RESTRUCTURING CHARGES
 12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES
On October 1, 2014, Verso announced plans to close our paper mill in Bucksport, Maine, and we ceased paper manufacturing operations in December 2014. The mill closure reduced Verso’s coated groundwood paper production capacity by approximately 350,000 tons and its specialty paper production capacity by approximately 55,000 tons.
The following table details the charges incurred related primarily to the Bucksport mill closure in 2014 as included in Restructuring charges on our accompanying consolidated statements of operations:
(Dollars in thousands)
Year Ended December 31, 2014
 
Cumulative
Incurred
Property and equipment
$
88,728

 
$
88,728

Severance and benefit costs
26,812

 
26,812

Write-off of spare parts, inventory and other assets
13,876

 
13,876

Write-off of purchase obligations and commitments
1,531

 
1,531

Other miscellaneous costs
3,539

 
3,539

Total restructuring charges
$
134,486

 
$
134,486


The mill closure is expected to result in total pre-tax cash severance and other shutdown charges of approximately $40-45 million to be recorded in 2014 and 2015, and the amounts incurred in 2014 are reflected in restructuring charges as of December 31, 2014. The estimated cash charges consist of approximately $30 million in severance costs and personnel costs and approximately $10-15 million in other shutdown costs.
Costs associated with shutdown activities are based on currently available information and reflect management’s best estimates; accordingly, actual cash costs and non-cash charges and their timing may differ from the estimates stated above.
During 2012, we experienced a fire and explosion at our paper mill in Sartell, Minnesota. We completed a comprehensive assessment of the damage resulting from the fire and explosion and announced the decision to permanently close the mill in the 3rd quarter of 2012.  
The following table details the charges incurred related primarily to the mill closure in 2012 as included in Restructuring charges in our accompanying consolidated statements of operations:
 
Year Ended December 31,
 
 
(Dollars in thousands)
2013
 
2012
 
Cumulative
Incurred
Property and equipment
$
—

 
$
66,521

 
$
66,521

Severance and benefit costs
688

 
19,373

 
20,061

Write-off of spare parts and inventory
—

 
6,934

 
6,934

Trademark impairment
—

 
3,693

 
3,693

Purchase obligations and commitments
(594
)
 
2,420

 
1,826

Other miscellaneous costs
1,284

 
3,463

 
4,747

Total restructuring charges
$
1,378

 
$
102,404

 
$
103,782



 
The following details the changes in our associated restructuring reserve liabilities during the years ended December 31, 2014 and 2013, which are included in Accrued liabilities on our consolidated balance sheets:
 
Year Ended December 31,
(Dollars in thousands)
2014
 
2013
Beginning balance of reserve
$
—

 
$
5,098

Severance and benefit costs
25,768

 
196

Severance and benefit payments
(3,118
)
 
(3,678
)
Purchase obligations
1,531

 
—

Payments on purchase obligations
—

 
(561
)
Severance and benefit reserve adjustments
—

 
(461
)
Purchase obligation reserve adjustments
—

 
(594
)
Ending balance of reserve
$
24,181

 
$
—


 
Severance and benefit costs incurred in excess of severance and benefits costs accrued in 2014 consist primarily of $1.0 million of pension expenses. In 2013, severance and benefit costs incurred in excess of severance and benefits costs accrued were primarily the result of $0.5 million of salaries and benefit costs for employees continuing to provide services.