Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'IP | ' |
Entity Registrant Name | 'INTERNATIONAL PAPER CO /NEW/ | ' |
Entity Central Index Key | '0000051434 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 443,623,335 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Sales | $7,406 | $7,026 | $21,831 | $20,758 | |
Costs and Expenses | ' | ' | ' | ' | |
Cost of products sold | 5,313 | 5,140 | 15,947 | 15,394 | |
Selling and administrative expenses | 572 | 527 | 1,654 | 1,514 | |
Depreciation, amortization and cost of timber harvested | 401 | 383 | 1,176 | 1,111 | |
Distribution expenses | 438 | 403 | 1,309 | 1,198 | |
Taxes other than payroll and income taxes | 47 | 39 | 143 | 124 | |
Restructuring and other charges | 76 | 33 | 131 | 88 | |
Net (gains) losses on sales and impairments of businesses | 1 | 18 | 1 | 89 | |
Net bargain purchase gain on acquisition of business | 0 | 0 | -13 | 0 | |
Interest expense, net | 147 | 163 | 479 | [1] | 503 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 411 | 320 | 1,004 | 737 | |
Income tax provision (benefit) | 41 | 130 | 66 | 257 | |
Equity earnings (losses), net of taxes | 16 | 34 | -30 | 52 | |
Earnings (Loss) From Continuing Operations | 386 | 224 | 908 | 532 | |
Discontinued operations, net of taxes | -10 | 14 | 40 | 35 | |
Net Earnings (Loss) | 376 | 238 | 948 | 567 | |
Less: Net earnings (loss) attributable to noncontrolling interests | -6 | 1 | -11 | 8 | |
Net Earnings (Loss) Attributable to International Paper Company | 382 | 237 | 959 | 559 | |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ' | ' | ' | ' | |
Earnings (loss) from continuing operations | $0.88 | $0.51 | $2.07 | $1.20 | |
Discontinued operations, net of taxes | ($0.02) | $0.03 | $0.09 | $0.08 | |
Net earnings (loss) | $0.86 | $0.54 | $2.16 | $1.28 | |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ' | ' | ' | ' | |
Earnings (loss) from continuing operations | $0.87 | $0.51 | $2.05 | $1.19 | |
Discontinued operations, net of taxes | ($0.02) | $0.03 | $0.09 | $0.08 | |
Net earnings (loss) | $0.85 | $0.54 | $2.14 | $1.27 | |
Average Shares of Common Stock Outstanding - assuming dilution | 449.7 | 439.8 | 448.7 | 439.7 | |
Cash Dividends Per Common Share | $0.30 | $0.26 | $0.90 | $0.79 | |
Amounts Attributable to International Paper Company Common Shareholders | ' | ' | ' | ' | |
Earnings (loss) from continuing operations | 392 | 223 | 919 | 524 | |
Discontinued operations, net of taxes | -10 | 14 | 40 | 35 | |
Net Earnings (Loss) Attributable to International Paper Company | $382 | $237 | $959 | $559 | |
[1] | Includes a gain of $6 million for interest related to the settlement of an IRS tax audit. |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net Earnings (Loss) | $376 | $238 | $948 | $567 | ||||
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' | ' | ||||
Change in cumulative foreign currency translation adjustment | 34 | 114 | -312 | -161 | ||||
Net gains/losses on cash flow hedging derivatives: | ' | ' | ' | ' | ||||
Net gains (losses) arising during the period | 7 | 7 | -3 | 13 | ||||
Reclassification adjustment for (gains) losses included in net earnings (loss) | 4 | 4 | -5 | 17 | ||||
Total Other Comprehensive Income (Loss), Net of Tax | 224 | [1] | 177 | [1] | 13 | [1] | 43 | [1] |
Comprehensive Income (Loss) | 600 | 415 | 961 | 610 | ||||
Net (earnings) loss attributable to noncontrolling interests | 6 | -1 | 11 | -8 | ||||
Other comprehensive (income) loss attributable to noncontrolling interests | 0 | -12 | 15 | 3 | ||||
Comprehensive Income (Loss) Attributable to International Paper Company | 606 | 402 | 987 | 605 | ||||
U.S. Plans | ' | ' | ' | ' | ||||
Other Comprehensive Income (Loss), Net of Tax: | ' | ' | ' | ' | ||||
Amortization of pension and post-retirement prior service costs and net loss: | 76 | 48 | 230 | 146 | ||||
Pension and postretirement liability adjustments | $103 | $4 | $103 | $28 | ||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and temporary investments | $1,946 | $1,302 |
Accounts and notes receivable, net | 4,024 | 3,562 |
Inventories | 2,841 | 2,730 |
Deferred income tax assets | 421 | 323 |
Assets of businesses held for sale | 0 | 759 |
Other current assets | 243 | 229 |
Total Current Assets | 9,475 | 8,905 |
Plants, Properties and Equipment, net | 13,697 | 13,949 |
Forestlands | 580 | 622 |
Investments | 755 | 887 |
Financial Assets of Special Purpose Entities (Note 13) | 2,122 | 2,108 |
Goodwill | 4,491 | 4,315 |
Deferred Charges and Other Assets | 1,469 | 1,367 |
Total Assets | 32,589 | 32,153 |
Current Liabilities | ' | ' |
Notes payable and current maturities of long-term debt | 783 | 444 |
Accounts payable | 2,904 | 2,775 |
Accrued payroll and benefits | 513 | 508 |
Liabilities of businesses held for sale | 0 | 44 |
Other accrued liabilities | 1,195 | 1,227 |
Total Current Liabilities | 5,395 | 4,998 |
Long-Term Debt | 8,900 | 9,696 |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 13) | 2,042 | 2,036 |
Deferred Income Taxes | 3,330 | 3,026 |
Pension Benefit Obligation | 3,932 | 4,112 |
Postretirement and Postemployment Benefit Obligation | 435 | 473 |
Other Liabilities | 1,013 | 1,176 |
Equity | ' | ' |
Common stock, $1 par value, 2013 - 447.0 shares and 2012 - 439.9 shares | 447 | 440 |
Paid-in capital | 6,432 | 6,042 |
Retained earnings | 4,212 | 3,662 |
Accumulated other comprehensive loss | -3,812 | -3,840 |
Shareholders' Equity before Treasury Stock, Total | 7,279 | 6,304 |
Less: Common stock held in treasury, at cost, 2013 - 1.1 shares and 2012 - 0.013 shares | 49 | 0 |
Total Shareholders' Equity | 7,230 | 6,304 |
Noncontrolling interests | 312 | 332 |
Total Equity | 7,542 | 6,636 |
Total Liabilities and Equity | $32,589 | $32,153 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, par value | $1 | $1 |
Common stock, shares | 447,000,000 | 439,900,000 |
Common stock held in treasury, shares | 1,067,000 | 13,000 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net earnings (loss) | $948 | $567 |
Discontinued operations, net of taxes | -40 | -35 |
Earnings (loss) from continuing operations | -908 | -532 |
Depreciation, amortization and cost of timber harvested | 1,176 | 1,111 |
Deferred income tax provision, net | 55 | 192 |
Restructuring and other charges | 131 | 88 |
Pension plan contribution | -31 | -44 |
Net (gains) losses on sales and impairments of businesses | 1 | 89 |
Net bargain purchase gain on acquisition of business | -13 | 0 |
Equity (earnings) losses, net | 30 | -52 |
Periodic pension expense, net | 413 | 256 |
Other, net | -112 | -66 |
Changes in current assets and liabilities | ' | ' |
Accounts and notes receivable | -357 | 226 |
Inventories | -121 | 23 |
Accounts payable and accrued liabilities | -19 | -125 |
Interest payable | -8 | 65 |
Other | -89 | -21 |
Cash Provided By (Used For) Operations - Continuing Operations | 1,964 | 2,274 |
Cash Provided By (Used For) Operations - Discontinued Operations | 27 | -20 |
Cash Provided By (Used For) Operations | 1,991 | 2,254 |
Investment Activities | ' | ' |
Invested in capital projects | -759 | -1,001 |
Acquisitions, net of cash acquired | -507 | -3,734 |
Proceeds from divestitures | 733 | 474 |
Equity investment in Ilim | 0 | -45 |
Proceeds from Sale of Property, Plant, and Equipment | 76 | 0 |
Other | -33 | -115 |
Cash Provided By (Used For) Investment Activities - Continuing Operations | -490 | -4,421 |
Cash Provided By (Used For) Investment Activities - Discontinued Operations | 1 | -61 |
Cash Provided By (Used For) Investment Activities | -489 | -4,482 |
Financing Activities | ' | ' |
Repurchases of common stock and payments of restricted stock tax withholding | -70 | -35 |
Issuance of common stock | 288 | 60 |
Issuance of debt | 212 | 2,052 |
Reduction of debt | -637 | -2,123 |
Change in book overdrafts | -65 | -52 |
Dividends paid | -400 | -344 |
Redemption of securities | -150 | 0 |
Other | -28 | -38 |
Cash Provided By (Used For) Financing Activities | -850 | -480 |
Effect of Exchange Rate Changes on Cash | -8 | -11 |
Change in Cash and Temporary Investments | 644 | -2,719 |
Cash and Temporary Investments | ' | ' |
Beginning of period | 1,302 | 3,994 |
End of period | $1,946 | $1,275 |
BASIS_OF_PRESENTATION_Note
BASIS OF PRESENTATION (Note) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation [Note Text Block] | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States and in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments that are necessary for the fair presentation of International Paper Company’s (International Paper’s, the Company’s or our) financial position, results of operations, and cash flows for the interim periods presented. Except as disclosed herein, such adjustments are of a normal, recurring nature. Results for the first nine months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 which have previously been filed with the Securities and Exchange Commission. |
RECENT_ACCOUNTING_DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS (Note) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Developments [Note Text Block] | ' |
RECENT ACCOUNTING DEVELOPMENTS | |
Disclosures About Offsetting Assets and Liabilities | |
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-11, "Disclosures about Offsetting Assets and Liabilities", which amends ASC 210, "Balance Sheet". This ASU requires entities to disclose gross and net information about both instruments and transactions eligible for offset in the statement of financial position and those subject to an agreement similar to a master netting arrangement. This would include derivatives and other financial securities arrangements. This guidance was effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013 and was required to be applied retrospectively. The application of the requirements of this guidance did not have a material effect on the consolidated financial statements. | |
Intangibles – Goodwill and Other | |
In July 2012, the FASB issued ASU 2012-02, "Testing Indefinite-Lived Intangible Assets for Impairment," which amends ASC 350, "Intangibles - Goodwill and Other". This ASU gives an entity the option to first assess qualitative factors if it is more likely than not that the fair value of indefinite-lived intangible assets are less than their carrying amount. If that assessment indicates no impairment, the quantitative impairment test is not required. This amendment was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of the provisions of this guidance did not have a material effect on the Company's consolidated financial statements. | |
Comprehensive Income | |
In February 2013, the FASB issued ASU 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income. This guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted the provisions of this guidance in the first quarter of 2013. | |
Hedge Accounting | |
In July 2013, the FASB issued ASU 2013-10, "Derivatives and Hedging," which amends ASC 815, "Derivatives and Hedging," to allow entities to use the Fed Funds Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. The ASU also eliminates the provision that prohibits the use of different benchmark rates for similar hedges except in rare and justifiable circumstances. The ASU is effective prospectively for qualifying new hedging relationships entered into on or after July 17, 2013 and for hedging relationships redesignated on or after that date. The adoption of the provisions of this guidance did not have a material effect on the Company's consolidated financial statements. | |
Income Taxes | |
In July 2013, the FASB also issued ASU 2013-11, "Income Taxes," which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance should be applied to all unrealized tax benefits that exist as of the effective date which is fiscal years beginning after December 15, 2013, and interim periods within those years. The Company is currently evaluating the provisions of this guidance. |
EQUITY_Note
EQUITY (Note) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Equity [Note Text Block] | ' | |||||||||||||||||||||||
EQUITY | ||||||||||||||||||||||||
A summary of the changes in equity for the nine-month periods ended September 30, 2013 and 2012 is provided below: | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
In millions, except per share amounts | Total | Noncontrolling | Total | Total | Noncontrolling | Total | ||||||||||||||||||
International | Interests | Equity | International | Interests | Equity | |||||||||||||||||||
Paper | Paper | |||||||||||||||||||||||
Shareholders’ | Shareholders’ | |||||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||
Balance, January 1 | $ | 6,304 | $ | 332 | $ | 6,636 | $ | 6,645 | $ | 340 | $ | 6,985 | ||||||||||||
Issuance of stock for various plans, net | 418 | — | 418 | 144 | — | 144 | ||||||||||||||||||
Repurchase of stock | (70 | ) | — | (70 | ) | (35 | ) | — | (35 | ) | ||||||||||||||
Common stock dividends ($0.9000 per share in 2013 and $0.7875 per share in 2012) | (409 | ) | — | (409 | ) | (353 | ) | — | (353 | ) | ||||||||||||||
Dividends paid to noncontrolling interests by subsidiary | — | (1 | ) | (1 | ) | — | (4 | ) | (4 | ) | ||||||||||||||
Noncontrolling interests of acquired entities, net | — | 7 | 7 | — | — | — | ||||||||||||||||||
Acquisition of noncontrolling interests | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||
Comprehensive income (loss) | 987 | (26 | ) | 961 | 605 | 5 | 610 | |||||||||||||||||
Ending Balance, September 30 | $ | 7,230 | $ | 312 | $ | 7,542 | $ | 7,006 | $ | 339 | $ | 7,345 | ||||||||||||
COMPREHENSIVE_INCOME_COMPREHEN
COMPREHENSIVE INCOME COMPREHENSIVE INCOME (Note) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Comprehensive Income [Note Text Block] | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | |||||||||||||||||
The following table presents changes in AOCI for the three-month period ended September 30, 2013: | |||||||||||||||||
In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | |||||||||||||
Balance as of June 30, 2013 | $ | (3,442 | ) | $ | (592 | ) | $ | (17 | ) | $ | (4,051 | ) | |||||
Other comprehensive income (loss) before reclassifications | 103 | 34 | 7 | 144 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | 76 | — | 4 | 80 | |||||||||||||
Net Current Period Other Comprehensive Income | 179 | 34 | 11 | 224 | |||||||||||||
Balance as of September 30, 2013 | $ | (3,263 | ) | $ | (558 | ) | $ | (6 | ) | $ | (3,827 | ) | |||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||||||||||||
The following table presents changes in AOCI for the three-month period ended September 30, 2012: | |||||||||||||||||
In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | |||||||||||||
Balance as of June 30, 2012 | $ | (2,730 | ) | $ | (392 | ) | $ | (17 | ) | $ | (3,139 | ) | |||||
Other comprehensive income (loss) before reclassifications | 4 | 114 | 7 | 125 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | 48 | — | 4 | 52 | |||||||||||||
Net Current Period Other Comprehensive Income | 52 | 114 | 11 | 177 | |||||||||||||
Balance as of September 30, 2012 | $ | (2,678 | ) | $ | (278 | ) | $ | (6 | ) | $ | (2,962 | ) | |||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||||||||||||
The following table presents changes in AOCI for the nine-month period ended September 30, 2013: | |||||||||||||||||
In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | |||||||||||||
Balance as of January 1, 2013 | $ | (3,596 | ) | $ | (246 | ) | $ | 2 | $ | (3,840 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 103 | (329 | ) | (3 | ) | (229 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive income | 230 | 17 | (5 | ) | 242 | ||||||||||||
Net Current Period Other Comprehensive Income | 333 | (312 | ) | (8 | ) | 13 | |||||||||||
Balance as of September 30, 2013 | $ | (3,263 | ) | $ | (558 | ) | $ | (6 | ) | $ | (3,827 | ) | |||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||||||||||||
The following table presents changes in AOCI for the nine-month period ended September 30, 2012: | |||||||||||||||||
In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | |||||||||||||
Balance as of January 1, 2012 | $ | (2,852 | ) | $ | (117 | ) | $ | (36 | ) | $ | (3,005 | ) | |||||
Other comprehensive income (loss) before reclassifications | 28 | (126 | ) | 13 | (85 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 146 | (35 | ) | 17 | 128 | ||||||||||||
Net Current Period Other Comprehensive Income | 174 | (161 | ) | 30 | 43 | ||||||||||||
Balance as of September 30, 2012 | $ | (2,678 | ) | $ | (278 | ) | $ | (6 | ) | $ | (2,962 | ) | |||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||||||||||||
The following table presents details of the reclassifications out of AOCI for the three-month period ended September 30, 2013: | |||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||
In millions: | |||||||||||||||||
Defined benefit pension and postretirement items: | |||||||||||||||||
Prior-service costs | $ | (2 | ) | (b) | Cost of products sold | ||||||||||||
Actuarial gains/(losses) | (123 | ) | (b) | Cost of products sold | |||||||||||||
Total pre-tax amount | (125 | ) | |||||||||||||||
Tax (expense)/benefit | 49 | ||||||||||||||||
Net of tax | $ | (76 | ) | ||||||||||||||
Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
Foreign exchange contracts | $ | (6 | ) | (c) | Cost of products sold | ||||||||||||
Total pre-tax amount | (6 | ) | |||||||||||||||
Tax (expense)/benefit | 2 | ||||||||||||||||
Net of tax | (4 | ) | |||||||||||||||
Total reclassifications for the period | $ | (80 | ) | ||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | |||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | |||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | |||||||||||||||||
The following table presents details of the reclassifications out of AOCI for the three-month period ended September 30, 2012: | |||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||
In millions: | |||||||||||||||||
Defined benefit pension and postretirement items: | |||||||||||||||||
Prior-service costs | $ | (1 | ) | (b) | Cost of products sold | ||||||||||||
Actuarial gains/(losses) | (78 | ) | (b) | Cost of products sold | |||||||||||||
Total pre-tax amount | (79 | ) | |||||||||||||||
Tax (expense)/benefit | 31 | ||||||||||||||||
Net of tax | $ | (48 | ) | ||||||||||||||
Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
Foreign exchange contracts | $ | (6 | ) | (c) | Cost of products sold | ||||||||||||
Total pre-tax amount | (6 | ) | |||||||||||||||
Tax (expense)/benefit | 2 | ||||||||||||||||
Net of tax | (4 | ) | |||||||||||||||
Total reclassifications for the period | $ | (52 | ) | ||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | |||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | |||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | |||||||||||||||||
The following table presents details of the reclassifications out of AOCI for the nine-month period ended September 30, 2013: | |||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||
In millions | |||||||||||||||||
Defined benefit pension and postretirement items: | |||||||||||||||||
Prior-service costs | $ | (7 | ) | (b) | Cost of products sold | ||||||||||||
Actuarial gains/(losses) | (370 | ) | (b) | Cost of products sold | |||||||||||||
Total pre-tax amount | (377 | ) | |||||||||||||||
Tax (expense)/benefit | 147 | ||||||||||||||||
Net of tax | $ | (230 | ) | ||||||||||||||
Change in cumulative foreign currency translation adjustments: | |||||||||||||||||
Business acquisition/divestitures | $ | (17 | ) | Net bargain purchase gain on acquisition of business | |||||||||||||
Tax (expense)/benefit | — | ||||||||||||||||
Net of tax | $ | (17 | ) | ||||||||||||||
Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
Foreign exchange contracts | $ | 7 | (c) | Cost of products sold | |||||||||||||
Total pre-tax amount | 7 | ||||||||||||||||
Tax (expense)/benefit | (2 | ) | |||||||||||||||
Net of tax | 5 | ||||||||||||||||
Total reclassifications for the period | $ | (242 | ) | ||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | |||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | |||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | |||||||||||||||||
The following table presents details of the reclassifications out of AOCI for the nine-month period ended September 30, 2012: | |||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||
In millions | |||||||||||||||||
Defined benefit pension and postretirement items: | |||||||||||||||||
Prior-service costs | $ | (2 | ) | (b) | Cost of products sold | ||||||||||||
Actuarial gains/(losses) | (237 | ) | (b) | Cost of products sold | |||||||||||||
Total pre-tax amount | (239 | ) | |||||||||||||||
Tax (expense)/benefit | 93 | ||||||||||||||||
Net of tax | $ | (146 | ) | ||||||||||||||
Change in cumulative foreign currency translation adjustments: | |||||||||||||||||
Business acquisitions/divestitures | $ | 48 | Net (gains) losses on sales and impairments of businesses | ||||||||||||||
Tax (expense)/benefit | (13 | ) | |||||||||||||||
Net of tax | $ | 35 | |||||||||||||||
Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
Foreign exchange contracts | $ | (16 | ) | (c) | Cost of products sold | ||||||||||||
Natural gas contracts | (11 | ) | (c) | Cost of products sold | |||||||||||||
Total pre-tax amount | (27 | ) | |||||||||||||||
Tax (expense)/benefit | 10 | ||||||||||||||||
Net of tax | (17 | ) | |||||||||||||||
Total reclassifications for the period | $ | (128 | ) | ||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | |||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | |||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). |
EARNINGS_PER_SHARE_ATTRIBUTABL
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ' | |||||||||||||||
Earnings Per Share [Note Text Block] | ' | |||||||||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS | ||||||||||||||||
Basic earnings per common share are computed by dividing earnings by the weighted average number of common shares outstanding. Diluted earnings per common share are computed assuming that all potentially dilutive securities, including “in-the-money” stock options, were converted into common shares. A reconciliation of the amounts included in the computation of earnings (loss) per common share, and diluted earnings (loss) per common share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Earnings (loss) from continuing operations | $ | 392 | $ | 223 | $ | 919 | $ | 524 | ||||||||
Effect of dilutive securities (a) | — | — | — | — | ||||||||||||
Earnings (loss) from continuing operations – assuming dilution | $ | 392 | $ | 223 | $ | 919 | $ | 524 | ||||||||
Average common shares outstanding | 445.9 | 435.1 | 444.1 | 434.7 | ||||||||||||
Effect of dilutive securities (a) | ||||||||||||||||
Restricted stock performance share plan | 3.6 | 4.7 | 4.3 | 5 | ||||||||||||
Stock options (b) | 0.2 | — | 0.3 | — | ||||||||||||
Average common shares outstanding – assuming dilution | 449.7 | 439.8 | 448.7 | 439.7 | ||||||||||||
Basic earnings (loss) from continuing operations per common share | $ | 0.88 | $ | 0.51 | $ | 2.07 | $ | 1.2 | ||||||||
Diluted earnings (loss) from continuing operations per common share | $ | 0.87 | $ | 0.51 | $ | 2.05 | $ | 1.19 | ||||||||
(a) Securities are not included in the table in periods when antidilutive. | ||||||||||||||||
(b) | Options to purchase 10.7 million shares for the three months ended September 30, 2012 and 9.4 million shares for the nine months ended September 30, 2012 were not included in the computation of diluted common shares outstanding because their exercise price exceeded the average market price of the Company’s common stock for each respective reporting period. |
RESTRUCTURING_AND_OTHER_CHARGE
RESTRUCTURING AND OTHER CHARGES (Note) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring and Related Activities [Note Text Block] | ' | |||||||
RESTRUCTURING AND OTHER CHARGES | ||||||||
2013: During the three months ended September 30, 2013, restructuring and other charges totaling $76 million before taxes ($47 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended | ||||||||
30-Sep-13 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 15 | $ | 9 | ||||
xpedx restructuring | 6 | 4 | ||||||
xpedx transaction costs | 11 | 7 | ||||||
Courtland mill shutdown | 51 | 31 | ||||||
Bellevue box plant facility sale | (9 | ) | (6 | ) | ||||
Other | 2 | 2 | ||||||
Total | $ | 76 | $ | 47 | ||||
During the three months ended June 30, 2013, restructuring and other charges totaling a gain of $4 million before taxes ($2 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended | ||||||||
30-Jun-13 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 3 | $ | 2 | ||||
Insurance reimbursements | (30 | ) | (19 | ) | ||||
xpedx restructuring | 17 | 10 | ||||||
Other | 6 | 5 | ||||||
Total | $ | (4 | ) | $ | (2 | ) | ||
During the three months ended March 31, 2013, restructuring and other charges totaling $59 million before taxes ($36 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended | ||||||||
31-Mar-13 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 6 | $ | 4 | ||||
xpedx restructuring | 7 | 4 | ||||||
Augusta paper machine shutdown | 44 | 27 | ||||||
Other | 2 | 1 | ||||||
Total | $ | 59 | $ | 36 | ||||
2012: During the three months ended September 30, 2012, restructuring and other charges totaling $33 million before taxes ($24 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended | ||||||||
September 30, 2012 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 13 | $ | 8 | ||||
xpedx restructuring | 8 | 4 | ||||||
EMEA packaging restructuring | 16 | 11 | ||||||
Other | (4 | ) | 1 | |||||
Total | $ | 33 | $ | 24 | ||||
During the three months ended June 30, 2012, restructuring and other charges totaling $21 million before taxes ($13 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended June 30, 2012 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 10 | $ | 6 | ||||
xpedx restructuring | 10 | 6 | ||||||
Other | 1 | 1 | ||||||
Total | $ | 21 | $ | 13 | ||||
During the three months ended March 31, 2012, restructuring and other charges totaling $34 million before taxes ($23 million after taxes) were recorded. Details of these charges were as follows: | ||||||||
Three Months Ended March 31, 2012 | ||||||||
In millions | Before-Tax | After-Tax | ||||||
Charges | Charges | |||||||
Early debt extinguishment costs | $ | 16 | $ | 10 | ||||
xpedx restructuring | 19 | 14 | ||||||
Other | (1 | ) | (1 | ) | ||||
Total | $ | 34 | $ | 23 | ||||
ACQUISITIONS_AND_JOINT_VENTURE
ACQUISITIONS AND JOINT VENTURES (Note) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Acquisitions And Joint Ventures [Abstract] | ' | |||||
Acquisitions and Joint Ventures [Note Text Block] | ' | |||||
ACQUISITIONS AND JOINT VENTURES | ||||||
Acquisitions | ||||||
2013: On January 3, 2013, International Paper completed the acquisition (effective date of acquisition on January 1, 2013) of the shares of its joint venture partner, Sabanci Holding, in the Turkish corrugated packaging company, Olmuksa International Paper Sabanci Ambalaj Sanayi ve Ticaret A.S. (now called Olmuksan International Paper or Olmuksan), for a purchase price of $56 million. The acquired shares represent 43.7% of Olmuksan's shares. Prior to this acquisition, International Paper held a 43.7% equity interest in Olmuksan. | ||||||
Because the transaction resulted in International Paper becoming the majority shareholder, owning 87.4% of Olmuksan's outstanding and issued shares, its completion triggered a mandatory call for tender of the remaining public shares which began in March 2013 and ended in April 2013, with no shares tendered. Also as a result of International Paper taking majority control of the entity, Olmuksan's financial results have been consolidated with the Company's Industrial Packaging segment beginning January 1, 2013, the effective date which International Paper obtained majority control of the entity. | ||||||
Following the transaction, the Company's previously held 43.7% equity interest in Olmuksan was remeasured to a fair value of $75 million, resulting in a gain of $9 million. The fair value was estimated by applying the discounted cash flow approach, using a 13% discount rate, long-term sustainable growth rates ranging from 6% to 9% and a corporate tax rate of 20%. In addition, the cumulative translation adjustment balance of $17 million relating to the previously held equity interest was reclassified, as expense, to Net bargain purchase gain on acquisition of business in the accompanying consolidated statement of operations, from accumulated other comprehensive income. | ||||||
The preliminary purchase price allocation indicates that the sum of the cash consideration paid, the fair value of the noncontrolling interest and the fair value of the previously held interest is less than the fair value of the underlying assets by $22 million, resulting in a bargain purchase price gain being recorded on this transaction. | ||||||
The $17 million reclassification of the cumulative translation balance and $18 million of the estimated bargain purchase gain were recorded in the 2013 first-quarter earnings. The $9 million gain resulting from the measurement of the previously held equity interest and an additional $4 million bargain purchase gain were recorded in 2013 second-quarter earnings and are included in the Net bargain purchase gain on acquisition of business line item in the accompanying consolidated statement of operations. | ||||||
Due to the timing of the completion of the acquisition, certain assumptions and estimates were used in determining the preliminary purchase price allocation. Those assumptions and estimates primarily relate to the amounts allocated to deferred taxes and contingent liabilities (which are included in Accounts payable and other accrued liabilities in the accompanying consolidated balance sheet), as work is still ongoing as of September 30, 2013 to determine the fair value of those assets and liabilities at the acquisition date. Therefore, the amounts disclosed may change as the purchase price allocation is finalized. The purchase price allocation is expected to be finalized in the fourth quarter of 2013. | ||||||
The following table summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of January 1, 2013. | ||||||
In millions | ||||||
Cash and temporary investments | $ | 5 | ||||
Accounts and notes receivable | 72 | |||||
Inventory | 31 | |||||
Other current assets | 2 | |||||
Plants, properties and equipment | 105 | |||||
Investments | 11 | |||||
Total assets acquired | 226 | |||||
Notes payable and current maturities of long-term debt | 17 | |||||
Accounts payable and accrued liabilities | 27 | |||||
Deferred income tax liability | 4 | |||||
Postretirement and postemployment benefit obligation | 6 | |||||
Total liabilities assumed | 54 | |||||
Noncontrolling interest | 18 | |||||
Net assets acquired | $ | 154 | ||||
Pro forma information related to the acquisition of Olmuksan has not been included as it does not have a material effect on the Company's consolidated results of operations. | ||||||
2012: On February 13, 2012, International Paper completed the acquisition of Temple-Inland Inc. (Temple-Inland). International Paper acquired all of the outstanding common stock of Temple-Inland for $32.00 per share in cash, totaling approximately $3.7 billion, and assumed approximately $700 million in Temple-Inland’s debt. As a condition to allowing the transaction to proceed, the Company entered into an agreement on a proposed Final Judgment with the Antitrust Division of the U.S. Department of Justice (DOJ) that required the Company to divest three containerboard mills, with approximately 970,000 tons of aggregate containerboard capacity. On July 2, 2012, International Paper finalized the sales of its Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. By completing these transactions, the Company satisfied its divestiture obligations under the Final Judgment. See Note 8 for further details of these divestitures. | ||||||
Temple-Inland's results of operations are included in the consolidated financial statements from the date of acquisition on February 13, 2012. | ||||||
The following summarizes the allocation of the purchase price to the fair value of assets and liabilities acquired as of February 13, 2012, which was finalized in the fourth quarter of 2012. | ||||||
In millions | ||||||
Accounts and notes receivable | $ | 466 | ||||
Inventory | 484 | |||||
Deferred income tax assets – current | 140 | |||||
Other current assets | 57 | |||||
Plants, properties and equipment | 2,911 | |||||
Financial assets of special purpose entities | 2,091 | |||||
Goodwill | 2,139 | |||||
Other intangible assets | 693 | |||||
Deferred charges and other assets | 54 | |||||
Total assets acquired | 9,035 | |||||
Notes payable and current maturities of long-term debt | 130 | |||||
Accounts payable and accrued liabilities | 704 | |||||
Long-term debt | 527 | |||||
Nonrecourse financial liabilities of special purpose entities | 2,030 | |||||
Deferred income tax liability | 1,252 | |||||
Pension benefit obligation | 338 | |||||
Postretirement and postemployment benefit obligation | 99 | |||||
Other liabilities | 221 | |||||
Total liabilities assumed | 5,301 | |||||
Net assets acquired | $ | 3,734 | ||||
The identifiable intangible assets acquired in connection with the Temple-Inland acquisition included the following: | ||||||
In millions | Estimated | Average | ||||
Fair Value | Remaining | |||||
Useful Life | ||||||
(at acquisition date) | ||||||
Asset Class: | ||||||
Customer relationships | $ | 536 | 12-17 years | |||
Developed technology | 8 | 5-10 years | ||||
Tradenames | 109 | Indefinite | ||||
Favorable contracts | 14 | 4-7 years | ||||
Non-compete agreement | 26 | 2 years | ||||
Total | $ | 693 | ||||
In connection with the purchase price allocation, inventories were written up by approximately $20 million before taxes ($12 million after taxes) to their estimated fair value. As the related inventories were sold in the 2012 first quarter, this amount was expensed in Cost of products sold for the quarter. | ||||||
Additionally, Selling and administrative expenses included $24 million ($15 million after taxes) and $50 million ($31 million after taxes), for the three months and nine months ended September 30, 2013, respectively, and $58 million ($34 million after taxes) and $136 million ($89 million after taxes), for the three months and nine months ended September 30, 2012, respectively, in charges for integration costs associated with the acquisition. | ||||||
The following unaudited pro forma information for the nine months ended September 30, 2012 represents the results of operations of International Paper as if the Temple-Inland acquisition had occurred as of January 1, 2012. This information does not purport to represent International Paper’s actual results of operations if the transaction described above would have occurred on January 1, 2012, nor is it necessarily indicative of future results. | ||||||
In millions, except per share amounts | Nine Months Ended | |||||
30-Sep-12 | ||||||
Net sales | $ | 21,050 | ||||
Earnings (loss) from continuing operations (a) | 567 | |||||
Net earnings (loss) (a) | 602 | |||||
Diluted earnings (loss) from continuing operations per common share (a) | 1.29 | |||||
Diluted net earnings (loss) per common share (a) | 1.37 | |||||
(a) Attributable to International Paper Company common shareholders. | ||||||
Joint Ventures | ||||||
2013: On January 14, 2013, International Paper and Brazilian corrugated packaging producer, Jari Celulose, Papel e Embalagens S.A. (Jari), a Grupo Orsa company, formed Orsa International Paper Embalagens S.A. (Orsa IP). The new entity, in which International Paper holds a 75% stake, includes three containerboard mills and four box plants, which make up Jari's former industrial packaging assets. This acquisition supports the Company's strategy of growing its global packaging presence and better serving its global customer base. | ||||||
The value of International Paper's investment in Orsa IP is approximately $471 million. Because International Paper acquired majority control of the joint venture, Orsa IP's financial results have been consolidated with our Industrial Packaging segment from the date of formation on January 14, 2013. | ||||||
Due to the timing of the completion of the acquisition, certain assumptions and estimates were used in determining the preliminary purchase price allocation. Those assumptions and estimates primarily relate to the amounts allocated to deferred taxes and postretirement and postemployment benefit obligations, as work is still ongoing as of September 30, 2013 to determine the fair value of those assets and liabilities at the acquisition date. Therefore, the amount disclosed may change materially as the purchase price allocation is refined. The purchase price allocation is expected to be finalized during the fourth quarter of 2013. | ||||||
The following table summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of January 14, 2013. | ||||||
In millions | ||||||
Cash and temporary investments | $ | 16 | ||||
Accounts and notes receivable, net | 5 | |||||
Inventory | 27 | |||||
Plants, properties and equipment | 290 | |||||
Goodwill | 220 | |||||
Other intangible assets | 110 | |||||
Other long-term assets | 3 | |||||
Total assets acquired | 671 | |||||
Accounts payable and accrued liabilities | 10 | |||||
Deferred income tax liability | 56 | |||||
Total liabilities assumed | 66 | |||||
Noncontrolling interest | 134 | |||||
Net assets acquired | $ | 471 | ||||
The identifiable intangible assets acquired in connection with the Orsa IP acquisition included the following: | ||||||
In millions | Estimated | Average | ||||
Fair Value | Remaining | |||||
Useful Life | ||||||
(at acquisition date) | ||||||
Asset Class: | ||||||
Customer relationships | $ | 88 | 12 years | |||
Trademark | 3 | 6 years | ||||
Wood supply agreement | 19 | 25 years | ||||
Total | $ | 110 | ||||
Pro forma information related to the acquisition of Orsa IP has not been included as it does not have a material effect on the Company's consolidated results of operations. | ||||||
Due to the complex organizational structure of Orsa IP's operations, and the extended time required to prepare consolidated financial information in accordance with accounting principles generally accepted in the United States, the Company reports its share of Orsa IP's operating results on a one-month lag basis. |
BUSINESSES_HELD_FOR_SALE_DIVES
BUSINESSES HELD FOR SALE, DIVESTITURES AND IMPAIRMENTS (Note) | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Businesses Held for Sale, Divestitures and Impairments [Note Text Block] | ' |
BUSINESSES HELD FOR SALE, DIVESTITURES AND IMPAIRMENTS | |
Discontinued Operations | |
On July 19, 2013, the Company finalized the sale of its Temple-Inland Building Products division, which included 15 manufacturing facilities, to Georgia-Pacific Building Products, LLC for approximately $733 million in cash, including preliminary customary closing adjustments. | |
On April 1, 2013, the Company finalized the sale of Temple-Inland's 50% interest in Del-Tin Fiber L.L.C. (Del-Tin) to joint venture partner Deltic Timber Corporation (Deltic) for $20 million in assumed liabilities and cash. Accordingly, the Del-Tin assets (which included a manufacturing facility) were excluded from the sale to Georgia-Pacific and the purchase price under our sale agreement with Georgia-Pacific was adjusted from $750 million to $710 million. | |
The operating results of the Temple-Inland Building Products business have been included in Discontinued operations from the date of acquisition. The assets of this business, totaling $759 million at December 31, 2012 are included in Assets of businesses held for sale in current assets in the accompanying consolidated balance sheet at December 31, 2012. Included in this amount is $26 million and $153 million related to goodwill and intangibles, respectively. The liabilities of this business, totaling $44 million at December 31, 2012 are included in Liabilities of businesses held for sale in the accompanying consolidated balance sheet at December 31, 2012. | |
Other Divestitures and Impairments | |
2012: During the three months ended September 30, 2012, the Company recorded a pre-tax charge of $19 million ($49 million after taxes) for additional costs associated with the divestiture of its Ontario and Oxnard (Hueneme), California containerboard mills and its New Johnsonville, Tennessee containerboard mill. Also during the three months ended September 30, 2012, a net gain of $1 million, before and after taxes, was recorded for other items. | |
As referenced in Note 7, on July 2, 2012, International Paper finalized the sales of its Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. A pre-tax charge of $9 million ($5 million after taxes) was recorded during the three months ended June 30, 2012 for costs associated with the divestiture of these three containerboard mills. Also, in anticipation of the divestiture of the Hueneme mill in Oxnard, California, a pre-tax charge of $62 million ($38 million after taxes) was recorded during the three months ended June 30, 2012 to adjust the long-lived assets of the mill to their fair value. | |
Also during the three months ended June 30, 2012, the Company recorded a pre-tax charge of $6 million ($4 million after taxes) to adjust the previously estimated loss on the sale of the Company's Shorewood business. | |
During the three months ended March 31, 2012, the Company recorded a pre-tax gain of $7 million ($6 million after taxes) to adjust the previously estimated loss on the sale of the Company’s Shorewood business. The sale of the Shorewood non-U.S. business was completed in January 2012. | |
All of the charges discussed above are included in Net (gains) losses on sales and impairments of businesses in the accompanying consolidated statement of operations. |
SUPPLEMENTAL_FINANCIAL_STATEME
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Supplemental Financial Statement Information [Abstract] | ' | |||||||||||||||
Supplemental Financial Statement Information [Note Text Block] | ' | |||||||||||||||
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | ||||||||||||||||
Temporary Investments | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Temporary investments | $ | 1,545 | $ | 934 | ||||||||||||
Accounts and Notes Receivable | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Accounts and notes receivable, net: | ||||||||||||||||
Trade | $ | 3,717 | $ | 3,316 | ||||||||||||
Other | 307 | 246 | ||||||||||||||
Total | $ | 4,024 | $ | 3,562 | ||||||||||||
Inventories | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Raw materials | $ | 410 | $ | 360 | ||||||||||||
Finished pulp, paper and packaging | 1,792 | 1,728 | ||||||||||||||
Operating supplies | 571 | 588 | ||||||||||||||
Other | 68 | 54 | ||||||||||||||
Total | $ | 2,841 | $ | 2,730 | ||||||||||||
Depreciation Expense | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Depreciation expense | $ | 365 | $ | 347 | $ | 1,081 | $ | 1,045 | ||||||||
Valuation Accounts | ||||||||||||||||
Certain valuation accounts were as follows: | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Accumulated depreciation | $ | 19,826 | $ | 18,934 | ||||||||||||
Allowance for doubtful accounts | 138 | 119 | ||||||||||||||
During the second quarter of 2013, a reserve of $28 million on $42 million of total receivables from a large envelope company was recorded due to their filing for bankruptcy protection in June 2013. The reserve is based on the Company's estimate of ultimate expected losses associated with the outstanding receivable balance. | ||||||||||||||||
There was no material activity related to asset retirement obligations during either of the nine months ended September 30, 2013 or 2012. | ||||||||||||||||
Interest | ||||||||||||||||
Cash payments related to interest were as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Interest payments | $ | 537 | $ | 496 | ||||||||||||
Amounts related to interest were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest expense (a) | $ | 162 | $ | 197 | $ | 520 | $ | 559 | ||||||||
Interest income (a) | 15 | 34 | 41 | 56 | ||||||||||||
Capitalized interest costs | 4 | 10 | 12 | 29 | ||||||||||||
(a) | Interest expense and interest income exclude approximately $11 million and $35 million for the three months and nine months ended September 30, 2013 and $15 million and $35 million for the three months and nine months ended September 30, 2012, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). | |||||||||||||||
Postretirement Benefit Expense | ||||||||||||||||
The components of the Company’s postretirement benefit expense were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||
Interest cost | 4 | 5 | 11 | 15 | ||||||||||||
Actuarial loss | 2 | 3 | 5 | 8 | ||||||||||||
Amortization of prior service credit | (6 | ) | (8 | ) | (18 | ) | (22 | ) | ||||||||
Net postretirement benefit expense | $ | — | $ | 1 | $ | (1 | ) | $ | 3 | |||||||
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Note) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill and Other Intangibles [Note Text Block] | ' | |||||||||||||||||||
GOODWILL AND OTHER INTANGIBLES | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The following table presents changes in goodwill balances as allocated to each business segment for the nine-month period ended September 30, 2013: | ||||||||||||||||||||
In millions | Industrial | Printing | Consumer | Distribution | Total | |||||||||||||||
Packaging | Papers | Packaging | ||||||||||||||||||
Balance as of January 1, 2013 | ||||||||||||||||||||
Goodwill | $ | 3,165 | $ | 2,396 | $ | 1,783 | $ | 400 | $ | 7,744 | ||||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||||
3,165 | 631 | 119 | 400 | 4,315 | ||||||||||||||||
Reclassifications and other (b) | (13 | ) | (49 | ) | 2 | — | (60 | ) | ||||||||||||
Additions/reductions | 253 | (c) | (17 | ) | (d) | — | — | 236 | ||||||||||||
Balance as of September 30, 2013 | ||||||||||||||||||||
Goodwill | 3,405 | 2,330 | 1,785 | 400 | 7,920 | |||||||||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||||
Total | $ | 3,405 | $ | 565 | $ | 121 | $ | 400 | $ | 4,491 | ||||||||||
(a) | Represents accumulated goodwill impairment charges since the adoption of ASC 350, “Intangibles – Goodwill and Other” in 2002. | |||||||||||||||||||
(b) | Represents the effects of foreign currency translations and reclassifications. | |||||||||||||||||||
(c) | Reflects $220 million for Orsa IP, the newly formed joint venture in Brazil, and the adjustment of $54 million ($33 million after-tax impact to goodwill) previously included as a trade name intangible asset in Deferred Charges and Other Assets on the balance sheet. | |||||||||||||||||||
(d) | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. | |||||||||||||||||||
Other Intangibles | ||||||||||||||||||||
Identifiable intangible assets comprised the following: | ||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||
In millions | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
Customer relationships and lists | $ | 634 | $ | 138 | $ | 644 | $ | 112 | ||||||||||||
Non-compete agreements | 76 | 41 | 83 | 30 | ||||||||||||||||
Tradenames, patents and trademarks | 77 | 18 | 144 | 16 | ||||||||||||||||
Land and water rights | 75 | 7 | 87 | 6 | ||||||||||||||||
Fuel and power agreements | 11 | 6 | 17 | 12 | ||||||||||||||||
Software | 24 | 22 | 22 | 19 | ||||||||||||||||
Other | 49 | 27 | 83 | 19 | ||||||||||||||||
Total | $ | 946 | $ | 259 | $ | 1,080 | $ | 214 | ||||||||||||
The Company recognized the following amounts as amortization expense related to intangible assets: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Amortization expense related to intangible assets | $ | 30 | $ | 28 | $ | 66 | $ | 43 | ||||||||||||
INCOME_TAXES_Note
INCOME TAXES (Note) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes [Note Text Block] | ' | |||||||
INCOME TAXES | ||||||||
International Paper made income tax payments, net of refunds, as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
In millions | 2013 | 2012 | ||||||
Income tax payments, net | $ | 224 | $ | 41 | ||||
The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the nine months ended September 30, 2013: | ||||||||
In millions | Unrecognized | Accrued Estimated | ||||||
Tax Benefits | Interest and Tax | |||||||
Penalties | ||||||||
Balance at December 31, 2012 | $ | (972 | ) | $ | (104 | ) | ||
Activity for three months ended March 31, 2013 | 99 | 20 | ||||||
Activity for the three months ended June 30, 2013 | 6 | 1 | ||||||
Activity for the three months ended September 30, 2013 | 29 | 13 | ||||||
Balance at September 30, 2013 | $ | (838 | ) | $ | (70 | ) | ||
The Company currently estimates that, as a result of ongoing discussions, pending tax settlements and expirations of statutes of limitations, the amount of unrecognized tax benefits could be reduced by approximately $720 million during the next 12 months and approximately $650 million of this reduction will positively impact the effective rate. | ||||||||
Included in the Company’s income tax provisions for the nine months ended September 30, 2013 and 2012, are $197 million and $81 million of income tax benefits, respectively, related to special items. The components of the net provision related to special items were as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
In millions | 2013 | 2012 | ||||||
Special items | $ | (77 | ) | $ | (87 | ) | ||
Tax-related adjustments: | ||||||||
Temple-Inland acquisition | — | 3 | ||||||
IRS audit settlement | (122 | ) | — | |||||
Mexican business restructuring | — | 3 | ||||||
Other | 2 | — | ||||||
Income tax provision (benefit) related to special items | $ | (197 | ) | $ | (81 | ) |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Note) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies [Note Text Block] | ' |
COMMITMENTS AND CONTINGENCIES | |
Environmental Proceedings | |
International Paper has been named as a potentially responsible party in environmental remediation actions under various federal and state laws, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources. While joint and several liability is authorized under CERCLA and equivalent state laws, as a practical matter, liability for CERCLA cleanups is typically allocated among the many potential responsible parties. Remedial costs are recorded in the consolidated financial statements when they become probable and reasonably estimable. International Paper has estimated the probable liability associated with these matters to be approximately $95 million in the aggregate. | |
Cass Lake: One of the matters referenced above is a closed wood treating facility located in Cass Lake, Minnesota. During 2009, in connection with an environmental site remediation action under CERCLA, International Paper submitted to the EPA a site remediation feasibility study. In June 2011, the EPA selected and published a proposed soil remedy at the site with an estimated cost of $46 million. The overall remediation reserve for the site is currently $52 million to address this selection of an alternative for the soil remediation component of the overall site remedy. In October 2011, the EPA released a public statement indicating that the final soil remedy decision would be delayed. In the unlikely event that the EPA changes its proposed soil remedy and approves instead a more expensive clean-up alternative, the remediation costs could be material, and significantly higher than amounts currently recorded. In October 2012, the Natural Resource Trustees for this site provided notice to International Paper and other potentially responsible parties of their intent to perform a Natural Resource Damage Assessment. It is premature to predict the outcome of the assessment or to estimate a loss or range of loss, if any, which may be incurred. | |
Other: In addition to the above matters, other remediation costs typically associated with the cleanup of hazardous substances at the Company’s current, closed or formerly-owned facilities, and recorded as liabilities on the balance sheet, totaled approximately $43 million at September 30, 2013. Other than as described above, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements. | |
Kalamazoo River: The Company is a potentially responsible party with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site (Kalamazoo River Superfund Site) in Michigan. The EPA asserts that the site is contaminated primarily by PCBs as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill formerly owned by St. Regis Paper Co. (St. Regis). The Company is a successor in interest to St. Regis. The Company has not received any orders from the EPA with respect to the site and continues to collect information from the EPA and other parties relative to the site to evaluate the extent of its liability, if any, with respect to the site. Accordingly, it is premature to estimate a loss or range of loss with respect to this site. | |
Also in connection with the Kalamazoo River Superfund Site, the Company was named as a defendant by Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC in a contribution and cost recovery action for alleged pollution at the site. The suit seeks contribution under CERCLA for $79 million in costs purportedly expended by plaintiffs as of the filing of the complaint and for future remediation costs. The suit alleges that a mill, during the time it was allegedly owned and operated by St. Regis, discharged PCB contaminated solids and paper residuals resulting from paper de-inking and recycling. Also named as defendants in the suit are NCR Corporation and Weyerhaeuser Company. In mid-2011, the suit was transferred from the District Court for the Eastern District of Wisconsin to the District Court for the Western District of Michigan. The trial of the initial liability phase took place in February 2013. Weyerhaeuser conceded prior to trial that it was a liable party with respect to the site. In September 2013, an opinion and order was issued in the suit. The order concluded that the Company (as the successor to St. Regis) was an "owner" of the mill at issue during a portion of the relevant period and is therefore liable under CERCLA. The order also determined that NCR is a liable party as an "arranger for disposal" of PCBs in waste paper that was de-inked and recycled by mills along the Kalamazoo River. The order did not address the Company's responsibility, if any, for costs for which plaintiffs in the suit are seeking recovery. This will be the subject of a separate trial. The Company thus believes it is premature to predict the outcome or to estimate a loss or range of loss, if any, which may be incurred. | |
Harris County: International Paper and McGinnis Industrial Maintenance Corporation, a subsidiary of Waste Management, Inc., are potentially responsible parties at the San Jacinto River Waste Pits Superfund Site (San Jacinto River Superfund Site) in Harris County, Texas, and have been actively participating in investigation and remediation activities at this Superfund site. In December 2011, Harris County, Texas filed a suit against the Company in Harris County District Court seeking civil penalties with regard to the alleged discharge of dioxin into the San Jacinto River since 1965 from waste impoundments that are part of the San Jacinto River Superfund Site. Also named as defendants in this action are McGinnis Industrial Maintenance Corporation, Waste Management, Inc. and Waste Management of Texas Inc. Harris County is seeking civil penalties pursuant to the Texas Water Code, which provides for the imposition of civil penalties between $50 and $25,000 per day. The case is in the discovery phase and it is therefore premature to predict the outcome or to estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable. | |
In October 2012, a civil lawsuit was filed against the same defendants, including the Company, in the District Court of Harris County by what are now 659 plaintiffs seeking medical monitoring and damages with regard to the alleged discharge of dioxin into the San Jacinto River since 1965 from waste impoundments that are a part of the San Jacinto Superfund Site. This case is in the discovery phase and it is therefore premature to predict the outcome or to estimate a loss or range of loss, if any, which may be incurred. In December 2012, residents of an up-river neighborhood filed a civil action against the same defendants, including the Company, in the District Court of Harris County alleging property damage and personal injury from the alleged discharge of dioxin into the San Jacinto River from the San Jacinto Superfund Site. This case is in the discovery phase and it is therefore premature to predict the outcome or to estimate a loss or range of loss, if any, which may be incurred. | |
Bogalusa: In August 2011, Temple-Inland's Bogalusa, Louisiana paper mill experienced an upset condition that resulted in a fish kill on the Pearl River (the Bogalusa Incident). Louisiana and Mississippi state regulatory agencies and the U.S. Department of Justice (the DOJ) initiated enforcement actions against Temple-Inland as a result of the Bogalusa Incident. We have resolved the Louisiana and Mississippi enforcement matters and paid approximately $3 million in penalties. | |
The DOJ investigation into the Bogalusa Incident was resolved in the second quarter of 2013 upon federal court approval of a criminal plea agreement between Temple-Inland subsidiary, TIN Inc., and the DOJ. Under the plea agreement, TIN pleaded guilty to two misdemeanor environmental offenses, paid a $3.3 million financial penalty, and agreed to a two-year corporate probation period. | |
The Bogalusa mill also expects the LDEQ to levy a civil penalty resulting from (i) alleged environmental violations identified in an LDEQ environmental audit conducted immediately after the Bogalusa Incident, and (ii) air permit deviations self-disclosed by the mill in 2012. | |
Temple-Inland (or its affiliates) was a defendant in 28 civil lawsuits in Louisiana and Mississippi related to the Bogalusa Incident. Fifteen of these civil cases were filed in Louisiana state court shortly after the incident and were removed and consolidated in an action then pending in the U.S. District Court for the Eastern District of Louisiana along with a civil case originally filed in that court. During August 2012, an additional 13 causes of action were filed in federal or state court in Mississippi and Louisiana. In October 2012, International Paper and the Plaintiffs' Steering Committee, the group of attorneys appointed by the Louisiana federal court to organize and coordinate the efforts of all the plaintiffs in this litigation, reached a tentative understanding on key structural terms and an amount for resolution of the litigation. The court granted preliminary approval for the proposed class action settlement on December 19, 2012. There were no opt-outs and four objections which were all later withdrawn. The Fairness Hearing was held July 10, 2013, and the court issued its Final Order and Judgment Approving Class Action Settlement the same day. Under the terms of the settlement agreement, the class action settlement was deemed final on August 9, 2013. We funded the settlement in September 2013. This settlement did not have a material effect on the Company's consolidated financial statements. | |
Legal Proceedings | |
Antitrust: In September 2010, eight containerboard producers, including International Paper and Temple-Inland, were named as defendants in a purported class action complaint that alleged a civil violation of Section 1 of the Sherman Act. The suit is captioned Kleen Products LLC v. Packaging Corp. of America (N.D. Ill.). The complaint alleges that the defendants, beginning in August 2005 through November 2010, conspired to limit the supply and thereby increase prices of containerboard products. The alleged class is all persons who purchased containerboard products directly from any defendant for use or delivery in the United States during the period August 2005 to the present. The complaint seeks to recover an unspecified amount of treble actual damages and attorney’s fees on behalf of the purported class. Four similar complaints were filed and have been consolidated in the Northern District of Illinois. Moreover, in January 2011, International Paper was named as a defendant in a lawsuit filed in state court in Cocke County, Tennessee alleging that International Paper violated Tennessee law by conspiring to limit the supply and fix the prices of containerboard from mid-2005 to the present. Plaintiffs in the state court action seek certification of a class of Tennessee indirect purchasers of containerboard products, damages and costs, including attorneys’ fees. The Company disputes the allegations made and intends to vigorously defend each action. However, because the Kleen Products case is in the discovery phase and the Tennessee action is in the preliminary stages, we are unable to predict an outcome or estimate a range of reasonably possible loss. | |
In late December 2012, purchasers of gypsum board filed purported class action complaints alleging civil violations of Section 1 of the Sherman Act against Temple-Inland and a number of other gypsum manufacturers in three separate actions. Two of the actions were filed in the U.S. District Court for the Eastern District of Pennsylvania (E.D. PA) and one in the U.S. District Court for the Northern District of Illinois (N.D. IL). The case in the N.D. IL was voluntarily dismissed in December. Since that time, approximately 25 additional actions were collectively filed between the E.D. PA and the N.D. IL and the U.S. District Court for the Western District of North Carolina (W.D. NC), on behalf of direct and indirect purchasers. The complaints are similar and allege that the gypsum manufacturers conspired or otherwise reached agreements to: (1) raise prices of gypsum board either from 2008 or 2011 through the present; (2) avoid price erosion by ceasing the practice of issuing job quotes; and (3) restrict supply through downtime and limit order fulfillment. The alleged classes are all persons who purchased gypsum board and/or gypsum finishing products directly or indirectly from any defendant and the conspiracy is alleged to have commenced on or before either September 2011 or January 2008. The complainants seek to recover unspecified treble actual damages and attorneys' fees on behalf of the purported classes. On April 8, 2013, the Judicial Panel on Multidistrict Litigation ordered transfer of all pending cases to E.D. PA for coordinated and consolidated pretrial proceedings, and the direct purchaser plaintiffs and indirect purchaser plaintiffs filed their respective amended consolidated complaints in June 2013. The amended consolidated complaints allege a conspiracy or agreement beginning in or before September 2011. The Company disputes the allegations made and intends to vigorously defend the consolidated action. In addition, in September 2013, purported class actions were filed in courts in Quebec, Canada and Ontario, Canada, with each suit alleging violations of the Canadian Competition Act and seeking damages and injunctive relief. The Company has not yet filed an answer in either case, but intends to dispute the allegations made and to vigorously defend the litigation. Because the U.S. cases are in the discovery phase and the Canadian cases are in a preliminary stage, we are unable to predict an outcome or estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable. | |
Guaranty Bank: As we have previously disclosed, Temple-Inland was named as a defendant in a lawsuit captioned North Port Firefighters’ Pension v. Temple-Inland Inc., filed in November 2011 in the United States District Court for the Northern District of Texas and subsequently amended. The lawsuit alleges a class action against Temple-Inland and certain individual defendants contending that Temple-Inland and certain individual defendants misrepresented the financial condition of Guaranty Financial Group during the period December 12, 2007 through August 24, 2009. On June 20, 2012, all defendants in the lawsuit filed motions to dismiss the amended complaint. On March 28, 2013, the district court granted Temple-Inland's and the individual defendants' motions to dismiss without prejudice. On April 26, 2013, the plaintiff filed a Second Amended Complaint that asserted claims against the individual defendants, but did not assert any claims against Temple-Inland. On July 30, 2013, the district court dismissed the Second Amended Complaint filed against the individual defendants with prejudice, also noting that since the plaintiff did not seek the court's leave to amend its complaint with respect to the claims against Temple-Inland, all claims against Temple-Inland were dismissed with prejudice. On August 27, 2013, the plaintiff filed a notice of appeal of the district court's ruling. | |
Certain of the individual defendants in the North Port litigation have requested advancement of their costs of defense from Temple-Inland and have asserted a right to indemnification by Temple-Inland. We believe that all or part of these defense costs would be covered losses under Temple-Inland’s directors and officers insurance. The carriers under the applicable policies have been notified of the claims and each has responded with a reservation of rights letter. | |
Tax: The Company is currently being challenged by Brazilian tax authorities concerning the statute of limitations related to the use of certain tax credits. The Company is appealing an unfavorable March 2012 administrative court ruling. The potential loss to the Company in the event of a final unfavorable outcome is approximately $29 million. | |
General: The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, labor and employment, personal injury, property damage, contracts, sales of property, and other matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of the lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. |
VARIABLE_INTEREST_ENTITIES_AND
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Variable Interest Entities And Preferred Securities Of Subsidiaries [Abstract] | ' | |||||||||||||||
Variable Interest Entities and Preferred Securities of Subsidiaries [Note Text Block] | ' | |||||||||||||||
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES | ||||||||||||||||
Variable Interest Entities | ||||||||||||||||
In connection with the 2006 sale of approximately 5.6 million acres of forestlands, International Paper received installment notes (the Timber Notes) totaling approximately $4.8 billion. The Timber Notes, which do not require principal payments prior to their August 2016 maturity, are supported by irrevocable letters of credit obtained by the buyers of the forestlands. | ||||||||||||||||
During 2006, International Paper contributed the Timber Notes to newly formed entities (the Borrower Entities) in exchange for Class A and Class B interests in these entities. Subsequently, International Paper contributed its $200 million Class A interests in the Borrower Entities, along with approximately $400 million of International Paper promissory notes, to other newly formed entities (the Investor Entities, and together with the Borrower Entities, the Entities) in exchange for Class A and Class B interests in these entities, and simultaneously sold its Class A interest in the Investor Entities to a third party investor. As a result, at December 31, 2006, International Paper held Class B interests in the Borrower Entities and Class B interests in the Investor Entities valued at approximately $5.0 billion. International Paper did not provide any financial support that was not previously contractually required for the nine months ended September 30, 2013 and the year ended December 31, 2012. | ||||||||||||||||
Following the 2006 sale of forestlands and creation of the Entities discussed above, the Timber Notes were used as collateral for borrowings from third party lenders, which effectively monetized the Timber Notes. Provisions of certain loan agreements require any bank issuing letters of credit supporting the Timber Notes to maintain a credit rating at or above a specified threshold. In the event the credit rating of a letter of credit bank is downgraded below the specified threshold, the letters of credit must be replaced within 60 days with letters of credit from a qualifying financial institution or for one of the letter of credit banks, collateral must be posted. The Company, retained to provide management services for the third-party entities that hold the Timber Notes, has, as required by the loan agreements, successfully replaced banks that fell below the specified threshold. | ||||||||||||||||
Also during 2006, the Entities acquired approximately $4.8 billion of International Paper debt obligations for cash, resulting in a total of approximately $5.2 billion of International Paper debt obligations held by the Entities at December 31, 2006. The various agreements entered into in connection with these transactions provide that International Paper has, and intends to affect, a legal right to offset its obligation under these debt instruments with its investments in the Entities. Accordingly, for financial reporting purposes, International Paper has offset approximately $5.2 billion of Class B interests in the Entities against $5.3 billion of International Paper debt obligations held by these Entities at September 30, 2013 and December 31, 2012. Despite the offset treatment, these remain debt obligations of International Paper. Remaining borrowings of $76 million and $79 million at September 30, 2013 and December 31, 2012, respectively, are included in Long-term debt in the accompanying consolidated balance sheet. Additional debt related to the above transaction of $79 million is included in Notes payable and current maturities of long-term debt at September 30, 2013 and December 31, 2012. | ||||||||||||||||
On October 7, 2011, Moody’s Investor Services reduced its credit rating of senior unsecured long-term debt of the Royal Bank of Scotland Group Plc, which issued letters of credit that support $1.6 billion of Timber Notes, below the specified threshold. On November 22, 2011, letters of credit worth $707 million were replaced by another qualifying institution. The Company and the third party managing member agreed to extend the 60 day deadline, and then, on February 10, 2012, letters of credit worth $135 million were replaced by another qualifying institution. Fees of $5 million were incurred in connection with these replacements. The Company and the third party managing member instituted a replacement waiver for the remaining $797 million, and then on July 25, 2012, these letters of credit were successfully replaced by another qualifying institution. In the event the credit rating of the letter of credit bank is downgraded below a specified threshold, the new bank is required to provide credit support for its obligation. Fees of $5 million were incurred in connection with this replacement. | ||||||||||||||||
On January 23, 2012, Standard and Poor's reduced its credit rating of senior unsecured long-term debt of Société Générale SA, which issued letters of credit that support $666 million of the Timber Notes, below the specified threshold. The letters of credit were successfully replaced by another qualifying institution. Fees of $5 million were incurred in connection with this replacement. | ||||||||||||||||
On June 21, 2012, Moody's Investor Services reduced its credit rating of senior unsecured long-term debt of BNP Paribas, which issued letters of credit that support $707 million of Timber Notes, below the specified threshold. On December 19, 2012, the Company and the third-party managing member agreed to a continuing replacement waiver for these letters of credit, terminable upon 30 days notice. | ||||||||||||||||
Activity between the Company and the Entities was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue (a) | $ | 11 | $ | 15 | $ | 35 | $ | 35 | ||||||||
Expense (a) | 20 | 28 | 61 | 68 | ||||||||||||
Cash receipts (b) | 14 | 21 | 33 | 36 | ||||||||||||
Cash payments (c) | 39 | 47 | 84 | 87 | ||||||||||||
(a) | The net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to affect its legal right to offset as discussed above. | |||||||||||||||
(b) | The cash receipts are equity distributions from the Entities to International Paper. | |||||||||||||||
(c) | The semi-annual payments are related to interest on the associated debt obligations discussed above. | |||||||||||||||
Based on an analysis of the Entities discussed above under guidance that considers the potential magnitude of the variability in the structures and which party has a controlling financial interest, International Paper determined that it is not the primary beneficiary of the Entities, and therefore, does not consolidate its investments in these entities. It was also determined that the source of variability in the structures is the value of the Timber Notes, the assets most significantly impacting the structure’s economic performance. The credit quality of the Timber Notes is supported by irrevocable letters of credit obtained by third party buyers which are 100% cash collateralized. International Paper analyzed which party has control over the economic performance of each entity, and concluded International Paper does not have control over significant decisions surrounding the Timber Notes and letters of credit and therefore is not the primary beneficiary. The Company’s maximum exposure to loss equals the value of the Timber Notes; however, an analysis performed by the Company concluded the likelihood of this exposure is remote. | ||||||||||||||||
International Paper also held a variable interest in financing entities that were used to monetize long-term notes received from the sale of forestlands in 2002. International Paper transferred notes (the Monetized Notes, with an original maturity of 10 years from inception) and cash having a value of approximately $500 million to the entities in exchange for preferred interests, and accounted for the transfers as a sale of the notes with no associated gain or loss. In the same period, the entities acquired approximately $500 million of International Paper debt obligations for cash. International Paper has no obligation to make any further capital contributions to these entities and did not provide any financial support that was not previously contractually required during the nine months ended September 30, 2013 and the year ended December 31, 2012. | ||||||||||||||||
During 2011 and the six months ended June 30, 2012, the 2002 Monetized Notes matured. Cash receipts upon maturity were used to pay the associated debt obligations. Effective June 1, 2012, International Paper liquidated its interest in the 2002 financing entities. | ||||||||||||||||
The use of the above entities facilitated the monetization of the credit enhanced Timber and Monetized Notes in a cost effective manner by increasing the borrowing capacity and lowering the interest rate while continuing to preserve the tax deferral that resulted from the forestlands installment sales and the offset accounting treatment described above. | ||||||||||||||||
In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper. | ||||||||||||||||
In October 2007, Temple-Inland sold 1.55 million acres of timberland for $2.38 billion. The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberland, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities. The notes are shown in Financial assets of special purpose entities in the accompanying consolidated balance sheet and are supported by $2.38 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt. In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the notes and determined it to be$2.09 billion. As of September 30, 2013, the fair value of the notes was $2.51 billion. | ||||||||||||||||
In December 2007, Temple-Inland’s two wholly-owned special purpose entities borrowed $2.14 billion shown in Nonrecourse financial liabilities of special purpose entities. The loans are repayable in 2027 and are secured only by the $2.38 billion of notes and the irrevocable letters of credit securing the notes and are nonrecourse to us. The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of credit from another qualifying financial institution. In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the borrowings and determined it to be $2.03 billion. As of September 30, 2013, the fair value of this debt was $2.39 billion. | ||||||||||||||||
On January 23, 2012, Standard and Poor's reduced its credit rating of senior unsecured long-term debt of Société Générale SA, which issued letters of credit that support $506 million of the 2007 Monetized Notes, below the specific threshold. These letters of credit were successfully replaced by another qualifying institution. Fees of $2 million were incurred in connection with this replacement. | ||||||||||||||||
On June 21, 2012, Moody's Investor Services reduced its credit rating of senior unsecured long-term debt of Barclays Bank PLC, which issued letters of credit that support approximately $500 million of the 2007 Monetized Notes, below the specified threshold. These letters of credit were successfully replaced by another qualifying institution. Fees of $6 million were incurred in connection with this replacement. | ||||||||||||||||
Activity between the Company and the 2007 financing entities was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue (a) | $ | 6 | $ | 15 | $ | 20 | $ | 21 | ||||||||
Expense (b) | 7 | 11 | 22 | 20 | ||||||||||||
Cash receipts (c) | 2 | 3 | 6 | 10 | ||||||||||||
Cash payments (d) | 5 | 6 | 16 | 16 | ||||||||||||
(a) | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended September 30, 2013, respectively, and $12 million for the three months and nine months ended September 30, 2012, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. | |||||||||||||||
(b) | The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended September 30, 2013, respectively, and $5 million for the three months and nine months ended September 30, 2012, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | |||||||||||||||
(c) | The cash receipts are interest received on the Financial assets of special purpose entities. | |||||||||||||||
(d) | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. | |||||||||||||||
Preferred Securities of Subsidiaries | ||||||||||||||||
In March 2003, Southeast Timber, Inc. (Southeast Timber), a consolidated subsidiary of International Paper, issued $150 million of preferred securities to a private investor with future dividend payments based on LIBOR. Southeast Timber, which through a subsidiary initially held approximately 1.5 million acres of forestlands in the southern United States, was International Paper’s primary vehicle for sales of southern forestlands. As of September 30, 2013, substantially all of these forestlands have been sold. On March 27, 2013, Southeast Timber redeemed its Class A common shares owned by the private investor for $150 million. As a result, Noncontrolling interests decreased by $150 million in the accompanying consolidated balance sheet. Distributions paid to the third-party investor were $1 million and $4 million for the nine months ended September 30, 2013 and 2012, respectively. The expense related to these preferred securities is shown in Net earnings (loss) attributable to noncontrolling interests in the accompanying consolidated statement of operations. |
DEBT_Note
DEBT (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Debt [Note Text Block] | ' | |||||||||||||||
DEBT | ||||||||||||||||
Amounts related to early debt extinguishment during the three months and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Early debt reductions (a) | $ | 442 | $ | 611 | $ | 500 | $ | 1,047 | ||||||||
Pre-tax early debt extinguishment costs (b) | 15 | 13 | 24 | 39 | ||||||||||||
(a) | Reductions related to notes with interest rates ranging from 5.45% to 7.40% with original maturities from 2014 to 2033 and from 1.63% to 6.95% with original maturities from 2017 to 2023 for the three months ended September 30, 2013 and 2012, respectively, and 5.20% to 7.95% with original maturities from 2014 to 2033 and from 1.63% to 7.95% with original maturities from 2012 to 2023 for the nine months ended September 30, 2013 and September 30, 2012, respectively. | |||||||||||||||
(b) | Amounts are included in Restructuring and Other Charges in the accompanying consolidated statements of operations. | |||||||||||||||
In February 2012, International Paper borrowed $1.2 billion under a term loan with an initial interest rate of LIBOR plus a margin of 138 basis points that varied depending on the credit rating of the Company and entered into a $200 million term loan with an interest rate of LIBOR plus a margin of 175 basis points, both with maturity dates in 2017. The proceeds from these borrowings were used, along with available cash, to fund the acquisition of Temple-Inland. During 2012, International Paper fully repaid the $1.2 billion term loan. | ||||||||||||||||
In June 2012, International Paper borrowed $225 million under the receivable securitization facility acquired from Temple-Inland with an interest rate of 0.224% plus a margin of 70 basis points. The borrowings under this receivable securitization facility were repaid in July 2012. | ||||||||||||||||
Subsequent to September 30, 2013, International Paper executed call notices on approximately $70 million of industrial development bonds with interest rates from 4.55% to 6.75% and original maturities from 2015 to 2031, which are expected to settle during the fourth quarter of 2013. | ||||||||||||||||
At September 30, 2013, the fair value of International Paper’s $9.7 billion of debt was approximately $11.0 billion. The fair value of the Company’s long-term debt is estimated based on the quoted market prices for the same or similar issues. International Paper’s long-term debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 12 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||
Maintaining an investment-grade credit rating is an important element of International Paper’s financing strategy. At September 30, 2013, the Company held long-term credit ratings of BBB (stable outlook) and Baa3 (stable outlook) by S&P and Moody’s, respectively. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES (Note) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivatives and Hedging Activities [Note Text Block] | ' | |||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | ||||||||||||||||||
As a multinational company we are exposed to market risks, such as changes in interest rates, currency exchanges rates and commodity prices. | ||||||||||||||||||
For detailed information regarding the Company’s hedging activities and related accounting, refer to Note 13 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | ||||||||||||||||||
The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: | ||||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) | ||||||||||||||||||
Brazilian real / U.S. dollar - Forward | 543 | — | ||||||||||||||||
British pounds / Brazilian real – Forward | 16 | 13 | ||||||||||||||||
European euro / Brazilian real – Forward | 21 | 13 | ||||||||||||||||
European euro / Polish zloty – Forward | 263 | 149 | ||||||||||||||||
U.S. dollar / Brazilian real – Forward | 335 | 238 | ||||||||||||||||
U.S. dollar / Brazilian real – Zero-cost collar | 18 | 18 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Embedded derivative (in USD) | — | 150 | ||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) | ||||||||||||||||||
Indian rupee / U.S. dollar | 157 | 140 | ||||||||||||||||
Thai baht / U.S. dollar | 36 | 261 | ||||||||||||||||
U.S. dollar / Turkish lira | — | 56 | ||||||||||||||||
Interest rate contracts (in USD) | — | 150 | (c) | |||||||||||||||
(a) | These contracts had maturities of three years or less as of September 30, 2013. | |||||||||||||||||
(b) | These contracts had maturities of one year or less as of September 30, 2013. | |||||||||||||||||
(c) | Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative. | |||||||||||||||||
The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: | ||||||||||||||||||
Gain (Loss) | ||||||||||||||||||
Recognized in | ||||||||||||||||||
AOCI | ||||||||||||||||||
on Derivatives | ||||||||||||||||||
(Effective Portion) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign exchange contracts | $ | 7 | $ | 7 | $ | (3 | ) | $ | 14 | |||||||||
Natural gas contracts | — | — | — | (1 | ) | |||||||||||||
Total | $ | 7 | $ | 7 | $ | (3 | ) | $ | 13 | |||||||||
During the next 12 months, the amount of the September 30, 2013 AOCI balance, after tax, that is expected to be reclassified to earnings is a loss of $2 million. | ||||||||||||||||||
The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: | ||||||||||||||||||
Gain (Loss) | Location of Gain (Loss) | |||||||||||||||||
Reclassified from | Reclassified from AOCI | |||||||||||||||||
AOCI | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Foreign exchange contracts | $ | (4 | ) | $ | (4 | ) | $ | 5 | $ | (10 | ) | Cost of products sold | ||||||
Natural gas contracts | — | — | — | (7 | ) | Cost of products sold | ||||||||||||
Total | $ | (4 | ) | $ | (4 | ) | $ | 5 | $ | (17 | ) | |||||||
Gain (Loss) Recognized | Location of Gain (Loss) | |||||||||||||||||
In Consolidated | ||||||||||||||||||
Statement | ||||||||||||||||||
of Operations | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Electricity contact | $ | — | $ | 1 | $ | 2 | $ | (2 | ) | Cost of products sold | ||||||||
Embedded Derivatives | — | (1 | ) | (1 | ) | (3 | ) | Interest expense, net | ||||||||||
Foreign exchange contracts | — | — | (5 | ) | (1 | ) | Cost of products sold | |||||||||||
Interest rate contracts | 7 | 5 | 17 | 17 | Interest expense, net | |||||||||||||
Total | $ | 7 | $ | 5 | $ | 13 | $ | 11 | ||||||||||
Fair Value Measurements | ||||||||||||||||||
For a discussion of the Company’s fair value measurement policies under the fair value hierarchy, refer to Note 13 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | ||||||||||||||||||
The Company has not changed its valuation techniques for measuring the fair value of any financial assets or liabilities during the year. Transfers between levels, if any, are recognized at the end of the reporting period. | ||||||||||||||||||
The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet: | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Level 2 – Significant Other Observable Inputs | ||||||||||||||||||
Assets | Liabilities | |||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||
Foreign exchange contracts – cash flow | $ | 22 | (a) | $ | 7 | (c) | $ | 28 | (e) | $ | 21 | (f) | ||||||
Total derivatives designated as hedging instruments | $ | 22 | $ | 7 | $ | 28 | $ | 21 | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Electricity contract | $ | 1 | (b) | $ | — | $ | — | $ | 1 | (g) | ||||||||
Embedded derivatives | — | 1 | (d) | — | — | |||||||||||||
Foreign exchange contracts | — | 1 | (d) | — | — | |||||||||||||
Interest rate contracts | — | — | — | 1 | (g) | |||||||||||||
Total derivatives not designated as hedging instruments | $ | 1 | $ | 2 | $ | — | $ | 2 | ||||||||||
Total derivatives | $ | 23 | $ | 9 | $ | 28 | $ | 23 | ||||||||||
(a) | Includes $11 million recorded in Other current assets and $11 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(b) | Included in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(c) | Includes $3 million recorded in Other current assets and $4 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(d) | Included in Other current assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(e) | Includes $17 million recorded in Other accrued liabilities and $11 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||||||||||||||||
(f) | Includes $20 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||||||||||||||||
(g) | Included in Other accrued liabilities in the accompanying consolidated balance sheet. | |||||||||||||||||
The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the consolidated balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties. | ||||||||||||||||||
Credit-Risk-Related Contingent Features | ||||||||||||||||||
Certain of the Company’s financial instruments used in hedging transactions are governed by standard credit support arrangements with counterparties. If the lower of the Company’s credit rating by Moody’s or S&P were to drop below investment grade, the Company would be required to post collateral for all of its derivatives in a net liability position, although no derivatives would terminate. The fair values of derivative instruments containing credit risk-related contingent features in a net liability position were $2 million and $18 million as of September 30, 2013 and December 31, 2012, respectively. The Company was not required to post any collateral as of September 30, 2013 or December 31, 2012. For more information on credit-risk-related contingent features, refer to Note 13 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. |
RETIREMENT_PLANS_Note
RETIREMENT PLANS (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Retirement Plans [Note Text Block] | ' | |||||||||||||||
RETIREMENT PLANS | ||||||||||||||||
International Paper sponsors and maintains the Retirement Plan of International Paper Company (the “Pension Plan”), a tax-qualified defined benefit pension plan that provides retirement benefits to substantially all U.S. salaried employees and hourly employees (receiving salaried benefits) hired prior to July 1, 2004, and substantially all other U.S. hourly and union employees who work at a participating business unit regardless of hire date. These employees generally are eligible to participate in the Pension Plan upon attaining 21 years of age and completing one year of eligibility service. U.S. salaried employees and hourly employees (receiving salaried benefits) hired after June 30, 2004, are not eligible for the Pension Plan, but receive a company contribution to their individual savings plan accounts. | ||||||||||||||||
The Pension Plan provides defined pension benefits based on years of credited service and either final average earnings (salaried employees and hourly employees receiving salaried benefits), hourly job rates or specified benefit rates (hourly and union employees). A detailed discussion of these plans is presented in Note 15 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | ||||||||||||||||
In connection with the Temple-Inland acquisition in February 2012, International Paper assumed administrative responsibility for the Temple-Inland Retirement Plan, a defined benefit plan which covers substantially all employees of Temple-Inland. As a result of the sale of the Temple-Inland Building Products division as discussed in Note 8, the Company was required to remeasure the projected benefit obligation of the Temple-Inland defined benefit pension and postretirement plans. The remeasurement resulted in a reduction of the projected benefit obligation of approximately $168 million ($103 million net of tax) principally due to an increase in the assumed discount rate. | ||||||||||||||||
Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 47 | $ | 38 | $ | 142 | $ | 113 | ||||||||
Interest cost | 143 | 154 | 430 | 452 | ||||||||||||
Expected return on plan assets | (186 | ) | (190 | ) | (550 | ) | (563 | ) | ||||||||
Actuarial loss | 121 | 76 | 365 | 230 | ||||||||||||
Amortization of prior service cost | 9 | 8 | 26 | 24 | ||||||||||||
Net periodic pension expense | $ | 134 | $ | 86 | $ | 413 | $ | 256 | ||||||||
The Company’s funding policy for our pension plans is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plan, tax deductibility, the cash flows generated by the Company, and other factors. The Company made a cash contribution of $31 million to the Pension Plan in the second quarter of 2013. The Company continually reassesses the amount and timing of any discretionary contributions and could elect to make an additional contribution in 2013. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $15 million for the nine months ended September 30, 2013. |
STOCKBASED_COMPENSATION_Note
STOCK-BASED COMPENSATION (Note) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-based Compensation [Note Text Block] | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
International Paper has an Incentive Compensation Plan (ICP) which is administered by the Management Development and Compensation Committee of the Board of Directors (the Committee). The ICP authorizes the grants of restricted stock, restricted or deferred stock units, performance awards payable in cash or stock upon the attainment of specified performance goals, dividend equivalents, stock options, stock appreciation rights, other stock-based awards and cash-based awards in the discretion of the Committee. A detailed discussion of the ICP, including the stock option program and executive continuity award program that provided for tandem grants of restricted stock and stock options, is presented in Note 17 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. As of September 30, 2013, 17.7 million shares were available for grant under the ICP. | ||||||||||||||||
Stock-based compensation expense and related income tax benefits were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Total stock-based compensation expense (selling and administrative) | $ | 35 | $ | 26 | $ | 106 | $ | 70 | ||||||||
Income tax benefits related to stock-based compensation | 3 | — | 70 | 40 | ||||||||||||
At September 30, 2013, $143 million, net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years. | ||||||||||||||||
Performance Share Plan | ||||||||||||||||
Under the Performance Share Plan (PSP), awards are granted by the Committee to approximately 1,300 employees. Awards are earned based on the Company’s performance achievement in relative return on investment (ROI) and total shareholder return (TSR) compared to peer groups. Awards are weighted 75% for ROI and 25% for TSR for all participants except for officers for whom awards are weighted 50% for ROI and 50% for TSR. The ROI component of the PSP awards is valued at the closing stock price on the day prior to the grant date. As the ROI component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest. The TSR component of the PSP awards is valued using a Monte Carlo simulation as the TSR component contains a market condition. The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, the risk-free rate, expected dividends, and the expected volatility for the Company and its competitors. The expected term was estimated based on the vesting period of the awards, the risk-free rate was based on the yield on U.S. Treasury securities matching the vesting period and the volatility was based on the Company’s historical volatility over the expected term. | ||||||||||||||||
Beginning with the 2011 PSP, grants will be made in performance-based restricted stock units (PSU’s). The PSP will continue to be paid in unrestricted shares of Company stock. | ||||||||||||||||
PSP awards issued to certain members of senior management are liability awards, which are required to be remeasured at fair value at each balance sheet date. The valuation of these PSP liability awards is computed based on the same methodology as other PSP awards. | ||||||||||||||||
The following table sets forth the assumptions used to determine compensation cost for the market condition component of the PSP plan: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 25.25 % - 62.58% | 28.39% - 55.33% | 25.25% - 62.58% | 28.39% - 55.33% | ||||||||||||
Risk-free interest rate | 0.20% - 0.99% | 0.12% - 0.42% | 0.20% - 0.99% | 0.12% - 0.42% | ||||||||||||
The following summarizes the activity for PSP for the nine months ended September 30, 2013: | ||||||||||||||||
Nonvested | Weighted Average | |||||||||||||||
Shares / Units | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Outstanding at December 31, 2012 | 8,660,855 | $ | 28.37 | |||||||||||||
Granted | 3,148,445 | 40.76 | ||||||||||||||
Shares Issued (a) | (3,222,492 | ) | 32.48 | |||||||||||||
Forfeited | (348,754 | ) | 35.06 | |||||||||||||
Outstanding at September 30, 2013 | 8,238,054 | $ | 31.22 | |||||||||||||
(a) Includes 316,274 units held for payout at the end of the performance period. | ||||||||||||||||
Stock Option Program | ||||||||||||||||
The Company discontinued its stock option program in 2004 for members of executive management, and in 2005 for all other eligible U.S. and non-U.S. employees. Shares granted in 2013 represent replacement options from a stock swap. | ||||||||||||||||
A summary of option activity under the plan as of September 30, 2013 is presented below: | ||||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining Life | Value | ||||||||||||||
(years) | (thousands) | |||||||||||||||
Outstanding at December 31, 2012 | 9,136,060 | $ | 38.79 | |||||||||||||
Granted | 4,744 | 48.11 | ||||||||||||||
Exercised | (7,067,850 | ) | 38.54 | |||||||||||||
Expired | (49,637 | ) | 35.99 | |||||||||||||
Outstanding at September 30, 2013 | 2,023,317 | $ | 39.74 | 0.85 | $ | 10,245 | ||||||||||
All options were fully vested and exercisable as of September 30, 2013. | ||||||||||||||||
Executive Continuity and Restricted Stock Award Program | ||||||||||||||||
The following summarizes the activity of the Executive Continuity and Restricted Stock Award Program for the nine months ended September 30, 2013: | ||||||||||||||||
Nonvested | Weighted Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Outstanding at December 31, 2012 | 151,549 | $ | 30.49 | |||||||||||||
Granted | 63,500 | 44.4 | ||||||||||||||
Shares Issued | (81,941 | ) | 33.04 | |||||||||||||
Forfeited | (17,500 | ) | 37.75 | |||||||||||||
Outstanding at September 30, 2013 | 115,608 | $ | 35.22 | |||||||||||||
INDUSTRY_SEGMENT_INFORMATION_N
INDUSTRY SEGMENT INFORMATION (Note) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Industry Segment Information [Note Text Block] | ' | ||||||||||||||||
INDUSTRY SEGMENT INFORMATION | |||||||||||||||||
International Paper’s industry segments, Industrial Packaging, Printing Papers, Consumer Packaging and Distribution, are consistent with the internal structure used to manage these businesses. All segments are differentiated on a common product, common customer basis consistent with the business segmentation generally used in the Forest Products industry. | |||||||||||||||||
The Company also has a 50% equity interest in Ilim in Russia that is a separate reportable industry segment. | |||||||||||||||||
Sales by industry segment for the three months and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Industrial Packaging | $ | 3,755 | $ | 3,335 | $ | 11,095 | $ | 9,900 | |||||||||
Printing Papers | 1,555 | 1,580 | 4,635 | 4,650 | |||||||||||||
Consumer Packaging | 885 | 765 | 2,570 | 2,355 | |||||||||||||
Distribution | 1,445 | 1,535 | 4,235 | 4,510 | |||||||||||||
Corporate and Intersegment Sales | (234 | ) | (189 | ) | (704 | ) | (657 | ) | |||||||||
Net Sales | $ | 7,406 | $ | 7,026 | $ | 21,831 | $ | 20,758 | |||||||||
Operating profit by industry segment for the three months and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Industrial Packaging | $ | 499 | (a) | $ | 255 | (e) | 1,328 | (a) | $ | 730 | (e) | ||||||
Printing Papers | 93 | (b) | 202 | (f) | 318 | (b) | 452 | (f) | |||||||||
Consumer Packaging | 73 | (c) | 67 | (g) | 131 | (c) | 227 | (g) | |||||||||
Distribution | 13 | (d) | 15 | (h) | 8 | (d) | 18 | (h) | |||||||||
Operating Profit | 678 | 539 | $ | 1,785 | 1,427 | ||||||||||||
Interest expense, net | (147 | ) | (163 | ) | (479 | ) | (i) | (503 | ) | ||||||||
Noncontrolling interests/equity earnings adjustment (j) | (3 | ) | — | 1 | 8 | ||||||||||||
Corporate items, net | (13 | ) | (1 | ) | (35 | ) | (36 | ) | |||||||||
Restructuring and other charges | (26 | ) | (15 | ) | (23 | ) | (40 | ) | |||||||||
Non-operating pension expense | (78 | ) | (40 | ) | (245 | ) | (119 | ) | |||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ | 411 | $ | 320 | $ | 1,004 | $ | 737 | |||||||||
Equity earnings (loss), net of taxes – Ilim | $ | 11 | $ | 33 | $ | (34 | ) | $ | 48 | ||||||||
(a) | Includes charges of $24 million for the three months ended September 30, 2013 and $50 million for the nine months ended September 30, 2013 for integration costs associated with the acquisition of Temple-Inland, a gain of $14 million for the nine months ended September 30, 2013 for a bargain purchase adjustment on the first quarter 2013 acquisition of a majority share of our operations in Turkey, a gain of $9 million for the three months and nine months ended September 30, 2013 related to the sale of the box plant facility in Bellevue, Washington, and charges of $3 million for the three months ended September 30, 2013 and $8 million for the nine months ended September 30, 2013 for other items. | ||||||||||||||||
(b) | Includes charges of $51 million for the three months and nine months ended September 30, 2013 for costs associated with the announced shutdown of our Courtland, Alabama mill. | ||||||||||||||||
(c) | Includes charges of $45 million for the nine months ended September 30, 2013 for costs associated with the permanent shutdown of a paper machine at our Augusta, Georgia mill. | ||||||||||||||||
(d) | Includes charges of $6 million for the three months ended September 30, 2013 and $30 million for the nine months ended September 30, 2013 for costs associated with the restructuring of the Company's xpedx operations. | ||||||||||||||||
(e) | Includes charges of $58 million and $136 million for the three months and nine months ended September 30, 2012 for integration costs associated with the Temple-Inland acquisition, charges of $19 million and $28 million for the three months and nine months ended September 30, 2012 for costs associated with the divestiture of three containerboard mills, charges of $16 million for the three months and nine months ended September 30, 2012 for costs associated with the restructuring of our Packaging business in Europe, a charge of $62 million for the nine months ended September 30, 2012 to adjust the value of the long-lived assets of the Hueneme mill in Oxnard, California to their fair value, a charge of $20 million for the nine months ended September 30, 2012 related to the write-up of the Temple-Inland inventory to fair value, and gains of $6 million and $5 million for the three months and nine months ended September 30, 2012 for other items. | ||||||||||||||||
(f) | Includes a gain of $1 million for the three months ended September 30, 2012 and a net $0 million for the nine months ended September 30, 2012 related to the acquisition of the majority interest in Andhra Pradesh Paper Mills Limited. | ||||||||||||||||
(g) | Includes a gain of $1 million for the nine months ended September 30, 2012 for adjustments related to the sale of the Shorewood business. | ||||||||||||||||
(h) | Includes charges of $9 million and $42 million for the three months and nine months ended September 30, 2012 for costs associated with the restructuring of the Company's xpedx operation. | ||||||||||||||||
(i) | Includes a gain of $6 million for interest related to the settlement of an IRS tax audit. | ||||||||||||||||
(j) | Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
EQUITY_Tables
EQUITY (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Schedule of Stockholders' Equity [Table Text Block] | ' | |||||||||||||||||||||||
A summary of the changes in equity for the nine-month periods ended September 30, 2013 and 2012 is provided below: | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
In millions, except per share amounts | Total | Noncontrolling | Total | Total | Noncontrolling | Total | ||||||||||||||||||
International | Interests | Equity | International | Interests | Equity | |||||||||||||||||||
Paper | Paper | |||||||||||||||||||||||
Shareholders’ | Shareholders’ | |||||||||||||||||||||||
Equity | Equity | |||||||||||||||||||||||
Balance, January 1 | $ | 6,304 | $ | 332 | $ | 6,636 | $ | 6,645 | $ | 340 | $ | 6,985 | ||||||||||||
Issuance of stock for various plans, net | 418 | — | 418 | 144 | — | 144 | ||||||||||||||||||
Repurchase of stock | (70 | ) | — | (70 | ) | (35 | ) | — | (35 | ) | ||||||||||||||
Common stock dividends ($0.9000 per share in 2013 and $0.7875 per share in 2012) | (409 | ) | — | (409 | ) | (353 | ) | — | (353 | ) | ||||||||||||||
Dividends paid to noncontrolling interests by subsidiary | — | (1 | ) | (1 | ) | — | (4 | ) | (4 | ) | ||||||||||||||
Noncontrolling interests of acquired entities, net | — | 7 | 7 | — | — | — | ||||||||||||||||||
Acquisition of noncontrolling interests | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||
Comprehensive income (loss) | 987 | (26 | ) | 961 | 605 | 5 | 610 | |||||||||||||||||
Ending Balance, September 30 | $ | 7,230 | $ | 312 | $ | 7,542 | $ | 7,006 | $ | 339 | $ | 7,345 | ||||||||||||
COMPREHENSIVE_INCOME_COMPREHEN1
COMPREHENSIVE INCOME COMPREHENSIVE INCOME (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents changes in AOCI for the three-month period ended September 30, 2013: | The following table presents changes in AOCI for the three-month period ended September 30, 2012: | The following table presents changes in AOCI for the nine-month period ended September 30, 2013: | The following table presents changes in AOCI for the nine-month period ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | In millions | Defined Benefit Pension and Postretirement Items (a) | Change in Cumulative Foreign Currency Translation Adjustments (a) | Net Gains and Losses on Cash Flow Hedging Derivatives (a) | Total (a) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | (3,442 | ) | $ | (592 | ) | $ | (17 | ) | $ | (4,051 | ) | Balance as of June 30, 2012 | $ | (2,730 | ) | $ | (392 | ) | $ | (17 | ) | $ | (3,139 | ) | Balance as of January 1, 2013 | $ | (3,596 | ) | $ | (246 | ) | $ | 2 | $ | (3,840 | ) | Balance as of January 1, 2012 | $ | (2,852 | ) | $ | (117 | ) | $ | (36 | ) | $ | (3,005 | ) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 103 | 34 | 7 | 144 | Other comprehensive income (loss) before reclassifications | 4 | 114 | 7 | 125 | Other comprehensive income (loss) before reclassifications | 28 | (126 | ) | 13 | (85 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 103 | (329 | ) | (3 | ) | (229 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 76 | — | 4 | 80 | Amounts reclassified from accumulated other comprehensive income | 48 | — | 4 | 52 | Amounts reclassified from accumulated other comprehensive income | 146 | (35 | ) | 17 | 128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 230 | 17 | (5 | ) | 242 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Current Period Other Comprehensive Income | 179 | 34 | 11 | 224 | Net Current Period Other Comprehensive Income | 52 | 114 | 11 | 177 | Net Current Period Other Comprehensive Income | 174 | (161 | ) | 30 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Current Period Other Comprehensive Income | 333 | (312 | ) | (8 | ) | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | (3,263 | ) | $ | (558 | ) | $ | (6 | ) | $ | (3,827 | ) | Balance as of September 30, 2012 | $ | (2,678 | ) | $ | (278 | ) | $ | (6 | ) | $ | (2,962 | ) | Balance as of September 30, 2012 | $ | (2,678 | ) | $ | (278 | ) | $ | (6 | ) | $ | (2,962 | ) | ||||||||||||||||||||||||||||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | Balance as of September 30, 2013 | $ | (3,263 | ) | $ | (558 | ) | $ | (6 | ) | $ | (3,827 | ) | (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents details of the reclassifications out of AOCI for the three-month period ended September 30, 2013: | The following table presents details of the reclassifications out of AOCI for the three-month period ended September 30, 2012: | The following table presents details of the reclassifications out of AOCI for the nine-month period ended September 30, 2013: | The following table presents details of the reclassifications out of AOCI for the nine-month period ended September 30, 2012: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions: | In millions: | In millions | In millions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit pension and postretirement items: | Defined benefit pension and postretirement items: | Defined benefit pension and postretirement items: | Defined benefit pension and postretirement items: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior-service costs | $ | (2 | ) | (b) | Cost of products sold | Prior-service costs | $ | (1 | ) | (b) | Cost of products sold | Prior-service costs | $ | (7 | ) | (b) | Cost of products sold | Prior-service costs | $ | (2 | ) | (b) | Cost of products sold | |||||||||||||||||||||||||||||||||||||||||||||
Actuarial gains/(losses) | (123 | ) | (b) | Cost of products sold | Actuarial gains/(losses) | (78 | ) | (b) | Cost of products sold | Actuarial gains/(losses) | (370 | ) | (b) | Cost of products sold | Actuarial gains/(losses) | (237 | ) | (b) | Cost of products sold | |||||||||||||||||||||||||||||||||||||||||||||||||
Total pre-tax amount | (125 | ) | Total pre-tax amount | (79 | ) | Total pre-tax amount | (377 | ) | Total pre-tax amount | (239 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (expense)/benefit | 49 | Tax (expense)/benefit | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (expense)/benefit | 147 | Tax (expense)/benefit | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of tax | $ | (76 | ) | Net of tax | $ | (48 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains and losses on cash flow hedging derivatives: | Net gains and losses on cash flow hedging derivatives: | Net of tax | $ | (230 | ) | Net of tax | $ | (146 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (6 | ) | (c) | Cost of products sold | Foreign exchange contracts | $ | (6 | ) | (c) | Cost of products sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total pre-tax amount | (6 | ) | Total pre-tax amount | (6 | ) | Change in cumulative foreign currency translation adjustments: | Change in cumulative foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (expense)/benefit | 2 | Tax (expense)/benefit | 2 | Business acquisition/divestitures | $ | (17 | ) | Net bargain purchase gain on acquisition of business | Business acquisitions/divestitures | $ | 48 | Net (gains) losses on sales and impairments of businesses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (expense)/benefit | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of tax | (4 | ) | Net of tax | (4 | ) | Tax (expense)/benefit | (13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (80 | ) | Total reclassifications for the period | $ | (52 | ) | Net of tax | $ | (17 | ) | Net of tax | $ | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | (a) Amounts in parentheses indicate debits to earnings/loss. | Foreign exchange contracts | $ | 7 | (c) | Cost of products sold | Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | Foreign exchange contracts | $ | (16 | ) | (c) | Cost of products sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | Total pre-tax amount | 7 | Natural gas contracts | (11 | ) | (c) | Cost of products sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total pre-tax amount | (27 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax (expense)/benefit | (2 | ) | Tax (expense)/benefit | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of tax | 5 | Net of tax | (17 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (128 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (242 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Amounts in parentheses indicate debits to earnings/loss. | (c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(c) This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). |
EARNINGS_PER_SHARE_ATTRIBUTABL1
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||||
A reconciliation of the amounts included in the computation of earnings (loss) per common share, and diluted earnings (loss) per common share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions, except per share amounts | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Earnings (loss) from continuing operations | $ | 392 | $ | 223 | $ | 919 | $ | 524 | ||||||||
Effect of dilutive securities (a) | — | — | — | — | ||||||||||||
Earnings (loss) from continuing operations – assuming dilution | $ | 392 | $ | 223 | $ | 919 | $ | 524 | ||||||||
Average common shares outstanding | 445.9 | 435.1 | 444.1 | 434.7 | ||||||||||||
Effect of dilutive securities (a) | ||||||||||||||||
Restricted stock performance share plan | 3.6 | 4.7 | 4.3 | 5 | ||||||||||||
Stock options (b) | 0.2 | — | 0.3 | — | ||||||||||||
Average common shares outstanding – assuming dilution | 449.7 | 439.8 | 448.7 | 439.7 | ||||||||||||
Basic earnings (loss) from continuing operations per common share | $ | 0.88 | $ | 0.51 | $ | 2.07 | $ | 1.2 | ||||||||
Diluted earnings (loss) from continuing operations per common share | $ | 0.87 | $ | 0.51 | $ | 2.05 | $ | 1.19 | ||||||||
(a) Securities are not included in the table in periods when antidilutive. | ||||||||||||||||
(b) | Options to purchase 10.7 million shares for the three months ended September 30, 2012 and 9.4 million shares for the nine months ended September 30, 2012 were not included in the computation of diluted common shares outstanding because their exercise price exceeded the average market price of the Company’s common stock for each respective reporting period. |
RESTRUCTURING_AND_OTHER_CHARGE1
RESTRUCTURING AND OTHER CHARGES (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||
2013: During the three months ended September 30, 2013, restructuring and other charges totaling $76 million before taxes ($47 million after taxes) were recorded. Details of these charges were as follows: | During the three months ended June 30, 2013, restructuring and other charges totaling a gain of $4 million before taxes ($2 million after taxes) were recorded. Details of these charges were as follows: | During the three months ended March 31, 2013, restructuring and other charges totaling $59 million before taxes ($36 million after taxes) were recorded. Details of these charges were as follows: | 2012: During the three months ended September 30, 2012, restructuring and other charges totaling $33 million before taxes ($24 million after taxes) were recorded. Details of these charges were as follows: | During the three months ended June 30, 2012, restructuring and other charges totaling $21 million before taxes ($13 million after taxes) were recorded. Details of these charges were as follows: | During the three months ended March 31, 2012, restructuring and other charges totaling $34 million before taxes ($23 million after taxes) were recorded. Details of these charges were as follows: | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended June 30, 2012 | Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Jun-13 | 31-Mar-13 | September 30, 2012 | In millions | Before-Tax | After-Tax | In millions | Before-Tax | After-Tax | |||||||||||||||||||||||||||||||||||||||
In millions | Before-Tax | After-Tax | In millions | Before-Tax | After-Tax | In millions | Before-Tax | After-Tax | In millions | Before-Tax | After-Tax | Charges | Charges | Charges | Charges | |||||||||||||||||||||||||||||||||
Charges | Charges | Charges | Charges | Charges | Charges | Charges | Charges | Early debt extinguishment costs | $ | 10 | $ | 6 | Early debt extinguishment costs | $ | 16 | $ | 10 | |||||||||||||||||||||||||||||||
Early debt extinguishment costs | $ | 15 | $ | 9 | Early debt extinguishment costs | $ | 3 | $ | 2 | Early debt extinguishment costs | $ | 6 | $ | 4 | Early debt extinguishment costs | $ | 13 | $ | 8 | |||||||||||||||||||||||||||||
xpedx restructuring | 10 | 6 | xpedx restructuring | 19 | 14 | |||||||||||||||||||||||||||||||||||||||||||
xpedx restructuring | 6 | 4 | Insurance reimbursements | (30 | ) | (19 | ) | xpedx restructuring | 7 | 4 | xpedx restructuring | 8 | 4 | |||||||||||||||||||||||||||||||||||
xpedx restructuring | 17 | 10 | Other | 1 | 1 | Other | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||
xpedx transaction costs | 11 | 7 | Augusta paper machine shutdown | 44 | 27 | EMEA packaging restructuring | 16 | 11 | Total | $ | 34 | $ | 23 | |||||||||||||||||||||||||||||||||||
Other | 6 | 5 | Total | $ | 21 | $ | 13 | |||||||||||||||||||||||||||||||||||||||||
Courtland mill shutdown | 51 | 31 | Other | 2 | 1 | Other | (4 | ) | 1 | |||||||||||||||||||||||||||||||||||||||
Total | $ | (4 | ) | $ | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Bellevue box plant facility sale | (9 | ) | (6 | ) | Total | $ | 59 | $ | 36 | Total | $ | 33 | $ | 24 | ||||||||||||||||||||||||||||||||||
Other | 2 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 76 | $ | 47 | ||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS_AND_JOINT_VENTURE1
ACQUISITIONS AND JOINT VENTURES (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Business Acquisition [Line Items] | ' | |||||
Business Acquisition Pro Forma Information [Table Text Block] | ' | |||||
This information does not purport to represent International Paper’s actual results of operations if the transaction described above would have occurred on January 1, 2012, nor is it necessarily indicative of future results. | ||||||
In millions, except per share amounts | Nine Months Ended | |||||
30-Sep-12 | ||||||
Net sales | $ | 21,050 | ||||
Earnings (loss) from continuing operations (a) | 567 | |||||
Net earnings (loss) (a) | 602 | |||||
Diluted earnings (loss) from continuing operations per common share (a) | 1.29 | |||||
Diluted net earnings (loss) per common share (a) | 1.37 | |||||
(a) Attributable to International Paper Company common shareholders. | ||||||
Orsa IP [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
The following table summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of January 14, 2013. | ||||||
In millions | ||||||
Cash and temporary investments | $ | 16 | ||||
Accounts and notes receivable, net | 5 | |||||
Inventory | 27 | |||||
Plants, properties and equipment | 290 | |||||
Goodwill | 220 | |||||
Other intangible assets | 110 | |||||
Other long-term assets | 3 | |||||
Total assets acquired | 671 | |||||
Accounts payable and accrued liabilities | 10 | |||||
Deferred income tax liability | 56 | |||||
Total liabilities assumed | 66 | |||||
Noncontrolling interest | 134 | |||||
Net assets acquired | $ | 471 | ||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||
The identifiable intangible assets acquired in connection with the Orsa IP acquisition included the following: | ||||||
In millions | Estimated | Average | ||||
Fair Value | Remaining | |||||
Useful Life | ||||||
(at acquisition date) | ||||||
Asset Class: | ||||||
Customer relationships | $ | 88 | 12 years | |||
Trademark | 3 | 6 years | ||||
Wood supply agreement | 19 | 25 years | ||||
Total | $ | 110 | ||||
Olmuksan Joint Venture [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
The following table summarizes the preliminary allocation of the purchase price to the fair value of assets and liabilities acquired as of January 1, 2013. | ||||||
In millions | ||||||
Cash and temporary investments | $ | 5 | ||||
Accounts and notes receivable | 72 | |||||
Inventory | 31 | |||||
Other current assets | 2 | |||||
Plants, properties and equipment | 105 | |||||
Investments | 11 | |||||
Total assets acquired | 226 | |||||
Notes payable and current maturities of long-term debt | 17 | |||||
Accounts payable and accrued liabilities | 27 | |||||
Deferred income tax liability | 4 | |||||
Postretirement and postemployment benefit obligation | 6 | |||||
Total liabilities assumed | 54 | |||||
Noncontrolling interest | 18 | |||||
Net assets acquired | $ | 154 | ||||
Temple Inland Inc [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | |||||
he following summarizes the allocation of the purchase price to the fair value of assets and liabilities acquired as of February 13, 2012, which was finalized in the fourth quarter of 2012. | ||||||
In millions | ||||||
Accounts and notes receivable | $ | 466 | ||||
Inventory | 484 | |||||
Deferred income tax assets – current | 140 | |||||
Other current assets | 57 | |||||
Plants, properties and equipment | 2,911 | |||||
Financial assets of special purpose entities | 2,091 | |||||
Goodwill | 2,139 | |||||
Other intangible assets | 693 | |||||
Deferred charges and other assets | 54 | |||||
Total assets acquired | 9,035 | |||||
Notes payable and current maturities of long-term debt | 130 | |||||
Accounts payable and accrued liabilities | 704 | |||||
Long-term debt | 527 | |||||
Nonrecourse financial liabilities of special purpose entities | 2,030 | |||||
Deferred income tax liability | 1,252 | |||||
Pension benefit obligation | 338 | |||||
Postretirement and postemployment benefit obligation | 99 | |||||
Other liabilities | 221 | |||||
Total liabilities assumed | 5,301 | |||||
Net assets acquired | $ | 3,734 | ||||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | ' | |||||
The identifiable intangible assets acquired in connection with the Temple-Inland acquisition included the following: | ||||||
In millions | Estimated | Average | ||||
Fair Value | Remaining | |||||
Useful Life | ||||||
(at acquisition date) | ||||||
Asset Class: | ||||||
Customer relationships | $ | 536 | 12-17 years | |||
Developed technology | 8 | 5-10 years | ||||
Tradenames | 109 | Indefinite | ||||
Favorable contracts | 14 | 4-7 years | ||||
Non-compete agreement | 26 | 2 years | ||||
Total | $ | 693 | ||||
SUPPLEMENTAL_FINANCIAL_STATEME1
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Supplemental Financial Statement Information [Abstract] | ' | |||||||||||||||
Temporary Investments [Table Text Block] | ' | |||||||||||||||
Temporary Investments | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Temporary investments | $ | 1,545 | $ | 934 | ||||||||||||
Accounts and Notes Receivable [Table Text Block] | ' | |||||||||||||||
Accounts and Notes Receivable | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Accounts and notes receivable, net: | ||||||||||||||||
Trade | $ | 3,717 | $ | 3,316 | ||||||||||||
Other | 307 | 246 | ||||||||||||||
Total | $ | 4,024 | $ | 3,562 | ||||||||||||
Inventories [Table Text Block] | ' | |||||||||||||||
Inventories | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Raw materials | $ | 410 | $ | 360 | ||||||||||||
Finished pulp, paper and packaging | 1,792 | 1,728 | ||||||||||||||
Operating supplies | 571 | 588 | ||||||||||||||
Other | 68 | 54 | ||||||||||||||
Total | $ | 2,841 | $ | 2,730 | ||||||||||||
Depreciation Expense [Table Text Block] | ' | |||||||||||||||
Depreciation Expense | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Depreciation expense | $ | 365 | $ | 347 | $ | 1,081 | $ | 1,045 | ||||||||
Valuation Accounts [Table Text Block] | ' | |||||||||||||||
Certain valuation accounts were as follows: | ||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Accumulated depreciation | $ | 19,826 | $ | 18,934 | ||||||||||||
Allowance for doubtful accounts | 138 | 119 | ||||||||||||||
Interest [Table Text Block] | ' | |||||||||||||||
Cash payments related to interest were as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
In millions | 2013 | 2012 | ||||||||||||||
Interest payments | $ | 537 | $ | 496 | ||||||||||||
Schedule of Interest Income and Interest Expense [Table Text Block] | ' | |||||||||||||||
Amounts related to interest were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest expense (a) | $ | 162 | $ | 197 | $ | 520 | $ | 559 | ||||||||
Interest income (a) | 15 | 34 | 41 | 56 | ||||||||||||
Capitalized interest costs | 4 | 10 | 12 | 29 | ||||||||||||
(a) | Interest expense and interest income exclude approximately $11 million and $35 million for the three months and nine months ended September 30, 2013 and $15 million and $35 million for the three months and nine months ended September 30, 2012, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). | |||||||||||||||
Postretirement Benefit Expense [Table Text Block] | ' | |||||||||||||||
The components of the Company’s postretirement benefit expense were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||
Interest cost | 4 | 5 | 11 | 15 | ||||||||||||
Actuarial loss | 2 | 3 | 5 | 8 | ||||||||||||
Amortization of prior service credit | (6 | ) | (8 | ) | (18 | ) | (22 | ) | ||||||||
Net postretirement benefit expense | $ | — | $ | 1 | $ | (1 | ) | $ | 3 | |||||||
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Changes in Goodwill Balances [Table Text Block] | ' | |||||||||||||||||||
The following table presents changes in goodwill balances as allocated to each business segment for the nine-month period ended September 30, 2013: | ||||||||||||||||||||
In millions | Industrial | Printing | Consumer | Distribution | Total | |||||||||||||||
Packaging | Papers | Packaging | ||||||||||||||||||
Balance as of January 1, 2013 | ||||||||||||||||||||
Goodwill | $ | 3,165 | $ | 2,396 | $ | 1,783 | $ | 400 | $ | 7,744 | ||||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||||
3,165 | 631 | 119 | 400 | 4,315 | ||||||||||||||||
Reclassifications and other (b) | (13 | ) | (49 | ) | 2 | — | (60 | ) | ||||||||||||
Additions/reductions | 253 | (c) | (17 | ) | (d) | — | — | 236 | ||||||||||||
Balance as of September 30, 2013 | ||||||||||||||||||||
Goodwill | 3,405 | 2,330 | 1,785 | 400 | 7,920 | |||||||||||||||
Accumulated impairment losses (a) | — | (1,765 | ) | (1,664 | ) | — | (3,429 | ) | ||||||||||||
Total | $ | 3,405 | $ | 565 | $ | 121 | $ | 400 | $ | 4,491 | ||||||||||
(a) | Represents accumulated goodwill impairment charges since the adoption of ASC 350, “Intangibles – Goodwill and Other” in 2002. | |||||||||||||||||||
(b) | Represents the effects of foreign currency translations and reclassifications. | |||||||||||||||||||
(c) | Reflects $220 million for Orsa IP, the newly formed joint venture in Brazil, and the adjustment of $54 million ($33 million after-tax impact to goodwill) previously included as a trade name intangible asset in Deferred Charges and Other Assets on the balance sheet. | |||||||||||||||||||
(d) | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. | |||||||||||||||||||
Finite and Indefinite-Lived Intangible Assets [Table Text Block] | ' | |||||||||||||||||||
Identifiable intangible assets comprised the following: | ||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||
In millions | Gross | Accumulated | Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||
Amount | Amount | |||||||||||||||||||
Customer relationships and lists | $ | 634 | $ | 138 | $ | 644 | $ | 112 | ||||||||||||
Non-compete agreements | 76 | 41 | 83 | 30 | ||||||||||||||||
Tradenames, patents and trademarks | 77 | 18 | 144 | 16 | ||||||||||||||||
Land and water rights | 75 | 7 | 87 | 6 | ||||||||||||||||
Fuel and power agreements | 11 | 6 | 17 | 12 | ||||||||||||||||
Software | 24 | 22 | 22 | 19 | ||||||||||||||||
Other | 49 | 27 | 83 | 19 | ||||||||||||||||
Total | $ | 946 | $ | 259 | $ | 1,080 | $ | 214 | ||||||||||||
Amortization Expense of Intangible Assets [Table Text Block] | ' | |||||||||||||||||||
The Company recognized the following amounts as amortization expense related to intangible assets: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Amortization expense related to intangible assets | $ | 30 | $ | 28 | $ | 66 | $ | 43 | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations [Table Text Block] | ' | |||||||
The components of the net provision related to special items were as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
In millions | 2013 | 2012 | ||||||
Special items | $ | (77 | ) | $ | (87 | ) | ||
Tax-related adjustments: | ||||||||
Temple-Inland acquisition | — | 3 | ||||||
IRS audit settlement | (122 | ) | — | |||||
Mexican business restructuring | — | 3 | ||||||
Other | 2 | — | ||||||
Income tax provision (benefit) related to special items | $ | (197 | ) | $ | (81 | ) | ||
Income Tax Payments, Net of Refunds [Table Text Block] | ' | |||||||
International Paper made income tax payments, net of refunds, as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
In millions | 2013 | 2012 | ||||||
Income tax payments, net | $ | 224 | $ | 41 | ||||
Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Table Text Block] | ' | |||||||
The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the nine months ended September 30, 2013: | ||||||||
In millions | Unrecognized | Accrued Estimated | ||||||
Tax Benefits | Interest and Tax | |||||||
Penalties | ||||||||
Balance at December 31, 2012 | $ | (972 | ) | $ | (104 | ) | ||
Activity for three months ended March 31, 2013 | 99 | 20 | ||||||
Activity for the three months ended June 30, 2013 | 6 | 1 | ||||||
Activity for the three months ended September 30, 2013 | 29 | 13 | ||||||
Balance at September 30, 2013 | $ | (838 | ) | $ | (70 | ) |
VARIABLE_INTEREST_ENTITIES_AND1
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Entities [Member] | ' | |||||||||||||||
Activity Between Company And Entities [Table Text Block] | ' | |||||||||||||||
Activity between the Company and the Entities was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue (a) | $ | 11 | $ | 15 | $ | 35 | $ | 35 | ||||||||
Expense (a) | 20 | 28 | 61 | 68 | ||||||||||||
Cash receipts (b) | 14 | 21 | 33 | 36 | ||||||||||||
Cash payments (c) | 39 | 47 | 84 | 87 | ||||||||||||
(a) | The net expense related to the Company’s interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to affect its legal right to offset as discussed above. | |||||||||||||||
(b) | The cash receipts are equity distributions from the Entities to International Paper. | |||||||||||||||
(c) | The semi-annual payments are related to interest on the associated debt obligations discussed above. | |||||||||||||||
2007 Financing Entities [Member] | ' | |||||||||||||||
Activity Between Company And Entities [Table Text Block] | ' | |||||||||||||||
Activity between the Company and the 2007 financing entities was as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue (a) | $ | 6 | $ | 15 | $ | 20 | $ | 21 | ||||||||
Expense (b) | 7 | 11 | 22 | 20 | ||||||||||||
Cash receipts (c) | 2 | 3 | 6 | 10 | ||||||||||||
Cash payments (d) | 5 | 6 | 16 | 16 | ||||||||||||
(a) | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended September 30, 2013, respectively, and $12 million for the three months and nine months ended September 30, 2012, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. | |||||||||||||||
(b) | The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended September 30, 2013, respectively, and $5 million for the three months and nine months ended September 30, 2012, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | |||||||||||||||
(c) | The cash receipts are interest received on the Financial assets of special purpose entities. | |||||||||||||||
(d) | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Debt Extinguishment [Table Text Block] | ' | |||||||||||||||
Amounts related to early debt extinguishment during the three months and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Early debt reductions (a) | $ | 442 | $ | 611 | $ | 500 | $ | 1,047 | ||||||||
Pre-tax early debt extinguishment costs (b) | 15 | 13 | 24 | 39 | ||||||||||||
(a) | Reductions related to notes with interest rates ranging from 5.45% to 7.40% with original maturities from 2014 to 2033 and from 1.63% to 6.95% with original maturities from 2017 to 2023 for the three months ended September 30, 2013 and 2012, respectively, and 5.20% to 7.95% with original maturities from 2014 to 2033 and from 1.63% to 7.95% with original maturities from 2012 to 2023 for the nine months ended September 30, 2013 and September 30, 2012, respectively. | |||||||||||||||
(b) | Amounts are included in Restructuring and Other Charges in the accompanying consolidated statements of operations. |
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Schedule of Notional Amounts of Financial Instruments [Table Text Block] | ' | |||||||||||||||||
The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: | ||||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) | ||||||||||||||||||
Brazilian real / U.S. dollar - Forward | 543 | — | ||||||||||||||||
British pounds / Brazilian real – Forward | 16 | 13 | ||||||||||||||||
European euro / Brazilian real – Forward | 21 | 13 | ||||||||||||||||
European euro / Polish zloty – Forward | 263 | 149 | ||||||||||||||||
U.S. dollar / Brazilian real – Forward | 335 | 238 | ||||||||||||||||
U.S. dollar / Brazilian real – Zero-cost collar | 18 | 18 | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Embedded derivative (in USD) | — | 150 | ||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) | ||||||||||||||||||
Indian rupee / U.S. dollar | 157 | 140 | ||||||||||||||||
Thai baht / U.S. dollar | 36 | 261 | ||||||||||||||||
U.S. dollar / Turkish lira | — | 56 | ||||||||||||||||
Interest rate contracts (in USD) | — | 150 | (c) | |||||||||||||||
(a) | These contracts had maturities of three years or less as of September 30, 2013. | |||||||||||||||||
(b) | These contracts had maturities of one year or less as of September 30, 2013. | |||||||||||||||||
(c) | Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative. | |||||||||||||||||
Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block] | ' | |||||||||||||||||
The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: | ||||||||||||||||||
Gain (Loss) | ||||||||||||||||||
Recognized in | ||||||||||||||||||
AOCI | ||||||||||||||||||
on Derivatives | ||||||||||||||||||
(Effective Portion) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Foreign exchange contracts | $ | 7 | $ | 7 | $ | (3 | ) | $ | 14 | |||||||||
Natural gas contracts | — | — | — | (1 | ) | |||||||||||||
Total | $ | 7 | $ | 7 | $ | (3 | ) | $ | 13 | |||||||||
Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments [Table Text Block] | ' | |||||||||||||||||
The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: | ||||||||||||||||||
Gain (Loss) | Location of Gain (Loss) | |||||||||||||||||
Reclassified from | Reclassified from AOCI | |||||||||||||||||
AOCI | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||
Foreign exchange contracts | $ | (4 | ) | $ | (4 | ) | $ | 5 | $ | (10 | ) | Cost of products sold | ||||||
Natural gas contracts | — | — | — | (7 | ) | Cost of products sold | ||||||||||||
Total | $ | (4 | ) | $ | (4 | ) | $ | 5 | $ | (17 | ) | |||||||
Gain (Loss) Recognized | Location of Gain (Loss) | |||||||||||||||||
In Consolidated | ||||||||||||||||||
Statement | ||||||||||||||||||
of Operations | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Electricity contact | $ | — | $ | 1 | $ | 2 | $ | (2 | ) | Cost of products sold | ||||||||
Embedded Derivatives | — | (1 | ) | (1 | ) | (3 | ) | Interest expense, net | ||||||||||
Foreign exchange contracts | — | — | (5 | ) | (1 | ) | Cost of products sold | |||||||||||
Interest rate contracts | 7 | 5 | 17 | 17 | Interest expense, net | |||||||||||||
Total | $ | 7 | $ | 5 | $ | 13 | $ | 11 | ||||||||||
Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block] | ' | |||||||||||||||||
The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet: | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Level 2 – Significant Other Observable Inputs | ||||||||||||||||||
Assets | Liabilities | |||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | 30-Sep-13 | 31-Dec-12 | ||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||
Foreign exchange contracts – cash flow | $ | 22 | (a) | $ | 7 | (c) | $ | 28 | (e) | $ | 21 | (f) | ||||||
Total derivatives designated as hedging instruments | $ | 22 | $ | 7 | $ | 28 | $ | 21 | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Electricity contract | $ | 1 | (b) | $ | — | $ | — | $ | 1 | (g) | ||||||||
Embedded derivatives | — | 1 | (d) | — | — | |||||||||||||
Foreign exchange contracts | — | 1 | (d) | — | — | |||||||||||||
Interest rate contracts | — | — | — | 1 | (g) | |||||||||||||
Total derivatives not designated as hedging instruments | $ | 1 | $ | 2 | $ | — | $ | 2 | ||||||||||
Total derivatives | $ | 23 | $ | 9 | $ | 28 | $ | 23 | ||||||||||
(a) | Includes $11 million recorded in Other current assets and $11 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(b) | Included in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(c) | Includes $3 million recorded in Other current assets and $4 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(d) | Included in Other current assets in the accompanying consolidated balance sheet. | |||||||||||||||||
(e) | Includes $17 million recorded in Other accrued liabilities and $11 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||||||||||||||||
(f) | Includes $20 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||||||||||||||||
(g) | Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans [Table Text Block] | ' | |||||||||||||||
Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Service cost | $ | 47 | $ | 38 | $ | 142 | $ | 113 | ||||||||
Interest cost | 143 | 154 | 430 | 452 | ||||||||||||
Expected return on plan assets | (186 | ) | (190 | ) | (550 | ) | (563 | ) | ||||||||
Actuarial loss | 121 | 76 | 365 | 230 | ||||||||||||
Amortization of prior service cost | 9 | 8 | 26 | 24 | ||||||||||||
Net periodic pension expense | $ | 134 | $ | 86 | $ | 413 | $ | 256 | ||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits [Table Text Block] | ' | |||||||||||||||
Stock-based compensation expense and related income tax benefits were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Total stock-based compensation expense (selling and administrative) | $ | 35 | $ | 26 | $ | 106 | $ | 70 | ||||||||
Income tax benefits related to stock-based compensation | 3 | — | 70 | 40 | ||||||||||||
Assumptions Used to Determine Compensation Cost for Market Condition Component of Performance Share Program Plan [Table Text Blcok] | ' | |||||||||||||||
The following table sets forth the assumptions used to determine compensation cost for the market condition component of the PSP plan: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Expected volatility | 25.25 % - 62.58% | 28.39% - 55.33% | 25.25% - 62.58% | 28.39% - 55.33% | ||||||||||||
Risk-free interest rate | 0.20% - 0.99% | 0.12% - 0.42% | 0.20% - 0.99% | 0.12% - 0.42% | ||||||||||||
Summary of Performance Share Plan Activity [Table Text Block] | ' | |||||||||||||||
The following summarizes the activity for PSP for the nine months ended September 30, 2013: | ||||||||||||||||
Nonvested | Weighted Average | |||||||||||||||
Shares / Units | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Outstanding at December 31, 2012 | 8,660,855 | $ | 28.37 | |||||||||||||
Granted | 3,148,445 | 40.76 | ||||||||||||||
Shares Issued (a) | (3,222,492 | ) | 32.48 | |||||||||||||
Forfeited | (348,754 | ) | 35.06 | |||||||||||||
Outstanding at September 30, 2013 | 8,238,054 | $ | 31.22 | |||||||||||||
(a) Includes 316,274 units held for payout at the end of the performance period. | ||||||||||||||||
Summary of Option Activity [Table Text Block] | ' | |||||||||||||||
A summary of option activity under the plan as of September 30, 2013 is presented below: | ||||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||||
Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining Life | Value | ||||||||||||||
(years) | (thousands) | |||||||||||||||
Outstanding at December 31, 2012 | 9,136,060 | $ | 38.79 | |||||||||||||
Granted | 4,744 | 48.11 | ||||||||||||||
Exercised | (7,067,850 | ) | 38.54 | |||||||||||||
Expired | (49,637 | ) | 35.99 | |||||||||||||
Outstanding at September 30, 2013 | 2,023,317 | $ | 39.74 | 0.85 | $ | 10,245 | ||||||||||
Summary of Restricted Stock Award Program Activity [Table Text Block] | ' | |||||||||||||||
The following summarizes the activity of the Executive Continuity and Restricted Stock Award Program for the nine months ended September 30, 2013: | ||||||||||||||||
Nonvested | Weighted Average | |||||||||||||||
Shares | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Outstanding at December 31, 2012 | 151,549 | $ | 30.49 | |||||||||||||
Granted | 63,500 | 44.4 | ||||||||||||||
Shares Issued | (81,941 | ) | 33.04 | |||||||||||||
Forfeited | (17,500 | ) | 37.75 | |||||||||||||
Outstanding at September 30, 2013 | 115,608 | $ | 35.22 | |||||||||||||
INDUSTRY_SEGMENT_INFORMATION_T
INDUSTRY SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Sales and Operating Profit by Industry Segment [Table Text Block] | ' | ||||||||||||||||
Sales by industry segment for the three months and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Industrial Packaging | $ | 3,755 | $ | 3,335 | $ | 11,095 | $ | 9,900 | |||||||||
Printing Papers | 1,555 | 1,580 | 4,635 | 4,650 | |||||||||||||
Consumer Packaging | 885 | 765 | 2,570 | 2,355 | |||||||||||||
Distribution | 1,445 | 1,535 | 4,235 | 4,510 | |||||||||||||
Corporate and Intersegment Sales | (234 | ) | (189 | ) | (704 | ) | (657 | ) | |||||||||
Net Sales | $ | 7,406 | $ | 7,026 | $ | 21,831 | $ | 20,758 | |||||||||
Operating profit by industry segment for the three months and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Industrial Packaging | $ | 499 | (a) | $ | 255 | (e) | 1,328 | (a) | $ | 730 | (e) | ||||||
Printing Papers | 93 | (b) | 202 | (f) | 318 | (b) | 452 | (f) | |||||||||
Consumer Packaging | 73 | (c) | 67 | (g) | 131 | (c) | 227 | (g) | |||||||||
Distribution | 13 | (d) | 15 | (h) | 8 | (d) | 18 | (h) | |||||||||
Operating Profit | 678 | 539 | $ | 1,785 | 1,427 | ||||||||||||
Interest expense, net | (147 | ) | (163 | ) | (479 | ) | (i) | (503 | ) | ||||||||
Noncontrolling interests/equity earnings adjustment (j) | (3 | ) | — | 1 | 8 | ||||||||||||
Corporate items, net | (13 | ) | (1 | ) | (35 | ) | (36 | ) | |||||||||
Restructuring and other charges | (26 | ) | (15 | ) | (23 | ) | (40 | ) | |||||||||
Non-operating pension expense | (78 | ) | (40 | ) | (245 | ) | (119 | ) | |||||||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ | 411 | $ | 320 | $ | 1,004 | $ | 737 | |||||||||
Equity earnings (loss), net of taxes – Ilim | $ | 11 | $ | 33 | $ | (34 | ) | $ | 48 | ||||||||
(a) | Includes charges of $24 million for the three months ended September 30, 2013 and $50 million for the nine months ended September 30, 2013 for integration costs associated with the acquisition of Temple-Inland, a gain of $14 million for the nine months ended September 30, 2013 for a bargain purchase adjustment on the first quarter 2013 acquisition of a majority share of our operations in Turkey, a gain of $9 million for the three months and nine months ended September 30, 2013 related to the sale of the box plant facility in Bellevue, Washington, and charges of $3 million for the three months ended September 30, 2013 and $8 million for the nine months ended September 30, 2013 for other items. | ||||||||||||||||
(b) | Includes charges of $51 million for the three months and nine months ended September 30, 2013 for costs associated with the announced shutdown of our Courtland, Alabama mill. | ||||||||||||||||
(c) | Includes charges of $45 million for the nine months ended September 30, 2013 for costs associated with the permanent shutdown of a paper machine at our Augusta, Georgia mill. | ||||||||||||||||
(d) | Includes charges of $6 million for the three months ended September 30, 2013 and $30 million for the nine months ended September 30, 2013 for costs associated with the restructuring of the Company's xpedx operations. | ||||||||||||||||
(e) | Includes charges of $58 million and $136 million for the three months and nine months ended September 30, 2012 for integration costs associated with the Temple-Inland acquisition, charges of $19 million and $28 million for the three months and nine months ended September 30, 2012 for costs associated with the divestiture of three containerboard mills, charges of $16 million for the three months and nine months ended September 30, 2012 for costs associated with the restructuring of our Packaging business in Europe, a charge of $62 million for the nine months ended September 30, 2012 to adjust the value of the long-lived assets of the Hueneme mill in Oxnard, California to their fair value, a charge of $20 million for the nine months ended September 30, 2012 related to the write-up of the Temple-Inland inventory to fair value, and gains of $6 million and $5 million for the three months and nine months ended September 30, 2012 for other items. | ||||||||||||||||
(f) | Includes a gain of $1 million for the three months ended September 30, 2012 and a net $0 million for the nine months ended September 30, 2012 related to the acquisition of the majority interest in Andhra Pradesh Paper Mills Limited. | ||||||||||||||||
(g) | Includes a gain of $1 million for the nine months ended September 30, 2012 for adjustments related to the sale of the Shorewood business. | ||||||||||||||||
(h) | Includes charges of $9 million and $42 million for the three months and nine months ended September 30, 2012 for costs associated with the restructuring of the Company's xpedx operation. | ||||||||||||||||
(i) | Includes a gain of $6 million for interest related to the settlement of an IRS tax audit. | ||||||||||||||||
(j) | Operating profits for industry segments include each segment’s percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
EQUITY_Detail
EQUITY (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | $6,636 | $6,985 |
Issuance of stock for various plans, net | ' | ' | 418 | 144 |
Repurchase of stock | ' | ' | -70 | -35 |
Common stock dividends ($0.9000 per share in 2013 and $0.7875 per share in 2012) | ' | ' | -409 | -353 |
Dividends paid to noncontrolling interests by subsidiary | ' | ' | -1 | -4 |
Noncontrolling interests of acquired entities | ' | ' | 7 | 0 |
Acquisition of noncontrolling interests | ' | ' | 0 | -2 |
Comprehensive income (loss) | 600 | 415 | 961 | 610 |
Ending balance | 7,542 | 7,345 | 7,542 | 7,345 |
Total International Paper Shareholders' Equity [Member] | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | 6,304 | 6,645 |
Issuance of stock for various plans, net | ' | ' | 418 | 144 |
Repurchase of stock | ' | ' | -70 | -35 |
Common stock dividends ($0.9000 per share in 2013 and $0.7875 per share in 2012) | ' | ' | -409 | -353 |
Dividends paid to noncontrolling interests by subsidiary | ' | ' | 0 | 0 |
Noncontrolling interests of acquired entities | ' | ' | 0 | 0 |
Acquisition of noncontrolling interests | ' | ' | 0 | 0 |
Comprehensive income (loss) | ' | ' | 987 | 605 |
Ending balance | 7,230 | 7,006 | 7,230 | 7,006 |
Noncontrolling Interests [Member] | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | ' | 332 | 340 |
Issuance of stock for various plans, net | ' | ' | 0 | 0 |
Repurchase of stock | ' | ' | 0 | 0 |
Common stock dividends ($0.9000 per share in 2013 and $0.7875 per share in 2012) | ' | ' | 0 | 0 |
Dividends paid to noncontrolling interests by subsidiary | ' | ' | -1 | -4 |
Noncontrolling interests of acquired entities | ' | ' | 7 | 0 |
Acquisition of noncontrolling interests | ' | ' | 0 | -2 |
Comprehensive income (loss) | ' | ' | -26 | 5 |
Ending balance | $312 | $339 | $312 | $339 |
EQUITY_Parenthetical_Detail
EQUITY (Parenthetical) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Equity [Line Items] | ' | ' |
Common stock dividends, per share | $0.90 | $0.79 |
Total International Paper Shareholders' Equity [Member] | ' | ' |
Equity [Line Items] | ' | ' |
Common stock dividends, per share | $0.90 | $0.79 |
Noncontrolling Interests [Member] | ' | ' |
Equity [Line Items] | ' | ' |
Common stock dividends, per share | $0.90 | $0.79 |
COMPREHENSIVE_INCOME_COMPREHEN2
COMPREHENSIVE INCOME COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Beginning balance | ($4,051) | [1] | ($3,139) | [1] | ($3,840) | [1] | ($3,005) | [1] |
Other comprehensive income (loss) before reclassifications | 144 | [1] | 125 | [1] | -229 | [1] | -85 | [1] |
Amounts reclassified from accumulated other comprehensive income | 80 | [1] | 52 | [1] | 242 | [1] | 128 | [1] |
Net Current Period Other Comprehensive Income | 224 | [1] | 177 | [1] | 13 | [1] | 43 | [1] |
Ending balance | -3,827 | [1] | -2,962 | [1] | -3,827 | [1] | -2,962 | [1] |
Accumulated Defined Benefit Pension Plans Adjustment [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Beginning balance | -3,442 | [1] | -2,730 | [1] | -3,596 | [1] | -2,852 | [1] |
Other comprehensive income (loss) before reclassifications | 103 | [1] | 4 | [1] | 103 | [1] | 28 | [1] |
Amounts reclassified from accumulated other comprehensive income | 76 | [1] | 48 | [1] | 230 | [1] | 146 | [1] |
Net Current Period Other Comprehensive Income | 179 | [1] | 52 | [1] | 333 | [1] | 174 | [1] |
Ending balance | -3,263 | [1] | -2,678 | [1] | -3,263 | [1] | -2,678 | [1] |
Change in Cumulative Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Beginning balance | -592 | [1] | -392 | [1] | -246 | [1] | -117 | [1] |
Other comprehensive income (loss) before reclassifications | 34 | [1] | 114 | [1] | -329 | [1] | -126 | [1] |
Amounts reclassified from accumulated other comprehensive income | 0 | [1] | 0 | [1] | 17 | [1] | -35 | [1] |
Net Current Period Other Comprehensive Income | 34 | [1] | 114 | [1] | -312 | [1] | -161 | [1] |
Ending balance | -558 | [1] | -278 | [1] | -558 | [1] | -278 | [1] |
Net Gains and Losses on Cash Fow Hedging Derivatives [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||||
Beginning balance | -17 | [1] | -17 | [1] | 2 | [1] | -36 | [1] |
Other comprehensive income (loss) before reclassifications | 7 | [1] | 7 | [1] | -3 | [1] | 13 | [1] |
Amounts reclassified from accumulated other comprehensive income | 4 | [1] | 4 | [1] | -5 | [1] | 17 | [1] |
Net Current Period Other Comprehensive Income | 11 | [1] | 11 | [1] | -8 | [1] | 30 | [1] |
Ending balance | ($6) | [1] | ($6) | [1] | ($6) | [1] | ($6) | [1] |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
COMPREHENSIVE_INCOME_COMPREHEN3
COMPREHENSIVE INCOME COMPREHENSIVE INCOME (Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Tax (expense) benefit | ($41) | ($130) | ($66) | ($257) | ||||
Earnings (Loss) From Continuing Operations | 386 | 224 | 908 | 532 | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Earnings (Loss) From Continuing Operations | -80 | [1] | -52 | [1] | -242 | [1] | -128 | [1] |
Accumulated Defined Benefit Pension Plans Adjustment [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Prior-service cost | -2 | [1],[2] | -1 | [1],[2] | -7 | [1],[2] | -2 | [1],[2] |
Actuarial gains (losses) | -123 | [1],[2] | -78 | [1],[2] | -370 | [1],[2] | -237 | [1],[2] |
Total pre-tax amount | -125 | [1] | -79 | [1] | -377 | [1] | -239 | [1] |
Tax (expense) benefit | 49 | [1] | 31 | [1] | 147 | [1] | 93 | [1] |
Earnings (Loss) From Continuing Operations | -76 | [1] | -48 | [1] | -230 | [1] | -146 | [1] |
Business Acquisitions/Divestitures [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Business acquisitions/divestitures | ' | ' | -17 | [1] | 48 | [1] | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Tax (expense) benefit | ' | ' | 0 | [1] | -13 | [1] | ||
Change in Cumulative Foreign Currency Translation Adjustments [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Earnings (Loss) From Continuing Operations | ' | ' | -17 | [1] | 35 | [1] | ||
Net Gains and Losses on Cash Fow Hedging Derivatives [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total pre-tax amount | -6 | [1] | -6 | [1] | 7 | [1] | -27 | [1] |
Tax (expense) benefit | 2 | [1] | 2 | [1] | -2 | [1] | 10 | [1] |
Earnings (Loss) From Continuing Operations | -4 | [1] | -4 | [1] | 5 | [1] | -17 | [1] |
Net Gains and Losses on Cash Fow Hedging Derivatives [Member] | Foreign Exchange Forward [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Foreign exchange contracts | -6 | [1],[3] | -6 | [1],[3] | 7 | [1],[3] | -16 | [1],[3] |
Net Gains and Losses on Cash Fow Hedging Derivatives [Member] | Commodity Contract [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Foreign exchange contracts | ' | ' | ' | ($11) | [1],[3] | |||
[1] | Amounts in parentheses indicate debits to earnings/loss. | |||||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 16 for additional details). | |||||||
[3] | This accumulated other comprehensive income component is included in our derivatives and hedging activities (see Note 15 for additional details). |
EARNINGS_PER_SHARE_ATTRIBUTABL2
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ' | ' | ' | ' | ||||
Earnings (loss) from continuing operations | $392 | $223 | $919 | $524 | ||||
Effect of dilutive securities (a) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Earnings (loss) from continuing operations - assuming dilution | $392 | $223 | $919 | $524 | ||||
Average common shares outstanding | 445.9 | 435.1 | 444.1 | 434.7 | ||||
Average common shares outstanding - assuming dilution | 449.7 | 439.8 | 448.7 | 439.7 | ||||
Basic earnings (loss) from continuing operations per common share | $0.88 | $0.51 | $2.07 | $1.20 | ||||
Diluted earnings (loss) from continuing operations per common share | $0.87 | $0.51 | $2.05 | $1.19 | ||||
Restricted Stock Performance Share Plan [Member] | ' | ' | ' | ' | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ' | ' | ' | ' | ||||
Effect of dilutive securities (in shares) | 3.6 | [1] | 4.7 | [1] | 4.3 | [1] | 5 | [1] |
Stock Options [Member] | ' | ' | ' | ' | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ' | ' | ' | ' | ||||
Effect of dilutive securities (in shares) | 0.2 | [1],[2] | 0 | [1],[2] | 0.3 | [1],[2] | 0 | [1],[2] |
[1] | Securities are not included in the table in periods when antidilutive. | |||||||
[2] | Options to purchase 10.7 million shares for the three months ended SeptemberB 30, 2012 and 9.4 million shares for the nine months ended SeptemberB 30, 2012 were not included in the computation of diluted common shares outstanding because their exercise price exceeded the average market price of the Companybs common stock for each respective reporting period. |
EARNINGS_PER_SHARE_ATTRIBUTABL3
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Parenthetical) (Details) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Earnings Per Share, Basic and Diluted [Line Items] | ' | ' |
Stock options, options to purchase shares not included in the computation of diluted common shares outstanding | 10.7 | 9.4 |
RESTRUCTURING_AND_OTHER_CHARGE2
RESTRUCTURING AND OTHER CHARGES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | $76 | ($4) | $59 | $33 | $21 | $34 | $131 | $88 |
Restructuring and other charges, after tax | 47 | -2 | 36 | 24 | 13 | 23 | ' | ' |
Early Debt Extinguishment Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 15 | 3 | 6 | 13 | 10 | 16 | ' | ' |
Restructuring and other charges, after tax | 9 | 2 | 4 | 8 | 6 | 10 | ' | ' |
XPEDX Restructuring [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 6 | 17 | 7 | 8 | 10 | 19 | 30 | ' |
Restructuring and other charges, after tax | 4 | 10 | 4 | 4 | 6 | 14 | ' | ' |
xpedx Transaction Costs [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 11 | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges, after tax | 7 | ' | ' | ' | ' | ' | ' | ' |
Courtland Mill Shutdown [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 51 | ' | ' | ' | ' | ' | 51 | ' |
Restructuring and other charges, after tax | 31 | ' | ' | ' | ' | ' | ' | ' |
CTA Bellevue facility closure [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | -9 | ' | ' | ' | ' | ' | -9 | ' |
Restructuring and other charges, after tax | -6 | ' | ' | ' | ' | ' | ' | ' |
Insurance Reimbursements [Member] | Tepper Versus Temple Inland [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | -30 | ' | ' | ' | ' | ' | ' |
Restructuring and other charges, after tax | ' | -19 | ' | ' | ' | ' | ' | ' |
Augusta Mill Paper Machine Shutdown [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | 44 | ' | ' | ' | 45 | ' |
Restructuring and other charges, after tax | ' | ' | 27 | ' | ' | ' | ' | ' |
EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | ' | 16 | ' | ' | ' | 16 |
Restructuring and other charges, after tax | ' | ' | ' | 11 | ' | ' | ' | ' |
Other Restructuring and Other Charges [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 2 | 6 | 2 | -4 | 1 | -1 | ' | ' |
Restructuring and other charges, after tax | $2 | $5 | $1 | $1 | $1 | ($1) | ' | ' |
RESTRUCTURING_AND_OTHER_CHARGE3
RESTRUCTURING AND OTHER CHARGES (Narrative)(Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | $76 | ($4) | $59 | $33 | $21 | $34 | $131 | $88 |
Restructuring and other charges, after tax | $47 | ($2) | $36 | $24 | $13 | $23 | ' | ' |
ACQUISITIONS_AND_JOINT_VENTURE2
ACQUISITIONS AND JOINT VENTURES (Fair Value of Assets and Liabilities Acquired) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2007 | Jan. 14, 2013 | Jan. 02, 2013 | Feb. 13, 2012 |
In Millions, unless otherwise specified | Orsa IP [Member] | Olmuksan Joint Venture [Member] | Temple Inland Inc [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash and temporary investments | ' | ' | ' | ' | $16 | $5 | ' |
Accounts and notes receivable | ' | ' | ' | ' | 5 | 72 | 466 |
Inventory | ' | ' | ' | ' | 27 | 31 | 484 |
Deferred income tax assets - current | ' | ' | ' | ' | ' | ' | 140 |
Other current assets | ' | ' | ' | ' | ' | 2 | 57 |
Plants, property and equipment | ' | ' | ' | ' | 290 | 105 | 2,911 |
Goodwill | 4,491 | 4,315 | ' | ' | 220 | ' | 2,139 |
Investments | ' | ' | ' | ' | ' | 11 | ' |
Financial assets of special purpose entities | ' | ' | 2,090 | ' | ' | ' | 2,091 |
Other intangible assets | ' | ' | ' | ' | 110 | ' | 693 |
Deferred charges and other assets | ' | ' | ' | ' | ' | ' | 54 |
Other long-term assets | ' | ' | ' | ' | 3 | ' | ' |
Total assets acquired | ' | ' | ' | ' | 671 | 226 | 9,035 |
Notes payable and current maturities of long-term debt | ' | ' | ' | ' | ' | 17 | 130 |
Accounts payable and accrued liabilities | ' | ' | ' | ' | 10 | 27 | 704 |
Long-term debt | ' | ' | ' | ' | ' | ' | 527 |
Nonrecourse financial liabilities of special purpose entities | ' | ' | ' | 2,030 | ' | ' | 2,030 |
Deferred income tax liability | ' | ' | ' | ' | 56 | 4 | 1,252 |
Pension benefit obligation | ' | ' | ' | ' | ' | ' | 338 |
Postretirement and postemployment benefit obligation | ' | ' | ' | ' | ' | 6 | 99 |
Other liabilities | ' | ' | ' | ' | ' | ' | 221 |
Total liabilities assumed | ' | ' | ' | ' | 66 | 54 | 5,301 |
Non-controlling interest | ' | ' | ' | ' | 134 | 18 | ' |
Net assets acquired, less noncontrolling interest | ' | ' | ' | ' | 471 | 154 | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | $3,734 |
ACQUISITIONS_AND_JOINT_VENTURE3
ACQUISITIONS AND JOINT VENTURES (Identifiable Finite and Indefinite Intangible Assets Acquired in Connection with Acquisition) (Details) (USD $) | Jan. 14, 2013 | Jan. 14, 2013 | Jan. 14, 2013 | Jan. 14, 2013 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Feb. 13, 2012 |
In Millions, unless otherwise specified | Orsa IP [Member] | Orsa IP [Member] | Orsa IP [Member] | Orsa IP [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] |
Customer Relationships [Member] | Trademarks [Member] | Supply Commitment [Member] | Trade names [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Favorable Contracts [Member] | Favorable Contracts [Member] | Favorable Contracts [Member] | Non-Compete Agreements [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Finite-lived and Indefinite-Lived Intangible Assets Acquired as Part of a Business Combination [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired finite-lived intangible asset, amount | ' | $88 | $3 | $19 | ' | ' | $536 | ' | ' | $8 | ' | ' | $14 | ' | ' | $26 |
Indefinite-lived intangible asset, amount | ' | ' | ' | ' | ' | 109 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired finite and indefinite lived intangible asset, amount | $110 | ' | ' | ' | $693 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average remaining useful life, years | ' | '12 years | '6 years | '25 years | ' | ' | ' | '12 years | '17 years | ' | '5 years | '10 years | ' | '4 years | '7 years | '2 years |
ACQUISITIONS_AND_JOINT_VENTURE4
ACQUISITIONS AND JOINT VENTURES (Pro Forma Information on Consolidated Results Operations Related to Acquisitions) (Details) (Temple Inland Inc [Member], USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2012 | |
Temple Inland Inc [Member] | ' | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | |
Net sales | $21,050 | |
Earnings (loss) from continuing operations (a) | 567 | [1] |
Net earnings (loss) (a) | $602 | [1] |
Diluted earnings (loss) from continuing operations per common share (a) | $1.29 | [1] |
Diluted net earnings (loss) per common share (a) | $1.37 | [1] |
[1] | Attributable to International Paper Company common shareholders. |
ACQUISITIONS_AND_JOINT_VENTURE5
ACQUISITIONS AND JOINT VENTURES (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Feb. 13, 2012 | Feb. 13, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 14, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jan. 02, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Jan. 02, 2013 |
Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Temple Inland Inc [Member] | Orsa IP [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Minimum [Member] | Maximum [Member] | Parent Company [Member] | Parent Company [Member] | ||||||
T | Facilities | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | Olmuksan Joint Venture [Member] | |||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, gross | $7,920 | ' | $7,920 | ' | $7,744 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire businesses, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' |
Business combination, step acquisition, equity interest in acquiree, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.70% | 43.70% | ' | ' | ' | ' |
Fair value of equity interest in acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | ' | 75 | ' | ' | ' | ' | ' | ' |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87.40% |
Foreign currency transaction gain (loss), realized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Long-term Revenue Growth Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 9.00% | ' | ' |
Fair Value Inputs, Corporate Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain (loss) on acquisition of business | 0 | 0 | 13 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 18 | 22 | ' | ' | ' | ' | ' | ' |
Outstanding common stock acquired, price per share | ' | ' | ' | ' | ' | $32 | $32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of business, debt assumed | ' | ' | ' | ' | ' | 700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mills required to be divested | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tons of aggregate capacity to be divested | ' | ' | ' | ' | ' | ' | 970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-up of inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-up of inventory, after tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Integration costs associated with acquisition | ' | ' | ' | ' | ' | ' | ' | 24 | 58 | ' | 50 | 136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination integration related costs, after tax | ' | ' | ' | ' | ' | ' | ' | 15 | 34 | ' | 31 | 89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of interest acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Containerboard mills acquired in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Box plants acquired in business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of business, purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $471 | ' | ' | ' | $154 | ' | ' | ' | ' | ' |
BUSINESSES_HELD_FOR_SALE_DIVES1
BUSINESSES HELD FOR SALE, DIVESTITURES AND IMPAIRMENTS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Feb. 13, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Apr. 02, 2013 | Mar. 27, 2013 |
Temple Inland Building Products Business [Member] | Temple Inland Building Products Business [Member] | Containerboard Mills [Member] | Containerboard Mills [Member] | Containerboard Mills [Member] | Hueneme Mill [Member] | Shorewood Divestiture [Member] | Shorewood Divestiture [Member] | Shorewood Divestiture [Member] | Deltic Timber Corporation (Deltic) [Member] | Andhra Pradesh Paper Mills Limited [Member] | Andhra Pradesh Paper Mills Limited [Member] | Georgia-Pacific [Member] | Georgia-Pacific [Member] | Georgia-Pacific [Member] | ||||||
Facilities | Temple Inland Building Products Business [Member] | Temple Inland Building Products Business [Member] | Temple Inland Building Products Business [Member] | Temple Inland Building Products Business [Member] | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of facilities to be sold | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from divestitures | ' | ' | $733 | $474 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $733 | ' | ' |
Significant acquisitions and disposals, acquisition costs or sale proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' |
Disposal group, transfer of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Disposal of business, contractual sale price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710 | 750 |
Assets of businesses held for sale | 0 | ' | 0 | ' | 759 | ' | 759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, gross | 7,920 | ' | 7,920 | ' | 7,744 | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired finite and indefinite lived intangible asset, amount | ' | ' | ' | ' | ' | ' | 153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities of businesses held for sale | 0 | ' | 0 | ' | 44 | ' | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disposal group, not discontinued operation, gain (loss) on disposal | -1 | -18 | -1 | -89 | ' | ' | ' | -19 | -9 | -28 | ' | -6 | 7 | -1 | ' | ' | ' | ' | ' | ' |
Disposal group, not discontinued operation, gain (loss) on disposal, net of tax | ' | ' | ' | ' | ' | ' | ' | -49 | -5 | ' | ' | -4 | 6 | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain (loss) on acquisition of business | 0 | 0 | 13 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0 | ' | ' | ' |
Impairment of long-lived assets to be disposed of | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets to be disposed of, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUPPLEMENTAL_FINANCIAL_STATEME2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Temporary Investments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Temporary investments | $1,545 | $934 |
SUPPLEMENT_FINANCIAL_STATEMENT
SUPPLEMENT FINANCIAL STATEMENT INFORMATION (Accounts and Notes Receivable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts and notes receivable | $4,024 | $3,562 |
Trade [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts and notes receivable | 3,717 | 3,316 |
Other Non-Trade Receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts and notes receivable | $307 | $246 |
SUPPLEMENTAL_FINANCIAL_STATEME3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Inventories by Major Category) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $410 | $360 |
Finished pulp, paper and packaging | 1,792 | 1,728 |
Operating supplies | 571 | 588 |
Other | 68 | 54 |
Inventory, Net | $2,841 | $2,730 |
SUPPLEMENTAL_FINANCIAL_STATEME4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Depreciation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Depreciation Expense [Line Items] | ' | ' | ' | ' |
Depreciation expense | $365 | $347 | $1,081 | $1,045 |
SUPPLEMENTAL_FINANCIAL_STATEME5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Valuation Accounts) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
In Millions, unless otherwise specified | National Envelope [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Accumulated depreciation | $19,826 | $18,934 | ' |
Allowance for doubtful accounts | 138 | 119 | 28 |
Accounts Receivable, Net, Current | ' | ' | $42 |
SUPPLEMENTAL_FINANCIAL_STATEME6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Cash Payments Related to Interest) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Payments [Line Items] | ' | ' |
Interest payments | $537 | $496 |
SUPPLEMENTAL_FINANCIAL_STATEME7
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Schedule of Interest Income and Interest Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Interest Income and Interest Expense [Line Items] | ' | ' | ' | ' | ||||
Interest expense | $162 | [1] | $197 | [1] | $520 | [1] | $559 | [1] |
Interest income | 15 | [1] | 34 | [1] | 41 | [1] | 56 | [1] |
Capitalized interest costs | $4 | $10 | $12 | $29 | ||||
[1] | Interest expense and interest income exclude approximately $11 million and $35 million for the three months and nine months ended SeptemberB 30, 2013 and $15 million and $35 million for the three months and nine months ended SeptemberB 30, 2012, respectively, related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). |
SUPPLEMENTAL_FINANCIAL_STATEME8
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Components of Postretirement Benefit Expense) (Details) (Postretirement benefit expense [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Postretirement benefit expense [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $0 | $1 | $1 | $2 |
Interest cost | 4 | 5 | 11 | 15 |
Actuarial loss | 2 | 3 | 5 | 8 |
Amortization of prior service credit | -6 | -8 | -18 | -22 |
Net periodic benefit expense | $0 | $1 | ($1) | $3 |
SUPPLEMENTAL_FINANCIAL_STATEME9
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Schedule of Interest Income and Interest Expense) (Parenthetical) (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ' | ' | ' | ' |
Amounts Related To Interest [Line Items] | ' | ' | ' | ' |
Interest expense and interest income excluded, amount | ($11) | ($15) | ($35) | ($35) |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES (Changes in Goodwill Balances) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | ' | ' | |
Beginning balance | $7,744 | ' | |
Accumulated impairment losses (a) | -3,429 | [1] | ' |
Total | 4,491 | 4,315 | |
Reclassifications and other (b) | -60 | [2] | ' |
Additions/reductions | 236 | ' | |
Ending balance | 7,920 | ' | |
Accumulated impairment losses (a) | -3,429 | [1] | ' |
Industrial Packaging [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Beginning balance | 3,165 | ' | |
Accumulated impairment losses (a) | 0 | [1] | ' |
Total | 3,405 | 3,165 | |
Reclassifications and other (b) | -13 | [2] | ' |
Additions/reductions | 253 | [3] | ' |
Ending balance | 3,405 | ' | |
Accumulated impairment losses (a) | 0 | [1] | ' |
Printing Papers [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Beginning balance | 2,396 | ' | |
Accumulated impairment losses (a) | -1,765 | [1] | ' |
Total | 565 | 631 | |
Reclassifications and other (b) | -49 | [2] | ' |
Additions/reductions | -17 | [4] | ' |
Ending balance | 2,330 | ' | |
Accumulated impairment losses (a) | -1,765 | [1] | ' |
Consumer Packaging [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Beginning balance | 1,783 | ' | |
Accumulated impairment losses (a) | -1,664 | [1] | ' |
Total | 121 | 119 | |
Reclassifications and other (b) | 2 | [2] | ' |
Additions/reductions | 0 | ' | |
Ending balance | 1,785 | ' | |
Accumulated impairment losses (a) | -1,664 | [1] | ' |
Distribution [Member] | ' | ' | |
Goodwill [Line Items] | ' | ' | |
Beginning balance | 400 | ' | |
Accumulated impairment losses (a) | 0 | [1] | ' |
Total | 400 | 400 | |
Reclassifications and other (b) | 0 | [2] | ' |
Additions/reductions | 0 | ' | |
Ending balance | 400 | ' | |
Accumulated impairment losses (a) | $0 | [1] | ' |
[1] | (a)Represents accumulated goodwill impairment charges since the adoption of ASC 350, bIntangibles b Goodwill and Otherb in 2002. | ||
[2] | (b)Represents the effects of foreign currency translations and reclassifications. | ||
[3] | (c)Reflects $220 million for Orsa IP, the newly formed joint venture in Brazil, and the adjustment of $54 million ($33 million after-tax impact to goodwill) previously included as a trade name intangible asset in Deferred Charges and Other Assets on the balance sheet. | ||
[4] | (d)Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite and indefinite-lived intangible assets | $946 | $1,080 |
Accumulated amortization | 259 | 214 |
Customer Relationships and Lists [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite-lived intangible assets | 634 | 644 |
Accumulated amortization | 138 | 112 |
Non-Compete Agreements [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite-lived intangible assets | 76 | 83 |
Accumulated amortization | 41 | 30 |
Tradenames, Patents and Trademarks [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite and indefinite-lived intangible assets | 77 | 144 |
Accumulated amortization | 18 | 16 |
Land and Water Rights [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite and indefinite-lived intangible assets | 75 | 87 |
Accumulated amortization | 7 | 6 |
Fuel and Power Agreements [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite-lived intangible assets | 11 | 17 |
Accumulated amortization | 6 | 12 |
Software [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite-lived intangible assets | 24 | 22 |
Accumulated amortization | 22 | 19 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount, finite-lived intangible assets | 49 | 83 |
Accumulated amortization | $27 | $19 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Amortization Expense of Intangible Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization of Intangible Assets | $30 | $28 | $66 | $43 |
GOODWILL_AND_OTHER_INTANGIBLES3
GOODWILL AND OTHER INTANGIBLES GOODWILL AND OTHER INTANGIBLES (Changes in Goodwill Balances) (Parenthetical) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Goodwill [Line Items] | ' | |
Additions/reductions | $236 | |
Orsa IP [Member] | ' | |
Goodwill [Line Items] | ' | |
Additions/reductions | 220 | [1] |
Temple Inland Inc [Member] | ' | |
Goodwill [Line Items] | ' | |
Additions/reductions | 33 | [1] |
Additions/reductions, before tax | $54 | [1] |
[1] | (c)Reflects $220 million for Orsa IP, the newly formed joint venture in Brazil, and the adjustment of $54 million ($33 million after-tax impact to goodwill) previously included as a trade name intangible asset in Deferred Charges and Other Assets on the balance sheet. |
INCOME_TAXES_Income_Tax_Paymen
INCOME TAXES (Income Tax Payments Net of Refunds) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Payments [Line Items] | ' | ' |
Income tax payments,net | $224 | $41 |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES (Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 |
Schedule of Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Line Items] | ' | ' | ' |
Beginning balance, unrecognized tax benefits | ' | ' | ($972) |
Activity for three months, unrecognized tax benefits | 29 | 6 | 99 |
Ending balance, unrecognized tax benefits | -838 | ' | ' |
Beginning balance, accrued estimated interest and tax penalties | ' | ' | -104 |
Activity for three months, accrued estimated interest and tax penalties | 13 | 1 | 20 |
Ending balance, accrued estimated interest and tax penalties | ($70) | ' | ' |
INCOME_TAXES_Components_of_Net
INCOME TAXES (Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | ($197) | ($81) |
Other Restructuring and Other Charges [Member] | ' | ' |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | -77 | -87 |
Acquisition-Related Costs [Member] | ' | ' |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | 0 | 3 |
Settlement With Taxing Authority [Member] | ' | ' |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | -122 | 0 |
Business Restructuring Reserves [Member] | ' | ' |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | 0 | 3 |
Other Expense [Member] | ' | ' |
Tax Special Items [Line Items] | ' | ' |
Income Tax Provision Benefit Related To Special Items | $2 | $0 |
INCOME_TAXES_Narrative_Detail
INCOME TAXES (Narrative) (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Estimated reduction of unrecognized tax benefits | $720 | ' |
Estimated reduction of unrecognized tax benefits that will impact the effective tax rate | 650 | ' |
Income Tax Provision Benefit Related To Special Items | ($197) | ($81) |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Environmental Remediation Obligations) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Cass Lake, Minnesota [Member] | Cass Lake, Minnesota [Member] | Kalamazoo River Superfund Site [Member] | Harris County San Jacinto River Superfund Site [Member] | Bogalusa Louisiana [Member] | Bogalusa Louisiana [Member] | Bogalusa Louisiana [Member] | Bogalusa Louisiana [Member] | Bogalusa Louisiana [Member] | Minimum [Member] | Maximum [Member] | ||
Louisiana and Mississippi [Member] | Louisiana and Mississippi [Member] | Louisiana [Member] | Biochemical Oxygen Demand (BOD) Limits Exceeded [Member] | Clean Water Act Violation [Member] | Harris County San Jacinto River Superfund Site [Member] | Harris County San Jacinto River Superfund Site [Member] | ||||||
Site Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental loss contingencies | $95,000,000 | $52,000,000 | $46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation on closed or formerly-owned facilities, recorded as liabilities in balance sheet | 43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Damages Sought, Value | ' | ' | ' | 79,000,000 | ' | ' | ' | ' | ' | ' | 50 | 25,000 |
Number of plaintiffs seeking damages | ' | ' | ' | ' | 659 | ' | ' | ' | ' | ' | ' | ' |
Accrual for environmental loss contingencies, payments | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | $3,300,000 | ' | ' |
Number of claims filed | ' | ' | ' | ' | ' | 13 | 28 | 15 | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Litigation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
Kleen Products Llc Versus Packaging Corp of America [Member] | Kleen Products Llc Versus Packaging Corp of America [Member] | Gypsum Board Class Action [Member] | Gypsum Board Class Action [Member] | Gypsum Board Class Action [Member] | Gypsum Board Class Action [Member] | |||||||||
Pennsylvania [Member] | Illinois [Member] | Pennsylvania and Illinois [Member] | ||||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ($76) | $4 | ($59) | ($33) | ($21) | ($34) | ($131) | ($88) | ' | ' | ' | ' | ' | ' |
Income tax examination, estimate of possible loss | ' | ' | ' | ' | ' | ' | $29 | ' | ' | ' | ' | ' | ' | ' |
Number of claims filed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 3 | 2 | 1 | 25 |
Loss contingency, number of defendants | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' |
VARIABLE_INTEREST_ENTITIES_AND2
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Activity Between Company and Entities) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Cash receipts | ' | ' | $0 | ($45) | ||||
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | 2 | ' | 5 | 5 | ||||
Accretion income for amortization of purchase accounting adjustment, financial assets | 5 | ' | 14 | 12 | ||||
Entities [Member] | ' | ' | ' | ' | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Revenue | 11 | [1] | 15 | [1] | 35 | [1] | 35 | [1] |
Expense | 20 | [1] | 28 | [1] | 61 | [1] | 68 | [1] |
Cash receipts | 14 | [2] | 21 | [2] | 33 | [2] | 36 | [2] |
Cash payments | 39 | [3] | 47 | [3] | 84 | [3] | 87 | [3] |
2007 Financing Entities [Member] | ' | ' | ' | ' | ||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ||||
Revenue | 6 | [4] | 15 | [4] | 20 | [4] | 21 | [4] |
Expense | 7 | [5] | 11 | [5] | 22 | [5] | 20 | [5] |
Cash receipts | 2 | [6] | 3 | [6] | 6 | [6] | 10 | [6] |
Cash payments | $5 | [7] | $6 | [7] | $16 | [7] | $16 | [7] |
[1] | The net expense related to the Companybs interest in the Entities is included in the accompanying consolidated statement of operations, as International Paper has and intends to affect its legal right to offset as discussed above. | |||||||
[2] | The cash receipts are equity distributions from the Entities to International Paper. | |||||||
[3] | The semi-annual payments are related to interest on the associated debt obligations discussed above. | |||||||
[4] | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three months and nine months ended SeptemberB 30, 2013, respectively, and $12 million for the three months and nine months ended SeptemberB 30, 2012, respectively, of accretion income for the amortization of the purchase accounting adjustment on the Financial assets of special purpose entities. | |||||||
[5] | The expense is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $2 million and $5 million for the three months and nine months ended SeptemberB 30, 2013, respectively, and $5 million for the three months and nine months ended SeptemberB 30, 2012, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | |||||||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | |||||||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE_INTEREST_ENTITIES_AND3
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | 5 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||||||||
Oct. 31, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2007 | Oct. 31, 2007 | Dec. 31, 2006 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2006 | Sep. 30, 2013 | Dec. 31, 2006 | Jun. 21, 2012 | Oct. 07, 2011 | Sep. 30, 2013 | Mar. 27, 2013 | Mar. 30, 2003 | 31-May-02 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 21, 2012 | Dec. 19, 2012 | Mar. 31, 2012 | Jan. 23, 2012 | Mar. 31, 2012 | Jan. 23, 2012 | Feb. 29, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Feb. 10, 2012 | Nov. 22, 2011 | |
acre | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | 2007 Financing Entities [Member] | Preferred Securities Of Subsidiaries [Member] | Preferred Securities Of Subsidiaries [Member] | 2002 Financing Entities [Member] | Financial Assets [Member] | Financial Liabilities [Member] | Barclays Private Limited Company [Member] | Barclays Private Limited Company [Member] | B N P Paribas [Member] | Societe Generale Sa [Member] | Societe Generale Sa [Member] | Societe Generale Sa [Member] | Societe Generale Sa [Member] | Royal Bank Of Scotland Group Plc [Member] | Royal Bank Of Scotland Group Plc [Member] | Royal Bank Of Scotland Group Plc [Member] | Royal Bank Of Scotland Group Plc [Member] | Royal Bank Of Scotland Group Plc [Member] | ||||||
Class B Interests In Entities [Member] | Class B Interests In Entities [Member] | Class B Interests In Entities [Member] | acre | B N P Paribas [Member] | Royal Bank Of Scotland Group Plc [Member] | acre | Variable Interest Entity, Not Primary Beneficiary [Member] | Two Thousand Seven Monetized Notes [Member] | Two Thousand Seven Monetized Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Two Thousand Seven Monetized Notes [Member] | Two Thousand Seven Monetized Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | Timber Notes [Member] | ||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forestlands acreage sales | 1,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of consideration received | ' | ' | ' | ' | ' | ' | $2,380,000,000 | $4,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution of Class A interests in the Borrower Entities to other newly formed entities in December 2006 | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution of International Paper promissory notes, to other newly formed entities | ' | ' | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B interests held in entities in December 2006 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit downgrade period of replacement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 day | ' | ' |
Entities acquired International Paper debt obligations for cash | ' | ' | ' | ' | ' | ' | ' | 4,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
International Paper debt obligations held by the Entities | ' | 9,683,000,000 | 9,683,000,000 | ' | ' | ' | ' | 5,200,000,000 | 5,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest, offset against related debt obligations of the entities | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of the borrowing included in long-term debt | ' | 8,900,000,000 | 8,900,000,000 | ' | 9,696,000,000 | 2,140,000,000 | ' | ' | 76,000,000 | 79,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt included in notes payable and current maturities | ' | 783,000,000 | 783,000,000 | ' | 444,000,000 | ' | ' | ' | 79,000,000 | 79,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit issued that support Timber Notes | 2,380,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 707,000,000 | 1,600,000,000 | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | 666,000,000 | ' | 506,000,000 | ' | ' | 797,000,000 | 135,000,000 | 707,000,000 |
Replacement fees incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | 5,000,000 | ' | 2,000,000 | ' | 5,000,000 | 5,000,000 | ' | ' | ' |
The percent of letters of credit supporting Timber Notes and Monetized Note that are cash collateralized | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transferred notes (the Monetized Notes) and cash to entities in exchange for preferred interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term notes, maturity term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes receivable as of acquisition date | ' | ' | ' | 2,090,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable, fair value disclosure | ' | 2,510,000,000 | 2,510,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of financial assets as of acquisition date | ' | ' | ' | ' | ' | 2,030,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, fair value | ' | 2,390,000,000 | 2,390,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred third-party interest, included in noncontrolling interest | ' | 312,000,000 | 312,000,000 | ' | 332,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forestlands acres held in United States initially by Southeast timber | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions under preferred securities to third party investors | ' | 1,000,000 | 1,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred securities issued to a private investor with future dividend payments based on LIBOR in March 2003 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, translation and purchase accounting adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $292,000,000 | ($110,000,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days notice to terminate replacement waiver | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Debt_ExtinguishmentDetail
DEBT (Debt Extinguishment)(Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Extinguishment of Debt [Line Items] | ' | ' | ' | ' | ||||
Debt reductions | $442 | [1] | $611 | [1] | $500 | [1] | $1,047 | [1] |
Pre-tax early debt extinguishment costs | $15 | [2] | $13 | [2] | $24 | [2] | $39 | [2] |
Original maturity date range, minimum | '2014 | '2017 | '2014 | '2012 | ||||
Original maturity date range, maximum | '2033 | '2023 | '2033 | '2023 | ||||
[1] | Reductions related to notes with interest rates ranging from 5.45% to 7.40% with original maturities from 2014 to 2033 and from 1.63% to 6.95% with original maturities from 2017 to 2023 for the three months ended SeptemberB 30, 2013 and 2012, respectively, and 5.20% to 7.95% with original maturities from 2014 to 2033 and from 1.63% to 7.95% with original maturities from 2012 to 2023 for the nine months ended SeptemberB 30, 2013 and SeptemberB 30, 2012, respectively. | |||||||
[2] | Amounts are included in Restructuring and Other Charges in the accompanying consolidated statements of operations. |
DEBT_Debt_Extinguishment_Paren
DEBT (Debt Extinguishment) (Parenthetical)(Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Extinguishment of Debt [Line Items] | ' | ' | ' | ' |
Debt instrument, interest rate, stated percentage rate range, minimum | 5.45% | 1.63% | 5.20% | 1.63% |
Debt instrument, interest rate, stated percentage rate range, maximum | 7.40% | 6.95% | 7.95% | 7.95% |
Original maturity date range, minimum | '2014 | '2017 | '2014 | '2012 |
Original maturity date range, maximum | '2033 | '2023 | '2033 | '2023 |
DEBT_Narrative_Detail
DEBT (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Feb. 29, 2012 | Sep. 30, 2012 | Feb. 29, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | |||||
Subsequent Event [Member] | London Inner Bank Offering Rate Plus Margin Of One Hundred And Seventy Five Basis Points [Member] | London Inner Bank Offering Rate Plus Margin Of One Hundred And Seventy Five Basis Points [Member] | London Inner Bank Offering Rate Plus Margin Of One Hundred And Thirty Eight Basis Points [Member] | London Inner Bank Offering Rate Plus Margin Of One Hundred And Thirty Eight Basis Points [Member] | London Inner Bank Offering Rate Plus Margin Of One Hundred And Thirty Eight Basis Points [Member] | Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Term loan | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | $1,200,000,000 | ' | ' | ||||
Maturity date | ' | ' | ' | ' | ' | 31-Dec-17 | ' | 31-Dec-17 | ' | ' | ' | ||||
Pre-tax early debt extinguishment costs | 15,000,000 | [1] | 13,000,000 | [1] | 24,000,000 | [1] | 39,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' |
Base points margin | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | 1.38% | 0.70% | ||||
Debt instrument, interest rate, stated percentage rate range, minimum | 5.45% | 1.63% | 5.20% | 1.63% | 4.55% | ' | ' | ' | ' | ' | ' | ||||
Debt instrument, interest rate, stated percentage rate range, maximum | 7.40% | 6.95% | 7.95% | 7.95% | 6.75% | ' | ' | ' | ' | ' | ' | ||||
Debt and capital lease obligations | 9,683,000,000 | ' | 9,683,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Debt fair value | 11,000,000,000 | ' | 11,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Original maturity date range, minimum | '2014 | '2017 | '2014 | '2012 | '2015 | ' | ' | ' | ' | ' | ' | ||||
Original maturity date range, maximum | '2033 | '2023 | '2033 | '2023 | '2031 | ' | ' | ' | ' | ' | ' | ||||
Debt Instrument, Increase (Decrease), Net | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ||||
Proceeds from Issuance of Secured Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $225,000,000 | ||||
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.22% | ||||
[1] | Amounts are included in Restructuring and Other Charges in the accompanying consolidated statements of operations. |
DERIVATIVES_AND_HEDGING_ACTIVI2
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments) (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | ||||||||||
In Millions, unless otherwise specified | Embedded Derivative [Member] | Embedded Derivative [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Foreign exchange contracts to sell indian rupee for u s dollar | Foreign exchange contracts to sell indian rupee for u s dollar | Foreign exchange contracts to sell thai baht for u s dollar | Foreign exchange contracts to sell thai baht for u s dollar | Foreign exchange contracts to sell u s dollar for turkish iira | Foreign exchange contracts to sell u s dollar for turkish iira | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | ||||||||||
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign exchange contracts to sell brazilian real for u s dollar | Foreign exchange contracts to sell brazilian real for u s dollar | Foreign exchange contracts to sell british pounds for brazilian real | Foreign exchange contracts to sell british pounds for brazilian real | Foreign exchange contracts to sell european euro for brazilian real | Foreign exchange contracts to sell european euro for brazilian real | Foreign exchange contracts to sell european euro for polish zloty | Foreign exchange contracts to sell european euro for polish zloty | Foreign exchange contracts to sell u s dollar for brazilian real | Foreign exchange contracts to sell u s dollar for brazilian real | Zero cost collar to sell u s dollar for brazilian real | Zero cost collar to sell u s dollar for brazilian real | |||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | ZeroCostCollarDerivativeMember [Member] | ZeroCostCollarDerivativeMember [Member] | |||||||||||
INR | INR | THB | THB | USD ($) | USD ($) | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | |||||||||||||||
BRL | BRL | GBP (£) | GBP (£) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Derivative Notional Amount | $0 | $150 | $0 | $150 | [1] | 157 | [2] | 140 | 36 | [2] | 261 | $0 | [2] | $56 | 543 | [3] | 0 | £ 16 | [3] | £ 13 | € 21 | [3] | € 13 | € 263 | [3] | € 149 | $335 | [3] | $238 | $18 | [3] | $18 |
[1] | Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative. | |||||||||||||||||||||||||||||||
[2] | These contracts had maturities of one year or less as of SeptemberB 30, 2013. | |||||||||||||||||||||||||||||||
[3] | These contracts had maturities of three years or less as of SeptemberB 30, 2013. |
DERIVATIVE_AND_HEDGING_ACTIVIT
DERIVATIVE AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments) (Parenthetical) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | |
Derivative [Line Items] | ' | ' | |
Maturity period of cash flow hedges, maximum (in years) | '1 year | ' | |
Floating to Fixed Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ' | ' | |
Derivative [Line Items] | ' | ' | |
Derivative Notional Amount | $0 | $150 | [1] |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ' | ' | |
Derivative [Line Items] | ' | ' | |
Maturity period of cash flow hedges, maximum (in years) | '3 years | ' | |
[1] | Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative. |
DERIVATIVES_AND_HEDGING_ACTIVI3
DERIVATIVES AND HEDGING ACTIVITIES (Gains Losses Recognized in Accumulated Other Comprehensive Income AOCI Net of Tax Related to Derivative Instruments) (Details) (Other Comprehensive Income (Loss) [Member], Designated as Hedging Instrument [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $7 | $7 | ($3) | $13 |
Foreign Exchange Forward [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 7 | 7 | -3 | 14 |
Commodity Contract [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $0 | $0 | $0 | ($1) |
DERIVATIVES_AND_HEDGING_ACTIVI4
DERIVATIVES AND HEDGING ACTIVITIES (Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non Qualifying Financial Instruments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Not Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | $7 | $5 | $13 | $11 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -4 | -4 | 5 | -17 |
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | 0 | 1 | 2 | -2 |
Embedded Derivative [Member] | Not Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | 0 | -1 | -1 | -3 |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | 0 | -7 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | -5 | -1 |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -4 | -4 | 5 | -10 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative, Gain (Loss) on Derivative, Net | $7 | $5 | $17 | $17 |
DERIVATIVES_AND_HEDGING_ACTIVI5
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | $23 | $9 | ||
Derivative Liabilities | 28 | 23 | ||
Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 22 | 7 | ||
Derivative Liabilities | 28 | 21 | ||
Not Designated as Hedging Instrument [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 1 | 2 | ||
Derivative Liabilities | 0 | 2 | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 0 | 1 | [1] | |
Derivative Liabilities | 0 | 0 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 0 | 0 | ||
Derivative Liabilities | 0 | 1 | [2] | |
Not Designated as Hedging Instrument [Member] | Energy Related Derivative [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 1 | [3] | 0 | |
Derivative Liabilities | 0 | 1 | [2] | |
Not Designated as Hedging Instrument [Member] | Embedded Derivative [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 0 | 1 | [1] | |
Derivative Liabilities | 0 | 0 | ||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative Assets | 22 | [4] | 7 | [5] |
Derivative Liabilities | $28 | [6] | $21 | [7] |
[1] | (d)Included in Other current assets in the accompanying consolidated balance sheet. | |||
[2] | (g)Included in Other accrued liabilities in the accompanying consolidated balance sheet. | |||
[3] | (b)Included in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[4] | (a)Includes $11 million recorded in Other current assets and $11 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[5] | (c)Includes $3 million recorded in Other current assets and $4 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[6] | (e)Includes $17 million recorded in Other accrued liabilities and $11 million recorded in Other liabilities in the accompanying consolidated balance sheet. | |||
[7] | (f)Includes $20 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
DERIVATIVES_AND_HEDGING_ACTIVI6
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet) (Parenthetical) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | $23 | $9 |
Derivative Liabilities | 28 | 23 |
Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 11 | 3 |
Deferred Charges and Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 11 | 4 |
Other Accrued Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 17 | 20 |
Other Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | $11 | $1 |
DERIVATIVES_AND_HEDGING_ACTIVI7
DERIVATIVES AND HEDGING ACTIVITIES (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Gain / (Loss) recorded to AOCI after tax, that is expected to be reclassified to earnings | ($2) | ' |
Fair values of derivative instruments containing credit risk-related contingent features in a net liability position | $2 | $18 |
RETIREMENT_PLANS_Net_Periodic_
RETIREMENT PLANS (Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Non Qualified [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Benefits paid | ' | ' | $15 | ' |
United States Pension Plans of US Entity, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 47 | 38 | 142 | 113 |
Interest cost | 143 | 154 | 430 | 452 |
Expected return on plan assets | -186 | -190 | -550 | -563 |
Actuarial loss | 121 | 76 | 365 | 230 |
Amortization of prior service cost | 9 | 8 | 26 | 24 |
Net periodic benefit expense | $134 | $86 | $413 | $256 |
RETIREMENT_PLANS_Narrative_Det
RETIREMENT PLANS (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined benefit plan employer cash contributions in current fiscal year | ' | ' | $31 | ' |
U.S. Plans | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 168 | ' | ' | ' |
Pension and postretirement liability adjustments | 103 | 4 | 103 | 28 |
Non Qualified [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Benefits paid | ' | ' | $15 | ' |
STOCKBASED_COMPENSATION_Schedu
STOCK-BASED COMPENSATION (Schedule of Stock-Based Compansation Expense Related to Income Tax Benefits) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Income tax benefits related to stock-based compensation | $3 | $0 | $70 | $40 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense (selling and administrative) | $35 | $26 | $106 | $70 |
SHAREBASED_COMPENSATION_Assump
SHARE-BASED COMPENSATION (Assumptions Used to Determine Compensation Cost for Market Condition Component of Performance Share Program Plan) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected volatility, lower limit | 25.25% | 28.39% | 25.25% | 28.39% |
Expected volatility, upper limit | 62.58% | 55.33% | 62.58% | 55.33% |
Risk-free interest rate, lower limit | 0.20% | 0.12% | 0.20% | 0.12% |
Risk-free interest rate, upper limit | 0.99% | 0.42% | 0.99% | 0.42% |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION (Summary of Performance Share Plan Activity) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Nonvested Shares | ' | |
Outstanding beginning balance, nonvested shares / units | 8,660,855 | |
Granted, nonvested shares / units | 3,148,445 | |
Shares issued, nonvested shares / units | -3,222,491.50 | [1] |
Forfeited, nonvested shares / units | -348,754 | |
Outstanding ending balance, nonvested shares / units | 8,238,054 | |
Weighted Average Grant Date Fair Value | ' | |
Outstanding beginning balance, weighted average grant date fair value | $28.37 | |
Granted, weighted average grant date fair value | $40.76 | |
Shares issued, weighted average grant date fair value | $32.48 | [1] |
Forfeited, weighted average grant date fair value | $35.06 | |
Outstanding ending balance, weighted average grant date fair value | $31.22 | |
[1] | Includes 316,274 units held for payout at the end of the performance period. |
STOCKBASED_COMPENSATION_Summar1
STOCK-BASED COMPENSATION (Summary of Performance Share Plan Activity) (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Shares held for payout | 316,273.50 |
STOCKBASED_COMPENSATION_Schedu1
STOCK-BASED COMPENSATION (Schedule of Option Activity) (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Options | ' |
Options, outstanding beginning balance | 9,136,060 |
Options, granted | 4,744 |
Options, exercised | -7,067,850 |
Options, expired | -49,637 |
Options, outstanding ending balance | 2,023,317 |
Weighted Average Exercise Price | ' |
Weighted average exercise price, outstanding beginning balance | $38.79 |
Weighted average exercise price, granted | $48.11 |
Weighted average exercise price, exercised | $38.54 |
Weighted average exercise price, expired | $35.99 |
Weighted average exercise price, outstanding ending balance | $39.74 |
Additonal Option Disclosures | ' |
Weighted average remaining life (years), outstanding ending balance | '10 months 6 days |
Aggregate intrinsic value, outstanding ending balance | $10,245 |
SHAREBASED_COMPENSATION_Summar
SHARE-BASED COMPENSATION (Summary of Restricted Stock Award Program Activity) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Nonvested Shares | ' | |
Outstanding beginning balance, nonvested shares / units | 8,660,855 | |
Granted, nonvested shares / units | 3,148,445 | |
Shares issued, nonvested shares / units | -3,222,491.50 | [1] |
Forfeited, nonvested shares / units | -348,754 | |
Outstanding ending balance, nonvested shares / units | 8,238,054 | |
Weighted Average Grant Date Fair Value | ' | |
Outstanding beginning balance, weighted average grant date fair value | $28.37 | |
Granted, weighted average grant date fair value | $40.76 | |
Shares issued, weighted average grant date fair value | $32.48 | [1] |
Forfeited, weighted average grant date fair value | $35.06 | |
Outstanding ending balance, weighted average grant date fair value | $31.22 | |
Executive Continuity and restricted Stock Award Program [Member] | ' | |
Nonvested Shares | ' | |
Outstanding beginning balance, nonvested shares / units | 151,549 | |
Granted, nonvested shares / units | 63,500 | |
Shares issued, nonvested shares / units | -81,941 | |
Forfeited, nonvested shares / units | -17,500 | |
Outstanding ending balance, nonvested shares / units | 115,608 | |
Weighted Average Grant Date Fair Value | ' | |
Outstanding beginning balance, weighted average grant date fair value | $30.49 | |
Granted, weighted average grant date fair value | $44.40 | |
Shares issued, weighted average grant date fair value | $33.04 | |
Forfeited, weighted average grant date fair value | $37.75 | |
Outstanding ending balance, weighted average grant date fair value | $35.22 | |
[1] | Includes 316,274 units held for payout at the end of the performance period. |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures | $143 |
Compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future performance, net of estimated forfeitures, weighted-average period (in years) | '1 year 9 months 15 days |
Performance Shares [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards granted to number of employees | 1,300 |
Performance Shares [Member] | Other Participants [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weight of return on investment (ROI) on awards | 75.00% |
Weight of total shareholder return (TSR) on awards | 25.00% |
Performance Shares [Member] | Officer [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Weight of return on investment (ROI) on awards | 50.00% |
Weight of total shareholder return (TSR) on awards | 50.00% |
Stock Compensation Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares available for grant under ICP | 17.7 |
INDUSTRY_SEGMENT_INFORMATION_S
INDUSTRY SEGMENT INFORMATION (Sales by Industry Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | $7,406 | $7,026 | $21,831 | $20,758 |
Industrial Packaging [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 3,755 | 3,335 | 11,095 | 9,900 |
Printing Papers [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 1,555 | 1,580 | 4,635 | 4,650 |
Consumer Packaging [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 885 | 765 | 2,570 | 2,355 |
Distribution [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | 1,445 | 1,535 | 4,235 | 4,510 |
Corporate and Intersegment Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Sales | ($234) | ($189) | ($704) | ($657) |
INDUSTRY_SEGMENT_INFORMATION_O
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating profit | $678 | $539 | $1,785 | $1,427 | ||||
Interest expense, net | -147 | -163 | -479 | [1] | -503 | |||
Noncontrolling interests/equity earnings adjustment | -3 | [2] | 0 | [2] | 1 | [2] | 8 | [2] |
Corporate items, net | -13 | -1 | -35 | -36 | ||||
Restructuring and other charges | -26 | -15 | -23 | -40 | ||||
Non-operating pension expense | -78 | -40 | -245 | -119 | ||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 411 | 320 | 1,004 | 737 | ||||
Equity earnings (loss), net of taxes | 16 | 34 | -30 | 52 | ||||
Ilim Holding [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Equity earnings (loss), net of taxes | 11 | 33 | -34 | 48 | ||||
Industrial Packaging [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating profit | 499 | [3] | 255 | [4] | 1,328 | [3] | 730 | [4] |
Printing Papers [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating profit | 93 | [5] | 202 | [6] | 318 | [5] | 452 | [6] |
Consumer Packaging [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating profit | 73 | [7] | 67 | [8] | 131 | [7] | 227 | [8] |
Distribution [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Operating profit | $13 | [9] | $15 | [10] | $8 | [9] | $18 | [10] |
[1] | Includes a gain of $6 million for interest related to the settlement of an IRS tax audit. | |||||||
[2] | Operating profits for industry segments include each segmentbs percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. | |||||||
[3] | Includes charges of $24 million for the three months ended SeptemberB 30, 2013 and $50 million for the nine months ended SeptemberB 30, 2013 for integration costs associated with the acquisition of Temple-Inland, a gain of $14 million for the nine months ended SeptemberB 30, 2013 for a bargain purchase adjustment on the first quarter 2013 acquisition of a majority share of our operations in Turkey, a gain of $9 million for the three months and nine months ended SeptemberB 30, 2013 related to the sale of the box plant facility in Bellevue, Washington, and charges of $3 million for the three months ended SeptemberB 30, 2013 and $8 million for the nine months ended SeptemberB 30, 2013 for other items. | |||||||
[4] | Includes charges of $58 million and $136 million for the three months and nine months ended SeptemberB 30, 2012 for integration costs associated with the Temple-Inland acquisition, charges of $19 million and $28 million for the three months and nine months ended SeptemberB 30, 2012 for costs associated with the divestiture of three containerboard mills, charges of $16 million for the three months and nine months ended SeptemberB 30, 2012 for costs associated with the restructuring of our Packaging business in Europe, a charge of $62 million for the nine months ended SeptemberB 30, 2012 to adjust the value of the long-lived assets of the Hueneme mill in Oxnard, California to their fair value, a charge of $20 million for the nine months ended SeptemberB 30, 2012 related to the write-up of the Temple-Inland inventory to fair value, and gains of $6 million and $5 million for the three months and nine months ended SeptemberB 30, 2012 for other items. | |||||||
[5] | Includes charges of $51 million for the three months and nine months ended SeptemberB 30, 2013 for costs associated with the announced shutdown of our Courtland, Alabama mill. | |||||||
[6] | Includes a gain of $1 million for the three months ended SeptemberB 30, 2012 and a net $0 million for the nine months ended SeptemberB 30, 2012 related to the acquisition of the majority interest in Andhra Pradesh Paper Mills Limited. | |||||||
[7] | Includes charges of $45 million for the nine months ended SeptemberB 30, 2013 for costs associated with the permanent shutdown of a paper machine at our Augusta, Georgia mill. | |||||||
[8] | Includes a gain of $1 million for the nine months ended SeptemberB 30, 2012 for adjustments related to the sale of the Shorewood business. | |||||||
[9] | Includes charges of $6 million for the three months ended SeptemberB 30, 2013 and $30 million for the nine months ended SeptemberB 30, 2013 for costs associated with the restructuring of the Company's xpedx operations. | |||||||
[10] | Includes charges of $9 million and $42 million for the three months and nine months ended SeptemberB 30, 2012 for costs associated with the restructuring of the Company's xpedx operation. |
INDUSTRY_SEGMENT_INFORMATION_O1
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment) (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net (gains) losses on sales and impairments of businesses | $1 | ' | ' | $18 | ' | ' | $1 | $89 |
Net bargain purchase gain on acquisition of business | 0 | ' | ' | 0 | ' | ' | -13 | 0 |
Restructuring and other charges | 76 | -4 | 59 | 33 | 21 | 34 | 131 | 88 |
Tax Adjustments, Settlements, and Unusual Provisions | ' | ' | ' | ' | ' | ' | ' | -6 |
Temple Inland Inc [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Integration costs | 24 | ' | ' | 58 | ' | ' | 50 | 136 |
Write-up of inventory | ' | ' | ' | ' | ' | ' | ' | 20 |
Olmuksan Joint Venture [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net bargain purchase gain on acquisition of business | -4 | ' | -18 | ' | ' | ' | -22 | ' |
Total Business Combination Bargain Purchase Recognized Gain Loss Net | ' | ' | ' | ' | ' | ' | 14 | ' |
Andhra Pradesh Paper Mills Limited [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net bargain purchase gain on acquisition of business | ' | ' | ' | -1 | ' | ' | ' | 0 |
Hueneme Mill [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets to be disposed of | ' | ' | ' | ' | 62 | ' | ' | ' |
Containerboard Mills [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net (gains) losses on sales and impairments of businesses | ' | ' | ' | 19 | 9 | ' | ' | 28 |
Shorewood Divestiture [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net (gains) losses on sales and impairments of businesses | ' | ' | ' | ' | 6 | -7 | ' | 1 |
EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | ' | 16 | ' | ' | ' | 16 |
Augusta Mill Paper Machine Shutdown [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | 44 | ' | ' | ' | 45 | ' |
Courtland Mill Shutdown [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 51 | ' | ' | ' | ' | ' | 51 | ' |
CTA Bellevue facility closure [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | -9 | ' | ' | ' | ' | ' | -9 | ' |
XPEDX Restructuring [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | 6 | 17 | 7 | 8 | 10 | 19 | 30 | ' |
Total X P E D X Restructuring [Member] [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | ' | ' | ' | 9 | ' | ' | ' | 42 |
Other Divestitures And Impairments [Member] | Hueneme Mill [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets to be disposed of | ' | ' | ' | 62 | ' | ' | ' | ' |
Other Restructuring and Other Charges [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and other charges | $3 | ' | ' | ($6) | ' | ' | $8 | ($5) |
INDUSTRY_SEGMENT_INFORMATION_N1
INDUSTRY SEGMENT INFORMATION (Narrative) (Details) (Ilim Holding [Member]) | Sep. 30, 2013 |
Ilim Holding [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Percentage of equity interest | 50.00% |