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RESTRUCTURING CHARGES
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES RESTRUCTURING CHARGES

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. The shutdown of the Luke Mill reduced Verso’s coated freesheet production capacity by approximately 450,000 tons, reducing total annual paper production capacity to approximately 2.7 million tons, and eliminated approximately 675 positions at the Luke Mill.

In connection with the 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
 
Cumulative
(Dollars in millions)
December 31, 2019
 
Incurred
Property, plant and equipment, net
$
10

 
$
10

Severance and benefit costs
19
 
19

Write-off of spare parts and inventory
9
 
9

Write-off of purchase obligations and commitments
1

 
1

Other costs
13
 
13

Total restructuring costs
$
52

 
$
52


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
(Dollars in millions)
December 31, 2019
Beginning balance of reserve
$
—

Severance and benefits
19

Severance and benefit payments
(17
)
Severance and benefits reserve adjustments
(1
)
Purchase obligations
1

Purchase obligations payments
(1
)
Other costs
13

Payments on other costs
(10
)
Ending balance of reserve
$
4



Corporate Restructuring — In November 2016, Verso announced the closure of its Memphis office headquarters and relocation of its Corporate headquarters to Miamisburg, Ohio. The following table details the charges incurred as included in Restructuring charges on the Consolidated Statements of Operations:
 
Year Ended
 
Year Ended
 
Cumulative
(Dollars in millions)
December 31, 2017
 
December 31, 2018
 
Incurred
Severance and benefit costs
$
1

 
$
—

 
$
3

Write-off of purchase obligations
2

 
(1
)
 
1

Other costs
1

 
—

 
1

Total restructuring costs
$
4

 
$
(1
)
 
$
5



The following table details the changes in the restructuring reserve liabilities related to Corporate restructuring activities as included in Accrued liabilities on the Consolidated Balance Sheets:
 
Year Ended December 31,
(Dollars in millions)
2017
 
2018
Beginning balance of reserve
$
3

 
$
2

Severance and benefit costs
1

 
—

Severance and benefit payments
(4
)
 
—

Purchase obligations
2

 
—

Purchase obligation payments
—

 
(1
)
Purchase obligations adjustments
—

 
(1
)
Other costs
1

 
—

Payments on other costs
(1
)
 
—

Ending balance of reserve
$
2

 
$
—


There were no restructuring charges related to the Corporate restructuring during 2019.
Androscoggin/Wickliffe Capacity Reductions — On April 5, 2016, Verso announced its decision to permanently close the Wickliffe Mill and the associated Property, plant and equipment were written down to salvage value. On November 1, 2016, Verso announced the temporary idling of the No. 3 paper machine at the Androscoggin Mill and on July 19, 2017, Verso announced plans to permanently shut down the No. 3 paper machine and associated equipment, reducing annual coated papers production capacity by approximately 200,000 tons. In connection with the temporary idling of the No. 3 paper machine at the Androscoggin Mill, Verso recognized $6 million of accelerated depreciation during the first quarter of 2017, which is included in Depreciation and amortization on the Consolidated Statements of Operations.

The following table details the charges incurred related primarily to the Androscoggin/Wickliffe capacity reductions as included in Restructuring charges on the Consolidated Statements of Operations:
 
Year Ended
 
Year Ended
 
Cumulative
(Dollars in millions)
December 31, 2017
 
December 31, 2018
 
Incurred
Severance and benefit costs
$
—

 
$
—

 
$
5

Write-off of purchase obligations and commitments
2

 
—

 
3

Other costs
3

 
2

 
8

Total restructuring costs
$
5

 
$
2

 
$
16


The following table details the changes in the restructuring reserve liabilities related to the Androscoggin/Wickliffe capacity reductions as included in Accrued liabilities on the Consolidated Balance Sheets:
 
Year Ended December 31,
(Dollars in millions)
2017
 
2018
Beginning balance of reserve
$
6

 
$
1

Severance and benefit payments
(5
)
 
(1
)
Purchase obligations
2

 
—

Payments on purchase obligations
(2
)
 
—

Other costs
3

 
2

Payments on other costs
(3
)
 
(2
)
Ending balance of reserve
$
1

 
$
—



There were no restructuring charges related to the Androscoggin/Wickliffe capacity reductions during 2019.