Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IP | |
Entity Registrant Name | INTERNATIONAL PAPER CO /NEW/ | |
Entity Central Index Key | 51,434 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 414,566,922 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Sales | $ 5,691 | $ 6,051 | $ 16,922 | $ 17,674 |
Costs and Expenses | ||||
Cost of products sold | 3,891 | 4,055 | 11,703 | 12,149 |
Selling and administrative expenses | 417 | 467 | 1,226 | 1,331 |
Depreciation, amortization and cost of timber harvested | 329 | 358 | 980 | 1,060 |
Distribution expenses | 334 | 394 | 1,058 | 1,137 |
Taxes other than payroll and income taxes | 39 | 43 | 127 | 137 |
Restructuring and other charges | 25 | 24 | 219 | 830 |
Impairment of business | 186 | 0 | 186 | 0 |
Interest expense, net | 141 | 158 | 422 | 465 |
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 329 | 552 | 1,001 | 565 |
Income tax provision (benefit) | 106 | 147 | 346 | 89 |
Equity earnings (loss), net of taxes | (13) | (72) | 84 | (64) |
Earnings (Loss) From Continuing Operations | 210 | 333 | 739 | 412 |
Discontinued operations, net of taxes | 0 | 16 | 0 | (4) |
Net Earnings (Loss) | 210 | 349 | 739 | 408 |
Less: Net earnings (loss) attributable to noncontrolling interests | (10) | (6) | (21) | (13) |
Net Earnings (Loss) Attributable to International Paper Company | $ 220 | $ 355 | $ 760 | $ 421 |
Basic Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||||
Earnings (loss) from continuing operations | $ 0.53 | $ 0.80 | $ 1.81 | $ 0.99 |
Discontinued operations, net of taxes | 0 | 0.04 | 0 | (0.01) |
Net earnings (loss) | 0.53 | 0.84 | 1.81 | 0.98 |
Diluted Earnings (Loss) Per Share Attributable to International Paper Company Common Shareholders | ||||
Earnings (loss) from continuing operations | 0.53 | 0.79 | 1.80 | 0.98 |
Discontinued operations, net of taxes | 0 | 0.04 | 0 | (0.01) |
Net earnings (loss) | $ 0.53 | $ 0.83 | $ 1.80 | $ 0.97 |
Average Shares of Common Stock Outstanding - assuming dilution | 417.5 | 428.6 | 421.9 | 433.7 |
Cash Dividends Per Common Share | $ 0.4000 | $ 0.3500 | $ 1.2000 | $ 1.0500 |
Amounts Attributable to International Paper Company Common Shareholders | ||||
Earnings (loss) from continuing operations | $ 220 | $ 339 | $ 760 | $ 425 |
Discontinued operations, net of taxes | 0 | 16 | 0 | (4) |
Net Earnings (Loss) Attributable to International Paper Company | $ 220 | $ 355 | $ 760 | $ 421 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net Earnings (Loss) | $ 210 | $ 349 | $ 739 | $ 408 | |
Other Comprehensive Income (Loss), Net of Tax: | |||||
Change in cumulative foreign currency translation adjustment | (562) | (492) | (955) | (399) | |
Net gains/losses on cash flow hedging derivatives: | |||||
Net gains (losses) arising during the period | (8) | 1 | (2) | 17 | |
Reclassification adjustment for (gains) losses included in net earnings (loss) | 7 | (7) | 12 | (6) | |
Total Other Comprehensive Income (Loss), Net of Tax | [1] | (477) | (439) | (718) | (311) |
Comprehensive Income (Loss) | (267) | (90) | 21 | 97 | |
Net (earnings) loss attributable to noncontrolling interests | 10 | 6 | 21 | 13 | |
Other comprehensive (income) loss attributable to noncontrolling interests | 5 | 2 | 6 | 5 | |
Comprehensive Income (Loss) Attributable to International Paper Company | (252) | (82) | 48 | 115 | |
U.S. Plans | |||||
Other Comprehensive Income (Loss), Net of Tax: | |||||
Amortization of pension and post-retirement prior service costs and net loss: | 72 | 60 | 215 | 181 | |
Pension and postretirement liability adjustments | 14 | 0 | 14 | (106) | |
Foreign Pension Plan, Defined Benefit [Member] | |||||
Other Comprehensive Income (Loss), Net of Tax: | |||||
Pension and postretirement liability adjustments | $ 0 | $ (1) | $ (2) | $ 2 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Current Assets | |||
Cash and temporary investments | $ 1,104 | $ 1,881 | |
Accounts and notes receivable, net | 2,832 | 3,083 | |
Inventories | 2,340 | 2,424 | |
Deferred income tax assets | 326 | 331 | |
Assets held for sale | 1,095 | 0 | |
Other current assets | 212 | 240 | |
Financial assets of special purpose entities (Note 13) | 4,845 | 0 | |
Total Current Assets | 12,754 | 7,959 | |
Plants, Properties and Equipment, net | 11,832 | 12,728 | |
Forestlands | 356 | 507 | |
Investments | 260 | 248 | |
Financial Assets of Special Purpose Entities (Note 13) | 2,159 | 2,145 | |
Goodwill | 3,472 | 3,773 | |
Deferred Charges and Other Assets | 1,148 | 1,324 | |
Total Assets | 31,981 | 28,684 | |
Current Liabilities | |||
Notes payable and current maturities of long-term debt | 753 | 742 | |
Liabilities held for sale | 943 | 0 | |
Accounts payable | 2,096 | 2,664 | |
Accrued payroll and benefits | 422 | 477 | |
Other accrued liabilities | 1,113 | 1,026 | |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 13) | 4,220 | 0 | |
Total Current Liabilities | 9,547 | 4,909 | |
Long-Term Debt | 8,887 | 8,631 | |
Nonrecourse Financial Liabilities of Special Purpose Entities (Note 13) | 2,056 | 2,050 | |
Deferred Income Taxes | 3,191 | 3,063 | |
Pension Benefit Obligation | 3,017 | 3,819 | |
Postretirement and Postemployment Benefit Obligation | 363 | 396 | |
Other Liabilities | 450 | 553 | |
Equity | |||
Common stock, $1 par value, 2015 - 448.9 shares and 2014 - 448.9 shares | 449 | 449 | |
Paid-in capital | 6,251 | 6,245 | |
Retained earnings | 4,656 | 4,409 | |
Accumulated other comprehensive loss | (5,358) | [1] | (4,646) |
Shareholders' Equity before Treasury Stock, Total | 5,998 | 6,457 | |
Less: Common stock held in treasury, at cost, 2015 - 34.347 shares and 2014 - 28.734 shares | 1,649 | 1,342 | |
Total Shareholders' Equity | 4,349 | 5,115 | |
Noncontrolling interests | 121 | 148 | |
Total Equity | 4,470 | 5,263 | |
Total Liabilities and Equity | $ 31,981 | $ 28,684 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares | 448,900 | 448,900 |
Common stock held in treasury, shares | 34,347 | 28,734 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Activities | |||||
Net earnings (loss) | $ 210 | $ 349 | $ 739 | $ 408 | |
Depreciation, amortization and cost of timber harvested | 980 | 1,068 | |||
Deferred income tax provision, net | 101 | (139) | |||
Restructuring and other charges | 219 | 865 | |||
Pension plan contributions | (750) | (353) | |||
Impairment of business | 186 | 0 | 186 | 0 | |
Equity (earnings) loss, net | 13 | 72 | (84) | 64 | |
Periodic pension expense, net | 350 | 290 | |||
Other, net | 132 | 66 | |||
Changes in current assets and liabilities | |||||
Accounts and notes receivable | (166) | (214) | |||
Inventories | (221) | (118) | |||
Accounts payable and accrued liabilities | 77 | (49) | |||
Interest payable | 24 | 16 | |||
Other | 3 | 29 | |||
Cash Provided By (Used For) Operations | 1,590 | 1,933 | |||
Investment Activities | |||||
Invested in capital projects | (998) | (961) | |||
Proceeds from spinoff | 0 | 385 | |||
Investment in Special Purpose Entities | (198) | 0 | |||
Proceeds from sale of fixed assets | 32 | 49 | |||
Other | (35) | (31) | |||
Cash Provided By (Used For) Investment Activities | (1,199) | (558) | |||
Financing Activities | |||||
Repurchases of common stock and payments of restricted stock tax withholding | (505) | (891) | |||
Issuance of common stock | 2 | 59 | |||
Issuance of debt | 2,440 | 1,970 | |||
Reduction of debt | (2,202) | (1,762) | |||
Change in book overdrafts | 15 | 20 | |||
Dividends paid | (503) | (451) | |||
Acquisition of redeemable noncontrolling interest | 0 | (114) | |||
Debt tender premiums paid | (211) | (269) | |||
Other | 0 | (4) | |||
Cash Provided By (Used For) Financing Activities | (964) | (1,442) | |||
Cash Included in Assets Held for Sale | (2) | (143) | 0 | ||
Effect of Exchange Rate Changes on Cash | (61) | (17) | |||
Change in Cash and Temporary Investments | (777) | (84) | |||
Cash and Temporary Investments | |||||
Beginning of period | 1,881 | 1,802 | $ 1,802 | ||
End of period | $ 1,104 | $ 1,718 | $ 1,104 | $ 1,718 | $ 1,881 |
BASIS OF PRESENTATION (Note)
BASIS OF PRESENTATION (Note) | 9 Months Ended |
Sep. 30, 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 nine months of the year may not necessarily be indicative of full year results. It is suggested that these consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 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) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments [Note Text Block] | RECENT ACCOUNTING DEVELOPMENTS Business Combinations In September 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-16, "Business Combinations - Simplifying the Accounting for Measurement Period Adjustments." This ASU provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU also requires acquirers to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. This ASU must be applied prospectively to adjustments to provisional amounts that occur after the effective date. Early adoption is permitted for financial statements that have not been issued. The Company is currently evaluating the provisions of this guidance. Inventory In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This ASU provides that entities should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measure using LIFO or the retail inventory method. This ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. Cloud Computing Arrangements In April 2015, the FASB issued ASU 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides clarification on whether a cloud computing arrangement includes a software license. If a software license is included, the customer should account for the license consistent with its accounting of other software licenses. If a software license is not included, the arrangement should be accounted for as a service contract. This ASU is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those years. Early adoption is permitted. The Company is currently evaluating the provisions of this guidance. Debt Issuance Costs In April 2015, the 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 was 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; however, in August 2015, the FASB issued ASU 2015-14 which defers the effective date by one year making the guidance effective for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the provisions of this guidance. Early adoption will be permitted as of the original effective date in ASU 2014-09. |
EQUITY (Note)
EQUITY (Note) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Equity [Note Text Block] | EQUITY A summary of the changes in equity for the nine months ended September 30, 2015 and 2014 is provided below: Nine Months Ended 2015 2014 In millions, except per share amounts Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 5,115 $ 148 $ 5,263 $ 8,105 $ 179 $ 8,284 Issuance of stock for various plans, net 204 — 204 221 — 221 Repurchase of stock (505 ) — (505 ) (891 ) — (891 ) Common stock dividends ($1.20 per share in 2015 and $1.05 per share in 2014) (513 ) — (513 ) (462 ) — (462 ) Xpedx spinoff — — — (313 ) — (313 ) Acquisition of redeemable noncontrolling interests — — — 47 — 47 Remeasurement of redeemable noncontrolling interest — — — (6 ) — (6 ) Comprehensive income (loss) 48 (27 ) 21 115 (18 ) 97 Ending Balance, September 30 $ 4,349 $ 121 $ 4,470 $ 6,816 $ 161 $ 6,977 |
OTHER COMPREHENSIVE INCOME OTHE
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Note) | 9 Months Ended |
Sep. 30, 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 September 30, 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, July 1, 2015 $ (2,993 ) $ (1,905 ) $ 12 $ (4,886 ) Other comprehensive income (loss) before reclassifications 14 (562 ) (8 ) (556 ) Amounts reclassified from accumulated other comprehensive income 72 — 7 79 Net Current Period Other Comprehensive Income (Loss) 86 (562 ) (1 ) (477 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 5 — 5 Balance, September 30, 2015 $ (2,907 ) $ (2,462 ) $ 11 $ (5,358 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the three -month period ended September 30, 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, July 1, 2014 $ (2,087 ) $ (553 ) $ 12 $ (2,628 ) Other comprehensive income (loss) before reclassifications (1 ) (475 ) 1 (475 ) Amounts reclassified from accumulated other comprehensive income 60 (17 ) (7 ) 36 Net Current Period Other Comprehensive Income (Loss) 59 (492 ) (6 ) (439 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 2 — 2 Balance, September 30, 2014 $ (2,028 ) $ (1,043 ) $ 6 $ (3,065 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the nine -month period ended September 30, 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 12 (955 ) (2 ) (945 ) Amounts reclassified from accumulated other comprehensive income 215 — 12 227 Net Current Period Other Comprehensive Income 227 (955 ) 10 (718 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 6 — 6 Balance, September 30, 2015 $ (2,907 ) $ (2,462 ) $ 11 $ (5,358 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the nine -month period ended September 30, 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 (104 ) (382 ) 17 (469 ) Amounts reclassified from accumulated other comprehensive income 181 (17 ) (6 ) 158 Net Current Period Other Comprehensive Income 77 (399 ) 11 (311 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 5 — 5 Balance, September 30, 2014 $ (2,028 ) $ (1,043 ) $ 6 $ (3,065 ) (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 and nine -month periods ended September 30 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (a) Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2015 2014 2015 2014 In millions: Defined benefit pension and postretirement items: Prior-service costs $ (9 ) $ (4 ) $ (25 ) $ (13 ) (b) Cost of products sold Actuarial gains (losses) (108 ) (95 ) (326 ) (284 ) (b) Cost of products sold Total pre-tax amount (117 ) (99 ) (351 ) (297 ) Tax (expense) benefit 45 39 136 116 Net of tax (72 ) (60 ) (215 ) (181 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — 17 — 17 Net (gains) losses on acquisition of business Tax (expense)/benefit — — — — Net of tax — 17 — 17 Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (12 ) 10 (19 ) 6 (c) Cost of products sold Total pre-tax amount (12 ) 10 (19 ) 6 Tax (expense)/benefit 5 (3 ) 7 — Net of tax (7 ) 7 (12 ) 6 Total reclassifications for the period $ (79 ) $ (36 ) $ (227 ) $ (158 ) (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 ATTRIBUTABLE
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Note) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended In millions, except per share amounts 2015 2014 2015 2014 Earnings (loss) from continuing operations $ 220 $ 339 $ 760 $ 425 Effect of dilutive securities (a) — — — — Earnings (loss) from continuing operations – assuming dilution $ 220 $ 339 $ 760 $ 425 Average common shares outstanding 415.1 425.3 418.7 429.9 Effect of dilutive securities (a) Restricted stock performance share plan 2.4 3.3 3.2 3.7 Stock options — — — 0.1 Average common shares outstanding – assuming dilution 417.5 428.6 421.9 433.7 Basic earnings (loss) from continuing operations per common share $ 0.53 $ 0.80 $ 1.81 $ 0.99 Diluted earnings (loss) from continuing operations per common share $ 0.53 $ 0.79 $ 1.80 $ 0.98 (a) Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES (Note) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities [Note Text Block] | RESTRUCTURING AND OTHER CHARGES 2015: During the three months ended September 30, 2015, restructuring and other charges totaling $25 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Timber monetization restructuring $ 17 Sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs 7 Other 1 Total $ 25 During the three months ended June 30, 2015, restructuring and other charges totaling $194 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Early debt extinguishment costs $ 207 Sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs (14 ) Other 1 Total $ 194 2014: During the three months ended September 30, 2014, restructuring and other charges totaling $24 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Courtland mill shutdown (a) $ 3 Early debt extinguishment costs 13 EMEA packaging restructuring 5 Other 3 Total $ 24 During the three months ended June 30, 2014, restructuring and other charges totaling $307 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Courtland mill shutdown (a) $ 49 Early debt extinguishment costs 262 Brazil packaging (7 ) Other 3 Total $ 307 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 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 and approximately $36 million of accelerated depreciation related to these assets during the first and second quarters of 2014, respectively. Other components of the second quarter of 2014 Courtland mill shutdown cost include site closure costs of $7 million , and severance charges of $6 million . 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. Components of the third quarter 2014 Courtland mill shutdown cost include severance charges of $2 million . |
ACQUISITIONS AND JOINT VENTURES
ACQUISITIONS AND JOINT VENTURES (Note) | 9 Months Ended |
Sep. 30, 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 of 2014, these open matters were successfully resolved, which resulted in $9 million being paid out of escrow to Jari and correspondingly added to the final purchase consideration. The remaining $2 million was released back to the Company. During the second quarter of 2014, the Company reversed the $168 million of Redeemable noncontrolling interest included on the March 31, 2014 consolidated balance sheet with the net difference between this balance and the 25% purchase price being reflected as an increase to Retained earnings on the consolidated balance sheet. |
DIVESTITURES _ SPINOFF (Note)
DIVESTITURES / SPINOFF (Note) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [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 and nine months ended September 30, 2014 in the consolidated statement of operations: In millions Three Months Ended Nine Months Ended September 30, 2014 Net Sales — $ 2,604 Cost and Expenses Cost of products sold — 2,309 Selling and administrative expenses — 191 Depreciation, amortization and cost of timber harvested — 9 Distribution expenses — 69 Restructuring and other charges (11 ) 24 Other, net — 3 Earnings (Loss) Before Income Taxes and Equity Earnings 11 (1 ) Income tax provision (benefit) (3 ) — Discontinued Operations, Net of Taxes (a) $ 14 $ (1 ) (a) These amounts, along with net income of $2 million and a net loss of $3 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 and nine months ended September 30, 2014, respectively. Total cash provided by operations related to xpedx of $29 million for the nine months ended September 30, 2014 is included in Cash Provided By (Used For) Operations in the consolidated statement of cash flows. Total cash provided by investing activities related to xpedx of $3 million for the nine months ended September 30, 2014 is included in Cash Provided By (Used for) Investment Activities in the consolidated statement of cash flows. Other Divestitures and Impairments The Company announced on October 8, 2015 that it had signed a definitive agreement with the Company's Chinese coated board joint venture partner, Shandong Sun Holding Group Co., Ltd., to sell its 55% interest in the IP Asia Coated Paperboard (IP-Sun JV) business within the Company's Consumer Packaging segment for RMB 149 million (approximately USD $23 million ). A determination was made that the current book value of the asset group exceeded its estimated fair value of $23 million , which is the agreed upon selling price. As a result, a pre-tax charge of $186 million was recorded during the three months ended September 30, 2015 in the Company's Consumer Packaging segment to write down the long-lived assets of this business to their estimated fair value. The amount of pre-tax losses related to the IP-Sun JV included in the Company's consolidated statement of operations for the three months and nine months ended September 30, 2015 were $208 million and $238 million , respectively, and for the three months and nine months ended September 30, 2014, $11 million and $33 million , respectively. The 2015 losses include the third quarter pre-tax impairment charge of $ 186 million ( $125 million after taxes). The amount of pre-tax losses related to noncontrolling interest of the IP-Sun JV included in the Company's consolidated statement of operations for the three months and nine months ended September 30, 2015 were $9 million and $19 million , respectively, and for the three months and nine months ended September 30, 2014, $2 million and $7 million , respectively. The assets related to the IP-Sun JV, totaling $1.095 billion are included in Assets held for sale in current assets in the accompanying consolidated balance sheet at September 30, 2015. The liabilities of the IP-Sun JV, totaling $943 million are included in Liabilities held for sale in current liabilities in the accompanying consolidated balance sheet at September 30, 2015. The table below reflects the major asset and liability categories of IP-Sun JV's balance sheet as consolidated in International Paper's balance sheet as of September 30, 2015. The IP-Sun JV will be deconsolidated from International Paper's consolidated balance sheet following the completion of the sale, which was deemed effective on October 13, 2015. In millions September 30, 2015 Total current assets $ 620 Plants, properties and equipment 479 Goodwill 117 Deferred Charges and Other Assets 65 1,281 Impairment Charge (186 ) Total assets $ 1,095 Payables and other short-term liabilities $ 564 Debt 373 Other long-term liabilities 6 Total liabilities 943 Shareholder's equity 56 Noncontrolling interest 96 Total equity 152 Total liabilities and equity $ 1,095 |
SUPPLEMENTAL FINANCIAL STATEMEN
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Note) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 December 31, 2014 Temporary investments $ 611 $ 1,480 Accounts and Notes Receivable In millions September 30, 2015 December 31, 2014 Accounts and notes receivable, net: Trade $ 2,631 $ 2,860 Other 201 223 Total $ 2,832 $ 3,083 Inventories In millions September 30, 2015 December 31, 2014 Raw materials $ 416 $ 494 Finished pulp, paper and packaging 1,263 1,273 Operating supplies 560 562 Other 101 95 Total $ 2,340 $ 2,424 Depreciation Expense Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Depreciation expense $ 309 $ 333 $ 919 $ 986 Valuation Accounts Certain valuation accounts were as follows: In millions September 30, 2015 December 31, 2014 Accumulated depreciation $ 20,455 $ 20,340 Allowance for doubtful accounts 71 82 There was no material activity related to asset retirement obligations during either of the three months or nine months ended September 30, 2015 or 2014 . Interest Cash payments related to interest were as follows: Nine Months Ended In millions 2015 2014 Interest payments $ 471 $ 503 Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Interest expense (a) $ 158 $ 172 $ 481 $ 512 Interest income (a) 17 14 59 47 Capitalized interest costs 5 5 19 17 (a) Interest expense and interest income exclude approximately $7 million and $25 million for the three months and nine months ended September 30, 2015 and $10 million and $29 million for the three months and nine months ended September 30, 2014 , respectively 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) | 9 Months Ended |
Sep. 30, 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 nine -month period ended September 30, 2015 : In millions Industrial Packaging Printing Papers Consumer Packaging Total 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) (73 ) (96 ) (120 ) (289 ) Additions/reductions (1 ) (11 ) (c) — (12 ) Balance as of September 30, 2015 Goodwill 3,322 2,127 1,664 7,113 Accumulated impairment losses (a) (100 ) (1,877 ) (1,664 ) (3,641 ) Total $ 3,222 $ 250 $ — $ 3,472 (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 as well as a reclassification to Assets held for sale of $117 million in Consumer Packaging due to the pending sale of our equity interest in IP-Sun JV. (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: September 30, 2015 December 31, 2014 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships and lists $ 494 $ 156 $ 561 $ 157 Non-compete agreements 70 55 74 53 Tradenames, patents and trademarks 60 51 61 44 Land and water rights 32 5 81 9 Fuel and power agreements 5 3 5 3 Software 21 20 23 22 Other 40 23 43 21 Total $ 722 $ 313 $ 848 $ 309 The Company recognized the following amounts as amortization expense related to intangible assets: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Amortization expense related to intangible assets $ 16 $ 19 $ 45 $ 55 |
INCOME TAXES (Note)
INCOME TAXES (Note) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Note Text Block] | INCOME TAXES International Paper made income tax payments, net of refunds, as follows: Nine Months Ended In millions 2015 2014 Income tax payments, net $ 118 $ 193 The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the nine months ended September 30, 2015 : In millions Unrecognized Tax Benefits Accrued Estimated Interest and Tax Penalties Balance at December 31, 2014 $ (158 ) $ (41 ) Activity for three months ended March 31, 2015 8 7 Activity for the three months ended June 30, 2015 — (1 ) Activity for three months ended September 30, 2015 1 2 Balance at September 30, 2015 $ (149 ) $ (33 ) 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 $40 million during the next 12 months. Included in the Company’s income tax provisions for the nine months ended September 30, 2015 and 2014 , are $109 million and $351 million of income tax benefits, respectively, related to special items. The components of the net provision related to special items were as follows: Nine Months Ended In millions 2015 2014 Special items $ (70 ) $ (360 ) Tax-related adjustments: Return to Accrual 23 — Internal restructurings (62 ) — State legislative changes — 10 Other — (1 ) Income tax provision (benefit) related to special items $ (109 ) $ (351 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Note) | 9 Months Ended |
Sep. 30, 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 $97 million in the aggregate at September 30, 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 $47 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 (NRDA). It is premature to predict the outcome of the NRDA 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 $40 million at September 30, 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 predict the outcome or estimate our maximum reasonably possible loss with respect to this site. However, we do not believe that any material loss is probable. 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. NCR Corporation and Weyerhaeuser Company are also named as defendants in the suit. 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 was 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 is the subject of a separate trial, which commenced September 24, 2015. We are unable to predict the outcome or estimate our maximum reasonably possible loss. However, we do not believe that any material loss is probable. 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 seeking civil penalties with regard to the alleged discharge of dioxin into the San Jacinto River from waste impoundments that are part of the San Jacinto River Superfund Site. In November 2014, International Paper secured a zero liability jury verdict. Harris County appealed the verdict in April 2015, and that appeal is pending. In October 2015, the Company settled for an immaterial amount a lawsuit related to the San Jacinto Superfund Site brought by approximately 400 local fishermen seeking medical monitoring and damages.The Company is defending one additional lawsuit related to the San Jacinto Superfund Site in which approximately 400 individuals allege property damage and personal injury. Because this case is still in 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. International Paper Company (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 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. In March 2015, the district court certified a class of direct purchasers of containerboard products; in June 2015, the United States Court of Appeals for the Seventh Circuit granted the defendants' petition to appeal and the class certification issue is now pending in that court. In June 2015, International Paper and Temple-Inland were named as defendants in a lawsuit captioned Del Monte Fresh Product N.A., Inc. v. Packaging Corporation of America (S.K. Fl.) , in which the plaintiff asserts substantially similar allegations to those raised in the Kleen Products LLC action. 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 Kleen Products LLC action is in the discovery stage and the Florida action and the Tennessee action are 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 alleged a conspiracy or agreement beginning on or before September 2011. The alleged classes were all persons who purchased gypsum board directly or indirectly from any defendant. The complainants sought 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, and this settlement received final court approval and was paid in the third quarter of 2015. In March 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 elected 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, as well as a similar action filed in British Columbia, Canada, 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, labor and employment, contracts, sales of property, intellectual property, personal injury and other matters, some of which allege substantial monetary damages. While any proceeding or litigation has the element of uncertainty, the Company believes that the outcome of any of the lawsuits or claims that are pending or threatened or all of them combined (other than those that cannot be assessed due to their preliminary nature) will not have a material effect on its consolidated financial statements. |
VARIABLE INTEREST ENTITIES AND
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Note) | 9 Months Ended |
Sep. 30, 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 special purpose 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 special purpose entities (the Investor Entities, and together with the Borrower Entities, the Entities) in exchange for Class A and Class B interests in these entities, and simultaneously sold its Class A interest in the Investor Entities to a third party investor. As a result, at December 31, 2006, International Paper held Class B interests in the Borrower Entities and Class B interests in the Investor Entities valued at approximately $5.0 billion . International Paper did not provide any financial support that was not previously contractually required for the nine months ended September 30, 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 provided that International Paper had, and intended 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 had offset approximately $5.2 billion of Class B interests in the Entities against $5.3 billion of International Paper debt obligations held by these Entities at December 31, 2014 , and despite the offset treatment, these remained debt obligations of International Paper. Remaining borrowings of $50 million at December 31, 2014 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 December 31, 2014 . The use of the Entities facilitated the monetization of the credit enhanced Timber Notes in a cost effective manner by increasing 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. Based on an analysis of the Entities under ASC 810, "Consolidation," that considers the potential magnitude of the variability in the structures and which party has a controlling financial interest, International Paper determined that it was not the primary beneficiary of the Entities at December 31, 2014, and therefore, did not consolidate its investments in the Entities. The Company also determined that the source of variability in the structures is the value of the Timber Notes, the assets most significantly impacting the structures' economic performance. The credit quality of the Timber Notes is supported by irrevocable letters of credit obtained by the Timber Note issuers. International Paper analyzed which party had control over the economic performance of each Entity, and concluded International Paper did not have control over significant decisions surrounding the Timber Notes and letters of credit and therefore was not the primary beneficiary at December 31, 2014. The Company’s maximum exposure to loss at December 31, 2014 equaled the principal amount of the Timber Notes; however, an analysis performed by the Company concluded the likelihood of this exposure was remote. In order to extend the 2006 monetization structure and maintain the long-term nature of the $1.4 billion deferred tax liability, we initiated a series of actions during the third quarter of 2015. First, International Paper acquired the Class A interests in the Investor Entities from a third party for $198 million in cash. As a result, International Paper became the owner of all of the Class A and Class B interests in the Entities and became the primary beneficiary of the Entities. The assets and liabilities of the Entities, primarily consisting of the Timber Notes and third party bank loans, were recorded at fair value as of the acquisition date of the Class A interests. Subsequent to purchasing the Class A interests in the Investor Entities, International Paper restructured the Entities, which resulted in the formation of wholly-owned, bankruptcy-remote special purpose entities (the 2015 Financing Entities). As part of the restructuring, the Timber Notes held by the Borrower Entities, subject to the third party bank loans, were contributed to the 2015 Financing Entities along with approximately $150 million in International Paper debt obligations, approximately $600 million in cash and approximately $130 million in demand loans from International Paper, and certain Entities were liquidated. As a result of these transactions, International Paper began consolidating the 2015 Financing Entities during the third quarter of 2015. The Timber Notes are shown in Financial assets of special purpose entities on the accompanying consolidated balance sheet and mature in August 2016 unless extended for an additional five years. These notes are supported by approximately $4.8 billion of irrevocable letters of credit. The 2015 Financing Entities used $630 million in cash to pay down a portion of the existing third party bank loans and refinanced these loans on nonrecourse terms. As a result of the refinancing, the 2015 Financing Entities have approximately $4.2 billion of loans shown in Nonrecourse financial liabilities of special purpose entities on the accompanying consolidated balance sheet. These loans mature in May 2016, are nonrecourse to the Company, and are secured by approximately $4.8 billion of Timber Notes, the irrevocable letters of credit supporting the Timber Notes and approximately $150 million of International Paper debt obligations. The $150 million of International Paper debt obligations are eliminated in the consolidation of the 2015 Financing Entities and are not reflected in the Company’s consolidated balance sheet. The Company has begun the process to refinance the nonrecourse loans for an additional term of approximately five years and extend the Timber Notes in accordance with their terms for an additional term of approximately five years. These extensions are expected to be completed during the fourth quarter of 2015. The purchase of the Class A interests and subsequent restructuring described above facilitated the refinancing of the third party bank loans on nonrecourse terms. The transactions described in this paragraph result in continued long-term classification of the $1.4 billion deferred tax liability recognized in connection with the 2006 forestlands sale. As of September 30, 2015, the fair value of the Timber Notes and loans is $4.84 billion and $4.24 billion , respectively. The Timber Notes and loans 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. Activity between the Company and the 2015 Financing Entities (the Entities prior to the purchase of the Class A interest discussed above) was as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Revenue (a) $ 9 $ 10 $ 27 $ 29 Expense (a) 19 18 56 54 Cash receipts (b) 11 10 21 22 Cash payments (c) 20 36 56 73 (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. After formation of the 2015 Financing Entities, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. (b) The cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. After formation of the 2015 Financing Entities, cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments are interest payments on the associated debt obligations of the Entities discussed above. After formation of the 2015 Financing Entities, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. 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 September 30, 2015 , the fair value of the notes was $2.09 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 September 30, 2015 , the fair value of this debt was $1.98 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 Nine Months Ended In millions 2015 2014 2015 2014 Revenue (a) $ 7 $ 6 $ 20 $ 19 Expense (b) 7 6 20 19 Cash receipts (c) 1 2 5 5 Cash payments (d) 5 4 13 13 (a) The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three and nine months ended September 30, 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 and $5 million for the three and nine months ended September 30, 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) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt [Note Text Block] | DEBT Amounts related to early debt extinguishment during the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Early debt reductions (a) $ 90 $ 262 $ 1,479 $ 1,301 Pre-tax early debt extinguishment costs 1 13 208 275 (a) Reductions related to notes with interest rates ranging from 4.75% to 5.85% with original maturities from 2019 to 2030 and from 4.75% to 9.38% with original maturities from 2015 to 2027 for the three months ended September 30, 2015 and 2014 , respectively, and from 4.70% to 9.38% with original maturities from 2015 to 2030 and from 4.75% to 9.38% with original maturities from 2018 to 2029 for the nine months ended September 30, 2015 and 2014 , respectively. In September 2015, International Paper borrowed $300 million under a receivable securitization facility at a rate of 0.90% . Subsequent to September 30, 2015, International Paper fully repaid the $300 million borrowed. In May 2015, International Paper issued $700 million of 3.80% senior unsecured notes with a maturity date in 2026 , $600 million of 5.00% senior unsecured notes with a maturity date in 2035 , and $700 million of 5.15% senior unsecured notes with a maturity date in 2046 . The proceeds from this borrowing were used to repay approximately $1.0 billion of notes with interest rates ranging from 4.75% to 9.38% and original maturities from 2018 to 2022 , along with $211 million of cash premiums associated with the debt repayments. Additionally, the proceeds from this borrowing were used to make a $750 million voluntary cash contribution to the Company's pension plan. Pre-tax early debt retirement costs of $207 million related to the debt repayments, including the $211 million of cash premiums, are included in Restructuring and other charges in the accompanying consolidated statement of operations. During the second quarter of 2014, International Paper issued $800 million of 3.65% senior unsecured notes with a maturity date in 2024 and $800 million of 4.80% senior unsecured notes with a maturity date in 2044 . The proceeds from this borrowing were used to repay approximately $957 million of notes with interest rates ranging from 7.95% to 9.38% and original maturities from 2018 to 2019 . Pre-tax early debt retirement costs of $262 million related to these debt repayments, including $257 million of cash premiums, are included in Restructuring and other charges in the accompanying consolidated statement of operations for the nine months ended September 30, 2014. During the second quarter of 2014, International Paper borrowed $225 million under a receivable securitization facility at a rate of 0.90% . Prior to June 30, 2014, International Paper fully repaid the $225 million borrowed. Subsequent to September 30, 2014, the Company repaid approximately $160 million of variable rate debt with an original maturity of February 2017 . At September 30, 2015 , the fair value of International Paper’s $9.6 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 September 30, 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 ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES (Note) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 December 31, 2014 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) Brazilian real / U.S. dollar - Forward — 166 British pounds / Brazilian real - Forward 1 5 European euro / Brazilian real - Forward 2 9 European euro / Polish zloty - Forward 187 280 Mexican peso / U.S. dollar - Forward 203 — U.S. dollar / Brazilian real - Forward 24 125 Derivatives in Fair Value Hedging Relationships: Interest rate contracts (in USD) 17 230 Derivatives Not Designated as Hedging Instruments: Electricity contract (in Megawatt Hours) 1 — Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) European euro / British pounds - Forward 28 — European euro / U.S. dollar - Forward 18 — Indian rupee / U.S. dollar - Forward 31 43 Mexican peso / U.S. dollar - Forward 64 187 U.S. dollar / Brazilian real - Forward — 11 Interest rate contracts (in USD) 38 — (a) These contracts had maturities of three years or less as of September 30, 2015 . (b) These contracts had maturities of one year or less as of September 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Foreign exchange contracts $ (8 ) $ 1 $ (2 ) $ 17 Total $ (8 ) $ 1 $ (2 ) $ 17 During the next 12 months, the amount of the September 30, 2015 AOCI balance, after tax, that is expected to be reclassified to earnings is a gain of $2 million . The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows: Gain (Loss) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (7 ) $ 7 $ (12 ) $ 6 Cost of products sold Total $ (7 ) $ 7 $ (12 ) $ 6 Gain (Loss) Recognized Location of Gain (Loss) In Consolidated Statement of Operations Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ (1 ) $ 3 $ — Interest expense, net Debt — 1 (3 ) — Interest expense, net Total $ — $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (7 ) $ (2 ) $ (6 ) $ 1 Cost of products sold Foreign exchange contracts (1 ) (1 ) (3 ) (1 ) Cost of products sold Interest rate contracts 2 3 (a) 11 (b) 10 (c) Interest expense, net Total $ (6 ) $ — $ 2 $ 10 (a) Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. (b) Excluding gain of $3 million related to debt reduction recorded to Restructuring and other charges. (c) Excluding gain of $7 million , net related to debt issuance and debt reduction recorded to Restructuring and other charges. 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 Second Quarter $ — $ 175 $ 38 $ — $ — $ — First Quarter — — — 55 — — Total $ — $ 175 $ 38 $ 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 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 6 (a) $ 16 (b) $ 9 (c) $ 14 (c) Total derivatives designated as hedging instruments $ 6 $ 16 $ 9 $ 14 Derivatives not designated as hedging instruments Electricity contract $ — $ — $ 6 (f) $ 2 (c) Foreign exchange contracts — 1 (e) — 2 (c) Interest rate contracts 1 (d) — — — Total derivatives not designated as hedging instruments $ 1 $ 1 $ 6 $ 4 Total derivatives $ 7 $ 17 $ 15 $ 18 (a) Includes $5 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Includes $14 million recorded in Other current assets and $2 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (c) Included in Other accrued liabilities in the accompanying consolidated balance sheet. (d) Included in Deferred charges and other assets in the accompanying consolidated balance sheet. (e) Included in Other current assets in the accompanying consolidated balance sheet. (f) Includes $3 million recorded in Other accrued liability and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults. Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the consolidated balance sheet. The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties. Credit-Risk-Related Contingent Features Certain of the Company’s financial instruments used in hedging transactions are governed by standard credit support arrangements with counterparties. If the lower of the Company’s credit rating by Moody’s or S&P were to drop below investment grade, the Company would be required to post collateral for all of its derivatives in a net liability position, although no derivatives would terminate. The fair value of derivative instruments containing credit risk-related contingent features in a net liability position was $1 million as of September 30, 2015 and December 31, 2014 , respectively. The Company was not required to post any collateral as of September 30, 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) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Service cost $ 40 $ 35 $ 120 $ 108 Interest cost 149 150 448 450 Expected return on plan assets (196 ) (190 ) (588 ) (571 ) Actuarial loss 107 94 322 280 Amortization of prior service cost 11 7 33 23 Settlement 15 — 15 — Net periodic pension expense $ 126 $ 96 $ 350 $ 290 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 $750 million and $353 million to the qualified pension plan in the first nine months of 2015 and 2014, respectively. The nonqualified defined benefit plans are funded to the extent of benefit payments, which totaled $57 million for the nine months ended September 30, 2015 . |
STOCK-BASED COMPENSATION (Note)
STOCK-BASED COMPENSATION (Note) | 9 Months Ended |
Sep. 30, 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 September 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Total stock-based compensation expense (selling and administrative) $ 27 $ 29 $ 86 $ 81 Income tax benefits related to stock-based compensation — 2 89 89 At September 30, 2015 , $158 million , net of estimated forfeitures, of compensation cost related to unvested restricted performance shares, executive continuity awards and restricted stock attributable to future service had not yet been recognized. This amount will be recognized in expense over a weighted-average period of 1.8 years. Performance Share Plan During the first nine months 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) | 9 Months Ended |
Sep. 30, 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 $(9) million and $97 million for the three months and nine months ended September 30, 2015 , respectively, and $(70) million and $(58) million for the three months and nine months ended September 30, 2014 , respectively, for Ilim. At September 30, 2015 and December 31, 2014 , the Company's investment in Ilim was $194 million and $170 million , respectively, which was $160 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 were $41 million and $132 million for the three months and nine months ended September 30, 2015 , respectively, and $44 million and $156 million for the three months and nine months ended September 30, 2014 , respectively. Sales by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Industrial Packaging $ 3,642 $ 3,754 $ 10,889 $ 11,247 Printing Papers 1,258 1,453 3,735 4,280 Consumer Packaging 809 876 2,384 2,548 Corporate and Intersegment Sales (18 ) (32 ) (86 ) (401 ) Net Sales $ 5,691 $ 6,051 $ 16,922 $ 17,674 Operating profit by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Industrial Packaging $ 553 $ 527 (b) $ 1,549 $ 1,517 (b) Printing Papers 179 177 (c) 389 (164 ) (c) Consumer Packaging (153 ) (a) 77 (d) (60 ) (a) 127 (d) Operating Profit 579 781 1,878 1,480 Interest expense, net (141 ) (152 ) (e) (422 ) (459 ) (e) Noncontrolling interests/equity earnings adjustment (f) (6 ) (2 ) (10 ) — Corporate items, net (10 ) (3 ) (27 ) (16 ) Restructuring and other charges (17 ) (18 ) (220 ) (281 ) Non-operating pension expense (76 ) (54 ) (198 ) (159 ) Earnings (loss) from continuing operations before income taxes and equity earnings $ 329 $ 552 $ 1,001 $ 565 Equity earnings (loss), net of taxes – Ilim $ (9 ) $ (70 ) $ 97 $ (58 ) (a) Includes a charge of $186 million for the three months and nine months ended September 30 ,2015 for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV, a net expense of $7 million and a net gain of $7 million for the three months and nine months ended September 30, 2015 , respectively, related to the sale of the Carolina Coated Bristols brand and the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million and $2 million for the three months and nine months ended September 30, 2015 , respectively, for costs associated with the Coated Paperboard sheet plant closures. (b) Includes charges of $1 million and $15 million for the three months and nine months ended September 30, 2014 , respectively, for integration costs associated with the acquisition of Temple-Inland, a net gain of $5 million for the nine months ended September 30, 2014 associated with our Brazil Packaging business, charges of $35 million for the three months and nine months ended September 30, 2014 for costs associated with a multi-employer pension plan withdrawal liability, charges of $5 million for the three months and nine months ended September 30, 2014 for costs associated with the restructuring of our EMEA packaging business, and charges of $1 million and $3 million for the three months and nine months ended September 30, 2014 , respectively, for other items. (c) Includes charges of $3 million and $547 million for the three months and nine months ended September 30, 2014 , respectively, for costs associated with the shutdown of our Courtland Mill, a gain of $20 million (including $2 million of interest income) for the three months and nine months ended September 30, 2014 for the resolution of a legal contingency for India, and charges of $32 million (including $8 million of interest expense) for the three months and nine months ended September 30, 2014 for costs associated with a foreign tax amnesty program. (d) Includes charges of $2 million and $4 million for the three months and nine months ended September 30, 2014 , respectively, for costs associated with the Coated Paperboard sheet plant closures. (e) Excludes net interest expense of $6 million that is included in the Printing Papers segment operating profit for the three months and nine months ended September 30, 2014. (f) Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity [Table Text Block] | A summary of the changes in equity for the nine months ended September 30, 2015 and 2014 is provided below: Nine Months Ended 2015 2014 In millions, except per share amounts Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Total International Paper Shareholders’ Equity Noncontrolling Interests Total Equity Balance, January 1 $ 5,115 $ 148 $ 5,263 $ 8,105 $ 179 $ 8,284 Issuance of stock for various plans, net 204 — 204 221 — 221 Repurchase of stock (505 ) — (505 ) (891 ) — (891 ) Common stock dividends ($1.20 per share in 2015 and $1.05 per share in 2014) (513 ) — (513 ) (462 ) — (462 ) Xpedx spinoff — — — (313 ) — (313 ) Acquisition of redeemable noncontrolling interests — — — 47 — 47 Remeasurement of redeemable noncontrolling interest — — — (6 ) — (6 ) Comprehensive income (loss) 48 (27 ) 21 115 (18 ) 97 Ending Balance, September 30 $ 4,349 $ 121 $ 4,470 $ 6,816 $ 161 $ 6,977 |
OTHER COMPREHENSIVE INCOME OT26
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents changes in AOCI for the nine -month period ended September 30, 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 12 (955 ) (2 ) (945 ) Amounts reclassified from accumulated other comprehensive income 215 — 12 227 Net Current Period Other Comprehensive Income 227 (955 ) 10 (718 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 6 — 6 Balance, September 30, 2015 $ (2,907 ) $ (2,462 ) $ 11 $ (5,358 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the three -month period ended September 30, 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, July 1, 2014 $ (2,087 ) $ (553 ) $ 12 $ (2,628 ) Other comprehensive income (loss) before reclassifications (1 ) (475 ) 1 (475 ) Amounts reclassified from accumulated other comprehensive income 60 (17 ) (7 ) 36 Net Current Period Other Comprehensive Income (Loss) 59 (492 ) (6 ) (439 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 2 — 2 Balance, September 30, 2014 $ (2,028 ) $ (1,043 ) $ 6 $ (3,065 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the nine -month period ended September 30, 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 (104 ) (382 ) 17 (469 ) Amounts reclassified from accumulated other comprehensive income 181 (17 ) (6 ) 158 Net Current Period Other Comprehensive Income 77 (399 ) 11 (311 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 5 — 5 Balance, September 30, 2014 $ (2,028 ) $ (1,043 ) $ 6 $ (3,065 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. The following table presents changes in AOCI for the three -month period ended September 30, 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, July 1, 2015 $ (2,993 ) $ (1,905 ) $ 12 $ (4,886 ) Other comprehensive income (loss) before reclassifications 14 (562 ) (8 ) (556 ) Amounts reclassified from accumulated other comprehensive income 72 — 7 79 Net Current Period Other Comprehensive Income (Loss) 86 (562 ) (1 ) (477 ) Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest — 5 — 5 Balance, September 30, 2015 $ (2,907 ) $ (2,462 ) $ 11 $ (5,358 ) (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 and nine -month periods ended September 30 : Details About Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (a) Location of Amount Reclassified from AOCI Three Months Ended Nine Months Ended 2015 2014 2015 2014 In millions: Defined benefit pension and postretirement items: Prior-service costs $ (9 ) $ (4 ) $ (25 ) $ (13 ) (b) Cost of products sold Actuarial gains (losses) (108 ) (95 ) (326 ) (284 ) (b) Cost of products sold Total pre-tax amount (117 ) (99 ) (351 ) (297 ) Tax (expense) benefit 45 39 136 116 Net of tax (72 ) (60 ) (215 ) (181 ) Change in cumulative foreign currency translation adjustments: Business acquisitions/divestitures — 17 — 17 Net (gains) losses on acquisition of business Tax (expense)/benefit — — — — Net of tax — 17 — 17 Net gains and losses on cash flow hedging derivatives: Foreign exchange contracts (12 ) 10 (19 ) 6 (c) Cost of products sold Total pre-tax amount (12 ) 10 (19 ) 6 Tax (expense)/benefit 5 (3 ) 7 — Net of tax (7 ) 7 (12 ) 6 Total reclassifications for the period $ (79 ) $ (36 ) $ (227 ) $ (158 ) (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 ATTRIBUTAB27
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended In millions, except per share amounts 2015 2014 2015 2014 Earnings (loss) from continuing operations $ 220 $ 339 $ 760 $ 425 Effect of dilutive securities (a) — — — — Earnings (loss) from continuing operations – assuming dilution $ 220 $ 339 $ 760 $ 425 Average common shares outstanding 415.1 425.3 418.7 429.9 Effect of dilutive securities (a) Restricted stock performance share plan 2.4 3.3 3.2 3.7 Stock options — — — 0.1 Average common shares outstanding – assuming dilution 417.5 428.6 421.9 433.7 Basic earnings (loss) from continuing operations per common share $ 0.53 $ 0.80 $ 1.81 $ 0.99 Diluted earnings (loss) from continuing operations per common share $ 0.53 $ 0.79 $ 1.80 $ 0.98 (a) Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARG28
RESTRUCTURING AND OTHER CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs [Table Text Block] | During the three months ended September 30, 2015, restructuring and other charges totaling $25 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Timber monetization restructuring $ 17 Sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs 7 Other 1 Total $ 25 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 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 and approximately $36 million of accelerated depreciation related to these assets during the first and second quarters of 2014, respectively. Other components of the second quarter of 2014 Courtland mill shutdown cost include site closure costs of $7 million , and severance charges of $6 million . 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. Components of the third quarter 2014 Courtland mill shutdown cost include severance charges of $2 million . During the three months ended June 30, 2015, restructuring and other charges totaling $194 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Early debt extinguishment costs $ 207 Sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs (14 ) Other 1 Total $ 194 During the three months ended September 30, 2014, restructuring and other charges totaling $24 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Courtland mill shutdown (a) $ 3 Early debt extinguishment costs 13 EMEA packaging restructuring 5 Other 3 Total $ 24 2014: During the three months ended September 30, 2014, restructuring and other charges totaling $24 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Courtland mill shutdown (a) $ 3 Early debt extinguishment costs 13 EMEA packaging restructuring 5 Other 3 Total $ 24 During the three months ended June 30, 2014, restructuring and other charges totaling $307 million before taxes were recorded. Details of these charges were as follows: Three Months Ended In millions Courtland mill shutdown (a) $ 49 Early debt extinguishment costs 262 Brazil packaging (7 ) Other 3 Total $ 307 |
DIVESTITURES _ SPINOFF DIVESTIT
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
xpedx divestiture [Member] | Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Detail of Major Classes of Assets and Liabilities Included as Part of the Disposal Group Held For Sale | 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 and nine months ended September 30, 2014 in the consolidated statement of operations: In millions Three Months Ended Nine Months Ended September 30, 2014 Net Sales — $ 2,604 Cost and Expenses Cost of products sold — 2,309 Selling and administrative expenses — 191 Depreciation, amortization and cost of timber harvested — 9 Distribution expenses — 69 Restructuring and other charges (11 ) 24 Other, net — 3 Earnings (Loss) Before Income Taxes and Equity Earnings 11 (1 ) Income tax provision (benefit) (3 ) — Discontinued Operations, Net of Taxes (a) $ 14 $ (1 ) (a) These amounts, along with net income of $2 million and a net loss of $3 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 and nine months ended September 30, 2014, respectively. |
IP-Sun JV [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Detail of Major Classes of Assets and Liabilities Included as Part of the Disposal Group Held For Sale | In millions September 30, 2015 Total current assets $ 620 Plants, properties and equipment 479 Goodwill 117 Deferred Charges and Other Assets 65 1,281 Impairment Charge (186 ) Total assets $ 1,095 Payables and other short-term liabilities $ 564 Debt 373 Other long-term liabilities 6 Total liabilities 943 Shareholder's equity 56 Noncontrolling interest 96 Total equity 152 Total liabilities and equity $ 1,095 |
SUPPLEMENTAL FINANCIAL STATEM30
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Temporary Investments [Table Text Block] | Temporary Investments In millions September 30, 2015 December 31, 2014 Temporary investments $ 611 $ 1,480 |
Accounts and Notes Receivable [Table Text Block] | Accounts and Notes Receivable In millions September 30, 2015 December 31, 2014 Accounts and notes receivable, net: Trade $ 2,631 $ 2,860 Other 201 223 Total $ 2,832 $ 3,083 |
Inventories [Table Text Block] | Inventories In millions September 30, 2015 December 31, 2014 Raw materials $ 416 $ 494 Finished pulp, paper and packaging 1,263 1,273 Operating supplies 560 562 Other 101 95 Total $ 2,340 $ 2,424 |
Depreciation Expense [Table Text Block] | Depreciation Expense Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Depreciation expense $ 309 $ 333 $ 919 $ 986 |
Valuation Accounts [Table Text Block] | Certain valuation accounts were as follows: In millions September 30, 2015 December 31, 2014 Accumulated depreciation $ 20,455 $ 20,340 Allowance for doubtful accounts 71 82 |
Schedule of Interest Payments [Table Text Block] | Cash payments related to interest were as follows: Nine Months Ended In millions 2015 2014 Interest payments $ 471 $ 503 |
Schedule of Interest Income and Interest Expense [Table Text Block] | Amounts related to interest were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Interest expense (a) $ 158 $ 172 $ 481 $ 512 Interest income (a) 17 14 59 47 Capitalized interest costs 5 5 19 17 (a) Interest expense and interest income exclude approximately $7 million and $25 million for the three months and nine months ended September 30, 2015 and $10 million and $29 million for the three months and nine months ended September 30, 2014 , respectively 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 INTANGIBLE31
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
Sep. 30, 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 nine -month period ended September 30, 2015 : In millions Industrial Packaging Printing Papers Consumer Packaging Total 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) (73 ) (96 ) (120 ) (289 ) Additions/reductions (1 ) (11 ) (c) — (12 ) Balance as of September 30, 2015 Goodwill 3,322 2,127 1,664 7,113 Accumulated impairment losses (a) (100 ) (1,877 ) (1,664 ) (3,641 ) Total $ 3,222 $ 250 $ — $ 3,472 (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 as well as a reclassification to Assets held for sale of $117 million in Consumer Packaging due to the pending sale of our equity interest in IP-Sun JV. (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: September 30, 2015 December 31, 2014 In millions Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships and lists $ 494 $ 156 $ 561 $ 157 Non-compete agreements 70 55 74 53 Tradenames, patents and trademarks 60 51 61 44 Land and water rights 32 5 81 9 Fuel and power agreements 5 3 5 3 Software 21 20 23 22 Other 40 23 43 21 Total $ 722 $ 313 $ 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 Nine Months Ended In millions 2015 2014 2015 2014 Amortization expense related to intangible assets $ 16 $ 19 $ 45 $ 55 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 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: Nine Months Ended In millions 2015 2014 Income tax payments, net $ 118 $ 193 |
Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Table Text Block] | The following table presents a rollforward of unrecognized tax benefits and related accrued estimated interest and penalties for the nine months ended September 30, 2015 : In millions Unrecognized Tax Benefits Accrued Estimated Interest and Tax Penalties Balance at December 31, 2014 $ (158 ) $ (41 ) Activity for three months ended March 31, 2015 8 7 Activity for the three months ended June 30, 2015 — (1 ) Activity for three months ended September 30, 2015 1 2 Balance at September 30, 2015 $ (149 ) $ (33 ) |
Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations [Table Text Block] | The components of the net provision related to special items were as follows: Nine Months Ended In millions 2015 2014 Special items $ (70 ) $ (360 ) Tax-related adjustments: Return to Accrual 23 — Internal restructurings (62 ) — State legislative changes — 10 Other — (1 ) Income tax provision (benefit) related to special items $ (109 ) $ (351 ) |
VARIABLE INTEREST ENTITIES AN33
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Entities [Member] | |
Activity Between Company And Entities [Table Text Block] | Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Revenue (a) $ 9 $ 10 $ 27 $ 29 Expense (a) 19 18 56 54 Cash receipts (b) 11 10 21 22 Cash payments (c) 20 36 56 73 (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. After formation of the 2015 Financing Entities, the revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. (b) The cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. After formation of the 2015 Financing Entities, cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments are interest payments on the associated debt obligations of the Entities discussed above. After formation of the 2015 Financing Entities, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. |
2007 Financing Entities [Member] | |
Activity Between Company And Entities [Table Text Block] | Activity between the Company and the 2007 financing entities was as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Revenue (a) $ 7 $ 6 $ 20 $ 19 Expense (b) 7 6 20 19 Cash receipts (c) 1 2 5 5 Cash payments (d) 5 4 13 13 (a) The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three and nine months ended September 30, 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 and $5 million for the three and nine months ended September 30, 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) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Extinguishment [Table Text Block] | Amounts related to early debt extinguishment during the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Early debt reductions (a) $ 90 $ 262 $ 1,479 $ 1,301 Pre-tax early debt extinguishment costs 1 13 208 275 (a) Reductions related to notes with interest rates ranging from 4.75% to 5.85% with original maturities from 2019 to 2030 and from 4.75% to 9.38% with original maturities from 2015 to 2027 for the three months ended September 30, 2015 and 2014 , respectively, and from 4.70% to 9.38% with original maturities from 2015 to 2030 and from 4.75% to 9.38% with original maturities from 2018 to 2029 for the nine months ended September 30, 2015 and 2014 , respectively. |
DERIVATIVES AND HEDGING ACTIV35
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 December 31, 2014 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a) Brazilian real / U.S. dollar - Forward — 166 British pounds / Brazilian real - Forward 1 5 European euro / Brazilian real - Forward 2 9 European euro / Polish zloty - Forward 187 280 Mexican peso / U.S. dollar - Forward 203 — U.S. dollar / Brazilian real - Forward 24 125 Derivatives in Fair Value Hedging Relationships: Interest rate contracts (in USD) 17 230 Derivatives Not Designated as Hedging Instruments: Electricity contract (in Megawatt Hours) 1 — Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b) European euro / British pounds - Forward 28 — European euro / U.S. dollar - Forward 18 — Indian rupee / U.S. dollar - Forward 31 43 Mexican peso / U.S. dollar - Forward 64 187 U.S. dollar / Brazilian real - Forward — 11 Interest rate contracts (in USD) 38 — (a) These contracts had maturities of three years or less as of September 30, 2015 . (b) These contracts had maturities of one year or less as of September 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Foreign exchange contracts $ (8 ) $ 1 $ (2 ) $ 17 Total $ (8 ) $ 1 $ (2 ) $ 17 |
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) Reclassified from AOCI (Effective Portion) Location of Gain (Loss) Reclassified from AOCI (Effective Portion) Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Derivatives in Cash Flow Hedging Relationships: Foreign exchange contracts $ (7 ) $ 7 $ (12 ) $ 6 Cost of products sold Total $ (7 ) $ 7 $ (12 ) $ 6 Gain (Loss) Recognized Location of Gain (Loss) In Consolidated Statement of Operations Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Derivatives in Fair Value Hedging Relationships: Interest rate contracts $ — $ (1 ) $ 3 $ — Interest expense, net Debt — 1 (3 ) — Interest expense, net Total $ — $ — $ — $ — Derivatives Not Designated as Hedging Instruments: Electricity contract $ (7 ) $ (2 ) $ (6 ) $ 1 Cost of products sold Foreign exchange contracts (1 ) (1 ) (3 ) (1 ) Cost of products sold Interest rate contracts 2 3 (a) 11 (b) 10 (c) Interest expense, net Total $ (6 ) $ — $ 2 $ 10 (a) Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. (b) Excluding gain of $3 million related to debt reduction recorded to Restructuring and other charges. (c) Excluding gain of $7 million , net related to debt issuance and debt reduction recorded to Restructuring and other charges. |
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 Second Quarter $ — $ 175 $ 38 $ — $ — $ — First Quarter — — — 55 — — Total $ — $ 175 $ 38 $ 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 September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Derivatives designated as hedging instruments Foreign exchange contracts – cash flow $ 6 (a) $ 16 (b) $ 9 (c) $ 14 (c) Total derivatives designated as hedging instruments $ 6 $ 16 $ 9 $ 14 Derivatives not designated as hedging instruments Electricity contract $ — $ — $ 6 (f) $ 2 (c) Foreign exchange contracts — 1 (e) — 2 (c) Interest rate contracts 1 (d) — — — Total derivatives not designated as hedging instruments $ 1 $ 1 $ 6 $ 4 Total derivatives $ 7 $ 17 $ 15 $ 18 (a) Includes $5 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (b) Includes $14 million recorded in Other current assets and $2 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. (c) Included in Other accrued liabilities in the accompanying consolidated balance sheet. (d) Included in Deferred charges and other assets in the accompanying consolidated balance sheet. (e) Included in Other current assets in the accompanying consolidated balance sheet. (f) Includes $3 million recorded in Other accrued liability and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Service cost $ 40 $ 35 $ 120 $ 108 Interest cost 149 150 448 450 Expected return on plan assets (196 ) (190 ) (588 ) (571 ) Actuarial loss 107 94 322 280 Amortization of prior service cost 11 7 33 23 Settlement 15 — 15 — Net periodic pension expense $ 126 $ 96 $ 350 $ 290 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended In millions 2015 2014 2015 2014 Total stock-based compensation expense (selling and administrative) $ 27 $ 29 $ 86 $ 81 Income tax benefits related to stock-based compensation — 2 89 89 |
INDUSTRY SEGMENT INFORMATION (T
INDUSTRY SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment [Table Text Block] | Sales by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Industrial Packaging $ 3,642 $ 3,754 $ 10,889 $ 11,247 Printing Papers 1,258 1,453 3,735 4,280 Consumer Packaging 809 876 2,384 2,548 Corporate and Intersegment Sales (18 ) (32 ) (86 ) (401 ) Net Sales $ 5,691 $ 6,051 $ 16,922 $ 17,674 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Operating profit by industry segment for the three months and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended In millions 2015 2014 2015 2014 Industrial Packaging $ 553 $ 527 (b) $ 1,549 $ 1,517 (b) Printing Papers 179 177 (c) 389 (164 ) (c) Consumer Packaging (153 ) (a) 77 (d) (60 ) (a) 127 (d) Operating Profit 579 781 1,878 1,480 Interest expense, net (141 ) (152 ) (e) (422 ) (459 ) (e) Noncontrolling interests/equity earnings adjustment (f) (6 ) (2 ) (10 ) — Corporate items, net (10 ) (3 ) (27 ) (16 ) Restructuring and other charges (17 ) (18 ) (220 ) (281 ) Non-operating pension expense (76 ) (54 ) (198 ) (159 ) Earnings (loss) from continuing operations before income taxes and equity earnings $ 329 $ 552 $ 1,001 $ 565 Equity earnings (loss), net of taxes – Ilim $ (9 ) $ (70 ) $ 97 $ (58 ) (a) Includes a charge of $186 million for the three months and nine months ended September 30 ,2015 for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV, a net expense of $7 million and a net gain of $7 million for the three months and nine months ended September 30, 2015 , respectively, related to the sale of the Carolina Coated Bristols brand and the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million and $2 million for the three months and nine months ended September 30, 2015 , respectively, for costs associated with the Coated Paperboard sheet plant closures. (b) Includes charges of $1 million and $15 million for the three months and nine months ended September 30, 2014 , respectively, for integration costs associated with the acquisition of Temple-Inland, a net gain of $5 million for the nine months ended September 30, 2014 associated with our Brazil Packaging business, charges of $35 million for the three months and nine months ended September 30, 2014 for costs associated with a multi-employer pension plan withdrawal liability, charges of $5 million for the three months and nine months ended September 30, 2014 for costs associated with the restructuring of our EMEA packaging business, and charges of $1 million and $3 million for the three months and nine months ended September 30, 2014 , respectively, for other items. (c) Includes charges of $3 million and $547 million for the three months and nine months ended September 30, 2014 , respectively, for costs associated with the shutdown of our Courtland Mill, a gain of $20 million (including $2 million of interest income) for the three months and nine months ended September 30, 2014 for the resolution of a legal contingency for India, and charges of $32 million (including $8 million of interest expense) for the three months and nine months ended September 30, 2014 for costs associated with a foreign tax amnesty program. (d) Includes charges of $2 million and $4 million for the three months and nine months ended September 30, 2014 , respectively, for costs associated with the Coated Paperboard sheet plant closures. (e) Excludes net interest expense of $6 million that is included in the Printing Papers segment operating profit for the three months and nine months ended September 30, 2014. (f) Operating profits for industry segments include each segment's percentage share of the profits of subsidiaries included in that segment that are less than wholly owned. The pre-tax noncontrolling interest and equity earnings for these subsidiaries are adjusted here to present consolidated earnings before income taxes and equity earnings. |
EQUITY (Detail)
EQUITY (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Line Items] | ||||
Beginning balance | $ 5,263 | $ 8,284 | ||
Issuance of stock for various plans, net | 204 | 221 | ||
Repurchase of stock | (505) | (891) | ||
Common stock dividends ($1.20 per share in 2015 and $1.05 per share in 2014) | (513) | (462) | ||
Xpedx spinoff | 0 | (313) | ||
Acquisition of redeemable noncontrolling interests | 0 | 47 | ||
Remeasurement of redeemable noncontrolling interest | 0 | (6) | ||
Comprehensive income (loss) | $ (267) | $ (90) | 21 | 97 |
Ending balance | 4,470 | 6,977 | 4,470 | 6,977 |
Total International Paper Shareholders' Equity [Member] | ||||
Equity [Line Items] | ||||
Beginning balance | 5,115 | 8,105 | ||
Issuance of stock for various plans, net | 204 | 221 | ||
Repurchase of stock | (505) | (891) | ||
Common stock dividends ($1.20 per share in 2015 and $1.05 per share in 2014) | (513) | (462) | ||
Xpedx spinoff | 0 | (313) | ||
Acquisition of redeemable noncontrolling interests | 0 | 47 | ||
Remeasurement of redeemable noncontrolling interest | 0 | (6) | ||
Comprehensive income (loss) | 48 | 115 | ||
Ending balance | 4,349 | 6,816 | 4,349 | 6,816 |
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 ($1.20 per share in 2015 and $1.05 per share in 2014) | 0 | 0 | ||
Xpedx spinoff | 0 | 0 | ||
Acquisition of redeemable noncontrolling interests | 0 | 0 | ||
Remeasurement of redeemable noncontrolling interest | 0 | 0 | ||
Comprehensive income (loss) | (27) | (18) | ||
Ending balance | $ 121 | $ 161 | $ 121 | $ 161 |
EQUITY (Other) (Detail)
EQUITY (Other) (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Line Items] | ||
Common stock dividends, per share | $ 1.2000 | $ 1.0500 |
Total International Paper Shareholders' Equity [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | 1.2000 | 1.0500 |
Noncontrolling Interests [Member] | ||
Equity [Line Items] | ||
Common stock dividends, per share | $ 1.2000 | $ 1.0500 |
OTHER COMPREHENSIVE INCOME OT41
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 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 | [1] | $ (4,886) | $ (4,646) | $ (2,628) | $ (2,759) | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | $ (556) | $ (475) | $ (945) | $ (469) | ||||||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 79 | 36 | 227 | 158 | ||||||||
Other comprehensive income (loss), net of tax | [1] | (477) | (439) | (718) | (311) | ||||||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 5 | 2 | 6 | 5 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,358) | [1] | (3,065) | [1] | (5,358) | [1] | (3,065) | [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 | [1] | (2,993) | (3,134) | (2,087) | (2,105) | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | 14 | (1) | 12 | (104) | ||||||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 72 | 60 | 215 | 181 | ||||||||
Other comprehensive income (loss), net of tax | [1] | 86 | 59 | 227 | 77 | ||||||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 0 | 0 | 0 | 0 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | (2,907) | (2,028) | (2,907) | (2,028) | ||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | [1] | (1,905) | (1,513) | (553) | (649) | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | (562) | (475) | (955) | (382) | ||||||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 0 | (17) | 0 | (17) | ||||||||
Other comprehensive income (loss), net of tax | [1] | (562) | (492) | (955) | (399) | ||||||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 5 | 2 | 6 | 5 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | (2,462) | (1,043) | (2,462) | (1,043) | ||||||||
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] | $ 12 | $ 1 | $ 12 | $ (5) | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | [1] | (8) | 1 | (2) | 17 | ||||||||
Reclassification from accumulated other comprehensive income, current period, net of tax | [1] | 7 | (7) | 12 | (6) | ||||||||
Other comprehensive income (loss), net of tax | [1] | (1) | (6) | 10 | 11 | ||||||||
Comprehensive (income) loss, net of tax, attributable to noncontrolling interest | [1] | 0 | 0 | 0 | 0 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | $ 11 | $ 6 | $ 11 | $ 6 | ||||||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to AOCI. |
OTHER COMPREHENSIVE INCOME OT42
OTHER COMPREHENSIVE INCOME OTHER COMPREHENSIVE INCOME (Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (Loss) From Continuing Operations | $ 210 | $ 333 | $ 739 | $ 412 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (Loss) From Continuing Operations | [1] | (79) | (36) | (227) | (158) |
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 | [1],[2] | (9) | (4) | (25) | (13) |
Actuarial gains (losses) | [1],[2] | (108) | (95) | (326) | (284) |
Total pre-tax amount | [1] | (117) | (99) | (351) | (297) |
Other comprehensive (income) loss, reclassification adjustment from AOCI, pension and other postretirement benefit plans, tax | [1] | 45 | 39 | 136 | 116 |
Earnings (Loss) From Continuing Operations | [1] | (72) | (60) | (215) | (181) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Earnings (Loss) From Continuing Operations | [1] | 0 | 17 | 0 | 17 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | [1],[2] | 0 | 17 | 0 | 17 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | [1] | 0 | 0 | 0 | 0 |
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 | [1] | (12) | 10 | (19) | 6 |
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, tax | [1] | 5 | (3) | 7 | 0 |
Earnings (Loss) From Continuing Operations | [1] | (7) | 7 | (12) | 6 |
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] | |||||
Other comprehensive income (loss), reclassification adjustment from AOCI on derivatives, before tax | [1],[3] | $ (12) | $ 10 | $ (19) | $ 6 |
[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 ATTRIBUTAB43
EARNINGS PER SHARE ATTRIBUTABLE TO INTERNATIONAL PAPER COMPANY COMMON SHAREHOLDERS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share, Basic and Diluted [Line Items] | |||||
Earnings (loss) from continuing operations | $ 220 | $ 339 | $ 760 | $ 425 | |
Effect of dilutive securities (a) | [1] | 0 | 0 | 0 | 0 |
Earnings (loss) from continuing operations - assuming dilution | $ 220 | $ 339 | $ 760 | $ 425 | |
Average common shares outstanding | 415.1 | 425.3 | 418.7 | 429.9 | |
Average common shares outstanding - assuming dilution | 417.5 | 428.6 | 421.9 | 433.7 | |
Basic earnings (loss) from continuing operations per common share | $ 0.53 | $ 0.80 | $ 1.81 | $ 0.99 | |
Diluted earnings (loss) from continuing operations per common share | $ 0.53 | $ 0.79 | $ 1.80 | $ 0.98 | |
Restricted Stock Performance Share Plan [Member] | |||||
Earnings Per Share, Basic and Diluted [Line Items] | |||||
Effect of dilutive securities (in shares) | [1] | 2.4 | 3.3 | 3.2 | 3.7 |
Equity Option [Member] | |||||
Earnings Per Share, Basic and Diluted [Line Items] | |||||
Effect of dilutive securities (in shares) | [1] | 0 | 0 | 0 | 0.1 |
[1] | Securities are not included in the table in periods when antidilutive. |
RESTRUCTURING AND OTHER CHARG44
RESTRUCTURING AND OTHER CHARGES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | $ 25 | $ 194 | $ 24 | $ 307 | $ 499 | $ 219 | $ 830 | |||||
Early Debt Extinguishment Costs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 17 | |||||||||||
Net gain on sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs [member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 7 | [1] | (14) | $ (7) | [1] | |||||||
Early Debt Extinguishment Costs [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 207 | 13 | 262 | |||||||||
Courtland mill shutdown [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 3 | [1] | 49 | [1] | 495 | [1] | 547 | |||||
EMEA packaging restructuring [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | 5 | |||||||||||
Netting Gain Related to Brazil Packaging Business [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | (7) | $ (5) | ||||||||||
Other Restructuring and Other Charges [Member] | ||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||
Restructuring and other charges | $ 1 | $ 1 | $ 3 | $ 3 | $ 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. We recognized approximately $430 million and approximately $36 million of accelerated depreciation related to these assets during the first and second quarters of 2014, respectively. Other components of the second quarter of 2014 Courtland mill shutdown cost include site closure costs of $7 million, and severance charges of $6 million. 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. Components of the third quarter 2014 Courtland mill shutdown cost include severance charges of $2 million. |
RESTRUCTURING AND OTHER CHARG45
RESTRUCTURING AND OTHER CHARGES (Narrative)(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring and Related Activities [Abstract] | |||||||
Restructuring and other charges | $ 25 | $ 194 | $ 24 | $ 307 | $ 499 | $ 219 | $ 830 |
RESTRUCTURING AND OTHER CHARG46
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES (Footnotes) (Details) - Courtland mill shutdown [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | $ 36 | $ 430 | |
Severance costs | $ 2 | 6 | 15 |
Business Exit Costs | $ 7 | 30 | |
Other closure costs | $ 20 |
ACQUISITIONS AND JOINT VENTUR47
ACQUISITIONS AND JOINT VENTURES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Apr. 08, 2014 | |
Business Acquisition [Line Items] | |||||
Payments to acquire investments | $ 198 | $ 0 | |||
Restricted cash | $ 2 | $ 143 | 0 | ||
Orsa IP [Member] | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 25.00% | ||||
Payments to acquire businesses, gross | 127 | ||||
Payments to acquire investments | 105 | ||||
Indemnification asset, acquisitions | $ 22 | ||||
Restricted cash | 9 | $ 11 | |||
Redeemable noncontrolling interest, equity, common, carrying amount | $ 168 | $ 168 |
DIVESTITURES _ SPINOFF DIVEST48
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Reconciliation of Major Line Items Constituting Pre-Tax Profit (Loss) of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operations, Net of Taxes (a) | $ 0 | $ 16 | $ 0 | $ (4) |
Discontinued Operations [Member] | xpedx divestiture [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Sales | 0 | 2,604 | ||
Cost of products sold | 0 | 2,309 | ||
Selling and administrative expenses | 0 | 191 | ||
Depreciation, amortization and cost of timber harvested | 0 | 9 | ||
Distribution expenses | 0 | 69 | ||
Restructuring and other charges | (11) | 24 | ||
Other, net | 0 | 3 | ||
Earnings (Loss) Before Income Tax and Equity Earnings | 11 | (1) | ||
Discontinued Operation, Tax Effect of Discontinued Operation | (3) | 0 | ||
Discontinued Operations, Net of Taxes (a) | $ 14 | $ (1) |
DIVESTITURES _ SPINOFF DIVEST49
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Reconciliation of Major Line Items Constituting Pre-Tax Profit (Loss) of Discontinued Operations Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued operations, net of taxes | $ 0 | $ 16 | $ 0 | $ (4) |
Temple Inland Building Products Business [Member] | Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued operations, net of taxes | $ 2 | $ (3) |
DIVESTITURES _ SPINOFF DIVEST50
DIVESTITURES / SPINOFF DIVESTITURES / SPINOFF (Details of Major Assets and Liabilities Included as Part of Disposal Group Held for Sale) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets held for sale | $ 1,095 | $ 0 |
Payables and other short-term liabilities held for sale | 943 | $ 0 |
IP-Sun JV [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets held for sale | 620 | |
Plants, properties and equipment held for sale | 479 | |
Goodwill held for sale | 117 | |
Deferred charges and other assets held for sale | 65 | |
Total assets held for sale before impairment | 1,281 | |
Impairment of long-lived assets to be disposed of | (186) | |
Total assets held for sale | 1,095 | |
Payables and other short-term liabilities held for sale | 564 | |
Debt held for sale | 373 | |
Other long-term liabilities held for sale | 6 | |
Total liabilities held for sale | 943 | |
Shareholder's Equity held for sale | 56 | |
Noncontrolling interest held for sale | 96 | |
Total equity held for sale | 152 | |
Total liabilities and equity held for sale | $ 1,095 |
DIVESTITURES _ SPINOFF (Narrati
DIVESTITURES / SPINOFF (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2015CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jul. 01, 2014shares | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from spinoff | $ 0 | $ 385,000,000 | ||||||
Impairment of long-lived assets to be disposed of | $ 186,000,000 | $ 0 | 186,000,000 | 0 | ||||
xpedx divestiture [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from spinoff | $ 411,000,000 | |||||||
Cash provided by (used in) operating activities, discontinued operations | 29,000,000 | |||||||
Cash provided by (used for) investment activities - discontinued operations | 3,000,000 | |||||||
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 | shares | 8,160,000 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | IP-Sun JV [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Assets, Fair Value Disclosure | $ 23,000,000 | $ 23,000,000 | ||||||
Percentage of equity interest | 55.00% | 55.00% | ||||||
Impairment of long-lived assets to be disposed of | $ 186,000,000 | $ 186,000,000 | ||||||
Impairment of long-lived assets to be disposed of, after tax | 125,000,000 | |||||||
Income (loss) from individually significant component disposed of or held-for-sale, excluding discontinued operations, attributable to parent, before income tax | (208,000,000) | (11,000,000) | (238,000,000) | (33,000,000) | ||||
Income (loss) from individually significant component disposed of or held-for-sale, excluding disontinued operations, attributable to noncontrolling interest | (9,000,000) | $ (2,000,000) | (19,000,000) | $ (7,000,000) | ||||
Total assets held for sale | 1,095,000,000 | 1,095,000,000 | ||||||
Total liabilities held for sale | $ 943,000,000 | $ 943,000,000 | ||||||
Subsequent Event [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | IP-Sun JV [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from spinoff | $ 23,000,000 | ¥ 149,000,000 |
SUPPLEMENTAL FINANCIAL STATEM52
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Temporary Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investment [Line Items] | ||
Temporary investments | $ 611 | $ 1,480 |
SUPPLEMENT FINANCIAL STATEMENT
SUPPLEMENT FINANCIAL STATEMENT INFORMATION (Accounts and Notes Receivable) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $ 2,832 | $ 3,083 |
Trade [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | 2,631 | 2,860 |
Other Non-Trade Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts and notes receivable | $ 201 | $ 223 |
SUPPLEMENTAL FINANCIAL STATEM54
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Inventories by Major Category) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 416 | $ 494 |
Finished pulp, paper and packaging | 1,263 | 1,273 |
Operating supplies | 560 | 562 |
Other | 101 | 95 |
Inventory, Net | $ 2,340 | $ 2,424 |
SUPPLEMENTAL FINANCIAL STATEM55
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Depreciation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Depreciation Expense [Line Items] | ||||
Depreciation expense | $ 309 | $ 333 | $ 919 | $ 986 |
SUPPLEMENTAL FINANCIAL STATEM56
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Valuation Accounts) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Accumulated depreciation | $ 20,455 | $ 20,340 |
Allowance for doubtful accounts | $ 71 | $ 82 |
SUPPLEMENTAL FINANCIAL STATEM57
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Cash Payments Related to Interest) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Payments [Line Items] | ||
Interest payments | $ 471 | $ 503 |
SUPPLEMENTAL FINANCIAL STATEM58
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Schedule of Interest Income and Interest Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Interest Income and Interest Expense [Line Items] | |||||
Interest expense | [1] | $ 158 | $ 172 | $ 481 | $ 512 |
Interest income | [1] | 17 | 14 | 59 | 47 |
Capitalized interest costs | $ 5 | $ 5 | $ 19 | $ 17 | |
[1] | Interest expense and interest income exclude approximately $7 million and $25 million for the three months and nine months ended September 30, 2015 and $10 million and $29 million for the three months and nine months ended September 30, 2014, respectively related to investments in and borrowings from variable interest entities for which the Company has a legal right of offset (see Note 13). |
SUPPLEMENTAL FINANCIAL STATEM59
SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION (Schedule of Interest Income and Interest Expense Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Amounts Related To Interest [Line Items] | ||||
Interest expense and interest income excluded, amount | $ (7) | $ (10) | $ (25) | $ (29) |
GOODWILL AND OTHER INTANGIBLE60
GOODWILL AND OTHER INTANGIBLES (Changes in Goodwill Balances) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Goodwill [Line Items] | |||
Beginning balance | $ 7,414 | ||
Accumulated impairment losses (a) | [1] | (3,641) | |
Total | 3,472 | $ 3,773 | |
Reclassifications and other | [2] | (289) | |
Additions/reductions | (12) | ||
Ending balance | 7,113 | ||
Accumulated impairment losses (a) | (3,641) | ||
Industrial Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 3,396 | ||
Accumulated impairment losses (a) | [1] | (100) | |
Total | 3,222 | 3,296 | |
Reclassifications and other | [2] | (73) | |
Additions/reductions | (1) | ||
Ending balance | 3,322 | ||
Accumulated impairment losses (a) | (100) | ||
Printing Papers [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 2,234 | ||
Accumulated impairment losses (a) | [1] | (1,877) | |
Total | 250 | 357 | |
Reclassifications and other | [2] | (96) | |
Additions/reductions | [3] | (11) | |
Ending balance | 2,127 | ||
Accumulated impairment losses (a) | (1,877) | ||
Consumer Packaging [Member] | |||
Goodwill [Line Items] | |||
Beginning balance | 1,784 | ||
Accumulated impairment losses (a) | [1] | (1,664) | |
Total | 0 | $ 120 | |
Reclassifications and other | [2] | (120) | |
Additions/reductions | 0 | ||
Ending balance | 1,664 | ||
Accumulated impairment losses (a) | $ (1,664) | ||
[1] | Represents accumulated goodwill impairment charges since the adoption of ASC 350, “Intangibles – Goodwill and Other” in 2002. | ||
[2] | Represents the effects of foreign currency translations and reclassifications as well as a reclassification to Assets held for sale of $117 million in Consumer Packaging due to the pending sale of our equity interest in IP-Sun JV. | ||
[3] | Reflects a reduction from tax benefits generated by the deduction of goodwill amortization for tax purposes in Brazil. |
GOODWILL AND OTHER INTANGIBLE61
GOODWILL AND OTHER INTANGIBLES GOODWILL AND OTHER INTANGIBLES (Changes in Goodwill Balances Footnotes) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Consumer Packaging [Member] | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | $ 117 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Identifiable Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 313 | $ 309 |
Finite And Indefinite Lived Intangible Assets Gross | 722 | 848 |
Customer-Related Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 494 | 561 |
Finite-Lived Intangible Assets, Accumulated Amortization | 156 | 157 |
Noncompete Agreements [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 70 | 74 |
Finite-Lived Intangible Assets, Accumulated Amortization | 55 | 53 |
Intellectual Property [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 51 | 44 |
Finite And Indefinite Lived Intangible Assets Gross | 60 | 61 |
Use Rights [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 5 | 9 |
Finite And Indefinite Lived Intangible Assets Gross | 32 | 81 |
Fuel And Power Agreements [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 5 | 5 |
Finite-Lived Intangible Assets, Accumulated Amortization | 3 | 3 |
Computer Software, Intangible Asset [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 21 | 23 |
Finite-Lived Intangible Assets, Accumulated Amortization | 20 | 22 |
Other Intangible Assets [Member] | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 40 | 43 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 23 | $ 21 |
GOODWILL AND INTANGIBLE ASSET63
GOODWILL AND INTANGIBLE ASSETS (Amortization Expense of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets Amortization Expense [Line Items] | ||||
Amortization of intangible assets | $ 16 | $ 19 | $ 45 | $ 55 |
INCOME TAXES (Income Tax Paymen
INCOME TAXES (Income Tax Payments Net of Refunds) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Payments [Line Items] | ||
Income tax payments,net | $ 118 | $ 193 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | 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 | $ 1 | $ 0 | 8 |
Ending balance, unrecognized tax benefits | (149) | ||
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 | (33) | ||
Netting income tax penalties and interest expense [Member] | |||
Schedule of Unrecognized Tax Benefits and Related Accrued Estimated Interest and Penalties [Line Items] | |||
Activity for the three months, accrued estimated interest | $ 2 | $ (1) |
INCOME TAXES (Components of Net
INCOME TAXES (Components of Net Income Tax Provisions Related to Special Items and Discontinued Operations) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | $ (109) | $ (351) |
Special Items [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | (70) | (360) |
Tax Basis Adjustment [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | 23 | 0 |
Internal Restructuring [Member] | ||
Tax Special Items [Line Items] | ||
Income tax provision benefit related to special items | (62) | 0 |
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) (Detai
INCOME TAXES (Narrative) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Estimated reduction of unrecognized tax benefits | $ 40 | |
Income tax provision benefit related to special items | $ (109) | $ (351) |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Environmental Remediation Obligations) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2011 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 97 | |
Environmental exit costs, assets previously disposed, liability for remediation | 40 | |
Cass Lake, Minnesota [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 47 | $ 46 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Litigation) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2010 | Sep. 30, 2015 | Sep. 30, 2015USD ($) | |
Kleen Products Llc Versus Packaging Corp of America [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, number of defendants | 8 | ||
Number of claims filed | 4 | ||
Kalamazoo River Superfund Site [Member] | Time Critical Removal Action [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 19 | ||
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 | ||
San Jacinto River Superfund Site [Member] | Medical Monitoring and Damages [Member] | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs seeking damages | 400 | ||
San Jacinto River Superfund Site [Member] | Property Damage and Personal Injury [Member] | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs seeking damages | 400 |
VARIABLE INTEREST ENTITIES AN70
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Activity Between Company and Entities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [1] | $ 9 | $ 10 | $ 27 | $ 29 |
Expense | [1] | 19 | 18 | 56 | 54 |
Cash receipts | [2] | 11 | 10 | 21 | 22 |
Cash payments | [3] | 20 | 36 | 56 | 73 |
2007 Financing Entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | [4] | 7 | 6 | 20 | 19 |
Expense | [5] | 7 | 6 | 20 | 19 |
Cash receipts | [6] | 1 | 2 | 5 | 5 |
Cash payments | [7] | $ 5 | $ 4 | $ 13 | $ 13 |
[1] | 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. | ||||
[2] | The cash receipts are equity distributions from the Entities to International Paper prior to the formation of the 2015 Financing Entities. | ||||
[3] | The cash payments are interest payments on the associated debt obligations of the Entities discussed above. After formation of the 2015 Financing Entities, the payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. | ||||
[4] | The revenue is included in Interest expense, net in the accompanying consolidated statement of operations and includes approximately $5 million and $14 million for the three and nine months ended September 30, 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 and $5 million for the three and nine months ended September 30, 2015 and 2014, respectively, of accretion expense for the amortization of the purchase accounting adjustment on the Nonrecourse financial liabilities of special purpose entities. | ||||
[6] | The cash receipts are interest received on the Financial assets of special purpose entities. | ||||
[7] | The cash payments are interest paid on Nonrecourse financial liabilities of special purpose entities. |
VARIABLE INTEREST ENTITIES AN71
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Activity Between Company and Entities Footnotes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Variable Interest Entity [Line Items] | ||||
Accretion income for amortization of purchase accounting adjustment, financial assets | $ 5 | $ 5 | $ 14 | $ 14 |
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | $ 2 | $ 2 | $ 5 | $ 5 |
VARIABLE INTEREST ENTITIES AN72
VARIABLE INTEREST ENTITIES AND PREFERRED SECURITIES OF SUBSIDIARIES (Narrative) (Details) a in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2007USD ($)a | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2006USD ($)a | Dec. 31, 2014USD ($) | Sep. 30, 2012USD ($) | Dec. 31, 2007USD ($) | ||
Variable Interest Entity [Line Items] | ||||||||||
International Paper debt obligations held by the Entities | $ 9,600 | $ 9,600 | ||||||||
Cash and temporary investments | 1,104 | 1,104 | $ 1,881 | |||||||
Remainder of the borrowing included in long-term debt | 8,887 | 8,887 | 8,631 | |||||||
Additional debt included in notes payable and current maturities | 753 | 753 | 742 | |||||||
Debt reductions | [1] | 90 | $ 262 | 1,479 | $ 1,301 | |||||
Payments to acquire investments | 198 | 0 | ||||||||
Accretion income for amortization of purchase accounting adjustment, financial assets | 5 | 5 | 14 | 14 | ||||||
Accretion expense for amortization of purchase accounting adjustment, financial liabiities | 2 | $ 2 | 5 | $ 5 | ||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Contribution of Class A interests in the Borrower Entities to other newly formed entities in December 2006 | $ 200 | |||||||||
Contribution of International Paper promissory notes, to other newly formed entities | 400 | |||||||||
Entities acquired International Paper debt obligations for cash | 4,800 | |||||||||
International Paper debt obligations held by the Entities | 5,200 | |||||||||
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 | 5,000 | 5,200 | ||||||||
International Paper debt obligations held by the Entities | 5,300 | |||||||||
Remainder of the borrowing included in long-term debt | 50 | |||||||||
Additional debt included in notes payable and current maturities | $ 107 | |||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Amount of consideration received | 4,800 | |||||||||
Contribution of International Paper promissory notes, to other newly formed entities | 130 | |||||||||
International Paper debt obligations held by the Entities | 150 | 150 | ||||||||
Cash and temporary investments | 600 | 600 | ||||||||
Remainder of the borrowing included in long-term debt | 4,220 | 4,220 | ||||||||
Letters of credit issued that support Timber Notes | $ 4,800 | |||||||||
Debt reductions | 630 | |||||||||
Notes receivable, fair value disclosure | 4,841 | 4,841 | ||||||||
Long-term debt, fair value | 4,240 | 4,240 | ||||||||
Deferred tax liabilities, other | 1,400 | 1,400 | ||||||||
Payments to acquire investments | 198 | |||||||||
2007 Financing Entities [Member] | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Forestlands acreage sales | a | 1,550 | |||||||||
Amount of consideration received | $ 2,380 | |||||||||
Letters of credit issued that support Timber Notes | $ 2,380 | |||||||||
Fair value of notes receivable as of acquisition date | $ 2,090 | |||||||||
Notes receivable, fair value disclosure | $ 2,090 | $ 2,090 | ||||||||
Timber Notes [Member] | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Forestlands acreage sales | a | 5,600 | |||||||||
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 | |||||||||
Remainder of the borrowing included in long-term debt | $ 2,140 | |||||||||
Fair value of financial assets as of acquisition date | $ 2,030 | |||||||||
Long-term debt, fair value | $ 1,980 | $ 1,980 | ||||||||
Deferred tax liabilities, other | $ 840 | $ 840 | ||||||||
[1] | Reductions related to notes with interest rates ranging from 4.75% to 5.85% with original maturities from 2019 to 2030 and from 4.75% to 9.38% with original maturities from 2015 to 2027 for the three months ended September 30, 2015 and 2014, respectively, and from 4.70% to 9.38% with original maturities from 2015 to 2030 and from 4.75% to 9.38% with original maturities from 2018 to 2029 for the nine months ended September 30, 2015 and 2014, respectively. |
DEBT (Debt Extinguishment)(Deta
DEBT (Debt Extinguishment)(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Extinguishment of Debt [Line Items] | |||||
Debt reductions | [1] | $ 90 | $ 262 | $ 1,479 | $ 1,301 |
Write off of deferred debt issuance cost | $ 1 | $ 13 | $ 208 | $ 275 | |
[1] | Reductions related to notes with interest rates ranging from 4.75% to 5.85% with original maturities from 2019 to 2030 and from 4.75% to 9.38% with original maturities from 2015 to 2027 for the three months ended September 30, 2015 and 2014, respectively, and from 4.70% to 9.38% with original maturities from 2015 to 2030 and from 4.75% to 9.38% with original maturities from 2018 to 2029 for the nine months ended September 30, 2015 and 2014, respectively. |
DEBT (Debt Extinguishment Footn
DEBT (Debt Extinguishment Footnotes)(Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Extinguishment of Debt [Line Items] | ||||
Debt instrument, interest rate, stated percentage rate range, minimum | 4.75% | 4.75% | 4.70% | 4.75% |
Debt instrument, interest rate, stated percentage rate range, maximum | 5.85% | 9.38% | 9.38% | 9.38% |
Debt instrument, maturity date range, start | Jan. 1, 2019 | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2018 |
Debt instrument, maturity date range, end | Jan. 1, 2030 | Jan. 1, 2027 | Jan. 1, 2030 | Jan. 1, 2029 |
DEBT (Narrative) (Detail)
DEBT (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Debt Instrument [Line Items] | ||||||||
Debt reductions | [1] | $ 90 | $ 262 | $ 1,479 | $ 1,301 | |||
Debt instrument, maturity date range, start | Jan. 1, 2019 | Jan. 1, 2015 | Jan. 1, 2015 | Jan. 1, 2018 | ||||
Debt instrument, maturity date range, end | Jan. 1, 2030 | Jan. 1, 2027 | Jan. 1, 2030 | Jan. 1, 2029 | ||||
Debt tender premiums paid | $ (211) | $ (257) | $ 211 | $ 269 | ||||
Defined benefit plan employer cash contributions in current fiscal year | 750 | 353 | ||||||
Write off of deferred debt issuance cost | $ 1 | $ 13 | $ 208 | $ 275 | ||||
Debt instrument, interest rate, stated percentage rate range, minimum | 4.75% | 4.75% | 4.70% | 4.75% | ||||
Debt instrument, interest rate, stated percentage rate range, maximum | 5.85% | 9.38% | 9.38% | 9.38% | ||||
Debt and capital lease obligations | $ 9,600 | $ 9,600 | ||||||
Debt fair value | 10,400 | $ 10,400 | ||||||
Three Point Six Five Percentage Fixed Rate Loan [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 3.65% | |||||||
Proceeds from issuance of unsecured debt | $ 800 | |||||||
Debt instrument, maturity date | Jun. 15, 2024 | |||||||
Five Point Zero Percentage Fixed Rate Loan [Member] [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 5.00% | |||||||
Proceeds from issuance of unsecured debt | $ 600 | |||||||
Debt instrument, maturity date | Sep. 15, 2035 | |||||||
Three Point Eight Percentage Fixed Rate Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 3.80% | |||||||
Proceeds from issuance of unsecured debt | $ 700 | |||||||
Debt instrument, maturity date | Jan. 15, 2026 | |||||||
Four Point Eight Percentage Fixed Rate Loan [Member] [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 4.80% | |||||||
Proceeds from issuance of unsecured debt | $ 800 | |||||||
Debt instrument, maturity date | Jun. 15, 2044 | |||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt reductions | $ 1,000 | $ 957 | ||||||
Debt instrument, maturity date range, start | Jan. 1, 2018 | Jan. 1, 2018 | ||||||
Debt instrument, maturity date range, end | Dec. 31, 2022 | Jan. 1, 2019 | ||||||
Debt instrument, interest rate, stated percentage rate range, minimum | 4.75% | 7.95% | ||||||
Debt instrument, interest rate, stated percentage rate range, maximum | 9.38% | 9.38% | ||||||
Five Point One Five Percentage Fixed Rate Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 5.15% | |||||||
Proceeds from issuance of unsecured debt | $ 700 | |||||||
Debt instrument, maturity date | May 15, 2046 | |||||||
Secured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of secured debt | $ 300 | $ 225 | ||||||
Debt instrument, interest rate, stated percentage | 0.90% | 0.90% | 0.90% | |||||
Repayments of secured debt | $ 300 | $ 225 | ||||||
Variable Rate [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Feb. 1, 2017 | |||||||
Debt reductions | $ 160 | |||||||
Early Debt Extinguishment Costs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Write off of deferred debt issuance cost | $ 207 | $ 262 | ||||||
[1] | Reductions related to notes with interest rates ranging from 4.75% to 5.85% with original maturities from 2019 to 2030 and from 4.75% to 9.38% with original maturities from 2015 to 2027 for the three months ended September 30, 2015 and 2014, respectively, and from 4.70% to 9.38% with original maturities from 2015 to 2030 and from 4.75% to 9.38% with original maturities from 2018 to 2029 for the nine months ended September 30, 2015 and 2014, respectively. |
DERIVATIVES AND HEDGING ACTIV76
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments) (Details) € in Millions, ₨ in Millions, £ in Millions, MXN in Millions, MWh in Millions, BRL in Millions, $ in Millions | Sep. 30, 2015USD ($)MWh | Sep. 30, 2015BRLMWh | Sep. 30, 2015GBP (£)MWh | Sep. 30, 2015EUR (€)MWh | Sep. 30, 2015INR (₨)MWh | Sep. 30, 2015MXNMWh | Dec. 31, 2014USD ($)MWh | Dec. 31, 2014BRLMWh | Dec. 31, 2014GBP (£)MWh | Dec. 31, 2014EUR (€)MWh | Dec. 31, 2014INR (₨)MWh | Dec. 31, 2014MXNMWh | ||||||
Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | $ | $ 0 | [1] | $ 11 | |||||||||||||||
Foreign Exchange Forward [Member] | Foreign Exchange Contracts To Sell European Euro For British Pounds [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | € 28 | [1] | € 0 | |||||||||||||||
Foreign Exchange Forward [Member] | Foreign Exchange Contracts To Sell European Euro For US Dollar [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | € 18 | [1] | € 0 | |||||||||||||||
Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell Indian Rupee for US Dollar [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | ₨ | ₨ 31 | [1] | ₨ 43 | |||||||||||||||
Foreign Exchange Forward [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | MXN | MXN 64 | [1] | MXN 187 | |||||||||||||||
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | $ | $ 38 | $ 0 | ||||||||||||||||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Electricity Contract Notional | MWh | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell Brazilian Real for U S Dollar [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | BRL | BRL 0 | [2] | BRL 166 | |||||||||||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell British Pounds for Brazilian Real [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | £ | £ 1 | [2] | £ 5 | |||||||||||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell European Euro for Brazilian Real [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | € 2 | [2] | € 9 | |||||||||||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell European Euro for Polish Zloty [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | € 187 | [2] | € 280 | |||||||||||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts to Sell U S Dollar for Brazilian Real [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | $ | $ 24 | [2] | $ 125 | |||||||||||||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Foreign Exchange Contracts To Sell Mexican Peso for US Dollar [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | MXN | MXN 203 | [2] | MXN 0 | |||||||||||||||
Fair Value Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||
Derivative Notional Amount | $ | $ 17 | $ 230 | ||||||||||||||||
[1] | These contracts had maturities of one year or less as of September 30, 2015. | |||||||||||||||||
[2] | These contracts had maturities of three years or less as of September 30, 2015. |
DERIVATIVES AND HEDGING ACTIV77
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Financial Instruments Other) (Details) | 9 Months Ended |
Sep. 30, 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 ACTIV78
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (8) | $ 1 | $ (2) | $ 17 |
Foreign Exchange Forward [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (8) | $ 1 | $ (2) | $ 17 |
DERIVATIVES AND HEDGING ACTIV79
DERIVATIVES AND HEDGING ACTIVITIES (Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non-Qualifying Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||
InterestIncomeExpense [Member] | Debt [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | $ 0 | $ 1 | $ (3) | $ 0 | |||
Not Designated as Hedging Instrument [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Gain (Loss) on Derivative, Net | (6) | 0 | 2 | 10 | |||
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 | (7) | (2) | (6) | 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 | (1) | (1) | (3) | (1) | |||
Not Designated as Hedging Instrument [Member] | InterestIncomeExpense [Member] | Interest Rate Swap [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Gain (Loss) on Derivative, Net | 2 | 3 | [1] | 11 | [2] | 10 | [3] |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 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) | (7) | 7 | (12) | 6 | |||
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) | (7) | 7 | (12) | 6 | |||
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 | $ 0 | $ (1) | $ 3 | $ 0 | |||
[1] | Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges. | ||||||
[2] | Excluding gain of $3 million related to debt reduction recorded to Restructuring and other charges. | ||||||
[3] | Excluding gain of $7 million, net related to debt issuance and debt reduction recorded to Restructuring and other charges. |
DERIVATIVES AND HEDGING ACTIV80
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES (Gains and Losses Recognized in Consolidated Statement of Operations on Qualifying and Non Qualifying Financial Instruments Other) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Not Designated as Hedging Instrument [Member] | Restructuring And Other Charges [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Cost of Hedge | $ 1 | $ 3 | $ 7 |
DERIVATIVES AND HEDGING ACTIV81
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Interest Rate Derivative Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||||||
Notional Amount Of Derivative Instrument, Terminated | $ 175 | $ 0 | ||||||
Notional Amount Of Derivative Instrument, Undesignated | 38 | 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 | $ 38 | $ 0 | $ 0 | $ 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 | 175 | 0 | 0 | 0 | 0 | ||
Notional Amount Of Derivative Instrument, Issued | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 55 |
DERIVATIVES AND HEDGING ACTIV82
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | $ 7 | $ 17 | |||
Derivative Liabilities | 15 | 18 | |||
Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 6 | 16 | |||
Derivative Liabilities | 9 | 14 | |||
Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 1 | 1 | |||
Derivative Liabilities | 6 | 4 | |||
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 1 | [1] | ||
Derivative Liabilities | 0 | 2 | [2] | ||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 0 | 0 | |||
Derivative Liabilities | 6 | [3] | 2 | [2] | |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 1 | [4] | 0 | ||
Derivative Liabilities | 0 | 0 | |||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Assets | 6 | [5] | 16 | [6] | |
Derivative Liabilities | [2] | $ 9 | $ 14 | ||
[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 $3 million recorded in Other accrued liability and $3 million recorded in Other liabilities in the accompanying consolidated balance sheet. | ||||
[4] | Included in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[5] | Includes $5 million recorded in Other current assets and $1 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. | ||||
[6] | Includes $14 million recorded in Other current assets and $2 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet. |
DERIVATIVES AND HEDGING ACTIV83
DERIVATIVES AND HEDGING ACTIVITIES (Impact of Derivative Instruments in Consolidated Balance Sheet Other) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 7 | $ 17 |
Derivative Liabilities | 15 | 18 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 5 | 14 |
Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 2 |
Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3 | |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3 | |
Energy Related Derivative [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 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 | |
Interest Rate Swap [Member] | Deferred Charges and Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6 | 16 |
Derivative Liabilities | 9 | 14 |
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 9 | $ 14 |
DERIVATIVES AND HEDGING ACTIV84
DERIVATIVES AND HEDGING ACTIVITIES (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 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 | 2 | |
Fair Values of Derivative Instruments Containing Credit Risk-Related Contingent Features in a Net Liability Position | $ 1 | $ 1 |
RETIREMENT PLANS (Net Periodic
RETIREMENT PLANS (Net Periodic Pension Expense for Qualified and Nonqualified U.S. Defined Benefit Plans) (Details) - U.S. Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 40 | $ 35 | $ 120 | $ 108 |
Interest cost | 149 | 150 | 448 | 450 |
Expected return on plan assets | (196) | (190) | (588) | (571) |
Actuarial loss | 107 | 94 | 322 | 280 |
Amortization of prior service cost | 11 | 7 | 33 | 23 |
Defined benefit plan, recognized net gain (loss) due to settlements | 15 | 0 | 15 | 0 |
Net periodic benefit expense | $ 126 | $ 96 | $ 350 | $ 290 |
RETIREMENT PLANS (Narrative) (D
RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan employer cash contributions in current fiscal year | $ 750 | $ 353 | |
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 | $ 57 |
STOCK-BASED COMPENSATION STOCK-
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Schedule of Stock-Based Compensation Expense Related to Income Tax Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Employee service share-based compensation, tax benefit from compensation expense | $ 0 | $ 2 | $ 89 | $ 89 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated share-based compensation expense | $ 27 | $ 29 | $ 86 | $ 81 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
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 | $ | $ 158 |
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 8 months 31 days |
Granted, nonvested shares / units | 1.9 |
Granted, nonvested, weighted average grant date fair value | $ / shares | $ 53.25 |
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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 5,691 | $ 6,051 | $ 16,922 | $ 17,674 |
Industrial Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 3,642 | 3,754 | 10,889 | 11,247 |
Printing Papers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,258 | 1,453 | 3,735 | 4,280 |
Consumer Packaging [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 809 | 876 | 2,384 | 2,548 |
Corporate and Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ (18) | $ (32) | $ (86) | $ (401) |
INDUSTRY SEGMENT INFORMATION (O
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit | $ 579 | $ 781 | $ 1,878 | $ 1,480 | |||||
Interest expense, net | (141) | (158) | (422) | (465) | |||||
Earnings (Loss) From Continuing Operations Before Income Taxes and Equity Earnings | 329 | 552 | 1,001 | 565 | |||||
Equity earnings (loss), net of taxes | (13) | (72) | 84 | (64) | |||||
Ilim Holding [Member] | Reportable Subsegments [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Equity earnings (loss), net of taxes | (9) | (70) | 97 | (58) | |||||
Corporate and Intersegment Sales [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Interest expense, net | (141) | (152) | (422) | (459) | [1] | ||||
Noncontrolling interests/equity earnings adjustment | [2] | (6) | (2) | (10) | 0 | ||||
Corporate items, net | (10) | (3) | (27) | (16) | |||||
Restructuring and other charges | (17) | (18) | (220) | (281) | |||||
Non-operating pension expense | (76) | (54) | (198) | (159) | |||||
Industrial Packaging [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit | 553 | 527 | [3] | 1,549 | 1,517 | [3] | |||
Printing Papers [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit | 179 | 177 | [4] | 389 | (164) | [4] | |||
Interest expense, net | 6 | 6 | |||||||
Consumer Packaging [Member] | |||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||
Operating profit | $ (153) | [5] | $ 77 | [6] | $ (60) | [5] | $ 127 | [6] | |
[1] | Excludes net interest expense of $6 million that is included in the Printing Papers segment operating profit for the three months and nine months ended September 30, 2014. | ||||||||
[2] | 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. | ||||||||
[3] | Includes charges of $1 million and $15 million for the three months and nine months ended September 30, 2014, respectively, for integration costs associated with the acquisition of Temple-Inland, a net gain of $5 million for the nine months ended September 30, 2014 associated with our Brazil Packaging business, charges of $35 million for the three months and nine months ended September 30, 2014 for costs associated with a multi-employer pension plan withdrawal liability, charges of $5 million for the three months and nine months ended September 30, 2014 for costs associated with the restructuring of our EMEA packaging business, and charges of $1 million and $3 million for the three months and nine months ended September 30, 2014, respectively, for other items. | ||||||||
[4] | Includes charges of $3 million and $547 million for the three months and nine months ended September 30, 2014, respectively, for costs associated with the shutdown of our Courtland Mill | ||||||||
[5] | Includes a charge of $186 million for the three months and nine months ended September 30 ,2015 for asset write-offs associated with the announced definitive agreement to sell our 55% equity share in the IP-Sun JV, a net expense of $7 million and a net gain of $7 million for the three months and nine months ended September 30, 2015, respectively, related to the sale of the Carolina Coated Bristols brand and the Riegelwood mill conversion to 100% pulp production, and a charge of $1 million and $2 million for the three months and nine months ended September 30, 2015, respectively, for costs associated with the Coated Paperboard sheet plant closures. | ||||||||
[6] | Includes charges of $2 million and $4 million for the three months and nine months ended September 30, 2014, respectively, for costs associated with the Coated Paperboard sheet plant closures. |
INDUSTRY SEGMENT INFORMATION 91
INDUSTRY SEGMENT INFORMATION (Operating Profit by Industry Segment Footnotes) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||
Impairment of long-lived assets to be disposed of | $ 186,000,000 | $ 0 | $ 186,000,000 | $ 0 | ||||||||
Restructuring and other charges | 25,000,000 | $ 194,000,000 | 24,000,000 | $ 307,000,000 | $ 499,000,000 | 219,000,000 | 830,000,000 | |||||
Multiemployer plans, withdrawal obligation | 35,000,000 | 35,000,000 | ||||||||||
(Gain) loss on legal settlement | (20,000,000) | (20,000,000) | ||||||||||
Litigation settlement interest | (2,000,000) | (2,000,000) | ||||||||||
Interest expense, net | (141,000,000) | (158,000,000) | (422,000,000) | (465,000,000) | ||||||||
Net gain on sale of Carolina Coated Bristols brand and the Riegelwood mill conversion costs [member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | 7,000,000 | [1] | $ (14,000,000) | (7,000,000) | [1] | |||||||
Brazil Packaging Business [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | (7,000,000) | (5,000,000) | ||||||||||
EMEA Packaging Restructuring [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | 5,000,000 | 5,000,000 | ||||||||||
Ontario sheet plant closure [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | 1,000,000 | [1] | 2,000,000 | 2,000,000 | [1] | 4,000,000 | ||||||
Courtland mill shutdown [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | 3,000,000 | [1] | $ 49,000,000 | [1] | $ 495,000,000 | [1] | 547,000,000 | |||||
Restructuring Charges [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Restructuring and other charges | 1,000,000 | 3,000,000 | ||||||||||
Printing Papers [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest expense, net | 6,000,000 | 6,000,000 | ||||||||||
BRAZIL | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Litigation settlement interest | 8,000,000 | 8,000,000 | ||||||||||
Tax adjustments, settlements, and unusual provisions | 32,000,000 | 32,000,000 | ||||||||||
Temple Inland Inc [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Integration costs | $ 1,000,000 | $ 15,000,000 | ||||||||||
IP-Sun JV [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Impairment of long-lived assets to be disposed of | $ 186,000,000 | $ 186,000,000 | ||||||||||
Percentage of equity interest | 55.00% | 55.00% | ||||||||||
[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. We recognized approximately $430 million and approximately $36 million of accelerated depreciation related to these assets during the first and second quarters of 2014, respectively. Other components of the second quarter of 2014 Courtland mill shutdown cost include site closure costs of $7 million, and severance charges of $6 million. 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. Components of the third quarter 2014 Courtland mill shutdown cost include severance charges of $2 million. |
INDUSTRY SEGMENT INFORMATION 92
INDUSTRY SEGMENT INFORMATION (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Income (loss) from equity method investments | $ (13) | $ (72) | $ 84 | $ (64) | |
Reportable Subsegments [Member] | Ilim Holding [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of equity interest | 50.00% | 50.00% | |||
Equity method investments | $ 194 | $ 194 | $ 170 | ||
Equity method investment, difference between carrying amount and underlying equity | 160 | 160 | $ 158 | ||
Related party transaction, purchases from related party | 41 | 44 | 132 | 156 | |
Ilim Holding [Member] | Reportable Subsegments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) from equity method investments | $ (9) | $ (70) | $ 97 | $ (58) |