CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)
12 Months Ended
Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Balance Sheet
Verso Paper Holdings LLC
Condensed Consolidating Balance Sheet
December 31, 2014
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
5,526

 
$
5

 
$
10

 
$

 
$
5,541

Accounts receivable, net

 

 
87,866

 

 

 

 
87,866

Inventories

 

 
110,724

 

 

 

 
110,724

Assets held for sale

 

 
60,014

 
950

 

 

 
60,964

Prepaid expenses and other assets

 

 
9,308

 
1,500

 
4

 

 
10,812

Current assets

 

 
273,438

 
2,455

 
14

 

 
275,907

Property, plant, and equipment, net

 

 
507,619

 
23,206

 

 
(288
)
 
530,537

Intercompany/affiliate receivable
1,396,872

 

 
2,335

 
26,417

 
31,153

 
(1,456,777
)
 

Intangibles and other assets, net(1)

 

 
93,311

 
1,101

 
85

 

 
94,497

Total assets
$
1,396,872

 
$

 
$
876,703

 
$
53,179

 
$
31,252

 
$
(1,457,065
)
 
$
900,941

LIABILITIES AND MEMBER’S EQUITY
Accounts payable
$

 
$

 
$
62,799

 
$

 
$
15

 
$

 
$
62,814

Accrued liabilities
77,581

 

 
127,432

 
374

 
126

 

 
205,513

Current maturities of long-term debt

 

 

 
30,000

 

 

 
30,000

Liabilities related to assets held for sale

 

 
2,198

 

 

 

 
2,198

Current liabilities
77,581

 

 
192,429

 
30,374

 
141

 

 
300,525

Intercompany/affiliate payable

 

 
1,423,289

 
33,488

 

 
(1,456,777
)
 

Investment in subsidiaries
802,702

 

 
13,341

 

 

 
(816,043
)
 

Long-term debt(2)
1,296,906

 

 

 

 
23,305

 

 
1,320,211

Other liabilities

 

 
52,599

 

 
8,142

 
(219
)
 
60,522

Member's (deficit) equity
(780,317
)
 

 
(804,955
)
 
(10,683
)
 
(336
)
 
815,974

 
(780,317
)
Total liabilities and equity
$
1,396,872

 
$

 
$
876,703

 
$
53,179

 
$
31,252

 
$
(1,457,065
)
 
$
900,941

(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance.
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance.
Verso Paper Holdings LLC
Condensed Consolidating Balance Sheet
December 31, 2013
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$
11,230

 
$

 
$
10

 
$

 
$
11,240

Accounts receivable, net

 

 
104,624

 

 

 

 
104,624

Inventories

 

 
137,687

 

 

 

 
137,687

Assets held for sale

 

 
50

 

 

 

 
50

Prepaid expenses and other assets

 

 
20,616

 

 
5

 

 
20,621

Current assets

 

 
274,207

 

 
15

 

 
274,222

Property, plant, and equipment, net

 

 
724,063

 
19,171

 

 
(288
)
 
742,946

Intercompany/affiliate receivable
1,335,323

 

 
1,393

 

 
31,153

 
(1,367,869
)
 

Intangibles and other assets, net(1)

 

 
103,424

 
1,251

 
85

 

 
104,760

Total assets
$
1,335,323

 
$

 
$
1,103,087

 
$
20,422

 
$
31,253

 
$
(1,368,157
)
 
$
1,121,928

LIABILITIES AND MEMBER’S EQUITY
Accounts payable
$

 
$

 
$
88,397

 
$

 
$
15

 
$

 
$
88,412

Accrued liabilities
58,847

 

 
63,462

 

 
126

 

 
122,435

Current maturities of long-term debt
13,310

 

 

 

 

 

 
13,310

Current liabilities
72,157

 

 
151,859

 

 
141

 

 
224,157

Intercompany/affiliate payable

 

 
1,335,323

 
32,546

 

 
(1,367,869
)
 

Investment in subsidiaries (3)
439,125

 

 
12,124

 

 

 
(451,249
)
 

Long-term debt(2)
1,235,167

 

 

 

 
23,305

 

 
1,258,472

Other liabilities

 

 
42,502

 

 
8,087

 
(164
)
 
50,425

Member's (deficit) equity
(411,126
)
 

 
(438,721
)
 
(12,124
)
 
(280
)
 
451,125

 
(411,126
)
Total liabilities and equity
$
1,335,323

 
$

 
$
1,103,087

 
$
20,422

 
$
31,253

 
$
(1,368,157
)
 
$
1,121,928

(1) Intangibles and other assets, net of Guarantor Subsidiaries includes $23.3 million of a long-term note receivable from Verso Finance.
(2) Long-term debt of Non-Guarantor Affiliate is payable to Verso Finance.
(3) Investment in subsidiaries has been corrected to reflect presentation as a liability in conformity with current year presentation.

Condensed Consolidating Statements of Operations
Verso Paper Holdings LLC
Condensed Consolidating Statements of Operations and Comprehensive Income
Year Ended December 31, 2014
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net sales
$

 
$

 
$
1,296,613

 
$
3,098

 
$

 
$
(3,098
)
 
$
1,296,613

Cost of products sold (exclusive of depreciation, amortization, and depletion)

 

 
1,177,981

 
1,119

 

 
(3,098
)
 
1,176,002

Depreciation, amortization, and depletion

 

 
89,509

 
1,388

 
55

 
(55
)
 
90,897

Selling, general, and administrative expenses

 

 
71,336

 
(1,422
)
 
31

 

 
69,945

Restructuring charges

 

 
134,486

 

 

 

 
134,486

Interest income
(141,246
)
 

 
(1,517
)
 

 
(1,546
)
 
142,792

 
(1,517
)
Interest expense
141,246

 

 
139,385

 
4,492

 
1,515

 
(142,792
)
 
143,846

Other loss, net

 

 
38,898

 

 

 

 
38,898

Equity in net loss of subsidiaries
(355,944
)
 

 

 

 

 
355,944

 

Net loss
$
(355,944
)
 
$

 
$
(353,465
)
 
$
(2,479
)
 
$
(55
)
 
$
355,999

 
$
(355,944
)
Other comprehensive loss
(15,682
)
 

 
(15,682
)
 

 

 
15,682

 
(15,682
)
Comprehensive loss
$
(371,626
)
 
$

 
$
(369,147
)
 
$
(2,479
)
 
$
(55
)
 
$
371,681

 
$
(371,626
)
 
Verso Paper Holdings LLC
Condensed Consolidating Statements of Operations and Comprehensive Income
Year Ended December 31, 2013
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net sales
$

 
$

 
$
1,388,899

 
$

 
$

 
$

 
$
1,388,899

Cost of products sold (exclusive of depreciation, amortization, and depletion)

 

 
1,179,085

 

 

 

 
1,179,085

Depreciation, amortization, and depletion

 

 
103,655

 
1,075

 
55

 
(55
)
 
104,730

Selling, general, and administrative expenses

 

 
75,452

 
(1,707
)
 
32

 

 
73,777

Restructuring charges

 

 
1,378

 

 

 

 
1,378

Other operating income

 

 
(3,971
)
 

 

 

 
(3,971
)
Interest income
(138,298
)
 

 
(1,539
)
 

 
(1,546
)
 
139,844

 
(1,539
)
Interest expense
138,298

 

 
137,083

 
1,574

 
1,515

 
(139,844
)
 
138,626

Other loss, net
2,800

 

 
5,165

 

 

 

 
7,965

Equity in net loss of subsidiaries
(108,352
)
 

 

 

 

 
108,352

 

Net loss
$
(111,152
)
 
$

 
$
(107,409
)
 
$
(942
)
 
$
(56
)
 
$
108,407

 
$
(111,152
)
Other comprehensive income
13,838

 

 
13,838

 

 

 
(13,838
)
 
13,838

Comprehensive loss
$
(97,314
)
 
$

 
$
(93,571
)
 
$
(942
)
 
$
(56
)
 
$
94,569

 
$
(97,314
)

Verso Paper Holdings LLC
Condensed Consolidating Statements of Operations and Comprehensive Income
Year Ended December 31, 2012
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net sales
$

 
$

 
$
1,474,612

 
$

 
$

 
$

 
$
1,474,612

Cost of products sold (exclusive of depreciation, amortization, and depletion)

 

 
1,272,630

 

 

 

 
1,272,630

Depreciation, amortization, and depletion

 

 
117,014

 
1,164

 
55

 
(55
)
 
118,178

Selling, general, and administrative expenses

 

 
76,039

 
(1,707
)
 
32

 

 
74,364

Restructuring charges

 

 
102,404

 

 

 

 
102,404

Other operating income

 

 
(60,594
)
 

 

 

 
(60,594
)
Interest income
(129,801
)
 

 
(1,523
)
 

 
(1,546
)
 
131,347

 
(1,523
)
Interest expense
129,801

 

 
126,399

 
1,575

 
1,515

 
(131,347
)
 
127,943

Other loss, net
8,244

 

 
(864
)
 

 

 

 
7,380

Equity in net loss of subsidiaries
$
(157,926
)
 
$

 
$

 
$

 
$

 
$
157,926

 
$

Net loss
(166,170
)
 

 
(156,893
)
 
(1,032
)
 
(56
)
 
157,981

 
(166,170
)
Other comprehensive income
3,385

 
$

 
3,385

 
$

 
$

 
(3,385
)
 
3,385

Comprehensive loss
$
(162,785
)
 
$

 
$
(153,508
)
 
$
(1,032
)
 
$
(56
)
 
$
154,596

 
$
(162,785
)
Condensed Consolidating Statements of Cash Flows
Verso Paper Holdings LLC
Condensed Consolidating Statements of Cash Flows
Year Ended December 31, 2014
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net cash used in operating activities
$

 
$

 
$
(60,051
)
 
$
1,708

 
$

 
$

 
$
(58,343
)
Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Proceeds from sale of assets

 

 
766

 
43

 

 

 
809

Transfers (to) from restricted cash

 

 
2,222

 
(1,378
)
 

 

 
844

Capital expenditures

 

 
(41,743
)
 
(220
)
 

 

 
(41,963
)
Other investing activities

 

 
15,020

 

 

 

 
15,020

Advances to subsidiaries
(326,680
)
 

 

 

 

 
326,680

 

Payments from subsidiaries
276,311

 

 

 

 

 
(276,311
)
 

Net cash used in investing activities
(50,369
)
 

 
(23,735
)
 
(1,555
)
 

 
50,369

 
(25,290
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Borrowings on revolving credit facilities
298,250

 

 

 
135,199

 

 

 
433,449

Payments on revolving credit facilities
(235,250
)
 

 

 
(105,199
)
 

 

 
(340,449
)
Repayments of long-term debt
(13,310
)
 

 

 

 

 

 
(13,310
)
Contribution from Verso
717

 

 

 

 

 

 
717

Cash distributions
(38
)
 

 

 

 

 

 
(38
)
Return of capital to parent
 
 
 
 
 
 
(1,296
)
 
 
 
1,296

 

Debt issuance costs

 

 

 
(2,435
)
 

 

 
(2,435
)
Advances from parent

 

 
326,680

 

 

 
(326,680
)
 

Payments to parent
 
 
 
 
(248,598
)
 
(26,417
)
 
 
 
275,015

 

Net cash provided by (used in) financing activities
50,369

 

 
78,082

 
(148
)
 

 
(50,369
)
 
77,934

Change in cash and cash equivalents

 

 
(5,704
)
 
5

 

 

 
(5,699
)
Cash and cash equivalents at beginning of period

 

 
11,230

 

 
10

 

 
11,240

Cash and cash equivalents at end of period
$

 
$

 
$
5,526

 
$
5

 
$
10

 
$

 
$
5,541



Verso Paper Holdings LLC
Condensed Consolidating Statements of Cash Flows
Year Ended December 31, 2013
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiary
 
Non-
Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net cash used in operating activities
$

 
$

 
$
(27,609
)
 
$
154

 
$
(7
)
 
$

 
$
(27,462
)
Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Proceeds from sale of assets

 

 
28,397

 

 

 

 
28,397

Transfers to restricted cash

 

 
(1,338
)
 
(154
)
 

 

 
(1,492
)
Capital expenditures

 

 
(40,660
)
 

 

 

 
(40,660
)
Return of capital to Parent Issuer
8,653

 

 

 

 

 
(8,653
)
 

Advances to subsidiaries
(145,000
)
 

 

 

 

 
145,000

 

Payments from subsidiaries
145,360

 

 

 

 

 
(145,360
)
 

Net cash provided by (used in) investing activities
9,013

 

 
(13,601
)
 
(154
)
 

 
(9,013
)
 
(13,755
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Borrowings on revolving credit facilities
145,000

 

 

 

 

 

 
145,000

Payments on revolving credit facilities
(145,000
)
 

 

 

 

 

 
(145,000
)
Debt issuance costs
(220
)
 

 

 

 

 

 
(220
)
Return of capital to Verso
(8,653
)
 

 

 

 

 

 
(8,653
)
Cash distributions
(140
)
 

 

 

 

 

 
(140
)
Return of capital to Parent Issuer

 

 
(8,653
)
 

 

 
8,653

 

Advances from parent

 

 
145,000

 

 

 
(145,000
)
 

Payments to parent

 

 
(145,360
)
 

 

 
145,360

 

Net cash used in financing activities
(9,013
)
 

 
(9,013
)
 

 

 
9,013

 
(9,013
)
Change in cash and cash equivalents

 

 
(50,223
)
 

 
(7
)
 

 
(50,230
)
Cash and cash equivalents at beginning of period

 

 
61,453

 

 
17

 

 
61,470

Cash and cash equivalents at end of period
$

 
$

 
$
11,230

 
$

 
$
10

 
$

 
$
11,240

 Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation.
Verso Paper Holdings LLC
Condensed Consolidating Statements of Cash Flows
Year Ended December 31, 2012
(Dollars in thousands)
Parent
Issuer
 
Subsidiary
Issuer
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiary
 
Non- Guarantor
Affiliate
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$

 
$

 
$
9,449

 
$
1,909

 
$
(56
)
 
$

 
$
11,302

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Proceeds from insurance settlement

 

 
51,003

 

 

 

 
51,003

Proceeds from sale of fixed assets

 

 
1,731

 

 

 

 
1,731

Transfers (to) from restricted cash

 

 
184

 
(78
)
 

 

 
106

Capital expenditures

 

 
(68,585
)
 
8,676

 

 

 
(59,909
)
Advances to subsidiaries
(454,467
)
 

 

 

 

 
454,467

 

Payment from subsidiaries
492,025

 

 
10,507

 

 

 
(502,532
)
 

Net cash provided by (used in) investing activities
37,558

 

 
(5,160
)
 
8,598

 

 
(48,065
)
 
(7,069
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 
 

 
 

 
 

Borrowings on revolving credit facilities
112,500

 

 

 

 

 

 
112,500

Payments on revolving credit facilities
(112,500
)
 

 

 

 

 

 
(112,500
)
Proceeds from long-term debt
341,191

 

 

 

 

 

 
341,191

Repayments of long-term debt
(354,984
)
 

 

 

 

 

 
(354,984
)
Debt issuance costs
(24,459
)
 

 


 


 

 

 
(24,459
)
Contribution from parent
776

 

 

 

 

 

 
776

Cash distributions
(82
)
 

 

 
(10,507
)
 

 
10,507

 
(82
)
Advances from parent

 

 
454,467

 

 

 
(454,467
)
 

Payments to parent

 

 
(492,025
)
 

 

 
492,025

 

Net cash used in financing activities
(37,558
)
 

 
(37,558
)
 
(10,507
)
 

 
48,065

 
(37,558
)
Change in cash and cash equivalents

 

 
(33,269
)
 

 
(56
)
 

 
(33,325
)
Cash and cash equivalents at beginning of period

 

 
94,722

 

 
73

 

 
94,795

Cash and cash equivalents at end of period
$

 
$

 
$
61,453

 
$

 
$
17

 
$

 
$
61,470


Advances to and payments from subsidiaries amounts have been corrected to be presented in investing activities in conformity with current year presentation.