Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | Verso Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-34056 | ||
Entity Tax Identification Number | 75-3217389 | ||
Entity Address, Address Line One | 8540 Gander Creek Drive | ||
Entity Address, City or Town | Miamisburg | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45342 | ||
City Area Code | 877 | ||
Local Phone Number | 855-7243 | ||
Title of 12(b) Security | Class A common stock, par value $0.01 per share | ||
Trading Symbol | VRS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 400,452,075 | ||
Entity Common Stock, Shares Outstanding | 33,071,589 | ||
Documents Incorporated by Reference | The information required by Part III will either be (i) included in an amendment to this Annual Report on Form 10-K, or (ii) incorporated by reference from portions of the definitive proxy statement of Verso Corporation to be filed in connection with the 2021 annual meeting of stockholders of Verso Corporation. Such amendment or proxy statement will be filed with the Securities and Exchange Commission no later than 120 days after December 31, 2020. | ||
Entity Central Index Key | 0001421182 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 137 | $ 42 |
Accounts receivable, net | 83 | 155 |
Inventories | 224 | 395 |
Assets held for sale | 17 | 0 |
Prepaid expenses and other assets | 5 | 7 |
Total current assets | 466 | 599 |
Property, plant and equipment, net | 613 | 945 |
Deferred tax assets | 122 | 92 |
Intangibles and other assets, net | 44 | 59 |
Total assets | 1,245 | 1,695 |
Current liabilities: | ||
Accounts payable | 80 | 188 |
Accrued and other liabilities | 92 | 103 |
Current maturities of long-term debt and finance leases | 1 | 2 |
Total current liabilities | 173 | 293 |
Long-term debt and finance leases | 4 | 5 |
Pension benefit obligation | 350 | 369 |
Other long-term liabilities | 34 | 41 |
Total liabilities | 561 | 708 |
Commitments and contingencies | ||
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 34,949,430 shares issued and 34,704,367 outstanding on December 31, 2019 and 35,877,533 shares issued and 33,133,649 outstanding on December 31, 2020; 40,000,000 Class B shares authorized with no shares issued and outstanding on December 31, 2019 and December 31, 2020) | 0 | 0 |
Treasury stock -- at cost (245,063 shares on December 31, 2019 and 2,743,884 shares on December 31, 2020) | (39) | (5) |
Paid-in-capital (including Warrants of $10 million) | 705 | 698 |
Retained earnings (deficit) | (42) | 172 |
Accumulated other comprehensive income | 60 | 122 |
Total equity | 684 | 987 |
Total liabilities and equity | $ 1,245 | $ 1,695 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value (usd 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) | 2,743,884 | 245,063 |
Warrants and rights outstanding | $ 10 | $ 10 |
Common Class A | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 210,000,000 | 210,000,000 |
Common stock, shares issued (in shares) | 35,877,533 | 34,949,430 |
Common stock, shares outstanding (in shares) | 33,133,649 | 34,704,367 |
Common Class B | ||
Common stock, par value (usd 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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,359 | $ 2,444 | $ 2,682 |
Costs and expenses: | |||
Cost of products sold (exclusive of depreciation and amortization) | 1,334 | 2,138 | 2,321 |
Depreciation and amortization | 153 | 183 | 111 |
Selling, general and administrative expenses | 77 | 104 | 102 |
Restructuring charges | 12 | 52 | 1 |
Other operating (income) expense | (89) | 4 | (5) |
Operating income (loss) | (128) | (37) | 152 |
Interest expense | 1 | 2 | 33 |
Other (income) expense | (19) | (18) | (52) |
Income (loss) before income taxes | (110) | (21) | 171 |
Income tax expense (benefit) | (9) | (91) | 0 |
Net income (loss) | $ (101) | $ 70 | $ 171 |
Income (loss) per common share: | |||
Basic (usd per share) | $ (2.95) | $ 2.03 | $ 4.97 |
Diluted (usd per share) | $ (2.95) | $ 2 | $ 4.88 |
Weighted average common shares outstanding (in thousands): | |||
Basic (in shares) | 34,232 | 34,625 | 34,514 |
Diluted (in shares) | 34,232 | 35,134 | 35,096 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (101) | $ 70 | $ 171 |
Defined benefit pension plan: | |||
Pension liability adjustment, net | (62) | 2 | (20) |
Amortization of net actuarial loss | 0 | 0 | 1 |
Other comprehensive income (loss), net of tax | (62) | 2 | (19) |
Comprehensive income (loss) | $ (163) | $ 72 | $ 152 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Treasury Stock | Paid-in- Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Common Class A | Common Class ACommon Stock | Common Class B | Common Class BCommon Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 34,173,000 | 291,000 | |||||||
Beginning balance at Dec. 31, 2017 | $ 746 | $ 0 | $ 676 | $ (62) | $ 132 | $ 0 | $ 0 | ||
Treasury shares, beginning balance (in shares) at Dec. 31, 2017 | 9,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 171 | 171 | |||||||
Other comprehensive income (loss), net | (19) | (19) | |||||||
Treasury shares (in shares) | 77,000 | ||||||||
Treasury shares | 0 | $ (2) | 2 | ||||||
Common stock issued for restricted stock (in shares) | 106,000 | ||||||||
Common stock issued for restricted stock | 0 | ||||||||
Class B stock converted to Class A stock (in shares) | 291,000 | (291,000) | |||||||
Class B stock converted to Class A stock | 0 | ||||||||
Equity award expense | 8 | 8 | |||||||
Reclassification of stranded tax effects (ASU 2018-02) | 0 | (7) | 7 | ||||||
Ending balance (in shares) at Dec. 31, 2018 | 34,570,000 | 0 | |||||||
Ending balance at Dec. 31, 2018 | 906 | $ (2) | 686 | 102 | 120 | $ 0 | $ 0 | ||
Treasury shares, ending balance (in shares) at Dec. 31, 2018 | 86,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 70 | 70 | |||||||
Other comprehensive income (loss), net | 2 | 2 | |||||||
Treasury shares (in shares) | 159,000 | ||||||||
Treasury shares | (3) | $ (3) | |||||||
Common stock issued for restricted stock (in shares) | 379,000 | ||||||||
Common stock issued for restricted stock | 0 | ||||||||
Equity award expense | 12 | 12 | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 34,949,430 | 34,949,000 | 0 | 0 | |||||
Ending balance at Dec. 31, 2019 | $ 987 | $ (5) | 698 | 172 | 122 | $ 0 | $ 0 | ||
Treasury shares, ending balance (in shares) at Dec. 31, 2019 | 245,063 | 245,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ (101) | (101) | |||||||
Other comprehensive income (loss), net | $ (62) | (62) | |||||||
Treasury shares (in shares) | 2,200,000 | 2,499,000 | |||||||
Treasury shares | $ (34) | $ (34) | |||||||
Common stock issued for restricted stock (in shares) | 929,000 | ||||||||
Common stock issued for restricted stock | 0 | ||||||||
Dividends and dividend equivalents declared | (111) | 2 | (113) | ||||||
Equity award expense | 5 | 5 | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 35,877,533 | 35,878,000 | 0 | 0 | |||||
Ending balance at Dec. 31, 2020 | $ 684 | $ (39) | $ 705 | $ (42) | $ 60 | $ 0 | $ 0 | ||
Treasury shares, ending balance (in shares) at Dec. 31, 2020 | 2,743,884 | 2,744,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ (101) | $ 70 | $ 171 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 153 | 183 | 111 |
Noncash restructuring charges | 5 | 20 | 0 |
Net periodic pension cost (income) | (16) | (14) | (7) |
Pension plan contributions | (49) | (42) | (43) |
Amortization of debt issuance cost and discount | 0 | 1 | 19 |
Gain on Sale of Androscoggin/Stevens Point Mills | (94) | 0 | 0 |
Equity award expense | 5 | 12 | 8 |
(Gain) loss on sale or disposal of assets | 4 | 2 | (8) |
Deferred taxes | (9) | (91) | 0 |
Prepayment premium on Term Loan Facility | 0 | 0 | 1 |
Changes in assets and liabilities: | |||
Accounts receivable, net | 32 | 44 | 11 |
Inventories | 79 | (7) | (12) |
Prepaid expenses and other assets | (2) | 5 | 4 |
Accounts payable | (64) | (34) | 40 |
Accrued and other liabilities | (5) | (24) | (12) |
Net cash provided by (used in) operating activities | (62) | 125 | 283 |
Cash Flows From Investing Activities: | |||
Proceeds from sale of assets | 6 | 1 | 17 |
Capital expenditures | (48) | (105) | (73) |
Grant proceeds from Maine Technology Institute | 0 | 0 | 4 |
Net proceeds from Sale of Androscoggin/Stevens Point Mills | 345 | 0 | 0 |
Net cash provided by (used in) investing activities | 303 | (104) | (52) |
Cash Flows From Financing Activities: | |||
Borrowings on ABL Facility | 36 | 428 | 442 |
Payments on ABL Facility | (36) | (428) | (507) |
Payments on Term Loan Facility | 0 | 0 | (146) |
Prepayment premium on Term Loan Facility | 0 | 0 | (1) |
Principal payment on finance lease obligations | (1) | (1) | 0 |
Acquisition of treasury stock | (34) | (3) | 0 |
Dividends paid to stockholders | (111) | 0 | 0 |
Debt issuance costs | 0 | (1) | 0 |
Net cash provided by (used in) financing activities | (146) | (5) | (212) |
Change in Cash and cash equivalents and restricted cash | 95 | 16 | 19 |
Cash and cash equivalents and restricted cash at beginning of period | 44 | 28 | 9 |
Cash and cash equivalents and restricted cash at end of period | 139 | 44 | 28 |
Supplementary cash flow disclosures: | |||
Total interest paid | 1 | 2 | 16 |
Total income taxes paid | 0 | 3 | 0 |
Noncash investing and financing activities: | |||
Right of use assets recorded upon adoption of ASC 842 | 0 | 24 | 0 |
Right of use assets obtained in exchange for new finance lease liabilities | 1 | 8 | 0 |
Right of use assets obtained in exchange for new capitalized operating lease liabilities | $ 8 | $ 2 | $ 0 |
SUMMARY OF BUSINESS AND BASIS O
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION | SUMMARY OF BUSINESS AND BASIS OF PRESENTATION 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. 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. 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’s core business platform is as a producer of graphic paper, specialty paper, packaging paper and Northern Bleached Hardwood Kraft, or “NBHK,” pulp. Verso’s products are used primarily in media and marketing applications, including catalogs, magazines, commercial printing applications, such as high-end advertising brochures and direct-mail advertising, and specialty applications, such as flexible packaging and label and converting. Verso’s NBHK pulp is used to manufacture printing, writing and specialty paper grades, tissue and other products. 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. In 2018, 2019 and 2020, pulp net sales and gross margin, excluding depreciation and amortization expense, were each less than 10% of respective consolidated balances. 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. Sale of Androscoggin Mill and Stevens Point Mill — On November 11, 2019, Verso and Verso Paper entered into a membership interest purchase agreement, or the “Purchase Agreement,” with Pixelle Specialty Solution LLC, or “Pixelle,” whereby Verso and Verso Paper agreed to sell to Pixelle, or the “Pixelle Sale,” or "Sale of Androscoggin/Stevens Point Mills," all of the outstanding membership interests in Verso Androscoggin, LLC an indirect wholly owned subsidiary of Verso and the entity that, as of the closing date of the Pixelle Sale, held all the assets primarily related to Verso’s Androscoggin Mill located in Jay, Maine, and Stevens Point Mill, located in Stevens Point, Wisconsin. The transaction was approved by Verso’s stockholders on January 31, 2020 and closed on February 10, 2020 (see Note 4). As consideration for the Pixelle Sale, Verso received $352 million in cash, which reflected certain adjustments related to our estimates of cash, indebtedness and working capital of Verso Androscoggin, LLC and Pixelle assumed $37 million of Verso’s unfunded pension liabilities, which reflected certain adjustments in connection with the completed transfer of the unfunded pension liabilities during the year ended December 31, 2020. The Pixelle Sale reduced the aggregate annual production capacity of Verso’s mills by approximately 660,000 tons. The Androscoggin and Stevens Point mills together represented approximately 22% of Verso’s revenues for the year ended December 31, 2019. Idle of Duluth Mill and Wisconsin Rapids Mill — On June 9, 2020, Verso announced plans to indefinitely idle its mills in Duluth, Minnesota and Wisconsin Rapids, Wisconsin, while exploring viable and sustainable alternatives for both mills. Those alternatives included restarting, selling or permanently closing one or both mills. To assist in evaluating the possible sale of these idled mills, Verso has been working with outside advisors. Verso’s decision to reduce production capacity was driven by the accelerated decline in graphic paper demand, primarily resulting from the COVID-19 pandemic. The “stay-at-home” and other orders related to the COVID-19 pandemic have significantly reduced the use of print advertising in various industries, including retail, sports, entertainment and tourism. The production capacity of the Duluth Mill is approximately 270,000 tons of supercalendered/packaging paper and the production capacity of the Wisconsin Rapids Mill is approximately 540,000 tons of coated and packaging paper. Verso idled production at the Duluth Mill on July 1, 2020 and at the Wisconsin Rapids Mill on July 27, 2020. In the third quarter of 2020, Verso recognized $3 million in severance and benefit costs, included in Costs of products sold, associated with the idling of our Duluth Mill and in fourth quarter of 2020, Verso recognized $5 million in severance and benefit costs, included in Costs of products sold, associated with the idling of the Wisconsin Rapids Mill. Verso continues to operate the facility at the Wisconsin Rapids Mill to convert paper produced at the Quinnesec and Escanaba mills to sheets for the commercial print market. See Note 14 and Note 18 for additional information. COVID-19 Pandemic — The outbreak of coronavirus disease, or “COVID-19”, which was declared by the World Health Organization to be a global pandemic, is impacting worldwide economic activity. In an effort to contain and combat the spread of COVID-19, government and health authorities around the world have taken extraordinary and wide-ranging actions, including orders to close all businesses not deemed essential, quarantines and “stay-at-home” orders. Although some of these governmental restrictions have since been lifted or scaled back, recent surges of COVID-19 and the discovery of new variants of the virus may lead to restrictions being implemented in an effort to reduce the spread of COVID-19. Verso serves as an essential manufacturing business and, as a result, Verso’s mills have continued to be operational during this time in order to meet the ongoing needs of its customers, including those in other essential business sectors, which provide food, medical and hygiene products needed in a global health crisis. The guidelines and orders enacted by federal, state and local governments have impacted demand from retailers, political campaigns, and sports and entertainment events, driving reduced purchases of printed materials and substantially impacting Verso’s graphic paper business. Verso’s COVID-19 preparedness and response team has been monitoring the pandemic and related events and preparing and implementing responses in accordance with the Centers for Disease Control and Prevention, or “CDC,” and the Occupational Safety and Health Administration, or “OSHA,” recommendations as well as federal, state and local guidelines. While Verso cannot reasonably estimate the full impact of COVID-19 on the business, financial position, results of operations and cash flows, the pandemic will continue to have a negative impact on business and financial results. The full extent to which COVID-19 impacts Verso’s operations will depend on future developments, which are highly uncertain, including, among others, the duration of the outbreak, new information that may emerge concerning the severity of COVID-19 and the actions taken, especially those by governmental authorities, to contain its spread or treat its impact including the availability, effectiveness and/or public acceptance of any U.S. Food and Drug Administration approved COVID-19 vaccines. Basis of Presentation — This report contains the Consolidated Financial Statements of Verso as of December 31, 2019 and 2020, and for the years ended December 31, 2018, 2019 and 2020. Intercompany balances and transactions are eliminated in consolidation. 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 on the Consolidated Statements of Operations. 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 in Net sales on the Consolidated Statements of Operations: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Paper $ 2,476 $ 2,224 $ 1,175 Pulp 139 117 118 Packaging 67 103 66 Net sales $ 2,682 $ 2,444 $ 1,359 The following table presents the revenue disaggregated by sales channel included in Net sales on the Consolidated Statements of Operations: Year Ended December 31, (Dollars in millions) 2018 2019 2020 End-users and Converters $ 1,091 $ 1,119 $ 476 Brokers and Merchants 1,172 936 641 Printers 419 389 242 Net sales $ 2,682 $ 2,444 $ 1,359 Two customers together accounted for 30%, 25% and 33% of Verso’s net sales for the years ended December 31, 2018, 2019 and 2020, respectively. Shipping and Handling Costs — Shipping and handling costs, such as freight to customer destinations, are included in Cost of products sold on 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 — 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. Environmental Costs and Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations , and ASC Topic 450, Contingencies , costs associated with environmental obligations, such as remediation costs, are accrued when such costs are probable and reasonably estimable. Such accruals are adjusted as further information develops or circumstances change. The ultimate aggregate financial impact with respect to these matters is subject to many uncertainties and could be material, but management cannot reasonably estimate the total amount or range of potential liability and additional costs at this time (see Note 16). Equity Compensation — Verso accounts for equity awards in accordance with Accounting Standards Codification, or “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 generally 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 regularly reviews deferred tax assets for recoverability based upon an analysis of all positive and negative evidence, including expected future book income based on historical data and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets, as adjusted for income tax valuation allowances, will 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 and other 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 9 and Note 12 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 $145 million and $82 million at December 31, 2019 and 2020, respectively. Two customers together accounted for 25% of accounts receivable as of December 31, 2019 and two customers together accounted for 30% of accounts receivable as of December 31, 2020. 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 less than $1 million at both December 31, 2019 and 2020. Verso has accounts receivable factoring arrangements with a third-party financial institution. 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, 2019, Verso incurred factoring fees of less than $2 million in connection with $165 million of accounts receivables sold without recourse. For the year ended December 31, 2020, Verso incurred factoring fees of less than $1 million in connection with $78 million of accounts receivables sold without recourse. These fees were included in Other operating (income) expense on the Consolidated Statements 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 Sheets (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) Buildings and building improvements 20 - 40 Land improvements 10 - 20 Machinery and equipment 3 - 20 Furniture and office equipment 10 Computer hardware and software 3 - 7 Leasehold 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 . The intangible assets 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 included 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 included in Intangibles and other assets, net on the Consolidated Balance Sheets. 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. Verso’s asset retirement obligations under this standard relate primarily to closure and post-closure costs for landfills. Costs of future expenditures for asset retirement obligations are discounted to their present value when the timing of expected cash flows are reliably determinable. 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, 2019 and 2020, $2 million of restricted cash was included in Intangibles and other assets, net on 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 on the Consolidated Balance Sheets: Year Ended December 31, (Dollars in millions) 2019 2020 Asset retirement obligations, beginning balance $ 14 $ 16 Settlement of existing liabilities — — Accretion expense 2 1 Adjustments to existing liabilities (1) — (9) Asset retirement obligations, ending balance 16 8 Less: Current portion (1) — Non-current portion of asset retirement obligations, ending balance $ 15 $ 8 (1) Includes $7 million in asset retirement obligations that were assumed by the buyer in the Pixelle Sale (see Note 4). 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, Verso believes that adequate information does not exist to reasonably estimate any such potential obligations. Accordingly, no liability for such remediation has been 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 the years ended December 31, 2018, 2019 and 2020: (Dollars in millions) Accumulated other comprehensive income as of December 31, 2017 $ 132 Pension and other postretirement 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 120 Pension adjustment, net 2 Net increase in other comprehensive income 2 Accumulated other comprehensive income as of December 31, 2019 122 Pension adjustment, net (62) Net decrease in other comprehensive income (62) Accumulated other comprehensive income as of December 31, 2020 $ 60 Correction of previously reported amounts — Subsequent to the original issuance of the Company’s 2019 Consolidated Financial Statements, Verso identified two adjustments necessary to correct deferred tax assets associated with Property, plant and equipment, net and Pension benefit obligation, on the Consolidated Balance Sheet as of December 31, 2019 and Income tax expense (benefit) on the Consolidated Statement of Operations for the year ended December 31, 2019. These errors occurred due to the incorrect measurement of the state deferred tax assets relating to bonus depreciation and the incorrect application of the tax accounting for the minimum pension liability in Accumulated other comprehensive income. Management believes that the impact of these adjustments is immaterial to the previously issued Consolidated Financial Statements, based on an evaluation of both quantitative and qualitative factors. As a result, Verso corrected Deferred tax assets and Retained earnings (deficit) on the Consolidated Balance Sheet as of December 31, 2019, and Income tax expense (benefit) and Net income (loss) on the Consolidated Statement of Operations for the year ended December 31, 2019, reducing each by $26 million. Additionally, Verso corrected Income (loss) per common share on the Consolidated Statement of Operations for the year ended December 31, 2019, Retained earnings (deficit) and Total stockholders’ equity (deficit) as of December 31, 2019 on the Consolidated Statement of Changes in Stockholders’ Equity (Deficit) and Net income (loss) and Deferred taxes for the year ended December 31, 2019 on the Consolidated Statement of Cash Flows, to reflect the impact of this matter. The following table presents the as corrected line items in the Consolidated Balance Sheet as of December 31, 2019: December 31, 2019 (Dollars in millions) As Reported As Corrected Deferred tax assets $ 118 $ 92 Total assets $ 1,721 $ 1,695 Retained earnings $ 198 $ 172 Total equity $ 1,013 $ 987 Total liabilities and equity $ 1,721 $ 1,695 December 31, 2019 (Dollars in millions, except per share amounts) As Reported As Corrected Income tax expense (benefit) $ (117) $ (91) Net income (loss) $ 96 $ 70 Income (loss) per common share: Basic $ 2.78 $ 2.03 Diluted $ 2.74 $ 2.00 The following table presents the as corrected line items in the Consolidated Statement of Cash Flows for the year ended December 31, 2019: December 31, 2019 (Dollars in millions) As Reported As Corrected Net income (loss) $ 96 $ 70 Deferred taxes $ (117) $ (91) The corrections above do not have an effect on net cash provided by operating activities or used in investing or financing activities on the Consolidated Statement of Cash Flows for the year ended December 31, 2019. See Note 11, Note 15 and Note 17 for further information. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2020 ASC Topic 350, Intangible Assets - Goodwill & Other . In August 2018, the Financial Accounting Standards Board, or “FASB,” issued Accounting Standards Update, or “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. Verso adopted this guidance on January 1, 2020 on a prospective basis and the effect on the Consolidated Financial Statements was not material. ASC Topic 326, Financial Instruments – Credit Losses . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment method with a method that reflects expected credit losses. Adoption of this standard is through a cumulative-effect adjustment to retained earnings as of the effective date. Verso adopted this guidance on January 1, 2020, and the effect on the Consolidated Financial Statements was not material. ASC Topic 715, Compensation – Retirement Benefits – Defined Benefit Plans – General . In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which adds, removes and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. We adopted this guidance as of January 1, 2020, and changes are reflected within our benefit plan disclosures. ASC Topic 820, Fair Value Measurement . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measuremen t, which modifies disclosure requirements related to fair value measurement. Verso adopted this guidance on January 1, 2020, and the effect on the Consolidated Financial Statements was not material. Accounting Guidance Not Yet Adopted ASC Topic 740, Income Taxes . In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce the complexity in accounting for income taxes. It is effective for annual periods, and interim periods within those years, beginning after December 15, 2020, and is not expected to have a material effect on the Consolidated Financial Statements. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES December 31, (Dollars in millions) 2019 2020 Raw materials $ 80 $ 45 Work-in-process 51 31 Finished goods 233 125 Replacement parts and other supplies 31 23 Inventories $ 395 $ 224 |
DISPOSITIONS
DISPOSITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS | DISPOSITIONS Sale of Androscoggin Mill and Stevens Point Mill On February 10, 2020, Verso completed the Pixelle Sale, selling all of the outstanding membership interests in Verso Androscoggin, LLC, an indirect wholly owned subsidiary of Verso and the entity that, as of the closing date of the Pixelle Sale, held all the assets primarily related to Verso’s Androscoggin Mill located in Jay, Maine and Stevens Point Mill, located in Stevens Point, Wisconsin. The Pixelle Sale did not qualify as a discontinued operation. As consideration for the Pixelle Sale, Verso received $352 million in cash, which reflected certain adjustments related to Verso’s estimates of cash, indebtedness and working capital of Verso Androscoggin, LLC and Pixelle assumed $37 million of Verso’s unfunded pension liabilities, which reflected certain adjustments in connection with the completed transfer of the unfunded pension liabilities during the year ended December 31, 2020. Following post-closing adjustments, including $8 million of final working capital received in the fourth quarter of 2020, the sale resulted in a gain of $94 million included in Other operating (income) expense on the Consolidated Statement of Operations for the year ended December 31, 2020. In connection with the Pixelle Sale, Verso provided certain transition services to Pixelle and recognized $5 million for these services on the Consolidated Statement of Operations during the year ended December 31, 2020 with $2 million recognized as a reduction of Cost of products sold and $3 million as a reduction of Selling, general and administrative expenses. The following table summarizes the components of the gain on sale: (Dollars in millions) Cash proceeds $ 352 Less: costs to sell (7) Net cash proceeds 345 Less: assets and liabilities associated with the sale Accounts receivable, net 40 Inventories 90 Property, plant and equipment, net 195 Write-off of intangible assets 5 Other assets 4 Accounts payable (33) Pension benefit obligation (37) Other liabilities (13) Gain on sale $ 94 Luke Mill Land Sale On October 30, 2020, Verso received $4 million of cash proceeds for the sale of ancillary land associated with the Luke Mill with a net book value of $4 million. Luke Mill Equipment and Other Asset Sales On August 1, 2020, Verso entered into an equipment purchase agreement with Halkali Kagit Karton Sanayi ve Tic. A.S., or the “Purchaser,” a company organized under the laws of Turkey, whereby Verso agreed to sell, and the Purchaser agreed to purchase, certain equipment at Verso’s Luke Mill, primarily including two paper machines. The purchase price was $11 million in cash due at various milestones. Verso received $8 million in non-refundable deposits associated with the sale during the year ended December 31, 2020, and an additional $1 million in the first quarter of 2021. Verso expects to receive an additional $1 million in the second quarter of 2021 and the final payment of $1 million by the third quarter of 2021. The closing of the equipment purchase, including the transfer of title and ownership of the equipment to the Purchaser, will occur upon satisfactory completion of the disassembly and removal of the equipment and the receipt by Verso of all payments due from the Purchaser. The machinery has been classified as held for sale at December 31, 2020. Verso has evaluated the remaining assets of the Luke Mill and has received a letter of intent to purchase these assets. Negotiations for a purchase agreement are ongoing. The Company has determined that these assets meet the criteria for held for sale at December 31, 2020. In connection with these sales, Verso classified $17 million in assets as held for sale on the Consolidated Balance Sheet as of December 31, 2020. Sale of Wickliffe Mill On August 16, 2018, Verso Paper entered into a purchase agreement with Global Win Wickliffe LLC, pursuant to which Verso Paper agreed to sell, and Global Win Wickliffe LLC agreed to purchase, one of Verso’s subsidiaries, Verso Wickliffe LLC for a purchase price of $16 million in cash. Verso Wickliffe LLC owned substantially all of the assets that comprised Verso’s Wickliffe, Kentucky paper 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 Statement of Operations for the year ended December 31, 2018. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consist of the following: December 31, (Dollars in millions) 2019 2020 Land and land improvements $ 42 $ 26 Building and leasehold improvements 156 116 Machinery, equipment and other (1) 1,172 850 Construction-in-progress 47 17 Property, plant and equipment, gross 1,417 1,009 Accumulated depreciation (1) (472) (396) Property, plant and equipment, net $ 945 $ 613 (1) Includes finance lease assets and related amortization (see Note 8). Interest costs capitalized, depreciation expense and finance lease asset amortization expense for the periods presented are as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Interest costs capitalized $ 1 $ 2 $ 1 Depreciation expense 105 176 147 Finance lease asset amortization expense — 1 1 Property, plant and equipment as of December 31, 2018, 2019 and 2020 include $7 million, $15 million and $3 million, respectively, of capital expenditures that were unpaid and included in Accounts payable and Accrued and other liabilities on the Consolidated Balance Sheets. |
INTANGIBLES AND OTHER ASSETS, N
INTANGIBLES AND OTHER ASSETS, NET | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES AND OTHER ASSETS, NET | INTANGIBLES AND OTHER ASSETS, NET Intangibles and other assets, net consist of the following: December 31, (Dollars in millions) 2019 2020 Intangible assets: Customer relationships, net of accumulated amortization of $9 million on December 31, 2019 and $9 million on December 31, 2020 (1) $ 17 $ 11 Trademarks, net of accumulated amortization of $11 million on December 31, 2019 and $12 million on December 31, 2020 (1) 5 1 Other assets: Operating leases 14 14 Deferred compensation 4 4 Restricted cash 2 2 ABL Facility unamortized debt issuance cost, net 2 2 Other 15 10 Intangibles and other assets, net $ 59 $ 44 (1) In connection with the Pixelle Sale in 2020 (see Note 4), Customer relationships gross intangible asset was reduced by $6 million and related accumulated amortization was reduced by $2 million, and Trademarks gross intangible asset was reduced by $3 million and related accumulated amortization was reduced by $2 million. Amortization expense related to intangible assets for the periods presented is as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Customer Relationships $ 2 $ 3 $ 2 Trademarks 4 3 3 The estimated future amortization expense for intangible assets over the next five years is as follows: (Dollars in millions) 2021 $ 3 2022 2 2023 2 2024 2 2025 2 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 AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES A summary of Accrued and other liabilities is as follows: December 31, (Dollars in millions) 2019 2020 Payroll and employee benefit costs $ 53 $ 43 Accrued sales rebates 16 11 Operating lease liabilities 8 8 Deferred income on Luke Mill equipment sale — 8 Accrued energy 7 5 Accrued environmental 2 5 Accrued taxes - other than income 4 4 Accrued freight 5 3 Accrued professional and legal fees 3 2 Accrued restructuring costs 2 2 Other 3 1 Accrued and other liabilities $ 103 $ 92 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Verso adopted ASC 842, Leases, on January 1, 2019. 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 Consolidated Balance Sheet. Verso recognizes lease expense for these leases on a straight line basis over the lease term and expects payments in 2021 for these short-term leases to be than less than $1 million. Certain assets include renewal terms that generally range from 1 month to 1 year. Certain warehouse leases include only a payment for variable space utilized, 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 and do not contain any restrictions or covenants. The following table details right-of-use assets and associated obligations for operating and finance leases included on the Consolidated Balance Sheets for the periods presented: December 31, December 31, (Dollars in millions) Classification 2019 2020 Assets: Operating lease assets Intangibles and other assets, net $ 14 $ 14 Finance lease assets Property, plant and equipment, net (1) 7 5 Total leased assets $ 21 $ 19 Liabilities Current liabilities: Operating Accrued and other liabilities $ 8 $ 8 Finance Current maturities of long-term debt and finance leases 2 1 Non-current liabilities: Operating Other long-term liabilities 6 6 Finance Long-term debt and finance leases 5 4 Total lease liabilities $ 21 $ 19 (1) Finance lease assets are recorded net of accumulated amortization. The following table details the costs associated with leasing transactions included on the Consolidated Statements of Operations for the periods presented: Year Ended Year Ended (Dollars in millions) Classification December 31, 2019 December 31, 2020 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 11 $ 10 Operating lease cost Selling, general and administrative expenses 1 1 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 8 7 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 3 3 Finance lease cost: Amortization of leased assets Depreciation and amortization 1 1 Interest on lease liabilities Interest expense — — Net lease cost $ 24 $ 22 The following table details the future lease payments associated with leases commenced as of December 31, 2020, including amounts for any renewal options that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases Leases Total 2021 $ 8 $ 2 $ 10 2022 4 2 6 2023 2 1 3 2024 1 1 2 Thereafter — — — Total lease payments 15 6 21 Imputed interest (1) (1) (2) Present value of lease liabilities $ 14 $ 5 $ 19 The following assumptions were used to determine the right-of-use assets and obligations associated with Verso’s leases for the periods presented. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. December 31, December 31, 2019 2020 Weighted average remaining lease term (years): Operating leases 2.2 2.1 Finance leases 4.4 3.7 Weighted average discount rate: Operating leases 4.3 % 2.7 % Finance leases 3.8 % 3.4 % The following table provides additional cash flow details associated with leases included in the Consolidated Statements of Cash Flows for the periods presented: Year Ended Year Ended (Dollars in millions) December 31, 2019 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 12 11 Operating cash flows related to finance leases — — Financing cash flows related to finance leases 1 1 Rental expense for operating leases classified under ASC 840, Leases |
LEASES | LEASES Verso adopted ASC 842, Leases, on January 1, 2019. 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 Consolidated Balance Sheet. Verso recognizes lease expense for these leases on a straight line basis over the lease term and expects payments in 2021 for these short-term leases to be than less than $1 million. Certain assets include renewal terms that generally range from 1 month to 1 year. Certain warehouse leases include only a payment for variable space utilized, 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 and do not contain any restrictions or covenants. The following table details right-of-use assets and associated obligations for operating and finance leases included on the Consolidated Balance Sheets for the periods presented: December 31, December 31, (Dollars in millions) Classification 2019 2020 Assets: Operating lease assets Intangibles and other assets, net $ 14 $ 14 Finance lease assets Property, plant and equipment, net (1) 7 5 Total leased assets $ 21 $ 19 Liabilities Current liabilities: Operating Accrued and other liabilities $ 8 $ 8 Finance Current maturities of long-term debt and finance leases 2 1 Non-current liabilities: Operating Other long-term liabilities 6 6 Finance Long-term debt and finance leases 5 4 Total lease liabilities $ 21 $ 19 (1) Finance lease assets are recorded net of accumulated amortization. The following table details the costs associated with leasing transactions included on the Consolidated Statements of Operations for the periods presented: Year Ended Year Ended (Dollars in millions) Classification December 31, 2019 December 31, 2020 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 11 $ 10 Operating lease cost Selling, general and administrative expenses 1 1 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 8 7 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 3 3 Finance lease cost: Amortization of leased assets Depreciation and amortization 1 1 Interest on lease liabilities Interest expense — — Net lease cost $ 24 $ 22 The following table details the future lease payments associated with leases commenced as of December 31, 2020, including amounts for any renewal options that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases Leases Total 2021 $ 8 $ 2 $ 10 2022 4 2 6 2023 2 1 3 2024 1 1 2 Thereafter — — — Total lease payments 15 6 21 Imputed interest (1) (1) (2) Present value of lease liabilities $ 14 $ 5 $ 19 The following assumptions were used to determine the right-of-use assets and obligations associated with Verso’s leases for the periods presented. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. December 31, December 31, 2019 2020 Weighted average remaining lease term (years): Operating leases 2.2 2.1 Finance leases 4.4 3.7 Weighted average discount rate: Operating leases 4.3 % 2.7 % Finance leases 3.8 % 3.4 % The following table provides additional cash flow details associated with leases included in the Consolidated Statements of Cash Flows for the periods presented: Year Ended Year Ended (Dollars in millions) December 31, 2019 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 12 11 Operating cash flows related to finance leases — — Financing cash flows related to finance leases 1 1 Rental expense for operating leases classified under ASC 840, Leases |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of December 31, 2019 and 2020, Verso Paper had no outstanding borrowings on the ABL Facility (as defined below). During the year ended December 31, 2018, Verso Paper 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 Paper was obligated to fund additional principal payments during the year ended December 31, 2018 of $21 million. Verso Paper also elected to make additional voluntary principal prepayments on the Term Loan Facility totaling $116 million during the year ended December 31, 2018, from available liquidity including amounts borrowed under the ABL Facility. The mandatory and voluntary principal prepayments resulted in the full pay off of the Term Loan Facility on September 10, 2018. 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: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Interest expense (1) $ 15 $ 3 $ 2 Cash interest paid 16 2 1 Debt issuance cost and discount amortization (2) 19 1 — (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 5 for additional information on capitalized interest costs). (2) Amortization of debt issuance cost and original issue discount, including accelerated amortization associated with the early extinguishment of the Term Loan Facility and the ABL Amendment, 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 July 15, 2016, Verso Paper Holding LLC 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 Company completed an internal reorganization in December 2016, Verso Paper Holding LLC ceased to exist and Verso Paper became the borrower under the Credit Facilities. On February 6, 2019, Verso Paper 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 or (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. 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) the Federal Funds 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 is also 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. The amount of borrowings and letters of credit available to Verso Paper pursuant to the ABL Facility is limited to the lesser of $350 million or an amount determined pursuant to a borrowing base ($197 million as of December 31, 2020). As of December 31, 2020, the outstanding balance of the ABL Facility was zero, with $21 million issued in letters of credit and $176 million available for future borrowings. 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 Verso, among other things, to maintain a minimum fixed charge coverage ratio if availability were to drop below prescribed thresholds. The ABL Facility also requires that certain payment conditions, as defined therein, are met in order for Verso to incur debt or liens, pay cash dividends, repurchase equity interest, prepay indebtedness, sell or dispose of assets and make investments in or merge with another company. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: December 31, (Dollars in millions) 2019 2020 Asset retirement obligations (1) $ 15 $ 8 Employee related obligations 15 16 Operating lease liabilities 6 6 Deferred compensation 4 4 Other 1 — Other long-term liabilities $ 41 $ 34 (1) 2020 includes a reduction of $6 million in asset retirement obligations that were assumed in the Pixelle Sale (see Note 4). |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table provides a reconciliation of the basic and diluted loss or income per common share: Year Ended December 31, 2018 2019 2020 Net income (loss) available to common stockholders (in millions) $ 171 $ 70 $ (101) Weighted average common shares outstanding - basic (in thousands) 34,514 34,625 34,232 Dilutive shares from stock awards (in thousands) 582 509 — Weighted average common shares outstanding - diluted (in thousands) 35,096 35,134 34,232 Basic income (loss) per share $ 4.97 $ 2.03 $ (2.95) Diluted income (loss) per share $ 4.88 $ 2.00 $ (2.95) As a result of the net loss from continuing operations for the year ended December 31, 2020, 0.8 million restricted stock units were excluded from the calculation of diluted earnings per share as their inclusion would be anti-dilutive. As of December 31, 2020, Verso has 2.3 million warrants outstanding at an adjusted exercise price of $21.67 (prior to September 18, 2020 there were 1.8 million warrants outstanding at an exercise price of $27.86) (see Note 13). As a result of the exercise price of the warrants exceeding the average market price of Verso’s common stock during each of the years ended December 31, 2018, 2019 and 2020, 1.8 million warrants were excluded from the calculations of diluted earnings per share for the years ended December 31, 2018 and 2019, and 2.3 million warrants were excluded from the calculation of diluted earnings per share for the year ended December 31, 2020, as their inclusion would be anti-dilutive. The above table presents corrected 2019 amounts (see Note 1). |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT BENEFITS | RETIREMENT 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. As of December 31, 2020, this plan covers 57% 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. All of the defined benefit pension plans are frozen to new entrants. Some of the pension plan participants previously in the NewPage Retirement Plan for Bargained Hourly Employees 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 Non-Bargained 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). During the fourth quarter of 2019, Verso offered a voluntary lump-sum option, on a temporary basis, to certain terminated vested and retired participants in the Verso Corporation Employee Pension Plan. The election period to participate began October 24, 2019 and ended November 22, 2019. Lump-sum payments were distributed primarily in November and December 2019 with the remaining payments distributed in 2020, to those participants who were eligible and elected this form of payment. This action resulted in a settlement gain of $13 million, included in Other (income) expense on the Consolidated Statement of Operations for the year ended December 31, 2019. During the third quarter of 2020, in connection with the completed transfer of the unfunded pension liabilities assumed by Pixelle, as part of the Pixelle Sale (see Note 4), Verso remeasured its pension plan assets and liabilities as of September 30, 2020. For the remeasurement, the discount rate was updated to 2.71% from 3.11%. The remeasurement resulted in a $162 million increase in Pension benefit obligation and a $119 million loss, net of tax, included in Accumulated other comprehensive income (loss) as of September 30, 2020, and a settlement loss of $1 million in the third quarter of 2020 included in Other operating (income) expense on the Consolidated Statement of Operations for the year ended December 31, 2020. The following tables summarize the components of net periodic pension cost (income) of Verso’s pension plans for the periods presented: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Service cost $ 6 $ 4 $ 3 Interest cost 60 65 45 Expected return on plan assets (73) (70) (65) Settlement — (13) 1 Net periodic pension cost (income) $ (7) $ (14) $ (16) The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (income) loss: December 31, (Dollars in millions) 2019 2020 Net actuarial (gain) loss, net of tax $ (122) $ (60) 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. Contributions to the pension plans were $43 million in 2018, $42 million in 2019 and $49 million in 2020. In 2021, Verso expects to make cash contributions to the pension plan of $46 million. The following table sets forth a reconciliation of the pension plans’ benefit obligations, plan assets and funded status for the periods presented: Year Ended December 31, (Dollars in millions) 2019 2020 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 1,590 $ 1,542 Settlement (55) (9) Service cost 4 3 Interest cost 65 45 Actuarial (gain) loss 170 113 Acquisitions/(divestitures) — (58) Benefits paid (85) (87) Curtailment — 2 Settlement payments (147) (24) Benefit obligation at end of period $ 1,542 $ 1,527 Change in Plan Assets: Plan assets at fair value at beginning of period $ 1,162 $ 1,173 Settlement payments (147) (24) Actual net return on plan assets 201 87 Employer contributions 42 49 Acquisitions/(divestitures) — (21) Benefits paid (85) (87) Plan assets at fair value at end of period $ 1,173 $ 1,177 Funded (underfunded) status at end of period $ (369) $ (350) During 2020, the largest contributor to the $113 million actuarial loss affecting the benefit obligation was the decrease in the discount rate used to measure the benefit obligation, from 3.11% as of December 31, 2019 to 2.57% as of December 31, 2020. In addition, the mortality projection scale was updated, which decreased the benefit obligation, and the commencement assumption for terminated vested participants was updated to better align with expectations, which increased the benefit obligation. During 2019, the largest contributor to the $170 million actuarial loss affecting the benefit obligation was the decrease in the discount rate used to measure the benefit obligation, from 4.17% as of December 31, 2018 to 3.11% as of December 31, 2019, partially offset by updates to the mortality projection scale assumption. The following table summarizes expected future pension benefit payments from the plan: (Dollars in millions) 2021 $ 93 2022 94 2023 93 2024 93 2025 92 2026 - 2030 441 Verso evaluates the actuarial assumptions annually as of December 31 (the measurement date), unless a significant event occurs during the year requiring a remeasurement (such as a plan amendment, settlement, or curtailment). Verso 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: Year Ended December 31, Nine months ended September 30, Three months ended December 31, 2018 2019 2020 2020 Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate 4.17 % 3.11 % 2.71 % 2.57 % 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 3.51 % 4.17 % 3.11 % 2.71 % Rate of compensation increase N/A N/A N/A N/A Expected long-term return on plan assets 6.50 % 7.00 % 6.50 % 6.50 % Cash balance interest credit rate 4.60 % 4.49 % 4.33 % 4.33 % 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 2019 Allocation on 2020 Allocation on Targeted December 31, Targeted December 31, Allocation 2019 Allocation 2020 Fixed income: 25-55% 25-55% Cash and cash equivalent 3 % 1 % Fixed income funds 31 % 37 % Equity securities: 35-65% 35-65% Domestic equity funds - large cap 34 % 29 % Domestic equity funds - small cap 5 % 5 % International equity funds 17 % 18 % 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 net asset value, or “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. 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 Cash and cash equivalent $ 10 $ — $ 10 $ — $ — Fixed income 431 7 424 — — Domestic equity - large cap 344 — 1 — 343 International equity 217 95 — — 122 Domestic equity - mid cap 1 — — 1 — Domestic equity - small cap 54 3 — — 51 Other (hedge funds, private equity, real estate, commodities) 122 13 — — 109 Total assets at fair value (1) $ 1,179 $ 118 $ 435 $ 1 $ 625 December 31, 2019 Cash and cash equivalent $ 38 $ — $ 38 $ — $ — Fixed income 360 — 347 13 — Domestic equity - large cap 394 — 1 — 393 International equity 202 78 — 1 123 Domestic equity - small cap 60 1 — — 59 Other (hedge funds, private equity, real estate, commodities) 119 14 — — 105 TTotal assets at fair value $ 1,173 $ 93 $ 386 $ 14 $ 680 (1) Excludes net payables of $2 million as of December 31, 2020, which consists of interest, dividends, and receivables and payables related to pending securities sales and purchases. 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 and equity securities, for the years ended December 31, 2019 and 2020: (Dollars in millions) Fair Value Balance, December 31, 2018 $ 4 Purchase of securities 16 Sale of securities (3) Change in the fair value of current securities (2) Transfers into Level 3 — Transfers out of Level 3 (1) Balance, December 31, 2019 $ 14 Purchase of securities 1 Sale of securities — Change in the fair value of current securities — Transfers out of Level 3 (14) Balance, December 31, 2020 $ 1 For the year ended December 31, 2019 and December 31, 2020, $1 million and $14 million, respectively of investments transferred from Level 3 to Level 2 and Level 1 due to changes in the observability of significant inputs. 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, 2020, using the NAV per share derived by the fund managers as a practical expedient that have unfunded commitments and/or redemption restrictions. To derive the estimated NAV per share, the fund managers apply various methodologies, including, but not limited to, use of proprietary estimation models, quoted market prices or third-party valuations for underlying securities within the investments, evaluating contributions, distributions, interest, dividends and management fees, as well as evaluating the general market conditions and their correlation and impact on the investments. December 31, 2020 (Dollars in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Debt securities hedge fund (1) 78 0 Semi-Annually 90 days Private equity (2) 11 2 N/A N/A $ 89 $ 2 (1) The fund’s objective is to achieve superior risk-adjusted total returns by investing primarily in public and private non-investment grade and non-rated 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. (2) 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. 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. Year Ended December 31, (Dollars in millions) 2018 2019 2020 Defined Contribution Plans Non-elective employer contribution $ 14 $ 13 $ 8 Employer 401(k) matching contributions 14 14 9 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
EQUITY | EQUITY Equity Awards The Verso Corporation Performance Incentive Plan, or the “2016 Incentive Plan,” became effective on July 15, 2016 and no stock awards were issued on that date. 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, 2020, we had 2.1 million shares of common stock reserved for future issuance under the 2016 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. During 2020, Verso granted 0.2 million time-based restricted stock units and 0.2 million performance-based restricted stock units to its executives and certain senior managers. The performance awards granted vest on the performance determination date following the end of the performance period, subject to a comparison of annualized total shareholder return, or “TSR,” of Verso to a select group of peer companies over a 3-year period ending December 31, 2022. 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 assuming that the employee is employed continuously to the vesting date. The number of shares which will ultimately vest at the vesting date ranges from 0% to 150% based on Verso stock performance relative to the peer group during the performance period. The compensation expense associated with these performance awards was determined using the Monte Carlo valuation methodology. On May 11, 2020, the threshold requirement for vesting of achieving a 5% annualized TSR was eliminated for performance units granted in 2019 and 2020. This change was considered a modification of each award and required Verso to incur additional compensation cost for the incremental difference in the fair value between the modified award (post-modification) and original award (pre-modification) over the remaining vesting period. The incremental difference was $1.60 and $3.75 per unit for the 2019 and 2020 performance grants, respectively. Verso recognized equity award expense of $8 million, $12 million and $5 million for the years ended December 31, 2018, 2019 and 2020, respectively. Equity award expense for the year ended December 31, 2020 included $0.3 million related to the accelerated vesting of 108 thousand performance-based restricted stock units and 155 thousand time-based restricted stock units. Amounts are net of the cancellation of 103 thousand time-based and 102 thousand performance-based restricted stock units and dividend equivalent units, pursuant to separation agreements with key members of management. As of December 31, 2020, there was $4 million of unrecognized compensation cost related to the 0.8 million non-vested restricted stock units, which is expected to be recognized over the weighted average period of 1.8 years. Time-based Restricted Stock Units The following table summarizes activity for the time-based restricted stock units: (In thousands, except per share amounts) Restricted Stock Units Weighted Average Grant Date Fair Value per Share 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 Granted 192 20.57 Vested (154) 14.16 Forfeited (137) 13.81 Non-vested at December 31, 2019 579 11.55 Granted 250 15.55 Dividend equivalent units (1) 167 — Vested (405) 10.00 Forfeited (170) 13.76 Non-vested at December 31, 2020 421 $ 9.95 (1) Dividend equivalent units on certain restricted stock unit awards for dividends related to the stock units granted but not yet vested at the time cash dividends were paid. Performance-based Restricted Stock Units The following table summarizes activity for the performance-based restricted stock units: 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 Granted 244 17.35 Vested (233) 20.92 Forfeited (11) 17.50 Non-vested at December 31, 2019 638 18.84 Granted 206 16.38 Dividend equivalent units (1) 136 — Incremental shares vested (2) 161 — Vested (555) 21.05 Forfeited (162) 13.71 Non-vested at December 31, 2020 424 $ 12.21 (1) Dividend equivalent units on certain restricted stock unit awards for dividends related to the stock units granted but not yet vested at the time cash dividends were paid. (2) Incremental shares are a result of performance at 150% of granted shares associated with the 2017 performance awards. Share Repurchase Authorization and Dividends On February 26, 2020, Verso’s Board of Directors authorized up to $250 million of net proceeds from the Pixelle Sale to be used to repurchase outstanding shares of Verso common stock. In conjunction with the declaration of the special dividend of $3.00 per share, or $101 million, on August 5, 2020, Verso’s Board of Directors reduced Verso’s total share repurchase authorization from $250 million to $150 million. During the year ended December 31, 2020, Verso purchased approximately 2.2 million shares of its common stock through open market purchases and 10b-5 programs under the share repurchase authorization at a weighted average cost of $13.39 per share. As of December 31, 2020, $121 million of the $150 million authorized remained. Cash dividends on shares of Verso common stock during the year ended December 31, 2020 are shown in the following table: Quarter Date Declared Date of Record Date Paid Amount 2 nd May 12 June 15 June 29 $ 0.10 3 rd August 5 September 18 September 28 $ 0.10 3 rd August 5 September 18 September 28 $ 3.00 4 th November 9 December 18 December 29 $ 0.10 On February 5, 2021, Verso’s Board of Directors declared a quarterly cash dividend of $0.10 per share of Verso common stock, payable on March 29, 2021, to stockholders of record on March 18, 2021. Warrants On July 15, 2016, warrants to purchase up to an aggregate of 1.8 million shares of Class A common stock were issued to holders of first-lien secured debt at an initial exercise price of $27.86 per share and a seven-year term. In connection with the 2.2 million shares of Verso common stock repurchased pursuant to Verso’s share repurchase authorization and the ordinary and special dividends declared during the twelve months ended December 31, 2020, the number of shares of Verso common stock issuable upon exercise of each warrant increased from one share of common stock to 1.29 shares of common stock and the warrant exercise price was reduced from $27.86 per share to $21.67 per share, each effective as of September 18, 2020. If all warrants were exercised, the company would issue 2.3 million shares of Class A common stock and receive $50 million in proceeds. The warrants expire on July 15, 2023. As of December 31, 2020, no warrants have been exercised. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES Duluth Mill — On December 31, 2020, Verso decided to permanently shut down the paper mill in Duluth, Minnesota while continuing with efforts to sell the mill. Management’s decision was made in response to the continued accelerated decline in printing and writing paper demand resulting from the COVID-19 pandemic. The closure of the Duluth Mill, which has been idle since July 2020, reduced Verso’s total annual production capacity by approximately 270,000 tons of supercalendered paper. Verso furloughed approximately 190 employees when the mill was idled in July 2020, while a smaller group of approximately 35 employees remained at the mill to maintain critical systems (see Note 1). In connection with the closure of the Duluth Mill, Verso recognized $65 million of accelerated depreciation which is included in Depreciation and amortization on the Consolidated Statement of Operations for the year ended December 31, 2020. The following table details the charges incurred related to the Duluth Mill closure as included in Restructuring charges on the Consolidated Statement of Operations: Year Ended Cumulative (Dollars in millions) December 31, 2020 Incurred Property, plant and equipment, net $ 3 $ 3 Severance and benefit costs 1 1 Write-off of spare parts and inventory 2 2 Write-off of purchase obligations and commitments 1 1 Total restructuring costs $ 7 $ 7 The following table details the changes in the restructuring reserve liabilities related to the permanent shut down of the Duluth Mill which are included in Accrued and other liabilities on the Consolidated Balance Sheet: Year Ended (Dollars in millions) December 31, 2020 Beginning balance of reserve $ — Severance and benefits 1 Purchase obligations 1 Ending balance of reserve $ 2 Closure of Luke Mill — On April 30, 2019, Verso announced that it would 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 environmental regulation. Verso completed the shutdown and closure of the Luke Mill in June 2019, which reduced Verso’s coated freesheet production capacity by approximately 450,000 tons and eliminated approximately 675 positions. In connection with the announced closure of the Luke Mill, Verso recognized $76 million of accelerated depreciation which is included in Depreciation and amortization on the Consolidated Statements of Operations for the year ended December 31, 2019. The following table details the charges incurred related to the Luke Mill closure as included in Restructuring charges on the Consolidated Statements of Operations: Year Ended Year Ended Cumulative (Dollars in millions) December 31, 2019 December 31, 2020 Incurred Property, plant and equipment, net $ 10 $ — $ 10 Severance and benefit costs 19 (1) 18 Write-off of spare parts and inventory 9 — 9 Write-off of purchase obligations and commitments 1 — 1 Other costs 13 6 19 Total restructuring costs $ 52 $ 5 $ 57 The following table details the changes in the restructuring reserve liabilities related to the Luke Mill closure which are included in Accounts payable and Accrued and other liabilities on the Consolidated Balance Sheets: Year Ended December 31, (Dollars in millions) 2019 2020 Beginning balance of reserve $ — $ 4 Severance and benefits 19 — Severance and benefit payments (17) — Severance and benefits reserve adjustments (1) (1) Purchase obligations 1 — Purchase obligations payments (1) — Other costs 13 5 Payments on other costs (10) (8) Ending balance of reserve $ 4 $ — |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following is a summary of the components of the (benefit) provision for income taxes for Verso: Year Ended December 31, (Dollars in millions) 2018 2019 (1) 2020 Current tax (benefit) provision: U.S. federal $ — $ — $ — U.S. state and local — 1 — Total current tax (benefit) provision — 1 — Deferred tax (benefit) provision: U.S. federal 35 22 (9) U.S. state and local (31) 1 (9) Total deferred tax (benefit) provision 4 23 (18) Less: valuation allowance (4) (115) 9 Total income tax (benefit) provision $ — $ (91) $ (9) (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: U.S. federal deferred tax provision (previously reported as a benefit of $4 million), Total deferred tax provision (previously reported as a benefit of $2 million), and Total income tax benefit (previously reported as $117 million). A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: Year Ended December 31, (Dollars in millions) 2018 2019 (1) 2020 Tax at Statutory U.S. Rate of 21% $ 36 $ (4) $ (23) Changes resulting from: Deferred tax adjustments — 26 12 Other expenses (1) — 2 Net permanent differences (1) 26 14 Valuation allowance (4) (115) 9 State income taxes (benefit) (31) 2 (9) Other — — — Total income tax (benefit) provision $ — $ (91) $ (9) (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: Deferred tax adjustments (previously reported as zero), Net permanent differences (previously reported as $(1) million), and Total income tax benefit (previously reported as $117 million). The following is a summary of the significant components of the net deferred tax asset (liability): December 31, (Dollars in millions) 2019 (1) 2020 Deferred tax assets: Net operating loss $ 54 $ 79 Credit carryforwards 44 36 Pension 91 88 Compensation obligations 15 10 Inventory reserves/capitalization 24 19 Capitalized expenses 4 4 Other 12 9 Gross deferred tax assets 244 245 Less: valuation allowance (11) (20) Deferred tax assets, net of allowance $ 233 $ 225 Deferred tax liabilities: Property, plant and equipment $ (131) $ (95) Intangible assets (5) (4) Other (5) (4) Total deferred tax liabilities (141) (103) Net deferred tax assets $ 92 $ 122 (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: Pension (previously reported as $123 million), Gross deferred tax assets (previously reported as $276 million), Deferred tax assets, net of allowance (previously reported as $265 million), Property, plant and equipment (previously reported as $137 million), Total deferred tax liabilities (previously reported as $147 million), and Net deferred tax assets (previously reported as $118 million). We regularly evaluate the need for an income tax valuation allowance for deferred tax assets by assessing whether it is more likely than not that we will realize the deferred tax assets. At December 31, 2020, we considered the existence of recent cumulative income from continuing operations as a source of positive evidence and concluded to increase a portion of the income tax valuation allowance. To determine the appropriate income tax valuation allowance, we considered the timing of future reversal of our taxable temporary differences that supports realizing a portion of our deferred tax assets. The income tax valuation allowance for deferred tax assets as of December 31, 2019 and 2020 was $11 million and $20 million, respectively. The increase in the income tax valuation allowance in 2020 of $9 million is primarily attributable to a decrease in projected future utilization of certain state tax credits to offset future state tax liabilities. It is less than more likely than not that Verso will realize the carryforward benefits of all of these state tax credits in the future. In 2018, 2019 and 2020, Verso allocated zero, $1 million of tax expense and $22 million of tax benefit, respectively, to Other comprehensive income (loss). At December 31, 2019, Accumulated other comprehensive income includes $16 million of allocated tax expense. At December 31, 2020, Accumulated other comprehensive income includes $6 million of allocated tax benefit. Verso has federal net operating loss carryforwards totaling $444 million as of December 31, 2020, some of which begin to expire at the end of 2034. These net operating losses have been reduced by attribute reduction and Internal Revenue Code Section 382 limits to $336 million available to be utilized in the future. $199 million of the federal net operating loss carryforwards begin to expire at the end of 2034 and $137 million of the federal net operating loss carryforwards never expire under the provisions of the U.S. Tax Cuts and Jobs Act of 2017. Verso has state net operating loss carryforwards, after apportionment, totaling $162 million available to be utilized in the future as of December 31, 2020. Verso has a state income tax credit of $36 million, with a 15-year carryforward period, which begins to expire in 2024. Verso has research and development credit carryforwards of $4 million which begin to expire in 2036. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollars in millions) Balance at December 31, 2018 $ 2 Additions — Reductions — Balance at December 31, 2019 2 Additions — Reductions — Balance at December 31, 2020 $ 2 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, 2019 and 2020. The amount of expense (benefit) for interest and penalties included in the Consolidated Statements of Operations was zero for all periods presented. 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. Verso files income tax returns in the United States for federal and various state jurisdictions. As of December 31, 2020, periods beginning in 2017 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 2017. As of December 31, 2020, there are no ongoing federal or state income tax audits. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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, 2020. (Dollars in millions) 2021 $ 21 2022 19 2023 16 2024 14 2025 6 Thereafter 4 Total $ 80 Represented Employees — As of December 31, 2020, 52% of Verso’s 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 local branches, or approximately 80% of Verso’s hourly represented workforce as of December 31, 2019. 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 are participating in the Agreement. The remaining four smaller trade unions at two of the mill sites ratified new agreements in the fourth quarter of 2019. During the year ended December 31, 2019, Verso recognized $7 million of expense for signing bonuses and for the settlement of various work arrangement issues, to represented employees covered by the Agreements, which was included in Cost of products sold on the Consolidated Statement of Operations. 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 eleven Settlement Agreement — On March 20, 2018, Verso entered into a settlement agreement, or “the Settlement Agreement,” with Canadian producers of supercalendered paper, Port Hawkesbury Paper Limited Partnership and certain related entities, collectively, “Port Hawkesbury” and Irving Paper Limited, or “Irving”. In accordance with the terms of the Settlement Agreement, Verso filed with the U.S. Department of Commerce, or “Commerce,” a written request for a “no interest” changed circumstances review by Commerce of the final countervailing duty order, or the “CVD Order,” issued by Commerce on December 10, 2015, imposing tariffs on supercalendered paper imported into the United States from Canada since August 3, 2015; such request is referred to as the “Changed Circumstances Request”. Included in the Changed Circumstances Request, among other things, was a request that Commerce revoke the CVD Order retroactively to August 3, 2015, which, if granted, would result in refunds to Canadian producers of supercalendered paper of all countervailing duties collected on supercalendered paper imported into the United States from such producers under the CVD Order. On July 5, 2018, Commerce granted the request and revoked the countervailing duties retroactively to August 3, 2015, the date the tariffs were originally imposed, which will result in a refund to Canadian producers of supercalendered paper of the countervailing duties previously collected on supercalendered paper imported into the United States from such producers. Pursuant to the Settlement Agreement, Irving and Port Hawkesbury agreed to pay Verso a percentage, totaling up to $42 million, of the duties refunded to such parties over time. During the year ended December 31, 2018, $42 million in settlement payments were received by Verso and are included in Other (income) expense on the Consolidated Statement of Operations. 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. In November 2019, the state of West Virginia asserted in an administrative enforcement action that three above-ground storage tanks at Verso’s Luke Mill leaked and that Verso had failed to take certain actions to prevent and report the release of pollutants into the North Branch of the Potomac River. In March 2020, the Potomac Riverkeeper Network (“PRKN”) filed a federal lawsuit against Verso alleging the improper handling, storage, and disposal of wastes generated at the Luke Mill. In May 2020, Maryland joined the PRKN lawsuit and in July 2020, Maryland obtained dismissal of a lawsuit that it previously had filed with respect to the same facts. The Luke Mill sits on the border of West Virginia and Maryland, and it was closed in June 2019. Verso has worked cooperatively with the States of Maryland and West Virginia to address impacts to the environment at our Luke Mill from previous historic operations related to the alleged violations of state and federal environmental laws. Verso has undertaken actions to identify the extent of such impacts and has installed, and is continuing ongoing evaluation and installation of, remedial measures to address these impacts. Verso is currently engaged in settlement negotiations with the states of Maryland and West Virginia and with the PKRN. Verso believes that it is nearing agreements in principle with the two states and the PKRN to settle all claims related to these environmental impacts including the installation of remedial measures and the payment of civil penalties to the two states. If settlement terms with the State of West Virginia are reached, Verso anticipates that the State of West Virginia would file an action in West Virginia state court and would have a consent decree entered to effect the settlement. As a result of Verso’s ongoing discussions with the States of Maryland and West Virginia and the PRKN, it has reserved an estimated amount for the potential settlements of these disputes in its financial statements as of December 31, 2020. During 2019 and 2020, Verso recorded $3 million and $7 million, respectively, in Cost of products sold on the Consolidated Statements of Operations for costs related to environmental remediation efforts, of which $2 million and $5 million is included in Accrued and other liabilities on the Consolidated Balance Sheets as of December 31, 2019 and 2020, respectively. |
UNAUDITED QUARTERLY DATA
UNAUDITED QUARTERLY DATA | 12 Months Ended |
Dec. 31, 2020 | |
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 2019 2019 2019 2019 2020 2020 2020 2020 Summary Statement of Operations Data: Net sales $ 639 $ 602 $ 616 $ 587 $ 471 $ 268 $ 306 $ 314 Cost of products sold (exclusive of depreciation and amortization) 549 540 536 513 427 271 309 327 Depreciation and amortization 28 104 25 26 23 22 21 87 Selling, general and administrative expenses 24 29 23 28 27 16 19 15 Restructuring charges — 40 4 8 6 — (2) 8 Other operating (income) expense (1) 1 1 — 2 (88) 1 3 (5) Interest expense 1 1 — — — — 1 — Other (income) expense (2) (1) (1) (1) (15) (4) (5) (5) (5) Income tax expense (benefit) (3)(4) 1 — (1) (91) 26 (3) (9) (23) Net income (loss) (4) 36 (112) 30 116 54 (34) (31) (90) Share Data: Income (loss) per common share: Basic (4)(5) $ 1.05 $ (3.23) $ 0.86 $ 3.35 $ 1.53 $ (0.99) $ (0.92) $ (2.67) Diluted (4)(5) 1.03 (3.23) 0.85 3.30 1.52 (0.99) (0.92) (2.67) Weighted average shares of common stock outstanding (thousands): Basic 34,484 34,626 34,686 34,702 35,107 34,548 33,675 33,558 Diluted 35,225 34,626 35,137 35,232 35,381 34,548 33,675 33,558 Closing price per share: High $ 25.80 $ 23.22 $ 19.23 $ 18.93 $ 19.13 $ 17.01 $ 14.41 $ 12.43 Low 18.47 16.67 9.90 12.15 10.71 10.25 7.82 7.58 Period-end 21.42 19.05 12.38 18.03 11.35 11.89 8.03 12.01 (1) First quarter of 2020 other operating income primarily associated with the gain on the sale of Androscoggin and Stevens Point mills. (2) Fourth quarter of 2019 other income primarily associated with the pension settlement gain. (3) Fourth quarter of 2019 income tax benefit primarily associated with a release of the income tax valuation allowances on all federal deferred tax assets and certain state tax credits. (4) Previously reported fourth quarter of 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected fourth quarter of 2019 amounts for the following line items: Income tax benefit (previously reported as $117 million), Net income (previously reported as $142 million), Basic income per common share (previously reported as $4.10), and Diluted income per common share (previously reported as $4.04). (5) 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 27, 2021, Verso’s Board of Directors appointed Randy J. Nebel as Verso’s President and Chief Executive Officer. On February 5, 2021, Verso’s Board of Directors declared a quarterly cash dividend of $0.10 per share of Verso's common stock, payable on March 29, 2021, to stockholders of record on March 18, 2021. On February 8, 2021, Verso decided to permanently shut down its No. 14 paper machine and certain other long-lived assets at its paper mill in Wisconsin Rapids, Wisconsin, while continuing to explore viable and sustainable alternatives with the remaining assets, including its converting operation, No. 16 paper machine and other remaining long-lived assets. This decision was made in response to the continued accelerated decline in printing and writing paper demand. The decision to permanently shut down its No. 14 paper machine and certain other long-lived assets, which have been idle since July 2020, will permanently reduce Verso’s total annual production capacity by approximately 185,000 tons of coated paper. Verso furloughed approximately 700 employees when the Wisconsin Rapids Mill was idled in July 2020, and does not expect to further reduce the number of employees from what was already recognized. In the first quarter of 2021, Verso expects to recognize $95 million to $105 million of accelerated depreciation and pre-tax non-cash charges associated with its No. 14 paper machine and certain other long-lived assets. |
SUMMARY OF BUSINESS AND BASIS_2
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business — Verso’s core business platform is as a producer of graphic paper, specialty paper, packaging paper and Northern Bleached Hardwood Kraft, or “NBHK,” pulp. Verso’s products are used primarily in media and marketing applications, including catalogs, magazines, commercial printing applications, such as high-end advertising brochures and direct-mail advertising, and specialty applications, such as flexible packaging and label and converting. Verso’s NBHK pulp is used to manufacture printing, writing and specialty paper grades, tissue and other products. 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. In 2018, 2019 and 2020, pulp net sales and gross margin, excluding depreciation and amortization expense, were each less than 10% of respective consolidated balances. 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 — This report contains the Consolidated Financial Statements of Verso as of December 31, 2019 and 2020, and for the years ended December 31, 2018, 2019 and 2020. 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/Shipping and Handling Costs | 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 on the Consolidated Statements of Operations. 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, such as freight to customer destinations, are included in Cost of products sold on 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 | Planned Major Maintenance Costs — 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. |
Environmental Costs and Obligations | Environmental Costs and Obligations — In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations , and ASC Topic 450, Contingencies |
Equity Compensation | Equity Compensation — Verso accounts for equity awards in accordance with Accounting Standards Codification, or “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 generally 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 regularly reviews deferred tax assets for recoverability based upon an analysis of all positive and negative evidence, including expected future book income based on historical data and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets, as adjusted for income tax valuation allowances, will 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 |
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 and other 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 9 and Note 12 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. Trade accounts receivable balances were $145 million and $82 million at December 31, 2019 and 2020, respectively. Two customers together accounted for 25% of accounts receivable as of December 31, 2019 and two customers together accounted for 30% of accounts receivable as of December 31, 2020. 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 less than $1 million at both December 31, 2019 and 2020. |
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 Sheets (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) Buildings and building improvements 20 - 40 Land improvements 10 - 20 Machinery and equipment 3 - 20 Furniture and office equipment 10 Computer hardware and software 3 - 7 Leasehold 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 . The intangible assets 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 included 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 included in Intangibles and other assets, net on the Consolidated Balance Sheets. 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 |
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. |
Recent Accounting Pronouncements | Accounting Guidance Adopted in 2020 ASC Topic 350, Intangible Assets - Goodwill & Other . In August 2018, the Financial Accounting Standards Board, or “FASB,” issued Accounting Standards Update, or “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. Verso adopted this guidance on January 1, 2020 on a prospective basis and the effect on the Consolidated Financial Statements was not material. ASC Topic 326, Financial Instruments – Credit Losses . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the current incurred loss impairment method with a method that reflects expected credit losses. Adoption of this standard is through a cumulative-effect adjustment to retained earnings as of the effective date. Verso adopted this guidance on January 1, 2020, and the effect on the Consolidated Financial Statements was not material. ASC Topic 715, Compensation – Retirement Benefits – Defined Benefit Plans – General . In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which adds, removes and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. We adopted this guidance as of January 1, 2020, and changes are reflected within our benefit plan disclosures. ASC Topic 820, Fair Value Measurement . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measuremen t, which modifies disclosure requirements related to fair value measurement. Verso adopted this guidance on January 1, 2020, and the effect on the Consolidated Financial Statements was not material. Accounting Guidance Not Yet Adopted ASC Topic 740, Income Taxes . In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce the complexity in accounting for income taxes. It is effective for annual periods, and interim periods within those years, beginning after December 15, 2020, and is not expected to have a material effect on the Consolidated Financial Statements. |
SUMMARY OF BUSINESS AND BASIS_3
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents the revenue disaggregated by product included in Net sales on the Consolidated Statements of Operations: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Paper $ 2,476 $ 2,224 $ 1,175 Pulp 139 117 118 Packaging 67 103 66 Net sales $ 2,682 $ 2,444 $ 1,359 The following table presents the revenue disaggregated by sales channel included in Net sales on the Consolidated Statements of Operations: Year Ended December 31, (Dollars in millions) 2018 2019 2020 End-users and Converters $ 1,091 $ 1,119 $ 476 Brokers and Merchants 1,172 936 641 Printers 419 389 242 Net sales $ 2,682 $ 2,444 $ 1,359 |
Estimated Useful Lives of Property, Plant, and Equipment | Estimated useful lives are as follows: (Years) Buildings and building improvements 20 - 40 Land improvements 10 - 20 Machinery and equipment 3 - 20 Furniture and office equipment 10 Computer hardware and software 3 - 7 Leasehold improvements Over the shorter of the lease term or the useful life of the improvements |
Activity Related to Asset Retirement Obligations Included in Other Long-term 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 on the Consolidated Balance Sheets: Year Ended December 31, (Dollars in millions) 2019 2020 Asset retirement obligations, beginning balance $ 14 $ 16 Settlement of existing liabilities — — Accretion expense 2 1 Adjustments to existing liabilities (1) — (9) Asset retirement obligations, ending balance 16 8 Less: Current portion (1) — Non-current portion of asset retirement obligations, ending balance $ 15 $ 8 (1) Includes $7 million in asset retirement obligations that were assumed by the buyer in the Pixelle Sale (see Note 4). |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Balance Type | The following table summarizes the changes in Accumulated other comprehensive income (loss) by balance type for the years ended December 31, 2018, 2019 and 2020: (Dollars in millions) Accumulated other comprehensive income as of December 31, 2017 $ 132 Pension and other postretirement 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 120 Pension adjustment, net 2 Net increase in other comprehensive income 2 Accumulated other comprehensive income as of December 31, 2019 122 Pension adjustment, net (62) Net decrease in other comprehensive income (62) Accumulated other comprehensive income as of December 31, 2020 $ 60 |
Corrected Line items in Balance Sheets, Statement of Operations and Statement of Cash Flows | The following table presents the as corrected line items in the Consolidated Balance Sheet as of December 31, 2019: December 31, 2019 (Dollars in millions) As Reported As Corrected Deferred tax assets $ 118 $ 92 Total assets $ 1,721 $ 1,695 Retained earnings $ 198 $ 172 Total equity $ 1,013 $ 987 Total liabilities and equity $ 1,721 $ 1,695 December 31, 2019 (Dollars in millions, except per share amounts) As Reported As Corrected Income tax expense (benefit) $ (117) $ (91) Net income (loss) $ 96 $ 70 Income (loss) per common share: Basic $ 2.78 $ 2.03 Diluted $ 2.74 $ 2.00 The following table presents the as corrected line items in the Consolidated Statement of Cash Flows for the year ended December 31, 2019: December 31, 2019 (Dollars in millions) As Reported As Corrected Net income (loss) $ 96 $ 70 Deferred taxes $ (117) $ (91) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | December 31, (Dollars in millions) 2019 2020 Raw materials $ 80 $ 45 Work-in-process 51 31 Finished goods 233 125 Replacement parts and other supplies 31 23 Inventories $ 395 $ 224 |
DISPOSITIONS (Tables)
DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Components of Gain on Sale | The following table summarizes the components of the gain on sale: (Dollars in millions) Cash proceeds $ 352 Less: costs to sell (7) Net cash proceeds 345 Less: assets and liabilities associated with the sale Accounts receivable, net 40 Inventories 90 Property, plant and equipment, net 195 Write-off of intangible assets 5 Other assets 4 Accounts payable (33) Pension benefit obligation (37) Other liabilities (13) Gain on sale $ 94 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment, Net | Property, plant and equipment, net consist of the following: December 31, (Dollars in millions) 2019 2020 Land and land improvements $ 42 $ 26 Building and leasehold improvements 156 116 Machinery, equipment and other (1) 1,172 850 Construction-in-progress 47 17 Property, plant and equipment, gross 1,417 1,009 Accumulated depreciation (1) (472) (396) Property, plant and equipment, net $ 945 $ 613 (1) Includes finance lease assets and related amortization (see Note 8). |
Interest Costs Capitalized, Depreciation Expense and Finance Lease Asset Amortization Expense | Interest costs capitalized, depreciation expense and finance lease asset amortization expense for the periods presented are as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Interest costs capitalized $ 1 $ 2 $ 1 Depreciation expense 105 176 147 Finance lease asset amortization expense — 1 1 |
INTANGIBLES AND OTHER ASSETS,_2
INTANGIBLES AND OTHER ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangibles and Other Assets, Net | Intangibles and other assets, net consist of the following: December 31, (Dollars in millions) 2019 2020 Intangible assets: Customer relationships, net of accumulated amortization of $9 million on December 31, 2019 and $9 million on December 31, 2020 (1) $ 17 $ 11 Trademarks, net of accumulated amortization of $11 million on December 31, 2019 and $12 million on December 31, 2020 (1) 5 1 Other assets: Operating leases 14 14 Deferred compensation 4 4 Restricted cash 2 2 ABL Facility unamortized debt issuance cost, net 2 2 Other 15 10 Intangibles and other assets, net $ 59 $ 44 (1) In connection with the Pixelle Sale in 2020 (see Note 4), Customer relationships gross intangible asset was reduced by $6 million and related accumulated amortization was reduced by $2 million, and Trademarks gross intangible asset was reduced by $3 million and related accumulated amortization was reduced by $2 million. |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets for the periods presented is as follows: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Customer Relationships $ 2 $ 3 $ 2 Trademarks 4 3 3 |
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) 2021 $ 3 2022 2 2023 2 2024 2 2025 2 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | A summary of Accrued and other liabilities is as follows: December 31, (Dollars in millions) 2019 2020 Payroll and employee benefit costs $ 53 $ 43 Accrued sales rebates 16 11 Operating lease liabilities 8 8 Deferred income on Luke Mill equipment sale — 8 Accrued energy 7 5 Accrued environmental 2 5 Accrued taxes - other than income 4 4 Accrued freight 5 3 Accrued professional and legal fees 3 2 Accrued restructuring costs 2 2 Other 3 1 Accrued and other liabilities $ 103 $ 92 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Right-of-Use Assets and Associated Obligations for Operating and Finance Leases | The following table details right-of-use assets and associated obligations for operating and finance leases included on the Consolidated Balance Sheets for the periods presented: December 31, December 31, (Dollars in millions) Classification 2019 2020 Assets: Operating lease assets Intangibles and other assets, net $ 14 $ 14 Finance lease assets Property, plant and equipment, net (1) 7 5 Total leased assets $ 21 $ 19 Liabilities Current liabilities: Operating Accrued and other liabilities $ 8 $ 8 Finance Current maturities of long-term debt and finance leases 2 1 Non-current liabilities: Operating Other long-term liabilities 6 6 Finance Long-term debt and finance leases 5 4 Total lease liabilities $ 21 $ 19 (1) Finance lease assets are recorded net of accumulated amortization. |
Costs Associated with Leasing Transactions, Weighted Average Assumptions, and Cash Flow Details Associated with Leases | The following table details the costs associated with leasing transactions included on the Consolidated Statements of Operations for the periods presented: Year Ended Year Ended (Dollars in millions) Classification December 31, 2019 December 31, 2020 Operating lease cost Cost of products sold (exclusive of depreciation and amortization) $ 11 $ 10 Operating lease cost Selling, general and administrative expenses 1 1 Variable lease cost Cost of products sold (exclusive of depreciation and amortization) 8 7 Short term lease cost Cost of products sold (exclusive of depreciation and amortization) 3 3 Finance lease cost: Amortization of leased assets Depreciation and amortization 1 1 Interest on lease liabilities Interest expense — — Net lease cost $ 24 $ 22 The following assumptions were used to determine the right-of-use assets and obligations associated with Verso’s leases for the periods presented. Verso uses its incremental borrowing rate to value the right-of-use asset and related obligations. December 31, December 31, 2019 2020 Weighted average remaining lease term (years): Operating leases 2.2 2.1 Finance leases 4.4 3.7 Weighted average discount rate: Operating leases 4.3 % 2.7 % Finance leases 3.8 % 3.4 % The following table provides additional cash flow details associated with leases included in the Consolidated Statements of Cash Flows for the periods presented: Year Ended Year Ended (Dollars in millions) December 31, 2019 December 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows related to operating leases $ 12 11 Operating cash flows related to finance leases — — Financing cash flows related to finance leases 1 1 |
Future Operating Lease Payments Associated with Leases Commenced | The following table details the future lease payments associated with leases commenced as of December 31, 2020, including amounts for any renewal options that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases Leases Total 2021 $ 8 $ 2 $ 10 2022 4 2 6 2023 2 1 3 2024 1 1 2 Thereafter — — — Total lease payments 15 6 21 Imputed interest (1) (1) (2) Present value of lease liabilities $ 14 $ 5 $ 19 |
Future Finance Lease Payments Associated with Leases Commenced | The following table details the future lease payments associated with leases commenced as of December 31, 2020, including amounts for any renewal options that Verso has determined are reasonably certain to be exercised. Operating Finance (Dollars in millions) Leases Leases Total 2021 $ 8 $ 2 $ 10 2022 4 2 6 2023 2 1 3 2024 1 1 2 Thereafter — — — Total lease payments 15 6 21 Imputed interest (1) (1) (2) Present value of lease liabilities $ 14 $ 5 $ 19 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Interest Expense and Cash Interests Payments Related to 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: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Interest expense (1) $ 15 $ 3 $ 2 Cash interest paid 16 2 1 Debt issuance cost and discount amortization (2) 19 1 — (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 5 for additional information on capitalized interest costs). (2) Amortization of debt issuance cost and original issue discount, including accelerated amortization associated with the early extinguishment of the Term Loan Facility and the ABL Amendment, 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 LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Long-term Liabilities | Other long-term liabilities consist of the following: December 31, (Dollars in millions) 2019 2020 Asset retirement obligations (1) $ 15 $ 8 Employee related obligations 15 16 Operating lease liabilities 6 6 Deferred compensation 4 4 Other 1 — Other long-term liabilities $ 41 $ 34 (1) 2020 includes a reduction of $6 million in asset retirement obligations that were assumed in the Pixelle Sale (see Note 4). |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Loss or Income per Common Share | The following table provides a reconciliation of the basic and diluted loss or income per common share: Year Ended December 31, 2018 2019 2020 Net income (loss) available to common stockholders (in millions) $ 171 $ 70 $ (101) Weighted average common shares outstanding - basic (in thousands) 34,514 34,625 34,232 Dilutive shares from stock awards (in thousands) 582 509 — Weighted average common shares outstanding - diluted (in thousands) 35,096 35,134 34,232 Basic income (loss) per share $ 4.97 $ 2.03 $ (2.95) Diluted income (loss) per share $ 4.88 $ 2.00 $ (2.95) |
RETIREMENT BENEFITS (Tables)
RETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost (Income) of Pension Plans | The following tables summarize the components of net periodic pension cost (income) of Verso’s pension plans for the periods presented: Year Ended December 31, (Dollars in millions) 2018 2019 2020 Service cost $ 6 $ 4 $ 3 Interest cost 60 65 45 Expected return on plan assets (73) (70) (65) Settlement — (13) 1 Net periodic pension cost (income) $ (7) $ (14) $ (16) |
Detail on Net Actuarial (gain) Loss Recognized in Accumulated Other Comprehensive (Income) Loss | The following table provides detail on net actuarial (gain) loss recognized in Accumulated other comprehensive (income) loss: December 31, (Dollars in millions) 2019 2020 Net actuarial (gain) loss, net of tax $ (122) $ (60) |
Reconciliation of Pension Plan's Benefit Obligations, Plan Assets and Funded Status | The following table sets forth a reconciliation of the pension plans’ benefit obligations, plan assets and funded status for the periods presented: Year Ended December 31, (Dollars in millions) 2019 2020 Change in Projected Benefit Obligation: Benefit obligation at beginning of period $ 1,590 $ 1,542 Settlement (55) (9) Service cost 4 3 Interest cost 65 45 Actuarial (gain) loss 170 113 Acquisitions/(divestitures) — (58) Benefits paid (85) (87) Curtailment — 2 Settlement payments (147) (24) Benefit obligation at end of period $ 1,542 $ 1,527 Change in Plan Assets: Plan assets at fair value at beginning of period $ 1,162 $ 1,173 Settlement payments (147) (24) Actual net return on plan assets 201 87 Employer contributions 42 49 Acquisitions/(divestitures) — (21) Benefits paid (85) (87) Plan assets at fair value at end of period $ 1,173 $ 1,177 Funded (underfunded) status at end of period $ (369) $ (350) |
Summarized Expected Future Pension Benefit Payments | The following table summarizes expected future pension benefit payments from the plan: (Dollars in millions) 2021 $ 93 2022 94 2023 93 2024 93 2025 92 2026 - 2030 441 |
Actuarial Assumptions Used in Defined Benefit Pension Plans | The actuarial assumptions used in the defined benefit pension plans were as follows: Year Ended December 31, Nine months ended September 30, Three months ended December 31, 2018 2019 2020 2020 Weighted average assumptions used to determine benefit obligations as of end of period: Discount rate 4.17 % 3.11 % 2.71 % 2.57 % 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 3.51 % 4.17 % 3.11 % 2.71 % Rate of compensation increase N/A N/A N/A N/A Expected long-term return on plan assets 6.50 % 7.00 % 6.50 % 6.50 % Cash balance interest credit rate 4.60 % 4.49 % 4.33 % 4.33 % |
Pension Plan's Asset Allocation | The following table provides the pension plans’ asset allocation for the periods presented: Allocation of Plan Assets 2019 Allocation on 2020 Allocation on Targeted December 31, Targeted December 31, Allocation 2019 Allocation 2020 Fixed income: 25-55% 25-55% Cash and cash equivalent 3 % 1 % Fixed income funds 31 % 37 % Equity securities: 35-65% 35-65% Domestic equity funds - large cap 34 % 29 % Domestic equity funds - small cap 5 % 5 % International equity funds 17 % 18 % Other: 4-15% 4-15% Hedge funds, private equity, real estate, commodities 10 % 10 % |
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 Cash and cash equivalent $ 10 $ — $ 10 $ — $ — Fixed income 431 7 424 — — Domestic equity - large cap 344 — 1 — 343 International equity 217 95 — — 122 Domestic equity - mid cap 1 — — 1 — Domestic equity - small cap 54 3 — — 51 Other (hedge funds, private equity, real estate, commodities) 122 13 — — 109 Total assets at fair value (1) $ 1,179 $ 118 $ 435 $ 1 $ 625 December 31, 2019 Cash and cash equivalent $ 38 $ — $ 38 $ — $ — Fixed income 360 — 347 13 — Domestic equity - large cap 394 — 1 — 393 International equity 202 78 — 1 123 Domestic equity - small cap 60 1 — — 59 Other (hedge funds, private equity, real estate, commodities) 119 14 — — 105 TTotal assets at fair value $ 1,173 $ 93 $ 386 $ 14 $ 680 (1) Excludes net payables of $2 million as of December 31, 2020, which consists of interest, dividends, and receivables and payables related to pending securities sales and purchases. |
Summary of Changes in the Fair Value of Pension Plan's Level 3 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 and equity securities, for the years ended December 31, 2019 and 2020: (Dollars in millions) Fair Value Balance, December 31, 2018 $ 4 Purchase of securities 16 Sale of securities (3) Change in the fair value of current securities (2) Transfers into Level 3 — Transfers out of Level 3 (1) Balance, December 31, 2019 $ 14 Purchase of securities 1 Sale of securities — Change in the fair value of current securities — Transfers out of Level 3 (14) Balance, December 31, 2020 $ 1 |
Fair Values of Investments Using NAV Per Share Calculation | The table below sets forth the fair values of investments, whose fair values are estimated at December 31, 2020, using the NAV per share derived by the fund managers as a practical expedient that have unfunded commitments and/or redemption restrictions. To derive the estimated NAV per share, the fund managers apply various methodologies, including, but not limited to, use of proprietary estimation models, quoted market prices or third-party valuations for underlying securities within the investments, evaluating contributions, distributions, interest, dividends and management fees, as well as evaluating the general market conditions and their correlation and impact on the investments. December 31, 2020 (Dollars in millions) Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period Debt securities hedge fund (1) 78 0 Semi-Annually 90 days Private equity (2) 11 2 N/A N/A $ 89 $ 2 (1) The fund’s objective is to achieve superior risk-adjusted total returns by investing primarily in public and private non-investment grade and non-rated 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. (2) 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. |
Expenses Under Defined Contribution Plans | Expenses under these plans are presented below. Year Ended December 31, (Dollars in millions) 2018 2019 2020 Defined Contribution Plans Non-elective employer contribution $ 14 $ 13 $ 8 Employer 401(k) matching contributions 14 14 9 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summarized Activity for Restricted Stock Units | The following table summarizes activity for the time-based restricted stock units: (In thousands, except per share amounts) Restricted Stock Units Weighted Average Grant Date Fair Value per Share 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 Granted 192 20.57 Vested (154) 14.16 Forfeited (137) 13.81 Non-vested at December 31, 2019 579 11.55 Granted 250 15.55 Dividend equivalent units (1) 167 — Vested (405) 10.00 Forfeited (170) 13.76 Non-vested at December 31, 2020 421 $ 9.95 (1) Dividend equivalent units on certain restricted stock unit awards for dividends related to the stock units granted but not yet vested at the time cash dividends were paid. The following table summarizes activity for the performance-based restricted stock units: 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 Granted 244 17.35 Vested (233) 20.92 Forfeited (11) 17.50 Non-vested at December 31, 2019 638 18.84 Granted 206 16.38 Dividend equivalent units (1) 136 — Incremental shares vested (2) 161 — Vested (555) 21.05 Forfeited (162) 13.71 Non-vested at December 31, 2020 424 $ 12.21 (1) Dividend equivalent units on certain restricted stock unit awards for dividends related to the stock units granted but not yet vested at the time cash dividends were paid. (2) Incremental shares are a result of performance at 150% of granted shares associated with the 2017 performance awards. |
Cash Dividends on Shares of Verso Common Stock | Cash dividends on shares of Verso common stock during the year ended December 31, 2020 are shown in the following table: Quarter Date Declared Date of Record Date Paid Amount 2 nd May 12 June 15 June 29 $ 0.10 3 rd August 5 September 18 September 28 $ 0.10 3 rd August 5 September 18 September 28 $ 3.00 4 th November 9 December 18 December 29 $ 0.10 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Charges Incurred as Included in Restructuring Charges | The following table details the charges incurred related to the Duluth Mill closure as included in Restructuring charges on the Consolidated Statement of Operations: Year Ended Cumulative (Dollars in millions) December 31, 2020 Incurred Property, plant and equipment, net $ 3 $ 3 Severance and benefit costs 1 1 Write-off of spare parts and inventory 2 2 Write-off of purchase obligations and commitments 1 1 Total restructuring costs $ 7 $ 7 The following table details the charges incurred related to the Luke Mill closure as included in Restructuring charges on the Consolidated Statements of Operations: Year Ended Year Ended Cumulative (Dollars in millions) December 31, 2019 December 31, 2020 Incurred Property, plant and equipment, net $ 10 $ — $ 10 Severance and benefit costs 19 (1) 18 Write-off of spare parts and inventory 9 — 9 Write-off of purchase obligations and commitments 1 — 1 Other costs 13 6 19 Total restructuring costs $ 52 $ 5 $ 57 |
Changes in Restructuring Reserve Liabilities Related to the Closure | The following table details the changes in the restructuring reserve liabilities related to the permanent shut down of the Duluth Mill which are included in Accrued and other liabilities on the Consolidated Balance Sheet: Year Ended (Dollars in millions) December 31, 2020 Beginning balance of reserve $ — Severance and benefits 1 Purchase obligations 1 Ending balance of reserve $ 2 The following table details the changes in the restructuring reserve liabilities related to the Luke Mill closure which are included in Accounts payable and Accrued and other liabilities on the Consolidated Balance Sheets: Year Ended December 31, (Dollars in millions) 2019 2020 Beginning balance of reserve $ — $ 4 Severance and benefits 19 — Severance and benefit payments (17) — Severance and benefits reserve adjustments (1) (1) Purchase obligations 1 — Purchase obligations payments (1) — Other costs 13 5 Payments on other costs (10) (8) Ending balance of reserve $ 4 $ — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of (Benefit) Provision for Income Taxes | The following is a summary of the components of the (benefit) provision for income taxes for Verso: Year Ended December 31, (Dollars in millions) 2018 2019 (1) 2020 Current tax (benefit) provision: U.S. federal $ — $ — $ — U.S. state and local — 1 — Total current tax (benefit) provision — 1 — Deferred tax (benefit) provision: U.S. federal 35 22 (9) U.S. state and local (31) 1 (9) Total deferred tax (benefit) provision 4 23 (18) Less: valuation allowance (4) (115) 9 Total income tax (benefit) provision $ — $ (91) $ (9) (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: U.S. federal deferred tax provision (previously reported as a benefit of $4 million), Total deferred tax provision (previously reported as a benefit of $2 million), and Total income tax benefit (previously reported as $117 million). |
Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense | A reconciliation of income tax expense using the statutory federal income tax rate compared with actual income tax expense follows: Year Ended December 31, (Dollars in millions) 2018 2019 (1) 2020 Tax at Statutory U.S. Rate of 21% $ 36 $ (4) $ (23) Changes resulting from: Deferred tax adjustments — 26 12 Other expenses (1) — 2 Net permanent differences (1) 26 14 Valuation allowance (4) (115) 9 State income taxes (benefit) (31) 2 (9) Other — — — Total income tax (benefit) provision $ — $ (91) $ (9) (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: Deferred tax adjustments (previously reported as zero), Net permanent differences (previously reported as $(1) million), and Total income tax benefit (previously reported as $117 million). |
Significant Components of Net Deferred Tax Asset (Liability) | The following is a summary of the significant components of the net deferred tax asset (liability): December 31, (Dollars in millions) 2019 (1) 2020 Deferred tax assets: Net operating loss $ 54 $ 79 Credit carryforwards 44 36 Pension 91 88 Compensation obligations 15 10 Inventory reserves/capitalization 24 19 Capitalized expenses 4 4 Other 12 9 Gross deferred tax assets 244 245 Less: valuation allowance (11) (20) Deferred tax assets, net of allowance $ 233 $ 225 Deferred tax liabilities: Property, plant and equipment $ (131) $ (95) Intangible assets (5) (4) Other (5) (4) Total deferred tax liabilities (141) (103) Net deferred tax assets $ 92 $ 122 (1) Certain previously reported 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected 2019 amounts for the following line items: Pension (previously reported as $123 million), Gross deferred tax assets (previously reported as $276 million), Deferred tax assets, net of allowance (previously reported as $265 million), Property, plant and equipment (previously reported as $137 million), Total deferred tax liabilities (previously reported as $147 million), and Net deferred tax assets (previously reported as $118 million). |
Reconciliation of Beginning and Ending Amount 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, 2018 $ 2 Additions — Reductions — Balance at December 31, 2019 2 Additions — Reductions — Balance at December 31, 2020 $ 2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Unconditional Purchase Obligations | The following table summarizes the unconditional purchase obligations, as of December 31, 2020. (Dollars in millions) 2021 $ 21 2022 19 2023 16 2024 14 2025 6 Thereafter 4 Total $ 80 |
UNAUDITED QUARTERLY DATA (Table
UNAUDITED QUARTERLY DATA (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial 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 2019 2019 2019 2019 2020 2020 2020 2020 Summary Statement of Operations Data: Net sales $ 639 $ 602 $ 616 $ 587 $ 471 $ 268 $ 306 $ 314 Cost of products sold (exclusive of depreciation and amortization) 549 540 536 513 427 271 309 327 Depreciation and amortization 28 104 25 26 23 22 21 87 Selling, general and administrative expenses 24 29 23 28 27 16 19 15 Restructuring charges — 40 4 8 6 — (2) 8 Other operating (income) expense (1) 1 1 — 2 (88) 1 3 (5) Interest expense 1 1 — — — — 1 — Other (income) expense (2) (1) (1) (1) (15) (4) (5) (5) (5) Income tax expense (benefit) (3)(4) 1 — (1) (91) 26 (3) (9) (23) Net income (loss) (4) 36 (112) 30 116 54 (34) (31) (90) Share Data: Income (loss) per common share: Basic (4)(5) $ 1.05 $ (3.23) $ 0.86 $ 3.35 $ 1.53 $ (0.99) $ (0.92) $ (2.67) Diluted (4)(5) 1.03 (3.23) 0.85 3.30 1.52 (0.99) (0.92) (2.67) Weighted average shares of common stock outstanding (thousands): Basic 34,484 34,626 34,686 34,702 35,107 34,548 33,675 33,558 Diluted 35,225 34,626 35,137 35,232 35,381 34,548 33,675 33,558 Closing price per share: High $ 25.80 $ 23.22 $ 19.23 $ 18.93 $ 19.13 $ 17.01 $ 14.41 $ 12.43 Low 18.47 16.67 9.90 12.15 10.71 10.25 7.82 7.58 Period-end 21.42 19.05 12.38 18.03 11.35 11.89 8.03 12.01 (1) First quarter of 2020 other operating income primarily associated with the gain on the sale of Androscoggin and Stevens Point mills. (2) Fourth quarter of 2019 other income primarily associated with the pension settlement gain. (3) Fourth quarter of 2019 income tax benefit primarily associated with a release of the income tax valuation allowances on all federal deferred tax assets and certain state tax credits. (4) Previously reported fourth quarter of 2019 amounts were corrected in 2020 (see Note 1). The above table presents the corrected fourth quarter of 2019 amounts for the following line items: Income tax benefit (previously reported as $117 million), Net income (previously reported as $142 million), Basic income per common share (previously reported as $4.10), and Diluted income per common share (previously reported as $4.04). (5) 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. |
SUMMARY OF BUSINESS AND BASIS_4
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($)T | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Tlocation | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2020T | Feb. 10, 2020USD ($)T | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 1,334 | $ 2,138 | $ 2,321 | ||||
Trade accounts receivable | $ 82 | 82 | 145 | ||||
Allowance for doubtful accounts | 1 | 1 | 1 | ||||
Allowance for uncollectible accounts on receivables sold without recourse, factoring fees | 1 | 2 | |||||
Allowance for uncollectible accounts on receivables sold without recourse | 78 | 165 | |||||
Restricted cash | 2 | 2 | 2 | ||||
Deferred tax assets restatement change | 122 | 122 | 92 | ||||
Retained earnings restatement change | $ (42) | $ (42) | 172 | ||||
Revision of Prior Period, Adjustment | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Deferred tax assets restatement change | (26) | ||||||
Retained earnings restatement change | $ (26) | ||||||
Market Approach Valuation Technique | Finite-Lived Intangible Assets | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Fair value input, royalty rate | 0.25% | 0.25% | |||||
Customer Relationships | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Finite-lived intangible assets, useful life | 10 years | ||||||
Trademarks | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Finite-lived intangible assets, useful life | 5 years | ||||||
Minimum | Restricted Stock Units (RSUs) | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Vesting period | 1 year | ||||||
Maximum | Restricted Stock Units (RSUs) | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Vesting period | 4 years | ||||||
Customer Concentration Risk | Two Customers | Revenue Benchmark | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Concentration risk, percentage | 33.00% | 25.00% | 30.00% | ||||
Customer Concentration Risk | Two Customers | Accounts Receivable | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Concentration risk, percentage | 30.00% | 25.00% | |||||
Sale of Androscoggin Mill and Stevens Point Mill | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Reduction in production capacity | T | 660,000 | ||||||
Percentage of revenues represented | 22.00% | ||||||
Closure of Duluth Mill | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Reduction in production capacity | T | 270,000 | ||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 3 | ||||||
Closure of Duluth Mill | Supercalendered/Packaging Papers | Other COVID-19 Related Events | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of production capacity | T | 270,000 | 270,000 | |||||
Idle of Wisconsin Rapids Mill | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Cost of products sold (exclusive of depreciation and amortization) | $ 5 | ||||||
Idle of Wisconsin Rapids Mill | Coated and Packaging Papers | Other COVID-19 Related Events | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of production capacity | T | 540,000 | 540,000 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Consideration for business sold | $ 352 | ||||||
Verso’s unfunded pension | $ 37 | ||||||
North America | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Number of geographical locations operated | location | 1 |
SUMMARY OF BUSINESS AND BASIS_5
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 1,359 | $ 2,444 | $ 2,682 |
End-users and Converters | |||
Revenue from External Customer [Line Items] | |||
Net sales | 476 | 1,119 | 1,091 |
Brokers and Merchants | |||
Revenue from External Customer [Line Items] | |||
Net sales | 641 | 936 | 1,172 |
Printers | |||
Revenue from External Customer [Line Items] | |||
Net sales | 242 | 389 | 419 |
Paper | |||
Revenue from External Customer [Line Items] | |||
Net sales | 1,175 | 2,224 | 2,476 |
Pulp | |||
Revenue from External Customer [Line Items] | |||
Net sales | 118 | 117 | 139 |
Packaging | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 66 | $ 103 | $ 67 |
SUMMARY OF BUSINESS AND BASIS_6
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and building improvements | Minimum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Buildings and building improvements | Maximum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 40 years |
Land improvements | Minimum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 10 years |
Land improvements | Maximum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Machinery and equipment | Minimum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 20 years |
Furniture and office equipment | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 10 years |
Computer hardware and software | Minimum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 3 years |
Computer hardware and software | Maximum | |
Significant Accounting Policies [Line Items] | |
Estimated useful life | 7 years |
SUMMARY OF BUSINESS AND BASIS_7
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Activity Related to Asset Retirement Obligations Included in Other Long-term Liabilities (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations, beginning balance | $ 16 | $ 14 | |
Settlement of existing liabilities | 0 | 0 | |
Accretion expense | 1 | 2 | |
Adjustments to existing liabilities | (9) | 0 | |
Asset retirement obligations, ending balance | 8 | 16 | |
Less: Current portion | 0 | (1) | |
Non-current portion of asset retirement obligations, ending balance | $ 8 | $ 15 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Adjustments to existing liabilities | $ (7) |
SUMMARY OF BUSINESS AND BASIS_8
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Balance Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 987 | $ 906 | $ 746 |
Reclassification of stranded tax effects (ASU 2018-02) | 0 | ||
Ending balance | 684 | 987 | 906 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 122 | 120 | 132 |
Pension adjustment, net | (62) | 2 | (19) |
Reclassification of stranded tax effects (ASU 2018-02) | 7 | ||
Net increase (decrease) in other comprehensive income | (62) | 2 | (12) |
Ending balance | $ 60 | $ 122 | $ 120 |
SUMMARY OF BUSINESS AND BASIS_9
SUMMARY OF BUSINESS AND BASIS OF PRESENTATION - Corrected Line items in Balance Sheets, Statement of Operations and Statement of Cash Flows (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Balance Sheet | ||||||||||||
Deferred tax assets | $ 122 | $ 92 | $ 122 | $ 92 | ||||||||
Total assets | 1,245 | 1,695 | 1,245 | 1,695 | ||||||||
Retained earnings (deficit) | (42) | 172 | (42) | 172 | ||||||||
Total equity | 684 | 987 | 684 | 987 | $ 906 | $ 746 | ||||||
Total liabilities and equity | 1,245 | 1,695 | 1,245 | 1,695 | ||||||||
Consolidated Statement of Operations | ||||||||||||
Income tax expense (benefit) | (23) | $ (9) | $ (3) | $ 26 | (91) | $ (1) | $ 0 | $ 1 | (9) | (91) | 0 | |
Net income (loss) | $ (90) | $ (31) | $ (34) | $ 54 | $ 116 | $ 30 | $ (112) | $ 36 | $ (101) | $ 70 | $ 171 | |
Income (loss) per common share: | ||||||||||||
Basic (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.53 | $ 3.35 | $ 0.86 | $ (3.23) | $ 1.05 | $ (2.95) | $ 2.03 | $ 4.97 | |
Diluted (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.52 | $ 3.30 | $ 0.85 | $ (3.23) | $ 1.03 | $ (2.95) | $ 2 | $ 4.88 | |
Consolidated Statement of Cash Flows | ||||||||||||
Net income (loss) | $ (90) | $ (31) | $ (34) | $ 54 | $ 116 | $ 30 | $ (112) | $ 36 | $ (101) | $ 70 | $ 171 | |
Deferred taxes | $ (9) | (91) | $ 0 | |||||||||
Previously Reported | ||||||||||||
Consolidated Balance Sheet | ||||||||||||
Deferred tax assets | 118 | 118 | ||||||||||
Total assets | 1,721 | 1,721 | ||||||||||
Retained earnings (deficit) | 198 | 198 | ||||||||||
Total equity | 1,013 | 1,013 | ||||||||||
Total liabilities and equity | 1,721 | 1,721 | ||||||||||
Consolidated Statement of Operations | ||||||||||||
Income tax expense (benefit) | (117) | (117) | ||||||||||
Net income (loss) | $ 142 | $ 96 | ||||||||||
Income (loss) per common share: | ||||||||||||
Basic (usd per share) | $ 4.10 | $ 2.78 | ||||||||||
Diluted (usd per share) | $ 4.04 | $ 2.74 | ||||||||||
Consolidated Statement of Cash Flows | ||||||||||||
Net income (loss) | $ 142 | $ 96 | ||||||||||
Deferred taxes | $ (117) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45 | $ 80 |
Work-in-process | 31 | 51 |
Finished goods | 125 | 233 |
Replacement parts and other supplies | 23 | 31 |
Inventories | $ 224 | $ 395 |
DISPOSITIONS - Additional Infor
DISPOSITIONS - Additional Information (Details) $ in Millions | Feb. 10, 2020USD ($) | Sep. 05, 2018USD ($) | Mar. 01, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2021USD ($) | Oct. 30, 2020USD ($) | Aug. 01, 2020machine | Aug. 16, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Number of paper machines | machine | 2 | ||||||||||||
Proceeds from sale of machines and equipment | $ 8 | ||||||||||||
Assets held for sale | $ 17 | 17 | $ 0 | ||||||||||
Gain (loss) on disposition of business | 94 | $ 0 | $ 0 | ||||||||||
Subsequent Event | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Proceeds from sale of machines and equipment | $ 1 | ||||||||||||
Subsequent Event | Forecast | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Proceeds from sale of machines and equipment | $ 1 | $ 1 | $ 11 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Cash proceeds | $ 352 | 8 | |||||||||||
Verso’s unfunded pension | 37 | ||||||||||||
Gain on sale | 94 | ||||||||||||
Transition services revenue to Pixelle | 5 | ||||||||||||
Consideration for business sold | $ 352 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | Cost of Products Sold | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Transition services revenue to Pixelle | 2 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | Selling, general and administrative expenses | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Transition services revenue to Pixelle | 3 | ||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Luke Mill | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Assets held for sale | $ 17 | $ 17 | $ 4 | ||||||||||
Consideration for business sold | $ 4 | ||||||||||||
Discontinued Operations, Disposed of by Sale | Verso Wickliffe | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Consideration for business sold | $ 16 | ||||||||||||
Gain (loss) on disposition of business | $ 9 |
DISPOSITIONS - Components of Ga
DISPOSITIONS - Components of Gain on Sale (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net cash proceeds | $ 345 | $ 0 | $ 0 | ||
Verso Androscoggin, LLC | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash proceeds | $ 352 | $ 8 | |||
Less: costs to sell | (7) | ||||
Net cash proceeds | 345 | ||||
Less: assets and liabilities associated with the sale | |||||
Accounts receivable, net | 40 | ||||
Inventories | 90 | ||||
Property, plant and equipment, net | 195 | ||||
Write-off of intangible assets | 5 | ||||
Other assets | 4 | ||||
Accounts payable | (33) | ||||
Pension benefit obligation | (37) | ||||
Other liabilities | (13) | ||||
Gain on sale | $ 94 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Components of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,009 | $ 1,417 |
Accumulated depreciation | (396) | (472) |
Property, plant and equipment, net | 613 | 945 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 26 | 42 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 116 | 156 |
Machinery, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 850 | 1,172 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17 | $ 47 |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Interest Costs Capitalized, Depreciation Expense and Finance Lease Asset Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Interest costs capitalized | $ 1 | $ 2 | $ 1 |
Depreciation expense | 147 | 176 | 105 |
Finance lease asset amortization expense | $ 1 | $ 1 | $ 0 |
PROPERTY, PLANT, AND EQUIPMEN_4
PROPERTY, PLANT, AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Capital expenditures incurred but not yet paid | $ 3 | $ 15 | $ 7 |
Closure of Luke Mill | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | $ 76 | ||
Closure of Duluth Mill | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | $ 65 |
INTANGIBLES AND OTHER ASSETS,_3
INTANGIBLES AND OTHER ASSETS, NET - Components of Intangibles and Other Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Feb. 10, 2020 | Dec. 31, 2019 |
Other assets: | |||
Operating leases | $ 14 | $ 14 | |
Deferred compensation | 4 | 4 | |
Restricted cash | 2 | 2 | |
ABL Facility unamortized debt issuance cost, net | 2 | 2 | |
Other | 10 | 15 | |
Intangibles and other assets, net | 44 | 59 | |
Customer Relationships | |||
Intangibles and Other Assets by Major Class [Line Items] | |||
Accumulated amortization | 9 | 9 | |
Net finite-lived intangible assets | 11 | 17 | |
Customer Relationships | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||
Other assets: | |||
Increase (decrease) of gross intangible assets in connection with the Pixelle Sale | $ (6) | ||
Increase (decrease) of accumulated amortization in connection with the Pixelle Sale | (2) | ||
Trademarks | |||
Intangibles and Other Assets by Major Class [Line Items] | |||
Accumulated amortization | 12 | 11 | |
Net finite-lived intangible assets | $ 1 | $ 5 | |
Trademarks | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||
Other assets: | |||
Increase (decrease) of gross intangible assets in connection with the Pixelle Sale | (3) | ||
Increase (decrease) of accumulated amortization in connection with the Pixelle Sale | $ (2) |
INTANGIBLES AND OTHER ASSETS,_4
INTANGIBLES AND OTHER ASSETS, NET - Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 2 | $ 3 | $ 2 |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 3 | $ 3 | $ 4 |
INTANGIBLES AND OTHER ASSETS,_5
INTANGIBLES AND OTHER ASSETS, NET - Estimated Future Amortization Expense for Intangible Assets Over Next Five Years (Details) $ in Millions | Dec. 31, 2020USD ($) |
Estimated future amortization expense | |
2021 | $ 3 |
2022 | 2 |
2023 | 2 |
2024 | 2 |
2025 | $ 2 |
ACCRUED AND OTHER LIABILITIES_2
ACCRUED AND OTHER LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefit costs | $ 43 | $ 53 |
Accrued sales rebates | 11 | 16 |
Operating lease liabilities | 8 | 8 |
Deferred income on Luke Mill equipment sale | 8 | 0 |
Accrued energy | 5 | 7 |
Accrued environmental | 5 | 2 |
Accrued taxes - other than income | 4 | 4 |
Accrued freight | 3 | 5 |
Accrued professional and legal fees | 2 | 3 |
Accrued restructuring costs | 2 | 2 |
Other | 1 | 3 |
Accrued and other liabilities | $ 92 | $ 103 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Short-term lease commitment | $ 1 | |
Rent expense for operating leases | $ 12 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal terms for certain assets | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal terms for certain assets | 1 year |
LEASES - Right-of-Use Assets an
LEASES - Right-of-Use Assets and Associated Obligations for Operating and Finance Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 14 | $ 14 |
Finance lease assets | 5 | 7 |
Total leased assets | 19 | 21 |
Current liabilities, operating | 8 | 8 |
Current liabilities, finance | 1 | 2 |
Non-current liabilities, operating | 6 | 6 |
Non-current liabilities, finance | 4 | 5 |
Total lease liabilities | $ 19 | $ 21 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | vrs:IntangibleAssetsNetExcludingGoodwillAndOtherAssetsNoncurrent | vrs:IntangibleAssetsNetExcludingGoodwillAndOtherAssetsNoncurrent |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtCurrent | us-gaap:LongTermDebtCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
LEASES - Costs Associated with
LEASES - Costs Associated with Leasing Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Amortization of leased assets | $ 1 | $ 1 | $ 0 |
Interest on lease liabilities | 0 | 0 | |
Net lease cost | 22 | 24 | |
Cost of products sold (exclusive of depreciation and amortization) | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 10 | 11 | |
Variable lease cost | 7 | 8 | |
Short term lease cost | 3 | 3 | |
Selling, general and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 1 | $ 1 |
LEASES - Future Lease Payments
LEASES - Future Lease Payments Associated with Leases Commenced (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 8 | |
2022 | 4 | |
2023 | 2 | |
2024 | 1 | |
Thereafter | 0 | |
Total lease payments | 15 | |
Imputed interest | (1) | |
Present value of lease liabilities | 14 | |
Finance Lease | ||
2021 | 2 | |
2022 | 2 | |
2023 | 1 | |
2024 | 1 | |
Thereafter | 0 | |
Total lease payments | 6 | |
Imputed interest | (1) | |
Present value of lease liabilities | 5 | |
2021 | 10 | |
2022 | 6 | |
2023 | 3 | |
2024 | 2 | |
Thereafter | 0 | |
Total lease payments | 21 | |
Imputed interest | (2) | |
Total lease liabilities | $ 19 | $ 21 |
LEASES - Weighted Average Assum
LEASES - Weighted Average Assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating leases | 2 years 1 month 6 days | 2 years 2 months 12 days |
Weighted average remaining lease term, finance leases | 3 years 8 months 12 days | 4 years 4 months 24 days |
Weighted average discount rate, operating leases | 2.70% | 4.30% |
Weighted average discount rate, finance leases | 3.40% | 3.80% |
LEASES - Cash Flow Details Asso
LEASES - Cash Flow Details Associated with Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating cash flows related to operating leases | $ 11 | $ 12 | |
Operating cash flows related to finance leases | 0 | 0 | |
Financing cash flows related to finance leases | $ 1 | $ 1 | $ 0 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | Feb. 06, 2019 | Jul. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Prepayment penalty, percentage, until July 14, 2018 | 2.00% | ||||
Prepayment penalty, percentage, after July 15, 2018, but before July 14, 2020 | 1.00% | ||||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Amount available for future borrowings | $ 176,000,000 | ||||
Line of Credit | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Outstanding balance of ABL Facility | 0 | ||||
Line of Credit | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Amount issued in letters of credit | 21,000,000 | ||||
Line of Credit | ABL Amendment Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, fair value disclosure | 0 | $ 0 | |||
Credit facility, maximum borrowing capacity, accordion feature | $ 75,000,000 | ||||
Unused capacity, commitment fee percentage | 0.25% | ||||
Line of Credit | ABL Amendment Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 350,000,000 | ||||
Line of Credit | ABL Amendment Facility | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | 100,000,000 | ||||
Line of Credit | ABL Amendment Facility | Swingline Loans | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 35,000,000 | ||||
Line of Credit | ABL Amendment Facility | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Applicable margin of variable Interest rate | 1.25% | ||||
Line of Credit | ABL Amendment Facility | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Applicable margin of variable Interest rate | 0.25% | ||||
Line of Credit | ABL Amendment Facility | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Applicable margin of variable Interest rate | 1.75% | ||||
Line of Credit | ABL Amendment Facility | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Applicable margin of variable Interest rate | 0.75% | ||||
Line of Credit | Term Loan Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 375,000,000 | ||||
Line of Credit | ABL Facility | Revolving Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Credit facility, borrowing capacity | $ 197,000,000 | ||||
Secured Debt | Verso Paper Holdings LLC | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs iccured | 8,000,000 | ||||
Secured Debt | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Periodic payment | 4,000,000 | $ 9,000,000 | |||
Repayments of debt | 21,000,000 | ||||
Repayments of debt, net | $ 116,000,000 | ||||
Debt instrument, face amount | 220,000,000 | ||||
Current borrowing capacity | 198,000,000 | ||||
Debt issuance costs, gross | $ 22,000,000 |
DEBT - Interest Expense and Cas
DEBT - Interest Expense and Cash Interests Payments Related to Long-term Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 2 | $ 3 | $ 15 |
Cash interest paid | 1 | 2 | 16 |
Debt issuance cost and discount amortization | $ 0 | $ 1 | $ 19 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Millions | Feb. 10, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset retirement obligations | $ 8 | $ 15 | |
Employee related obligations | 16 | 15 | |
Operating lease liabilities | 6 | 6 | |
Deferred compensation | 4 | 4 | |
Other | 0 | 1 | |
Other long-term liabilities | $ 34 | $ 41 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Verso Androscoggin, LLC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Asset retirement obligations assumed in the Pixelle Sale | $ 6 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Basic and Diluted Loss or Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) available to common stockholders (in millions) | $ (90) | $ (31) | $ (34) | $ 54 | $ 116 | $ 30 | $ (112) | $ 36 | $ (101) | $ 70 | $ 171 |
Weighted average common shares outstanding - basic (in shares) | 33,558 | 33,675 | 34,548 | 35,107 | 34,702 | 34,686 | 34,626 | 34,484 | 34,232 | 34,625 | 34,514 |
Dilutive shares from stock awards (in shares) | 0 | 509 | 582 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 33,558 | 33,675 | 34,548 | 35,381 | 35,232 | 35,137 | 34,626 | 35,225 | 34,232 | 35,134 | 35,096 |
Basic income (loss) per share (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.53 | $ 3.35 | $ 0.86 | $ (3.23) | $ 1.05 | $ (2.95) | $ 2.03 | $ 4.97 |
Diluted income (loss) per share (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.52 | $ 3.30 | $ 0.85 | $ (3.23) | $ 1.03 | $ (2.95) | $ 2 | $ 4.88 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - $ / shares shares in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 18, 2020 | Sep. 17, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Class of warrant or right, outstanding (in shares) | 2.3 | 1.8 | |||
Exercise price of warrants (usd per share) | $ 21.67 | $ 21.67 | $ 27.86 | ||
Restricted Stock Units (RSUs) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from the calculation of diluted earnings per share (in shares) | 0.8 | ||||
Warrant | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from the calculation of diluted earnings per share (in shares) | 2.3 | 1.8 | 1.8 |
RETIREMENT BENEFITS - Additiona
RETIREMENT BENEFITS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of employees covered, percentage | 57.00% | |||
Discount rate | 2.71% | 2.57% | 3.11% | 4.17% |
(Increase) decrease for remeasurement due to settlement | $ (162) | |||
Amount attributable to other comprehensive income | 119 | |||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Transfers to (from) Level 3 | $ (14) | $ (1) | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement gain (loss) included in other (income) expense | $ (1) | $ 13 | $ 0 | |
Discount rate | 2.71% | 2.57% | 3.11% | 4.17% |
Employer contributions to the pension plans | $ 49 | $ 42 | $ 43 | |
Expected employer cash contributions to the pension plan | 46 | |||
Actuarial (gain) loss | $ (113) | $ (170) |
RETIREMENT BENEFITS - Component
RETIREMENT BENEFITS - Components of Net Periodic Pension Cost (Income) of Pension Plans (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 3 | $ 4 | $ 6 | |
Interest cost | 45 | 65 | 60 | |
Expected return on plan assets | (65) | (70) | (73) | |
Settlement | $ 1 | (13) | 0 | |
Net periodic pension cost (income) | $ (16) | $ (14) | $ (7) |
RETIREMENT BENEFITS - Detail on
RETIREMENT BENEFITS - Detail on Net Actuarial (gain) Loss Recognized in Accumulated Other Comprehensive (Income) Loss (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Amounts recognized in Accumulated other comprehensive (income) loss: | ||
Net actuarial (gain) loss, net of tax | $ (60) | $ (122) |
RETIREMENT BENEFITS - Reconcili
RETIREMENT BENEFITS - Reconciliation of Pension Plan's Benefit Obligations, Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of period | $ 1,173 | ||
Plan assets at fair value at end of period | 1,179 | $ 1,173 | |
Pension Plan | |||
Change in Projected Benefit Obligation: | |||
Benefit obligation at beginning of period | 1,542 | 1,590 | |
Settlement | (9) | (55) | |
Service cost | 3 | 4 | $ 6 |
Interest cost | 45 | 65 | 60 |
Actuarial (gain) loss | 113 | 170 | |
Acquisitions/(divestitures) | (58) | 0 | |
Benefits paid | (87) | (85) | |
Curtailment | 2 | 0 | |
Settlement payments | (24) | (147) | |
Benefit obligation at end of period | 1,527 | 1,542 | 1,590 |
Change in Plan Assets: | |||
Plan assets at fair value at beginning of period | 1,173 | 1,162 | |
Settlement payments | (24) | (147) | |
Actual net return on plan assets | 87 | 201 | |
Employer contributions | 49 | 42 | 43 |
Acquisitions/(divestitures) | (21) | 0 | |
Benefits paid | (87) | (85) | |
Plan assets at fair value at end of period | 1,177 | 1,173 | $ 1,162 |
Funded (underfunded) status at end of period | $ (350) | $ (369) |
RETIREMENT BENEFITS - Summarize
RETIREMENT BENEFITS - Summarized Expected Future Pension Benefit Payments (Details) - Pension Plan $ in Millions | Dec. 31, 2020USD ($) |
Expected future pension benefit payments: | |
2021 | $ 93 |
2022 | 94 |
2023 | 93 |
2024 | 93 |
2025 | 92 |
2026 - 2030 | $ 441 |
RETIREMENT BENEFITS - Actuarial
RETIREMENT BENEFITS - Actuarial Assumptions Used In Defined Benefit Pension Plans (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average assumptions used to determine benefit obligations as of end of period: | ||||
Discount rate | 2.57% | 2.71% | 3.11% | 4.17% |
Pension Plan | ||||
Weighted average assumptions used to determine benefit obligations as of end of period: | ||||
Discount rate | 2.57% | 2.71% | 3.11% | 4.17% |
Weighted average assumptions used to determine net periodic pension cost for the period: | ||||
Discount rate | 2.71% | 3.11% | 4.17% | 3.51% |
Expected long-term return on plan assets | 6.50% | 6.50% | 7.00% | 6.50% |
Cash balance interest credit rate | 4.33% | 4.33% | 4.49% | 4.60% |
RETIREMENT BENEFITS - Pension P
RETIREMENT BENEFITS - Pension Plan's Asset Allocation (Details) - Pension Plan | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalent | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 1.00% | 3.00% |
Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 37.00% | 31.00% |
Domestic equity funds - large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 29.00% | 34.00% |
Domestic equity funds - small cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 5.00% | 5.00% |
International equity funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 18.00% | 17.00% |
Hedge funds, private equity, real estate, commodities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation | 10.00% | 10.00% |
Minimum | Fixed income: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 25.00% | 25.00% |
Minimum | Equity securities: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 35.00% | 35.00% |
Minimum | Other: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 4.00% | 4.00% |
Maximum | Fixed income: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 55.00% | 55.00% |
Maximum | Equity securities: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 65.00% | 65.00% |
Maximum | Other: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Targeted allocation | 15.00% | 15.00% |
RETIREMENT BENEFITS - Pension_2
RETIREMENT BENEFITS - Pension Plan's Assets at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | $ 1,179 | $ 1,173 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 118 | 93 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 435 | 386 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | 14 | $ 4 |
Net payables from pending securities sales and purchases | 2 | ||
Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 625 | 680 | |
Cash and cash equivalent | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 10 | 38 | |
Cash and cash equivalent | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Cash and cash equivalent | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 10 | 38 | |
Cash and cash equivalent | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Cash and cash equivalent | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 431 | 360 | |
Fixed income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 7 | 0 | |
Fixed income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 424 | 347 | |
Fixed income | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 13 | |
Fixed income | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Domestic equity - large cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 344 | 394 | |
Domestic equity - large cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Domestic equity - large cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | 1 | |
Domestic equity - large cap | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Domestic equity - large cap | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 343 | 393 | |
International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 217 | 202 | |
International equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 95 | 78 | |
International equity | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
International equity | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 1 | |
International equity | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 122 | 123 | |
Domestic equity - mid cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Domestic equity - mid cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Domestic equity - mid cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Domestic equity - mid cap | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 1 | ||
Domestic equity - mid cap | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | ||
Domestic equity - small cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 54 | 60 | |
Domestic equity - small cap | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 3 | 1 | |
Domestic equity - small cap | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Domestic equity - small cap | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 0 | 0 | |
Domestic equity - small cap | Assets Valued at NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 51 | 59 | |
Other (hedge funds, private equity, real estate, commodities) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 122 | 119 | |
Other (hedge funds, private equity, real estate, commodities) | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets at fair value | 13 | 14 | |
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 | $ 109 | $ 105 |
RETIREMENT BENEFITS - Summary o
RETIREMENT BENEFITS - Summary of Changes in the Fair Value of Pension Plan's Level 3 Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Plan assets at fair value at beginning of period | $ 1,173 | |
Plan assets at fair value at end of period | 1,179 | $ 1,173 |
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 period | 14 | 4 |
Purchase of securities | 1 | 16 |
Sale of securities | 0 | (3) |
Change in the fair value | 0 | (2) |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (14) | (1) |
Plan assets at fair value at end of period | $ 1 | $ 14 |
RETIREMENT BENEFITS - Fair Valu
RETIREMENT BENEFITS - Fair Values of Investments Using NAV Per Share Calculation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 1,179 | $ 1,173 |
Unfunded Commitments | 2 | |
Debt securities hedge fund | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Redemption Notice Period | 90 days | |
Private equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 2 | |
Assets Valued at NAV Practical Expedient | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 625 | $ 680 |
Fair Value | Assets Valued at NAV Practical Expedient | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 89 | |
Debt securities hedge fund | Fair Value | Assets Valued at NAV Practical Expedient | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 78 | |
Private equity | Fair Value | Assets Valued at NAV Practical Expedient | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 11 |
RETIREMENT BENEFITS - Expenses
RETIREMENT BENEFITS - Expenses Under Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Non-elective employer contribution | $ 8 | $ 13 | $ 14 |
Employer 401(k) matching contributions | $ 9 | $ 14 | $ 14 |
EQUITY - Additional Information
EQUITY - Additional Information (Detail) - USD ($) | Feb. 05, 2021 | Nov. 09, 2020 | Sep. 18, 2020 | Aug. 05, 2020 | May 12, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 17, 2020 | Aug. 04, 2020 | May 11, 2020 | Feb. 26, 2020 | Dec. 31, 2017 | Jul. 15, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Compound annual growth rate, period | 3 years | |||||||||||||
Total shareholder return threshold | 5.00% | |||||||||||||
Compensation expense | $ 5,000,000 | $ 12,000,000 | $ 8,000,000 | |||||||||||
Share repurchase program, amount authorized | $ 150,000,000 | $ 250,000,000 | $ 250,000,000 | |||||||||||
Treasury shares (in shares) | 2,200,000 | |||||||||||||
Average cost of common stock repurchased (usd per share) | $ 13.39 | |||||||||||||
Common stock, special dividends declared (usd per share) | $ 3 | |||||||||||||
Common stock, special dividends declared | $ 101,000,000 | |||||||||||||
Common stock, dividends declared (usd per share) | $ 0.10 | $ 0.10 | $ 0.10 | |||||||||||
Share repurchase program, remaining authorized | $ 121,000,000 | |||||||||||||
Exercise price of warrants (usd per share) | $ 21.67 | $ 21.67 | $ 27.86 | |||||||||||
Number of shares called by each warrant (in shares) | 1.29 | 1 | ||||||||||||
Class of warrant exercised (in shares) | 0 | |||||||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||||||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||||||||||||
Proceeds to be received upon exercise | $ 50,000,000 | |||||||||||||
Subsequent Event | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock, dividends declared (usd per share) | $ 0.10 | |||||||||||||
Common Class A | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares called by warrants (in shares) | 2,300,000 | 1,800,000 | ||||||||||||
Exercise price of warrants (usd per share) | $ 27.86 | |||||||||||||
Warrants term | 7 years | |||||||||||||
Share-based Payment Arrangement, Tranche One | Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Award vesting rights, percentage | 0.00% | |||||||||||||
Share-based Payment Arrangement, Tranche One | Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Award vesting rights, percentage | 150.00% | |||||||||||||
Performance Shares | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares authorized to be issued or transferred (in shares) | 3,600,000 | |||||||||||||
Common stock, reserved for future issuance (in shares) | 2,100,000 | |||||||||||||
Time-based Restricted Stock Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted (in shares) | 250,000 | 192,000 | 204,000 | |||||||||||
Stock units forfeited (in shares) | 170,000 | 137,000 | 3,000 | |||||||||||
Stock units vested (in shares) | 405,000 | 154,000 | 106,000 | |||||||||||
Non-vested restricted stock units (in shares) | 421,000 | 579,000 | 678,000 | 583,000 | ||||||||||
Time-based Restricted Stock Units | Management | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of restricted stock units accelerated vesting (in shares) | 155,000 | |||||||||||||
Stock units forfeited (in shares) | 103,000 | |||||||||||||
Time-based Restricted Stock Units | Executive Officer and Management | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted (in shares) | 200,000 | |||||||||||||
Performance-based Restricted Stock Units | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted (in shares) | 206,000 | 244,000 | 640,000 | |||||||||||
Stock units forfeited (in shares) | 162,000 | 11,000 | 2,000 | |||||||||||
Stock units vested (in shares) | 555,000 | 233,000 | 0 | |||||||||||
Non-vested restricted stock units (in shares) | 424,000 | 638,000 | 638,000 | 0 | ||||||||||
Performance-based Restricted Stock Units | Management | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Accelerated compensation cost | $ 300,000 | |||||||||||||
Number of restricted stock units accelerated vesting (in shares) | 108,000 | |||||||||||||
Performance-based Restricted Stock Units | Executive Officer and Management | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Granted (in shares) | 200,000 | |||||||||||||
2019 Performance Grants | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Incremental difference for performance grants (usd per share) | $ 1.60 | |||||||||||||
2020 Performance Grants | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Incremental difference for performance grants (usd per share) | $ 3.75 | |||||||||||||
Performance-based Restricted Stock Units and Dividend Equivalent Units | Management | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock units vested (in shares) | 102,000 | |||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Unrecognized compensation cost | $ 4,000,000 | |||||||||||||
Non-vested restricted stock units (in shares) | 800,000 | |||||||||||||
Weighted average period for recognition | 1 year 9 months 18 days |
EQUITY - Summarized Activity fo
EQUITY - Summarized Activity for Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Grant Date Fair Value per Share | |||
Incremental granted share, percentage | 150.00% | ||
Time-based Restricted Stock Units | |||
Restricted Stock Units Outstanding | |||
Outstanding, beginning balance (in shares) | 579 | 678 | 583 |
Granted (in shares) | 250 | 192 | 204 |
Vested (in shares) | (405) | (154) | (106) |
Forfeited (in shares) | (170) | (137) | (3) |
Outstanding, ending balance (in shares) | 421 | 579 | 678 |
Weighted Average Grant Date Fair Value per Share | |||
Outstanding, beginning balance (usd per share) | $ 11.55 | $ 10.04 | $ 6.89 |
Granted (usd per share) | 15.55 | 20.57 | 17.75 |
Vested (usd per share) | 10 | 14.16 | 7.42 |
Forfeited (usd per share) | 13.76 | 13.81 | 14.08 |
Outstanding, ending balance (usd per share) | $ 9.95 | $ 11.55 | $ 10.04 |
Time-based Dividend Equivalent Units | |||
Restricted Stock Units Outstanding | |||
Granted (in shares) | 167 | ||
Weighted Average Grant Date Fair Value per Share | |||
Granted (usd per share) | $ 0 | ||
Performance-based Restricted Stock Units | |||
Restricted Stock Units Outstanding | |||
Outstanding, beginning balance (in shares) | 638 | 638 | 0 |
Granted (in shares) | 206 | 244 | 640 |
Incremental shares vested (in shares) | 161 | ||
Vested (in shares) | (555) | (233) | 0 |
Forfeited (in shares) | (162) | (11) | (2) |
Outstanding, ending balance (in shares) | 424 | 638 | 638 |
Weighted Average Grant Date Fair Value per Share | |||
Outstanding, beginning balance (usd per share) | $ 18.84 | $ 22.26 | $ 0 |
Granted (usd per share) | 16.38 | 17.35 | 22.25 |
Incremental shares vested (usd per share) | 0 | ||
Vested (usd per share) | 21.05 | 20.92 | 0 |
Forfeited (usd per share) | 13.71 | 17.50 | 18.22 |
Outstanding, ending balance (usd per share) | $ 12.21 | $ 18.84 | $ 22.26 |
Performance-based Dividend Equivalent Units | |||
Restricted Stock Units Outstanding | |||
Granted (in shares) | 136 | ||
Weighted Average Grant Date Fair Value per Share | |||
Granted (usd per share) | $ 0 |
EQUITY - Cash Dividends on Shar
EQUITY - Cash Dividends on Shares of Verso Common Stock (Details) - $ / shares | Nov. 09, 2020 | Aug. 05, 2020 | May 12, 2020 |
Equity [Abstract] | |||
Common stock, dividends declared (usd per share) | $ 0.10 | $ 0.10 | $ 0.10 |
Common stock, special dividends declared (usd per share) | $ 3 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2020employeeT | Jun. 30, 2019positionT | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Closure of Duluth Mill | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in production capacity | T | 270,000 | |||
Number of positions eliminated | employee | 190 | |||
Number of positions remained | employee | 35 | |||
Accelerated depreciation | $ | $ 65 | |||
Closure of Luke Mill | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reduction in production capacity | T | 450,000 | |||
Number of positions eliminated | position | 675 | |||
Accelerated depreciation | $ | $ 76 |
RESTRUCTURING CHARGES - Charges
RESTRUCTURING CHARGES - Charges Incurred as Included in Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | $ 8 | $ (2) | $ 0 | $ 6 | $ 8 | $ 4 | $ 40 | $ 0 | $ 12 | $ 52 | $ 1 |
Closure of Duluth Mill | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 7 | ||||||||||
Cumulative incurred | 7 | 7 | |||||||||
Closure of Duluth Mill | Property, plant and equipment, net | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 3 | ||||||||||
Cumulative incurred | 3 | 3 | |||||||||
Closure of Duluth Mill | Severance and benefit costs | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 1 | ||||||||||
Cumulative incurred | 1 | 1 | |||||||||
Closure of Duluth Mill | Write-off of spare parts and inventory | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 2 | ||||||||||
Cumulative incurred | 2 | 2 | |||||||||
Closure of Duluth Mill | Write-off of purchase obligations and commitments | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 1 | ||||||||||
Cumulative incurred | 1 | 1 | |||||||||
Closure of Luke Mill | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 5 | 52 | |||||||||
Cumulative incurred | 57 | 57 | |||||||||
Closure of Luke Mill | Property, plant and equipment, net | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 0 | 10 | |||||||||
Cumulative incurred | 10 | 10 | |||||||||
Closure of Luke Mill | Severance and benefit costs | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | (1) | 19 | |||||||||
Cumulative incurred | 18 | 18 | |||||||||
Closure of Luke Mill | Write-off of spare parts and inventory | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 0 | 9 | |||||||||
Cumulative incurred | 9 | 9 | |||||||||
Closure of Luke Mill | Write-off of purchase obligations and commitments | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 0 | 1 | |||||||||
Cumulative incurred | 1 | 1 | |||||||||
Closure of Luke Mill | Other costs | |||||||||||
Restructuring and Related Cost [Abstract] | |||||||||||
Restructuring costs | 6 | $ 13 | |||||||||
Cumulative incurred | $ 19 | $ 19 |
RESTRUCTURING CHARGES - Changes
RESTRUCTURING CHARGES - Changes in Restructuring Reserve Liabilities Related to the Closure (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Purchase obligations | $ 8 | $ (2) | $ 0 | $ 6 | $ 8 | $ 4 | $ 40 | $ 0 | $ 12 | $ 52 | $ 1 |
Closure of Duluth Mill | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance of reserve | 0 | 0 | |||||||||
Severance and benefits | 1 | ||||||||||
Purchase obligations | 7 | ||||||||||
Ending balance of reserve | 2 | 0 | 2 | 0 | |||||||
Closure of Duluth Mill | Severance and benefit payments | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Purchase obligations | 1 | ||||||||||
Closure of Duluth Mill | Purchase obligations | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Purchase obligations | 1 | ||||||||||
Closure of Luke Mill | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Beginning balance of reserve | $ 4 | $ 0 | 4 | 0 | |||||||
Severance and benefits | 0 | 19 | |||||||||
Purchase obligations | 5 | 52 | |||||||||
Other costs | 5 | 13 | |||||||||
Ending balance of reserve | $ 0 | $ 4 | 0 | 4 | $ 0 | ||||||
Closure of Luke Mill | Severance and benefit payments | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | 0 | (17) | |||||||||
Purchase obligations | (1) | 19 | |||||||||
Closure of Luke Mill | Severance and benefits reserve adjustments | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Severance and benefits | (1) | (1) | |||||||||
Closure of Luke Mill | Purchase obligations | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | 0 | (1) | |||||||||
Purchase obligations | 0 | 1 | |||||||||
Closure of Luke Mill | Payments on other costs | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring payments | (8) | (10) | |||||||||
Purchase obligations | $ 6 | $ 13 |
INCOME TAXES - Components of (B
INCOME TAXES - Components of (Benefit) Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax (benefit) provision: | |||||||||||
U.S. federal | $ 0 | $ 0 | $ 0 | ||||||||
U.S. state and local | 0 | 1 | 0 | ||||||||
Total current tax (benefit) provision | 0 | 1 | 0 | ||||||||
Deferred tax (benefit) provision: | |||||||||||
U.S. federal | (9) | 22 | 35 | ||||||||
U.S. state and local | (9) | 1 | (31) | ||||||||
Total deferred tax (benefit) provision | (18) | 23 | 4 | ||||||||
Less: valuation allowance | 9 | (115) | (4) | ||||||||
Total income tax (benefit) provision | $ (23) | $ (9) | $ (3) | $ 26 | $ (91) | $ (1) | $ 0 | $ 1 | $ (9) | (91) | $ 0 |
Previously Reported | |||||||||||
Deferred tax (benefit) provision: | |||||||||||
U.S. federal | (4) | ||||||||||
Total deferred tax (benefit) provision | (2) | ||||||||||
Total income tax (benefit) provision | $ (117) | $ (117) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Expense Using Statutory Federal Income Tax Rate Compared with Actual Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax reconciliation | |||||||||||
Tax at Statutory U.S. Rate of 21% | $ (23,000,000) | $ (4,000,000) | $ 36,000,000 | ||||||||
Changes resulting from: | |||||||||||
Deferred tax adjustments | 12,000,000 | 26,000,000 | 0 | ||||||||
Other expenses | 2,000,000 | 0 | (1,000,000) | ||||||||
Net permanent differences | 14,000,000 | 26,000,000 | (1,000,000) | ||||||||
Valuation allowance | 9,000,000 | (115,000,000) | (4,000,000) | ||||||||
State income taxes (benefit) | (9,000,000) | 2,000,000 | (31,000,000) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Total income tax (benefit) provision | $ (23,000,000) | $ (9,000,000) | $ (3,000,000) | $ 26,000,000 | $ (91,000,000) | $ (1,000,000) | $ 0 | $ 1,000,000 | $ (9,000,000) | (91,000,000) | $ 0 |
Previously Reported | |||||||||||
Changes resulting from: | |||||||||||
Other expenses | 0 | ||||||||||
Net permanent differences | (1,000,000) | ||||||||||
Total income tax (benefit) provision | $ (117,000,000) | $ (117,000,000) |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss | $ 79 | $ 54 |
Credit carryforwards | 44 | |
Pension | 88 | 91 |
Compensation obligations | 10 | 15 |
Inventory reserves/capitalization | 19 | 24 |
Capitalized expenses | 4 | 4 |
Other | 9 | 12 |
Gross deferred tax assets | 245 | 244 |
Less: valuation allowance | (20) | (11) |
Deferred tax assets, net of allowance | 225 | 233 |
Deferred tax liabilities: | ||
Property, plant and equipment | 95 | 131 |
Intangible assets | (4) | (5) |
Other | (4) | (5) |
Total deferred tax liabilities | (103) | (141) |
Net deferred tax assets | $ 122 | 92 |
Previously Reported | ||
Deferred tax assets: | ||
Pension | 123 | |
Gross deferred tax assets | 276 | |
Deferred tax assets, net of allowance | 265 | |
Deferred tax liabilities: | ||
Property, plant and equipment | 137 | |
Total deferred tax liabilities | (147) | |
Net deferred tax assets | $ 118 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Valuation allowance for deferred tax assets | $ 20,000,000 | $ 11,000,000 | |
Increase (decrease) in valuation allowance for deferred tax assets | 9,000,000 | ||
Income tax expense (benefit) allocated to OCI | (22,000,000) | 1,000,000 | $ 0 |
Allocated tax expense (benefit) included in AOCI | (6,000,000) | 16,000,000 | |
Federal net operating loss carryforwards, subject to expiration | 199,000,000 | ||
Federal net operating loss carryforwards, not subject to expiration | 137,000,000 | ||
State income tax credit | 44,000,000 | ||
Research and development credit carryforwards | 4,000,000 | ||
Tax-related interest and penalties | 0 | 0 | |
Expense for interest and penalties | 0 | $ 0 | $ 0 |
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 444,000,000 | ||
Net operating losses reduced by attribute reduction | 336,000,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 162,000,000 | ||
State income tax credit | $ 36,000,000 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 2 | $ 2 |
Additions | 0 | 0 |
Reductions | 0 | 0 |
Ending balance | $ 2 | $ 2 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Summary of Unconditional Purchase Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Unconditional purchase obligations, rolling maturity | |
2021 | $ 21 |
2022 | 19 |
2023 | 16 |
2024 | 14 |
2025 | 6 |
Thereafter | 4 |
Total | $ 80 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Mar. 01, 2019sitebranch | Jul. 05, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2019sitebranch |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Costs related to environmental remediation efforts | $ 7 | $ 3 | ||||
Accured environmental remediation liabilities | $ 5 | 2 | ||||
One to Ten Years | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, eligible pay period | 7 days | |||||
Eleven Plus Years | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, service period | 11 years | |||||
Severance, additional eligible pay period | 14 days | |||||
Minimum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, termination allowance, eligible pay period | 14 days | |||||
Minimum | One to Ten Years | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, service period | 1 year | |||||
Maximum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, termination allowance, eligible pay period | 365 days | |||||
Maximum | One to Ten Years | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Severance, service period | 10 years | |||||
Represented Employees | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Workforce, percentage represented by union | 52.00% | |||||
Union negotiation expense recorded | $ 7 | |||||
Represented Employees | United Steelworkers | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Workforce, percentage represented by union | 80.00% | |||||
Number of work sites represented | site | 4 | |||||
Number of local branches represented | branch | 5 | |||||
Union, agreement term | 3 years | |||||
Represented Employees | International Brotherhood of Electrical Workers and the International Brotherhood of Teamsters | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of work sites represented | site | 2 | |||||
Number of local branches represented | branch | 2 | |||||
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] | ||||||
Litigation settlement, amount awarded from other party | $ 42 |
UNAUDITED QUARTERLY DATA (Detai
UNAUDITED QUARTERLY DATA (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | $ 314 | $ 306 | $ 268 | $ 471 | $ 587 | $ 616 | $ 602 | $ 639 | $ 1,359 | $ 2,444 | $ 2,682 |
Cost of products sold (exclusive of depreciation and amortization) | 327 | 309 | 271 | 427 | 513 | 536 | 540 | 549 | |||
Depreciation and amortization | 87 | 21 | 22 | 23 | 26 | 25 | 104 | 28 | 153 | 183 | 111 |
Selling, general and administrative expenses | 15 | 19 | 16 | 27 | 28 | 23 | 29 | 24 | 77 | 104 | 102 |
Restructuring charges | 8 | (2) | 0 | 6 | 8 | 4 | 40 | 0 | 12 | 52 | 1 |
Other operating (income) expense | (5) | 3 | 1 | (88) | 2 | 0 | 1 | 1 | (89) | 4 | (5) |
Interest expense | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 2 | 33 |
Other (income) expense | (5) | (5) | (5) | (4) | (15) | (1) | (1) | (1) | (19) | (18) | (52) |
Income tax expense (benefit) | (23) | (9) | (3) | 26 | (91) | (1) | 0 | 1 | (9) | (91) | 0 |
Net income (loss) | $ (90) | $ (31) | $ (34) | $ 54 | $ 116 | $ 30 | $ (112) | $ 36 | $ (101) | $ 70 | $ 171 |
Income (loss) per common share: | |||||||||||
Basic (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.53 | $ 3.35 | $ 0.86 | $ (3.23) | $ 1.05 | $ (2.95) | $ 2.03 | $ 4.97 |
Diluted (usd per share) | $ (2.67) | $ (0.92) | $ (0.99) | $ 1.52 | $ 3.30 | $ 0.85 | $ (3.23) | $ 1.03 | $ (2.95) | $ 2 | $ 4.88 |
Weighted average common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 33,558 | 33,675 | 34,548 | 35,107 | 34,702 | 34,686 | 34,626 | 34,484 | 34,232 | 34,625 | 34,514 |
Diluted (in shares) | 33,558 | 33,675 | 34,548 | 35,381 | 35,232 | 35,137 | 34,626 | 35,225 | 34,232 | 35,134 | 35,096 |
Closing price per share: | |||||||||||
High (usd per share) | $ 12.43 | $ 14.41 | $ 17.01 | $ 19.13 | $ 18.93 | $ 19.23 | $ 23.22 | $ 25.80 | |||
Low (usd per share) | 7.58 | 7.82 | 10.25 | 10.71 | 12.15 | 9.90 | 16.67 | 18.47 | |||
Period-end (usd per share) | $ 12.01 | $ 8.03 | $ 11.89 | $ 11.35 | $ 18.03 | $ 12.38 | $ 19.05 | $ 21.42 | |||
Previously Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Income tax expense (benefit) | $ (117) | $ (117) | |||||||||
Net income (loss) | $ 142 | $ 96 | |||||||||
Income (loss) per common share: | |||||||||||
Basic (usd per share) | $ 4.10 | $ 2.78 | |||||||||
Diluted (usd per share) | $ 4.04 | $ 2.74 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2020employee | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 08, 2021T | |
Subsequent Event [Line Items] | ||||||||||||||
Restructuring charges | $ 8 | $ (2) | $ 0 | $ 6 | $ 8 | $ 4 | $ 40 | $ 0 | $ 12 | $ 52 | $ 1 | |||
Idle of Wisconsin Rapids Mill | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of positions eliminated | employee | 700 | |||||||||||||
Subsequent Event | Closure of No. 14 Paper Machine and Certain Other Long-Lived Assets | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Reduction in production capacity | T | 185,000 | |||||||||||||
Subsequent Event | Closure of No. 14 Paper Machine and Certain Other Long-Lived Assets | Forecast | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Accelerated depreciation | $ 95 | |||||||||||||
Restructuring charges | $ 105 |