XML 38 R25.htm IDEA: XBRL DOCUMENT v3.6.0.2
Subsequent Events (Notes)
12 Months Ended
Dec. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
18. SUBSEQUENT EVENTS

Certain settlement activities occurred in January 2017 with respect to the Fox River matter. In early January 2017 the Wisconsin federal court approved a settlement under which five companies agreed to pay $9 million to the LLC created by the 2014 Funding Agreement referenced in Note 10, "Commitments and Contingencies", or to the LLC designee; those funds will be applied to remediation expenses at the Fox River. The settlement also includes a release that eliminates litigation claims that those five companies had advanced against the Company. The period for any appeals to challenge that settlement has expired, and the funds to be paid under it by the various companies either have been paid or are expected to be paid in the first quarter of 2017.
Additionally, on January 17, 2017, the United States and the State of Wisconsin lodged with the Wisconsin federal court a proposed Consent Decree (CD) that, if approved by the court, is expected to resolve all remaining claims against the Company with respect to the Fox River. The key components of the proposed CD settlement, which is a public document, include (1) the Company’s commitment to complete the remediation of the Fox River, which is expected to be completed over 2017 and 2018; (2) the Company’s conditional agreement to waive its contribution claims against the two remaining defendants in the case, GP and Glatfelter; (3) the Company’s agreement not to appeal the trial court’s decision on divisibility of harm; (4) the Governments’ agreement to include in the settlement so-called “contribution protection” in the Company’s favor as to GP’s and Glatfelter’s contribution claims against the Company, the effect of which will be to extinguish those claims; (5) the Governments’ agreement not to pursue the Company for the Governments’ past oversight costs; and (6) the Governments’ agreement to exercise prosecutorial discretion in pursuing other parties for future oversight costs and long-term monitoring and maintenance, with the Company retaining so-called “backstop” liability in the event that the other parties fail to pay future oversight costs or perform long-term monitoring and maintenance. Additionally, although certain state law claims by GP and Glatfelter against the Company may not be affected directly by the CD, the CD provides that the Company’s contribution claims against those two parties will revive if those parties attempt to assert any claims against the Company relating to the Fox River, including any state law claims. With respect to the Company’s Fox River reserve, the Company’s estimate of the further remediation costs associated with the CD, together with changes in or elimination of certain other components of the reserve that are occasioned by the CD, required an incremental addition to the Company’s net reserve of $14 million, which is reflected in the amounts contained in Note 10, "Commitments and Contingencies". That amount takes into account the expected contributions of the Company’s former corporate parent and former affiliates and indemnitors, i.e., BAT, AT&T and Nokia.
In connection with the proposed CD settlement, the Wisconsin federal court stayed, or postponed, the trials that were scheduled to commence in April and May 2017 in the contribution and enforcement actions respectively. The proposed consent decree was submitted for mandatory public comment on January 23, 2017; the public comment period is expected to conclude in February 2017. The United States reserves the right to withdraw or withhold its consent to the CD if the comments regarding the CD disclose facts or considerations that indicate that the CD is inappropriate, improper or inadequate. A court conference is scheduled for March 10 with respect to the Governments’ expected motion to approve the consent decree; the motion is expected to be filed thereafter, and the court’s decision on the consent decree is expected at a later time. The Company has agreed to perform the remediation obligations set forth in the consent decree during the public comment period and while the motion for approval is pending.