RESTRUCTURING AND OTHER CHARGES

12 Months Ended

Dec. 31, 2011

RESTRUCTURING AND OTHER CHARGES

16.    RESTRUCTURING AND OTHER CHARGES

In the fourth quarter of 2011, we permanently shut down the No. 2 coated groundwood paper machine at our mill in Bucksport, Maine, and two supercalendered paper machines at our mill in Sartell, Minnesota, thereby reducing annual production capacity by 193,000 tons.  In conjunction with these closures, the Bucksport mill’s workforce was reduced by approximately 125 employees and the Sartell mill’s workforce was reduced by approximately 175 employees.  The following table details the charges incurred related to the shut-down as included in Restructuring and other charges on our consolidated statements of operations for the year ended December 31, 2011:

(Dollars in thousands)	Total Restructuring Charges		Recognized and/or paid as of December 31, 2011		Remaining Costs to be Paid
Severance and benefit costs	$	15,004	$	4,331	$	10,673
Accelerated depreciation of property, plant and equipment		7,068		7,068		-
Write-off of related spare parts and inventory		2,278		2,278		-
Other miscellaneous costs		114		24		90
Total restructuring costs	$	24,464	$	13,701	$	10,763

The following details the changes in our associated shut-down liability during the year ended December 31, 2011 which is included in Accrued liabilities on our consolidated balance sheets:

	Year Ended
	December 31,
(Dollars in thousands)	2011
Severance and benefit costs	$	11,679
Purchase obligations		90
Severance and benefit payments		(1,006	)
Balance of reserve at December 31, 2011	$	10,763

In 2009, Restructuring and other charges on our consolidated statements of operations are comprised of transition and other costs (i.e., technology migration costs, consulting and legal fees, and other one-time costs), including those associated with the Acquisition.  The charges for the year ended December 31, 2009 were $1.0 million.  There were no restructuring and other charges for the year ended December 31, 2010.