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Indefinite Suspension of Operations | 9 Months Ended
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Sep. 28, 2024
Restructuring and Related Activities [Abstract] |
Indefinite Suspension of Operations | 2. Indefinite Suspension of Operations As previously announced, the Company began its indefinite suspension of operations at its Temiscaming High Purity Cellulose plant in July 2024. The suspension does not affect the Temiscaming paperboard and high-yield pulp plants that support the Company’s High-Yield Pulp and Paperboard operating segments, which will continue to operate at full capacity while remaining part of an ongoing sales process. The suspension of operations timeline allows enough lead time for the Company to properly execute the shutdown prior to the arrival of winter in the region. The High Purity Cellulose plant will be idled in a safe and environmentally sound manner. The Company will assess on an annual basis the possibility of restarting the Temiscaming High Purity Cellulose plant. The suspension of operations began on July 16, 2024 and is expected to conclude in the fourth quarter. In connection with the suspension of operations, the Company has incurred total one-time operating charges of $14 million. Potential remaining one-time charges to be incurred in the fourth quarter are estimated at $2 million to $3 million. While most cash costs associated with the suspension of operations will be paid in the third and fourth quarters, severance and other suspension costs are expected to be paid over a period of time. In the third quarter of 2024, in conjunction with the indefinite suspension of operations, the Company recognized a non-cash asset impairment of $25 million, as it was determined that the Temiscaming High Purity Cellulose plant’s net carrying value exceeded its estimated fair value. Determining the fair value of an asset group is judgmental in nature and involves the use of significant estimates and assumptions. The Company determined the fair value of the Temiscaming High Purity Cellulose plant asset group using discounted cash flows under the income approach, which required the use of key assumptions and significant estimates. See Note 10—Fair Value Measurements for further information on the fair value measurement of the Temiscaming plant asset group. The following table presents the accrued liability balance activity related to the suspension during the nine months ended September 28, 2024:
| Mothballing Costs |  | Severance and Other Employee Costs |  |  |  | Total
Balance at December 31, 2023 | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Charges incurred(a) | 3,456 |  |  | 5,476 |  |  |  |  | 8,932 |
Payments | (2,968) |  |  | (160) |  |  |  |  | (3,128) |
Balance at September 28, 2024 | $ | 488 |  |  | $ | 5,316 |  |  |  |  | $ | 5,804 |
(a)Excludes non-cash items. See below. The following table presents total suspension charges incurred by cost type:
| Three Months Ended September 28, 2024 |  | Nine Months Ended September 28, 2024
Mothballing costs | $ | 3,036 |  |  | $ | 3,456 |
Severance and other employee costs | — |  |  | 6,206 |
Loss on asset disposal | 995 |  |  | 995 |
Other suspension costs | 3,794 |  |  | 3,794 |
Indefinite suspension charges(a) | $ | 7,825 |  |  | $ | 14,451 |
(a)Includes non-cash charges of (i) a $2 million write-off of deferred shutdown costs, (ii) $2 million for potential contract penalties, (iii) a loss on asset disposal of $1 million and (iv) a $1 million loss on pension curtailment charges associated with early retirements driven by the suspension of operations. See Note 14—Employee Benefit Plans for further information regarding the loss on pension curtailment charges. The above costs incurred were charged to the High Purity Cellulose segment in “indefinite suspension charges” in the consolidated statements of operations.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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