Billerud Americas (VRS) 10-Q 8 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 30, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	VRS
Current Fiscal Year End Date	--12-31
Entity Common Stock, Class A, Shares Outstanding		34,676,924
Entity Registrant Name	VERSO CORPORATION
Entity Central Index Key	0001421182
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 6	$ 26
Accounts receivable, net	201	197
Inventories	473	398
Prepaid expenses and other assets	9	12
Total current assets	689	633
Property, plant and equipment, net	1,007	1,016
Intangibles and other assets, net	70	50
Total assets	1,766	1,699
Current liabilities:
Accounts payable	210	215
Accrued and other liabilities	102	118
Total current liabilities	312	333
Long-term debt and finance leases	45	0
Pension benefit obligation	420	428
Other long-term liabilities	45	32
Total liabilities	822	793
Commitments and contingencies (Note 10)
Equity:
Preferred stock -- par value $0.01 (50,000,000 shares authorized, no shares issued)	0	0
Common stock -- par value $0.01 (210,000,000 Class A shares authorized with 34,569,917 shares issued and 34,484,093 outstanding on December 31, 2018 and March 31, 2019; 40,000,000 Class B shares authorized with no shares issued and outstanding on December 31, 2018 and March 31, 2019)	0	0
Treasury stock -- at cost (85,824 shares on December 31, 2018 and March 31, 2019)	(2)	(2)
Paid-in-capital	688	686
Retained earnings	138	102
Accumulated other comprehensive income	120	120
Total equity	944	906
Total liabilities and equity	$ 1,766	$ 1,699

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	85,824
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	34,569,917
Common stock, shares outstanding (in shares)	34,484,093	34,484,093
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	0
Common stock, shares outstanding (in shares)	0	0

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 639	$ 639
Costs and expenses:
Cost of products sold (exclusive of depreciation and amortization)	549	581
Depreciation and amortization	28	27
Selling, general and administrative expenses	24	25
Restructuring charges	0	1
Other operating (income) expense	1	0
Operating income (loss)	37	5
Interest expense	1	11
Other (income) expense	(1)	(4)
Income (loss) before income taxes	37	(2)
Income tax expense	1	0
Net income (loss)	$ 36	$ (2)
Income (loss) per common share:
Basic (usd per share)	$ 1.05	$ (0.06)
Diluted (usd per share)	$ 1.03	$ (0.06)
Weighted average common shares outstanding (in thousands):
Basic (shares)	34,484	34,465
Diluted (shares)	35,225	34,465

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 36	$ (2)
Defined benefit pension/other postretirement plans:
Amortization of net actuarial loss	0	1
Other comprehensive income (loss), net of tax	0	1
Comprehensive income (loss)	$ 36	$ (1)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFECIT) - USD ($) $ in Millions	Total	Class A	Class B	Common StockClass A	Common StockClass B	Treasury Stock	Paid-in-Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Income (Loss)
Common stock, shares, beginning of the period at Dec. 31, 2017				34,173,000	291,000
Stockholders' equity beginning of period at Dec. 31, 2017	$ 746			$ 0	$ 0	$ 0	$ 676	$ (62)	$ 132
Treasury stock, shares beginning of period at Dec. 31, 2017						9,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2)							(2)
Other comprehensive income (loss), net	1								1
Class B stock converted to Class A stock (in shares)				144,000	(144,000)
Class B stock converted to Class A stock	0
Equity award expense	1						1
Common stock, shares, end of the period at Mar. 31, 2018				34,317,000	147,000
Stockholders' equity end of period at Mar. 31, 2018	746			$ 0	$ 0	$ 0	677	(71)	140
Treasury stock, shares end of period at Mar. 31, 2018						9,000
Common stock, shares, beginning of the period at Dec. 31, 2018		34,569,917	0	34,570,000	0
Stockholders' equity beginning of period at Dec. 31, 2018	$ 906			$ 0	$ 0	$ (2)	686	102	120
Treasury stock, shares beginning of period at Dec. 31, 2018	85,824					86,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 36							36
Other comprehensive income (loss), net	0
Equity award expense	2						2
Common stock, shares, end of the period at Mar. 31, 2019		34,569,917	0	34,570,000	0
Stockholders' equity end of period at Mar. 31, 2019	$ 944			$ 0	$ 0	$ (2)	$ 688	$ 138	$ 120
Treasury stock, shares end of period at Mar. 31, 2019	85,824					86,000

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows From Operating Activities:
Net income (loss)	$ 36	$ (2)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	28	27
Net periodic pension cost (income)	0	(2)
Pension plan contributions	(8)	(6)
Amortization of debt issuance cost and discount	0	6
Equity award expense	2	1
(Gain) loss on sale or disposal of assets	1	0
Deferred taxes	(1)	0
Changes in assets and liabilities:
Accounts receivable, net	(4)	(14)
Inventories	(75)	(13)
Prepaid expenses and other assets	2	2
Accounts payable	(3)	22
Accrued and other liabilities	(26)	(13)
Net cash provided by (used in) operating activities	(46)	8
Cash Flows From Investing Activities:
Capital expenditures	(18)	(14)
Net cash provided by (used in) investing activities	(18)	(14)
Cash Flows From Financing Activities:
Borrowings on ABL Facility	150	147
Payments on ABL Facility	(105)	(95)
Payments on Term Loan Facility	0	(46)
Debt issuance costs	(1)	0
Net cash provided by (used in) financing activities	44	6
Change in Cash and cash equivalents and restricted cash	(20)	0
Cash and cash equivalents and restricted cash at beginning of period	28	9
Cash and cash equivalents and restricted cash at end of period	8	9
Noncash investing and financing activities:
Right-of-use assets recorded upon adoption of ASC 842	24	0
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 2	$ 0

SUMMARY OF BUSINESS AND BASIS O

SUMMARY OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION	SUMMARY OF BUSINESS AND BASIS OF PRESENTATION Nature of Business — Verso operates in the pulp and paper market segments. However, Verso determined that the operating income (loss) of the pulp segment is immaterial for disclosure purposes. Verso’s core business platform is as a producer of specialty papers, graphic 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 — This report contains the Unaudited Condensed Consolidated Financial Statements of Verso as of December 31, 2018 and March 31, 2019 and for the three months ended March 31, 2018 and March 31, 2019 . The December 31, 2018 Unaudited Condensed Consolidated Balance Sheet data was derived from audited financial statements, but it does not include all disclosures required annually by accounting principles generally accepted in the United States of America, or “GAAP.” In Verso’s opinion, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Verso’s respective financial conditions, results of operations and cash flows for the interim periods presented. Except as disclosed in the notes to the Unaudited Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Variable interest entities for which Verso is the primary beneficiary are consolidated. Intercompany balances and transactions are eliminated in consolidation. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. It is suggested that these financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Verso contained in its Annual Report on Form 10-K for the year ended December 31, 2018 .

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2019
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2019 ASC Topic 842, Leases . Verso adopted Accounting Standards Codification, or “ASC,” 842, Leases, on January 1, 2019. Verso has elected the package of practical expedients under the transition provisions of the new standard including not reassessing lease classification or whether expired or existing contracts contain leases and not revaluing initial direct costs for existing leases. Verso has not elected to adopt the hindsight practical expedient. Verso has elected to apply the optional transition method provided by Accounting Standards Update, or “ASU,” 2018-11, 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 its policies and procedures related to accounting for right-of-use assets, related 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. 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 that fixed payments, probable amounts the lessee will owe under a residual value guarantee and certain other payments be included in the valuation of these right-of-use assets and related liabilities. Variable payments are excluded from the calculation unless they are based on an index or rate. The adoption of this new standard resulted in an adjustment to recognize $24 million in right-of-use assets and related liabilities on the Unaudited Condensed Consolidated Balance Sheet associated with Verso’s leases at January 1, 2019 (see Note 5). The impact to the Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Cash Flows was de minimis. Accounting Guidance Not Yet Adopted ASC Topic 350, Intangible Assets - Goodwill & Other . In August 2018, the Financial Accounting Standards Board, or “FASB” issued ASU 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement that is a Service Contract (Topic 350), 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 annual and interim periods beginning after December 15, 2019 and early adoption is permitted at any interim period. Verso is currently evaluating the impact of this guidance.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION The following table presents the revenues disaggregated by product included on the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Graphic papers $ 421 $ 388 Specialty papers 175 194 Packaging papers 14 24 Pulp 29 33 Total Net sales $ 639 $ 639 The following table presents the revenue disaggregated by sales channel included on the Unaudited Condensed Consolidated Statement of Operations: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Direct sales $ 357 $ 392 Merchant sales 241 212 Broker sales 41 35 Total Net sales $ 639 $ 639

SUPPLEMENTAL FINANCIAL STATEMEN

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION	SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION Restricted Cash — As of December 31, 2018 and March 31, 2019 , $2 million of restricted cash was included in Intangibles and other assets, net on the Unaudited Condensed Consolidated Balance Sheets primarily related to asset retirement obligations in the state of Michigan. These cash deposits are required by the state and may only be used for the future closure of a landfill. For the three months ended March 31, 2018 and March 31, 2019 , Cash and cash equivalents in the Unaudited Condensed Consolidated Statements of Cash Flows include restricted cash of $2 million . Inventories — The following table summarizes inventories by major category: December 31, March 31, (Dollars in millions) 2018 2019 Raw materials $ 88 $ 110 Work-in-process 56 65 Finished goods 225 268 Replacement parts and other supplies 29 30 Inventories $ 398 $ 473 Property, plant and equipment — Depreciation expense for the three months ended March 31, 2018 and March 31, 2019 was $26 million and $27 million , respectively. Interest costs capitalized for the three months ended March 31, 2018 and March 31, 2019 were each zero . Capital expenditures unpaid as of March 31, 2018 and March 31, 2019 were each $5 million .

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	LEASES Verso adopted ASC 842, Leases, on January 1, 2019 (see Note 2). Verso leases certain office space, warehouses, vehicles and equipment under operating leases and certain equipment under finance leases. Leases with an initial term of 12 months or less, including any renewal options which are not reasonably certain of exercise in 12 months or less, are not recorded on the Unaudited Condensed Consolidated Balance Sheet. Verso recognized lease expense for these leases on a straight line basis over the lease term. Certain assets include renewal terms that generally range from 1 month to 1 year. Certain warehouse leases include only a payment for space utilized. These payments are not based on an index or rate and are therefore not used in the valuation of the right-of-use asset and lease obligations. The lease agreements do not include residual value guarantees. Leases do not include any restrictions or covenants. The following table details right-of-use assets and associated obligations for operating and finance leases included in the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2019. March 31, (Dollars in millions) Classification 2019 Assets: Operating lease assets Intangibles and other assets, net $ 21 Finance lease assets Property, plant and equipment, net (1) 2 Total leased assets $ 23 Liabilities Current liabilities: Operating Accrued and other liabilities $ 10 Finance Current maturities of long-term debt and finance leases — Non-current liabilities: Operating Other long-term liabilities 11 Finance Long-term debt and finance leases 2 Total lease liabilities $ 23 (1) Finance lease assets are recorded net of accumulated amortization. The following table details the costs associated with leasing transactions included on the Unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) Classification March 31, 2019 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 3 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 2 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 1 Finance lease cost: Amortization of leased assets Depreciation and amortization — Interest on lease liabilities Interest expense — Net lease cost $ 6 The following table details the future lease payments associated with leases commenced as of March 31, 2019, including amounts for any renewals that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases (1) Leases (2) Total 2019 (remaining) $ 8 $ — $ 8 2020 8 1 9 2021 4 — 4 2022 1 1 2 2023 1 — 1 Thereafter — — — Total lease payments $ 22 $ 2 $ 24 Interest expense (1 ) — (1 ) Present value of lease liabilities $ 21 $ 2 $ 23 (1) Operating lease payments include $5 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Finance lease payments exclude $2 million of legally binding lease payments for leases signed, but not yet commenced. 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. Amounts are based on ASC 840, Leases , that was superseded upon our adoption of ASC 842, Leases , on January 1, 2019. (Dollars in millions) 2019 $ 6 2020 5 2021 2 2022 1 2023 — Thereafter — Total $ 14 The following assumptions were used to determine the right-of-use assets and obligations associated with our leases as of March 31, 2019. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. March 31, 2019 Weighted-average remaining lease term (years): Operating leases 2.7 Finance leases 4.8 Weighted-average discount rate: Operating leases 4.3 % Finance leases 4.1 % The following table provides additional cash flow details associated with leases included in our Unaudited Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3 Operating cash flows from finance leases — Financing cash flows from finance leases —
LEASES	LEASES Verso adopted ASC 842, Leases, on January 1, 2019 (see Note 2). Verso leases certain office space, warehouses, vehicles and equipment under operating leases and certain equipment under finance leases. Leases with an initial term of 12 months or less, including any renewal options which are not reasonably certain of exercise in 12 months or less, are not recorded on the Unaudited Condensed Consolidated Balance Sheet. Verso recognized lease expense for these leases on a straight line basis over the lease term. Certain assets include renewal terms that generally range from 1 month to 1 year. Certain warehouse leases include only a payment for space utilized. These payments are not based on an index or rate and are therefore not used in the valuation of the right-of-use asset and lease obligations. The lease agreements do not include residual value guarantees. Leases do not include any restrictions or covenants. The following table details right-of-use assets and associated obligations for operating and finance leases included in the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2019. March 31, (Dollars in millions) Classification 2019 Assets: Operating lease assets Intangibles and other assets, net $ 21 Finance lease assets Property, plant and equipment, net (1) 2 Total leased assets $ 23 Liabilities Current liabilities: Operating Accrued and other liabilities $ 10 Finance Current maturities of long-term debt and finance leases — Non-current liabilities: Operating Other long-term liabilities 11 Finance Long-term debt and finance leases 2 Total lease liabilities $ 23 (1) Finance lease assets are recorded net of accumulated amortization. The following table details the costs associated with leasing transactions included on the Unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) Classification March 31, 2019 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 3 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 2 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 1 Finance lease cost: Amortization of leased assets Depreciation and amortization — Interest on lease liabilities Interest expense — Net lease cost $ 6 The following table details the future lease payments associated with leases commenced as of March 31, 2019, including amounts for any renewals that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases (1) Leases (2) Total 2019 (remaining) $ 8 $ — $ 8 2020 8 1 9 2021 4 — 4 2022 1 1 2 2023 1 — 1 Thereafter — — — Total lease payments $ 22 $ 2 $ 24 Interest expense (1 ) — (1 ) Present value of lease liabilities $ 21 $ 2 $ 23 (1) Operating lease payments include $5 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Finance lease payments exclude $2 million of legally binding lease payments for leases signed, but not yet commenced. 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. Amounts are based on ASC 840, Leases , that was superseded upon our adoption of ASC 842, Leases , on January 1, 2019. (Dollars in millions) 2019 $ 6 2020 5 2021 2 2022 1 2023 — Thereafter — Total $ 14 The following assumptions were used to determine the right-of-use assets and obligations associated with our leases as of March 31, 2019. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. March 31, 2019 Weighted-average remaining lease term (years): Operating leases 2.7 Finance leases 4.8 Weighted-average discount rate: Operating leases 4.3 % Finance leases 4.1 % The following table provides additional cash flow details associated with leases included in our Unaudited Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3 Operating cash flows from finance leases — Financing cash flows from finance leases —

DEBT

DEBT	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT	DEBT The following table summarizes debt: December 31, March 31, (Dollars in millions) Maturity 2018 2019 ABL Facility 2/6/2024 $ — $ 45 Unamortized debt issuance costs, net — (2 ) Total Long-term debt $ — $ 43 As of March 31, 2019 , the fair value of Verso’s total debt outstanding was $45 million . On July 15, 2016, VPH entered into a $375 million asset-based revolving credit facility, or the “ABL Facility,” and a $220 million senior secured term loan (with loan proceeds of $198 million after the deduction of the original issue discount of $22 million ), or the “Term Loan Facility,” and collectively termed the “Credit Facilities.” After the Internal Reorganization, Verso Paper became the borrower under the Credit Facilities. During the three months ended March 31, 2018 , Verso made a scheduled principal payment of $4 million and a voluntary principal prepayment of $21 million on the Term Loan Facility. In addition, as a result of the excess cash flow requirement in the Term Loan Facility, Verso was obligated to fund additional principal payments during the three months ended March 31, 2018 of $21 million . The Term Loan Facility was paid in full on September 10, 2018 . On February 6, 2019 , Verso Paper, as borrower, and Verso Holding entered into a second amendment to the ABL Facility, or the “ABL Amendment.” 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 greater of (i) $75 million and (ii) the excess of the borrowing base over the revolving facility commitments of $350 million ; 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 a result of the ABL Amendment, outstanding borrowings under the ABL Facility 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. The amount of borrowings and letters of credit available to Verso pursuant to the ABL Facility is limited to the lesser of $350 million or an amount determined pursuant to a borrowing base ( $344 million as of March 31, 2019 ). As of March 31, 2019 , the outstanding balance of the ABL Facility was $45 million , with $ 35 million issued in letters of credit and $264 million available for future borrowings, and the weighted-average interest rate on outstanding borrowings was 4.19% . Amounts included in interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Interest expense (1) $ 6 $ 1 Cash interest paid 5 1 Debt issuance cost and discount amortization (2) 6 — (1) Represents interest expense incurred on the Credit Facilities, exclusive of amortization of debt issuance cost and discount and inclusive of amounts capitalized. See Note 4 for additional information on capitalized interest costs. (2) Amortization of debt issuance cost and original issue discount, including the accelerated amortization associated with the early extinguishment of the Term Loan Facility, are included in Interest expense on the Unaudited Condensed Consolidated Statements of Operations and in amortization of debt issuance cost and discount on the Unaudited Condensed Consolidated Statements of Cash Flows.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE The following table provides a reconciliation of basic and diluted income (loss) per common share: Three Months Three Months Ended Ended March 31, 2018 March 31, 2019 Net income (loss) available to common shareholders (in millions) $ (2 ) $ 36 Weighted average common shares outstanding - basic (in thousands) 34,465 34,484 Dilutive shares from stock awards (in thousands) — 741 Weighted average common shares outstanding - diluted (in thousands) 34,465 35,225 Basic income (loss) per share $ (0.06 ) $ 1.05 Diluted income (loss) per share $ (0.06 ) $ 1.03 As a result of the net loss from continuing operations for the three months ended March 31, 2018 , 1.4 million restricted stock units as of March 31, 2018 were excluded from the calculation of diluted earnings per share as their inclusion would be anti-dilutive. As of March 31, 2019 , Verso has 1.8 million warrants outstanding at an exercise price of $27.86 (see Note 9). As a result of the exercise price of the warrants exceeding the average market price of Verso’s common stock during the three months ended March 31, 2018 and 2019 , 1.8 million warrants as of March 31, 2018 and March 31, 2019 were excluded from the calculations of diluted earnings per share as their inclusion would be anti-dilutive. No dividends were declared or paid in the periods presented.

RETIREMENT BENEFITS

RETIREMENT BENEFITS	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
RETIREMENT BENEFITS	RETIREMENT BENEFITS The following table summarizes the components of net periodic pension cost for the periods presented: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Service cost $ 1 $ 1 Interest cost 15 16 Expected return on plan assets (18 ) (17 ) Net periodic pension cost (income) $ (2 ) $ — Verso makes contributions to fund retirement benefits on an actuarially-determined basis, generally equal to the minimum amounts required by the Employee Retirement Income Security Act. Verso made contributions to the pension plans of $6 million and $8 million during the three months ended March 31, 2018 and March 31, 2019 , respectively. Verso expects to make additional cash contributions of at least $29 million to the pension plans in the remainder of 2019 .

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
EQUITY	EQUITY Equity Awards On March 28, 2019, Verso granted 0.2 million time-based restricted stock units to its executives and certain senior managers. The compensation committee also granted 0.2 million additional performance-based restricted stock units on March 28, 2019. The performance awards vest at December 31, 2021 subject to a comparison of annualized total shareholder return (“TSR”) of Verso to a select group of peer companies over a 3 -year period. 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 if Verso TSR is at least 5% during the performance period. The compensation expense associated with these awards was determined using the Monte Carlo valuation methodology. Verso recognized equity award expense of $1 million and $2 million for the three months ended March 31, 2018 and March 31, 2019 , respectively. As of March 31, 2019 , there was approximately $17 million of unrecognized compensation cost related to the 1.6 million non-vested restricted stock units, which is expected to be recognized over the weighted average period of 2.0 years. Time-based Restricted Stock Units Changes to non-vested time-based restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2018 678 $ 10.04 Granted 171 21.05 Vested — — Forfeited (6 ) 16.87 Non-vested at March 31, 2019 843 12.23 Performance-based Restricted Stock Units Changes to non-vested performance-based restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2018 638 $ 22.26 Granted 171 16.21 Vested — — Forfeited (6 ) 18.22 Non-vested at March 31, 2019 803 21.00 In April 2019, Verso recognized equity award expense of $3 million for the accelerated vesting of 233 thousand performance-based restricted stock units and 108 thousand time-based restricted stock units, net of cancellation of 124 thousand time-based restricted stock units, pursuant to a separation agreement, dated April 11, 2019, with the former Chief Executive Officer (see Note 11 for more information). 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 March 31, 2019 , no warrants have been exercised.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Represented Employees — Approximately 70% of Verso’s hourly workforce is represented by unions. On February 28, 2019, the United Steelworkers, or “USW,” represented employees at four Verso sites, voted to ratify a new Master Labor Agreement, or the “Agreement,” covering five USW locals. The Agreement, which was effective on March 1, 2019, will run for a period of three years with staggered expiration dates at each of the affected sites. In addition, two smaller local unions (the International Brotherhood of Electrical Workers and the International Brotherhood of Teamsters) at two of the mill locations also signed and will participate in the Agreement. In connection with the negotiations and ratification of the Agreement during the three months ended March 31, 2019, Verso recognized $6 million of expense for signing bonuses and for the settlement of various work arrangement issues, to represented employees covered by the Agreement, which was reported in cost of products sold. Verso continues to negotiate with four smaller trade unions at two of the sites while continuing to work under the terms and conditions of their expired agreements. 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 Unaudited Condensed Consolidated Financial Statements.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT Departure of Chief Executive Officer Effective as of April 5, 2019, B. Christopher DiSantis ceased being Chief Executive Officer and a member of Verso’s Board of Directors. In connection with Mr. DiSantis’ departure from Verso, Verso entered into a Separation Agreement and General Release with Mr. DiSantis (the “Separation Agreement”), dated April 11, 2019, consistent with Mr. DiSantis’ employment contract. Pursuant to the Separation Agreement, Mr. DiSantis agreed to release certain claims he may have against Verso and other released parties and will receive certain payments from Verso, including (i) accrued obligations (as defined in Mr. DiSantis’ employment contract); (ii) a severance payment equal to 25 months base salary, in the total amount of $1,804,687.50 (minus applicable taxes, withholdings, and deductions); (iii) a prorated portion of Mr. DiSantis’ bonus for fiscal year 2019, if any, payable at such time as bonuses are generally paid to senior executives of Verso; (iv) a monthly amount, equal to the current Verso-paid portion of any premiums (grossed up for income taxes) for Mr. DiSantis’ existing healthcare coverage and for Mr. DiSantis’ cost of COBRA continuation coverage for up to a maximum of 18 months; and (v) vesting of 341,174 of Mr. DiSantis’ unvested stock units. Appointment of Interim Chief Executive Officer On and effective as of April 5, 2019, the Board of Directors appointed Leslie T. Lederer as Interim Chief Executive Officer of Verso. Closure of Luke Mill On April 30, 2019, Verso announced that it will permanently shut down its paper mill in Luke, Maryland in response to the continuing decline in customer demand for the grades of coated freesheet paper produced at the Luke Mill, along with rising input costs, a significant influx of imports and rising compliance costs and infrastructure challenges associated with recent environmental regulation changes. Verso is expected to complete the shutdown and closure of the Luke Mill by June 30, 2019. The shutdown of the Luke Mill will reduce Verso’s coated freesheet production capacity by approximately 450,000 tons, reducing total annual paper production capacity to approximately 2.7 million tons. The permanent shutdown of the Luke Mill will result in the elimination of jobs, impacting approximately 675 employees at the Luke Mill. Verso estimates that the closure of the Luke Mill will result in pre-tax cash charges for severance, benefits and other shutdown activities of approximately $25 million to $35 million to be recorded in 2019. These estimated cash charges consist of approximately $15 million to $20 million in severance and benefit costs to be recorded in the second quarter ending June 30, 2019, and approximately $10 million to $15 million in other shutdown costs to be recorded in 2019. In connection with the permanent shutdown of the Luke Mill, Verso determined that a reduction in the useful lives of property, plant and equipment and related replacement parts and other supplies at the Luke Mill will be necessary and expects to recognize non-cash charges of approximately $95 million to $115 million for accelerated depreciation and impairment charges in the second quarter ending June 30, 2019. Costs associated with closure activities are based on currently available information and reflect management’s best estimates; accordingly, actual cash costs and non-cash charges and their timing may differ from those stated above.

SUMMARY OF BUSINESS AND BASIS_2

SUMMARY OF BUSINESS AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation — This report contains the Unaudited Condensed Consolidated Financial Statements of Verso as of December 31, 2018 and March 31, 2019 and for the three months ended March 31, 2018 and March 31, 2019 . The December 31, 2018 Unaudited Condensed Consolidated Balance Sheet data was derived from audited financial statements, but it does not include all disclosures required annually by accounting principles generally accepted in the United States of America, or “GAAP.” In Verso’s opinion, the Unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of Verso’s respective financial conditions, results of operations and cash flows for the interim periods presented. Except as disclosed in the notes to the Unaudited Condensed Consolidated Financial Statements, such adjustments are of a normal, recurring nature. Variable interest entities for which Verso is the primary beneficiary are consolidated. Intercompany balances and transactions are eliminated in consolidation. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. It is suggested that these financial statements be read in conjunction with the audited consolidated financial statements and notes thereto of Verso contained in its Annual Report on Form 10-K for the year ended December 31, 2018 .
Recent Accounting Developments	Accounting Guidance Adopted in 2019 ASC Topic 842, Leases . Verso adopted Accounting Standards Codification, or “ASC,” 842, Leases, on January 1, 2019. Verso has elected the package of practical expedients under the transition provisions of the new standard including not reassessing lease classification or whether expired or existing contracts contain leases and not revaluing initial direct costs for existing leases. Verso has not elected to adopt the hindsight practical expedient. Verso has elected to apply the optional transition method provided by Accounting Standards Update, or “ASU,” 2018-11, 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 its policies and procedures related to accounting for right-of-use assets, related 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. 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 that fixed payments, probable amounts the lessee will owe under a residual value guarantee and certain other payments be included in the valuation of these right-of-use assets and related liabilities. Variable payments are excluded from the calculation unless they are based on an index or rate. The adoption of this new standard resulted in an adjustment to recognize $24 million in right-of-use assets and related liabilities on the Unaudited Condensed Consolidated Balance Sheet associated with Verso’s leases at January 1, 2019 (see Note 5). The impact to the Unaudited Condensed Consolidated Statements of Operations and Unaudited Condensed Consolidated Statements of Cash Flows was de minimis. Accounting Guidance Not Yet Adopted ASC Topic 350, Intangible Assets - Goodwill & Other . In August 2018, the Financial Accounting Standards Board, or “FASB” issued ASU 2018-15, Customer’s Accounting for Implementation Costs in a Cloud Computing Arrangement that is a Service Contract (Topic 350), 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 annual and interim periods beginning after December 15, 2019 and early adoption is permitted at any interim period. Verso is currently evaluating the impact of this guidance.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table presents the revenues disaggregated by product included on the Unaudited Condensed Consolidated Statements of Operations: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Graphic papers $ 421 $ 388 Specialty papers 175 194 Packaging papers 14 24 Pulp 29 33 Total Net sales $ 639 $ 639 The following table presents the revenue disaggregated by sales channel included on the Unaudited Condensed Consolidated Statement of Operations: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Direct sales $ 357 $ 392 Merchant sales 241 212 Broker sales 41 35 Total Net sales $ 639 $ 639

SUPPLEMENTAL FINANCIAL STATEM_2

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventories by Major Category	The following table summarizes inventories by major category: December 31, March 31, (Dollars in millions) 2018 2019 Raw materials $ 88 $ 110 Work-in-process 56 65 Finished goods 225 268 Replacement parts and other supplies 29 30 Inventories $ 398 $ 473

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Assets and Liabilities, Lessee	The following table details right-of-use assets and associated obligations for operating and finance leases included in the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2019. March 31, (Dollars in millions) Classification 2019 Assets: Operating lease assets Intangibles and other assets, net $ 21 Finance lease assets Property, plant and equipment, net (1) 2 Total leased assets $ 23 Liabilities Current liabilities: Operating Accrued and other liabilities $ 10 Finance Current maturities of long-term debt and finance leases — Non-current liabilities: Operating Other long-term liabilities 11 Finance Long-term debt and finance leases 2 Total lease liabilities $ 23 (1) Finance lease assets are recorded net of accumulated amortization.
Lease, Cost	The following table provides additional cash flow details associated with leases included in our Unaudited Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3 Operating cash flows from finance leases — Financing cash flows from finance leases — The following table details the costs associated with leasing transactions included on the Unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2019. Three Months Ended (Dollars in millions) Classification March 31, 2019 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 3 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 2 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 1 Finance lease cost: Amortization of leased assets Depreciation and amortization — Interest on lease liabilities Interest expense — Net lease cost $ 6
Lessee, Operating Lease, Liability, Maturity	The following table details the future lease payments associated with leases commenced as of March 31, 2019, including amounts for any renewals that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases (1) Leases (2) Total 2019 (remaining) $ 8 $ — $ 8 2020 8 1 9 2021 4 — 4 2022 1 1 2 2023 1 — 1 Thereafter — — — Total lease payments $ 22 $ 2 $ 24 Interest expense (1 ) — (1 ) Present value of lease liabilities $ 21 $ 2 $ 23 (1) Operating lease payments include $5 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Finance lease payments exclude $2 million of legally binding lease payments for leases signed, but not yet commenced.
Finance Lease, Liability, Maturity	The following table details the future lease payments associated with leases commenced as of March 31, 2019, including amounts for any renewals that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases (1) Leases (2) Total 2019 (remaining) $ 8 $ — $ 8 2020 8 1 9 2021 4 — 4 2022 1 1 2 2023 1 — 1 Thereafter — — — Total lease payments $ 22 $ 2 $ 24 Interest expense (1 ) — (1 ) Present value of lease liabilities $ 21 $ 2 $ 23 (1) Operating lease payments include $5 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Finance lease payments exclude $2 million of legally binding lease payments for leases signed, but not yet commenced.
Schedule of Future Minimum Rental Payments for 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. Amounts are based on ASC 840, Leases , that was superseded upon our adoption of ASC 842, Leases , on January 1, 2019. (Dollars in millions) 2019 $ 6 2020 5 2021 2 2022 1 2023 — Thereafter — Total $ 14
Lessee, Weighted Average Assumption Information	The following assumptions were used to determine the right-of-use assets and obligations associated with our leases as of March 31, 2019. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. March 31, 2019 Weighted-average remaining lease term (years): Operating leases 2.7 Finance leases 4.8 Weighted-average discount rate: Operating leases 4.3 % Finance leases 4.1 %

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Summary of Debt	The following table summarizes debt: December 31, March 31, (Dollars in millions) Maturity 2018 2019 ABL Facility 2/6/2024 $ — $ 45 Unamortized debt issuance costs, net — (2 ) Total Long-term debt $ — $ 43
Interest Expense Related to Debt and Cash Interests Payments on Debt	Amounts included in interest expense (inclusive of amounts capitalized) and amounts of cash interest payments related to long-term debt for the periods presented are as follows: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Interest expense (1) $ 6 $ 1 Cash interest paid 5 1 Debt issuance cost and discount amortization (2) 6 — (1) Represents interest expense incurred on the Credit Facilities, exclusive of amortization of debt issuance cost and discount and inclusive of amounts capitalized. See Note 4 for additional information on capitalized interest costs. (2) Amortization of debt issuance cost and original issue discount, including the accelerated amortization associated with the early extinguishment of the Term Loan Facility, are included in Interest expense on the Unaudited Condensed Consolidated Statements of Operations and in amortization of debt issuance cost and discount on the Unaudited Condensed Consolidated Statements of Cash Flows.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table provides a reconciliation of basic and diluted income (loss) per common share: Three Months Three Months Ended Ended March 31, 2018 March 31, 2019 Net income (loss) available to common shareholders (in millions) $ (2 ) $ 36 Weighted average common shares outstanding - basic (in thousands) 34,465 34,484 Dilutive shares from stock awards (in thousands) — 741 Weighted average common shares outstanding - diluted (in thousands) 34,465 35,225 Basic income (loss) per share $ (0.06 ) $ 1.05 Diluted income (loss) per share $ (0.06 ) $ 1.03

RETIREMENT BENEFITS (Tables)

RETIREMENT BENEFITS (Tables)	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
Components of Net Periodic Benefit Cost	The following table summarizes the components of net periodic pension cost for the periods presented: Three Months Three Months Ended Ended (Dollars in millions) March 31, 2018 March 31, 2019 Service cost $ 1 $ 1 Interest cost 15 16 Expected return on plan assets (18 ) (17 ) Net periodic pension cost (income) $ (2 ) $ —

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Mar. 31, 2019
Time-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Nonvested Restricted Stock Units Activity	Changes to non-vested time-based restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2018 678 $ 10.04 Granted 171 21.05 Vested — — Forfeited (6 ) 16.87 Non-vested at March 31, 2019 843 12.23
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of Nonvested Restricted Stock Units Activity	Changes to non-vested performance-based restricted stock units for the three months ended March 31, 2019 were as follows: Restricted Stock Weighted Average Units Grant Date Shares (in thousands) Outstanding Fair Value Non-vested at December 31, 2018 638 $ 22.26 Granted 171 16.21 Vested — — Forfeited (6 ) 18.22 Non-vested at March 31, 2019 803 21.00

SUMMARY OF BUSINESS AND BASIS_3

SUMMARY OF BUSINESS AND BASIS OF PRESENTATION (Detail)	3 Months Ended
	Mar. 31, 2019Segment
North America
Segment Reporting Information [Line Items]
Number of geographical locations in operation	1

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets	$ 21
Present value of lease liabilities	$ 21
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease assets		$ 24
Present value of lease liabilities		$ 24

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 639	$ 639
Direct sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	392	357
Merchant sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	212	241
Broker sales
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	35	41
Graphic papers
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	388	421
Specialty papers
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	194	175
Packaging papers
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	24	14
Pulp
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 33	$ 29

SUPPLEMENTAL FINANCIAL STATEM_3

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restricted cash, intangibles	$ 2,000,000		$ 2,000,000
Restricted cash	2,000,000	$ 2,000,000
Depreciation expense	27,000,000	26,000,000
Interest costs capitalized	0	0
Capital expenditures unpaid	$ 5,000,000	$ 5,000,000

SUPPLEMENTAL FINANCIAL STATEM_4

SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION - Inventories by Major Category (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 110	$ 88
Work-in-process	65	56
Finished goods	268	225
Replacement parts and other supplies	30	29
Inventories	$ 473	$ 398

LEASES (Details)

LEASES (Details)	Mar. 31, 2019
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	1 month
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, renewal term	1 year

LEASES - Balance Sheet Effect (

LEASES - Balance Sheet Effect (Details) $ in Millions	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease assets	$ 21
Finance lease assets	2
Total leased assets	23
Current liabilities: Operating	10
Current liabilities: Finance	0
Noncurrent liabilities, Operating	11
Noncurrent liabilities, Finance	2
Total lease liabilities	$ 23

LEASES - Statement of Operation

LEASES - Statement of Operations Effect (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 3
Variable lease cost	2
Short term lease cost	1
Finance lease cost:
Amortization of leased assets	0
Interest on lease liabilities	0
Net lease cost	$ 6

LEASES - Future Lease Payments

LEASES - Future Lease Payments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Operating Leases
2019 (remaining)	$ 8
2020	8
2021	4
2022	1
2023	1
Thereafter	0
Total lease payments	22
Interest expense	(1)
Present value of lease liabilities	21
Payments, option to extend lease	5
Finance Lease
2019 (remaining)	0
2020	1
2021	0
2022	1
2023	0
Thereafter	0
Total lease payments	2
Interest expense	0
Present value of lease liabilities	2
Payments, lease not yet commenced	2
2019 (remaining)	8
2020	9
2021	4
2022	2
2023	1
Thereafter	0
Total lease payments	24
Interest expense	1
Total lease liabilities	$ 23

LEASES - Future Minimum Rental

LEASES - Future Minimum Rental Payments (Details) $ in Millions	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 6
2020	5
2021	2
2022	1
2023	0
Thereafter	0
Total	$ 14

LEASES - Assumptions (Details)

LEASES - Assumptions (Details)	Mar. 31, 2019
Leases [Abstract]
Weighted-average remaining lease term (years): Operating leases	2 years 8 months 12 days
Weighted-average remaining lease term (years): Finance leases	4 years 9 months 18 days
Weighted-average discount rate: Operating leases	4.30%
Weighted-average discount rate: Finance leases	4.10%

LEASES - Cash Flow Effect (Deta

LEASES - Cash Flow Effect (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 3
Operating cash flows from finance leases	0
Financing cash flows from finance leases	$ 0

DEBT - Summary of Debt (Detail

DEBT - Summary of Debt (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Unamortized debt issuance costs, net	$ (2)	$ 0
Total Long-term debt	43	0
ABL Facility | Revolving Credit Facilities
Debt Instrument [Line Items]
Long-term debt	$ 45	$ 0

DEBT - Textual (Details)

DEBT - Textual (Details)	Feb. 06, 2019USD ($)incremental_revolving_commitments	Jul. 15, 2016USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Debt instrument, fair value disclosure				$ 45,000,000
ABL Facility
Line of Credit Facility [Line Items]
Credit facility, remaining borrowing capacity				264,000,000
ABL Facility | Revolving Credit Facilities
Line of Credit Facility [Line Items]
Long-term debt				$ 45,000,000	$ 0
Interest rate (percentage)				4.19252%
ABL Facility | Letter of Credit
Line of Credit Facility [Line Items]
Long-term debt				$ 35,000,000
ABL Facility | Term Loan Facility | Revolving Credit Facilities
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity		$ 375,000,000
ABL Facility | ABL Amendment Facility
Line of Credit Facility [Line Items]
Number of incremental revolving commitments | incremental_revolving_commitments	1
Line of credit, maximum borrowing capacity, accordion feature	$ 75,000,000
Line of credit facility, unused capacity, commitment fee percentage	0.25%
ABL Facility | ABL Amendment Facility | Revolving Credit Facilities
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity	$ 350,000,000
ABL Facility | ABL Amendment Facility | Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity	100,000,000
ABL Facility | ABL Amendment Facility | Bridge Loan
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity	$ 35,000,000
ABL Facility | ABL Facility | Revolving Credit Facilities
Line of Credit Facility [Line Items]
Credit facility, borrowing capacity				$ 344,011,000
Term Loan Facility | 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, gross		$ 22,000,000
Debt instrument, periodic payment			$ 4,000,000
Repayments of debt, net			21,000,000
Repayments of debt			$ 21,000,000
LIBOR | Minimum | ABL Facility | ABL Amendment Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.25%
LIBOR | Maximum | ABL Facility | ABL Amendment Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Base Rate | Minimum | ABL Facility | ABL Amendment Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.25%
Base Rate | Maximum | ABL Facility | ABL Amendment Facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	0.75%

DEBT - Interest Expense Relate

DEBT - Interest Expense Related to Long Term Debt and Cash Interests Payments on Long Term Debt (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Disclosure [Abstract]
Interest expense	$ 1	$ 6
Cash interest paid	1	5
Debt issuance cost and discount amortization	$ 0	$ 6

EARNINGS PER SHARE (Reconciliat

EARNINGS PER SHARE (Reconciliation of Basic and Diluted Earnings (Loss) per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income (loss) available to common shareholders	$ 36	$ (2)
Weighted average common shares outstanding - basic (shares)	34,484	34,465
Dilutive shares from stock options (shares)	741	0
Weighted average common shares outstanding - diluted (shares)	35,225	34,465
Basic income (loss) per share (usd per share)	$ 1.05	$ (0.06)
Diluted income (loss) per share (usd per share)	$ 1.03	$ (0.06)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Jul. 15, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class of warrant or right, outstanding		1.8
Exercise price of warrants (in dollars per share)		$ 27.86
Number of shares called by warrants (in shares)	1.8	1.8	1.8
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Grants in period (in shares)	1.4

RETIREMENT BENEFITS - Componen

RETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 1
Interest cost	16	15
Expected return on plan assets	(17)	(18)
Net periodic benefit cost	$ 0	$ (2)

RETIREMENT BENEFITS - Addition

RETIREMENT BENEFITS - Additional Information (Detail) - Pension Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Contribution made by employer	$ 8	$ 6
Cash contribution (at least)	$ 29

EQUITY (Details)

EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2019	Mar. 31, 2019	Mar. 31, 2018	Mar. 28, 2019	Jul. 15, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compound annual growth rate, period		3 years
Vesting, total shareholder return threshold (at least)				5.00%
Equity award expense		$ 2	$ 1
Number of shares called by warrants (in shares)		1,800,000	1,800,000		1,800,000
Exercise price of warrants (in dollars per share)		$ 27.86
Class of warrant or right, exercised (in shares)		0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)				200,000
Compensation cost not yet recognized		$ 17
Vested and expected to vest, outstanding (in shares)		1,600,000
Compensation cost not yet recognized, period for recognition		2 years 12 days
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)		0
Forfeited (in shares)		6,000
Time-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)		0
Forfeited (in shares)		6,000
Subsequent Event | Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated compensation cost	$ 3
Vested (in shares)	233,000
Subsequent Event | Time-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	108,000
Forfeited (in shares)	124,000
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of warrants (in dollars per share)					$ 27.86
Warrants term					7 years
Performance Criteria | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)				200,000
At Least 5% During Performance Period | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage		50.00%
At Least 5% During Performance Period | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage		150.00%

EQUITY - Changes In Non-vested

EQUITY - Changes In Non-vested Units (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Time-based Restricted Stock Units
Units Outstanding
Non-vested, beginning balance (in shares) | shares	678
Grants in period (in shares) | shares	171
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(6)
Non-vested, ending balance (in shares) | shares	843
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning balance (in dollar per share) | $ / shares	$ 10.04
Grants in period (in dollar per share) | $ / shares	21.05
Vested (in dollar per share) | $ / shares	0
Forfeited (in dollar per share) | $ / shares	16.87
Non-vested, ending balance (in dollar per share) | $ / shares	$ 12.23
Performance-based Restricted Stock Units
Units Outstanding
Non-vested, beginning balance (in shares) | shares	638
Grants in period (in shares) | shares	171
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(6)
Non-vested, ending balance (in shares) | shares	803
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Non-vested, beginning balance (in dollar per share) | $ / shares	$ 22.26
Grants in period (in dollar per share) | $ / shares	16.21
Vested (in dollar per share) | $ / shares	0
Forfeited (in dollar per share) | $ / shares	18.22
Non-vested, ending balance (in dollar per share) | $ / shares	$ 21

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - Represented Employees $ in Millions	Mar. 01, 2019Number_of_union_localWork_site	Mar. 31, 2019USD ($)	Feb. 28, 2019Number_of_union_localWork_site
Loss Contingencies [Line Items]
Workforce, represented by union, percentage		70.00%
Litigation settlement | $		$ 6
Union, negotiations with smaller trade unions | Number_of_union_local			4
Union, work sites represented with expired agreements | Work_site			2
United Steelworkers
Loss Contingencies [Line Items]
Union, work sites represented | Work_site			4
Union, number of locals represented | Number_of_union_local			5
Union, agreement term	3 years
International Brotherhood of Electrical Workers and the International Brotherhood of Teamsters
Loss Contingencies [Line Items]
Union, work sites represented | Work_site	2
Union, number of locals represented | Number_of_union_local	2

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) T in Thousands	Apr. 11, 2019USD ($)month_coveragemonthly_paymentshares	Jun. 30, 2019USD ($)T	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019EmployeeT	Dec. 31, 2019USD ($)
Subsequent Event [Line Items]
Restructuring charges			$ 0	$ 1,000,000
Forecast
Subsequent Event [Line Items]
Revised annual production capacity (in tons) | T		2,700			2,700
Forecast | Closure of Luke Mill
Subsequent Event [Line Items]
Reduction of employee headcount | Employee					675
Forecast | Closure of Luke Mill | Minimum
Subsequent Event [Line Items]
Restructuring charges						$ 25,000,000
Accelerated depreciation and impairment charges		$ 95,000,000
Forecast | Closure of Luke Mill | Minimum | Severance and benefit costs
Subsequent Event [Line Items]
Restructuring charges		15,000,000
Forecast | Closure of Luke Mill | Minimum | Other costs
Subsequent Event [Line Items]
Restructuring charges						10,000,000
Forecast | Closure of Luke Mill | Maximum
Subsequent Event [Line Items]
Restructuring charges						35,000,000
Accelerated depreciation and impairment charges		115,000,000
Forecast | Closure of Luke Mill | Maximum | Severance and benefit costs
Subsequent Event [Line Items]
Restructuring charges		$ 20,000,000
Forecast | Closure of Luke Mill | Maximum | Other costs
Subsequent Event [Line Items]
Restructuring charges						$ 15,000,000
Forecast | Closure of Luke Mill | Coated Freesheet
Subsequent Event [Line Items]
Decrease in production capacity (in tons) | T		450			450
Subsequent Event | Chief Executive Officer
Subsequent Event [Line Items]
Number of months base salary | monthly_payment	25
Severance benefits	$ 1,804,687.50
Number of months of COBRA payment | month_coverage	18
Vesting of unvested stock (in shares) | shares	341,174

Uncategorized Items - vrs-20190

Label	Element	Value
Accounting Standards Update 2018-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	7,000,000
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)