Indefinite Suspension of Operations

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

3. Indefinite Suspension of Operations

In July 2024, the Company indefinitely suspended operations at its Temiscaming High Purity Cellulose plant. The Temiscaming paperboard and high-yield pulp plants that support the Company’s Paperboard and High-Yield Pulp operating segments will continue to operate at full capacity while remaining part of an ongoing sales process. The High Purity Cellulose plant was idled in a safe and environmentally sound manner and the Company will assess, on at least an annual basis, the possibility of restarting the Temiscaming High Purity Cellulose plant.

Suspension of operations activities began in July 2024 and were mostly completed by the end of the fourth quarter. In connection with the indefinite suspension of operations, the Company has incurred one-time operating charges of $17 million. Remaining one-time charges to be incurred in 2025 are not expected to be material. While most cash costs associated with the indefinite suspension of operations were paid in the third and fourth quarters, severance and other indefinite 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 13—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 indefinite suspension during the year ended December 31, 2024:


	Mothballing Costs		Severance and Other Employee Costs		Total
Balance at December 31, 2023	$	—	$	—	$	—
Charges incurred(a)	5,710		5,403		11,113
Payments	(4,733)		(393)		(5,126)
Balance at December 31, 2024	$	977	$	5,010	$	5,987

(a)Excludes non-cash items. See below.

The following table presents total indefinite suspension charges incurred by cost type:



	Year Ended December 31, 2024
Mothballing costs	$	5,710
Severance and other employee costs	6,133

Loss on asset disposal	975
Other suspension costs	3,812
Indefinite suspension charges(a)	$	16,630

(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 indefinite suspension of operations. See Note 18—Employee Benefit Plans for further information regarding the loss on pension curtailment charges.

The above costs were charged to the High Purity Cellulose operating segment in “indefinite suspension charges” in the consolidated statements of operations.