Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | IP | |
Entity Registrant Name | INTERNATIONAL PAPER CO /NEW/ | |
Entity Central Index Key | 51434 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 420,912,504 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Sales | $5,517 | $5,724 |
Costs and Expenses | ||
Cost of products sold | 3,844 | 4,034 |
Selling and administrative expenses | 406 | 428 |
Depreciation, amortization and cost of timber harvested | 323 | 347 |
Distribution expenses | 357 | 366 |
Taxes other than payroll and income taxes | 44 | 46 |
Restructuring and other charges | 0 | 499 |
Interest expense, net | 137 | 143 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 406 | -139 |
Income tax provision (benefit) | 130 | -80 |
Equity earnings (loss), net of taxes | 35 | -33 |
Earnings (Loss) From Continuing Operations | 311 | -92 |
Discontinued operations, net of taxes | 0 | -7 |
Net Earnings (Loss) | 311 | -99 |
Less: Net earnings (loss) attributable to noncontrolling interests | -2 | -4 |
Net Earnings (Loss) Attributable to International Paper Company | 313 | -95 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $0.74 | ($0.20) |
Discontinued operations, net of taxes | $0 | ($0.01) |
Net earnings (loss) | $0.74 | ($0.21) |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | $0.74 | ($0.20) |
Discontinued operations, net of taxes | $0 | ($0.01) |
Net earnings (loss) | $0.74 | ($0.21) |
Average Shares of Common Stock Outstanding - assuming dilution | 423.7 | 435.6 |
Cash Dividends Per Common Share | $0.40 | $0.35 |
Amounts Attributable to International Paper Company Common Shareholders | ||
Earnings (loss) from continuing operations | 313 | -88 |
Discontinued operations, net of taxes | 0 | -7 |
Net Earnings (Loss) Attributable to International Paper Company | $313 | ($95) |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net Earnings (Loss) | $311 | ($99) | ||
Other Comprehensive Income (Loss), Net of Tax: | ||||
Change in cumulative foreign currency translation adjustment | -484 | 18 | ||
Net gains/losses on cash flow hedging derivatives: | ||||
Net gains (losses) arising during the period | 6 | 4 | ||
Reclassification adjustment for (gains) losses included in net earnings (loss) | 3 | 5 | ||
Total Other Comprehensive Income (Loss), Net of Tax | -397 | [1] | -21 | [1] |
Comprehensive Income (Loss) | -86 | -120 | ||
Net (earnings) loss attributable to noncontrolling interests | 2 | 4 | ||
Other comprehensive (income) loss attributable to noncontrolling interests | 1 | 2 | ||
Comprehensive Income (Loss) Attributable to International Paper Company | -83 | -114 | ||
U.S. Plans | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||
Amortization of pension and post-retirement prior service costs and net loss: | 78 | 52 | ||
Pension and postretirement liability adjustments | 0 | -103 | ||
Foreign Pension Plan, Defined Benefit [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax: | ||||
Pension and postretirement liability adjustments | $0 | $3 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Current Assets | |||
Cash and temporary investments | $1,576 | $1,881 | |
Accounts and notes receivable, net | 3,074 | 3,083 | |
Inventories | 2,437 | 2,424 | |
Deferred income tax assets | 333 | 331 | |
Other current assets | 240 | 240 | |
Total Current Assets | 7,660 | 7,959 | |
Plants, Properties and Equipment, net | 12,488 | 12,728 | |
Forestlands | 435 | 507 | |
Investments | 272 | 248 | |
Financial Assets of Special Purpose Entities (Note 13) | 2,150 | 2,145 | |
Goodwill | 3,677 | 3,773 | |
Deferred Charges and Other Assets | 1,285 | 1,324 | |
Total Assets | 27,967 | 28,684 | |
Current Liabilities | |||
Notes payable and current maturities of long-term debt | 664 | 742 | |
Accounts payable | 2,678 | 2,664 | |
Accrued payroll and benefits | 369 | 477 | |
Other accrued liabilities | 1,065 | 1,026 | |
Total Current Liabilities | 4,776 | 4,909 | |
Long-Term Debt | 8,461 | 8,631 | |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 13) | 2,052 | 2,050 | |
Deferred Income Taxes | 3,000 | 3,063 | |
Pension Benefit Obligation | 3,801 | 3,819 | |
Postretirement and Postemployment Benefit Obligation | 380 | 396 | |
Other Liabilities | 494 | 553 | |
Equity | |||
Common stock, $1 par value, 2015 - 448.9 shares and 2014 - 448.9 shares | 449 | 449 | |
Paid-in capital | 6,190 | 6,245 | |
Retained earnings | 4,548 | 4,409 | |
Accumulated other comprehensive loss | -5,042 | [1] | -4,646 |
Shareholders' Equity before Treasury Stock, Total | 6,145 | 6,457 | |
Less: Common stock held in treasury, at cost, 2015 - 27.130 shares and 2014 - 28.734 shares | 1,287 | 1,342 | |
Total Shareholders' Equity | 4,858 | 5,115 | |
Noncontrolling interests | 145 | 148 | |
Total Equity | 5,003 | 5,263 | |
Total Liabilities and Equity | $27,967 | $28,684 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Common stock, par value | $1 | $1 |
Common stock, shares | 448,900,000 | 448,900,000 |
Common stock held in treasury, shares | 27,130,000 | 28,734,000 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net earnings (loss) | $311 | ($99) |
Depreciation, amortization and cost of timber harvested | 323 | 352 |
Deferred income tax provision, net | -3 | -144 |
Restructuring and other related charges | 0 | 517 |
Pension plan contributions | 0 | -58 |
Equity (earnings) loss, net | -35 | 33 |
Periodic pension expense, net | 122 | 90 |
Other, net | 76 | 6 |
Changes in current assets and liabilities | ||
Accounts and notes receivable | -76 | -170 |
Inventories | -81 | -3 |
Accounts payable and accrued liabilities | -14 | -91 |
Interest payable | 19 | 37 |
Other | -4 | 1 |
Cash Provided By (Used For) Operations | 638 | 471 |
Investment Activities | ||
Invested in capital projects | -319 | -277 |
Proceeds from sale of fixed assets | 9 | 0 |
Other | -67 | -93 |
Cash Provided By (Used For) Investment Activities | -377 | -370 |
Financing Activities | ||
Repurchases of common stock and payments of restricted stock tax withholding | -139 | -388 |
Issuance of common stock | 2 | 18 |
Issuance of debt | 40 | 107 |
Reduction of debt | -280 | -163 |
Change in book overdrafts | 0 | 16 |
Dividends paid | -169 | -153 |
Cash Provided By (Used For) Financing Activities | -546 | -563 |
Effect of Exchange Rate Changes on Cash | -20 | 1 |
Change in Cash and Temporary Investments | -305 | -461 |
Cash and Temporary Investments | ||
Beginning of period | 1,881 | 1,802 |
End of period | $1,576 | $1,341 |
BASIS_OF_PRESENTATION_Note
BASIS OF PRESENTATION (Note) | 3 Months Ended |
Mar. 31, 2015 | |
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 three 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, 2014 which have previously been filed with the Securities and Exchange Commission. | |
On July 1, 2014, International Paper completed the spinoff of its distribution solutions business, xpedx, and xpedx's merger with Unisource Worldwide, Inc., with the combined companies now operating as Veritiv Corporation (Veritiv). As a result of the spinoff, all prior year amounts have been adjusted to reflect xpedx as a discontinued operation. See Note 8 for further discussion. |
RECENT_ACCOUNTING_DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS (Note) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | RECENT ACCOUNTING DEVELOPMENTS |
Debt Issuance Costs | |
In April 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30: Simplifying the Presentation of Debt Issuance Costs," which simplifies the balance sheet presentation of the costs for issuing debt. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years; however, early adoption is allowed. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company is currently evaluating the provisions of this guidance. | |
Consolidation | |
In February 2015, the FASB issued ASU 2015-02, "Consolidation," which amends the requirements for consolidation and significantly changes the consolidation analysis required. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years. The Company is currently evaluating the provisions of this guidance. | |
Share-Based Payment | |
In June 2014, the FASB issued ASU 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That Performance Target Could Be Achieved After the Requisite Service Period." This guidance provides that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. As such, an entity should not record compensation expense related to an award for which transfer to the employee is contingent on the entity's satisfaction of a performance target until it becomes probable that the performance target will be met. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years. The Company is currently evaluating the provisions of this guidance. | |
Revenue Recognition | |
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." The guidance replaces most existing revenue recognition guidance and provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years and permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the provisions of this guidance. | |
Discontinued Operations | |
In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. This guidance should be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date which is fiscal years beginning on or after December 15, 2014, and interim periods within those annual periods. The Company chose to early adopt the provisions of this guidance in the third quarter 2014. See Note 8 for further discussion and disclosures. |
EQUITY_Note
EQUITY (Note) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Equity [Note Text Block] | EQUITY | |||||||||||||||||||||||
A summary of the changes in equity for the three-months ended March 31, 2015 and 2014 is provided below: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
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 | $ | 5,115 | $ | 148 | $ | 5,263 | $ | 8,105 | $ | 179 | $ | 8,284 | ||||||||||||
Issuance of stock for various plans, net | 141 | — | 141 | 128 | — | 128 | ||||||||||||||||||
Repurchase of stock | (141 | ) | — | (141 | ) | (388 | ) | — | (388 | ) | ||||||||||||||
Common stock dividends ($.4000 per share in 2015 and $0.3500 per share in 2014) | (174 | ) | — | (174 | ) | (158 | ) | — | (158 | ) | ||||||||||||||
Comprehensive income (loss) | (83 | ) | (3 | ) | (86 | ) | (114 | ) | (6 | ) | (120 | ) | ||||||||||||
Ending Balance, March 31 | $ | 4,858 | $ | 145 | $ | 5,003 | $ | 7,573 | $ | 173 | $ | 7,746 | ||||||||||||
OTHER_COMPREHENSIVE_INCOME_OTH
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Note) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Other Comprehensive Income [Note Text Block] | OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The following table presents changes in AOCI for the three-month period ended March 31, 2015: | |||||||||||||||||
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, January 1, 2015 | $ | (3,134 | ) | $ | (1,513 | ) | $ | 1 | $ | (4,646 | ) | ||||||
Other comprehensive income (loss) before reclassifications | — | (484 | ) | 6 | (478 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 78 | — | 3 | 81 | |||||||||||||
Net Current Period Other Comprehensive Income (Loss) | 78 | (484 | ) | 9 | (397 | ) | |||||||||||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | — | 1 | — | 1 | |||||||||||||
Balance, March 31, 2015 | $ | (3,056 | ) | $ | (1,996 | ) | $ | 10 | $ | (5,042 | ) | ||||||
(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 March 31, 2014: | |||||||||||||||||
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, January 1, 2014 | $ | (2,105 | ) | $ | (649 | ) | $ | (5 | ) | $ | (2,759 | ) | |||||
Other comprehensive income (loss) before reclassifications | (100 | ) | 18 | 4 | (78 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | 52 | — | 5 | 57 | |||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (48 | ) | 18 | 9 | (21 | ) | |||||||||||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | — | 2 | — | 2 | |||||||||||||
Balance, March 31, 2014 | $ | (2,153 | ) | $ | (629 | ) | $ | 4 | $ | (2,778 | ) | ||||||
(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 March 31: | |||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | |||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
In millions: | |||||||||||||||||
Defined benefit pension and postretirement items: | |||||||||||||||||
Prior-service costs | $ | (8 | ) | $ | (4 | ) | (b) | Cost of products sold | |||||||||
Actuarial gains (losses) | (120 | ) | (81 | ) | (b) | Cost of products sold | |||||||||||
Total pre-tax amount | (128 | ) | (85 | ) | |||||||||||||
Tax (expense) benefit | 50 | 33 | |||||||||||||||
Net of tax | (78 | ) | (52 | ) | |||||||||||||
Net gains and losses on cash flow hedging derivatives: | |||||||||||||||||
Foreign exchange contracts | (6 | ) | (8 | ) | (c) | Cost of products sold | |||||||||||
Total pre-tax amount | (6 | ) | (8 | ) | |||||||||||||
Tax (expense)/benefit | 3 | 3 | |||||||||||||||
Net of tax | (3 | ) | (5 | ) | |||||||||||||
Total reclassifications for the period | $ | (81 | ) | $ | (57 | ) | |||||||||||
(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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [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 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 | ||||||||
March 31, | ||||||||
In millions, except per share amounts | 2015 | 2014 | ||||||
Earnings (loss) from continuing operations | $ | 313 | $ | (88 | ) | |||
Effect of dilutive securities (a) | — | — | ||||||
Earnings (loss) from continuing operations – assuming dilution | $ | 313 | $ | (88 | ) | |||
Average common shares outstanding | 421.2 | 435.6 | ||||||
Effect of dilutive securities (a) | ||||||||
Restricted stock performance share plan | 2.5 | — | ||||||
Average common shares outstanding – assuming dilution | 423.7 | 435.6 | ||||||
Basic earnings (loss) from continuing operations per common share | $ | 0.74 | $ | (0.20 | ) | |||
Diluted earnings (loss) from continuing operations per common share | $ | 0.74 | $ | (0.20 | ) | |||
(a) | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING_AND_OTHER_CHARGE
RESTRUCTURING AND OTHER CHARGES (Note) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Activities [Note Text Block] | RESTRUCTURING AND OTHER CHARGES | |||
2014: During the three months ended March 31, 2014, restructuring and other charges totaling $499 million before taxes were recorded. Details of these charges were as follows: | ||||
Three Months Ended | ||||
31-Mar-14 | ||||
In millions | ||||
Courtland mill shutdown (a) | $ | 495 | ||
Other | 4 | |||
Total | $ | 499 | ||
(a) | During 2013, the Company deferred accelerating depreciation for certain assets as we evaluated possible alternative uses by one of our other businesses. During the first quarter of 2014, we completed our evaluation and concluded that there were no alternative uses for these assets. We recognized approximately $430 million of accelerated depreciation related to these assets during the first quarter of 2014. Other components of the first quarter of 2014 Courtland mill shutdown cost include site closure costs of $30 million, severance charges of $15 million and $20 million of other non-cash charges. |
ACQUISITIONS_AND_JOINT_VENTURE
ACQUISITIONS AND JOINT VENTURES (Note) | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Joint Ventures [Note Text Block] | ACQUISITIONS AND JOINT VENTURES |
Orsa IP | |
2014: On April 8, 2014, the Company acquired the remaining 25% of shares of Orsa International Paper Embalagens S.A. (Orsa IP) from its joint venture partner, Jari Celulose, Papel e Embalagens S.A. (Jari), a Grupo Jari company, for approximately $127 million, of which $105 million was paid in cash with the remaining $22 million held back pending satisfaction of certain indemnification obligations by Jari. An additional $11 million, which was initially not included in the purchase price, was placed in an escrow account pending resolution of certain open matters. During the third quarter, these open matters were successfully resolved, which resulted in $9 million paid out of escrow to Jari and correspondingly added to the final purchase consideration. The remaining $2 million was released back to the Company. |
DIVESTITURES_SPINOFF_Note
DIVESTITURES / SPINOFF (Note) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Divestitures [Note Text Block] | DIVESTITURES / SPINOFF | ||||
Discontinued Operations | |||||
2014: On July 1, 2014, International Paper completed the spinoff of its distribution solutions business, xpedx, and xpedx's merger with Unisource Worldwide, Inc., with the combined companies now operating as Veritiv Corporation (Veritiv). The xpedx business had historically represented the Company's Distribution reportable segment. | |||||
The spinoff was accomplished by the contribution of the xpedx business to Veritiv and the distribution of 8,160,000 shares of Veritiv common stock on a pro-rata basis to International Paper shareholders. International Paper received a payment of approximately $411 million, financed with new debt in Veritiv's capital structure. | |||||
All current and historical operating results for xpedx are included in Discontinued operations, net of tax, in the consolidated statement of operations. The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the xpedx spinoff for the three months ended March 31, 2014 in the consolidated statement of operations: | |||||
In millions | Three Months Ended | ||||
31-Mar-14 | |||||
Net Sales | $ | 1,290 | |||
Cost and Expenses | |||||
Cost of products sold | 1,140 | ||||
Selling and administrative expenses | 100 | ||||
Depreciation, amortization and cost of timber harvested | 4 | ||||
Distribution expenses | 34 | ||||
Restructuring and other charges | 18 | ||||
Other, net | 2 | ||||
Earnings (Loss) Before Income Taxes and Equity Earnings | (8 | ) | |||
Income tax provision (benefit) | (3 | ) | |||
Discontinued Operations, Net of Taxes (a) | $ | (5 | ) | ||
(a) | These amounts, along with a net loss of $2 million related to the Temple-Inland Building Products divestitures, are included in Discontinued operations, net of tax, in the consolidated statement of operations for the three months ended March 31, 2014. | ||||
Total cash provided by operations related to xpedx of $50 million for the three months ended March 31, 2014 is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. There was no cash provided by investing activities related to xpedx for the three months ended March 31, 2014. |
SUPPLEMENTAL_FINANCIAL_STATEME
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||
Supplemental Financial Statement Information [Note Text Block] | SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION | |||||||
Temporary Investments | ||||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Temporary investments | $ | 1,234 | $ | 1,480 | ||||
Accounts and Notes Receivable | ||||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Accounts and notes receivable, net: | ||||||||
Trade | $ | 2,821 | $ | 2,860 | ||||
Other | 253 | 223 | ||||||
Total | $ | 3,074 | $ | 3,083 | ||||
Inventories | ||||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Raw materials | $ | 423 | $ | 494 | ||||
Finished pulp, paper and packaging | 1,386 | 1,273 | ||||||
Operating supplies | 556 | 562 | ||||||
Other | 72 | 95 | ||||||
Total | $ | 2,437 | $ | 2,424 | ||||
Depreciation Expense | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Depreciation expense | $ | 304 | $ | 324 | ||||
Valuation Accounts | ||||||||
Certain valuation accounts were as follows: | ||||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Accumulated depreciation | $ | 20,279 | $ | 20,340 | ||||
Allowance for doubtful accounts | 78 | 82 | ||||||
There was no material activity related to asset retirement obligations during either of the three months ended March 31, 2015 or 2014. | ||||||||
Interest | ||||||||
Cash payments related to interest were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Interest payments | $ | 129 | $ | 113 | ||||
Amounts related to interest were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Interest expense (a) | $ | 159 | $ | 164 | ||||
Interest income (a) | 22 | 21 | ||||||
Capitalized interest costs | 7 | 6 | ||||||
(a) | Interest expense and interest income exclude approximately $9 million for the three months ended March 31, 2015 and $10 million for the three months ended March 31, 2014 related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). |
GOODWILL_AND_OTHER_INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Note) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 three-month period ended March 31, 2015: | ||||||||||||||||
In millions | Industrial | Printing | Consumer | Total | ||||||||||||
Packaging | Papers | Packaging | ||||||||||||||
Balance as of January 1, 2015 | ||||||||||||||||
Goodwill | $ | 3,396 | $ | 2,234 | $ | 1,784 | $ | 7,414 | ||||||||
Accumulated impairment losses (a) | (100 | ) | (1,877 | ) | (1,664 | ) | (3,641 | ) | ||||||||
3,296 | 357 | 120 | 3,773 | |||||||||||||
Reclassifications and other (b) | (39 | ) | (53 | ) | — | (92 | ) | |||||||||
Additions/reductions | — | (4 | ) | (c) | — | (4 | ) | |||||||||
Balance as of March 31, 2015 | ||||||||||||||||
Goodwill | 3,357 | 2,177 | 1,784 | 7,318 | ||||||||||||
Accumulated impairment losses (a) | (100 | ) | (1,877 | ) | (1,664 | ) | (3,641 | ) | ||||||||
Total | $ | 3,257 | $ | 300 | $ | 120 | $ | 3,677 | ||||||||
(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 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: | ||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
In millions | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Customer relationships and lists | $ | 526 | $ | 153 | $ | 561 | $ | 157 | ||||||||
Non-compete agreements | 72 | 53 | 74 | 53 | ||||||||||||
Tradenames, patents and trademarks | 61 | 46 | 61 | 44 | ||||||||||||
Land and water rights | 90 | 9 | 81 | 9 | ||||||||||||
Fuel and power agreements | 5 | 3 | 5 | 3 | ||||||||||||
Software | 22 | 21 | 23 | 22 | ||||||||||||
Other | 36 | 16 | 43 | 21 | ||||||||||||
Total | $ | 812 | $ | 301 | $ | 848 | $ | 309 | ||||||||
The Company recognized the following amounts as amortization expense related to intangible assets: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||
Amortization expense related to intangible assets | $ | 13 | $ | 18 | ||||||||||||
INCOME_TAXES_Note
INCOME TAXES (Note) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes [Note Text Block] | INCOME TAXES | |||||||
International Paper made income tax payments, net of refunds, as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Income tax payments, net | $ | 26 | $ | 40 | ||||
The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the three months ended March 31, 2015: | ||||||||
In millions | Unrecognized | Accrued Estimated | ||||||
Tax Benefits | Interest and Tax | |||||||
Penalties | ||||||||
Balance at December 31, 2014 | $ | (158 | ) | $ | (41 | ) | ||
Activity for three months ended March 31, 2015 | 8 | 7 | ||||||
Balance at March 31, 2015 | $ | (150 | ) | $ | (34 | ) | ||
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 $5 million during the next 12 months. | ||||||||
Included in the Company’s income tax provisions for the three months ended March 31, 2015 and 2014, are $0 million and $190 million of income tax benefits, respectively, related to special items. The components of the net provision related to special items were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Special items | $ | — | $ | (199 | ) | |||
Tax-related adjustments: | ||||||||
State legislative changes | — | 10 | ||||||
Other | — | (1 | ) | |||||
Income tax provision (benefit) related to special items | $ | — | $ | (190 | ) | |||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Note) | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Note Text Block] | COMMITMENTS AND CONTINGENCIES |
Environmental Proceedings | |
CERCLA and State Actions | |
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 $96 million in the aggregate at March 31, 2015. | |
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 United States Environmental Protection Agency (EPA) a 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 $48 million to address the 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 Remediation Costs | |
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 in the balance sheet, totaled approximately $45 million at March 31, 2015. Other than as described above, completion of required remedial actions is not expected to have a material effect on our consolidated financial statements. | |
Legal Proceedings | |
Environmental | |
Kalamazoo River: The Company is a potentially responsible party (PRP) with respect to the Allied Paper, Inc./Portage Creek/Kalamazoo River Superfund Site in Michigan. The EPA asserts that the site is contaminated by PCBs primarily as a result of discharges from various paper mills located along the Kalamazoo River, including a paper mill formerly owned by St. Regis Paper Company (St. Regis). The Company is a successor in interest to St. Regis. Although the Company has not received any orders from the EPA, in December 2014, the EPA sent the Company a letter demanding payment of $19 million to reimburse the EPA for costs associated with a Time Critical Removal Action of PCB contaminated sediments from a portion of the site. The Company's CERCLA liability has not been finally determined with respect to this or any other portion of the site and we have declined to reimburse the EPA at this time. As noted below, the Company is involved in allocation/apportionment litigation with regard to the site. Accordingly, it is premature to estimate a loss or range of loss with respect to this 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 not an “operator,” but 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 plaintiffs seek to recover. This will be the subject of a separate trial, which has been set for September 2015. 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 PRPs at the San Jacinto River Waste Pits Superfund Site (San Jacinto 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 and the Texas Administrative Code, which provide for the imposition of civil penalties between $50 and $25,000 per day. Trial began on October 7, 2014. On November 13, 2014, the jury rendered a verdict finding International Paper not responsible for the violations alleged by Harris County. On January 20, 2015, the court entered final judgment consistent with the jury verdict. Harris County filed a motion for a new trial on February 18, 2015. The court denied Harris County's motion on April 6, 2015, and Harris County then filed its Notice of Appeal on April 17, 2015. International Paper is preparing its response in opposition. | |
In October 2012, a civil lawsuit was filed against the same defendants, including the Company, in the District Court of Harris County by approximately 400 local fishermen 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. Trial is currently scheduled for October 2015. This case is still 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. Because the case has not entered the discovery phase, it is premature to predict the outcome or to estimate a loss or range of loss, if any, which may be incurred. | |
Antitrust | |
Containerboard: 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 February 2004 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 February 2004 to November 2010. 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. The district court certified a class of direct purchasers of containerboard products on March 26, 2015; the Company intends to pursue its options for appeal or reconsideration of that decision. 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. No class certification materials have been filed to date in the Tennessee action. The Company disputes the allegations made and is vigorously defending each action. However, because the federal action is in the discovery stage and the Tennessee action is in a preliminary stage, we are unable to predict an outcome or estimate a range of reasonably possible loss. | |
Gypsum: Beginning in late December 2012, certain purchasers of gypsum board filed a number of purported class action complaints alleging civil violations of Section 1 of the Sherman Act against Temple-Inland and a number of other gypsum manufacturers. The complaints were similar and alleged 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 limiting order fulfillment. On April 8, 2013, the Judicial Panel on Multidistrict Litigation ordered transfer of all pending cases to the U.S. District Court for the Eastern District of Pennsylvania 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 on or before September 2011.The alleged classes are all persons who purchased gypsum board directly or indirectly from any defendant. The complainants seek to recover unspecified treble actual damages and attorneys' fees on behalf of the purported classes. In February 2015, we executed a definitive agreement to settle these cases for an immaterial amount, which received preliminary court approval in March 2015. Notice is being provided to members of the proposed class and the settlements are set for a final approval hearing in July 2015. On March 17, 2015, several homebuilders filed an antitrust action in the United States District Court for the Northern District of California alleging that they purchased gypsum board and making similar allegations to those contained in the above settled proceeding. The Company intends to dispute the allegations made and to vigorously defend that lawsuit and any lawsuit brought by any purported class member that elects to opt out of the settlement. | |
In addition, in September 2013, similar 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. In May 2015, we reached an agreement in principle to settle these Canadian cases for an immaterial amount. This settlement in principle is subject to negotiation and execution of a definitive settlement agreement, which would then be subject to court approval. | |
General | |
The Company is involved in various other inquiries, administrative proceedings and litigation relating to environmental and safety matters, contracts, sales of property, intellectual property, personal injury, labor and employment 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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 three months ended March 31, 2015 and the year ended December 31, 2014. | ||||||||
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 or obtained waivers for 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 effect, 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 $5.4 billion and $5.3 billion of International Paper debt obligations held by these Entities at March 31, 2015 and December 31, 2014, respectively. Despite the offset treatment, these remain debt obligations of International Paper. Remaining borrowings of $51 million and $50 million at March 31, 2015 and December 31, 2014, respectively, are included in Long-term debt in the accompanying consolidated balance sheet. Additional debt related to the above transaction of $107 million is included in Notes payable and current maturities of long-term debt at March 31, 2015 and December 31, 2014. | ||||||||
The use of the above entities facilitated the monetization of the credit enhanced Timber Notes in a cost effective manner by increasing the borrowing capacity and lowering the interest rate, while providing for the offset accounting treatment described above. Additionally, the monetization structure preserved the tax deferral that resulted from the 2006 forestlands sales. The Company recognized a $1.4 billion deferred tax liability in connection with the 2006 forestlands sale, which will be settled with the maturity of the Timber Notes in the third quarter of 2016 (unless extended). | ||||||||
Activity between the Company and the Entities was as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Revenue (a) | $ | 9 | $ | 10 | ||||
Expense (a) | 18 | 18 | ||||||
Cash receipts (b) | 10 | 12 | ||||||
Cash payments (c) | 36 | 37 | ||||||
(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 effect 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. | ||||||||
In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper. | ||||||||
The use of the two wholly-owned special purpose entities discussed below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales. The Company recognized an $840 million deferred tax liability in connection with the 2007 sales, which will be settled with the maturity of the notes in 2027. | ||||||||
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 March 31, 2015, the fair value of the notes was $2.18 billion. These notes are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
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 March 31, 2015, the fair value of this debt was $2.08 billion. This debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 14 in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Activity between the Company and the 2007 financing entities was as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Revenue (a) | $ | 6 | $ | 6 | ||||
Expense (b) | 6 | 6 | ||||||
Cash receipts (c) | 2 | 2 | ||||||
Cash payments (d) | 4 | 5 | ||||||
(a) | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2015 and 2014, 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 for each of the three months ended March 31, 2015 and 2014, 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_Note
DEBT (Note) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt [Note Text Block] | DEBT | |||||||
Amounts related to early debt extinguishment during the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Early debt reductions (a) | $ | 217 | $ | 9 | ||||
Pre-tax early debt extinguishment costs | 1 | — | ||||||
(a) | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015 and from 6.00% to 6.70% with original maturities from 2024 to 2027 for the three months ended March 31, 2014. | |||||||
At March 31, 2015, the fair value of International Paper’s $9.1 billion of debt was approximately $10.4 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 14 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Maintaining an investment-grade credit rating is an important element of International Paper’s financing strategy. At March 31, 2015, the Company held long-term credit ratings of BBB (stable outlook) and Baa2 (stable outlook) by S&P and Moody’s, respectively. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES (Note) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||||||||||||||||||
The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows: | ||||||||||||||||||||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) | ||||||||||||||||||||||||
Brazilian real / U.S. dollar - Forward | 56 | 166 | ||||||||||||||||||||||
British pounds / Brazilian real – Forward | 4 | 5 | ||||||||||||||||||||||
European euro / Brazilian real – Forward | 6 | 9 | ||||||||||||||||||||||
European euro / Polish zloty – Forward | 242 | 280 | ||||||||||||||||||||||
Mexican peso / U.S. dollar - Forward | 249 | — | ||||||||||||||||||||||
U.S. dollar / Brazilian real – Forward | 82 | 125 | ||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships: | ||||||||||||||||||||||||
Interest rate contracts (in USD) | 230 | 230 | ||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) | ||||||||||||||||||||||||
Indian rupee / U.S. dollar - Forward | 58 | 43 | ||||||||||||||||||||||
Mexican peso / U.S. dollar - Forward | — | 187 | ||||||||||||||||||||||
U.S. dollar / Brazilian real - Forward | 6 | 11 | ||||||||||||||||||||||
(a) | These contracts had maturities of three years or less as of March 31, 2015. | |||||||||||||||||||||||
(b) | These contracts had maturities of one year or less as of March 31, 2015. | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Foreign exchange contracts | $ | 6 | $ | 4 | ||||||||||||||||||||
Total | $ | 6 | $ | 4 | ||||||||||||||||||||
During the next 12 months, the amount of the March 31, 2015 AOCI balance, after tax, that is expected to be reclassified to earnings is a gain of $4 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 | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | (3 | ) | $ | (5 | ) | Cost of products sold | |||||||||||||||||
Total | $ | (3 | ) | $ | (5 | ) | ||||||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | |||||||||||||||||||||||
In Consolidated | ||||||||||||||||||||||||
Statement | ||||||||||||||||||||||||
of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships: | ||||||||||||||||||||||||
Interest rate contracts | $ | 2 | $ | — | Interest expense, net | |||||||||||||||||||
Debt | (2 | ) | — | Interest expense, net | ||||||||||||||||||||
Total | $ | — | $ | — | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Electricity contact | $ | (1 | ) | $ | 1 | Cost of products sold | ||||||||||||||||||
Embedded derivatives | — | — | Interest expense, net | |||||||||||||||||||||
Foreign exchange contracts | (2 | ) | — | Cost of products sold | ||||||||||||||||||||
Interest rate contracts | 3 | 3 | Interest expense, net | |||||||||||||||||||||
Total | $ | — | $ | 4 | ||||||||||||||||||||
The following activity is related to fully effective interest rate swaps designated as fair value hedges: | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
In millions | Issued | Terminated | Undesignated | Issued | Terminated | Undesignated | ||||||||||||||||||
First Quarter | $ | — | $ | — | $ | — | $ | 55 | $ | — | $ | — | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | 55 | $ | — | $ | — | ||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||
For a discussion of the Company’s fair value measurement policies under the fair value hierarchy, refer to Note 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||||||||||||||||||
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 | 31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||
Foreign exchange contracts – cash flow | $ | 23 | (a) | $ | 16 | (c) | $ | 18 | (e) | $ | 14 | (e) | ||||||||||||
Interest rate contracts - fair value | 2 | (b) | — | — | — | |||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 25 | $ | 16 | $ | 18 | $ | 14 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Electricity contract | — | — | 2 | (e) | 2 | (e) | ||||||||||||||||||
Foreign exchange contracts | — | 1 | (d) | 2 | (e) | 2 | (e) | |||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 1 | $ | 4 | $ | 4 | ||||||||||||||||
Total derivatives | $ | 25 | $ | 17 | $ | 22 | $ | 18 | ||||||||||||||||
(a) | Includes $17 million recorded in Other current assets and $6 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 $14 million recorded in Other current assets and $2 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) | 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. As of March 31, 2015, there were no derivative contracts in a net liability position that were subject to credit-risk-related contingent features. As of December 31, 2014, the fair value of derivative instruments containing credit risk-related contingent features in a net liability position was $1 million. The Company was not required to post any collateral as of March 31, 2015 or December 31, 2014. For more information on credit-risk-related contingent features, refer to Note 14 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
RETIREMENT_PLANS_Note
RETIREMENT PLANS (Note) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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; however, salaried employees hired by Temple Inland prior to March 1, 2007 also participate in the Pension Plan. | ||||||||
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 16 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||
In connection with the Temple-Inland acquisition in February 2012, International Paper assumed responsibility for the Temple-Inland Retirement Plan, a defined benefit plan which covers substantially all employees of Temple-Inland. The Temple-Inland Retirement Plan merged with the Retirement Plan of International Paper Company on December 31, 2014. | ||||||||
The Company will freeze participation, including credited service and compensation, for salaried employees under the Pension Plan, the Pension Restoration Plan and the SERP for all service on or after January 1, 2019. In addition, compensation under the Temple-Inland Retirement Plan and the Temple-Inland Supplemental Executive Retirement Plan (collectively, the Temple Retirement Plans) will also be frozen beginning January 1, 2019. Credited service was previously frozen for the Temple Retirement Plans. This change will not affect benefits accrued through December 31, 2018. Due to the announcement of the pension freeze, the net pension plan obligations were determined on February 28, 2014, including the effect of the remeasurement and curtailment. This resulted in a net increase to the projected benefit obligation of approximately $170 million ($103 million net of tax) during the first quarter of 2014. | ||||||||
Net periodic pension expense for our qualified and nonqualified U.S. defined benefit plans comprised the following: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Service cost | $ | 39 | $ | 38 | ||||
Interest cost | 149 | 153 | ||||||
Expected return on plan assets | (196 | ) | (189 | ) | ||||
Actuarial loss | 119 | 80 | ||||||
Amortization of prior service cost | 11 | 8 | ||||||
Net periodic pension expense | $ | 122 | $ | 90 | ||||
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 cash contributions of $58 million to the qualified pension plan in the first quarter of 2014. No cash contributions were made during the first quarter of 2015. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $5 million for the three months ended March 31, 2015. |
STOCKBASED_COMPENSATION_Note
STOCK-BASED COMPENSATION (Note) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 at the discretion of the Committee. A detailed discussion of the ICP, including the now discontinued stock option program and executive continuity award program that provided for tandem grants of restricted stock and stock options, is presented in Note 18 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. As of March 31, 2015, 16.1 million shares were available for grant under the ICP. | ||||||||
Stock-based compensation expense and related income tax benefits were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Total stock-based compensation expense (selling and administrative) | $ | 33 | $ | 13 | ||||
Income tax benefits related to stock-based compensation | 89 | 85 | ||||||
At March 31, 2015, $218 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 2.1 years. | ||||||||
Performance Share Plan | ||||||||
During the first quarter of 2015, the Company granted 1.9 million performance units at an average grant date fair value of $53.25. | ||||||||
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. All remaining options expired on March 15, 2015. |
INDUSTRY_SEGMENT_INFORMATION_N
INDUSTRY SEGMENT INFORMATION (Note) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Reporting Disclosure [Text Block] | INDUSTRY SEGMENT INFORMATION | ||||||||
International Paper’s industry segments, Industrial Packaging, Printing Papers, and Consumer Packaging 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. The Company recorded equity earnings (losses), net of taxes, of $39 million and $(31) million for the three months ended March 31, 2015 and 2014, respectively, for Ilim. At March 31, 2015 and December 31, 2014, the Company's investment in Ilim was $202 million and $170 million, respectively, which was $156 million and $158 million, respectively, more than the Company's proportionate share of the joint venture's underlying net assets. The differences primarily relate to purchase price fair value adjustments and currency translation adjustments. The Company is party to a joint marketing agreement with Ilim, under which the Company purchases, markets and sells paper produced by Ilim. Purchases under this agreement during the 2015 and 2014 first quarters were $43 million and $58 million, respectively. | |||||||||
Sales by industry segment for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
In millions | 2015 | 2014 | |||||||
Industrial Packaging | $ | 3,553 | $ | 3,693 | |||||
Printing Papers | 1,228 | 1,406 | |||||||
Consumer Packaging | 778 | 829 | |||||||
Corporate and Intersegment Sales | (42 | ) | (204 | ) | |||||
Net Sales | $ | 5,517 | $ | 5,724 | |||||
Operating profit by industry segment for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
In millions | 2015 | 2014 | |||||||
Industrial Packaging | $ | 468 | $ | 453 | (a) | ||||
Printing Papers | 109 | (410 | ) | (b) | |||||
Consumer Packaging | 46 | 17 | (c) | ||||||
Operating Profit | 623 | 60 | |||||||
Interest expense, net | (137 | ) | (143 | ) | |||||
Noncontrolling interests/equity earnings adjustment (d) | 1 | — | |||||||
Corporate items, net | (9 | ) | (11 | ) | |||||
Restructuring and other charges | — | (1 | ) | ||||||
Non-operating pension expense | (72 | ) | (44 | ) | |||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ | 406 | $ | (139 | ) | ||||
Equity earnings (loss), net of taxes – Ilim | $ | 39 | $ | (31 | ) | ||||
(a) | Includes charges of $12 million for integration costs associated with the acquisition of Temple-Inland, a charge of $2 million associated with our Brazil Packaging business, a charge of $1 million related to the restructuring of our Asia box operations and a gain of $1 million for other items. | ||||||||
(b) | Includes charges of $495 million for costs associated with the shutdown of our Courtland, Alabama mill. | ||||||||
(c) | Includes charges of $1 million for costs associated with the Coated Paperboard sheet plant closures. | ||||||||
(d) | 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) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the three-months ended March 31, 2015 and 2014 is provided below: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
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 | $ | 5,115 | $ | 148 | $ | 5,263 | $ | 8,105 | $ | 179 | $ | 8,284 | ||||||||||||
Issuance of stock for various plans, net | 141 | — | 141 | 128 | — | 128 | ||||||||||||||||||
Repurchase of stock | (141 | ) | — | (141 | ) | (388 | ) | — | (388 | ) | ||||||||||||||
Common stock dividends ($.4000 per share in 2015 and $0.3500 per share in 2014) | (174 | ) | — | (174 | ) | (158 | ) | — | (158 | ) | ||||||||||||||
Comprehensive income (loss) | (83 | ) | (3 | ) | (86 | ) | (114 | ) | (6 | ) | (120 | ) | ||||||||||||
Ending Balance, March 31 | $ | 4,858 | $ | 145 | $ | 5,003 | $ | 7,573 | $ | 173 | $ | 7,746 | ||||||||||||
OTHER_COMPREHENSIVE_INCOME_OTH1
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
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 March 31, 2015: | The following table presents changes in AOCI for the three-month period ended March 31, 2014: | ||||||||||||||||||||||||||||||||
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, January 1, 2015 | $ | (3,134 | ) | $ | (1,513 | ) | $ | 1 | $ | (4,646 | ) | Balance, January 1, 2014 | $ | (2,105 | ) | $ | (649 | ) | $ | (5 | ) | $ | (2,759 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (100 | ) | 18 | 4 | (78 | ) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | — | (484 | ) | 6 | (478 | ) | ||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 52 | — | 5 | 57 | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 78 | — | 3 | 81 | ||||||||||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (48 | ) | 18 | 9 | (21 | ) | ||||||||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | 78 | (484 | ) | 9 | (397 | ) | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | — | 2 | — | 2 | ||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | — | 1 | — | 1 | ||||||||||||||||||||||||||||||
Balance, March 31, 2014 | $ | (2,153 | ) | $ | (629 | ) | $ | 4 | $ | (2,778 | ) | |||||||||||||||||||||||
Balance, March 31, 2015 | $ | (3,056 | ) | $ | (1,996 | ) | $ | 10 | $ | (5,042 | ) | |||||||||||||||||||||||
(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 March 31: | |||||||||||||||||||||||||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income (a) | Location of Amount Reclassified from AOCI | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||
In millions: | ||||||||||||||||||||||||||||||||||
Defined benefit pension and postretirement items: | ||||||||||||||||||||||||||||||||||
Prior-service costs | $ | (8 | ) | $ | (4 | ) | (b) | Cost of products sold | ||||||||||||||||||||||||||
Actuarial gains (losses) | (120 | ) | (81 | ) | (b) | Cost of products sold | ||||||||||||||||||||||||||||
Total pre-tax amount | (128 | ) | (85 | ) | ||||||||||||||||||||||||||||||
Tax (expense) benefit | 50 | 33 | ||||||||||||||||||||||||||||||||
Net of tax | (78 | ) | (52 | ) | ||||||||||||||||||||||||||||||
Net gains and losses on cash flow hedging derivatives: | ||||||||||||||||||||||||||||||||||
Foreign exchange contracts | (6 | ) | (8 | ) | (c) | Cost of products sold | ||||||||||||||||||||||||||||
Total pre-tax amount | (6 | ) | (8 | ) | ||||||||||||||||||||||||||||||
Tax (expense)/benefit | 3 | 3 | ||||||||||||||||||||||||||||||||
Net of tax | (3 | ) | (5 | ) | ||||||||||||||||||||||||||||||
Total reclassifications for the period | $ | (81 | ) | $ | (57 | ) | ||||||||||||||||||||||||||||
(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_ATTRIBUTABL1
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [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 | ||||||||
March 31, | ||||||||
In millions, except per share amounts | 2015 | 2014 | ||||||
Earnings (loss) from continuing operations | $ | 313 | $ | (88 | ) | |||
Effect of dilutive securities (a) | — | — | ||||||
Earnings (loss) from continuing operations – assuming dilution | $ | 313 | $ | (88 | ) | |||
Average common shares outstanding | 421.2 | 435.6 | ||||||
Effect of dilutive securities (a) | ||||||||
Restricted stock performance share plan | 2.5 | — | ||||||
Average common shares outstanding – assuming dilution | 423.7 | 435.6 | ||||||
Basic earnings (loss) from continuing operations per common share | $ | 0.74 | $ | (0.20 | ) | |||
Diluted earnings (loss) from continuing operations per common share | $ | 0.74 | $ | (0.20 | ) | |||
(a) | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING_AND_OTHER_CHARGE1
RESTRUCTURING AND OTHER CHARGES (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Restructuring and Related Activities [Abstract] | ||||
Schedule of Restructuring and Related Costs [Table Text Block] | During the three months ended March 31, 2014, restructuring and other charges totaling $499 million before taxes were recorded. Details of these charges were as follows: | |||
Three Months Ended | ||||
31-Mar-14 | ||||
In millions | ||||
Courtland mill shutdown (a) | $ | 495 | ||
Other | 4 | |||
Total | $ | 499 | ||
(a) | During 2013, the Company deferred accelerating depreciation for certain assets as we evaluated possible alternative uses by one of our other businesses. During the first quarter of 2014, we completed our evaluation and concluded that there were no alternative uses for these assets. We recognized approximately $430 million of accelerated depreciation related to these assets during the first quarter of 2014. Other components of the first quarter of 2014 Courtland mill shutdown cost include site closure costs of $30 million, severance charges of $15 million and $20 million of other non-cash charges. |
DIVESTITURES_SPINOFF_DIVESTITU
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Reconciliation of Major Line Items Constituting Pre-Tax Profit (Loss) of Discontinued Operations) (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Discontinued Operations and Disposal Groups [Abstract] | |||||
Reconciliation of the Major Line Items Constituting Pretax Profit (Loss) of Discontinued Operations [Table Text Block] | The following summarizes the major classes of line items comprising Earnings (Loss) Before Income Taxes and Equity Earnings reconciled to Discontinued Operations, net of tax, related to the xpedx spinoff for the three months ended March 31, 2014 in the consolidated statement of operations: | ||||
In millions | Three Months Ended | ||||
31-Mar-14 | |||||
Net Sales | $ | 1,290 | |||
Cost and Expenses | |||||
Cost of products sold | 1,140 | ||||
Selling and administrative expenses | 100 | ||||
Depreciation, amortization and cost of timber harvested | 4 | ||||
Distribution expenses | 34 | ||||
Restructuring and other charges | 18 | ||||
Other, net | 2 | ||||
Earnings (Loss) Before Income Taxes and Equity Earnings | (8 | ) | |||
Income tax provision (benefit) | (3 | ) | |||
Discontinued Operations, Net of Taxes (a) | $ | (5 | ) | ||
(a) | These amounts, along with a net loss of $2 million related to the Temple-Inland Building Products divestitures, are included in Discontinued operations, net of tax, in the consolidated statement of operations for the three months ended March 31, 2014. |
SUPPLEMENTAL_FINANCIAL_STATEME1
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||
Temporary Investments [Table Text Block] | Temporary Investments | |||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Temporary investments | $ | 1,234 | $ | 1,480 | ||||
Accounts and Notes Receivable [Table Text Block] | Accounts and Notes Receivable | |||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Accounts and notes receivable, net: | ||||||||
Trade | $ | 2,821 | $ | 2,860 | ||||
Other | 253 | 223 | ||||||
Total | $ | 3,074 | $ | 3,083 | ||||
Inventories [Table Text Block] | Inventories | |||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Raw materials | $ | 423 | $ | 494 | ||||
Finished pulp, paper and packaging | 1,386 | 1,273 | ||||||
Operating supplies | 556 | 562 | ||||||
Other | 72 | 95 | ||||||
Total | $ | 2,437 | $ | 2,424 | ||||
Depreciation Expense [Table Text Block] | Depreciation Expense | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Depreciation expense | $ | 304 | $ | 324 | ||||
Valuation Accounts [Table Text Block] | Certain valuation accounts were as follows: | |||||||
In millions | 31-Mar-15 | 31-Dec-14 | ||||||
Accumulated depreciation | $ | 20,279 | $ | 20,340 | ||||
Allowance for doubtful accounts | 78 | 82 | ||||||
Schedule of Interest Payments [Table Text Block] | Cash payments related to interest were as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Interest payments | $ | 129 | $ | 113 | ||||
Schedule of Interest Income and Interest Expense [Table Text Block] | Amounts related to interest were as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Interest expense (a) | $ | 159 | $ | 164 | ||||
Interest income (a) | 22 | 21 | ||||||
Capitalized interest costs | 7 | 6 | ||||||
(a) | Interest expense and interest income exclude approximately $9 million for the three months ended March 31, 2015 and $10 million for the three months ended March 31, 2014 related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). |
GOODWILL_AND_OTHER_INTANGIBLES1
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 three-month period ended March 31, 2015: | |||||||||||||||
In millions | Industrial | Printing | Consumer | Total | ||||||||||||
Packaging | Papers | Packaging | ||||||||||||||
Balance as of January 1, 2015 | ||||||||||||||||
Goodwill | $ | 3,396 | $ | 2,234 | $ | 1,784 | $ | 7,414 | ||||||||
Accumulated impairment losses (a) | (100 | ) | (1,877 | ) | (1,664 | ) | (3,641 | ) | ||||||||
3,296 | 357 | 120 | 3,773 | |||||||||||||
Reclassifications and other (b) | (39 | ) | (53 | ) | — | (92 | ) | |||||||||
Additions/reductions | — | (4 | ) | (c) | — | (4 | ) | |||||||||
Balance as of March 31, 2015 | ||||||||||||||||
Goodwill | 3,357 | 2,177 | 1,784 | 7,318 | ||||||||||||
Accumulated impairment losses (a) | (100 | ) | (1,877 | ) | (1,664 | ) | (3,641 | ) | ||||||||
Total | $ | 3,257 | $ | 300 | $ | 120 | $ | 3,677 | ||||||||
(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 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: | |||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||
In millions | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Customer relationships and lists | $ | 526 | $ | 153 | $ | 561 | $ | 157 | ||||||||
Non-compete agreements | 72 | 53 | 74 | 53 | ||||||||||||
Tradenames, patents and trademarks | 61 | 46 | 61 | 44 | ||||||||||||
Land and water rights | 90 | 9 | 81 | 9 | ||||||||||||
Fuel and power agreements | 5 | 3 | 5 | 3 | ||||||||||||
Software | 22 | 21 | 23 | 22 | ||||||||||||
Other | 36 | 16 | 43 | 21 | ||||||||||||
Total | $ | 812 | $ | 301 | $ | 848 | $ | 309 | ||||||||
Amortization Expense of Intangible Assets [Table Text Block] | The Company recognized the following amounts as amortization expense related to intangible assets: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | ||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||
Amortization expense related to intangible assets | $ | 13 | $ | 18 | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Payments, Net of Refunds [Table Text Block] | International Paper made income tax payments, net of refunds, as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Income tax payments, net | $ | 26 | $ | 40 | ||||
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 three months ended March 31, 2015: | |||||||
In millions | Unrecognized | Accrued Estimated | ||||||
Tax Benefits | Interest and Tax | |||||||
Penalties | ||||||||
Balance at December 31, 2014 | $ | (158 | ) | $ | (41 | ) | ||
Activity for three months ended March 31, 2015 | 8 | 7 | ||||||
Balance at March 31, 2015 | $ | (150 | ) | $ | (34 | ) | ||
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: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Special items | $ | — | $ | (199 | ) | |||
Tax-related adjustments: | ||||||||
State legislative changes | — | 10 | ||||||
Other | — | (1 | ) | |||||
Income tax provision (benefit) related to special items | $ | — | $ | (190 | ) | |||
VARIABLE_INTEREST_ENTITIES_AND1
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Entities [Member] | ||||||||
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the Entities was as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Revenue (a) | $ | 9 | $ | 10 | ||||
Expense (a) | 18 | 18 | ||||||
Cash receipts (b) | 10 | 12 | ||||||
Cash payments (c) | 36 | 37 | ||||||
(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 effect 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 | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Revenue (a) | $ | 6 | $ | 6 | ||||
Expense (b) | 6 | 6 | ||||||
Cash receipts (c) | 2 | 2 | ||||||
Cash payments (d) | 4 | 5 | ||||||
(a) | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million for each of the three months ended March 31, 2015 and 2014, 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 for each of the three months ended March 31, 2015 and 2014, 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) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Extinguishment [Table Text Block] | Amounts related to early debt extinguishment during the three months ended March 31, 2015 and 2014 were as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Early debt reductions (a) | $ | 217 | $ | 9 | ||||
Pre-tax early debt extinguishment costs | 1 | — | ||||||
(a) | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended March 31, 2015 and from 6.00% to 6.70% with original maturities from 2024 to 2027 for the three months ended March 31, 2014. |
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) | ||||||||||||||||||||||||
Brazilian real / U.S. dollar - Forward | 56 | 166 | ||||||||||||||||||||||
British pounds / Brazilian real – Forward | 4 | 5 | ||||||||||||||||||||||
European euro / Brazilian real – Forward | 6 | 9 | ||||||||||||||||||||||
European euro / Polish zloty – Forward | 242 | 280 | ||||||||||||||||||||||
Mexican peso / U.S. dollar - Forward | 249 | — | ||||||||||||||||||||||
U.S. dollar / Brazilian real – Forward | 82 | 125 | ||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships: | ||||||||||||||||||||||||
Interest rate contracts (in USD) | 230 | 230 | ||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) | ||||||||||||||||||||||||
Indian rupee / U.S. dollar - Forward | 58 | 43 | ||||||||||||||||||||||
Mexican peso / U.S. dollar - Forward | — | 187 | ||||||||||||||||||||||
U.S. dollar / Brazilian real - Forward | 6 | 11 | ||||||||||||||||||||||
(a) | These contracts had maturities of three years or less as of March 31, 2015. | |||||||||||||||||||||||
(b) | These contracts had maturities of one year or less as of March 31, 2015. | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Foreign exchange contracts | $ | 6 | $ | 4 | ||||||||||||||||||||
Total | $ | 6 | $ | 4 | ||||||||||||||||||||
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 | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | ||||||||||||||||||||||||
Foreign exchange contracts | $ | (3 | ) | $ | (5 | ) | Cost of products sold | |||||||||||||||||
Total | $ | (3 | ) | $ | (5 | ) | ||||||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | |||||||||||||||||||||||
In Consolidated | ||||||||||||||||||||||||
Statement | ||||||||||||||||||||||||
of Operations | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
In millions | 2015 | 2014 | ||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships: | ||||||||||||||||||||||||
Interest rate contracts | $ | 2 | $ | — | Interest expense, net | |||||||||||||||||||
Debt | (2 | ) | — | Interest expense, net | ||||||||||||||||||||
Total | $ | — | $ | — | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Electricity contact | $ | (1 | ) | $ | 1 | Cost of products sold | ||||||||||||||||||
Embedded derivatives | — | — | Interest expense, net | |||||||||||||||||||||
Foreign exchange contracts | (2 | ) | — | Cost of products sold | ||||||||||||||||||||
Interest rate contracts | 3 | 3 | Interest expense, net | |||||||||||||||||||||
Total | $ | — | $ | 4 | ||||||||||||||||||||
Schedule of Interest Rate Derivative Activity [Table Text Block] | The following activity is related to fully effective interest rate swaps designated as fair value hedges: | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
In millions | Issued | Terminated | Undesignated | Issued | Terminated | Undesignated | ||||||||||||||||||
First Quarter | $ | — | $ | — | $ | — | $ | 55 | $ | — | $ | — | ||||||||||||
Total | $ | — | $ | — | $ | — | $ | 55 | $ | — | $ | — | ||||||||||||
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 | 31-Mar-15 | 31-Dec-14 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||
Foreign exchange contracts – cash flow | $ | 23 | (a) | $ | 16 | (c) | $ | 18 | (e) | $ | 14 | (e) | ||||||||||||
Interest rate contracts - fair value | 2 | (b) | — | — | — | |||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 25 | $ | 16 | $ | 18 | $ | 14 | ||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Electricity contract | — | — | 2 | (e) | 2 | (e) | ||||||||||||||||||
Foreign exchange contracts | — | 1 | (d) | 2 | (e) | 2 | (e) | |||||||||||||||||
Total derivatives not designated as hedging instruments | $ | — | $ | 1 | $ | 4 | $ | 4 | ||||||||||||||||
Total derivatives | $ | 25 | $ | 17 | $ | 22 | $ | 18 | ||||||||||||||||
(a) | Includes $17 million recorded in Other current assets and $6 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 $14 million recorded in Other current assets and $2 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) | Included in Other accrued liabilities in the accompanying consolidated balance sheet. |
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Service cost | $ | 39 | $ | 38 | ||||
Interest cost | 149 | 153 | ||||||
Expected return on plan assets | (196 | ) | (189 | ) | ||||
Actuarial loss | 119 | 80 | ||||||
Amortization of prior service cost | 11 | 8 | ||||||
Net periodic pension expense | $ | 122 | $ | 90 | ||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
In millions | 2015 | 2014 | ||||||
Total stock-based compensation expense (selling and administrative) | $ | 33 | $ | 13 | ||||
Income tax benefits related to stock-based compensation | 89 | 85 | ||||||
INDUSTRY_SEGMENT_INFORMATION_T
INDUSTRY SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by industry segment for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
In millions | 2015 | 2014 | |||||||
Industrial Packaging | $ | 3,553 | $ | 3,693 | |||||
Printing Papers | 1,228 | 1,406 | |||||||
Consumer Packaging | 778 | 829 | |||||||
Corporate and Intersegment Sales | (42 | ) | (204 | ) | |||||
Net Sales | $ | 5,517 | $ | 5,724 | |||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by industry segment for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
In millions | 2015 | 2014 | |||||||
Industrial Packaging | $ | 468 | $ | 453 | (a) | ||||
Printing Papers | 109 | (410 | ) | (b) | |||||
Consumer Packaging | 46 | 17 | (c) | ||||||
Operating Profit | 623 | 60 | |||||||
Interest expense, net | (137 | ) | (143 | ) | |||||
Noncontrolling interests/equity earnings adjustment (d) | 1 | — | |||||||
Corporate items, net | (9 | ) | (11 | ) | |||||
Restructuring and other charges | — | (1 | ) | ||||||
Non-operating pension expense | (72 | ) | (44 | ) | |||||
Earnings (loss) from continuing operations before income taxes and equity earnings | $ | 406 | $ | (139 | ) | ||||
Equity earnings (loss), net of taxes – Ilim | $ | 39 | $ | (31 | ) | ||||
(a) | Includes charges of $12 million for integration costs associated with the acquisition of Temple-Inland, a charge of $2 million associated with our Brazil Packaging business, a charge of $1 million related to the restructuring of our Asia box operations and a gain of $1 million for other items. | ||||||||
(b) | Includes charges of $495 million for costs associated with the shutdown of our Courtland, Alabama mill. | ||||||||
(c) | Includes charges of $1 million for costs associated with the Coated Paperboard sheet plant closures. | ||||||||
(d) | 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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Line Items] | ||
Beginning balance | $5,263 | $8,284 |
Issuance of stock for various plans, net | 141 | 128 |
Repurchase of stock | -141 | -388 |
Common stock dividends ($.4000 per share in 2015 and $0.3500 per share in 2014) | -174 | -158 |
Comprehensive income (loss) | -86 | -120 |
Ending balance | 5,003 | 7,746 |
Total International Paper Shareholders' Equity [Member] | ||
Equity [Line Items] | ||
Beginning balance | 5,115 | 8,105 |
Issuance of stock for various plans, net | 141 | 128 |
Repurchase of stock | -141 | -388 |
Common stock dividends ($.4000 per share in 2015 and $0.3500 per share in 2014) | -174 | -158 |
Comprehensive income (loss) | -83 | -114 |
Ending balance | 4,858 | 7,573 |
Noncontrolling Interests [Member] | ||
Equity [Line Items] | ||
Beginning balance | 148 | 179 |
Issuance of stock for various plans, net | 0 | 0 |
Repurchase of stock | 0 | 0 |
Common stock dividends ($.4000 per share in 2015 and $0.3500 per share in 2014) | 0 | 0 |
Comprehensive income (loss) | -3 | -6 |
Ending balance | $145 | $173 |
EQUITY_Other_Detail
EQUITY (Other) (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity [Line Items] | ||
Common stock dividends, per share | $0.40 | $0.35 |
Total International Paper Shareholders' Equity [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | $0.40 | $0.35 |
Noncontrolling Interests [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | $0.40 | $0.35 |
OTHER_COMPREHENSIVE_INCOME_OTH2
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ($4,646) | [1] | ($2,759) | [1] | ||||
Other comprehensive income (loss), before reclassifications, net of tax | -478 | [1] | -78 | [1] | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | 81 | [1] | 57 | [1] | ||||
Other comprehensive income (loss), net of tax | -397 | [1] | -21 | [1] | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | 1 | [1] | 2 | [1] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -5,042 | [1] | -2,778 | [1] | -4,646 | |||
Accumulated Defined Benefit Pension Plans Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | -3,134 | [1] | -2,105 | [1] | ||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | [1] | -100 | [1] | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | 78 | [1] | 52 | [1] | ||||
Other comprehensive income (loss), net of tax | 78 | [1] | -48 | [1] | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | 0 | [1] | 0 | [1] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -3,056 | [1] | -2,153 | [1] | ||||
Accumulated Translation Adjustment [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | -1,513 | [1] | -649 | [1] | ||||
Other comprehensive income (loss), before reclassifications, net of tax | -484 | [1] | 18 | [1] | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | 0 | [1] | 0 | [1] | ||||
Other comprehensive income (loss), net of tax | -484 | [1] | 18 | [1] | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | 1 | [1] | 2 | [1] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -1,996 | [1] | -629 | [1] | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1 | [1] | -5 | [1] | ||||
Other comprehensive income (loss), before reclassifications, net of tax | 6 | [1] | 4 | [1] | ||||
Reclassification from accumulated other comprehensive income, current period, net of tax | 3 | [1] | 5 | [1] | ||||
Other comprehensive income (loss), net of tax | 9 | [1] | 9 | [1] | ||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | 0 | [1] | 0 | [1] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $10 | [1] | $4 | [1] | ||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
OTHER_COMPREHENSIVE_INCOME_OTH3
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax (expense) benefit | ($130) | $80 | ||
Earnings (Loss) From Continuing Operations | 311 | -92 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Earnings (Loss) From Continuing Operations | -81 | [1] | -57 | [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 | -8 | [1],[2] | -4 | [1],[2] |
Actuarial gains (losses) | -120 | [1],[2] | -81 | [1],[2] |
Total pre-tax amount | -128 | [1] | -85 | [1] |
Tax (expense) benefit | 50 | [1] | 33 | [1] |
Earnings (Loss) From Continuing Operations | -78 | [1] | -52 | [1] |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total pre-tax amount | -6 | [1] | -8 | [1] |
Tax (expense) benefit | 3 | [1] | 3 | [1] |
Earnings (Loss) From Continuing Operations | -3 | [1] | -5 | [1] |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Exchange Forward [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | ($6) | [1],[3] | ($8) | [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 | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Earnings (loss) from continuing operations | $313 | ($88) | ||
Effect of dilutive securities (a) | 0 | [1] | 0 | [1] |
Earnings (loss) from continuing operations - assuming dilution | $313 | ($88) | ||
Average common shares outstanding | 421.2 | 435.6 | ||
Average common shares outstanding - assuming dilution | 423.7 | 435.6 | ||
Basic earnings (loss) from continuing operations per common share | $0.74 | ($0.20) | ||
Diluted earnings (loss) from continuing operations per common share | $0.74 | ($0.20) | ||
Restricted Stock Performance Share Plan [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Effect of dilutive securities (in shares) | 2.5 | [1] | 0 | [1] |
[1] | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING_AND_OTHER_CHARGE2
RESTRUCTURING AND OTHER CHARGES (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $0 | $499 | |
Courtland Mill Shutdown [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | 495 | [1] | |
Other Restructuring and Other Charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other charges | $4 | ||
[1] | During 2013, the Company deferred accelerating depreciation for certain assets as we evaluated possible alternative uses by one of our other businesses. During the first quarter of 2014, we completed our evaluation and concluded that there were no alternative uses for these assets.B We recognized approximately $430 million of accelerated depreciation related to these assets during the first quarter of 2014.B Other components of the first quarter of 2014 Courtland mill shutdown cost include site closure costs of $30 million, severance charges of $15 million and $20 million of other non-cash charges. |
RESTRUCTURING_AND_OTHER_CHARGE3
RESTRUCTURING AND OTHER CHARGES (Narrative)(Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other charges | $0 | $499 |
RESTRUCTURING_AND_OTHER_CHARGE4
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES (Footnotes) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Assets | $27,967 | $28,684 | |
Courtland Mill Shutdown [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | 430 | ||
Site closure costs | 30 | ||
Severance costs | 15 | ||
Other closure costs | $20 |
ACQUISITIONS_AND_JOINT_VENTURE1
ACQUISITIONS AND JOINT VENTURES (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Apr. 08, 2014 |
Business Acquisition [Line Items] | |||
Restricted cash | $2 | ||
Orsa IP [Member] | |||
Business Acquisition [Line Items] | |||
Noncontrolling interest, ownership percentage by noncontrolling owners | 25.00% | ||
Payments to acquire businesses, gross | 127 | ||
Acquisition of redeemable noncontrolling interest | 105 | ||
Indemnification asset, acquisitions | 22 | ||
Restricted cash | $9 | $11 |
DIVESTITURES_SPINOFF_DIVESTITU1
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Reconciliation of Major Line Items Constituting Pre-Tax Profit (Loss) of Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operations, Net of Taxes (a) | $0 | ($7) |
Discontinued Operations [Member] | xpedx divestiture [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net Sales | 1,290 | |
Cost of products sold | 1,140 | |
Selling and administrative expenses | 100 | |
Depreciation, amortization and cost of timber harvested | 4 | |
Distribution expenses | 34 | |
Restructuring and other charges | 18 | |
Disposal Group, Including Discontinued Operation, Other Expense | 2 | |
Earnings (Loss) Before Income Tax and Equity Earnings | -8 | |
Income tax provision (benefit) | -3 | |
Discontinued Operations, Net of Taxes (a) | ($5) |
DIVESTITURES_SPINOFF_Narrative
DIVESTITURES / SPINOFF (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 01, 2014 |
xpedx divestiture [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $50 | ||
Proceeds from spinoff | 411 | ||
Cash provided by (used for) investment activities - discontinued operations | $0 | ||
Veritiv [Member] | International Paper Employees [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Common stock, shares, issued | 8,160,000 |
SUPPLEMENTAL_FINANCIAL_STATEME2
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Temporary Investments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ||
Temporary investments | $1,234 | $1,480 |
SUPPLEMENT_FINANCIAL_STATEMENT
SUPPLEMENT FINANCIAL STATEMENT INFORMATION (Accounts and Notes Receivable) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $3,074 | $3,083 |
Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | 2,821 | 2,860 |
Other Non-Trade Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $253 | $223 |
SUPPLEMENTAL_FINANCIAL_STATEME3
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Inventories by Major Category) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $423 | $494 |
Finished pulp, paper and packaging | 1,386 | 1,273 |
Operating supplies | 556 | 562 |
Other | 72 | 95 |
Inventory, Net | $2,437 | $2,424 |
SUPPLEMENTAL_FINANCIAL_STATEME4
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Depreciation Expense) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Depreciation Expense [Line Items] | ||
Depreciation expense | $304 | $324 |
SUPPLEMENTAL_FINANCIAL_STATEME5
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Valuation Accounts) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accumulated depreciation | $20,279 | $20,340 |
Allowance for doubtful accounts | $78 | $82 |
SUPPLEMENTAL_FINANCIAL_STATEME6
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Cash Payments Related to Interest) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Payments [Line Items] | ||
Interest payments | $129 | $113 |
SUPPLEMENTAL_FINANCIAL_STATEME7
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Schedule of Interest Income and Interest Expense) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Interest Income and Interest Expense [Line Items] | ||||
Interest expense | $159 | [1] | $164 | [1] |
Interest income | 22 | [1] | 21 | [1] |
Capitalized interest costs | $7 | $6 | ||
[1] | Interest expense and interest income exclude approximately $9 million for the three months ended MarchB 31, 2015 and $10 million for the three months ended MarchB 31, 2014 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 (Schedule of Interest Income and Interest Expense Footnotes) (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Amounts Related To Interest [Line Items] | ||
Interest expense and interest income excluded, amount | ($9) | ($10) |
GOODWILL_AND_OTHER_INTANGIBLES2
GOODWILL AND OTHER INTANGIBLES (Changes in Goodwill Balances) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Beginning balance | $7,414 | ||
Accumulated impairment losses (a) | -3,641 | [1] | |
Total | 3,677 | 3,773 | |
Reclassifications and other (b) | -92 | [2] | |
Additions/reductions | -4 | ||
Ending balance | 7,318 | ||
Accumulated impairment losses (a) | -3,641 | [1] | |
Industrial Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 3,396 | ||
Accumulated impairment losses (a) | -100 | [1] | |
Total | 3,257 | 3,296 | |
Reclassifications and other (b) | -39 | [2] | |
Additions/reductions | 0 | [3] | |
Ending balance | 3,357 | ||
Accumulated impairment losses (a) | -100 | [1] | |
Printing Papers [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 2,234 | ||
Accumulated impairment losses (a) | -1,877 | [1] | |
Total | 300 | 357 | |
Reclassifications and other (b) | -53 | [2] | |
Additions/reductions | -4 | [3] | |
Ending balance | 2,177 | ||
Accumulated impairment losses (a) | -1,877 | [1] | |
Consumer Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 1,784 | ||
Accumulated impairment losses (a) | -1,664 | [1] | |
Total | 120 | 120 | |
Reclassifications and other (b) | 0 | [2] | |
Additions/reductions | 0 | ||
Ending balance | 1,784 | ||
Accumulated impairment losses (a) | ($1,664) | [1] | |
[1] | Represents accumulated goodwill impairment charges since the adoption of ASC 350, bIntangibles b Goodwill and Otherb in 2002. | ||
[2] | Represents the effects of foreign currency translations and reclassifications. | ||
[3] | 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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite and indefinite-lived intangible assets | $812 | $848 |
Accumulated amortization | 301 | 309 |
Customer Relationships and Lists [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangible assets | 526 | 561 |
Accumulated amortization | 153 | 157 |
Non-Compete Agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangible assets | 72 | 74 |
Accumulated amortization | 53 | 53 |
Tradenames, Patents and Trademarks [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite and indefinite-lived intangible assets | 61 | 61 |
Accumulated amortization | 46 | 44 |
Land and Water Rights [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite and indefinite-lived intangible assets | 90 | 81 |
Accumulated amortization | 9 | 9 |
Fuel and Power Agreements [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangible assets | 5 | 5 |
Accumulated amortization | 3 | 3 |
Software [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangible assets | 22 | 23 |
Accumulated amortization | 21 | 22 |
Other Intangible Assets [Member] | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite-lived intangible assets | 36 | 43 |
Accumulated amortization | $16 | $21 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Amortization Expense of Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets Amortization Expense [Line Items] | ||
Amortization of intangible assets | $13 | $18 |
INCOME_TAXES_Income_Tax_Paymen
INCOME TAXES (Income Tax Payments Net of Refunds) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Payments [Line Items] | ||
Income tax payments,net | $26 | $40 |
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 | Mar. 31, 2015 |
Schedule of Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Line Items] | |
Beginning balance, unrecognized tax benefits | ($158) |
Activity for three months, unrecognized tax benefits | 8 |
Ending balance, unrecognized tax benefits | -150 |
Beginning balance, accrued estimated interest and tax penalties | -41 |
Activity for the three months, accrued estimated interest | 7 |
Ending balance, accrued estimated interest and tax penalties | ($34) |
INCOME_TAXES_Components_of_Net
INCOME TAXES (Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | $0 | ($190) |
Special Items [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | 0 | -199 |
Settlement With Taxing Authority and Legislative Changes [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | 0 | 10 |
Tax Adjustments, Settlements, Unusual Provisions [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | $0 | ($1) |
INCOME_TAXES_Narrative_Detail
INCOME TAXES (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Estimated reduction of unrecognized tax benefits | $5 | |
Income tax provision benefit related to special items | $0 | ($190) |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Environmental Remediation Obligations) (Details) (USD $) | Mar. 31, 2015 | Jun. 30, 2011 |
In Millions, unless otherwise specified | ||
Site Contingency [Line Items] | ||
Accrual for environmental loss contingencies | $96 | |
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 45 | |
Cass Lake, Minnesota [Member] | ||
Site Contingency [Line Items] | ||
Accrual for environmental loss contingencies | $48 | $46 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Litigation) (Details) (USD $) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2010 | Mar. 31, 2015 | |
Kleen Products Llc Versus Packaging Corp of America [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, number of defendants | 8 | |
Number of claims filed | 4 | |
Harris County San Jacinto River Superfund Site [Member] | ||
Loss Contingencies [Line Items] | ||
Number of plaintiffs seeking damages | 400 | |
Kalamazoo River Superfund Site [Member] | Time Critical Removal Action [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | 19,000,000 | |
Kalamazoo River Superfund Site [Member] | Georgia-Pacific Consumer Products LP, Fort James Corporation and Georgia Pacific LLC Cost Recovery Action [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | 79,000,000 | |
Maximum [Member] | Harris County San Jacinto River Superfund Site [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought, value per day | 25,000 | |
Minimum [Member] | Harris County San Jacinto River Superfund Site [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought, value per day | 50 |
VARIABLE_INTEREST_ENTITIES_AND2
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Activity Between Company and Entities) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | $9 | [1] | $10 | [1] |
Expense | 18 | [1] | 18 | [1] |
Cash receipts | 10 | [2] | 12 | [2] |
Cash payments | 36 | [3] | 37 | [3] |
2007 Financing Entities [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 6 | [4] | 6 | [4] |
Expense | 6 | [5] | 6 | [5] |
Cash receipts | 2 | [6] | 2 | [6] |
Cash payments | $4 | [7] | $5 | [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 effect 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 for each of the three months ended MarchB 31, 2015 and 2014, 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 for each of the three months ended MarchB 31, 2015 and 2014, 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 VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Activity Between Company and Entities Footnotes) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Variable Interest Entity [Line Items] | ||
Accretion Income for Amortization of Purchase Accounting Adjustment, Financial Assets | $5 | $5 |
Accretion Expense for Amortization of Purchase Accounting Adjustment, Financial Liabiities | $2 | $2 |
VARIABLE_INTEREST_ENTITIES_AND4
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2007 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2006 | Dec. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2007 | |
acre | |||||||
Variable Interest Entity [Line Items] | |||||||
Forestlands acreage sales | 1,550,000 | ||||||
International Paper debt obligations held by the Entities | $9,100,000,000 | ||||||
Remainder of the borrowing included in long-term debt | 8,461,000,000 | 8,631,000,000 | 2,140,000,000 | ||||
Additional debt included in notes payable and current maturities | 664,000,000 | 742,000,000 | |||||
Letters of credit issued that support Timber Notes | 2,380,000,000 | ||||||
The percent of letters of credit supporting Timber Notes and Monetized Note that are cash collateralized | 100.00% | ||||||
Fair value of notes receivable as of acquisition date | 2,090,000,000 | ||||||
Notes receivable, fair value disclosure | 2,180,000,000 | ||||||
Fair value of financial assets as of acquisition date | 2,030,000,000 | ||||||
Long-term debt, fair value | 2,080,000,000 | ||||||
Accretion Income for Amortization of Purchase Accounting Adjustment, Financial Assets | 5,000,000 | 5,000,000 | |||||
Accretion Expense for Amortization of Purchase Accounting Adjustment, Financial Liabiities | 2,000,000 | 2,000,000 | |||||
Entities [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Deferred Tax Liabilities, Other | 1,400,000,000 | ||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
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 | ||||||
Entities acquired International Paper debt obligations for cash | 4,800,000,000 | ||||||
International Paper debt obligations held by the Entities | 5,200,000,000 | ||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Class B Interests In Entities [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Class B interests held in entities in December 2006 | 5,200,000,000 | 5,000,000,000 | |||||
International Paper debt obligations held by the Entities | 5,400,000,000 | 5,300,000,000 | |||||
Remainder of the borrowing included in long-term debt | 51,000,000 | 50,000,000 | |||||
Additional debt included in notes payable and current maturities | 107,000,000 | 107,000,000 | |||||
Timber Notes [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Forestlands acreage sales | 5,600,000 | ||||||
Letters of credit downgrade period of replacement | 60 days | ||||||
2007 Financing Entities [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Letters of credit downgrade period of replacement | 30 days | ||||||
Deferred Tax Liabilities, Other | $840,000,000 |
DEBT_Debt_ExtinguishmentDetail
DEBT (Debt Extinguishment)(Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Extinguishment of Debt [Line Items] | ||||
Debt reductions | $217 | [1] | $9 | [1] |
Pre-tax early debt extinguishment costs | $1 | $0 | ||
[1] | Reductions related to notes with interest rates ranging from 5.30% to 6.25% with original maturities from 2015 to 2025 for the three months ended MarchB 31, 2015 and from 6.00% to 6.70% with original maturities from 2024 to 2027 for the three months ended MarchB 31, 2014 |
DEBT_Debt_Extinguishment_Footn
DEBT (Debt Extinguishment Footnotes)(Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Extinguishment of Debt [Line Items] | ||
Debt instrument, interest rate, stated percentage rate range, minimum | 5.30% | 6.00% |
Debt instrument, interest rate, stated percentage rate range, maximum | 6.25% | 6.70% |
Original maturity date range, minimum | 2015 | 2024 |
Original maturity date range, maximum | 2025 | 2027 |
DEBT_Narrative_Detail
DEBT (Narrative) (Detail) (USD $) | Mar. 31, 2015 |
In Billions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Debt and capital lease obligations | $9.10 |
Debt fair value | $10.40 |
DERIVATIVES_AND_HEDGING_ACTIVI2
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments) (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | ||||||||
In Millions, unless otherwise specified | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [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] | Cash Flow Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | ||||||||
Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Foreign Exchange Contracts to Sell Indian Rupee for US Dollar [Member] | Foreign Exchange Contracts to Sell Indian Rupee for US Dollar [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [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] | Foreign Exchange Forward [Member] | Foreign Exchange Forward [Member] | Interest Rate Swap [Member] | Interest Rate Swap [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] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contracts to Sell Brazilian Real for U S Dollar [Member] | Foreign Exchange Contracts to Sell Brazilian Real for U S Dollar [Member] | Foreign Exchange Contracts to Sell British Pounds for Brazilian Real [Member] | Foreign Exchange Contracts to Sell British Pounds for Brazilian Real [Member] | Foreign Exchange Contracts to Sell European Euro for Brazilian Real [Member] | Foreign Exchange Contracts to Sell European Euro for Brazilian Real [Member] | Foreign Exchange Contracts to Sell European Euro for Polish Zloty [Member] | Foreign Exchange Contracts to Sell European Euro for Polish Zloty [Member] | Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | |||||||||
USD ($) | USD ($) | INR | INR | MXN | MXN | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | USD ($) | USD ($) | |||||||||
BRL | BRL | GBP (£) | GBP (£) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | USD ($) | USD ($) | MXN | MXN | |||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||||||||
Derivative Notional Amount | $6 | [1] | $11 | 58 | [1] | 43 | 0 | 187 | 56 | [2] | 166 | £ 4 | [2] | £ 5 | € 6 | [2] | € 9 | € 242 | [2] | € 280 | $82 | [2] | $125 | 249 | [2] | 0 | $230 | $230 |
[1] | These contracts had maturities of one year or less as of MarchB 31, 2015. | |||||||||||||||||||||||||||
[2] | These contracts had maturities of three years or less as of MarchB 31, 2015. |
DERIVATIVES_AND_HEDGING_ACTIVI3
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments Other) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative [Line Items] | |
Maximum Length of Time, Foreign Currency Cash Flow Hedge | 3 years |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Maximum Length Of Time Hedged In Undesignated Foreign Currency Cash Flow Hedges | 1 year |
DERIVATIVES_AND_HEDGING_ACTIVI4
DERIVATIVES AND HEDGING ACTIVITIES (Gains Losses Recognized in Accumulated Other Comprehensive Income AOCI Net of Tax Related to Derivative Instruments) (Details) (Designated as Hedging Instrument [Member], Other Comprehensive Income (Loss) [Member], Cash Flow Hedging [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $6 | $4 |
Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $6 | $4 |
DERIVATIVES_AND_HEDGING_ACTIVI5
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
InterestIncomeExpense [Member] | Debt [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | ($2) | $0 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 4 |
Not Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | Energy Related Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -1 | 1 |
Not Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | -2 | 0 |
Not Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | Embedded Derivative [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Not Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 3 | 3 |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 |
Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -3 | -5 |
Designated as Hedging Instrument [Member] | Cost of Products Sold [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -3 | -5 |
Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | Fair Value Hedging [Member] | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $2 | $0 |
DERIVATIVES_AND_HEDGING_ACTIVI6
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Interest Rate Derivative Activity) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Terminated | $0 | $0 |
Notional Amount Of Derivative Instrument, Undesignated | 0 | 0 |
Notional Amount Of Derivative Instrument, Issued | 0 | 55 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Undesignated | 0 | 0 |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount Of Derivative Instrument, Terminated | 0 | 0 |
Notional Amount Of Derivative Instrument, Issued | $0 | $55 |
DERIVATIVES_AND_HEDGING_ACTIVI7
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | $25 | $17 | ||
Derivative Liabilities | 22 | 18 | ||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 25 | 16 | ||
Derivative Liabilities | 18 | 14 | ||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 1 | ||
Derivative Liabilities | 4 | 4 | ||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 1 | [1] | |
Derivative Liabilities | 2 | [2] | 2 | [2] |
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | 0 | ||
Derivative Liabilities | 2 | [2] | 2 | [2] |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 23 | [3] | 16 | [4] |
Derivative Liabilities | 18 | [2] | 14 | [2] |
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 2 | [5] | 0 | |
Derivative Liabilities | $0 | $0 | ||
[1] | Included in Other current assets in the accompanying consolidated balance sheet. | |||
[2] | Included in Other accrued liabilities in the accompanying consolidated balance sheet. | |||
[3] | Includes $17 million recorded in Other current assets and $6 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[4] | Includes $14 million recorded in Other current assets and $2 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | |||
[5] | Included in Deferred charges and other assets in the accompanying consolidated balance sheet. |
DERIVATIVES_AND_HEDGING_ACTIVI8
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet Other) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $25 | $17 |
Derivative Liabilities | 22 | 18 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 17 | 14 |
Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6 | 2 |
Energy Related Derivative [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2 | 2 |
Foreign Exchange Forward [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | |
Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 2 | 2 |
Interest Rate Swap [Member] | Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 2 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 25 | 16 |
Derivative Liabilities | 18 | 14 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $18 | $14 |
DERIVATIVES_AND_HEDGING_ACTIVI9
DERIVATIVES AND HEDGING ACTIVITIES (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Collateral Posted Related to Credit-Risk-Related Contingent Features | $0 | $0 |
Gain / (Loss) Recorded to AOCI After Tax, That Is Expected to be Reclassified to Earnings | 4,000,000 | |
Fair Values of Derivative Instruments Containing Credit Risk-Related Contingent Features in a Net Liability Position | $0 | $1,000,000 |
RETIREMENT_PLANS_Net_Periodic_
RETIREMENT PLANS (Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans) (Details) (U.S. Plans, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $39 | $38 |
Interest cost | 149 | 153 |
Expected return on plan assets | -196 | -189 |
Actuarial loss | 119 | 80 |
Amortization of prior service cost | 11 | 8 |
Net periodic benefit expense | $122 | $90 |
RETIREMENT_PLANS_Narrative_Det
RETIREMENT PLANS (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan employer cash contributions in current fiscal year | $0 | $58 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and postretirement liability adjustments, before tax | -170 | |
Pension and postretirement liability adjustments | -103 | |
Non Qualified [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefits paid | $5 |
STOCKBASED_COMPENSATION_STOCKB
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $89 | $85 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | $33 | $13 |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION (Summary of Performance Share Plan Activity) (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Nonvested Shares | |
Granted, nonvested shares / units | 1.9 |
Weighted Average Grant Date Fair Value | |
Granted, Nonvested, Weighted Average Grant Date Fair Value | $53.25 |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
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 | $218 |
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 13 months 8 days |
Stock Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for grant under ICP | 16.1 |
INDUSTRY_SEGMENT_INFORMATION_S
INDUSTRY SEGMENT INFORMATION (Sales by Industry Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Net Sales | $5,517 | $5,724 |
Industrial Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 3,553 | 3,693 |
Printing Papers [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 1,228 | 1,406 |
Consumer Packaging [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 778 | 829 |
Corporate and Intersegment Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Sales | ($42) | ($204) |
INDUSTRY_SEGMENT_INFORMATION_O
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Operating profit | $623 | $60 | ||
Interest expense, net | -137 | -143 | ||
Noncontrolling interests/equity earnings adjustment | 1 | [1] | 0 | [1] |
Corporate items, net | -9 | -11 | ||
Restructuring and other charges | 0 | -1 | ||
Non-operating pension expense | -72 | -44 | ||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 406 | -139 | ||
Equity earnings (loss), net of taxes | 35 | -33 | ||
Industrial Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 468 | 453 | [2] | |
Printing Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 109 | -410 | [3] | |
Consumer Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit | 46 | 17 | [4] | |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense, net | -137 | -143 | ||
Ilim Holding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity earnings (loss), net of taxes | $39 | ($31) | ||
[1] | 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. | |||
[2] | Includes charges of $12 million for integration costs associated with the acquisition of Temple-Inland, a charge of $2 million associated with our Brazil Packaging business, a charge of $1 million related to the restructuring of our Asia box operations and a gain of $1 million for other items. | |||
[3] | Includes charges of $495 million for costs associated with the shutdown of our Courtland, Alabama mill. | |||
[4] | Includes charges of $1 million for costs associated with the Coated Paperboard sheet plant closures. |
INDUSTRY_SEGMENT_INFORMATION_O1
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment Footnotes) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | $0 | $499 | |
Brazil Packaging Business [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 2 | ||
Ontario sheet plant closure [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 1 | ||
Courtland Mill Shutdown [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 495 | [1] | |
Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | 1 | ||
Restructuring Charges [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other charges | -1 | ||
Temple Inland Inc [Member] | |||
Segment Reporting Information [Line Items] | |||
Integration costs | $12 | ||
[1] | During 2013, the Company deferred accelerating depreciation for certain assets as we evaluated possible alternative uses by one of our other businesses. During the first quarter of 2014, we completed our evaluation and concluded that there were no alternative uses for these assets.B We recognized approximately $430 million of accelerated depreciation related to these assets during the first quarter of 2014.B Other components of the first quarter of 2014 Courtland mill shutdown cost include site closure costs of $30 million, severance charges of $15 million and $20 million of other non-cash charges. |
INDUSTRY_SEGMENT_INFORMATION_N1
INDUSTRY SEGMENT INFORMATION (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Related Party Transaction, Purchases from Related Party | $43 | $58 | |
Income (loss) from equity method investments | 35 | -33 | |
Ilim Holding [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity method investments | 202 | 170 | |
Equity method investment, difference between carrying amount and underlying equity | 156 | 158 | |
Percentage of equity interest | 50.00% | ||
Income (loss) from equity method investments | $39 | ($31) |