Supplemental Consolidating Information

6 Months Ended

Jun. 30, 2011

Supplemental Consolidating Information

Supplemental Consolidating Information

16. SUPPLEMENTAL CONSOLIDATING INFORMATION

NewPage has issued $1,770 face amount of First Lien Notes, $1,031 face amount of Second Lien Notes and $200 face amount of 12% senior subordinated notes. These notes are jointly and severally guaranteed on a full and unconditional basis by NewPage's 100%-owned subsidiaries, except CWPCo and Rumford Cogeneration Company Limited Partnership, our non-guarantor subsidiaries.

The following condensed consolidating financial statements have been prepared from financial information on the same basis of accounting as the consolidated financial statements. Investments in our subsidiaries are accounted for under the equity method.

NEWPAGE CORPORATION

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2011

						Non-
	NewPage			Guarantor		Guarantor		Consolidation/
	Corporation			Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	1	$	8	$	—		$	9
Accounts receivable		191			55		1		—			247
Inventories		215			279		—		—			494
Other current assets		16			8		1		—			25
Total current assets		422			343		10		—			775
Intercompany receivables		1,276			631		192		(2,099	)		—
Property, plant and equipment, net		25			2,383		47		—			2,455
Investment in subsidiaries		1,554			60		—		(1,614	)		—
Port Hawkesbury biomass project		—			34		—		—			34
Other assets		86			11		1		—			98
TOTAL ASSETS	$	3,363		$	3,462	$	250	$	(3,713	)	$	3,362
LIABILITIES AND EQUITY (DEFICIT)
Accounts payable	$	59		$	167	$	—	$	—		$	226
Other current liabilities		90			103		4		—			197
Current maturities of long-term debt		2,854			—		—		—			2,854
Total current liabilities		3,003			270		4		—			3,277
Intercompany payables		623			1,300		176		(2,099	)		—
Long-term debt		200			153		—		—			353
Proceeds from NSPI for Port Hawkesbury biomass project		—			95		—		—			95
Other long-term liabilities		416			90		10		—			516
Equity (deficit)		(879	)		1,554		60		(1,614	)		(879	)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	3,363		$	3,462	$	250	$	(3,713	)	$	3,362

NEWPAGE CORPORATION

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2010

						Non-
	NewPage			Guarantor		Guarantor		Consolidation/
	Corporation			Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1		$	—	$	7	$	—		$	8
Accounts receivable		226			65		1		—			292
Inventories		218			305		—		—			523
Other current assets		12			7		1		—			20
Total current assets		457			377		9		—			843
Intercompany receivables		1,250			504		162		(1,916	)		—
Property, plant and equipment, net		26			2,485		47		—			2,558
Port Hawkesbury biomass project		—			5		—		—			5
Investment in subsidiaries		1,554			57		—		(1,611	)		—
Other assets		98			6		1		—			105
TOTAL ASSETS	$	3,385		$	3,434	$	219	$	(3,527	)	$	3,511
LIABILITIES AND EQUITY (DEFICIT)
Accounts payable	$	50		$	144	$	1	$	—		$	195
Other current liabilities		71			133		6		—			210
Total current liabilities		121			277		7		—			405
Intercompany payables		504			1,267		145		(1,916	)		—
Long-term debt		3,005			152		—		—			3,157
Proceeds from NSPI for Port Hawkesbury biomass project		—			80		—		—			80
Other long-term liabilities		412			104		10		—			526
Equity (Deficit)		(657	)		1,554		57		(1,611	)		(657	)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	3,385		$	3,434	$	219	$	(3,527	)	$	3,511

NEWPAGE CORPORATION

SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS

SECOND QUARTER ENDED JUNE 30, 2011

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	778		$	818		$	16	$	(724	)	$	888
Cost of sales		772			823			16		(724	)		887
Selling, general and administrative expenses		36			—			—		—			36
Equity in (earnings) loss of subsidiaries		10			—			—		(10	)		—
Interest expense		92			4			—		—			96
Other (income) expense, net		—			1			—		—			1
Income (loss) before income taxes		(132	)		(10	)		—		10			(132	)
Income tax (benefit)		—			—			—		—			—
Net income (loss)	$	(132	)	$	(10	)	$	—	$	10		$	(132	)

NEWPAGE CORPORATION

SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS

FIRST HALF ENDED JUNE 30, 2011

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	1,576		$	1,632		$	35	$	(1,451	)	$	1,792
Cost of sales		1,537			1,625			34		(1,451	)		1,745
Selling, general and administrative expenses		75			1			—		—			76
Equity in (earnings) loss of subsidiaries		—			(1	)		—		1			—
Interest expense		184			7			—		—			191
Other (income) expense, net		—			(1	)		—		—			(1	)
Income (loss) before income taxes		(220	)		1			1		(1	)		(219	)
Income tax (benefit)		—			1			—		—			1
Net income (loss)	$	(220	)	$	—		$	1	$	(1	)	$	(220	)

NEWPAGE CORPORATION

SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS

SECOND QUARTER ENDED JUNE 30, 2010

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	801		$	818		$	22	$	(751	)	$	890
Cost of sales		816			827			21		(751	)		913
Selling, general and administrative expenses		57			1			—		—			58
Equity in (earnings) loss of subsidiaries		12			(1	)		—		(11	)		—
Interest expense		89			3			—		—			92
Other (income) expense, net		1			(1	)		—		—			—
Income (loss) before income taxes		(174	)		(11	)		1		11			(173	)
Income tax (benefit)		—			1			—		—			1
Net income (loss)	$	(174	)	$	(12	)	$	1	$	11		$	(174	)

NEWPAGE CORPORATION

SUPPLEMENTAL CONSOLIDATING STATEMENT OF OPERATIONS

FIRST HALF ENDED JUNE 30, 2010

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	1,533		$	1,576		$	43	$	(1,445	)	$	1,707
Cost of sales		1,568			1,597			42		(1,445	)		1,762
Selling, general and administrative expenses		106			1			—		—			107
Equity in (earnings) loss of subsidiaries		39			(1	)		—		(38	)		—
Interest expense		182			7			—		—			189
Other (income) expense, net		(13	)		10			—		—			(3	)
Income (loss) before income taxes		(349	)		(38	)		1		38			(348	)
Income tax (benefit)		—			1			—		—			1
Net income (loss)	$	(349	)	$	(39	)	$	1	$	38		$	(349	)

NEWPAGE CORPORATION

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FIRST HALF ENDED JUNE 30, 2011

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used for) operating activities	$	(38	)	$	35		$	1	$	—	$	(2	)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(1	)		(32	)		—		—		(33	)
Proceeds from sales of assets		—			11			—		—		11
Expenditures for Port Hawkesbury biomass project		—			(19	)		—		—		(19	)
Net cash provided by (used for) investing activities		(1	)		(40	)		—		—		(41	)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of financing costs		(1	)		—			—		—		(1	)
Borrowings on revolving credit facility		582			—			—		—		582
Payments on revolving credit facility		(543	)		—			—		—		(543	)
Proceeds from NSPI for Port Hawkesbury biomass project		—			5			—		—		5
Net cash provided by (used for) financing activities		38			5			—		—		43
Effect of exchange rate changes on cash and cash equivalent		—			1			—		—		1
Net increase (decrease) in cash and cash equivalents		(1	)		1			1		—		1
Cash and cash equivalents at beginning of period		1			—			7		—		8
Cash and cash equivalents at end of period	$	—		$	1		$	8	$	—	$	9

NEWPAGE CORPORATION

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FIRST HALF ENDED JUNE 30, 2010

							Non-
	NewPage			Guarantor			Guarantor		Consolidation/
	Corporation			Subsidiaries			Subsidiaries		Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used for) operating activities	$	(143	)	$	14		$	2	$	—	$	(127	)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(3	)		(28	)		—		—		(31	)
Proceeds from sales of assets		—			12			—		—		12
Other investing activities		—			(1	)		—		—		(1	)
Net cash provided by (used for) investing activities		(3	)		(17	)		—		—		(20	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt		67			—			—		—		67
Payment of financing costs		(4	)		—			—		—		(4	)
Borrowings on revolving credit facility		442			—			—		—		442
Payments on revolving credit facility		(358	)		—			—		—		(358	)
Net cash provided by (used for) financing activities		147			—			—		—		147
Effect of exchange rate changes on cash and cash equivalent		—			2			—		—		2
Net increase (decrease) in cash and cash equivalents		1			(1	)		2		—		2
Cash and cash equivalents at beginning of period		1			—			4		—		5
Cash and cash equivalents at end of period	$	2		$	(1	)	$	6	$	—	$	7