabilities: | ||||
Accounts receivable, net | 4,000 | 11,000 | (13,000) | |
Inventories | 44,000 | (12,000) | 60,000 | |
Prepaid expenses and other assets | 7,000 | 4,000 | 6,000 | |
Accounts payable | (40,000) | 40,000 | 67,000 | |
Accrued and other liabilities | (9,000) | (12,000) | (21,000) | |
Net cash provided by (used in) operating activities | 17,000 | 283,000 | 153,000 | |
Cash Flows From Investing Activities: | ||||
Proceeds from sale of assets | 1,000 | 17,000 | 0 | |
Capital expenditures | (42,000) | (73,000) | (40,000) | |
Grant proceeds from Maine Technology Institute | 4,000 | |||
Net cash provided by (used in) investing activities | (41,000) | (52,000) | (40,000) | |
Cash Flows From Financing Activities: | ||||
Borrowings on revolving credit facilities | 0 | 0 | 0 | |
Payments on revolving credit facilities | 0 | 0 | 0 | |
Borrowings on debtor-in-possession revolving credit facilities | 0 | 0 | 0 | |
Payments on debtor-in-possession revolving credit facilities | 0 | 0 | 0 | |
Proceeds from debtor-in-possession term loan | 0 | 0 | 0 | |
Repayment of debtor-in-possession term loan | 0 | 0 | 0 | |
Borrowings on ABL Facility | 43,000 | 442,000 | 186,000 | |
Payments on ABL Facility | 51,000 | 507,000 | 233,000 | |
Proceeds from Term Loan Facility | 0 | 0 | 0 | |
Payments on Term Loan Facility | (9,000) | (146,000) | (65,000) | |
Prepayment premium on Term Loan Facility | 0 | (1,000) | (1,000) | |
Original issue discount on Term Loan Facility | 0 | 0 | 0 | |
Debtor-in-possession financing costs | 0 | 0 | 0 | |
Debt issuance costs | (3,000) | 0 | 0 | |
Net cash provided by (used in) financing activities | (20,000) | (212,000) | (113,000) | |
Change in Cash and cash equivalents and restricted cash | (44,000) | 19,000 | 0 | |
Cash and cash equivalents and restricted cash at beginning of period | 53,000 | 9,000 | 9,000 | |
Cash and cash equivalents and restricted cash at end of period | 9,000 | $ 53,000 | 28,000 | 9,000 |
Supplementary cash flow disclosures: | ||||
Total interest paid | 12,000 | 16,000 | 30,000 | |
Total income taxes paid (received) | 0 | 0 | 0 | |
Noncash investing and financing activities: | ||||
Reduction in debt for debt modification | 0 | 0 | 0 | |
Increase in long-term debt from paid in kind (PIK) interest | 0 | 0 | 0 | |
Issuance of Common Stock | 0 | 0 | 0 | |
Cancellation of Debt | 0 | $ 0 | $ 0 | |
Predecessor | ||||
Cash Flows From Operating Activities: | ||||
Net income (loss) | 1,178,000 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 100,000 | |||
Noncash restructuring charges | 137,000 | |||
Reorganization items and fresh start reporting adjustments, net | (1,390,000) | |||
Noncash postretirement gain | 0 | |||
Net periodic pension cost (income) | 6,000 | |||
Pension plan contributions | (16,000) | |||
Amortization of debt issuance cost and discount | 1,000 | |||
Extinguishment of New Market Tax Credit obligation | 0 | |||
Equity award expense | 4,000 | |||
(Gain) loss on sale or disposal of assets | (57,000) | |||
Deferred taxes | 0 | |||
Debtor-in-possession financing costs | 22,000 | |||
Prepayment premium on Term Loan Facility | 0 | |||
Other, net | 6,000 | |||
Changes in assets and liabilities: | ||||
Accounts receivable, net | 26,000 | |||
Inventories | (28,000) | |||
Prepaid expenses and other assets | 10,000 | |||
Accounts payable | 68,000 | |||
Accrued and other liabilities | (42,000) | |||
Net cash provided by (used in) operating activities | 25,000 | |||
Cash Flows From Investing Activities: | ||||
Proceeds from sale of assets | 63,000 | |||
Capital expenditures | (31,000) | |||
Grant proceeds from Maine Technology Institute | 0 | |||
Net cash provided by (used in) investing activities | 32,000 | |||
Cash Flows From Financing Activities: | ||||
Borrowings on revolving credit facilities | 147,000 | |||
Payments on revolving credit facilities | (446,000) | |||
Borrowings on debtor-in-possession revolving credit facilities | 275,000 | |||
Payments on debtor-in-possession revolving credit facilities | (275,000) | |||
Proceeds from debtor-in-possession term loan | 175,000 | |||
Repayment of debtor-in-possession term loan | (175,000) | |||
Borrowings on ABL Facility | 120,000 | |||
Payments on ABL Facility | 0 | |||
Proceeds from Term Loan Facility | 220,000 | |||
Payments on Term Loan Facility | 0 | |||
Prepayment premium on Term Loan Facility | 0 | |||
Original issue discount on Term Loan Facility | (22,000) | |||
Debtor-in-possession financing costs | (22,000) | |||
Debt issuance costs | (8,000) | |||
Net cash provided by (used in) financing activities | (11,000) | |||
Change in Cash and cash equivalents and restricted cash | 46,000 | |||
Cash and cash equivalents and restricted cash at beginning of period | $ 53,000 | 7,000 | ||
Cash and cash equivalents and restricted cash at end of period | 53,000 | |||
Supplementary cash flow disclosures: | ||||
Total interest paid | 12,000 | |||
Total income taxes paid (received) | 0 | |||
Noncash investing and financing activities: | ||||
Reduction in debt for debt modification | (1,000) | |||
Increase in long-term debt from paid in kind (PIK) interest | 9,000 | |||
Issuance of Common Stock | 675,000 | |||
Cancellation of Debt | $ (2,324,000) |
SUMMARY OF BUSINESS AND SIGNIFI
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES In this report, the term “Verso” refers to Verso Corporation, which is the ultimate parent entity and the issuer of Class A common stock listed on the New York Stock Exchange. In December 2016, Verso Corporation completed a consolidation and reorganization of its subsidiaries, or the “Internal Reorganization.” After the Internal Reorganization, Verso is the sole member of Verso Holding LLC, which is the sole member of Verso Paper Holding LLC. Verso does not have any assets, liabilities, operations or cash flows, other than investment in subsidiaries. As used in this report, the term “Verso Holding” refers to Verso Holding LLC, and the term “Verso Paper” refers to Verso Paper Holding LLC. Prior to the Internal Reorganization, Verso was the sole member of Verso Paper Finance Holdings One LLC, which was the sole member of Verso Paper Finance Holdings LLC, which was the sole member of Verso Paper Holdings LLC. As used in this report, the term “Verso Finance” refers to Verso Paper Finance Holdings LLC and the term “VPH” refers to Verso Paper Holdings LLC. The term “NewPage” refers to NewPage Holdings Inc., which was an indirect, wholly owned subsidiary of Verso prior to the Internal Reorganization; the term “NewPage Corp” refers to NewPage Corporation, which was an indirect, wholly owned subsidiary of NewPage prior to the Internal Reorganization. Each of Verso Finance, VPH, NewPage and NewPage Corp were either merged into other subsidiaries of Verso, converted into limited liability corporations, and/or renamed in the Internal Reorganization and do not exist on and after the Internal Reorganization. The term for any such entity includes its direct and indirect subsidiaries when referring to the entity’s consolidated financial condition or results. Unless otherwise noted, references to “the Company,” “we,” “us,” and “our” refer to Verso. 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 (see Note 18 ). Verso’s core business platform is as a producer of graphic papers, specialty papers, packaging papers and pulp. 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 — On January 26, 2016, the “Petition Date,” Verso and substantially all of its direct and indirect subsidiaries, or the “Debtors,” filed voluntary petitions for relief, the “Chapter 11 Filings,” under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, or the “Bankruptcy Code,” in the United States Bankruptcy Court for the District of Delaware, or the “Bankruptcy Court.” On June 23, 2016, the Bankruptcy Court entered an order, the “Confirmation Order,” confirming Debtors’ First Modified Third Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code dated as of June 20, 2016, or the “Plan.” On July 15, 2016, or the “Effective Date,” the Plan became effective pursuant to its terms and the Debtors emerged from their Chapter 11 cases, or the “Chapter 11 Cases” (see Note 20 ). In accordance with the provisions of Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 852, Reorganizations, and in conformity with ASC Topic 805 , Business Combinations, the Company adopted fresh start accounting upon emergence from their Chapter 11 Cases and became a new entity for financial reporting purposes as of July 15, 2016. References to “Successor” or “Successor Company” relate to Verso on and subsequent to July 15, 2016. References to “Predecessor” or “Predecessor Company” refer to Verso prior to July 15, 2016. For accounting purposes, all emergence related transactions of the Predecessor including the impact of the issuance of the Successor common stock and warrants and entering into the Credit Facilities (as defined in Note 8 ) were recorded as of July 14, 2016. Accordingly, the Consolidated Financial Statements for the Successor are not comparable to the Consolidated Financial Statements for the Predecessor. Also in connection with the adoption of fresh start accounting, Verso elected to make certain material accounting policy changes as described below. This report contains the Consolidated Financial Statements as of December 31, 2018 (Successor) and 2017 (Successor), for the year ended December 31, 2018 (Successor), for the year ended December 31, 2017 (Successor), for the period from January 1, 2016 to July 14, 2016 (Predecessor) and for the period from July 15, 2016 to December 31, 2016 (Successor). Variable interest entities for which Verso was the primary beneficiary are also consolidated (see Note 16 ). Intercompany balances and transactions are eliminated in consolidation. Going Concern — The 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. Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Revenue Recognition — Verso generates revenue through product sales, and shipping terms generally indicate when the performance obligation has been fulfilled and control of products has been passed to the customer. Verso’s revenue transactions consist of a single performance obligation to transfer promised goods. Verso has pricing agreements with certain customers. These agreements usually define the mechanism for determining the sales price but do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions Verso receives from the customer. Spot market sales are made through purchase orders or other written instructions. Revenue is recognized when a performance obligation has been fulfilled, which is typically when shipped from the mills or warehouses. For sales with shipping terms that transfer control at the destination point, revenue is recognized when the customer receives the goods and the performance obligation is complete. For sales with shipping terms that transfer control at the shipping point with Verso bearing responsibility for freight costs to the destination, Verso determined that a single performance obligation is fulfilled and revenue is recognized when the goods ship. Revenue is measured as the consideration expected to be received in exchange for transferring product. Verso reduces the revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. 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 and terms of the arrangements. Revenues are adjusted at the earlier date of when the most likely amount of consideration expected to be received changes or as 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. Sales taxes collected from customers are excluded from revenues. Incidental costs that are immaterial within the context of the contract are expensed when incurred. The following table presents the revenue disaggregated by product included on the Consolidated Statement of Operations: Year Ended December 31, (Dollars in millions) 2018 Graphic papers $ 1,655 Specialty papers 821 Packaging papers 67 Pulp 139 Total Net sales $ 2,682 The following table presents the revenue disaggregated by sales channel included on the Consolidated Statement of Operations: Year Ended December 31, (Dollars in millions) 2018 Direct sales $ 1,510 Merchant sales 983 Broker sales 189 Total Net sales $ 2,682 Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the Consolidated Statements of Operations. When the sales price includes charges to customers for shipping and handling, such amounts are included in Net sales. Planned Major Maintenance Costs — Prior to the Effective Date, costs for planned major maintenance shutdowns were deferred and then expensed ratably over the period until the next major planned shutdown. Upon the Effective Date, costs for all repair and maintenance activities are expensed in the month that the related activity is performed, or goods received under the direct expense method of accounting. Successor Cost of products sold/ Selling, general and administrative expenses — Certain centralized costs attributable to manufacturing overhead, including enterprise-wide human resources management, procurement and information systems support, presented in Selling, general and administrative expenses of the Predecessor are presented in Cost of products sold of the Successor. The amount presented in Cost of products sold, related to these costs, in the Consolidated Statements of Operations for the period from July 15, 2016 to December 31, 2016 is $11 million , and for the years ended December 31, 2017 and December 31, 2018 is $26 million and $22 million , respectively. Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the timing of expected cash flows are reliably determinable. Equity Compensation — Verso accounts for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation . ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. Verso uses the straight-line attribution method to recognize share-based compensation over the service period of the award. Restricted stock units vest over 1 to 4 years. Verso has elected to recognize forfeitures as an adjustment to compensation expense in the same period as they occur. Income Taxes — Verso accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes . Under this method, Verso recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address its tax risk profile. Verso analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. Earnings Per Share — Verso computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short maturity of these instruments. Verso determines the fair value of debt based on market information and a review of prices and terms available for similar obligations. See Note 4 , Note 8 , Note 11 and Note 20 for additional information regarding fair value. Verso uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities and disclosures. Fair value is generally defined as the exit price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties, other than in a forced or liquidation sale. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: ▪ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. ▪ Level 3: Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date. Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. Accounts Receivable — Verso maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. Verso manages credit risk related to trade accounts receivable by continually monitoring the creditworthiness of customers to whom credit is granted in the normal course of business. Trade accounts receivable balances were $197 million and $202 million at December 31, 2018 and December 31, 2017 , respectively. Two customers accounted for 28% of accounts receivable as of December 31, 2018 and two customers accounted for 29% of accounts receivable as of December 31, 2017 . Verso establishes allowance for doubtful accounts based upon factors surrounding the credit risks of specific customers, historical trends and other information. Based on this assessment, an allowance is maintained that represents what is believed to be ultimately uncollectible from such customers. The allowance for doubtful accounts was $2 million at December 31, 2018 and December 31, 2017 . Verso had accounts receivable factoring arrangements with a third-party financial institution in 2018. These arrangements do not contain recourse provisions which would obligate Verso in the event of its customers’ failure to pay. Receivables are considered sold when they are transferred beyond the reach of Verso and its creditors, the purchaser has the right to pledge or exchange the receivables and Verso has surrendered control over the transferred receivables. For the year ended December 31, 2018, Verso incurred factoring fees of less than $1 million in connection with $45 million of accounts receivables sold without recourse. The factoring fees were more than offset by a reduction in interest expense resulting from the improved cash flows. These fees were included in Other operating (income) expense on the Consolidated Statement of Operations. Inventories and Replacement Parts and Other Supplies — Inventory values include all costs directly associated with manufacturing products such as materials, labor and manufacturing overhead. These values are presented at the lower of cost or net realizable value. Costs of raw materials, work-in-process and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are valued using the average cost method and are reflected in Inventories on the Consolidated Balance Sheet (see Note 3 ). Property, Plant and Equipment — Property, plant and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets (see Note 5 ). Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: (Years) Predecessor Successor Buildings and building improvements 20 - 40 20 - 40 Land improvements 20 10 - 20 Machinery and equipment 10 - 20 3 - 20 Furniture and office equipment 3 - 10 10 Computer hardware and software 3 - 6 3 - 7 Leasehold improvements Over the shorter of the lease term or the useful life of the improvements Over the shorter of the lease term or the useful life of the improvements Intangible Assets — Verso accounts for intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other . Intangible assets of the Predecessor consisted of indefinite-lived trademarks, customer-related intangible assets which were amortized over their estimated useful lives of approximately 20 to 25 years and patents which were amortized over their legal lives of 10 years . As part of fresh start accounting, Verso wrote-off the existing intangible assets and accumulated amortization of the Predecessor and recorded an adjustment of $30 million to reflect the fair value of the Intangibles and other assets, net, of the Successor (see Note 20 ). The intangible assets of the Successor are comprised of customer relationships with a useful life of 10 years and trademarks with a five -year useful life. Both are amortized on a straight-line basis. The fair value of trademarks was determined based on the Relief from Royalty method. Verso assumed a royalty rate of 0.25% and a five -year economic life for trademarks. The rate was based on analysis of market information. Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. Deferred Issuance Costs — Debt issuance costs are recorded in Long-term debt as a reduction of the carrying amount of outstanding debt. Revolving credit facility debt issuance costs in excess of outstanding long-term debt are recorded in Intangibles and other assets, net. Debt issuance costs for term debt are amortized to interest expense using the effective interest method. Debt issuance costs for revolving debt are amortized to interest expense ratably over the life of the facility. Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations , a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time and the asset is depreciated over its useful life. Asset retirement obligations under this standard relate primarily to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. As of December 31, 2018 and December 31, 2017 , $2 million of restricted cash was included in Intangibles and other assets, net in the Consolidated Balance Sheets 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. The following table presents activity related to asset retirement obligations for the periods presented. Long-term obligations are included in Other long-term liabilities and current portions are included in Accrued and other liabilities in the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Asset retirement obligations, beginning balance $ 14 $ 15 Settlement of existing liabilities — (1 ) Accretion expense 1 1 Adjustments to existing liabilities — (1 ) Asset retirement obligations, ending balance 15 14 Less: Current portion (1 ) (1 ) Non-current portion of asset retirement obligations, ending balance $ 14 $ 13 In addition to the above obligations, Verso may be required to remove certain materials from facilities or to remediate them in accordance with current regulations that govern the handling of certain hazardous or potentially hazardous materials. At this time, any such obligations have an indeterminate settlement date, and Verso believes that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, no liability for such remediation was recorded. Retirement benefits — Retirement plans cover substantially all of Verso’s employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Unrecognized prior service costs and actuarial gains and losses are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. The employer contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. Accumulated Other Comprehensive Income (Loss) — The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for periods presented: (Dollars in millions) Accumulated other comprehensive loss as of December 31, 2015 - Predecessor $ (102 ) Amounts reclassified from Accumulated other comprehensive loss to Cost of products sold 1 Elimination of Predecessor accumulated other comprehensive loss 101 Balance - July 14, 2016 - Predecessor $ — Balance - July 15, 2016 - Successor $ — Pension and other postretirement liability adjustment, net 127 Net increase in other comprehensive income 127 Accumulated other comprehensive income as of December 31, 2016 - Successor 127 Pension and other postretirement liability adjustment, net 5 Net increase in other comprehensive income 5 Accumulated other comprehensive income as of December 31, 2017 - Successor 132 Pension and other postretirement liability adjustment, net (19 ) Reclassification of stranded tax effects (ASU 2018-02) 7 Net decrease in other comprehensive income (12 ) Accumulated other comprehensive income as of December 31, 2018 - Successor $ 120 Troubled Debt Restructuring — The Predecessor accounted for a portion of its 11.75% Senior Secured Notes issued in 2012 and all of its 13% Second Priority Secured Notes and 16% Senior Subordinated Notes, both issued in 2015, in accordance with ASC Topic 470, Debt, by recording the value exchanged and amortizing the amount in excess of par over the life of the notes. In accordance with ASC Topic 470, debt is considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the lender makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include principal adjustments, interest rate adjustments, additional equity transfers, interest only payments for an extended period of time or protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place (see Note 20 ). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES (Dollars in millions) December 31, 2017 December 31, 2018 Raw materials $ 75 $ 88 Work-in-process 54 56 Finished goods 228 225 Replacement parts and other supplies 28 29 Inventories $ 385 $ 398 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2018 ASC Topic 220, Income Statement - Reporting Comprehensive Income. In February 2018, the 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 U.S. Tax Cuts and Jobs Act of 2017, or the “Tax 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 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 following tables provide the effect of the retrospective presentation change related to the net periodic pension and other postretirement benefits plans on the Consolidated Statement of Operations for the periods presented: Predecessor January 1, 2016 Through July 14, 2016 (Dollars in millions) Previously Reported As Revised Effect of Change Higher/(Lower) Cost of products sold (exclusive of depreciation and amortization) $ 1,249 $ 1,250 $ 1 Selling, general and administrative expenses 95 96 1 Other (income) expense — (2 ) (2 ) Successor July 15, 2016 Through December 31, 2016 (Dollars in millions) Previously Reported As Revised Effect of Change Higher/(Lower) Cost of products sold (exclusive of depreciation and amortization) $ 1,098 $ 1,126 $ 28 Selling, general and administrative expenses 49 53 4 Other (income) expense — (32 ) (32 ) Successor Year Ended December 31, 2017 (Dollars in millions) Previously Reported As Revised Effect of Change Higher/(Lower) Cost of products sold (exclusive of depreciation and amortization) $ 2,237 $ 2,250 $ 13 Selling, general and administrative expenses 106 107 1 Other (income) expense (7 ) (21 ) (14 ) 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 Consolidated Financial Statements. ASC Topic 606, Revenue from Contracts with Customers . On January 1, 2018, Verso adopted 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 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 the new revenue standard did not have a material impact on sales or operating results. See Note 1 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, which are effective for interim and annual periods beginning after December 15, 2018. Verso adopted this guidance on January 1, 2019. Verso has elected the package of practical expedients under the transition provisions of the new standard including not reassessing whether expired or existing contracts contain leases, lease classification and not revaluing initial direct costs for existing leases. Verso has elected to apply the modified retrospective adoption method, which allows entities to continue to apply the legacy guidance under ASC 840, including its disclosure requirements, in the comparative periods presented in the year of adoption. Verso established a project team to evaluate and implement the new standard and is finalizing its policies and procedures related to accounting for lease assets and liabilities and related income and expense including implementation of a new system to track such leases. These policies and procedures modify contract review controls to consider the new criteria for determining whether a contract is or contains a lease, specifically to clarify the definition of a lease and align with the control concept. Verso continues to evaluate the changes necessary for required disclosures and related controls regarding leases. The most significant impact of the new standard for Verso is recording the right of use assets and related liabilities on the balance sheet for its operating leases. The new standard requires fixed payments, probable amounts the lessee will owe under a residual value guarantee and certain other payments to be included in the valuation of these right of use asset and related liabilities. Variable payments are excluded from the calculation unless they are based on an index or rate. There was no change to the Consolidated Statements of Operations or Consolidated Statements of Cash Flows associated with the adoption of this new standard, and the transition adjustment to recognize the right of use assets and related liabilities associated with Verso’s leases at January 1, 2019, is expected to range from $15 million to $25 million . 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. |
DISPOSITIONS
DISPOSITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
DISPOSITIONS | 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) expense on the Consolidated Statements of Operations for the year ended December 31, 2018. Sale of hydroelectric generation facilities — On January 6, 2016, Verso Maine Power Holdings LLC, or “VMPH,” and Verso Androscoggin Power LLC, or “VAP,” two indirect, wholly owned subsidiaries of Verso, entered into a purchase agreement with Eagle Creek Renewable Energy, LLC, or “Eagle Creek,” pursuant to which VMPH sold all the outstanding limited liability company interests of VAP to Eagle Creek for a purchase price of $62 million in cash. VAP owned four hydroelectric generation facilities associated with Verso’s Androscoggin pulp and paper mill located in Jay, Maine. The purchase agreement contains customary representations and warranties by, and customary covenants among, the parties. The parties contemporaneously entered into the purchase agreement and consummated the transaction. For the period from January 1 to July 14, 2016 (Predecessor), Verso recognized a gain on sale of fixed assets of $55 million which is included in Other operating (income) expense in the Consolidated Statement of Operations. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Land and land improvements $ 51 $ 47 Building and leasehold improvements 153 154 Machinery, equipment and other 1,028 1,085 Construction-in-progress 26 29 Property, plant and equipment, gross 1,258 1,315 Accumulated depreciation (196 ) (299 ) Property, plant and equipment, net $ 1,062 $ 1,016 Interest costs capitalized and depreciation expense for the periods presented are as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Interest costs capitalized $ 1 $ 1 $ 1 $ 1 Depreciation expense 97 90 109 105 Capital expenditures unpaid as of July 14, 2016 (Predecessor), December 31, 2016 (Successor), December 31, 2017 (Successor) and December 31, 2018 (Successor) were $8 million , $6 million , $8 million and $7 million , respectively. As of December 31, 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 the entire $4 million of grant funds in 2018. On April 5, 2016, Verso announced that it would permanently close its paper mill located in Wickliffe, Kentucky, which had been idle since November 2015. The decision to close the mill resulted in restructuring charges of $160 million for the year ended December 31, 2016. The associated Property, plant and equipment were written down to salvage value resulting in a non-cash restructuring charge of $127 million during the first quarter of 2016. The Wickliffe mill was later sold in 2018 (see Note 4). In the third quarter of 2016, management concluded that actual operating results were lower than those projected in the plan of reorganization. Such circumstance constituted a triggering event requiring management to conduct a Step 1 impairment test. Based on the results of the Step 1 impairment test, Verso concluded that the undiscounted estimated future cash flows associated with the remaining long-lived assets exceeded their carrying value and no impairment was recorded. In the fourth quarter of 2016, based on Verso’s plans to temporarily idle the No. 3 paper machine at the Androscoggin Mill, Verso determined a reduction in the useful life of the machine was necessary and accordingly recognized $43 million of accelerated depreciation during the fourth quarter of 2016 and an additional $6 million of accelerated depreciation during the first quarter of 2017, which is included in Depreciation and amortization in the Consolidated Statements of Operations. As a result of the acceleration of depreciation, no impairment charge was required to be recorded with the temporary idling of the No. 3 paper machine and associated equipment at the Androscoggin Mill (see Note 14). |
INTANGIBLES AND OTHER ASSETS
INTANGIBLES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES AND OTHER ASSETS | INTANGIBLES AND OTHER ASSETS Intangibles and other assets consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Intangible assets: Customer relationships, net of accumulated amortization of $4 million on December 31, 2017 and $6 million on December 31, 2018 $ 22 $ 20 Trademarks, net of accumulated amortization of $4 million on December 31, 2017 and $8 million on December 31, 2018 12 8 Other assets: Restricted cash 2 2 ABL Facility unamortized debt issuance cost, net — 2 Other 20 18 Intangibles and other assets, net $ 56 $ 50 Amortization expense related to intangible assets for the periods presented is as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Customer Relationships $ 2 $ 1 $ 3 $ 2 Trademarks — 1 3 4 The estimated future amortization expense for intangible assets over the next five years is as follows: (Dollars in millions) 2019 $ 6 2020 6 2021 4 2022 3 2023 3 When events or circumstances indicate that the carrying amount of an asset may not be recoverable, Verso assesses the potential impairment of intangibles and other long-lived assets by comparing the expected undiscounted future cash flows to the carrying value of those assets. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES A summary of accrued liabilities is as follows: (Dollars in millions) December 31, 2017 December 31, 2018 Payroll and employee benefit costs $ 69 $ 74 Accrued sales rebates 24 16 Accrued energy 10 10 Accrued taxes - other than income 5 5 Restructuring costs 3 — Accrued professional and legal fees 1 1 Accrued interest 2 — Accrued freight 7 5 Other 8 7 Accrued liabilities $ 129 $ 118 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table summarizes debt: Original (Dollars in millions) Maturity December 31, 2017 December 31, 2018 ABL Facility 7/14/2021 $ 65 $ — Term Loan Facility 10/14/2021 146 — Unamortized (discount) and debt issuance costs, net (21 ) — Less: Current portion (60 ) — Total long-term debt $ 130 $ — Verso determines the fair value of long-term debt based on market information and a review of prices and terms available for similar obligations. Verso’s debt has been classified as Level 2 within the fair value hierarchy (see Note 1 ). The fair value of Verso’s total debt outstanding was $212 million as of December 31, 2017 and zero as of December 31, 2018 . During the year ended December 31, 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 year ended December 31, 2018 of $21 million . Verso also elected to make additional voluntary principal prepayments on the Term Loan Facility totaling $116 million during the year ended December 31, 2018 . The mandatory and voluntary principal prepayments resulted in the full pay off of the Term Loan Facility on September 10, 2018. During the year ended December 31, 2017 , scheduled principal payments totaling $18 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 year ended December 31, 2017 of $7 million . Verso also elected to make additional voluntary principal prepayments totaling $40 million during the year ended December 31, 2017 from available liquidity, including amounts borrowed under the ABL Facility. Amounts of interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented, are as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Interest expense (1) $ 39 $ 15 $ 30 $ 15 Cash interest paid 12 12 30 16 Debt issuance cost and discount amortization (2) 1 3 9 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 5 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 Consolidated Statements of Operations and in Amortization of debt issuance cost and discount on the Consolidated Statements of Cash Flows. Credit Facilities On the Effective Date, pursuant to the terms of the Plan, 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), or the “Term Loan Facility,” and collectively termed the “Credit Facilities.” After the Internal Reorganization, Verso Paper became the borrower under the Credit Facilities. VPH borrowed $340 million under the Credit Facilities on the Effective Date, with available loan proceeds of $318 million , consisting of (i) the borrowing of $120 million under the ABL Facility and (ii) the net borrowing of $198 million ( $220 million par value less $22 million of original issue discount) under the Term Loan Facility. The proceeds of the borrowings on the Effective Date under the Credit Facilities were used (i) to repay outstanding indebtedness under the debtor-in-possession financing credit agreements, (ii) to pay outstanding allowed administrative expenses and allowed claims in accordance with the Plan and (iii) to pay fees, costs and expenses related to and contemplated by the Credit Facilities and emergence by Verso and its subsidiaries from bankruptcy. The ABL Facility was scheduled to mature on July 14, 2021 . The outstanding borrowings under the ABL Facility bore interest at a per annum rate equal to, at the option of Verso Paper, either (i) a customary London interbank offered rate, or “LIBOR,” plus an applicable margin ranging from 1.25% to 2.00% or (ii) a customary base rate plus an applicable margin ranging from 0.25% to 1.00% , determined based upon the average excess availability under the ABL Facility. As of December 31, 2017, the weighted-average interest rate on outstanding borrowings was 3.13% . Verso Paper is also required to pay a commitment fee for the unused portion of the ABL Facility, which ranges from 0.25% to 0.375% per annum, based upon the average revolver usage under the ABL Facility. Verso Paper has the right to prepay loans under the ABL Facility at any time without a prepayment penalty, other than customary “breakage” costs with respect to eurocurrency loans. As of December 31, 2018 , the outstanding balance of the ABL Facility was zero , with $ 34 million issued in letters of credit, and $283 million available for future borrowings. On February 6, 2019, Verso Paper and Verso Holding entered into an amendment to the ABL Facility. See Note 21 for additional information. The Term Loan Facility was scheduled to mature on October 14, 2021 , with quarterly installments due of at least $4 million (subject to increase depending on excess cash flow) for each quarter ended in 2016 through maturity. The mandatory and voluntary principal prepayments resulted in the full pay off of the Term Loan Facility on September 10, 2018. The outstanding borrowings under the Term Loan Facility bore interest at a rate equal to, at the option of Verso Paper, either (i) a LIBOR (subject to a floor of 1% ) plus 11% or (ii) a customary base rate plus 10% . With respect to LIBOR denominated loans under the Credit Facilities, Verso Paper was able to elect an interest period of one, two, three or six months or such other period subject to the terms of the Credit Facilities. As of December 31, 2017, the interest rate on the Term Loan Facility was 12.47% . The term loans provided under the Term Loan Facility were subject to quarterly principal amortization payments in an amount equal to the greater of (a) 2.00% of the initial principal amount of the term loans or (b) the excess cash flow in respect of such quarter as further described under the Term Loan Facility; however, if the liquidity, as defined in the Term Loan Facility, of Verso Paper was less than $75 million at any time during the 90-day period following the due date of such quarterly amortization payment or excess cash flow payment date, then the portion of such amortization amount that resulted in such liquidity being less than $75 million was not payable by Verso Paper, as further described in the Term Loan Facility. Any voluntary prepayment by Verso Paper of the term loans under the Term Loan Facility were subject to customary “breakage” costs with respect to eurocurrency loans and a 2% prepayment premium until July 14, 2018, and a 1% prepayment premium after July 15, 2018, but before July 14, 2020, and thereafter no prepayment premium. The Company incurred $8 million of debt issuance costs associated with the Term Loan Facility and recorded this amount as a direct deduction of the debt liability, which was amortized over the life of the Term Loan Facility. All obligations under the ABL Facility were unconditionally guaranteed by Verso Holding, and certain of the subsidiaries of Verso Paper and are secured by liens on certain assets of Verso Holding and liens on substantially all of the assets of Verso Paper and the other guarantor subsidiaries. The security interest with respect to the ABL Facility consisted of a first-priority lien on the current assets of Verso Paper and the guarantor subsidiaries, including accounts receivables, inventory, deposit accounts, securities accounts and commodities accounts, and a second-priority lien on all other collateral. The ABL Facility contained financial covenants requiring the Company, among other things, to maintain a minimum fixed charge coverage ratio in certain circumstances and a maximum total net leverage ratio. The ABL Facility also contained restrictions, among other things and subject to certain exceptions, on the Company’s ability to incur debt or liens, pay dividends, repurchase equity interest, prepay indebtedness, sell or dispose of assets and make investments in or merge with another company. DIP Financing In connection with the Chapter 11 Filings, Verso Finance, VPH and certain of its subsidiaries entered into an asset-based credit facility in an aggregate principal amount of up to $100 million , or the “Verso DIP Facility,” and NewPage Corp and certain of its subsidiaries entered into an asset-based credit facility in an aggregate principal amount of up to $325 million , or the “NewPage DIP ABL Facility,” and a term loan credit facility in an aggregate principal amount of $350 million , or the “NewPage DIP Term Loan Facility,” together with the NewPage DIP ABL Facility, the “NewPage DIP Facilities,” and NewPage DIP Facilities together with the Verso DIP Facility, the “DIP Facilities.” The NewPage DIP Term Loan Facility consisted of $175 million of new money term loans and $175 million of loans that aggregated and replaced existing loans outstanding on the Petition Date (i.e., such loans were deemed to become loans under the NewPage DIP Term Loan Facility), or “NewPage DIP Roll Up Loans.” On January 28, 2016, up to $550 million in loans under the DIP Facilities became available for borrowing following the entry of an order by the Bankruptcy Court approving the DIP Facilities on an interim basis on January 27, 2016. The Bankruptcy Court entered orders approving the DIP Facilities on a final basis on March 2, 2016. Borrowings under the Verso DIP Facility bore interest at a rate equal to an applicable margin plus, at VPH’s and NewPage Corp’s option, either (a) a base rate determined by reference to the highest of (1) the U.S. federal funds rate plus 0.50% , (2) the prime rate of the administrative agent and (3) the adjusted LIBOR (as defined below) for a one-month interest period plus 1.00% , or (b) a eurocurrency rate, or “LIBOR” determined by reference to the costs of funds for eurocurrency deposits in dollars in the London interbank market for the interest period relevant to such borrowing, adjusted for certain additional costs. The applicable margin for advances under both the Verso DIP Facility and the NewPage DIP ABL was 1.50% for base rate advances and 2.50% for LIBOR advances. The applicable margin for advances under the NewPage DIP Term Loan Facility was 8.50% for base rate advances and 9.50% for LIBOR advances. Interest that accrued on any “rolled-up” term loans under the NewPage DIP Term Loan Facility was capitalized, compounded and added to the unpaid principal amount of such “rolled-up” loans on the applicable interest payment date. VPH and NewPage Corp paid commitment fees for the unused amount of commitments at an annual rate equal to 0.75% and 0.375% , respectively. The Company incurred $22 million of debt issuance costs associated with the DIP Facility which was recorded as interest expense on the Consolidated Statement of Operations during the period from January 1 to July 14, 2016 (Predecessor). The DIP Facilities matured on the Effective Date of the Plan. On the maturity date, the Verso DIP Facility had no balance outstanding and the NewPage DIP ABL Facility had a $103 million outstanding balance which was repaid in full using the Credit Facilities entered into on the Effective Date. The NewPage DIP Term Loan Facility of $175 million of new money term loans was also repaid in full, while the $175 million of “rolled up” loans and its capitalized interests of $9 million , totaling to $184 million , were converted into Verso equity (see Note 20 ). Pre-petition Debt The filing of the Chapter 11 Cases by the Debtors on January 26, 2016 constituted an event of default and automatic acceleration under the agreements governing all of the debt (excluding the $23 million loan from Verso Finance to Chase NMTC Verso Investment Fund). As of the date of the filing of the Chapter 11 Cases, approximately $2.5 billion of debt and interest were outstanding under the Predecessor’s pre-petition credit agreements, excluding related unamortized deferred financing costs, discounts/premiums and deferred gains which were written off to Reorganization items, net upon filing the Chapter 11 Cases. All of the Predecessor’s pre-petition debt and interest were cancelled in exchange for the issuance of 34,390,643 of stock or 100% of the Company’s equity (see Note 20 ). |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Other employee related obligations $ 15 $ 15 Asset retirement obligations 14 13 Deferred compensation 3 3 Other 2 1 Other long-term liabilities $ 34 $ 32 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE On the Effective Date, all issued and outstanding shares of Verso’s old common stock, par value $0.01 per share, including all restricted stock awards and stock options to purchase shares of Verso’s old common stock, were canceled and extinguished. The Successor issued a total of 34,391,000 shares of new Class A Common Stock and Class B Common Stock on the Effective Date. See Note 20 for additional information. The following table provides a reconciliation of the basic and diluted loss or income per common share: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, July 14, 2016 December 31, 2016 2017 2018 Net income (loss) available to common shareholders (in millions) $ 1,178 $ (32 ) $ (30 ) $ 171 Weighted average common shares outstanding (in thousands) 81,450 34,391 34,432 34,514 Weighted average restricted shares (in thousands) 397 — — — Weighted average common shares outstanding - basic (in thousands) 81,847 34,391 34,432 34,514 Dilutive shares from stock awards (in thousands) — — — 582 Weighted average common shares outstanding - diluted (in thousands) 81,847 34,391 34,432 35,096 Basic income (loss) per share $ 14.39 $ (0.93 ) $ (0.87 ) $ 4.97 Diluted income (loss) per share $ 14.39 $ (0.93 ) $ (0.87 ) $ 4.88 As a result of the net loss from continuing operations presented for the Successor, 0.2 million and 0.6 million restricted stock units as of December 31, 2016 and 2017, respectively, and 1.8 million Plan Warrants have been excluded from the calculations of diluted earnings per share in Successor periods as their inclusion would be anti-dilutive. In accordance with ASC Topic 260, Earnings Per Share , unvested restricted stock awards issued by the Predecessor contained nonforfeitable rights to dividends and qualified as participating securities. No dividends were declared or paid in the periods presented. |
RETIREMENT AND OTHER POSTRETIRE
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS Defined Benefit Plans As of December 31, 2018, the Verso Paper Corp. Pension Plan for Hourly Employees (Androscoggin) and the NewPage Cash Balance Plan for Non-Bargained Employees were merged into the NewPage Retirement Plan for Bargained Hourly Employees to form a combined plan which was renamed the Verso Corporation Employee Pension Plan. This plan covers approximately 68% of Verso’s employees. The pension plan provides defined benefits based on years of service multiplied by a flat monetary benefit or based on a percentage of compensation as defined by the respective plan document. As of December 31, 2015, all of the defined benefit pension plans were frozen to new entrants. The majority of the pension plan participants, previously in the union hourly plan, continue to earn service accruals toward their pension benefits but no longer receive multiplier increases. Verso employees previously in the NewPage Cash Balance Plan for Bargained Hourly Employees continue to earn annual interest credits, but no longer earn cash balance benefit credits. Benefit accruals are frozen for employees previously in the Verso Paper Corp. Pension Plan for Hourly Employees (Androscoggin). The following tables summarize the components of net periodic pension cost (income) of Verso’s pension plans for the periods presented: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Components of net periodic pension cost (income): Service cost $ 9 $ 8 $ 16 $ 6 Interest cost 36 31 65 60 Expected return on plan assets (40 ) (39 ) (75 ) (73 ) Amortization of actuarial loss 1 — — — Net periodic pension cost (income) $ 6 $ — $ 6 $ (7 ) The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (income) loss: (Dollars in millions) December 31, 2017 December 31, 2018 Amounts recognized in Accumulated other comprehensive (income) loss: Net actuarial (gain) loss, net of tax $ (133 ) $ (120 ) There is no estimated net actuarial (gain) loss that will be amortized from Accumulated other comprehensive income into net periodic pension cost (income) during 2019 . Verso makes contributions that are sufficient to fund actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act. The Predecessor made contributions to the pension plans of $16 million through July 14, 2016. Successor contributions were $10 million in 2016, $32 million in 2017 and $43 million in 2018. In 2019 , Verso expects to make cash contributions of $37 million to the pension plan. Verso expects no plan assets to be returned to the Company in 2019 . The following table sets forth a reconciliation of the pension plans’ benefit obligations, plan assets and funded status for the periods presented: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 1,672 $ 1,753 Service cost 16 6 Interest cost 65 60 Actuarial (gain) loss 106 (136 ) Benefits paid (106 ) (93 ) Benefit obligation at end of period $ 1,753 $ 1,590 Change in Plan Assets: Plan assets at fair value at beginning of period $ 1,181 $ 1,296 Actual net return on plan assets 189 (84 ) Employer contributions 32 43 Benefits paid (106 ) (93 ) Plan assets at fair value at end of period $ 1,296 $ 1,162 Funded (underfunded) status at end of period $ (457 ) $ (428 ) The accumulated benefit obligation for the year ended December 31, 2017 was $1,753 million . The accumulated benefit obligation at December 31, 2018 was $1,590 million . The following table summarizes expected future pension benefit payments: (Dollars in millions) 2019 $ 89 2020 90 2021 94 2022 96 2023 97 2024-2028 506 Verso evaluates the actuarial assumptions annually as of December 31 (the measurement date) and considers changes in these long-term factors based upon market conditions and the requirements of ASC Topic 715, Compensation—Retirement Benefits . These assumptions are used to calculate benefit obligations as of December 31 of the current year and pension expense to be recorded for the following year. The discount rate assumption reflects the yield on a portfolio of high quality fixed-income instruments that have a similar duration to the plan’s liabilities. The expected long-term rate of return assumption reflects the average return expected on the assets invested to provide for the plan’s liabilities. The actuarial assumptions used in the defined benefit pension plans were as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, July 14, 2016 December 31, 2016 2017 2018 Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate 3.43 % 3.99 % 3.51 % 4.17 % Rate of compensation increase N/A N/A N/A N/A Weighted average assumptions used to determine net periodic pension cost for the period: Discount rate 4.17 % 3.43 % 3.98 % 3.51 % Rate of compensation increase N/A N/A N/A N/A Expected long-term return on plan assets 6.75 % 6.75 % 6.50 % 6.50 % The primary investment objective is to ensure, over the long-term life of the pension plan, an adequate pool of sufficiently liquid assets to support the benefit obligations. In meeting this objective, the pension plan seeks to achieve a high level of investment return through long-term stock and bond investment strategies, consistent with a prudent level of portfolio risk. The expected long-term rate of return on plan assets reflects the weighted-average expected long-term rates of return for the broad categories of investments currently held in the plan (adjusted for expected changes), based on historical rates of return for each broad category, as well as factors that may constrain or enhance returns in the broad categories in the future. The expected long-term rate of return on plan assets is adjusted when there are fundamental changes in expected returns in one or more broad asset categories and when the weighted-average mix of assets in the plan changes significantly. The following table provides the pension plans’ asset allocation for the periods presented: Allocation of Plan Assets 2017 Allocation on 2018 Allocation on Targeted December 31, Targeted December 31, Allocation 2017 Allocation 2018 Fixed income: 35-55% 25-55% Cash and cash equivalent — % 1 % Fixed income funds 32 % 34 % Equity securities: 35-60% 35-65% Domestic equity funds - large cap 32 % 29 % Domestic equity funds - small cap 6 % 6 % International equity funds 20 % 20 % Other: 4-15% 4-15% Hedge funds, private equity, real estate, commodities 10 % 10 % ASC Topic 820, Fair Value Measurements and Disclosures , provides a common definition of fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities (see Note 1 ). In accordance with accounting guidance ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , certain investments have been valued using the NAV per share (or its equivalent) practical expedient and are therefore not classified in the fair value hierarchy. The fair value amounts presented in these tables for investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the reconciliation of changes in the plan's benefit obligations and fair value of plan assets above. There were no transfers of investments between the levels of the fair value hierarchy during the year ended December 31, 2018. The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of the periods presented: (Dollars in millions) Total Level 1 Level 2 Level 3 Assets Valued at NAV Practical Expedient December 31, 2018 Cash and cash equivalent $ 12 $ 12 $ — $ — $ — Fixed income funds 397 — 393 4 — Domestic equity funds - large cap 339 20 1 — 318 International equity funds 229 46 — — 183 Domestic equity funds - mid cap 1 — 1 — — Domestic equity funds - small cap 64 11 — — 53 Other (hedge funds, private equity, real estate, commodities) 120 — — — 120 Total assets at fair value $ 1,162 $ 89 $ 395 $ 4 $ 674 December 31, 2017 Fixed income funds $ 418 $ 54 $ — $ — $ 364 Domestic equity funds - large cap 412 22 — — 390 International equity funds 266 126 — — 140 Domestic equity funds - small cap 73 11 — — 62 Other (hedge funds, private equity, real estate, commodities) 127 4 — — 123 Total assets at fair value $ 1,296 $ 217 $ — $ — $ 1,079 The following table sets forth a summary of the changes in the fair value of the pension plan’s Level 3 assets, which are corporate debt securities, for the year ended December 31, 2018: (Dollars in millions) Fair Value Balance, January 1, 2018 $ — Purchase of corporate debt securities 4 Change in the fair value of corporate debt securities — Balance, December 31, 2018 $ 4 The majority of investments are comprised of investments in publicly traded mutual funds and common/collective trusts. Publicly traded mutual funds are valued based on their publicly traded exchange value and common/collective trusts are valued using a NAV provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares or units outstanding. The fair value of the underlying securities within the fund, which are generally traded on an active market, are valued at the closing price reported on the active market on which those individual securities are traded. The table below sets forth the fair values of investments, whose fair values are estimated at December 31, 2018, using the NAV per share derived by the investment managers as a practical expedient that have unfunded commitments and/or redemption restrictions. December 31, 2018 (Dollars in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Multi-strategy hedge fund (1) $ 1 $ — Annually 45 days Debt securities hedge fund (2) 66 — Semi-Annually 90 days Private equity (3) 11 2 N/A N/A Domestic equity funds - large cap (4) 49 — Monthly Various (5) $ 127 $ 2 (1) The fund invests in equities, equity-related instruments, fixed income and other debt-related instruments, real estate and other tangible assets, cash and cash equivalents, options, futures, swaps and other derivatives. The fund utilizes leverage in its investment program and includes both long and short positions. The fund’s investment objective is to generate consistent, absolute returns with low volatility. (2) The fund’s objective is to achieve superior risk-adjusted total returns by investing primarily in public and private non-investment grade and nonrated debt securities. Securities and other instruments acquired by the fund may include all types of debt obligations consisting primarily of public and private non-investment grade and nonrated debt, convertible bonds, preferred stock, bank debt, middle market loans and notes, trade claims, liquidating trusts, assignments, options swaps and any other securities with fixed-income characteristics, including, without limitation, debentures, notes deferred interest, pay-in-kind or zero coupon bonds, mortgages and mortgage-backed securities, collateralized mortgage obligations and other real estate-related instruments. The fund may also acquire common or preferred stock, warrants to purchase common or preferred stock and any other equity interests. (3) This category consists of several private equity funds some of which invest in limited partnerships which make equity-oriented investments in young, growing or emerging companies or entities. Additionally, the funds can invest in limited partnerships or other pooled investment vehicles which, in turn, make investments in management buy-in, management buy-out, leveraged buy-out, mezzanine, special situation and recapitalization transactions or other partnerships either directly or purchased in the secondary market, as well as investments in mezzanine, distressed and venture debt. These funds invest in a wide range of industries primarily in the United States. These investments cannot be redeemed. Instead, distributions are received when the underlying assets of the funds are liquidated. (4) This fund may invest and trade, on margin or otherwise, in common and preferred stock, futures, convertible securities, rights, warrants, bonds, corporate notes, debentures, U.S. and non U.S. government securities, U.S. government obligations, certificates of deposit, money market funds, cash instruments, U.S. equity index futures, volatility futures, exchange traded funds, exchange traded notes, swaps (including variance swaps), money market instruments and in rights and options, including “put” and “call” options or any combination thereof written by the fund or by others, on securities, commodity, volatility, or other indices, index futures, exchange traded funds, or exchange traded notes. (5) Withdrawals are permitted as of (i) the last business day of each calendar month if written notification is received by the managing member or International Fund Services (N.A.) L.L.C., a subsidiary of the administrator (the “Transfer Agent”) prior to the close of business on the fifth business day of the month, (ii) the last business day of the month following the month that written notification is received by the managing member or Transfer Agent if written notification is received by the Transfer Agent or the managing member after the fifth business day of the month, or (iii) at such times (with less or no prior written notice) as determined by the managing member in its sole discretion. Other Postretirement Benefits The following table sets forth a reconciliation of the other postretirement benefit obligations, plan assets and funded status as of the periods presented: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 7 $ 2 Plan amendments and settlements (7 ) — Benefits paid (3 ) (2 ) Actuarial (gain) loss 5 — Benefit obligation at end of period $ 2 $ — Change in Plan Assets: Plan assets at fair value at beginning of period $ — $ — Employer contributions 3 2 Benefits paid (3 ) (2 ) Plan assets at fair value at end of period $ — $ — Funded status at end of period $ (2 ) $ — Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Included in the balance sheet: Other current liabilities $ (2 ) $ — Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate — % N/A Weighted average assumptions used to determine net periodic postretirement cost for the period: Discount rate 3.32 % N/A The assumed discount rates used in determining the benefit obligations were determined by reference to the yield of a settlement portfolio from a universe of high quality bonds across the full maturity spectrum generally rated at Aa maturing in conjunction with the expected timing and amount of future benefit payments. Effective December 31, 2016, Verso ceased providing postretirement benefits of certain retirees not covered by collective bargaining agreements and retirees who were covered by a collective bargaining agreement who retired prior to December, 2012. For the retirees who retired after December 2012, postretirement benefits ceased effective December 31, 2017 for a portion of the retirees, and ceased on March 31, 2018 for the remaining retirees. These actions resulted in a gain on plan termination of $25 million in the Successor period from July 15, 2016 through December 31, 2016 and $4 million in the Successor year ended December 31, 2017, primarily included in Costs of products sold in the Consolidated Statements of Operations. The following table summarizes the components of net periodic postretirement cost (income) for the periods presented: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Components of net periodic postretirement cost (income): Service cost $ — $ — $ — $ — Interest cost 1 1 — — Amortization of actuarial loss — — — 1 Settlement — (25 ) (4 ) — Net periodic postretirement cost (income) $ 1 $ (24 ) $ (4 ) $ 1 The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (gain) loss: (Dollars in millions) December 31, 2017 December 31, 2018 Amounts recognized in Accumulated other comprehensive (income) loss: Net actuarial (gain) loss, net of tax $ 1 $ — Defined Contribution Plans Verso also sponsors defined contribution plans for certain employees. Employees may elect to contribute a percentage of their salary on a pre-tax and/or after-tax basis, subject to regulatory limitations, into an account with an independent trustee which can then be invested in a variety of investment options at the employee’s discretion. Verso may also contribute to the employee’s account depending upon the requirements of the plan. For certain employees, these employer contributions may be in the form of a specified percentage of each employee’s total compensation or in the form of discretionary profit-sharing that may vary depending on the achievement of certain company objectives. Certain defined contribution benefits are provided in accordance with collective bargaining agreements. Expenses under these plans are presented below. Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Defined Contribution Plans Non-elective employer contribution $ 8 $ 8 $ 14 $ 14 Employer 401(k) matching contributions 8 6 14 14 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY | EQUITY Equity Awards On the Effective Date, pursuant to the operation of the Plan, the Verso Corporation Performance Incentive Plan, or the “2016 Incentive Plan,” became effective. The maximum number of shares of Class A Common Stock authorized to be issued or transferred pursuant to awards under the 2016 Incentive Plan is 3.6 million . As of December 31, 2018, we have 3.4 million shares of common stock reserved for future issuance under our Verso Corporation Performance Incentive Plan. The Compensation Committee of the Board of Directors is the administrator of the 2016 Incentive Plan. Under the 2016 Incentive Plan, stock awards may be granted to employees, consultants and directors upon approval by the board of directors. There were no stock awards issued on the Effective Date pursuant to the Plan. 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 will be calculated at December 31, 2019 for the 2017 awards and December 31, 2020 for the 2018 awards 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 December 31, 2018 , there was $13 million of unrecognized compensation cost related to 1.3 million non-vested restricted stock units which are expected to be recognized over a weighted-average period of approximately 1.7 years. Time-based Restricted Stock Units The following table summarizes activity for the time-based restricted stock units that occurred subsequent to the Effective Date: (In thousands, except per share amounts) Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value per Share Non-vested on July 15, 2016 — $ — Granted 162 11.19 Forfeited (2 ) 11.50 Non-vested at December 31, 2016 160 11.18 Granted 528 6.41 Vested (73 ) 10.81 Forfeited (32 ) 11.50 Non-vested at December 31, 2017 583 6.89 Granted 204 17.75 Vested (106 ) 7.42 Forfeited (3 ) 14.08 Non-vested at December 31, 2018 678 $ 10.04 Performance-based Restricted Stock Units The following table summarizes activity for the performance-based restricted stock units that occurred subsequent to the Effective Date: Restricted Stock Units Weighted Average Grant Date Fair Value per Share (In thousands, except per share amounts) Non-vested at December 31, 2017 — $ — Granted 640 22.25 Vested — — Forfeited (2 ) 18.22 Non-vested at December 31, 2018 638 $ 22.26 Prior to the Effective Date, Verso had shares and share-based awards outstanding under the Amended and Restated 2008 Incentive Award Plan, or the “2008 Incentive Plan.” On the Effective Date, pursuant to the operation of the Plan, the prior employee incentive plans and other employment agreements were terminated and any awards issued under them were no longer honored. Under the 2008 Incentive Plan, up to 11 million shares of Predecessor common stock were authorized for the issuance of stock awards to be granted to employees, consultants and directors upon approval by the board of directors. Verso had issued non-qualified stock options to certain non-employee directors that vested upon grant and expired 10 years from the date of grant. Verso also had issued time-based options that vested one to three years from the date of grant and expired seven years from the date of grant. There were 8,617 time-based options that were cancelled at emergence and no stock options outstanding as of July 15, 2016. Verso recognized equity award expense of $4 million for the Predecessor period from January 1, 2016 to July 14, 2016. Equity award expense for the Successor period July 15, 2016 to December 31, 2016 was negligible. Verso recognized equity award expense of $1 million and $8 million for the Successor years ended December 31, 2017 and December 31, 2018, respectively. 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 and a seven year term. As of December 31, 2018 , no warrants have been exercised. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Management Agreement — In connection with the acquisition of our business from International Paper Company on August 1, 2006, Verso entered into a management agreement with certain affiliates of Apollo Global Management, LLC, or “Apollo,” our then majority owner, relating to the provision of certain financial and strategic advisory services and consulting services, which was scheduled to expire on August 1, 2018 . Under the management agreement, Apollo, upon providing notice to us, had the right to act, in return for additional fees to be mutually agreed by the parties to the management agreement, as our financial advisor or investment banker for any merger, acquisition, disposition, financing or similar transaction if Verso decided to engage someone to fill such role. If Apollo exercised its right to act as our financial advisor or investment banker for any such transaction, and if Verso was unable to agree with Apollo on its compensation for serving in such role, then at the closing of any merger, acquisition, disposition, financing or similar transaction, Verso agreed to pay Apollo a fee equal to 1% of the aggregate enterprise value (including the aggregate value of equity securities, warrants, rights and options acquired or retained; indebtedness acquired, assumed or refinanced; and any other consideration or compensation paid in connection with such transaction). Verso also agreed to indemnify Apollo, its affiliates and their directors, officers and representatives for losses relating to the services contemplated by the management agreement and the engagement of affiliates of Apollo pursuant to, and the performance by them of the services contemplated by, the management agreement. Apollo did not exercise its right to act as our financial advisor or investment banker for any such transaction in the periods presented and thus, Verso made no payment to Apollo under the management agreement during those periods. On the Effective Date, in connection with our emergence from bankruptcy, such management agreement was terminated and all rights and remedies thereunder were terminated, extinguished, waived and released. Transactions with Affiliates — Prior to the Effective Date, Verso transacted business with affiliates of Apollo from time to time. Product sales to Apollo affiliates were $15 million for the period of January 1, 2016 through July 14, 2016 (Predecessor). The related accounts receivable were $3 million as of July 14, 2016 (Predecessor). Product purchases from Apollo affiliates were negligible for the Predecessor. As of the Effective Date, Apollo is no longer a related party. Upon the Effective Date, several of the significant debtholders became the stockholders. For the period from July 15, 2016 to December 31, 2016 (Successor), for the year ended December 31, 2017 (Successor) and for the year ended December 31, 2018 (Successor), Verso did not transact business with affiliates. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 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 as included in Restructuring charges on the Consolidated Statements of Operations for the Successor: July 15, 2016 Year Ended Year Ended Through December 31, December 31, Cumulative (Dollars in millions) December 31, 2016 2017 2018 Incurred Severance and benefit costs $ 2 $ 1 $ — $ 3 Write-off of purchase obligations — 2 (1 ) 1 Other costs — 1 — 1 Total restructuring costs $ 2 $ 4 $ (1 ) $ 5 The following table details the changes in the restructuring reserve liabilities related to Corporate restructuring activities as included in Accrued liabilities on the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (4 ) — Purchase obligations 2 — Purchase obligation payments — (1 ) Purchase obligations adjustments — (1 ) Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 2 $ — Androscoggin/Wickliffe Capacity Reductions — On April 5, 2016, Verso announced its decision to permanently close the Wickliffe Mill and the associated Property, plant and equipment were written down to salvage value. On November 1, 2016, Verso announced the temporary idling of the No. 3 paper machine at the Androscoggin Mill and on July 19, 2017, Verso announced plans to permanently shut down the No. 3 paper machine and associated equipment, reducing annual coated papers production capacity by approximately 200,000 tons. In connection with the temporary idling of the No. 3 paper machine at the Androscoggin Mill, Verso determined a reduction in the useful life of the machine was necessary and accordingly recognized $43 million of accelerated depreciation during the fourth quarter of 2016 and an additional $6 million of accelerated depreciation during the first quarter of 2017, which is included in Depreciation and amortization in the Consolidated Statements of Operations for the respective periods. As a result of the acceleration of depreciation, no impairment charge was required to be recorded with the temporary idling or closure of the No. 3 paper machine and associated equipment at the Androscoggin Mill. The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions and primarily attributable to the paper segment as included in Restructuring charges on the Consolidated Statements of Operations for the Predecessor: January 1, 2016 Through Cumulative (Dollars in millions) July 14, 2016 Incurred Property and equipment $ 127 $ 127 Severance and benefit costs 10 26 Write-off of spare parts, inventory and other assets 9 12 Write-off of purchase obligations and commitments 2 3 Other costs 3 4 Total restructuring costs $ 151 $ 172 Severance and benefit costs for the Predecessor period January 1, 2016 to July 14, 2016 in excess of severance and benefits costs accrued were primarily the result of $3 million of salaries and benefit costs for employees continuing to provide services, which were expensed as incurred. The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions as included in Restructuring charges on the Consolidated Statements of Operations for the Successor: July 15, 2016 Year Ended Year Ended Through December 31, December 31, Cumulative (Dollars in millions) December 31, 2016 2017 2018 Incurred Severance and benefit costs $ 5 $ — $ — $ 5 Write-off of purchase obligations and commitments 1 2 — 3 Other costs 3 3 2 8 Total restructuring costs $ 9 $ 5 $ 2 $ 16 The following table details the changes in the restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions as included in Accrued liabilities on the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (5 ) (1 ) Purchase obligations 2 — Payments on purchase obligations (2 ) — Other costs 3 2 Payments on other costs (3 ) (2 ) Ending balance of reserve $ 1 $ — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following is a summary of the components of the (benefit) provision for income taxes for Verso: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Current tax (benefit) provision: U.S. federal $ — $ — $ (6 ) $ — U.S. state and local — — — — Total current tax (benefit) provision — — (6 ) — Deferred tax (benefit) provision: U.S. federal 549 (19 ) 64 35 U.S. state and local 78 2 (1 ) (31 ) Changes to reorganization 8 — — — Total deferred tax (benefit) provision 635 (17 ) 63 4 Less: valuation allowance (635 ) 17 (63 ) (4 ) Allocation to Other comprehensive (income) loss — (20 ) (2 ) — Total income tax (benefit) provision $ — $ (20 ) $ (8 ) $ — A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Tax at Statutory U.S. Rate of 21% in 2018 and 35% in 2017 and 2016 $ 412 $ (18 ) $ (13 ) $ 36 Increase resulting from: Reorganization costs and fresh start accounting (680 ) — — — Federal tax rate change — — 71 — Allocation to Other comprehensive (income) loss related to pension and other postretirement benefits. — (20 ) (2 ) — Federal net operating losses 818 — — — Other expenses — — — (1 ) Net permanent differences 138 (20 ) 69 (1 ) Valuation allowance (635 ) 17 (63 ) (4 ) Changes to reorganization 8 — — — State income taxes (benefit) 78 2 — (31 ) Other (1 ) (1 ) (1 ) — Total income tax (benefit) provision $ — $ (20 ) $ (8 ) $ — The following is a summary of the significant components of the net deferred tax asset (liability): (Dollars in millions) December 31, 2017 December 31, 2018 Deferred tax assets: Net operating loss $ 72 $ 46 Credit carryforwards — 40 Pension 147 140 Compensation obligations 14 18 Inventory reserves/capitalization 26 23 Capitalized expenses 4 4 Other 10 8 Gross deferred tax assets 273 279 Less: valuation allowance (130 ) (126 ) Deferred tax assets, net of allowance $ 143 $ 153 Deferred tax liabilities: Property, plant and equipment $ (139 ) $ (149 ) Cancellation of debt income deferral (3 ) — Intangible assets — (3 ) Other (1 ) (1 ) Total deferred tax liabilities (143 ) (153 ) Net deferred tax liabilities $ — $ — The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based on the lack of historical earnings, management believes it is more likely than not that Verso will not realize the benefits of those deductible differences. Upon the Effective Date of the Plan, certain debt obligations of the Company were extinguished. Absent an exception, a debtor recognizes cancellation of debt income, or “CODI,” upon discharge of its outstanding indebtedness for an amount less than its original issue price. The Internal Revenue Code, or “IRC,” provides that a debtor in a bankruptcy case may exclude CODI from taxable income but must reduce certain of its tax attributes by the amount of the CODI realized as a result of the consummation of a plan of reorganization. Also, IRC Section 382 limits the ability to utilize losses in the future. This has resulted in a reduction of the net operating losses available to be utilized in the future to $196 million at the end of 2018. ASC 740-20-45-7 requires that a Company allocate tax expense to other comprehensive income, or “OCI,” and a corresponding tax benefit to income from continuing operations when there is a pre-tax loss from continuing operations and pretax income in OCI. In 2017 , Verso allocated $2 million of tax expense to OCI and recognized a $2 million tax benefit in continuing operations. In 2018 , Verso allocated zero tax expense to OCI and recognized a zero tax benefit in continuing operations. The valuation allowance for deferred tax assets as of December 31, 2017 and December 31, 2018 was $130 million and $126 million , respectively. The decrease in the valuation allowance in 2018 of $4 million is primarily attributable to a decrease in net operating loss, pension-related timing differences and increases in Property, plant and equipment timing differences, partially offset by state credits. It is less than more likely than not that Verso will realize these carryforward benefits in the future. Income tax benefits of $140 million related to pension and other postretirement benefit obligations are recorded, of which $31 million is attributable to other comprehensive income as of December 31, 2018 . Verso’s policy is to record interest paid or received with respect to income taxes as interest expense or interest income, respectively, in the Consolidated Statements of Operations. The total amount of tax-related interest and penalties in the Consolidated Balance Sheets was zero at December 31, 2017 and 2018 . The amount of expense (benefit) for interest and penalties included in the Consolidated Statements of Operations was zero for all periods presented. Verso has federal net operating loss carryforwards totaling $305 million as of December 31, 2018 , which begin to expire at the end of 2034. Verso estimates that these net operating losses have been reduced by attribute reduction and IRC Section 382 limits to $196 million available to be utilized in the future. Verso has state net operating loss carryforwards, after apportionment, totaling $58 million available to be utilized in the future as of December 31, 2018 . A state income tax credit of $40 million that was denied in prior years was reinstated in 2018. On December 22, 2017, the federal government enacted new tax reform legislation. The provisions of the Tax Act included a reduction in the corporate income tax rate from 35% to 21%. The reduction in the federal tax rate resulted in a reduction of deferred tax assets of $71 million offset with a corresponding decrease in the valuation allowance. Also included in the Tax Act was a repeal of the alternative minimum tax and provisions allowing for the refund of any minimum tax credit carryovers. Verso recognized a tax benefit of $6 million , which is included in Income tax benefit in the Consolidated Statement of Operations for the year ended December 31, 2017, related to the recognition of a minimum tax credit carryover receivable. Verso believes that all of the significant impacts of the Tax Act are reflected in the financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollars in millions) Balance at December 31, 2016 3 Additions — Reductions (1 ) Balance at December 31, 2017 2 Additions — Reductions — Balance at December 31, 2018 $ 2 None of the unrecognized tax benefits are expected to significantly increase or decrease in the next twelve months. None of the unrecognized tax benefits would, if recognized, affect the effective tax rate. The reduction in the balance in 2017 is related to the effects of the Tax Act. Verso files income tax returns in the United States for federal and various state jurisdictions. As of December 31, 2018 , periods beginning in 2015 are still open for examination by various taxing authorities; however, taxing authorities have the ability to adjust net operating loss carryforwards from years prior to 2015. As of December 31, 2018 , there are no ongoing federal or state income tax audits. |
NEW MARKET TAX CREDIT ENTITIES
NEW MARKET TAX CREDIT ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
NEW MARKET TAX CREDIT ENTITIES | NEW MARKET TAX CREDIT ENTITIES In 2010, Verso entered into a financing transaction with Chase Community Equity, LLC, or “Chase,” related to a $43 million renewable energy project at the mill in Quinnesec, Michigan, in which Chase made a capital contribution and Verso Finance made a loan to Chase NMTC Verso Investment Fund, LLC, or the “Investment Fund,” under a qualified New Markets Tax Credit, or “NMTC,” program, provided for in the Community Renewal Tax Relief Act of 2000. By virtue of its contribution, Chase was entitled to substantially all of the benefits derived from the NMTCs. This transaction included a put/call provision, exercised by Chase on December 31, 2017, whereby Verso repurchased Chase’s interest. The value attributed to the put/call is de minimis. The NMTC was subject to 100% recapture for a period of 7 years as provided in the Internal Revenue Code. Verso is required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, could require us to indemnify Chase for any loss or recapture of NMTCs related to the financing until such time as Verso’s obligation to deliver tax benefits is relieved and the period open for examination by federal authorities has expired. Verso does not anticipate any credit recaptures will be required in connection with this arrangement. Until December 31, 2017, the Investment Fund was determined to be a variable interest entity, or “VIE,” of which Verso was the primary beneficiary, and thus consolidated it in accordance with the accounting standard for consolidation. The impact of the VIE was $8 million of Other long-term liabilities as of December 31, 2016. Incremental costs to maintain the structure during the compliance period were recognized as incurred. After the exercise of the put option, the Investment Fund had become a wholly owned subsidiary of Verso. Chase’s contribution, net of syndication fees, was included in Other long-term liabilities in the Consolidated Balance Sheets prior to December 31, 2017. At the end of the recapture period in December 2017, and as a result of the put, all obligations to Chase have been met and the $8 million , net of related expenses of $1 million , is recorded as an extinguishment gain and included in Other (income) expense in the Consolidated Statement of Operations for the period ended December 31, 2017. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases — Verso has entered into operating lease agreements, which expire at various dates through 2023 . Rental expense under operating leases amounted to $12 million for the year ended December 31, 2018 (Successor), $10 million for the year ended December 31, 2017 (Successor), $4 million for the period July 15, 2016 to December 31, 2016 (Successor) and $6 million for the period January 1, 2016 to July 14, 2016 (Predecessor). The following table represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year, as of December 31, 2018 . (Dollars in millions) 2019 6 2020 5 2021 2 2022 1 2023 — Thereafter — Total $ 14 Purchase obligations — Verso has entered into unconditional purchase obligations in the ordinary course of business for the purchase of certain raw materials, energy and services. The following table summarizes the unconditional purchase obligations, as of December 31, 2018 . (Dollars in millions) 2019 47 2020 41 2021 10 2022 6 2023 6 Thereafter 61 Total $ 171 Represented Employees — Approximately 70% of Verso’s hourly workforce is represented by unions. All represented employees were covered by a Master Labor Agreement from 2012 to 2016 that covered wages and benefits. Certain represented mills also had local agreements covering general work rules. The Master Labor Agreement expired in December 2016. The parties are currently engaged in collective bargaining for a new master labor agreement and continue to work under the terms and conditions of their expired agreements. Severance Arrangements — Under Verso’s severance policy, and subject to certain terms and conditions, if the employment of eligible regular, full-time salaried employee or regular, full-time hourly employee is terminated under specified circumstances, the employee is eligible to receive a termination allowance based on the employee’s eligible pay, employee classification and applicable service as follows: (i) one week of eligible pay multiplied by years of service not in excess of 10 years of service for employees with one through 10 years of service and (ii) for employees with eleven and above years of service, an additional two weeks of eligible pay multiplied by years of service in excess of 10 years of service. In any event, the allowance is not less than two weeks of eligible pay and not more than 52 weeks of eligible pay. Termination allowances for union employees are subject to collective bargaining rules. Verso may also elect to provide the employee with other severance benefits such as subsidized continuation of medical and dental insurance coverage and outplacement services. Verso’s executive officers are also entitled to receive additional severance benefits under their contracts with Verso in the event of the termination of their employment under certain circumstances. Settlement Agreement — On March 20, 2018, Verso entered into a settlement agreement, or “the Settlement Agreement,” with Canadian producers of supercalendered papers, 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 papers 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 papers of all countervailing duties collected on supercalendered papers 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 papers of the countervailing duties previously collected on supercalendered papers 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 year ended December 31, 2018 , $42 million in settlement payments were received by Verso and are included in Other (income) expense on the Consolidated Statements of Operations. Expera Specialty Solutions, LLC — Verso was a party to a long-term supply agreement with Expera Specialty Solutions, or “Expera,” for the manufacture of specialty papers products on paper machine No. 5 at the Androscoggin Mill in Jay, Maine. The agreement, which was an element of the sale by International Paper Company of its industrial paper business to Thilmany, LLC in 2005, had a 12 -year term expiring on June 1, 2017 . Verso, as the assignee of International Paper, was responsible for the machine’s routine maintenance and Expera was responsible for any capital expenditures specific to the machine. The agreement required Expera to pay us a variable charge for the paper purchased and a fixed charge for the availability of the paper machine. Expera had the right to terminate the agreement if certain events occurred. On May 25, 2016, the Bankruptcy Court authorized Verso to reject its supply agreement with Expera effective on May 4, 2016. Moving forward from the rejection of this agreement, Verso intends to continue producing its own portfolio of specialty papers products on paper machine No. 5 at the Androscoggin Mill. General Litigation — Verso is involved from time to time in legal proceedings incidental to the conduct of its business. While any proceeding or litigation has the element of uncertainty, Verso believes that the outcome of any of these lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on the Consolidated Financial Statements. |
INFORMATION BY INDUSTRY SEGMENT
INFORMATION BY INDUSTRY SEGMENT | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
INFORMATION BY INDUSTRY SEGMENT | INFORMATION BY INDUSTRY SEGMENT Verso has two operating segments, paper and pulp, however, subsequent to the Effective Date, Verso has determined that the operating loss of the pulp segment is immaterial for disclosure purposes. In 2018, pulp net sales and gross margin, excluding depreciation and amortization expense were each less than 10% of consolidated balances. Verso’s paper products are used primarily in media and marketing applications, including catalogs, magazines and commercial printing applications, such as high-end advertising brochures, annual reports and direct-mail advertising, and specialty applications, such as flexible packaging and label and converting. Market kraft pulp is used to manufacture printing, writing and specialty papers grades and 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 segment, North America. The following table summarizes the reportable segments for the period from January 1, 2016 through July 14, 2016 (Predecessor): January 1, 2016 Through (Dollars in millions) July 14, 2016 Net sales: Paper $ 1,349 Pulp 91 Intercompany eliminations (23 ) Total $ 1,417 Operating income (loss): Paper (1) $ (106 ) Pulp (17 ) Total $ (123 ) Depreciation and amortization: Paper $ 92 Pulp 8 Total $ 100 Capital expenditures: Paper $ 26 Pulp 5 Total $ 31 (1) Operating losses in the period from January 1, 2016 to July 14, 2016 (Predecessor), include $135 million of Restructuring charges attributable to the paper segment and $16 million of Restructuring charges related to the pulp segment. |
UNAUDITED QUARTERLY DATA
UNAUDITED QUARTERLY DATA | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY DATA | UNAUDITED QUARTERLY DATA The quarterly financial data is as follows: (Dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2017 2017 2017 2017 2018 2018 2018 2018 Summary Statement of Operations Data: Net sales $ 616 $ 585 $ 621 $ 639 $ 639 $ 644 $ 704 $ 695 Cost of products sold (exclusive of depreciation and amortization) 562 574 554 560 581 581 580 579 Depreciation and amortization 33 27 27 28 27 28 28 28 Selling, general and administrative expenses 33 24 24 26 25 28 25 24 Restructuring charges 2 2 4 1 1 1 — (1 ) Other operating (income) expense (1) — — — 1 — 2 (9 ) 2 Interest expense 9 10 10 9 11 6 15 1 Other (income) expense (2) (2 ) (3 ) (2 ) (14 ) (4 ) (3 ) (21 ) (24 ) Income tax expense (benefit) — — — (8 ) — — — — Net income (loss) (21 ) (49 ) 4 36 (2 ) 1 86 86 Share Data: Income (loss) per common share: Basic (3) $ (0.61 ) $ (1.42 ) $ 0.12 $ 1.04 $ (0.06 ) $ 0.03 $ 2.49 $ 2.49 Diluted (3) (0.61 ) (1.42 ) 0.12 1.04 (0.06 ) 0.03 2.45 2.44 Weighted average shares of common stock outstanding (thousands): Basic 34,391 34,416 34,456 34,465 34,465 34,506 34,562 34,553 Diluted 34,391 34,416 34,460 34,618 34,465 34,829 35,051 35,288 Closing price per share: High $ 8.27 $ 6.07 $ 5.38 $ 17.57 $ 17.94 $ 21.77 $ 33.67 $ 33.57 Low 5.70 3.37 3.86 5.15 14.46 15.92 20.36 21.02 Period-end 6.00 4.69 5.09 17.57 16.84 21.76 33.67 22.40 (1) Third quarter 2018 other operating income primarily associated with the realized gain on the sale of the Wickliffe Mill. (2) Third and fourth quarters 2018 other income primarily associated with countervailing duty settlement gains pursuant to the Settlement Agreement. (3) Earnings per share calculations for each fiscal quarter are based on the applicable weighted-average shares outstanding for each period, and the sum of the earnings per share for the four fiscal quarters may not necessarily be equal to the full year earnings per share amount. |
BANKRUPTCY RELATED DISCLOSURES
BANKRUPTCY RELATED DISCLOSURES | 12 Months Ended |
Dec. 31, 2018 | |
Reorganizations [Abstract] | |
BANKRUPTCY RELATED DISCLOSURES | BANKRUPTCY RELATED DISCLOSURES 2016 Chapter 11 Filing On the Petition Date, the Debtors filed the Chapter 11 Filings in the Bankruptcy Court. The Chapter 11 Filings constituted an event of default and automatic acceleration under the agreements governing all of the Predecessor’s debt (excluding the $23 million loan from Verso Finance Holdings to Chase NMTC Verso Investment Fund). On the Effective Date, Verso Finance, VPH and certain of its subsidiaries entered into the Verso DIP Facility (as defined in Note 8) for an aggregate principal amount of up to $100 million , and NewPage Corp and certain of its subsidiaries entered into the NewPage DIP ABL Facility (as defined in Note 8 ) for an aggregate principal amount of up to $325 million and the NewPage DIP Term Loan Facility (as defined in Note 8 ) for an aggregate principal amount of $350 million . The NewPage DIP Term Loan Facility consisted of $175 million of new money term loans and $175 million of loans that aggregated and replaced existing loans, or “NewPage DIP Roll Up Loans,” to refinance loans outstanding under the existing term loan facility of NewPage Corp that were outstanding on the Petition Date. Plan of Reorganization and Emergence from Chapter 11 On June 23, 2016, the Bankruptcy Court entered the Confirmation Order, confirming the Plan. On the Effective Date, the Plan became effective pursuant to its terms and the Debtors emerged from their Chapter 11 Cases. Key components of the Plan included: • Entry into an asset-based loan facility and a term loan facility upon emergence from Chapter 11 on July 15, 2016. These Credit Facilities (as defined in Note 8 ) provided exit financing in an amount sufficient to repay in full all amounts outstanding under the debtor-in-possession credit agreements and pay fees and expenses related to the facilities and the emergence of Verso and its subsidiaries from bankruptcy. • Issuance of an aggregate of 34,390,643 shares of Class A common stock and Class B common stock, or 100% of Verso’s equity (subject to dilution by warrants issued to certain creditors described below, or “Plan Warrants,” and equity issuable to our employees under a management incentive plan), to our existing creditors in exchange for the cancellation of all of the Debtors’ pre-petition indebtedness (principal and interest) existing as of the date of bankruptcy totaling $2.6 billion . • All shares of Verso’s common stock issued and outstanding immediately prior to the Effective Date were cancelled and discharged. • The prior employee incentive plans and other employment agreements were terminated and any awards issued under them were no longer honored, and a new performance incentive plan was adopted by Verso. See “Performance Incentive Plan” below. • Employee retirement contracts and collective bargaining agreements were honored by Verso upon emergence. Plan Warrants On the Effective Date, and in accordance with the Plan, 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 holders. Each Plan Warrant has a seven year term (commencing on the Effective Date) and has an initial exercise price of $27.86 per share of Class A Common Stock. The warrant agreement governing the Plan Warrants, or the “Warrant Agreement,” contains customary anti-dilution adjustments in the event of any stock split, reverse stock split, reclassification, stock dividend or other distributions. In addition, the Warrant Agreement provides for anti-dilution adjustments in the event of below market stock issuances at less than 95% of the average closing price of the Class A Common Stock for the 10 consecutive trading days immediately prior to the applicable determination date, and for pro rata repurchases of Class A Common Stock. The fair value of the Plan Warrants was estimated on the Effective Date using the Black-Scholes option pricing model. The weighted average assumptions used included a risk free interest rate of 1% , an expected stock price volatility factor of 37% and a dividend rate of 0% . The aggregate fair value of the Plan Warrants was $10 million on the Effective Date. Performance Incentive Plan On the Effective Date, pursuant to the operation of the Plan, the Verso Corporation Performance Incentive Plan became effective. The maximum number of shares of Class A Common Stock that may be issued or transferred pursuant to awards under this plan is 3,620,067 . The Compensation Committee of the Board of Directors is the administrator of the Verso Corporation Performance Incentive Plan. There were no stock awards issued on the Effective Date pursuant to the Plan. Reporting During Bankruptcy During the pendency of the Debtors’ Chapter 11 Cases, expenses, gains and losses directly associated with reorganization proceedings were reported as Reorganization items, net in the Consolidated Statements of Operations and liabilities subject to compromise in the Chapter 11 Cases were segregated from liabilities of non-filing entities, fully secured liabilities not expected to be compromised and from post-petition liabilities. In addition, effective as of the Petition Date and during the pendency of the Debtors’ Chapter 11 Cases, the Company ceased recording contractual interest expense on the outstanding pre-petition debt classified as Liabilities subject to compromise or “LSTC”. Upon the Debtors’ emergence from our Chapter 11 Cases, the Company settled and extinguished or reinstated liabilities that were subject to compromise. Fresh Start Accounting Under ASC 852, Reorganizations , fresh start accounting is required upon emergence from Chapter 11 if (i) the value of the assets of the emerging entity immediately before the date of confirmation is less than the total of all post-petition liabilities and allowed claims; and (ii) holders of existing voting shares immediately before confirmation receive less than 50% of the voting shares of the emerging entity. The Company qualified for and adopted fresh start accounting as of the Effective Date. Adopting fresh start accounting results in a new reporting entity with no beginning retained earnings or deficits. The cancellation of all existing shares outstanding on the Effective Date and issuance of new shares of the reorganized entity caused a change of control of the Company under ASC 852. Adoption of fresh start accounting resulted in Verso becoming a new entity for financial reporting purposes and the recording of the Company’s assets and liabilities at their fair value as of the Effective Date in conformity with ASC 805, Business Combinations . The Company also adopted various new accounting policies in connection with its adoption of fresh start accounting. Consequently, the Company’s financial statements on or after the Effective Date are not comparable with the financial statements prior to that date and the historical financial statements before the Effective Date are not reliable indicators of its financial condition and results of operations for any period after it adopted fresh start accounting. Reorganization Value Reorganization value is the value attributed to an entity emerging from bankruptcy, as well as the expected net realizable value of those assets that will be disposed before emergence occurs. This value is viewed as the value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the assets of the entity immediately after emergence. Fresh start accounting requires that the reporting entity allocate the reorganization value to its assets and liabilities in relation to their fair values upon emergence from Chapter 11. The Company’s valuation of the reorganized Company dated as of April 27, 2016 , which was included in the disclosure statement related to the Plan, purported the estimated enterprise value of the Company to be in a range between $ 1.05 billion and $ 1.10 billion . The estimated enterprise value, which was approved by the Bankruptcy Court, included the equity value in a range between $675 million and $725 million . As part of determining the reorganization value as of July 15, 2016, the Company estimated the equity value of the Successor to be $675 million and the reorganization value to be approximately $2 billion . As the Company issued 100% of its equity to existing creditors in exchange for the cancellation of all pre-petition indebtedness upon confirmation of the Plan, the distribution of the Company’s equity in settlement of pre-existing indebtedness was the primary objective of the Plan. Accordingly, Verso’s equity value represents the primary assumption utilized by the Company in the determination of reorganization value. The Company believes that an equity value at the low-end of the range of $675 - $725 million was appropriate due to declines in projected operating performance from the submission of the Plan through the Effective Date. In order to determine the reorganization value, Verso estimated the enterprise value of the Successor utilizing the discounted cash flow analysis, comparable company analysis and precedent transaction analysis. The use of each approach provides corroboration for the other approaches. To estimate the fair value utilizing the discounted cash flow analysis, Verso established an estimate of future cash flows for the period from 2016 to 2025 and discounted the estimated future cash flows to the present value. The expected cash flows for the period 2016 to 2025 were derived from earnings forecasts and assumptions regarding growth and margin projections, as applicable, and expressed as a multiple of EBITDA (defined below). The discount rate of 9.5% was estimated based on an after-tax weighted average cost of capital reflecting the rate of return that would be expected by a market participant. To estimate the fair value utilizing the comparable company analysis, Verso estimated the value of the Company based on a relative comparison with other publicly traded companies with similar operating and financial characteristics. Under this methodology, valuation multiples, derived from the operating data of publicly-traded benchmark companies such as the projected financial measures of revenue and earnings before interest, taxes, depreciation and amortization, or “EBITDA” were applied to projected operating data of Verso. To estimate the fair value utilizing the precedent transaction analysis method, Verso determined an estimate of value by examining merger and acquisition transactions involving paper companies. The valuation paid in such acquisitions or implied in such mergers were analyzed as ratios of various financial results. These transaction multiples were calculated based on the purchase price (including any debt assumed) paid to acquire companies that are comparable to Verso. The fair value of the Plan Warrants was estimated on the Effective Date using the Black-Scholes option pricing model with the following assumptions. The weighted average assumptions used included a risk free interest rate of 1% , an expected stock price volatility factor of 37% and a dividend rate of 0% . The aggregate fair value of the Plan Warrants was determined to be $10 million on the Effective Date, therefore the residual common stock value was determined to be $665 million . The following table reconciles the equity value to the estimated reorganization value as of the Effective Date (dollars in millions): Value of Successor Stock $ 665 Add: Fair value of Plan Warrants 10 Equity Value 675 Add: Fair value of long-term debt 318 Add: Other non-interest bearing liabilities 1,021 Less: Debt issuance costs (8 ) Reorganization value of Successor assets $ 2,006 The fair value and carrying value of debt represented $318 million of borrowings under the Credit Facilities on the Effective Date. The fair value of long-term debt was determined based on a market approach utilizing market yields and was estimated to be approximately 94% of the par value or less $22 million original issue discount on the Term Loan Facility - (as defined in Note 8 ). The Company’s reorganization value was allocated to its assets and liabilities in conformity with ASC 805 . The valuation of the Company’s assets and liabilities in connection with fresh start accounting include the following general valuation approaches: • The income approach was used to estimate value based on the present value of future economic benefits that are expected to be produced; • The market approach was used to estimate the value through the analysis of recent sales of comparable assets or business entities; and • The cost approach was used to provide a systematic framework for estimating the value of tangible assets or intangible assets based on the economic principal of substitution. The significant assumptions related to the valuation of the Company’s assets are included in the footnotes to the Fresh Start Balance sheet below. Most valuation inputs, related to inventory, property, plant and equipment, and intangible assets are considered to be Level 3 inputs as they are based on significant inputs that are not observable in the market. Reorganization Adjustments The consolidated financial information below gives effect to the following Reorganization Adjustments, the Plan and the implementation of the transactions contemplated by the Plan. These adjustments give effect to the terms of the Plan and certain underlying assumptions, which include, but are not limited to, the following: • Borrowing of $318 million from the Credit Facilities; • Issuance of 34,390,643 shares of stock or 100% of Verso’s equity and Plan Warrants to purchase an aggregate of 1.8 million shares of Class A Common Stock in exchange for the cancellation of all of our pre-petition indebtedness existing as of the Petition Date totaling $2.6 billion ; • Payment for the satisfaction of general unsecured claims in aggregate settlement totaling $3 million ; and • Repayment of $279 million of liabilities under the DIP Facilities (as defined in Note 8). Fresh Start Balance Sheet The following fresh start balance sheet as of the Effective Date, July 15, 2016, illustrates the financial effects on the Company of the implementation of the Plan and the adoption of fresh start accounting. This fresh start balance sheet reflects the effect of the completion of the transactions included in the Plan, including the issuance of successor equity and the settlement of old indebtedness. Reorganization adjustments, shown in column 2 of the following schedule, represent amounts recorded on the Effective Date for the implementation of the Plan, including the settlement of liabilities subject to compromise and related payments, the issuance of new shares of common stock and new warrants, repayment of the DIP Facilities and cancellation of Predecessor common stock. Fresh start adjustments, as shown in column 3 of the following schedule, represent amounts recorded on the Effective Date as a result of the adoption of fresh start accounting, which resulted in Verso becoming a new entity for financial reporting purposes. The Company’s assets and liabilities have been recorded at fair value as of the fresh start accounting date or Effective Date. (Dollars in millions) Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 27 $ 20 (a) $ — $ 47 Accounts receivable, net 201 — (2 ) 199 Inventories 503 — (14 ) (l) 489 Prepaid expenses and other assets 27 (3 ) — 24 Total current assets 758 17 (16 ) 759 Property, plant and equipment, net 1,660 — (480 ) (m) 1,180 Intangibles and other assets, net 97 — (30 ) (n) 67 Total assets $ 2,515 $ 17 $ (526 ) $ 2,006 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 103 $ 41 (b) $ — $ 144 Accrued liabilities 140 10 (c) 2 152 Current maturities of long-term debt 461 (443 ) (d) — 18 Total current liabilities 704 (392 ) 2 314 Long-term debt — 292 (e) — 292 Other liabilities 597 5 (f) 123 (o) 725 Liabilities subject to compromise 2,535 (2,535 ) (g) — — Total liabilities 3,836 (2,630 ) 125 1,331 Commitment and contingencies Equity: Predecessor preferred stock — — — — Successor preferred stock — — — — Predecessor common stock 1 (1 ) (h) — — Successor common stock — — (i) — — Treasury stock (1 ) 1 (h) — — Predecessor paid-in capital 322 (322 ) (h) — — Successor paid-in-capital — 665 (i) — 665 Warrants — 10 (j) — 10 Retained earnings (deficit) (1,541 ) 2,294 (k) (753 ) (p) — Accumulated other comprehensive loss (102 ) — 102 (p) — Total equity (deficit) (1,321 ) 2,647 (651 ) 675 Total liabilities and equity $ 2,515 $ 17 $ (526 ) $ 2,006 Reorganization Adjustments (a) Reflects payments and receipts recorded as of the Effective Date as follows (dollars in millions): Sources: Amount borrowed under the Credit Facilities $ 340 Less discount on Term Loan Facility (22 ) Total Sources 318 Uses: Repayment of DIP facility (principal and interest) (279 ) Payment of deferred financing costs on exit financing (8 ) Payment of professional fees (8 ) Aggregate settlement of unsecured claims (3 ) Total uses (298 ) Net source $ 20 (b) Represents recognition of accounts payable related to the cure of defaults for assumed executory contracts and leases. (c) Primarily represents recognition of accrued liabilities for success-based professional fees upon the Company’s emergence from its Chapter 11 Cases. (d) Represents the short-term portion of borrowing pursuant to the Term Loan Facility net of the payment of the principal balance of the NewPage DIP Facilities and settlement of the NewPage DIP Roll Up Loan (dollars in millions): Short-term portion of Term Loan $ 18 Payment of the NewPage DIP Facilities (278 ) Settlement of NewPage DIP Roll Up Loans (183 ) $ (443 ) (e) Represents the long-term portion of the Term Loan Facility and ABL Facility net of debt issuance costs as follows (dollars in millions): ABL Facility Borrowing $ 120 Term Loan Facility Borrowing 220 Debt Discount (22 ) Debt issuance costs (8 ) Less: Current Portion (18 ) Long-term Debt $ 292 (f) Primarily represents the reinstatement of certain pre-petition liabilities from LSTC. (g) LSTC under the Plan reflected the Company’s estimate of pre-petition liabilities and other expected allowed claims to be addressed by the Chapter 11 Cases. Debt amounts excluded related unamortized deferred financing costs, discounts/premiums and deferred gains which were written off to Reorganization items, net, in the Consolidated Statement of Operations prior to our emergence from bankruptcy. Amounts classified to LSTC did not include pre-petition liabilities that were fully collateralized by letters of credit or cash deposits. Borrowing under the NewPage DIP Roll-Up Notes represented borrowing during the pendency of the Company’s bankruptcy and were settled in exchange for stock as described above. Both the LSTC and NewPage DIP Roll-Up Notes were resolved and satisfied as of the Effective Date. This entry records the settlement of LSTC and the NewPage DIP Roll Up Loans (dollars in millions): Settlement of LSTC debt $ (2,324 ) Settlement of LSTC accrued interest (126 ) Settlement of LSTC accounts payable and accrued liabilities (85 ) Settlement of LSTC (2,535 ) Settlement of NewPage DIP Roll-Up Loans (principal and interest) (184 ) Reinstatement of certain liabilities from LSTC 49 Cash paid for the satisfaction of unsecured claims in aggregate settlement 3 Issuance of New Common Stock 665 Issuance of Plan Warrants 10 Net gain on settlement of LSTC and DIP Roll-Up Loans $ (1,992 ) (h) Reflects the cancellation of Predecessor equity. (i) Reflects the issuance of 34,390,643 shares of common stock, or 100% of the Company’s equity (subject to dilution by Plan Warrants issued to certain creditors and equity that may be issued to our employees under the management incentive plan) to existing creditors for the cancellation of indebtedness. (j) Reflects the issuance of Plan Warrants to purchase up to 1.8 million shares of Class A Common Stock at an initial exercise price of $27.86 issued to holder of first-lien secured debt holders in exchange for the cancellation of indebtedness. (k) Reflects the cumulative impact of the reorganization adjustment discussed above (dollars in millions): Gain on settlement of LSTC $ 1,992 Professional fees paid at emergence (8 ) Success fees accrued at emergence (12 ) Net gain on reorganization adjustments 1,972 Cancellation of Predecessor equity (1) 322 Net impact to Retained earnings (deficit) $ 2,294 (1) Net of recognition of previously unamortized stock compensation cost of the Predecessor. Fresh Start Adjustments (l) An adjustment of $14 million was recorded to decrease the book value of inventories to their estimated fair value as follows (dollars in millions): Replacement parts and other supplies $ (52 ) Work-in-process and finished goods 38 $ (14 ) • The fair value of work-in-process was determined based on the estimated selling price once completed less costs to complete the manufacturing effort, costs to sell including disposal and holding period costs, and a reasonable profit margin. • The fair value of finished goods inventory was determined based on the estimated price to sell including disposal and holding period costs and a reasonable profit margin on the selling and disposal. • The fair value of replacement parts and other supplies was determined based upon the cost approach. This approach considers the amount required to purchase a new asset of equal utility at current market prices, with adjustments in value for functional and economic obsolescence. Functional obsolescence is the loss in value of usefulness of an asset caused by inefficiencies or inadequacies of the asset itself, when compared to a more efficient or less costly replacement parts that a new technology has developed. Economic obsolescence is the loss in value of usefulness of an asset due to factors external to the asset such as the cost of materials, related demand for the product, increased competition and environmental regulations. (m) Represents the adjustment to reduce the net book value of Property, plant and equipment, net to fair value. The adjustment to the fair value of Property, plant and equipment, net was attributable to an adjustment of $382 million to machinery and equipment and an adjustment of $98 million to real estate. The fair value of the machinery and equipment was determined as follows: • The cost approach was utilized to determine the fair market value of machinery and equipment. This approach considers the amount required to construct or purchase a new asset of equal utility at current market prices, with adjustments in value for functional and economic obsolescence. Functional obsolescence is the loss in value of usefulness of an asset caused by inefficiencies or inadequacies of the property itself, when compared to a more efficient or less costly replacement property that a new technology has developed. Economic obsolescence is the loss in value of usefulness of an asset due to factors external to the asset such as the cost of materials, related demand for the product, increased competition and environmental regulations. • The sales approach was also used to determine the fair market value of machinery and equipment. The principal behind this approach is the value of the asset is equal to the market price of an asset with comparable features such as design, location, size, construction materials, use, capacity, specifications, operational characteristics, technology level, accessories and other features that may impact value or marketability. • The income approach was also used to determine the fair market value of machinery and equipment. The principal behind this approach is the value of the asset is equal to the earnings potential of the assets such as the net rental savings attributable to owning the asset. The adjustment related to real estate fair value was determined as follows: • The market approach was utilized to determine the fair market value of real estate. This approach considers comparable land sale data and land held for sale. Variances in market conditions at the time of sale, property characteristics and other relevant factors were considered and analyzed when necessary. • Land and building improvements were valued using the cost approach which considers the replacement cost of the improvement. (n) An adjustment of $30 million was recorded to decrease the book value to fair value of Intangibles and other assets, net to estimated fair value as follows (dollars in millions): Successor Trade Names $ 16 Successor Customer Relationships 26 Write-off of Predecessor intangible and other assets (72 ) $ (30 ) (o) Represents an adjustment to the fair value of pension and postretirement obligations totaling $135 million , off-set by the write-off of $8 million of tax liabilities resulting from the Reorganization Adjustments, and other adjustments to asset retirement obligations and workers’ compensation reserves. (p) Reflects the cumulative impact of fresh start adjustments as discussed above and shown in the table below and the elimination of the Predecessor accumulated other comprehensive income (dollars in millions): Accounts receivable, net $ (2 ) Inventory (14 ) Write down Property, plant and equipment, net (480 ) Record fair value of Intangibles and other assets (30 ) Accrued liabilities (2 ) Other long-term liabilities 4 Pension (135 ) Change in deferred taxes 8 Total loss recorded as a result of Fresh Start Accounting (651 ) Elimination of Predecessor accumulated other comprehensive loss (102 ) Net impact on Retained earnings (deficit) $ (753 ) Contractual Interest Effective January 26, 2016, Verso discontinued recording interest expense on outstanding pre-petition debt classified as LSTC. The table below shows contractual interest amounts for debt classified as LSTC calculated in accordance with the respective agreements without giving effect to any penalties as a result of the default on such agreements, which are amounts due under the contractual terms of the outstanding debt. Interest expense reported in the Consolidated Statement of Operations for the period January 1, 2016 through July 14, 2016 (Predecessor) does not include $123 million , per the table below, in contractual interest on pre-petition debt classified as LSTC, which was stayed by the Bankruptcy Court effective on the Petition Date. January 26, 2016 Through (Dollars in millions) July 14, 2016 VPH $ 98 NewPage Corp 25 Total contractual interest $ 123 Reorganization items, net Expenses and income directly associated with the Chapter 11 Cases are reported separately in the Consolidated Statements of Operations as Reorganization items, net as required by ASC 852, Reorganizations . Reorganization items, net include adjustments to reflect the carrying value of LSTC at their estimated allowed claim amounts, as such adjustments are determined. The following table presents reorganization items incurred in the period from January 26, 2016 through July 14, 2016 (Predecessor), as reported in the Consolidated Statement of Operations: January 26, 2016 Through (Dollars in millions) July 14, 2016 Net gain on settlement of LSTC and DIP Roll-Up Notes $ (1,992 ) Total loss recorded as a result of Fresh Start Accounting 651 Professional fees 52 DIP financing cost 22 Write-off of unamortized deferred financing costs, discounts/premiums and deferred gains (1) (81 ) Contract modifications and rejections, net 14 Other (4 ) Total reorganization items, net $ (1,338 ) (1) Primarily represents $116 million of non-cash reorganization gain off-set by non-cash reorganization expense of $35 million . The gains are recognized as the difference between the Petition Date carrying values of certain Verso notes previously recorded as a troubled debt restructuring and their par value (estimated allowed claim) for such debt. The expenses represent the write-off of debt issuance costs and other carrying value adjustments. For the period from January 26, 2016 through July 14, 2016 (Predecessor), the cash used in reorganization items included $28 million of professional fees and $22 million of financing costs in connection with the DIP Facilities. For the period from July 15, 2016 through December 31, 2016 (Successor), cash used in reorganization items included $24 million for professional fees. The cash outflow is included in Net cash provided by operating activities in our Consolidated Statements of Cash Flows for the periods presented. Common Stock Privileges The 33,366,784 shares of Class A Common Stock and 1,023,859 shares of Class B Common Stock issued in connection with the cancellation of all of the Company’s pre-petition indebtedness are identical and entitle the holders thereof the same rights and privileges, except that the Class B Common Stock was not qualified for listing and trading on the New York Stock Exchange. As of December 31, 2018, no shares of Class B Common Stock were outstanding. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On February 6, 2019, Verso Paper, as borrower, and Verso Holding entered into a second amendment, or the “ABL Amendment,” to the ABL Facility. As a result of the ABL Amendment, the ABL Facility provides for revolving commitments of $350 million , with a $100 million sublimit for letters of credit and a $35 million sublimit for swingline loans. Verso Paper may request one or more incremental revolving commitments in an aggregate principal amount up to the excess, if any, of (a) the greater of (i) $75 million and (ii) the excess of the borrowing base at such time over the amount of the revolving facility commitments at such time, over (b) the aggregate amount of all incremental revolving facility commitments established prior to such time under the ABL Facility; however, the lenders are not obligated to increase the revolving commitments upon any such request. Availability under the ABL Facility is subject to customary borrowing conditions. The ABL Facility will mature on February 6, 2024. As of February 15, 2019, Verso Paper had $35 million in borrowings outstanding under the ABL Facility. As a result of the ABL Amendment, outstanding borrowings under the ABL Facility will bear interest at an annual rate equal to, at the option of Verso Paper, either (i) a customary London interbank offered rate plus an applicable margin ranging from 1.25% to 1.75% or (ii) a customary base rate plus an applicable margin ranging from 0.25% to 0.75% , determined based upon the average excess availability under the ABL Facility. Verso Paper also is required to pay a commitment fee for the unused portion of the ABL Facility of 0.25% per year, based upon the average revolver usage under the ABL Facility. All obligations under the ABL Facility are unconditionally guaranteed by Verso Holding, and certain of the subsidiaries of Verso Paper. The security interest with respect to the ABL Facility consists of a first-priority lien on certain assets of Verso Paper, Verso Holding and the other guarantor subsidiaries, including accounts receivable, inventory, certain deposit accounts, securities accounts and commodities accounts. The ABL Facility contains financial covenants requiring us, among other things, to maintain a minimum fixed charge coverage ratio in certain circumstances and a maximum total net leverage ratio. The ABL Facility also contains restrictions, among other things and subject to certain exceptions, on our ability to incur debt or liens, pay dividends, repurchase equity interest, prepay indebtedness, sell or dispose of assets and make investments in or merge with another company. |
SUMMARY OF BUSINESS AND SIGNI_2
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business | 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 (see Note 18 ). Verso’s core business platform is as a producer of graphic papers, specialty papers, packaging papers and pulp. 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 | Basis of Presentation — On January 26, 2016, the “Petition Date,” Verso and substantially all of its direct and indirect subsidiaries, or the “Debtors,” filed voluntary petitions for relief, the “Chapter 11 Filings,” under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, or the “Bankruptcy Code,” in the United States Bankruptcy Court for the District of Delaware, or the “Bankruptcy Court.” On June 23, 2016, the Bankruptcy Court entered an order, the “Confirmation Order,” confirming Debtors’ First Modified Third Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code dated as of June 20, 2016, or the “Plan.” On July 15, 2016, or the “Effective Date,” the Plan became effective pursuant to its terms and the Debtors emerged from their Chapter 11 cases, or the “Chapter 11 Cases” (see Note 20 ). In accordance with the provisions of Financial Accounting Standards Board, or “FASB,” Accounting Standards Codification, or “ASC,” Topic 852, Reorganizations, and in conformity with ASC Topic 805 , Business Combinations, the Company adopted fresh start accounting upon emergence from their Chapter 11 Cases and became a new entity for financial reporting purposes as of July 15, 2016. References to “Successor” or “Successor Company” relate to Verso on and subsequent to July 15, 2016. References to “Predecessor” or “Predecessor Company” refer to Verso prior to July 15, 2016. For accounting purposes, all emergence related transactions of the Predecessor including the impact of the issuance of the Successor common stock and warrants and entering into the Credit Facilities (as defined in Note 8 ) were recorded as of July 14, 2016. Accordingly, the Consolidated Financial Statements for the Successor are not comparable to the Consolidated Financial Statements for the Predecessor. Also in connection with the adoption of fresh start accounting, Verso elected to make certain material accounting policy changes as described below. This report contains the Consolidated Financial Statements as of December 31, 2018 (Successor) and 2017 (Successor), for the year ended December 31, 2018 (Successor), for the year ended December 31, 2017 (Successor), for the period from January 1, 2016 to July 14, 2016 (Predecessor) and for the period from July 15, 2016 to December 31, 2016 (Successor). Variable interest entities for which Verso was the primary beneficiary are also consolidated (see Note 16 ). Intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, or “GAAP,” requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition — Verso generates revenue through product sales, and shipping terms generally indicate when the performance obligation has been fulfilled and control of products has been passed to the customer. Verso’s revenue transactions consist of a single performance obligation to transfer promised goods. Verso has pricing agreements with certain customers. These agreements usually define the mechanism for determining the sales price but do not impose a specific quantity on either party. Quantities to be delivered to the customer are determined at a point near the date of delivery through purchase orders or other written instructions Verso receives from the customer. Spot market sales are made through purchase orders or other written instructions. Revenue is recognized when a performance obligation has been fulfilled, which is typically when shipped from the mills or warehouses. For sales with shipping terms that transfer control at the destination point, revenue is recognized when the customer receives the goods and the performance obligation is complete. For sales with shipping terms that transfer control at the shipping point with Verso bearing responsibility for freight costs to the destination, Verso determined that a single performance obligation is fulfilled and revenue is recognized when the goods ship. Revenue is measured as the consideration expected to be received in exchange for transferring product. Verso reduces the revenue recognized for estimated returns and other customer credits, such as discounts and volume rebates, based on the expected value to be realized. 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 and terms of the arrangements. Revenues are adjusted at the earlier date of when the most likely amount of consideration expected to be received changes or as 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. Sales taxes collected from customers are excluded from revenues. Incidental costs that are immaterial within the context of the contract are expensed when incurred. |
Shipping and Handling Costs | Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold in the Consolidated Statements of Operations. When the sales price includes charges to customers for shipping and handling, such amounts are included in Net sales. |
Planned Maintenance Costs | Planned Major Maintenance Costs — Prior to the Effective Date, costs for planned major maintenance shutdowns were deferred and then expensed ratably over the period until the next major planned shutdown. Upon the Effective Date, costs for all repair and maintenance activities are expensed in the month that the related activity is performed, or goods received under the direct expense method of accounting. |
Successor Cost of products sold/ Selling, general and administrative expenses | Successor Cost of products sold/ Selling, general and administrative expenses — Certain centralized costs attributable to manufacturing overhead, including enterprise-wide human resources management, procurement and information systems support, presented in Selling, general and administrative expenses of the Predecessor are presented in Cost of products sold of the Successor. |
Environmental Costs and Obligations | Environmental Costs and Obligations — Costs associated with environmental obligations, such as remediation or closure costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental obligations are discounted to their present value when the timing of expected cash flows are reliably determinable. |
Equity Compensation | Equity Compensation — Verso accounts for equity awards in accordance with ASC Topic 718, Compensation – Stock Compensation . ASC Topic 718 requires employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at the grant date based on the fair value of the award. Verso uses the straight-line attribution method to recognize share-based compensation over the service period of the award. Restricted stock units vest over 1 to 4 years. Verso has elected to recognize forfeitures as an adjustment to compensation expense in the same period as they occur. |
Income Taxes | Income Taxes — Verso accounts for income taxes using the liability method pursuant to ASC Topic 740, Income Taxes . Under this method, Verso recognizes deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and reported amounts using enacted tax rates in effect for the year the differences are expected to reverse. Verso records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Verso evaluates uncertain tax positions annually and considers whether the amounts recorded for income taxes are adequate to address its tax risk profile. Verso analyzes the potential tax liabilities of specific transactions and tax positions based on management’s judgment as to the expected outcome. |
Earnings Per Share | Earnings Per Share — Verso computes earnings per share by dividing net income or net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income or net loss by the weighted average number of shares outstanding, after giving effect to potentially dilutive common share equivalents outstanding during the period. Potentially dilutive common share equivalents are not included in the computation of diluted earnings per share if they are anti-dilutive. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short maturity of these instruments. Verso determines the fair value of debt based on market information and a review of prices and terms available for similar obligations. See Note 4 , Note 8 , Note 11 and Note 20 for additional information regarding fair value. Verso uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities and disclosures. Fair value is generally defined as the exit price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties, other than in a forced or liquidation sale. The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: ▪ Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. ▪ Level 3: Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents can include highly liquid investments with a maturity of three months or less at the date of purchase. |
Accounts Receivable | Accounts Receivable — Verso maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. Verso manages credit risk related to trade accounts receivable by continually monitoring the creditworthiness of customers to whom credit is granted in the normal course of business |
Inventories and Replacement Parts and Other Supplies | Inventories and Replacement Parts and Other Supplies — Inventory values include all costs directly associated with manufacturing products such as materials, labor and manufacturing overhead. These values are presented at the lower of cost or net realizable value. Costs of raw materials, work-in-process and finished goods are determined using the first-in, first-out method. Replacement parts and other supplies are valued using the average cost method and are reflected in Inventories on the Consolidated Balance Sheet (see Note 3 ). |
Property, Plant, and Equipment | Property, Plant and Equipment — Property, plant and equipment is stated at cost, net of accumulated depreciation. Interest is capitalized on projects meeting certain criteria and is included in the cost of the assets. The capitalized interest is depreciated over the same useful lives as the related assets (see Note 5 ). Depreciation and amortization are computed using the straight-line method for all assets over the assets’ estimated useful lives. Estimated useful lives are as follows: (Years) Predecessor Successor Buildings and building improvements 20 - 40 20 - 40 Land improvements 20 10 - 20 Machinery and equipment 10 - 20 3 - 20 Furniture and office equipment 3 - 10 10 Computer hardware and software 3 - 6 3 - 7 Leasehold improvements Over the shorter of the lease term or the useful life of the improvements Over the shorter of the lease term or the useful life of the improvements |
Intangible Assets | Intangible Assets — Verso accounts for intangible assets in accordance with ASC Topic 350, Intangibles – Goodwill and Other . Intangible assets of the Predecessor consisted of indefinite-lived trademarks, customer-related intangible assets which were amortized over their estimated useful lives of approximately 20 to 25 years and patents which were amortized over their legal lives of 10 years . As part of fresh start accounting, Verso wrote-off the existing intangible assets and accumulated amortization of the Predecessor and recorded an adjustment of $30 million to reflect the fair value of the Intangibles and other assets, net, of the Successor (see Note 20 ). The intangible assets of the Successor are comprised of customer relationships with a useful life of 10 years and trademarks with a five -year useful life. Both are amortized on a straight-line basis. The fair value of trademarks was determined based on the Relief from Royalty method. Verso assumed a royalty rate of 0.25% and a five -year economic life for trademarks. The rate was based on analysis of market information. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that indicate that the carrying value of the assets may not be recoverable, as measured by comparing their net book value to the estimated undiscounted future cash flows generated by their use. Impaired assets are recorded at estimated fair value, determined principally using discounted cash flows. |
Deferred Issuance Costs | Deferred Issuance Costs — Debt issuance costs are recorded in Long-term debt as a reduction of the carrying amount of outstanding debt. Revolving credit facility debt issuance costs in excess of outstanding long-term debt are recorded in Intangibles and other assets, net. Debt issuance costs for term debt are amortized to interest expense using the effective interest method. Debt issuance costs for revolving debt are amortized to interest expense ratably over the life of the facility. |
Asset Retirement Obligations | Asset Retirement Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations , a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists. The liability is accreted over time and the asset is depreciated over its useful life. Asset retirement obligations under this standard relate primarily to closure and post-closure costs for landfills. Revisions to the liability could occur due to changes in the estimated costs or timing of closure or possible new federal or state regulations affecting the closure. |
Retirement Benefits | Retirement benefits — Retirement plans cover substantially all of Verso’s employees. The defined benefit plans are funded in conformity with the funding requirements of applicable government regulations. Unrecognized prior service costs and actuarial gains and losses are amortized on a straight-line basis over the estimated remaining service periods of employees. Certain employees are covered by defined contribution plans. The employer contributions to these plans are based on a percentage of employees’ compensation or employees’ contributions. |
Troubled Debt Restructuring | Troubled Debt Restructuring — The Predecessor accounted for a portion of its 11.75% Senior Secured Notes issued in 2012 and all of its 13% Second Priority Secured Notes and 16% Senior Subordinated Notes, both issued in 2015, in accordance with ASC Topic 470, Debt, by recording the value exchanged and amortizing the amount in excess of par over the life of the notes. In accordance with ASC Topic 470, debt is considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the lender makes concessions to the borrower that it would not otherwise consider for a non-troubled borrower. Modifications may include principal adjustments, interest rate adjustments, additional equity transfers, interest only payments for an extended period of time or protracted terms such as amortization and maturity beyond the customary length of time found in the normal market place (see Note 20 ). |
SUMMARY OF BUSINESS AND SIGNI_3
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents the revenue disaggregated by product included on the Consolidated Statement of Operations: Year Ended December 31, (Dollars in millions) 2018 Graphic papers $ 1,655 Specialty papers 821 Packaging papers 67 Pulp 139 Total Net sales $ 2,682 The following table presents the revenue disaggregated by sales channel included on the Consolidated Statement of Operations: Year Ended December 31, (Dollars in millions) 2018 Direct sales $ 1,510 Merchant sales 983 Broker sales 189 Total Net sales $ 2,682 |
Schedule of Estimated Useful Lives of Property, Plant, and Equipment | Estimated useful lives are as follows: (Years) Predecessor Successor Buildings and building improvements 20 - 40 20 - 40 Land improvements 20 10 - 20 Machinery and equipment 10 - 20 3 - 20 Furniture and office equipment 3 - 10 10 Computer hardware and software 3 - 6 3 - 7 Leasehold improvements Over the shorter of the lease term or the useful life of the improvements Over the shorter of the lease term or the useful life of the improvements |
Schedule of Asset Retirement Obligations Included in Other Liabilities | The following table presents activity related to asset retirement obligations for the periods presented. Long-term obligations are included in Other long-term liabilities and current portions are included in Accrued and other liabilities in the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Asset retirement obligations, beginning balance $ 14 $ 15 Settlement of existing liabilities — (1 ) Accretion expense 1 1 Adjustments to existing liabilities — (1 ) Asset retirement obligations, ending balance 15 14 Less: Current portion (1 ) (1 ) Non-current portion of asset retirement obligations, ending balance $ 14 $ 13 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for periods presented: (Dollars in millions) Accumulated other comprehensive loss as of December 31, 2015 - Predecessor $ (102 ) Amounts reclassified from Accumulated other comprehensive loss to Cost of products sold 1 Elimination of Predecessor accumulated other comprehensive loss 101 Balance - July 14, 2016 - Predecessor $ — Balance - July 15, 2016 - Successor $ — Pension and other postretirement liability adjustment, net 127 Net increase in other comprehensive income 127 Accumulated other comprehensive income as of December 31, 2016 - Successor 127 Pension and other postretirement liability adjustment, net 5 Net increase in other comprehensive income 5 Accumulated other comprehensive income as of December 31, 2017 - Successor 132 Pension and other postretirement liability adjustment, net (19 ) Reclassification of stranded tax effects (ASU 2018-02) 7 Net decrease in other comprehensive income (12 ) Accumulated other comprehensive income as of December 31, 2018 - Successor $ 120 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories by Major Category | (Dollars in millions) December 31, 2017 December 31, 2018 Raw materials $ 75 $ 88 Work-in-process 54 56 Finished goods 228 225 Replacement parts and other supplies 28 29 Inventories $ 385 $ 398 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant and equipment, net consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Land and land improvements $ 51 $ 47 Building and leasehold improvements 153 154 Machinery, equipment and other 1,028 1,085 Construction-in-progress 26 29 Property, plant and equipment, gross 1,258 1,315 Accumulated depreciation (196 ) (299 ) Property, plant and equipment, net $ 1,062 $ 1,016 |
Schedule of Depreciation and Capitalized Interest Costs | Interest costs capitalized and depreciation expense for the periods presented are as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Interest costs capitalized $ 1 $ 1 $ 1 $ 1 Depreciation expense 97 90 109 105 |
INTANGIBLES AND OTHER ASSETS (T
INTANGIBLES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangibles and Other Assets | Intangibles and other assets consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Intangible assets: Customer relationships, net of accumulated amortization of $4 million on December 31, 2017 and $6 million on December 31, 2018 $ 22 $ 20 Trademarks, net of accumulated amortization of $4 million on December 31, 2017 and $8 million on December 31, 2018 12 8 Other assets: Restricted cash 2 2 ABL Facility unamortized debt issuance cost, net — 2 Other 20 18 Intangibles and other assets, net $ 56 $ 50 |
Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization expense related to intangible assets for the periods presented is as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Customer Relationships $ 2 $ 1 $ 3 $ 2 Trademarks — 1 3 4 |
Schedule of Estimated Future Amortization Expense for Intangible Assets Over Next Five Years | The estimated future amortization expense for intangible assets over the next five years is as follows: (Dollars in millions) 2019 $ 6 2020 6 2021 4 2022 3 2023 3 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | A summary of accrued liabilities is as follows: (Dollars in millions) December 31, 2017 December 31, 2018 Payroll and employee benefit costs $ 69 $ 74 Accrued sales rebates 24 16 Accrued energy 10 10 Accrued taxes - other than income 5 5 Restructuring costs 3 — Accrued professional and legal fees 1 1 Accrued interest 2 — Accrued freight 7 5 Other 8 7 Accrued liabilities $ 129 $ 118 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following table summarizes debt: Original (Dollars in millions) Maturity December 31, 2017 December 31, 2018 ABL Facility 7/14/2021 $ 65 $ — Term Loan Facility 10/14/2021 146 — Unamortized (discount) and debt issuance costs, net (21 ) — Less: Current portion (60 ) — Total long-term debt $ 130 $ — |
Interest Expense Related to Long Term Debt and Cash Interests Payments on Long-Term Debt | Amounts of interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented, are as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Interest expense (1) $ 39 $ 15 $ 30 $ 15 Cash interest paid 12 12 30 16 Debt issuance cost and discount amortization (2) 1 3 9 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 5 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 Consolidated Statements of Operations and in Amortization of debt issuance cost and discount on the Consolidated Statements of Cash Flows. |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities | Other long-term liabilities consist of the following: (Dollars in millions) December 31, 2017 December 31, 2018 Other employee related obligations $ 15 $ 15 Asset retirement obligations 14 13 Deferred compensation 3 3 Other 2 1 Other long-term liabilities $ 34 $ 32 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings (Loss) per Common Share | The following table provides a reconciliation of the basic and diluted loss or income per common share: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, July 14, 2016 December 31, 2016 2017 2018 Net income (loss) available to common shareholders (in millions) $ 1,178 $ (32 ) $ (30 ) $ 171 Weighted average common shares outstanding (in thousands) 81,450 34,391 34,432 34,514 Weighted average restricted shares (in thousands) 397 — — — Weighted average common shares outstanding - basic (in thousands) 81,847 34,391 34,432 34,514 Dilutive shares from stock awards (in thousands) — — — 582 Weighted average common shares outstanding - diluted (in thousands) 81,847 34,391 34,432 35,096 Basic income (loss) per share $ 14.39 $ (0.93 ) $ (0.87 ) $ 4.97 Diluted income (loss) per share $ 14.39 $ (0.93 ) $ (0.87 ) $ 4.88 |
RETIREMENT AND OTHER POSTRETI_2
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic postretirement cost (income) for the periods presented: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Components of net periodic postretirement cost (income): Service cost $ — $ — $ — $ — Interest cost 1 1 — — Amortization of actuarial loss — — — 1 Settlement — (25 ) (4 ) — Net periodic postretirement cost (income) $ 1 $ (24 ) $ (4 ) $ 1 The following tables summarize the components of net periodic pension cost (income) of Verso’s pension plans for the periods presented: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Components of net periodic pension cost (income): Service cost $ 9 $ 8 $ 16 $ 6 Interest cost 36 31 65 60 Expected return on plan assets (40 ) (39 ) (75 ) (73 ) Amortization of actuarial loss 1 — — — Net periodic pension cost (income) $ 6 $ — $ 6 $ (7 ) |
Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income | The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (gain) loss: (Dollars in millions) December 31, 2017 December 31, 2018 Amounts recognized in Accumulated other comprehensive (income) loss: Net actuarial (gain) loss, net of tax $ 1 $ — The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (income) loss: (Dollars in millions) December 31, 2017 December 31, 2018 Amounts recognized in Accumulated other comprehensive (income) loss: Net actuarial (gain) loss, net of tax $ (133 ) $ (120 ) |
Reconciliation of Plans' Benefit Obligation, Plan Assets and Funded Status | The following table sets forth a reconciliation of the other postretirement benefit obligations, plan assets and funded status as of the periods presented: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 7 $ 2 Plan amendments and settlements (7 ) — Benefits paid (3 ) (2 ) Actuarial (gain) loss 5 — Benefit obligation at end of period $ 2 $ — Change in Plan Assets: Plan assets at fair value at beginning of period $ — $ — Employer contributions 3 2 Benefits paid (3 ) (2 ) Plan assets at fair value at end of period $ — $ — Funded status at end of period $ (2 ) $ — The following table sets forth a reconciliation of the pension plans’ benefit obligations, plan assets and funded status for the periods presented: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 1,672 $ 1,753 Service cost 16 6 Interest cost 65 60 Actuarial (gain) loss 106 (136 ) Benefits paid (106 ) (93 ) Benefit obligation at end of period $ 1,753 $ 1,590 Change in Plan Assets: Plan assets at fair value at beginning of period $ 1,181 $ 1,296 Actual net return on plan assets 189 (84 ) Employer contributions 32 43 Benefits paid (106 ) (93 ) Plan assets at fair value at end of period $ 1,296 $ 1,162 Funded (underfunded) status at end of period $ (457 ) $ (428 ) |
Summary of Expected Future Pension Benefit Payments | The following table summarizes expected future pension benefit payments: (Dollars in millions) 2019 $ 89 2020 90 2021 94 2022 96 2023 97 2024-2028 506 |
Actuarial Assumptions Used In Defined Benefit Pension Plans | Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Included in the balance sheet: Other current liabilities $ (2 ) $ — Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate — % N/A Weighted average assumptions used to determine net periodic postretirement cost for the period: Discount rate 3.32 % N/A The actuarial assumptions used in the defined benefit pension plans were as follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, July 14, 2016 December 31, 2016 2017 2018 Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate 3.43 % 3.99 % 3.51 % 4.17 % Rate of compensation increase N/A N/A N/A N/A Weighted average assumptions used to determine net periodic pension cost for the period: Discount rate 4.17 % 3.43 % 3.98 % 3.51 % Rate of compensation increase N/A N/A N/A N/A Expected long-term return on plan assets 6.75 % 6.75 % 6.50 % 6.50 % |
Schedule of Pension Plan's Asset Allocation | The table below sets forth the fair values of investments, whose fair values are estimated at December 31, 2018, using the NAV per share derived by the investment managers as a practical expedient that have unfunded commitments and/or redemption restrictions. December 31, 2018 (Dollars in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Multi-strategy hedge fund (1) $ 1 $ — Annually 45 days Debt securities hedge fund (2) 66 — Semi-Annually 90 days Private equity (3) 11 2 N/A N/A Domestic equity funds - large cap (4) 49 — Monthly Various (5) $ 127 $ 2 (1) The fund invests in equities, equity-related instruments, fixed income and other debt-related instruments, real estate and other tangible assets, cash and cash equivalents, options, futures, swaps and other derivatives. The fund utilizes leverage in its investment program and includes both long and short positions. The fund’s investment objective is to generate consistent, absolute returns with low volatility. (2) The fund’s objective is to achieve superior risk-adjusted total returns by investing primarily in public and private non-investment grade and nonrated debt securities. Securities and other instruments acquired by the fund may include all types of debt obligations consisting primarily of public and private non-investment grade and nonrated debt, convertible bonds, preferred stock, bank debt, middle market loans and notes, trade claims, liquidating trusts, assignments, options swaps and any other securities with fixed-income characteristics, including, without limitation, debentures, notes deferred interest, pay-in-kind or zero coupon bonds, mortgages and mortgage-backed securities, collateralized mortgage obligations and other real estate-related instruments. The fund may also acquire common or preferred stock, warrants to purchase common or preferred stock and any other equity interests. (3) This category consists of several private equity funds some of which invest in limited partnerships which make equity-oriented investments in young, growing or emerging companies or entities. Additionally, the funds can invest in limited partnerships or other pooled investment vehicles which, in turn, make investments in management buy-in, management buy-out, leveraged buy-out, mezzanine, special situation and recapitalization transactions or other partnerships either directly or purchased in the secondary market, as well as investments in mezzanine, distressed and venture debt. These funds invest in a wide range of industries primarily in the United States. These investments cannot be redeemed. Instead, distributions are received when the underlying assets of the funds are liquidated. (4) This fund may invest and trade, on margin or otherwise, in common and preferred stock, futures, convertible securities, rights, warrants, bonds, corporate notes, debentures, U.S. and non U.S. government securities, U.S. government obligations, certificates of deposit, money market funds, cash instruments, U.S. equity index futures, volatility futures, exchange traded funds, exchange traded notes, swaps (including variance swaps), money market instruments and in rights and options, including “put” and “call” options or any combination thereof written by the fund or by others, on securities, commodity, volatility, or other indices, index futures, exchange traded funds, or exchange traded notes. (5) Withdrawals are permitted as of (i) the last business day of each calendar month if written notification is received by the managing member or International Fund Services (N.A.) L.L.C., a subsidiary of the administrator (the “Transfer Agent”) prior to the close of business on the fifth business day of the month, (ii) the last business day of the month following the month that written notification is received by the managing member or Transfer Agent if written notification is received by the Transfer Agent or the managing member after the fifth business day of the month, or (iii) at such times (with less or no prior written notice) as determined by the managing member in its sole discretion. The following table provides the pension plans’ asset allocation for the periods presented: Allocation of Plan Assets 2017 Allocation on 2018 Allocation on Targeted December 31, Targeted December 31, Allocation 2017 Allocation 2018 Fixed income: 35-55% 25-55% Cash and cash equivalent — % 1 % Fixed income funds 32 % 34 % Equity securities: 35-60% 35-65% Domestic equity funds - large cap 32 % 29 % Domestic equity funds - small cap 6 % 6 % International equity funds 20 % 20 % Other: 4-15% 4-15% Hedge funds, private equity, real estate, commodities 10 % 10 % |
Schedule of Pension Plans Assets at Fair Value | The following table sets forth by level, within the fair value hierarchy, the pension plans’ assets at fair value as of the periods presented: (Dollars in millions) Total Level 1 Level 2 Level 3 Assets Valued at NAV Practical Expedient December 31, 2018 Cash and cash equivalent $ 12 $ 12 $ — $ — $ — Fixed income funds 397 — 393 4 — Domestic equity funds - large cap 339 20 1 — 318 International equity funds 229 46 — — 183 Domestic equity funds - mid cap 1 — 1 — — Domestic equity funds - small cap 64 11 — — 53 Other (hedge funds, private equity, real estate, commodities) 120 — — — 120 Total assets at fair value $ 1,162 $ 89 $ 395 $ 4 $ 674 December 31, 2017 Fixed income funds $ 418 $ 54 $ — $ — $ 364 Domestic equity funds - large cap 412 22 — — 390 International equity funds 266 126 — — 140 Domestic equity funds - small cap 73 11 — — 62 Other (hedge funds, private equity, real estate, commodities) 127 4 — — 123 Total assets at fair value $ 1,296 $ 217 $ — $ — $ 1,079 |
Schedule of Changes in Fair Value of Plan Assets | The following table sets forth a summary of the changes in the fair value of the pension plan’s Level 3 assets, which are corporate debt securities, for the year ended December 31, 2018: (Dollars in millions) Fair Value Balance, January 1, 2018 $ — Purchase of corporate debt securities 4 Change in the fair value of corporate debt securities — Balance, December 31, 2018 $ 4 |
Defined Contribution Plan Disclosures | Expenses under these plans are presented below. Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Defined Contribution Plans Non-elective employer contribution $ 8 $ 8 $ 14 $ 14 Employer 401(k) matching contributions 8 6 14 14 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table summarizes activity for the time-based restricted stock units that occurred subsequent to the Effective Date: (In thousands, except per share amounts) Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value per Share Non-vested on July 15, 2016 — $ — Granted 162 11.19 Forfeited (2 ) 11.50 Non-vested at December 31, 2016 160 11.18 Granted 528 6.41 Vested (73 ) 10.81 Forfeited (32 ) 11.50 Non-vested at December 31, 2017 583 6.89 Granted 204 17.75 Vested (106 ) 7.42 Forfeited (3 ) 14.08 Non-vested at December 31, 2018 678 $ 10.04 |
Summary of Stock Option Plan Activity | The following table summarizes activity for the performance-based restricted stock units that occurred subsequent to the Effective Date: Restricted Stock Units Weighted Average Grant Date Fair Value per Share (In thousands, except per share amounts) Non-vested at December 31, 2017 — $ — Granted 640 22.25 Vested — — Forfeited (2 ) 18.22 Non-vested at December 31, 2018 638 $ 22.26 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Cumulative Charges Incurred Related to Restructuring | The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions as included in Restructuring charges on the Consolidated Statements of Operations for the Successor: July 15, 2016 Year Ended Year Ended Through December 31, December 31, Cumulative (Dollars in millions) December 31, 2016 2017 2018 Incurred Severance and benefit costs $ 5 $ — $ — $ 5 Write-off of purchase obligations and commitments 1 2 — 3 Other costs 3 3 2 8 Total restructuring costs $ 9 $ 5 $ 2 $ 16 The following table details the charges incurred as included in Restructuring charges on the Consolidated Statements of Operations for the Successor: July 15, 2016 Year Ended Year Ended Through December 31, December 31, Cumulative (Dollars in millions) December 31, 2016 2017 2018 Incurred Severance and benefit costs $ 2 $ 1 $ — $ 3 Write-off of purchase obligations — 2 (1 ) 1 Other costs — 1 — 1 Total restructuring costs $ 2 $ 4 $ (1 ) $ 5 The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions and primarily attributable to the paper segment as included in Restructuring charges on the Consolidated Statements of Operations for the Predecessor: January 1, 2016 Through Cumulative (Dollars in millions) July 14, 2016 Incurred Property and equipment $ 127 $ 127 Severance and benefit costs 10 26 Write-off of spare parts, inventory and other assets 9 12 Write-off of purchase obligations and commitments 2 3 Other costs 3 4 Total restructuring costs $ 151 $ 172 |
Schedule of Changes in Shutdown Liability | The following table details the changes in the restructuring reserve liabilities related to Corporate restructuring activities as included in Accrued liabilities on the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Beginning balance of reserve $ 3 $ 2 Severance and benefit costs 1 — Severance and benefit payments (4 ) — Purchase obligations 2 — Purchase obligation payments — (1 ) Purchase obligations adjustments — (1 ) Other costs 1 — Payments on other costs (1 ) — Ending balance of reserve $ 2 $ — The following table details the changes in the restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions as included in Accrued liabilities on the Consolidated Balance Sheets: Year Ended Year Ended December 31, December 31, (Dollars in millions) 2017 2018 Beginning balance of reserve $ 6 $ 1 Severance and benefit payments (5 ) (1 ) Purchase obligations 2 — Payments on purchase obligations (2 ) — Other costs 3 2 Payments on other costs (3 ) (2 ) Ending balance of reserve $ 1 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of the Components of the (Benefit) Provision for Income Taxes | The following is a summary of the components of the (benefit) provision for income taxes for Verso: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Current tax (benefit) provision: U.S. federal $ — $ — $ (6 ) $ — U.S. state and local — — — — Total current tax (benefit) provision — — (6 ) — Deferred tax (benefit) provision: U.S. federal 549 (19 ) 64 35 U.S. state and local 78 2 (1 ) (31 ) Changes to reorganization 8 — — — Total deferred tax (benefit) provision 635 (17 ) 63 4 Less: valuation allowance (635 ) 17 (63 ) (4 ) Allocation to Other comprehensive (income) loss — (20 ) (2 ) — Total income tax (benefit) provision $ — $ (20 ) $ (8 ) $ — |
Reconciliation of Income Tax Expense using the Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense | A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: Predecessor Successor January 1, 2016 July 15, 2016 Year Ended Year Ended Through Through December 31, December 31, (Dollars in millions) July 14, 2016 December 31, 2016 2017 2018 Tax at Statutory U.S. Rate of 21% in 2018 and 35% in 2017 and 2016 $ 412 $ (18 ) $ (13 ) $ 36 Increase resulting from: Reorganization costs and fresh start accounting (680 ) — — — Federal tax rate change — — 71 — Allocation to Other comprehensive (income) loss related to pension and other postretirement benefits. — (20 ) (2 ) — Federal net operating losses 818 — — — Other expenses — — — (1 ) Net permanent differences 138 (20 ) 69 (1 ) Valuation allowance (635 ) 17 (63 ) (4 ) Changes to reorganization 8 — — — State income taxes (benefit) 78 2 — (31 ) Other (1 ) (1 ) (1 ) — Total income tax (benefit) provision $ — $ (20 ) $ (8 ) $ — |
Summary of the Significant Components of Deferred Tax Position | The following is a summary of the significant components of the net deferred tax asset (liability): (Dollars in millions) December 31, 2017 December 31, 2018 Deferred tax assets: Net operating loss $ 72 $ 46 Credit carryforwards — 40 Pension 147 140 Compensation obligations 14 18 Inventory reserves/capitalization 26 23 Capitalized expenses 4 4 Other 10 8 Gross deferred tax assets 273 279 Less: valuation allowance (130 ) (126 ) Deferred tax assets, net of allowance $ 143 $ 153 Deferred tax liabilities: Property, plant and equipment $ (139 ) $ (149 ) Cancellation of debt income deferral (3 ) — Intangible assets — (3 ) Other (1 ) (1 ) Total deferred tax liabilities (143 ) (153 ) Net deferred tax liabilities $ — $ — |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollars in millions) Balance at December 31, 2016 3 Additions — Reductions (1 ) Balance at December 31, 2017 2 Additions — Reductions — Balance at December 31, 2018 $ 2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases | The following table represents the future minimum rental payments due under non-cancelable operating leases that have initial or remaining lease terms in excess of one year, as of December 31, 2018 . (Dollars in millions) 2019 6 2020 5 2021 2 2022 1 2023 — Thereafter — Total $ 14 |
Schedule of Unconditional Purchase Obligations | The following table summarizes the unconditional purchase obligations, as of December 31, 2018 . (Dollars in millions) 2019 47 2020 41 2021 10 2022 6 2023 6 Thereafter 61 Total $ 171 |
INFORMATION BY INDUSTRY SEGME_2
INFORMATION BY INDUSTRY SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Industry Segment Data | The following table summarizes the reportable segments for the period from January 1, 2016 through July 14, 2016 (Predecessor): January 1, 2016 Through (Dollars in millions) July 14, 2016 Net sales: Paper $ 1,349 Pulp 91 Intercompany eliminations (23 ) Total $ 1,417 Operating income (loss): Paper (1) $ (106 ) Pulp (17 ) Total $ (123 ) Depreciation and amortization: Paper $ 92 Pulp 8 Total $ 100 Capital expenditures: Paper $ 26 Pulp 5 Total $ 31 (1) Operating losses in the period from January 1, 2016 to July 14, 2016 (Predecessor), include $135 million of Restructuring charges attributable to the paper segment and $16 million of Restructuring charges related to the pulp segment. |
UNAUDITED QUARTERLY DATA (Table
UNAUDITED QUARTERLY DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | The quarterly financial data is as follows: (Dollars in millions, except per share amounts) First Second Third Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2017 2017 2017 2017 2018 2018 2018 2018 Summary Statement of Operations Data: Net sales $ 616 $ 585 $ 621 $ 639 $ 639 $ 644 $ 704 $ 695 Cost of products sold (exclusive of depreciation and amortization) 562 574 554 560 581 581 580 579 Depreciation and amortization 33 27 27 28 27 28 28 28 Selling, general and administrative expenses 33 24 24 26 25 28 25 24 Restructuring charges 2 2 4 1 1 1 — (1 ) Other operating (income) expense (1) — — — 1 — 2 (9 ) 2 Interest expense 9 10 10 9 11 6 15 1 Other (income) expense (2) (2 ) (3 ) (2 ) (14 ) (4 ) (3 ) (21 ) (24 ) Income tax expense (benefit) — — — (8 ) — — — — Net income (loss) (21 ) (49 ) 4 36 (2 ) 1 86 86 Share Data: Income (loss) per common share: Basic (3) $ (0.61 ) $ (1.42 ) $ 0.12 $ 1.04 $ (0.06 ) $ 0.03 $ 2.49 $ 2.49 Diluted (3) (0.61 ) (1.42 ) 0.12 1.04 (0.06 ) 0.03 2.45 2.44 Weighted average shares of common stock outstanding (thousands): Basic 34,391 34,416 34,456 34,465 34,465 34,506 34,562 34,553 Diluted 34,391 34,416 34,460 34,618 34,465 34,829 35,051 35,288 Closing price per share: High $ 8.27 $ 6.07 $ 5.38 $ 17.57 $ 17.94 $ 21.77 $ 33.67 $ 33.57 Low 5.70 3.37 3.86 5.15 14.46 15.92 20.36 21.02 Period-end 6.00 4.69 5.09 17.57 16.84 21.76 33.67 22.40 (1) Third quarter 2018 other operating income primarily associated with the realized gain on the sale of the Wickliffe Mill. (2) Third and fourth quarters 2018 other income primarily associated with countervailing duty settlement gains pursuant to the Settlement Agreement. (3) Earnings per share calculations for each fiscal quarter are based on the applicable weighted-average shares outstanding for each period, and the sum of the earnings per share for the four fiscal quarters may not necessarily be equal to the full year earnings per share amount. |
BANKRUPTCY RELATED DISCLOSURES
BANKRUPTCY RELATED DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reorganizations [Abstract] | |
Schedule of Fresh Start Adjustments | An adjustment of $14 million was recorded to decrease the book value of inventories to their estimated fair value as follows (dollars in millions): Replacement parts and other supplies $ (52 ) Work-in-process and finished goods 38 $ (14 ) Reflects payments and receipts recorded as of the Effective Date as follows (dollars in millions): Sources: Amount borrowed under the Credit Facilities $ 340 Less discount on Term Loan Facility (22 ) Total Sources 318 Uses: Repayment of DIP facility (principal and interest) (279 ) Payment of deferred financing costs on exit financing (8 ) Payment of professional fees (8 ) Aggregate settlement of unsecured claims (3 ) Total uses (298 ) Net source $ 20 Represents the long-term portion of the Term Loan Facility and ABL Facility net of debt issuance costs as follows (dollars in millions): ABL Facility Borrowing $ 120 Term Loan Facility Borrowing 220 Debt Discount (22 ) Debt issuance costs (8 ) Less: Current Portion (18 ) Long-term Debt $ 292 (Dollars in millions) Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 27 $ 20 (a) $ — $ 47 Accounts receivable, net 201 — (2 ) 199 Inventories 503 — (14 ) (l) 489 Prepaid expenses and other assets 27 (3 ) — 24 Total current assets 758 17 (16 ) 759 Property, plant and equipment, net 1,660 — (480 ) (m) 1,180 Intangibles and other assets, net 97 — (30 ) (n) 67 Total assets $ 2,515 $ 17 $ (526 ) $ 2,006 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 103 $ 41 (b) $ — $ 144 Accrued liabilities 140 10 (c) 2 152 Current maturities of long-term debt 461 (443 ) (d) — 18 Total current liabilities 704 (392 ) 2 314 Long-term debt — 292 (e) — 292 Other liabilities 597 5 (f) 123 (o) 725 Liabilities subject to compromise 2,535 (2,535 ) (g) — — Total liabilities 3,836 (2,630 ) 125 1,331 Commitment and contingencies Equity: Predecessor preferred stock — — — — Successor preferred stock — — — — Predecessor common stock 1 (1 ) (h) — — Successor common stock — — (i) — — Treasury stock (1 ) 1 (h) — — Predecessor paid-in capital 322 (322 ) (h) — — Successor paid-in-capital — 665 (i) — 665 Warrants — 10 (j) — 10 Retained earnings (deficit) (1,541 ) 2,294 (k) (753 ) (p) — Accumulated other comprehensive loss (102 ) — 102 (p) — Total equity (deficit) (1,321 ) 2,647 (651 ) 675 Total liabilities and equity $ 2,515 $ 17 $ (526 ) $ 2,006 An adjustment of $30 million was recorded to decrease the book value to fair value of Intangibles and other assets, net to estimated fair value as follows (dollars in millions): Successor Trade Names $ 16 Successor Customer Relationships 26 Write-off of Predecessor intangible and other assets (72 ) $ (30 ) This entry records the settlement of LSTC and the NewPage DIP Roll Up Loans (dollars in millions): Settlement of LSTC debt $ (2,324 ) Settlement of LSTC accrued interest (126 ) Settlement of LSTC accounts payable and accrued liabilities (85 ) Settlement of LSTC (2,535 ) Settlement of NewPage DIP Roll-Up Loans (principal and interest) (184 ) Reinstatement of certain liabilities from LSTC 49 Cash paid for the satisfaction of unsecured claims in aggregate settlement 3 Issuance of New Common Stock 665 Issuance of Plan Warrants 10 Net gain on settlement of LSTC and DIP Roll-Up Loans $ (1,992 ) Reflects the cumulative impact of the reorganization adjustment discussed above (dollars in millions): Gain on settlement of LSTC $ 1,992 Professional fees paid at emergence (8 ) Success fees accrued at emergence (12 ) Net gain on reorganization adjustments 1,972 Cancellation of Predecessor equity (1) 322 Net impact to Retained earnings (deficit) $ 2,294 (1) Net of recognition of previously unamortized stock compensation cost of the Predecessor. Reflects the cumulative impact of fresh start adjustments as discussed above and shown in the table below and the elimination of the Predecessor accumulated other comprehensive income (dollars in millions): Accounts receivable, net $ (2 ) Inventory (14 ) Write down Property, plant and equipment, net (480 ) Record fair value of Intangibles and other assets (30 ) Accrued liabilities (2 ) Other long-term liabilities 4 Pension (135 ) Change in deferred taxes 8 Total loss recorded as a result of Fresh Start Accounting (651 ) Elimination of Predecessor accumulated other comprehensive loss (102 ) Net impact on Retained earnings (deficit) $ (753 ) Represents the short-term portion of borrowing pursuant to the Term Loan Facility net of the payment of the principal balance of the NewPage DIP Facilities and settlement of the NewPage DIP Roll Up Loan (dollars in millions): Short-term portion of Term Loan $ 18 Payment of the NewPage DIP Facilities (278 ) Settlement of NewPage DIP Roll Up Loans (183 ) $ (443 ) |
Schedule of Contractual Interest | The table below shows contractual interest amounts for debt classified as LSTC calculated in accordance with the respective agreements without giving effect to any penalties as a result of the default on such agreements, which are amounts due under the contractual terms of the outstanding debt. Interest expense reported in the Consolidated Statement of Operations for the period January 1, 2016 through July 14, 2016 (Predecessor) does not include $123 million , per the table below, in contractual interest on pre-petition debt classified as LSTC, which was stayed by the Bankruptcy Court effective on the Petition Date. January 26, 2016 Through (Dollars in millions) July 14, 2016 VPH $ 98 NewPage Corp 25 Total contractual interest $ 123 |
Schedule of Reorganization items, net | The following table reconciles the equity value to the estimated reorganization value as of the Effective Date (dollars in millions): Value of Successor Stock $ 665 Add: Fair value of Plan Warrants 10 Equity Value 675 Add: Fair value of long-term debt 318 Add: Other non-interest bearing liabilities 1,021 Less: Debt issuance costs (8 ) Reorganization value of Successor assets $ 2,006 The following table presents reorganization items incurred in the period from January 26, 2016 through July 14, 2016 (Predecessor), as reported in the Consolidated Statement of Operations: January 26, 2016 Through (Dollars in millions) July 14, 2016 Net gain on settlement of LSTC and DIP Roll-Up Notes $ (1,992 ) Total loss recorded as a result of Fresh Start Accounting 651 Professional fees 52 DIP financing cost 22 Write-off of unamortized deferred financing costs, discounts/premiums and deferred gains (1) (81 ) Contract modifications and rejections, net 14 Other (4 ) Total reorganization items, net $ (1,338 ) (1) Primarily represents $116 million of non-cash reorganization gain off-set by non-cash reorganization expense of $35 million . The gains are recognized as the difference between the Petition Date carrying values of certain Verso notes previously recorded as a troubled debt restructuring and their par value (estimated allowed claim) for such debt. The expenses represent the write-off of debt issuance costs and other carrying value adjustments. |
SUMMARY OF BUSINESS AND SIGNI_4
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Revenue (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from External Customer [Line Items] | |
Net sales | $ 2,682 |
Direct sales | |
Revenue from External Customer [Line Items] | |
Net sales | 1,510 |
Merchant sales | |
Revenue from External Customer [Line Items] | |
Net sales | 983 |
Broker sales | |
Revenue from External Customer [Line Items] | |
Net sales | 189 |
Graphic papers | |
Revenue from External Customer [Line Items] | |
Net sales | 1,655 |
Specialty papers | |
Revenue from External Customer [Line Items] | |
Net sales | 821 |
Packaging papers | |
Revenue from External Customer [Line Items] | |
Net sales | 67 |
Pulp | |
Revenue from External Customer [Line Items] | |
Net sales | $ 139 |
SUMMARY OF BUSINESS AND SIGNI_5
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 15, 2016 | Jul. 14, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 579 | $ 580 | $ 581 | $ 581 | $ 560 | $ 554 | $ 574 | $ 562 | |||||||
Accounts receivable | 197 | 202 | $ 197 | $ 202 | |||||||||||
Concentration risk, Percentage | 28.00% | 29.00% | |||||||||||||
Allowance for doubtful accounts | 2 | $ 2 | |||||||||||||
Allowance for uncollectible accounts on receivables sold without recourse, factoring fees | 1 | 1 | |||||||||||||
Allowance for uncollectible accounts on receivables sold without recourse | 45 | $ 45 | |||||||||||||
Customer Related Intangibles | Minimum | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Finite-lived intangible assets, estimated useful lives (in years) | 20 years | ||||||||||||||
Customer Related Intangibles | Maximum | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Finite-lived intangible assets, estimated useful lives (in years) | 25 years | ||||||||||||||
Patents | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Finite-lived intangible assets, estimated useful lives (in years) | 10 years | ||||||||||||||
Customer Relationships | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Finite-lived intangible assets, estimated useful lives (in years) | 10 years | ||||||||||||||
Trademarks | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Finite-lived intangible assets, estimated useful lives (in years) | 5 years | ||||||||||||||
Intangibles and other assets | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Restricted cash | $ 2 | $ 2 | $ 2 | $ 2 | |||||||||||
Predecessor | 11.75% Senior Secured Notes - 2012 | Verso Paper Holdings LLC | 11.75% Senior Secured Notes | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Interest rate (percentage) | 11.75% | ||||||||||||||
Predecessor | 13% Second Priority Senior Secured Notes | Verso Paper Holdings LLC | 11.75% Senior Secured Notes | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Interest rate (percentage) | 13.00% | ||||||||||||||
Predecessor | 16% Senior Subordinated Notes | Verso Paper Holdings LLC | 11.38% Senior Subordinated Notes | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Interest rate (percentage) | 16.00% | ||||||||||||||
Fresh-Start Adjustments | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Intangibles and other assets, net | $ (30) | ||||||||||||||
Fresh-Start Adjustments | Predecessor | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Intangibles and other assets, net | $ 30 | ||||||||||||||
Market Approach Valuation Technique | Intangibles And Other Assets Net | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Fair Value Input, royalty rate | 0.25% | ||||||||||||||
Restricted Stock Units (RSUs) | Minimum | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Vesting period | 1 year | ||||||||||||||
Restricted Stock Units (RSUs) | Maximum | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Vesting period | 4 years | ||||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 11 | $ 22 | $ 26 |
SUMMARY OF BUSINESS AND SIGNI_6
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Detail) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2018 | |
Furniture and office equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Leasehold improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | Over the shorter of the term of the lease or the useful life of the improvements | |
Minimum | Buildings and building improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Minimum | Land Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Minimum | Machinery and equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Minimum | Computer hardware and software | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Maximum | Buildings and building improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 40 years | |
Maximum | Land Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Maximum | Machinery and equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Maximum | Computer hardware and software | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 7 years | |
Predecessor | Land Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Predecessor | Leasehold improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | Over the shorter of the term of the lease or the useful life of the improvements | |
Predecessor | Minimum | Buildings and building improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Predecessor | Minimum | Machinery and equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Predecessor | Minimum | Furniture and office equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Predecessor | Minimum | Computer hardware and software | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 3 years | |
Predecessor | Maximum | Buildings and building improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 40 years | |
Predecessor | Maximum | Machinery and equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 20 years | |
Predecessor | Maximum | Furniture and office equipment | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 10 years | |
Predecessor | Maximum | Computer hardware and software | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful life | 6 years |
SUMMARY OF BUSINESS AND SIGNI_7
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Asset Retirement Obligations Included in Other Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation - beginning balance | $ 15 | $ 14 |
Settlement of existing liabilities | (1) | 0 |
Accretion expense | 1 | 1 |
Adjustment to existing liabilities | (1) | 0 |
Asset retirement obligation - ending balance | 14 | 15 |
Less: Current portion | (1) | (1) |
Non-current portion of asset retirement obligations, ending balance | $ 13 | $ 14 |
SUMMARY OF BUSINESS AND SIGNI_8
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Stockholders' equity beginning of period | $ 675 | $ 746 | $ 770 | ||
Pension and other postretirement liability adjustment, net | 127 | (19) | 5 | ||
Net increase (decrease) in other comprehensive income | 127 | (12) | 5 | ||
Stockholders' equity end of period | 770 | $ 675 | 906 | 746 | |
Predecessor | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Stockholders' equity beginning of period | 675 | (1,183) | |||
Amounts reclassified from Accumulated other comprehensive loss to Cost of products sold | 1 | ||||
Elimination of Predecessor accumulated other comprehensive loss | 101 | ||||
Stockholders' equity end of period | 675 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Stockholders' equity beginning of period | 0 | 132 | 127 | ||
Stockholders' equity end of period | 127 | 0 | $ 120 | $ 132 | |
Accumulated Other Comprehensive Income (Loss) | Predecessor | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Stockholders' equity beginning of period | $ 0 | (102) | |||
Stockholders' equity end of period | $ 0 | ||||
Accounting Standards Update 2018-02 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Reclassification of stranded tax effect | $ 0 | ||||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Reclassification of stranded tax effect | $ 7 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Reclassification from AOCI to retained earnings, tax effect | $ 7 | ||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 1,126 | $ 2,321 | $ 2,250 | ||||||||||
Selling, general and administrative expenses | $ 24 | $ 25 | $ 28 | 25 | $ 26 | $ 24 | $ 24 | $ 33 | 53 | 102 | 107 | ||
Other (income) expense | $ (24) | $ (21) | $ (3) | $ (4) | $ (14) | $ (2) | $ (3) | $ (2) | (32) | $ (52) | (21) | ||
Predecessor | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 1,250 | ||||||||||||
Selling, general and administrative expenses | 96 | ||||||||||||
Other (income) expense | (2) | ||||||||||||
Previously Reported | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 1,098 | 2,237 | |||||||||||
Selling, general and administrative expenses | 49 | 106 | |||||||||||
Other (income) expense | 0 | (7) | |||||||||||
Previously Reported | Predecessor | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 1,249 | ||||||||||||
Selling, general and administrative expenses | 95 | ||||||||||||
Other (income) expense | 0 | ||||||||||||
Accounting Standards Update 2017-07 | Effect of Change Higher/(Lower) | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 28 | 13 | |||||||||||
Selling, general and administrative expenses | 4 | 1 | |||||||||||
Other (income) expense | $ (32) | $ (14) | |||||||||||
Accounting Standards Update 2017-07 | Effect of Change Higher/(Lower) | Predecessor | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Cost of products sold (exclusive of depreciation and amortization) | 1 | ||||||||||||
Selling, general and administrative expenses | 1 | ||||||||||||
Other (income) expense | $ (2) | ||||||||||||
Subsequent Event | Accounting Standards Update 2016-02 | Minimum | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Operating lease, right-of-use asset | $ 15 | ||||||||||||
Operating lease, liability | 15 | ||||||||||||
Subsequent Event | Accounting Standards Update 2016-02 | Maximum | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Operating lease, right-of-use asset | 25 | ||||||||||||
Operating lease, liability | $ 25 |
INVENTORIES (Detail)
INVENTORIES (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 88 | $ 75 |
Work-in-process | 56 | 54 |
Finished goods | 225 | 228 |
Replacement parts and other supplies | 29 | 28 |
Inventories | $ 398 | $ 385 |
DISPOSITIONS (Details)
DISPOSITIONS (Details) $ in Millions | Sep. 05, 2018USD ($) | Jul. 14, 2016USD ($) | Aug. 16, 2018USD ($) | Jan. 06, 2016USD ($)subsidiaryfacility |
Verso Wickliffe | ||||
Business Acquisition [Line Items] | ||||
Consideration for business sold | $ 16 | |||
Discontinued Operations, Disposed of by Sale | Verso Androscoggin Power LLC | ||||
Business Acquisition [Line Items] | ||||
Consideration for business sold | $ 62 | |||
Number of subsidiaries entered into an agreement to sell equity interest | subsidiary | 2 | |||
Number of facilities | facility | 4 | |||
Other Operating Income (Expense) | Discontinued Operations, Disposed of by Sale | Verso Wickliffe | ||||
Business Acquisition [Line Items] | ||||
Gain on disposition of business | $ 9 | |||
Predecessor | Other Operating Income (Expense) | Discontinued Operations, Disposed of by Sale | Verso Androscoggin Power LLC | ||||
Business Acquisition [Line Items] | ||||
Gain on sale of fixed assets | $ 55 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT (Detail) - USD ($) $ in Millions | Jul. 14, 2016 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||||
Land and land improvements | $ 47 | $ 51 | |||
Building and leasehold improvements | 154 | 153 | |||
Machinery, equipment and other | 1,085 | 1,028 | |||
Construction-in-progress | 29 | 26 | |||
Property, plant and equipment, gross | 1,315 | 1,258 | |||
Accumulated depreciation | (299) | (196) | |||
Property, plant and equipment, net | 1,016 | 1,062 | |||
Interest costs capitalized | $ 9 | $ 1 | 1 | 1 | |
Depreciation expense | $ 90 | $ 105 | $ 109 | ||
Predecessor | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest costs capitalized | $ 1 | ||||
Depreciation expense | $ 97 |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Capital expenditures incurred but not yet paid | $ 6 | $ 7 | $ 8 | |||||||||||
Government grant | 4 | |||||||||||||
Restructuring charges | $ (1) | $ 0 | $ 1 | $ 1 | $ 1 | $ 4 | $ 2 | $ 2 | 11 | 1 | 9 | |||
Accelerated depreciation | 6 | $ 43 | ||||||||||||
Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $ 9 | 2 | $ 5 | |||||||||||
Accelerated depreciation | $ 6 | $ 43 | ||||||||||||
Predecessor | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Capital expenditures incurred but not yet paid | $ 8 | |||||||||||||
Restructuring charges | 151 | |||||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | 151 | |||||||||||||
Facility Closing | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $ 160 | |||||||||||||
Property and equipment | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $ 127 | |||||||||||||
Maine Technology Institute | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Reduction of property, plant and equipment | $ 4 |
INTANGIBLES AND OTHER ASSETS (D
INTANGIBLES AND OTHER ASSETS (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other assets: | ||||
Restricted cash | $ 2 | $ 2 | ||
ABL Facility unamortized debt issuance cost, net | 2 | 0 | ||
Other | 18 | 20 | ||
Intangibles and other assets | 50 | 56 | ||
Customer Relationships | ||||
Intangibles and Other Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets | 20 | 22 | ||
Accumulated amortization, intangibles | 6 | 4 | ||
Other assets: | ||||
Amortization expense of intangibles | $ 1 | 2 | 3 | |
Trademarks | ||||
Intangibles and Other Assets by Major Class [Line Items] | ||||
Finite-lived intangible assets | 8 | 12 | ||
Accumulated amortization, intangibles | 8 | 4 | ||
Other assets: | ||||
Amortization expense of intangibles | $ 1 | $ 4 | $ 3 | |
Predecessor | Customer Relationships | ||||
Other assets: | ||||
Amortization expense of intangibles | $ 2 | |||
Predecessor | Trademarks | ||||
Other assets: | ||||
Amortization expense of intangibles | $ 0 |
INTANGIBLES AND OTHER ASSETS -
INTANGIBLES AND OTHER ASSETS - Estimated Future Amortization Expense for Intangible Assets Over Next Five Years (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Estimated future amortization expense | |
2,019 | $ 6 |
2,020 | 6 |
2,021 | 4 |
2,022 | 3 |
2,023 | $ 3 |
ACCRUED LIABILITIES (Detail)
ACCRUED LIABILITIES (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefit costs | $ 74 | $ 69 |
Accrued sales rebates | 16 | 24 |
Accrued energy | 10 | 10 |
Accrued taxes - other than income | 5 | 5 |
Restructuring costs | 0 | 3 |
Accrued professional and legal fees | 1 | 1 |
Accrued interest | 0 | 2 |
Accrued freight | 5 | 7 |
Other | 7 | 8 |
Accrued liabilities | $ 118 | $ 129 |
DEBT - Summary of Debt (Details
DEBT - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Unamortized (discount) and debt issuance costs, net | $ 0 | $ 21 |
Current maturities of long-term debt | 0 | (60) |
Long-term debt | 0 | 130 |
Secured Notes Due in 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 146 |
Revolving Credit Facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 65 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) $ in Millions | Jul. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Periodic payment | $ 4 | $ 9 | $ 18 |
Repayments of debt | 21 | 7 | |
Repayments of debt, net | 116 | 40 | |
Fair Value, Inputs, Level 2 | |||
Debt Instrument [Line Items] | |||
Fair value of the debt acquired | $ 0 | $ 212 |
DEBT - Interest Expense Related
DEBT - Interest Expense Related to Long-Term Debt and Cash Interests Payments on Long Term Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 0 | $ 15 | $ 30 | |
Cash interest paid | 12 | 16 | 30 | |
Amortization of debt issuance cost and discount | 3 | 19 | 9 | |
Predecessor | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 0 | |||
Cash interest paid | 12 | |||
Amortization of debt issuance cost and discount | 1 | |||
Interest Expense | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance cost and discount | $ 0 | $ 19 | $ 9 | |
Interest Expense | Predecessor | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance cost and discount | $ 0 |
DEBT - Credit facility (Details
DEBT - Credit facility (Details) - USD ($) | Jul. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 2,600,000,000 | ||
Fair value of debt | $ 318,000,000 | ||
Percentage of initial principal amount | 2.00% | ||
Liquidity requirement | $ 75,000,000 | ||
Prepayment penalty, percentage, for first two years | 2.00% | ||
Prepayment penalty, percentage, for two to four years | 1.00% | ||
Exit Financing Facility | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | $ 340,000,000 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility, remaining borrowing capacity | $ 283,000,000 | ||
Line of Credit | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | 0 | $ 65,000,000 | |
Line of Credit | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | 34,000,000 | ||
Line of Credit | Exit ABL Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Facility, outstanding | 120,000,000 | ||
Line of Credit | Exit Term Loan Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit facility, borrowing capacity | 375,000,000 | ||
Secured Notes Due in 2021 | |||
Line of Credit Facility [Line Items] | |||
Long-term debt | 0 | 146,000,000 | |
Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | 220,000,000 | ||
Current borrowing capacity | 198,000,000 | ||
Debt issuance costs | 22,000,000 | ||
Periodic payment | $ 4,000,000 | 9,000,000 | $ 18,000,000 |
Interest rate (percentage) | 12.47% | ||
LIBOR | Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 11.00% | ||
Base Rate | Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 10.00% | ||
Minimum | Line of Credit | Exit ABL Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.25% | ||
Minimum | LIBOR | Line of Credit | Exit ABL Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 1.25% | ||
Minimum | LIBOR | Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 0.25% | ||
Maximum | Line of Credit | Exit ABL Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.375% | ||
Maximum | LIBOR | Line of Credit | Exit ABL Facility | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 2.00% | ||
Maximum | LIBOR | Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 1.00% | ||
Successor | Line of Credit | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Interest rate | 3.13% | ||
Long-term debt | 0 | ||
Interest Rate Floor | LIBOR | Secured Notes Due in 2021 | Exit Term Loan Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate over the reference rate | 1.00% | ||
Verso Paper Holdings LLC | Line of Credit | Revolving Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Facility, outstanding | $ 0 | ||
Verso Paper Holdings LLC | Secured Notes Due in 2021 | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs | $ 8,000,000 |
DEBT - DIP Facility (Details)
DEBT - DIP Facility (Details) - USD ($) | Jul. 14, 2016 | Jan. 26, 2016 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 15, 2016 | Jan. 28, 2016 |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 2,600,000,000 | |||||||
Interest costs capitalized | $ 9,000,000 | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||
Carrying amount of equity component | 184,000,000 | $ 184,000,000 | ||||||
Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debtor-in-possession financing, amount arranged | $ 550,000,000 | |||||||
Secured Notes Due in 2021 | NewPage DIP Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debtor-in-possession financing, amount arranged | $ 175,000,000 | |||||||
Verso Paper Holdings LLC | Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 8,000,000 | |||||||
Revolving Credit Facilities | Verso Paper Holdings LLC | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit Facility, outstanding | 0 | |||||||
Verso DIP Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, fee on unused borrowings | 0.75% | |||||||
Verso DIP Facility | Federal Fund Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 0.50% | |||||||
Verso DIP Facility | One Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 1.00% | |||||||
Verso DIP Facility | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 1.50% | |||||||
Verso DIP Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 2.50% | |||||||
Verso DIP Facility | Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debtor-in-possession financing, amount arranged | $ 100,000,000 | |||||||
NewPage DIP ABL Facility | Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debtor-in-possession financing, amount arranged | $ 325,000,000 | |||||||
NewPage DIP Facility | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 8.50% | |||||||
NewPage DIP Facility | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
DIP financing, variable interest rate | 9.50% | |||||||
DIP financing, fee on unused borrowings | 0.375% | |||||||
NewPage DIP Facility | Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debtor-in-possession financing, amount arranged | $ 350,000,000 | |||||||
NewPage DIP Facility | NewPage Corp | ||||||||
Debt Instrument [Line Items] | ||||||||
Secured debt | $ 175,000,000 | |||||||
NewPage Corp | Revolving Credit Facilities | Verso Paper Holdings LLC | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 103,000,000 | |||||||
Predecessor | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest costs capitalized | 1,000,000 | |||||||
Predecessor | Verso Paper Holdings LLC | Secured Notes Due in 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 22,000,000 | $ 22,000,000 |
DEBT - Pre-petition Debt (Detai
DEBT - Pre-petition Debt (Details) - USD ($) $ in Millions | Jul. 15, 2016 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 26, 2016 |
Debt Instrument [Line Items] | ||||||
Extinguishment of debt | $ 0 | $ 2,500 | $ 0 | $ 0 | ||
Issuance of Successor common stock and stock purchase warrants (in shares) | 34,390,643 | |||||
Plan of reorganization, equity securities issued or to be issued, percentage | 100.00% | |||||
Variable Interest Entity, Primary Beneficiary | Long-term debt | Verso Paper Holdings LLC | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest entity, consolidated liabilities | $ 23 |
OTHER LIABILITIES (Detail)
OTHER LIABILITIES (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Other employee related obligations | $ 15 | $ 15 |
Asset retirement obligations | 13 | 14 |
Deferred compensation | 3 | 3 |
Other | 1 | 2 |
Other long-term liabilities | $ 32 | $ 34 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 15, 2016 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||||||||||
Basic (in shares) | 34,553,000 | 34,562,000 | 34,506,000 | 34,465,000 | 34,465,000 | 34,456,000 | 34,416,000 | 34,391,000 | 34,391,000 | 34,514,000 | 34,432,000 | ||
Number of shares called by warrants (shares) | 1,800,000 | ||||||||||||
Warrant | |||||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||||
Number of shares called by warrants (shares) | 1,800,000 | 1,800,000 | |||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 600,000 | 200,000 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income (loss) available to common shareholders | $ 86,000 | $ 86,000 | $ 1,000 | $ (2,000) | $ 36,000 | $ 4,000 | $ (49,000) | $ (21,000) | $ (32,000) | $ 171,000 | $ (30,000) | |
Weighted average common stock outstanding (in shares) | 34,391,000 | 34,514,000 | 34,432,000 | |||||||||
Weighted average restricted stock (in shares) | 0 | 0 | 0 | |||||||||
Weighted average common shares outstanding - basic (in shares) | 34,553,000 | 34,562,000 | 34,506,000 | 34,465,000 | 34,465,000 | 34,456,000 | 34,416,000 | 34,391,000 | 34,391,000 | 34,514,000 | 34,432,000 | |
Dilutive shares from stock awards (in shares) | 0 | 582,000 | 0 | |||||||||
Weighted average common shares outstanding - diluted (in shares) | 35,288,000 | 35,051,000 | 34,829,000 | 34,465,000 | 34,618,000 | 34,460,000 | 34,416,000 | 34,391,000 | 34,391,000 | 35,096,000 | 34,432,000 | |
Basic income (loss) (usd per share) | $ 2.49 | $ 2.49 | $ 0.03 | $ (0.06) | $ 1.04 | $ 0.12 | $ (1.42) | $ (0.61) | $ (0.93) | $ 4.97 | $ (0.87) | |
Diluted income (loss) (usd per share) | $ 2.44 | $ 2.45 | $ 0.03 | $ (0.06) | $ 1.04 | $ 0.12 | $ (1.42) | $ (0.61) | $ (0.93) | $ 4.88 | $ (0.87) | |
Predecessor | ||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income (loss) available to common shareholders | $ 1,178,000 | |||||||||||
Weighted average common stock outstanding (in shares) | 81,450,000 | |||||||||||
Weighted average restricted stock (in shares) | 397,000 | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 81,847,000 | |||||||||||
Dilutive shares from stock awards (in shares) | 0 | |||||||||||
Weighted average common shares outstanding - diluted (in shares) | 81,847,000 | |||||||||||
Basic income (loss) (usd per share) | $ 14.39 | |||||||||||
Diluted income (loss) (usd per share) | $ 14.39 |
RETIREMENT AND OTHER POSTRETI_3
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees covered, percentage | 68.00% | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution made by employer | $ 43,000,000 | $ 32,000,000 | ||
Expected cash contributions in 2019 | 37,000,000 | |||
Accumulated benefit obligation | 1,590,000,000 | 1,753,000,000 | ||
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution made by employer | 2,000,000 | 3,000,000 | ||
Settlement | $ 25,000,000 | $ 0 | $ 4,000,000 | |
Predecessor | Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution made by employer | $ 10,000,000 | $ 16,000,000 | ||
Predecessor | Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement | $ 0 |
RETIREMENT AND OTHER POSTRETI_4
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 8,000,000 | $ 6,000,000 | $ 16,000,000 | |
Interest cost | 31,000,000 | 60,000,000 | 65,000,000 | |
Expected return on plan assets | (39,000,000) | (73,000,000) | (75,000,000) | |
Amortization of actuarial loss | 0 | 0 | 0 | |
Net periodic pension cost | 0 | (7,000,000) | 6,000,000 | |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 0 | |
Interest cost | 1,000,000 | 0 | 0 | |
Amortization of actuarial loss | 0 | 1,000,000 | 0 | |
Settlement | (25,000,000) | 0 | (4,000,000) | |
Net periodic pension cost | $ (24,000,000) | $ 1,000,000 | $ (4,000,000) | |
Predecessor | Pension Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 9,000,000 | |||
Interest cost | 36,000,000 | |||
Expected return on plan assets | (40,000,000) | |||
Amortization of actuarial loss | 1,000,000 | |||
Net periodic pension cost | 6,000,000 | |||
Predecessor | Other Postretirement Benefits Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | |||
Interest cost | 1,000,000 | |||
Amortization of actuarial loss | 0 | |||
Settlement | 0 | |||
Net periodic pension cost | $ 1,000,000 |
RETIREMENT AND OTHER POSTRETI_5
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Detail of Prior Service Cost and Net Actuarial Loss Recognized In Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Amounts recognized in Accumulated other comprehensive loss: | ||
Net actuarial (gain) loss, net of tax | $ (120) | $ (133) |
Other Postretirement Benefits Plan | ||
Amounts recognized in Accumulated other comprehensive loss: | ||
Net actuarial (gain) loss, net of tax | $ 0 | $ 1 |
RETIREMENT AND OTHER POSTRETI_6
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Reconciliation of Projected Benefit Obligation and Funded Status (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of fiscal year | $ 1,296 | ||
Plan assets at fair value at end of fiscal year | 1,162 | $ 1,296 | |
Pension Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of fiscal year | 1,753 | 1,672 | |
Service cost | $ 8 | 6 | 16 |
Interest cost | 31 | 60 | 65 |
Actuarial (gain) loss | (136) | 106 | |
Benefits paid | (93) | (106) | |
Benefit obligation at end of fiscal year | 1,672 | 1,590 | 1,753 |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of fiscal year | 1,296 | 1,181 | |
Actual net return on plan assets | (84) | 189 | |
Employer contributions | 43 | 32 | |
Benefits paid | (93) | (106) | |
Plan assets at fair value at end of fiscal year | 1,181 | 1,162 | 1,296 |
Funded (underfunded) status at end of period | (428) | (457) | |
Other Postretirement Benefits Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of fiscal year | 2 | 7 | |
Service cost | 0 | 0 | 0 |
Interest cost | 1 | 0 | 0 |
Plan amendments and settlements | 0 | (7) | |
Actuarial (gain) loss | 0 | 5 | |
Benefits paid | (2) | (3) | |
Benefit obligation at end of fiscal year | 7 | 0 | 2 |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of fiscal year | 0 | 0 | |
Employer contributions | 2 | 3 | |
Benefits paid | (2) | (3) | |
Plan assets at fair value at end of fiscal year | $ 0 | 0 | 0 |
Funded (underfunded) status at end of period | $ 0 | $ (2) |
RETIREMENT AND OTHER POSTRETI_7
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Summary of Expected Future Pension Benefit Payments (Detail) - Pension Plan $ in Millions | Dec. 31, 2018USD ($) |
Expected future pension benefit payments: | |
2,019 | $ 89 |
2,020 | 90 |
2,021 | 94 |
2,022 | 96 |
2,023 | 97 |
2024-2028 | $ 506 |
RETIREMENT AND OTHER POSTRETI_8
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Actuarial Assumptions Used In Defined Benefit Pension Plans (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension benefit obligation | $ (428) | $ (457) | ||
Pension Plan | ||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||
Discount rate | 3.99% | 4.17% | 3.51% | |
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||
Discount rate | 3.43% | 3.51% | 3.98% | |
Expected long-term return on plan assets | 6.75% | 6.50% | 6.50% | |
Other Postretirement Benefits Plan | ||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||
Discount rate | 0.00% | |||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||
Discount rate | 3.32% | |||
Other Postretirement Benefits Plan | Other current liabilities | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension benefit obligation | $ 0 | $ (2) | ||
Predecessor | Pension Plan | ||||
Weighted average assumptions used to determine benefit obligations as of December 31: | ||||
Discount rate | 3.43% | |||
Weighted average assumptions used to determine net periodic pension cost for the fiscal year: | ||||
Discount rate | 4.17% | |||
Expected long-term return on plan assets | 6.75% |
RETIREMENT AND OTHER POSTRETI_9
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Pension Plan's Asset Allocation (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalent | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 1.00% | 0.00% |
Pension Plan | Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 34.00% | 32.00% |
Pension Plan | Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 29.00% | 32.00% |
Pension Plan | Domestic equity funds - small cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 6.00% | 6.00% |
Pension Plan | International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 20.00% | 20.00% |
Pension Plan | Hedge funds, private equity, real estate, commodities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 10.00% | 10.00% |
Pension Plan | Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 25.00% | 35.00% |
Pension Plan | Minimum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 35.00% | 35.00% |
Pension Plan | Minimum | Other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 4.00% | 4.00% |
Pension Plan | Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 55.00% | 55.00% |
Pension Plan | Maximum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 65.00% | 60.00% |
Pension Plan | Maximum | Other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted Allocation | 15.00% | 15.00% |
RETIREMENT AND OTHER POSTRET_10
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Pension Plan Assets at Fair Value (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | $ 1,162,000,000 | $ 1,296,000,000 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 89,000,000 | 217,000,000 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 395,000,000 | 0 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 4,000,000 | 0 |
Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 674,000,000 | 1,079,000,000 |
Cash and cash equivalent | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 12,000,000 | |
Cash and cash equivalent | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 12,000,000 | |
Cash and cash equivalent | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Cash and cash equivalent | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Cash and cash equivalent | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 397,000,000 | 418,000,000 |
Fixed income funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 54,000,000 |
Fixed income funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 393,000,000 | 0 |
Fixed income funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 4,000,000 | 0 |
Fixed income funds | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 364,000,000 |
Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 339,000,000 | 412,000,000 |
Domestic equity funds - large cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 20,000,000 | 22,000,000 |
Domestic equity funds - large cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 1,000,000 | 0 |
Domestic equity funds - large cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
Domestic equity funds - large cap | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 318,000,000 | 390,000,000 |
International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 229,000,000 | 266,000,000 |
International equity funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 46,000,000 | 126,000,000 |
International equity funds | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
International equity funds | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
International equity funds | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 183,000,000 | 140,000,000 |
Domestic equity funds - mid cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 1,000,000 | |
Domestic equity funds - mid cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Domestic equity funds - mid cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 1,000,000 | |
Domestic equity funds - mid cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Domestic equity funds - mid cap | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | |
Domestic equity funds - small cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 64,000,000 | 73,000,000 |
Domestic equity funds - small cap | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 11,000,000 | 11,000,000 |
Domestic equity funds - small cap | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
Domestic equity funds - small cap | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
Domestic equity funds - small cap | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 53,000,000 | 62,000,000 |
Other (hedge funds, private equity, real estate, commodities) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 120,000,000 | 127,000,000 |
Other (hedge funds, private equity, real estate, commodities) | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 4,000,000 |
Other (hedge funds, private equity, real estate, commodities) | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
Other (hedge funds, private equity, real estate, commodities) | Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | 0 | 0 |
Other (hedge funds, private equity, real estate, commodities) | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets at fair value | $ 120,000,000 | $ 123,000,000 |
RETIREMENT AND OTHER POSTRET_11
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - NAV Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | $ 1,162 | $ 1,296 |
Unfunded Commitments | 2 | |
Mutli-Strategy Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded Commitments | $ 0 | |
Redemption Notice Period | 45 days | |
Debt Securities Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded Commitments | $ 0 | |
Redemption Notice Period | 90 days | |
Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded Commitments | $ 2 | |
Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 339 | 412 |
Unfunded Commitments | 0 | |
Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 674 | 1,079 |
Assets Valued at NAV Practical Expedient | Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 318 | $ 390 |
Estimate of Fair Value Measurement [Member] | Assets Valued at NAV Practical Expedient | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 127 | |
Estimate of Fair Value Measurement [Member] | Assets Valued at NAV Practical Expedient | Mutli-Strategy Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 1 | |
Estimate of Fair Value Measurement [Member] | Assets Valued at NAV Practical Expedient | Debt Securities Hedge Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 66 | |
Estimate of Fair Value Measurement [Member] | Assets Valued at NAV Practical Expedient | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 11 | |
Estimate of Fair Value Measurement [Member] | Assets Valued at NAV Practical Expedient | Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | $ 49 |
RETIREMENT AND OTHER POSTRET_12
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Level 3 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Plan assets at fair value at beginning of fiscal year | $ 1,296 |
Plan assets at fair value at end of fiscal year | 1,162 |
Level 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Plan assets at fair value at beginning of fiscal year | 0 |
Plan assets at fair value at end of fiscal year | 4 |
Corporate Debt Securities | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Purchase of corporate debt securities | 4 |
Change in the fair value of corporate debt securities | $ 0 |
RETIREMENT AND OTHER POSTRET_13
RETIREMENT AND OTHER POSTRETIREMENT BENEFITS - Defined Contribution Plans (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan [Line Items] | ||||
Defined contribution plan expense | $ 8 | $ 14 | $ 14 | |
Employer matching contribution | $ 6 | $ 14 | $ 14 | |
Predecessor | ||||
Defined Contribution Plan [Line Items] | ||||
Defined contribution plan expense | $ 8 | |||
Employer matching contribution | $ 8 |
EQUITY - Additional Information
EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 22, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compound annual growth rate, period | 3 years | ||||
Options outstanding | 0 | ||||
Compensation expense | $ 8 | $ 1 | |||
Number of shares called by warrants (shares) | 1,800,000 | ||||
Reorganization plan, exercise price of warrants (usd per share) | $ 27.86 | ||||
Class of warrant or right, exercised | 0 | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (shares) | 3,620,067 | ||||
Common stock, reserved for future issuance (shares) | 3,400,000 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant (shares) | 200,000 | ||||
Unrecognized compensation cost | $ 13 | ||||
Vesting, outstanding, number (shares) | 1,300,000 | ||||
Period for recognition (in years) | 1 year 8 months 12 days | ||||
Officer and management non-qualified time - based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options forfeited (shares) | 8,617 | ||||
Predecessor | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized (shares) | 11,000,000 | ||||
Compensation expense | $ 4 | ||||
Predecessor | Non-employee director stock option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights | vested upon grant | ||||
Expiration period (in years) | 10 years | ||||
Predecessor | Officer and management non-qualified time - based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights | one to three years from the date of grant | ||||
Expiration period (in years) | 7 years | ||||
Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reorganization plan, exercise price of warrants (usd 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 (shares) | 400,000 | 200,000 | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 50.00% | ||||
Minimum | Officer and management non-qualified time - based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 150.00% | ||||
Maximum | Officer and management non-qualified time - based stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years |
EQUITY - Restricted Stock Units
EQUITY - Restricted Stock Units Activity (Details) - $ / shares shares in Thousands | Jul. 15, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Time-based Restricted Stock Units (RSUs) | ||||
Restricted Stock Units Outstanding | ||||
Options outstanding, beginning balance (shares) | 583 | 160 | ||
Grants in the period (shares) | 162 | 204 | 528 | |
Options forfeited (shares) | (2) | (3) | (32) | |
Options vested (shares) | (106) | (73) | ||
Options outstanding, ending balance (shares) | 0 | 160 | 678 | 583 |
Weighted Average Grant Date Fair Value per Share | ||||
Options outstanding, beginning balance (USD per share) | $ 6.89 | $ 11.18 | ||
Options granted (USD per share) | $ 11.19 | 17.75 | 6.41 | |
Options forfeited (USD per share) | 11.50 | 14.08 | 11.50 | |
Options vested (USD per share) | 7.42 | 10.81 | ||
Options outstanding, beginning balance (USD per share) | $ 0 | $ 11.18 | $ 10.04 | $ 6.89 |
Performance-based Restricted Stock Units (RSUs) | ||||
Restricted Stock Units Outstanding | ||||
Options outstanding, beginning balance (shares) | 0 | |||
Grants in the period (shares) | 640 | |||
Options forfeited (shares) | (2) | |||
Options vested (shares) | 0 | |||
Options outstanding, ending balance (shares) | 638 | 0 | ||
Weighted Average Grant Date Fair Value per Share | ||||
Options outstanding, beginning balance (USD per share) | $ 0 | |||
Options granted (USD per share) | 22.25 | |||
Options forfeited (USD per share) | 18.22 | |||
Options vested (USD per share) | 0 | |||
Options outstanding, beginning balance (USD per share) | $ 22.26 | $ 0 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jul. 14, 2016 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Management agreement expiration date | Jun. 1, 2017 | |
Management Agreement | ||
Related Party Transaction [Line Items] | ||
Management agreement expiration date | Aug. 1, 2018 | |
Management fee as a percentage of aggregate enterprise value | 1.00% | |
Purchases from Apollo | $ 0 | |
Predecessor | Apollo | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 15,000,000 | |
Account receivable from related party | $ 3,000,000 |
RESTRUCTURING CHARGES - Charges
RESTRUCTURING CHARGES - Charges Incurred Related to Shutdown (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | $ (1) | $ 0 | $ 1 | $ 1 | $ 1 | $ 4 | $ 2 | $ 2 | $ 11 | $ 1 | $ 9 | |
Facility Closing | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 2 | (1) | 4 | |||||||||
Cumulative Incurred | 5 | 5 | ||||||||||
Facility Closing | Severance and benefit costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 2 | 0 | 1 | |||||||||
Cumulative Incurred | 3 | 3 | ||||||||||
Facility Closing | Write-off of purchase obligations | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 0 | (1) | 2 | |||||||||
Cumulative Incurred | 1 | 1 | ||||||||||
Facility Closing | Other costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 0 | 0 | 1 | |||||||||
Cumulative Incurred | 1 | 1 | ||||||||||
Androscoggin - Wickliffe Capacity Reduction | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 9 | 2 | 5 | |||||||||
Cumulative Incurred | 16 | 16 | ||||||||||
Androscoggin - Wickliffe Capacity Reduction | Property and equipment | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | $ 127 | |||||||||||
Androscoggin - Wickliffe Capacity Reduction | Severance and benefit costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 5 | 0 | 0 | |||||||||
Cumulative Incurred | 5 | 5 | ||||||||||
Androscoggin - Wickliffe Capacity Reduction | Write-off of purchase obligations and commitments | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 1 | 0 | 2 | |||||||||
Cumulative Incurred | 3 | 3 | ||||||||||
Androscoggin - Wickliffe Capacity Reduction | Other costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | $ 3 | 2 | $ 3 | |||||||||
Cumulative Incurred | $ 8 | $ 8 | ||||||||||
Predecessor | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 151 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 151 | |||||||||||
Cumulative Incurred | 172 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | Property and equipment | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Cumulative Incurred | 127 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | Severance and benefit costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 10 | |||||||||||
Cumulative Incurred | 26 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | Write-off of spare parts, inventory and other assets | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 9 | |||||||||||
Cumulative Incurred | 12 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | Write-off of purchase obligations and commitments | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 2 | |||||||||||
Cumulative Incurred | 3 | |||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | Other costs | ||||||||||||
Restructuring and Related Cost [Abstract] | ||||||||||||
Restructuring charges | 3 | |||||||||||
Cumulative Incurred | $ 4 |
RESTRUCTURING CHARGES - Changes
RESTRUCTURING CHARGES - Changes in Restructuring Reserve Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring charges | $ (1) | $ 0 | $ 1 | $ 1 | $ 1 | $ 4 | $ 2 | $ 2 | $ 11 | $ 1 | $ 9 |
Facility Closing | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance of reserve | 2 | 3 | 2 | 3 | |||||||
Restructuring charges | 2 | (1) | 4 | ||||||||
Other costs | 0 | 1 | |||||||||
Ending balance of reserve | 0 | 2 | 3 | 0 | 2 | ||||||
Facility Closing | Severance and benefit costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Severance and benefit costs | 0 | 1 | |||||||||
Restructuring payments | 0 | (4) | |||||||||
Restructuring charges | 2 | 0 | 1 | ||||||||
Facility Closing | Purchase obligations | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | (1) | 0 | |||||||||
Restructuring charges | 0 | 2 | |||||||||
Facility Closing | Purchase obligations adjustments | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | (1) | 0 | |||||||||
Facility Closing | Other costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | 0 | (1) | |||||||||
Restructuring charges | 0 | 0 | 1 | ||||||||
Androscoggin - Wickliffe Capacity Reduction | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance of reserve | $ 1 | $ 6 | 1 | 6 | |||||||
Restructuring charges | 9 | 2 | 5 | ||||||||
Other costs | 2 | 3 | |||||||||
Ending balance of reserve | $ 0 | $ 1 | 6 | 0 | 1 | ||||||
Androscoggin - Wickliffe Capacity Reduction | Severance and benefit costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | (1) | (5) | |||||||||
Restructuring charges | 5 | 0 | 0 | ||||||||
Androscoggin - Wickliffe Capacity Reduction | Purchase obligations | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | 0 | (2) | |||||||||
Purchase obligations | 0 | 2 | |||||||||
Androscoggin - Wickliffe Capacity Reduction | Other costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | (2) | (3) | |||||||||
Restructuring charges | $ 3 | $ 2 | $ 3 |
RESTRUCTURING CHARGES (Narrativ
RESTRUCTURING CHARGES (Narrative) (Details) T in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 14, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 19, 2017T | |
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Decrease in production capacity | T | 200 | |||||||||||||
Accelerated depreciation | $ 6 | $ 43 | ||||||||||||
Restructuring charges | $ (1) | $ 0 | $ 1 | $ 1 | $ 1 | $ 4 | $ 2 | 2 | $ 11 | $ 1 | $ 9 | |||
Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Accelerated depreciation | $ 6 | $ 43 | ||||||||||||
Restructuring charges | $ 9 | $ 2 | $ 5 | |||||||||||
Predecessor | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $ 151 | |||||||||||||
Predecessor | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | 151 | |||||||||||||
Predecessor | Salary And Benefit | Androscoggin - Wickliffe Capacity Reduction | ||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||
Restructuring charges | $ 3 |
INCOME TAXES - Summary of Comp
INCOME TAXES - Summary of Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax (benefit) provision: | ||||||||||||
U.S. federal | $ 0 | $ 0 | $ (6) | |||||||||
U.S. state and local | 0 | 0 | 0 | |||||||||
Total current tax (benefit) provision | 0 | 0 | (6) | |||||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | (19) | 35 | 64 | |||||||||
U.S. state and local | 2 | (31) | (1) | |||||||||
Changes to reorganization | 0 | 0 | 0 | |||||||||
Total deferred tax (benefit) provision | (17) | 4 | 63 | |||||||||
Valuation allowance | 17 | (4) | (63) | |||||||||
Allocation to Other comprehensive (income) loss | (20) | 0 | (2) | |||||||||
Total income tax (benefit) provision | $ 0 | $ 0 | $ 0 | $ 0 | $ (8) | $ 0 | $ 0 | $ 0 | $ (20) | $ 0 | $ (8) | |
Predecessor | ||||||||||||
Current tax (benefit) provision: | ||||||||||||
U.S. federal | $ 0 | |||||||||||
U.S. state and local | 0 | |||||||||||
Total current tax (benefit) provision | 0 | |||||||||||
Deferred tax (benefit) provision: | ||||||||||||
U.S. federal | 549 | |||||||||||
U.S. state and local | 78 | |||||||||||
Changes to reorganization | 8 | |||||||||||
Total deferred tax (benefit) provision | 635 | |||||||||||
Valuation allowance | (635) | |||||||||||
Allocation to Other comprehensive (income) loss | 0 | |||||||||||
Total income tax (benefit) provision | $ 0 |
INCOME TAXES - Reconciliation
INCOME TAXES - Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective income tax reconciliation | |||||||||||||
Tax at Statutory U.S. Rate of 21% in 2018 and 35% in 2017 and 2016 | $ (18) | $ 36 | $ (13) | ||||||||||
Increase resulting from: | |||||||||||||
Reorganization costs and fresh start accounting | 0 | 0 | 0 | ||||||||||
Federal tax rate change | 0 | 0 | 71 | ||||||||||
Allocation to Other comprehensive (income) loss related to pension and other postretirement benefits. | (20) | 0 | (2) | ||||||||||
Federal net operating losses | 0 | 0 | 0 | ||||||||||
Other expenses | 0 | (1) | 0 | ||||||||||
Net permanent differences | (20) | (1) | 69 | ||||||||||
Valuation allowance | 17 | (4) | (63) | ||||||||||
Changes to reorganization | 0 | 0 | 0 | ||||||||||
State income taxes (benefit) | 2 | (31) | 0 | ||||||||||
Other | (1) | 0 | (1) | ||||||||||
Total income tax (benefit) provision | $ 0 | $ 0 | $ 0 | $ 0 | $ (8) | $ 0 | $ 0 | $ 0 | $ (20) | $ 0 | $ (8) | ||
Income tax rate, at federal statutory income tax rate, percent | 21.00% | 35.00% | 35.00% | ||||||||||
Predecessor | |||||||||||||
Effective income tax reconciliation | |||||||||||||
Tax at Statutory U.S. Rate of 21% in 2018 and 35% in 2017 and 2016 | $ 412 | ||||||||||||
Increase resulting from: | |||||||||||||
Reorganization costs and fresh start accounting | (680) | ||||||||||||
Federal tax rate change | 0 | ||||||||||||
Allocation to Other comprehensive (income) loss related to pension and other postretirement benefits. | 0 | ||||||||||||
Federal net operating losses | 818 | ||||||||||||
Other expenses | 0 | ||||||||||||
Net permanent differences | 138 | ||||||||||||
Valuation allowance | (635) | ||||||||||||
Changes to reorganization | 8 | ||||||||||||
State income taxes (benefit) | 78 | ||||||||||||
Other | (1) | ||||||||||||
Total income tax (benefit) provision | $ 0 |
INCOME TAXES - Summary of Sign
INCOME TAXES - Summary of Significant Components of Deferred Tax Position (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss | $ 46 | $ 72 |
Credit carryforwards | 40 | 0 |
Pension | 140 | 147 |
Compensation obligations | 18 | 14 |
Inventory reserves/capitalization | 23 | 26 |
Capitalized expenses | 4 | 4 |
Other | 8 | 10 |
Gross deferred tax assets | 279 | 273 |
Less: valuation allowance | (126) | (130) |
Deferred tax assets, net of allowance | 153 | 143 |
Deferred tax liabilities: | ||
Property, plant and equipment | (149) | (139) |
Cancellation of debt income deferral | 0 | (3) |
Intangible assets | (3) | 0 |
Other | (1) | (1) |
Total deferred tax liabilities | (153) | (143) |
Net deferred tax liabilities | $ 0 | $ 0 |
INCOME TAXES - Additional Info
INCOME TAXES - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Income tax expense, allocated to other comprehensive income | $ 0 | $ 2,000,000 | |
Federal income tax expense (benefit) | 0 | (2,000,000) | |
Valuation allowance for deferred tax assets | 126,000,000 | 130,000,000 | |
Decrease in valuation allowance for deferred tax assets | 4,000,000 | ||
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax | 140,000,000 | ||
Reduction in income tax benefits | 31,000,000 | ||
Credit carryforwards | 40,000,000 | 0 | |
Federal tax rate change | $ 0 | 0 | 71,000,000 |
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforward, net of attributable reductions | 196,000,000 | ||
Net operating loss carryforwards | 305,000,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 58,000,000 | ||
Alternative Minimum Tax Carryover | |||
Income Taxes [Line Items] | |||
Federal tax rate change | $ (6,000,000) |
INCOME TAXES - Unrecognized Ta
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, start | $ 2 | $ 3 |
Additions | 0 | 0 |
Reductions | 0 | (1) |
Unrecognized tax benefits, end | $ 2 | $ 2 |
NEW MARKET TAX CREDIT ENTITIES
NEW MARKET TAX CREDIT ENTITIES - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 29, 2010 | Dec. 31, 2010 | |
Variable Interest Entity [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 0 | $ 0 | $ 0 | |||
Verso Paper Holdings LLC | Variable Interest Entity, Primary Beneficiary | Chase NMTC Verso Investment Fund, LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Put option, anticipated exercise date | 2017-12 | |||||
Tax credit, recapture percentage | 100.00% | |||||
Chase NMTC Verso Investment Fund, LLC | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Tax credit, recapture period | 7 years | |||||
Other non-current liabilities | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable interest entity, consolidated liabilities | $ 8 | |||||
Other Nonoperating Income (Expense) | Verso Paper Holdings LLC | Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 8 | |||||
Related expenses | $ 1 | |||||
Predecessor | ||||||
Variable Interest Entity [Line Items] | ||||||
Renewable energy project amount | $ 43 | |||||
Gain (loss) on extinguishment of debt | $ 1,390 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Rent expense | $ 4 | $ 12 | $ 10 | |
Workforce, percentage represented by union | 70.00% | |||
Supply agreement, description | The agreement required Expera to pay us a variable charge for the paper purchased and a fixed charge for the availability of the paper machine | |||
Supply agreement, term | 12 years | |||
Supply agreement expiration date | Jun. 1, 2017 | |||
Latest Expiration | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Operating leases, expiration year | 2,023 | |||
Predecessor | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Rent expense | $ 6 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Rental Payments Due Under Non-Cancelable Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Future minimum operating lease payments due | |
2,019 | $ 6 |
2,020 | 5 |
2,021 | 2 |
2,022 | 1 |
2,023 | 0 |
Thereafter | 0 |
Total | $ 14 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Schedule of Unconditional Purchase Obligations (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Unconditional purchase obligations, rolling maturity | |
2,019 | $ 47 |
2,020 | 41 |
2,021 | 10 |
2,022 | 6 |
2,023 | 6 |
Thereafter | 61 |
Total | $ 171 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Severance (Details) - USD ($) $ in Millions | Jul. 05, 2018 | Dec. 31, 2018 |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, termination allowance, eligible pay period | 14 days | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, termination allowance, eligible pay period | 365 days | |
One to Ten Years | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, eligible pay, period | 7 days | |
One to Ten Years | Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, service, period | 1 day | |
Eleven Plus Years | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, additional eligible pay, period | 14 days | |
Eleven Plus Years | Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Severance, service, period | 11 years | |
Settlement Agreement | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Litigation settlement, amount awarded from other party | $ 42 | |
Settlement Agreement | Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Loss contingency, damages awarded, value | $ 42 |
INFORMATION BY INDUSTRY SEGME_3
INFORMATION BY INDUSTRY SEGMENT - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 14, 2016USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of reporting segments | segment | 2 | |||||||||||
Restructuring charges | $ (1) | $ 0 | $ 1 | $ 1 | $ 1 | $ 4 | $ 2 | $ 2 | $ 11 | $ 1 | $ 9 | |
Predecessor | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring charges | $ 151 | |||||||||||
Predecessor | Operating Income (Loss) | Paper | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring charges | 135 | |||||||||||
Predecessor | Operating Income (Loss) | Pulp | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring charges | $ 16 |
INFORMATION BY INDUSTRY SEGME_4
INFORMATION BY INDUSTRY SEGMENT - Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 695 | $ 704 | $ 644 | $ 639 | $ 639 | $ 621 | $ 585 | $ 616 | $ 1,224 | $ 2,682 | $ 2,461 | |
Operating income (loss) | (67) | 152 | (21) | |||||||||
Capital expenditures | $ 42 | $ 73 | $ 40 | |||||||||
Predecessor | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 1,417 | |||||||||||
Operating income (loss) | (123) | |||||||||||
Depreciation and amortization | 100 | |||||||||||
Capital expenditures | 31 | |||||||||||
Predecessor | Operating Segments | Paper | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,349 | |||||||||||
Operating income (loss) | (106) | |||||||||||
Depreciation and amortization | 92 | |||||||||||
Capital expenditures | 26 | |||||||||||
Predecessor | Operating Segments | Pulp | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 91 | |||||||||||
Operating income (loss) | (17) | |||||||||||
Depreciation and amortization | 8 | |||||||||||
Capital expenditures | 5 | |||||||||||
Predecessor | Intercompany eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ (23) |
UNAUDITED QUARTERLY DATA (Detai
UNAUDITED QUARTERLY DATA (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 695,000 | $ 704,000 | $ 644,000 | $ 639,000 | $ 639,000 | $ 621,000 | $ 585,000 | $ 616,000 | $ 1,224,000 | $ 2,682,000 | $ 2,461,000 |
Cost of products sold (exclusive of depreciation and amortization) | 579,000 | 580,000 | 581,000 | 581,000 | 560,000 | 554,000 | 574,000 | 562,000 | |||
Depreciation and amortization | 28,000 | 28,000 | 28,000 | 27,000 | 28,000 | 27,000 | 27,000 | 33,000 | 93,000 | 111,000 | 115,000 |
Selling, general and administrative expenses | 24,000 | 25,000 | 28,000 | 25,000 | 26,000 | 24,000 | 24,000 | 33,000 | 53,000 | 102,000 | 107,000 |
Restructuring charges | (1,000) | 0 | 1,000 | 1,000 | 1,000 | 4,000 | 2,000 | 2,000 | 11,000 | 1,000 | 9,000 |
Other operating (income) expense | 2,000 | (9,000) | 2,000 | 0 | 1,000 | 0 | 0 | 0 | 8,000 | (5,000) | 1,000 |
Interest expense | 1,000 | 15,000 | 6,000 | 11,000 | 9,000 | 10,000 | 10,000 | 9,000 | 17,000 | 33,000 | 38,000 |
Other (income) expense | (24,000) | (21,000) | (3,000) | (4,000) | (14,000) | (2,000) | (3,000) | (2,000) | (32,000) | (52,000) | (21,000) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | (8,000) | 0 | 0 | 0 | (20,000) | 0 | (8,000) |
Net income (loss) | $ 86,000 | $ 86,000 | $ 1,000 | $ (2,000) | $ 36,000 | $ 4,000 | $ (49,000) | $ (21,000) | $ (32,000) | $ 171,000 | $ (30,000) |
Income (loss) per common share: | |||||||||||
Basic (usd per share) | $ 2.49 | $ 2.49 | $ 0.03 | $ (0.06) | $ 1.04 | $ 0.12 | $ (1.42) | $ (0.61) | $ (0.93) | $ 4.97 | $ (0.87) |
Diluted (usd per share) | $ 2.44 | $ 2.45 | $ 0.03 | $ (0.06) | $ 1.04 | $ 0.12 | $ (1.42) | $ (0.61) | $ (0.93) | $ 4.88 | $ (0.87) |
Weighted average common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 34,553,000 | 34,562,000 | 34,506,000 | 34,465,000 | 34,465,000 | 34,456,000 | 34,416,000 | 34,391,000 | 34,391,000 | 34,514,000 | 34,432,000 |
Diluted (in shares) | 35,288,000 | 35,051,000 | 34,829,000 | 34,465,000 | 34,618,000 | 34,460,000 | 34,416,000 | 34,391,000 | 34,391,000 | 35,096,000 | 34,432,000 |
Closing price per share: | |||||||||||
High (usd per share) | $ 33.57 | $ 33.67 | $ 21.77 | $ 17.94 | $ 17.57 | $ 5.38 | $ 6.07 | $ 8.27 | |||
Low (usd per share) | 21.02 | 20.36 | 15.92 | 14.46 | 5.15 | 3.86 | 3.37 | 5.70 | |||
Period-end (usd per share) | $ 22.40 | $ 33.67 | $ 21.76 | $ 16.84 | $ 17.57 | $ 5.09 | $ 4.69 | $ 6 |
BANKRUPTCY RELATED DISCLOSURE_2
BANKRUPTCY RELATED DISCLOSURES - Chapter 11 Filing and Restructuring Support Agreement (Details) - USD ($) $ in Millions | Jul. 15, 2016 | Jan. 28, 2016 | Jan. 26, 2016 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,600 | ||
Secured Notes Due in 2021 | |||
Debt Instrument [Line Items] | |||
Debtor-in-possession financing, amount arranged | $ 550 | ||
Secured Notes Due in 2021 | Verso DIP Facility | |||
Debt Instrument [Line Items] | |||
Debtor-in-possession financing, amount arranged | $ 100 | ||
Secured Notes Due in 2021 | NewPage DIP ABL Facility | |||
Debt Instrument [Line Items] | |||
Debtor-in-possession financing, amount arranged | 325 | ||
Secured Notes Due in 2021 | NewPage DIP Facility | |||
Debt Instrument [Line Items] | |||
Debtor-in-possession financing, amount arranged | 350 | ||
NewPage DIP Facility | Secured Notes Due in 2021 | |||
Debt Instrument [Line Items] | |||
Debtor-in-possession financing, amount arranged | 175 | ||
Verso Paper Holdings LLC | Chase NMTC Verso Investment Fund, LLC | |||
Debt Instrument [Line Items] | |||
Long-term debt | 23 | ||
NewPage Corp | NewPage DIP Facility | |||
Debt Instrument [Line Items] | |||
Secured debt | $ 175 |
BANKRUPTCY RELATED DISCLOSURE_3
BANKRUPTCY RELATED DISCLOSURES - Plan of Reorganization and Emergence from Chapter 11 (Details) $ in Billions | Jul. 15, 2016USD ($)shares |
Reorganizations [Abstract] | |
Issuance of Successor common stock and stock purchase warrants (in shares) | shares | 34,390,643 |
Plan of reorganization, equity securities issued or to be issued, percentage | 100.00% |
Long-term debt | $ | $ 2.6 |
BANKRUPTCY RELATED DISCLOSURE_4
BANKRUPTCY RELATED DISCLOSURES - Plan Warrants and Performance Incentive Plan (Details) $ / shares in Units, $ in Millions | Jul. 15, 2016USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reorganization plan, number of shares called by warrants (shares) | shares | 1,800,000 |
Reorganization plan, exercise price of warrants (usd per share) | $ / shares | $ 27.86 |
Class of warrants and rights, anti-dilution adjustment, if stock issued below market price (percentage) | 95.00% |
Class of warrants and rights, anti-dilution adjustment, if stock issued below market price, consecutive trading days (days) | 10 days |
Fair value of plan warrants | $ | $ 10 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance shares authorized (shares) | shares | 3,620,067 |
Common Class A | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Reorganization plan, exercise price of warrants (usd per share) | $ / shares | $ 27.86 |
Verso Paper Holdings LLC | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 7 years |
Risk Free Interest Rate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value inputs | 1.00% |
Price Volatility | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value inputs | 37.00% |
Expected Dividend Rate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value inputs | 0.00% |
BANKRUPTCY RELATED DISCLOSURE_5
BANKRUPTCY RELATED DISCLOSURES - Reorganization Value (Details) - USD ($) $ in Millions | Jul. 15, 2016 | Apr. 27, 2016 |
Fresh Start Adjustment [Line Items] | ||
Reorganization Value | $ 2,000 | |
Plan of reorganization, equity securities issued or to be issued, percentage | 100.00% | |
Fair value of plan warrants | $ 10 | |
Value of Successor Stock | 665 | |
Add: Fair value of Plan Warrants | 10 | |
Total (deficit) equity | 675 | |
Add: Fair value of long-term debt | 318 | |
Add: Other non-interest bearing liabilities | 1,021 | |
Less: Debt issuance costs | (8) | |
Reorganization value of Successor assets | 2,006 | |
Fair value of debt | 318 | |
Proceeds from issuance of debt | $ 318 | |
Issuance of Successor common stock and stock purchase warrants (in shares) | 34,390,643 | |
Reorganization plan, number of shares called by warrants (shares) | 1,800,000 | |
Long-term debt | $ 2,600 | |
Debtor-in-possession financing, repayment of unsecured debt | 3 | |
DIP, repayment of liability | 279 | |
Minimum | ||
Fresh Start Adjustment [Line Items] | ||
Estimated enterprise value | $ 1,050 | |
Stockholder's equity, estimate | 675 | 675 |
Maximum | ||
Fresh Start Adjustment [Line Items] | ||
Estimated enterprise value | 1,100 | |
Stockholder's equity, estimate | 725 | $ 725 |
Exit Financing Facility | Line of Credit | ||
Fresh Start Adjustment [Line Items] | ||
Debt issuance costs | $ 22 | |
Level 3 | Long-term debt | Market Approach Valuation Technique | ||
Fresh Start Adjustment [Line Items] | ||
Market yield (in percentage) | 94.00% | |
Discount Rate | Discounted Cash Flow Analysis | ||
Fresh Start Adjustment [Line Items] | ||
Fair value inputs | 9.50% |
BANKRUPTCY RELATED DISCLOSURE_6
BANKRUPTCY RELATED DISCLOSURES - Fresh Start (Details) - USD ($) $ in Millions | Jul. 15, 2016 | Jul. 14, 2016 |
Current assets: | ||
Total assets | $ 2,006 | |
Postconfirmation, Stockholders' Equity [Abstract] | ||
Total (deficit) equity | 675 | |
Current liabilities: | ||
Long-term debt | 318 | |
Fresh Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
Value of Successor Stock | 665 | |
Warrants | 10 | |
Reorganization Adjustments | ||
Current assets: | ||
Cash and cash equivalents | $ 20 | |
Prepaid expenses and other assets | (3) | |
Total current assets | 17 | |
Total assets | 17 | |
Current liabilities: | ||
Accounts payable | 41 | |
Accrued liabilities | 10 | |
Current maturities of long-term debt | (443) | |
Total current liabilities | (392) | |
Long-term debt | 292 | |
Other liabilities | 5 | |
Liabilities subject to compromise | (2,535) | |
Total liabilities | (2,630) | |
Fresh Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
Predecessor common stock | (1) | |
Treasury stock | 1 | |
Value of Successor Stock | 665 | |
Warrants | 10 | |
Retained earnings (deficit) | 2,294 | |
Total (deficit) equity | 2,647 | |
Total liabilities and equity | 17 | |
Fresh-Start Adjustments | ||
Current assets: | ||
Accounts receivable, net | (2) | |
Inventories | (14) | |
Prepaid expenses and other assets | 0 | |
Total current assets | (16) | |
Property, plant, and equipment, net | (480) | |
Intangibles and other assets, net | (30) | |
Total assets | (526) | |
Current liabilities: | ||
Accrued liabilities | 2 | |
Total current liabilities | 2 | |
Long-term debt | 0 | |
Other liabilities | 123 | |
Total liabilities | 125 | |
Fresh Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
Value of Successor Stock | 0 | |
Retained earnings (deficit) | (753) | |
Accumulated other comprehensive loss | 102 | |
Total (deficit) equity | (651) | |
Total liabilities and equity | (526) | |
Predecessor | ||
Current assets: | ||
Cash and cash equivalents | 27 | |
Accounts receivable, net | 201 | |
Inventories | 503 | |
Prepaid expenses and other assets | 27 | |
Total current assets | 758 | |
Property, plant, and equipment, net | 1,660 | |
Intangibles and other assets, net | 97 | |
Total assets | 2,515 | |
Current liabilities: | ||
Accounts payable | 103 | |
Accrued liabilities | 140 | |
Current maturities of long-term debt | 461 | |
Total current liabilities | 704 | |
Long-term debt | 0 | |
Other liabilities | 597 | |
Liabilities subject to compromise | 2,535 | |
Total liabilities | 3,836 | |
Preconfirmation, Stockholders' Equity [Abstract] | ||
Predecessor common stock | 1 | |
Treasury stock | (1) | |
Predecessor Additional paid-in capital | 322 | |
Retained (deficit) earnings | (1,541) | |
Accumulated other comprehensive loss | (102) | |
Total (deficit) equity | (1,321) | |
Total liabilities and equity | 2,515 | |
Predecessor | Reorganization Adjustments | ||
Fresh Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
Value of Successor Stock | $ (322) | |
Predecessor | Fresh-Start Adjustments | ||
Current assets: | ||
Intangibles and other assets, net | 30 | |
Successor | ||
Current assets: | ||
Cash and cash equivalents | 47 | |
Accounts receivable, net | 199 | |
Inventories | 489 | |
Prepaid expenses and other assets | 24 | |
Total current assets | 759 | |
Intangibles and other assets, net | 67 | |
Property, plant, and equipment, net | 1,180 | |
Total assets | 2,006 | |
Postconfirmation, Current Liabilities [Abstract] | ||
Accounts payable | 144 | |
Accrued liabilities | 152 | |
Current maturities of long-term debt | 18 | |
Total current liabilities | 314 | |
Long-term debt | 292 | |
Other liabilities | 725 | |
Liabilities subject to compromise | 0 | |
Total liabilities | 1,331 | |
Postconfirmation, Stockholders' Equity [Abstract] | ||
Successor preferred stock | 0 | |
Successor common stock | 0 | |
Treasury stock | 0 | |
Additional paid-in capital | 665 | |
Warrants | 10 | |
Retained (deficit) earnings | 0 | |
Accumulated other comprehensive loss | 0 | |
Total (deficit) equity | 675 | |
Total liabilities and equity | $ 2,006 |
BANKRUPTCY RELATED DISCLOSURE_7
BANKRUPTCY RELATED DISCLOSURES - Reorganization Adjustment and Fresh-start Adjustment (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2016 | Dec. 31, 2016 | Jul. 14, 2016 |
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | $ 318 | ||
Issuance of Successor common stock and stock purchase warrants (in shares) | 34,390,643 | ||
Percentage of company’s equity to existing creditors for the cancellation of indebtedness | 100.00% | ||
Reorganization plan, exercise price of warrants (usd per share) | $ 27.86 | ||
Pension and other post retirement obligation | $ 135 | ||
Proceeds from issuance of debt | $ 318 | ||
Reorganization Adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | 20 | ||
Current maturities of long-term debt | (443) | ||
Long-term Debt | 292 | ||
Settlement of LSTC | (2,535) | ||
Retained earnings (deficit) | 2,294 | ||
Amount borrowed under the Credit Facilities | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | 340 | ||
Less discount on Term Loan Facility | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (22) | ||
Total Sources | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | 318 | ||
Repayment of DIP facility (principal and interest) | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (279) | ||
Payment of deferred financing costs on exit financing | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (8) | ||
Payment of professional fees | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (8) | ||
Aggregate settlement of unsecured claims | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (3) | ||
Total uses | |||
Fresh Start Adjustment [Line Items] | |||
Cash and cash equivalents | (298) | ||
Short-term portion of Term Loan | |||
Fresh Start Adjustment [Line Items] | |||
Current maturities of long-term debt | 18 | ||
Payment of the NewPage DIP Facilities | |||
Fresh Start Adjustment [Line Items] | |||
Current maturities of long-term debt | (278) | ||
Settlement of NewPage DIP Roll Up Loans | |||
Fresh Start Adjustment [Line Items] | |||
Current maturities of long-term debt | (183) | ||
Retained earnings (deficit) | (184) | ||
ABL Facility Borrowing | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | 120 | ||
Term Loan Facility Borrowing | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | 220 | ||
Debt Discount | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | (22) | ||
Debt issuance costs | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | (8) | ||
Less: Current Portion | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | (18) | ||
Settlement of LSTC debt | |||
Fresh Start Adjustment [Line Items] | |||
Settlement of LSTC | (2,324) | ||
Settlement of LSTC accrued interest | |||
Fresh Start Adjustment [Line Items] | |||
Settlement of LSTC | (126) | ||
Settlement of LSTC accounts payable and accrued liabilities | |||
Fresh Start Adjustment [Line Items] | |||
Settlement of LSTC | (85) | ||
Reinstatement of certain liabilities from LSTC | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 49 | ||
Cash paid for the satisfaction of unsecured claims in aggregate settlement | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 3 | ||
Issuance of New Common Stock | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 665 | ||
Issuance of Plan Warrants | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 10 | ||
Gain on settlement of LSTC | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 1,992 | ||
Professional fees paid at emergence | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (8) | ||
Success fees accrued at emergence | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (12) | ||
Net gain on reorganization adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 1,972 | ||
Cancellation of Predecessor equity | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 322 | ||
Fresh-Start Adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Long-term Debt | 0 | ||
Retained earnings (deficit) | (753) | ||
Inventories | (14) | ||
Property, plant, and equipment, net | (480) | ||
Intangibles and other assets, net | (30) | ||
Replacement parts and other supplies | |||
Fresh Start Adjustment [Line Items] | |||
Inventories | (52) | ||
Work-in-process and finished goods | |||
Fresh Start Adjustment [Line Items] | |||
Inventories | 38 | ||
Successor Trade Names | |||
Fresh Start Adjustment [Line Items] | |||
Intangibles and other assets, net | 16 | ||
Successor Customer Relationships | |||
Fresh Start Adjustment [Line Items] | |||
Intangibles and other assets, net | 26 | ||
Write-off of Predecessor intangible and other assets | |||
Fresh Start Adjustment [Line Items] | |||
Intangibles and other assets, net | (72) | ||
Accounts Receivable, net | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (2) | ||
Inventory | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (14) | ||
Write down Property, plant and equipment, net | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (480) | ||
Record fair value of Intangibles and Other Assets | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (30) | ||
Accrued Liabilities | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (2) | ||
Pension | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (135) | ||
Change in deferred taxes | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 8 | ||
Total loss recorded as a result of Fresh-Start Accounting | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (651) | ||
Elimination of Predecessor accumulated other comprehensive loss | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | (102) | ||
Other Long-Term Liabilities | |||
Fresh Start Adjustment [Line Items] | |||
Retained earnings (deficit) | 4 | ||
Machinery and equipment | Fresh-Start Adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Property, plant, and equipment, net | 382 | ||
Real Estate | Fresh-Start Adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Property, plant, and equipment, net | $ 98 | ||
Common Class A | |||
Fresh Start Adjustment [Line Items] | |||
Issuance of Successor common stock and stock purchase warrants (in shares) | 1,800,000 | 33,366,784 | |
Reorganization plan, exercise price of warrants (usd per share) | $ 27.86 | ||
Predecessor | Fresh-Start Adjustments | |||
Fresh Start Adjustment [Line Items] | |||
Intangibles and other assets, net | $ 30 |
BANKRUPTCY RELATED DISCLOSURE_8
BANKRUPTCY RELATED DISCLOSURES - Contractual Interest (Details) - Predecessor $ in Millions | 6 Months Ended |
Jul. 14, 2016USD ($) | |
Debt Instrument [Line Items] | |
Total contractual interest | $ 123 |
Verso Paper Holdings LLC | |
Debt Instrument [Line Items] | |
Total contractual interest | 98 |
NewPage Corp | |
Debt Instrument [Line Items] | |
Total contractual interest | $ 25 |
BANKRUPTCY RELATED DISCLOSURE_9
BANKRUPTCY RELATED DISCLOSURES - Reorganization Items (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Jul. 14, 2016 | Jul. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Net gain on settlement of LSTC and DIP Roll-Up Notes | $ (1,992) | ||||
Total loss recorded as a result of Fresh Start Accounting | 651 | ||||
Professional fees | 52 | ||||
Debtor-in-possession financing costs | $ 0 | 22 | $ 0 | $ 0 | |
Write-off of unamortized deferred financing costs, discounts/premiums, and deferred gains | (81) | ||||
Contract modifications and rejections, net | 14 | ||||
Other | (4) | ||||
Total reorganization items, net | $ 0 | (1,338) | $ 0 | $ 0 | |
Predecessor | |||||
Debt Instrument [Line Items] | |||||
Professional fees | 24 | ||||
Debtor-in-possession financing costs | $ 22 | 22 | |||
Total reorganization items, net | $ (1,338) | ||||
Reorganization gain | 116 | ||||
Reorganization loss | 35 | ||||
Professional fees paid | $ 28 |
BANKRUPTCY RELATED DISCLOSUR_10
BANKRUPTCY RELATED DISCLOSURES - Common Stock Privileges (Details) - shares | Jul. 15, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Fresh Start Adjustment [Line Items] | ||||
Issuance of Successor common stock and stock purchase warrants (in shares) | 34,390,643 | |||
Common Class A | ||||
Fresh Start Adjustment [Line Items] | ||||
Issuance of Successor common stock and stock purchase warrants (in shares) | 1,800,000 | 33,366,784 | ||
Common stock, shares outstanding (in shares) | 34,484,093 | 34,164,434 | ||
Common Class B | ||||
Fresh Start Adjustment [Line Items] | ||||
Issuance of Successor common stock and stock purchase warrants (in shares) | 1,023,859 | |||
Common stock, shares outstanding (in shares) | 0 | 291,039 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Feb. 06, 2019USD ($)incremental_revolving_commitments | Feb. 15, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 15, 2016USD ($) |
Subsequent Event [Line Items] | ||||
Long-term debt | $ 2,600,000,000 | |||
Line of Credit | ABL Amendment Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Credit facility, borrowing capacity | $ 350,000,000 | |||
Number of incremental revolving commitments | incremental_revolving_commitments | 1 | |||
Credit facility, maximum borrowing capacity, accordion feature | $ 75,000,000 | |||
Unused capacity, commitment fee percentage | 0.25% | |||
Line of Credit | ABL Amendment Facility | Minimum | LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Interest rate over the reference rate | 1.25% | |||
Line of Credit | ABL Amendment Facility | Minimum | Base Rate | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Interest rate over the reference rate | 0.25% | |||
Line of Credit | ABL Amendment Facility | Maximum | LIBOR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Interest rate over the reference rate | 1.75% | |||
Line of Credit | ABL Amendment Facility | Maximum | Base Rate | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Interest rate over the reference rate | 0.75% | |||
Line of Credit | ABL Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Long-term debt | $ 35,000,000 | |||
Line of Credit | Letter of Credit | ||||
Subsequent Event [Line Items] | ||||
Long-term debt | $ 34,000,000 | |||
Line of Credit | Letter of Credit | ABL Amendment Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Credit facility, borrowing capacity | $ 100,000,000 | |||
Line of Credit | Swingline Loans | ABL Amendment Facility | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Credit facility, borrowing capacity | $ 35,000,000 |
Uncategorized Items - vrs-20181
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (7,000,000) |